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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 11766-SL PROJECT REDESIGN AND IMPLEMENTATION REPORT REPUBLIC OF SIERRA LEONE Public Disclosure Authorized AGRICULTURE SECTOR SUPPORT PROJECT (CREDIT 1501-SL) MARCH 31, 1993 MAIN REPORT Public Disclosure Authorized AGRICULTURE OPERATIONS Public Disclosure Authorized WESTERN AFRICA DEPARTMENT This documenthas a restricteddistribution and may be used by recipientsonly in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EOUIVALENTS (October 1992) Currency Unit = Leone (Le) Le 1.00 = USSO.0019 USS 1.00 = Leones 520 SDR 1.00 = USS 0.71 uSS 1.00 = SDR 1.40687 WEIGHTS AND MEASURES Metric BritishfUS I kilogram (kg) = 2.21 pounds I metric ton( t) = 2,205 pounds I hectare (ha) = 2.47 acres I meter ( m) = 3.28 feet I kilometer (kIm) = 0.625 miles 27 kilograms = I bushel Other I bag of paddy rice = 50 kilogram I bushel of paddy rice = 60 pounds 1 "three-pence pan' 3 pounds I bushel 3 'three pence pans' I kerosene tin = 0.5 bushels FISCAL YEAR July I - June 30 FOR OFFICIALUSE ONLY ABBREVIATIONSAND ACRONYMS AAGP Annual Agricultural Growth Plan ACRE Adaptive Crop Research and Extension ADB African Development Bank ADP Agricultural Development Project Al Agricultural Instructor ASSP Agriculture Sector Support Project BSL Bank of Sierra Leone CA Chief Agriculturist CAPI Committee on Agriculture Producer Incentives CIF Cost, Insurance, Freight CRO Chief Regional Officer CSO Central Statistical Office CTC Chief Technical Coordinator CU Coordinating Comnittee DAF Department of Agriculture and Forestry DAFF Department of Agriculture, Forestry and Fisheries DFDEP Departrnent of Finance, Development and Economic Planning DFD Development Finance Department DFR Department of Feeder Roads DG Director General DOW Department of Works EEC European Economic Community EIADP Eastem Integrated Agricultural Development Project FAO Food and Agricultural Organization FC Financial Controller FD Forestry Department FOB Free on Board GOSL Govemment of Sierra Leone GTZ Gesellschaft fur Technische Zusammenarbeit (German Technical Cooperation) IADP Integrated Agricultural Development Project ICPC Integrated Crop-Processing Center IDA International Development Association IFAD Intemational Fund for Agricultural Development ILO International Labour Organization IMF Intemational Monetary Fund IPAM Institute for Public Administration Management LAWDD Land and Water Development Division MAF Ministry of Agriculture and Forestry MANR Ministry of Agriculture and Natural Resources MANR&F Ministry of Agriculture, Natural Resources and Forestry MESD Monitoring, Evaluation and Statistics Division MOW Ministry of Works MPP Model Production Village MTR Mid-Term Review NARCC National Agricultural Research Coordinating Council NARP National Agricultural Research Plan NDB National Development Bank NEC National Extension Coordinator NGO Non-GovenmmentalOrganization NIADP Northern Integrated Agricultural Development Project NPRC National Provisional Ruling Council NRC National Research Coordinator NUC/CTC Njala University CoUege/Certificate Training Colege OFAR On Farm Adaptive Research This documenit 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. ABBREVIATIONS AND ACRONYMS (contd.) PAO Principal Agricultural Officer PCR Project Completion Report RIC Reconstruction Import Credit RRRS Rokupr Rice Research Station SAO Senior Agricultural Officer SDR Special Drawing Right SLPMB Sierra Leone Produce Marketing Board SLRA Sierra Leone Roads Authority SMP Seed Multiplication Project SMS Subject Matter Specialist TFAP Tropical Forestry Action Plan UNDP United Nations Development Progran UNV United Nations Volunteer USAID United States Agency for International Development WFP World Food Program FOR OFFICIAL USE ONLY REPUBLIC OF SIERRA LEONE AGRICULTURE SECTOR SUPPORT PROJECT (CREDIT 1501-SL) PROJECT REDESIGN AND IMPLEMENTATION REPORT Table of Contents I. INTRODUCTION ....................................... 1 I. MACRO ECONOMIC SETTING . ............................... 2 III. THE AGRICULTURE SECTOR .................................. 4 A. Overview ....................................... 4 B. Sector Strategy and Performance . ........................... 7 C. Agricultural Potential .................................... 8 D. Constraints to Higher Output . ............................. 9 E. Donor Contribution .................................... 20 F. NGOs ....................................... 21 G. Bank Group Operations . ................................. 22 H. Short-Term Options .................................... 23 IV. THE REVISED PROJECT .................................... 