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PDABB256.Pdf 0 P o- F T_r_ o : ,, -1 A1 787 ya a I- L J RO-7NMER, R E'OF~r 1C PRpY- TITLE 0 ROJ CT~ ______ 37 :o e-he 'f ('t!"~ -'l 00 -r on -f~l T;IO.Su IE .L; , c FI A 4)- OrNERE~MALOCOT (SOORIOR EOUIVALENT c L c ALrF0 1T:TO70C AIhPR6RAt PRPSDOTAL PRPRAE 710 Ioa 4 BCODEPPMAR''~E ST7.L~21; PRIM RTTCH I ANTOPROE ~G~4 4K1O JLA TOAL 1N2ET3VAL00 -- ~~~~ -- - - ------ 1 0 03 A API ORATION -;A 4, K''--I "' COD >j C,~O G'RAN- C LOAN-& F GRANT; - L0AC N- ISG~All J' L6LAN. 'L,G'' N1T NL N;'4'44TH,.14;.' 4 F4>f~YL4-4' 0',44'LFE.FPR J C , A 1N C E UL AR . P I APT O I ' ~ <A '~. '4i 4 C! G;A R4A T P,~ L 0_ AN-4~~ 19>44"ANT !oL'A'-4RN4, _ _ _ _ _ _ _ _ ~~~4~~~A'~~~~'A''~~~~ -l50IIAIGOFIECERNE,1)0 ''I 7WDTEDCMN EEV))~A 4 4; (2 ) ' 6A' ' '4 ' (3)I'A~WO FRAD! CU ~ 44 4 4. C7NU"r 7 ET-DT O IT~UIOJ''~~ TQAL 4 "~A 4441,0brh0 13._ _ __ _ __ IN__DATA__ IA O;'EEC _ __ _ A__CE4AEI__CHANGE_ T I__ _ __ SHE_ __TD _ T . L CK 2, 1,,O 5 F dn .- o -il 444 TI'-E D E -IG 7~~~~~~', Die ,.T tr Cu-rn ~~l i j1'4 444 ?":', A~ 1 0-A7 6)'' -'30-;'4444. 4 - A-,4 <A-~;- '~>~ ~ -;' 44-, ->' -44 ANNEXES ANNEX I - LEGAL EXHIBITS 1. 611(e) Certification 2. Loan Application 3. Statutory Checklist 4. Draft Loan Authorization ANNEX II - PROJECT EXHIBITS 1. PID Guidance Message 2. Logical Framework 3. Map ANNEX III - TECHNICAL EXHIBITS 1. IEE 2. Engineering A. Construction Cost Data B. Facility Sketches C. Construction Cost Estimate: Drying and Storage Facility D. Scope of Work for Consultant E. Construction Cost Estimate: Operation and Maintenance Facility 3. Equipment Lists A. Equipment List for Seed Production and Testing Facilities B. Farm Development Equip.ent List C. Equipment List for ',pplied Research and Extension Training D. Equipment List for Consultant Engineers n"OJECT "AE7 GUYANA: SMALL FARM DEVELOP1ENT - 2hACK ,US!!EG!ON TABLE OF CONTENTS PAGE PART I - PROJECT SUMMARY AND RECOMMENDATIONS .................. A. Recommendations ..................................... I B. Borrower/Grantee .................................... I C. Project Summary ..................................... 1 D. Summary Financial Plan .............................. 3 E. Summary Rationale ........................... ....... 4 F. Summary Findings ................................... 8 G Project Development Team ............................ 9 I Conditions and Covenants ............................ 9 PART II - PROJECT BACKGROUND ...................................... A. Project Setting: The Country ....................... 14 B. Macroeconomic Conditions ............................ 14 C. Role of Agriculture in Economy ...................... 23 D. The Problem ......................................... 25 E. GOG Priorities and Response ......................... 30 F. A.I.D. Activities in Guyana ......................... 31 G. Other Donor Assistance .............................. 34 PART III - PROJECT DESCRIPTION ..................................... A. Chronology of Project Development ................... 37 B. Specific Area Production Problems ................... 38 C. Project Goal and Purpose ............................ 63 D. Global Project Description .......................... 64 E. A.I.D. Participation ................................ 73 F. Financial Plan ..................................... 103 PART IV - PROJECT ANALYSES ....................................... A. Technical Analysis ................................. 113 B. Institutional Assessment ........................... 133 C. Economic Analysis .................................. 137 D. Social Analysis .................................... 148 E. Environmental Assessment ........................... 151 PART V - IMPLEMENTATION ARRANGEMENTS ............................ A. Project Organization and Implementation ............ 152 B. Relationship Between A.I.D. and the World Bank ...... 155 C. Schedule of Major Events ........................... 157 D. U.S.A.I.D. Monitoring Requirements ................. 157 E. Procurement Procedures ............................. 158 F. Disbursement Procedures ............................ 159 G. Evaluation ......................................... 159 H. Reports ............................................ 160 4. Project Component Budgets A. Technical Assistance 3udget B. Engineering Consultant Budget C. Participant Training Budget 5. Technical Assistance Scopc of Work A. Agricultural Engineer - Farm Machinery B. Agricultural Engineer - Training C. Water Management Specialist D. Extension Specialist E. Research Specialist F. Farm Management Specialist G. Communications Specialist H1. Soils/Fertility Specialist I. Pest Management/Weed Control Specialist J. Seed Technology Specialist K. Vegetable Crops Research Specialist 6. GOG Staff to be Assigned to Project 7. Financial Plan A. Global Project Financing B. Projected Procurement by Major Financing Category C. Global Project Time Phased Implementation Plan ANNEX IV - SOCCIAL SOUNDNESS ANALYSIS ANNEX V - FARM BUDGET ANALYSIS PART I - PROJECT SUMMARY AND RECOMMENDATIONS A. Recommendations The Project Development Team recommends the following: 1. Approval of the Project described herein for a total cost of U.S.