AFRICAN DEVELOPMENT FUND
BUK/PSAA/2002/01 Language : English Original : French
REPUBLIC OF BURKINA FASO
LOCAL DEVELOPMENT SUPPORT PROJECT FOR COMOE, LABERA AND KENEDOUGOU PROVINCES
APPRAISAL REPORT
DEPARTMENT OF AGRICULTURE OCAR AND RURAL DEVELOPMENT JANUARY 2002 CENTR-WEST REGION TABLE OF CONTENTS Pages PROJECT INFORMATION SHEET, EXECUTIVE SUMMARY, MATRIX i-viii
1. PROJECT ORIGIN AND BACKGROUND 1
2. AGRICULTURAL SECTOR 2 2.1 Salient Features 2 2.2 Land Tenure System 3 2.3 Decentralization Process in Burkina Faso 4 2.4 Financing of the Rural Community 5 2.5 Constraints, Prospects and Opportunities 5 2.6 Rural Development Policy 5 2.7 Performance of Similar Projects 6 2.8 Other Donors’ Operations 7 2.9 The Bank Group’s Strategy 7
3. THE SECTOR CONCERNED 7 3.1 Salient Features 7 3.2 Rural Sector Institutions 8
4. THE PROJECT 9 4.1 Project Design and Rationale 9 4.2 Project Area and Beneficiary 10 4.3 Strategic Context 16 4.4 Project Objectives 17 4.5 Project Description 17 4.6 Production, Markets and Prices 21 4.7 Environmental Impact 23 4.8 Social Impact 24 4.9 Project Cost 25 4.10 Sources of Finance and Expenditure Schedule 25
5. PROJECT IMPLEMENTATION 27 5.1 Executing Agency 27 5.2 Institutional Arrangements 27 5.3 Implementation and Supervision Schedule 29 5.4 Procurement Arrangements 30 5.5 Disbursement Arrangements 32 5.6 Monitoring and Evaluation 32 5.7 Financial and Audit Reports 33 5.8 Coordination with the Other Donors 33
6. PROJECT SUSTAINABILITY AND RISKS 34 6.1 Recurrent Expenses 34 6.2 Project Sustainability 34 6.3 Major Risks and Mitigating Measures 35 7. PROJECT BENEFITS 35 7.1 Financial Analysis 35 7.2 Economic Analysis 35 7.3 Social Impact Analysis 36 7.4 Sensitivity Analysis 36
8. CONCLUSIONS AND RECOMMENDATIONS 37 8.1 Conclusions 37 8.2 Recommendations 37
This report was prepared following a mission to Burkina Faso in January 2002 by Messrs. M. DIKOMBE, Agricultural Economist, OCDW.4, Mission Leader and A. MAHAMA, Agronomist. For further information, please contact Mr. E. DOTE, Division Manager, OCAR.1 (Extension 4110). AFRICAN DEVELOPMENT FUND 01 B.P. 1387 ABIDJAN 01 Tel. : (+ 225) 20 20 44 44 PROJECT INFORMATION SHEET Date : January 2002
The information given hereunder is intended to provide some guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods and services for projects approved by the Boards of Directors of the Bank Group. More detailed information may be obtained from the Executing Agency of the Borrower.
1. COUNTRY : BURKINA FASO
2. NAME OF PROJECT : Local Development Support Project for Comoe, Leraba and Kenedougou Provinces
3. LOCATION : Comoe, Leraba and Kenedougou Provinces
4. BORROWER : Burkina Faso
5. EXECUTING AGENCY : Ministry of Agriculture, Water Supply and Fishery Resources: Tel : (226) 88 01 92 Fax : (226) 88 03 54 6. PROJECT DESCRIPTION
The principal project components are:
A. improvement of the farming systems;
B. capacity building and professionalization; and
C. project management
7. PROCUREMENT OF GOODS AND SERVICES:
ADF-financed goods, works and services will be procured as follows:
i) competition on the basis of a shortlist will be used for the recruitment of consultants, NGOs and audit firms to review the project’s accounts;
ii) the experts for the Project Management Unit will be recruited on the basis of competition through a recruitment agency;
iii) contracts for supplies, equipment and furniture for amounts not exceeding UA 50,000 per contract will be awarded following national shopping;
iv) national competitive bidding will be used for the procurement of supplies, equipment and furniture for amounts exceeding UA 50,000 per contract;
v) national competitive bidding will be used for the award of contracts for the construction of the computer equipment distribution centre and vehicles; vi) goods, services and works for the Local Development Fund will be procured in conformity with the procedures defined in the procedures manual following approval by the Bank;
vii) contracts for the supervision and implementation of the participatory process will be awarded to the Ministry of Agriculture; and
viii) research work on the identification of technical procedures, the improvement of soil fertility, and agro-forestry will be carried out by the Research Institutes under the supervision of the CNRST.
8. TOTAL COST : UA 18.20 million.
- Foreign Exchange : UA 9.74 million. - Local Currency : UA 8.46 million.
9. ADF LOAN : UA 15.00 million.
10. OTHER SOURCES OF FINANCE
- Beneficiaries : UA 0.64 million - Government : UA 2.56 million
11. APPROVAL DATE : September 2002
12. ESTIMATED PROJECT START-UP DATE AND DURATION : January 2003, 6 years
13. CONSULTANCY SERVICES REQUIRED: Consultants for training, literacy education, post-literacy education, establishment of the accounting system and extension services. CURRENCY EQUIVALENTS
UA 1 = CFAF 923.135 (June 2002) UA 1 = US$ 1.26771 US$ 1 = CFAF 728.191 UA 1 = SDR 1
WEIGHTS AND MEASURES
Metric System
FISCAL YEAR
1 January - 31 December
LIST OF ANNEXES
No. DESCRIPTION 1. Map 2. Project Organization Chart 3. Estimated Project Cost and List of Goods and Services 4. Estimated Operating Accounts 5. Project Economic Rate of Return 6. Project Rates of Return and Outputs 7. Projects financed by the Bank Group in Burkina Faso
ACRONYMS AND ABBREVIATIONS
AO Agricultural Organization BACB Banque Agricole et Commerciale du Burkina Faso (Agriculture and Commercial Bank of Burkina Faso) BUNASOLS Bureau national des sols (National Soils Bureau) CIVGT Comité inter-villageois de gestion des terroirs (Intervillage Land-Use Management Committee) CNRST Centre national de recherche scientifique et technologique (National Scientific and Technological Research Centre) CONAGESE Conseil national pour la gestion de l’environnement (National Environmental Management Council) CSPS Centre de santé et de promotion sociale (Health and Social Welfare Centre) CVECA Caisse villageoise d’épargne et de crédit autogéré (Self-Managed Village Savings and Credit Fund) CVGT Comité villageois de gestion des terroirs (Village Land-Use Management Committee) DPRA Direction provinciale des ressources animales (Provincial Animal Resources Directorate) ECLR Erosion Control Land Reclamation FAARE Fonds d’appui aux activités économiques des femmes (Women’s Economic Activities’ Support Fund) FIL Fonds d’investissement local (Local Investment Fund) HIV/AIDS Human Immuno-Deficiency Syndrome/Acquired Immuno-Deficiency Syndrome ICB International Competitive Bidding ICIPE The International Centre for Insect Physiology and Ecology ICRAF International Centre for Research in Agroforestry IDRC International Development Research Centre IFDC-AFRIQUE International Fertilizer Development Centre Afrique IFR Institutions financières rurales (Rural Financial Institutions) ILRI International Livestock Research Institute INERA Institut de l'environnement et de la recherche agricole (Institute for the Environment and Agricultural Research) MA Ministère de l’agriculture (Ministry of Agriculture) MRA Ministère des ressources animales (Ministry of Animal Resources) NCB National Competitive Bidding NGO Non-Governmental Organization NS National Shopping PDRDP Project for Decentralized and Participatory Rural Development in Bazega and Kadiogo PTCF Provincial Technical Consultation Framework SFMU Soil Fertility and Management Unit SOFITEX Société des fibres textiles (Textiles Company) SPEEF Service provincial de l'environnement des eaux et des forêts (Provincial Environmental, Water and Forestry Department) SSC Specialized Sub-commission SWC Soil and Water Conservation UNCDF United Nations Capital Development Fund URCPB Union Régional des Caisses Populaires du Burkina (Regional Union of Burkina Credit Unions) WAEMU West African Economic and Monetary Union i
EXECUTIVE SUMMARY
1. PROJECT BACKGROUND
The Local Development Support Project for Comoe, Leraba and Kenedougou Provinces is part of the National Land Management Programme (PNGT). It is a sequel to the different projects financed in the area by ADF and other donors. Overall, the activities planned under previous projects have been implemented. However, in view of the need to reduce poverty, strengthen food security, and improve the living environment of the populations of these three provinces, the authorities affirmed their determination to consolidate and pursue the measures taken under the previous projects. This project is inspired by the new rural development policy. The strategy retained is based on grassroots local development, adopts a participatory approach and prioritizes self-development and accountability of the local population. Two FAO missions and one Bank mission visited Burkina Faso at the Government’s request.
2. BANK GROUP LOAN
The ADF loan of UA 15 million will be used to finance 100% of the foreign exchange costs and part of the local currency expenditure, representing 25.36% of the total project costs.
3. PROJECT OBJECTIVES
The project sector goal is to contribute to poverty reduction. More specifically, the project aims to strengthen food security, by increasing production by approximately 40%.
4. PROJECT OUTPUTS
The principal project outputs are as follows: integrated soil fertility management, the development of 35,310 ha of cereals, 1 620 ha of legumes (cowpea and woandzou), 410 ha of yams, 5 730 ha of groundnuts, 600 ha of bottomlands rice, and 24,290 ha of fruit trees, capacity building and professionalization of 409 local communities, 200 Village Land-use Management Committees (CVGT) and Inter-Village Land-use Management Committees (CIVGT), local government bodies, 280 Agricultural Organizations (AO) and 15,200 producers, and the establishment of a Local Development Fund (LDF) of UA 3.7 million to support community initiatives.
5. PROJECT COST
The total project cost is estimated at CFA.F 16805.98 million, i.e. UA 18.20 million, net of taxes and customs duties. The cost is broken down into CFA.F 8993.78 million, i.e. UA 9.74 million, in foreign exchange and CFA.F 7812.20 million, i.e. UA 8.46 million, in local currency.
6. SOURCES OF FINANCE
The loan will be financed by ADF, the beneficiaries and the Government of Burkina Faso. The ADF will cover 82.42% of the total project cost, i.e. UA 15.00 million, namely 100% of the foreign exchange costs. The local currency cost supported by ADF represents 26.14% of the total project cost. The ADF operation will be used to finance the totality of the cost of works, equipment and services. It will also make it possible to finance part of the costs of the Local Development Fund (LDF), i.e. operating costs and personnel costs (coordinator’s bonus). The beneficiaries’ contribution amounts to UA 0.64 million representing 13.12% of the community works financed from the LDF. The Government’s contribution amounts to UA 2.56 million, i.e. 14.06% of the total project cost. It will be used to finance part of the local currency expenditure relating to operations and the salaries of the staff of the Project Management Unit. ii
7. PROJET IMPLEMENTATION
The Project Management Unit will be the Project Executing Agency and will be placed under the supervision of the General Secretariat of the Ministry of Agriculture, Water Supply and Fishery Resources, based in BANFORA. The project unit will be backed up by two branches, one of which will be based in BANFORA (COMOE Province) in the premises set up during the implementation of the COMOE Integrated Rural Development Project, and the other in ORODARA (KENEDOUGOU Province). The Project Management Unit (PMU) will be headed by a Coordinator who will be assisted by a staff of nine. Its duties will be to coordinate, control and monitor all the project activities, prepare project activity programmes and budgets, prepare bidding documents and disbursement requests to be submitted to ADF, and to prepare financial statements, as well as monthly project status reports. It will call on specialized organizations to implement the project components. At regional and national levels, the project will be coordinated by the Provincial Coordination Committee and the National Coordination Committee.
8. CONCLUSION AND RECOMMENDATIONS
The project benefits will comprise the rehabilitation of the cereals, legume, oilseed and fruit sub- sectors, as well as the building of management capacity at the level of village communities, producers, AOs, and their professionalization. This will lead to a considerable increase in production which will be able to secure additional income for the population, help to reduce poverty, which is prevalent in the project area, and strengthen food security. The project will also impact positively on per capita income and on purchasing power. This situation will lead to significant changes in the structure of household spending. Implementation of the project will also lead to the creation of new permanent and temporary jobs, which will curb the rural-urban migration of young people. The project will foster the emergence of women and their integration into the economic circuits. It is also presented as a cohesive framework whose activities aim to promote local development and preserve natural resources and utilize them rationally. As designed, the project is technically feasible and financially and economically viable. The economic rate of return is 15%. In light of the above-mentioned considerations, it is recommended to grant Burkina Faso a loan not exceeding UA 15.00 million from ADF resources subject, however, to the fulfillment of a number of conditions. iii
PROJECT MATRIX
Project Name : BURKINA FASO : Local Development Support Project for Comoe, Labera and Kenedougou Provinces Design Team : Messrs. DIKOMBE, B. BOEDTS and TIBALDESCHI Design Date : 08/02/00
HIERARCHY OF OBJECTIVES (HO) OBJECTIVELY VERIFIABLE INDICATORS (OVI) MEANS OF VERIFICATION (MOV) ASSUMPTIONS / RISKS 1. Sector Goal 1.1 The number of households below the poverty line in the 1.1 National Statistics Reports and household 1.1 The poverty of the population concerned is project areas is reduced from 30 % in surveys. reduced. 2005 to 10% by 2010. Stockbreeders’ incomes rise by over 3% by 2010. 2. Project Objectives 2.1 Agro-silvo-pastoral production increased by 2010 by 2.1 Annual Statistics Report and household 2.1 Food security is strengthened. 79084 tonnes of cereals, 14480 tonnes of citrus fruit, survey. 22,700 tonnes of mangoes, and 1700 tonnes of cashew nuts. 2.2 Half-yearly and annual reports, project 2.2 Daily adult calorie intake is 3,500 in 2010. completion reports on the national statistics.
2.3 Idem 2.4 Demographic pressure contained and normal rainfall 3. Project Implementation 3.1 The rural land occupancy plan is established 3.1.1 By 2003, the project area is demarcated 3.1 Natural resources utilization chart 3.Natural resource utilization is rationalized 3.2 Agricultural Intensification Programme is 3.2.1 By 2007, 108,650 ha of rainfed food crops, 600 ha of implemented bottomland rice and 24290 ha of fruit trees will be grown. 3.2 idem 3.2 Soil productivity is improved
3.2.2 Project activity report, half-yearly and annual reports, ADF supervision reports, and monitoring and evaluation reports (internal and external). 3.3 idem
3.3.1 The production and utilization of 2000 tonnes of organic . 3.3 Integrated Soil Fertility Management is carried manure and 20,000 tonnes of agro-mineral fertilizer are out increased. 3.3.2 Farming techniques are improved 3.3.3 SWC and agroforestry works are carried out 3.4 idem 3.3.4 By 2003, yields attain 1000kg/ha for millet; 1300 kg/ha for sorghum; 1600 kg/ha for maize; 3500 kg/ha for paddy rice; 1200kg/ha for groundnuts; 1480 kg/ha for cotton and 14 litres 3.5 idem of milk per cow per day
3.4.1 By 2007, 409 CVGTs and CIVGTs are strengthened
3.4.2 150 The AOs are restructured and strengthened in 2007 iv
HIERARCHY OF OBJECTIVES (HO) OBJECTIVELY VERIFIABLE INDICATORS (OVI) MEANS OF VERIFICATION (MOV) ASSUMPTIONS / RISKS 3.4.3 30 000 producers are trained in 2007. 3.4 Capacity building and the professionalization of village communities, AO and producers are 3.4.4 By 2004, a local investment fund of UA 4.5 million is carried out. established
4. Project Activities Financial Resources 4.1.1 Village and local communities are 4.1 Improved farming systems: Component A : UA 4.36 million 4.1 Activity and supervision reports, adequately prepared. Component B : UA 12.18 million contracts, memoranda of understanding 4.2 Natural Resources Development and Component C : UA 1.66 million signed by the Borrower and the 4.1.2 The AOs and producers are Management: specialized agencies, and the list of strengthened and professionalized. project goods and services. 4.3 Capacity Building and Professionalization
4.4 Project Coordination and Management. 4.2 Idem
4.3 Idem
4.4 Idem 1. PROJECT ORIGIN AND BACKGROUND
1.1 Since Burkina Faso is a country whose economy is based mainly on agriculture and livestock, the Authorities undertook a series of macroeconomic and agricultural reforms with a view to restoring the bases of sustainable economic growth, improving the living conditions of the population and developing sustainable agriculture. They have made significant progress and GDP rose in real terms at an average rate of 4.8% between 1995 and 2000. However, the economic base remains weak. Agricultural activities are carried out under difficult agroecological and socio- economic conditions. Agriculture remains extensive. Natural resources are constantly deteriorating. The economy has remained uncompetitive and dependent on external resources. The population’s living conditions have not improved significantly. They do not have enough to eat, and poverty is increasing. Gross National Product (GNP) per capita fell from US$ 300 in 1996 to US$ 220 in the year 2000. Poverty is higher in rural areas.
1.2 The situation remains of concern in so far as 80% of the rural population makes a living from agriculture. In such a situation, poverty can only be significantly and sustainably reduced if the rural sector undergoes the necessary changes to increase factor productivity. Consequently, the Burkina Faso Authorities sought and obtained donor support to finance some projects in Comoe, Leraba and Kenedougou provinces. These projects include the National Land Management Project (PGNT) financed by the World Bank, UNDP, the Kingdom of the Netherlands, the Kingdom of Denmark and IFAD, and the Comoe Integrated Rural Development Project (PDRI-Comoe) financed by ADF in 1984 which was completed in January 2000. The different projects financed in the project area were successful in (i) enhancing the technical knowledge of farmers in these 3 provinces, (ii) fostering the emergence of village groupings at the level of the village communities and agricultural organizations (AO), and (iii) building socio-economic infrastructure.
1.3 However, owing to a shortfall in financial resources, the activities carried out in the context of these different projects were highly limited and scattered throughout the 3 provinces. It was also noted that producers had been ill-prepared to assume ownership of the activities after the projects were completed, and that some of the village groupings and AOs had been weakened. The low level of services, and monitoring and evaluation prevented any refocusing of the activities of these projects. Despite the huge potential of these 3 provinces, their populations have remained poor. On the other hand, the ecological (decline in soil fertility and destruction of plant cover) and socio- economic environment of the area has considerably deteriorated, and the disparities between the villages have widened.
