Document of The World Bank

FOR OFFICIAL USE ONLY Public Disclosure Authorized

Report No. P-3726-COM

REPORT AND RECOMMENDATION

OF THE

Public Disclosure Authorized PRESIDENT OF THE

INTERNATIONALDEVELOPMENT ASSOCIATION

TO THE

EXECUTIVE DIRECTORS

FOR A PROPOSEDCREDIT OF SDR 4.8 MILLION

TO THE

FEDERALISLAMIC REPUBLIC OF THE COMOROS Public Disclosure Authorized FOR A

RURALSERVICES PROJECT

April 11, 1984 Public Disclosure Authorized

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

Currency Unit = Comorian Franc (CF) (The CF is fully convertible into the French franc at 50 CF = I FF).

Calendar 1983 February 1984

Unit = l'omorianFranc (CF) = Comorian Franc (CF) US$1.00 = CF 390 = CF 424 CF 1,000 = IUS$2.56 = US$2.36 CF 1,000,000 = US$2,564 = US$2,358

(The Staff Appraisal]Report is based on US$1.00 = 364 CF).

MEASURES

i meter (m) = 3.28 feet 1 square meter (m2) = 10.76 square feet 1 kilometer (km) = 0.62 miles 1 square kilometer (km2) = 0.386 square miles

ABBREVIATIONS

AfDB = African Development Bank CADER = Centre d'Appui au DeveloppementRural CEFADER = Centre federal d'appui au developpement rural EDF = European Development Fund FAC = Fonds d'Aide et de Cooperation IFAD = InternationalFund for AgriculturalDevelopment IRAT = Institut de Recherche d'AgronomieTropicale PPF = Project Preparation Facility UNCDF = United Nations Capital Development Fund UNECA = United Nations Economic Commission for Africa UNDP = United Nations DevelopmentProgram WFP = World Food Program

GOVERNMENT FISCAL YEAR

January 1 - December 31 FOR OFFICIAL USE ONLY

COMOROS

RURAL SERVICES PROJECT

CREDIT AND PROJECT SUMMARY

Borrower: Federal Islamic Republic of the Comoros

Beneficiary: CEFADER (Federal Center for Support to Rural Development)

Amount: SDR 4.8 million (US$5.04 million equivalent)

Terms: Standard

Colender: International Fund for Agricultural Development (IFAD)

Project Description: The objective of the proposed project is to reorganize the CEFADER/CADER so that it functions effectively as the network for rural services. The project would address the problems of recurrent cost financing and inadequate budgetary procedures, shortage of skilled manpower and need for better donor coordination in the sector. It would improve rural extension services, training and supervision of staff, monitoring and planning, and budgetary management and finance. It would strengthen animal health, forestry and land conservation programs and would complete two new CADERs and support existing CADER operations.

Benefits & Risks: By strengthening the rural services network, the project would provide for a more systematic approach to extension, field trials and development of technical packages, which should lead to increased foodcrop, livestock and fuelwood production and better forestry management. Increased food and meat production would result in import savings. An additional benefit would be the improved nutritional level of the rural population. The project would also promote more efficient use of resources provided by external donors.

The main risks to project implementation include limited Comorian skilled manpower, for which the project would provide substantial training programs for national staff and ensure that a substantial portion of technical assistants' work is devoted to in-service training; and Government lack of funds for recurrent financing, for which the project would establish proper budgetary procedures and ensure a gradually increasing contribution by Government to rural services recurrent costs.

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

Estimated Costs:

Local Foreign Total ------(US$ million) -----

Techn:.calAssistance 0.64 2.56 3.20 Overseas Training 0.04 0.55 0.59 Vehicles, Imported Livestock and Equipment 0.08 0.69 0.77 Civil Works 0.46 0.16 0.62 Agricultural and Veterinary Inputs 0.13 0.36 0.49 In-service Training and Operating Costs 1.08 0.23 1.31

Subtotal, Base Costs 2.43 4.55 6.98

Physical Contingencies 0.24 0.46 0.70 Price Contingencies 0.74 0.88 1.62

Total Project Costs 3.41 5.89 9.30

Financ:ingPlan:

Local Foreign Total ------(US$ million)-----

Government 0.93 - 0.93 IDA 1.60 3.44 5.04 IFAD 0.88 2.45 3.33

Total 3.41 5.89 9.30

Estimated Disbursements: IDA FY 1985 1986 1987 1988 1989 1990 ------(US$ million)------Annual 0.96 1.08 0.90 0.84 0.70 0.56 CumTulative 0.96 2.04 2.94 3.78 4.48 5.04

Rate of Return: n.a.

Appraisal Report: Report No. 4775-COM, dated March 26, 1984

Map: IBRD 12893R INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE FEDERAL ISLAMIC REPUBLIC OF THE COMOROS FOR A RURAL SERVICES PROJECT

1. I submit the following report and recommendation on a proposed development credit to the Federal Islamic Republic of the Comorosl/ for an amount of SDR 4.8 million (US$5.0 million equivalent) on standard IDA terms to help finance a rural services project. The International Fund for Agricultural Development (IFAD) would participate * with US$3.3 million in parallel co-financing on standard IFAD terms.

PART I - THE ECONOMY

Background and Economic Structure

2. An updating economic memorandum based on the findings of an economic mission to the Comoros in September 1982 was distributed to the Executive Directors in March 1983. The following summary is based on the findings of that mission as updated by a Public Investment Program Review mission which visited the country in December 1983.

3. The Federal Islamic Republic of Comoros, with a GNP per capita estimated at about US$270 in 1983, is considered one of the least developed countries in the world. Its population is 375,000 with a density of 225 inhabitants per square kilometer, among the highest in Eastern Africa, and a ratio of population to arable land of 800 inhabitants per square kilometer.

4. The economy of the Comoros is dominated by its physical and structural characteristics -- a small archipelago isolated from the major trade routes lacking both natural resources and skilled manpower and confronted with a serious imbalance in the geographical distribution of its population as well as a high demographic growth rate. Agriculture is the main productive activity; however, the country has become increasingly dependent upon food imports, which account for about 40 percent of food consumption. During and after the colonial period, the country has lived well beyond its means, relying heavily on external assistance. The Comoros is a member of the CFA Franc zone.

1/ The Comoros archipelago consists of four islands: Grande Comore, Anjouan, Moheli and Mayotte. The Government of the Federal Islamic Republic of the Comoros has effective control over the first three islands. Mayotte is still under French administration. References to the Comoros in this report exclude Mayotte. - 2 -

5 Agricultural land is scarce. Of the total land area of 1,660 square kilometers, only 50,000 ha, much of which are steeply sloping, are suitable for annual cropping. A ratio of one hectare of arable land per eight inhabitants is hardly enough to permit food self-sufficiency. The potential for traditional in-shore fishing is limited because of the narrowness of the continental shelf and often unfavorable weather conditions limiting the number of fishing days for traditional boats. Deep-sea fishing potential is estimated at about 12,000 tons annually, but is yet unexploited because of the lack of appropriate infrastructure. There are no known mineral resources, and energy resources are limited to the hydro-electric sites of Moheli and Anjouan whose potential is estimated at a modest 20 MW and 500 KW respectively. Geothermal potential is being assessed. Potential for tourism exists, although it is also unexploited.

6. Non-agricultural activities in the Comoros are limited. The very small processing and manufacturing sector consists mainly of ylang-ylang distillation into perfume essences, a small soft drink bottling plant, a sawmill and a soap factory. The social sectors, notably education and health, were adversely affected by the econonic difficulties of the country during the 1975-78 period, but recently the situation has started to improve, partly on account cf substantial external assistance. Education hadl already started expanding rapidly before independence, and by 1978-79 enrollments in primary schools exceeded 80 percent of the population in the 7-12 age group. However, the system lacks relevance to the Comoros' needs and the quality of education remains poor. There is also a severe shortage of qualified Comorian teaching staff and a large number of teachers are being provided by the Arab League and France.

