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World Bank Document Documentof The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized R_tt N. 7833 PROJECTCOMPLETION REPORT Public Disclosure Authorized NIGERIA IMO OIL PALMPROJECT (LOAN 1191-UNI) RIVERS OIL PALMPROJECT (LOAN 1591-UNI) M-NITORINGAND EVALUATION UNIT FEDERALDEPARTMENT OF AGRICULTURE Public Disclosure Authorized AND RISONPALMLIMITED JUNE 1988 Public Disclosure Authorized This doane has a redticted &s&uniu ad may be usedby ip-wb IE "o _ ekomayaddd ddmv owe Its k be dbloand WikW FroaoFICIAL USEONLY* THEWORLD SANK Washington.D.C. 20413 US.A. 04*of0kft1tt*Gsnht Opwatimfdvahatu June 14, 1989 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Nigeria Imo Oil Palm Project (Loan 1191-UNI) and Rivers Oil Palm Proiect (Loan 1591-UNI) Attached, for information,is a copy of a report entitled "Project Completion Report on Nigeria - Imo Oil Palm Project (Loan 1191-UNI) and Rivers Oil Palm Project (Loan 1591-UNI)T prepared by consultants engaged by the implementingagency (RISONPALM)and the Tree Crops Monitoring and Evaluat.on Unit of the Federal Department of Agriculture, Nigeria with an overview memorandum prepared by the Africa Regional Office. No audit of this project has been made by the Operations Evaluation Department at this time. Yves Rovani by Ram K. Chopra Attachment This document has a restricteddistibution and may be used by recipients onlyin the perfortmance of their officialduties. Its contents may not otherwise be discosed without World Dank authoisation. FOR OFFCI USE ONI PROJECT COMPLETIONREPORT NIGERIA IMO OIL PALM PROJECiT(LOAN 1191-UNI) RIVERS OIL PALM PROJECT (LOAN 1591-UNI) Table of Contents Pate No. Preface ............................ i BasicData Sheets .................................... ii EvaluationSummary ...... *o...... .... o. ......... vi Overview .......... .. 0.. ...... ....... ....... ix SMALLHOLDEROIL PALM PROJECTS ITO AND RIVERS STATES Chapter 1 INTRODUCTIONAND PROJECTAREAo .................... 3 ,.1 Introduction..o..o........ ..o..*................................ 3 1.2 The ProjectArea.o ..... .......... .** ..* ... 4 1.2.1 Imo StateSMUoo ............................... ................. 0 4 1.2.2 RiversState SMU ....... ... .......*. .S 5 Chapter 2 PROJECT IDENTIFICATIONAND DESCRIPTION.o........... 7 2.1 Imo State SMU........o......................... 7 2.1.1 Project Identification,Preparation and Appraisal.. 7 2.1.2 Project Description.....o....o..... o.......... 7 2.l.3 Palm Oil Processing Mills................... ... 8 2.1.5 Monitoring and Evaluation.. ...... oo.......... 9 2.1.6 Main Issues Raised During Loan Negotiation........ 9 2.1., Loan Effectiveness.-..o o...... ooo.. ..... o.... 10 2.1.8 Project Cost.o*..o.... 0..o..o.o... ....0....................... 10 2.1.9 ProjectFinancing Plan .................. .... 11 2.2 Rivers State SHU............................. 0.. 12 2.2.1 Project Identification,Preparation and Appraisalo. 12 2.2.2 Project Descriptiono......... o........ .o...... 12 2.2.2.1 P'LantingProgramme.......o. .... .. ..... 13 2o2.2.2.2Palm Oil M1ills.. ..... .. ..o. ...... ....*. 13 2.2.2.3 FruitCollection System....... ........... 13 2.2.2.4 Purchaseof FFB. oo ........... .......... 13 2.2.2.5 RisonpalmLimited.-o ...... .. .0..... .. .... 14 2.2.2.6 Monitoring and EvaluationUnit (MEU) ..... .... 14 2.2.3 Main Issues Raised During Loan Negotiation... 14 2.2.4 Loan Effectivenesso..oo..... ..... .o........... ... 14 2.2.6 Signing of Loan and ProjectAgreements.. ...... 15 2.2.7 Project Cost......... ............................... 15 2.2.8 Project FinancingPlan ...... ...... 0.0000..... 17 Thisdocument has a restricteddistribution and maybe used by recipientsotly in the performnance of their officialduties. Its contents may not otherwisebe disclosedwithout WorldBank authorization. Table of Contents (continued) Chapter 3 LOAN EFFECTIVENESSAND PROJECT START-UP............ 18 3.1 Ima State la ................. 1 3.1.1 Loan Effectiveneas .............. ....... 18 3.1.2 Project Start-up................................... 19 3.2 Rivers State SMU ...................................19 3.2.1 Loan EfUectiveness....... ..................... ... 20 3.2.2 Project Start-up................................... 21 Chapter 4 PRlJECT IMPLEMENTATION........................ ,....a 22 4.1 Imo State SMU.. *.#..,............. s*.. 22 4.1.1 Planting Progrswwe................................ 22 4.1.2 Muraeries..........................................23 4.1.3 Registrationo FFarmers............................ 24 4.1.4 Land Clearingand Preparation..................... 25 4.1.5 Grant and Credit Scheme..... ... .......... .. 25 4.1.5.2 Seedlings....",.............. 26 4.1.5.3 Fertiliser ............... 277................... 4.1.5.4 Cvre Collars............... 0 ........ ..... 28 4e.1.5.5 Cover Crop and Itrrplg..................,.28 441.5.6 C*ls 29 4 1.5.7 Farmer Participation....... .................... 30 4.1.6 Farm Maintenance....................... ........ 31 4.1.7 Labour Costo..................................*.... 31 4.1.8 RegisteredCo operatives........... ... 32 4.1.9 Vehicles andsachinery... ........... .. ... 32 4.1.10 Road Construcion andNaintena"ce .................. 33 4.1.12 Cost of Fixd Assets........0 ......... ...... ..... 37 4i.1.12.1Bulldints .................................... ...........37 4.11.12.2Vehicles ................ .................... .*......... 37 4.1.12.i Farm Plant, Heavy Machineryand Equipment.......... 38 4.1.12.4 Office/HouseholdFurniture and Equipment...... ..... 38 4.1.13 OperatingCosts ....................................38 4.1.13.1 Cost of Road construction.............. *.... .. 38 4.1.13.2 NurserylFieldDevelopment Operating ...............Costs 39 4.1.13.3 Loan to Farmers.............. .. ........ 40 4.1.13.4 AdministrativeOverheads..... ............ ......... 40 4.1.14 Reporting.......................................... 40 4.1.15 Monitoringand Evalu stion ................. 41 4.1.16 Mill and Mill Costs................................ 42 4.1.16.1 Mill Procurement............ *............ ..... 42 4.1.16.2 Two Five tonF3/hr Mills......... ........l.... 42 4.1.16.3 Fruit CollectionTrucksu................. go... *. 44 4.1.16.4 Equipmentfor the Extemeionof 20 ton FFB/hr Mill.. 45 at Ohaji Table of Contents (continued) 4.1.16.5 Other Procuremonts ........... .......... 46 4.1.16.6 Running Costa..................................... 46 4.2 Rivers State SMU .......... .......... ....... 47 4.2.1 PlantingProgV4r110 . .................. 47 4.2.2 Nurseries.......................... * .9...... 48 4.2.3 Registrationof Fsrmers , . ...... 5O 4.2.4 Land Clearingand Preparation...................... 50 4.2.5 Grant asdCredit Schemo............................ 50 4.2.5.1 Cawh Loan. ................. 50 4.2.5.2 Seedllngs ...................................... 51 4.2.5.5 CoverCropandlntercropping....................... 54 4.2.5.6 Chemicals...... ..... *.. .... ........... .... ... .. ... 54 4.2.5.7 Farmer Participation............................... 55 4.2.7 Farm Maintenance................................... 55 4.2.8 Labour Costs....................................... 56 4.2.9 RegisterodCo-operatives ........................... 56 4.2.10 Vehicles and Machinery............................. 57 4.2.11 Road Constructionand Maintenance................. 57 4.2.12 Costs.............................................58 4.2.12.1 Land andBuildings............................. 59 4.2.12.2 Vehicles..................................... 59 4.2.12.3 Farm Plant, Heavy Machinery and Equipment.......... 59 4.2.12.4 Office/HouseholdFurniture and Equipment........... 60 4.2.13 OperatingCosts.................................... 60 4.2.13.1 Cost of RoadConstruction.......................... 60 4.2.13.2 Nursery/FieldDevelopment Cor,ts .................... 60 4.2.13.3 Loan to Farmers.......................... .. 60 4.2.13.4 AdministrativeOverheads..... ...................... 60 4.2.14 Reporting.............................. .. 60 4.2.15 Monitoringand Evaluation.......................... 61 Chapter 5 PHYSICALAND FINANCIALPERORMANCE ........... 62 5.1 Imo State SMU................................... 62 5.1.1 Physical Performance................... .......... 62 5.1.1.1 SmallholderProduction. .99.. ........ 62 5.1.1.2 Fruit CollectionSystem............................ 63 5.1.1.3 State Price PolicyCommittee....................... 66 5.1.2 Milling Facilities.................................66 5.1.3 FinancialPerformance ....*..*....................9 .. 67 5.1.3.1 Project Funding........... ........... 67 5.1.3.2 Method of IBRDDisbursement .................99 o... 68 5.1.4 Cash Flow and Rates of Return (FRR and ERR)........ 68 a Table of Contents (continued) Chapter 6 ORGUNIZATIONAND MNAGEMENT........................ 76 6.1 ISo State SMU............ ......... ........ 4..... 76 6.1.1 ImplementationArrangement ........................ 76 6.1.2 The SmallholderManagement Unit (SU) ............... 76 6.1.3 Orficc Locations................. .................. 76 6.1.4 ManagementStructure ............................... 77 6.1.5 Staffing........................................... 78 6.1.6 StaffRecruitmentadTrainingd..................... 79 6.2 Rivers State $MU...................................80 6.2.1 ImplementationArrangement ......................... 80 6.2.2 The SmallholderManagement Unit (SMU).............. 80 6.2.3 Office Location.................................... 81 6.2.5 Staffing........................................... 81 6.2.6 Staff Training.... ...................
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