24 A. Project Objectives ..................................... 24 B. Summary Description .................................... 25 C. Detailed Features ..................................... 26 D. Project Costs and Financing ............... ................ 31 E. Procurement ...................................... 33 F. Disbursement ...................................... 34 G. Project and Special Accounts .............. ................ 35 H. Audit and Reporting .................................... 35 I. Project Implementation .................................... 35 J. Technical Assistance, Studies and Training ...................... 44 This reportis basedon the finding of a joint World Bank/IFADreappraisl missioncomprising Ms. Kirnn G.B. Singb(Mirsion Leaderand Economist),Mr. ShifenawDemsie (HighuaysEngineer), Mr. K.N. Sreekantiah(Agriculuist) andMr. A Schiffman(IFAD consultant)tbat visitedSierna Leone in AprilUMay1991 and a minion by Ms. Singh in December1991 during wich agreementwas reached with the Govnment of Sierm Leoneon the new projectdesign. The Government'sagreement on the Amendmentsto the DevelopmentCredit Agreementwa obtainedby a mision comprisingMs. Singhand Mr. KG.. Awunyo (Lawyer)in )uy/August 1992. Mesr. JohnJoyce, SufwndaApSAI. Gotz Scbreiberand Surjit Sigb havereviewed the redesignof the project, Messr. Asif Faiz, Thampil Panlij and AnD Bblahi the new feederreads compont, and Mesrs. SakweBunyaui. Lewis Campbell,Tek Haile-Marism,Biwroop Rambocus and Shiv Sinrg bve commentedon othercomponents and terms of reference.Ms. OlindaVel reviewedte procurementarrugem and togeher with Mr. Sunil K. Bhattacbharyand Mr. R. Gopal;rishnanoffered useful sugestionw. Mr. GbOzaliRaheem and Ms. Marie LaoiseAb-Kee advied on the technicalaspects of the costtables and Ms. Azn Ahmedand Ms. Qarmel McKer assistedvith the presentationaspcs and screra support. Te reportha beencleared by the RegionalProcurement Advisor, the Environmet Depatmet nd the Disburmements Division. Mr. JohnJyoye and Mr. Edwin Lim, respectively,are tie managingDivision Cbief and DepartmentDirector repoible for ths operation. V. PROFITABILITY,ENVIRONMENTAL FACTORS, BENEFITS AND RISKS .... 46 A. Profitability ......................................... 46 B. EnvironmentalFactors .................................. 50 C. Benefits ............................................ 51 D. Risks .................................. 51 VI. AGREEMENTSREACHED ................................. 52 ANNEXES Annex A - Matrix of Policy and InstitutionalActions Annex B - Letter of Sector Policy Annex C - List of Input Stores, Feeder Roads, Rural Banksand Farmers' Associations Annex D - Methodologyfor Pricing Inputs Annex E - Crop-Processing Equipment - Capitalization Schedule and Sample Agreement Annex F - Implementation Timetable - Annual Annex G - Summary Implementation Schedule - Monthly Annex H - Terms of Reference Annex I - OrganizationChart for Project Implementation Annex J - Summary Cost Tables VOLUME1I Detailed Cost Tables SIERRALEONE AGRICULTURESECTOR SUPPORT PROJECT (CREDIT 1501-SL) 1. INTRODUCTION 1.1 Since the late 1970s, Sierra Leone has endured severe economichardship. During the five year suspensionin IDA disbursements,several attemptswere made to improve economic management. These attempts, however, proved to be futile because of the country's inabilityto achieve fiscal and monetarydiscipline. The subsequenteconomic deterioration has had serious consequencesfor per capita income and levels of nutrition. Over the eleven year period 1979-89, per capita income is reported to be have declined from US$250to US$240. In recent years, however, the economicenvironment has improved considerably. The Governmentof Sierra Leone (GOSL)has demonstratedserious commitmentto maintaininga market-determinedexchange rate and liberalized trade regime, and to fostering competitionin the marketingof rice, the primary staple, and coffee and cocoa, the main export crops. With macro economicdistortions greatly reduced, the policy framework is now more conduciveto economicefficiency and the country is better placed to resume growth led by private sector investmentand determinedby market forces. The prospectsfor economicrecovery are strong provided complementaryprogress is made in reducing sector distortions and strengtheningsector institutionsand infrastructure. Recovery may be slowed by security concerns in the eastern and southern regions along the border with Liberia and the continuedcaution displayed by the private sector in undertakingnew investment. 1.2 On April 15, 1992, Sierra Leone was restored to accrual status after almost five years of suspensionof disbursementsimposed on August 15,
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