AFRICAN DEVELOPMENT FUND GUI/PAAR/2000/01 Language: English Original: French
APPRAISAL REPORT
THE UPPER GUINEA RURAL DEVELOPMENT (PADRGHG)
REPUBLIC OF GUINEA
NB: This document contains errata or corrigenda (see Annexes)
COUNTRY DEPARTMENT OCDW WEST REGION MARCH 2000
SCCD : N.G.
TABLE OF CONTENTS Page PROJECT BRIEF, EQUIVALENTS AND ABBREVIATIONS...... (i-xiii) SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
1. INTRODUCTION...... 1
1.1 Origin and History of the Project ...... 1 1.2 Performance of Similar Projects...... 2
2. RURAL SECTOR ...... 3
2.1 Background ...... 3 2.2 Plant Production ...... 3 2.3 The Irrigation Subsector...... 4 2.4 Land Tenure System and Land Occupancy...... 4 2.5 Rural Development Institutions...... 5 2.6 Constraints on the Rural Sector...... 6 2.7 Rural Development Policy ...... 6 2.8 Operations of Other Donors ...... 7
3. PROJECT AREA ...... 8
3.1 Location...... 8 3.2 Physical Setting ...... 8 3.3 Socioeconomic Framework...... 8 3.4 Constraints on the Rural Development of the Area ...... 9
4. THE PROJECT ...... 9
4.1 Design and Formulation ...... 9 4.2 Objectives...... 10 4.3 Description of Project Outputs...... 10 4.4 Detailed Description of Activities and Components...... 11 4.5 Project Assumptions and Risks ...... 16 4.6 Project Cost...... 16 4.7 Sources of Financing ...... 17 4.8 Environmental Impact ...... 19 4.9 Impact on Women ...... 20 4.10 Impact on Poverty ...... 21
5. PROJECT IMPLEMENTATION ...... 21
5.1. Coordinating Body...... 21 5.2. Organization and Management ...... 21 5.3. Procurement of Goods and Services ...... 23 5.4. Implementation Schedule ...... 25 5.5. Monitoring and Evaluation...... 26 5.6. Recurrent Costs...... 27 5.7. Project Sustainability...... 27 5.8. Impact on Poverty Reduction...... 28 5.9. Coordination with the Other Donor Agencies...... 28
TABLE OF CONTENTS (cont’d) Page
6. TECHNICAL AND ECONOMIC JUSTIFICATIONS...... 29
6.1. Technical Justifications ...... 29 6.2. Project Benefits...... 29 6.3. Economic and Financial Justifications...... 30
7. CONCLUSIONS AND RECOMMENDATIONS...... 31
7.1. Conclusions...... 31 7.2. Recommendations and Conditions of Loan Approval ...... 31
LIST OF ANNEXES
1 Administrative Map of Guinea 2 Costs by Component 3 Rural Projects in Upper Guinea 4 Project Organization Chart 5 Trend of Output and Values 6 Economic Rate of Return
______This report was prepared by Messrs. E. DOTE, Agricultural Economist, Mission Leader, OCDW 4, G. TIBALDESCHI, Agronomist-Environmentalist, OCDW 4 and a Consultant following their mission to Guinea from 19 June to 19 July 1999. Further information on this project may be obtained from the authors or from Mr. O. AW, Division Manager, OCDW.4 (Extension 4110).
AFRICAN DEVELOPMENT FUND 01. BP. 1387 ABIDJAN 01 Telephone : + 225 20 20 44 44 ; 20 20 48 48 Fax: + 225 20 20 59 01
PROJECT BRIEF Date : 15 July 1999
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 Board of Directors of the Bank Group. More detailed information and guidance should be obtained from the Executing Agency of the Borrower.
1. COUNTRY : Republic of Guinea
2. NAME OF PROJECT : Upper Guinea Rural Development Support Project
3. LOCATION : Prefectures of Kouroussa and Siguiri
4. BORROWER : Republic of Guinea
5. EXECUTING AGENCY : Project Management Unit (PIU)
6. PROJECT DESCRIPTION : The project aims to improve agricultural production. The principal project components are: (A) enhanced production; (B) opening up of the region; (C) support to the organization of the rural community and (D) project management.
7. PROCUREMENT : Goods, services and works will be procured in conformity with ADF rules as follows:
i. National Competitive Bidding: for the hydro-agricultural development works (plains and bottomlands), feeder roads and structures, buildings, other construction work and boreholes; and
ii. Competition on the Basis of a Shortlist: for the recruitment of technical assistance, designs, the audit, mid-term review and other goods.
Other Procurement Methods
i. National Shopping: for vehicles and motorcycles, equipment and other materials and inputs;
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ii. Negotiated Contract: for training and the establishment of village funds;
iii. Goods on credit will be procured in conformity with commercial practices considered acceptable to the Fund.
General Procurement Notice: the text of a General Procurement Notice (GPN) will be agreed with the PMU and issued for publication in “Development Business”, upon approval by the Board of Directors of the Loan Proposal.
Review Procedures: the following documents are subject to review and approval by the Bank before promulgation: (i) specific procurement notices, (ii) bidding documents or requests for proposals from consultants, (iii) evaluation reports on bids from enterprises or suppliers, or on proposals from consultants, including recommendations for the award of contracts, (iv) draft contracts, if different from the drafts included in the bidding documents.
8. TOTAL PROJECT COST : UA 11.70 million
i. Foreign Exchange Cost UA 8.33 million ii. Local Currency Cost UA 3.37 million
9. ADF LOAN : UA 10.00 million
10. OTHER SOURCES OF FINANCING :
i. Beneficiaries : UA 0.45 million ii. Government : UA 1.25 million 11. LOAN APPROVAL DATE : June 2000
12. ESTIMATED START-UP DATE AND DURATION : January 2001, for 5 years
13. CONSULTANCY SERVICES REQUIRED : Technical Assistance for the control of various works (feeder roads, development and construction work), management and training.
14. ENVIRONMENTAL CATEGORY : The project is classified in Environmental Category II.
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EQUIVALENTS AND ABBREVIATIONS (Current July 1999 Rate)
Currency Unit: Guinean Franc (GNF) UA 1 : GNF 1,649.89 US$ 1 : GNF 1235.07
FISCAL YEAR 1 January - 31 December
WEIGHTS AND MEASURES Metric System
ACRONYMS AND ABBREVIATIONS
ADF : African Development Fund ADPL I and II : Agricultural Development Policy Letter AFD : Agence française de développement BCEPA : Bureau central des études et de la planification agricole (Central Agency for Designs and Agricultural Planning) BTGR : Bureau technique du génie rural (Rural Engineering Agency) CAOPA : Centre d'appui aux organisations professionnelles agricoles (Agricultural Organizations’ Support Centre) CENAFOD : Centre national de formation de développement (National Development Training Centre) CIVEC : Caisse intervillageoise d'épargne-crédit (Intervillage Savings and Credit Fund) CRD : Communauté rurale de développement (Rural Development Community) CVEP Comité villageois d'entretien des pistes (Village Road Maintenance Committee) DPDRE : Direction préfectorale du développement rural et de l’environnement (Prefectoral Directorate for Rural Development and the Environment) EDF : European Development Fund IBRD : International Bank for Reconstruction and Development IFAD : International Fund for Agricultural Development IRAE : Inspection régionale de l'agriculture et de l’élevage (Regional Agriculture and Livestock Inspectorate) IRAG : Institut de recherche agronomique de Guinée (Guinea Agricultural Research Institute) MAE : Ministère de l'agriculture et de l’élevage (Ministry of Agriculture and Livestock) NGO : Non-governmental organization ODRIK : Opération de développement rural intégré de Kouroussa (Kouroussa Integrated Rural Development Operation) ORS : Opération riz Siguiri (Siguiri Rice Project) PACV : Programme d'appui aux collectivités villageoises (Village Communities’ Support Programme)
ACRONYMS AND ABBREVIATIONS (cont’d)
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PADRHG : Projet d’appui au développement rural de la Haute Guinée (Upper Guinea Rural Development Support Project) PCK : Projet coton Kankan (Kankan Cotton Project) PDRS II : Projet de développement rural de Siguiri II (Siguiri Rural Development Project II) (continuation of ORS) PNIR : Projet national d'infrastructures rurales (National Rural Infrastructure Project) PPDR : Programme Participatif de Développement Rural en Haute Guinée (Upper Guinea Participatory Rural Development Programme) SCA : Section culture attelée (Animal Draught Cultivation Section) SNPRV : Service national de promotion rurale et de vulgarisation (National Rural Promotion and Extension Service)
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
1. BORROWER : Republic of Guinea.
2. EXECUTING AGENCY : Project Management Unit (PMU) at the BCEPA of the Ministry of Agriculture and Livestock
3. ALLOCATION OF RESOURCES :
a) Amount : UA 10.00 million
b) Terms:
i. Duration : Fifty (50) years including a grace period of ten (10) years.
ii. Service Charge : 0.75 % per year on amounts disbursed and outstanding.
iii. Commitment Charge : 0.50 % on the undisbursed portion of the loan starting one hundred and twenty (120) days after signature of the Loan Agreement.
iv. Repayment : 1% of the principal from the 11th year through the 20th year and 3% per annum thereafter.
4. PURPOSE OF THE LOAN
The ADF resources will be used to finance the totality of the project foreign exchange costs and 50% of the local currency costs, i.e. 85% of the total project cost, net of taxes and customs duties.
5. THE PROJECT
7 a) Objectives
Sector Goal: the sector goal is to contribute to food security and to poverty reduction.
Project Objective: the specific project objective is to improve agricultural production, open up the region and provide support to the organization of rural and local communities.
vi b) Description of Project Outputs
In order to attain the above-mentioned objectives, the project will comprise the development of 1,760 ha. of irrigated plains and 294 ha of bottomlands, the planting of 1,050 ha of cashew trees and 420 ha. of reforestation, the opening up of the region through the rehabilitation of 336 km. of feeder roads and the maintenance of 424 km of feeder roads; the provision of support to the organization of rural and local communities through the professional organization of producers around sectors, the establishment of an environment which will foster the emergence of growth-bearing economic sectors, the establishment of public infrastructure and support to rural supervisory institutions.
The principal project outputs are:
Developments: 1,760 ha of irrigated plains and 294 ha of bottomlands; 1,050 ha of cashew trees and 420 hectares of reforestation (village forestry);
Development of Animal Draught Cultivation: purchase of 250 yokes, training of 1,000 farmers by NGOs or specialized institutions in the areas of animal feed and health, the utilization and maintenance of yokes, the training of 20 blacksmiths;
Improved Technical Routes: support to IRAG and SNPRV;
Operating Resources and Support Measures: mapping coverage of the project area, technical assistance, support to the Kouroussa and Siguiri branches;
Opening Up of the Region: rehabilitation of 336 km and maintenance of 424 km of feeder roads; repairs to 8 culverts and the promotion of 20 Village Road Maintenance Committees (CVEP);
Support to the Organization of Rural and Local Communities: promotion of 124 rice producers’ associations, 40 food producers’ associations and 6 land use management associations, the promotion of around 80 CIVECs, support to 21 CRDs, the establishment of social infrastructure, support to the IRAE and DPDREs of Kankan, Kouroussa and Siguiri;
Project Management: payment of the costs of the Project Coordination Unit (PCU), as well as of monitoring, evaluation and audit costs.
The principal project components are: (i) enhanced production and sustainable management of natural resources, (ii) opening up of the region, (iii) support to the organization of rural and local communities and (iv) project management.
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Summary of Estimated Project Costs by Component
Million GNF Million UA Components F.E. L.C. Total F.E. L.C. Total % Total A. Enhanced Production 5,107 2,903 8,010 1.76 3.10 4.86 41 B. Opening Up of Region 1,636 873 2,509 0.53 0.99 1.52 13 C. Support to the Organization of the Rural 2,945 665 3,610 0.40 1.78 2.18 19 Community D. Project Management 2,703 550 3,253 0.33 1.64 1.97 17 Base Cost 17,382 12,391 4,991 3.02 7.51 10.53 90 Physical Contingency 283 165 448 0.10 0.17 0.27 2 Price Contingency 1,074 410 1,485 0.25 0.65 0.90 8 Total 13,748 5,566 19,315 3.37 8.33 11.70 100
6. SOURCES OF FINANCING
The project will be cofinanced by ADF, the Guinean Government and the beneficiaries in conformity with the following table:
Sources of Financing (in million UA) Sources F.E. L.C. Total % Total ADF 8.33 1.67 10.00 86 Government 0.00 1.24 1.24 10 Beneficiaries 0.00 0.46 0.46 4 Total 8.33 3.37 11.70 100
The ADF loan will cover 100% of the project’s foreign exchange costs as well as 50% of the local currency costs. The Government and beneficiaries will finance the remainder of the local currency costs comprising salaries and part of the “enhanced production” and “opening up” components. The Government shall, in particular, assign to the project the buildings constructed under the former ODRIK and PDRS projects for use as the headquarters of the two branches.
7. PROJECT IMPLEMENTATION
The project will be implemented in conformity with the following indicative schedule:
Implementation Schedule
ACTIVITIES Initiators Start Duration A. ADMINISTRATION 1. Loan Approval ADF June 2000 2. Signature of Loan Agreement Government/ADF July 2000 3. Appointment of Project Manager Government/ADF July 2000 1 month 4. Loan Effectiveness ADF September 2000 5. Preparation of 1st Annual Budget Project Director August 2000 1 month 6. Preparation and Approval of Shortlist of Consultants Government/ADF August 2000 1 month 7. Bidding Government September 2000 3 months 8. Receipt and Evaluation of Bids Government October 2000 1 month 9. Approval of Bid Opening Report ADF October 2000 1 month 10. Signature of Contracts Government November 2000 1 month 11. Commencement of Consultant’s Services Government January 2001 5 years 12. Completion of Consultant’s Services Government/ADF May 2005 5 years 13. Borrower’s Completion Report Government May 2005 3 months 14. ADF Completion Report ADF December 2005 3 months B. PROCUREMENT OF MATERIALS AND EQUIPMENT 15. Bidding, awards and contracts Government/ADF November 2000 3 months C. IMPLEMENTATION OF DEVELOPMENT WORKS 16. Works Start Up Government January 2001 4 years D. TRAINING 17. Start up of on-the job training Government January 2001 5 years 8. PROCUREMENT OF GOODS, CONSULTANCY SERVICES AND WORKS
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The arrangements for the procurement of goods services and works are summarized in the following table. ADF-financed goods services and works shall be procured in conformity with the Bank’s rules of procedure or, depending on the case, the Bank’s rules and procedures for the use of consultants using the relevant Bank standard bidding documents.