1.4 The principal lesson to be drawn from these different experiences is that, unless action is taken, the agroecological and socioeconomic imbalances, which are developing in this area, could widen even further because the ecological and socioeconomic conditions will deteriorate considerably. To prevent this, it is, therefore, vital to induce changes in the behaviour of the population and structural change in the agricultural sector through a global development approach emphasizing the criteria of efficiency and sustainability. Consequently, it is imperative to formulate an integrated soil fertility and agricultural management system aimed at ensuring agro- silvo-pastoral integration and building the capacities of the village communities, local government bodies, AOs and producers to manage their own land. It was in that context that the Authorities, with the agreement of the donors, planned to expand the activities of the National Land Management Programme to the three provinces and to consolidate the achievements of previous projects by implementing the Local Development Support Project for the Comoe, Leraba and Kenedougou Provinces, which is part of the PNGT Phase II. 2
1.5 To that end, identification and preparation missions were organized by FAO in December 2000 and April 2001 respectively. They were consistent with the need and urgency mentioned in paragraph 1.4. These missions were followed by ADB preparation and appraisal missions in May- June 2001 and in January 2002. This appraisal report is based on the outcome of the consultations organized with the population, the authorities, NGOs and the donors during these four (4) missions and a summary of the their conclusions and recommendations. Details relating to the project are contained in Volume 2 of the Appraisal Report.
2. AGRICULTURAL SECTOR
2.1 Salient Features
2.1.1 Agriculture is the mainstay of Burkina Faso’s economy. It represents an average of 40% of GDP (25% agriculture, 12% stock breeding and 3% forestry and fisheries) and provides a living and income for 80 % of the population. The rural population is young. Despite considerable economic progress, the rural population remains extremely poor. The poor represent 45.3% of the total population. It is estimated that 27.8% of the population live below the extreme poverty threshold. In terms of calories, the poverty line is determined at 2,430 Kcal/pers/day. In financial terms, the poverty threshold is estimated at 16% in urban areas compared with 51% in rural areas. This situation shows that poverty still remains an essentially rural phenomenon. The latter mainly affects farmers of food crops and large households. This poverty is primarily due to an uncompetitive economy which prevents the generation of income and the creation of sufficient wage-earning jobs. This situation is reflected in a low level of expenditure, high costs of the educational systems, high morbidity and mortality rates, malnutrition, the persistence of STD and AIDS, the adult prevalence rate of which is 7.17%, and a shortage of drinking water. Burkina Faso’s women remain victims of prejudice and outmoded practices, and are still inadequately involved in national public life.
2.1.2 Agricultural production is, for the most part, carried out on family farms averaging 3 to 6 hectares and primarily focused on grain production (millet, sorghum, maize, rice and fonio) and cotton production. Despite its increasing importance, livestock breeding remains extensive. However, the irregularity and low level of rainfall, combined with naturally poor soil, constitute the key constraints on the development of agricultural and livestock production. This situation is aggravated by strong demographic pressure, migration, accelerated environmental deterioration as a result of the abandonment of the fallow system and over logging, overgrazing, a shortage of water and deterioration of rangeland. Forest stands represent approximately 17 million hectares, which are seriously degraded owing to: uncontrolled clearing of woody vegetation and the shortening of the fallow period, a shortage of fuel wood, bush fires, a fall in soil fertility, overgrazing and the deterioration of rangeland. Despite these constraints, Burkina Faso has significant agricultural potential (only one third of 9 million ha of arable land is farmed). 12% of the irrigable land potential, estimated at 165,000 hectares, is developed. The country also has considerable surface (10 billion m3) and ground (113 billion m3) water.
2.2 Land Tenure System
Access to the land in Burkina Faso is regulated by the Law governing Agrarian and Land Reorganization (RAF) enacted in 1984 and amended in 1994 and 1996. The RAF confers ownership of the land on the State. This law is little known and rarely enforced in rural areas for customary law is generally applied in respect of land. In fact, communities give precedence to customary law, considering that land is family owned. Thus, the search for farmlands by farmers and grazing land and water by stockbreeders creates disputes which cannot always be resolved by the customary system. The core problem lies in the lack of structures for consultation among the different players. The settlement of these disputes by the population on the basis of the 3 consultations organized by the authorities and development partners using a participatory approach has been efficient in the areas where local development projects are implemented. This approach is organized with the support of sociologists and rural lawyers. It has made it possible to establish an institutional and legal framework and organs for the settlement of disputes acceptable to all the populations, regional officials, the NGOs and the donors. It is also recommended for the Local Development Support Project for the Comoe, Leraba and Kenedougou Provinces.
2.3. Decentralization Process in Burkina Faso
2.3.1 Legal and Institutional Framework: The reorganization of the territory into local government bodies was enshrined in Articles 143 and 145 of the Constitution of 2 June 1999. It is governed by five (5) laws on decentralization enacted in 1993. These were replaced in 1998 by the Decentralization Orientation Laws (TOD). Under these laws, the territory of Burkina Faso is organized into local government bodies (regions, provinces and communes) and administrative districts (regions, provinces, departments, communes and villages). The local government bodies have a legal personality, financial autonomy and administrative freedom with local decision- making organs (refer to Article 2 of Law n° 040/98/AN of 28/06/1998). The territory of Burkina Faso comprises 13 regions, 45 provinces, 350 departments and 4 urban communes, all of which are operational. The local government bodies have a special delegation at regional and provincial level and a Municipal Council at commune level. These organs are elected for the management of provincial, regional and communal affairs. The administrative districts, which are frameworks for the delegation of the State’s authority, do not have a legal personality. To facilitate the implementation of the decentralization process at village level and to ensure the management of village lands, the Burkinabe lawmakers have conferred a legal personality and management autonomy on the Village Land Management Committee (CVGT) and on the Intervillage Land Management Committee (CIVGT). The CVGT is an organ which organizes and manages village life. The CIVGT deals with the inter-village space (commune). The CVGT/CIVGT is managed by a committee the members of which are elected by the population.
2.3.2 Budget of the Local Government Body. The real balanced budget is adopted by the Council of the Local Government Body. It is jointly approved by the Minister responsible for Territorial Administration and the Minister of Finance or by their local representatives. The operating income comprises revenue from taxes and duties collected exclusively from the territory of the local government body (the region, the province outside the communal boundaries and the commune), operating income from services (relating to services provided by the communities), public revenue, miscellaneous income and the part of the overall appropriation under the Budget Act (on the basis of the number of inhabitants and the financial potential). Capital income comprises on the one hand, retained earnings, the part of the overall capital expenditure appropriation under the Budget Act, subsidies, grants and legacies, and, on the other, borrowings submitted for the prior authorization of supervising authority. The resources will be used to cover the financial charges for which they are responsible.
2.3.3 Decentralization Implementation Programme. The process for the implementation of the decentralization was defined under Law No. 043/98/AN of 06/08/98 governing the scheduling of the implementation of decentralization. It provides for a five (5) year period, i.e. until 2003, for the effective transfer of jurisdiction and the related transfer of induced resources. The educational, cultural and health sectors will be prioritized on the basis of a schedule to: i) first assess the resources and capacities required by the transfer (infrastructure, equipment, personnel and financial resources); and then to submit them for assessment by the arbitration commissions; ii) recruit staff specifically for the local government bodies; iii) establish the decision-making bodies following an electoral process; and iv) at the same time delegate authority from the Ministries to the State Representatives and deconcentrated technical services. 4
2.3.4 Donors’ Support Programmes. In cooperation with the development partners, various programmes of support to the decentralization process have been financed, in particular, various urban projects financed by AFD, the National Land Management Programme, the Programme for the Reduction of Poverty in the Communal Environment concerning the 15 poorest communes, the Soum Livestock Development Project and the Project for Decentralized and Participatory Development in Bazega and Kadiogo Provinces. The last three projects are financed by ADF. They aim to build grassroots capacity, structure the economic space of the local government bodies and consolidate the baseline and the conditions for growth with a view to improving the efficacy of public service delivery. The projects financed in the context of decentralization have provided the grassroots communities and local government bodies with the responsibility and ability to organize and manage their land. The donors, as well as the Bank, are drawing on these experiences.
2.4 Financing of the Rural Community
2.4.1 In Burkina Faso, the rural community is financed by the “Banque agricole et commerciale du Burkina Faso” (BACB), the decentralized systems, NGOs and the development projects.
2.4.2 Banque Agricole et Commercial du Burkina Faso (BACB). This institution was established in 1980 as the CNCA to finance the rural community. In 1999, it had granted CFA.F 26 billion in credit corresponding to 7875 loans for farmers’ associations. Agriculture was allocated approximately 77% of the credit, livestock 4% and women’s income-generating activities 7%, with the remainder allocated to crafts, commerce and other activities. Approximately 2/3rds of the credits are earmarked for inputs. The loan repayment rate is approximately 80%. Savings collected amount to CFA.F 6.7 billion. Support to women’s associations (loans on the principal of joint and several liability) in the context of income-generating activities partly financed by German assistance concerned 225 associations representing 9,172 women. Though BACB’s activities remain firmly focused on the cotton sector through GPCs, which receive mainly short-term credits for their members, BACB is trying to finance other crops (maize in particular) grown by cotton producers. Credit is recovered when the unginned cotton is sold by the Société des fibres textiles (SOFITEX) which deducts loan payments from the proceeds of the GPC’s sales.
2.4.3 Decentralized Financial Systems (DFS). The country has 16 DFS, ten of which comprise savings and credit institutions for which the collection of savings is usually a prerequisite to the granting of credit. However, some of these organizations use both savings and external resources to finance loans. There are also three organizations which deal in direct credit and three projects with a credit component. Since 1995, the number of projects with a credit component has fallen considerably and the number of savings and credit institutions has increased. In 1998, in Burkina Faso there were 222 local village funds with 292000 members approximately 1/3rd of whom were women. Membership rose by 150 % from 1985 to 1998. In 1998, the DFS had CFA.F 17.5 billion in resources (i.e. up by 39% on 1997) and had awarded approximately 40,017 loans representing CFA.F 11.2 billion in credit (i.e. up 15% on 1997). Approximately 88% of the loans are short term (less than 12 months). The interest rate on the loans varies from 9% to 15% per year. Overall, 9.5% of the credits are outstanding.
2.4.4 The five biggest DFS in terms of membership (91 % of all members) are the following: the “Fédération des Caisses du Burkina” (FCPB) (Federation of Burkina Funds), the “Union régionale des Caisse Populaires du Sud-Ouest” (URCPSO) (Regional Union of South-West Credit Unions), the “Union Régionale des Coopératives d’Epargne et de Crédit du Ban” (URC-BAM) (Regional Union of Savings and Credit Cooperatives), the CVEC-SISSILI and the “Mutualité Femme et Développement du Burkina” (FUFEDE) (The Burkina Women and Development Credit Union). In 1998, their resources amounted to CFA.F 12.7 billion (i.e. 70% of the resources of the DFS) and 5 they had granted CFA.F 7.6 billion in credit (i.e. 68% of total credits). The FCPB, with 73 funds, is ranked first with 54% of the members of the DFS. It collects 74% of deposits and grants 54% of total credits. The URCPSO is ranked second with 18% of the DFS, 12% of the deposits and 9% of credits. URC-BAM represents 7% of the membership, collects 1% of deposits and lends 1.5% of the credits. Finally MUFEDE groups together 4% of the members, collects 0.15 % of deposits and lends 0.3% of the credits.
2.5 Constraints, Prospects and Opportunities
2.5.1 The most common major constraints on the sustainable development of the rural sector are: the shortfall and irregularity of rainfall, with a falling trend, inadequate water management, the degradation of natural resources and declining soil fertility, the predominance of extensive production methods with little intensification of farms, strong demographic pressure on farmlands, rural-urban migration, which deprives the rural environment of its life blood, the low level of rural incomes and difficulties of access to bank financing, insufficient processing of agricultural produce, bush fires, remoteness and the high costs of internal and external transport, as well as sociocultural forces which tend to marginalize youths and especially women in rural society.
2.5.2 Despite these many constraints, there are potential and assets which could lay the foundations for accelerated and sustained growth of the rural sector, in particular: the availability of agricultural and irrigable land, the existence of surface and groundwater resources, biological diversity and the strong determination of the rural communities and government, backed by Donors, to consolidate grassroots development.
2.6 Rural Development Policy
2.6.1 The limitations of the rural development policies pursued by the Government until 1999 have become evident. Consequently, the Government, with the assistance of its development partners, has prepared a new rural development policy set out in the Policy Letter for Decentralized Rural Development. The latter refers to the sector polices and strategies which have been formulated, in particular the Scientific Research Strategic Plan, the policy memorandum on the Livestock Development Policy Plan of Action for Burkina Faso, the Strategic Orientation paper for the Agriculture and Livestock Sectors until 2010, the National Plan of Action for the Control of Desertification (PAN/LCD), the Strategic Operational Plan for the Sustainable Growth of the Agricultural Sector, and the different approaches to land management and the grassroots local development approach.
2.6.2 The key objectives of the new Rural Development Policy are to: raise agricultural production from 5% to 10% per year, contribute to an annual per capita increase of at least 3% in farmers’ and stockbreeders’ incomes, create conditions which will facilitate the population’s access to, and readiness to adopt an adequate balanced diet, ensure appropriate health care coverage for all the country’s health regions, control HIV/AIDS, roll back malaria, attain a gross enrollment rate of 70% while reducing gender disparities, raise the literacy rate to approximately 50%, and improve drinking water supply coverage through the establishment of modern water points.
2.6.3 To attain the above-mentioned objectives, the principal activities planned focus on the following strategic areas: development of the market economy in rural areas, sustainable natural resources management, food and nutritional security, improvement of the economic status of women in rural areas, the refocusing of the State’s role and the promotion of private initiative, a system of cofinancing of activities between the public authorities and local communities, administrative decentralization, the accountability of local government bodies, the establishment of infrastructure and the close involvement of the populations in its management. 6
2.7 Performance of Similar Projects
2.7.1 The Bank Group has financed other projects in the rural development sector in Burkina Faso, in particular:
i) The Comoe Integrated Rural Development Project was completed on 31 January 2000. It aimed to reduce poverty and reinforce food security through: the intensification of rainfed crops, the development of animal traction, the strengthening of the supervisory and extension system and the upgrading of road and social infrastructure. There was considerable slippage on project start up owing to delays in the fulfillment of the conditions precedent to effectiveness of the loan agreement. It also experienced difficulties owing to frequent managerial changes. Despite these difficulties, considerable progress was made. 93 km of feeder roads were built, water supply facilities established and cereals production revived. It contributed to the establishment of the GV and AO.
ii) The Piela-Bilanga Rural Development Project aims to reduce poverty and reinforce the food security of the population, improve their incomes, modernize the drinking water supply systems, protect the environment and open up the project area. The project started up in December 1994 two years behind schedule. It will be completed on 28 December 2002. The project activities are being implemented satisfactorily.
iii) The Soum Province Livestock Development Project which is in its second phase aims to reduce poverty and reinforce food security by increasing milk and meat production, developing fodder crops and improving fallow land in order to upgrade the biomass quantitatively and qualitatively, encouraging the population to pool their resources in order to benefit from certain services, in particular credit, the training of stockbreeders in the corresponding techniques and support to grassroots initiatives with the help of technical advice. The loan agreement was declared effective on 23 November 2001 and the project effectively started up in January 2002. It was, however, one year behind schedule owing to a delay in the fulfillment of the conditions precedent to effectiveness of the Loan Agreement approved on 29 March 2000.
iv) The Project for the Decentralized and Participatory Development of Bazega and Kadiogo. This project was approved in March 2001 and the loan agreement was declared effective on 29 March 2002. Its objectives are to contribute to a reduction in poverty and an increase in production. Its principal activities concern improvements in the production systems, better living conditions, local capacity building and rational natural resources management.
2.7.2 The Bank’s experience in the area of rural development project management is conclusive, for it has been able to considerably improve the management of project revolving funds, disbursements, supervision and monitoring. This was made possible by supervision and portfolio review missions. The Bank also participated in the adoption of the participatory approach, staff training and in making village communities more accountable, thus greatly improving the efficiency of project Executing Agencies, financial management and coordination. These projects are also rich in lessons. Regular project supervision, the adoption of a single accounting system and monitoring and evaluation performance indicators would further enhance project efficiency. 7
2.8 Other Donors’ Operations
2.8.1 Under its decentralized and participatory rural development policy, Burkina Faso has received assistance from several donors and NGOs to finance projects in the agricultural sector, the most important of which are: the Livestock Sector Support Programme financed by the European Union, the Gourma Animal Resources Development Programme financed by the Arab Bank for Economic Development in Africa (ABEDA), the Nouhao Valley Development Project financed by Italy, the Village Animal Development Programme financed by France, the Burkina Sahel Programme Support Project financed by UNDP and UNCDF and established in 4 provinces of the Burkinabe Sahel, the Burkinabe Sahel Programme financed by the Kingdom of the Netherlands, the Natural Resources Management programme in Seno and Yagha financed by the Kingdom of Denmark, the Burkinabe Sahel Project financed by the German Government, the World Bank- financed project for the management of small irrigation schemes and the National Land Management Programme (PNGT), cofinanced by the World Bank, UNDP, the Kingdom of the Netherlands, the Kingdom of Denmark and IFAD. This programme, which is in its second phase, is aimed at reducing poverty.
2.8.2 The different projects mentioned in paragraphs 2.7.1 and 2.8.1 have accumulated a wealth of experiences, rich in lessons, in the following areas: accountability of the population, - smallholder self-reliance, improved production techniques, - land use management, - poverty reduction, as well as project management and coordination. This project draws on these achievements to build its grassroots local development strategy.
2.9 Bank Group Strategy
The Local Development Support Project for Comoe, Leraba and Kenedougou provinces is in keeping with the Bank Group’s operating strategy in Burkina Faso for the 2002 to 2004 period. This strategy aims to promote activities with greater impact on poverty reduction, while mainly affecting the rural development and transport sectors. By prioritizing rural development, the Bank Group aims to diversify and develop agricultural production and to reinforce food security thus making it possible to control the degradation of the rural environment and improve the living conditions of the rural community. Emphasis is placed on the integrated management of soil fertility, on soil fertilization and conservation to increase productivity. The strategy also aims to improve access roads to facilitate the transport of agricultural produce, to improve the organization of markets for agricultural produce and also access to water points. The Bank’s activities are also focused on the strengthening and increased accountability of village communities, producers and AOs, the rehabilitation of the sub-sectors, support to the strengthening of micro-finance and micro- enterprises in the context of a partnership between the State, private operators and NGOs. In this respect, decentralization constitutes an ideal framework for local development, micro-projects and grassroots initiatives.
