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Appraisal Report AFRICAN DEVELOPMENT FUND MAU/PAAL/2000/01 Language: English Original: French APPRAISAL REPORT LIVESTOCK DEVELOPMENT AND RANGE MANAGEMENT ISLAMIC REPUBLIC OF MAURITANIA NB: This document contains errata or corrigenda (see Annexes) COUNTRY DEPARTMENT OCDN NORTH REGION SEPTEMBER 2000 SCCD : N.G. TABLE OF CONENTS Page PROJECT BRIEF, EXECUTIVE SUMMARY, PROJECT MATRIX, CURRENCY i-ix EQUIVALENTS, LIST OF ABBREVIATIONS, LIST OF TABLES, LIST OF ANNEXES, COMPARATIVE SOCIO-ECONOMIC INDICATORS 1. ORIGIN AND PROJECT BACKGROUND 1 2. THE AGRICULTURAL SECTOR 1 2.1 Main Features 1 2.2 Natural Resources and Products 2 2.3 Land Tenure System 2 2.4 Rural Poverty 2 3. THE LIVESTOCK SUB-SECTOR 3 3.1 Importance of the Sub-Sector 3 3.2 Livestock Systems 3 3.3 Institutions of Sub-sector 4 3.4 Sub-sector Constraints 6 3.5 Government Policy and Strategy 7 3.6 Donor Interventions 7 4. THE PROJECT 8 4.1 Project Design and Rationale 8 4.2 Project Impact Area and Beneficiaries 8 4.3 Strategic Context 9 4.4 Project Objective 9 4.5 Project Description 9 4.6 Production, Marketing and Prices 13 4.7 Environmental Impact 13 4.8 Project Costs 14 4.9 Sources of Finance 15 5. PROJECT IMPLEMENTATION 16 5.1 Executing Agency 16 5.2 Institutional Provisions 18 5.3 Implementation and Supervision Schedule 19 5.4 Provisions Relating to the Procurement of Goods and Services 19 5.5 Provisions Relating to Disbursement 21 5.6 Monitoring and Evaluation 21 5.7 Financial Statements and Audit 22 5.8 Aid Coordination 22 TABLE OF CONTENTS (cont’d) Page 6. PROJECT SUSTAINABILITY AND RISKS 22 6.1 Recurrent Costs 22 6.2 Project Sustainability 23 6.3 Major Risks and Attenuating Measures 23 7. PROJECT BENEFITS 24 7.1 Financial Analysis 24 7.2 Economic Analysis 24 7.3 Social Impact Analysis 25 7.4 Sensitivity Analysis 25 8. CONCLUSIONS AND RECOMMENDATIONS 26 8.1 Conclusions 26 8.2 Recommendations and Conditions for Loan Approval 26 This report was prepared by Messrs. A. Mahdi, Principal Financial Analyst (OCDN.2), Mission Leader, V. Jogoo, Principal Environmentalist (OESU), and two consultants (an agronomist and a livestock officer) following a mission to Mauritania from 19 June to 9 July. For further information on this project please contact them or Mr. J. Rushemeza, Acting Division Chief, OCDN.2 (Ext. 4199) and Mr. Bisi Ogunjobi, Director, OCDN (Ext. 4040). i 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: 25 July 2000 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 could be obtained from the Executing Agency or the Borrower. 1. COUNTRY : Mauritania 2. NAME OF PROJECT : Livestock Development and Range Management 3. LOCATION : Seven (7) wilayas (regions), comprising: the two Hodhs, Assaba, Brakna, Gorgol, Guidimaka and south west Trarza. 4. BORROWER : Islamic Republic of Mauritania. 5. EXECUTING AGENCY : Project Management Unit (PMU). 6. PROJECT DESCRIPTION : The project aims at improving the productivity of livestock in Mauritania and increasing the incomes of stockbreeders. The main project components are: (A) range protection and rehabilitation; (B) livestock development; (C) support to operating structures; (D) project management. 7. PROCUREMENT : goods, services and works will be procured in compliance with the ADF rules of procedure as follows: i) local competition: for stock watering (wells, boreholes, over-deepening), firebreak and cattle inoculation works; ii) competition based on a short list: for the recruitment of consultants, for studies, works supervision, the audit and midterm review. Given the relatively low amounts involved (less than UA 100 000) advertisements will be made at national and regional levels giving non-regional consultants the possibility to take part. Other Means of Procurement i) prudent shopping: for vehicles and motorbikes, equipment, small agricultural implements and computer equipment; ii ii) direct negotiation: for training, environmental follow-up and management of the credit programme; iii) goods for the credit programme will be procured in compliance with business practices considered acceptable by the ADF. General Information Notice on Procurement: the text of the general information notice on procurement (INP) will be adopted together with PMU and issued for publication in Development Business upon approval of the loan proposal by the Board of Directors. Review Procedures: the following documents will be submitted for review and approval by the Bank prior to publication: (i) notice with specific information on procurement; (ii) bidding documents or letters of invitation to consultants; (iii) evaluation reports of bids from enterprises or suppliers or proposals from consultants with recommendations on contracts awarded; (iv) draft contracts if those in the bidding documents have been modified. 