Arrangements for the Procurement of Goods, Works and Services
Categories In million UA NCB OTHERS SL GOV. BENEF. TOTAL SERVICES Designs (0.155) 0.155 Personnel (1.012) 0.315 1.327 Training (0.060) 0.060 Technical Assistance (1.896) 1.896 Credit (0.957) 0.957 Support Research (0.001) 0.008 0.008 Operating resources (0.892) 0.091 0.983 Audit and Mid-Term Review (0.122) 0.122 GOODS Materials (0.313) 0.313 Vehicles (0.303) 0.303 Equipment (0.132) 0.030 0.162 Other Goods (photos, maps) (0.582) 0.582 Inputs (0.002) 0.002 WORKS Plains and Bottomlands (0.708) 0.311 1.019 Feeder Roads and Structures (0.966) 0.966 Buildings (0.676) 0.591 1.267 Boreholes (0.388) 0.388 Other Construction Work (0.024) 0.024 Base Cost (2.762) (3.611) (2.815) 1.005 0.342 10.535 Unallocated (1.022) 1.172 Total 11.707
Not Bene : the figures in brackets represent ADF-financed amounts. i. National Competitive Bidding: for the hydro-agricultural development works (plains and bottomlands), feeder roads and structures, buildings, other construction work and boreholes; and
ii. Competition on the Basis of a Shortlist: for the recruitment of technical assistance, designs, the audit, mid-term review and other goods.
Other Procurement Methods iii. National Shopping: for vehicles and motorcycles, equipment and other materials and inputs;
iv. Negotiated Contract: for training and the establishment of village funds;
v. Goods on credit will be procured in conformity with commercial practices considered acceptable to the Fund.
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General Procurement Notice: the text of a General Procurement Notice (GPN) will be agreed with the PMU and will be issued for publication in “Development Business”, upon approval by the Board of Directors of the Loan Proposal.
Review Procedures: the following documents are subject to review and approval by the Bank before promulgation: (i) specific procurement notices, (ii) bidding documents or requests for proposals from consultants, (iii) evaluation reports on bids from enterprises or suppliers or on proposals from consultants including recommendations for the award of contracts, and (iv) draft contracts, if different from the drafts included in the bidding documents.
9. CONCLUSIONS AND RECOMMENDATIONS
Conclusions
The project, as designed, is primarily intended to lay the foundations of sustainable development, based on the emergence, in the village community, of a process of economic and social self-reliance. Such a development is based on the restored confidence of grassroots economic agents who should feel capable of adapting to the different situations and making the best use of available natural resources, provided they are in a favourable environment endowed with all the services (advisory, credit, traders, etc) and support (supervision, training, research and development, basic infrastructure) they require. This project is precisely aimed at fulfilling all those conditions.
The project will thus permit the in-depth sensitization of all the economic agents in the area and the voluntary establishment of viable agricultural associations, followed by enhanced agricultural production and productivity in general. It will thus contribute to food self sufficiency and security, a reduction in rural-urban migration and poverty in that region. The project will also encourage the promotion of young people and women by ensuring they become viable economic agents through training and improved access to credit. The project is technically achievable, economically viable and respects the environmental balance.
Recommendations and Conditions of Loan Approval
In light of the foregoing, it is recommended to grant to the Government of the Republic of Guinea an ADF Loan of approximately UA 10.00 million for the implementation of the project as described in this report, subject to the following special conditions:
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A. Conditions Precedent to Loan Effectiveness
Loan effectiveness is subject to the fulfillment, by the Borrower, of the following conditions:
i. provide ADF with evidence of the establishment of the Project Management Unit with its headquarters at Kankan, and under the direct supervision of the BCEPA; ii. provide ADF with evidence of the appointment of the Coordinator whose CV will have received the prior approval of ADF; iii. provide ADF with evidence of the establishment of a Project Steering Committee responsible for the channeling and coordination of all the project activities; iv. provide ADF with evidence of the allocation to the project of the housing and administrative buildings at Kouroussa and Siguiri which are vital for the smooth operation of the branches in those towns; and undertake to ensure they are in good condition prior to the effective start up of the project activities; v. undertake to implement the conclusions of the land studies for the selection of bottomlands; vi. undertake to submit to ADF standard specifications defining the conditions for the establishment, occupation and management of the irrigation areas, as well as the obligations of the beneficiaries; vii submit to ADF no later than 31 December 2000, the draft agreements to be concluded with IRAG, SNPRV, CENAFOD, SCA and the NGOs.
B. Other Conditions
provide ADF, as from 30 June 2001, with the agreements signed with IRAG, SNPRV, CENAFOD, SCA and the NGOs, as and when they are concluded.
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REPUBLIC OF GUINEA
UPPER GUINEA RURAL DEVELOPMENT SUPPORT PROJECT
PROJECT MATRIX
Authors: Messrs. DOTE and TIBALDESCHI
Date: July 1999
HEADING OBJECTIVELY VERIFIABLE INDICATORS MEANS OF VERIFICATION RISKS SECTOR GOAL 1. Improved Food Security and Reduction in Poverty 1.1. Annual agricultural production has significantly increased and the 1.1.1 Follow up reports of agricultural annual agricultural GDP growth rate is at least 5%. advisers (irrigated rice, upstream rice, terraces) SPECIFIC OBJECTIVES -Enhanced Production; - In the irrigation areas, agricultural production has attained an Follow up report Partial involvement of the beneficiaries in the -Opening Up; average of 3.5t/ha for rice and 2t/ha for the other cereals; implementation of the project and lack of local -Support to the Organization of Rural and Local - Marketing is easy through the increasingly popular weekly skills. Communities. markets; - The local communities are better organized; and - At least 56 km have been rehabilitated and 70 km. are maintained Report annually. OUTPUTS 2.1 Enhanced production Definition of farming activities and systems. Reports Problems of availability and technical know how Improved management and enhancement of natural of local family labour. resources. 2.1.1 Hydro-agricultural Development Substantial increases in amounts sold and in prices following the - service contracts approved by ADF Veto of local authorities and inefficiency of rehabilitation of 1760 ha of plains and 294 ha of bottomlands in the and provisional acceptance reports. chairs of CRDs project area. 2.1.2 Support to Animal Draught Cultivation 250 yokes available on credit for farmers in the area. 2.1.3 Improved Technical Routes IRAG and SNPRV effectively manage technical routes 2.1.4 Operating Resources and Support Measures The project area is covered by aerial photographs and at least two Service contracts approved by ADF and Utilization of piece work recent maps of Siguiri and Kouroussa are available on a 1/50000 scale provisional acceptance reports. no later than 31 December 2000. 2.2 Opening Up -336 km (161 at Kouroussa and 175 at Siguiri) of farm roads are - service contracts approved by ADF - Rehabilitation of feeder roads; rehabilitated and 424 km (274 in Kouroussa and 150 in Siguiri) are and provisional acceptance reports. - Maintenance of feeder roads; maintained with the involvement of the CVEPs and national services. - Construction of culverts - 8 culverts are rehabilitated in Siguiri prefecture; 2.3 Support to the Organization of the Rural and Land problems related to the failure to apply Local Communities Cadastral maps in conformity with the laws in force
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HEADING OBJECTIVELY VERIFIABLE INDICATORS MEANS OF VERIFICATION RISKS - Support to the organization of the rural - 300 rice producers associations are established to ensure the - Report on the establishment of community; autonomous management of the irrigation areas; associations and periodic reports of the - Support to the distribution of inputs and - 100 associations are established around other food products to PMU. equipment; facilitate the independent supply of inputs and the negotiation of - Service contracts approved by ADF - Support to village savings and credit funds: the conditions of sale; missions and periodic reports provided by - Functional Literacy Education; - 6 village land use management associations focused on the CENAFOD, a CAOPA type body and - Public Infrastructure; sustainable farming of bottomlands are established.; SNPRV. - Support to IRAE and DPDRE. - 20 women’s associations with adequate financial resources for the procurement, inter alia, of mills, threshers and hullers; - functional literacy activities are conducted by CENAFOD for the operation of a CAOPA-type body which will be jointly responsible for the “savings-credit” component with SNPRV; - 2 regional delegations (Kouroussa and Siguiri) of the CRG are set up for the establishment of approximately 80 CIVECs; - IRAE and the 3 DPDREs are supported in their roles of coordinators of agricultural development activities in the project - Reports on the establishment of the area; CIVECs. - 40 boreholes, 10 schools and 10 health centres are established in - PMU Reports the prefectures of Kouroussa and Siguiri.
- Service contracts approved by ADF and provisional acceptance reports. 2.4 Project Management - Technical Assistance; - Financial and rural engineering experts to support PMU and the - Recruitment contract approved; periodic - Support to Coordination Unit. two branches; reports provided by TA, DAF and GR. - Recruitment contract approved by ADF - An annual financial audit is carried out to confirm sound project and Annual Audit Report. management using a functional accounting system; - Recruitment contract approved by ADF - An operational review is carried out in the third year of the and mid-term review report. project to ensure the smooth operation of the planned activities; - Minutes and resolutions of the meetings of the Steering Committee. - The steering committee meets regularly to review the activities carried out by the PMU and the operators under the implementation of the project.
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HEADING OBJECTIVELY VERIFIABLE INDICATORS MEANS OF VERIFICATION RISKS ACTIVITIES (Components) RESOURCES - Resource requirements: UA 11.70 million - Loan Agreement and Government Budget Sources of Financing: 1- Enhanced Production and Sustainable ADF: UA 4.15 million; Guinea: UA 1.26 million Natural Resource Management;
2- Opening Up; ADF: UA 1.49 million; Guinea: UA 0.23 million
3- Support to the Organization of the Rural ADF: UA 2.43 million; Guinea : UA 0.03 million and Local Communities. * 4- Project Management ADF: UA 1.93 million; Guinea: UA 0.22 million
1. INTRODUCTION
1.1. Origin and History of the Project
1.1.1. Guinea, a country with a population of approximately 7 million and located to the southwest of West Africa, has considerable and varied natural resources, as well as substantial agro-silvo-pastoral potential. Despite this, the country experienced a long period of economic stagnation following independence. To address this, the Government of the Second Republic initiated a series of economic recovery and financial programmes as from September 1985. These programmes, which brought the economy under control, aimed to reorganize public finance and introduce profound changes to the country's economic rules, based on the encouragement of private initiative, and State disengagement from the productive system.
1.1.2. Agricultural, in particular, food (rice, fruit and vegetables, livestock and fishing products) production has risen significantly as a result of the liberalization of trade, prices and exchange rates, though the terms of trade have deteriorated steadily. However, despite the country’s potential, it has been unable to attain the expected levels of self-sufficiency. Rice imports have remained high over the last few years (220,000 tonnes/yr.), despite the immense, untapped natural resource potential (plains, agroecological diversity, dense water system), especially in Upper Guinea.
1.1.3. Aware of Upper Guinea’s potential role in food production, as well as food security, the Government of Guinea has, on several occasions, expressed its will to see the region become the breadbasket of the country and the subregion on the one hand, and, on the other, initiate development activities through the production and diversification of food products.
1.1.4. The Upper Guinea Rural Development Support Project (PADRHG) was initiated by the Government against this background. Its objective is to enhance food production, and reduce poverty in an area, which is naturally rich, but landlocked. Upper Guinea remains a poor region with untapped potential but has, over the last decade, benefited from several rural development projects which take into consideration support to agricultural production, an improved socioeconomic environment and include hydro-agricultural development works, feeder roads, schools and health centres.
1.1.5. The implementation of a development project in the two prefectures of Kouroussa and Siguiri is justified by the existence of virtually untapped potential and by the determination of the Ministry of Agriculture and Livestock (MAE) to follow through on the past achievements and experience of the Kouroussa Integrated Rural Development Project (ODRIK) and the Siguiri Rural Development Project II (PDRSII) (ref. 1.2) cofinanced by the Bank, by adopting a fresh, better targeted approach in order to ensure the sustainability of the activities, by strengthening the role of the Rural Development Communities (CRDs), producers’ associations, and stepping up support to the private sector. The provision of support to ensure the monitoring of the decentralized organs of the MAE, will strengthen the existing development process, which is based on the initiative of the beneficiaries and the private sector to trigger socioeconomic development in the region, increase agricultural production and reduce poverty. The strategy retained is in keeping with the Bank Group’s operations strategy for Guinea.
1.1.6 It should be recalled that, following the cancellation of the Siguiri project in December 1996, the Government had expressed a wish to have a rural development project
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reformulated on the basis of the positive experiences of previous projects and in keeping with the country’s new agricultural policy. The Bank then commissioned a study from the FAO Investment Centre, which was completed in March 1999. In light of the findings of the study, and at the Government’s request, an appraisal mission visited Guinea in July 1999. This report summarizes the findings of the investigations of the said mission.
1.2. Performance of Similar Projects
1.2.1. The Bank Group has implemented ten projects and conducted three studies in the rural sector, comprising eight projects and two studies in the field of agricultural development, and two projects and one study in fisheries and shrimp aquaculture. Four projects and one study have now been completed. Overall, the agricultural projects have been beset by difficulties, in particular the weakness of the executing agencies and slippage on implementation. Two of the ongoing projects have already been reformulated: the Integrated Rural Development Project (ODRIK) and the Gueckedou Agricultural Project (PAG); one project was restructured (the Kolente Agricultural Project, PAK) and another cancelled, the Siguiri Rural Development Project II (PDRS II). Only two projects, ODRIK and PDRS II concern hydro-agricultural development, opening up of the region and social infrastructure.
1.2.2. The Siguiri Rice Operation (ORS), initiated in 1978, was to contribute to food self- sufficiency through the production of an additional 14,000 tonnes of rice and by improving living conditions in the area. The outcomes were fairly satisfactory and the PDRS II was set up in 1991 to pursue the objectives of the ORS (to reduce the prefecture’s cereal deficit). In fact, over the 1993-1998 period, the project was expected to draw on the achievements of the ORS and create an organizational framework for sustainable rural development. Restructured in 1995, to take into consideration the orientations of the Agricultural Development Policy Letter (ADPL), the principal objectives of the reformulated PDRS II were the rehabilitation of only 2,400 hectares of plains, the development of 650 hectares of bottomlands and the rehabilitation of 290 km of feeder roads. The results in 1997 were disappointing. Unjustified expenditure led to the suspension of donor support with the cancellation of both the ADF and IFAD loans. The disbursement rate on the ADF loan was 1.5% and on the IFAD loan 28%.
1.2.3. The ODRIK project, approved in 1977, only started up in 1981 owing to the lack of a reception facility in Kouroussa and slowness in the recruitment of technical assistance. Initially designed around kenaf production for manufacturing (bag plant), the project was reformulated several times: the manufacturing component was dropped in 1987; the agricultural component was gradually reformulated into an integrated rural development project focused on the promotion of traditional crops (rice, groundnuts and maize) with, as its principal activities in 1991: (i) the establishment of hydro-agricultural infrastructure (1,665 ha of plains and bottomlands development); (ii) the rehabilitation of rural (281 km.) and feeder (50 km.) roads; (iii) the establishment and equipping of 100 boreholes and (iv) the extension and strengthening of the MAE’s basic services. Despite the difficulties observed and slippage on implementation, the primary objectives were attained.
