AFRICAN DEVELOPMENT FUND
ZZZ/PARN/2000/01/REV Language: ENGLISH Original: FRENCH
APPRAISAL RAPPORT
NATURAL RESOURCE DEVELOPMENT AND MANAGEMENT PROJECT
ORGANIZATION FOR THE DEVELOPMENT OF THE GAMBIA RIVER BASIN
(O M V G)
COUNTRY DEPARTMENT OCDW WEST REGION MARCH 2001 AFRICAN DEVELOPMENT FUND
01 B.P. 1387 ABIDJAN 01 Tel.: (225) 20 20 44 44 PROJECT BRIEF Date : February 2001 The information given hereunder is intended to provide some guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods and services for projects approved by the Board of Directors of the Bank Group. More detailed information and guidance should be obtained from the Executing Agency of the Borrower. 1. COUNTRY : The Gambia, Guinea, Guinea Bissau and Senegal - Multinational: Organization for the Development of The Gambia River Basin (OMVG) 2. PROJECT TITLE : Natural Resource Development and Management Project
3. PROJECT LOCATION : The borders of the four States: The Gambia, Guinea, Guinea Bissau and Senegal.
4. BORROWERS : Republics of : The Gambia, Guinea, Guinea Bissau and Senegal
5. EXECUTING AGENCY : Project Unit of the OMVG Executive Secretariat, BP 2353, Dakar, Senegal. Tel. (221) 822 31 59. Fax (221) 822 59 26. E-Mail: [email protected].
6. PROJECT DESCRIPTION
The main components of the project are :
A. Improvement of Productions; B. Improvement of the Road Infrastructure; C. Back-Up Measures; D. Studies and Technical Assistance E. Project Management
7. PROCUREMENT OF GOODS AND SERVICES :
Procedures for the procurement of goods and services are summarized below: i) International competitive bidding for the sinking of wells and boreholes, the procurement of means of transport, farming implements, computer equipment and office furniture; ii) Local competition for the provision of means of transport , building rehabilitation and construction works and the implementation of irrigation works; iii) Short list for the recruitment of consultants, auditing firms and NGOs.
8. TOTAL COST : UA 19.36 million. - Foreign Exchange : UA 11.04 million. - Local Currency : UA 8.32 million.
9. ADF LOAN : UA 11.69 million.
10. OTHER SOURCES OF FINANCE
- IDB : UA 5.66 million - Government : UA 2.01 million.
11. DATE OF APPROVAL : April 2000
12. PROBABLE START-UP DATE AND DURATION OF PROJECT : June 2000 / 6 years.
13. CONSULTANCY SERVICES REQUIRED : Technical Assistance: Adviser to the Project Manager for works design and inspection, monitoring- evaluation, mid-term review, final evaluation, training, technical and financial audit and various short- term consultancies.
14. ENVIRONMENTAL CATEGORIZATION : II. TABLE OF CONTENTS
Pages
PROJECT BRIEF, EXECUTIVE SUMMARY, MATRIX...... i-iv
1. PROJECT ORIGIN AND BACKGROUND...... 1
2. THE AGRICULTURAL SECTOR...... 2
2.1 Characteristics, Constraints and Prospects ...... 2 2.2 Land Tenure Syatem...... 5 2.3. Performances of Similar Projects...... 6 2.4 Operations of the Other Donor Agencies...... 6 2.5 Bank Group Strategy...... 7
3. THE SUB-SECTORS...... 7
3.1 Main Characteristics...... 7 3.2 Institutions and Organizations Concerned...... 8 3.3 Organization for the Development of The Gambia River Basin (OMVG)...... 9
4. THE PROJECT...... 10
4.1 Design and Formulation...... 10 4.2 Project Area ...... 10 4.3 Strategic Context ...... 13 4.4 Objectives ...... 13 4.5 Project Description...... 13 4.6 Production, Market and Prices ...... 21 4.7 Environmental Impact ...... 21 4.8 Impact on Women ...... 22 4.9 Impact on Poverty Reduction …………… …………………… 23 4.10 Project Cost...... 23 4.11 Sources of Finance ...... 24
5. PROJECT IMPLEMENTATION ...... 27
5.1 Executing Agency...... 27 5.2 Institutional Measures ...... 27 5.3 Implementation and Supervision Schedule ...... 28 5.4 Provisions Relating to the Procurement of Goods and Services...... 30 5.5 Provisions Relating to Disbursement...... 32 5.6 Monitoring-Evaluation...... 32 5.7 Financial Reports and Audit...... 33 5.8 Coordination with the Other Donor Agencies...... 33 TABLE OF CONTENTS (Cont’d)
6. SUSTAINABILITY AND PROJECT RISKS...... 34
6.1 Recurrent Costs ...... 34 6.2 Project Sustainability...... 34 6.3 Main Risks and Mitigation Measures ...... 35
7. PROJECT BENEFITS...... 35
7.1 Financial Analysis ...... 35 7.2 Economic Analysis...... 35 7.3 Analysis of the Social Impact...... 36 7.4 Sensitivity Analysis ...... 37
8. CONCLUSIONS AND RECOMMENDATIONS...... 37
8.1 Conclusion...... 37 8.2 Recommendations and Lending Conditions...... 37
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The first appraisal report was prepared in May 1997 by Messrs. E. DOTE, Chief Agricultural Economist, Head of Mission, M.A. KANE, Irrigation Engineer, Idrissa SAMBA, Environmentalist in OESU, A. ZEJLY, Economist and a Zootechnical consultant. The project was re-appraised in June 1999. The appraisal report was updated by Messrs. M.A. KANE , M. TRAORE, Environmentalist and N. KACEM, Agricultural Economist. For additional information, please contact.Mr. E. DOTE, Ag. Division Manager, OCDW.4 (Ext. 4110). ------CURRENCY EQUIVALENTS
Currency Unit = CFA Franc UA 1 = CFAF 916.057 UA 1 = GMD 17.9859 UA 1 = GNF 2,398.76 Exchange Rate as at 31 January 2001
WEIGHTS AND MEASURES Metric System
FISCAL YEAR 1st January to 31 December
ACRONYMS AND ABBREVIATIONS
ADB : African Development Bank ADF : African Development Fund CFD : Caisse française de développement (French Technical Assistance) FAO : Food and Agriculture Organization GMD : Gambian Dalasi GNF : Guinean Franc IDB : Islamic Development Bank OMVG : Organisation for the Development of The Gambia River Basin ONG : Non Governemental Organization PAGT : Land Development anf Management Programmes PCU : Project Coordination Unit PMIA : Project for the Modernization and Intensification of Agriculture SME : Small and Medium-Size Enterprises SMI : Small and Medium-Size Industries TAF : Technical Assistance Fund
LIST OF ANNEXES Number of Pages
ANNEX 1 : Map of the Project Location ...... 1
ANNEX 2 : Cost Summary by Component and by Country...... 2
ANNEX 3 : Organization Chart of the Project...... 1 i
EXECUTIVE SUMMARY
1. ORIGIN AND BACKGROUND OF THE PROJECT
Regional integration is a prerequisite for the optimal development of the resources of the catchment areas, widening of the markets and economic development. The creation of OMVG falls within this context. The objective of the project is to facilitate the joint development of the shared natural resources as well as the management and sustainable tapping of such resources. Given the cross-border continuity of ecosystems, the project adopts a global approach that requires greater responsibility at the sub-regional level in order to capitalize on the experience gathered in the resolution of similar problems in the different countries. The solutions found on one side of the border could be transferred to the other side.
The development of trade and improvement of productivity require the implementation of concrete actions to consolidate the economic development base through the creation of rural infrastructure and enhanced natural resource management, which are vital for setting up conditions conducive to sustainable and lasting development. By facilitating the exchange of experience and trade between the countries, the project encourages cooperation between the countries in the area of natural resource management and helps to streamline the national policies and regulations relating to the management of the ecosystems of the OMVG sub-region. It is perfectly consistent with the operations strategy of the Bank and the member countries with respect to the promotion of cooperation and regional integration through sustainable natural resource management.
2. PURPOSE OF THE LOAN
The loan will cover 61.96% of the foreign exchange costs and 58.27 % of the local currency costs, i.e. 60.38% of the total project cost.
3. PROJECT OBJECTIVE
The sectoral objective of the project is to reduce poverty and sustainably improve the living conditions of the populations in the project area. The project objective per se is to increase agro-forestry and pastoral output, rationalize tapping of the natural resources and improve social infrastructure in the project area.
4. PROJECT COST
The updated total of the project cost is estimated at CFAF 17,738.79 million, i.e. UA 19.36 million, net of tax and custom duties. The breakdown of this cost is the equivalent of CFAF 10,122.72 million in foreign exchange, i.e. UA 11.04 million and CFAF 7,616.07 million in local currencies, i.e. UA 8.32 million.
5 SOURCES OF FINANCE
The project will be jointly financed by the ADF, IDB and the OMVG member countries. The ADF will cover 60.38% of the total cost of the project, i.e. UA 11.69 million, including UA 6.84 million in foreign exchange and UA 4.85 million in local currency. The ADF’s contribution to the local currency costs (25.04% of the project cost) is justified by the poverty reduction objective assigned to the project and the high local currency costs (42.97%). The ii contribution of the IDB to project financing stands at CFAF 5,189.40 million, i.e. UA 5.66 million. This amount will finance the construction of road infrastructure and rural water supply systems. The countries will contribute CFAF 1,834.66 million, i.e. 2.01 million, broken down as follows: The Gambia, CFAF 390.89 million i.e. UA 430.000; Guinea, CFAF 517.4 million, i.e. UA 560,000; Guinea Bissau, CFAF 558.03 million, i.e. UA 610,000 UC; and Senegal, CFAF 368.34 million, i.e. UA 410,000. This will help to finance the construction of the project headquarters, the salaries of the local advisers and 42.86% of the overhead costs as well as the miscellaneous operating costs. The beneficiaries of the project will provide labour for the irrigation schemes and will finance the purchase of draft cattle.
6. PROJECT IMPLEMENTATION
The Executive Secretariat of the OMVG will be the project executing agency and it will delegate the actual implementation of the project to a Project Coordination Unit. The project will last six (6) years (January 2002/December 2007). Its activities will start in January 2002, after full installation of the Project Coordination Unit and commencement of the engineering designs as well as the sinking of the wells and boreholes.
7. CONCLUSIONS AND RECOMMENDATIONS The Natural Resources Development and Management Project combines complementary approaches. Located along the borders of the member countries, it will enhance regional integration by strengthening trade and concerted natural resource management in The Gambia River basin. At the local level, the project will promote the rural areas. The participatory approach to the management of local lands will enable the populations to take ownership of the management of their environment and to undertake sustainable production therein. The beneficiaries will manage their own development and with the support of the project, they will acquire the skills required to ensure sustainability of the achievements after completion of the project. From the socio-economic standpoint, the project will have a considerable impact. The project will further enhance integration of the populations living along the borders by creating strong economic ties among them. It will help to reduce poverty within the project area, improve the income and health of the populations and raise their level of literacy, while protecting ecosystems of the project area. In light of the foregoing, it is recommended that a loan not exceeding UA 11.69 million be granted to The Gambia, Guinea, Guinea-Bissau and Senegal and broken down as follows: The Gambia - UA 2.03 million; Guinea – UA 3.50 million; Guinea-Bissau - UA 3.26 million; and Senegal – UA 2.90 million, subject to fulfilment of the special conditions stipulated in the draft negotiated agreement. iii
OMVG NATURAL RESOURCES DEVELOPMENT AND MANAGEMENT PROJECT
PROJECT MATRIX
Description Verifiable Indicators Means of Verification Major Assumptions Sectoral Objective 1. Reduce poverty and sustainably 1.1 Net operating incomes increased 1.1 Statistics on trade between improve the living conditions of the by at least 40% on project OMVG member countries. Project populations in the project impact completion. Inter-state trade in monitoring-evaluation statistics and area. agricultural products has increased. report and general statistics on member States. Grain available per person rose by 20 Operating accounts of the producers. kg on average by the end of the Surveys and campaign monitoring project, drinking water consumption reports. rose to 25l/d/inh, and infant and maternal mortality rate declined by 10% 1.2 Land development and 1.2 The method of management and management plan. utilization of rural environment and natural resources is mastered by the populations concerned. Project Objective 1. Increase in agro-forest and animal 1.1 More efficient level of natural 1.1 Monitoring–evaluation and 1.1 Governments take the measures production, rationalized natural resource development and environmental monitoring required to simplify the resource development and improved conservation. report as well as mid-term and administrative procedures at the infrastructure and social services. final reports. borders and to promote trade between member countries. 1.2 At project completion, additional 1.2 Campaign report. 1.2 The people actually approve of production of: project methodology and take charge 21,000 tons of grains, of their own affairs. 5,800 tons of groundnuts and 3,800 tons of cotton seed 1.3 Additional production of 655,000 1.3 Campaign reports and 1.3 Greater consultation between litres of milk. Herds increased by monitoring–evaluation surveys. member States and the populations 1,250 heads of cattle, 4,760 sheep – ensured. goats and 121,000 fowls. 1.4 Increased access of the 1.4 Monitoring–evaluation surveys 1.4 Remunerative prices for the agro- populations to drinking water, health and reports. forest and animal products services, literacy and functional infrastructure which are regularly maintained. Output 1. Enhanced farmer skills. 1.1 By project completion, 7,010 1.1 Campaign reports. farms benefitted from the project including 3,100 farms which were equipped. 1.2 Seed-multiplication associations set up and are operational. 2. Developed plains and marshlands. 2.1 4,540 ha of plains and 2.1 End of works and campaign marshlands developed and used for reports. rice growing and market gardening. Average increase of 500 kg/ha in cereal production 3. Functional breeders’ associations: 3.1 5,170 breeders benefitted from 3.1 Campaign reports. establishment of manure barns and the project and 130 breeders’ animal fattening parks. associations established. Increased milk production from 0.6 l to 0.85 l/cow and per day. Cattle production rate rose from12 to 14% 3.2 120 herds and 8 livestock parks established and are operational. 4. Forests developed. 4.1 By project completion, 16,000 ha 4.1 Forest development and of forests are developed and management plan. managed. iv
Description Verifiable Indicators Means of Verification Major Assumptions 4.2 Lands of 165 villages affected by 4.2 Land development and 4.2 Security of village lands ensured. the project. management plan and monitoring- Forest management entrusted to evaluation reports. village communities 5. Increased water supply to the 5.1 Water supply ratio increased 5.1 Reports on the location of populations and animals from 10 to 25 l/d/inhabitant irrigation sites and works. Water supply surveys and monitoring. 5.2 105 watering points rehabilitated; 5.2 End of works report. 85 watering points, 50 ponds, 37 access ramps and 85 stock watering points established. 6. Project area opened up. 6.1 Ferry on the Koliba/Corubal 6.1 End of Works report. River and 90 km of feeder roads rehabilitated, 57 km of feeder roads constructed. 7. Women’s activities revived. 7.1 80 functional women’s 7.1 Project monitoring and associative movements established supervision report. 7.2 At least 8,000 women trained in 7.2 Progress reports management , infant and family health 8. Management capacity of 8.1 1 Regional adviser, 14 managers 8.1 Training reports producers improved. and 36 local advisers trained in land the management approach. 8.2 All the project partners (12,000) 8.2 Socio-economic surveys. are trained in the project activities. 9. Health conditions of the people 9.1 125 family health assistants and 9.1 Progress report and medical improved. 34 traditional healers trained in statistics. community health care. 10. Appropriate credit system 10.1 Savings and mutual funds set 1.1 Monitoring and supervision established in the project area. up and are operational in each reports country. Project activities 1. Agricultural equipment and In Million UA Progress and supervision reports. Project activities are properly transport contracts performed. Works 8.96 coordinated at the regional and local Materials + equipment 2.75 levels 2. Memorandum of understanding Operation 0.76 Project files with agricultural research centres Personnel 1.16 implemented. Consultants 2.03 3. Contracts relating to the Credit 0.30 Monitoring-evaluation and audit construction of watering points Training 0.59 reports. signed and performed. Contingencies 2.81 4. Contracts for the improvement of Total 19.36 road infrastructure performed. 5. Mobilization of beneficiaries to carry out irrigation development works. 6. PAGT and memorandum of understanding for land management concluded and implemented. 7. Performance of services within time limits (detailed preliminary designs of the audit, training and literacy activities prepared). 8. Project implementation unit has been set up and is operational. 1. PROJECT ORIGIN AND BACKGROUND
1.1 The member countries of the Organization for the Development of The Gambia River Basin (OMVG) cover an area of nearly 500.000 km2 and have a population of about 20 million inhabitants. This regional organization, which brings together The Gambia, Guinea, Guinea-Bissau and Senegal, is aimed at enhanced socio-economic integration of its member States through the development of the resources of the rivers Gambia, Kayanga/Geba and Koliba/Corubal. The catchment areas of these rivers cut across the borders. Regional integration is therefore a prerequisite for the optimal development of the resources of the catchment areas, extension of the markets and economic development. The creation of OMVG is consonant with those objectives.
