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AFRICAN DEVELOPMENT BANK TUNISIA GHEZALA MATEUR AGRO-INDUSTRIAL COMPLEX DEVELOPMENT PROJECT COMPLETION REPORT Department of Agriculture And Rural Prepared by NARD.1 Development - North Region March 1995 i TABLE OF CONTENTS Page BASIC INFORMATION SHEET I. INTRODUCTION 1 II. SECTORAL AND PROJECT OBJECTIVES 2 2.1 Sectoral Objective 2 2.2 Project Objective 2 2.3 Description of Project 2 2.4 Detailed Project Description 3 III. PROJECT FORMULATION 5 3.1 Background 5 3.2 Preparation, Appraisal, Negotiation and Approval 5 IV. PROJECT IMPLEMENTATION 7 4.1 Entry into Force and Start-up 7 4.2 Modifications 8 4.3 Implementation Schedule 8 4.4 Reporting 9 4.5 Procurement of Goods and Services 10 4.6 Sources of Finance and Disbursement 11 V. OPERATIONAL PERFORMANCE AND PROJECT OUTPUTS 14 5.1 Overall Evaluation 14 5.2 Results of operations 18 VI. INSTITUTIONAL PERFORMANCE 21 6.1 Management and Organizational Efficiency 21 6.2 Recruitment, Training and Re-training of Staff 22 6.3 Performance of Consultants, Contractors, Suppliers and the Borrower 24 6.4 Technical Assistance 24 6.5 Clauses and Conditions 24 VII. FINANCIAL PERFORMANCE 25 7.1 Financial Results 25 7.2 Rate of Return 27 7.3 Financial Conditions and their Implementation 27 VIII. ECONOMIC PERFORMANCE 28 IX. SOCIAL IMPACT 30 X. ENVIRONMENTAL IMPACT 31 XI. SUSTAINABILITY OF OUTPUTS 32 ii XII. PERFORMANCE OF THE BANK AND OTHER COFINANCIERS 33 12.1 Project Objectives and Justification 33 12.2 Project Implementation and Operating Income 33 XIII. CONCLUSIONS AND LESSONS 35 13.1 Conclusion 35 13.2 Lessons 36 13.3 Recommendations 37 This report has been prepared by Messrs. D. Razafindrakoto, Veterinary Doctor and Head of Mission, M. Empain, agronomist, and L. Soumah, consultant in financial analysis, following a completion mission conducted in March 1995. Any additional information can be obtained from Mr. M.T. Futa, Division Chief, NARD.1. iii LIST OF ANNEXES Map 1 : Map of Project Location (Appraisal Report) Map 2 : Plan of the Ghezala-Mateur Agro-industrial Complex (1995) Annex 1 : List of Goods and Services (April 1984) Annex 2 : List of Goods and Services (1984) Annex 3 : List of Goods and Services (29 January 1987) Annex 4 : Increases in Areas Annex 5 : Increases in Yields Annex 6 : Increases in Plant and Animal Production Annex 7 : Financing Schedule/Outputs by Component Annex 8 : List of OTD Contracts with Various Suppliers Annex 9 : Organization Chart of OTD (1983) Annex 10 : Organization Chart of OTD (1993) Annex 11 : OTD Operating Account for 1983 and 1987-1993 Annex 12 : OTD Balance Sheets for 1983 and 1987-1993 Annex 13 : OTD Income Statement for 1983 and 1987-1993 Annex 14 : Accounts of the Agro-industrial Complex for 1983 and 1987-1993 Annex 15 : Accounts of the Agro-industrial Complex for 1983 and 1987-1993 Annex 16 : Accounts of the Agro-industrial Complex for 1983 and 1987-1993 Annex 17 : Calculation of the Financial and Economic Rates of Return Annex 18 : List of Documents Consulted iv CURRENCY EQUIVALENTS Rate in appraisal report : 1 UA = 0.707554 DT (August 1983) January 1985 rate : 1 UA = 0.889 DT January 1987 rate : 1 UA = 0.960 DT January 1991 rate : 1 UA = 1.304 DT January 1995 rate : 1 UA = 1.441 DT WEIGHTS AND MEASURES Metric System ACRONYMS AND ABBREVIATIONS ADB : African Development Bank BNA : Banque nationale agricole TD : Tunisian Dinar OTD : Office des terres domaniales ASAP : Agriculture Sector Adjustment Programme GDP : Gross Domestic Product UA : Unit of Account v BASIC DATA 1. Loan Number CS/TN/AGR/83/020 2. Borrower Government of Tunisia 3. Guarantor - 4. Beneficiary Office des Terres domaniales 5. Executing Agency Office des Terres domaniales A. ESTIMATE LOAN AT APPRAISAL ACTUAL 1. Amount (in UA) 14,950,000 12,405,991 2. Interest Rate (%) 9.5 9.5 3. Statutory Commission (%) 1 1 4. Commitment Charge (%) 1 1 5. Commitment level 15 years 1989-2004 6. Repayment Period 5 years 5 years 7. Grace Period - 24 and 25/10/83 8. Negotiation Date September 1983 22/11/83 9. Approval Date - 30/12/83 10. Date of Signature January 1984 15/05/85 11. Date of Effectiveness 1 Amendment of the Loan Agreement B. PROJECT INFORMATION ESTIMATE AT APPRAISAL ACTUAL 1. Total Cost (UA) 37,500,000 23,380,000 2. Finance Plan (in UA million) F.E. LC. FE LC. ADB 14.95 - NA NA OTD 3.41 18.24 NA NA Gvt. 0.59 0.36 NA NA Total 18.95 18.60 NA NA 3. Date of first disbursement 31/12/85 06/08/85 4. Date of last disbursement Start- 31/12/89 12/09/91 5. up Date of completion 1984 1984 6. 