8. TOTAL PROJECT COST : UA 9.30 million i. foreign exchange cost UA 5.30 million ii. local currency cost : UA 4.00 million 9. ADF LOAN : UA 5.00 million 10. OTHER SOURCES OF FINANCE: i. OPEP : UA 2.55 million ii. Beneficiaries : UA 1.00 million iii. Government : UA 1.75 million 11. DATE OF LOAN APPROVAL : November 2000 12. PROBABLE START-UP DATE AND DURATION : April 2001, for 5 years 13. CONSULTANCY SERVICES REQUIRED : Consultant expert in micro-finance (9 months) 14. ENVIRONMENTAL CATEGORY : The project comes under category I iii EXECUTIVE SUMMARY 1. PROJECT ORIGIN AND BACKGROUND This project originates from the Livestock Project II co-financed by AID of the World Bank, the ADF, the OPEC Fund, the National Development Fund and the Mauritanian Government between 1986 and 1998. Some of the objectives initially set out by this project were fully attained, especially the re-organisation of the rural world through the establishment of a network of pastoral cooperative associations (ACP). However, livestock development is still beset by shortcomings especially in the areas of stock watering and range management and requirements are still considerable. Accordingly, the Mauritanian Government sent an application to the Bank Group requesting funds for a project that targets specifically the two areas mentioned above. 2. PURPOSE OF THE LOAN The ADF loan of UA 5.00 million representing 54.5 % of total project cost will be used to finance 60.0% of the foreign exchange cost (UA 3.18 million) and 45.5% of the local currency cost (UA 1.82) million. 3. PROJECT OBJECTIVES The project will help meet the sectoral objectives of: (i) ensuring food security; (ii) reducing poverty; (iii) protecting and conserving natural resources and as such ensuring sustainable development. More specifically, the project aims at improving the productivity of livestock in Mauritania while increasing the incomes of stockbreeders. 4. BRIEF DESCRIPTION OF PROJECT ACHIEVEMENTS These components will enable the project attain its set objectives: i) range protection and management; ii) livestock development; iii) support to operating structures; and iv) project management. 5. PROJECT COST Total project cost is estimated at UA 9.30 million of which UA 5.30 million (57.0% of total cost) in foreign exchange and UA 4.00 million (43.0% of total cost) in local currency. 6. SOURCES OF FINANCE The project will be financed by the African Development Fund, OPEC, the Beneficiaries and Government. The ADF resources will finance the following components: range protection and rehabilitation; support to operating structures and project management. OPEC will contribute to funds for the livestock development component whereas the beneficiaries will help implement the range protection and rehabilitation, and livestock development components. The Government will help run the Project Management Unit. The ADF’s total contribution or 54.5% of total cost will cover 60.0% of the foreign exchange cost and 45.5% of the local currency cost. 7. PROJECT IMPLEMENTATION iv Project implementation is scheduled to last five years. The executing agency will be the Project Management Unit (PMU) under the supervision of the Livestock Directorate of the Ministry of Rural Development and the Environment (MDRE). This Unit will be run by a Coordinator assisted by an Administrative and Financial Officer and four national officers. The Coordinator will be in charge of project administration and management and will be required to coordinate, supervise and follow-up all project activities. The PMU will call upon MDRE’s specialised technical or other structures to implement some project components. 8. CONCLUSION AND RECOMMENDATIONS 8.1 This project is fully consistent with the Government’s agricultural development policy and will contribute to the development of livestock in Mauritania, improving its productivity and increasing the incomes of the cattle farmers. 8.2 In view of the objectives set by this project and the analyses summarised above, it is recommended that a loan of not more than UA 5.0 million from the ADF’s resources be granted to the Islamic Republic of Mauritania with the purpose of implementing the project as described in this appraisal report subject to the conditions stipulated in the loan agreement. v MAURITANIA LIVESTOCK DEVELOPMENT AND RANGE MANAGEMENT PROJECT M.C.E.P. Matrix Hierarchy of Objectives Objectively Verifiable Means of Verification Assumptions/ (HO) Indicators (MDV) Risks (OVI) (a) Sector Objective: the Increase in animal production (i) Results of follow-up project will contribute to the (meat, milk and other dairy evaluation throughout project following sector objectives: (i) products) as indicated below. duration and impact ensure food security; (ii) . assessments conducted under reduce poverty, (iii) protect the project; and conserve natural (ii) statistics report of MDRE resources. and Ministry of Economic Affairs. (b) Project Objectives: Assumptions (i) increase productivity of the (i) At the end of the project, (i) supervision reports.
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