1.2.4. The project impact was positive in respect of water supply to the population and opening up of the area, but the outcomes in respect of hydro-agricultural developments, agricultural production, organization of the rural community and sustainable development were much less conclusive.
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1.2.5. The ODRIK and PDRS II highlighted: i) the weakness of the executing agencies related to the underutilization of existing institutions and poor coordination of activities, as well as a shortage of skilled staff underscoring the need for technical assistance to those projects; (ii) shortcomings in the implementation of rural development projects in Guinea notably the inefficiency of the turnkey development projects on the rice-growing plains and the uneconomic use of production equipment.
1.2.6. The lessons drawn have made it possible to adapt the approaches in new projects and have contributed to a new approach to development aimed at ensuring the accountability of beneficiaries and the promotion of the private sector, a clearer definition of the State’s and stakeholders’ responsibilities, institution building and improved coordination of activities. The PADRHG draws on the positive and negative experiences of projects implemented in the sector.
2. THE RURAL SECTOR
2.1. Background
2.1.1. The agricultural sector represents the country’s principal economic activity and constitutes the main source of income for 70% of the population, and between 1993 and 1995 accounted for an average of 18.5% of GDP formation. Agricultural activities concern approximately 700,000 families of small farmers cultivating an average of 1.69 hectares. Shifting cultivation dominates countrywide, with 4 to 7 year fallow periods depending on the areas and land pressure. Annual average rainfall throughout the country is between 1,200 and 4,200 mm. The cultivable area is estimated at 6 million hectares i.e. approximately 25% of the national territory. The floodable areas are estimated at 180,000 ha. (157,000 of plains and 23,000 ha of bottomlands). But the dry weather flows of many water courses are low or even zero, and limit the opportunities for out-of-season cropping without heavy investment. Surface and ground water resources are plentiful.
2.1.2. The significant potential in cultivable land, the abundance of water resources and topographical, pedological and climatic diversity permit the cultivation of a wide range of agricultural products capable of meeting local demand, and the development of export crops. In terms of economic ranking, livestock breeding comes after plant production and is followed by forestry and fisheries. But the contribution to GDP in 1992 of those three subsectors was fairly low, i.e. respectively: 3.9% for livestock breeding, 2.4% for forestry and 0.2% for fisheries.
2.2. Plant Production
2.2.1. The country comprises four ecological areas. The total crop area is approximately 1.6 million hectares per year, with 48% for rice, 24% for other cereals, 7% for groundnuts, 7% for tubers and around 14% for cash crops such as coffee, oil palm, and cotton. Agricultural production is around 650,000 tonnes of paddy rice, 230,000 tonnes of fonio, 180,000 of unshelled groundnuts, 100,000 tonnes of grain corn, 350,000 tonnes of dry cassava and 90,000 tonnes of millet and sorghum.
2.2.2. However, those outputs are insufficient to meet the real requirements of the country with its 2.8% annual population growth rate. Thus, over the past few years, Guinea has had to import approximately 220,000 tonnes of rice per year.
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2.3. The Irrigation Subsector
2.3.1. At present, the irrigation subsector is characterized by bottomlands and plains development. The ADPL II also provides for the establishment of a surface water management programme through the construction of hillside reservoirs. Bottomlands development was designed as a local agricultural intensification operation to permit the gradual regrouping of production in valley bottoms in conformity with a village land use management approach. The objective is to improve, in stages, the productivity of rice farmers to meet local food requirements and obtain surpluses for the market. The approach stems from the agricultural achievements of the ADF and World Bank-financed Gueckedou project (PAG) and is based on the skills of the forestry piece worker who provides his services in return for payment.
2.3.2. The hydro-agricultural development of bottomlands consists of the transfer of increasing technical know how to farmers: (i) the phasing of works to enable farmers to facilitate the scheduling of their participation in their usual activities’ programme, (ii) increased benefits from the different stages of development (water retention, management of surplus water). It is thus possible to improve water management with simple, least cost techniques, which farmers can afford.
2.3.3. With regard to outputs, the objective of the National Rural Infrastructure Project (PNIR) of 2,100 ha of bottomlands by 1995 was exceeded; indeed, around 6,000 hectares of bottomlands have been developed in five years. With regard to the plains, the results obtained concern primarily the continental plains: 700 ha at Kouroussa (ODRIK) and 5,000 ha at Siguiri (ORS and PDRS II). The medium and long-term programme should cover 40,000 ha by 2005.
2.3.4. The principal constraints identified in the irrigation subsector concern: (i) the accessibility and allocation of land; (ii) the low number of farmers; (iii) the land problem; (iv) confusion in the definition of the role of each operator; (v) difficulty in ensuring protection from high tides in the coastal plains; (vi) the low rate of return on development work and (vii) the administrative management of the different structures by the State.
2.4. The Land Tenure System and Land Occupancy
2.4.1. The rural land tenure system is characterized by the coexistence of customary law, which is widely applied by the rural communities, and modern land legislation under the public lands code. Customary management grants the usufruct to individuals while the land remains under collective or family ownership depending on the region. However, women are excluded from the benefits of customary law and priority is given to local residents thus discouraging the settlement of external investors and the involvement of women in the customary management of the land.
2.4.2. On the other hand, the public lands code which recognizes private ownership guaranteed by the State, is experiencing problems of application and interpretation. It is thinly applied in reality owing to organizational constraints, contradictions among the different texts and between customary management and modern land laws.
2.4.3. In the project area, the principal works concern the rehabilitation of plains which are fully occupied and which cannot alter the current land occupancy situation. On the other hand, in bottomlands where new development works will be carried out, there will have to be a redistribution of land, in conformity with customary law. Indeed, these are lands belonging to families who have already agreed to transfer the usufruct rights to other members of the community.
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2.4.4. Aside from the inevitable disputes which are usually settled by the traditional authorities, the land situation is usually clear in rural areas even with regard to the transfer of usufruct rights pertaining to infrastructure. Consequently, in the project area there will be no particular difficulties concerning the distribution and utilization of developed land on the one hand, and on the other, the need to ensure land security through cadastral surveys and in conformity with the laws in force (land tenure and public lands code) will foster the emergence of a more formal and secure land tenure system.
2.5. Rural Development Institutions
2.5.1. The Ministry of Agriculture and Livestock (MAE) is the institution responsible for rural development. Its principal duties were defined in keeping with the orientations of the ADPL II, in particular: (i) preparation of agricultural sector policy; (ii) identification and formulation of programmes which meet the real requirements of producers and other operators; (iii) the preparation of statistics, monitoring of activities and assessment of the impact of operations; (iv) gradual preparation of legislation; (v) countrywide promotion of farmers’ associations; (vi) identification and formulation of agricultural sector requirements in respect of research and the conduct of research programmes; (vii) support to local communities concerning rural infrastructure and (viii) management of the country’s natural assets.
2.5.2. The MAE comprises: a general secretariat, four technical directorates (agriculture, rural engineering, forests and wildlife, and meteorology), seven attached services, including the Central Agency for Designs and Agricultural Planning (BCEPA), the National Service for the Development of Water Points (SNAPE) and the Guinea Institute of Economic Research (IRAG). At regional level, the MAE is represented by Regional Inspectorates (IRAE) which are also responsible for the implementation and monitoring of rural development activities.
2.5.3. Furthermore, the 303 Rural Development Communities (CRD) involved in the organization of the rural community, fall within the purview of the Ministry of Local Government and Decentralization (MATD). The CRDs are, of all the decentralized organs, the only local communities with elected members representing their districts. Local development activities are prepared and implemented at that level, with corresponding budgets. Local finances are constituted by a tax base covering local residents and the different sectors of economic activity. Administrative supervision is the responsibility of the prefecture through the government services, the decentralized technical services (DPRDE-finance-health, etc) and the Departmental Development Committee.
2.5.4. There are other specialist service providers in the country, especially in Upper Guinea, namely:
i. SMEs and piece workers specializing in rural infrastructure, as providers of services to the CRDs (construction of public infrastructure, health posts, market garden wells, and markets); ii. NGOs responsible for: (a) institutional support to CRDs, literacy education in general and the training of local elected representatives; and (b) the establishment of a producers support system (of the CAOPA type), since the CAOPA-type NGO is responsible for support to agricultural organizations; and (c) support to the operation of rural savings and credit funds in villages where projects are being implemented. (support to growth bearing sectors); iii. financial institutions specialized in the distribution of credit, in particular: (a) the Crédit Rural de Guinée for the establishment and operation of a regional
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delegation, local branches and the establishment of intervillage funds in the project operating areas; and (b) the Credit Mutuel, which will increase its clientele and disseminate its credit system; and iv. private distributors (agricultural trading or other structures) guaranteeing the sustainability of supply of inputs, agricultural and post-harvest equipment.
2.6. Constraints on the Rural Sector
2.6.1. Despite the country’s immense agricultural potential, agricultural development is curbed by a series of constraints, including: unremunerative prices, the failure to provide agricultural credit leading to a shortage of inputs and agricultural equipment, the poor state of repair of the road network, the lack of transport resources and insufficient technical supervision.
2.6.2. One of the recent measures implemented by the Government under the APDL to remove the constraints comprises the decentralization of rural operating structures in order to bring them closer to the field, and their close involvement in the implementation of projects through subcontracts for designs and works supervision.
2.7. Rural Development Policy
2.7.1. More particularly, with regard to rural development and natural resource management, the strategy adopted prioritizes: (i) decentralization and disengagement of the State from productive activities in favour of the private sector; (ii) the accountability and involvement of the local population in the sustainable management of natural resources; (iii) greater participation of producers in the management and scheduling of their interests and (iv) the organization and professionalization of the rural community. These priorities are currently reflected in an institutional decentralization process which still displays a few inconsistencies: land tenure and environmental legislation which are faced with problems of application and multisector, often poorly coordinated, projects.
2.7.2. The specific objectives of the ADPL II take into consideration macroeconomic constraints and the experience acquired from the implementation of the first ADPL. The recommended strategies are based on the development opportunities of the agricultural sector and concern eight principal areas, namely: (i) less dependence on the mining sector through the gradual tapping of agricultural potential; (ii) pursuit of the policy of food security through support to growth of agricultural production, increased productivity, diversification of food production and consumption; (iii) promotion of agricultural exports and control of food imports; (iv) the development of a buoyant private agricultural sector which will adopt the appropriate instruments to develop and finance economic infrastructure; (v) pursuit of the policy of state withdrawal from production and marketing activities; (vi) improved farm productivity through a policy of encouraging greater use of agricultural inputs; (vii) improved performance of agricultural services, especially through greater involvement of agricultural associations ; (viii) the sustainable management of natural resources and environmental protection. This Government policy is highly appreciated by the donors which are engaged in activities in support of the development programmes retained under the new strategy adopted.
2.8. Operations of Other Donors
2.8.1. Upper Guinea, the project region, has, over the past decade, been the beneficiary of several rural development projects financed by different donors which take into consideration
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support to agricultural production, improvements to the socioeconomic environment and include hydro-agricultural development works, feeder roads, schools and health centres. The different donors have implemented the following activities:
i. Canadian International Development Agency (CIDA) has financed rural development projects (Coyah oil palm, artisanal fisheries at Bofa and market gardening at Elouma). It is planning a support project for the poor;
ii. Agence française de développement (AFD): is financing the Kankan Cotton Project (PCK) which covers the east and part of the north of Upper Guinea. It is focused on the development of cotton and the rotation of food crops in the prefectures of Mandiana and Siguiri, and to a lesser extent in Kankan and Beyla. The cotton sector concerns 28,700 farmers, including 7,200 in the Siguiri sector. At the same time, AFD is considering the financing of a support project targeted at other tradable food sectors;
iii. The World Bank: is financing over 15 years the Village Community Support Programme (PACV) aimed at supporting decentralization and improving the capacities of the CRDs to manage communities (creation of social infrastructure);
iv. Islamic Development Bank – African Development Fund (IDB/ADF): are financing the Beyla-Kerouane Agro-Pastoral Development Project (PRODABEK). This project aims to safeguard the agro-ecological balance of the zone and has many components: bottomland developments, support to agricultural and animal production, construction of health posts and social infrastructure and credit;
v. European Union (EU) : is financing the West Upper Guinea Project (PHGO) covering the prefectures of Dabola, Dinguiraye, Faranah and Kouroussa (partially) in different components: mixed food crops and cotton, livestock breeding, bottomlands development and enhancement, animal draught cultivation and the distribution of inputs, rural credit, opening up of the region and, more marginally, bee-keeping. It will develop into a project refocused on Dabola/Dinguiraye (PDD) in support of the marketing of agricultural produce.
2.8.2. In addition to those projects, different development partners are operating in the region through thematic operations such as the PNIR, the Upper Gambia and Niger Catchment Area Development Project (EU), and the Upper Niger National Park Project for the Management of Natural Resources (EU), the National Livestock Breeding Project, the Village Communities Support Project (PACV, World Bank) and the Special Programme for Food Security (FAO).
2.8.3. The PADRHG has drawn on the experience of similar projects implemented in Upper Guinea. It is in keeping with the new operations vision which favors the harmonization of activities and coordination among donors, which is necessary for its success and equity in respect of potential beneficiaries.
3. PROJECT AREA
3.1. Location
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Upper Guinea has common borders to the east with Côte d'Ivoire and Mali, to the west with Middle Guinea, to the south with Sierra Leone and the forest region of Guinea and to the north with Mali. It occupies 40% of the country’s area, i.e. 100,000 km2 and is subdivided administratively into eight prefectures (Dabola, Dinguiraye, Faranah, Kankan, Kerouane, Kouroussa, Mandiana and Siguiri) and 85 subprefectures.
3.2. Physical Setting
3.2.1. The region has a tropical climate with two seasons. Annual rainfall varies between 1,200 mm in the north (Sudanese climate) and 1,800 mm in the south (Guinean climate) and average monthly temperatures are high (+ 27°C). The ecosystem in Upper Guinea is dominated by that of the River Niger upper basin. The permanent flow of the many tributaries of the Niger (Mafou, Milo, Niandan, Sankarani and Tinkisso) provides back up irrigation for the proposed developments in the area. The region’s alluvial land potential has been estimated at 80,000 ha, 75% of which is suitable for development (60,000 ha).
3.2.2. The Upper Guinea subsoil contains deposits of precious metals which are mined: gold in the region of Siguiri, and to a lesser extent, around Kouroussa, as well as diamonds in the region of Kerouane. Plant cover is typical of the Sudanese savannah and gradually evolves into tropical savannah and pre-forest areas. This transition zone is characterized by the complex intermingling of tree and wooded savannah, gallery forests along streams and peri- village forests usually of the closed, semi-deciduous type.