1.2 Considering that agriculture is the mainstay of the economy of the OMVG member countries, the integrated development and management of the three catchment areas, is a priority for their Governments. Accordingly, the African Development Bank Group has financed several OMVG operations, for a total amount of UA 6.02 million, and these operations are: the Study of the Master Plan for the River Basins; studies on the bridge over River Gambia; and the integration of electricity generation and transmission investments. The overriding objective of the master plan for the integrated development and management of the river basins of the sub-region is to give impetus to the agricultural sector with a view to attaining food security through a diversification of cereal production, the promotion of exports through private initiative, natural resource protection through the introduction of intensive farming and mixed farming. The master plan was prepared in accordance with a “catchment area” approach, which seeks to integrate the OMVG members considering that they share the same network of waterways.
1.3 After reviewing the reference situation and examining the prospects and constraints, the OMVG master plan defined programmes for the 2015 period with a view to food security and in order to meet basic needs in the areas of health, drinking water supply, education, credit and transport. These programmes focus on two points: natural resource management operations (agriculture, livestock and forestry) and back-up measures for agro-sylvo-pastoral production in the drive to improve living conditions in the rural areas. Subsequent to the proposals of the master plan, the feasibility study of a priority project (Natural Resources Management and Development Project) was conducted in 1996. Member countries then expressed their desire for continued Bank support to be epitomized by financing of the said project. The project was initially appraised in May 1997 and reappraised in June 1999. This report is an update of the appraisal report following a mission to OMVG in January 2001.
1.4 The selected project is located along the borders of the member States, a crossroads for trade, and will serve as a link between the populations. The project impact area shows socio-cultural and agro-ecological unity. Population density within the area is average and there are several small villages. Trade with large urban and regional centres is limited because of the poor condition of feeder roads. Upgrading the road infrastructure and facilitating greater fluidity of inter-State trade, will enhance integration of the countries concerned.
1.5 Optimal natural resource management is a worldwide challenge, and regional sub-groups, such as OMVG, can make efficient contributions to the attainment of that objective.. Within the context of this project, enhancing agricultural and animal production, the development of water 1 resources, forests and rational environmental management will be dealt with at the level of the catchment areas, that is in the drive to ensure optimal utilization of natural resources and harmonization of policies through joint implementation of concrete development actions. In particular, the project seeks to encourage joint development of the shared natural resources as well as the sustainable management and tapping of such resources. These actions are consistent with the Bank strategies relating to member countries, which put emphasis on cooperation between regional member countries in order to find solutions to common problems, ensure capacity building, harmonization of policies, poverty reduction, sustainable natural resources and environmental management, food security, development of productive sectors and basic infrastructure, improvement of transport infrastructure and implementation of multinational projects with a positive spillover on the economy. The Natural Resources Management and Development Project, which is a regional integration and rural promotion project, based on the decentralization process undertaken by OMVG member States, is perfectly consonant with these strategies.
1.6 Considering the cross-border continuity of the ecosystems, the project falls within a global vision which requires greater involvement at the sub-regional level and which in turn requires taking advantage of the experience gathered in solving similar problems in the different countries. The satisfactory solutions found on one side of the border could be transferred to the other side. A pooling of the efforts is desirable in order to address the problems common to the countries, such as deforestation, deterioration of the farmlands, transhumance etc. In order to meet the need for harmonization, cooperation and consultation in areas such as environmental management, which by its very nature, transcends the limits of the national territories, the project seeks to facilitate and increase trade and promote a coordinated approach to natural resource management. Trade and synergy between the member countries will help to consolidate a sub-regional area of cooperation conducive to sustainable natural resource management.
1.7 The development of trade and the enhancement of productivity require the implementation of concrete actions to consolidate the basis for economic development through the development of rural infrastructure and the improvement of natural resource management, which are vital for creating conditions conducive to sustainable and lasting development. By facilitating exchanges and trade between the countries, the project will encourage cooperation between the countries in the area of natural resource management and contribute to the streamlining of national policies and regulations relating to the management of the ecosystems of the OMVG sub-region. It is perfectly consistent with the operation strategy of the Bank and the member countries concerning the promotion of cooperation and regional integration through sustainable natural resource management.
2. THE AGRICULTURAL SECTOR
2.2 Land Tenure System 2.2.1 In the four OMVG countries, the land ownership and land use systems as well as access to other productive natural resources depend on the socio-economic and political contexts of the different countries.
2.2.2 In Guinea, by virtue of previous official provisions, land, whether arable or not belonged to the State, the only legal land owner (Decree of 20 October 1959). The State did not actually exercise its right of ownership on all arable land but only on "State land". The remaining portion was subject to customary law. Since 1992, two land ownership systems have coexisted: the traditional customary system and the modern legal system. The newly adopted code establishes a legal system based on the following main principles: i) acknowledgement of occupied land as private immovable property; ii) allocation of unbuilt, unoccupied and ownerless land; iii) the acknowledgement of the right of ownership after registration; iv) the establishment of a land commission in each province and urban municipality of Conakry; v) identification of the reasons for 2 waiving land ownership rights on grounds of public interest; and vi) the distinction between State and private- owned land.
2.2.3 In Guinea Bissau, the former land ownership laws did not allow optimal resource development. A new land Act was approved in March 1998 by the National Assembly providing innovations by introducing a land grant system and setting up land commissions. The new Act has three major objectives: guarantee land availability to local communities; incorporate the traditional system into substantive law and encourage investments in land.
2.2.4 In The Gambia, the land ownership system is based on the traditional usufruct system. It is governed by customary law, which is enforced by the village chief at community level and the head of household at family level, and both of whom are vested with legal powers. Land free from claim falls under the authority of the district head. Apart from inaccessible marshlands, almost all arable land is owned by the community. Within the community each family has its own plot. Both men and women can own land, although the practice is marginal in comparison with common ownership by patrilineal right.
2.2.5 In Senegal, according to the State Land Act, land without a title deed, which is the case for most pieces of land in rural areas, belongs to the State; occupants enjoy only usufruct rights. The entire Anambe basin area falls under State lands. Villages are bounded by their agricultural and pastoral space, which constitutes their territory. Such territory is at the disposal of the entire village community and is under the authority and responsibility of the village chief. Families and individuals indicate their right to village land by clearing and occupying the land. As long as they farm the land they maintain the right of use. In the Anambe basin, the State develops the land, allocating it free of charge to farmers. 2.2.6 In conclusion, it should be borne in mind that the land ownership system in force in the area, based mainly on customary law, will have no serious negative repercussions on production, the management of natural resources and the economic development of the area. The land ownership system in the four States seems to change and both the traditional and modern land ownership systems are practised simultaneously. There is a trend towards modern land ownership rights, which is a guarantee for the considerable investments planned in productive infrastructure.
2.3 Performances of Similar Projects
In the project impact area, in addition to the OMVG operations, the Bank is participating in the financing of the Anambe Basin Development Project in Senegal and the Gambia Marshland Development Programme. The Anambe Basin Development Project was completed at the end of 1998 and the performance was satisfactory both in terms of physical developments and implementation-monitoring. A project to back up the revival of the Anambe Irrigation Scheme, upon ADF funding, is currently being appraised. The Agricultural Production Modernization and Intensification Project (PMIA) is underway and is producing satisfactory results in terms of agricultural credit. The Bank is also supporting the River Senegal Development Organisation Regional Programme (OMVS) built around the Diama and Manantali Dams. OMVS constructed the Diama and Manantali Dams on the River Senegal. Construction of the hydroelectric station in Manantali and interconnection lines are underway.
2.4 Operations of the Other Donor Agencies
2.4.1 The projects implemented in the different member countries before 1997 were essentially sectoral projects with a descending approach. Only the agro-sylvo-pastoral project, financed by Dutch Technical Assistance in Gabu, Guinea Bissau, is similar, from the point of view of the approach, to that envisaged by OMVG albeit on a smaller scale. This project, implemented in several phases, is intended to improve and reinforce agro-forestry systems, improve management and conservation of natural resources and reduce their 3 deterioration. It made it possible to test the ascending approach to land management, management of community forests and sensitization of the populations to bush fire control. The third phase is being completed and its activities are being taken over by an NGO (Association for the Promotion of Local Development) as of January 2002. This NGO plans to cooperate with OMVG. The results and experience of the Agro-Sylvo- Pastoral Project will be utilized particularly for the preparation of land development and management plans under the Natural Resources Development and Management Project.
2.4.2 A l’opposé, les nouveaux projets engagés adoptent une approche participative. Le projet de gestion participative et durable des énergies (Sénégal) a démarré en 1998 sur financement de la Banque mondiale, de la coopération néerlandaise et du Fonds mondial de l’environnement. Le programme d’appui à la gestion intégrée (AGIR) des bassins du Niger et de la Gambie, sur financement de l’Union européenne est en cours de démarrage. Dans le cadre du projet de gestion participative et durable des énergies, un inventaire forestier sur 300.000 ha est en cours d’établissement dans les régions de Kolda et de Tambacounda. Les plans d’aménagement des forêts villageoises dans la zone du projet au Sénégal seront faites en étroite collaboration entre le présent projet de mise en valeur et de gestion des ressources naturelles et le projet de gestion participative et durable des énergies. Le programme d’appui à la gestion intégrée (AGIR) des bassins du Niger et de la Gambie vise à favoriser la gestion communautaire durable des ressources naturelles (préservation de la biodiversité, gestion des forêts villageoises, parcs nationaux, aires protégées, information environnementale). Il réalisera en concertation avec l’OMVG, les activités à la périphérie des parcs nationaux jouxtant la zone du présent projet.
2.4.3 Le projet de mise en valeur et de gestion des ressources naturelles de l'OMVG travaillera en complémentarité avec les différents projets en cours dans la zone du projet et notamment avec le projet Agro- sylvo-pastoral de Gabu, le projet de gestion participative et durable des énergies et le programme d’appui à la gestion intégrée (AGIR) des bassins du Niger et de la Gambie et profitera des expériences acquises et de la documentation disponible. 2.5 Bank Group Strategy
2.5.1 In light of the sectors dealt with above, the Bank Group’s operations strategy in Guinea will be based on agriculture, integrated rural development and the social sector in the drive to reduce poverty.
2.5.2 The social services and agriculture are the main priority sectors of the Bank Group’s operations strategy in The Gambia. Indeed, the Bank Group will finance a study in the livestock sub-sector and projects in the fisheries and horticulture sub-sectors in order to strengthen food security, generate income and improve nutrition.
2.5.3 In Senegal, the diversity of the soils and the climate as well as the availability of the water resources create prospects for the development of the sector based on the diversification of crops and more intensive stockbreeding. The planned actions include the creation of feeder roads, water storage and distribution networks for both household consumption and irrigation, the development of stockbreeding and the improvement of natural resource management.
2.5.4 In Guinea-Bissau, the consequences of the civil war have been desasterous. The Bank’s strategy will focus on poverty reduction within the context of reconstruction and rehabilitation programmes and on capacity building in the agricultural sector.
2.5.5 The project seeks to enhance cooperation and regional integration with a view to concerted natural resource development and management. It is consistent with the ADF guidelines on the financing of multinational operations. 4
3. THE SUB-SECTORS
3.1 Main Characteristics
3.1.1 Between 60 to 80% of the population of the four countries are engaged in the agricultural sub-sectors (agriculture, stockbreeding, fisheries, irrigation and forestry) which contribute 21% of the GDP in Senegal, 25% in Gambia, 28% in Guinea and 50% in Guinea Bissau. Production in the sub-sector concerns primarily food crops, particularly cereals: millet/sorghum, maize, paddy rice (about 2,134,800 tonnes are currently produced). The output is mainly from traditional farms, which practice rain-fed shifting subsistence farming. Irrigation is not common in the countries and irrigated areas are limited representing only 4% of the cultivated areas in Senegal for instance. In general, there is a deficit in the production of cereals and these countries import considerable quantities of cereals: Senegal 760,000 tonnes; Guinea 463,000 tonnes; The Gambia 134,000 tonnes; Guinea Bissau 195,500 tonnes.