$8,900,000. 2. Approval of an AID grant of U.S.$1,400,000. 3. Approval of an AID loan of U.S.$7,500,000. Loan terms: 20 years, 10 years grace period 2% per annum during the grace period, 3% thereafter. B. Borrower/Grantee The Borrower/Grantee will be the Government of Guyana (GOG) acting through the Ministries of Finance and Economic Development. The Ministry of Agriculture will be responsible for carrying out the Project through the Hydraulics Division and the Guyana Rice Board. C. Project Summary The purpose of the Project is to increase the production of rice and food crops by 6000 small farm families in the Black Bush Region of Guyana. Eighty-three percent of the farms in the project area are ten acres or less and 58 percent are five acres or less. For these two farm sizes, per capita income is presently about U.S.$40 and $75 respectively, and will increase to U.S.$65 and U.S.$115 as a result of the project.(I) The project will include works to improve and in­ crease the water supply, to rehabilitate and improve the (1) For purposes of consistency among the various international donors contributing to the overall U.S.$42.8 million Project baseline statistics gathered by the IBRD have been used throughout the Project Paper. This includes statistics on cropping patterns, yields, and on-farm income. (See economic analysis Section IV C.1). -2­ irrigation and drainage systems, to improve on-farm develop­ ment and improve agricultural supporting services and other facilities in order to increase rice production in the project area. Project inputs will strengthen delivery systems for rice and food crops to the targeted farm families so that these recipients can more efficiently utilize existing technology and come closer in achieving potential productivity given systematic inputs for land preparation and development. During the infrastructure construction phase, attention is to be directed at identifying improved methods of reducing production risks at the farm level, improving the productivity of the land and labor resources, a:. :,'king ways to increase farmer profit. A.I.D.'s intent is to ensure that an adequate system of production services and marketing services exist enabling small farmers to increase rice and other food crop production with the increased availability of water to be forthcoming under the Project. Elements of outreach under the A.I.D. component will include: (1) improvement of the seed production system using certified high yielding varieties that are tested, evaluated and released to growers; (2) adaptive research methods in combination of inputs such as fertilizer and pesticides to obtain high yielding packages of technology; (3) perfecting better means of communicating technology to the farmer which includes upgrading proficiency of extension per­ sonnel; (4) improved system of water management; (5) improved land preparation and maintenence capability and (6) improved processing and marketing linkages that will result in signi­ ficant increments in production. It is estimated that Project implementation will require about five and one half years, i.e., from early 1979 to mid-1984. The total incremental net value of production with Project will be $4.5 million per year beginning in year eight. This increase would result from higher intensity of land use, bringing non- irrigated lands under irrigation, higher yields, improved water supply and drainage, improved seed and better farm management. The total cost of the Project is estimated at U.S.$42.8 million, complemented by a U.S.$1.4 million grant. External financing in the amount of U.S.$8.9 million will be provided by A.I.D. ($7.5 million loan, 1.4 million grant), U.S.$10.O million World Bank credit, U.S.$10.0 million loan from IFAD, and U.S.$8.5 million loan presently under negotiation by GOG, the World Bank, and other interested donors. The GOG will contribute U.S.$6.8 million to the global project, and an additional U.S. $1.0 million to -3­ the A.I.D. grant. The budget for the global Project can be found in Annex III, Exhibit 8 (a). D. Summary Financial Plan The multi-donor Global Loan Package developed by IBRD amounts to U.S.$42.8 million, to be disbursed over a five year and one half year period.1 The proposed breakdown by donor is: (1) World Bank (IDA): $10.0 million (23.4%); (2) IFAD: $10.0 million (23.4%); (3) other donor (not yet identified): $8.5 million (19.8%); (4) A.I.D.: $7.5
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