3.3. Socioeconomic Framework
3.3.1. Upper Guinea has a population of approximately 1.4 million with an average density of 13.3 inhabitants per km2 in rural areas. Rural activities are based on shifting cultivation, extensive livestock breeding, food gathering, firewood cutting, hunting and fishing. The existing farming systems primarily target food self-sufficiency of the household.
3.3.2. The ecoclimatic conditions are favourable to plant production, both for annual staples (groundnuts, fonio, cassava, maize, rice and sorghum) and perennials (citrus fruit, shea, mangoes etc) and for the growing of cotton as a cash crop, which has been increasing over the past fifteen years. Previously considered as the breadbasket of Guinea, the region now has difficulty in covering its food requirements because of climate changes (rainfall) and population growth. Livestock breeding, which is widespread in the region, with a utilization rate of approximately 10% for cattle and 25% for sheep and goats, still represents more of an investment than a source of income.
3.4. Constraints on the Rural Development of the Area.
3.4.1. The principal constraints on the rural development of the area which limit production and the attainment of the objectives of food self-sufficiency and of poverty reduction, concern the socioeconomic and technical organization of the principal activities: (i) customary management of village land by the chief and notables; (ii) mainly manual farming limited to the family work force; (iii) the expansion of the extensive production system; (iv) the existence of other wage earning activities especially for the “landless young” and the attraction of rural labour to nonfarming activities (mining, panning for gold, seasonal work) with the resultant social constraints and land tenure problems; and (v) in particular, the absence of an appropriate credit system which could meet the real requirements of rural people and be managed by them.
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3.4.2. Adverse physical and climatic conditions also constitute natural constraints: (i) changes in rainfall which upset the cropping schedule; (ii) the ravaging effects of uncontrolled bush fires on soil fertility, erosion and the accumulation of deposits; (iii) the failure to manage flood waters and the tributaries of rivers, which are jeopardizing irrigated production.
4. THE PROJECT
4.1. Design and Formulation
4.1.1. The project is in keeping with a new development approach which gradually makes the actors accountable for the activities supported by it. It contributes to the ongoing process of decentralization under the Government’s new policy and gradually focuses on the role of the “elected advisers of the CRDs” to improve the management of their communities and support the capacity of farmers to organize themselves into professional associations. Their activities will concern technical advice, supplies, marketing, savings and credit. Only real involvement of the beneficiaries and CRDs will ensure a transfer of skills which will guarantee the smooth implementation of the development and investment work, as well as the successful withdrawal of the management unit.
4.1.2. The project, in this context, has withdrawn to a “catalytic role in the development process”, restricting itself to “not to doing, but to having done” to ensure the sustainability of the process. With its partners it will develop appropriate tools of communication and programming to permit field work in support of producers’ groupings who identify their priorities and to the CRDs, responsible for managing their land. The project will be implemented over a five-year period, with a start-up period of six to eight months and provides for a mid-term review. It will develop its activities mainly with producers’ associations or groupings in keeping with the planning at CRD level, thus justifying a real participatory approach on the one hand, and, on the other, the special requirements expressed by women’s associations taken into consideration in the Rural Organization Support (ASMR) project and will contribute to family stability, a guarantee of the successful participation of the entire community. The approach adopted takes into consideration activities to improve the environment in order to guarantee environmental equilibrium and the sustained pursuit of economic activities. Finally, it takes into consideration the experiences of projects in Guinea and recommends appropriate activities to correct the errors of the past, especially by closer involvement of the beneficiaries, through institution building, especially by providing project personnel with technical assistance and improving coordination.
4.1.3. Against this background, and to address these issues with a view to achieving real participation with greater involvement of the beneficiaries through their associations, the project will engage in four specific activities jointly managed by the PMU and the associations. In fact, as part of the organization of the rural community, sensitization and training of the population should improve technical and organizational capacities so that investment decisions are the result of group decisions taken within those associations. The four specific activities will target the following project and support activities:
i. village investments (VI) in support of the budget and investment plans of the CRDs, intended to finance, in a transparent manner, essential social infrastructure, for community use, in keeping with locally decided priorities with the contribution of decentralized local communities (cash contribution, work, equipment, etc) in the prefectures of Kouroussa and Siguiri;
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ii. support to the organization of the rural community intended to finance service delivery by the players who could establish a socioeconomic environment conducive to development including training and professionalization of producers' associations and assistance to women’s associations to procure materials and equipment; iii. agricultural development (AD) intended to cofinance productive investments decided upon with producers’ associations (hydro-agricultural developments, development of produce); and iv. the improvement of feeder roads intended to finance the rehabilitation of road infrastructure (farm roads, crossing structures), essential for the growth of the region and the financing of Village Road Maintenance Committees (CVEP).
4.2. Objectives
4.2.1. Sector Goal: the sector goal is to improve food security and reduce poverty.
4.2.2. Specific Objective: the project objective is to improve agricultural production, open up the region and provide support to the organization of the rural and local communities.
4.3. Description of Project Outputs
4.3.1. In order to attain the above-mentioned objectives, the project comprises the rehabilitation of 1,760 ha of irrigated plains and 294 ha of bottomlands; the planting of 1,050 ha of cashew trees and 420 ha of reforestation; the opening up of the region through the rehabilitation of 336 km and the maintenance of 424 km of feeder roads; support to the organization of the rural and local communities through the professional organization of producers around the different sectors, the creation of an environment which will foster the emergence of growth bearing sectors, the establishment of public infrastructure, and to rural supervisory institutions.
4.3.2. The principal project outputs are the following:
i. Developments: 294 ha of bottomlands and the rehabilitation of 1,760 ha of irrigated plains, the planting of 1,050 ha of cashew trees, and 420 ha of reforestation (village forestry);
ii. Development of Animal Draught Cultivation: purchase of 250 yokes, the training of 1,000 farmers in animal feed and health, the handling and maintenance of yokes and the training of 20 blacksmiths;
iii. Improved Technical Routes: by IRAG and SNPRV;
iv. Operating resources and Support Measures: mapping coverage of the project area, technical assistance, support to the Kouroussa and Siguiri branches;
v. Opening Up of the Region: rehabilitation of 336 km and maintenance of 424 km of feeder roads, repairs to 8 culverts, the promotion of 20 Village Road Maintenance Committees (CVEP);
vi. Support to the Organization of Rural and Local Communities: promotion of 124 rice producers’ associations, 40 food producers’ associations and 6 land management associations, the promotion of around 80 intervillage savings and
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credit funds (CIVEC), support to 21 CRDs, the establishment of social infrastructure, support to the IRAE and DPDREs of Kouroussa and Siguiri; and
vii. Project Management: payment of the costs of the Project Management Unit (PMU) and monitoring, evaluation and audit costs.
4.3.3. The principal project components are: (i) enhanced production, (ii) opening up of the region, (iii) support to the organization of the rural and local communities and (iv) project management.
4.4. Detailed Description of Activities and Components
A. Enhanced Production
4.4.1. This component aims to provide the beneficiaries with hydro-agricultural infrastructure, technical resources which are vital for production, training and support measures to ensure rational utilization of resources. It comprises four principal activities: (i) hydro- agricultural developments, (ii) the development of animal draught cultivation, (iii) technical routes; and (iv) operating resources and support measures.
i. Hydro-Agricultural Developments: concern the rehabilitation of 1,760 ha of irrigated plains, including 500 ha in the prefecture of Kouroussa (Doura, Manfara, Yarakoura), 1,260 ha in that of Siguiri (Damissakoura, Dragueda, Kirikoro, Siguiri, Tiguibri, Togui-Oulen), and the development of 294 ha of bottomlands including 150 ha in Kouroussa and 144 ha in Siguiri. Fairly small plains were chosen for rehabilitation because they raise fewer land tenure problems and are located close to the farming population. Similarly, the cost of the rehabilitation works planned is fairly low in comparison with their productivity. The works comprise improved water management, by raising the walls of the dams, works to protect dams from floodwaters and the rehabilitation of regulating structures. With regard to bottomlands, priority will be given to small areas of high potential, close to villages and with flow rates which will permit out-of season cropping. The final selection of bottomlands for development will be made in agreement with the producers’ organizations and CRDs following land surveys. The bottomland developments will be designed within a more global framework of the development of village lands.
ii. Development of Animal Draught Cultivation: animal traction represents a factor of intensification which will play a determining role in enhancing production. There are many draught oxen on farms (50%), but the performances of draught animals and equipment are unsatisfactory. The project therefore intends to provide 250 yokes on credit, to train and monitor 1,000 equipped farms, and train twenty blacksmiths and a chief herdsman for three weeks.
iii. Improved Technical Routes: to achieve an optimal rate of return on the factors of production to be used in the agriculture sectors, two types of activities will be initiated; (i) local tests and multi-year testing will define the types and doses of fertilizers. The technical routes will be prepared and constantly enhanced for each crop. It is planned to provide the associations with 8 technicians for plains rice- farming, 1 specialist in bottomlands rice farming and 7 technicians for the food crop sectors (maize, cassava, and groundnuts); and (ii) the processing of harvested products with suitable equipment and materials is a source of enhanced
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productivity (savings in terms of time and income) especially in favour of women, who are usually responsible for such operations.
iv. Operating Resources and Support Measures: the objective of this component is to group together within each prefecture (Kouroussa and Siguiri) the necessary human and technical resources to support the establishment and operation of the irrigation schemes and the support measures in favour of the beneficiaries. To that end, the project will establish two branches in Kouroussa and Siguiri. Apart from technical assistance (rural engineering) to be based in Siguiri, each branch will comprise: 1 branch head, 1 operations head (an agricultural economist), 1 monitoring and evaluation supervisor (an agricultural economist), 1 works supervisor (a rural engineer), 1 accountant-cashier and support staff. The two branches will be accommodated in the rehabilitated premises of the former ODRIK and PDRS projects and will comprise two quarters: 87 administrative buildings, 50 housing units, 5 workshops/garages, 5 warehouses and service buildings. The two branches will each be provided with: 2 four-wheel drive vehicles, 3 motorbikes, 2 mopeds, computer, communications, office and housing materials and equipment. The support measures will ensure the monitoring and protection of the environment and will concern aerial photography and mapping of the prefecture of Kouroussa and mapping only of Siguiri; then they will target the planting of 1,050 ha of cashew trees (450 ha in Kouroussa and 600 ha in Siguiri), and village forest planting (fuel wood and timber) on 180 ha in Kouroussa and 240 ha in Siguiri. Finally, the support measures concern the social dimension in the project area. Indeed, the lack of social infrastructure (drinking water, schools, hygiene and health) will lead to the rural migration of youths, high illiteracy rates and more generally slow down any improvement in the living conditions and modernization of the region. To correct those shortcomings, 40 boreholes will be drilled and 10 schools and health centres built in the two prefectures.
B. Opening up of the Region
4.4.2 The objective of this component is to pursue the rehabilitation of the priority routes for the opening up of the remote, but potentially rich, areas of Kouroussa and Siguiri, and to maintain the road network.
i. Rehabilitation of Feeder Roads: the rehabilitation works concern 336 km comprising 161 km in Kouroussa and 175km in Siguiri. The different sections to be rehabilitated have been retained on the basis of their economic importance and for their role in the transportation of agricultural produce, and complement the efforts to open up the region already made by other donors (AFD and EU) and the ADF. This improvement will enable villagers to ensure the maintenance of feeder roads and structures under the new responsibilities of the CRDs. The rehabilitation works entail surfacing with compacted laterite, leveling and small-scale crossing works. In the prefecture of Kouroussa, the 161 km to be rehabilitated concern the following sections: Bagbe-Orokou 50 km; Landi-Kansereya 20 km; Banfele- Gbangbanya-Mafou 13 km; Bagbe-Lankini 18 km; Douako-Abadaria 20 km; Saraya-Kabakaria 40 km. In the prefecture of Siguiri, 175 km of feeder roads are to be rehabilitated and concern the following sections: Koudedi-Makandjan 50 km; Makandjan-Siguirini 25 km; and Siguiri-Fifa 100 km.
ii. Maintenance of Feeder Roads: the maintenance works concern 424 km, comprising 274 km in Kouroussa and 150 km in Siguiri. In the prefecture of Kouroussa, the
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four sections are: Moussaya-Koloni-Boroto-Farakoba 75 km; Farakoba-Dora 60 km; Yirikiri-Yermakono 32 km; Fissadou-Kourala-Yarakoura 36 km. In the prefecture of Siguiri, the three sections are: Kintigna-Dianbaya-Koudedi 25 km; Koudedi-Konsogna-Nabou 45 km; and Tatakourou-Nyagasola 80 km. The design and supervision of the rehabilitation and maintenance works will be covered by the project. Finally, minor maintenance works will be carried out by the CVEPs which will receive the necessary operating resources (wheelbarrows, shovels and picks, etc.). Furthermore, in the prefecture of Siguiri, eight culverts will be rehabilitated (Bafinkoba, Bokelen, Doubaya, Nafadji, Niandankoura, Nourou, Saourou and Tiguibiri).
C. Support to the Organization of the Rural and Local Communities
4.4.3. The objective of this component is to promote the professional organization of producers around sectors, and establish an environment which will foster the emergence of growth- bearing economic sectors.
Professional Organization of Producers around Sectors
4.4.4. The purpose of the organization of the rural community is to professionalize farmers backed by the project, in the different areas of agricultural production. The quantitative objectives to be attained by the end of the project are as follows:
i. 300 rice producers’ associations (10 in the bottomlands and 290 in the plains, 40 of which will belong to women) will be supervised to be able to organize and validate the annual allocation of plots, implement the rice farming specifications and ensure the autonomous management of the irrigation area (supply of inputs, marketing and water management, etc); ii. 100 associations (including 20 for women and comprising approximately 30 members per association) around other food products (maize, groundnuts, cassava) capable of obtaining their own supply of inputs from existing private or state- owned bodies and ensuring the grouping of products in order to negotiate the terms of sale and optimize marketing; iii. 6 land management associations focused on the sustainable farming of developed bottomlands while pursuing diversified activities concerning the economic utilization of natural resources; iv. 20 women’s associations will have the financial resources to procure ten mills, ten motorized threshers, ten rice hullers and a batch of small market garden implements; and v. the costs of local tests and technicians will be borne by the project.
4.4.5. The project will finance rural extension, literacy education, and environmental education and management advisory activities for producers. These will be carried out by an NGO (e.g. CENAFOD) for the operation of a CAOPA-type structure, specialized in support to the organization of the rural community and the economic approach to agricultural production systems (groundouts, maize, cassava and rice), and an NGO specialized in the land management approach.
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Establishment of an Environment which will Foster the Emergence of Growth-Bearing Sectors.
