Document of The World Bank
FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No.9880-MAL
STAFF APPRAISAL REPORT
Public Disclosure Authorized REPUBLIC OF MALDIVES
THIRD FISHERIESPROJECT
NOVEMBER 21, 1991 Public Disclosure Authorized
AgricultureOperations Division Country DepartmentV Public Disclosure Authorized Asia Regional Office
This document has a restricted distribution and may be used by recipients only in the perfonnance of -~~~~~ * *7 U CURRENCYAND EQUIVALENT UNITS (as of July 1991) Currency unit = Maldivian Rufiyaa (Rf)
US$1.Q00 Rf 10.06 Rf 1.00 - US$0.099
WEIGHTS AND MEASURES - METRIC SYSTEM
1 millimeter (mm) - 0.038 inches (in) 1 meter (m) = 39.37 inches (in) 1 kilometer - 0.62 miles (mi)
ABBREVIATIONS AND ACRONYMS
BITS - Swedish Agency for International Technical and Economic Cooperation DMP - Dekunge Mastgatange Project EA - Environmental Assessment EEZ - Exclusive Economic Zone EPCS - Economic Planning and Coordination Section ERU - Environmental Research Unit FAO - United Nations Food and Agriculture Organization FAO/CP - FAO/World Bank Cooperative Program FAO/TCP - FAO Technical Cooperation Project FFE - fresh fish equivalent FPID - Fisheries Projects Implementation Department FRPI - Fisheries Research and Projects Implementation Section FTPP - Felivaru Tuna Processing Plant GOM - Government of Maldives GRT - Gross Registered Ton LWST - Low Water Spring Tide MDP - Manpower Development Plan MFC - Maldives Fisheries Corporation MOFA - Ministry of Fisheries and Agriculture MTS - Ministry of Transport and Shipping MPE - Ministry of Planning and Environment MPW - Ministry of Public Works and Labor MTI - Ministry of Trade and Industry NAP - National Action Plan for Environmental Management and Planning NDF - Nordic Development Fund NORAD - Norwegian Agency for Development Cooperation OPEC - Organization of Petroleum Exporting Countries PCC - Project Coordinating Committee PIU - Project Implementation Unit PPF - Project Preparation Facility STO - State Trading Organization UNDP - United Nations Development Programme
FISCAL YEAR
January 1 - December 31 FOR OFFICL4UUSE ONLY
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Credit and Prolect Summarv
Borrower: Republic of Maldives
Beneficiaries: About 2,000 relatively poor artisanal fishing households in the south of the country and the Fisheries Projects ImplementationDepartment (FPID) of the State Trading Organization (STO)
Amount: SDR 7.6 million (US$10.0million equivalent)
Terms: Standard, with 40 years' maturity
Onlendina Terms: Part of the proceeds of the Credit, equivalent to US$2.6 million will be onlent by the Government of Maldives (GOM) to STO/FPID, at an interest rate of 13 percent per annum, with a repayment period of 20 years, including 5 years of grace. GOM will bear the foreign exchange risk.
Proiect Obiectives and DescrArtion: The six-year project will assist GOM to: increase fish production, government revenues, and foreign exchange earnings, at a lower processing cost; increase incomes of fishing households to alleviate relative poverty; reduce migration to the capital, Male, through balanced regional growth; and create the environment for increased private sector participation in the fisheries sector. The project is intended to reinforce the existing system of artisanal fisheries and small-scale fish collection. The project, which would serve the southern atolls of Gaafu Alifu and Gaafu Dhaalu, would include the following components: (a) construction of a port at Kooddoo in Gaafu Alifu for fishing boats and collector vessels, including a deep-water berth for direct loading of frozen fish onto refrigerated (reefer) vessels; (b) construction of a fish freezing/cold storage complex on the same island, consisting of a brine frezing and cold storage plant, support facilities such as power and water desalination plants, workshops, stores, offices and staff housing, and miscellaneous operational equipment such as forklifts, cranes and fish containers.;(c) strengtheningof the atoll-wide fish collection system, including the provision of a fleet of seven collector vessels (three new and four retrofitted) and local training for collector vessel captains and engineers; and (d) provision of technical assistance (TA) to: (i) the Project ImplementationUnit (PIU) for
This document has a restricted distribution and may be used by recipients only in the performance I of their omcial duties. Its contents may not otherwise be disclosed without World Bank authorization. - ii -
technical studies and preparation of detailed design of some project facilities,procurement and supervision of the constructionwork; (ii) STO/FPID for its own restructuring;(iii) the Ministry of Fisheries and Agriculture (MOFA) for strengtheningfisheries research and statistics, further improving the desi-n of existing fishingvessels, creating a fisheries economics unit to advise GOM on fish pricing and related policies and provision of training to MOFA staff; (iv) the Ministry of Planning and Environment (MPE) for monitoring key environmentalparameters during project implementation; and (v) the Ministry of Trade and Industry for preparing and implementingan Action Plan, emanating from the recommendationsof an ongoing GOM study, for encouraging increased private sector participation in the fisheries sector.
Benefits and Risks: The project would maintain the current tuna catch in the project area and ultimately increase it by about 26 percent to 16,300 tons (about 23 percent of 1990 national tuna catch). Tuna exports will be increased by about 23 percent to 14,000 tons a year (about 25 percent of 1990 total national tuna exports), at full development,representing gross foreign exchange earnings of about $12.0 million annually. The project would provide direct employment to about 240 Maldivians in processing and support services,maintain the annual tuna income of about 2,000 relatively poor fishing households and ultimately increase it by 32 percent, whereas the annual tuna income will decline by 83 percent in the "without project" scenario. The project will also increase government revenues. The ERR of the project is estimated at 24 percent. The risks appear modest. Fish resources are abundant, although seasonal shortages could occur due to changes in oceanic temperature distributionand weather patterns. Export markets are well established and demand for frozen tuna is expected to grow. Malidvian tuna is well considered in the world market due to its relatively large size and good quality, and would continue to be so, especially because it is "dolphin friendly" in an increasingly environmentallysensitive sector. Involvement of several cofinanciersin project financing could lead to some delays and coordinationdifficulties. However, experience under the first two IDA projects has demonstratedthat such problems can be minimized by proper planning aindadvanced consultationduring preparation and appraisal, as has been done for this project. The operation of a new fish processing complex will present a challenge and will require strong management. Continued incentives to fishermen to svpply adequate throughput could also affect performance of the fish processing complex. TA and production enhancement strategieswithin the project would address these risks. - qii -
Proiect Cost: Local Foreign Total -(US$ '000) ------
Kooddoo Port and Freezing/ColdStorage Complex Port Works 0 5,541 5,541 Freezing/ColdStorage Plant 204 7,737 7,941 Office, Housing, Workshop 66 1,258 1,324 Supply of MiscellaneousEquipment 0 3,571 3,571 Vessels 0 3,445 3,445 NavigationalAide 22 112 135 TA/Training for Vessels 0 138 138 Design/supervisonfor the Port and Plant 0 2,468 2,468
Subtotal 293 24.270 24.563
TechnicalAssistance Support to FPID 0 660 660 Support for RestructuringFPID 0 388 388 Support for MOFA 113 971 1,084 Support to Environmental Research Unit 52 173 225 Private Sector Encouragement 0 200 200
Subtotal 165 2.391 2.556
Base Cost 458 26.661 27.119
Physical Contingencies 16 1,134 1,149 Price Contingencies 82 2,194 2,276
Total Proiect Cost /a 556 29.988 30.544
Financing Plan: Local Foreign Total ------(US$ million) --
Government 0.2 2.9 3.1 IDA 0.0 10.0 10.0 Norway 0.1 6.4 6.5/b Sweden 0.1 2.3 2.4 Nordic Development Fund 0.1 5.5 5.6 OPEC Fund 0.0 2.6 2.6 UNDP 0.0 0.3 0.3
Total 0.5 30.0 30.5
Note: Totals may not add up due to rounding.
/a Project items are exempt from duties and taxes. /b Norway will provide an additional US$0.2 million equivalent to cover guarantee fees for the Norwegian credit. -2.v-
! Estimated-IDAPisbursements:
* IDA F4.scalYear 1992/a 1993 1994 1995 1996 1997 - (US$ 000) ------
Annual 825 1,639 2,756 2,437 1,728 616 Cumulative 825 2,464 5,219 7,656 9,384 10,000
! /a Disbursement in FY52 relates to PPF.
Economic Rate of Return: 242
IBRD 23246 - v -
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Table of Contents
Page No.
I. BACKGROUND ...... 1
A. Sectoral Performance ...... 1 B. Resource Base ...... * ...... 1 C. Fishing Operations and Processing ...... 3 D. Fish Marketing ...... 5 E. Sectoral Institutions ...... 6 Key Sector Constraints ...... 8
II. BANK EXPERIENCE AND RATIONALE FOR IDA INVOLVEMENT . . . . . 11
A. Bank Experience ...... *. 11 B. Strategy and Rationale for Future IDA Involvement . . . 14
III. THE PROJECT ...... 15
A. Project Objectives ...... 15 B. Brief Project Description ...... 15 C. Project Area ...... * . . . . . 16 D. Detailed Project Description ...... 17 E. Environmental Aspezts ...... 23 F. Role of Women ...... e * 24
IV. PROJECT COST AND FINANCING ...... 24
A. Project Cost ...... 24 B. FinancingPlan ...... 26 C. Onlending Terms ...... 28 D. Procurement .#. .#...... o. 28 Eo Disbursements . . . . o...... 30
This report is based on the findings of an appraisalmission comprising Messrs. Ohene Owusu Nyanin (Task Manager), Anthony Byrne (FinancialAnalyst), Akihiko Nishio (Economist),and Gert van Santen (FisheriesSpecialist), which visited Maldives during April 22 - May 10, 1991. The peer review group included Messrs. E. Loayza (AGRPS), E. Chobanian (ASTAG),A. Byrne (ASTAG), K. Chung (ASTIN) and Ms. S. Braatz (ASTEN). Mrs. Marianne Haug, Director, AS5 and Mr. Antony P. Cole, Chief, ASSAG have endorsed the report. - vi -
Page No.
V. ORGANIZATION, MANAGEMENTAND IMPLEMENTATION ...... 31
A. Project Implementation ...... 31 B. Project Coordination ...... 34 C. Human Resource and Manpower Development ...... 35 D. Project Implementation Plans and Status ...... 36 E. Monitoring and Evaluation ...... 36 F. Accounts and Audits ...... o. ... 37
VI. PRODUCTION.MARKETS AND PRICES . 37
A. Production ...... 37 B. Markets ...... 38 C. Projected Market Demand ...... 38 D. Prices ...... 0...... 39
VII. BENEFITS AND JUSTIFICATION ...... 40
A. Project Beneficiaries and Benefits ...... 40 B. Financial and Economic Analysis ...... 42
VIII AGREEMENTS REACHED AND RECOMMENDATION ...... 45
ANNEXES
Annex 1 Fisheries Sector Project PerformanceAudit Reports . . 47
Annex 2.1 Summary Accounts by Year ...... 48 Annex 2.2 Project Components by Year ...... 51 Annex 2.3 Summary Account by Project Component ...... 54
Annex 3.1 Financing Plan by Project Component ...... 56 Ahnnex3.2 Financing Plan by Foreign Exchange/Local/Taxes . . . . 57 Annex 3.3 Cost Recovery from STO/FPID ...... 58 Annex 3.4 Disbursement Category Limits ...... 59 Annex 3.5 Disbursement Schedule by Semester ...... 60
Annex 4.1 National Fish Catch and FPID Tuna Collection by Atoll, 1990 . . . . . 0 .. . . . 61 Annex 4.2 Fish Catch by Type of Vessel, 1990 ...... 62 Annex 4.3 Fish Poduction and Exports, 1990 ...... 63 Annex 4.4 Export of Marine Products, 1990 ...... 64 Annex 4.5 Marine Products Exports by the Private and Government Sector by Country of Destination, 1990 ...... 65 Annex 4.6 Official Pri^es for Fresh Tuna Purchased by STO) . . . 66 Annex 4.7 Average Price of Fuel for Fisherman relative to TunaPrices . . . . * * * ...... * ...... 67 Annex 5.1 Technical Assistance Schedule ...... 68 Annex 5.2 Terms of Reference (DetailedDesign of Kooddoo Port and Fish Freezing Complex) ...... 69 Annex 5.3 Terms of reference (Survey and Design of Fish Collector Vessels) ...... 78 - vii -
Page No.
Annex 5.4 Terms of Reference (FPID Restructuring Management Consultancy) ...... 84
Annex 6.1 Assumptions for Financial and Economic Analysis . . . . 88 Annex 6.2 Useful Life, Depreciation Costs and Replacement Schedule of Plant ...... 91
Annex '.1 Boat Model (Financial Prices) ...... 95 Annex 7.2 Annual Operating Costs of Fleet (FinancialPrices) . . 96 Annex 7.3 Annual Operating Costs of Freezing/ColdStorage Plant (Financial Prices) ...... 97 Annex 7.4 Projected Profit and Loss Account ...... 98 Annex 7.5 Projected Balance Sheet ...... 99 Annex 7.6 Projected Cash Flow ...... 100 Annex 7.7 Financial Rate of Return ...... 101 Annex 7.8 GOM's Incremental Cash Flow from the Project . . . 102
Annex 8.1 Projected Economic Price of Marine Diesel Oil . . . 103 Annex 8.2 Boat Model (Economic Prices) ...... 104 Annex 8.3 Annual Operating Costs of Fleet (EconomicPrices) . . . 105 Annex 8.4 Annual Operating Costs of Freezing/ColdStorage Plant (Economic Prices) ...... 106 Annex 8.5 IncrementalOperating Costs and Benefits of the Project at Economic Prices ...... *...... 107 Annex 8.6 Economic Rate of Return.. . Los
Annex 9 Selected Documents Available in the Project File . . . 109
CHARTS
1 OrganizationChart (State Trading Organizatinn)...... 110 2.1 OrganizationChart (FisheriesProjects Implementation Department) ...... 1 2.2 Major FunctionalActivities (FisheriesProjects Implementatior, De'3artment) ...... 112 3 OrganizationChart (Ministryof Fisheries and Agriculture) 113 4.1 Project Facilities Engineering Drawings (ProposedFuture Layout) ...... 114 4.2 Project Pacilities Engineering Drawings (Harbor Facili-.:ies and Elevated Accessway) ...... 115 4.3 Project Facilities EngineeringDrawings (Typical Cross Section and Constructional Details) . . . . . 116 4.4 Project Facilities EngiaeeringDrawings (Preezingand Cold Storage Facility) ...... 117 4.5 Project Facilities EngineeringDrawings (Water ar.dFuel Storage and Distribution Systems) ...... 118 4.6 Project Facilities EngineeringDrawings (Sewerageand Services Layout) ...... 119 5 ImplementationSchedule ...l ...... * *. . . 120
MAP IBRD 23246 ...... 123 - 1 -
I. BACKGROUND
A. Sectoral Performance
1.1 During the past two decades, the Republic of Maldives has astutely and successfullydeveloped the assets of its marine environment. Blessed with abundant fish resources, the fishing industry has been transformed from a predominantlycottage industry to a modern industry able to compete effectively in world markets through mechanizationof traditional fishing boats and provision of fish processing infrastructure. Fish production increased from around 30,000 tons p.a. in the late 1970s to more than 76,000 tons in 1990.1/ Of the 1990 total fish landings, consisting mainly of tuna (92 percent), about 59,000 tons (77 percent) of fresh fish equivalent (FFE) was exported in frozen, canned or dried form (Annex 4.3), accounting for about 80 percent of Maldivian merchandise sold abroad. Tuna production in Maldives is not environmentallydestructive, since the artisanal pole-and-linemethod of fishing is highly selective and "dolphin friendly".
1.2 Fishing is the most important primary activity in the economy, accounting for over 5S percent of the value added of primary sector and more than 15 percent of GDP. Its actual share of GDP may be higher because of unreported catches and processing activities related to dried fish. Furthermore, k'sh processing, transport, and distributiona:count for a significantproportion of the manufacturingand trading activities in the country. Fisheries is also the most imporatnat single activity for the Maldivian labor force; in 1990 fishing provided direct employment for 20 percent of the country's labor force, down from almost 25 percent in 1985. On many islands, notably in the extreme north and south of the country, fishing is the main and sometimes the only economic activity. Thus maintenance of an economicallyhealthy fishing sector is one of the crucial conditions for slowing the migration of young people to the severely congested capital island, Male, where about 26 percent of the population live. Apart from fishing being a major source of employment, income, and foreign exchange earnings, fish itself is the main source of protein in the Maldivian diet. Maldivians consume an annual average of about 90 kg (FFE) per capita, one of the highest consumption levels in the world.
B. Resource Base
Tuna Resources and Production
1.3 Maldives' tuna fishing is unique in the region; it is totally artisanal, continuing a tradition first documented 600 years ago. By contrast, most tuna fishing by other Indian Ocean countries is predominantly industrial and has only been developed over the past 25 years.
1/ The quality of fisheries statistics in Maldives, particularlywith regard to fish catches or landings,needs to be improved as there are presently inconsistenciesin the data. 1.4 The reefs and islands of Maldives act as shelters for many types of fish, which attract oceanic tuna. The two dominant tuna species in Maldive waters, skipjack (Katsuwonuspelamis) and yellowfin tuna (Thunnus albacores), are part of stocks throughout the Indian Ocean, and they extend well beyond Maldives' present fishing zones. Skipjack,which currently constitutes almost 80 percent of total Maldivian fish catches, may originate from three stocks: one is shared with South India and Sri Lanka; a second is oceanic and extends south, west, ard east; and a resident stock exists around Maldives. The limited assessmentsof Indian Ocean tuna stocks and the analysis of catch records indicate that skipjack resourcesmay yield well over 350,000 tons on a sustainablebasis, while current catches are about 200,000 tons. However, this estimate is considered conservativein the light of consistently increasing catches observed throughout the Indian Ocean. A recent internationalscientific meeting in Maldives concluded that skipjack resources are only moderately exploited in the Indian Ocean and that stocks are healthy. This is based on the increasingcatch-per-unit-effort of industrial and artisanal fisheries in the region. Nevertheless,the rapidly expanding exploitationof the tuna resources in the Indian Ocean necessitatescollecting the data now to determine future management of the resource. Yellowfin tuna resources appear more heavily exploited but are of limited interest to Maldives since yellowfin constitutesonly about 7 percent of the total catch.