3. THE SECTOR CONCERNED
3.1 Salient Features
3.1.1 Only the agricultural sector is concerned by the project and the following sub-sectors have been retained: cereals, legumes, oilseed and fruit. Rainfed farming predominates using traditional and manual techniques. Agricultural sector performances are poor. Its growth rate of 2.5% is too low to offset the annual population growth rate of 3% and is the reason for the country’s food deficit. It is still little diversified and is evolving in a difficult environment characterized by low productivity, mainly as a result of: i) naturally poor soils, ii) the continuing decline in their fertility, iii) unwillingness to adopt land degradation control technologies, iv) difficulties concerning mineral input supplies due to the landlocked situation of the country and high import costs, v) low level of 8 input use, vi) irregular and low rainfall; vii) a very short vegetation period; viii) strong demographic pressure; and ix) accelerated environmental degradation due to water and wind, and a fall in, or abandonment of fallowing. These factors constitute the major constraints in respect of forestry, livestock and agricultural production. Of a total of 274,000 km², it is generally estimated that there will be 9 million hectares of cultivable land (35%), comprising 8.9 million hectares of rainfed cropping and 0.1 million of irrigated cropping. The remainder, i.e. almost 17 million hectares, represents natural formations.
3.1.2 Cereals (millet, sorghum, fonio, maize and rice) are the country’s main crops and also constitute the bulk of the food crops. Average yields vary between 350 kg/ha to 1500 kg/ha, according to the region. Annual average cereals production is approximately 2,500,000 tonnes, including 123,000 tonnes of paddy rice. Legumes, comprising cowpeas and woandzou, are grown in several regions of the country and recommended for improving soil fertility. Tubers, mainly yams, are also grown in several regions of the country. Their production is low and entirely consumed on farm.
3.1.3 The main oilseeds are groundnuts and sesame. Groundnuts were Burkina Faso’s principal cash crop in the sixties with yields of approximately 130,000 tonnes. Because of falling prices, poor support and particularly severe droughts in the 1970s, production fell by 37% to 75,000 tonnes in 1975 for an area of 137 000 ha. As a result of a groundnuts development policy, there was a significant upturn in production from 1985/86 to 160,000 tonnes in 1989 for 230,000 ha. Burkina Faso was ranked 6th in Africa with that level of production. The national market is growing and absorbs much of the national production. Since groundnuts are also a food crop, on-farm consumption of groundnuts may attain 90% of production.
3.1.4 Fruit is grown in the southwest of the country, chiefly in Kenedougou, Leraba and Comoe provinces, and covers an average area of 10,000 ha. Mangoes and oranges are the two principal fruit crops. Their respective areas and yields are: approximately 5,000 hectares and 35,000 to 40,000 tonnes for mangoes and 3000 hectares and 24,000 to 30,000 tonnes for citrus fruits. Mandarins are only grown on approximately 300 hectares in Orodara. Cashew production has risen sharply. The other fruit crops (limes, lemons, tangelos, grapefruit, guavas, papayas and pineapples) are still not very widespread. The performance of this sub-sector is still quite poor. In fact, it is experiencing several problems, in particular, low orchard yields due to disease, as well as poor quality fruit, which does not meet international standards. The capacity of the processing plants is also low owing to inappropriate equipment.
3.2 Rural Sector Institutions
3.2.1 At present, the rural sector comes under the following ministries through their decentralized structures and specialized agencies: the Ministry of Agriculture (MA) which controls most crop production activities, the Ministry of Animal Resources (MRA) which controls animal production- related activities, the Ministry of the Environment and Water (MEE) which covers all activities relating to agricultural and rural water supply as well as environmental, forestry, wildlife and fisheries issues, the Ministry of Secondary, Tertiary Education and Scientific Research, which is responsible for agronomic and environmental research, and the Ministry of Health. These ministries are represented in the interior of the country by regional and provincial directorates.
3.2.2 To fulfill their mission, the Ministries use specialized agencies, in particular: the National Institute for the Environment and Agricultural Research (INERA), which is responsible for agricultural research, including livestock breeding, the Water and Rural Infrastructure Fund (FEER), a statutory authority which focuses on the management and coordination of funds intended for the rural land, water and infrastructure resources, the BACB, a limited liability company which grants agricultural 9 credit, the National Bureau for Soils (BUNASOLS), which is responsible for soil analysis, the National Council for Environmental Management (CONAGESE) responsible for environmental management, non-governmental organizations (NGOs) for the implementation of specific programmes, the National Artificial Insemination Centre (CNIA) for the implementation of the genetic improvement programme for cattle, the National Scientific and Technological Research Centre (CNRST), which is responsible for the nationwide coordination of research, the Agricultural Organizations (AO) for the organization and operation of the rural community, the decentralized systems (DFS) for the financing of rural agriculture, and the Soil Fertility Management Unit (UGFS) for the restoration and maintenance of soil fertility. These different organizations and administrative services have adequate qualifications, vast experience and valued and recognized skills, as well as appropriate equipment. Their services have been effectively delivered in the field during the implementation of previous projects in the area of this project, in particular the Comoe Integrated Rural Development Project.
4. THE PROJECT
4.1 Project Design and Rationale
4.1.1 The Local Development Support Project for Comoe, Leraba and Kenedougou Provinces is part of Phase II of the National Land Management Programme. The latter is based on the decentralized and participatory rural development strategy set out in the Policy Letter on Decentralized Rural Development Policy by the Government with the assistance of the donors and other development partners. The strategy adopted under this project is also based on the decentralized rural development strategy and on the land-use management and local development approaches. It prioritizes partnership, dialogue, consultation, accountability and participation of village communities, producers, development partners, government services, and private operators. To that end, consultations (workshops, direct individual and group contacts) with the population, officials, the authorities, NGOs and the donors were organized during the identification, preparation and appraisal missions. These consultations led to the identification of the requirements of the population concerned, made it possible to define the project, determine the strategic areas, validate the contents of the project and assume ownership of it.
4.1.2 The consultations initiated during previous projects will be pursued during implementation of this project with the support of two multidisciplinary teams set up under PNGT II. They will be responsible for extension and sensitization activities based on the IEC method. To that end, the participatory approach appears to be the only relevant participatory option likely to stimulate original ideas and strategies, and to motivate the population at the level of villages, rural communes, the 3 provinces and 2 regions concerned. It is also in keeping with the decentralization policy which implies the deconcentration and administrative and financial autonomy of grassroots communities and local government bodies. Activities will be prepared and implemented with the involvement of the population in both the planning and grassroots programming process of which they should assume ownership. This process will make it possible to prepare local development plans (LDP) and will lead to the rational utilization of the natural resources of the three provinces.
4.1.3 The grassroots planning and programming process will comprise six (6) phases, as follows: i) contacting the grassroots communities (gathering of information, familiarization with the environment, awareness of the communities and determination to act); ii) participatory diagnostic reviews with the village communities (analysis of problems, determination of objectives, identification of possible solutions, the preparation of village land-use management schemes in relation to the POER); iii) the ranking of requirements (choice of activities); iv) preparation of local development plans (organization, planning, thematic training and extension activities; v) validation of LDP in 10 accordance with the priorities of communes, provinces and regions in harmony with the other LDP); vi) implementation of their LDPs at village, communal, provincial and regional levels (control, monitoring and self-assessment). Each phase will be followed by a feedback seminar for village communities, the communes, provinces and regions. The strategy adopted also recommends increasing the number of participants to meet the demand of all the producers, the cofinancing of investments with the local communities and government bodies and consultations among all the players. To facilitate ownership of the grassroots planning and programming process by the population, the project will make use of two multidisciplinary teams specialized in the participatory approach and set up under the PNGT.
4.1.4 In light of the findings of the socioeconomic surveys conducted in the project area during implementation of the Comoe Integrated Rural Development Project, the consultations organized during the preparation and appraisal of this project and the results of projects implemented in some localities of the project area, and because of the particular situation of the project area, it is vital to improve the existing agricultural systems with a view to restoring the agroecological and socioeconomic balances. To that end, an integrated agro-silvo-pastoral approach should be adopted focused on integrated soil fertility management based on agro-mineral and organic enrichment, mixed farming, sound cropping practices, and the selection of adapted crops involving all the actors in the organization and implementation of the project. In view of the major role played by women in the implementation of this project, the approach adopted utilizes the gender and development concept and is of interest to all socioprofessional groups. It will take into consideration all the activities carried out by women and youths (agriculture, gathering, trading, processing, etc.) and sound knowledge of the particular local situations of each group and locality.
4.1.5 The project should help to reduce poverty in Comoe, Leraba and Kenedougou provinces, and to ensure the sustainable development of these three (3) provinces. To that end, it will focus on the following points: building the capacity of village communities to manage their rural space, structuring and building of management capacities and professionalization of AOs and producers, improving agricultural systems through integrated agro-silvo-pastoral systems, the rehabilitation of the sub-sectors, the intensification of crop production, support to grassroots initiatives, private sector promotion, and the use of specialized and experienced organizations to implement programmes for the development and advancement of rural women. The project also aims to rehabilitate the traditional sub-sectors, namely: cereals, legumes, tubers, oilseeds, and fruit. These crops are usually grown in the three provinces and help to feed the population in the project area. This project will not concern activities taken into consideration by the other projects. These relate, in particular, to livestock breeding, legumes, forest development, village water supply, health and education.
4.2 Project Area and Beneficiaries
Location and Physical Setting
4.2.1 The project area covers the following three provinces: Comoe, Leraba and Kenedougou. The first two provinces form part of the Cascades Region and the third of the Hauts Bassins Region. The project covers an area of 26,648 Km2 and comprises 30 Departments and 409 villages. The choice of this area is justified by the fact that the population is very poor. The inhabitants live a fragile existence in an area with huge potential (large areas of average quality cultivable land, an abundance of natural grazing land, and rich and diverse forestry resources). In addition, there is potential for increased soil fertility through sustainable management with a combination of fallowing, mixed farming, the maintenance of tree cover and the development of agro-industry. 11
4.2.2 The area has a humid tropical climate. Annual rainfall varies between 900mm and 1200mm from north to south. The temperature varies between 24 and 37°C. The area is flat and slightly undulating. The water system comprises four perennial streams, the Bafing, Monhoun, Comoe and Leraba. It is complemented by many sites suitable for the construction of small dams, reservoirs and ponds. The rainfall is evenly distributed. Despite such advantages, the water resources potential is insufficiently tapped.
4.2.3 The soils in the project area are mainly heavy clay and used for the most part for rainfed crops with the exception of bottomland soil which is clayey and suitable for rice growing and market gardening. The soils in the project area have shortfalls in the major nutritional elements (phosphates, nitrogen and potassium). They are also low in organic matter. The shortfalls are often more pronounced in the former cotton areas and the areas around Banfora (Tiefora and Mangodara), the north of Knedougou (N’Dorola and Samoroguan) and the north of Leraba (Niankorogougou and Lounama). The decline in soil fertility drives the population to devastate the forests and grazing land. Such behaviour has resulted in the virtual disappearance of long fallow periods, which allows the soil to regenerate.
Socio-economic Context
4.2.4 At present, the project area has a population of 480,600 inhabitants, 58% of whom live in Comoe, 12 % in Leraba and 30% in Kenedougou. The population of the project area is mainly rural, with a high proportion of youths under 15 years of age and a workforce of approximately 48%. The population growth rate is 2.6% per year. The population is poor with approximately 30% living in extreme poverty, the threshold for which is estimated at CFAF 41,099 (US$ 56.44). The incidence of poverty is 51%. Poverty is most pronounced in rural areas characterized by a lack of socioeconomic infrastructure, an 80% illiteracy rate and inadequate planning of production activities.
4.2.5 The cultivated area is approximately 202,000 hectares, which represents 17.7% of the total cultivable area. It is farmed extensively by 50,640 family farms grouped into four (4) categories (models), the size of which varies between 5 to 10 hectares. They are: (i) model 1 of an area of 8 ha with mainly cotton, maize and sorghum; (ii) model 2 is a farm oriented towards cash crops other than cotton, with an area of 7 ha; (iii) model 3 is a food crop farm specializing in bottomlands rice- growing and out-of-season market garden crops with an area of 6 ha; and iv) model 4 is predominantly involved in fruit farming with an area of 9 ha. The current food crop production levels are presented in Annex 8.
4.2.6 The principal crops in the area are chiefly rainfed with the exception of the cash crops of sugar cane (3,900 ha for SOSUCO at Banfora) and bottomland rice grown on three small irrigated farm blocks (1,500 ha). The cropping systems are largely dominated by cotton and maize cultivated in rotation. They also comprise highly diversified crops: cereals (sorghum, millet, rice and fonio), tubers (yams), legumes (cowpeas, woandzou), fruit (mangoes, citrus fruit and cashew nuts) and vegetables. The cultivated area is distributed as follows: 60,000 ha for cotton, 13 500 ha for millet, 20 900 ha for white sorghum, 3 770 ha for red sorghum, 82 000 ha for maize, 2 510 ha for cowpeas, 2 600 ha for yams, 19 100 ha for groundnuts, 4 000 ha for woandzou, 7 240 for citrus fruit, 11 350 ha for mangoes and 5 700 ha for cashew nuts.
4.2.7 Extensive techniques are used for cotton growing. Cotton production in the area is estimated at 91 907 tonnes i.e. 27% of national production. This practice has depleted much of the land. Rice and market garden crops are grown in the bottomlands, 1,900 ha of which have been developed out of a potential of 30,000 ha. It is estimated that the area has approximately 44,000 ha of irrigable land, i.e. 26% of the country’s potential. Approximately 5,500 hectares have been 12 developed, including 4000 ha of sugar cane by SOSUCO. Only 860 ha are farmed out of the 1,500 developed for rice and market gardening. The bottomland development potential is 30,800 hectares, i.e. 35% of the potential of the country’s west and southwest regions. Only 1,880 ha have been developed and are located in Leraba (58%) and in Comoe (42%). Most of the schemes (72%) are based on the building of contoured dikelets.
4.2.8 Fruit farming exists almost everywhere in the area with a concentration in south Kenedougou. This sub-sector is however experiencing several problems explained in paragraph 3.1.6. The total area is estimated at 20,023 ha with 11 354 ha of mango trees, 7 243 ha of citrus trees and 1426 ha of cashew trees.
4.2.9 The area has a large number of livestock estimated at 319,000 cattle and 321,000 sheep and goats. It is an area crossed by 32,000 cattle per year from the north of Burkina and Mali on their way to the markets of Côte d'Ivoire. The farming system is traditional. In fact, the animals move in search of fodder resources and water points. The large herds (20 to 100 head) are owned by Peuhls and graze throughout the area. On the other hand, sedentary and migrant farmers have the smallest herds (20 head) and graze on village land. The principal constraints are a lack of stock watering facilities, cattle diseases (trypanosomiasis, fowl cholera, intestinal parasitism, pulmonary infections, etc.) and transhumance.
4.2.10 The natural forest stands are characterized by the richness and diversity of production. Annual wood production is estimated at 825 steres for fuel wood and 1,500 steres for charcoal. Non-wood products comprise wild fruit, honey, roots and leaves used in traditional medicine.
Rural Infrastructure
4.2.11 The project area forms part of a region with a network of 2193 km of classified roads and tracks (approximately 60% of which are unclassified feeder roads). Most of the maintenance of these tracks is carried out by the Société des fibres textiles (SOFITEX ) at a rate of 300 to 330 km per year. Several projects contributed to an improvement in the road network. However, the priority requirements in terms of feeder roads amount to 2692 km, but with regular maintenance work carried out by SOFITEX these are reduced to 2000 km. However, access to many areas remains difficult.
4.2.12 The project area contains 1479 modern water points consisting of 1089 traditional boreholes, 351 permanent wells, 20 stock watering points and 19 mini-water supply systems. On the basis of the national standard of 1 water point for 500 inhabitants, the area should have 973 water points. Furthermore, several borehole projects under discussion provide for the drilling of a further 300 boreholes in the area.
4.2.13 There are 771 classrooms in the area for 48,600 students. The primary school enrollment rate is low at between 48 % and 52 % for boys and around 25% for girls in Comoe-Leraba and 40% in Kenedougou. The education services estimate that 134 classrooms ought to be rehabilitated and that 86 new classrooms should be built in the area. The National Education Programme should reduce this shortfall. The area has 81 Health Care and Social Development Centres (CSPS), 29 of which require rehabilitation. The requirements for new CSPS are 18 units. They are taken into consideration in the National Health Care Programme. 13
Gender Issues
4.2.14 Though not involved in decision–making within the grassroots communities, women play a key role in the three provinces. In fact, 51.45% of the area’s farmers are women. They are farm heads and their income varies between CFA.F 350,000 and CFA.F 950,000. Women participate actively in all cropping and livestock activities (sheep and cattle fattening, sheep farming and agriculture). Their dynamism is also reflected in many initiatives, the smooth implementation of micro-projects and sound management of microcredit (contrary to male organizations) even if the loans awarded are small. They carry out income-generating activities. The earnings from the work are used to solve family problems. Despite the efforts made during the implementation of previous projects, women suffer from organizational limitations undoubtedly related to their illiteracy and a lack of training. In view of the role played by women in the project area, it will be necessary to focus on building their management capacity and on their professionalization.
4.2.15 As in the country’s other provinces, women’s status in the three provinces in question has not significantly improved. In fact, the girls’ enrollment rate remains low owing to sociological pressure. It is 25%, whereas the female literacy rate is below 20%. Because of sociocultural and economic considerations whereby the enrolment of girls is perceived as a loss for the family, the education of boys is preferred. The health of pregnant women and mothers, as well as of children, has deteriorated over the past ten years. In fact, the maternal mortality rate has risen and currently stands at 950 per 100,000. The infant and child mortality rate is 105 per thousand. The deteriorating situation is especially due to the spread of endemoepidemic diseases. Several factors related to the accessibility and quality of health care are the causes of this situation and explain the significant differences in this area between towns and rural areas (24.1% of urban children are undernourished compared with 41.6% in rural areas). The food and nutritional situation is serious for women and children between 0 and 8 years old. The situation of women is particularly exacerbated by the rapid spread of HIV/AIDS, the prevalence rate of which is 7 to 8.5% for women, and the persistence of malaria. The situation could improve as a result of the National HIV/AIDS Control Programme financed by the International Community and the National Health Programme financed by the Bank. The latter is combating this infection.