4.4.6. The objective is to develop related economic activities around the agricultural sectors, in particular production, processing, marketing (inputs, etc), transport, services, through credit to be made available to private developers. To do so, it will be essential to provide local credit to the beneficiaries. The local branches of the Crédit Rural de Guinée (CRG) which can adapt to the requirements and constraints of its members would appear to be the preferred instrument for assuming such a role.
4.4.7. The project will, therefore, be supported through the establishment of local CRG funds throughout the project area, to be coordinated by two CRG regional delegations in Kouroussa and Siguiri. The CRG’s activities have already made possible the establishment of 70 local funds at the end of 1999, broken down into 9 regional delegations. At the same time, membership rose to 72,000 resulting in savings of GNF 3.5 billion, comprising 2.4 billion in voluntary savings and 1.1 billion in guaranteed savings. Outstanding credit as at 31 December 1999 was GNF 5 billion and the recovery rate exceeded 90%. The project will provide support to the CRG for the establishment of a local network, either in the form of local funds or in the form of CIVECs. This support will consist of up-front (premises, safes, other equipment, etc) financing or maintenance financing, in the form of lines of credit. The operation of those funds will depend both on the savings collected and the injection of external funding. The savings will be used to finance a number of individual activities on the basis of conditions to be defined by each CIVEC. The external funds will make it possible to step up the activities of the funds and, therefore, to generate more individual and collective income.
4.4.8. The operation of the local funds will complement the activities carried out under the project in the growth-bearing sectors (groundnuts, maize, cassava, and rice etc). On completion of the project, there will be about 80 CIVECs with a total membership of approximately 10,000. The credit will be used in particular for the procurement, marketing and transport of inputs, the purchase of equipment, animal traction equipment and small implements. With regard to processing equipment, the project will provide the women’s associations, through the CRGs, with the resources required to purchase ten rice hullers, ten mills, ten motorized threshers and small market gardening implements.
4.4.9. With regard to the credit granting mechanisms, which are the same for the CIVECs and the local funds, all decisions are taken by committees of elected representatives who participate in the selection of borrowers, the granting, recovery and management of credits. Market rates are applied, and are in the region of 18% for short-term loans and 20% for medium-term loans.
4.4.10. In Upper Guinea, promotion of the rural community is the responsibility of the decentralized services of the MAE at regional (Kankan IRAE) and prefectoral (DPRDs of Kankan, Kouroussa and Siguiri) levels. The IRAE is responsible for coordinating agricultural development support activities in Upper Guinea and gathering information on plant production. In each prefecture, the DPRDEs comprise sections representing the different technical directorates and the services attached to the MAE (agricultural promotion, animal resources, forestry, the environment, rural engineering, packaging, and statistics service). Under the project, therefore, support contracts will be concluded with those two bodies.
C. Project Management
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4.4.11. The management component of the project takes into consideration all the investments required to implement the project activities and part of the costs concerning the establishment of a cohesive framework for consultations with donors and all the other stakeholders in development activities in Upper Guinea. Indeed, the absence of data, reliable information and a framework for regional development planning constitute constraints on the cohesiveness of activities, weaken the synergy and complementarity and even lead to the duplication of those activities. For that reason, the donors have agreed to contribute to the Government’s initiative to establish a Regional Observatory for Rural Development in Upper Guinea, which will be used as a framework for consultation and coordination among the different operators in the region. ADF will finance a few small studies and thematic surveys on activities affected by its project. With regard to the implementation of project activities, ADF will finance, in particular, staff (allowances and other benefits), housing, equipment and vehicles and the daily operation of the Project Management Unit (PMU). The PMU will rely on the Central Agency for Designs and Agricultural Planning (BCEPA) of the MAE, already structured and experienced in the coordination of development projects and programmes. It is also planned to bear the cost of a small steering committee, whose duties and composition are described in paragraph 5.2.3. The PMU will be based in Kankan and will have two branches in Kouroussa and Siguira under the project. Each branch will be responsible for the management of specific activities in its area and will comprise a temporary light structure which will disappear on completion of the project.
4.4.12. The PMU staff will comprise 4 managers including a national coordinator and three technical assistants, including an administrative and financial expert (SAF), an expert in community and rural development (extension, sensitization, training and education), a rural engineer and support staff. At prefecture level, each branch will have personnel comprising: 1 branch head, 1 operations head (an agronomist), 1 works supervisor (rural engineer), 1 head of monitoring and evaluation (agricultural economist), 1 accountant/cashier and support staff. The technical assistant in community and rural development will work closely with the branches. The PMU and branches will be technically and financially autonomous.
4.5. Project Assumptions and Risks
4.5.1. Several aspects of the project constitute a new experience in ensuring local economic development by assisting producers associations in their organization, to support the implementation of the decentralization policy and bring together in a development partnership, elected powers, civil society and government. Because of its innovative nature it presents a number of risks, which will be minimized by the activities planned.
4.5.2. In fact, institutional type risks concern possible delays pending the emergence of local powers (elected representatives, groupings and associations), but the project provides for the permanent involvement of all those institutions within the CRDs to facilitate discussion and ensure the minimum financing of development activities in the area.
4.5.3. Other risks are related to the project operators themselves and concern the lack of local skills, the poor distribution of tasks and operations among the different players. From that standpoint, the project provides for the extensive use of piecework, ongoing training and close supervision of operators.
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4.5.4. The lack of dynamism and the failure to solve the land tenure problem in the bottomlands, could slow down the attainment of the other project objectives. To that end, prior extension and sensitization, and the training of young people constitute an engine for the mobilization of beneficiaries in order to improve land utilization and security in conformity with the cadastral maps.
4.6. Project Cost
4.6.1. The project cost estimates are based on recent unit costs for similar works carried out in the project area. The project cost, net of taxes and customs duties, is estimated at GNF 1931.15 million, i.e. UA 11.70 million. This cost is broken down by components as shown in Table 4.6.1a and by expenditure category as shown in Table 4.6.1b below. The 5% physical contingency is explained by an accurate determination of the project bill of quantities and stringent cost control in respect of the different procurements planned. The 3% compound price contingency is based on a projection calculated on the basis of the likely average rate of inflation in Guinea over the next few years. This provision should suffice to cover any cost increases during implementation of the project. The detailed costs of the project components are presented in Annex 2.
Table 4.6.1a Estimated Project Cost by Component Components Million GNF Million UA % Total F.E. L.C. Total F.E. L.C. Total A. Enhanced Production 5,107 2,903 8,010 1.76 3.10 4.86 41 B. Opening up of the Region 1,636 873 2,509 0.53 0.99 1.52 13 C. Support to the Organization of the Rural 2,945 665 3,610 0.40 1.78 2.18 19 Community D. Project Management 2,703 550 3,253 0.33 1.64 1.97 17 Base Cost 12,391 4,991 17,382 3.02 7.51 10.53 90 Physical Contingency 283 165 0,448 0.10 0.17 0.27 2 Price Contingency 1,074 410 1,485 0.25 0.65 0.90 8 Total 13,748 5,566 19,315 3.37 8.33 11.70 100
Table 4.6.1b Estimated Project Cost by Category Category Million GNF Thousand UA L.C. F.E. Total L.C. F.E. Total % Total Design 1.12 254.47 255.59 0.68 154.24 154.92 1 Personnel 949.34 1,240.84 2,190.18 575.40 752.07 1,327.47 12 Training 24.08 74.42 98.50 14.59 45.11 59.70 1 Technical Assistance 147.37 2,980.12 3,127.49 89.32 1,806.26 1,895.58 17 Credit 214.76 1,364.99 1,579.75 130.17 827.32 957.49 8 Support Research 4.55 8.45 13.00 2.76 5.12 7.88 1 Operating Resources 354.70 1,267.56 1,622.26 768.27 983.25 214.99 8 Audit 30.30 71.70 202 8.36 104.07 122.43 1 Materials 59.00 457.00 516 35.76 276.99 312.75 4 Vehicles 4.70 486.00 500.70 8.91 294.57 303.47 2 Equipment 58.98 209.02 268 35.74 126.69 162.44 1 Other Items (photos, map) 144.00 816.00 960 87.28 494.58 581.86 5 Inputs 0.16 3.04 3.20 0.10 1.84 1.94 1 Plains and Bottomlands 833.66 847.84 1,681.50 505.28 513.88 1,019.16 9 Feeder Roads 710.96 882.56 1,593.52 430.91 534.92 965.83 9 Buildings and Bridges 1,272.95 817.25 2,090.20 771.54 495.34 1266.87 12 Boreholes 160.00 480.00 640.00 96.98 290.93 387.90 1 Other Construction Work 10.00 30.00 40.00 6.06 18.18 24.24 1 Base Cost 4,990.64 2,391.27 17,381.91 3,024.83 7,510.36 10,535.19 90 Physical Contingency 165.36 283.14 448.50 100.22 171.61 271.84 2 Price Contingency 410.41 1,074.51 484.92 1248.75 651.26 900.01 8 Total 5,566.41 13,748.92 19,315.33 3,373.81 8,333.23 11,707.04 100
4.7 Sources of Financing
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4.7.1. The project will be jointly financed by ADF, the Government of Guinea and the beneficiaries in conformity with Tables 4.7.1 below. The ADF loan will cover 100% of the project foreign exchange costs, as well as 50% of the local currency costs. The Government and the beneficiaries will finance the remainder of the local currency costs comprising salaries, part of the « enhanced production » and « opening up » components. The Government will have to allocate to the project the rehabilitated buildings of the former ODRIK and ORS- PDRS II projects for use as the headquarters of the two branches.
Table 4.7.1a Sources of Financing (in million UA) Sources F.E. L.C. Total % Total ADF 8.33 1.67 10.00 86 Government 0.00 1.24 1.24 10 Beneficiaries 0.00 0.46 0.46 4 Total 8.33 3.37 11.70 100
Table 4.7.1b Expenditure by Component and by Source of Financing (en million UA)
Components ADF GVT BENEF. L.C. F.E. Total M. L. F.E. Total L.C. F.E. Total A. Enhanced Production 0.73 3.42 4.15 0.86 0.00 0.86 0.36 0.00 0.36 B. Opening Up 0.37 1.12 1.49 0.16 0.00 0.16 0.07 0.00 0.07 1,72 C. Support to the Organization of the Rural Community 0.42 2.01 2.43 0.00 0.00 0.00 0.03 0.00 0.03 D. Project Management 0.14 1.79 1.93 0.23 0.00 0.23 0.00 0.00 0.00 Total 1.67 8.33 10.00 1.25 0.00 1.25 0.46 0.00 0.46
Table 4.7.1c Expenditure Schedule by Component (in million UA)
Components 2001 2002 2003 2004 2005 Total % A. Enhanced Production 1.82 0.71 1.48 0.71 0.64 5.37 46 B. Opening Up 0.00 0.39 1.28 0.02 0.04 1.72 15 C. Support to the Organization of the Rural 0.19 0.66 1.01 0.51 0.09 2.46 21 Community D. Project Management 0.53 0.38 0.42 0.41 0.42 2.15 18 Total 2.59 2.14 4.19 1.65 1.20 11.70 100
Table 4.7.1d Expenditure Schedule by Category (in thousand UA) Categories Year Total 2001 2002 2003 2004 2005 SERVICES Study 4.99 140.77 18.99 0.00 0.00 164.76 Personnel 127.07 257.86 350.05 360.56 371.37 1.466.91 Training 8.49 10.24 21.29 14.76 10.68 65.46 Technical Assistance 320.44 382.47 559.93 402.93 409.85 2.075.62 Credit 127.92 143.03 428.34 298.01 71.68 1.068.98 Support Research 0.00 1.52 2.43 2.60 2.68 9.22 Operating resources 143.50 206.65 250.86 254.53 224.23 1.079.77
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Audit 18.73 22.51 44.37 23.88 24.59 134.08 GOODS Materials 78.66 182.29 22.95 25.07 42.79 351.76 Vehicles 290.71 38.62 0.00 0.00 0.00 329.33 Equipment 141.26 13.33 22.08 0.36 0.37 177.40 Other Items (photo, map) 629.28 0.00 0.00 0.00 0.00 629.28 Inputs 0.00 0.28 0.65 0.66 0.68 2.28 WORKS Plains and Bottomlands 0.00 166.02 855.92 110.59 37.18 1.169.72 Roads, Tracks and Paths 0.00 0.00 1.108.16 0.00 0.00 1.108.16 Buildings and Bridges 649.07 398.35 208.63 150.42 0.00 1.406.47 Boreholes 0.00 162.04 278.17 0.00 0.00 440.21 Other Construction Works 0.00 9.45 14.46 3.72 0.00 27.64 Total 2,540.13 2,135.43 4.187.28 1.648.10 1.196.10 11.707.04
4.7.2. The ADF financing will cover all project activities (enhanced production, opening up, support to the organization of the rural community and project management). ADF will bear the cost of part of the recurrent costs generated by the project. This will comprise an initial amount of UA 540,000 concerning the actual recurrent costs and is financed on a sliding scale over the project implementation period as shown in Table 4.7.2 below, and a second amount of approximately UA 440,000 concerning the ADF contribution to the cost of supplies, operation and maintenance, the bulk of which will also be completed over the same period. ADF local currency financing is justified by the nature of the project which prioritizes poverty reduction, especially the fight against hunger and which comprises high local currency costs in view of the abundant use of local materials and labour. Furthermore, ADF participation in local currency costs is justified by the fact that the different public spending reviews have led to the country to refocus its spending on the social sectors and basic infrastructure on the one hand, and on domestic and external debt servicing on the other.
Table 4.7.2. Recurrent Costs (in thousand UA)
Source 2001 2002 2003 2004 2005 TOTAL ADF 129.60 194.40 135.00 54.00 27.00 540.00 Government 4.98 9.97 14.95 29.91 39.88 99.69 Investment (ADF) 8.92 2.28 100.91 170.62 157.35 440.08 TOTAL 143.50 206.65 250.86 254.53 224.23 1079.77
4.8. Environmental Impact
4.8.1. The project is classified in Category II and does not require a prior environmental impact assessment. There are two types of impact: impacts during the development phase and during the operational phase.
4.8.2. During the plains development phase there will be no major environmental changes. These are plains and bottomlands already farmed by the beneficiaries requiring a little leveling, clearing of channels and raising of dykes. The existence of cleared spaces and feeder roads will allow the free movement of persons and light technical equipment for implementing the works, which will not entail any deforestation.
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4.8.3. These works will not cause any displacement of the population on the sites. The participation of the beneficiaries in all the works will give them ownership of the investment. Furthermore, these works will be carried out on lands already farmed by the population who will be involved in the reparcelation required by the future farming of the irrigation areas through producers’ groupings.
4.8.4. With regard to feeder roads, the rehabilitation works will comprise reshaping, lateriting and the filling in of potholes. There will be no special borrow areas in view of the quantities of available earth. Finally, it should be noted that minor maintenance works will be carried out by the CVEPs which will be provided with the necessary operating resources (wheelbarrows, shovels and picks, etc).