1.5 Tuna Production. The artisanal pole-and-linefishery of Maldives exploits only the coastal zone and only occasionallyextends beyond 15 miles. So far Maldives has not licensed any industrial fishing activity within its 200-mile Exclusive Economic Zone (EEZ). Records for the past 10 years show a substantial increase in tuna landings (Table 1.1). The growth of catches may reflect some changes in the availabilityof fish stocks, due to temperature changes, but are mainly due to the increased effectivenessof the fishing vessels used in Maldives. Catches per vessel per year have increased alrost six-fold over the past 10 years.
Table 1.1: FISH LANDINGS IN MALLIVES (1981-90) (thousandtons)
1981 1982 1983 1984 1985 1986 1'987 1988 1989 1990
Total Landings 34.9 30.3 38.5 55.0 61.9 59.3 56.9 71.8 71.3 76.4 Tuna Landings 28.7 23.8 31.5 44.1 53.7 53.7 51.9 68.0 67.8 70.4
Source: MOFA.
1.6 Scope exists for further expansion of tuna fisheries in the Indian Ocean. The availabilityof tuna for the various fishing methods is likely to be more dependent on factors such as water temperaturedistribution and weather patterns rather than on actual stock size. However, the present catches of skipjack amount to about 60 percent of the estimates of sustainable yields (of which Maldives catches le8s than a third), which means there is also a need to strengthen the knowledge about the resources. Th±s would enSure a more detailed stock assessment once total catches approach sustainableyield levels. Because of (i) the preliminary nature of the estimates of tuna stocks in the Indian Ocean and the Maldivian EEZ, (ii) the long lead time necessary to collect relevant data, and (iii) the importance to the Maldivian economy of sustainableexploitation of tuna resources, it is prudent that Maldives continues to expand current efforts, at both national and internationallevels, to increase the knowledge of tuna resources.
1.7 Fishing Seasons. Seasonal factors--wind,sea currents, overall weather patterns--inthe proposed project area around the Gaafu atoll reflect the occurrence of the Northeast and Southwestmonsoons, which take place from December to March and from May to July, respectively. Tuna aggregate generally at the windward side of the atolls, or near upwellings of colder water; excellent catches can be expected on the northeast side of the atolls from December to April, when winds are moderate. Catches on the southwest side are moderate much of the rest of the year. However, fishing is hampered by strong winds from April to July.
Bait Fish Resources and Production
1.8 Pol. %nd-line fishing depends on bait fish (see para. 1.10). Studies have revealed seasonality in the abundance of the various species used for bait, with some available throughout the year and others only during certain periods. Up to 1 kg of bait is required for 10 kg of tuna caught, and the present bait production is, therefore, estimated to be about 7,000 tons. With the mechanizationand efficiency improvementof fishing vessels, particularlyconcerning the use and storage of bait, indiscriminatecapture of bait has substantiallydeclined. Currently,mechanized fishing vessels use bait sparingly and highly efficiently,compared to the former sailing vessels. Fishermen do not consider the bait resour,e a constraint for expanding their fishing effort.
C. Fishing Operations and Processing
Fishing Operations
1.9 Traditional all-purposeboats used by fishermen in Maldives, or dhonis, are among the most cost-effectivetuna fishing vessels in the world. The registered fishing fleet consists of two types: about 3,700 small craft, mostly used for reef fishing inside atolls and for transport, ard about 3,000 mas dhonis up to 15 meters in length, mostly motorized (more than 1,650) and engaged in pole-and-linefishing for tuna and occasional reef fishing. Under the First Fisheries Project (Credit 302-MAL) finar-ed by IDA and UNDP, an improved version of the vessel was designed (1983). About 200 of these highly successfulvessels are currently operating. The catch from the motorized dhonis reportedly accounts for about 97 percent of the country's total fish landings; the rest comes from small craft (Annex 4.2).
1.10 Pole-and-linetuna fishing involves two separate operations: fishing for bait and for tuna. Bait fish are caught in lagoons early in the morning with small mesh netting; afterwards the boats go prospecting for tune. outside the atolls. Tuna schools are often found in the channels separating - 4 -
the atolls or on the windward side of the atolls, often le6s than 3 km offshore. On sighting the school, the fishermen throw live bait and water
around the boat to attract the fish. From the stern 9 the fishermen,using barbless hooks, capture the fish.
3.13. Fishing in Maldives is traditionally limited to one-day trips. C&cttchraites per boat trip vat:y from area to area and depend not only on weather and fish resources buc aiso on the fishermen's ability to sell the fish. In the area around Male the large urban population (estimated at about 55,000 people) provides a ready market for tuna. At Felivaru, in Laviyani atoll, the canning complex buys most of the tuna delivered by fishermen. In i these areas, as well as in other areas ir.the south of the country where regular collection of tuna takes place, fishermen normally make almost 220 fishing trips per year and catch on average 700-800 kg/trip. In contrast, in areas where limited facilities exist to dispose of fresh tuna and where most of the catch is for local consumption and traditional processing, fishermen usually make fewer than 100-120 trips per year and may catch 350-500 kg of tuna and other fish per trip. Catches could be easily increased in some of these areas if facilities for collection and processing of fresh tuna were improved and fuel was readily available. In arear,where "mother vessels" operate, production is often constrained by the limited operational freezing and cold storage capacities of these vessels and the lack of adequate fish collection capacity from nearby fishing grounds.
1.12 Fish Collection System. Dhonis deliver fish directly to the mother vessels or deliver fish to collector vessels that temporarily store the catch for eventual delivery to the mother vessels or to the cannery. Twenty-three collector vessels exist, but several are in a very bad state of repair. In general, they are too small for efficient operation and have inappropriate technical specifications. Collection cosir.-for most of the old collector vessels are around US$125/ton as compared to US$60/ton for recently introduced, larger collection vessels operating for the cannery.
Fish Use and Processing
1.13 Traditionally Processed Products. Although tuna is a major item in the Maleivian diet, tuna landings far exceed domestic consumption. Excess production has been exported in frozen, canned, or traditionally processed forms. This last oompris@6s "Maldive Fish", dried salted skipjack, and dried salted reef fish. Until the early 1970s, exports were predominantly of Maldive Fish, a parboiied, smoked and dried (skipjack) product, a women's cottage industry (see par&. 3,28)c Maldive Fish is exclusively exported to Sri Lanka, but because the Sri Lankan market for Maldive Fish declined in the 1970s9 due to import restrictions, and because Maldive Fish processing requires increasingly scarce fuelwood, pr'duction declined. With the lifting of import restrictions in Sri Lankag e:xpoL8s of Maldive Fish to Sri Lanka have been increasing steadily (para. 6e7). Dried salted skipjack and dried reef fish are also processed locally for export to Sri Lanka. Maldive Fish and other traditional products are an important source of income and a social "safety net" ror many local fishermen who have no access to regular collection of fresh tuna. 5 -
1.14 Freezing and CannQi rat1on. The State Trading Organization (STO), through its Fisheries Projects Implementacion Department (FPID), operates 10 mother vessels that can receive and freeze fish, and a land-based cannery at Felivaru (para. 1.19). The motlier vessels9 which have a total freezing capacity of about 300 tons per day and cold storage capacity of about 5,000 tons, mostly operate in the extreme southern and northern atolls. The frozen fish are transferred at sea to refrigerated (reefer) veetl^ for shipment. The Felivaru cannery has the capacity to can up to 50 tolne por nay, and in addition has a 40 tons/day installed freezing capacity and a 750-ton cold storage, which is predominantly used to freeze and hold fish in excess of daily canning needs. Three motheo veessels, each with substantial freezing and holding capacity, are more than 20 years old, and their operation, repair, and maintenance costs are relatively high, at about US$225-275/ton. Four mother vessels are converted fishing vessels between 10 and 20 years old. Their freezing equipment is not adequate to freeze and store tuna that will be used for canning, and thus, with limited freezing capacity9 their operAt±ilg costs are very high at US$300-350/ton. Only three mother vessels, specifically designed to operate in Maldives and each about six years old, are in reasonable condition, although their freezing capacity is also less than what is needed. In contrast, freezing costs are around US$120-140/ton at the land- based Felivaru freezing plant.
D. Fish Marketing
Local
1.15 In 1990, about 23 percent of total fish production went for domestic consumption, including an estimated 1,500 tons of reef fish for resort hotels. There is no conventional retail trade for fresh fish, as fishermen usually retain part of their catch for their families, except in Male where fish is commercially traded. Prices for locally-consumed fish are not controlled and are extremely variable, as supplies fluctuate from day to day and there are no facilities to preserve or store fish.
ExpoRrts
1.16 For 20 years, diversification of markets and tuna products has been a central theme of the country's fishery policy, in part because of the historical expirience of being dependent exclusively on a single product (Maldive Fish) and a single market (Sri Lanka) for Maldives' entire export. At present Maldives still exports a substantialamount of traditional products to Sri Lanka, but it also exports frozen and canned tuna to other markets, notably Thailand, Japan and the United kingdom (Annex 4.5). This arrangement reduces the country's dependence on a single product and market, but the prospects for further diversificationor product substitutionappear limited in the shlortterm. In 1990, around 17,000 tons of tuna or about 22 percent of Maldives' total fish productionwas frozen whole for export, valued at about US$13.2 million; 20,800 tons (FFE) or about 27 percent was exported in canned form or as fishmeal,valued at US$13.3 million; and 20,700 tone (FFE) or 27 pereent of the total catch was exported as traditional product, valued at about U;, .7 il.l{On (Annenxc 4.3 and 4.4). 1'1ith world tuna markets inereasingly cCtlcoived wbiut oatu caught in *nvironwentally destructive ways, - 6 -
includingpurse-seining and drift-netting,Maldives' tuna, being "dolphin friendly", is particularlywell placed for exports.
E. Sectoral Institutions
1.17 Ministry of Fisheries and Agriculture. The Ministry of Fisheries and Agriculture (MOFA) has overall responsibilityfor making policy in the fisheries sector. Its activities also include collection of statistics, execution and coordinationof research programs, administrationof some of the credit provided to fishermen, and issuing of fishing licenses. In its activities,especially with regard to policy and major sector investments, MOFA works closely with STO, the Maldives Monetary Authority, and the Ministry of Planning and Environment (MPE). MOFA's statistics program has deteriorated,due to problems with collecting data from individual boats and from islands and on traditionalproducts; its capacity to undertake data analyses to underpin its policy work needs strengthening. To address these problems, MOFA is expanding its statisticalunit into an Economic Planning and CoordinationSection (EPCS). Through the FisheriesResearch and Projects ImplementationSection (FRPI),MOFA is involved in internationalefforts to assess tuna resources in the India:iOcean and monitor fish resources in Maldives. However, it has limited technical staff and financial resources. Other ministries playing importantroles in the fisheries sector are the Ministry of Trade and Industry (MTI), which deals with the licensing of various fish collection and processing activities;the Ministry of Defense and National Security, which is responsiblefor the surveillanceof the fishing zones; and the Ministry of Transport and Shipping (MTS), which operates and maintains navigationallights and markers. An organizationalchart of MOFA is presented in Chart 3.
1.18 The State Trading Organization. STO occupies a critical place in Maldivian trade, commerce, and industry. It is the dominant factor in Maldives' fishery sector. Although STO is a unit of MTI, it has considerable autonomy. It is managed by an appointed board of directorswith the Minister of Trade and Industries as chairman and chief executive. It is the principal trading arm of the Government of Maldives (GOM), responsiblefor procurement for all ministries and parastatals and for a range of basic commodities. In addition, STO is the largest buyer, processor, and exporter of fish in the country; it owns all mother vessels and the cannery complex at Felivaru; until recently it had a monopoly in the collection and export of Maldive Fish. It also operates a boat building yard and is engaged in construction,insurance and, through shareholdingsin joint venture companies, the manufacture and export of garments (Chart 1). It has been the implementingagency for IDA's Second Fisheries Development Ptoject (Credit 1320-MAL).
1.19 Fisheries Prolects ImplementationDepartment. STO's fisheries operations are carried out through FPID, which accounted for over 30 percent of STO's total turnover in 1989 and which comprises:
* Dekunge Mastgatange Project (DMP), which handles the general collection of tuna and its freezing on mother vessels (para. 1.14);
* Felivaru Tuna ProcessingPlant (FTPP),which runs the canning operations (para. 1.14); and a General Section, which deals with the purchasing of dried and Maldive Fish, through two buying stations, other marine products such as shark liver oil, and the export of the fish products produced by DMP and FTPP.
Details of the FPID organizationaland management structure are presented in Charts 2.1 and 2.2, respectively. FPID employs expatriate advisors and managers in a number of key positions and uses labor from neighboring countries for jobs for which there is no Maldivian interest.
1.20 STO/FPID Financial Performance. The overall financial performance of STO has been satisfactory. Consolidatednet operating profits increased from Rf 55 million in 1986 to an unaudited Rf 66 million in 1989, of which Rf 56 million were from general trading operations on a sales turnover of Rf 469 million. In terms of US dollars, however, profits fell slightly over the period 1986-89. STO's gross profits, as a proportion of sales, fluctuated between 18-25 percent during 1986-89while net profits slowly deteriorated from 17.3 percent in 1986 to 8.3 percent in 1989. Until 1987, the return on STO capital as a whole was over 35 percent. Since 1988, however, the return has dropped, due to the increase in contributedcapital in 1989 after the upgrading of the Felivaru cannery, and because this facility,which started operations in 1987, has yet to show a profit. In 1986, FPID had a turnover of Rf 108.0 million and net operating income (before transfers to GOM) of Rf 4.0 million on capital employed, of Rf 12.0 million--a return of 33 percent on invested capital. By 1989, based on unaudited results, FPID's sales had grown to approximatelyRf 357.0 million and the net operating profit to an estimated Rf 20.0 million on capital employed of Rf 30.0 million, representingvery substantial growth and a return of around 66 percent on invested capital, despite its modest staff resources and aged facilities. Forecasts of FPID's net operating income for 1990-92 indicate a steady growth in net operating income and a continuing satisfactoryreturn on capital employed,which should permit transfers of net income to GOM in excess of Rf 10.0 million per annum during this period and beyond. The increase in FPID's size and complexity, although it has yielded satisfactoryfinancial results, has made management and control more difficult. There is, therefore, a need for performance improvement,especially in key elements of operationaland financial management, to ensure effective and efficient management in the medium to long term. Separation of FPID's fisheries activities from other STO operations would enhance the transparencyof FPID's financial structure, to avoid cross- subsidizationof operations and make each operation financiallyand managerially independent.
1.21 STO/FPID Restructuring. IDA staff prepared a Fisheries Sector Strategy Note, which was discussedwith GOM prior to appraisal of the project. It contained recommendationson, inter alia, restructuringSTO/FPID to address the above issues. Following these recommendations,GOM has decided to take the first step in restructuringSTO/FPID and to make FPID a more independent operating unit, by separating its financial and accounting functions from STO as of October 1, 1991 by a PresidentialDecree. As part of this move, GOM has appointed the director of the Second Fisheries Project to head the autonomous FPID as its director. FPID will become accountablefor all financial transactionsaffecting its business activities, including those involving foreign exchange (export proceeds and foreign payments), bank accounts and financial reporting,which are at present subject to substantialdelays due to the accounting arrangementswith STO. It was recommendedfurther that STO consider the eventual establishmentof FPID as a separate legal entity under the Limited LiabilitiesCompanies Decree (1988),with its own board of directors,which would include representativesof relevant ministries and authorities,particularly MOFA. Such a company, which would facilitate future private sector participation,would take over all of STO's current fisheries activities. The final legal and detailed organizationalstructure of FPID would, however, be decided upon by GOM following the recommendationsof technical assistancewithin the proposed project (para. 3.16). The final GOM decision is expected by July 31, 1992. It is STO's intention that the present, experiencedstaff responsible for the management of its fisheries activities would remain with the restructuredFPID (para. 5.10).
1.22 Ministry of Planning and Environment. In recognition of the increasing importance of managing resources in a sustainablemanner, the Ministry of Planning and Developmentwas recently redesignatedas the Ministry of Planning and Environment (MPE). This Ministry is responsible not only for planning economic developmentbut for environmentalmonitoring and management. Under the Minister are sections for Administration,Statistics, Projects and Planning, and Environmen_alAffairs. Under the Director of Environmental Affairs there currently exists an EnvironmentalResearch Unit (ERU) and a Media and Public Awareness Unit. Professionalpersonnel and equipment resources available to EnvironmentalAffairs are meager, and the equipment required to collect and manage environmentalresource data are lacking. The Ministry has plans to send five staff members overseas for graduate level training, provided through a bilateral agreementwith the United Ringdom. Other national agencies that support MPE in collecting environmental data include MOFA and its FRPI and STO.
F. Key Sector Constraints
1.23 As indicated, the main constraint to increased fish production and export is inadequate collection and processing capacity (paras. 1.12 and 1.14). While tuna stocks in the Maldivian inshorewaters are not under any undue pressure (para. 1.4), it is p-udent for GOM to continue to increase knowledge of the stocks. In addition to the need to restructureSTO/FPID (paras. 1.20 and 1.21): (i) further participationof the private sector in the processing and marketing of fish would be opportune (paras. 1.24 through 1.27); and (ii) improvementsin fish pricing/tariffpolicy are required (para. 1.28).