3.1.2 Export crops vary little and include table groundnuts and groundnuts for oil mills in the case of Senegal (10,000 tonnes), coffee, cocoa and cola nut in Guinea, cashew nut (29,000 tonnes), fibre cotton (480 tonnes), wood (6,000 tonnes) and groundnuts in Guinea Bissau, groundnuts, cotton and sesame in The Gambia. Stockbreeding is practiced by small-scale breeders in the four countries and it consists of sedentary and migratory stockbreeding. Livestock represents 7% of the GDP in Senegal with around 25 million animals (2.9 million heads of cattle, 4.2 million sheep, 3.6 million goats, 0.19 million pigs, 0.37 million donkeys, 0.45 million horses and 18 million fowls). In Guinea, the number of animals is estimated at 1.6 million heads of cattle, 0.9 million sheep and goats. In Guinea Bissau, the number is 410,000 heads of cattle, 240,000 sheep, 225,000 goats, 67,000 pigs and more than 473,000 fowls. In addition to reared animals, (sheep, goats, pigs, poultry), Gambian livestock includes draft animals: cattle (28,702), horses (12,838) and sheep (24,986).
3.1.3 All four OMVG countries have considerable fish stock. However, related activities are carried out mainly by foreign companies in the industrial fishing sub-sector; artisanal fishing remains a small-scale activity even if in terms of volume, catches are significant. In the sub-region, Guinea, southern Senegal and Guinea Bissau can boast vast forest resources which cover 70% of their area. The Gambia's potential remains substantial. Forest stands still cover nearly 40% of the entire Gambian territory.
3.1.4 L’exploitation agro-sylvo-pastorale se caractérise par la coexistence d’espaces cultivés et naturels s’interpénétrant dans une mosaïque à laquelle correspond un ensemble d’activités productrices : agriculture, horticulture, l’élevage en liberté, les récoltes et cueillettes diverses, la chasse, la pêche. Les savanes et les forêts permettent l’extension des terres cultivées et la restauration de la fertilité des sols épuisés. Elles fournissent l’essentiel de la nourriture du bétail, l’énergie domestique, une part prépondérante des matériaux de construction, des bois d’œuvre, des ressources alimentaires de valeur (viande de chasse, fruits, miel), des médicaments, des produits d’artisanat, etc. Les exploitations forestières rémunératrices (bois de feu, bois d’œuvre, apiculture, etc) contribuent de manière significative à l’amélioration des revenus des populations (entre 25 et 30% des revenus globaux annuels selon une estimation réalisée dans des villages périphériques de forêts ; jusqu’à 100% pour certains villages isolés de Guinée Bissau).
3.1.5 In conclusion, it should be noted that the main sub-sectors remain vital for the economy of the four countries and that it is possible to develop several of them that have a considerable potential, particularly agriculture, stockbreeding, forestry, complementary environmental protection activities and those aimed at improving the living conditions of the most vulnerable population segments. Efforts at integration, involving target populations, could be implemented in the agricultural sector.
3.2 Institutions and Organizations Concerned 3.2.1 In the four OMVG countries, rural sector and environmental activities are the responsibility of the 5
Ministry of Agriculture and Livestock and the Ministry of Environment and Nature Protection in Senegal, the Ministry of Agriculture, Livestock, Forestry, Water Resources and the Environment in Guinea, the Ministry of Agriculture and Fisheries and the Ministry of Natural Resources and the Environment in Guinea Bissau, and the Office of the Secretary of State for Agriculture and the Office of the Secretary of State for Fisheries, Natural Resources, and the Environmental in The Gambia. These ministries have central structures in the capital and regional offices. Two groups of institutions are involved in the sector: public (State institutions for training, research, supervision, extension, credit, marketing, etc) and private sector institutions (non-governmental organizations, private enterprises). Apart from operations conducted by the State and non-governmental organizations, private operators in the sector are increasingly forming economic interest groups, village associations and co-operatives. They increasingly endorse participatory land management as a way of addressing development issues. 3.2.2 As regards agricultural credit institutions in OMVG member States, apart from the traditional national institutions, which currently do not exist in Guinea Bissau and The Gambia, but are present in Guinea and Senegal, namely, the “Crédit rural et crédit mutuel d’épargne de crédit” (Rural Credit and Mutual Savings and Credit Fund) in Guinea; and the “Caisse nationale de crédit agricole du Sénégal” (Senegal National Bank for Agricultural Credit - CNCAS), there are grassroot initiatives based on savings and credit solidarity. They include the “Alliance de crédit et d’épargne pour la production” (Alliance for Credit and Savings for Production - ACEP) introduced with the assistance of USAID, the “Credit Mutuel du Sénégal” (Mutual Credit of Senegal - CMS) supported by the International Centre for Mutual Credit (CICM), French Technical Assistance, and the “Groupe de Mutuelles” supported by ACDI, in Senegal. In The Gambia, village savings and credit associations are established in rural areas. The Agricultural Production Modernization and Intensification Project, financed by the ADF, has established effective credit mechanisms and systems. The project will take advantage of the experience gathered. In Guinea, there are many village savings and credit funds (CVEC) and inter-village savings and credit funds (CIVEC) supported by the Credit rural de Guinee (Rural Credit of Guinea) and donors. In Guinea Bissau, private initiatives for credit associations develop through the establishment of credit and savings systems supporting several women’s and other credit associations. The project should back the introduction of these forms of credit, i.e. self-managed credit associations, to establish its activities in the four OMVG countries. 3.3 Organization for the Development of The Gambia River Basin (OMVG) 3.3.1 OMVG was established in 1978 when The Gambia and Senegal signed an agreement on the statutes of the River Gambia declaring the River and its tributaries of regional interest, and another agreement establishing the Organisation for the Development of the Gambia River Basin, defining its terms of reference, competence and mode of operation. In 1981, the Republic of Guinea joined the Organisation. In 1983, the Republic of Guinea Bissau became the fourth member of the Organisation. These two countries joining the Organisation made it possible to envisage integrated development of the entire River Gambia basin and to expand OMVG’s initial mission to include the basins of the Rivers Kayanga/Geba and Koliba/Corubal, which Guinea Bissau shares with Senegal and Guinea. From the institutional point of view, OMVG has three bodies: the Conference of Heads of State and Government which defines the cooperation and development policy, the Council of Ministers which prepares the Organization’s Work Programme, the Executive Secretariat which is the body responsible for implementing the Organization’s programme. OMVG has its Headquarters in Dakar with a limited staff. At present, there are no OMVG regional offices in the member countries. 3.3.2 The first projects identified, namely the construction of the Balingho salt break bridge/dam in The Gambia, the Kekreti dam in Senegal, and the Kouya dam in Guinea were abandonned because the choice and viability of these structures were not satisfactory. The downsizing of that programme and preparation of a more coherent and credible programme had therefore been recommended. In 1991, the Heads of State and Government, at their 8th Conference, took the donors recommendations into account and adopted a rehabilitation programme and a new structure for the Organisation called the Minimum Priority Activities 6
Programme including: a master plan study on the development of the water resources of River Gambia; preparation of energy guidelines for all of the member States through a sub-regional energy market study and a study on the major hydroelectric structures; the master plan study on the management and integrated development of basins of the Rivers Kayanga/Geba and Koliba/Corubal, as well as the updated study on the road bridge over the River Gambia. 3.3.3 The master plan study on the development of the water resources of River Gambia was intended to define a water management plan for the catchment area, which takes into account hydroelectric, irrigation aspects and their impact on the physical environment, the various uses of water and the social environment. The energy master plan aims at defining a sub-regional integrated water resources development and management programme, reinforcement of regional integration and cooperation through the rational utilization and operation of sub-regional energy resources. The aim of the study on the Rivers Kayanga/Géba and Koliba/Corubal catchment areas integrated development and management master plan is to: i) underscore the natural development potential of the two basins; ii) point out the constraints that thwart development and to give priority to the agricultural sector; and iii) highlight actions that can be carried out in the short, medium and long-terms. OMVG received the support of the Bank Group, the Islamic Development Bank and French Technical Assistance to implement this minimum programme which was completed in December 1998. The Organisation has a global vision and perspective on the management and development problems of the Gambia, Kayanga/Geba and Koliba/Corubal river basins.
3.3.4 Studies on the bridge on River Gambia have been completed and as soon as they are approved by the Member States, the search for funding of the implementation works will begin. The study on the river basins master plan has been completed and the natural resources development and management project, which is the subject of this appraisal report, stems from this master plan. The investment integration study relating to electricity generation and transmission was recently completed, and made it possible to select the Sambangalou hydroelectric project sites in the catchment areas of River Gambia, Fellou-Sounga and Gaoul as well as Saltinko on the Koliba/Corubal catchment area. The objective of the study on the means of electricity generation and transmission is to determine the feasibilty of the Sambangalou Hydroelectricity Project and the network for interconnecting this plant to the electricity consumption centres of the member countries. The study is now about to commence. The OMVG regional programme could launch the site development works following the start up of the Natural Resources Management and Development Project.
4. THE PROJECT
4.1 Design and Formulation
4.1.1 The Natural Resource Development and Management Project stems from the proposals of the master plan for the management and integrated development of the catchment basins of the rivers of the sub-region. It is based on the region’s possibilities to initiate the economic and social development of the member States and to reduce poverty in the project area. The project hinges the integration of the countries on the key rural development activities, namely, stockbreeding, agriculture, training and marketing of rural products. The project methodology will be evolutive and based on the analysis of the local lands in terms of space as well as the formulation, programming, implementation and evaluation of the actions. The project is designed using a global, ascending and participatory approach. At the regional level and at that of the catchment areas, the project is based on an integrated and concerted resource management. Within this context, it will enhance consultations and exchange of information between the administrations and between the populations with a view to the management of the water and soil resources. It will also seek to address the tensions resulting from the exploitation of the forests, management of the grazing lands and find common solutions to the problems. The project will encourage the beneficiaries to take over the reins of their own development and will support them by providing training and counselling. All agro-sylvo-pastoral activities are integrated and centred on the sustainable management of natural resources in harmony with the realities of the farms. 7
4.1.2 To promote local economic and social development the project will use the participatory local land management approach. The purpose is to improve in the long-term and at village level, the sociological, economic and ecological balances by highlighting the basic relationship between people and their natural environment which represents their production potential. People will be made accountable for their traditional environment, so that they can rationally manage and protect the resources therein to their profit. The project’s approach proposes partnerships and implementation of planned development programmes within the framework of rural development. Given the complexity and diversity of the socio-political, demographic and ecological environment, all these operations will be based on an analysis and understanding of this socio- ecological diversity and more so, on the demand of the inhabitants. Requests for support will be confirmed, at the end of participatory analysis prior to start up of the project activities. At both the levels of the family farms (small family estates) and the village, actions will be designed and undertaken collectively or in small co- operatives.
4.2 Project Area
4.2.1 The project area covers parts of Senegal, Guinea, Guinea Bissau and Gambia (see map attached). The areas concerned in Senegal are in the districts of Velingara in the Kolda region: the Linkering rural community of the Boncoto district, the rural communities of Paroumba and Wassadou in the Pakour district. In Guinea, those concerned are the district of Foula-Mory in the Gaoual Province;, the districts of Sambailo, Sareboidoand Kamabi in the Koundara Province as well as the urban community of Koundara. In Guinea-Bissau, those concerned are the Pitche and Pirada districts in the Gabou region. In The Gambia, the region concerned is Basse and it is situated on both bank of the river Gambia. The project area was selected because it constitutes a continuous and fairly homogenous geographic area from the demographic and socio-cultural stand points. 4.2.2 The main geomorphological units that determine the pedology of the project area are: the alluvial plains and tributary valleys, the slightly undulating plateaux, the highly enclosed plateaux and plains, the Badiar plateau and Koliba plain. Rainfall in the area has been on the decline for about fifteen years now, but remains relatively favourable (900 to 1.500 mm) in relation to other regions of the three countries (Senegal, Gambia and Guinea Bissau, in particular). Surface waters are collected in the three catchment areas concerned by the project: the river Gambia, the Kayanga/Geba and the Koliba/Corubal. The run-off waters can be used directly for controlled flooding on the marshlands (numerous in Guinea-Bissau) and the plains of Koundara in Guinea. Irrigation development using this type of water has been planned under the project. Underground waters along the course of the river are very limited. In most of the project area, hydrogeological resources are modest and even uncertain (the failure rate is between 20 and 30%). The project envisages improving the access to water in the area concerned.
4.2.3 Cultivated surfaces represent approximately 70,000 ha in the area under review. For annual crops the rapid decline of the soil's fertility and structure are the two main obstacles to farming. The higher the rainfall the greater the constraints; the increase in the population density and the attendant inevitable reduction of fallow time compound these natural constraints.
Beneficiaries
4.2.4 The overall population of the project area was estimated in 1997 at 167,000 inhabitants living in over 600 small villages. These villages are small. In Guinea Bissau, 97% of the villages account for less than 100 inhabitants; in Senegal, 70% account for less than 200 inhabitants and the same applies to Guinea. The population of the project area comprised 17.405 family farms distributed as follows: 6.350 in Guinea; 5.580 in Guinea Bissau; 1 285 in Gambia and 4.190 in Senegal. The entire project area (the border) is rural in nature. It is located in the triangle formed by the towns of Velingara, Bassé, Koundara and Gabu, of about the same size 8
(15.000 to 17.000 inhabitants) which play an administrative role as sub-regional centres. In all four towns there are markets which serve as local trading centres. In that respect, commercial activity in Gabu, the third town of Guinea Bissau, is the most significant. The only industrial town in the area is Velingara, where the SODEFITEX cotton ginning unit is located. Cottage industry is insignificant in the project area. It is evident that the reinforcing of co-operation between populations to find solutions to their mutual problems will necessarily bring about an increase of people in the area able to attain one twentieth of the population of member countries.