4.8.5. During the operating phase, double cropping will be practiced in some of the plains. Soil quality will be regularly monitored to ensure the timely control of the possible effects of salinity. Similarly, the beneficiaries will be trained in the use of composted manure in conjunction with fertilizers.
4.8.6. Furthermore, in those areas, support measures will be taken to protect the environment and will consist of implementing a reforestation component based on the planting of 1,050 ha of cashew trees (indigenous to the area), and 420 ha of local forest species. In addition to those activities, the project is also considering carrying out environmental education for the beneficiaries and in the schools to be built under this project.
4.8.7. High humidity is a factor in the development of waterborne diseases such as bilharzia, malaria and sometimes onchocerciasis, etc. To minimize those risks the project provides for health coverage through the construction of ten health centres and health education for women and children.
4.9. Impact on Women
4.9.1. The project’s key objectives remain the achievement of food security, poverty reduction and the improvement of the living conditions of the population in the area. Since women and children are the most vulnerable segments of the population, the option of supporting the wage earning activities of women retained under the project aims to resolve one of the issues, namely the need to produce sufficient food for local consumption and raise women’s incomes to improve their living conditions and reduce poverty. Indeed, acknowledged to be the cornerstone of the family, women foster team spirit through the emergence of several associations for common interest groups.
4.9.2. Because of the importance of women in the development of the area, vigorous action is proposed to improve their status and well-being while guaranteeing the survival of the family unit. Women will, therefore, benefit from specific activities in their areas of interest: market gardening, small-scale agro-food processing (management of mills, fruit and vegetable trading, small-scale livestock breeding, etc), beekeeping and fish processing. Furthermore, their activities will be sustained in groupings through the granting of support in the form of grants and micro-credits in order to stimulate, diversify and increase the income from their activities.
4.9.3. The emergence of micro-projects, in the form of support to grassroots self development initiatives for women, is a fairly recent experience of NGOs and external partners.
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On the one hand, it aims to reduce women’s workload and on the other hand, it will ensure the efficient participation and mobilization of women in the area's economic and social development process. Micro-projects thus appear to be a vital and efficient instrument for the income-generating activities of women.
4.9.4. Microprojects receive support in the form of grants and credits. In the case of the project, women’s associations will receive support in the form of threshers, hullers and mills, while the CIVECs will provide them with credit. Microprojects to be financed will concern poultry farming, the cereal bank, the mill, the sale of condiments, the processing of produce, the dye-works, the establishment of a food service network, etc.
4.10. Impact on Poverty
4.10.1. The objective of improving agricultural production will enable the population involved to make marketable surpluses which will consequently make it possible to raise monetary income in the region. Approximately GNF 6 billion will be distributed, thus enabling the beneficiaries and their families to improve their living conditions (food, housing, health, children’s education, etc). The impact of the project on poverty will be felt in the creation of local jobs in farming and in the other planned activities (commerce, product processing, market gardening, reforestation, etc.).
4.10.2. The infrastructure to be established under the project (development works, construction of socioeconomic infrastructure (schools, health centre and boreholes), will make it possible to improve through the distribution of salaries, the living conditions of the beneficiaries and will have a positive impact on poverty reduction in the project area.
4.10.3. Furthermore, the consideration in the project of education, sensitization, training, literacy education in local languages of the population in various fields, especially on the following topics: health, education, diet, drinking water, hygiene, environmental conservation, will lead to an improvement in living standards and make the project area affluent.
5. PROJECT IMPLEMENTATION
5.1. Coordinating Body
5.1.1. The Central Designs and Agricultural Planning Agency (BCEPA) will be the coordinating body for the project. It is already structured and experienced in the coordination of development projects and programmes. The effective coordination will be carried out under its responsibility through a Project Management Unit (PMU). The PMU will be managed by a coordinator whose profile and qualifications will have been considered acceptable to the ADF.
5.1.2. The PMU will be based at Kankan, the principal town of the region of Upper Guinea, while two (2) branches will be opened in Kouroussa and Siguiri. These branches will be responsible for the actual implementation of activities in the field.
5.2. Organization and Management
Organization
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5.2.1. The internal organization of the project involves central coordination and two branches at Kouroussa and Siguiri. Each branch will be responsible for the management of activities concerning its own area. However, management of the entire project activities requires the establishment of a PMU dependent on the BCEPA of the MAE. The purpose of the PMU will be to define the framework, objectives, organization, programming and coordination of the outputs, action and activities of the project, as well as supervision of the operations of the public and private organizations responsible for implementation on a contractual basis. It will also be responsible for coordinating the operations of other donors, and will be used as a single management and coordination framework for development activities in Upper Guinea. The operators will have to work with the beneficiaries who will be made accountable from the outset of the project.
5.2.2. In view of the extent of the area covered by the project, the diversity of the activities planned, the large number of beneficiaries and many operations in the region being implemented by donors and decentralized services, it is vital to establish a steering committee. It will be responsible for monitoring and controlling the smooth implementation of the project, assessing its impact in relation to the objectives set and the guidelines defined by the Government. It will review the PMU status report and receive for approval the project activity reports and annual budgets.
5.2.3. This committee will group together the representatives of the different national ministries and organizations concerned. These are the MAE, the Ministry of Finance (MF), the Ministry of Planning (MP), the Ministry of Women’s Promotion (MPF), the Ministry of Local Government and Decentralization (MATD), chambers of commerce, national rural-oriented associations, NGOs and all the principal project operators. The Steering Committee will be chaired by the Managing Director of the BCEPA of the MAE and will meet at least twice a year. The project organization chart is presented in Annex 3.
5.2.4. Finally, the project will contribute to the establishment of the Upper Guinea Observatory, to be accommodated within the Kankan IRAE. This Observatory, financed by all the donors in Upper Guinea, will serve as a coordination forum for all development projects and activities in Upper Guinea. To do so, it will gather agricultural information and statistics which will guide coordination and regional planning.
Management
5.2.5. The PMU approves the technical proposals of the two branches and ensures the cohesiveness of the programmes through the following three principal functions:
i. implementation of the rural infrastructure programme : (a) preparation of technical documents (bidding documents) and supervision and acceptance of works (feeder roads, developments, boreholes, schools, dispensaries, markets, etc); (b) support to the CRDs for the implementation and commissioning of public infrastructure works;
ii. the facilitation of relations between the different project levels (regional and prefectoral) and State and private external service providers (Bordo Seed Centre, IRAG, SNPRV); (b) the promotion of relations between the two project branches and the Kankan IRAE and the preparation, organization (technical accountability) of the preparatory committees for the Steering Committees, in cooperation with the
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IRAE (institutional accountability); and (c) promotion of any other activity which will facilitate relations between the different project operators; and
iii. the project technical and financial management: (a) maintenance of the consistency of the activities proposed by the two project branches; (b) planning and authorization of expenditure and disbursements in conformity with the cooperation agreements and service contracts; and (c) preparation of project financial status reports.
Kouroussa and Siguiri Branches
5.2.6. The project organizational structure comprises two branches (Kouroussa and Siguiri), each responsible for the implementation of the project in its area of operation, as indicated below:
i. development of plains and bottomlands and advisory support (cropping techniques) in the developed plains and bottomlands and improved food crops in growth sectors (maize, groundnuts, cassava);
ii. coordination and monitoring of operators’ activities (service provider specializing in training, the development of animal draught cultivation and SNPRV) in the areas of: (a) technical support to beneficiaries; (b) structuring and organization of producers around growth-bearing community activities which will generate income, in particular for women’s associations around operations related to supplies, production, storage and marketing of agricultural products; (c) support to the establishment and operation of intervillage savings and credit funds and their relations with the existing financial institutions to be established in the project area; and
iii. production of periodic technical implementation reports, support to the PMU to prepare the meetings of the Steering Committee, support to the preparation and monitoring of the establishment of rural infrastructures ; and support to the conclusion of agreements with the Guinea Animal Draught Cultivation Network (RGTA) or the Animal Draught Cultivation Section (SCA), specialized structures in the development of animal draught cultivation (training of oxen, chief herdsmen and blacksmiths) and the SNRPV responsible for agricultural counseling, support to research and development and the development of post-harvest processing methods.
5.3 Procurement of Goods and Services
5.3.1 The arrangements for the procurement of goods and services are summarized in Table 5.3.1 below. All Bank-financed goods, services and works shall be procured in conformity with the Bank’s rules of procedure for the procurement of works and services or, depending on the case, the Bank’s rules and procedures for the use of consultants, using the relevant Bank standard bidding documents.
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Table 5.3.1 Arrangements for the Procurement of Goods, Works and Services
Categories In million UA NCB OTHERS SL GOV. BENEF. TOTAL SERVICES Designs (0.155) 0.155 Personnel (1.012) 0.315 1.327 Training (0.060) 0.060 Technical Assistance (1.896) 1.896 Credit (0.957) 0.957 Support Research (0.001) 0.008 0.008 Operating resources (0.892) 0.091 0.983 Audit and Mid-Term Review (0.122) 0.122 GOODS Materials (0.313) 0.313 Vehicles (0.303) 0.303 Equipment (0.132) 0.030 0.162 Other Goods (photos, maps) (0.582) 0.582 Inputs (0.002) 0.002 WORKS Plains and Bottomlands (0.708) 0.311 1.019 Feeder Roads and Structures (0.966) 0.966 Buildings (0.676) 0.591 1.267 Boreholes (0.388) 0.388 Other Construction Work (0.024) 0.024 Base Cost (2.762) (3.611) (2.815) 1.005 0.342 10.535 Unallocated (1.022) 1.172 Total 11.707
5.3.2 The project coordinator will see to the correct application of the rules for the award of contracts for goods, works, services and training. The resources, capacity and expertise already acquired will suffice to successfully carry out the procurements.
5.3.3 ADF-financed goods and services will be procured in conformity with ADF rules, as follows:
i. National Competitive Bidding: for the hydro-agricultural development works (plains and bottomlands), feeder roads and structures, buildings, other construction work and boreholes; and
ii. Competition on the Basis of a Shortlist: for the recruitment of technical assistance, designs, the audit, mid-term review and other goods (photographs and maps).
Other Procurement Methods
i. National Shopping: for vehicles and motorcycles, equipment and other materials and inputs;
ii. Negotiated Contract : for training and the establishment of village funds; and
iii. Goods on credit will be procured in conformity with commercial practices considered acceptable to the Fund.
General Procurement Notice: the text of a General Procurement Notice (GPN) will be
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agreed with the PMU and will be issued for publication in “Development Business”, upon approval by the Board of Directors of the Loan Proposal.
Review Procedures: the following documents are subject to review and approval by the Bank before promulgation: (i) specific procurement notices, (ii) bidding documents or requests for proposals from consultants, (iii) evaluation reports on bids from enterprises or suppliers or on proposals from consultants including recommendations for the award of contracts, and (iv) draft contracts, if different from the drafts included in the bidding documents.
5.3.4 Disbursements at Bank level will take the expenditure schedule into consideration. The Government shall open two accounts, a special account for the payment of ADF funds and an account for the payment of Government counterparts, in a commercial bank in the name of the PMU, in conformity with the disbursement rules and procedures of ADF. Disbursements for operating expenditure will be effected through the revolving fund method. Expenditure below UA 20,000 will be effected from the special account with the prior approval of ADF. Commentaire [o.n.1] :
5.3.5 A request to replenish the special account will be accompanied by an activity programme deemed acceptable by ADF and a summary statement of the justification for the utilization of the previous replenishment, if necessary. The replenishment of the special account will aim to finance eligible current expenditure covering approximately four months of project activities. Disbursements on contracts for civil works, vehicles, consultancy services, agricultural machinery and other equipment will be made by direct payments to suppliers.
5.4. Implementation Schedule
5.4.1. The project duration will be 60 months and its implementation schedule is presented in Table 5.4.1 below: Table 5.4.1 Implementation Schedule
ACTIVITIES Initiators Start Duration A. ADMINISTRATION 1. Loan Approval ADF June 2000 2. Signature of Loan Agreement Government/ADF July 2000 3. Appointment of Project Manager Government/ADF July 2000 1 month 4. Loan Effectiveness ADF September 2000 5. Preparation of 1st Annual Budget Project Director August 2000 1 month 6. Preparation and Approval of Shortlist of Consultants Government/ADF August 2000 1 month 7. Bidding Government September 2000 3 months 8. Receipt and Evaluation of Bids Government October 2000 1 month 9. Approval of Bid Opening Report ADF October 2000 1 month 10. Signature of Contracts Government November 2000 1 month 11. Commencement of Consultant’s Services Government January 2001 5 years 12. Completion of Consultant’s Services Government/ADF May 2005 5 years 13. Borrower’s Completion Report Government May 2005 3 months 14. ADF Completion Report ADF December 2005 3 months B. PROCUREMENT OF MATERIALS AND EQUIPMENT 15. Bidding, awards and contracts Government/ADF November 2000 3 months C. IMPLEMENTATION OF DEVELOPMENT WORKS 16. Works Start Up Government January 2001 4 years D. TRAINING 17. Start up of on-the job training Government January 2001 5 years
5.5. Monitoring and Evaluation
5.5.1. Four types of monitoring-evaluation will be conducted under the project, namely: (i) continuous internal monitoring-evaluation conducted at all levels by the specialized project
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services; (ii) periodic monitoring-evaluation carried out by BCEPA and the specialized services of MAE; (iii) environmental monitoring; and (iv) a mid-term review.
Internal Project Monitoring-Evaluation
5.5.2. The project should have a simple monitoring-evaluation system at each level. This system should be designed harmoniously to facilitate comparisons between the project areas or activities. The monitoring-evaluation should cover the following: the technical aspects, in terms of implementation of the activities and attainment of the objectives; the local institutional support aspects relating to training and the performance of the services provided; aspects concerning the budget and utilization of the human and material resources, which will be assessed by comparing the activities defined and the objectives attained.
External Monitoring-Evaluation
5.5.3. It is performed by BCEPA and the other specialized services of MAE, on the basis of information collected during the missions they conduct at least once a year. The related reports should be submitted to the ADF for comments. The project will also be supervised by the ADF through both periodic and regular supervision and monitoring missions.
Environmental Monitoring
5.5.4. The environmental monitoring, carried out by the specialized services of MAE, particularly IRAE and DPDRE, will seek to verify and measure, during the normal discharge of their duties, the impact of project implementation. Furthermore, they will also seek to establish sound environmental management standards and measures by paying particular attention to the following vital points: (i) operation of the areas (zoning, tapping of the wood resources, hunting, food crops, bush fires); and (ii) information-education-communication (IEC) in the schools and in favour of the different local actors.
Mid-Term Review
5.5.5. Mid-term evaluation by a consultant is scheduled for the third year of the project to examine the achievements on the basis of specific objectives and, if necessary, redirect or modify certain actions.