The Role of the Public and Private Sectors in Fisheries
1.24 Fishing, traditionalprocessing, and the bulk (over 80 percent) of the export of traditionally-processedproducts are handled by the private sector. It accounted for about a quarter of the 1990 fisheries exports by value (Annex 4.5). Nevertheless,the influence of the public sector in the fisheries sector is substantials STO/FPID plays a dominant role in th- collection,processing, and exporting of non-traditionaltuna product and GOM regulatesproducer prices for fresh tuna for export and, until r itly, for traditionaltuna products. - 9 -
1.25 There are two good reasons why the public sector should continue to play a key role in the fisheries sector in Maldives:
(a) Monopsony. Economies of scale and spatial distributioncreate natural spatial monopsonies in the collection and processing of fish, necessitatinggovernment regulation. Current fishing techniques make it virtually impossible for fishermen to sell fresh tuna beyond the atoll where it is caught. Encouraging competition in establishingcollection and storage facilities on each atoll would be wasteful, as it would require large investmentsin additional plants, while raw material would be insufficientto satisfy minimum throughnutrequirements. With a single party collecting tuna, and with fishermenunable to process and sell all tuna in a traditionalway because of limited markets, GOM needs to administer certain price guidelines. Some guidance is also required to ensure that the interestsof the country (in terms of volume of fish exported and income generated) are satisfied, by ensuring that fish is collected from all areas where this can be profitably done, since monopsoniststend to concentrate on the most profitable collection areas.
(b) Legal, Fiscal and Regulatorv Framework. To facilitate viable and sustainableprivate sector participationin tuna processing and collection,while maintainingthe sector's contribution to GOM's budget, the legal, fiscal and regulatory framework needs substantialstrengthening and transparency. Such an enabling environmentdoes not exist currently and cannot be formulated immediately,while there is a pressing need to invest in collection,freezing and storage of tuna.
1.26 Past attempts at expanding the role of the private sector have not always been successful. In the early 1970s, as the demand for Maldive Fish declined, GOM attempted to diversify and maintain exports by contractingwith three foreign companies for the collection and export of frozen tuna. It also attempted to develop a local privately-ownedand controlled frozen fish export industry. One by one these enterprisesceased operations,leaving the current situationwhere STO/FPID is the sole collector and exporter of frozen and canned tuna.
1.27 However, there is renewed interest by GOM, especially in the last year, in encouragingthe private sector to play a larger role in fisheries, particularlysince the investmentneeds of the sector are straining the public sector's borrowing, management and absorptive capacities. GOM would like to focus the public sector's involvementon the provision of intrastructureand regulatory and support services, while encouraging the private sector to assume a larger role in the collection,processing and marketing of fish. In this regard, GOM recently deregulatedthe export of traditionallyprocessed products to allow private sector participationand has invited proposals from private entrepreneursinterested in the collection and freezing of fish for export. - 10 -
The Agenda for the Future
1.28 There are two major requirementsto encourage the effective participationof the private sector:
(a) Legal. Fiscal and Regulatory Framework. As noted above, a strong and transparentlegal, fiscal and regulatory frameworkwill be required to facilitateprivate sector participation. Without such framework,it is doubtful that new private participation,either through direct investment or through participationin existing operations, can be secured.
(b) Pricing/TariffSystem. A government-regulatedpricing system is required to deal with monopsonisticsituations and to allocate the rent of tuna fishing. The present ad hoc system needs to be replaced by one that fulfills several requirements:
* producer prices for fresh tuna destined for freezing or canning and export should be adjusted at reasonably frequent intervals;
* such producer prices should reflect medium/long-term developmentsin world market prices for these products;
* government revenues derived from the fishing sector should not be adversely affected,while such revenues should be increasinglyderived from corporate taxes and/or other efficient taxes or tariffs on frozen or canned products as well as traditionallyprocessed products; and
* in the longer term, with increased private sector participation,the pricing system could provide for more competition among private investors through, for example, setting of floor prices for purchases of tuna.
1.29 To assess the future development alternativesfor the sector, and particularlyto review the future role of the public sector in generatingmore effective development,GOM has initiated a sector study, financed by the Asian Development Bank, that is scheduled to be completed by the end of 1991. The proposed project would take the process one step further, by assisting GOM to put in place the required legal, fiscal, regulatory and pricing policy framework, (see paras. 3.17 and 5.7). It will also provide technical assistance for strengtheningpricing policy (paras. 3.20 and 5.6). IDA staff have had, and will continue to have, consultationwith IFC on the former TA and on the FPID restructuring(para. 1.21). - 11 -
II. BANK EXPERIENCE AND RATIONALE FOR INVOLVEMENT
A. Bank Exverience
2.1 During FY1980-FY1990the Bank financed 13 fisheries projects, involving total lending of about US$266 million, and fisheries components in another 77 projects for about US$334 million. According to a 1984 OED report: "Harvestingthe Waters, A Review of Bank Experience with Fisheries Development",six of the fisheriesprojects reviewed had achieved a creditable proportion of their original aims, while seven were judged at audit to have failed in their major objectives or to have offered an uncertain or marginal outcome. Virtually all the major problems encountered can be traced back to (i) technical and managerial inadequacies; (ii) the lack of understandingof key institutionaland economic issues of the sector; and (iii) the Bank's limited fisheries expertise and technical input during design, appraisal, and supervisionof investments. The report stresses that, unlike in the past, all sectoral issues need attention, as is the norm for other sectors. Key areas that have sometimesnot received sufficient attention are: the technical and administrativecapacity of national fisheries agencies; deficienciesin the assessment of the potential of fish resources; fish catch statistics;civil engineeringaspects of fishing ports; and coordinationand liaison within the Bank and with FAO's Cooperative Program and Fisheries Department staff.
2.2 In contrast to this general pattern, Maldivian projects have been an exception. Bank experiencewith fisheries investmentsthere has been highly satisfactorycompared with the experience of the two other tuna-related fisheriesprojects the Bank has financed and with fisheries projects in general.
IDA Fisheries Prolects in Maldives
2.3 Fisheries has absorbed a major portion of IDA lending to Maldives, with two credits of some US$8.2 million. The First Fisheries Project (Credit 907-MAL) mechanized 500 existing tuna sailing boats and provided engine repair centers and navigation lights. The project substantiallyincreased fish production, fishing efficiency,and vessel safety. Its technical assistance component succeeded in designing and testing one of the most efficient artisanal tuna fishing vessels in the world. Since then, more than 200 have been constructed. Its highly effective credit program, with virtually 100 percent loan recovery, executed by a small unit of MOFA, contrasted with the negative experience of previous fisheries credit programs executed by non- specializedcredit institutions. The Second Fisheries Project (Credit 1302- MAL), which was closed on June 30, 1991, financed a tuna freezing complex to handle about 30 percent of the catch of the country. With its own resources, GOM expanded an old tuna cannery adjacent to the freezing plant. With the freezing complex and the tuna cannery completed and operational,the project has succeeded in substantiallyincreasing the fish catch and exports in the project area while vessel productivityhas also improved markedly.
2.4 In addition to the two Maldives fisheries operations, IDA has financed two projects that deal with the same type of catching and processing of tuna as will the proposed Maldives project--IndonesiaFirst Fisheries and - 12 -
Fisheries Credit Projects--while16 other fisheries projects dealt with various other fish species. These projects and the 1984 OLD report on the Bank experiencewith fisheriesdevelopment are detailed in Annex 1.
Maior Lessons from Maldives Tuna Fisheries Proiect
2.5 The lessons from the Maldives First Fisheries Project, similar to those emerging from the just-completedSecond Fisheries Project, and reflected in the sector note prepared by the Bank with FAOICP assistance, are:
(a) Technical. (i) project preparationand supervisionwere effective because missions contained the appropriaterange of technical expertise; (ii) tuna resources, despite lack of some detailed information,appear ample and able to sustain higher catches; (iii) civil engineeringaspects were thoroughly assessed; and (iv) project design was simple and flexible and involved proven technology.
(b) Institutionaland Managerial. (i) project design reflected the management and institutionalcapability of the implementing agencies; and (ii) although STO, the implementingagency for the Second Fisheries Project, has performedwell, its managerial resources appear stressed, and adjustment of its structure appears desirable; and
(c) Economic. (i) even though key government fish pricing policies were adjusted, previous policies need more elaborate analysis and adjustment to reflect rapidly changing circumstancesbetter and ensure production efficiency and equitable distributionof proceeds; and (ii) canning of tuna is only marginally profitable in Maldives, while tuna freezing can be highly remunerative.
Ma1or Lessons from Overall Bank Experience in Fisheries
2.6 Technical. The design of fishing and transport equipment is highly location-specific;some projects have failed because they employed inappropriatevessel technology. Fishing vessels need to incorporateproven technology or must undergo elaborate design and testing of more efficient vessel technology before vessels are introduced on a large scale. Similarly, fish collector vessels need to be designed for local circumstances. In Maldives, the Second Fisheries Project designed special collect t vessels that took into account the experience of an assorted group of collec.or vessels introduced by private parties and another donor in Maldives in the 1970s. These vessels were too small, had inappropriatefish cooling and storage facilities, and had insufficientdeck-space. The new vessels, although much more effective, still have minor flaws, which will be rectified for the proposed third project.
2.7 In competitiveworld tuna markets, tuna freezing has to be a highly efficient process, with minimum handling and wauimum energy nff:tiaincy,while maintaining reasonable quality standards. Some freezing plants (First Indonesian Fisheries Project) proved inefficientand involved freezing technology inappropriatefor the species concerned. The freezing plant - 13 -
financed by the Second Fisheries Project in Maldives was based on the experience gained in various parts of the world with tuna processed for direct human consumption and for canning. Its blast-freezingsystem ensures very high quality standards--whichare not actually required for the raw material for the canring irdustry, the market for Maldivian frozen fish--the plant was perhaps over-designedin that respect. Brine-freezingtechnology, which has been used for many years on some mother vessels in Maldives, would have been more appropriate. The proposed project would adopt such brine-freezing technology.
2.8 Many fishing harbors incorporatedesign flaws, reflecting planners' insufficientattention to the physical environmentand likely future operations. Harbor lay-out is sometimes inefficientfor the movement of fish, vessels, or vehicles. Both in the Indonesia and Maldives projecte, it had been assumed that reefer vessels would be loaded by lighter, i.e., no expensive deep-water berth would be needed. But when large volumes of frozen fish had to be loaded frequently,such a system proved time consuming and costly. In the proposed project, the port is designed to allow reefsr berthing.
2.9 Institutional. State fisheries corporationsin several fisheries projects have been unable to run fishing or processing operations effectively. In the few cases that state enterpriseswere efficient in processing fish, managementwas: (a) highly competent; (b) made responsible for the success of the company; and (c) able to minimize government interference,but such conditions seldom exist for extended periods of time. In Maldives, STO has had relatively strong and competentmanagement and has experienced limited direct interferencefrom other GOM agencies. However, GOM intends to break-up STO's main activities into separate corporationsand to increase the role of the private sector in fisheries activities,through participationin the processing and marketing of fish, since the investmentneeds of the sector are straining STO's borrowing,management and absorptive capacities. The proposed project includes TA to help achieve this objective.
2.10 FinanciallEconomic. The major financial/economiclesson is that in those cases where fish prices are regulated by governments,pricing policies should be flexible and pragmatic. While the recently closed Maldives Second Fisheries Project dealt with measures (periodicreview) to make the fish pricing system effective in promoting increasedproduction, further adjustment of fish pricing and the institutionalability to handle improvementsare still required, as the existing system has been slow in adjustingprices and lacks an analytical basis (see Annexes 4.6 and 4.7). The proposed project would address this issue through: (i) assurances for continued periodic review and adjustment of tuna prices, taking world market prices, average production costs, and the sector's contributionto GOM revenues into consideration; (ii) the creation of an economic unit (EPCS) within MOFA; and (iii) provision of technical assistance to EPCS (paras 5.6 (b)].
2.11 Human Resources. Experienced local staff and management are essential to successful fisheries projects. Several Bank projects suffered from lack of technical staff and weak management. Judicious use of expatriate technical specialists, working in close cooperationwith local staff, is often essential for project success. If local management or technical expertise is - 14 - in short supply, extensive training should be made part of the project. However, for senior management and technical positions, on-the-job training with assistance from expatriate staff is usually the only way to gain the necessary experience. In Maldives, some technical capability is available, but management experience is in short-supply,necessitating the use of expatriate staff. For the proposed Third Fisheries Project, a manpower developmentplan will be prepared for the implementingagency through technical assistance (para. 5.11).
2.12 Determinantsof Sustainability. The main determinantof sustainabilityto be addressed in the proposed project, in addition to adequate management and O&M, would be the long-term availabilityof tuna resources. The risks associatedwith long-term fish resources and availabilityin Maldives are modest since fish resources appear abundant. In spite of the large recent increases in tuna catches, there is little evidence to suggest that resources in the western Indian Ocean are under pressure (paras. 1.4 and 1.5).
B. Stratezv and Rationale for Future IDA Involvement
2.13 GOM's Oblectivee and Strategv. GOM's objectives for the sector are to increase fish production and its contributionto GDP; preserve marine resources and the environment;improve export performance;and raise the income and living standardsof the traditionalfishermen, who remain the backbone of the sector, and thus maintain critical human resources in the sector. The medium- to long-term strategy envisages focusing the role of the public sector on the provision of infrastructureand support services while encouragingthe private sector to participate in the processing and marketing of fish. GOM believes that private sector participationin the collection and processing of fish should be formulated in the context of a revised regulatory,legal, and fiscal environment. GOM intends to complete such a study by the end of 1991. As recommendedby the Bank, GOM has made a policy decision and taken initial steps to restructureSTO by, inter alia, creating a separate company to handle its fisheriesactivities (see para. 1.21). In the short term, GOM wishes to replace and augment the aging and inefficient floating freezer vessels with shore-basedfreezing facilities in the resource- rich south and north of Maldives and possibly invest in a second cannery in the south. After IDA staff review of these proposals and concern that a cannery may not be viable, GOM decided to delay the establishmentof a second cannery until the existing one becomes fully viable and to proceed with the shore-basedfreezing facilities,in a phased manner. An assurance was obtained that, prior to committing to a cannery on Laamu Atoll or a freezing/coldstorage facility in the north (Haa Alifu/Haa Dhaalu), GOM will inform IDA of the details of such investments.
2.14 IDA StrateRy. Recognizing the past performance and potential of the fisheries sector, and taking account of the risks of becoming too dependent on the only other major sector of the economy, tourism, IDA fully supports the GOM policy of giving high priority to development of the fisheries sector. IDA's strategy is to support GOM's efforts to improve the contributionof the fisheries sector to balanced regional growth, foreign exchange earnings, employment,and poverty alleviation. The strategy, which includes coordinationof other donor investmentsin the sector, takes the - 15 -
lessons from past Bank experience into considerationand: (i) aims for projects that concentrateon eliminatingsector constraints of immediate priority; and (ii) begins to deal with the institutionaland incentive questions of the sector that will eventually determine the roles of the private and public sectors.
2.15 Rationale for IDA Involvement. Based on its successful experience with the previous two operations in the sector, including assistancewith aid coordination,as well as experiencewith similar projects in other countries, IDA is well placed to assist GOM in developing this important sector a step further. In addition to financing specific investments,IDA's assistance to GOM is needed at this critical juncture to address emerging policy, institutionaland environmentalquestions. IDA's experience with private sector participationin development,strengthening of environmental monitoring, and institutionaldevelopment would be instrumentalto the further sustainabledevelopment of this key sector of the Maldivian economy. Other donors to the sector have come to appreciate IDA's leadership role within the donor community in assisting the Maldives fisheries sector and are looking forward to assisting the sector further in collabo.-ationwith IDA. The proposed project, which would support small-scalefisheries, would conform to IDA's fisheries sector policy.
III. THE PROJECT
A. Prolect Obiectives
3.1 The proposed Third FisheriesProject was prepared by GOM with assistance from FAO/World Bank CooperativeProgram (FAO/CP) and the FAO Technical Cooperation Project (FAO/TCP)and is intended to reinforce the existing system of artisanal fisheries and small-scale fish collection. The main objcztiveswould be to:
(a) increase fish production,government revenue, and foreign exchange earnings at a lower processing cost;
(b) increase the income of fishing households to alleviate relative poverty;
(c) reduce migration to the capital, Male, through balanced regional growth; and
(d) create the environmentfor increased private sector participation in the fisheries sector.
B. Brief Proiect Description
3.2 To help achieve these objectives,the project will include the following components:
(a) constructionof a port at Kooddoo in Gaafu Alifu in Southern Maldives for fishing boats and collector vessels, including a deep- - 16 -
water berth for direct loading of frozen fish on to refrigerated (reefer) vessels;
(b) constructionof a fish freezing/coldstorage complex on the same island, consisting of a brine freezing and cold storage plant, support facilities such as power and water desalinationplants, workshops, stores, offices and staff housing, and miscellaneous operationalequipment such as fish containers,forklifts and cranes;
(c) strengtheningof the atoll-wide fish collection system, including the provision of a fleet of seven collector vessels, comprising three new and four retrofittedexisting boats equipped with refrigeratedsea water systems, and one mooring tug, and local training for collectorvessel captains and engineers; a-ad
(d) provision of technical assistance to:
* the Project ImplementationUnit (PIU) for technical studies and preparation of detailed design of project facilities, procurement,and supervisionof the constructionwork;
* STO/FPID for its own restructuring;
* MOFA for strengtheningfisheries research and collection of fisheries statistics, further improving the design of existing fishing vesaels, and strengtheningEPCS to advise GOM on fish pricing and related policies and provision of training to its staff;
* ERU of MPE for monitoring key environmentalparameters during project implementation;and
* MTI for preparing and implementingthe Action Plan based on the reco mendations of the ongoing 'OM sector study, for the encouragementof increasedprivate sector participation in the fisheries sector.
A technical assistance schedule, listing the above consultanciesand their required person-months,is attached as Annex 5.1.