4.2.16 There is a high proportion of youths and labour force participants. They are vulnerable and live in a fragile environment characterized by: the absence of income-generating activities, the prevalence of communicable diseases, insalubrity and illiteracy. This situation leads young people to despair and is responsible for migration towards Ouagadougou and Côte d'Ivoire. It is compounded by the presence of HIV/AIDS, the youth prevalence rate of which is 7.4 to 8.5%.
Extension and Supervision
4.2.17 Sensitization, information, extension, education and communication (IEC) activities are not very developed in the project area. This communications gap is related to the lack of involvement of the population in the activities of the previous projects. Sensitization and supervision are carried out by the Regional Directorate for Agriculture of the Ministry of Agriculture for the agricultural component, the Regional Directorate for Animal Resources of the Ministry of Animal Resources for stock breeding and by the Regional Directorate for the Environment of the Ministry of the Environment and Water Supply for the forestry component. The existing supervisory system comprises 189 staff, 133 of whom work at the Regional Agricultural Directorate, 26 at the Regional Animal Resources Directorate and 30 at the Regional Environmental Directorate. The sensitization activities were successful. Supervision is carried out on the basis of a training and visits approach. This approach has reached its limits. In view of the Government’s concern to rehabilitate the sub- sectors, the existing sensitization and supervision approach is unable to meet the expectations of the population. The ideal solution would be the use of advisers per sub sector. But this concept 14 encounters further difficulties in so far as supervision is currently the responsibility of three ministries and the agricultural advisors are not specialized by sub-sector. Training is currently provided to the supervisors in the project area to enable them to ensure adequate supervision.
Structuring of the Rural Environment
4.2.18 As in the country’s other provinces, life in the project area is organized around Village Land- Use Management Committees (CVGT) and Intervillage Land-Use Management Committees (CIVGT) which regulate the life of villages and inter-village spaces. These institutions are the expression of the will of the village communities. They are responsible for the management of natural and family resources of their land (management of public lands, management of community infrastructure, village forests, grazing land, plant and wild life…). They play a major role in the establishment of the decentralization process at village level. They operate on the basis of Local Development Plans (LDP) prepared in accordance with the grassroots planning and programming process. It should be specified that the CVGT or CIVGT is managed by a committee. Each CVGT groups together all the smallholder associations existing at village level. There are currently 43 operational CVGT supervised by multidisciplinary teams established by the PNGT. This number is highly inadequate for there are 409 villages in the project area.
4.2.19 In villages without a CVGT, the only organization of village activities is through smallholder organizations. The project area contains a very large and diversified number of smallholder organizations. There are in fact 11 cooperatives and 1776 VG (cotton, rice, market gardening, fruit, etc.) including 373 women’s groups with different activities. It is estimated that 1057 VG (i.e. a total of 60%) are really operational, 692 of which are cotton producers’ associations supervised by SOFITEX. They form part of the UNPC/B. There remain therefore 365 operational VG with other activities than cotton. The principal AOs are the following: the Banzon Cooperative (750 members, rice), the Kenedougou – COOPAKE agricultural cooperative (150 producers, mangoes and citrus fruit), the Kassanga Agro-Pastoral Cooperative (40 members, fruit and vegetables), the Banfora Agricultural and Market Garden Cooperative (20 members) and the Baguera Market Garden Cooperative (21 members).
4.2.20 An analysis of the smallholder organizations reveals that these organizations have: (i) few commercial projects and profitable activities since they are often created at the initiative of projects without a strong membership; (ii) insufficient management and negotiating capacity; (iii) very limited range of services (supply of inputs, sale of production) to their members; (iv) inadequate advisory support to their groupings and members, which is ill suited to requirements; (v) with regard to women, low representation and little support from technical services. In view of the situation of these organizations, it is expected that the development projects financed in the area will strengthen and professionalize them.
Marketing of Agricultural Produce
4.2.21 Agricultural produce marketing is carried out by the traders, AOs, and private companies. Products are sold to traders who generally come from Bobo-Dioulasso or the Plateau Central region. These also give money and empty bags to village collectors (most often producers) who buy products locally in the villages and, when they succeed in gathering a sufficient quantity, they inform the traders concerned to send a truck to collect the goods. These collectors receive between CFAF 150 to 200 from each 100kg bag purchased. The most important markets in the project area are located in Banfora, N’Dorola, Kourouma, Fara, Orodara and Sindou. Some smallholder organizations of the Plateau Central Region (from Kaya) are also beginning to become involved in the direct purchase of maize in the project area to cover the food requirements of their regions. 15
4.2.22 Since its establishment in 2000, SODEGRAIN has played an active part in cereals marketing. However, in a concern to expand its activities, SODEGRAIN became the “Société de promotion des filières agricoles du Burkina Faso” (SOPROFA). The latter is responsible for the marketing of all agricultural products. It directly targets groups of producers in the project area for whom it supplies crop season fertilizers and finances transport. Initially, the company has focused its activities on the associations in the Kourouma and Ndorola area (Kenedougou).
4.2.23 SOPROFA marketed 35000 tonnes of paddy during the 2000/2001 crop year, 26,662 of which came from the project area. It has a storage capacity of approximately 180,000 tonnes. The company is required to collect all the production of the country to improve the profitability of its factory. Maize and sorghum are also bought and processed by the Moulins du Burkina which are established in the project area. In addition to the milling of grain into flour, they also produce products for brewing beer by the BRAKINA brewery in Bobo-Dioulasso. They are planning to increase their local purchases by participating in the collection of cereals from producers.
4.2.24 With regard to fruit marketing, most of the producers in the project area are organized into associations. The Kenedougou agricultural produce cooperative (COOPAKE) is located in Orodara. Its principal activities consist in the sale of fresh and dried mangoes as well as citrus fruit, either on the national market, or for export, in partnership with other foreign companies. However, COOPAKE is encountering difficulties related to its debt owed to the banks. In addition, the problem of quality with regard to mangoes also constitutes a handicap with regard to the marketing and export of fruit. In the project there are an increasing number of producers involved in the production of the so-called coloured varieties (Brooks, Kent, Keit, Lippens) considered to be the most popular for export; they are also easier to keep and the organization of producers has improved the situation. The latter was bought up by SOPROFA in 2001 with a view introducing improvements stemming from the organization of producers.
Rural Credit.
4.2.25 Rural Credit is distributed mainly by BACB, the Réseau des caisses populaires du Burkina Faso (RCPB) (Burkina Faso Credit Union Network) and the Rural Community Financing Plan of Action. BACB has 4 agencies, one of which is in Comoe (Banfora), two in Kenedougou (Orodame and Ndorale) and one in Bobo-Dioulasso. During the 1999-2000 crop season, BACB granted credits to 713 village associations. Total credits amounted to CFAF 6446 million comprising CFAF 1800 million to Comoe, CFAF 447 million to Orodama, CFAF 2395 million to Ndorola and CFAF 1804 million in the Bobo-Dioulasso region. The interest rate for cotton inputs is 11% and 13% for non-cotton inputs. The interest rate for animal traction loans is 10% and 12% for other medium-term credits. It should, however, be specified that over 80% of the credit awarded by the BACB branches and agencies concerns short-term credit, intended solely for cropping. The credit is repaid when the cotton is purchased by SOFITEX. Consequently a significant proportion of the fertilizer intended for cotton is in fact used for maize.
4.2.26 The FCPB is represented in the project area by the “Union régionale des caisses populaires du Burkina” (URCPB) (Regional Union of Burkina Credit Unions), based in Bobo-Dioulasso and responsible for 4 provinces: Houet, Comoe, Leraba and Kenedougou. The URCPB currently has 4 branches in the area: Banfora, Niangoloko, Douna, and Orodara. Under the Rural Community Financing Plan of Action (PA-FMR), the European Union has proposed to finance the establishment of 15 savings and credit funds in the URCPB area. Four of these are planned in the project area at Ndorola, Kourouma, Beragadougou and Moussodougou. The analysis of credit and savings fund requirements carried out by URCPB under the PA-FMR in the project area has shown that at least four additional funds would be necessary for which financing has been obtained in order to ensure coverage of the area. 16
4.2.27 At the end of the year 2000, the Banfora fund had 3,478 members, 16% of whom were women with a volume of savings of CFA.F 92 million and a volume of loans of CFA.F 81 million. Approximately 23 active credit associations (500 women) are connected to this fund. The Niangoloko fund had 438 members, 22% of whom are women with a volume of savings of CFA.F 30 million and of loans of CFAF 14 million. Approximately 11 associations (193 women) are connected to this fund. The Douna fund had 437 members, 13% of whom are women; it had CFA.F 36 million in savings and total loans of CFAF 37 million. Eighteen associations (355 women) have been established by this fund. Finally, the Orodara fund has 1 555 members, 19% of whom are women, with savings amounting to CFA.F 31 million and loans at CFA.F 36 million. The fund also works with 17 associations (305 women). The interest rates are 10% for loans and 2% to 3% for interest on savings. It should, however, be specified that 80% of loans awarded by URCPB are short-term loans. Overall, URCPB’s performances are good. In fact, the recovery rate attained by URCPB is 80%. URCPB is managed in accordance with the prudential standards established by BCEAO. The finalized statements are regularly audited by an independent firm. The European Union intends to finance 15 savings and credit funds for URCPB under the Rural Community Financing Plan of Action.
Project Beneficiaries
4.2.28 The project will be of interest to the entire population of the three provinces: socio- occupational groups (farmers, craftsmen, etc.), private operators, and decentralized State employees. It also draws on the experience of ongoing projects in Burkina Faso and elsewhere.
Constraints, Prospects and Opportunities
4.2.29 The development of the project area faces the same constraints as those described in Sections 2.4 and 3.1. In addition to these constraints, mention could be made of lack of planning and programming of producers’ activities, inadequate agricultural inputs and technical advice, the limits of farmers’ organizations and inadequate socio-economic facilities. Despite these constraints, Comoé, Léraba and Kénédougou provinces enjoy several significant advantages: extensive farmlands, abundant natural pasturelands, immense and diverse forest resources, and improved technical knowledge of animal farms. There is also an obvious advantage in the emergence of producer organizations.
4.3 Strategic Context
Burkina Faso is basically an agricultural country, and it faces very severe natural production conditions (irregular rainfall, as well as poor and limited farm and pasture lands). Since the sectoral policies and strategies and the various approaches, which were developed without the participation of the population concerned, did not produce good results, it became indispensable to develop Comoé, Léréba and Kénédougou provinces from the grassroots, on the basis of the participatory and decentralized rural development policy, food security strategy, and empowerment of the population as well as by laying emphasis on: better organization of the population, transfer of responsibilities to the population, sustainable management of natural resources, intensification of agricultural and animal production, promotion of the private sector and the use of specialized and experienced agencies to carry out development programmes, poverty reduction, strengthening of food security, as well as project divestiture and sustainability of activities undertaken. 17
4.4 Project Objectives
The sectoral objective of the project is to contribute to poverty reduction by increasing the purchasing power. Specifically, the project aims at strengthening the food security of the population by increasing production by 40%.
4.5 Project Description
4.5.1 The expected major project outcomes are as follows: the integrated management of soil fertility, the development of 77 100 ha of cereals, 1 620 ha of vegetable crops, 410 ha of yams, 5 730 ha of groundnuts, 600 ha of lowland rice and 24 290 ha of fruit trees, capacity building and professionalization of 409 village communities (200 CVGTs and CIVGTs), local authorities, 280 AOs and 15 200 producers, and the establishment of a Rural Development Fund (FDL) of UA 3.77 million to support community initiatives.
4.5.2 The main project components are as follows:
A) Improvement of farming systems; B) Capacity building and professionalization; C) Project Management.
Component A: Improvement of Farming Systems
4.5.3 In view of the agro-ecological imbalances of the area, the project will establish an integrated soil fertility management community programme which will have two components: spatial planning and agricultural development. The programme will involve 108,650 ha of land distributed as follows: 3 400 ha of millet, 10 200 ha of sorghum, 63 000 ha of maize, 1 620 ha of vegetable crops (cowpea and wandzou), 410 ha of yams, 5 730 ha of groundnuts, and 24 290 ha of fruit trees. It will also develop 600 ha of lowland rice (of 5 ha or less). Development works will focus mainly on water and soil conservation, soil conservation and agroforestry. The population will construct stone barriers and filtering dykes with the appropriate vegetation. The development works will be associated with the promotion of natural vegetation. To that end, the project will provide the village communities with a large stock of minor equipment.
4.5.4 Agriculture will be developed by improving crop production. It will concern plots with potential improved by the development works. It will be based on known and familiar techniques for: (i) the use of the natural phosphates of Burkina Faso; (ii) the use of organic matter from agro- industrial and urban wastes; (ii) the use of harvest residues and livestock products; (iv) the selection of high-yield crops based on an adequate cropping system and the use of vegetable crops (cowpea, wandzou and soya bean); (v) the use of urea on sites where nitrogen deficiency is not covered by vegetable crops. To facilitate agricultural development, the project will receive support from the supervisory technical and extension services, which will help the village communities to adopt these technological methods and construct manure pits.
4.5.5 The project will use the services of SAFGRAD to increase productivity in the fruit tree farming sub-sector. Specifically, the activities will concern: (i) crop protection through biological control by constructing an insectarium comprising an equipped 250 m2 building with 2 modulable cold rooms and a laboratory for eliminating parasites; (ii) advisory assistance services for producers to facilitate access to current new technologies, and (iii) the strengthening of the sub-sectors by supporting the links which serve as interface between the promoters and markets. 18
4.5.6 The development works and manure pits will be undertaken with the local development fund mentioned in paragraph 4.5.3. Agricultural inputs (seeds, organic manures) needed for agricultural development will be procured on credit from BCAB and URCPB resources. These two institutions are already operating in the project area. The traders, SOPROFA and “Les Grands Moulins” will supply inputs on credit to producers. In fact, the products will be delivered at the beginning of the season, and repayments will be made at the time of purchase of the products. These operations will receive support from the project.
4.5.7 To ensure success of the intensification programme and rational management of natural resources, the project will enable the village communities to prepare a Rural Land Occupancy Plan (POER) covering 26 648 km2. The work will be done with the assistance of a consulting firm. The population will also benefit from assistance from 2 multidisciplinary teams, which will be responsible for outreach activities, sensitization, information, communication and education in village communities. Through sensitization and IEC activities, the population will demarcate the areas according to their occupations into pasturelands, farmlands, forest areas, and water lots. They will map out the various vegetation units, land use, zones (classified forests, pasture lands, protected areas, etc.), as well as the location of collective interest areas, and the identification and location of possible extensions of the various types of development. The POER will be validated by the local authorities. It will cover the entire project area. It will provide the provincial and regional technical services and local authorities with the knowledge and tools they require for a clear vision of their areas of activity.
4.5.8 The project will also create a research environment focusing on the following major themes: restoration and improvement of soil fertility, identification of technical procedures known and proven elsewhere, seed production for basic food crops, production of forest seeds for agro- forestry, palm tree development, the use of sugar cane by farmers, farming-stockbreeding integration, and socio-economic monitoring of farms. The above research themes will be supplemented by those identified by the beneficiary population through the participatory approach. Research and development activities will be entrusted to the relevant specialized institutions; they are BUNASOLS, INERA and IFDC-Afrique. Details on these institutions are given in Volume II of this Appraisal Report. They will be coordinated by the National Scientific and Technological Research Centre (CNRST), which will validate research findings before handing them over to producers.
4.5.9 In the light of other ongoing or implemented development projects in Burkina Faso, the project has made provisions for adequate land conflict settlement mechanisms. To that end, it will help the population to develop a methodology and a variety of tools for implementing a land security strategy, and propose, through the participatory approach, an appropriate constitutional and legal framework to facilitate land acquisition and management, as well as allow for the settlement of conflicts. It will therefore recruit a consulting firm that will provide a team comprising a rural sociologist and a rural legal counsel (4 staff/months) to establish the constitutional and legal framework and agencies for consultation and conflict settlement. The consulting firm will use the participatory approach to organize consultations with the population concerned, notables, local authorities, and development partners.
Component B: Capacity Building and Professionalization
4.5.10 First of all, this will consist in providing advisory assistance in management to the village communities and local authorities to help them in their efforts in restructuring, organizing, planning and managing their lands; such assistance will be based on the planning and programming process from the grassroots and will use the participatory approach that can be measured by its capacity to restore confidence in individuals and grassroots communities and involve them in the fight against 19 their own vulnerability, with initiatives and activities likely to improve their welfare. The objective will be to enable village communities and local authorities to become the main actors, and to develop and manage agro-sylvo-pastoral lands, as well as to construct and manage community infrastructure in villages, rural communes (inter-village), provinces, and regions. In the planning and programming process, the needs will be expressed and collected by the population at the village and inter-village levels, and formalized in PLDs. These will be forwarded to the regions for validation, after going through intermediate validation phases (communes and provinces). The planning and programming process at the grassroots will take place in six phases. At the end of the process, there will be PLDs for the CVCTs, CIVGTs, communes and 3 provinces. The CVGTs, CIVGTs and the other deliberative bodies will be responsible for preparing the PLDs, implementing them, and mobilizing the financial and human resources required for carrying out the activities. The objective of the PLD will be to reach an agreement on the future of the villages area by area.
4.5.11 The planning and programming process at the grassroots therefore entails sensitization campaigns, outreach activities, information, communication and education which will be organized at project start-up so as to inform and sensitize the population, the CGVTs, the other deliberative bodies of local authorities, and officials at all levels on the project objectives, the proposed working approach and methods, the respective roles of the project, and above all, enable the village communities to assume ownership of this planning and programming process. The sensitization, extension, information, communication and education activities will continue throughout project implementation. They will be conducted by two PNGT multidisciplinary teams set up for that purpose; one of the teams would be located in Banfora (Comoé Province) and the other in Sindou (Léraba Province). Each team will comprise 4 officers. The two teams will provide advisory assistance to 200 CVGTs/CIGVTs and accompany them through the different stages of the process, but they will not in any circumstance take the place of the local actors, and externally carry out the local planning. Their role will consist in: (i) rehabilitating and establishing CVGTs/CIGTs; (ii) promoting and accompanying the preparation of PLDs; (iii) assisting CIVGTs in reviewing the operation and presentation of micro-projects in FDL; (iv) coordinating and supervising the implementation of activities, and (v) participating in the analysis of the reference situation. The project will provide the two teams with computer and broadcasting equipment. Collaboration with the PNGT will be on contractual basis.