7. Population is growing rapidly, and population pressure on land is al:-eady a serious problem. The average annual rate of growth of the population since the 1966 census was 3.6 percent, resulting from a 2.6 percent natural growth rate compounded by an influx of immigrants, mainly refugees who fled Madagascar in 1977. The problem has become more acute since independence, because Madagascar, which was a natural emigration outlet for Comorians, no longer welcomes immigrants from Comoros. The present rate of growth of the population is unknown but is probably higher than 2.6 percent, given the absence of fertility reduction measures and the likely decrease in mortality in recent years. Population density varies among the three islands, with 88 inhabitants per square kilometer on Moheli, 203 on Grande Comore and 350 on Anjouan. Health conditions are poor; life expectancy is only 46 years and the child mortality rate is high. Malnutrition is widespread and malaria is hyperendemic in many areas .

8. The lack of adequate communication and transport infrastructure is a major bottleneck for a country such as the Comoros because of its isclation and topography. The lack of adequate maritime infrastructure is the most serious problem and there is very little inter-island shipping. Recent heavy investments in road infrastructure have resulted in a good circular network on each island, sometimes exceeding needs. Road maintenance is both insuffic:ient and inefficient despite a high level of foreign assistance. Air transport infrastructure is relatively - 3 -

satisfactory and air transportation is the Taajor mode for both passenger traffic and shipment of high value export crops (vanilla and perfume essences).

9D The country suffers from an acute shortage of trained personnel in agriculture, health, public administration and industry. The lack of skilled manpower is compounded by the unattractive conditions found on the islands by graduates returning from their studies abroad (lack of opportunities and housing, low wages). Most available jobs are in the public sector, but poor public management and insufficient budgetary resources often create delays in salary payments, sometimes up to six months, thus limiting the level of commitment and motivation of civil servants. As a result, turnover is extremely high and many trained Comorians elect to stay or to return abroad.

10. In 1982, CDP amounted to about CF 46 billion (US$131 million equivalent). The GDP growth rate has been estimated at 6.5 percent over the 1979-81 period, or 3 percent per capita. The rate of fixed investment is high, averaging 24 percent of GDP over the 1979-82 period, although it does not follow any trend, due to the relative lumpiness of the projects. This figure compares to a low and decreasing rate of domestic resources mobilization (13 percent of GDP in 1979, 5 percent in 1982), averaging 8 percent of GDP over the period; the resource gap has therefore widened, from 13 to 24 percent of GDP. While public consumption has been maintained at about 20 percent of GDP, total consumption has increased from 87 to 96 percent of GDP.

11. Agriculture continues to provide the livelihood for 80 percent of the population and accounts for all export earnings and 40 percent of the GDP. Manufacturing activities, mostly agro-processing, are poorly developed, representing less than 5 percent of the GDP, because of the remoteness of the country, the lack of capital, the low level of skills and poor infrastructure. Services, dominated by trade and Government, represent 40 percent of GDP, a share comparable to agriculture. Construction represents 10 percent of GDP. Government expenditures are heavily subsidized from external sources; trade and other services as well as construction depend heavily on external financing of development activities.

12. Exports have averaged about 17 percent of GDP per year, with the exception of 1980 when vanilla was stockpiled in an attempt to manipulate market prices. In 1981 and 1982 the benefits of favorable prices for vanilla and cloves, further boosted by an increase in the value of the US dollar in which those commodities are priced, were offset by a decline in the export volume of copra and perfume essences for which, moreover, prices were unfavorable. The volume of imports reached 41 percent of GDP in 1982 and is mainly composed of food (one-third), energy (one-sixth), and construction materials (one-tenth). The trade gap stands at 24 percent of GDP in current prices and is widening. Net transfers and capital flows averaged 20 percent of GDP, but were still insufficient to stop a very rapid decline in reserves which stood at less than thirty days by the end - 4-

of 1982. Debt service is minimal, at 3 percent of exports, due to the cancellation of a part of the debt due to France in 1979, as well as the concessional nature of the remaining debt.

13. rentral Government revenues have averaged 11 percent of GDP in recent years, with only a token contribution from direct taxes. The weak performance in collection wqas due in part to poor tax administration which is now improving with the centralization of tax collection and the creation, with IMF assistance, of the General Tax Administration (AGI). Revenues covered 24 percent of total expenditures and only 34 percent of recurrent expenditures over the period 1979-82, while non-budgetary grants have been increasing. Capital expenditures, which practically amount to the overall deficit after grants, are totally financed through medium and long--term borrowing. Until recently, this borrowing was on very favorable terms, entailing a very low debt service. However, the recent borrowing for the construction of the Mutsamudu port, which carries shorter mal:urities and higher interest rates than are usual for Comoros, is likely to bring too heavy a burden on public finances as early as 1986, as the debt service ratio is projected to rise from 5 percent in 1982 to 18 percent in 1985, 30 percent in 1986, and 40 percent by 1990.

14. Recent economic developments have been characterized by some (seemingly) contradictory signals: rising agricultural output and export recovery have been accompanied by rising food imports; an amelioration of budgetary and fiscal procedures (see below) has been accompanied by a deterioration in the savings rate; and an increase in investments is linked with a severe threat to the country's ability to service debt in the future. The first attempt at writing a Plan (para. 15) has also revealed clearly the growing problem of local financing of investments and operating expenditures. These developments underline the weak control which the Government exercises over the economy. This lack of control stems mainly from: the vulnerability of the country to external shocks (export and import price fluctuations), the very large role of foreign aid, and the fledgling nature of national economic management.

Government's Policies and Foreign Aid

15. The Government has set as a priority task the reconstruction of an efficient public sector and administration which was seriously disrupted under the previous regime. Radical measures have been taken concerning several public enterprises (liquidation of a publicly-owned bank and a sea transport company), and a review of the public portfolio is underway. A planning unit was recently staffed under a UNDP-financed/Bank-executed planning assistance project. The UNDP/Bank team helped the Government prepare an Interim Plan (1983-86) which defines in a macroeconomic framework the objectives and the strategy of the Government. In the ag:-icultural sector, the Government has begur to implement its strategy reLative:Ly successfully despite some staffing problems, and is a good example of collaboration between dedicated local staff and technical assistance personnel. However, in this sector as in the others, investments depend as much on what sources of external assistance are - 5 -

willing to finance as on the plans of the Government. Moreover, due to continued investment and the large need for technical and management support, the manpower gap is likely to Increase and will have to be filled by expensive technical assistance.

16. Domestic financial resources are limited (see para. 13) and the need for external financing extends beyond investment financing to budget support. Between 1979 and 1982, the country obtained grant and loan commitments totalling about US$185 million, representing about US$130 per capita per year. Net ODA disbursements averaged US$99 per capita per year, which is very high in comparison to the aid levels received by other African countries. Foreign assiLstance is vital for sustaining the country's present level of economic activity; net flows averaged 33 percent of GDP during 1979-82. Besides IDA which contributed on average 9 percent of total commitments and 13 percent of all loan disbursements, the main donors have been France, Saudi Arabia, Kuwait, Abu Dhabi, and several multilateral institutions, in particular AfDB, BADEA, the Islamic Bank, UN agencies, and EDF. The United States has so far provided only a small amount of humanitarian aid, but it has recently indicated its intention to implement, beginning in 1984, a larger program.

17. The Government is still facing difficulties in securing local counterpart funds for development activities. These difficulties stem from the country's inherent limited resources as well as from institutional weaknesses in the public sector. A recent reorganization of the Administration has been completed and has led to considerable improvement in the Government's ability to meet its employee payroll obligations on time. More reforms are under way which are expected to have a positive effect on the Government's cash flow and streamline and clarify its budget procedures. These include renegotiation of the financial agreement with France; provision of French technical assistance to the Ministry of Finance for revision of budgetary procedures; and secured budgetary support from France. The Public Investment Program has been reduced, projects deferred and investments programmed with a link to the recurrent budget.

18. Increased external financing on a concessionary basis will continue to be required to support the Government's development efforts and to ensure a continued capacity to service external debt. Given the Comoros' poverty and current resource constraints, the Association should continue to contribute to local cost financing.

PART II - WORLD BANK GROUP OPERATIONS IN THE CONOROS

19. The Comoros joined the Bank in December 1976 and the Association in December 1977. To date, Bank Group operations in the Comoros include an IDA highway credit of US$5.0 million in 1978, a coconut rehabilitation project for which IDA approved a US$5.2 million credit in 1980, a second highway maintenance credit of US$6.3 million and a US$6.0 million education credit, both in 1981, a US$2.3 million line of credit to the Development - 6 -

Bank of Comoros and a US$2.8 million health and population project, both in 1]983. To date, IFC has not made any investment in the Comoros. ]:mplementation of ongoing projects is generally satisfactory, although a substantial input of technical assistance is required for project maniagement. Annex II to this report contains the status of Bank Group Operations in Comoros at December 31, 1983.