Problems Relating to the Project 4.2.5 The project must meet the need to protect the environment by keeping under control the deterioration of the soils and optimizing the use of the natural resources from the three trans-border river basins and encourage planned and harmonious development crossing the borders of the four OMVG member states. The crop production development problem is centred around the following observations : inadequate animal drawn farming equipment ; absence of strategies with regard to farming; shortage or inexistence of a training and advisory facility to help rural people settle their problems; shortage or absence of a credit facility, no local supply of inputs for crops other than cotton ; inadequate food production to ensure adequate coverage of family needs, lack of control of cropping systems ; problems of fertility aside from fields near huts; shallow water potential not at all or only slightly developed; commercialization problems; shortage of water in dry season (potable water, water for livestock) ; problems related to livestock (diseases, watering, etc.) ; inadequate mixed farming. 4.2.6 The main problems evolve around the fact that: cattle feeding is uncertain; pathology is not kept under adequate control because farmers are not well organized and lack the relevant training; access to and maintenance of draught animals is hindered by health problems; women's economic activities are as fragile as their productions (small ruminants and poultry) and they are the least supervised. For poor families, small ruminants play the role of stepping stone to cattle (5 goats for a cow) and subsequently, to animal traction. The protection of these ruminants is therefore an essential factor for the passage to more intensive agriculture. Livestock is not adequately commercialized. Consequently, the tendency is towards intensive cattle over- hoarding in the face of uncertainties over health and food. 4.2.7 Forest stands cover about 70% of the total project area but are increasingly on a decline as a result of persistently low rainfall for 20 years now, uncontrolled forest fires, highly extensive farming, uncontrolled use of wood by coalmen and timber merchants, land ownership laws which authorize the free use of land and a forest management department which lacks the necessary means to operate effectively. 4.2.8 In the project area, there is a move towards a more widespread, more diversified system of rural credit better adapted to the demands of small rural operators. The financing mechanisms of the rural world based on self-help are being encouraged and the more flexible structures promoted in order to pool them. This will mean the creation of basic structures in the village to serve as interface between producers and donors, with a view to meeting the needs of producers. Such credit systems will suit the requirements of the farmers, stockbreeders, craftsmen, small retail traders and women's association. 4.2.9 Lastly, it should be noted that the development problem is characterized by the extreme poverty of most of the population. Moreover, OMVG Member States are classified on the United Nations Human Development Index at the bottom of the scale. Life expectancy in these countries is below 52 years ; many people are deprived of potable water (31% to 57%) and access to health services (36 to 60%). Adult illiteracy is still very high, above 62%. In the project area, this situation is more detrimental and per capita GDP is below the national average, which is between US $ 90 to 270. Access to health services is very limited in the project area and the population resorts to traditional medicine (90% of the population). The population’s food situation is precarious. The health situation currently is characterized by a high national and infant mortality rate of 140 for 1000 and infant malnutrition of 45 to 1000. 9
4.2.10 Project implementation will be based on the appreciable assets in the area. Moreover, the Project area has considerable agro-ecological potential. The Project triangle trans-border site is characterized by a Sudano- Guinean climate, generally average fertile soil, considerable under-developed water resources and rice farming shallow lands which traditionally are not farmed by villagers because they are not able to control the rise of waters, inadequate equipment and an abundance of weeds. Natural formations cover nearly three quarters of the region with natural ecosystems, scantly or not at all inhabited, fairly important sylvo-pastoral areas that constitute reserves for the extension of their land, pastoral transhumance areas, and forest islets dispersed between soil and fallow. Many conditions are consolidated to permit the improvement of animal production on agropastoral farms in the project area ; the physical environment is fairly well conserved and has considerable resources for animal feed ; the stockbreeders in this area are “professional” cattle breeders ; the Ndama breed is perfectly adapted to the area.
4.3 Strategic Context
4.3.1 The considerable human and animal concentration in the project area subjects the existing natural resources to an accelerating overexploitation. Indeed, the forests and grasslands are deteriorating under the combined effect of the bush fires and deforestation. The lands are used for shifting and extensive agriculture, which devours space and the water resources are also becoming rare. As pressures are already being exerted on the natural environment, the spiral of deterioration has already set in (bush fires, increasing scarcity of valuable trees, extension of the areas covered in a crust of laterite, disappearance of the fauna, particularly large game, gradual decline in the output of crops, pastures and water deficit). Although this deterioration is not irreversible, it is nonetheless a source of concern.
4.3.2 Faced with this situation and conscious of the need for a common approach to the problems of rational management of the resources, the States agreed to adopt a concerted approach, which consisted in establishing a grassroots development strategy to check or reduce the current trend of deterioration of the ecosystems, with a view to ensuring integrated, rational and sustainable development of the village lands with the full participation of the local populations. For this reason, the approach of the OMVG project is far from being an intensive use of some parts of the project area that are conducive to agriculture. Instead, it is a general plan for the development of the entire area and is based on an overall development process comprising various components in the agricultural, agro-pastoral, forestry and social sectors. This approach, which is consistent with the OMVG member countries’ operation strategy in the area, seeks to facilitate harmonious development of the different agriculture intensification activities alongside the traditional farming practices such as rainfed agriculture and stockbreeding, while preserving the productivity of the natural environment. Consequently, on the basis of the problem raised by the tapping of natural resources in the target transborder area, the project will redirect the current tapping methods to make them consistent with the development and integrated management of the local lands resources, with the participation of the villagers. It will facilitate consultations and exchange of information between the administrations and between the populations with respect to the management of the water and land resources as well as the harmonization of relevant legislation on both sides of the common borders.
4.4 Objectives
4.4.1 Sectoral Objective: The project seeks to reduce poverty and sustainably improve the living conditions of the populations in the project area.
4.4.2 Project Objective: The objective of the project is to increase agro-forestry and pastoral output, rationalize tapping of the natural resources and improve the infrastructures and social services of the project area 10
4.5 Project Description
4.5.1 The project will make possible measures to optimize natural resource management, while maintaining the production potential and consequently will foster inter-state integration. These actions will be carried out taking into account the specificity and diversity of each country.
4.5.2 The key achievements expected under the project are:
- a better capacity for farmers (7,100) to use new techniques and to organize themselves in groups and associations; - the development of 4,540 ha of plains and marshlands to be used for growing rice and vegetable crops; - 500 stock breeders affected by the project and introduction to new activities: village fattening on community pastoral blocks ; cottage dairy produce (80), small cattle feed manufacturing units (130);;
- the management of 16,000 ha of developed forest and village land worked at the end of the project and 165 ha of village agro-forestry land worked impacted by the project;;
- the improvement of living conditions in the project area: the improvement of the health of the population (167,000 inhabitants) and animals and easier access to drinking water for them through the supply of at least 25 litres per day per inhabitant and 15 l/day for livestock in the project area ; opening up the OMVG sub-region, and the rehabilitation (90 km) and construction of feeder roads (57 km); and
- to establish mutual credit and savings funds through a village savings and credit fund (at least one per country);
4.5.3 The project components are:
A. Improvement of Productions; B. Improvement of Road Infrastructure; C. Back-Up Measures; D. Studies and Technical Assistance; E. Project Management
Component A: Improvement of the Productions
4.5.4 Improving productions through intensification and rational management of natural resources is the overriding objective of the project and is the very essence and main component of the project. It groups all operations to be carried out in the village and inter-village environment, on the basis of village land development and management plans.
A.1 Improvement of Plant Production
4.5.5 This sub-component will entail counselling farmers and providing the village associations with animal traction equipment and carts for transport. Counsel will be given on all farming activities and will focus on the choice of cropping patterns, mastering animal traction, managing soil fertility and mastering at local level, the 11 seed sub-sector. Animal traction equipment and transport will be provided for 3.310 farm units. Credit associations (Village Credit Funds or Inter-village Credit Funds) will redistribute, on credit, equipment to individual producers thanks to the initial provisions and to the project’s support. From the repayments the project will continue to encourage and create in the area other associative credit funds run as cooperative. In order to do this, the project will be based on the institutions, projects and NGOs capable of running such activities following the example of the Crédit rural de Guinée (Rural Credit of Guinea).
4.5.6 Some aspects of land organization and natural resource management will be dealt with and detailed under the project, in view of a better preparation of the operations in the various sectors. In that respect, experiments will be carried out under the project, on the use of calcic fertilizer and phosphate manure and organic fertilizers; studies will also be carried out on the economic conditions of local farm units. Under the project, studies will also be carried out on the techniques for controlling weeds, the mechanization of rice farming in the large marshlands of Koundara (Guinea), its rate of return and on women's activities because women farm small marshlands in other countries. To hedge risks stemming from the establishment of seed growers' groups and associations, the integration of mixed farming and its impact on women’s activities, related research will be carried out under the project by NGOs. Other experiments will be conducted on animal traction equipment, water management, agro-forestry techniques, private village nurseries and on processing dairy products and honey.
A.2 Irrigation Developments (Bottomlands and Plains)
4.5.7 Under the project, simple structures adapted to the desired capacity will be built once the request of the recipients is confirmed. Provisions will be made under the project for sills, small dikes 0.40-0.50m high, and possibly for land grading, dikes/ring and central drains and for retaining walls. 20 marshlands of 1,000 ha. in the Pitche and Pirada areas will be developed.
4.5.8 In order to improve rice farming on plains and in shallow waters, the project envisages in Guinea Conakry, the construction of dikelets on higher sites with light textured soil; low level protective dyke around plains subject to excessive flooding; improved drainage in these plains; mechanical ploughing and development of clayey shallow land; leveling in rice fields to improve water management; introduction, testing and extension work for the development of plots with different flood systems, so as to distribute the risks of loss; and the introduction of early variety of improved seeds. A total rice farming area of 2,390 ha will be developed in the plains and shallow waters of Guinea in 5 years.
4.5.9 In Senegal, the project actions aim at a better control over water, the rehabilitation and preservation of the fertility of the soils and the introduction of appropriate cropping methods. The project has provided for the construction of small dikes, followed by the grading of plots. In addition, retaining walls will be built downstream in order to facilitate off-flood rice cultivation already practised by women. The target groups will provide unskilled labour during works implementation, collect and transport building material required for the works and available locally. A total rice-growing area of 650 ha will thus be developed in the valleys.
4.5.10 For the Gambia, the structures will be built using the same approach as that used in Senegal. The project has provided for anti-erosive protection actions and for the development of 750 ha.
A.3 Improvement of Animal Production
4.5.11 Improving the management of natural resources implies the improvement of the physical environment, livestock patterns and the links between agriculture and livestock. Livestock production will be improved for the benefit of stockbreeders of member countries who will be organized in 130 groups: 28 in Guinea, 28 in Gambia, 40 in Guinea Bissau and 34 in Senegal. With this end in view, the Project plans for a series of actions 12 relating to land Organisation, integration of mixed farming, animal health, improvement and development of animal production
4.5.12 Under the project’s land development and management programmes (PAGT), support will be given to various village operators involved in land use management so that account will be taken of the access of cattle to the marshlands during the dry season, in space management, rotation, reserves and bush fire control. The project will put up 1,200 manure sheds: 200, 350, 450 and 200 in Senegal, Guinea Bissau, Guinea and Gambia, respectively. Agro-stockbreeders will have to group cattle, draught oxen, dairy cattle and fatstock instead of leaving them to roam at certain periods of the year. To solve the problem of outlet for the additional milk production, the project intends to explore three possibilities: production of milk from mixed farmers established in secondary centres: the processing of milk into cheese for the sale of dairy products from stockbreeders far from urban centres; and iii) improving the marketing conditions of fatstock or cast oxen..
4.5.13 The main actions provided for under the project in area of animal health include: i) reducing mortality by providing veterinary products in villages and camps (the establishment of veterinary pharmacies by groups); ii) advising on the correct use of veterinary products through special training of stockbreeders; iii) establishing stockbreeders groups; iv) introducing a programme on the prevention of cattle diseases; and v) choosing test areas for innovative actions. In an effort to promote mixed farming within the framework of agriculture- livestock integration, the project will urge farmers equipped with draught oxen and ploughs to harvest crop residues to be stored for the dry season and for the manufacture of compost. Part of these residues will be improved with urea. The manual chaff-cutter will be introduced and chaff-processing services will be offered by groups or private individuals for a better development of crop residues.
4.5.14 Under the project, bran-urea blocks will be manufactured. Bran is of nutritive value and can be used to manufacture nitrogen-enriched blocks. The project also plans to manufacture licking stones which will provide the cattle with basic mineral supplements to counter the main deficiencies (sodium, phosphorous, calcium and copper). The supplements will be manufactured using for as much as possible, products available in the area. Calcinated bone powder will be used as calcium and phosphorous supplement. In that regard, provisions have been made for the establishment of 130 cattle feed manufacturing units, one per group of stockbreeders. Progressively creating conditions conducive to livestock production with an increasing number of stockbreeders will mean a significant increase in the production of milk. There is no fresh milk outlet for farms far-removed from urban centres; consequently, the milk has to be processed into cheese which can be kept longer and can be transported over long distances. Eighty of these units will be set up. Prior to that, experiments will be carried out to determine types of cheese for long conservation, their adaptation to conditions in the area and the tastes of the urban consumers. A relevant market study will also be conducted.
4.5.15 One of the concerns of the project is to translate improved productions into better marketing conditions instead of an increase in the heads of cattle, which not only causes overgrazing but also is detrimental to the protection of natural resources in the area. The project intends to take all the necessary measures to facilitate the marketing and rearing of the cattle in question. The progressive opening of markets and the organization of stockbreeders for transactions with cattle traders will boost cattle trade. In that context, the project will build 20 shelters and 20 wharves in the existing markets. Provisions have also been made for the installation of 4 weighbridges, the purchase of 4 cattle scales and assisting in the organization of fairs and competitions. The project plans for extension of the water supply and sewerage network, supply and collection equipment and installing an embarkation and disembarkation area and public toilets for the DIAOBE market.
4.5.16 There is a link between improving productivity in these two areas other animals reared (small ruminants and poultry farming, sectors dominated by women, is closely linked to the introduction of development tools envisaged for cattle production. In addition to cattle owners who also own small ruminants and poultry, the project will involve 1,560 breeders of small ruminants and 2,010 poultry farmers. Bee-keeping is one of the 13 activities practised by agro-stockbreeders. The project intends to inventory existing outlets, to organize the collection of quality honey (using smoke and not fire) from wild bees (swarm catching) and traditional hives. Honey will be collected from farms to ensure good quality, facilitate conditioning for well-targeted consumers and in order to sell increased quantities of pure honey. Three centres responsible for extraction will be established in every country.