4.5.12 To facilitate implementation of the planning and programming process at the grassroots, and increase the efficiency of operators so as to enable them to manage their villages and improve their living conditions, the project will strengthen and professionalize the village communities, local authorities, AOs and producers:
i) As regards the CVGTs/CIVGTs, the professionalization strengthening programme will focus on advisory assistance provided by the two multidisciplinary teams, literacy education, training and logistic support. The literacy education will concern 2,000 people. Training will be given by NGOs and 40 trainers trained by the project; it will concern CVGT officials, and comprise 26 sessions. It will focus on the organization of the village assemblies of CVGTs/CIVGTs, and on obtaining legal recognition for the PDL. There will also be thematic training courses on the mobilization of local resources, the implementation of micro-projects, the management of community infrastructure, the financial and accounting management of CVGTs, CIVGTs and the FDL, etc. The training will also focus on environmental aspects, functional literacy, and post -literacy. The project will organize 20 field trips to facilitate exchange of knowledge between the managers of CVGTs and CIVGs. 20 ii) The project will also provide advisory assistance to the deliberative organs of local authorities in the regions, provinces and municipal councils to enable them to make objectives coherent, seek complementarities between operations, monitor and evaluate the development of municipal councils, provinces and regions, and manage the FDL. The project will also provide 12 training sessions for the members of deliberative organs on the following themes: management of rural areas and natural resources, and financial and accounting management of the FDL. The project will also formulate the holding of ordinary sessions (at least 3 per year) and specialized commissions of the deliberative organs. iii) Capacity building in management and professionalization of the AOs will focus on the restructuring of AOs, the strengthening of conventional broadcasting media, the establishment of an AO network around a databank on farmer organizations, institution building and organization of these AOs, the establishment of the planning and programming process, and advisory assistance in the management of AOs. The continuing training plan will concern AO officials and consist of the following themes: literacy, organization, management, laws and techniques specifically for rural trades. Functional literacy courses, accessible to men and women, will be organized at project start-up and for AO officials. Other courses will also be organized subsequently for AO secretaries, accountants and treasurers. Another specific training course will be organized for AO managers. It will focus on organization, stock management, budget preparation, financial and accounting management, procurement of goods and services, marketing, processing of products, supply of agricultural inputs, technical aspects, and the dimension of leadership, corporate culture, the negotiation and management of conflicts, supervision of collaborators, conducting meetings, and how to build leadership. All these training courses will be given by a consulting firm or an NGO. Another type of training will also be given to contract employees in AOs and responsible for advisory services as regards farm production and management techniques. A financial and accounting system will be proposed to AOs. The project will also put in place an accounting and financial monitoring system for AOs. There will also be field trips and exchanges between AO managers.
The project will provide support to AOs to finance the following specific activities: study on growth sub-sectors, market survey, organization of meetings between producers and buyers, organization of meetings on the sub-sectors, organization of the supply of inputs and productive activities, marketing and processing operations and procurement of minor equipment required for the functioning of AOs (office, communication and computer equipment). iv) Capacity building in management and professionalization of producers primarily entails a change in behaviour to enable producers to accept the integrated management of soil fertility and improve their technical level as well as inculcate in them entrepreneurial spirit. Consequently, the supervisory services will train the population in farming techniques, techniques for maintaining and restoring soil fertility, practices and techniques for reducing losses, storing products, preserving seeds, processing products, and reforestation. The themes to be developed will be identified by the producers, and the project will also provide producers with advisory services in management. The advisory services to producers will take into account all the crops. They will also concern issues relating to the control of production costs, financial and accounting management, and the financial rate of return. The advisory services to “facilitate decision-making” will be different from those aimed 21
at disseminating farming techniques. In fact, they will entail a global analysis of the farm, as well as a technical and economic analysis of activities, using a participatory approach with the producers and resulting in the preparation of a plan, which in most cases, would be multi-year, for farm development. The advisory services will be supplemented by a specific thematic and continuing training course given by a consulting firm and focused mainly on planning and programming, financial and accounting management, budget management, rehabilitation of subsectors selected by the project, management of inputs, human resource management, farm management, integrated management of soil fertility, environmental management, and the utilization of technological methods. The project will also provide for literacy and post-literacy education, as well as organize field trips, workshops and exchanges between producers.
4.5.13 In order to support community activities, the project will make available to the villages, communes, provinces and regions, a Local Development Fund (FDL) of UA 4.88 million. The modalities for managing the fund are explained in paragraph 5.2.6. The FDL will finance community activities (development of lowlands, implementation of the environmental programme, etc.) in the villages and rural councils on the basis of priorities selected and determined by the population through a participatory process which will result in the preparation of a local development plan and the corresponding budgetary estimates. Community activities will also be financed on the basis of eligibility criteria defined in a procedures manual prepared by the multidisciplinary team. The beneficiaries will also mobilize a counterpart contribution in kind or in cash representing 20% of the total value of the proposed investment.
Component C: Project Management
4.5.14 To remedy the organizational weaknesses noted during implementation of projects in the project area, a Project Management Unit will be established. It will be located in Banfora in the DRA premises. It will be headed by a coordinator appointed by the Government, and assisted by 9 multidisciplinary experienced officers, namely a coordinator, a financial expert, an agro-economist, a socio-economist, a hydraulic or irrigation engineer, an agricultural engineer, a rural communication expert, an internal management controller, a branch manager for Kénédougou, and a rural legal counsel. The salaries of the staff will be borne by the Government, and the project will pay them allowances. All the senior staff of the project, except the coordinator, will be recruited from the job market through competition. To that end, the invitation letters, short list of recruitment agencies and the results of bid analysis and staff candidatures will be submitted to the ADF for prior approval. The staff recruitment expenses will be borne by the ADF under the loan. The coordinator will participate in the recruitment of senior staff. He/she will be appointed after ADF approval of his qualifications and experience. The project will also receive support from specialized agencies in the implementation of project components. In view of the fault condition of the vehicles used in the previous project and the extent of the project area (26,643 km2) as well as the number of staff in the Project Management Unit, it would be indispensable to procure 3 (three) vehicles. The project will also bear the operating and audit costs of the management unit. The project will put in place a financial and accounting management system.
4.6 Production, Markets and Prices
Production
4.6.1 The project’s production will be developed by supervised family farms, divided into 4 models. The selected models already exist in the area. They are designed according to the available natural resources and needs expressed by the population. Their structures also take into account the 22
sex distribution, the nature of crops developed, and the technical levels attained by the farmers. The models are summarized in Annex 8.
4.6.2 The proposed project activities will increase productivity, improve yields and substantially increase production. At full development (2010), the yields will be as follows: 1200 kg/ha for millet, 1300 kg/ha for sorghum, 2600 kg/ha for maize, 5500 kg/ha for lowland rice, 1300 kg/ha for cowpea, 13400 kg/ha for yam, 1700 kg/ha for groundnut, 16000 kg/ha for citrus fruits, 14000 kg/ha for mango, and 1200 kg/ha for cashew nut. The additional production under the project will be 2040 tonnes of millet, 5 814 tonnes of sorghum, 69 850 tonnes of maize, 5157 tonnes of groundnut, 1,380 tonnes of rice, 600 tonnes of cowpea, 3 403 tonnes of yam, 14 480 tonnes of citrus fruits, 22 700 tonnes of mangoes, and 1 700 tonnes of cashew nuts. Details are given in Annex 8 of this report.
Marketing and Markets
4.6.3 The project products will be bought by “Les Grands Moulins du Burkina Faso”, SOPROFA and private traders for distribution in the different markets of the country (collection markets, grouping markets, and terminal market). They will finance the inputs and bear transportation costs from the villages to the collection and grouping markets.
4.6.4 An analysis of the cereal supply and consumption situation shows that cereals constitute the staple food throughout the country, and that the project area has a surplus. The national cereal coverage rate varies from one season to another and from one region to another. In this connection, there are 3 (three) categories of regions in the country: regions with permanent cereals surplus (West), regions with cereal balance (North-West and East), and regions with a shortfall in cereals (Centre and Sahel). The food situation in households in Burkina Faso is precarious. In fact, the average cereal consumption is estimated at 184 kg per person per year in urban areas, and 185.5 kg in rural areas. This low level of consumption results in deficiency in calorie intake. In fact, the calorie intake per person per day is below 2000 calories. However, the caloric requirements are estimated at 2500-3000 calories per person per day. The overall cereal requirements were estimated at 1,621 million tonnes in 1990 and should be about 2,621 million tonnes in 2010. However, cereal supply is estimated at 433,000 tonnes comprising 7% as food aid, 23% as imported cereals, and 70% as domestic production. Furthermore, the supply covers 76% of national requirements. The shortfall is higher in households with no equipment or animals. The additional cereal production estimated at 79 084 tonnes will be bought by private traders, “Les Grands Moulins”, and SOPROFA. It will also be exported to areas with shortfall in the country. The production will be distributed without any special problems because the needs expressed by the buyers are far above the available quantities in the country.
4.6.5 In view of the increasing requirements of households, the additional production of groundnut (5,157 tonnes) will be sold in the rural markets of the project area. Selling the additional groundnut production will not pose any problems. The production will be bought by private traders. The vegetable crop (wandjou, cowpea) production is consumed locally. The additional output under the project (810 tonnes) will remain in the project area because it will not be above the real requirements of the population in the project area. Although yam production in the project area will not be significant, it will be sold in Bobo Dioulasso and Ouagadougou. However, there is enormous pressure from Ivorian and Malian buyers. This situation suggests that there would be no problems in selling the project products. Fruit (citrus fruits and mango) consumption is estimated at 12.21 kg per person per year. Furthermore, the average marketing rate for fruits is 50%. Domestic production hardly covers half of the requirements (47% to 52%). However, it should be pointed out that most of the mangoes produced in the project area are bought and taken away by Ivorian exports as produce from Côte d’Ivoire. 23
4.6.6 India, South Africa and Arab countries import large quantities of cashew nuts. The leading importer is India, which produces one million tonnes each year, whereas its real requirements are estimated at 1,500,000 tonnes of fresh grains. India therefore has to import 500,000 tonnes, which it imports from Africa. However, all West African countries taken together cannot supply more than 150,000 tonnes of fresh nuts. The output of these different countries is as follows: 70,000 tonnes for Guinea Bissau, 40,000 for Côte d'Ivoire, 6.000 tonnes for Benin, 5,000 tonnes for Mali, 5,000 tonnes for Burkina Faso and 3,000 tonnes for Togo. Output under the project is evaluated at 1,000 tonnes of fresh grains. Although the output is significant for the producers, it virtually has no influence on the market. Selling the nuts should not pose any problems. In fact, two new companies have expressed interest in the product; they are the Société burkinabè d’import export (SOBIEX) and SOPROFA, and they compete actively with the usual buyers.
Prices
4.6.7 The prices of agricultural products vary according to season. After a sharp rise due to drought in 1999, cereal prices dropped as from January 2002. The average prices of agricultural products in the project area reached 110 F/kg for white sorghum and red sorghum, and 120 F/kg for maize, 375 F/kg for cashew nut and 95F to 100 F/kg for paddy rice. As regards fruits and vegetables, the prices are unsteady, depending on the demand.
4.7 Environmental Impact
4.7.1 Positive Impacts: Activities of this project which is classified in environmental category II, will not require new cleared lands, displacement of the population or introduction of new crops (or varieties). Project activities will eliminate the main causes of resource deterioration and agro- ecological imbalances currently prevalent in the area. In fact, several activities to restore and improve soil fertility and the plant cover are incorporated in the project components: preparation of a rural areas occupancy plan, integrated management of soil fertility, fruit farming, water and soil conservation, protection of embankments, construction of stone barriers, treatment of gullies, development of firebreaks, and agro-forestry. Furthermore, the project will foster farming/livestock integration by preparing and introducing agro-sylvo-pastoral land management plans, which define the rules for land use and demarcation of grazing lands. The activities of the “Improvement of Farming Systems” component aim at ensuring rational management of natural resources, and could restore the balance of ecosystems.
4.7.2 Negative Impacts: The major potential negative impacts identified during project preparation are those arising from the development of lowlands and relating to the operation phase. A poorly designed drainage system for irrigation water could cause soil salination. There could also be incidences of diseases transmitted or reinforced by the presence of lowlands, as well as negative effects of any abusive use of harvest conservation products on the health of farmers.
4.7.3 Mitigating Measures: The envisaged mitigating measures include the location of water points, the creation of protective belts around embankments by planting prickly shrubs and developing access passages to water bodies. The incidence of water-borne diseases will be mitigated through health education and environmental hygiene activities, including the building of latrines and sinking of wells (or boreholes) and the training of village health officers for the dissemination of prophylaxis notions. Through its team of extension workers, the project will inform users of the risks and how to apply pest control products. Integrated management and the creation of firebreaks will limit the damage caused by late fires on the regeneration and productivity of natural forests. Constraints on natural resources will also be reduced by the integrated management of soil fertility centred on agro-mineral enrichment, the use of agro- 24 industrial and urban wastes and residues, the use of wastes and residues form harvests and livestock products, the participatory development of suitable technological methods, water and soil conservation works, agro-forestry, restoration of the fertility of deteriorated soils, and improvement of undeteriorated soil fertility. Lastly, the project will offer rural communities the opportunity to prepare environmental action plans for their respective areas. The organization of village population will be centred on community management and the rational exploitation of natural resources, which will help to maintain/restore the balance of ecosystems. Most of the activities financed by the FDL will help to reduce, and even eliminate, the main anthropogenic causes of the current degradation of natural resources in the area. Local environmental protection auxiliary staff will be trained to assist in the implementation of the plans (sensitization and training of members in the understanding of land management problems and the tapping of natural resources, preparation of POER at the provincial level to be used as master plan for the management of land and resources, preparation of the village plans and PLD, including rules for the management of land and resources).
4.7.4 Environmental Monitoring: Measures to mitigate the potential negative impacts of the project will be defined in the environmental management plan to be prepared and implemented by a consulting firm. This plan will be submitted to the ADF for prior approval. The consulting firm will ensure that corrective measures are effectively implemented, and that they produce the desired effects.
4.8 Social Impact
Impact on Women
4.8.1 The project activities will concern about 55,000 femmes. Special attention will be paid to them. The women will take active part in organizing the rural areas. Their role as promoters of local development will be enhanced. The women will be involved in decision-making in CVGTs, CIVGTs, SCS, AOs of other farmer organizations and local authorities. To that end, they will benefit from functional literacy, post-literacy, technical education, and farm management training programmes.
4.8.2 The women will benefit enormously from the FDL and credit. In fact, the FDL will grant them blanket subsidies to carry out their community activities. The credit fund will provide them with substantial income. Consequently, they will be farm managers with income ranging from CFAF 500,000 to CFAF 1,000,000.
4.8.3 All the activities for women will be scheduled with due regard for their housework timetable. The mills and water points will contribute to saving the time used for pounding millet and fetching water, and enable women to organize their activities more freely.
Impact of Poverty
4.8.4 Activities under this project will increase the incomes of farmers, as well as create permanent and temporary jobs. The incomes will come from several sources, and increase by 3% each year. The annual income per farmer ranges from CFAF 500,000 and CFAF 1,840,000. The job creation should benefit various socio-occupational categories (farm workers and craftsmen). Increased incomes would relieve food crop farmers and large farm families who are the poorest in the project area. The project objective is to encourage the population to move towards models 2 and 4 which provide enough income and allow for ecological agriculture. This situation would also modify the structure of household expenses, which would cover some food, health and education expenses. The socio-economic indicators would be improved, and the incidence of poverty would be reduced significantly. 25
4.9 Project Cost
4.9.1 The total project cost is estimated at CFAF 16,805.98 million, or UA 18.20 million exclusive of tax and customs duties. The cost is broken down into CFAF 8,993.78 million, or UA 9.74 million, in foreign exchange (53.52 % of the total cost) and CFAF 7,812.20 million, or UA 8.46 million, in local currency (46.48% of the total cost). Table 4.1 gives a summary of the costs by component, and the details are presented in Annex 3.
Table 4.1 Summary Project Cost Estimates by Component
COMPONENT IN CFAF MILLION IN UA MILLION % in F.E.. L.C. Total F.E. L.C. Total F.E. A. IMPROVEMENT OF FARMING SYSTEMS 1850.58 1931.20 3781.78 2.01 2.09 4.10 49.02 B. LOCAL CAPACITY BUILDING 5699.00 4929.50 10628.50 6.17 5.34 11.51 53.61 C. PROJECT MANAGEMENT 547.46 902.17 1449.63 0.59 0.98 1.57 37.58 BASE COST 8097.04 7762.87 15859.91 8.77 8.41 17.18 51.05 PHYSICAL CONTINGENCIES 197.97 49.33 247.30 0.21 0.05 0.26 80.77 PRICE ESCALATION 698.77 0.00 698.77 0.76 0.00 0.76 100.00 TOTAL 8993.78 7812.20 16672.19 10.29 7.77 18.20 53 ?52
4.9.2 The cost estimates are based on June 2000. A 10% provision for physical contingencies has been added to all the base costs, except costs relating to the staff, services, and FDL. A provision for price escalation has been added to all the components. A compound rate of 3% has been applied to foreign exchange and local currency expenses.
4.9.3 The 3% rate is the UEMOA inflation norm in all the economies of the sub-region. The current economic performance of Burkina Faso and the Government’s policy to consolidate it suggest that inflation in the country would not exceed 3%. As regards foreign exchange expenses, the 3% rate is due to efforts made by industrialized countries to control inflation.