20. The Bank Group's only operation in the agricultural sector to clate is the coconut rehabilitation and rodent control project. The project i s designed to increase ccpra production by replanting aging coconut trees with improved varieties, reducing crop losses through rodent control and improving copra processing. The replanting programs are proceeding satisfactorily but the rodent control component has run into some technical problems, which will be addressed with the arrival of a new rodent control specialist. Due to low world prices for copra, litt. progress has been rmade on the copra processing component. The project was appraised before the CEFADER/CADER system (paras 28-29) was in place, and a review of the project to examine its functioning within the CEFADER/CADER system took place in March 1984.

21. Regarding other on-going Bank operations in the Comoros, the road mainteniance project has suffered from lack of counterpart funds and dleficiencies in project management, which have resulted in the poor use of project equipment. However, a recent supervision mission reported a noticeable reduction in down time of equipment and in its use for non-project tasks. Implementation of the education project has experienced some delays but is proceeding well; by December 1983 about 250 teachers were upgraded under the Teacher In-Service Training Program. The line of credit to the Development Bank of Comoros was declared effective in December and Government has already submitted projects for approval. The health and population project was declared effective on February 16, 1984. Comoros has been quite effective in using funds made available for project preparation under the Project Preparation Facility and its performance on disbursement of credits is generally good. Disbursements under the first hi,ghway project were virtually the same as the appraisal estimates and were c4om1pleted in three years. Disbursements under the Coconut project have been slow due to delays in construction and in award of contracts and the poor market for copra.

22. Future lending to the Comoros will continue to support the productive sectors, i.e., agriculture and small-scale industries, but assistance will also be provided for technical assistance and education and manpower training. A project completion report on the First Highway project in Comoros was released on December 30, 1983, Its conclusion was ! hat except for the construction part, the project was only partially successful due to timing delays in ordering and receiving equipment, shortage of local funds for payment of brigade crews, and inadequately qualified local counterparts. - 7 -

23. Sector studies have been prepared on health, population and nutrition and on transportation. An education sector merno is planned for FY85. A Bank agricultural sector memorandum was prepared and discussed with Government and is presentLy being finalized for publication in grey cover. The sector memo identifies key constraints and needs, many of which are related to overall country constraints -- the shortage of good agricultural land and the increasing population pressure; Government difficulties in financing recurrent costs; shortage of skilled manpower; and need for better donor coordination. The majority of the recommendations in the sector memorandum can be implemented within the framework of the CEFADER/CADER system. The main focus of the Government, IDA and the international aid community should therefore be centered on the continued strengthening of the CEFADER/CADER network.

III. THE AGRICULTURAL SECTOR

Geographical Setting

24. The islands are of volcanic origin, fairly rugged and covered with lush vegetation, and their uneven relief gives rise to a wide variety of micro-climates. Due to population pressure, increased cultivation on steep slopes combined with heavy rainfall and exposure to the trade winds has caused severe erosion, especially on Anjouan. There are approximately 55,000 farm families. Annual foodcrops and bananas cover about 40,000 ha, coconuts a further 30,000 ha and export crops about 8,000 ha. Figures on production and yields for all subsectors are tentative, since there is no data collection service and no recent agricultural census.

25. The main export crops are ylang-ylang (a tree whose flowers are distilled for a perfume base), cloves, vanilla and until recently coconuts. Coconuts are now mostly consumed locally since exports have declined due to increasing demand for local consumption and poor world prices. Tree crops are frequently mixed with foodcrops (cassava, maize, bananas and pigeon peas). Average yields are low, reflecting simple cultivation techniques, primitive tools, elimination of fallowing, and the almost total lack of fertilizer, improved seed or pest control. Double-cropping is very rarely practiced.

26. Food production has not kept pace with population growth; rice * imports have increased from 5,900 tons in 1961 to 25,000 tons at present. Given the land shortage, food production increases must come about through productivity improvements rather than area expansion. There is considerable scope over the short term for improvements in productivity through improved techniques such as row planting, stone removal, simple terracing and use of better hand tools and seed. While animal husbandry is secondary to agriculture, most farm families raise a variety of small - 8 -

animals. Livestock productivity is reduced by genetic degeneration, poor nourishment, insufficient water and parasitic and other infections. Livestock productivity could be substantially increased by gradual introduction of an animal health service to treat common diseases and organize vaccination campaigns, improvement in forage grasses and cross-breeding.

27,. Indigenous forests cover approximately 10.6 percent of the islands' area. Existing forests are being rapidly degraded as foodcrop cultivation has spread into forest areas while the exploited forests have not been renewed. There are no forestry management programs and few reforestation or replanting programs. If measures to manage forest lands are not undertaken, the islands' growing population would have to depend increasingly on imports for its wood and energy needs. Forests were the subject of concessions during the colonial period; 5,000 ha of the Kartala forest are still in private ownership, and there are no legal controls over its use. The State has the right to charge stumpage fees for trees cut in State forests but these are rarely collected. Revisions in forestry legislation are included under the project.

Institutions

28. Following independence there was no national agricultural extension system in the Comoros. In 1980, aware of the need to educate the subsistence farming population in techniques to improve productivity, the Government created the CEFADER/CADER system. The CEFADER is part of the Ministry of Production and provides technical support and guidance at the federal level to the CADERs, the regional extension and service centers. The CEFADER is responsible for conceiving programs and carrying out project implementation and technical, financial and administrative supervision and management of CADERs. The existing organization of the CEFADER includes agronomy, livestock, forestry, rural infrastructure development, economics and research, home economics, nutrition, and training and extension divisions. While the CEFADER has only three years' operating experience, the beginnings of a rural extension service are in place. CEFADER management is competent and has a strong commitment to rural development.

29. The functions of the CADERs include responsibility for extension services to demonstrate techniques to farmers, provision of inputs and services, collecting informat:ion for monitoring activities, assisting farmers in obtaining credit from credit institutions, and providing information on and support to the formation of groups for marketing. At present there are five CADERs: one covers 15 of the 20 villages on Moheli; two reach about 40 percent of the population on Anjouan; and two serve 4 about 55 percent of Grande Comore. Each CADER has a director, an assistant director, an accountant, an average of 10 extension agents and two home economists and a few hectares of land for crop trials and demonstrations. Four more CADER buildings, financed by UNCDF, are under construction. - 9 -

Government has requested IDA to finance the completion of these. The six new CADERs, when fully staffed, would extend the geographical coverage of the CEFADER/CADER system to cover the entire population of the country.

Government Policies

30. Government strategy for the development of agricultural production is being implemented through the CEFADER/CADER system. The primary objectives are to increase food self-sufficiency and reduce food imports through productivity improvements, while concurrently increasing export crop productivity and undertaking land conservation measures. The need for reorganization, effective use and supervision of staff, budgetary management, and coherent planning and direction by the CEFADER is becoming more pressing as its geographical coverage is extended, The major donors, who cooperate well at field level, are well aware, as is CEFADER management, of the need to consolidate the disparate activities into a clear program of action, and to ensure that Government has the budgetary capacity to continue these activities once the aid projects are complete.

On-going Activities in the Agricultural Sector

31. From 1979-82, the UNDP was responsible for establishing the CEFADER structure, equipping the first five CADERs, providing technical assistance, salaries of UN volunteers and some operating costs. CEFADER/CADER operating costs are now mostly paid by Government. The projects carried out in the framework of the CEFADER/CADER network include: a US$2.3 million UNICEF/EDF/UNDP poultry-raising project; a US$1.6 million EDF maize project; a US$5.2 million IDA project for coconut rehabilitation and rodent control; a US$7 million WFP project with food-for-work involving land terracing and rural works; a US$0.9 million EDF project for soil protection and erosion control; and a US$0.5 million FAC-financed research and development project. In addition, AfDB financed a US$7.6 million vanilla/clove project, which is being redesigned. IFAD financed a project preparation grant of US$300,000, administered by IDA, in November 1982 for preparation of the livestock component of the proposed project.