A.4 Rural Water Supply and Stock Watering
4.5.17 This sub-component concerns the supply of safe water for men and animals. The supply network in the OMVG countries will be harmonized so that minimum requirements will be the same in all the countries concerned (10 litres/inh./to 25 or 35 litres). Plans have been made to rehabilitate watering places and pumps, as well as to sink 20 boreholes (5 in Guinea, 10 in Guinea Bissau and 5 in Senegal), and 85 wells (15 in Gambia, 20 in Guinea, 30 in Guinea Bissau and 20 in Senegal). Provisions have also been made for the installation of new village watering places: 50 boreholes (20 in Guinea, 20 in Guinea Bissau, 10 in Senegal) and 2 in Gambia; 35 wells (20 in Gambia, and 5 in each of the other three countries); and the purchase of 120 manual pumps (20 in Gambia, 25 in Guinea, 40 in Guinea Bissau and 35 in Senegal) and as an experiment, 2 wind and solar pumps per country. 4.5.18 Under the village water supply operation, plans have been made for a mesh and an extra 65 stock watering places (5 in Gambia, 10 in Guinea, 25 in Guinea Bissau and 25 in Senegal). In order improve the approaches to watering places, plans have been made to build 37 access ramps to the Koliba/Corubal river (20 in Guinea, 4 in Gambia and 8 in Guinea Bissau and 5 in Senegal). Provisions have also been made to create 50 drinking ponds where possible, improved by 8.000 m3 and 20 hillside reservoirs (5 in each country). To carry through the rural water supply and stock watering system, the project will finance a water quality laboratory in Gambia and the costs of the installation of water points, works supervision and the pumping equipment
A.5 Forestry Developments
4.5.19 Woody formations deteriorate as a result primarily of clearing for farming and burning of natural pastureland. Therefore, the group to target is the farmer who practices stockbreeding, bee-keeping, woodcutting, hunting, etc. To address the current situation the four actions described below will be proposed under the project: village forest management, State forest management, village agro-forestry; and improvement of operating techniques and initial processing of forest products.
4.5.20 On lands with acknowledged boundaries, a permanent forest reserve will be marked out by the villagers for their own use. The objective being to exploit these resources in the best way possible with an annual management budget for community use. The Government of member countries will ensure the safety of these areas in compliance with the legal and land systems of each country. A model forest of about 300 ha will be developed and run in each village. Nearly 165 villages (60 in Guinea, 60 in Guinea Bissau, 40 in Senegal and 5 in Gambia) will be involved in this action which will cover about 10,000 ha of forests by the end of the project. Concurrently, and for the non-project areas, the Forest Department, which has already been provided with extra means to manage village forest, could manage state forest (one per country under the project). The objective is a better distribution of agrarian pressure rear the to village lands while using the same methods suggested for village forests on state forests..
A.6 Environmental Monitoring
4.5.21 Better understanding of the trend of the natural ecosystems and the agro-pastoral systems in the area will be useful for evaluating attainment of the project objectives. Direct and indirect environmental monitoring indicators will make it possible to evaluate the level of exploitation or conservation of the natural 14 resources of the project area. This will be done by gathering data on parameters such as climate, the trend of the multiple potentials of the valleys and alluvial plains, the regeneration trend of the wood species in the fallow lands and the natural environment, soil erosion trends, protection of particularly fragile ecosystem, trend of the epidemiological situation of the area and the level of adoption of farming practices that conserve the resources.
4.5.22 A consultant will be recruited to conduct an environmental benchmark study and precisely define the monitoring indicators. During project implementation, the project unit will evaluate each year the impact of the environmental measures on the development of the resources using predefined indicators to ensure that the measures applied produce the expected results. The environmental monitoring of the project will be coordinated by the project unit which will include an environmentalist. The Project Unit will also seek the assistance of service providers (NGOs and Consultants), support of the national services of the OMVG member countries responsible for overseeing application of the environmental monitoring standards during the implementation of the development projects.
Component B : Improvement of the Road Infrastructure
4.5.23 The programme was drawn up on the basis of records on and observations of the sites with a view to achieving economic integration and improving communication in the area. The proposals are in keeping with the national programmes and concern points not covered by the programme. It takes into account the desired effect of opening up the country and its integration into on-going road programmes, while minimizing the investment cost. Accordingly, under the project plans have been made:
i) in Guinea: for the rehabilitation of the ferry on the Koliba, from the Koutan-Koroane stretch (24 km) and the Missira-Senegal border crossing (3 km), the construction of 17 km of RN9- Koutan-Sofa link, two culverts (about 10 m each between Koundara and the Guinea Bissau border, opening up the north of the Badiar Plateau (10 km of construction) and additional meshing of RN9-Kamaby (10 km of construction);
ii) in Senegal, for the rehabilitation of the Dioladian-Guinea border crossing (10 km) and the Wassadou-Pakour (20 km) connection, raising the Kounkane-Pakour flooded passage (1 km);
iii) Guinea Bissau, for the rehabilitation of the Pitche-Guinea border crossing and access to the ferry on the Corubal/Koliba (1 km), construction of the Beli-Logajol feeder road (10 km); and (12 km) access to the ferry on the Corubal/Koliba (1 km), construction of the Beli- Logajol feeder road (10 km) and two culverts 12 metres each on the Pitche-Pirada feeder road;
iv) in The Gambia, for the rehabilitation of the Basse-Fatato feeder road (38.1 km) and construction of the Basse-Sabi Senegal border stretch (8.8 km).
Component C: Back-Up Activities
C.1 Revival of Women’s Activities des femmes
4.5.24 Women play a major role in agricultural production, especially grain, vegetable crop and livestock. Their numerous domestic chores do not leave them enough time to develop productive activities, initiate new ones or benefit from training courses. The measures advocated under the project aim at organizing women, sensitizing them to problems of family and infant health, relieve them of some chores and enable them to better 15 manage their time in order to derive the best profit from the opportunities offered within the framework of these various activities. To attain this objective, in addition to the development of the marshlands and plains for rice growing and market gardening, cheese industry and extension services (in agriculture, livestock, marketing, processing, financing, etc), provisions have been made under the project to support women's associations (36 including 11 in Guinea, 11 in Guinea Bissau, 8 in Senegal and 6 in Gambia), and the management of village health committees. Functional literacy and training in animal health and production, especially of small ruminants, poultry and bee-rearing will also be provided under the project for women.
C.2 Training
4.5.25 To start with, project officers will be trained to use the land management approach. Actions planned under the project require training and sensitization of the people. The project will train target groups whose needs will be identified and defined: in particular, village notables, craftsmen, contractors and traders (who have a very important service role to play in the local development process). Various extensions, training, further training, literacy, exchange of information activities will be carried out to attain the project objectives. To sensitize producers, prompt the creation of groups or committees in all fields (agriculture, livestock, forests, irrigation and health), and ensure training, the project team will use extension workers who are in harmony with the environment. One extension worker will be recruited to supervise 10 groups. The training will concern several targets (12.000 partners of the project): farmers, stockbreeders, auxiliaries, extension workers/trainers, craftsmen, traders and agricultural outreach officers.
C.3 Health
4.5.26 All four countries have opted for a primary health care policy based on community participation. To improve health, the project intends to: i) immediately train the village family assistants, the paramedical staff (125) in community health, with emphasis on primary health care; ii) provide logistic support to primary health activities, rehabilitate 47 health posts and centres, build and equip 8 health posts; and iii) register traditional therapists and give them training in primary health care (340 specialists). The Project will also finance a village latrine programme.
C.4 Support to the Establishment of a Self-Managed Associative Credit System
4.5.27 The Project envisages supporting the establishment of credit systems focused on the creation of savings and credit funds. The basic principle of the credit consists in setting up, in the four countries, a self-managed, associative credit system, similar to CIVECs (Inter-village savings and credit funds) and CVECs (Village savings and credit fund) already in existence in Guinea. Moreover, owing to the shortcomings of the traditional agricultural credit system, Guinea developed, within the rural credit system, a new type of funds, smaller at the village or intervillage level, characterized by reinforcing beneficiaries’ participation in managing their work tools, so as to reduce costs due to salaries, out of concern for a profitable system. In Senegal, the existence of popular savings and credit funds and mutual co-operatives who refer mainly to grass roots communities, and provide credit are also a centre from which self-managed, associative credit could open up. In Gambia, village savings and credit associations (VISACA) similar to CIVEC and CVEC in Guinea, efficiently mobilize village savings which are invested in the form of loans. VISACA are also organized in the form of participative village associations calling for solidarity, coherence and social cohesion to ensure a high loan repayment rate. The associative credit system, run as a cooperative, also seems to be taking root in Guinea Bissau where NGOs supervise the populations and farmers organizations in a larger land development process encompassing aspects of global supervision of the populations.
4.5.28 The Project will conduct consultations aimed in priority at social approval and the adhesion of villages to the projected associative system, already underway in States. This system will encourage the participation of 16 villagers in each step of the development by making individuals and institutional bodies (creation, management and development committees) responsible. It will stress, in priority, the collection of savings in the area and credit will be allocated on the basis of contributions and envisaged economic enterprises, also according to the financial activities of activities. Conditions for the allocation of credit will be determined by each association. The Project’s contribution will consist in providing the associations with the initial contribution in materials and financial resources (CFAF 50 million per State) in order to install each credit association. Women’s access to this allocation will be facilitated by the project while seeing that women are represented on the association’s management committees and ensuring specific support taking their needs into account.
Component D: Studies and Technical Assistance 4.5.29 Plans have been made for technical assistance to be given by: a Technical Adviser to the Project Manager for 30 months, support missions for 10 months in short-term monitoring-evaluation. Under the project, a study of the dam on the Rio Bidigor (Guinea Bissau) will be carried out and it will contribute to a better management of the Kayanga/Geba River, which crosses Senegal and Guinea Bissau. Consultations and pin-point surveys are scheduled in various fields (savings, credit, product marketing, etc). Site studies and supervision of rehabilitation works and the installation of watering points, as well as the designs and supervision of works to rehabilitate and build feeder roads, will be entrusted to specialized consulting firms. Ad hoc consultations will be organized to help national departments implement irrigation facilities. Component E: Project Management 4.5.30 The co-ordination of Project activities, workers and specialists from the four states require the creation of a regional unit (see. chapter 5) housed at Vélingara. In this context, the Project envisages construction of offices 450 m2 and 4-service housing accommodations 550 m2. It plans to equip all the offices and housing accommodations and to procure three 3 vehicles 4x4, 9 pick-up trucks and 36 motorcycles. Specific equipment (configurations/geographic information system – statistical information system) will also be procured. Radio equipment is envisaged to ensure links with centres such as Koundara (Guinea) and Gabu (Guinea Bissau) which can not be easily reached by telephone or by fax. 4.5.31 The senior project staff comprises a Director, a Manager, two Technical Officers, a Technical Assistant to the Director, 4 Regional Advisers (project managers in the four countries) and 12 Deputy Advisers specialized in the various fields of project activities. The salaries of project staff and other support staff to the Director and Regional Advisers, benefits, per diem as well as the procurement and maintenance of vehicles and part of the overhead expenses (70%), will be chargeable to the project. 36 Local Advisers (9 senior technicians per country) will be recruited under the project. The salaries of the Local Advisers will be chargeable to the Governments of the member countries.
4.5.32 The project will finance missions to audit accounts. The consulting firm will be selected on the basis of a short list. In order to facilitate auditing, separate accounts will be kept for ADF funds and for those of the Governments. Reports on the audit of project accounts will be submitted not later than six (6) months after the end of financial year. Failure to comply could mean a suspension of disbursement.. 4.6 Productions, Markets and Prices Productions
4.6.1 The project will result in additional output in agricultural, livestock and forestry products. Thus, in the case of cereals (sorghum/millet, maize, paddy rice and fonio), the output of the four countries will increase from 35,900 tonnes to 57,400 tonnes, that is an increase of 59%. With regard to cotton, production will increase from 9,540 tonnes to 13,400 tonnes; groundnut output will increase from 14,880 tonnes to 20,670 tonnes. In the case of livestock additional cattle output will stand at 1,250 heads; additional milk production 17 will amount to 655,000 litres; in the case of sheep and goats, the additional output of the villages will stand 4,760 heads, and an additional 12,120 fowls will be produced. With regard to the output forestry products, 20 m3/ha of charcoal will be produced, 10 m3/ha of timber and 6 m3/ha of small timber will also be produced.
Markets 4.6.2 Commercial activities in the region concentrate mainly on foodstuff. These activities are characterized by a generally insufficient supply of foodstuff to meet domestic demand. Marketing is still hindered by the price fluctuations which affect the different types of cereals. These difficulties are compounded by the low purchasing power of the consumers, the still high illiteracy in rural areas, the negative consequencies of low population density on the supply of inputs and the sale of products, lack of motivation of the farmers as a result of the weak back-up structures, the often deplorable state of roads and feeder roads and the various controls of the borders which have a negative impact on prices. The remoteness of the area and the limited marketing outlets enhance the development of weekly markets, the prototype of which is the DIAOBE market in Senegal. This market is attended by the nationals of the OMVG member countries and is a high place of crossborder trade. The DIAOBE market attracts about 15,000 people per week. The turnover of the different economic operators and revenue of the administrations and local communities is estimated at CFAF 900 million per month. The project will strengthen the integrative function of the markets by improving the road infrastructure, enhancing the equipment of the markets, simplying administrative procedures at the borders and creating a system of information on the projects. The project will undoubtedly provide possibilities for strengthening economic integration by eliminating, at least at the level of the project area, the physical barriers which hinder transborder trade and the movement of factors of production. Prices 4.6.3 The average prices per kg of product observed on the markets of the sub-region during the 1999/2000 period are: paddy rice - CFAF 105; maize - CFAF 100; groundnuts - CFAF 150; sorghum - CFAF 100; seed cotton CFAF 250; beef and poultry CFAF 1,100; mutton CFAF 1,200; milk CFAF 400/litre and CFAF 23,000 per cubic metre. 4.7 Environmental Impact 4.7.1 The natural resource management project in the OMVG countries aims at popularizing appropriate farming techniques and methods in order to reduce agricultural expansion and thus guarantee a sustainable management of natural resources. Under this project, no new land clearing is envisaged except in developed areas, farm mechanization, displacement of the population, introduction of new crops (or varieties), cultivation of marginal lands or significant changes in the traditional farming systems. It is classified under environmental category II.
4.7.2 Le projet est localisé au niveau de la zone frontalière des quatre Etats membres ou la situation actuelle de gestion de ressources naturelles est caractérisée par une exploitation forestière abusive, une agriculture itinérante sur brûlis et un élevage extensif, causes de dégradation des ressources naturelles empêchant toute forme de développement durable dans la zone. L’amélioration et l’intensification de l’exploitation des bas- fonds, actuellement occupés par les paysans, visent essentiellement à amener ces derniers à abandonner la pratique de la culture itinérante sur les pentes de collines et dans les réserves forestières. L'impact du projet sur les systèmes d'exploitation sera de freiner l'extension des superficies cultivées par de nouveaux défrichements et de favoriser l'application de mesures d’intensification agricole simples et d’amélioration de la gestion de l’eau au niveau des bas-fonds et des plaines. 18
4.7.3 The project also seeks to optimize natural resource management through the implementation of actions aimed at facilitating management of the local lands and livestock, intensification of farming in the bottomlands and plains, as well as back-up measures following a diagnostic review and consultations with a view to motivating them through the profits obtained from rational management of the natural resources. The results expected from these activities will result in gradual abandoning of shifting/slash-and-burn cultivation, reconstitution of the plant cover and better natural resource conservation and bio-diversity.