4.9.4 Table 4.2 below summarizes project costs by expenditure category:
Table 4.2 Summary Cost Estimates by Expenditure Category
IN CFAF MILLION IN UA MILLION % in CATEGORIES F.E. L.C. Total F.E. L.C. Total F.E. 1. WORKS 12.00 8.00 20.00 0.01 0.01 0.02 50.00 2. EQUIPMENT 1765.00 30.00 1795.00 1.91 0.03 1.94 98.45 3. SERVICES 3417.34 3215.30 6632.64 3.70 3.48 7.18 51.53 4. FDL 2700.00 1800.00 4500.00 2.93 1.95 4.88 60 ?04 5. OPERATING COSTS 202.70 455.30 658.00 0.22 0.50 0.72 30 ?56 6. STAFF 0.00 2254.27 2254.27 0.00 2.44 2.44 BASE COST 8097.04 7762.87 15859.91 8.77 8.41 17.18 51.05 PHYSICAL CONTINGENCIES 197.97 49.33 247.30 0.21 0.05 0.26 80 ?77 PRICE ESCALATION 698.77 0.00 698.77 0.76 0.00 0.76 100.00 TOTAL 8993.78 7812.20 16805.98 9.74 8.46 18.20 53 ?52
4.10 Sources of Finance and Expenditure Schedule
4.10.1 The project will be financed by the ADF, beneficiaries, and Government of Burkina Faso, in accordance with Table 4.3 below: 26
Table 4.3 Sources of Finance IN CFAF MILLION IN UA MILLION PERCENTAGE SOURCES F.E. L.C. TOTAL F.E. L.C. TOTAL (%) ADF 8993.78 4853.64 13847.42 9.74 5.26 15.00 82.42 GVT 0.00 2364.56 2364.56 0.00 2.56 2.56 14.07 BNF 0.00 594.00 594.00 0.00 0.64 0.64 3.52 TOTAL 8993.78 7812.20 16805.98 9.74 8.46 18.20 100.00
4.10.2 The ADF will cover 82.42% of the total project cost, or UA 15.000 million. It will therefore cover all the foreign exchange expenses. The local currency expenses to be borne by the ADF will account for 28.90% of the total project cost. ADF contribution will be used in financing all costs relating to the works, equipment, and services as well as part of the costs relating to the FDL, operating costs and staff (Coordinator’s bonus).
4.10.3 The Government’s contribution amounts to UA 2.56 million, representing 14.06% of the total project cost. It will be used in financing part of the local currency expenses relating to operating costs and staff salaries of the Project Management Unit. The contribution by beneficiaries amounts to UA 0.64 million, and will cover 13.12% of the FDL. It will be in the form of works.
4.10.4 The sources of finance by category of goods and services are presented in Table 4.4 below: Table 4.4 Expenditure by Category and Source of Finance
SOURCES ADF % GVT BNF TOTAL CATEGORIES F.E. L.C. Total ADF 1.Works 0.01 0.01 0.02 0.00 0.00 0.02 100.00 1. Equipment 1.91 0.03 1.94 0.00 0.00 1.94 100.00 2. Services 3.70 3.48 7.18 0.00 0.00 1.94 100.00 3. FDL 2.93 1.31 4.24 0.00 0.64 4.88 86.88 4. Operating costs 0.22 0.35 0.57 0.15 0.00 0.72 79.17 5. Staff 0.00 0.04 0.04 2.40 0.00 2.44 1.64 Base cost 8.77 5.22 13.99 2.55 0.64 17.18 81.43 Physical contingencies 0.21 0.04 0.25 0.01 0.00 0.26 80.77 Price escalation 0.76 0.00 0.76 0.00 0.00 0.76 100.00 Total project cost 9.74 5.26 15.00 2.56 0.64 18.20 82.42
4.10.5 In compliance with the poverty reduction objectives, 35.07% of the project resources have been allocated to the financing of local currency expenses, which were closely examined at appraisal. Furthermore, the local costs structure is justified by the need to continue restructuring the country’s expenditure in favour of the priority social sectors (health and basic infrastructure) under the review of public expenditure and in compliance with its poverty reduction strategy. In that connection, Burkina Faso benefitted from significant debt relief under the HIPC Initiative. It also continues to receive foreign budgetary assistance, particularly to finance the rural development sector, which has greater impact on poverty reduction. ADF contribution to local currency costs will spare the country additional non-concessional debt for reasons of budget discipline and commitment to the donors as regards structural adjustment and poverty reduction.
4.10.6 Expenditure relating to the different project components will comply with the schedule in Table 4.5 below: 27
Table 4.5 Expenditure Schedule by Component (in UA million) Components 2003 2004 2005 2006 2007 2008 TOTAL A. Improvement of farming systems 1.21 0.88 1.31 0.32 0.32 0.32 4.36 B. Local capacity building 3.10 2.25 2.21 1.66 1.47 1.49 12.18 C Project management 0.47 0.24 0.27 0.22 0.22 0.24 1.66 Total Project Cost 4.78 3.37 3.79 2.20 2.01 2.05 18.20
4.10.7 Expenditure by the ADF and Government will comply with Table 4.6 below, based on the implementation schedule: Table 4.6 Expenditure Schedule by Source of Finance (UA million)
SOURCES 2003 2004 2005 2006 2007 2008 Total ADF 4.23 2.82 3.24 1.68 1.50 1.53 15.00 GOVERNMENT 0.44 0.44 0.44 0.41 0.41 0.42 2.56 BNF 0.11 0.11 0.11 0.11 0.10 0.10 0.64 TOTAL 4.78 3.37 3.79 2.20 2.01 2.05 18,21
4.10.8 The recurrent expenses form the bulk of the project operating costs. As indicated in Table 4.7, ADF contribution will increase during the first two (2) years, and decline as from the year 2005. The decline is due mainly to the fact that most of the specialized bodies responsible for implementing specific project components will stop providing services.
Table 4.7 Trend of Recurrent Expenses (UA million)
SOURCES 2003 2004 2005 2006 2007 2008 Total ADF 0.12 0.12 0.10 0.09 0.09 0.08 0.61 GVT 0.44 0.44 0.44 0.41 0.41 0.42 2.56 TOTAL 0.56 0.56 0.54 0.50 0.50 0.50 3.16
5. PROJECT IMPLEMENTATION
5.1 Executing Agency
The project management structure will comprise the following bodies: the Project Management Unit, the village communities (CVGTs, CIVGTs and AOs), local authorities (communes, provinces and regions), specialized agencies (the civil society, the private sector, NGOs and Government technical services), the provincial technical consultation committees, and the National Coordination Committee.
5.2 Institutional Arrangements
5.2.1 Project Management Unit: As already indicated, the project will be managed by a new unit to be placed under the supervisory authority of the Secretary-General of the Ministry of Agriculture. It will entrust the implementation of the project components to specialized agencies 28 with experience in their respective areas of competence, while the community activities will be carried out by rural communities through the CVGTs and CIVGTs and the communes, provinces and regions. However, all the project activities will be coordinated, supervised and controlled by the Project Management Unit, which will be located in Banfora. It will have two stations, one located in Banfora and the other in Orodara (Kénédougou). The Coordinator will be responsible for coordinating, controlling and monitoring all project activities, preparing action programmes and project budgets, preparing bidding documents and requests for disbursements to be submitted to the ADF, and preparing financial statements, monthly project implementation reports, and progress reports. The unit will be headed by a Coordinator, assisted by experienced senior staff. The Coordinator will also have support staff comprising 4 secretaries, 1 accountant, 2 assistant accountants, 4 drivers, 2 tractor drivers, 3 security guards, and 3 clerks.
5.2.2 Specialized Agencies: The Project Management Unit will use private operators, consulting firms, NGOs and farmer organizations in concurrently carrying out project activities on contractual bases. The envisaged activities concern: advisory assistance to village communities, local analysis and planning, the implementation and monitoring of investments, varied training courses, construction of infrastructure, and supply of goods. However, due to lack of specialized and competent operators in certain specific areas, the project will use some Government technical services (Regional Directorate of Agriculture, BUNASOL, INCRA, CNRST). Several of these agencies have already successfully implemented several projects. Others have provided satisfactory services elsewhere. The services of Ministries and specialized agencies will be based on agreements, the drafts of which will be submitted to the ADF for prior approval. The agreements will define the obligations and rights of the contracting parties.
5.2.3 Village Communities: Village and inter-village community activities will be carried out by Village Communities grouped into CVGTs and CIVGTs, which will act through specialized sub- committees (SCS). To that end, they will group together the entire population of the villages concerned and farmer organizations (village groupings and AOs). They will operate in compliance with the planning and programming process, which uses the participatory approach.
5.2.4 Local Authorities: At the level of communes, provinces and regions, activities will be coordinated by the deliberative organs, which will act through technical committees. The deliberative organs will be responsible for: (i) ensuring coherence and complementarity of operations; (ii) determining priorities for structuring investments in relation with the Central Government; iii) validating the PLDs and monitoring their implementation as well as those of provincial programmes.
5.2.5 National Coordination Committee: At the national level, all project activities will be coordinated by the National Coordination Committee, which will also be a consultation forum for rural development partners, the Government (Ministries involved in project implementation) and technical and financial partners, village communities through their representatives, and the civil society. The Coordination Committee already exists. It will continue to coordinate, monitor and guide project activities. It will also be responsible for verifying the consistency of project objectives with national policies, detecting inconsistencies and proposing improvements to the activities. It will review and approve activity programmes and project budgets. It will be chaired by the Secretary-General of the Ministry of Agriculture. Secretarial services for the committee will be provided by the Project Management Unit. The committee will meet twice each year. In view of the importance of the areas in question, the current committee will be strengthened. It will associate other ministries with the project implementation. 29
5.2.6 Local Development Fund (FDL): The FDL will be used in financing community activities in the villages, communes, provinces and regions. To that end, it will be managed by the deliberative organs at the village, inter-village, commune, provincial and regional levels. In fact, each institution will have a deliberative organ. At the village and inter-village level, the fund will be managed by a committee comprising elected representatives of the different villages. At the commune level, the management committee will comprise elected representatives of villages within the commune area. At the provincial level, the management committee will comprise the elected representatives of communes within the province. As for the region, the management committee will comprise the elected representatives of all the provinces within the region.
5.2.7 The FDL will be managed in compliance with a procedure manual and in collaboration with the PLDs. The manual will be prepared and introduced by the PNGT. FDL resources will be domiciled in BCEAO. After control to ensure regularity of procedures, viability and conformity with eligibility and sectoral policies (e.g. school or health maps), the Project Management Unit will prepare a transfer order for the organ receiving the FDL resources. Each institution will open a bank account with an approved financial institution.
5.2.8 The community infrastructure to be constructed will be that indicated in the PLDs of the CVGTs/CIVGTs, communes, provinces and regions designed and prepared through the planning and programming process at the grassroots. The project owners of the community infrastructure will be the institutions concerned, some of which have acquired the relevant experience. The CVGTs/CIVGTs, communes, provinces and regions will, within their territorial jurisdictions, be responsible for carrying out the works and can, with the assistance of the project, recruit contractors and jobbers. The project will provide assistance in management through recruited service providers and technical services with which protocols of agreement will be signed. The selection of priority investments and contractors, as well as the management of funds and worksites will be subject to regular and strict control to ensure transparency. The control will be conducted by the project. A posteriori control will be organized by the Ministry of Agriculture. The accounts will be audited regularly. The project will provide part of the assistance in the form of subsidies to investment; its amount will be specified in the Procedures Manual. The FDL will not finance private commercial activities.
5.3 Implementation and Supervision Schedule
Project activities will cover a period of 6 years, from January 2003 (see Annex 3). This period is justified because the project will start with a preparatory phase, consisting in identifying the new villages to be supervised in the two provinces and in establishing the local development and participatory approaches. During that period, planning workshops will be organized, and the skills and tools required for project management will be provided. This will be done with the assistance of the multidisciplinary team. Given its complexity, the project will be closely monitored by the ADF and the Government. Three (3) supervision missions will be organized by the Bank within the year. Consultations with the other donors concerned and the PNGT will be organized during these missions. The preparatory phase will cover one year. The estimated implementation schedule is summarized in the table below: 30
BURKINA – FASO Local Development Support Project for the Comoé, Léraba and Kénédougou Provinces Implementation Schedule Activities / Actions Initiators Start Duration Board approval ADF September 2002 5 days Staff recruitment Government November 2002 3 months Agreements with specialized agencies Government November 2002 1 month First disbursement Government/ADF January 2003 15 months Procurement of equipment PMU January 2003 3 days Preparation of the environmental management plan PMU/OPE February 2003 2 months Recruitment of consulting firms and NGOs for capacity Government February 2003 3 months building Participatory diagnosis PMU/Cons. Firms/PNGT March 2003 6 months Construction of infrastructure PMU March 2003 5 years Planning workshop: preparation of logical framework PMU June 2003 1 week for operation, overall operational, plan and the operational plan for the first year Establishment of the Local Development Fund PMU June 2003 5 years Development, management of natural resources PMU/ Cons. Firms/ NGO July 2003 5 years Capacity building and professionalization PMU/ Cons. firms/ NGO July 2003 5 years Auditing of accounts Consulting firms April 2004 5 years Mid-term evaluation and workshop PMU/ consulting firms January 2006 70 days Final evaluation and workshop PMU/ Consulting firms January 2009 70 days
5.4 Procurement Arrangements
5.4.1 The procurement arrangements are summarized in Table 5.1 below. All ADF-financed procurements of goods, works and services will comply with Bank rules of procedure for procurement of goods, works and services, or as the case may be, with Bank rules of procedure for the use of consultants, on the basis of the appropriate standard bidding documents of the Bank.
Table 5.1 Procurement Arrangements
EXPENDITURE In UA thousand CATEGORIES ICB NCB SL Others Financing other TOTAL than ADF 1. WORKS - Broadcasting Centre 0.02 (0.02) 0.02 (0.02) 2. GOODS - Rolling stock 0.05 (0.05) 0.05 (0.05) - Computer equipment 0.05 (0.05) 0.05 (0.05) - Other equipment 1.84 (1.84) 1.84 (1.84) - Operating costs 0.72 (0.57) 0.15 0.72 (0.57) 3. SERVICES -Participatory Approach 0.40 (0.40) 0.40 (0.40) -Other services 6.78 (6.78) 6.78 (6.78) 4. FDL 4.88 (4.24) 0.64 4.88 (4.24) 6. STAFF 2.44 (0.40) 2.40 2.44 (0.04) Total 0.12 (0.09) 6.78 (6.78) 10.28 (7.09) 3.20 17.18 (13.99) 31
5.4.2 The Project Management Unit will be responsible for awarding contracts for goods and services, except goods purchased with credit. The unit will have enough resources, skills, expertise and experience to satisfactorily conduct the procurements as indicated below:
i) Works
The contract for the construction of a building and the Broadcasting Centre, amounting to UA 0.02 million, will be awarded through national competitive bidding. There are enough contractors in Burkina Faso that are capable of carrying out these works at competitive prices.
ii) Goods
The contracts for the supply of equipment, rolling stock and furniture, each of which is below UA 50,000, will be awarded through national shopping. There are enough local suppliers and representatives of foreign firms in Burkina Faso to guarantee competitive prices.
The contracts for the supply of equipment, rolling stock and furniture, for amounts exceeding UA 50,000 each, will be awarded through national competitive bidding. There are enough local suppliers and representatives of foreign firms in Burkina Faso to guarantee competitive prices.
The contracts for computer equipment and rolling stock, amounting to UA 0.10 million, will be awarded through national competitive bidding. There are enough local suppliers and representatives of foreign firms in Burkina Faso to guarantee competitive prices.
iii) Services
The contracts with consulting firms and NGOs for the recruitment of experts for the Management Unit, the auditing of project accounts, advisory assistance, training, procurement of short-term consultancy services, amounting to UA 6.78 million, will be awarded through limited competitive bidding.
Supervision and extension activities, amounting to UA 2.28 million, will be conducted under the responsibility of the Ministry of Agriculture, Water Supply and Fishery Resources by the Regional Directorate of Agriculture in Banfora and the PNGT in view of their experience, competence and the equipment they have. These institutions have worked efficiently in previous projects.
Research on the identification of technical procedures, animal health, improvement of soil fertility, and agro-forestry, amounting to UA 0.19 million, will be conducted by BUNASOL, INERA and IFDC – AFRIQUE, and supervised by CNRST because the institutions are the only ones that have the required skills.
iv) Development Fund
The goods, services and works, amounting to UA 4.88 million, will be procured in accordance with procedures to be defined in the Procedures Manual and with the Bank’s prior approval. 32
5.4.3 The text of a General Procurement Information Note has been adopted with the Government of Burkina Faso, and will be issued for publication in Development Business, upon approval of the loan proposal by the Board of Directors.
5.4.4 The following documents will be submitted to the Bank for consideration and approval before publication: (i) Specific Procurement Information Note; (ii) Bidding documents or invitation letters to Consultants; (iii) Evaluation reports on bids submitted by enterprises and suppliers or proposals by Consultants with recommendations on the award of contracts; to that end, the prior opinion of the Bank on the technical analysis report (is) or (is not) required; (iv) Draft contracts, where they have been modified as the drafts are incorporated in the bidding documents.
5.5 Disbursement Arrangements
The FDL and credit funds will be disbursed through accounts opened for that purpose in BCEAO, and by annual tranche on the basis of PDDs and an annual programme approved beforehand by the Government and ADF. Subsequent disbursements will be authorized after justification of at least 50% of the preceding expenditure. To that end, the following documents should be attached to the disbursement request: instruction sheet with information on the sub- project, data sheet with the expected outcomes of the sub-project (production, turnover, expenses, financial performance before and after repayment of the loan, management ratios), payment vouchers prepared by the project for CVGTs and local authorities: in the case of FDL: statements of accounts opened in BCEAO and prepared by the same institution, grant protocol signed by the beneficiary and the project, loan contract signed by the beneficiary and the instruments, and report on FDL activities prepared by the project. The report should mention the names of all the beneficiaries who obtained funds during the period of the report. As regards the operating costs of the Unit, disbursement requests for working capital, as well as repayments and direct payments will be submitted to the ADF, which will approve them in accordance with the usual procedures. Disbursements of working capital and reimbursement of expenditure incurred by the Government will be made through the second account opened in BECEAO.
5.6 Monitoring and Evaluation
5.6.1 Permanent monitoring and evaluation will be conducted by the two PNGT II teams. The permanent monitoring and evaluation will be geared towards: monitoring of implementation (physical and financial implementation), monitoring of impact of project activities on the different beneficiaries and women, as well as environmental monitoring. In performing these duties, the PNGT II monitoring and evaluation team will be assisted by the Ecological Monitoring Centre in Dakar. The internal monitoring and evaluation will be based on performance indicators defined by a consultant. It will also take into account self-evaluations conducted by the population (CVGTs) and local authorities. It will assess the project’s contribution to significant internal changes expected in the following areas: improvement of living conditions, integrated management of soil fertility, building of local capacities and professionalization of village communities, AOs, producers and local authorities, as well as rational management of natural resources.