C. Proiect Area
3.3 For the purpose of fish collection,the project area would cover two atolls, Gaafu Alifu and Gaafu Dhaalu, situated south of latitude 1.5 (the One-and-Half-DegreeChannel). The area is approximately250 nautical miles from Male. Gaafu Alifu and Gaafu Dhaalu are actually one natural atoll divided into two administrativeunits. The atoll consists of about 90 islands, of which 20 are inhabited. The population totals nearly 18,000, including around 3,200 fishermen, and the main economic activities are fishing, fish processing,and agriculture. Around 141 motorized fishing dhonis in the atoll fish regularly. Criteria for selecting the site for the port and freezing/coldstorage complex includeds (a) distance of the - 17 - shoreline from the coral reef; (b) exposure to wave climate; (c) proximity to open sea for access or anchorage of reefer vessels; (d) proximity to fishing grounds and fishing fleets; and (e) adequate land for shore facilities. The uninhabited island of Rooddoo, located at the northern fringe of Gaafu Alifu atoll, satisfied all criteria best. It is approximately 2 km away from the atoll's administrativecenter (VillingiliIsland), from which it is separated by a deep channel that provides access to the atoll and to large reefer vessels. Kooddoo is fairly shelteredfrom both the southwest and northeast monsoons--fromthe southwestmonsoon by a bulge in the reef west of the shoreline,which would facilitate the constructionof relatively low-cost marine structures. Beyond the reef, depths are well suited for mooring reefer vessels. Kooddoo is also close to excellent fishing grounds, with a relatively large number of mechanized fishing vessels resident in the nearby islands. Tides, current, and littoral drift do not constrain constructionof a fishing port.
D. Detailed Proiect Description
Kooddoo Port and Freezing/ColdStorage CoMplex
3.4 The facility comprises a small port that incorporatesboth unloading and outloading berthing for fish, fuel, materials, and other consumables;and shore-basedfreezing and cold storage facilitieshoused in a single large building. The complex would be supported by a self-contained infrastructurecomprising a power generation plant; fuel storage; water collection and desalination,storage, treatment and distribution;waste disposal facilities;offices, workshops, housing, and worship and recreational facilities. The shore facilitieswould be in a landscaped and replanted area to minimize any visual environmentalimpact on the existing vegetative backdrop.
3.5 Fishing Port. The port provides fish landing lnd vessel servicing berths constructedwithin a dredged basin close to the freezing and cold storage complex and enclosed within protective rubble-moundbreakwaters. A separate fish outloading and fuel oil loading berth would be provided at the edge of the fringing reef. This is adjacent to water that is sufficiently deep to accommodaterefrigerated reefer and oil supply vessels.
3.6 The unloading berths would be constructedover the existing beach and would comprise about 290 meters of berth structures, includingbollards and tenders, sufficient to accommodatealongside up to five 15-meter dhonis and three 23-meter collectorvessels. Mooring space would also be available for a mooring tug and National Security Service patrol vessel. Fresh water and fuel supply service points would be provided at separate service berths for the collector vessels and dhonis. At the dhoni unloading berths, four off-loadingpits would be provided to hold fish baskets and to facilitate the grading of fish. Weighing points would be adjacent to the unloading pits and the collectorvessel unloading area. The inner port basin will be about 190 m x 100 m and dredged to provide a depth of 3 meters at low tide. The inner harbor basin would be protected on the north and east by a rubble-mound breakwater approximately215 meters long, and to the west by a rubble-mound causeway about 170 meters long, which also would provide access to the outloading berth. The breakwaters and causeway would be constructed of 18_
imported rock rather than mined local coral, a feature designed to minimize negative impact on the local coral reef environment. A 250 meter-long entrance channel, 25 meters wide and dredged to 3 meters below Low Water Spring Tide (LWST),would provide access from deep water to the port basin. The outloading berth would comprise a 30 m x 15 m loading platform sufficientlylarge to accommodate frozen fish outloading trailers and of sufficient length to permit one- or two-hatch-loadingof the reefer vessel. The area and length of the platform would be further reviewed during the detailed design stage after informationis obtained on the configurationof the reefer vessels likely to use the facilities. The outloading platform would be protected from vessels' berthing impact by two "breastingdolphins" while two "mooring dolphins"would be provided for securing the vessels alongside the platform. The load platform would comprise a reinforced in-situ or precast concrete deck supported on vertical piles. The loads from the fish outloading train would require only a relatively light deck structure. However, a design according to those criteria would seriously restrict utility of t'.eberth and its potential contributionto subsequent development in the atoll. The structural strength of the deck and its approach trestle would, therefore, be such as to permit its use for general cargo operations. The berth at the load-out jetty would be dredged to 7 meters below LWST to accommodaterefrigerated reefer vessels of up to 2,000 GRT.
3.7 The loading berth would be connected to the island by a 300-meter causeway and elevated access trestle with a roadway width of 8 meters; the innermost 170 meters would comprise a rockfill breakwater. The outer 130 meters of the access trestle woule comprise an in-situ or precast reinforced concrete deck structure supported on precast concrete beams and raked piles driven into the seabed. The causeway and trestle would also support oil and water pipelines and power lines. Technical drawings for the port and other project facilities are presented in Chart 4.
3.8 Wharf Equipment. To unload fish from dhonis and collectorvessels, transport fish and for loading of frozen fish to reefer vessels, the following equipmentwould be provided: (a) fixed hydraulic cranes, (b) heavy- duty platform weighing scales with electronicweighing heads, and weighbridge to weigh incoming and outgoing tuna; (c) tanks to receive refrigerated seawater and bilgewater from collectorvessels; (d) forklifts; (e) small tractors and trailers; (f) overhead gantry cranes to move fish containers over the chilling and freezing tanks; (g) hot-dip galvanized open contai'kersable to hold one ton of fish, for freezing tuna; (h) stainless or hot-dip galvanized steel-plate fish containers,each designed to hold one ton of fish, for storage of tuna; and (i' double-walledplastic fish boxes of 1.5 m3 capacity, for multi-purposeuse.
3.9 Freezing and Cold Storage Plant. This plant would consist of: (a) a 100-ton/daybrine freezing and chilling facility; (b) a 1,500 ton cold storage facility; (c) a 30-ton/dayblock ice plant and 60-ton storage facility; and (d) miscellaneousequipment. The freezing and cold storage facilitieswould be designed to receive around 14,000 tons of tuna per year. Based on this annual throughput and on the size of reefer vessels, the capacity of the cold storage would be 1,500 tons, with brine freezing capacity designed to cope with peak landings of around 100 tons/day. Freezing facilitieswould consist of eight brine tanks each of 10 tons capacity, able - 19 -
to reduce the temperatureof fist to -20- C. The cold store would consist of two 750-ton capacity rooms, each able to hold 750 containers, at a temperature of -25- C and equipped with airlocks, two entrances, four air coolers, and an emergency alarm system. To hold fish until they can be frozen, four refrigeratedseawater chilling tanks, which could also be operated as brine freezers, each holding 10 containers,and designed to chill fish from ambient temperature to around 3- C would be provided. During detailed design, consultantswill review the need for the multi-purposetanks, or alternatively install four more brine freezing tanks. The block ice plant would have a capacity to produce 30 tons/day of 25 kg blocks and a storage capacity of 60 tons maintained at around -6- C to -8- C. The refrigerationplant would be operated on a two-stage compressionsystem using screw compressor units; condenserswould be of the water-cooledvertical type.
3.10 Services and Support Infrastructure. This would include:
(a) a power plant of 2,500 KVA, consisting of five diesel generators, each with an output capacity of 500 KVA to supply electricity to the entire complex;
(b) a desalinationplant to generate 20 m3 of fresh water per day using waste heat from the power plant to back up rainwater collection;
(c) two 400 m3 steel diesel fuel storage tanks with retainingwall and fuel distributionpipes to the power plant and refueling points at the fisheriesharbor;
(d) two 200-250 m3 steel rainwater storage tanks, filters, pumps, chlorinationplant, pressurized tank, and distributionnetwork for potable water;
(e) aerating unit, buffer storage, pumps, pressurized tank, and distributionnetwork for well water to be used for flushing and for ordinary washing purpose;
(f) seawater system consisting of supply pumps, pipes, seawater buffer storage tank, pumps and pipes, for condenser cooling and the freezing complex and for the harbor area for washdown purposes;
(g) sewage and waste disposal systems designed to reduce potential negative effects of any identifiedpollutant loading factors;
(h) miscellaneousequipment consisting of battery chargers, compressed air units, special tools and workshop equipment, internal telephones,radio station, incinerator,fire fighting equipment to contain oil spills, etc.; and
(i) staff housing, dormitories,guest houses, office block, stores and miscellaneousbuildings of around 1,830 m2 .
3.11 Fish Collector Vessels. Tuna is currently purchased at eight sites in Gaafu Alifu and Gaafu Dhaalu atolls. However, it may be purchased at six sites at any one time, depending on the season. It is estimated that seven 20
collector vessels are needed for adequate collection of tuna. Three would be new vessels9 while four existing vessels would be refurbished. The new vessels9 made of steel, would have an overall length of about 23 meters with a beam of about 6.5 meters. Six fish holds would be able to keep 25 0ons of fish in chilled temperature to around 3 C, and would operate in combination with block ice to deal with large landings. The vessel would have a main engine of about 250 JiP for & service sperd of 8.5 knots at full load. Since the collector vasselE are the moin nourcC of diesel fuel sales to dhonis, each vessel would be equipped with a fuel storage tank of about 5,000 liters capacity. The vessels would go to Colombo for annual maintenance.
3.12 Four existing collector vessels would be selected from nine financed under an earlier Kuwait Fund-financed project. The vessels would be examined by a marine surveyor prior to selection. Conversion of the vessels would include correction of structural defects; enhancement of crew accommodation; provision of life-saving, electronic navigation, and fire fighting equipment; increase in generating capacity; adjustment of fish hold refrigeration systems; and modification of steering, anchoring, and mooring systems. These vessels would be able to keep 18 tons of a mixture of fish, chilled seawater, and ice in their holds and would be equipped with extra fuel tanks for distribution purposes.
3.13 Mooring Tug and Navigation Lights. For docking and moving reefer vessels, oil tankers, and collector vessels, a suitable mooring tug equipped with twin diesel engines of a total of about 300-350 HP would be provided. The fish collection system would require navigational lights within the atoll, to allow night passage from collection points to the cold storage complex. A total of 32 navigational lights and 30 beacons would be provided and installed on reefs and on buoys near entrance channels to the port. Those sited near water would have a concrete base; all would have galvanized steel towers and be solar powered. To determine the exact location of these navigation aids, the Ministry of Transport and Shipping, which is responsible for maintenance of navigational aids, would carry out a survey.
Technical Assistance
Support to the State Trading Organization (STO)
3.14 Detailed Design and Constructior Supervision. An engineering consultant firm financed under the Project Preparation Facility (PPF) (para. 4.5), will carry out pre-design wind and wave, climate, geotechnical, hydrological, and coastal processes studies as well as an environmental baseline study and an impact assessment anidmitigation plan. The consultants will then prepare detailed designs and tender documents for the port and refrigeration complex. Similarly, a naval architect consultant will be hired to prepare detailed designs for the collector vessels and mooring tug. A total of up to 114 person months (pm) would be required for these (pre) design studies, of which 2705 pm would be for technicians. For supervision of construction of the works, refrigeration plant, and vessels, a total of up to 98 pm would be required, of which 44 pm would be for technicians. The TOR for detail design of the port and plant, and of the collector vessels, are attached as Annae 5.2 and 5.3, respectively. GON has begun the process of - 21
recruiting the consultants, 9 which is expected to be completed by February 1992.
3.15 Su Port to FPID, To strengthen financial controls and management of FPID, an accountant would be appointed foor the PIU for up to 36 pm. To train captains and engineers for the collector vessels operating out of the Kooddoo freezing/cold storage complex, consultant services (5 pm) of a master mariner and a marine engineer will be provided. The training will involve formal generic instructions and delivery trial voyages. Short-term refrigeration and other engineering consultant services (12 pm) would also be provided to &66ist the PIU ir.FPID in its day-to-day activities.
3.16 FPID Restructuring. Consultant services (12 pm) will comprise a Management and Organization Specialists a Financial and Accounting Specialist9 a Legal Expert, and a Manpower Development and Training Specialist. They will review FPID's: (i) present and planned business operations; (ii) organization structure and links to STO; (iii) manning charts; (iv) financial structure and systems, procedures and reporting formats; and (v) legal stature, and make its recommendations to enable COM to make final decisions on FPID's: (a) exact legal status; (b) its links with STO, its financial structure and a detailed organization structure; and (c) manpower requirements and plans for their attainment. This will also assist FPID in implementing its new structure, including preparation of manuals, and instituting financial controls to enable efficient and profitable units. The TOR for this consultancy are attached as Annex 5.4.
SUport of Ministry of Trade and Industry (MTI)
3.17 Private Sector Participation in the Fishing Sector. Consultant services (16 pm) will be provided to MTI to draw up an action plan for detailed design and implementation of a framework to facilitate and encourage private sector participation in the collection, processing, and exporting of fish, emanating from GOM's ongoing sector study. The TOR for this consultancy would be prepared by MTI upon completion of the sector study and GOM's final decisions.
Support to Ministry of Fisheries and Agriculture
3.18 Tuna tagging and length-frequency studies. MOFA is currently involved in tura tagging studies, supported by technical assistance from various sources. This assistance will expire in early 1992. The proposed project would provide FRPI with the ccnsultant services of a marine resource biologist (36 pm) and equipment to maintain the tuna tagging program and expand it to include length-frequency, age composition and length:weight measurements that are needed for resource assessment. In addition, two biologists would be trained with funds rrom IDA's ongoing Education and Training Project (Credit 1981-HAL).
3.19 Statistics, Consultant services of a statistician (5 pm) would be provided to assist MOPA to enhance the reliability of current catch statistics and to initiate the analyses of economic data related to catches and fishing effortse - 22 -
3.20 Economic Planning and CoordinationSection (EPCS). Consultant services of two economists (14 pm) would be provided to the EPCS to, inter alia: (i) develop a pricing formula for fresh tuna that would take world market prices, production costs of fisherman and collectors/processors, and sector contributionto GOM revenues into consideration;and (ii) design studies, including studies on sector contributionsto the economy and on incentives to fishermen and collector/processorsto increase fish production and exports in a sustainablemanner.
3.21 Vessel Design. Most fishing operations in Maldives are carried out by traditionalmechanized dhonis and by the improved dhonis developed under IDA's Second Fisheries Project (Credit 1320-MAL). These boats are only suitable for day trips. The Second Fisheries Project had a component to build a minifleet of extended range fishing vessels to enable Maldives to start exploiting distant fishing grounds beyond the reach of traditional fishing vessels. STO jointly with MOFA decided in 1987, for technical and managerial constraints,not to go ahead with the component. It is MOFA's firm belief that, with their improved capabilities,a developmentalharvesting sector component should be included in the proposed project. To assess the feasibilityof longer trips, the project would provide for constructionof two experimentalvessels equipped for fishing outside the traditionalnear-shore fishing areas. To assist MOFA in design and constructionsupervision, the project would engage a naval architect for 12 pm. The vessels would be used particularly to fish for shark and deep-swimmingyellowfin tuna (seasonally) and for surface tuna the rest of the year The assistance to the MOFA will include funds for short familiarizationvisits to neighboring countries with similar boat designs and constructiontechnologies as those to be undertaken under the project.
Support to Ministry of Planning and Environment (MPE)
3.22 As part of the pre-design studies (para 3.14), design consultants engaged by STO/FPID will carry out an environmentalbaseline survey and impact assessment for ERU in MPE. The objective is to strengthen the capacity of ERU during the environmentalassessment to enable its staff to evaluate proposed environmentalassessment/mitigation measures and see them through the constructionand operating stages of the project. The survey would include an assessment of the environmentalbaseline conditions of the site, a study of the environmentalimpact of the constructionand operation of the Kooddoo complex, and the identificationand costing of mitigating measures (paras. 3.23-3.27). A consultant environmentalspecialist will be provided (9 pm) to assist the ERU to: (i) design and monitor key environmentalparameters during project implementation,to ensure that mitig ting actions recommended in the environmentalassessment are carried out and achieve the desired environmental objectives of the project ,and (ii) train ERU staff in the collection and management of environmentaldata, including not only data for (i) above, but for nationwide needs, in line with the National Action Plan for Environmental Management and Planning. Equipment, includingmicrocomputers and software, water quality equipment and testing kits, and land survey gear will also be provided for environmentalmonitoring. 23 -
E. EnvironmentalAspects
3.23 Based on environmentalassesome.t during preparation and appraisal, the project is not expected to pose any major environmental risks. However, further environmental assessment and mitigation plan will be prepared as indicated in para. 3.14. Regarding fish rejources, the catch-per-unit-effort is still increasing for the Maldivian artisanal fishermen, and the increased production under the project is not expected to have negative effects on fish resources (para. 1.4). However, tropical marine ecosystems, although rich and fast in turnover. are deliratp and could be damaged unless carefully monitored. Under the project, provisions have been made for FRPI to monitor closely catch and effort data, including assessment of changes in the age composition and length:weightrelationship of the catch, over the life of the project, to carry out tuna fish stock assessment programs, and to implement management measures if and when necessary (para. 3.18).
3.24 To minimize adverse effects on coastal processes, a detailed assessment of sand transportmechanisms at the site of the port would be carried out by field investigationsand numericalmodeling procedures at the detailed design stage. The layout and lengths of the rubble-moundbreakwaters would be reviewed in light of the findings of these studies, and mitigation measures would be devised to overcome any significantadverse consequences. Marine and groundwaterpollution would be mitigated by a collection system linked to treatment facilities. These facilitieswould include, among other things, a brine/bloodcoagulation system for removing blood wastes, septic tanks for all sanitary facilities,closed loop evaporativecondensers for the cooling systems, cutter suction dredging for the port operations, disposal of dredged material on shore, incinerationof solid wastes, and the recycling of brine. Furthermore,fuel oil installationswould be surrounded by oil-proof containmentstructures and floating booms, while absorbentswill also be provided for accidental spills from oil transfer activities.
3.25 Adverse environmentaleffects will be further eliminated by not mining sand and coral for rubble and concrete aggregates, as these materials would be imported. Important species of vegetation would be specified for landscapingof the site once constructionwork has terminated. Power generationwould be equally environment-friendlythrough sound-proofingand exhaust gas dischargemeasures. Employment opportunitieswould allow the nearby islanders, currently resident in Male for temporarywork, to return to their islands, thus supporting GOM's policy of reversing the trend of worker migration to Male. In spite of the above, some environmentaldegradation would occur, noticeably in the loss of some of the reef and a few terrestrial resources such as coconut trees and shrubs.