4.7.4 Works for the rehabilitation and extension of the feeder roads network involves refilling of the roads with laterite, the opening of road sections linking the various roads and the construction of bridges. These works are fairly dispersed and limited in amount and they will not have a significantly negative environmental impact. At any rate, the companies entrusted with the works will be required to comply strictly with the standard contractual clauses in the area. The requisite provisions will be layed down in the specifications. Irrigations schemes will be created in a way that will facilitate drainage and avoid stagnation of water. 4.7.5 In addition to improving primary health care, the main mitigation measures recommended by environmental study, conducted within the context of the project’s feasibility studies, are included in the different components so as to offset the potentially negative environmental impact of the project. Thus, most of the activities are designed with a view to sustainable natural resource management. A specific sub-component (A.6) on environmental monitoring has been provided for under the project. Monitoring of the environmental impact of the project will be coordinated by the Project Unit which will be assisted by the specialized national services of the OMVG member countries, NGOs and consultants. Budgetary allocations have been earmarked for environmental monitoring activities. 4.8 Impact on Women 4.8 1 Women play an important role in agricultural production, particularly cereal production. They are also involved in horticultural production. Indeed, women are very active in market gardening in terms of both production and marketing. However, they are often confronted with social and financial constraint (social prejudice and very low level of income) which prevent them getting access to credit. The Natural Resources Development and Management Project, by making available to producers funds to finance the purchase of agricultural and market gardening equipment will target women farmers. In the project area, in Guinea Bissau for instance, bottomlands rice farming is practised by women unless if draft animals are used for ploughing. Similarly, produce from farm tress are processed by women. On the basis of socio-economic studies conducted prior to the commencement of works, the project will ensure that women are granted developed plots in the bottomlands. Rehabilitation of the feeder roads will undoudtedly enable the economic operators in general, and women in particular to increase the supply of produce originating in the bottomlands. 4.8.2 Most of the small ruminants and poultry belong to women who derive income from them. Women will continue to process and market milk and the by-products as well as honey and wax. Cottage dairy manufacture and agriculture will be the main targets of the project. The implementation of the project will contribute to improving the living conditions of women. Access to health centres, water, funds for marketing or training relating to their activities will be made easier under the project, and consequently their incomes will improve. Under the project, women will be able to harvest larger quantities of produce, to store them and if necessary, to process them for more incomes. Generally, the increase in the production of grain, vegetable crops and livestock will have a positive impact on the diets and health of women and children and contribute to alleviating poverty in the project area.
4.9 Impact on Poverty reduction 4.9.1 The project is located on the borders of the Member countries. It will make it possible to develop and strengthen trade thanks to increased production (31,000 tons of crop production and 655,000 litres of milk) and incomes (CFAF 1,280 million) ; it will help to improve road infrastructure. Thus, the main weekly markets 19 which channel the circulation of products in the sub-region will be better organized. The project’s support to the organization of markets will promote the marketing and trading of livestock and dairy products between the people in the project area. Forest products such as charcoal, timber, honey and cashew nuts will be exported to Senegal while in return, Senegal will be in a position to sell farm implements to other countries. The project will reinforce inter-state commercial flows and economic and social relations between the populations. 4.9.2 Special emphasis will be laid on human resource development. At the end of the project, the improvement of nutritional and health conditions and the organization of training sessions concerned with functional literacy and action will result in the improvement of the beneficiaries’ skills and the sustainability of the project’s activities. Furthermore, the implementation of the project will help to preserve previous investments in the agricultural sector in general and in the road subsector, the increase in products and better circulation of the latter, as well as that of persons, provision of new land (marshlands), an increase in productivity, while limiting new land clearings, and especially poverty alleviation of the most disadvantaged social groups. 4.9.3 Finally, the project impact on poverty alleviation will provide food security for the people : increased consumption of grains in the area (additional 20 kg per person per year). With regard to drinking water supply, the project will provide nearly 20 litres/day/person. In the area of health, the project seeks to reduce infant and maternal mortality from 140 to 100 per 1000. On completion, the project will contribute to the literacy of adults in the area through the training of nearly 12,000 persons, or nearly a 20% reduction of illiteracy rate.
4.10 Project Cost
4.10.1 The updated total of the project cost is estimated at CFAF 17,738.79 million, i.e. UA 19.36 million, net of tax and custom duties. The breakdown of this cost is the equivalent of CFAF 10,122.72 million in foreign exchange, i.e. UA 11.04 million and CFAF 7,616.07 million in local currencies, i.e. UA 8.32 million. The detailed project costs by country are stated in working documents put at the disposal of the OMVG Executive Secretariat. The following tables give a summary of the costs by component and by category. Table 4.1 Summary Cost Estimates of the Project by Component
In Mmillion CFAF In Million UA Components F.E. L.C. Total F.E. L.C. Total %
A. Improvement of Productions 5,149.41 2,961.54 8,110.95 5.62 3.23 8.85 44.31 B. Improvement of Infrastructure 1,485.62 799.99 2,285.61 1.62 0.88 2.5 12.91 C. Back-Up Measures d'accompagnement 924.64 900.53 1,825.17 1.01 0.98 1.99 10.28 D. Technical Assistance Stucies 624.14 139.27 763.41 0.68 0.15 0.83 4.29 E. Project Management 459.00 1,719.14 2,178.14 0.50 1.88 2.38 12.29
Base Cost 8,642.81 6,520.47 15,163.28 9.43 7.12 16.55 85.48 Physical Contingencies 432.14 326.02 758.16 0.47 0.36 0.83 4.29 Price Escalation 1,047.77 769.58 1,817.35 1.14 0.84 1.98 10.23
Total 10,122.72 7,616.07 17,738.79 11.04 8.32 19.36 100.00
Table 4.2 Summary Cost Estimates of the Project by Category
In Million CFAF In Mllion UA Categories F.E. L.C. Total F.E. L.C. Total %
Works 4,800.31 3,413.30 8,213.61 5.23 3.73 8.96 44.28
Materials/Equipment 2,141.27 374.67 2,515.94 2.34 0.41 2.75 14.20 20
Operation 0.00 692.30 692.30 0.00 0.76 0.76 3.92
Personnel 0.00 1,060.80 1,060.80 0.00 1.16 1.16 6.00
Consultants 1,393.96 469.20 1,863.16 1.52 0.51 2.03 10.48
Credit 200.00 80.80 280.80 0.22 0.08 0.30 1.55
Training 107.27 429.40 536.67 0.12 0.47 0.59 3.05
Base Cost 8,642.81 6,520.47 15,163.28 9.43 7.12 16.55 85.48
Imprévus physiques 432.14 326.02 758.16 0.47 0.36 0.83 4.29
Hausse de prix 1,047.77 769.58 1,817.35 1.14 0.84 1.98 10.23
Total 10,122.72 7,616.07 17,738.79 11.04 8.32 19.36 100.00
4.10.2 Cost estimates were recalculated on the basis of the prices in force in January 2001, with an allowance of 5% for physical contingencies on all base costs and a 3% provision for price escalation was applied to all components. The overall package for physical contingencies (UA 0.83 million) and price escalation (UA 1.98 million) is UA 2.81 million, or 14.52% of total project cost.
4.11 Sources of Finance
4.11.1 The project will be jointly financed by the ADF, the IDB and the OMVG member countries. Details of the project financing plan are given in Tables 4.3 and 4.4 below.
Table 4.3 Financing Plan
In Million CFAF In Million UA
L.C Sources F.E. Total F.E. L.C Total %
ADF 6,273.34 4,441.39 10,714.73 6.84 4.85 11.69 60.38
IDB 3,849.38 1,340.02 5,189.40 4.20 1.46 5.66 29.24
OMVG 0.00 1,834.66 1,834.66 0.00 2.01 2.01 10.38 COUNTRIES
Total 10122.72 7616.07 17738.79 11.04 8.32 19.36 100.00
Table 4.4 Financing Plan by Country
Source 000 CFAF Million UA Guinea Bissau Guinea Senegal Gambia Total Guinea Bissau Guinea Senegal Gambi Total a ADF 2989.91 3207.67 2661.67 1855.48 10714.73 3.26 3.5 2.9 2.03 11.69 IDB 1013.15 1219.18 1152.91 1804.16 5189.40 1.11 1.33 1.25 1.97 5.66 OMVG 558.03 517.40 368.34 390.89 1834.66 0.61 0.56 0.41 0.43 2.01 COUNTRIES TOTAL 4561.09 4944.25 4182.92 4050.54 17738.79 4.98 5.39 4.56 4.43 19.36 21
4.11.2 The cost of the project in each country is determined on the basis of the activities planned in each country and by adding a fair distribution of the common project management costs among the four countries (Project Coordination Unit and various general studies). The financing plan by country is determineed by applying to each country the same financing plans as those applied to the entire project. The detailed project costs as well as the tables presenting the costs by component, by category and by source of finance have been prepared separately for each country and contained in a separate working document.
4.11.3 The ADF will cover 59.46% of the total cost, or UA 11.01 million of which UA 6.40 million in foreign exchange and UA 4.61 million in local currency. ADF participation in local currency (24.90% of the project cost) is justified by the project’s poverty reduction objective and the high rate of local currency costs (43%). The different OMVG countries contribute to the financing of local costs and deploy commendable efforts to pay their debt. In fact, all the countries were able to contain their Government spending and took measures to consolidate their savings ; they also make a better utilization of these savings by allocating them to the public investments counterpart funds, thus promoting the sustainability of the operations while involving the beneficiaries themselves to finance capital and recurrent project costs. The major project components will be implemented by the people concerned by using their labour for construction, infrastructure and back-up actions.
4.11.4 ADF financing is allocated on the basis of the activities to be conducted in each member country of OMVG. ADF's financing of recurrent costs is degressive and will be reduced from UA 0.10 million in year 2 to UA 0.03 million in year 6 and it covers operating and personnel expenses as well as overheads. The operating costs are broken down as follows (in UA million):
Table 4.5 Trend of the Operating Costs (Million UA)
Sources 2002 2003 2004 2005 2006 2007 TOTAL ADF 0.05 0.10 0.09 0.08 0.06 0.03 0.41 OMVG 0.00 0.03 0.05 0.06 0.09 0.12 0.35 TOTAL 0.05 0.13 0.14 0.14 0.15 0.15 0.76
4.11.5 Operating costs will be borne until the project is completed and the recurrent costs remaining are those relating to the beneficiaries production machinery which falls to them directly.
4.11.6 The contribution of IDB to the project financing amounts to CFAF 5,003.03 million, or UA 5.59 million. It will finance the establishment of road infrastructure and rural water supply systems.
4.11.7 The Government’s contribution amounts to CFAF 1,716.54 million, or UA 1.92 million, broken down as follows : Gambia, UA 478,000; Guinea, UA 540,000; Guinea Bissau, UA 457,000 and Senegal, UA 445,000. It will make it possible to finance the works for the construction of the project’s head office, salaries of local extension workers, 45.9% of overheads and sundry operating costs. Project beneficiaries will contribute manually to irrigation scheme works and will be responsible for the purchase of oxes for ox- drawn cultivation.
4.11.8 The expenditure breakdown (including physical and financial contingencies) by source of finance and by component is given in the table below:
Table 4.6 Expenditure by Component and by Source of Finance 22
(In Million UA)
Components ADF IDB OMVG TOTAL % Improvement of the Productions 6.53 2.82 1.14 10.49 54.18
Improvement of Road Infrastructure 0.00 2.84 0.00 2.84 14.62
Back-Up Measures 2.16 0.00 0.16 2.32 11.99
Technical Assistance Studies 0.97 0.00 0.00 0.97 5.01
Project Management 2.03 0.00 0.71 2.74 14.00
Total 11.69 5.66 2.01 19.36 100.00
4.11.9 Project expenditure by category and source of finance are as follows: 23
Table 4.7 Expenditure by Category and by Source of Finance (In Million UA)
Sources ADF IDB OMVG F.E. L.C. TOTAL F.E. 1,26L.C. TOTAL L.C. TOTAL Categories Works 2.05 2.02 4.07 3.18 1.26 4.45 0.45 0.45 Materials and Equip. 1.94 0.00 1.94 0.4 0.00 0.40 0.41 0.41 Operation 0.00 0.41 0.41 0.00 0.00 0.00 0.35 0.35 Personnel 0.00 0.81 0.81 0.00 0.00 0.00 0.35 0.35 Consultants 1.52 0.37 1.89 0.00 0.00 0.00 0.14 0.14 Credit Support 0.22 0.06 0.28 0.00 0.00 0.00 0.02 0.02 Training 0.12 0.47 0.59 0.00 0.00 0.00 0.00 0.00 Base Cost 5.85 4.14 9.99 3.58 1.26 4.84 1.72 1.72 Physical 0.29 0.21 0.50 0.18 0.06 0.24 0.09 0.09 Contingenc. Price Escalation 0.70 0.50 1.20 0.44 0.14 0.58 0.20 0.20 Total 6.84 4.85 11.69 4.20 1.46 5.66 2.01 2.01
5. PROJECT IMPLEMENTATION
5.1 Executing agency
5.1.1 The Executing Agency of the project will be the Executive Secretariat of OMVG, a light operational structure, responsible for the implementation of the policy and common development programme of the member states. The Executive Secretary is assisted by three directors. The Department of Studies, Planning and Infrastructure is charged with the preparation, coordination and supervision of studies, projects and river basins development programmes. The department of agriculture is responsible for the preparation of OMVG’s agricultural policy for the river basins and the supervision of rural development programmes and projects. The Administration and Finance Department is in charge of general administration. The staff, a total workforce of 16 persons including 4 executives, is dynamic and sufficiently and highly motivated to successfully complete the integration programme entrusted to OMVG, especially the present project.
5.1.2 The Directors of the Executive Secretariat, senior managers, have the required skills to ensure the monitoring, supervision and coordination of the project. They successfully monitored the study of a master plan for the integrated development of the basins of the rivers Kayanga-Geba and Koliba-Corubal, studies on the construction of a bridge on the river Gambia, and the study on the integration production of investments and the transmission of electric energy and production. Nevertheless, the management of the project will be strengthened by experts, a long-term technical assistant and by various technical support missions.
5.2 Institutional Measures
5.2.1 OMVG will be responsible for the overall management of the project from the technical, finanancial and organizational standpoints and will supervise project activities in the field. OMVG will also define memoranda of understanding to determine the duties, the operations and responsibilities of the Project Coordination Unit (PCU) and the services of the different States. The loan resources will be onlent to the savings and credit fund and mutuals which will be selected in each country following competitive bidding. The Executive Secretary of OMVG will co-sign with the director of the PCU all the reports prepared by the PCU and requiring ADF approval. He will submit to the Project Steering Committee, half-yearly and annual 24 progress report as well as the annual programmes and projects prior to their submission to the ADF for final approval.