Problems in the Agricultural Sector

32. The scarcity of good agricultural land and increasing population growth are probably the major constraints to increasing agricultural production in the Comoros. However, there are financial, manpower and aid coordination problems which impede efficient operations in the sector.

33. Recurrent Costs. Donors to the Comoros generally finance not only foreign and local investment costs but also the majority of local operating costs, since Comorian management of public finances has been lacking and the revenue base insufficient to meet the country's recurrent cost obligations. Rural extension services are presently included in the - 10 -

development budget, not in tlhe recurrent budget where they belong. As foreign assistance is withdrawn, there is no clear mechanism for local costs to be taken over by Government. Appropriate budgetary procedures for including operating costs in the recurrent budget are essential, and these woUld be established under tlhe proposed project.

34, Shortage of Skilled Manpower. Another constraint to the development of Comorian rural services is the heavy dependence of the Comoros upon technical assistance, due to the severe shortage of skilled manpower at the senior management and middle levels. Skilled agricultural staff receive university training in France, but there is no organized program of initial training for extension-level staff. Thus the quality of staff varies from those who have received formal training outside the Comoros to those with little initial training but with long experience. The EDF is providing some on-the-job training and financing an agronomist expatriate at the CEFADER. The IDA-financed education project would address the problem of training middle-level manpower through construction of an agricultural school on Moheli, scheduled for completion in December 1984. Government is aware of these constraints to strengthening the rural development structure in Comoros. Thirty-seven Comorians are currently undtergoing higher-level training in rural development abroad; a substantial proportion of these should return to fill the middle and higher-level positions.

35, Donor Coordination. The CEFADER/CADER system has received a gre!at deal of aid from several donors. However, better coordination of this aid at the policy-making level is essential. While there has been some coordination among donors for specific co-financing operations, integration of donor activities is necessary so that efforts are not duplicated and resources may be better utilized. All projects are in principle within the CEFADER/CADER system; however, a major problem of the "pro;ject dependent" nature oE activities has been that the CEFADER/CADER network has not functioned as a coherent, unified extension system. Dif'ferent staff funded under the various projects have tended to work exclusively on those activities.

36. Additionally, there is no uniform salary structure for agricultural staff. Staff salaries funded by different donors differ between CADERs or among staff of the same level. Thirdly, the projects are of uneven quality. While soine activities, such as maize cultivation, have benefitted from close supervision through technical assistance and IRAT's substantial research work, others, such as li-vestock and forestry, have received little or no sustained technical support. These issues will be discussed at the agriculturaL donors' meeting, to be sponsored by the French Caisse Centrale de Cooperation Economique (CCCE) in Paris during May. - 11 -

PART IV - THE PROJECT

Background

37. The proposed project is based on a Government request to the Bank in December 1981 for assistance in financing a rural services project. The need for intervention in the livestock sub-sector was originally identified by IFAD in 1981. The Rural Services project was identified by IDA in March 1982, and in September 1982, the decision was made during preparation to combine the two projects in order to coordinate better the CEFADER/CADER activities. The project was jointly appraised by IDA and IFAD in June 1983. An advance from the Project Preparation Facility for US$475,000 was approved in December 1983 to accelerate implementation. Negotiations were held in Washington on March 9, 1984. The Comorian delegation was led by H.E. Mr. Ahmed Ali Mohamed, Minister of Production, Industry and Artisan Activities, and included Mr. Mohamed Ali, CEFADER Director. A Staff Appraisal Report entitled "Comoros Rural Services Project" (No. 4775-COM) dated March 26, 1984 is being distributed separately to the Executive Directors. A credit and project summary is provided at the beginning of this report and supplemental project data are contained in Annex III of this report. A map, IBRD No. 12893R, is attached.

Project Objectives and Description

38. The project would assist the Government in establishing a national system for rural services which would lead to increased agricultural production. Specifically, the project would support government policies and institution-building in the sector with the following objectives: (i) to improve planning, monitoring and financial management of activities in the rural development sector; (ii) to improve training and supervision of staff at all levels; (iii) to extend gradually rural services to cover animal health and production and forestry and environment; and (iv) to consolidate the geographical coverage of the CEFADER/CADER network.

39. To meet the above objectives, the proposed project includes: (i) establishment of a planning and data collection and monitoring unit for the CEFADER; (ii) expansion of the CEFADER's administrative and financial management capability; (iii) reorganization of the CEFADER/CADER staff work programs through the implementation of a regular extension training and supervision program; (iv) completion and operation of two new CADERs in eastern Grande Comore, and operational support to the existing CADERs and the CADERs under construction through UNCDF financing; (v) strengthening of the CEFADER/CADER capability in the field of livestock through extension services in animal health and animal production, and the improvement and enforcement of sanitation regulations; and (vi) strengthening of CEFADER/CADER activities in the field of forestry and environment through improved farm forestry, soil preservation and forest management. - 12 -

4CI. The project would finance: (i) technical assistance and consul- tancies at the CEFADER level in monitoring/planning and data collection (2.man years); financial management (3 man years); training and extension (2. man years); livestock activities (5 man yiears); and forestry/land conservation (5 man years); (ii) overseas training for middle and higher-level staff, local training for newly-recruited lower-level staff, and in-service training for all local staff; (iii) vehicles and some equipment; (iv) minor civil works; and (v) materials and operating costs.

41. Detailed features of the project are as follows:

(a) Project Data Collection, Monitoring and Planning Unit

The proposed project would finance the establishment of a small planning, monitoring and data collection unit within the CEFADER, under the CEFADER director. With the arrival in February of the technical assistance finianced under the PPF, the unit has become operational. As a condition of credit effectiveness, the unit would prepare a preliminary work program for 1935 covering all ongoing activities, satisfactory to IDA and IFAD (Section 7.01(g), draft Development Credit Agreement). The unit's activities would also include monitoring progress of all CEFADER/CADER projects, providing assistance in the preparation of progress reports, identifying particular problems in project implementation and recommending reorientation as appropriate, and collecting farm data. Unit staff would plan future projects in coordination witih other CEFADER staff and the Directorate of Planning, to ensure compatibility of projects with CEFADER resources and national objectives. The CEFADER would prepare a consolidated work program and.progress reports (to be prepared by the Data Collection unit) which would be submitted with the budget (to be prepared by the Administrative and Financial Unit) two months before the beginning of each fiscal year for annual review and comment by IDA and IFAD (Section 4.01(d), draft Development Credit Agreement). Vehicles, equipment, salaries and operating costs for the unit are also provided.

(b) Assistance in Financial Mlanagement and Adrministrationof the CEFADER

The activities of the existing accounting unit, set up under the Coconut project, would be expanded. Its initial tasks would include: (a) preparation of statements of expenditure for all CEFADER/CADER activities; (b) analysis of costs by activity and by source of financing (including the Government budget and external donors); (c) classification of staff by source of financing, in collaboration with the training/extension specialist; and (d) preparation of a consolidated budget for all CEFADER/CADER activities. These tasks would be included in the 1985 work program. Preparation of such a work program is a condition of credit effectiveness (Section 7.01(g), draft Development Credit Agreement). The Administrative and Financial Unit would prepare detailed and consolidated annual budgets of all CEFADER/CADER activities to be reviewed by "DA and IFAD at least two months before the start of the following fiscal year (Section 4.01 (b)(iii), draft Development Credit Agreement). The unit would also prepare project accounts, supervise the revolving funds - 13 -

and materials accounts; and develop simple accounting procedures to monitor costs. Also included are salaries for two incremental staff, on-the-job training for local staff, funds for vehicle maintenance and office equipment.

(c) Training and Supervision Program

The proposed project would establish a program of extension, training and supervision at all levels. A training/extension specialist financed under the PPF would inventory existing staff posts and identify their redeployment potential and training needs. Preparation of an action plan for staff redeployment and an initial training and visit program for all extension staff, as part of the unit's initial work program, and a preliminary extension manual satisfactory to IDA would be conditions of credit effectiveness (Section 7.01(f)(g), draft Development Credit Agreement). Other training activities would include preparation of work programs detailing field visits and training for extension staff and for all CADER staff as well as initial training for home economists and accountants. Office and pedagogical equipment and in-service training are also provided.