1987 1992 C. PERFORMANCE INDICATORS 1. Cost Overruns - - 17% 2. Period off schedule - For effectiveness 1 and a half years - For completion 6 years - For the last disbursement 2 years - Number of postponements of deadline for last disbursement 1 (31/12/92) vi Status of Implementation of project completed List of verifiable indicators see annex 6 Institutional Performance average Performance of the borrower average Performance of suppliers average ESTIMATE AT APPRAISAL ACTUAL 8. Economic Rate of Return 15% 10% 9. Financial Rate of Return 15% 08% D. MISSIONS No. persons Date Department P/M - Identification NA October 1981 NA NA - Preparation None - Appraisal 4 2/5 to 21/05/83 OARD 76 - Launching 1 February 1984 OCRN NA - Monitoring 1 June 1985 OCRN NA NA September 1988 NCPR NA - Supervision 2 February 1986 OCRN/FTRY NA 2 20 to 29/07/86 OARD/FTRY 18 1 18 to 30/01/87 OARD 12 1 13 to 27/07/87 OARD 14 1 22/03 to 04/04/90 NARD 12 1 26/05 to 04/06/91 NARD 9 - PCR 3 10 to 24/03/95 NARD 42 - OTD to Abidjan 2 13 to 15/05/85 E. DISBURSEMENT (in UA) ESTIMATE AT APPRAISAL ACTUAL % - Total disbursed 14,950,000 12,405,991 83 - Amount cancelled - 2,544,009 17 - Annual Disbursement 1985 4.49 11,018,971 1986 3.97 - 1987 4.55 635,580 1988 1.94 - 1989 - 1990 490,484 - 1991 260,856 F. SUPPLIERS The list of suppliers and the contents, date of signature and amount of contracts are given in annex 8. 1. INTRODUCTION 1.1 The Ghezala Mateur Agro-industrial Complex Development Project is situated in northern Tunisia in the Bizerte Governorate. It covers 5,300 ha stretching from the north-west of Mateur to the southern part of Lake Ichkeul, and cover the Mateur Plain, which has been drained outside the project, and the Ghezala area, which is watered from the Joumine dam. The complex is under the management of Office des terres domaniales (OTD) a public establishment whose mission is to develop state land and disseminate new technologies amongst private farmers and assist them through input supply and product marketing. 1.2 According to the objectives recapitulated in paragraph 2.2, the project is in line with Tunisian policy at the start of the 6th Plan. Given the important position occupied by agriculture in the country’s economy, this policy aimed at development of agricultural production potential so as to remedy the national food deficit, stabilize the trade balance, absorb unemployment and stem the rural exodus (see 2.1). Under its 5th Plan (1982-1986), the Tunisian Government has thus decided to intensify investment efforts in the sector. This intensification involved (i) improved management of water allowing for a considerable increase in productivity (ii) modernization of production techniques and (iii) improved supervision of the rural areas. It concerned private arable land and the state lands used for agriculture. To implement this policy, the Tunisian Government envisaged major investments that necessitated recourse to external aid, and it was in this context that ADB was contacted to finance the foreign exchange costs of the development of one of the 4 OTD complexes, the Ghezala Mateur complex. However, since most of the procurement turned out to be by local bidding, the financing was extended to cover local currency costs. 1.3 The Bank Group has financed 11 projects in Tunisia’s agricultural sector. The first, the Medjerda Valley Development Project, dates from 1998. The sector’s projects are as follows: 1 agro-industrial project (Ghezala Mateur), 4 irrigation sector projects, 3 rural development projects, 2 agricultural lines of credit to BNA and an ASAP. 2 II. SECTORAL AND PROJECT OBJECTIVES 2.1 Sectoral Objectives Tunisia’s agricultural policy reflected the role of agriculture in the country’s economic and social development process. The objectives assigned to it are: i) Raise productivity and increase national production so as to remedy the food deficit and thus reduce the country’s reliance on vital commodities such as cereals and animal-base products; ii) Maintain high long-term growth, in a sector that contributes to a healthy trade balance; iii) Counter unemployment by creating jobs in the major growth-led sub-sectors, such as irrigation and stockbreeding, and thus combat the rural exodus. 2.2 Project Objectives 2.2.1 the Ghezala-Mateur Agro-industrial Complex project aimed firstly at increasing production of various agricultural products (apples, pears, grapes, meat, milk, eggs) and also at rural extension, by virtue of the complex’s influence and reputation and through demonstration, of the most effective product production and processing technologies. These technologies concerned sprinkler and drip irrigation, the use of superior dairy bulls, cattle stalling, improvement of pasture ground for sheep, poultry farming, apple, pear and grapes growing by espalier and irrigation methods. 2.2.2 At appraisal, the peak production was projected at: 1,500 tons of apples/pears, 9,000 tons of table grapes, 2,000 tons of wine grapes for 140,000 l of wine, 28,000 tons of forage crops, 15,000 tons of forage, 6,250 tons of milk, 34 tons of cheese manufactured from ewe milk, 54 million eggs and 400 tons of culled hens.
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