5.2.2 The PCU will be based in Velingara and will be managed by OMVG’s Director of Agriculture. Evidence of creation of the Project Coordination Unit and appointment of its director shall be lending conditions. The PCU will coordinate and monitor the activities entrusted to the different partners operating in the project area, namely: technical services of the administration involved in the project activities, NGOs, decentralized local communities and private operators. It shall ensure the proper discharge of the services relating to the organization of seed multiplication groups, research on the integration of farming and stockbreeding, the revival of women’s activities and the establishment of savings and credit funds. The PCU will prepare quarterly, half-yearly and annual activitity report as well as annual programmes and budget of the project.
5.2.3 In addition to its coordinator, the PCU shall have a deputy coordinator, a manager and pluridisciplinary team of twelve (12) officers specializing in the areas of operation of the project (agronomy, land development, stockbreeding, forestry, organization of the rural areas, sociology, training/literacy education, a socioeconomist specializing in women’s affairs, administration, environment, water resources and agricultural economics/monitoring-evaluation). These specialist will be financed by the project and will be selected after competitive bidding. The project team comprising fifteen (15) officers will work in synergy with the local advisers (State employees) responsible for organization, sensitization and organization of the populations. The local advisers put at the disposal of the project by the State will have the level of a senior technician and will be in constant contacts with the producer groups and the villages.
5.2.4 A Steering Committee will be set up in order to enhance the synergy of the different project operators, ensure that the project activities are consistent with OMVG’s regional integration programme and find solutions to the project implementation problems. It will comprise the representatives of the member States (directors of agriculture, livestock, forest, public works and the environment), representatives of the beneficiaries population and all other parties involved in the project. Evidence of creation of the Steering Committee shall be a lending condition. The Committee shall meet at least once every six (6) months. It shall approve a half-yearly and annual activity reports of the project as well as its annual programmes and budgets.
5.3 Implementation and Supervision Schedule
5.3.1 The project will last six years (2000/2005). Activities will start in June 2000, with the establishment of the project unit, the launching of engineering designs for the various works and the sinking of wells and boreholes. Works to improve roads will be carried out as a priority between 2001 and 2003. Irrigation and forestry works and the improvement of products will be gradual, according to the beneficiaries’ capacities and will span 2002 to 2007. Rehabilitation, construction and equipment of wells and boreholes will take place between 2004 and 2006. The Bank’s supervision missions will be conducted regularly and at least once every nine months. The project implementation schedule is as follows 25
Activities/Action Initiated by Start-up Duration
Board Approval ADF April 2001
Loan Signature ADF/OMVG May 2001
Establishment of the Unit OMVG June 2001 6 Months
Recruitment of Consulting Firms/NGO/Training Centres Executive Secretariat July 2001 6 Months
Preparation of the 1st Annual Programme Budget OMVG Sept 2001 1 Month
First Disbursement ADF Sept 2002
Improvement of Road Infrastructure Local Enterprises Oct 2002 30 Months
Irrigation Schemes Beneficiaries/SME Nov 2002 5 years
Forest Management Beneficiaries/SME June 2002 5 years
Improvement of the Productions Beneficiaries/SME June 2002 5 years
Rural Water Supply and Stock Watering Entreprises Oct 2004 30 Months
Mid-term Evaluation Consulting Firm Jan. 2005 3 Months
Final Evaluation Consulting Firm Dec. 2007 3 Months
5.3.2 The project expenditure will be effected according to the schedule indicated in the tables below and on the basis of the implementation plan.
Table 5.4.2 ExpenditureSchedule by Component (In Million UA)
Components 2002 2003 2004 2005 2006 2007 TOTAL %
A. Improvement of the 0.18 1.50 1.45 1.98 4.59 0.80 10.49 54.18 Productions
B. Improvement of Road 0.00 1.33 1.00 0.50 0.00 0.00 2.84 14.65 infrastructures
C. Back-up Measures 0.00 0.55 0.79 0.44 0.29 0.26 2.32 11.99
D. Technical Assistance 0.08 0.22 0.23 0.17 0.19 0.07 0.97 4.99 Studies
E. Project Management 0.73 0.35 0.38 0.42 0.43 0.44 2.75 14.19
TOTAL PROJECT COST 0.99 3.95 3.86 3.50 5.49 1.57 19.36 100.00
5.4 Provisions Relating to the Procurement of Goods and Services 26
5.4.1 Procedures for procurement are summarized in table 5.3.1 below. All goods, works and services to be financed by the Bank will be procured in compliance with Bank rules and procedures for procurement of goods and services, or as the case may be, in compliance with Bank rules and procedures for the use of consultants using the appropriate Bank’s model bid documents.. Table 5.4.1 Provisions Relating to the Procurement of Goods and Works
En millers d’UC Project Components AOI AON LR BID (a) Autres
1. Works 8.960
1.1 Boreholes and Wells (1,510) 1,950 3,460
1.2 Road Infrastructure 2,500 2,500
1.3 Buildings 850 850
(780)
1.3 Irrigation Schemes 2,160 2,160
& Others (1,780)
2. Goods 2,750
2.1 Means of Transport (480) 480 2.2 Agricultural Equipment (820) 820
2.3 Office Equipment (190) 190
2.4 Pumps 330 330
2.5 Other Equipment (450) 70 520
2.6 Miscellaneous 400 (b) 400
3. Consultancy Services 2,030
3.1 Technical Assistance (270) 270
3.2 Studies and Works Control (421) 421
3.3 Studies and Monitoring of Forest (330) 252 682 Management (152) 3.4 Monitoring-Evaluation and Audit (311) 311 3.5 Research–Development (50) 165 215
(125) 3.6 Various Consultations (231) 231
4. Training (590) 590
5. Credit 300 310
(280)
6.Operation/Personnel 1,910 1,910
(1,220)
Total Base Cost 3,000 3,470 2,203 4,850 3,027 16,550
(3,000) (3,010) (2,203) (1,777) (9,990) ( ) = ADF Share (a) =Parallel IDB Financing (b) Miscelleneous/Draft Cattle 27
5.4.2 International competitive bidding. The sinking of wells and boreholes will be by international competitive bidding (ICB) given the volume of the works and their complexity. Procurement of the means of transport, farm implements, computer and office equipment will be through ICB (amount exceeding UA 100,000). The contractor will use well-diggers for certain rehabilitation works who will be trained and prepared to maintain the facilities on completion of the project, in compliance with the wishes of village committees. Works to improve road infrastructure and irrigation schemes will also be carried out in accordance with the procedures of the IDB which will finance these activities.
5.4.3 Local competition (LC). Works for the rehabilitation and construction of buildings (health centres, stores, offices, housing) which will be divided into 5 bid packages will be awarded to small local enterprises through local comparative shopping. Irrigation schemes will be carried out gradually with the participation of beneficiaries in the works. Mechanical works and simple engineering structures will be procured by local competition from small and medium-sized enterprises. Other equipment grouped under various items (health, market, livestock and beekeeping) will be procured through local competition, given the sufficient number of local and foreign suppliers in the OMVG member countries, to ensure competitive prices. Publicity for local competitive bidding will be made in the four (4) countries members of the OMVG.
5.4.4 Short-list (SL) Consultants, audit firms, training and literacy centres, NGOs and consulting firms will be procured through competition on the basis of a short-list.
5.4.5 For credit and literacy training of beneficiaries by the organization of seed-bearers, the research action on the agriculture-livestock development activities and the boosting of women’s activities, a short-list of specialized NGOs will be made.
Others
5.4.6 The performance of services entrusted to Governments of member states (forests, management, national parks, training centres) will be subject of a memorandum of understanding to be submitted for ADF’s approval in advance. Specialized training will be conducted in appropriate centres after approval by the ADF..
General Information Note on Procurement
5.4.7 The text of the general information note on procurement will be adopted by OMVG during negotiations and will be issued for publication in the Development Business as soon as the ADF Board of Directors has approved the loan proposal.
Review Procedures
5.4.8 The following documents will be submitted for review and approval by the Bank, prior to publication: i) special information note on procurement; ii) bidding documents; iii) bid evaluation reports including the recommendations on the award of contracts; iv) draft contracts in the event of a modification of those in the bidding.
Table 5.4.3 Expenditure Schedule by Source of Finance (In Million UA) 28
Sources 2002 2003 2004 2005 2006 2007 TOTAL %
ADF 0.77 2.29 2.32 1.71 3.38 1.22 11.69 59.46
IDB 0.00 1.33 1.09 1.48 1.77 0.00 5.66 29.25
OMVG 0.22 0.32 0.45 0.32 0.34 0.35 2.01 10.36
Total 0.99 3.95 3.86 3.50 5.49 1.57 19.36 100.00
5.5. Provisions Relating to Disbursement
5.5.1 The project operating costs will be financed by the ADF through a working capital. To this end, a special account will be opened in acommercial bank in the name of the OMVG to receive all the ADF resources required to finance the operating costs. The disbursements will be made according to the Bank’s rules of procedure.
5.5.2 The loan resources will be disbursed to an account opened to that effect in a commercial bank. The disbursements will be in annual tranches determined on the basis of an annual programme approved beforehand by the Government and the ADF. The subsequent disbursements will also be authorized after submission of relevant documents justifying expenditure of the preceding disbursements. In view thereof, applications for disbursement should be accompanied by the following documents: i) briefs providing information on the sub-projects financed; ii) technical files stating the results expected from the sub-project (production, turnover, charges, financial results before and after payment of the loan and management ratios) and iii) lending agreement signed between the beneficiaries and the credit institution.
5.6 Monitoring-Evaluation
5.6.1 Monitoring and evaluation will be carried out at the farms, villages and regional levels. It will make it possible to assess the various activities scheduled (production development, incomes, impact on food balance, impact on men and women, improvement of the organization of associations, system of information on the markets and strengthening of regional integration). The monitoring system will comprise three components: the Geographic Information System (SIG), the Statistics Information System (SIS) and the Information and Dissemination System (SID). The SIG will be used for processing geographic data, with a view to monitoring the trend of the forest cover, land clearing and the boundaries of village land. The SIS will be required to process data statistics (tables, charts, lists), and SID for the periodic dissemination of information to enable decision-taking by project officers or at the request of the public or project partners. Appropriate equipment will be acquired to enable the establishment of these systems.
5.6.2 Vital information indispensable for the project's conduct will be obtained through monitoring. The Project Advisory Committee will field a mission to monitor the status of the project at least once a year in order to give instructions to the Project's Management. A mid-term review is scheduled in January 2003 to determine progress and if need be, propose corrective measures. A project completion evaluation is planned to enable a better appreciation of project results and effects.
5.6.3 The Bank will conduct a project launching and regular and close supervision missions (at least once every 9 months). OMVG will send the budgets and annual programmes of activity, half-yearly progress reports before the end of January and July of each year. The environmental follow-up will be the subject of a specific report which should be sent annually to the Bank.
5.7 Financial Reports and Audit 29
The project accounts will be held separately or should appear clearly in all the operations financed by the ADF. These accounting operations will be conducted by the OMVG. The projectaccounts will be submitted to the public institutions for verification. An external auditing firm financed by the ADF will be recruited to conduct an annual audit of the project accounts and any corresponding bank accounts.
5.8 Coordination with the Other Donor Agencies 5.8.1 Several sectoral development projects are being implemented in the project area. Of the major ones there is the Gabu agro sylvo-pastoral project in Guinea Bissau which is being financed by the Dutch Cooperation, the Eastern region rural development project (financed by the European Union) to develop cotton farming ; in Senegal, the Eastern Senegal rural development project financed by the French Development Agency (AFD) and managed by the Société de Développement des Fibres Textiles (SODEFITEX), the integrated systems project for the protection of natural resources in Moyenne Casamance (German Cooperation) and the natural resources community management project (USAID) ; in Guinea, the Gaoual and Koundara rural development project (AFD financing) and the Niokolokoba-Badiar Park development project (European Union); and in Guinea-Bissau, the Cotton Management Unit Project. The «Vétérinaires sans frontières » (VSF) NGO operates in the Kolda region, in the field of animal health privatization and the training of veterinary assistants, and in the Koundara region, in the management of grazing areas for breeders around the Badiar Park. The Canadian NGO (CECI) supports farmers groups in Guinea Bissau. The NGO Action Aid Gambia ensures the implementation of the poverty alleviation project financed by the AFD.
5.8.2 OMVG has an Advisory Committee which groups together all its financial partners for better coordination of actions and aid. This context will promote consultation with donors. The ongoing projects in the area have a rather sectoral approach. Representatives of the donors who met in Dakar (World Bank, European Union, AFD and USAID) stressed the interest of this project which will be the only regional project for the development and management of natural resources with a participative and multisectoral approach. Its implementation will enable an optimum management of resources and better protection of transborder river basins.
6. SUSTAINABILITY AND PROJECT RISKS
6.1 Recurrent Costs
As a result of the approach used recurrent costs are minimal (CFAF 20 million per year). The beneficiaries are the main actors and the project is intended to assist them. The cost of maintaining the improved facilities (CFAF 10.000 per ha), watering places and equipment will be defrayed by the beneficiaries, who thanks to the project, will have the necessary resources to do so. Almost all running costs during project implementation will be chargeable to the ADF, on a sliding scale, at the same time as the Governments. The other operating costs relate to the salaries of local staff which are already borne by the Governments, but above all, the latter should take part in activities concerning land planning, socio-economic facilities, and environmental follow-up are their responsibility. Governments should also continue to support private initiative : training, sensitization and literacy. The forest departments will need considerable resources to monitor forest management. These needs will be covered by revenues generated by forest taxes given that state-owned forest logging generates a substantial revenue in the region of CFAF 100 million yearly against recurrent costs of the order of 30 million for 1000 ha. 6.2 Project Sustainability 30
6.2.1 The project was identified on the basis of a participative diagnosis on which the actions are based. The land management approach was chosen with the hope of arriving at a long term management and development of natural resources and a sustainability of project actions. Indeed, the people will be responsible for the production and protection of these resources. The increase in the number of farmers practicing animal traction and their awareness of and training in how best to manage the land, will make it possible to step up agricultural production and reduce clearing. Irrigation will be gradual and simple. The techniques to be used will be adapted to their level. Facilities will be within the reach of beneficiaries who will be able to maintain them both technically and financially. The beneficiaries trained will be able to develop more marshlands after the project.