3.26 During preappraisalof the project, it was ascertained that the island of Kooddoo is not an importantnesting area for turtles. The limited nesting and eggs laid on the island do not occur in the area designated for the project facilities. Nevertheless, an assurance was obtained that GOM would take all measures required to prohibit the digging for turtle eggs and the taking of live turtles on and around the island of Kooddoo, by December 31, 1992. - 24 -
3.27 In compliance with the mitigation plan, environmental aspects of the project will be monitored by ERU, both at constructionand operational stages (para. 3.22), including: changes in coastlines, sand movement, effluent disposal, and water quality parameters, such as dissolved oxygen and salinity as well as nutrients, biochemicaloxygen demand, and heavy metal presence, and any additionalmeasures identifiedby the EA process and recommended in the mitigation plan. Every effort will be made to protect unique or sensitive habitats or other marine flora/fauna,if necessary, by employing appropriatemitigation measures during construction,such as silt barriers, sound disposal of dredged material, or other means identified in the mitigation plan.
F. Role of Women
3.28 Women's responsibilitieson the islands have mainly included the processing of Maldive Fish, the gathering of firewood,now in short supply, and subsistence agriculture. Other traditional income-generatingactivities include coir-rope making, thatch and mat weaving, crafts, midwifery, and traditionalmedicine. Processing of Maldive Fish done by fishermen'swives, while contributingto family incomes, is an arduous nocturnal task and a strain on the health of women.
3.29 The project would not change the current production opportunities for Maldive Fish in the project area (see paras. 6.2 and 7.6) and, therefore, would not reduce the employment and incame opportunitiesof fishermen'swives. The guaranteed fresh fish collection capacity to be provided by the project would, however, increase beneficiaryfamily incomes by about 32 percent, from an estimated Rf 6,300 (US$590) presently to about Rf 8,300 (US$780) (see para. 7.7. and Annex 7.1). These higher incomes would allow women in the project area the choice of continuing to process Maldive Fish or engage in other productive activities,which may not be as remunerativeas processing Maldive Fish but would improve their quality of life.
IV. PROJECT COST AND FINANCING
A. Proiect Cost
4.1 The project cost includes investmentcosts associatedwith various project components and incrementalrecurrent costs of the components, such as support for tuna resource assessments,improved fisheries statistics, and maintenance of navigationalaids, which would be implementedby GOM ministries. Costs of operating the freezing/storagecomplex and vessels are not included, as these costs would be covered from revenues generated by the operations of the complex.
4.2 Project base cost, including supporting activities, are estimated at Rf 272.8 million, equivalent to US$27.1 million. Of these costs, Rf 55.7 million, or US$5.5 million, will be required for the port; Rf 79.9 million, or US$7.9 million, for the construction of the freezing and cold storage complen; Rf 35.9 million, or US$3.6 million, for equipment for the freezing and cold storage complex; Rf 34.7 million, or US$3.4 million, for the vessels; Rf 24.8 - 25 -
million,or US$2.5 million, for design and constructionsupervision of the port and plant; Rf 13.3 million, or US$1.3 million, for office, housing, and workshopes and Rf 25.7 million, or US$2.6 million,for supporting activities. Around 37 percent of the total base cont would be spent on civil works, about 16 percent for refrigerationand ancillaryequipment and 13 percent for collectorvessels, mooring tug, and navigationalaids. Another 7 percent would be require'cfor transport and handling equipment, 19 percent for technical assiitanceand training, and the remaining amount for shipping, mobilization,miscellaneous equipment, and incrementalrecurrent costs. With all equipment,boats, technical assistance,and raw materials and labor for civil works being imported, the foreign exchange content of the project is over 98 percent. Detailed costs are given in Annex 2, and vsummaryproject costs are given in Table 4.1 below.
Table 4.1: PROJECTCOST la
I Total Rf ' 000 US$ '000 2 Foreign Base Local Foreign Total Local Foreign Total Exchange Coate
Rooddoo Port and Freezing/Cold Stor#Ae COmolex Port Works 0 55,745 55,745 0 5,541 5,541 100 20 Freezing/Cold Storage Plant 1,965 77,923 79,889 204 7,737 7,941 98 29 Office, Housing,Workshop 637 12,680 13,317 66 1,258 1,324 95 5 Supply of Misc. Equipment 0 35,925 35,925 0 3,571 3,571 100 13 Vessels 0 34,657 34,657 0 3,445 3,445 100 13 Navigational Aids 223 1,133 1,356 22 112 135 84 1 TAITraining for Vessels 0 1,383 1,383 0 138 138 100 1 Design/Supervision for Port, Plant 0 24,828 24,828 0 2,468 2,468 100 9 Subtotal 2,825 244.275 247.100 293 24.270 24.563 99 91 Technical Assistance Support to PPID 0 6,640 6,640 0 660 660 100 2 Support for Restructuring PPID 0 3,898 3,898 0 388 388 100 1 Support to !OPA 1,137 9,764 10,902 113 971 1,084 90 4 Support to Env. Res. Unit 516 1,746 2,262 52 173 225 77 1 Private Sec. Encouragement 0 2,012 2,012 0 200 200 100 1 Subtotal 1,653 24.061 25,714 165 291 2.j 94 9 Total BASELINECOST 4.479 268.335 272.814 458 26.661 27,119 98 100 Physical Contingencies 158 11,403 11,562 16 1,134 1,149 99 4 Price Contingencies 953 21,942 22,895 82 2,194 2,276 96 8
Total grolect Cost 51589 301.681 307,270 556 29.988 30.544 98 113
La Project itemsare exempt from duties and taxes.
4.3 Estimates of the cost of all civil works are based on preliminary engineering studies (para. 5.13), soil analysis, and designs with detailed measurement of quantities,applied to constructioncosts obtained from local and foreign contractorsworking on similar constructionwork in Maldives and neighboring countries. Costs of most constructionmaterials, such as aggregates, sand, and concrete blocks, are based on quotationsfrom suppliers in neighboring countries, such as Sri Lanka. Costs of refrigeration.quinuent - 26 -
and machinery and fish handling equipment for shore facilities are based on recent c.i.f. quotations from some Nordic countries. Coots of fully equipped collector vessels are based on price quotations obtained from foreign boat builders. Although detailed design for the project has not yet been completed, the estimated cost for the project has been reviewed in detail and updated over several stages (para. 5.13).
4.4 The following physical contingency rates have been applied to the base costs: 10 percent for civil works on the port; 5 percent for vessels and civil works for the plant; 3 percent for the freezing and cold storage complex; 2 percent for the miscellaneousequipment includingthe jetty and transportationequipment; and 0 percent for technical assistance and recurrent expenses. Price contingencyestimates assume an increase in local currency costs of 7.5 percent per annum throughout the project implementationperiod. For imported items the estimated annual price escalation is 3.7 percent per annum for 1991 and beyond.
B. Financing Plan
4.5 The proposed IDA credit of SDR 7.6 million (US$10.0million equivalent)would finance 33 percent of the foreign exchange cost and 9 percent of local costs of the project. This correspondsto 33 percent of total project cost. The proposed Credit would finance:
(a) the civil works contract to construct the port, office/housing/ workshop, and navigationalaids;
(b) the constructionsupervision of the port, plant, and vessels;
(c) TA support to FPID for project implementation;and
(d) TA (includingequipment) support to MOFA.
The pre-design studies for the port, detailed design for the port, plant and vessels, and TA for the restructuringof FPID are being financed by IDA's Project Preparation Facility (PPF) advance of US$1.5 million. In accordance with the standard terms and conditions for the advance, upon effectivenessof the Credit, the advance would be repaid through reimbursementrefinanced under the Credit.
4.6 It is expected that Norway and Sweden would separately provide funds amounting to US$6.7 million and US$2.4 million equivalent,respectively, to finance the freezing/coldstorage plant. The Norwegian financing is a mixed credit comprisinga grant (about 22 percent) from the Norwegian Agency for Development Cooperation (NORAD) and a credit from Eksportfinans(about 78 percent) guaranteed by the Norwegian Guarantee Institute for Export Credit, Den Norske Bank and NORAD. The Swedish financing, also in the form of a mixed credit, will be provided by the Swedish Agency for Technical and Economic Cooperation (BITS) through Nordbanken of Sweden, with a guarantee to be issued by the Swedish Export Credit Guarantee Board. About US$0.2 million of the Norwegian funds would be used to finance guarantee fees of the guarantors. The Nordic Development Fund (NDF) is expected to lend US$5.6 million equivalent to cover equipment for the freezing/coldstorage plant, upgrading - 27 -
of existing collector vessels, a mooring tug and TA to ERU. The OPEC Fund and UNDP would, respectively,provide a loan of US$2.6 million equivalent for the new collector vessels and a grant of US$0.3 million equivalent to fund (with IDA) the TA for FPID restructuring. The OPEC Fund loan would be administered by IDA. GOM would contribute about US$3.1 million equivalent to finance the remaining costs of the civil works contract,part of the TA to MOFA, and the recurrent costs of the navigationalaids. Even though the GOM contribution will be spread over five years (1992: US$1.7 million; 1993: US$1.3 million; 1994-1996:US$0.1 million), it means a major financial effort on the part of GOM. An assurancewas obtained that GOM will make adequate overall budgetary provisions covering the entire implementationperiod and any unforeseen contingencies. The financing plan is summarized in Table 4.2 below and presented in detail in Annexes 3.] and 3.2.
Table 4.2: FINANCING PLAN
Percentage of Prolect Total F. Exchange Local Foreign Total Cost Cost ----- ($ million) ------Z --
Government 0.2 2.9 3.1 10.2 9.7 IDA 0.1 10.0 10.0 32.8 33.3 Norway 0.2 6.4 6.5/a 21.3 21.3 Sweden 0.1 2.3 2.4 7.9 7.7 Nordic Development Fund 0.1 5.5 5.6 18.4 18.3 OPEC Fund 0.0 2.6 2.6 8.5 8.7 UNDP 0.0 0.3 0.3 1.0 1.0
Total 0.6 30.0 30.5 100 100
Note: Totals may not add up due to rounding.
/a Norway will provide an additionalUS$0.2 million equivalent to cover guarantee fees for the Norwegian credit.
4.7 GOM has completednegotiations with the Nordic (Norway, Sweden and NDF) cofinanciers. The Board of the OPEC Fund has approved OPEC Fund's financing,while UNDP's contributionhas also been approved through the regular program of assistance to Haldives. Cofinancingwill be by parallel arrangements,except financing for the TA to restructureFPID, which will be financed jointly by IDA and UNDP. A detailed plan by financing agency and by component is shown in Annex 3.1. This plan has been agreed to between GOM and the cofinanciersand has been finalizedwith GOM. A condition of effectivenessfor the IDA Credit will be the effectivenessof the Norwegian, Swedish, NDF, and OPEC Fund agreements. - 28 -
C. Onlendint Terms
4.8 The IDA credit would be on standard terms. GOM would onlend to STO/FPID about 69 percent of the foreign assisted and GOM funds which would benefit FPID directly (65 percent of total project costs),including US$2.6 million of the proceeds of the IDA credit, at an interest rate of 13 percent per annum, with a repayment period of 20 years, including five yeewc of grace, with GOM bearing the foreign exchange risk. These terms and conditions were agreed to in view of the fact that the interest rate reflects commercial rates prevailing in Maldives, provides adequate coverage for GOM to bear the foreign exchange risk and is positive '.n real terms (given the projected long-term interest rates in Maldives).2/The signing of a Subsidiary Loan Agreement between GOM and STO/FPID for onlending the proceeds from the IDA credit, embodying these terms and conditions and acceptable to IDA, is a condition of effectivenessfor the IDA credit. Details of the costs to be recovered from STO/FPID are presented in Annex 3.3. The prcject-suppoitedport and navigationalaids represent basic public sector infrastructurewith benefits beyond the project; these costs, totalling about 25 percent of the total project cost, would remain a charge against the GOM budget rather than being onlent to STO/FPID. The costs of all technical assistance except for design and constructionsupervision of the plant, amountingto about 9 percent of the total project cost, would also be charged directly to GOM. Port operations and maintenance (not including those of navigationalaids, to be maintained by the Ministry of Transport and Shipping)would be covered from STO/FPID revenues,while revenues from the investment paid to GOM would represent an indirect cost recovery for the capital costs of the port.
D. Procurement
4.9 Procurement under the project would be undertaken by the respective implementing agencies.
IDA Financed Components
4.10 Civil Works (USS8.1million),I/ comprising port works (US$4.1 million),A/ staff housing and offices (US$1.0 million),A/ and navigational aids (US$0.1million),4/ would be procured as a package following internationalcompetitive bidding (ICB) in accordancewith the Guidelines for Procurementunder IBRD Loans and IDA Credits (the Guidelines). In bid
2/ Interest rates in Maldives are regulated, with an upper ceiling of 3.5 percent above New York Prime, which will be 11.5 percent9 given the prevailing New York Prime rate during negotiations. A recent IDA economic mission to Maldives has reco-mended that these ceil:tngson interest rates be removed. IDA's projected inflation rate (CWI\ for Maldivee is 6.6 percent per annum for the period 1992-1995 und 4.3 percent per annum for 1995-2000.
X/ Total for project.
A/ IDA financed. - 29 -
comparisons,eligible domestic contractorswould be allowed a margin of preference in accordancewith the Guidelines.
4.11 Equipment and Materials (US$92.000),3/including tags, applicators, calipers, and small research equipment required for the TA to MOFA (US$24,000),4/would be procured through intern&tionaland/or local prudent shopping, under contracts awarded on the basis of comparison of price quotations obtained from at least three suppliers.
4.12 Vessels (US$4.1million).3/ Constructionof two prototype fishing vessels (US$94,000)4/,under the vessel design TA for MOFA, would not be suitable for ICB given the small size of the potential contract and, therefore,would be procured by direct contracting from STO's Alifushi boatyard, the only local boatyard with the requisite qualificationsto undertake the construction in the country, in accordance with procedures acceptable to IDA.
4.13 Consultant Services and Training (USS5.1 million).3/ Consultancy services (US$4.7million) A/ would be procured under Bank Guidelines for the use of consultants.
Components Financed by Cofinanciersand GOM
4.14 The three new collectorvessels financed by the OPEC Fund (US$2.6 million) would be procured following Limited InternationalBidding (LIB) procedures on the basis of the evaluation of bids invited from at least three qualified suppliers, in view of the limited number of potential suppliers for such vessels. The refriferatiox:Plant and eguiDment (US$5.4million) and transport equipment (US$2.0million) financed by the Nordic cofinancierswould be procured under a turnkey contract, according to the Nordic financiers' respective procurementprocedures. An assurancewas obtained that GOM would allow IDA to comment on the specificationsof the proposed plant and constructioncontracts prior to issuing the bidding documents.
4.15 Vessels (four to be refurbished--US$1.1 million, and a mooring tug --US$0.3 million) to be financed by NDF would be procured according to NDF's procurementprocedures. Technical assistance consultants and eauipment for ERU (US$0.3million) financed by NDF would also be procured according to NDF's procurementprocedures.
Review of Procurement
4.16 Prior review by IDA of bidding documents and proposed contract awards would be required for all IDA and OPEC Fund-financedcontracts exceeding US$40,000. The estimated total value of the IDA financed contracts that wiY. be subject to prior review would be US$9.98 million (99.8 percent of the credit), and that of the OPEC Fund financed contractswould be US$2.59 million (100 percent of the OPEC Fund loan).
4.17 The procurement arrangementsare summarized in Table 4.3 below: - 30 -
Table 4.3: PROCUREMENTARRANGEMENTS La (US$ '000)
Procurement Method Project Element ICE LIB Other /b Total cost La
Civil works 8,109 5,512 13,621 (5,190) (5,190) Refrigerationplant and equipment 5,429 5,429 Transport equipment 1,961 1,961 Equipment and materials 92 92 (24) (24) Vessels 2,588 1,468 4,056 (94) (94) Consultantservices and training 5,148 5,148 (4,692) (4,692) IncrementalRecurrent costs 237 237 Total 8.109 2.588 19.847 30.544 (5,190) (4,810) (10,000,
la Inclusiveof physical and price contingencies. /b Includes prudent shopping,direct contractingand consultantselection procedures, as well as items financedby the Nordic cofinanciersin accordancewith their respectiveprocurement procedures. Note: Figures in parenthesisare the amounts financedby the Credit.
E. Disbursements
4.18 Disbursements under :he IDA Credit will be completed by June 30, 1997, almost six years after Board Presentation. Disbursements from the Credit, detailed in Annex 3.4, will be made on the following basis:
(a) Civil Works: 64 percent of the total expenditures;
(b) Equipment and Materials: 100 percent of foreign expenditures; 100 percent of local expenditures (ex-factory); 90 percent of otler local expenditures;
(c) Prototype Fishing Vessels: 100 percent of foreign expenditures; 100 percent of local expenditures (ex-factory); 90 percent of other local expenditures;
(d) Consultant Services: 100 percent of total expenditures;
(e) Refunding of PPF Advance.
A disbursement profile has not yet been developed for Maldives. Following anticipated completion of detailed designs by October 1992, the civil works contract for the port and housing is expected to be completed by end-1994; the refrigeration/cold storage plant and the collector vessels by early-1995; and the technical assistance and training activities will continue until mid-1997. The six year disbursement period of the IDA credit in basically in line with - 31 - the Second Fisheries Project. The estimated Project Completion Date would be June 30, 1997. The closing date of the Credit will be December 31, 1997. The schedule of disbursementsis summarizedin Table 4.4 below and presented in detail in Annex 3.5.
Table 4.4: ESTIMATED DISBURSEMENT SCHEDULE ($ '000)
IDA Fiscal Year 1992 1993 1994 .^95 1996 1997
Annual 825/a 1,639 2,756 2,437 1,728 616 Cumulative (amount) 825 2,464 5,219 7,656 9,384 10,000 Cumulative (percent) 8.3 24.6 52.2 76.6 93.8 100.0
/a Relates to PPF.
4.19 Documentation. Full documentationwould be required to support withdrawal applicationsfor all consultantsservices and training and all contracts above US$40,000 equivalent, for civil works, vessels and materials, and equipment. Disbursementsfor sivil works, equipment and material contracts less than US$40,000 equivalent would be made on the basis of statement of expenditures (SOEs). The documentationfor SOEs would be retained by the PIU and made available for review by IDA supervisionmissions. Disbursementsagainst SOEs are estimated at about 0.2 percent of the credit.
