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World Bank Document .M * 7 1/b.2 - & Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Pi,,por t No. :11 147- Ct-hA Type: (SAfR) - I t I- AGRICULTURfAL SUPPf10 Sf-RVIE t-'j I ReportNo. 11147C& Aiuthor: 12LI. U-"'lCARATNAM STAFF APPRAISAL REPORT CHNA Public Disclosure Authorized AGRICULTURALSUPPORT SERVICES PROJECT JANUARY22, 1993 Public Disclosure Authorized Agriculture Operations Division Public Disclosure Authorized Country Department II East Asia and Pacific Regional Office This documenthas a restdded distibution and may be used by recipiens ony in the perfonranc of tbeir official duties. Its contents may not otewise be disclosed whout World Bank authorization. CURRENCY EQUIVALENTS (As of June 1992) Currency Unit Yuan (Y) $1.00 = Y 5.45 Y 1.00 = $0.183 FISCAL YEAR January 1 - December31 WEIGHTS AND MEASURES 1 meter (m) = 3.28 feet (ft) 1 kilometer(ICm) = 0.62 miles 1 hectare (ha) = 15 mu 1 ton (t) = 1,000 kg = 2,205 pounds 1 kilogram (kg) = 2.2 pounds - 2jin ACRONYMSAND ABBREVIATIONS ATEC AgrotechnicalExtension Center BAU Beijing AgriculturalUniversity CAAS Chinese Academy of AgriculturalSciences CABTS China AgriculturalBroadcasting and TelevisionSchool CAS Chinese Academyof Sciences CATEC County Agro-TechnicalExtension Center CNCQSTF China NationalCenter for QualitySupervision and Test of Feed CNBTS China NationalBureau for TechnicalSupervision CNSC China NationalSeed Corporation DAH Departmentof AnimalHusbandry DEER Departmentof ExternalEconomic Relations DOA Departmentof Agriculture LAE Institute of AgriculturalEconomics (CAAS) ICAMA Institute for Control of Agrochemicals 1PM Integrated Pest Management IRRI InternationalRice ResearchInstitute MATEC MunicipalAgro-Technical Extension Center NAHVSC NationalAnimal Husbandryand Veterinary Service Center NAPQS NationalAnimal and Plant QuarantineService NATEC Nat:>nal Agro-TechnicalExtension Center NBIC National Breed ImprovementCenter NCIVBP National Control Institute of VeterinaryBioproducts and Pharmaceuticals NQCCVBP National QualityControl Center for Veterinary Bioproductsand Pharmaceuticals NSTS National Seed TestingStation PATEC ProvincialAgro-Technical Extension Center PMO Project ManagementOffice SMS SubjectMatter Specialist SPF SpecificPathogen Free STPAC Soil Testing and Plant AnalysisCenter TAC Technical AdvisoryCommittee TATES TownshipAgrotechnical Extension Station FOR OMCL4 USE ONLY CHINA AGRICULTURALSUPPORT SERVICES PROJECT CREDrr AN! PROJECTSUMDARY Borrower: People'sRepublic of China Benefciaries: Ministryof Agriculture(MOA), and Provinces/Municipalities ofBeijing, GuangxP,Hebei, Heilon0iang, Henan, Hunan, Jiangsu, Jilin, Liaoning, Shaaxi, Shahi, andSichuan A _ounU SDR83.7 million ($115 million equivalent) Ternm: Standard,with 35 yearsmatrity Objectivesand Description: The projectwould assist the Governmentin increasingagricultural productionand farmers' incomesby strengtheninginsttutions that providesupport services to farmers. The projectwould: (i) strengthen aiculture, aimal husbandry and animal and plant quarantine managementcapability thugh improved information, computer networkingand monitorng and evaluationsystems; (ii) reorganizecrop and livestockextension systems from nationalto countylevel; Ciii) Improveextion servicesby providingacilities, upgrading skills of tecnical staffand improvint deir recommeodationsthrou farm-level demod-iven research programs; (lv) reorne seed centers to separatetheir productionfrom certficationand reguladonroles and promoteseed lization; (v)strengthen veterinary and preventive animalhealth services, establisha well-coordinatednational breed improvementprogram, and tightenpharmaceutical, agrochemical and feedquality control; and (vI) promote cost recovery for servicesprovided to farmers.The project would also strengthen project management at all levelsby providingfacilities, traing andtechnical assistance. Beneits and Risks: At the nationallevel, the projectwould benefit a sizeableproportion of the country's200 million farmers through improved policy formulation and strongernational agricultural instiuons. At the provincialand lowerlevels, approximatly 5.6 million farm households would directly benefitfrom the projectthrough: strnger extensioncenters with trained staff who are equippedwith fcies and able to respondto farmers' demand;armer assains whichwould provide fatmers with direct participaion;inputs and markes; and commercializedservices which wouldprovide quality mpive servicesin the areasof inputsupply, seedsand animal health. At full development, the adopteeswould double or tripletheir incomes. Ihe projectERRs range from24 percentto 63 percentdepending on the technologyadoption scenarios. The project wouldalso alleviatepoverty in eightof China'spoorest counties and IThisdocument has a restricted