5.6.2 The external monitoring and evaluation will be conducted by the Studies and Planning Department of the Ministry of Agriculture. The external monitoring and evaluation will be responsible for monitoring the project and ensuring consistency between national and project objectives, as well as proposing adjustments, if necessary. The team responsible for external evaluation will comprise at least 4 national specialist officers. To that end, the project will provide assistance to the Studies and Planning Department of the Ministry of Agriculture to enable it to regularly and always accomplish its mission. The two teams responsible for internal and external 33 monitoring and evaluation will each prepare a monitoring and evaluation report, copies of which will be sent to the ADF and other donors concerned.
5.6.3 The project will organize permanent and close supervision and monitoring, as well as rational management of environmental impacts so as to prevent negative impacts, and ensure that mitigating measures are effectively taken and that they produce the desired effects. It would also be necessary to help the population concerned in preparing plans of action and defining environmental impact supervision, monitoring and management indicators. The environmental impacts will be monitored and evaluated by a consulting firm, which will work under the responsibility of CONAGES. The consultant will prepare the indicators and will be involved in the preparation of monitoring plans of action, the management of environmental impacts and the training of the project and CONAGESE staff in supervision. He/she will work in close collaboration with the multidisciplinary team responsible for putting in place the local development process, extension activities, sensitization, and IEC.
5.6.4 There will be a mid-term review after three years of project implementation, and there will also be a final review. The conclusions and recommendations of these two reviews will be submitted to the ADF for approval after validation by their respective workshops; the results of these workshops will be communicated to the other donors. Consulting firms will be recruited to conduct these reviews, and an independent audit firm to audit the project accounts.
5.7 Financial and Audit Reports
5.7.1 The project accounts will be kept by the Project Management Unit. The unit will keep financial and cost accounting records appropriate for the project, and will organize budget monitoring based on the SYSCOA system. To that end, the project will establish a financial and accounting management system; a consultant will be recruited for that purpose. The Project Management Unit will keep separate accounts for ADF-financed operations. This arrangement also concerns the resources of the credit and FDL components. Agencies, to be bound by agreement to the project, will open separate accounts for operations financed under the project. The project will also recruit an independent firm to establish a financial and accounting management system for the CVGTs, CIVGTs and AOs.
5.7.2 Project accounts will be subject to the usual control by Government services. Moreover, the different above-mentioned accounts and project accounts will be audited once each year by an independent audit firm financed by the project. The terms of reference of the independent firm will be reviewed by the ADF taking into account the guidelines defined by its internal audit service. The audit costs will be covered by proceeds from the ADF loan. The financial statements of the CVGTs and CIVGTs will also be audited by the same independent firm.
5.8 Coordination with the Other Donors
5.8.1 Phase II of the project has been designed as a permanent consultation framework that can improve the living conditions of the population of Comoé, Léraba and Kénédougou provinces. It is within this context that consultations were organized during project preparation and appraisal with the different development partners, the population, NGOs, senior officers of the regions concerned and the authorities. Meetings were organized with the World Bank, the European Union, FAO, UNDP, UNICEF, WHO, WFP, GTZ, AFD, the Embassy of the Kingdom of Denmark, the Embassy of the Kingdom of the Netherlands, and NGOs. These meetings revealed the gravity of the rural development problems of the project area, drew relevant lessons from the experiences of the other donors, harmonized the operations of the different field programmes particularly the PNGT, and proposed appropriate solutions to the Government. 34
5.8.2 Discussions by the different missions with the World Bank, the Kingdom of Denmark, UNDP and the Management Unit of PNGT II ended up with the following conclusion: PNGT II will set up two multidisciplinary teams. The teams will be responsible for extension activities, sensitization and IEC, and will help village communities in assuming ownership of the planning and programming process in the three provinces. They will also conduct monitoring and evaluation operations on a permanent basis. This local development support project for Comoé, Léraba and Kénédougou provinces will build capacities and professionalize village communities, and AOs, as well as increase production in the three provinces; it will also finance structuring investments at the inter-village and provincial levels in the three provinces. Furthermore, it will finance community activities in the villages of the 3 provinces. To that end, it will establish the FDL, which will be governed by the Procedures Manual adopted under PNGT II; it will also establish a credit fund to finance income-generating activities in the three provinces. Collaboration between the two projects will be finalized in a protocol of agreement in line with the ADF standard agreement. Furthermore, in view of the health, education and market gardening national programmes to be financed by the World Bank, this project will not include these activities in its programme. This project will not also finance the village water supply component, which is carried out by two other projects.
5.8.3 In Burkina Faso, aid is coordinated by the General Directorate of Cooperation in the Ministry of the Economy and Finance. It organizes frequent meetings for donors present in Ouagadougou. Aid is also coordinated within the framework of the Consultative Group, and a sectoral round table organized to better define development activities and avoid duplication of operators in the different sectors. There is a donor group which collaborates with the Government. The Bank participates in donor activities in Burkina Faso through contacts with the UNDP. There will regular exchange of correspondence with AFD, the Embassy of the Kingdom of the Netherlands, the Embassy of the Kingdom of Denmark, and the Swiss Cooperation.
6. PROJECT SUSTAINABILITY AND RISKS
6.1 Recurrent Expenses
At project completion, the recurrent expenses are estimated at UA 0.50 million exclusive of the operating costs of community infrastructure, borne regularly by the population. The recurrent costs will be covered after project completion, because the products will be marketed. In fact, the development works will be maintained by the population through the GVGTs, CIVGTs and SCS. Each community investment will be completely managed by a specific SCS. The SCS will have CFAF 150.000 at the time it is set up. The amount will come from the contributions by beneficiaries of the water point. It will be used for maintaining the infrastructure concerned. The transfer of responsibilities from the Unit to the AOs and CVGTs should significantly reduce recurrent expenses. A significant increase in the purchasing power of the producers should guarantee maintenance of the infrastructure. Extension and sensitization activities will be gradually taken over by the population. The same will apply to supervision, extension services, research and development, and training. Through the participatory approach and improvement of local capacities, the population will develop their self-management and autonomy capacity. At project completion, the staff will be placed at the disposal of the Public Service or dismissed.
6.2 Project Sustainability
6.2.1 Sustainability of project activities is guaranteed because the population will be more responsible for managing their activities. Organizational and institutional capacities will be developed and professionalization of CVGTs, CIVGTs, AOs and producers ensured through advisory assistance and training. Integrated soil fertility management, the gradual transfer of technical skills, the intensification of production and environmental monitoring will contribute to 35 the balance of ecosystems because the activities will protect and develop natural resources. Environmental health and hygiene activities will reduce the incidence of water-borne diseases and ensure better sanitation in the immediate surroundings of water points.
6.2.2 Decentralization and State divestiture in favour of the private sector and farmer organizations will also encourage producers to organize themselves so as to further engage in trade, which requires a good understanding of market mechanisms. Through the contribution of village communities and marketing of the products, the project will be able to solve community infrastructure management and maintenance problems generally encountered in rural areas. The credit system will continue to satisfy the economic initiatives of stockbreeders and agro- pastoralists.
6.3 Major Risks and Mitigating Measures
Poor soil, overgrazing and bush fires are potential constraints on the development of agriculture and stockbreeding. However, these risks are reduced by activities relating to the integrated management of soil fertility, works to maintain and restore soil fertility, and the implementation of environmental plans. Improvement of the agro-sylvo- pastoral potential should contain the demographic pressure. Furthermore, an increase in the purchasing power of producers should enable them to maintain the infrastructure.
7. PROJECT BENEFITS
7.1 Financial Analysis
7.1.1 The financial analysis is based on 4 farm models, the main characteristics of which are presented as Annex. An analysis of these models shows the productivity of the various crops and the diversity of situations in the area. The crops are maize, sorghum, groundnut, rice, yam, cowpea, citrus fruits, mango, and cashew nut. For all these models, the area under cultivation and the crops remain the same in the “with project” situation and the “without project” situation. The farming techniques will be improved in the “with project” situation by the increased use of suitable technological methods (development of agromineral materials, organic fertilizers, high-yield crops, etc.). The assumption is that the producers will use family labour for the crops, except fruit trees. The characteristics of the four models and the net incomes with and without project are presented in Annex 8.
7.1.2 An analysis of the results of the different models in the "with project" situation shows that the farmers’ incomes would increase. The increase stands at 37% for model 1, 41% for model 2, 46% for model 3, and 12% for model 4. In fact, the income increased from CFAF 820,290 to CFAF 1,120,960 for model 1, from CFAF 956,500 for model 2, from CFAF 358,522 to CFAF 1,632,109 to CFAF 1,835,200 for model 4. These incomes are quite sufficient, considering that the poverty line is CFAF 75,000.
7.2 Economic Analysis
7.2.1 As regards the economic analysis, the life of the project has been estimated at 20 years. The economic analysis is based on a comparison of the “without project” situation and the “with project” situation. All project expenses, as well as the operating expenses of producers have been taken into account. They are estimated on the basis of economic prices. Customs duties have been excluded. However, family labour used in the farms has not been assessed. As regards the project benefits, account has been taken of cereals, vegetable crops, and oilseed crops, and fruit trees and cashew nuts are grown mainly for export; their economic price is equivalent to the export price. 36
Since the other products are grown mainly for local consumption, their economic prices are those of the import parity adjusted to the farm. From this analysis, the rate of return stands at 14%. The rate is satisfactory because it is above the marginal efficiency of capital, which could stand at 14% in Burkina Faso.
7.2.2 In the short term, the project will be exempted from duties and taxes, and will not have significant effect on the Government’s fiscal revenue. However, State revenues will eventually increase as a result of an increase in tax and duty collection. In fact, the forest tax will contribute to the State budget. With the intensification of agriculture, there will be an increase in the export of agricultural products, as well as duties and taxes collected from the marketing of the project products. Furthermore, the increase in milk production will contribute to reducing the import of these products the value of which is estimated at CFAF 8 billion per year. The project will therefore have a positive impact on public finance since the farms and milk factories will be self-financing after project implementation.
7.3 Social Impact Analysis
7.3.1 The women will be associated with project implementation at all levels (production, supervision, outreach activities, project management unit). They will participate in training, literacy, post-literacy, technical training, as well as training in farm management and land use. They will benefit from decentralized credit facilities, which would enable them to finance gainful activities and increase family incomes, as well as generate investments conducive to further integration into the market economy.
7.3.2 The project will also contribute to the improvement of the health, nutritional and educational status of the population. It is intended for producers who receive assistance from the State regularly. The project would reduce the negative impact of such assistance on public finance because the stockbreeders would gradually control the organization and management of their lands. Intensive production would foster the substitution of imported products, and this would improve the country’s trade balance. The project will also contribute to the self-financing of the forest sector through the forest development fund.
7.3.3 The project will contribute to poverty reduction among the population of the 3 provinces. In fact, intensification of production would increase the incomes of producers and improve their purchasing power. Such improvement would enable households to cover their food expenses, which are currently 32% below the vital calorie intake. Furthermore, women involved in agro- sylvo-pastoral operations would also earn income above the poverty line. The project will also contribute to job creation upstream and downstream, and to the involvement of several economic operators (suppliers of factors of production, execution agencies, traders and people processing project products); this should distribute the additional income from the project and curb the rural exodus of youths whose situation would be improved. The youths would be involved in farming and stockbreeding activities.
7.4 Sensitivity Analysis
The rate of return stands at 14.63% when expenses by farmers increase by 10% and at 9.74% when income is reduced by 10%. These sensitivity tests show that the project remains viable despite the increase in expenses. However, it is very sensitive to a decline in income. 37
8. CONCLUSIONS AND RECOMMENDATIONS
8.1 Conclusions
The project will have the merit of rehabilitating the cereals, vegetable, oily foods and fruits sub-sectors, as well as strengthening the management capacity of the village communities of producer AOs and professionalizing them. This will substantially increase production, which would provide additional income to the population and contribute to poverty reduction in the project area, as well as to enhance food security. In fact, the project will supply 79,000 tonnes of cereals, and the increase in income will range from 12% to 40%. The project will also contribute to improving the balance of payments, because it would allow for fruit exports and reduce cereal imports. The project will also have a positive impact on the increase of per capita income and on the people’s purchasing power. This situation would substantially change the structure of household expenses. Project implementation would also help to create new permanent and temporary jobs, and thereby reduce the rural exodus of youths to the urban centres. The project will foster the emergence of women and their integration into the economic circuits. The project will also serve as a coherent framework with activities geared towards local development and aimed at the conservation and rational exploitation of natural resources. In its current design, the project is technically possible, as well as financially and economically viable. The economic rate of return stands at 15%.
8.2 Recommendations and Loan Approval Conditions
In view of the above-mentioned considerations, it is recommended that Burkina Faso be granted an ADF loan not exceeding UA 15.00 million. The loan will be subject to the following conditions:
a) Conditions precedent to effectiveness of the loan agreement:
i) Effectiveness of the loan shall be subject to fulfilment, by the Borrower, of the conditions stipulated in Section 5.0.1 of the general conditions.
b) Conditions precedent to the first disbursement:
i) provide the Fund with evidence of the establishment of the Project Management Unit (see paragraph 5.2.1);
ii) provide the Fund with evidence of the appointment of the Coordinator of the Project Management Unit, the CV, and particularly qualifications and experience of whom would have been deemed acceptable by the Fund (see paragraph 5.2.1);
iii) provide the Fund with evidence of having opened: (a) two accounts in BCEAO to receive the Local Development Fund (FDL) resources and the loan resources intended for the working capital and reimbursement of expenditure incurred by the Government under the project; (b) an operations account in a commercial bank to receive resources for the operating expenses of the project; and (c) an account in the Treasury to receive the resources of the Government’s counterpart contribution (see paragraph 5.2.7); 38
iv) communicate to the Fund, for prior approval, the draft protocol of agreement to be concluded with the National Land Management Programme Phase II for the establishment of the planning and programming process at the grass roots and implementation of the monitoring and evaluation sub-component (see sub-section 5.8). c) Other Conditions:
In addition, the Borrower shall:
i) communicate to the Fund, not later than 31 December 2003, the agreements concluded between the project and the partner services responsible for implementing specific project components (see paragraph 5.2.2);
ii) submit to the Fund, not more than twelve (12) months following the signing of the Loan Agreement, the action programmes for environmental management, as well as the control and monitoring of environmental impacts (see paragraph 5.6.3);
iii) submit to the Fund, not more than six (6) months following the signing of the Loan Agreement, the Procedures Manual defining the eligibility criteria for the use of the local investment fund (see paragraph 4.2.7). ANNEX 1 BURKINA FASO LOCAL DEVELOPMENT SUPPORT PROJECT FOR COMOE, LERABA AND KENEDOUGOU PROVINCIES
This map has been drawn exclusively for the use of the readers of the report to which it is attached. The names used and the borders shown do not imply on the part of the Bank Group and its members any judgement concerning the legal status of a territory or any approval or acceptance of these borders. ANNEX 2
BURKINA FASO LOCAL DEVELOPMENT SUPPORT PROJECT FOR COMOE, LERABA AND KENEDOUGOU PROVINCES ORGANIZATION CHART
MINISTRY OF AGRICULTURE
GENERAL National SECRETARIAT Coordination Committee
High Commission Prov. Coordination Committee
Comm. Coord. C’tee
Management Unit Technical Committee
Marketing Credit & Savings Input Supply Admin. & Fin. NS Develop. & Reconstruction Extension and Environment. Management of AOs & E.A. R&D Control
Specialized Agencies Cons. Firms /NGO/IFR
AO Marketing CVGT/CIVGT AO Supplies ANNEX 3 Page 1 of 3 BURKINA FASO LOCAL DEVELOPMENT SUPPORT PROJECT Project Cost and List of Goods and Services
Description Unit Unit Price 2003 2004 2005 2006 2007 2008 Total % F.E. F.E. Cost Fin. Qty Cost Qty Cost Qty Cost Qty Cost Qty Cost Qty Cost Qty Cost Component A: Improvement of Farming Systems A1- INTEGRATED MANAGEMENT OF SOIL FERTILITY
02 EQUIPMENT SPECIFIC EQUIPMENT Lump. 2000.00 2000.00 2000.00 2000.00 2000.00 0 10000.00 100.00 10000.00 ADF EQUIPMENT PACKAGES U 2000.00 100 200000.00 100 200000.00 300 600000.00 500 1000000.00 100.00 1000000.00 ADF A2 RURAL AREAS OCCUP. PLAN
03 SERVICES PREPARATION POER U 100000.00 1 100000.00 1 100000.00 100.00 100000.00 ADF WORKSHOP U 750.00 3 2250.00 3 2250.00 20.00 450.00 ADF A3 RESEARCH AND DEVELOPMENT
03 SERVICES EXPERT / BUNASOL S / YR 9400.00 1 9400.00 1 9400.00 2 18800.00 0.00 ADF EXPERT / CNRST S / YR 9400.00 1 9400.00 1 9400.00 1 9400.00 3 28200.00 0.00 ADF EXPERT / INRA S/ YR 29400.00 2 58800.00 2 58800.00 2 58800.00 6 176400.00 0.00 ADF EXPERT / IFDC AFRIQUE S/ 4870.00 6 29220.00 5 24350.00 11 53570.00 100.00 53570.00 ADF MTH EXPERT / safgrade S /YR 58440.00 2 116880.00 1 58440.00 3 175320.00 100.00 175320.00 ADF A4 EXTENSION & SUPERVISION
03 SERVICES Refresher course/ Advisers PERS 2000.00 41 82000.00 41 82000.00 80.00 65600.00 ADF 05 OPERATING COSTS Travel expenses Lump. 20000.00 20000.00 20000.00 20000.00 20000.00 20000.00 120000.00 0.00 0.00 ADF 06 STAFF Director DRA S / YR 5550.00 2 11100.00 2 11100.00 2 11100.00 2 11100.00 2 11100.00 2 11100.00 12 66600.00 0.00 0.00 GVT EMPLOYEES S/ YR 1500.00 163 244500.00 163 244500.00 163 244500.00 163 244500.00 163 244500.00 163 244500.00 978 1467000.00 0.00 0.00 GVT A5 LAND SECURITY
03 SERVICES Inst. & Legal Framework S/ 6000.00 4 24000.00 4 24000.00 100.00 24000.00 ADF MTH A6 MON./MAN./ ENVIRON. IMPACT
02 EQUIPMENT Sundry equipment Lump. 15000.00 15000.00 100.00 15000.00 ADF Computer equipment Lump. 20000.00 20000.00 100.00 20000.00 ADF 03 SERVICE 0.00 EXPERT S/ 4870.00 24 116880.00 24 116880.00 24 116880.00 72 350640.00 100.00 350640.00 ADF MTH 05 OPERATING COSTS Travel U 6000.00 2 12000.00 2 12000.00 2 12000.00 2 12000.00 2 12000.00 2 12000.00 12 72000.00 50.00 36000.00 ADF
Base Cost 1073430.00 766870.00 1074680.00 289600.00 289600.00 287600.00 3781780.00 1850580.00 Physical Contingencies 26900.00 23400.00 63400.00 3400.00 3400.00 3200.00 123700.00 108100.00 Price Escalation 21609.90 25708.20 70711.20 1144.00 1408.00 1254.00 121835.30 121835.30 Total Component A 1121939.90 815978.20 1208791.20 294144.00 294408.00 292054.00 4027315.30 2080515.30 ANNEX 3 Page 2 of 3
Description Unit Unit Price 2003 2004 2005 2005 2006 2007 Total % F.E. F.E. Cost Fin.