(d) Assistance to Establishment and Operation of CADERs

The project would provide for the operation of four new CADERs (regional extension and service centers) recently constructed with UNCDF financing, and ensure the gradual build-up of their staff to full strength (para. 29). It would also provide funding for construction and equipment of the two existing CADERs not supported by other donors. This component includes: technical assistance for two man years through U.N. volunteer agronomists; salaries of all incremental staff; vehicle replacements and vehicle and equipment maintenance; and incremental working capital for purchase of inputs which would be sold to farmers for cash.

(e) Strengthening CEFADER's Livestock Division

The CEFADER Livestock Division would be strengthened to enable it to carry out the normal duties of a small animal health/production service. It would initially be directed by an expatriate veterinarian responsible for development of the activities, training, supervision, and organization of the work program for all staff within the division. Preparation of an initial work program for the division would be a condition of credit effectiveness (Section 7.01(g), draft Development Credit Agreement). The division's activities would include: provision of animal health services in the field through the CADERs, improvement of livestock feeding and introduction of livestock production extension services. Also included are vehicles and lab and poultry equipment, civil works, purchase of improved stock, and increments to the materials account for sale of drugs. - 14 -

(f) Strengthening Forestry, Farm Forestry and Land Conservation Activities

The project would reinforce the Forestry/Land Conservation Division of the CEFADER/CADER in order to develop farm forestry and land conservation programs and ensure better management of existing forests. Preparation of an initial work program for the division would be a condition of credit effectiveness (Section 7.01(g), draft Development Credit Agreement). The Division's activities would include: tree planting/land conservation on 750 ha of uncultivated land and 1,000 ha of cultivated land; a development plan for exploitation and management of the state forests; maintenance cifvillage nurseries; and revision of forest a legislation. Operating costs, consisting of salaries, plant material, vehicles and office maintenance, would also be included.

Special Features

42. A key feature of the proposed project would be reorganization of the activities of existing staff on the one hand, and gradual expansion of the new CADERs to their full staff strength on the other. Adequately qua:ified Comorian staff will be available to fill the senior CADER posts; Government has identified senior staff about to return from training abroad as CADER directors and assistant directors. Appointments to senior CEFADER posts would be acceptable to the Association (Section 4.01(e), draft Development Credit Agreement). Additionally, Government will prepare by December 31, 1984 a plan to ensure that Comorians who do not return to the Comoros after benefitting from project-financed training abroad would reimburse the cost of such training (Section 4 .01(g), draft Development Credit Agreement). Action programs for staff in existing CADERs would include the full range of extension messages (actual demonstration to a farmer) from the first year, and trials, studies and farmer feedback should assist the development of improved techniques over the early years of the project. Programs for staff in the new CADERs would emphasize a more limited range of messages, gradually expanding in scope as staff acquire experience.

43. The project does not provide for technical assistance in agronomy, since there are trained agronomists in the Comoros, and furthermore, technical assistance is already provided under the UNDP and EDF projects. However, appropriate technical packages and a work program for agronomy would also be prepared as a condition of credit effectiveness, and the agronomy division would participate fully in the training and extension program (Section 7 .01(g), draft Development Credit Agreement).

44. Another feature of the project is the amount of technical assistance, which comprises 40 percent of project costs. Training of Comorian staff would form a key aspect of the work of the technical assistance and consultants. A training program would be included in the annuEalwork programs and preparation of an initial training program is a condition of credit effectiveness (para. 41(c)). Terms of reference for technical assistance personnel have been agreed upon with Government. Technical assistance personnel for the monitoring and planning unit and the accounting unit began work in early February, the livestock director in 15 -

March, and the training/extension specialist and forestry/environment director will begin by May and June, respectively. Consultants financed under the project would have qualifications, experience and terms and conditions of employment satisfactory to the Association and to Government (Section 4.02, draft Development Credit Agreement). Expatriate technical experts would manage technical units while Comorian staff are being trained.

45. Proposals for integrating CEFADER/CADER activities into a coordinated program have been discussed with donors in the field and received their support. This coordination would be continued during project supervision. Every effort would be made to ensure that donors have the opportunity to review the CEFADER/CADER work programs during implementation and to associate them during the mid-term review.

Project Cost and Financing

46. The total cost of the proposed project is estimated at about US$9.3 million equivalent, of which about 63 percent, or US$5.9 million equivalent, represents the foreign exchange component. Taxes are negligible since all items imported by the CEFADER are exempt from taxes and duties. A detailed cost table is provided in the credit and project summary. The proposed IDA credit of SDR 4.8 million (US$5.0 million equivalent) would cover about 54 percent of the total cost, the IFAD loan about 36 percent, and the Government would contribute the remaining 10 percent, representing about US$930,000. IDA and IFAD would finance all foreign exchange costs and 73 percent of local costs including operating costs on a declining basis. Thie Government contribution would finance an increasing proportion of local operating costs --mostly salaries, vehicle operation and maintenance. Fulfillment of all conditions precedent to effectiveness of the IFAD loan is a condition of effectiveness of the IDA credit (Section 7.01(a), draft Development Credit Agreement).

47. Recurrent cost implications on the Government's budget will continue to cause concern for some time until the measures described above in para 17 take effect. In the interim in agriculture, the Government has agreed to increase the proportion of its budget devoted to agriculture by 1 percent per annum. Annual operating costs of the CEFADER/CADER system, including project-related costs once the technical assistance has departed, would be approximately CF 380 million, which represent about 7 percent of the Government's recurrent budget of CF 4.7 billion. Assuming that recurrent revenues remain constant at this level (a pessimistic assumption) this would imply a gradual increase in the recurrent budget allocation to agriculture from CF 55 million in 1984 to CF 330 million in 1989, or 85 percent of the Rural Services operating costs. Government would assume an increasing share of these recurrent costs based on the amounts expected to be disbursed over the project implementation period. Combined with continued recurrent cost financing from donors, this should be adequate to close the gap in agriculture. - 16 -

48. Estimates of Goveriament's increasing contribution would be provided at the time of presentation of the consolidated budget and work program by the Administrative and Financial Unit. Government would incorporate into its 1987 recurrent budget all recurrent costs of the CEFADER/CAD7R system and all incremental project costs and make a gradually increasing contribution to CEFADER/CADER operating costs according to a schedule agreed upon at negotiations (Section 4.01(b)(i)(ii), draft Development Credit Agreement). As stumpage fees are collected, they would help finance CEFADER/CADER activities (Section 4 .01(c), draft Development Credit Agreement).

49. Project cost estimates are based on March 1984 prices. The average cost per man-month of long-term techni.cal assistance is estimated at US$9,800 and for short-term consultants, US$12,500. Salaries are based on current Government scales and training abroad reflects actual tuition, travel and subsistence at relevant international academic institutions. Physical contingencies represent 10 percent of total project costs. Price contingencies have been calculated at rates declining from 10 to 8 percent per annum for local supplies and services and from 7.5 to 6 percent per annum for imported items between 1984 and 1989.

Project Implementation

50. The project would be implemented over a period of 5 years and is expected to be completed by September 30, 1989. The CEFADER would be responsible for overall implementation of the project. Under the reorganization of the CEFADER, which would be completed by April 30, 1986, the heads of the four technical divisions (agronomy, livestock, forestry, and civil works), the Monitoring and Planning Unit, the Administrative and Financial Unit, and the Training and Supervision Unit would have responsibility in their areas and report to the CEFADER director (Section 4.0L(f)(i), draft Development Credit Agreement). Each of the four technical divisions would be responsible for research, development of teclnical themes, in-service training for its specialized staff in the CEFAWER/CADER and supervision of extension staff.