Accounting and Audit
5.5.6. The project accounts will be kept in separate books which should clearly show the operations financed by the ADF. The project accounts will be subjected to the usual controls by the public authorities. Furthermore, an external audit firm, financed from the ADF resources, will be recruited to audit once a year the project accounts and the corresponding bank accounts.
5.6. Recurrent Costs
5.6.1. The participatory approach adopted within the context of project implementation, makes it indispensable to involve the beneficiaries in the management of farmlands and infrastructure. Within this context, the operation of the farms and routine maintenance of the feeder roads will be the responsibility of the populations, already organized to this effect into CRDs, CVEPs and
26
other types of groups. All the maintenance works relating to the primary and secondary networks as well as the water and road infrastructure will be charged to the specialized national services.
5.6.2. In conclusion, the recurrent costs generated by project implementation are the supervisory staff and research costs, which will end together with project implementation, and the operating costs, most of which will no longer exist either after the end of project implementation, with the exception of the operating costs entirely borne by the beneficiaries. These costs are borne by the ADF in gradually diminishing amounts.
5.6.3. Regarding the operating costs, they are borne by the beneficiary populations who will pay charges for the operation and maintenance of the production apparatus (plains and bottomlands). The income generated by the different project activities will help to finance the recurrent costs and ensure sustainability of the project.
5.7. Project Sustainability
5.7.1. The development actions of the PADRHG are geared towards the future. Indeed, the development of the plains and bottomlands is a long-term objective aimed at ensuring that they sustainably generate income. In the case of the plains, full attainment of the set objectives requires a minimum of 4 years with effect from the commencement of the project. This minimum duration is also required to familiarize the beneficiaries with the new technical routes. The sustainability of the economic actions of the irrigation developments is a prerequisite to ensure sustained profitability, which makes this project consistent with the generally accepted sustainable development process.
5.7.2. The project takes poverty reduction into account while promoting activities for the satisfaction of the basic needs of the poor population segments, particularly women and the youths. The importance given to women’s activities in the development actions implemented within the project area contribute to the sustainability of the project because they guarantee women access to the resources and decision-making process, given that the woman is the bedrock of the family and the society. The role of the local authorities in the programmed actions and in decision-making as well as the freedom of the project to work with other operators in the area, also contribute, through the enhancement of social cohesion, to the sustainability of the project.
5.8. Impact on Poverty Reduction
5.8.1. The PADRHG has planned several activities, the economic and financial results of which will have a positive impact on poverty reduction. Indeed, the sale of agricultural produce from the plains, bottomlands, terrace farms and upstream lands as well as the sale of firewood and timber from the plantations, manpower for the farms, marketing activities etc. will provide substantial income to populations living in the area, thus moving them above the absolute poverty line, which is estimated at GNF 250,000 per person and per year. The Upper Guinea region has the highest concentration of people living in absolute poverty. Almost 62% of the
27
population of Upper Guinea lives with an annual income less than GNF 293,714. Any poverty reduction strategy should seek to increase average annual income in the region. Finally, it should be noted that the production of food crops will help to meet the minimum calorie requirements of 2,000 k-cal per person and per day.
5.8.2. Furthermore, financing of the education-sensitization of women in the areas of health, environment, nutrition and vocational training, particularly of youths, and in several rural trades will help to enhance the standard of living of the populations and well-being in the villages, through an improvement of knowledge in these areas and better income redistribution.
5.9 Coordination with the Other Donor Agencies
5.9.1 PADRHG is based on the objectives of the Government's Agricultural Development Policy and has been largely discussed with the authorities and the other donor agencies. The meeting of donor agencies (AFD, World Bank, ADF, IFAD and the EU), held in Conakry in March 2000, helped to define the framework of the mechanism for the coordination of activities in Upper Guinea (cf Annex 3). Indeed, several rural development operations are being implemented through numerous projects in this region. Each donor agency defines the concept of its project, which it implements with limited autonomy involving numerous requests from the Government. This makes it difficult for the Administration to easily ensure the coherence and coordination of all the development activities given a certain amount of partitioning between the development institutions and the low level of consultations between those operating in the sector. The lack of statistical data and information, absence of a framework for consultations and the coordination of activities made the Government to create an observatory in the Kankan IRAE, which is to serve as a framework for ensuring the coherence and coordination of all the development activities in the region. The creation of such a body, provided with consultation and communication mechanisms as well as the reliable information and which is able to coordinate projects and programmes, will have a positive impact on the preparation and implementation of such projects and programmes and will constitute a basis for a rational planning of the development of the region. The objective of the observatory is to create a framework that will ensure coherence with a view to facilitating communication, data collection and analysis, coordination between the operators and harmonization of the approaches and methodologies. The success of such an action will create the synergy and complementarity required to rationalize investments and maximize their impact on the populations.
5.9.2 All the donor agencies welcomed the idea of an observatory and they will all provide the Government with financial assistance for the creation of this institution in the Kankan IRAE. Within the context of the funding of the Participatory Rural Development Programme (PPDR) in Upper Guinea, IFAD proposed a financial provision as a contribution to the preparatory activities for the establishment of such a structure and the financing of its operation. The other donor agencies will participate in the financing of institutional support investments as well as in the funding of theme studies and enquiries. A careful approach is proposed and will involve preparatory activities leading to the creation of an observatory during the 3rd year of the project. It will comprise the following two phases : consultation workshops bringing together several interested parties in order to confirm the opportuneness of such a project; and a 2-month feasibility study conducted by an expert under the responsibility of BCPA. The terms of reference of the study will the prepared by BCPA and will be distributed to all the donor agencies, including the ADF, which attended the Conakry meeting.
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6. TECHNICAL AND ECONOMIC JUSTIFICATIONS
6.1. Technical Justifications
6.1.1. The PADRHG will facilitate the development and strengthening of trade by increasing output and incomes as well as by improving road infrastructure. Consequently, the main weekly markets, which create outlets for the products in the border regions, will be better structured. Agricultural produce, such as cassava, groundnuts, maize and even rice, could be exported to Mali.
6.1.2. The basic studies conducted in the project area revealed the significant agricultural potential of the area. The climatic data also show that the prospects for agricultural development are good. There are abundant water and land resources but the system for the development of the lands remains limited owing to the inadequate quality of the infrastructure and the low level of intensive farming. The increased use of draught-animal cultivation techniques as well as the development of the bottomlands and the plains will further enhance the available agricultural resources. The project activities are integrated and they are linked both over time and in space to ensure the sustainable development of agricultural resources. The project was designed through a participatory approach and will be implemented through the same approach. The beneficiaries will be responsible for the preservation and promotion of the agricultural resources situated in their lands. Particular emphasis will be placed on human resource development. Improvement of the health and educational conditions as well as the organization of training courses related to functional literacy will enhance, by the completion of the project, the capacity of the beneficiaries and the sustainability of the project activities.
6.1.3. Furthermore, project implementation will protect past investments in the agricultural sector and in the road sub-sector, increase output and improve its distribution and enhance the movement of persons. It will also increase the availability of developed farmlands (plains and bottomlands) as well as productivity and, in particular, it will reduce poverty among the most disadvantaged population segments.
6.2. Project Benefits
The project benefits are more qualitative than quantitative. Indeed, the actual project benefits are measured by the dynamism of the producers and their ability to join the project. The project benefits are epitomized even more by the high level of involvement and empowerment of the beneficiaries with respect to project implementation. The quantifiable project benefits correspond to the net value of the additional output generated (irrigated farming, intensification and diversification of cropping, tree plantations etc.).
6.3. Economic and Financial Justifications
6.3.1. PADRHG will help to improve the standard of living of the beneficiary populations by developing the production of food crops such as rice, cassava, groundnuts and maize as well as by developing cash crop production. The economic rate of return stands at 24.23% over a period of twenty years.
29
6.3.2. The project will increase the cultivated areas, output and the income of the producers. Regarding the production of irrigated plains rice for example, the cultivated area will be multiplied by 4 (increasing from 600 ha to 2,260 ha) over a period of twelve years. There has also been a considerable increase in production over the same period. Indeed, it was multiplied by 15 going from 600 tons to 9,040 tons). This increase in production resulted from an extension in the cultivated area but particularly an increase in the yield, which grew constantly until the eighth year when it was multiplied by 4. The income of the producers will increase significantly (from GNF 171 million to GNF 3,000 million) over a period of twelve years. There will be a similar increase in the case of the other food crops (cassava, maize rice etc.), market garden crops, timber and cashew nuts. The total income of producers for the entire project will increase about GNF 461 million to GNF 6,000 million, that is a thirteen-fold increase over a period of twelve years. Thus, PADRHG will significantly contribute to the improvement in the standard of living of the beneficiary populations by developing food crops and increasing the productions of cash crops (cf. Annex 4).
6.3.3. Marketing will be improved through the opening up of the area as a result of the rehabilitation and maintenance of 336 km and 424 km of feeder roads respectively, as well as the repair of 8 small bridges and the promotion of 20 CVEPs. This improvement in marketing should substantially increase the income of the farmers and in return, will give a new lease of life to productivity research and new investments.
6.3.4. Job creation is also a major indicator of the reduction of pockets of poverty. The planned activities will create two types of jobs, namely direct and indirect employment. Management staff of the projects and those responsible for project implementation will be the beneficiaries of direct employment. Indirect employment will concern all the project activities, namely development of the irrigated plains, bottomlands, opening up of the zone, support to the reorganization of the rural areas the local communities.
6.3.5. Considering its enormous potential to produce marketable surpluses, the Upper Guinea region is considered by the Guinean authorities as the pole of food production, thus contributing to food security. The Guinean Government is determined to turn this region into the breadbasket of the country and the sub-region. It plans to launch development actions based on the production and diversification of food crops. Consequently, PADRHG plays an important role in the improvement of living conditions and poverty reduction.
6.3.6 The economic rate of return, calculated over a period of 20 years, takes into account income accruing from additional plant production but excludes the other non-quantifiable economic benefits and impact, such as the spin-off expected from the creation of modern enterprises, service companies and processing units, the improvement of marketing etc. The costs correspond to additional expenditure, investments and operating charges incurred under project implementation, with the exception of land-development-related costs (cost of the developments and social infrastructure), and the costs of promotion assistance that can be assimilated to national policy implementation cost, which are ordinarily charged to the national budget.
6.3.7 Under these conditions, the economic rate of return (ERR) stands at 24.23% (cf. Annex 5). A test on sensitivity to cost and income variations, shows that a 10% drop in income or a 10% increase in costs will have a limited impact on the ERR, which will stand at 20.47 %.
7. CONCLUSIONS AND RECOMMENDATIONS
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7.1. Conclusions
7.1.1 The project, as designed, is primarily intended to lay the foundations of sustainable development, based on the emergence, in the village community, of a process of economic and social self-reliance. Such a development is based on the restored confidence of grassroots economic agents who should feel capable of adapting to the different situations and making the best use of available natural resources, provided they are in a favourable environment endowed with all the services (advisory, credit, traders, etc) and support (supervision, training, research and development, basic infrastructure) they require. This project is precisely aimed at fulfilling all those conditions.
7.1.2 The project will thus permit the in-depth sensitization of all the economic agents in the area and the voluntary establishment of viable agricultural associations, followed by enhanced agricultural production and productivity in general. It will thus contribute to food self sufficiency and security, a reduction in rural-urban migration and poverty in that region. The project will also encourage the promotion of young people and women by ensuring they become viable economic agents through training and improved access to credit. The project is technically achievable, economically viable and respects the environmental balance.
7.2. Recommendations and Conditions of Loan Approval
7.2.1 In light of the foregoing, it is recommended to grant to the Government of the Republic of Guinea an ADF Loan of approximately UA 10.00 million for the implementation of the project as described in this report, subject to the following special conditions:
A. Conditions Precedent to Loan Effectiveness
Loan effectiveness is subject to the fulfillment, by the Borrower, of the following conditions:
i. provide ADF with evidence of the establishment of the Project Management Unit with its headquarters at Kankan, and under the direct supervision of the BCEPA;
ii. provide ADF with evidence of the appointment of the Coordinator whose CV will have received the prior approval of ADF;
iii. provide ADF with evidence of the establishment of a Project Steering Committee responsible for the channeling and coordination of all the project activities;
iv. provide ADF with evidence of the allocation to the project of the housing and administrative buildings at Kouroussa and Siguiri which are vital for the smooth operation of the branches in those towns; and undertake to ensure they are in good condition prior to the effective start up of the project activities;
v. undertake to implement the conclusions of the land studies for the selection of bottomlands;
vi. undertake to submit to ADF standard specifications defining the conditions for the establishment, occupation and management of the irrigation areas, as well as the obligations of the beneficiaries;
31
vii submit to ADF no later than 31 December 2000, the draft agreements to be concluded with IRAG, SNPRV, CENAFOD, SCA and the NGOs (ref. 4.4.10., 5.2.5.ii., 5.2.6. iii.).
B. Other Conditions
Provide ADF, as from 30 June 2001, with the agreements signed with IRAG, SNPRV, CENAFOD, SCA and the NGOs, as and when they are concluded. (ref. 4.4.10., 5.2.5.ii., 5.2.6. iii.).
ANNEX 1 REPUBLIC OF GUINEA UPPER GUINEA RURAL DEVELOPMENT SUPPORT PROJECT ADMINISTRATIVE MAP
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 of acceptance of these borders.