distributionand maybe usedby recipientsonly in the performance of theiroffilcial duties. Its contentsmay not otherwisebe disclosedwithout World Bank authorizaton. - ii - create substantWdemand for labor in farming, hliog, distibuting and procing the incremental output of the project, including more job opportntes fDrwomen. The project fa no unusual tecical risk. Organizional risks would be minimizedtirough intensivetrinig and strengthened project management. Changes in organizational, management,and regulatoryapproaches are expectedto serve as models for national replicationand may provide the most Importantlong-term benefits of the project. Estimated Costs: LQcal Foreign iTotl - - - ($ million) Cropslextension 39.8 43.5 83.3 Seeds 12.1 12.0 24.1 Livestock 36.7 38.1 74.8 Quality control 3.3 3.6 6.9 Quarantine 4.0 6.0 10.0 Base cost 95. 103.2 199.1 Physical contingencies 7.8 8.4 16.2 Ptice contingencies 12.0 11.0 23.0 Total roectt La I1. I22 238. Reservedprocurement 4.3 13.2 17.5 glal (excludingreseved procurement) J1.4 109.4 220.8 Fbmdtng Plan: Central, provincial,pre- fecture& countygovts. 110.1 13.2 123.3 IDA 5.6 109.4 115.0 Fadin4d Disbursemet: I1DAIY 1 I995 199 1997 12 1992 20 2001 ($ million) Annual 15.0 20.0 22.0 25.0 16.0 12.0 4.0 1.0 Cumulative 15.0 35.0 57.0 82.0 98- 110.0 114.0 115.0 Economic Rate of Return: 24-63 percent /A Project is exempt from taxes and duties. -I II CONTENTS 1 Badguo ........................................udd 1 A. InftrodctionA. ha&Xon............................................1 ...... 1 B. The AgiculuaSetoSector...................... ....... 1 C. Jhe LivestockSubsector ............................. 2 D. AgriuludSupportrSelS esiporsl. Chia ................... 3 E. Sec lObjecives and Bank G rooupLdltg................8 F. ProjectFormulation and Rana e ........................9 .2 I1,eProjeAr ................................... 11 A. Gme"M ....................................... 1 B. .............. 11 B. on. o ...........ci....o.. 11 C. SupportS ices . ................................ 12 D. Desip Considerations ..............................15 3 heI .rojec ........................................17 A. G3eral .......................................17 B. Projec Descion ................................ 17 C. DetailedlFeatUre........ ......... 19 D. S"tasofPreparain ....... <33 D. Stmsof PlmeoaS^do ....................................... 33 E. ptSchedule ...... 33 F. CostEstimates.............................. .. 33 0. Fimacing . ......................................35 H. Prouement ... ................................ 35 . m................................... 37 1. Accountsand Audits................... 37 K. E m enta pac ....... .......................38 hi rport i based on an FAOICPpreparation repo (July 1991)and the findin of a preappraisdmission in October/November1991, ed by W.P. TingCrask Manger IDA)and comprisingMs. R. Jaisaud, Mess. A.C. Brandenburg,R. Vick, L deAlwis, 0. Smith (FAO/CP),C.W. Chen,T. Sitwff, and B. Swaon (Consultants);and an appra mssion in Jue 12, comprisingmany of the samestaff and Ms. R. Jaaard, Messrs.A.C.Brndebug, C. Mguire, W.P. TiS (IDA),P. L@avy, and S.N.H. Putt (Constans). Peerreviewer were Messrs.C. de Haan,A. Pitd rd, LP. Srlatava (AGRPS),nd R. McGoh (ASTPH).The Diiso Chief s Mr. J. Goldbergand the D meDector is Mr. Shahd JavedBur. -lv- 4 PRo3eOje anzon and _a.a.m.e . ..... .... 39 A. PRojectOqrnkzat..... ....... ..... ............. 39 B. FinancialM i"aemn ..............................40 C. Spevison, Monioing, Evaluationand Rqoting ............ 40 5 ProduCdonandMarlkeb . ............................. 42 A. Prduction ........ 42 B. Ivarkets ....................................... 46 C. Prices ...... 46 6 Benfts, JustWtaton andRisks ......................... 48 A. Benefitsand Justfication ............................ 48 B. Employmnn and Incomes....... ..................... 49 C. Womenin velopmet............................... 49 D. CostRecovery................................... SO E. ImpactonGovemmentBudget.......................... 50 F. Financialand EconomicAnalyss . 51 G. Riss ......................................... 52 7 AgreemenitReadied and ................... 53 1. BasicData on ProjectProvic e....5....................... S 2. CostEstlmates . .. 71 PoSjectCost Summnar y.... 71 SummaryAccunts Cost Summary..... 72 cost Suinniaryby onmponet........ 74 ProjectConiponnt byYea .......................... 75 EstmatedSchecedeofDisbr.s.. t... .. 91 3. Traizg and T'eical Assistac . ... 92 4. Reeach,Educato Extension,FamerLinkages............ .... 112 5. Farmer Assodaos and ViW Economic Cooperatives .......................................116 6. ManagementInfinrmaton System . ........................121 7. Key Monitoring ndicars ................................
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