51. The Monitoring and Planning Unit would compile work programs and budgrets,prepared by the technical divisions, the Administrative and Financial Unit, and the Training and Supervision Unit and submit them to the CEFADER director for review and approval. The Administrative and Financial Unit would cover budgeting and accounting of all project expenditures, monitor costs in each category and prepare consolidated budgets for all CEFADER/CADER activities, The Training and Supervision Unit:would adapt technical themes into easily understandable presentations and organize training and work schedules around these themes for all project staff. The CEFADER would furnish to the Association short progress reports, to be prepared every four months, on project implementation (Section 4.04(b)(iii), draft Development Credit Agreement). The CEFADER would submtit a project completion report not later than six months after the Closing Date (Section 4.04(e), draft Development Credit Agreement). - 17 -

52. At the regional level, CADER directors would report to the CEFADER director and supervise all CADER staff and organize work programs of extension staff. Specialists (veterinary specialists, home economists, land conservation agents, rodent control experts) would provide technical advice to general agricultural extension agents but would also work directly with farmers. All CADER staff would be in frequent contact with CEFADER technical staff during training sessions and for supervision. In order for all CEFADER/CADER staff to be fully integrated into the system, Government would prepare a harmonized salary structure for all staff to take effect by April 30, 1986 (Section 4.01(f)(ii), draft Development Credit Agreement). A project mid-term review would be carried out by Government, with assistance from IDA and IFAD, to assess the institutional, managerial and technical performance of the project (Section 4.04(d), draft Development Credit Agreement).

Proposed Procurement Methods (US$ '000)

Procurement Method Project Element ICB LCB Other NA Total

Training & Tech. Asst. 3,607 761 4,368 Vehicles, Lvst. & Equip. 723 305 1,028 Civil Works 835 835 PPF 520 520

Total 6,751

Operating Costs

Materials 673 673 Salaries, in-service training, 9&M 1,879 1,879

Total 2,552

Grand Total 9,303

Procurement

53. Because of the Comoros' geographical isolation and the small size of the civil works contracts for this project, foreign construction firms not already in the Comoros are unlikely to bid for works under the project. Therefore civil works contracts would be awarded on the basis of local competitive bidding, in accordance with current Government procedures which were reviewed by a Bank procurem.entmission in September 1982 and found to be acceptable. Foreign firms would be considered for supervision - 18 -

of works. Contracts for vehicles would be spread over a five-year period, grouping vehicles by year and awarding orders on the basis of ICB. Given limited maintenance capacity in the Comoros, tender documents must include adequate guarantees of service and spare parts. Materials and specialized equipment (improved livestock, laboratory and office equipment, etc.) would be grouped for limited intetrnational tendering or direct purchase where necessary. Draft tender documents for all contracts equal to or exceeding US$50,000 would be submitted to IDA for approval before invitations to bid were issued and full information on proposed contracts valued at US$10,000 to US$50,000 would be submitted to IDA for review prior to award of the contract (Section 3.10 and Schedule 3, draft Development Credit Agreement).

Disbursement

5X. Since a disbursemLent profile for the Comoros does not exist, disbursements for the agricultural sector in Eastern Africa (eight years on average) have been taken as a point of comparison and adjusted to reflect disbursement over six years based on project design and content. The proposed IDA credit of US$5.0 million and the IFAD loan of US$3.3 million would be disbursed against 100 percent of total expenditures for training, livestock and equipment, technical assistance, civil works, vehicles and materials; operating costs and in-service training would be disbursed on a decreasing percentage during the project period. Documentation required for disbursement would be certified statements of expenditure for all operating costs and for technical assistance, vehicles, livestock and equipment costing less than,US$10,000. Full documentation would be required for all civil works expenditures and for other investment exKpenditures costing more than US$10,000. The documentation for the statements of expenditure would be retained by the Borrower and made available for inspection by the Association during project supervision (Section 4.04(b), draft Development Credit Agreement). The credit Closing Date would be June 30, 1990.

Revolving Funds

55. Two revolving funds would be established in an institution acceptable to the Association under separate accounts. A special account, witth an initial contribution of US$140,000 by IDA and US$90,000 by IFAD, would finance project expenditures eligible for reimbursement from IDA and IF7AD, other than those for which IDA and IFAD would disburse directly (Section 3.03(a), draft Development Credit Agreement). IDA and IFAD would replenish the fund quarterly, upon receipt of withdrawal requests from the Government. A Government-financed counterpart account, with an initial deposit of US$20,000 equivalent by Government, would also be opened in the Treasury. This account would finance Government's share of local operating costs and would be replenished quarterly; this procedure would continue until project completion (Section 3.03(b), draft Development Credit Agreement). -- 19 -

56. A separate materials account for revenues from the sale of inputs, drugs and materials to farmers through the CADERs would also be opened in an institution acceptable to the Association and used to purchase materials (Section 3.04, draft Development Credit Agreement). Materials would be sold on a cash basis at prices which reflect cost plus an adequate margin and prices would be reviewed annually with IDA. Accounts of the fund would be prepared quarterly and subject to review by the Association. The level of this account would not fall below US$25,000 equivalent. The establishment of the special account, the counterpart account and the materials account and an initial deposit of US$20,000 by Government into the counterpart account would be conditions of IDA credit effectiveness (Section 7.01 (b)(c)(d), draft Development Credit Agreement).

Project Accounts, Audit and Reporting

57. Separate accounts for project expenditures would be maintained by the CEFADER and audits would be required for all accounts, including statements of expenditure, to be carried out annually by independent auditors acceptable to the Association in accordance with satisfactory auditing procedures. Audited reports would be submitted to the Association for review within three months following the end of each fiscal year (Section 5.01, draft Development Credit Agreement). Provision for an audit of CEFADER/CADER accounts has been made under the PPF and completion of the audit for fiscal years 1982 and 1983 would be a condition of credit effectiveness (Section 7.01(e), draft Development Credit Agreement).

Benefits and Risks

58. Through improved organization of the rural services institutions, the project would provide for a more systematic approach to extension,field trials and development of technical packages, which should lead to increased fooderop, livestock and fuelwood production and better forestry management. A considerable amount of the increased foodcrop and livestock production would be consumed by the rural population; this would have a beneficial impact, given the poor nutritional level of the rural population. Through reduction in the growth of food imports, there would be foreign exchange savings. An unquantifiable benefit would be the preservation of ecological balance and soil fertility. Finally, donor coordination would be improved by more effective use of resources through better planning, work programming and proper budgeting.

59. The main risks to project implementation and successful continuation of CEFADER/CADER activities are: (i) limited Comorian skilled manpower, for which the project would provide substantial training programs for national staff and ensure that a substantial portion of the technical assistants' work is devoted to in-service training; (ii) Government lack of funds for recurrent expenditures, for which the project would establish proper budgetary procedures and ensure a gradually increasing contribution by Government to CEFADER/CADER recurrent costs; and (iii) the limited technical packages available at present, for which the project would include applied research, variety trials and monitoring of results and links with international research organizations. - 20 -

PART V - LEGAL INSTRUMENTS AND AUTHORITY

60. The draft Development Credit Agreement between the Federal Islamic Republic of the Comoros and the Association and the Report of the Committee provided for in Article V, Section 1(d) of the Articles of Agreement of the Association are being distributed separately to the E:xecutive Directors. Special conditions of credit effectiveness are listed in Annex III.

61. I am satisfied that the proposed credit would comply with the Articles of Agreement of tlheAssociation.

PART VI - RECOMMENDATIONS

62. I recommend that the Executive Directors approve the proposed credit.

A. W. Clausen President

Attachments April 11, 1984 - 21 - ANNEX I

TABLE 3A Page 1 of 5

COHOROS - SOCIAL INDICATORS DATA SHEET COMOROS REFERENCE GROUPS (W.'EIGHTEDAVERAGES) /a MOST (MOST RECENT ESTIMATE) lb lb lb RECENT LOW INCOME MIDDLE INCOME 1960- 1970 ESTFMATHA AFRICA S. CF SA AFRIAFRI A S. OP SARA AREA (TROUSAND SQ. KM) TOTAL 2.2 2.2 2.2 AGRICULTURAL 7.9 1.1 1.1

GNP PER CAPITA (US$) 90.0 170.0 320.0 254.6 1147.9

ENERGYCONSUKPTION PER CAPITA (KILOGRAMS OF COAL EQUIVALENT) 22.0 44.0 57.0 79.8 724.2

POPULATIONAND VITAL STATISTICS POPULATION,MID-)YAR (THOUSANDS) 204.0 270.0 358.0 URBAN 'OPULATION (2 OF TOTAL) .. 14.1 20.8 19.5 28.5

POPULATION PROJECTIONS POPULATION IN YEAR 2000 (MILL) 0.6 STATIONARY POPULATION (MILL) 2.2 YEAR STATIONARY POP. REACHED 2140