4.20 Special Account. To enable STO to implement the project effectivelyand to make prompt payments to contractorsand consultants,an assurancewas obtained that a Special Account would be opened at the Maldives Monetary Authority and would be maintained in US dollars. IDA wo'sldmake an initial deposit (authorizedallocation) of US$500,000, representingan estimated average of four months' expenditures. Th:s account would be used for eligible expendituresof less than US$50,000 equivalent,both foreign and local, under all categories. Expendituresabove US$50,000 equivalent could be submitted directly to IDA for payment. An assurancewas obtained that this Special Account and the SOEs would be audited annually by an independent auditor acceptable to IDA.
V. ORGANIZATION.MHNAGEMENT AND IMPLEMENTATION
A. Project Implementation
5.1 General. The project will be implementedprimarily by STO/FPID, while the non-FPID TA subcomponentswill be implementedby the respective beneficiaryministries, i.e., MOFA, MPE, and MTI. PPID, through the existing PIU for the Second Fisheries Project, will have overall responsibilityfor - 32 -
project implementationand coordination,with the assistance of the inter- ministerial Project CoordinatingCommittee (PCC).
State Trading Orsianization:Fisheries Proiects ImplementationDepartment
5.2 FPID will be responsiblefor the constructionof the Rooddoo refrigeration/coldstorage complex, for the collector vessels, and for the operation of the complex after construction. The day-to-dayplanning and management of the constructionactivities, and the supervision of the work of consulting engineers and contractorswill be the responsibilityof PIU, which will be a separate unit within the managing director'soffice of the restructuredFPID. The PIU will be headed by a project manager who will report directly to the managing director. Pending the completionof FPID's restructuring,the Second Fisheries Project's director, appointed as director of FPID, will have full responsibilityior PIU.
5.3 PIU will review and approve designs, tender documents,bid evaluations,and contracts prepared by consultants;approve construction programs; supervise construction;arrange for procurement of collectorvessels and all equipment and materials;maintain project accounts; submit disbursementrequests; and prepare quarterlyprogress reports and completion reports for PCC considerationand IDA review. To carry out these tasks, PIU will be assisted by consultingengineers to carry out pre-designand environmentalbaseline studies, preparationof final designs, review of specificationsand tender documents,construction supervision, and commissioningof plant and other facilities. In addition, direct support to PIU would be provided with specific technical experts, as outlined in para. 3.15.
5.4 Proiect Operations. On completionof constructionof the project facilities,FPID would appoint a general manager, who would supervise the following sectionF at the Kooddoo complex:
(a) Fleet management sectionwould organizctfish collection, fuel distribution,unloading of fresh fish, loading of frozen fish, vessel scheduling,maintenance, repair, and annual surveys.
(b) Plant section would operate the refrigerationcomplex. It will be responsiblefor receiving,grading, and weighing fish; for freezing, storing and transportingfish to the jetty for loading it into reefers; and for maintenance of the refrigerationand other support facilities.
(c) Administrationsection would be responsible for all personnel and welfare aspects, includingstaff recruitment,grounds maintenance, canteen, staff housing, guest house, general stores, and telex and radio operations.
(d) Accounting sectionwould be responsible for all accounting aspects of the various operations, timekeepingand wages of staff, payments to fishermen, and maintaining stock records. - 33 -
The existing commercial section of FPID, or its successor in Male, would be responsiblefor developingmarkets, reviewing fish pricing, including negotiationswith importers, and setting marketing policies in coordination with STO's managing director and MOFA.
5.5 Maintenance and operation of navigation lights would be the responsibilityof MTS, which is already in charge of maintaining existing navigationalaids nationwide.
Ministry of Fisheries and Agriculture
5.6 The project components to be implementedby MOFA comprise: (i) tuna tagging and length-frequencystudies; (ii) statistics strengthening; (iii) assistance to EPCS; and (iv) improvingvessel design.
(a) The tuna tagging program would be executed by FRPI, which currently executes a similar program, using rented fishing vessels. Data would be analyzed by FRPI, with some assistance from the T do- Pacific Tuna Program based in Colombo. Tagging operatior. for skipjack tuna and sampling of length frequencies for yellowfin tuna would take place in several areas in Maldives. FRPI has an experienced staff but lacks specific biological experience. The project will provide the services of a stock assessment specialist conversantwith tuna tagging and sampling,while two FRPI biologistswould be trained with funds from the IDA Education Project.
(b) The statistics and economic studies componentwould be executed by EPCS, which incorporatesthe former statistics,computing, and data analysis and library units of MOFA. The project's statistical consultantwill assist EPCS in setting up a more reliable fish- catch sampling system. The consultantwill, with a UN volunteer to be obtained through UNDP, train local enumerators,set up a permanent sample collection system based on selected islands throughoutMaldives, and improve processing of catch data. EPCS would also start collection of catch and earnings data from a sample of fishing vessels and would start analyzing the financial data of fish processing operations in Maldives. These data would provide a basis for the main EPCS economic studies: (i) developmentof a transparentpricing formula for fresh tuna, and (ii) analysis of the sector contributionsto the economy, and of the economic, price, and fiscal incentives to fishermen and processors to increase fish production and exports. These studies will provide the basis for the framework to strengthen development of the sector and, inter alia, facilitate increased private sector participation in the sector. An economist, a data processing specialist,and a fisheries statistician,currently being trained abroad, will shortly return to join EPCS. Under the project, EPCS would receive technical assistance from a macroeconomistand a resource/microeconomistto initiate the studies and set up a system to analyze tuna prices. In view of the importance of the economic analysis to be carried out by EPCS, assurances were obtained that: (i) MOFA would establish EPCS and appoint an experienced economist - 34 -
to head EPCS by June 30, 1992; (ii) GOM would establish by June 30, 1993, a PresidentialCommittee which shall periodically,but not less than every six months, review the proposals and analysis submitted to it by EPCS, with a view to deciding tuna prices for the next period; (iii) EPCS would develop, not later than June 30, 1993, a transparentpricing formula for fresh tuna, and carry out an analysis of the economic, price and fiscal incentives to increase fish production and exports as well as the contributionof the fisheries sector to the economy; and (iv) EPCS would, thereafter, carry out and furnish such analysis to the Presidential CommitLee at least every six months.
(c) The vessel design componentwould be executed by FRPI in coordinationwith STO's boatyard in Alifushi. This is headed by an experiencednaval architectwho was also involved in the successful design of the second-generationdhoni under the First Fisheries Project. The project would provide a naval architect consultant to assess the design parameters of a multi-purposefishing vessel that could operate fishing trips of several days. Once these parameters have been approved by GOM, the first prototype vessel would be built at the Alifushi boatyard. Following completion,the boat would be leased out, possibly on the basis of a minimum income guarantee and share of the catch, to an experienced fisherman for test fishing. After a year of test fishing, the results would be reviewed,with the design adjusted accordingly,and a second prototypewould be constructed,which would be leased out for an initial two years, after which it could be sold or further leased.
Ministry of Trade and Industry
5.7 MTI will be responsible for implementingthe TA to encourage increasedprivate sector participation in the fisheries sector. It will be responsible for consultant recruitmentin this endeavor.
Ministry of Planninx and Environment
5.8 ERU of MPE will be responsiblefor the environmentalaspects of the project, both at the constructionand operational stages. It will have primary responsibilityfor the environmentalbaseline survey to be carried out by the technical studies/detaileddesign consultants to be appointed by FPID, and the design and monitoring of key environmentalprotection measures. ERU will recruit an environmentalspecialist to assist with the latter task (para. 3.22). It will coordinatewith FPID (PIU during constructionand the Kooddoo site management during operationalstage) and the Ministry of Public Works and Labor (MPW) in its monitoring activities.
B. Proiect Coordination
5.9 Similar to the arrangementsunder the First and Second Fisheries Projects, the PCC of the Second Fisheries Project will be maintained to monitor project progress and review and find solutions for implementation bottlenecks. PIU, which would be responsible for planning and day-to-day project implementationand would serve as the secretariatto the PCC. The PCC - 35 -
would comprise senior officials from STO/FPID,MOFA, MTI, MPE, the Ministry of Atolls Administration,MPW, MTS, the Ministry of Finance, Maldives Monetary Authority, and others as deemed necessary by GOM. An assurancewas obtained from GOM that it would maintain the PCC for the proposed project, with a chairperson,membership, powers, functions and responsibilitiessatisfactory to IDA.
C. Human Resources and Manpower Development
5.10 Availability of experiencedmanagement and technical staff is essential to the success of the project. An assurancewas obtained that the fisheries sector activities of STO/FPID would at all times be under the supervision of qualified and experiencedmanagement assisted by competent staff in adequate numbers. It is expected that the precent experienced management and staff responsiblefor STO/FPID's fisheries activities and the IDA Second Fisheries Project's PIU will substantiallyremain with the restructuredFPID. FPID has three junior accountantsundergoing training in Australia, financed under the Second Fisheries Project. There are plans for a mechanical and a refrigerationengineer to be trained under an Australian Government program. FPID has also been allocated about 156 months of training/scholarshipsunder the IDA Education and Training Project (Credit 1981-MAL)as follows:
Award/ No. of Course Field of Study Level People Length (months)
Food Tech./QualityControl Degree 1 36 RefrigerationEngin. Degree 1 48 Accountancy Diploma 1 24 Captains/Masters Cert 1 24 Marine Engineering Cert/Dip 1 24
5.11 While the above trainingwill complement the existing management and technical expertise in STO/FPID, new investmentsunder the project and in the Laamu atoll necessitatea detailed manpower developmentplan (MDP) to ensure timely availabilityof qualified personnel. The MDP for the fisheries sector is under preparation for GOM by consultants. Taking the sector MDP into consideration,the FPID restructuringconsultancy would prepare a detailed MDP for FPID, to cover its entire operation. This plan would involve: (i) training of the above-mentionedcritical technical personnel prior to project start-up, under IDA's ongoing Education and Training Project; (ii) in-country training of vessel captains; and (iii) continued judicious use of expatriate technical and management expertise,which still ensures a highly positive net foreign exchange earnings position for the project. An assurance was obtained from GOM that the detailed staffing plan for the operation of the Kooddoo fish freezing complex, acceptable to IDA, would be provided by GOM to IDA at least 12 months before the commencementof operations. - 36 -
D. Pro ect ImplementationPlans and Status
5.12 The project will be implementedover a six-year period, in accordancewith the implementationschedule detailed in Chart 5.
5.13 Subsequent to the initial preparation of the project by FAO/CP, GOM sought FAO Technical Cooperation Project (FAO-TCP)assistance to carry out preliminary investigations,designs, and project infrastructurecosting based on detailed bills of quantities. The FAO-TCP assi8tance carried out outline engineering investigationsand topographicand hydrographicsurveys in addition to a comprehensivesurvey of fishermen and fishing activities. The IDA preappraisalmission reviewed the FAO-TCP outputs, modified some aspects, and updated the costs. Preliminary designs were reviewed again at appraisal. Therefore, both the design and cost estimate for the project have been reviewed in detail and updated over several stages. Draft tender packages for technical site studies and detailed design of the port and refrigeration complex consultancy for the FPID restructuringand draft TORs for the naval architectvessel design consultanthave also been reviewed. The selection of consultantsfor the technical studies and detailed designs and for the FPID restructuringis underway, financed by the IDA-approvedPPF, and is scheduled to be completed by February 1992, These activities are expected to be completed by October 1992.
E. Monitoring and Evaluation
5.14 PIU would have overall responsibilityfor monitoring, evaluation and reporting,which will focus on project inputs and outputs and on policy and institutionalchanges related to STO/FPID and the fishing sector. PIU will be assisted by the engineeringconsultants in the monitoring of procurement and constructionand in the reporting of boat construction activities,and by MOFA in the research activities. Inuts monitored will include: procurement, staffing, and training. Outputs monitored will include: quantity of fish by species caught and bought; quantities of fish processed and marketed abroad by FPID; financial results of the project and STO/FPID; progress made in the assessment of fish resources, environmental monitoring and other TA, and beneficiaryfishing family incomes.
5e15 Eventually, to evaluate the impact of the project on fishing family incomes, EPCS will undertake a baseline socio-economicsurvey one year before the start of operations of the refrigerationcomplex.
5.16 Supervision, Under separate agreements with the cofinanciers, IDA will supervise implementationof all components of the project. There would be two supervision missions per year. The supervision specialists required at various stages of project implementation would be: a refrigeration specialist,a fisheries specialist,a management consultant,an institutional specialist, a financial analyst, a naval architect, and a civil engineer.
5.17 Policy and institutionalchanges to be monitored will include: further progress made in FPID's institutionaladjustment and its operating autonomy and operating efficiency,creation of a fiscal, legal, and institutionalframework to facilitate increased private sector participation, and progrese in the setting up of a regular system for review of fish prices. - 37 -
R.vorting Requirements
5.18 PIU will be responsible for submitting to IDA: short quarterly progress reports focused on key indicators; and annual progress reports on the project, not later than two months after the end of each reporting period. An interim review of project activities, especially those related to FPID restructuring,will be conducted jointly by GOM, IDA, and other cofinanciers by March 31, 1993. An assurancewas obtained to this effect.
F. Accounts and Audits
5.19 All organizations involved in project implementationwuald be subject to GOM's expenditurecontrol procedures,which are considered satisfactory. Project accounts would be maintained separately and in readily identifiableform by FPID, MOFA, MTI, and MPE. Project accounts would be consolidatedby PIU to reflect, in accordancewith sound accounting practices, the operations, resources, and expendituresrelated to the project. Furthermore,for as long as STO remains in control of FPID, it would submit to IDA yearly audited reports of its consolidatedfinancial statements. Assurances were obtained from GOM on the above accounting procedures, and that: (a) unaudited financial statements of STO, FPID, and the project would be submitted to IDA not later than three months after the end of each fiscal year; (b) a firm of independentauditors, satisfactoryto IDA, would be appointed to undertake annual audits of the accounts mentioned in (a) above and of SOEs; (c) certified copies of the audited accounts of FPID, STO, the project, and the Special Account for each fiscal year and of the auditor's report includinga separate audit opinion on SOE's would be furnished to IDA not later than six months after the end of each fiscal year; and (d) the auditor's report would be of such scope and in such detail as IDA shall reasonably request.
VI. PRODUCTION, MARKETS AND PRICES
A. Production
6.1 Fish purchased by STO in Gaafu Alifu/GaafuDhaalu in 1990 amounted to 11,400 tons or about half the country-widecollection of fresh tuna (Annex 4.1). STO uses two of the largest and oldest mother vessels to freeze fish in the atoll. Loss of these ships would mean a reduction in fish collection capacity of 4,000 tons in the atoll. Fishermen would partly compensate for reduced STO collectionby processing more tuna into Maldive Fish and dried fish, but overall landings are expected to fall from about 13,000 tons in 1990 (Annex 4.1) to about 4,000 tons if the old vessels are not replaced. The replacementof the freezing vessels with the project-provided shore-basedfacility will ensure the maintenance of current landings and ultimately raise them slightly. Once the freezing plant and collection system become fully operational, it is estimated that total tuna landings and exports from the project area would rise by 3,200 tons, and 2,600 tons, respectively, to about 169300 tons and 14,000 tons, respectively. - 38 -
6.2 The new refrigerationplant would not be able to offer unrestricted collection throughoutthe year and may have to turn away some fish during the peak fishing periods, although at a much lower rate than at present. This excess fish, along with tuna rejected due to poor quality, would be traditionallyprocessed. However, the extent to which fishermenuse tuna for Maldive Fish productionwould also depend on the future level of Maldive Fish prices and demand in Sri Lanka. It is assumed that production of Maldive Fish would not change from the current productionof 300 tons, equivalent to 1,500 tons of fresh fish (para. 7.6). This is based on assumptions of (a) increased fishing days, reflectingthe improved availabilityof collectorvessels; (b) improvementin the catches per fishing day, due to reliabilityand increased capacity of the collectionsystem, which will allow fishermen to fish longer; and (c) an increase in the number of fishing vessels in the project area, as part of an FPID production enhancementplan. An assurance was obtained that GOM will allocate a minimum of 15 newly constructed second- generation dhonis from the STO boatyard to Gaafu Alifu and Gaafu Dhaalu by December 31, 1994.
B. Markets
6.3 During the last two decades, tuna has develoned into one of the most important commerciallytraded fish species. World catches of the five most important species of tuna increased from 1.8 million tons in 1980 to around 2.8 million t ns in 1990. This means that world tuna productionhas increased by about 56 percent since 1980. Each year just over one million tons of fresh and frozen tuna are traded internationally;Thailand and Japan together account for 50 percent of this trade. Trade in frozen skipjack is largely dominated by Thai imports, which went up from 49,000 tons in 1984 to 325,000 in 1989. Demand in the major consuming countries,that is, the United States, Japan, France, Italy, and Spain, showed strong growth throughout the 1980e. At present, frozen tuna from Maldives accounts for only a small proportion (2.5 percent) of the world's fresh, chilled, and frozen tuna market. Most frozen tuna are sold to Thailand for canning, and Maldivian tuna is well considered for this market due to its relatively large size and good quality.
C. ProiectedMarket Demand
6.4 Future Demand for Canned Tuna. The worldwide tuna canning industry is going through a period of structuralchange as a result of economic factors, which increasinglyforce high labor-costcountries such as Japan and the United States to disengage from tuna canning in favor of low labor-cost countries such as Thailand and Indonesia. The adjustment has created strong impulses for competitionin what used to be a mature industry. The situation is further complicated by recent changes in consumer at:itudes toward the environmentaleffects of certain industrialtypes of tuna fishing (purse- seining in the eastern Pacific, gillnettingin the Pacific) that kill dolphins. Thus, the canning industry tries to avoid using tuna caught from schools that mix with dolphins and to avoid tuna caught by methods that also kill dolphins. This increasinglyforces canners around the world to limit their raw material suppliers to those using "dolphin safe" measures, such as the pole-and-line fishing practiced in Maldives. - 39 -
6.5 Structural changes in the canning industry are taking place in a period of historicallyhigh growth of canned tuna consumption in the major markets (the European Community, the United States). Other factors include developmentof new products based on cooked tuna, a strong reduction in tuna- canning activity in the United States and Japan, and a rapid expansion of canning capacity in Thailand, Indonesia, Philippines,Mauritius, Seychelles, and other Asian nations, from which exports increased from about 30,000 tons in 1980 to over 300,000 tons in 1989. Changes are also taking place in ownershippatterns, with major United States canneries and distribution systems taken over by Asian companies. Exports of canned tuna from Asian canneries to the United States have expanded from fewer than 20,000 tons in 1980 to about 120,000 tons in 1989, and from Asian and African countries to the EEC from 120,000 tons in 1980 to over 300,000 tons in 1989.