6.2.2 The association agriculture-livestock is a major factor in the management of land and the sustainability of production systems. With animal manure, farmers who practice mixed farming will be able to replenish in part the depleted soils. With the production of crop residues and the production of fodder, forest fallow and livestock will intensify. The innovative activities relating to feedlots, bee-keeping and cottage dairy produce will generate more incomes which will make it possible to assist village associations in the management of veterinary pharmacies, watering places and to replenish the savings and credit funds. 6.2.3 For actions relating to land use planning, Governments will be responsible for the maintenance of feeder roads as part of their annual road maintenance programmes. Governments should continue to assist forest departments in managing forests on completion of the project and in compliance with land management and development plans. Beneficiaries should care for watering places and the committees responsible for these watering places will collect resources from users. Pumps will be repaired by repairers trained under the project. Local well-sinkers who will be associated in the rehabilitation and construction of the watering places should be in a position to maintain the facilities.
6.3 Main Risks and Mitigation Measures
6.3.1 Regional integration requires marked determination of the member States and effective application of measures to enhance the integration. Within this context, the OMVG member countries intend to adopt measures to simplify administrative procedures at the borders, thereby facilitating inter-State trade. All the project activities will be conducted by the beneficiaries, at their initiative, in the village lands. In this regard, there are some risks relating to the capacity of the producers as well as the guarantee and security of the rural and village lands. Important training and functional literacy programmes will be organized to develop the technical and institutional capabilities of the producer and village associations. The OMVG member countries should undertake to ensure land security on the basis of village land development and management plans and they should delegate management of the forests to the village communities.
6.3.2 The actions to be backed by the project require very close coordination. The OMVG steering Committee and the project structures will ensure proper coordination of the activities and will facilitate wider consultations between the member countries and between the populations. The sustainability of the project will also depend on the performance of the savings and credit system set up and the sale of the products at remunerative prices. The project will facilitate the establishment of savings and credit funds. Improvement of the road infrastructure and support to the gathering and dissemination of information on the markets as well as organization of the marketing activities will make it possible to sell the products at more attractive prices. The objective is to ensure that in the long run the populations are able to meet the financing needs of their basic activities. The full success of the project will depend on the implementation of the functional literacy programmes, which should provide the populations with the technical tools and adequate knowledge.
7. PROJECT BENEFITS 31
7.1 Financial Analysis
Under the project, incomes will increase thanks to more production which will enable the beneficiaries to meet new expenses for investment, inputs and loan charges. As far as farmers are concerned, considering the average cash income for years 5 to 7, with the reference situation (1997), the improvement in Guinea will be +101% for type 1 farms, +84% for type 2 farms. In Guinea Bissau, the improvement will be + 78% for type 1 farm and +98% for type 2 farms. In Senegal, the impact is lower but remains constant: +64% for type 1 farms and +33% for type 2 farms. For the large-scale stockbreeder, who will invest in two types of projects (manure sheds and three animal fodder units), income will increase from CFAF 330,000 to 512,000 or an increase of CFAF 182,900 (+55%). The small-scale farmer with only a shed will also register an increase of 32% mainly from milk production. Village forest logging will generate cash income of CFAF 1.5 million per annum per village group. The logging of state owned forests will generate an overall cash income of about CFAF 100 million per annum.
7.2. Economic Analysis
7.2.1 The economic analysis of the project which aims to determine its relevance for the four countries is based on a comparison between the situation before and after the project and on the basis of the economic rate of return. The ERR was calculated over a 15 year period and takes into account earnings from the additional farm and livestock productions including cottage dairy produce as well as products from forests involved in the project. The uncertain incomes of the cottage industry sector, SMEs/SMIs were not taken into account. The costs represent the additional expenses, investments and operating, committed by operators. The economic prices are shadow prices based on world prices.
7.2.2 The ERR amounts to 19.82% excluding expenses for maintaining the environmental balance and for accommodating measures: training, health, education, since all these expenses will be of benefit to rural production and other activities. This rate confirms the reason for the technical and economic choice of the project whose components justify the back-up socio-economic investments.
7.2.3 The project will have spillover impacts on the entire economy of the area: development of markets, processing, conservation, marketing, transport, communication, etc. The project will therefore revive the regional economies through direct and induced effects of additional cash income estimated at around CFAF 1,280 million, injected annually into the area. The project will also contribute to a more balanced diet, with a grain surplus of around 267.5 kg/person/day, higher than the norms set by FAO. The project will make it possible for the area to export about one third of its agricultural production including livestock products (meat, milk, honey), given its physical potential.
7.3 Analysis of the Social Impact
7.3.1 The project to develop and manage natural resources initiated by OMVG should be given the credit of fostering the socio-economic integration of the four members: Gambia, Guinea, Guinea Bissau, Senegal. It should also be given credit for improving sustainably the socio-economic conditions of the people in the area: i.e about 214 400 people working on 22 000 farms at full development. The project will enable the restructuring of the rural world and the establishment or overhaul of socio-economic structures: associations, groups, cooperatives, etc. It will encourage greater consultation between the various government services, local communities, officials in charge of groups and associations with a view to an optimum management of shared resources. The project will contribute, through the contribution of reflection elements in the preparation of national policies promoting integration (agriculture, animal health and environment), to solving local and regional problems regarding the management and protection of natural resources (pest and disease control and 32 animal protection). Lastly, the project will also contribute to building the capacity for the existing operators and the emergence of small and medium enterprises.
7.3.2 Socio-economic studies have made it possible to identify problems and solutions to them. The project will make it possible to solve the social problems of the most disadvantaged social groups particularly by: (i) facilitating access to basic infrastructure to the most disadvantaged: roads, feeder roads, health, education but more so, drinking water, thanks to the rural water supply system; (ii) facilitating the access to jobs in the rural areas through a revival of the economy by creating long-term skilled and unskilled jobs in processing, trade, transport; and (iii) enhancing the income of the most underprivileged by distributing incomes from the additional productions of the area and salaries from new jobs.
7.3.3 The socio-economic infrastructure: roads, feeder roads, water supply, and training will help lay the foundation for the economic integration of the area. The net increase of the value added and cash income which the beneficiaries will earn (30 to 100%) will help to revive the regional economies directly and indirectly. Accordingly, through the various project support activities, poverty will be reduced in the project areas of Basse in Gambia, Velingara in Senegal, Koundara in Guinea, Gabu in Guinea Bissau.
7.4 Sensitivity Analysis
The project is hardly sensitive to variations in production and costs. Indeed the rate of return will stand at 17.24% if the income falls by 10% and it stands at 17.48% if the costs increase by 10%. A 10% decline in income combined with a 10% increase in costs lowers the ERR to 15.02% and shows that the project is profitable for the economies of the OMVG member countries.
8. CONCLUSIONS AND RECOMMENDATIONS
8.1 Conclusion
The Natural Resources Development and Management Project combines complementary approaches. Located along the borders of the member countries, it will enhance regional integration by strengthening trade and concerted natural resource management in The Gambia River basin. At the local level, the project will promote the rural areas. The participatory approach to the management of local lands will enable the populations to take ownership of the management of their environment and to undertake sustainable production therein. The beneficiaries will manage their own development and with the support of the project, they will acquire the skills required to ensure sustainability of the achievements after completion of the project. From the socio-economic standpoint, the project will have a considerable impact. The project will further enhance integration of the populations living along the borders by creating strong economic ties among them. It will help to reduce poverty within the project area, improve the income and health of the populations and raise their level of literacy, while protecting ecosystems of the project area.
8.2 Recommendations and Lending Conditions
It is recommended that a loan not exceeding UA 11.69 million be granted to The Gambia, Guinea, Guinea-Bissau and Senegal and broken down as follows: The Gambia - UA 2.03 million; Guinea – UA 3.50 million; Guinea-Bissau - UA 3.26 million; and Senegal – UA 2.90 million, subject to fulfilment of the following special conditions:
A. Conditions Precedent to First Disbursement 33
The first disbursement of project funds ahall be subject to fulfilment of the following conditions by OMVG and the borrowers to the satisfaction of the fund:
i) have OMVG supply evidence of the creation of the Steering Committee comprising representatives of the member States, the Directors of Agriculture, Livestock, Forestry, Public Works and Environment; representatives of the populations benefiting from the project, OMVG and the parties concerned (paragraph 5.2.4) ;
ii) have OMVG supply evidence of the creation of the project unit (paragraph 5.2.2) ;
iii) have OMVG supply evidence of the appointment of the Director of the Project whose qualifications and experience would have been deemed satisfactory by the Fund (paragraph 5.2.2); and
iv) have OMVG supply evidence that the loan agreement with the Islamic Development Bank has been signed or that the latter has given an undertaking to finance the said project (paragraphs 4.11.1 and 4.11.6).
Each borrower shall:
i) give an undertaking to guarantee the local communities, associations and village groups, management of the local lands and forests on the basis of land development and management plans (PAGT) and appropriate legal procedures acceptable to the Fund and compatible with the success and sustainability of the project activities (paragraph 6.3.1) ;
ii) give an undertaking to pay the budgetary allocations required to enable OMVG to finance its share of the project costs in keeping with the financing plan (paragraph 4.11.7); and
iii) supply evidence of transfer to OMVG, in the form of a grant, the loans granted for financing the projects; and the memorandum of understanding for the transfer of the loan should be submitted to the prior consideration and approval of the Fund (paragraph 8.2.1).
B. Other Conditions
Furthermore, each borrower shall:
i) supply the PAGT and the memorandum of understanding for the management of the local lands signed between the Governments and the village associations not later than 31 December 2001 (6.3.1); and
ii) pay the annual budgetary allocations not later than 31 March of each (paragraph 4.11.7). MAURITANIE
Podor
OCEAN Saint-Louis ATLANTIQUE
Louga
SENEGAL Mamari Velingara Thiès Dakar Diourbel MALI
Ndangane Kaolack Nganda Tambacounda
Banjul Basse GAMBIE Vélingara
Kolda Sédhiou Kédougou Ziguinchor Koundara GUINEE-BISSAU Bafata Gabu
Bissau Gaoual
GUINEE
Zone du projet
Cette carte a été établie par le personnel du Groupe de la BAD exclusivement à l’usage des lecteurs du rapport auquel elle est jointe. Les dénominations utilisées et les frontières figurant sur cette carte n’impliquent de la part du Groupe de la BAD et de ses membres aucun jugement concernant le statut légal d’un territoire ni aucune approbation ou acceptation de ses frontières. ANNEX 2 Page 1 of 2
OMVG : NATURAL RESOURCES DEVELOPMENT AND MANAGEMENT PROJECT Summary of Project Cost Estimates by Component and by Country COMPONENTS Gambia Guinea Guinea Bissau Senegal Total M. UA M.CFAF M. UA M.CFAF M. UA M.CFAF M.UA M. CFAF M. UA M. CFAF A. IMPROVEMENT OF THE PRODUCTIONS A1.Improvement of Crop Production 0.24 218.78 0.42 380.91 0.45 414.38 0.30 275.69 1.41 1,289.76 A2.Irrigation Schemes 0.23 210.63 0.63 580.51 0.30 270.83 0.18 162.24 1.34 1,224.21 A3. Improvement of Animal Production 0.18 166.88 0.28 257.60 0.21 196.92 0.27 244.19 0.94 865.59 A4.Rural Water Supply and Stock Watering 0.64 584.48 1.01 924.00 1.26 1157.00 0.96 879.00 3.87 3,544.48 A5.Forest Management 0.04 32.86 0.44 398.64 0.47 429.65 0.29 265.76 1.23 1,126.91 A.6 Environmental Monitoring 0.02 15.00 0.02 15.00 0.02 15.00 0.02 15.00 0.07 60.00
TOTAL A 1.34 1228.63 2.79 2556.66 2.71 2483.78 2.01 1841.88 8.85 8,110.95
B. IMPROVEMENT OF THE ROAD INFRASTRUCTURE
Total B 1.29 1185.71 0.44 405.10 0.19 174.80 0.57 520.00 2.50 2,285.61
C. BACK-UP MEASURES
C1. Boosting of Women’s Activities 0.06 50.80 0.07 67.30 0.07 67.30 0.06 57.40 0.27 242.80
C2. Training 0.06 58.69 0.13 118.92 0.11 105.08 0.09 81.98 0.40 364.67
C3.Health 0.20 181.34 0.28 258.51 0.27 249.74 0.29 268.11 1.05 957.70
C4. Associative Credit 0.07 65.00 0.07 65.00 0.07 65.00 0.07 65.00 0.28 260.00
TOTAL C 0.39 355.83 0.56 509.73 0.53 487.12 0.52 472.49 1.99 1,825.17 ANNEX 2 Page 2 of 2
OMVG : PROJET DE MISE EN VALEUR ET DE GESTION DES RESSOURCES NATURELLES Coût récapitulatif du projet par composante et par pays
COMPONENTS Gambia Guinea Guinea Bissau Senegal Total M. UA M.CFAF M. UA M.CFAF M. UA M.CFAF M.UA M. CFAF M. UA M. CFAF D. Studies and Technical 0.21 190.85 0.21 190.85 0.21 190.85 0.21 190.85 0.83 763.41 Assistance E. PROJECT MANAGEMENT E1. Investments 0.12 107.00 0.12 107.00 0.12 107.00 0.12 107.00 0.47 428.00 E2.Operation 0.44 398.79 0.44 398.79 0.44 398.79 0.44 398.79 1.74 1,595.14
E3-Auditing of the Accounts 0.04 38.75 0.04 38.75 0.04 38.75 0.04 38.75 0.17 155.00
TOTAL E 0.59 544.54 0.59 544.54 0.59 544.54 0.59 544.54 2.38 2,178.14
TOTAL BASE COST 3.83 3,505.56 4.59 4,206.88 4.24 3881.08 3.90 3,569.76 16.55 15,163.28
Physical Contingencies(5%) 0.19 175.28 0.23 210.34 0.21 194.05 0.19 178.49 0.83 758.16 Base Cost + Physical 4.02 3,680.84 4.82 4,417.22 4.45 4075.14 4.09 3,748.25 17.38 15,921.44 Contingencies Provision For Price Escalation 0.41 369.70 0.57 527.03 0.53 485.95 0.47 434.67 1.98 1,817.35 (3% compound)
TOTAL PROJECT COST 4.43 4,050.54 5.40 4,944.25 4.98 4561.09 4.56 4,182.92 19.36 17,738.79 ANNEX 3
NATURAL RESOURCES DEVELOPMENT AND MANAGEMENT PROJECT
ORGANIZATION CHART OF THE PROJECT
OMVG Executive Secretariat
Research, Planning and Department of Agriculture Administration and Infrastructure Finance Department Department
Project Coordination Unit