ANNEX 2
ANNEX 3 Page 1 of 2 REPUBLIC OF GUINEA UPPER GUINEA RURAL DEVELOPMENT SUPPORT PROJECT RURAL PROJECTS IN UPPER GUINEA
SECTORAL POLITICY PDRHG PDRK PDD PPDRHG PDL-G BASSINS PACV 1900 HA ADF AFD EU IFAD UNDP UNCDF VERSANTS Banque mondiale BID UE Support to Producer Fund to support the Literacy training, management Literacy training + post-literacy. Support to the Women’s, stockbreeders and Village Investment Fund for Organizations organization of the rural training, counselling and support of organization of the POs and stockbreeders. Technical and producer groups: FDR, community groups, effort areas and women’s groups; the FDR to food production, dairy management training, FDR support to the processing and subsidies, credit, processing, deployed with respect to management of the funds of and market gardening associations marketing as well as the creation and cereal banks and supply. marketing., cereal womenand youths + training the food production groups; + creation of cereal banks and stores. banks, UCA, tree growing, and literacy campaigns and organization, granting of subsidies microprojects and CROPA. counselling, management (CAOPA/CENAFOD) and literacy campaigns (CAOPA/CENAFOD)= Private Sector Promotion Credits for trade, supplies Support to the Agricultural Marketing Board, SOMATA, and equipment. Support to Support to blacksmiths and training of private managers PMC Private Initiative Support Fund SME built feeder roads specialized operators specialized operators Development of the Credit Creation of CVECs and Support to the establishment of ASF, (diminishing subsidies for System CRGs CRGs, FDR allocation to assoc. Establishment of 42 CVECs and CRGs their installation + credit, FDR) FAIB Support to Input Supply Seeds supplied by IRAG Seed multiplication by IRAG, Support to the Agricultural Marketing Board, Bordo seed Agricultural and vetrinary inputs support to storage of inputs required centre (IRAG), supply groups, 60 sales-warehouses, shop, seed production (subsidy for livestock and crops diminishing subsidies. + credit, FDR) by FAIB (subsidization of the stores) Research- Extension Sub-contracting to IRAG and Sub-contracting to IRAG, the VICOT an a consulting firm, stockbreeding by an IRAG, SNPRV and specialized SNPRV cotton company and SNPRV international NGO + sub-contracting for the cotton NGOs company: PCK Development of Animal Purchase of yorks and Cattle loans, supply + training of Subsidy for UCA equipment, training of herdsmen + Draught cultivation training of blacksmiths, blacksmiths, support to blacksmith blacksmiths and training of animals. UCA Equipment (subsidy + Agreement with SCA and associations, SCA, SAGE, SPRA + credit) RGTA RGTA, transfer of funds to CRG Natural Resources Aerial photography of the Village Plans + reafforestation + land management Reafforestation, fire protection Village Investment Fund: land Management fruit plantations and village training (FAIB), training, management andnatural forests. Support to the land communication with the users resource conservation management associations. Support to Rural Réhabilitation , entretien Major and minor Rehabilitation works by SMEs + BTGR, Opening/rehabilitation of feeder Village Investment Fund, Infrastructure PME + BTGR, promotion Rehabilitation and maintenance of CIVEP roads, schools, health facilities, Local Investment Fund (70% of Maintenance and rehabilitation des CIVEP BTGR markets, water supply equip. etc. FDL) of feeder roads, institutional CIVEC’s support to grassroot support to DNGR and CRD, initiatives Pref. and DNGR management strategy Developments Rehabilitation of the plains Himo Bottomlands, plains, vegetable and development of the 400 ha of bottomlands gardens and grassroot initiatives bottomlands by SMEs, with support fund the participation of the communities Decentralization Training and support to CRD Support to CRD Training and support to CRD Training and support to CRD Training and support to CRD Regional Coordination Project Management Unit Prefectural Committees on Regional council composed of representatives of Programme Coordination Unit. concerted initiatives + Regional women’s groups, the Chamber of Agriculture, civil Development Observatory in Regional Coordination Unit Consultation Committee + observa- society Upper Guinea tory located in IRAEF
ANNEX 3 Page 2 of 2
RURAL PROJECTS IN UPPER GUINEA
PREFECTURES PDRHG PDRK PDD PPDRHG PDL-G CATCHMENT PACV 1900 (Sub-Prefectures ADB AFD EU IFAD UNDP AREAS World Bank HA CRD) UNCDF EU IDB Dogomet, Arfamoussaya, Kankama, Arfamoussaya, Bissikrima, DABOLA Dabola, Kindoye, N’Dema, Bissikrima, Konendou Konindou, Banko Gagnakaly, Diatifere, Banora, Kalinko, Dialakoro, Banora, Diatifere DINGUIRAYE Lansanaya, Dinguiraye, Selouma, Dialakoro Balato, Doura Babila, Baro, Kiniero, Sanguiana, Cissela, Komola, Douako, Komola, Cissela, Sanguiana, 13 CRDs Komola-koura, Sanguiana, KOUROUSSA Banfele, Yara, Doura, Kouroussa, Koumana, Doura Kounana Yarakoura, Manfara, Irikiri Mamouroudou, Tokounou, Moribaya, Boula, Sabadou KANKAN ALL THE PREFECTURE Baranama, Tintioulen, Koumban, Missamana, Gberedou, Baranama, Karifamorya, Bate Nafadji, Balandou Kiniebakoura, Siguiri Doko, Franwalla, SIGUIRI Kintinan, Nabou, ALL THE PREFECTURE 12 CRDs Naboun, Niandakoro, Niagassola, Norassoba, Nounkounkan Malea, Togui-Oulen, Tigui Biri, Kibiribora Saladou, Kantoumania, Faralako, Morodou, MANDIANA ALL THE PREFECTURE Koundian, Niantanina, Koundian, Morodou, Faralako Kigneran, Sanasado et Mandiana-centre KEROUANE Komodou, Linko, Damaro, Kounsankoro, Damaro, Konsankoro, Sibiribaro Kerouane-centre Diassodou, Fouala, Gbessoba, BEYLA Karala, Koumandou, Sanama, Sinko, Sokourala Passaya, Beindou Tokounou, Gberedou-Baranama, FARANAH Sabadou-Baranama
ANNEX 4
REPUBLIC OF GUINEA UPPER GUINEA RURAL DEVELOPMENT SUPPORT PROJECT ORGANIZATION CHART OF PROJECT
Ministry of Agriculture and Stockbreeding (MAE)
Steering Committee
Central Agency for Designs and Agricultural Planning (BCEPA)
Project Coordination Unit (PCU)
SIGUIRI Branch KOUROUSSA Branch
Accounts/Cash Accounts/Cash
Head of Operations Monitoring-Evaluation Head of Works Head of Operations Monitoring-Evaluation Head of Works
ANNEX 5
REPUBLIC OF GUINEA UPPER GUINEA RURAL DEVELOPMENT SUPPORT PROJECT TREND OF OUTPUT AND VALUES
YEAR 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 PRODUCTIONS Units 1 2 3 4 5 6 7 8 9 10 11 12
III. ENTIRE PROJECT 1.1. PLAINS RICE (irrigated) Trend of Outputs t/ha 1 1 1 2 2.5 3 3.5 4 4 4 4 4 Cultivated Area ha 600 400 800 950 1660 2260 2260 2260 2260 2260 2260 2260 Production t 600 400 800 1900 4150 6780 7910 9040 9040 9040 9040 9040 Income MGNF 171000 114000 228000 541500 1182750 1932300 2254350 2576400 2576400 2576400 2576400 2576400 1.2 BOTTOMLANDS RICE Trend of Outputs t/ha 1 1.5 2 2 2.5 3 3 3 3 3 3 3 Cultivated Area ha 150 150 240 264 294 294 294 294 294 294 294 294 Production t 150 225 480 528 735 882 882 882 882 882 882 882 Income MGNF 42750 64125 136800 150480 209475 251370 251370 251370 251370 251370 251370 251370 1.3 RICE GROWN IN ON TERRACES (non irrigated) Trend of Outputs t/ha 0.75 0.75 1 1 1 1.2 1.2 1.2 1.2 1.2 1.2 1.2 Cultivated Area ha 500 500 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 Production t 375 375 1000 1000 1000 1200 1200 1200 1200 1200 1200 1200 Income MGNF 106875 106875 285000 285000 285000 342000 342000 342000 342000 342000 342000 342000 1.4 RICE GROWN IN FLOODED AREAS (Upstream) Trend of Outputs t/ha 1 1 1.5 1.5 1.5 1.75 2 2 2 2 2 2 Cultivated Area ha 50 50 100 150 150 150 150 150 150 150 150 150 Production t 50 50 150 225 225 262.5 300 300 300 300 300 300 Income MGNF 14250 14250 42750 64125 64125 74812.5 85500 85500 85500 85500 85500 85500 1.5 CASSAVA Trend of Outputs t/ha 2.5 2.5 3.5 3.5 5 5 5.5 6 6 6 6 6 Cultivated Area ha 130 130 200 250 300 300 400 400 400 400 400 400 Production t 325 325 700 875 1500 1500 2200 2400 2400 2400 2400 2400 Income MGNF 24375 24375 52500 65625 112500 112500 165000 180000 180000 180000 180000 180000 1.6 GROUNDNUTS Trend of Outputs t/ha 0.8 1 1.25 1.25 2 2 2.5 2.5 2.75 2.75 2.75 2.75 Cultivated Area ha 220 220 270 300 350 450 450 500 500 500 500 500 Production t 176 220 337.5 375 700 900 1125 1250 1375 1375 1375 1375 Income MGNF 35200 44000 67500 75000 140000 180000 225000 250000 275000 275000 275000 275000 1.7 MAIZE Trend of Outputs t/ha 0.5 0.5 0.75 0.75 0.9 0.9 1.2 1.2 1.2 1.2 1.2 1.2 Cultivated Area ha 300 300 350 475 500 500 600 600 600 600 600 600 Production t 150 150 262.5 356.25 450 450 720 720 720 720 720 720 Income MGNF 25500 25500 44625 60562.5 76500 76500 122400 122400 122400 122400 122400 122400 1.8 CASHEW NUTS Trend of Outputs t/ha 1 1.25 1.5 1.5 1.75 2 2.25 2.75 3 3.25 4 4.75 Cultivated Area ha 250 250 550 750 900 950 1050 1050 1050 1050 1050 1050 Production t 250 312.5 825 1125 1575 1900 2362.5 2887.5 3150 3412.5 4200 4987.5 Income MGNF 37500 46875 123750 168750 236250 285000 354375 433125 472500 511875 630000 748125 1.9 TIMBER Trend of Outputs m3/ha 5.5 5.75 6 6 6.25 7.5 9.25 14.25 17 17 17.5 18 Cultivated Area ha 6 71 132 193 243 243 285 330 375 420 420 420 Production m3 33 408.25 792 1158 1518.75 1822.5 2636.25 4702.5 6375 7140 7350 7560 Income MGNF 3300 40825 79200 115800 151875 182250 263625 470250 637500 714000 735000 756000 1.10 MARKET GARDENING PRODUCTS Trend of Outputs t/ha 0.15 0.15 0.2 2 0.2 0.25 0.25 0.25 0.3 0.3 1.3 2.3 Cultivated Area ha 20 20 30 30 40 60 60 60 1790 1760 1760 1760 Production t 3 3 6 60 8 15 15 15 537 528 2288 4048 Income MGNF 450 450 900 9000 1200 2250 2250 2250 80550 79200 343200 607200
TOTAL INCOME 461200 481275 1061025 1535842.5 2459675 3438983 4065870 4713295 5023220 5137745 5540870 5943995
ANNEX 6
REPUBLIC OF GUINEA UPPER GUINEA RURAL DEVELOPMENT SUPPORT PROJECT
ECONOMIC RATE OF RETURN
INCOME COST CASH FLOW Year Agric. Prod. Marketing TOTAL 1 461200 99500 560700 4,068,887.00 -3508187 2 481275 100500 581775 3320984 -2739209 3 1061025 115750 1176775 6322297 -5145522 4 1535843 115750 1651593 2415958 -764366 5 2459675 115750 2575425 1702304 873121 6 3438983 115750 3554733 3554733 7 4065870 115750 4181620 4181620 8 4713295 115750 4829045 4829045 9 5023220 115750 5138970 5138970 10 5137745 115750 5253495 5253495 11 5540870 115750 5656620 5656620 12 5943995 115750 6059745 6059745 13 5943995 115750 6059745 6059745 14 5943995 115750 6059745 6059745 15 5943995 115750 6059745 6059745 16 5943995 115750 6059745 6059745 17 5943995 115750 6059745 6059745 18 5943995 115750 6059745 6059745 19 5943995 115750 6059745 6059745 20 5943995 115750 6059745 6059745 TOTAL 87414955 2283500 89698455 17,830,430.00 71868025
ERR: 24.23%
Annex
GUINEA THE UPPER GUINEA RURAL DEVELOPMENT SUPPORT PROJECT (PADRGHG)
CORRIGENDUM
Pages vii and 17, Summary of Estimated Project Cost by Component and Table 4.6.1a The figures in the columns under «Million UA» and entitled «F.E.» and «L.C.» should be inverted and read as follows: Summary of Estimated Project Costs by Component
Million GNF Million UA Components F.E. L.C. Total F.E. L.C. Total % Total A. Enhanced Production 5,107 2,903 8,010 3.10 1.76 4.86 41 B. Opening up of the Region 1,636 0,873 2,509 0.99 0.53 1.52 13
C. Support to the Organization of the Rural 2,945 0,665 3,610 1.78 0.40 2.18 19 Community D. Project Management 2,703 0,550 3,253 1.64 0.33 1.97 17
Base Cost 17,382 12,391 4,991 7.51 3.02 10.53 90 Physical Contingency 0,283 0,165 0 448 0.17 0.10 0.27 2 Price Contingency 1,074 0,410 1,485 0.65 0.25 0.90 8 Total 13,748 5,566 19,315 8.33 3.37 11.70 100
Page xiii, Project Matrix: "Objectively Verifiable Indicators" column Resources: The correct amounts are as follows:
HEADING OBJECTIVELY VERIFIABLE INDICATORS MEANS OF VERIFICATION ACTIVITIES (Components) RESOURCES - Resource requirements: UA 11.70 million - Loan Agreement and Sources of Financing: Government Budget
1- Enhanced Production and Sustainable ADF: UA 4.15 million; Govt/Benefic.: UA 1.22 million Natural Resource Management;
2- Opening Up; ADF: UA 1.49 million; Govt/Benefic.: UA 0.23 million
3- Support to the Organization of the Rural ADF: UA 2.43 million; Govt/Benefic.: UA 0.03 million and Local Communities.
4- Project Management ADF: UA 1.93 million; Govt/Benefic.: UA 0.22 million
Page 7, Paragraph 2.8.1.iii should read: The World Bank is financing over 12 years (instead of 15).
Page 11, Paragraph 4.3.2. vi, should read: … "promotion of 300 rice producers’ associations" (instead of the stated 124).
Page 15, (numbering of item) should read: D. Project Management (instead of C).
Page 24, Table 5.3.1 Arrangements for the Procurement of Goods, Works and Services,: The amount entered for the category «Technical Assistance» (1.896) should be moved from the column GOV. to the column SL. The rest of the table remains unchanged.
Table 5.3.1 Arrangements for the Procurement of Goods, Works and Services
Categories In million UA TOTAL NCB OTHERS SL GOV. BENEF. SERVICES Designs (0.155) 0.155 Personnel (1.012) 0.315 1.327 Training (0.060) 0.060 Technical Assistance (1.896)6) 1.896 Credit (0.957) 0.957 Support Research (0.001) 0.008 0.008 Operating Resources (0.892) 0.091 0.983 Audit and Mid-Term Review (0.122) 0.122 GOODS Materials (0.313) 0.313 Vehicles (0.303) 0.303 Equipment (0.132) 0.030 0.162 Other Goods (photos, maps) (0.582) 0.582 Inputs (0.002) 0.002 WORKS Plains and Bottomlands (0.708) 0.311 1.019 Feeder Roads and Structures (0.966) 0.966 Buildings (0.676) 0.591 1.267 Boreholes 0.388) 0.388 Other Constructions Works (0.024) 0.024 Base Cost (2.762) (3.611) (2.815) 1.005 0.342 10.535 Unallocated (1.022) 1.172 Total 11.707