6.6 Future Demand for Frozen Fish. The ultimate outcome of these structural changes and the strong competitionbetween the established producers in the United States, Japan, and the European Community and vhe newly-establishedcanneries in Asia will depend on whether authoritiesin the major markets protect their local industries. Without effective protection, it appears likely that the Asian cannery companieswill eventually become the major suppliers in all the major canned tuna markets. Protectionist interventionis being contemplatedin the major markets but should not materialize,since it would contravene existing GATT rules. With or without protection,world market canned tuna prices are likely to remain under pressure; and prices of the cheaper varieties of canned tuna are unlikely to increase substantiallyin real terms. With major Asian and European tuna canners being highly dependent upon imported tuna, demand for frozen tuna will continue to increase.
6.7 Future Demand for TraditionallyProcessed Products. Maldive Fish and dried salted fish of good quality are in strong demand in Sri Lanka, reflecting local shortages, and shortages of salted fish from other traditional suppliers (India and Pakistan). Imports of dried fish in Sri Lanka from all sources increased from around 3,400 tons in 1977 to around 34,000 tons in 1988. Total imports from Maldives are officially estimated at about 3,850 tons (17,000 tons fresh fish equivalent)but may be higher in reality, and are likely to increase further as a result of the recent liberalizationof Maldive Fish trade.
D. Prices
6.8 Prices for frozen tuna exported from Maldives are usually negotiated between STO and interested buyers. Prices can fluctuate substantially,depending on internationalmarket conditions. Recent yearly average prices have been changing by about 20 percent. During 1990, STO received a weighted average price of US$815/ton (FOB Maldives); the price wes US$867 in 1989.
6.9 Two factors will substantiallyinfluence the price of frozen tuna. With demand likely to remain strong, the supply of frozen tuna will be determined by: - 40 -
(a) Resource restrictions. Some skipjack and most yellowfin resources in the world appear close to being fully exploited, and it seems unlikely that the production growth demonstratedduring the 1980s can continue indefinitely;and
(b) Reduced fishing effort. Current anvironmentalconcerns about dolphins may substantiallychange the nature of tuna fishing, notably in the Pacific Ocean. Fishing with older methods is likely to decline, while new investment in alternativemethods may be restricted because of the relatively low prices for frozen tuna at present.
6.10 With resources increasinglylimited and fishing effort restricted, the prices of frozen tuna may increase in the long term; in the short term, prices may fluctuate substantiallyon account of adjustments in catching and processing capacity in various parts of the world. Nevertheless,Maldives appears particularlywell placed for competing in the internationaltuna market, due to its dolphin-friendlytuna production;its very low production costs compared to industrial fishing methods, its close proximity to Thailand, the largest tuna importer in the world; and its ability to expand tuna production further.
6.11 With regard to prices at which STO/FPID would purchase tuna from fishermen, assuranceswere obtained on the establishmentof the EPCS within MOFA, appointmentof an experiencedeconomist to head it, review of the prices by EPCS at least every six months, and creation of a PresidentialCommittee which would review analysis undertaken by EPCS to decide on tuna prices (para. 5.6(b)].
VII. BENEFITS AND JUSTIFICATION
A. Project Beneficiariesand Benefits
Beneficiaries
7.1 The project would benefit about 2,000 tuna fishing households in the project area by increasingsignificantly the income-generating opportunitiesfrom fishing in the project area. Fishermen would be able to sell tuna to STO/FPID more regularly and in larger amounts. With the project, returns to labor per day from fishing are expected to more than double, as compared to the "without-project"case. The project would serve not only those fishermen operating in the immediatevicinity of the freezing complex but also those in more distant islands of the atoll. They would gain access to fish collection facilitieswhere none exists at present. The project would provide direct employment to 137 people working at the plant and 102 people on the vessels.
7.2 The increase in income would improve the relatively poor living conditions in the project area, where income per person aged 12 or older is estimated to be about half the level in Male. Lack of income-generatingand education opportunitiesin the atolls, including the project area, contribute to the large-scalemigration from the atolls to Male. According to the 1985 - 41 -
census, about 45 percent of the population in Male comes from the atolls, and about 13 percent of this portion originated in the Gaafu Alifu/Gaafu Dhaalu atoll.
7.3 Higher efficiency in collection and freezing of tuna, as well as higher output, would substantiallyimprove STO/FPID's profitability. This in turn would benefit GOM, since STO as a whole is a significantcontributor to GOM revenues, providing about 12 percent of total revenues through profits and customs duties. GOM would also obtain substantial financialbenefit, as it will borrow at concessionalterms and onlend to STO/FPID at a commercial rate of interest (see para. 7.9).
Benefits
7.4 QuantifiableBenefits. The project would maintain current catches and exports of tuna from the project area. Ultimately at full development, the total catch of tuna in the project area would be 16,300 tons per year, which is about 26 percent higher than the 1990 level and amounts to about 23 percent of the total fish catch in Maldives in 1990 (FFE). Total exports of frozen tuna from the project area are expected to increase by 2,600 tons to 14,000 tons per year, which amounts to about 25 percent of total tuna exports in 1990 (FFE). Without the project or any new investment in collection and freezing facilities,ultimately no tuna would be exported from the project area, since the aging mother vessels operating in the area would be scrapped. The project would also raise tuna collection and exports outside of the project area by about 2,000 tons a year for about four years after completion of the complex. This is because the new shore-basedfreezing complex would allow STO to relocate one relativelynew mother vessel currently operating in the project area to other parts of the country where tuna collection needs improvement.
7.5 NoncuantifiableBenefits. The project's nonquantifiablebenefits may be equally important. Efforts to develop a sound institutionaland regulatory framework to guide future fishery developmentwould strongly assist sector development,including needed private sector participation.Assietance to EPCS would help in devising a transparentpricing system, which, together with an appropriate fiscal regime, would more equitably deal with the sector's rent allocation and incentive system. Efforts to enhance the efficiency of STO/FPID's operationswould increase GOM revenues and improve the marketabilityof Maldive tuna in internationalmarkets. The design of experimentaldhonis suitable for multi-day trips would broaden the scope of fishing operations in the country. Supporting the tuna tagging, length- frequency and statistics studies will enhance knowledge on fishery resources in Maldives. Finally, the infrastructureto be constructedunder the project may attract private investment in activities outside of fisheries, such as textiles-relatedmanufacturing or transit storage of imported goods. The extent to which this could happen will depend largaly on GOM's policy in encouraging such non-fishery activities in the area. - 42 -
B. Financial and Economic Analysis
7.6 For the financial and economic analysis, it is assumed that the three mother vessels currently operating in the project area would be scrapped, two immediatelyafter the completion of constructionof the Kooddoo complex and the other one four years later. The economic life of the project is assumed to be 20 years. The production of Maldive Fish in the project area is assumed to be unchangedwith the project, while it would increase without the project as tuna collection for freezing declines (Table 7.1 below). Local consumptionof tuna is assumed to remain constant.
Table 7.1: PRODUCTION OF TUNA IN GAAFU ALIFU/GAAFUDHAALU ATOLL
Without With Present Project Project ------('000 tons) ------______
Sales to STO/FPID for export 11.4 2.5/a O.O/b 14.0 Traditionalprocessing 1.5 2.3la 3.0/b 1.5
/a During project years 4-7, after the two mother vessels operating in the project area are scrapped. lb Beginning project year 8, when no tuna would be collected for freezing, as the last mother vessel is scrapped and no new investment is made.
Financial Analysis
7.7 Income of Fishermen. The project's estimated impact on the income of the crew of fishing vessels is based on the performance of an average vessel in the project area. Without the project no tuna would be collected by STO/FPID after 1998, when the last mother vessel would be scrapped; with the project, an average of 89 tons of fresh tuna per boat would be sold annually to STO/FPID. At full developmentof the project, returns to labor per day would be about Rf 56, compared to about Rf 54 in the present case and Rf 26 without the project (Annex 7.1). With the project, due to higher returns to labor per day, fishermen are expected to fish more often (148 days per year as opposed to 40 days per year without the project). Therefore, the annual tuna incomes of the fishing households will increase by 32 percent with the project, whereas it will decline by 83 percent in the "without project" scenario.
7.8 STO/FPID OQerations. For the financial analysis of STO/FPID operations,only those costs that would be borne by STO/FPID have been included. Financial prices have been applied, including a fuel price of Rf 4.05 per liter, which is the price at which fuel was sold by STO to fishermen at the time of appraisal, in effect since February 1991. STO's - 43 -
purchasing prices for tuna are Rf 2.20 per kg for tuna over 2 kg and Rf 1.70 per kg for tuna under 2 k6, in effect since October 1990. GOM would onlend the costs of the complex to STO/FPID at 13.0 percent interest with a repayment period of 20 years, including 5 years of grace (para. 4.8). It is assumed that interest during constructionwould be capitalized,and that 50 percent of the new profit would be contributedto GOM. With the above assumptions, the complex'snet profit after interest payment would turn positive in 1996 and steadily increase thereafter (see Annex 7.4). The complex will generate ample resources to repay debt obligationsand finance the replacementof plant and equipment as necessary (Annexes 7.5 and 7.6). The financial rate of return for the complex is estimated at 27 percent (Annex 7.7).
7.9 Impact on GOM. GOM's contributionwould amount to about US$3.1 million spread over five years: US$1.7 million in 1992, US$1.3 million in 1993 and US$0.1 million in 1994-1996 (para. 4.6). Due to the above GOM expenditures,net cash flow from the project to GOM during constructionof the complex would be negative (Annex 7.8). The net cash flow to GOM would turn positive, to US$2.3 million (currentprice), in 1995, the year when the complex starts to operate, under the assumptions described in the above paragraph, since STO/FPID would start to make interest payments to GOM. The allocation of STO's net operating profit in the past was based on a general agreement between GOM and STO, which reflected the need of GOM for funds in that particular year. It has been assumed, based on historic precedents, that half of the net annual operating profit of the project would be contributed to GOM: the contributionis projected to start in 1996 when the net profit of the project turns positive.
Economic Analysis
7.10 For economic analysis, it is assumed that for most items finfncial prices reflect their opportunitycost to the economy. This is because most goods and services will be imported directly by STO/FPID free of duties and taxes, and because the Rufia is freely traded. Separate economic prices were calculated for fuel, which is sold by STO at controlled prices, and unskilled labor, where rigidities in wages may not reflect unemploymentand under- employment in the project area. The economic price of marine diesel oil was derived from FOB Singapore prices of crude oil, projected by IDA for the project implementationperiod at Rf 2.8 per liter on a CIF Male basis (Annex 8.1). A shadow wage rate was used for unskilled labor such as vessel crew, at 80 percent of the financialwage rates, in considerationof general unemploymentand underemploymentin the project area. However, no shadow wage rates were applied to other, more skilled types of labor, due to the acute scarcity of such labor in Maldives. The price for Maldive Fish is estimated at Rf 20,600 per ton (oa a product basis), using recent export prices to Sri Lanka.
7.11 In the "without-project"case, fish exported from the project area after the demise of the last mother vessel would comprise only Maldive Fish, totaling Rf 12 million (1991 prices) per year, while Rf 129 million (199. prices) would be exported annually in the "with-project"case, about 95 percent frozen tuna. The project is expected to generate net annual foreign exchange earnings of about Rf 70 million (1991 prices) equivalent at - 44 -
full development. The economic rate of return (ERR) is estimated at 24 percent (Annex 8.6).
Sensitivityand Risk Analysis
7.12 The sensitivityof the ERR to changes in assumptions and other parameters is generally limited. At a discount rate of 12.0 percent, the calculated switchingvalues, shown in Table 7.2, indicate that the project could sustain a substantial increase in cost and a decline in throughput and export prices, as well as a delay in start up. With no shadow wages used for unskilled labor, the ERR would remain unchanged.
Table 7.2: SWITCHING VALUES
Switching value Variable tested (percentagechange)
Increase in Investment Cost of the Complex +129 Decline in Throughpvt for the Complex -28 Decline in Export Price of Frozen Tuna -32 Lag in Start Up of the complex (in years) 2
7.13 Project risks appear modest. Fish resources are abundant, although seasonal shortages could occur due to changes in oceanic temperature distributionand weather patterns. Export markets are well established,and demand for frozen tuna is expected to grow. Maldivian tuna has a favorable reputation in the world market, due to its relatively large size and good quality, and would continue in good repute especially because it is "dolphin friendly". Although involvementof several cofinanciersin project financing could lead to delays and coordinationdifficulties, experience under the first two projects has demonstratedthat such problems can be minimized by proper planning and advanced consultationduring preparation,as was done for this project. The operation of a new fish processing complex will present a challenge and will require strong management. Incentives to fishermen to supply adequate throughput could also affect the performance of the freezing/coldstorage complex; technical assistance and production enhancement strategieswould address these risks (para. 6.2). Finally, bureaucraticand political constraintsmay hamper implementationof a more transparentfish pricing system and the introductionof the necessary legal, fiscal and institutionalframework to facilitate future involvementof the private sector in fish processang and marketing activities. Focused technical assistance, regular supervision,and a continued sector dialogue on future investments would minimize those risks. - 45 -
VIII. AGREEMENTSREACHED AND RECOMMENDATION
8.1 At negotiationsassurances were obtained from GOM that:
(a) GOM will inform IDA, prior to committing to a cannery on Laamu atoll or a freezing/coldstorage facility in the north (Haa Alifu/Haa Dhaalu), the details of such investments (para. 2.13).
(b) GOM will take all measures to prohibit the digging for turtle eggs and the taking of live turtles on and around the island of Kooddoo, by December 31, 1992 (para. 3.26);
(c) GOM will make overall budgetary provisions covering the entire implementationperiod including any unforeseen adverse cost developments (para. 4.6);
(d) GOM will onlend $2.6 million to STO/FPID under a Subsidiary Loan Agreement; at an interest rate of 13 percent per annum, with a repayment period of 20 years, including 5 years of grace, with GOM bearing the foreign exchange risk (para. 4.8)!
(e) GOM would allow IDA to comment on the specificationsof the proposed refrigeration/coldstorage plant and construction contracts prior to issuing the bidding documents (para. 4.14);
(f) (i) that MOFA would establish an Economic Planning and Coordination Section and appoint an experiencedeconomist to head EPCS by June 30, 1992; (ii) that GOM would establish, by June 30, 1993, a PresidentialCommittee which shall periodically,but not less than every six months, review the proposals and analysis submitted to it by EPCS, with a view to deciding tuna prices for the next period; (iii) EPCS would develop, not later than June 30, 1993, a transparentpricing formula for fresh tuna, and carry out an analysis of the economic, price and fiscal incentives to increase fish production and exports as well as contributionof the fisheries sector to the economy; and (iv) EPCS would, thereafter, carry out and furnish such analysis to the PresidentialCommittee at least every six months (para. 5.6(b)];
(g) maintenance of a Project CoordinatingCommittee, with composition and responsibilitiessatisfactory to IDA (para. 5.9);
(h) the fisheries sector activities of STO/FPID would at all times be under the supervisionof qualified and experiencedmanagement assisted by competent staff in adequate numbers (para. 5.10);
(i) a detailed staffing plan for the operation of the Kooddoo fish freezing complex, acceptable to IDA, would be provided to IDA at least 12 months before the commencement of operations (para. 5.11); - 46 -
(j) an interim review of project activities,especially those related to FPID restructuring,will be conducted jointly by GOM, IDA and other cofinanciersby March 31, 1993 (para. 5.18);
(k) (i) unaudited financial statements of STO, FPID, and the project would be submitted to IDA not later than three months after the end of each fiscal year; (ii) a firm of independentauditors. satisfactoryto IDA, would be appointed to undertake annual audits of the accounts mentioned in (i) above, the Special Account, and SOEs; (iii) certified copies of the audited accounts of FPID, STO, the project, the Special Account for each fiscal year, and of the auditor's report, includinga separate audit opinion on SOEs would be furnished to IDA not later than six months after the end of each fiscal year; and (iv) the auditor's report would be of such scope and in such detail as IDA shall reasonably request (para. 5.19);
(1) GOM will allocate a minimum of 15 newly constructed second- generation dhonis from the STO boatyard to Gaafu Alifu and Gaafu Dhaalu by December 31, 1994 (para. 6.2).
8.2 Effectivenessof the Norwegian, Swedish, NDF, and OPEC Fund agreements (para. 4.7) and signing of a Subsidiary Loan Agreement between GOM and STO/FPID (para. 4.8), are conditions of Credit effectiveness.
8.3 With the above conditionsand assurances, the proposed project would be suitable for an IDA Credit of SDR 7.6 million (US$10.0million) to GOM on standard terms, with 40 years' maturity. 17 - ANNEX 1
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Fisheries Sector Proiect PerformanceAudit Reports
Actual Project Approval Completion PPAR Reference Country Description date date Report No.