Qty Cost Qty Cost Qty Cost Qty Cost Qty Cost Qty Cost Qty Cost Component B: Capacity Building and Professionalization
B1- PLAN.&PROG PROCESS
01 WORKS Establishment radio station Lump. 10000.00 10000.00 60.00 6000.00 ADF 02 EQUIPMENT Computer equipment Lump. 10000.00 10000.00 100.00 10000.00 ADF Broadcasting equipment Lump. 30000.00 30000.00 100.00 30000.00 ADF 03 SERVICES Participatory approach Lump. 750000.00 750000.00 750000.00 350000.00 350000.00 350000.00 3300000.00 20.00 660000.00 ADF WORKSHOP U 5000.00 5 25000.00 1 5000.00 1 5000.00 7 35000.00 40.00 14000.00 ADF Socio-economic study Lump. 60000.00 60000.00 100.00 60000.00 ADF 05 OPERATING COSTS Travel Lump. 50000.00 50000.00 50000.00 5000.00 5000.00 5000.00 165000.00 0.00 0.00 ADF GVT B2 STR./PROFES/VILL./COM.
02 EQUIPMENT Village community Lump. 500000.00 10000.00 510000.00 100.00 510000.00 ADF 03 SERVICES Training of trainers PERS 2000.00 40 80000.00 2000.00 40 82000.00 80.00 65600.00 ADF Literacy/ functional PERS 125.00 500 62500.00 500 62500.00 500 62500.00 500 62500.00 2000 250000.00 40.00 100000.00 ADF Training officials/CVGT/CIVT PERS 3250.00 6 19500.00 10 32500.00 10 32500.00 26 84500.00 100.00 84500.00 ADF Thematic training U 2000.00 2 4000.00 8 16000.00 8 16000.00 8 16000.00 8 16000.00 8 16000.00 42 84000.00 100.00 84000.00 ADF Field trips U 2000.00 4 8000.00 4 8000.00 4 8000.00 12 24000.00 80.00 19200.00 ADF Training/officials/local auth. SESS. 5000.00 3 15000.00 3 15000.00 3 15000.00 3 15000.00 12 60000.00 40.00 24000.00 ADF Training/part. Approach SESS. 2500.00 2 5000.00 2 5000.00 2 5000.00 2 5000.00 1 2500.00 1 2500.00 10 25000.00 80.00 20000.00 ADF Advisory assistance Lump. 30000.00 30000.00 30000.00 30000.00 120000.00 100.00 120000.00 ADF 05 OPERATING COSTS Meeting Meetin 250.00 10 2500.00 18 4500.00 18 4500.00 18 4500.00 64 16000.00 20.00 3200.00 ADF g B3 STR./PROFES/PRODUCERS
02 EQUIPMENT AO Support Fund Lump. 100000.00 100000.00 100.00 100000.00 ADF 03 SERVICES Diagnosis AO Lump. 30000.00 30000.00 100.00 30000.00 ADF Advisory support Lump. 50000.00 50000.00 50000.00 50000.00 50000.00 50000.00 300000.00 100.00 300000.00 ADF Training Plan Lump. 5000.00 5000.00 100.00 5000.00 ADF Specific training courses U 2000.00 2 4000.00 8 16000.00 10 20000.00 10 20000.00 10 20000.00 10 20000.00 50 100000.00 100.00 100000.00 ADF Studies growth subsectors S/YR 10000.00 2 20000.00 2 20000.00 100.00 20000.00 ADF Market surveys S/M 10000.00 2 20000.00 2 20000.00 100.00 20000.00 ADF Organization/renc/prod/ache Lump. 20000.00 10000.00 10000.00 40000.00 100.00 40000.00 ADF Com.Promo. (BUDG/PUB/SI) Lump. 10000.00 10000.00 20000.00 100.00 20000.00 ADF Constit./funct/meeting Lump. 0.00 15000.00 15000.00 15000.00 45000.00 100.00 45000.00 ADF Supp./org/supply/inputs Lump. 20000.00 20000.00 100.00 20000.00 ADF Supp./multi/seed/improv. Lump. 10000.00 10000.00 10000.00 30000.00 100.00 30000.00 ADF Supp./creation/fruit/nurseries Lump. 20000.00 20000.00 20000.00 0.00 60000.00 100.00 60000.00 ADF Study trip Lump. 10000.00 10000.00 10000.00 10000.00 40000.00 40.00 16000.00 ADF B4 STR./PROFESS/PRODUCERS Advisory support Lump. 50000.00 50000.00 50000.00 50000.00 50000.00 50000.00 300000.00 100.00 300000.00 ADF Thematic training Lump 15000.00 20000.00 20000.00 20000.00 0.00 0.00 75000.00 100.00 75000.00 ADF Study trip Lump 10000.00 10000.00 10000.00 10000.00 10000.00 0.00 50000.00 40.00 20000.00 ADF B5 DEVELOPMENT FUND
04 FDL FDL Lump. 750000.00 750000.00 750000.00 750000.00 750000.00 750000.00 4500000.00 60.00 2700000.00 ADF BNF Base Cost 2727500.00 2004500.00 1953500.00 1431000.00 1255500.00 1248500.00 10620500.00 5711500.00 Physical contingencies 71250.00 6450.00 5450.00 950.00 500.00 500.00 85100.00 65920.00 Price escalation 52450.50 59063.40 83645.10 101580.70 105920.00 125400.00 528059.70 412541.70 Total Component B 2851200.50 2070013.40 2042595.10 1533530.70 1361920.00 1374400.00 11233659.70 6189961.70
ANNEX 3 Page 3 of 3
Désignation Unité Prix Unitaire 2003 2004 2005 2006 2007 2008 Total % F.E F.E. Cost Fin. Qté Cost Qty Cost Qty Cost Qty Cost Qty Cost Qty Cost Qty Cost Component C: Project Management 02 EQUIPMENT Vehicles U 15000.00 3 45000.00 3 45000.00 100.00 45000.00 ADF Computer equipment Lump. 20000.00 20000.00 100.00 20000.00 ADF Electronic information Lump. 5000.00 5000.00 100.00 5000.00 ADF Office furniture Lump. 30000.00 30000.00 0.00 ADF 03 SERVICES Auditing of Accounts Lump. 10000.00 10000.00 10000.00 10000.00 10000.00 10000.00 60000.00 100.00 60000.00 ADF Mid-term evaluation S/M 4870.00 4 19480.00 4 19480.00 100.00 19480.00 ADF Final evaluation S/M 4870.00 4 19480.00 4 19480.00 100.00 19480.00 ADF Staff recruitment Lump. 25000.00 25000.00 100.00 25000.00 ADF Establishment/Accounting Lump. 70000.00 70000.00 100.00 70000.00 ADF Training project staff Lump. 25000.00 25000.00 25000.00 25000.00 25000.00 25000.00 150000.00 80.00 120000.00 ADF 05 OPERATING COSTS Vehicles Lump. 22500.00 22500.00 22500.00 22500.00 22500.00 22500.00 135000.00 50.00 67500.00 ADF GVT Management costs Lump. 15000.00 15000.00 15000.00 15000.00 15000.00 15000.00 90000.00 80.00 72000.00 ADF GVT Specialized agency Lump. 20000.00 20000.00 20000.00 60000.00 40.00 24000.00 ADF GVT 06 STAFF Coordinator S/YR. 2496.00 1 2496.00 1 2496.00 1 2496.00 1 2496.00 1 2496.00 1 2496.00 6 14976.00 GVT Financial Expert S/YR. 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 6 43200.00 GVT Agro-economist S/YR. 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 6 43200.00 GVT Socio-economist S/YR. 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 6 43200.00 GVT Irrigation Engineer S/YR. 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 6 43200.00 GVT Agronomist S/YR. 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 6 43200.00 GVT Communication Expert S/YR. 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 6 43200.00 GVT Management Controller S/YR. 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 6 43200.00 GVT Heads of Branches S/YR. 7800.00 2 15600.00 2 15600.00 2 15600.00 2 15600.00 2 15600.00 2 15600.00 12 93600.00 GVT Secretaries S/YR. 3031.00 4 12124.00 4 12124.00 4 12124.00 4 12124.00 4 12124.00 4 12124.00 24 72744.00 GVT Accountant S/YR. 3211.00 1 3211.00 1 3211.00 1 3211.00 1 3211.00 1 3211.00 1 3211.00 6 19266.00 GVT Accountant's assistants S/YR. 2571.00 3 7713.00 3 7713.00 3 7713.00 3 7713.00 3 7713.00 3 7713.00 18 46278.00 GVT Drivers S/YR. 1341.00 4 5364.00 4 5364.00 4 5364.00 4 5364.00 4 5364.00 4 5364.00 24 32184.00 GVT Clerks S/YR. 1285.00 5 6425.00 5 6425.00 5 6425.00 5 6425.00 5 6425.00 5 6425.00 30 38550.00 GVT Security guard S/YR. 1226.00 3 3678.00 3 3678.00 3 3678.00 3 3678.00 3 3678.00 3 3678.00 18 22068.00 GVT Bonuses/Coordinator S/YR. 5900.00 1 5900.00 1 5900.00 1 5900.00 1 5900.00 1 5900.00 1 5900.00 6 35400.00 ADF Legal counsel S/YR. 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 1 7200.00 6 43200.00 GVT Base cost 407611.00 212611.00 232091.00 192611.00 192611.00 212091.00 1449626.00 547460.00 Physical contingencies 15750.00 5750.00 5750.00 3750.00 3750.00 3750.00 38500.00 23350.00 Price escalation 7091.25 3862.50 7546.95 7224.75 8892.00 14260.00 48877.45 48877.90 Total Component C 430452.25 222223.50 245387.95 203585.75 205253.00 230101.00 1537003.45 619687.90
SUMMARY TABLE
Component total base cost 4218541.00 2983981.00 3260271.00 1913211.00 1735711.00 1748191.00 15859906.00 8097040.00 Physical contingencies 113900.00 35600.00 74600.00 8100.00 7450.00 7450.00 247100.00 197970.00 Total price escalation 81151.65 88634.10 161903.25 109949.45 116220.00 140914.45 698772.90 698772.90 Grand Total 4413592.65 3108215.10 3496774.25 2031260.45 1859381.00 1896555.45 16805778.90 8993782.90 Annex 4
BURKINA FASO Local Development Support Project for Comoé, Léraba and Kénédougou Provinces Farmers’ Incomes
Model Crops Area per Crop Farm Size Net Income Net Income % increase in (Ha) (Ha) Without With Project income Project (CFAF) (CFAF) 1 Millet 0.5 White sorghum 1 Red sorghum 0.5 820 290 1 120 960 37 Maize 4 8 Ha Cow pea 0.50 Woandzou 0.50 Groundnut 1 2 Millet 0.5 White sorghum 1 986 500 1 398 700 41 Red sorghum 0.5 Maize 3 7 Ha Cow pea Yam 1 Woandzou 0.50 3 Millet 0.50 White sorghum 1 Red sorghum 0.50 Maize 2.50 Rice 0.50 358 522 524 385 46 Cowpea 0.50 6 Ha Woandzou 0.50 Millet 0.50 White sorghum 1 Red sorghum 0.50 4 Maize 3 Cowpea 0.50 1 632 109 1 835 200 12 Woandzou 0.50 9 Ha Citrus fruit 1 Mango 1 Cashew nut 1 ANNEX 5 BURKINA FASO LOCAL DEVELOPMENT SUPPORT PROJECT Project Economic Rate of Return
Invest. Oper. Costs Operating Total Income Profits Situation Cash Flow Year Project Project Costs Costs with project without project 2003 3701585 516956 402144 4620685 2388901 -2231784 50178398 -52410182 2004 2467035 516956 1329719 4313710 7166703 2852993 34737103 -31884110 2005 2761798 498493 2761724 6022015 38222416 32200401 25089197 7111204 2006 1414718 498493 4296016 6209227 47778039 41568812 34737103 6831709 2007 1237218 498493 5005019 6740730 56000000 49259270 34737103 14522167 2008 1249698 0 5114305 6364003 56933077 50569074 34737103 15831971 2009 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2010 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2011 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2012 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2013 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2014 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2015 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2016 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2017 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2018 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2019 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2020 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2021 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2022 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2023 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2024 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2025 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2026 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2027 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2028 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2029 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2030 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2031 0 0 5114305 5114305 56933077 51818772 34737103 17081669 2032 0 0 5114305 5114305 56933077 51818772 34737103 17081669 ERR 15.09 ANNEX 6
BURKINA FASO
LOCAL DEVELOPMENT SUPPORT PROJECT FOR COMOE, LERABA KENEDOUGOU PROVINCES
Yield and Output
Crops Area of the 3 Area involved Current Yield Yield With Current Output With Additional provinces in the project Project Output Project Output (Ha) (Ha) Kg/ha (T) (Kg/Ha) (T) (T) Millet 5 490 3 400 600 1 200 2 040 4 080 2 040 White sorghum 20 900 6 800 720 1 300 4 896 8 840 3 944 Red sorghum 3 770 3 400 750 1 300 2 550 4 420 1 870 Maize 82 100 63 500 1 500 2 600 95 250 16 100 69 850 Rice (lowland) 5 560 600 3 200 5 500 1 920 3 300 1 380 Cow pea 2 510 1 200 800 1 300 960 1 560 600 Yam 1 360 410 5 100 13 400 2 091 5 494 3 403 Groundnut 19 100 5 730 800 1 700 4 584 9 741 5 157 Woandzou 2 900 420 800 1 300 336 546 210 Citrus fruits 7 240 7 240 14 000 16 000 101 360 115 840 14 480 Mango 11 350 11 350 12 000 14 000 136 200 158 900 22 700 Cashew nut 5 700 5 700 900 1 200 5 130 6 840 1 710 ANNEX 7 BURKINA – LOCAL DEVELOPMENT SUPPORT PROJECT FOR COMOE, LERABA, AND KENEDOUGOU PROVINCES SUMMARY TABLE OF BANK GROUP OPERATIONS (Amounts in UA million) Approval Date Date of Effectiveness Closing Date Commit- Amount Percent. Date ment Disbursed NB Srce Sce Inst S sect Project Name signature Disbursed
1 ADF F PL 1 AG Bagré Dam Project 15-Jun-89 17-Aug-89 15-Mar-90 31-Dec-96 33.18 25.87 78.0% 2 ADF T ET 1 AG Rural development study for Piéla-Bilanga 25-May-92 12-May-93 21-Sep-94 31-Dec-96 0.46 0.36 78.2% 3 ADF F PL 1 AG Rural development project for Piéla-Bilanga 25-May-92 30-Dec-93 21-Aug-94 31-Dec-99 9.44 6.20 65.7% 4 ADF F PL 1 AG Natural resources management BAZEGA 24-Nov-93 30-Dec-93 13-Feb-95 31-Jan-01 8.50 8.49 99.9% 5 ADF F PL 1 AG Rural water supply project 24-Nov-93 30-Dec-93 20-Feb-95 31-Dec-99 8.52 3.26 38.3% 6 ADF T ET 1 AG Irrigation development study on DI Zone 17-Sep-97 11-Nov-97 07-Oct-98 31-Dec-00 0.82 0.27 33.2% 7 ADF T ET 1 AG Rural development study on 3 provinces 17-Sep-97 11-Nov-97 07-Oct-98 31-Dec-00 0.70 0.27 38.9% 8 ADF T ET 1 AG Study on small dams 11-Mar-98 28-May-98 - 31-Dec-00 0.71 0.16 22.8% 9 ADF F PL 1 AG Livestock development study for Soum 29-Mar-00 28-Aug-00 30-Sep-07 9.99 0.00 0.0% AG Total 72.32 44.88 62.1% 10 ADF F PL 3 TR Road Maintenance Programme 09-Jan-97 13-Feb-97 26-Nov-97 31-Dec-02 10.00 2.64 26.4% TR Total 10.00 2.64 26.4% 11 ADF F PL 5 PU Ziga Dam 15-Dec-97 05-Feb-98 - 31-Dec-05 4.74 - 0.0% 12 ADF T TA 5 PU Sanitation and drinking water supply study 22-Mar-00 28-Aug-00 - 31-Dec-02 0.97 - 0.0% PU Total 5.71 0.00 0.0% 13 ADF F PL 6 SO Improvement of the quality of primary and secondary 28-Aug-91 17-Jul-92 23-Apr-93 31-Dec-00 9.21 7.50 81.4% education 14 ADF F PL 6 SO Education IV 16-Jul-97 05-Sep-97 03-Dec-98 31-Dec-02 16.50 1.52 9.2% 15 ADF F PL 7 SO Renovation of Dori and Djibo health units 16-Dec-91 17-Jul-92 17-Aug-93 31-Dec-96 10.96 8.09 73.8% 16 ADF F PL 7 SO Health Project II 06-Oct-99 - - 31-Dec-04 10.00 - 0.0% 17 ADF F PL 8 SO Poverty Programme for communal areas 10-Dec-98 05-Feb-99 - 31-Dec-04 14.00 - 0.0% 18 ADF F PL 8 SO Poverty Programme for communal areas 10-Dec-98 05-Feb-99 - 31-Dec-04 1.50 - 0.0% Sub-Total 62.17 17.12 27.5% Grand Total 150.20 64.65 43.0%