POPULATION DENSITY PER SQ. KM. 94.0 124.4 159.9 29.5 56.5 PER SQ. KM. AGRI. LAND 226.7 257.1 327.4 94.i 131.8

POPULATION AGE STRUCTUJRE(7) 0-14 YRS 45.0 45.3 43.5 45.0 45.9 15-64 YRS 52.3 52.0 54.3 52.1 51.2 65 AND ABOVE 2.7 2.7 2.2 2.9 2.8

POPULATION GROWTHRATE (I) TOTAL 2.9lj 2.8/ 2.6/i 2.8 2.8 UIRBAN .. .. 6.1 6.2 5.3

CRUDE BIRTH RATE (PER THOUS) 48.2 46.9 47.2 47.9 47. 6 CRUDE DEATH RATE (PER THOUS) 21.5 19.9 17.5 19.2 15.2 GROSS REPRODUCTION RATE 3.2 3.1 3.1 3.2 3.2

FAMILY PLANNING ACCEPTORS, ANNUAL(THOUS) USERS (7 OF MARRIED WOMEN) 3.0/c

FOOD AND NUTRITION INDEX OF FOOD PROD. PER CAPITA (1969-71-100) . . 100.0 99.0 87.8 95.7

PER CAPITA SUPPLY OF CALORIES (% OF REQUIREMENTS) 99.0 96.0 102.0/d 88.0 97.1 PROTEINS (GRAMS PER DAY) 40.0 39.0 43.07W 51.2 56.0 OF WHICH ANIMAL AND PULSE 10.0 10.0 12.0oW,e 18.1 17.2

CHILD (AGES 1-4) DEATH RATE 28.5 21.5 16.2 25.7 23.6

HRALTH LIFE EXPECT. AT BIRTH (YEARS) 42.5 44.5 47.5 47.4 51.9 INFANT MORT. RATE (PER TROUS) 135.3 110.5 90.9 126.5 117.6

ACCESS TO SAFE WATER (2POP) TOTAL ...... 24.7 25.4 URBAN ...... 56.8 70.5 RlURAL ...... 18.3 12.3

ACCESS TO EXCRETA DISPOSAL (7 OF POPULATION) TOTAL ...... 28.1 URBAN ...... 65.7 RU24AL ...... 21.9

POPULATION PER PHYSICIAN 18550.0 14210.0 10230.0 27420.6 12181.6 POP. PER NURSING PERSON 3100.0|f 900.0 2750.0 3456.2 2292.0 POP. PER HOSPITAL BED TOTAL 500.0 480.0 440.0 1183.2 1075.4 URBAN ,, 110.0 , 380.6 402.3 RURAL .. 1140.0 .. 3177.5 3926.7

ADMISSIONS PER HOSPITAL BED .. 17.8

NOUSING AVERAGE SIZE OF HOUSEHOLD TOTAL .. .. URBAN RURAL .. ..

AVERAGE NO. OF PERSONS/ROOM TOTAL .. .. URBAN .. .. RURAL ......

ACCESS To ELECT. (7 OF DWELLINGS) TOTAL .. .. 20.O/,h. URBAN .. .. RURAL .. .. _------_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ _- -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ --_ _ _ _ _ -_ _ _ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - - 22 -

ANNEX I T A B L ` 3A Page 2 of 5

TOMOROS - SOCIAL -NDICATORS DATA SHEET COMOROS REFERENCE GROUJPS(WEIGHTED AVERAGES) /a MOST (MOST RECENT ESTIMATE) /b RECENT LOW INCOME MIDDLE INCOME

1960- 1 970- ESTIMATE- AFRICA S. OF SAHARA AFRICA S. OF SAHARA

EDUCATION ADJUSTED ENROLLMENTRATIOS PRIMARY: TOTAL 14.0 34.0 103.0 63.9 97. 2 VALAE 23.0 46.0 120.0 73.6 103.1 FEMALE 4.0 21.0 85.0 51.6 88.5

SECONDARY: TCTAL 1.0 3.7 25.0 12.5 17.2 MALE 2.0 5.1 33.0 16.7 23.5 FEMALE 0.2 2.0 17.0 8.1 14.2

VOCATIONAL(Z OF SECCODARY) . . 0.0 1.1 7.3 5.2

PUPIL-TEACHER RATIO PRIMARY 41 .0 42.0 46.0 46.4 42.9 SECONDARY 1.7.0 20.0 31.0 25.1 23.7

ADULT LITERACY RATF (Z) .. 58.4/i .. 36.5 37.1

CONSUKPION PASSENGER CARS/THOUSAND POP ...... 3.3 18.8 RADIC RECEIVERS/THOUSAND POP 2.5 88.9 109.5 45.3 97.8 TV RECEIVERS/THOUSAND POP ...... 2.2 18.6 NEWSPAPER ("DAILY GENERAL INTEREST-) CIRCULATION PER THOUSANDPOPULATION ...... 4.7 18.2 CINEMA ANNUALATTENDANCEICAPIT4 0.1 0.4 .. 1.0 0.6

LABOR FORCE TOTAL LABOR FORCE (THOUS) PO.0 99.0 128.C FLMALE (PERCENT) 36.6 35.7 34.9 34.5 36.1 AGRICULTURE (PERCENT) 70.0 67.0 64.0 76.9 56.8 INDUSTRY (PERCENT) i9.0 21.0 23.0 9.8 17.5

PARTICIPATION RATE (PERCENT) TOTAL 39.3 36.6 35.7 40.9 37.0 MALE 50.6 47.7 46.9 53.0 47.1 FERMALF 28.4 25.8 24.7 28.9 27.0

ECONOMIC DEPENDENCYRATIO 1.2 1.3 1.3 1.2 1.3

INCOMEDISTRIBUTION PERCETIT OF PRIVATE INCOME RECEIVED BY HEIGEST SC OF HOUSEHOLDS ...... HIGHEST 20% OF HOUSEHOLDS .. .. LOWEST 20% OF HOUSEHOLDS ...... LOWEST 40% OF HOUSEHIOLDS ......

POVERTYTARGET GROUPS ESTIMATED ABSOL'JTE POVERTY INCOME LEVEl, (USS PER CAPITA) URBAN ...... 165.9 534.2 R'JRAL ...... 87.4 255.9

ESTIMATED RELATIVE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN ...... 100.8 491.5 RURAL .. ., .. 64.6 188.1

ESTIMATED POP. BEL OW ABSOLUTE POVERTY INCOME.LEVEL (Z) URBAN .. .. . 39.5 RURAT ...... 69.0

NOT AVAILABLE NOT APPLICABLE N O T E S

/a The gtoup averages for each indicator are population-weighted arithmetic means. Coverage of countries among the indicators depends on availability of data and is not uniforn.

/b Unless otherwise noted, "Data for 1960" refer to any year between 1959 and 1961; Data for 1970 between 1969 and 1971; and data for Most Recent Estimate" between 1979 and 1981.

/c 1982; /d Present Bank estimates indicate lower ratio of supply of calories and proteins; /e 1977; If 1962; /g Percentage of population; /h 1976; /i 1966; Ij Due to immigration population growth rate is higher than rate of natural increase.

