Report No. 2730-CV The Republic of Cape Verde Economic Development in a Small Archipelago Public Disclosure Authorized Volume II: Annexes May 30, 1980 Western Africa Regional Office FOR OFFICIAL USE ONLY Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS The currency unit is the Cape Verde escudo, which is presently pegged to a basket of 18 currencies. Cape Verde escudos per US dollar Period Period Average End of Period 1970 28.6 28.8 1971 28.2 27.6 1972 27.0 27.0 1973 24.7 25.8 1974 25.4 24.6 1975 25.6 27.5 1976 30.1 31.5 1977 33.9 33.9 1978 35.0 35.0 1979 on 35.0 (assumed) - GOVERNMENT FISCAL YEAR January 1 - December 31 FOR OFFICIAL USE ONLY THE REPUBLIC OF CAPE VERDE: ECONOMIC DEVELOPMENT IN A SMALL ARCHIPELAGO Table of Contents VOLUME II Page No. ANNEX A: Proposed Project outline Fisheries .1.................... 1 Interisland Shinping..................... 3 Agricultural Sector ...................* .... ......... 5 Technical Assistance to the Ministry of Rural Development ..................... .......... 5 Ribeira Seca Irrigation Project .... 6 Ribeira da Barca Rural Development Project ................... 8 ANNEX B: Ongoing and Planned Investment projects Sector Rural Development and Water Resources . .10 Fisheries. 16 Inidustry .. 19 Transport .............. ......... .... 20 Power. 23 Communications .................. ....... 24 Water Supply ..................... a............. 25 Education .. ........... ..... 26 Health ................ ; .. .. 28 Economic Planning .. 29 Tourism ........ 30 This document has a restricted distribution and may be used by recipients only in the performance of their officil duties. Its contents may not otherwise be disclosed without World Bank authorization. LIST OF TABLES 1. Fisheries Page 1.1 Survey of Artisanal Fisheries, 1977/78 ..... ............... 31 1.2 Small-scale Fisheries Production by Island ..... ........... 32 2. Interisland Shipping 2.1 Foreign-going Shipping Traffic ...... ...................... 33 2.2 Interisland Shipping Traffic .... .......................... 34 2.3 Interisland Shipping Tariffs . .. 35 ABBREVIATIONS AND ACRONYMS AfDF African Development Fund BADEA Arab Bank for Economic Development in Africa BCV Banco de Cabo Verde BNU Banco Nacional Ultramarino EMPA Empresa Publica de Abastecimento FAO Food and Agriculture Organization GDP Gross Domestic Product ILO International Labour Office IMF International Monetary Fund JAP Junto Autonomo dos Portos de Cabo Verde MDR Ministry of Rural Development NDB National Development Bank of Portugal PAIGC African Party for the Independence of Guinea-Bissau and Cape Verde SCAPA Sociedade de Comercializacao e Apoio a Pesca Artesanal UNCTAD United Nations Conference on Trade and Development UNESCO United Nations Educational, Scientific and Cultural Organization UNDP United Nations Development Programme USAID United States Agency for International Development WFP World Food Programme I I I INTRODUCTORY NOTE The information presented here is intended to support the work of institutions involved in project identification and coordination in Cape Verde. Annex A provides a description of new projects identified by the Bank for possible future financing by external aid agencies. Annex B consists of a list of ongoing and planned investment projects, provided by Government, which is intended to be useful to institutions starting project operation in Cape Verde and who would like to have an overall idea of the distribution of investment by sector, including information on project cost and external sources of finance. I - 1 - ANNEX A PROPOSED PROJECT OUTLINE FISHERIES 1. Fisheries is a high-priority sector in Cape Verde with considerable potential and a number of constraints at present which indicate the need for a carefully planned development project. As indicated in the text, the major problems include the development of better marketing channels, the improvement of small-scale storage facilities, and the selection and dissemin- ation of appropriate fisheries technology to exploit the estimated resources. This outline presents the main components to be considered in a fisheries project. Subsequent to the Bank's mission, an FAO preparation team elaborated a fisheries project which includes many of these components. Coordination with Resource Survey 2. This assumes that a resource survey of the Northwest Africa fisheries will be carried out under UNDP/FAO/bilateral auspices in 1980 and 1981. It will then be important for the Cape Verde Government to be able to interpret the implications of this survey, and technical assistance will probably be required. Experimental Fishing Program 3. Some 10-20 boats, of say 10-15 m, could be purchased and tested systematically with various gear. These boats, potential replacements for the existing 4-6 m boats, could be extensively demonstrated with local fishermen to refine the design characteristics and operating methods. Such boats would have better rough-weather capabilities and an extended range compared to existing smaller boats, but would require a more sheltered harbor. Technical assistance would be provided to operate the experimental/ demonstration program. Small Refrigeration Units 4. A major effort would be to overcome the present shortage of refrig- erated storage which makes marketing difficult for remote fishermen. Develop- ment of small decentralized refrigerated depots and ice-plants is proposed, as well as other improvements in fish handling and processing. Refrigerated storage at Praia should be considered. The provision of suitable interisland transport for fish should be linked to the storage effort. Sal Refrigeration Plant 5. The fish refrigeration plant and live lobster tank at Sal, which is partially constructed but was never completed, would be placed in operation. This would involve construction work on the plant and on certain harbor facili- ties as well. ANNEX A Marketing 6. Technical assistance would be provided for the development of viable export marketing channels and to improve the linkage between small-scale fishermen and the export markets. Local Boat Construction 7. The possibility of expanding the local capacity for building fishing boats, in fiberglass or steel, should be considered either in a first or a subsequent fisheries project. Fiberglass construction of fishing boats is already being carried out on a small scale, with a 6 m design. The Mindelo ship repair facilities might be expanded to include steel fishing boat con- struction. Fishing Boat Credit 8. A key issue is whether this project should include arrangements for financing the purchase of fishing boats by fishermen. If such a component were included, the ownership structure and credit procedures would have to be worked out. Survey of Fishing Port Sites 9. The project should include a survey and assessment of potential fishing port sites suitable to boats of 10-15 m which would presumably be too large for beaching. The objective would be to determine the optimal sites bearing in mind the costs and benefits of decentralized small-scale fisheries. Summary 10. A fisheries project consisting of some or all of the above-mentioned components should be prepared. Preparation would require specialists including an economist, a fish processing specialist, a fish marketing expert, and a fishing fleet manager/master fisherman. Technical assistance and training requirements should be kept in mind and specifically addressed in the report. - 3 - ANNEX A PROPOSED PROJECT OUTLINE INTERISLAND SHIPPING 11. Interisland shipping in Cape Verde plays the communications role normally associated with roads in other countries. It provides the means for passenger and freight exchange between the islands, and links the major import/export terminals of Mindelo and Praia with the lesser ports. The interisland fleet, managed by the Government-owned enterprise ARCAVERDE, is in need of replacement and expansion. At the same time, small port facilities need to be improved and the revitalization of Mindelo port deserves study. A project addressing these high-priority needs, and including the necessary technical assistance, could consist of the following components: - purchase of vessels - small port construction/repair - study of Mindelo port - management assistance and navigation training - interisland transport study. A. Interisland Transport Study 12. A study of interisland transport requirements, and the optimal vessel/port solution, should be conducted. The entire distribution system, including storage facilities, harbor facilities, and vessels should be analyzed. Various vessel types should be considered. The impact of air transport should be included. A least-cost solution yielding the desired service frequency should be found in order to determine the characteristics of vessels to be purchased and port improvements. B. Purchase of Vessels 13. The purchase, new or second-hand, of vessels such as the following: Interisland Freight and Passenger Vessels. Generally, the ARCAVERDE inter- island vessels are very old and need to be replaced; they have high maintenance costs. The number and type of vessels should be based on traffic and desired frequency of service. A roll-on/roll-off vessel such as a landing craft of 300 - 500 tons might be especially