May 1983 - 23 - ANNEX I Page 3 of 5

DEFINITIONSf OF fOlIAL lINDICATORS

s olet rgthhdc.lhedoa e,-osch ls, o loft comprabl becus telae ao f cedrdee dfllloThndeocpldoeabydffrr-rcoorls ertai eoj- differe-e bet-eetcurt-e- doscibe order of naooe,Irdicote treodo, ard ccstefe

higher a-crge Inco..e cha the cocpgrpofte oor groap of the sahbjct coorcep asd (2) a coastry gr...p olti o-erobt oerefcer Itoops are(11 th soe sorti Afric.abcd Piddlbed hoo' i ho bc- ibca-o ofocogtca-lrr __astr leeo, for "al bit ..oe". 0 tocrtro -Io abre ''Toddle Oscose cci) oc -. ,to0-0 slOa coip -ce eoctyo thecosrisidc the .o...g.o are pcolef__ eighted .eteiscars for cccl efflo)-O the coe-ece, group dot cootion not tbe che irdiloototsdeyrds oc lIe aolalbifl fo of data aodho coto-for, g,op ha daa fota todic toy force Ihe cocerage of cctma_oo

Ppoat lo tPiacIn-Preit doolided hyb ce f cico AREA (thousand oqJ. _ pistashcoldfo eoa cofa "oorIt, p(tool Totl- oo safacraree -oPrisfg lord lare atd isl-od Wasters; (idb,

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ANNEXI Page 4 of 5

0CHHS - EXNHIC INDICATORS

GROSSNATI(4L P1lJa IN 1982 AMIALRATE OF G(L1H (%, constant prices)

US$ Mln. % 1979-82 1982

GNPat Mairet Prices 131.2 100.0 5.4 3.4 Gross Donestic Irrvestment 36.7 28 9.6 -1.0 Gross Domestic Saving 6.6 5 30.0 31.9 Current Accont Balance -42.0 -32 Exports of Goods, NFS 22.3 17 38.0 6.3 ITports of Goods, NFS 53.8 41 13.3 -6.0

CUIPUiIN 1982 Value added US$Mln. % Agriculture 54.3 4.4 Industry 18.6 14.2 Services 58.3 54.4 Total 131.2 100

Gentral Government LJS$ %of CGP 1982 1982

(Lirrent Receipt 14.4 11.0 0irrent Expenditures 40.0 30.5 Current Delicit -25.6 19.5 Capital Expqeliture 14.6 11.1 External Assistance 40.2 30.6

MtEY, CFE)rT and PRICS

1979 1980 1981 (Jurne)

(M:illion of CF outstanding end period)

Mty and (kjasi Mne 3548 4016 Bark Credit; to the Governrent 174 732 Bank Credit to Private Sector 2254 3234

(Percenta w or Irnex Numers)

Mbneyand (uasiMbney as % of GDP 16.6 16.3 GDP Price Leflator (1979 = 100) 100.0 110.8 Annial percentag changes in GDP Price Deflator 15.1 10.8 Bank Credit to the Government 102 320 Bank Credit to Private Sector 2 43.5

Note: All zonversioreto dollarsin thistable are at theaverage exchange rate prevailing during the period covered. not available not 3pplicable - 25 -

ANNEXI Page 5 of 5

CXM)RDS- TRADM PAYMENT AND CAPITAL FL0WS

BAIANCEOF PA)MFH1S MERCHANDISEEXFVRI'S (AVERAGE 1979-82)

1979 1980 1981 1982 e/ US$min. % (US$ Mllion) - Ylark-Ylang essences 1.6 13 Vanilla 6.0 48 Exports of Goods, NFS 19.9 14.1 18.3 20.9 Copra .4 3 Imports of Goods, NFS 31.8 34.3 50.8 48.5 Cloves 4.0 33 Resource Gap (deficit -) -11.9 -20.2 -32.5 -27.6 Otbercomodities .4 3 12.4 100.0 Interest Payments (net) .1 .1 .4 .4 OtherFactor Payments (net) .0 -. 2 -. 4 -. 4 Net Transfers 10.8 11.4 24.3 16.7 Balance on Current Accoumt -1.0 -8.9 -8.2 -10.9 MENAULDEBT, DE(XBMER 31, 1982

Net MLTBorrowing 10.3 22.1 15.2 8.7 Disbursements 10.3 22.1 17.2 12.5 A.rtization - - 2.0 3.8 Others 1, -11.7 -16.4 -1.1 7.5 PublicDebt, incl.guaranteed Changein Reserves -2.4 +3.2 -3.9 -5.3 Non - Guaranteed Private Debt increase) Total Outstanding & Disbursed 74.9

DEMTSERVICE RATIO FOR 1982 2/

Memoitem Public Debt, incl.guaranteed 3.0 Imports of Petroleam Products 1.9 6.2 5.9 5.7 Non - Guaranteed Private Debt Total outstanding & Disbursed 3.0

IBRD/IDALENDING, (December 31, 1983) (US$ Mlm.)

IBRD _

OuXtstanding& Disbursed . 9.45 RATEOF EXCHANGE 1979 1980 1981 1982 lUdisbursed . 18.15 0utstanding i1. Undisbursed . 27.60 US$1.00 = CF 212.72 211.30 271.72 328.62 CF 1 = US$ 0.0047 0.0047 0.0037 0.0030

e/ Estimates l/ Including errors andmissions 2/ Ratio of Debt Service Payments to Exports of Goods and Non-Factor Services not available not applicable - 26 -

STATUS OF BANK GROUP OPERATIONS IN THE COMOROS

A. St:atementof IDA Credits (as of December 31, 1983)

Credit: Number Year Borrower Purpose IDA Undisbursed --- US$ million ---

852-COM1I/ 1979 Comoros Highway I 5.0 Fully disbursed 1035-COM 1981 Comoros Agriculture 5.2 3.35 1188-COM 1982 Comoros Highway II 6.3 4.54 1195-COM 1982 Comoros Education 6.0 5.11 1378-COM 1983 Comoros DBC 2.3 2.30 1408-COM 1984 Comoros Health & Population 2.8 2.85

TOTAL 27.6 18.15 of which has been repaid - - TOTAL now outstanding 27.6 18.15

Amount sold - of which has been repaid -

TOTAL now held by IDA 2/ 27.6 _

TOTAL Undisbursed 18.15 18.15

B. Statement of IFC Investments (as of December 31, 1983)

none

1/ The IDA credit was complemented by an EEC Special Action Credit of US$0.7 million.

2/ Prior to exchange adjustments -27-

ANNEX III

COMOROS

RURAL SERVICES PROJECT

SUPPLEMENTARY PROJECT DATA SHEET

Section I: Timetable of Key Events

Time taken to prepare project 7 months Preparation mission November 1982 Appraisal mission June 1983 Negotiations March 1984 Planned date of effectiveness August 1984

Section II: Special Implementation Action

None

Section III: Conditions of Credit Effectiveness:

(a) Fulfillment of all conditions precedent to effectiveness under the IFAD loan (para. 46);

(b) Preparation and submission to IDA and IFAD of draft annual work programs for the (i) agronomy, (ii) livestock, (iii) farm forestry technical divisions; (iv) the Data Collection and Monitoring Unit; (v) the Training and Supervision Unit; and (vi) the Administrative and Financial Unit (paras 41(a)(b)(c)(e)(f) and 43);

(c) Completion of an audit for all CEFADER/CADER activities for fiscal years 1982 and 1983 (para 57);

(d) Opening of the special account in an institution acceptable to the Association (para 55);

(e) Opening of the counterpart account in the Treasury with an initial contribution of US$20,000 equivalent by Government (para 55);

(f) Opening of a materials account in an institution acceptable to the Association for deposit of payments received from farmers through the CADERs from the sale of inputs, drugs and materials (para 56).

403O44 4150

Mitsamiouli - COMOROS

t_ iChezani Ivembeni GRANDE COMORE

Hahaia It ®{ CAPITAL CITY .,_1 0 OTHER TOWNS EXISTING ROADS f / ~~Kou~mbani Kou'mbi - ROADS UNDER CONSTRUCTION MORONI PORTS

Iconi _ s 9Qi Bandamadiji + AIRPORTS

-Foumbouni Dembeni

0 20 40 60 KILOMETERS L I I I MILES I II -120 0 10 20 30 40 12°0

This map has been prepared by MU uSAM The World Banr's staff exclusively MUTSAMUDU W for the convenience of the MOHELI s lBambao readers and is exclusively for the .Hoani 4$ internal use of The World Bank 0 FOMBONI and the hntemationalFinance Miringoni o $~~~~~~~~~~~~~~~~~~l%%:~~~~~~~.~~~ ~Corporation. The denorminations Miringoni ,0 + ~i-. . Moya b'Remani used and the boundaries shown O-_ Wanani on this map do not imply, on the Nioumachoua ANJOUAN part of The World Bank and the ANJOUAN InternationalFinance Corporation, CANZONI OUENEFOUIS. any judgment on the legal status of any territory or any endorsement or acceptance of 430 such boundaries.

,/-*- International Boundaries k TANZANIA lA MAYOTTE N < S SEYCHELLES (Fr.) M'Zambor6, AA , ? COMOROS D

A ~~~~~~~~MAURITIUS Cign iY DZAOU~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~DZI I, Boueni60ue Bay XBande*an le1 Reunion Is. _130 * (~~~ ~ ~ ~ ~ ~ ~~FR.)0 INDIAN OCEAN 440 450