1 Ghana Fisheries 09/23/69 07/15/75 2794 2 Indonesia Fisheries 07/07/70 10/15/79 2806 3 Tunisia Fish I 09/14/71 12/15/79 3753 4 Yemen, People's Democ. Rep. Fish I 04/10/73 09/15/79 3755 5 Indonesia FisheriesCredit 06/04/74 09/30/81 4468 6 Burundi FisheriesDevt. 04/20/76 06/15/79 5683 7 Tanzania Fisheries Devt. 07/01/76 12/15/82 5136 8 India Andhra Pradesh 05/30/78 06/15/86 6843 Fisheries 9 Bangladesh Oxbow Lakes 03/29/79 06/30/86 7882 Fisheries 10 Maldives Fisheries 05/15/79 10/15/83 5587 11 Yemen, People's Democ. Rep. Fisheries 2 06/12/79 06/30/87 7959 12 Ecuador Fisheries 09/03/68 10/15/80 3731 13 Panama Fish I 07/27/71 09/15/76 2578 14 Philippines Fish I 05/15/73 06/15/79 4222 15 Iran Fi_ -r'.es 09/10/74 06/30/79 3145 16 Philippines Fish 2 05/25/76 03/15/80 4222 17 India Gujarat Fisheries03/31/77 06/15/86 6842 18 Panama Fisheries 2 04/05/77 06/15/81 4597 19 Tunisia Fisheries 2 06/28/79 12/31/87 7772 20 Maldives Fisheries 2 06/09/83 06/30/91 Harvesting the Waters, a Review 4984 of Bank Experiencewith Fisheries Development (dated 03/13/84) Naldives ThirdFisheries Rf Summry Accoumtsby Ye.r
Base Costs foreign Exchange ...... ------...... 91/92 92/93 93/94 94/95 95/96 96/97 Total Amont 1. INVESTNENTCOSTS ...... A. Civil Works 0.0 41525933.3 76330301.2 771266.7 0.0 0.0 118627501.3 B. Refrigeration Plant/Equlp 98.2 116439331.3 0.0 31566018.9 13367896.1 4419358.0 0.0 0.0 49353273.0 99.2 48939342.0 C. Vessels 0.0 0.0 35059100.0 4r*aŽ'. 0 0.0 0.0 35461500.0 D. Trsnsport Equipment 100.0 35461500.0 0.0 8695193.3 9241786.7 0.0 0.0 0.0 17936980.0 100.3 17936980.0 E. Consultants.and training 18057700.0 12625176.8 10515133.3 7517253.3 0.0 0.0 48715263.4 F. Nateriats and Equipment 99.7 48561663.4 0.0 663664.5 135127.8 4T77F.0 0.0 0.0 846577.3 83.2 op4010.2 ...... I.------.. -----.....---...------..------...... -....-.------.-...... - Total INVESTNENTCOSTS 18057700.0 95075986.9 144649345.2 13158063.0 0.0 0.0 270941095.0 98.9 26840'2826.9 II. RECUOREUTCOSTS ...... G. lncremntal Recur. Costs 0.0 420200.0 576003.6 319150.4 278750.4 278750.4 187.2854.8 15.6 292501.2 Total BASELINECOSTS 18057700.0 95496186.9 145225348.8 1347M713.4 278750.4 278750.4 272813949.9 98.4 268335328.2 Physical Contingencies 0.0 4950583.3 6377881.2 205201.6 13937.5 13937.5 11561541.1 Price Contingencies 98.6 11403186.0 334067.4 5709518.4 14736509.2 1898868.6 95241.4 120543.3 22894748.& 95.8 21942227.1 Total PROJECTCOSTS 18391767.4 106156288.6 166339739.2 15581283.5 387929.3 413231.2 307270239.4 98.2 301680741.2 Taxes 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Foreign 0.0 0.0 Exchange 18391767.4 104911976.7 162937233.6 15236448.9 99810.8 103503.8 301680741.2 100.0 , ...... --.--...... * -*---*------***---**------301680741.2
m m
-0 Naldives Third Fisheries Sumry Accounts by Year Totals Including Contingencies Rf --...... --....-. .------.-...-....-.-..--..-..--.------.--...-.-.---.------..-..----.-.- . 91/92 92/93 93/94 94/95 95/96 96/97 Total 1. IMESTMENTCOSTS A. Civil Works 0.0 47883769.5 88220218.8 91979S.3 0.0 0.0 137023783.6 B. Refrigeration Plant/Equip 0.0 34361243.8 15087081.3 5170037.7 0.0 0.0 54618362.9 C. Vessels 0.0 0.0 40318893.8 479893.2 0.0 0.0 40798787.0 D. Transport Equipment 0.0 9385770.4 10344878.2 0.0 0.0 0.0 19730648.6 E. Consultants and Training 18391767.4 13341327.6 11518830.9 8540946.1 0.0 0.0 51792872.0 F. 4terilals and Equipment 0.0 715522.9 154284.6 54273.6 0.0 0.0 924081.2 Totel INWSTNENTCOSTS 18391767.4 105687634.3 1656M187.7 15164945.8 0.0 0.0 304888535.2
11. RECURRENTCOSTS ...... A. Irerewntal Recur. Costs 0.0 468654.3 695551.6 416337.7 387929.3 413231.2 2381704.2 Totl PRIUECTCOSTS 18391767.4 106156288.6 166339739.2 15581283.5 387929.3 413231.2 307270239.4
(DM
L0. X Naldives ThirdFisheries SummaryAccounts by Year Totals Including Contingencies USS 91/92 92/93 93/94 94/95 95/96 96/A7 Total 1. INVESTMENTCOSTS ...... - A. Civit Works 0,0 4759818.0 8769405.4 91430.9 0.0 0.0 13620654.4 B. Refrigeration Plant/Equip 0.0 3415630.6 1499709.9 513920.2 0.0 0.0 5429260.7 C. Vessels 0.0 0.0 4007842.3 47703.1 0.0 0.0 4055545.4 D. TrwaportEquipment 0.0 932979.2 1028317.9 0.0 0.0 0.0 1961297.1 E. Consultantsand Training 1828207.5 1326175.7 1145013.0 849000.6 0.0 0.0 5148396.8 F. Materials and Equipment 0.0 71125.5 15336.4 5395.0 0.0 0.0 91857.0
Total ItmESTMENt COSTS 1828207.5 10505729.1 16465625.0 1507449.9 0.0 0.0 30307011.5
II. RECURRENTCOSTS ...... A. Incremental Recur. Costs 0.0 46585.9 69140.3 41385.5 38561.6 41076.7 236749.9 Total PROJECTCOSTS 1828207.5 10552315.0 16534765.3 1548835.3 38561.6 41076.7 30543761.4
0* Waldives Third Fisheries Rf ProjectCoponents by Year Base Costs Total 91/92 92/93 93/94 94/95 95/96 96/97 Rf USS KooddocFreezing Cosptex 1. Port Works 0.0 37321130.0 18423884.4 0.0 0.0 0.0 55745014.4 5541253.9 2. FreezIng/CotdStor.Plant 0.0 25404897.7 53297151.6 1186535.1 0.0 0.0 79888584.3 7941211.2 3. Office,Housing, Workshop 0.0w 2663317.9 10653271.8 0.0 0.0 0.0 13316589.7 1323716.7 4. Supply of Misc.Equipment 0.0 16397800.0 15523523.1 4004089.6 0.0 0.0 35925412.7 3571114.6 5. Vessels 0.0 0.0 34656700.0 0.0 0.0 0.0 36656700.0 3445000.0 6. Navigational Aids 0.0 0.0 1042153.1 104746.7 104746.7 104746.7 1356393.4 134830.4 7. TA/Training for Vessels 0.0 1006000.0 377250.0 0.0 0.0 0.0 1383250.0 137500.0 8. Design/Spvfor Port,Plant 14159450.0 4092743.3 3831183.3 2764703.3 0.0 0.0 24828M08.0 2468000.0 Sub-totat 14159450.0 86885888.9137805117.4 8040074.7 104146.7 104746.7247100024.5 24562626.7 B. TechnicalAssistance 1. Suppor;-to FPID 0.0 2012000.0 2012000.0 2615600.0 0.0 0.0 6639600.0 660000.0 2. SUPpo...for Restruct.FPID 3898250.0 0.0 0.0 0.0 0.0 0.0 3898250.0 387500.u 3. Supor. to NFNA 0.0 4454759.4 3725227.8 2521785.0 0.0 0.0 10901772.2 1083675.2 4. Su7z rt to Env.Res.Unit 0.0 686038.5 928503.6 299753.6 174003.6 174003.6 2262303.1 224881.0 5. Priv&-e Sec.Encouragement 0.0 1257500.0 754500.0 0.0 0.0 0.0 2012000.0 200090.0 Sub-total 3898250.0 8610297.9 7420231.5 5437138.6 174003.6 174003.6 25713925.3 2556056.2 Total BASELiMECOSTS 18B57700.0 95496186.9 145225348.8 13477213.4 278750.4 278750.4 272813949.9 27118682.9 Physicat Contingencies 0.0 4950583.3 6377881.2 205201.6 13937.5 13937.5 11561541.1 1149258.6 Price Contingencies 334067.4 5709518.4 14736509.2 1898868.6 95241.4 120543.3 22894748.4 2275819.9 Total PROJECTCOSTS 18391767.4 106156288.6 166339739.2 15581283.5 387929.3 413231.2 307270239.4 30543761.4 Taxes I).0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Foreign Exchange 18391767.4 104911976.7 162937233.6 15236448.9 99810.8 103503.8 301680741.2 29988145.3
(D M
1-. 0~ Natdives Third Fisheries Projects Cowponentsby Year Totals Including Contingencies Rf
- 91/92 92/93 93/94 94/95 95/96 96/97 Total A. Kooddo Freezing Coplex 1. Port Works 0.0 43212761.4 21892236.6 0.0 0.0 0.0 65104998.0 2. Freezing/Cold Stor.Plant 0.0 27691306.5 60822982.2 1405601.9 0.0 0.0 89919890.6 3. Office, Housing, Workshop 0.0 2961510.5 12307017.4 0.0 0.0 0.0 15268527.8 4. Supply of Hisc.Equip.ent 0.0 17765205.4 17431438.4 4684231.1 0.0 0.0 39880874.9 5. VesseLs 0.0 0.0 39856123.2 0.0 0.0 0.0 39856123.2 6. Navigational Aide 0.0 0.0 1198503.7 136881.5 145M .2 155281.0 1636439.3 7. TA/Training for Vessels 0.0 1062521.6 413188.1 0.0 0.0 0.0 1475709.7 8. Design/Spv for Port*Plant 14421399.8 4322692.1 4196154.6 3117401.3 0.0 0.0 26057647.8 SutbTotal 14421399.8 97015997.5 158117644.2 9344115.7 1457M7.2 155281.0 279200211.4 B. Technical Assistance 1. Support to FPID 0.0 2125043.2 2203669.8 2970767.3 0.0 0.0 7299480.3 2. Support for Restruct.FPID 3970367.6 0.0 0.0 0.0 0.0 0.0 3970367.6 3. Support to NFNA 0.0 4951525.0 4152103.6 2896189.8 0.0 0.0 11999818.5 4. Support to Env.Res.Un{t 0.0 735570.9 1039945.5 370210.7 242156.1 257950.3 2645833.4 5. Private Sec.Encouragement 0.0 1328152.0 826376.2 0.0 0.0 0.0 2154528.2 Sub-Total 3970367.6 9140291.1 8222095.1 6237167.8 242156.1 257950.3 28070028.0
Total PROJECTSCOSTS 18391767.4 106156288.6 166339739.2 15581283.5 387929.3 413231.2 307270239.4
. IX --- Naldives Third Fisheries Projects Cponents by Year
Totals Including Contingencies USS
91192 92/93 93/94 94/95 95/96 96/97 Total A. KooddooFreezing Cooplex 1. Pert Works 0.0 4295503.1 e1t6166.7 0.0 0.0 0.0 6471669.8 2. FreezirgCold Stor.Plant 0.0 2752615.0 6046022.1 139721.9 0.0 0.0 8938358.9 3. Office, Housing, Workshop 0.0 294384.7 1223361.6 0.0 0.0 0.0 1517746.3 4. Suply of Nisc.Equipment 0.0 1765925.0 1732747.4 465629.3 0.0 0.0 3964301.7 5. Vessels 0.0 0.0 3961841.3 0.0 0.0 0.0 3961841.3 6. Navigational Aids 0.0 0.0 119135.6 13606.5 14490.4 15435.5 162667.9 7. TA/Training for Vessels 0.0 105618.4 41072.4 0.0 0.0 0.0 146690.8 8. Oesign/Spv for Port,Plant 1433538.7 429691.1 417112.8 309880.8 0.0 0.0 2590223.4
SdrTotal 1433538.7 9643737.3 15717459.7 928838.5 14490.4 15435.5 27753500.1
B. Technical Assistance 1. Support to FPID 0.0 211236.9 219052.7 295304.9 0.0 0.0 725594.5 2. Support for Restruct.FPID 394668.7 0.0 0.0 0.0 0.0 0.0 394668.7 3. Support to NFNA 0.0 492199.3 412734.0 287891.6 0.0 0.0 1192824.9 4. Stq)port to Env.Res.Unit 0.0 73118.4 103374.3 36800.3 24071.2 25641.2 263005.3 5. Private Sec.Encouragemnt 0.0 132023.1 82144.7 0.0 0.0 0.0 214167.8
S*-Total 394668.7 908577.6 817305.7 619996.8 24071.2 6641.2 2790261.2
Total PROJECTSCOSTS 1828207.5 10552315.0 16534765.3 1548835.3 38561.6 41076.7 30543761.4
______------_------~------~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ U
=2= =2=2=3=2=3=2==~~~~~~~~~~~~~~~~~~~~~~~~~~~=** = == ~ ~ ~ ~ ~ ~ ~ ~ M
U,
LA Maidives Third Fisheries SLimanryAccount by Project Coaqonent Rf
Freezing/Co Office, Supply of Id Housing, Nisc.Equipm Design/Spv Stpwort for Port Uorks Stor.Plant Navigationr TA/Trmining for S4.pOrt to Workshop ent Vessels Aids Restruct.FP t for Vessels Port.Plent FPID ID 1. IUWSTlEIT COSTS ...... _._,. A. Civil Works 55745014.4 48523744.0 8. 13316589.7 0.0 0.0 1042153.1 ofrIgeratfon Ptant/Equip 0.0 31364840.3 0.0 o.e 0.0 0.0 C. 0.0 17988432.7 0.0 0.0 ssels 0.0 0.0 0.0 0.0 0.0 0.0 D. fruisport Equfpnent 0.0 0.0 34656700.0 0.0 0,0 0.0 0.0 0.0 17936980.0 0.0 0.0 0.0 E. Cisoultanti aid TraIning 0.0 0.0 0,0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 F. Naterfals and Equipent 0.0 0.0 1333250,0 24828080.0 6639600.0 0.0 0.0 0.0 0.0 0.0 389S850.0 0.0 0.0 0.U 0.0 0.0 Total INESTIENT COSTS 55745014.4 79888584.3 13316589.7 35925412.7 346567D0.0 1042153.1 1383250.0 24828080.0 6639600.0 3898250.0 It. RECURRENTCOSTS ...... A. Increental Recur. Costs 0.0 0.0 0.0 0.0 0.0 314240.2 0.0 0.0 0.0 0.0 Total IASELIUE COSTS 55745014.4 79888584.3 13316589.7 35925412.? Physicat Contingencies 34656700.0 1356393.4 1383250.0 2482M800.0 6639600.0 5157116.2 2919462.4 665829.5 934266.5 1732835.0 3891250.0 L Price Contingecies 4202867.4 7111843.8 67819.7 0.0 0.0 0.0 1286108.6 3021195.7 3466588.2 212226.3 0.0 92459.7 1229567.8 659880.3 72117.6 1 Totat PROECT COSTS 65104998.0 89919890.6 15268527.8 39880874.9 39856123.2 1636439.3 1475709.7 26057647.8 729948D.3 Taxes0. 3970367.6 0.0 0.0 Foregin Exctwane 0.0 0.0 0.0 0.0 65104998.0 87486172.7 14477991.1 0.0 0.0 0.0 ...... 39880874.9 39856123.2 1311071.7 1475709.7 ...... 26057647.8 7299480.3 3970367.6 ...... ,,...... ,,. ,
Ii
0. NaLdives ThirdFisheries SummaryAccount by Project Cosponent Rf
Physical Price Support to Private Contingencies Contingencies Support to Env.Res.Uni Sec.Encoura ------NFUA t gement Total X Amomt X Amount 1. INMVSTNENTCOSTS ...... A. Civil Works 0.0 0.0 0.0 118627501.3 6.6 7853570.6 8.9 10542711.7 Refrigeration PlantlEquip 0.0 0.0 0.0 49353273.0 3.0 1480598.2 7.7 3784491.7 _. Vessels 804800.0 0.0 0.0 35461500.0 5.0 ¶7m7075.0 10.1 3564212.0 . Transport Equipment 0.0 0.0 0.0 17936980.0 2.2 394613.6 7.8 1399055.1 E. Consultants nd Training 8822333.4 1131750.0 2012000.0 48715263.4 0.0 0.0 6.3 3077608.6 F. Naterials and Equipment 412038.8 434538.5 0.0 846577.3 1.1 9171.0 8.1 68332.8 Total INVESTMENTCOSTS 10039172.2 1566288.5 2012000.0 270941095.0 4.2 11511028.4 8.3 22436411.8 It. RECURRENTCOSTS ...... A. Incremental Recur. Costs 862600.0 696014.6 0.0 1872854.8 2.7 50512.7 24.5 458336.6
Total B LSEtLiECOSTS 10901772.2 2262303.1 2012000.0 272813949.9 4.2 11561541.1 8.4 22894748.4 PhysicalContingencies 40240.0 43971.8 0.0 11561541.1 PriceContingencies 1057806.3 339558.6 142528.2 22894748.4 4.1 937935.3 TotalPROJECT COSTS 11999818.5 2645833.4 2154528.2307270239.4 4.1 12499476.4 7.5 22894748.4 Taxes 0.0 0.0 0.0 0.0 0.0 0.0 Foreign Exchange 10680615.4 1925160.6 2154528.2 301680741.2 4.1 12305473.1
0~ - 5 6 - ANNEX 3.1
KALDIVES - THIRD FIS4ERIES PROJECT PFINANCIN PLAN 8Y PROJECTCOMPONiNT
Co ponsnt Cost IDA Norway S.ed.n NDf OPEC UNDP COm
Kooddoo Complex - Part Related Contract \
I.Port Works 6471.7 4141.9 2329.8 2.Office, Housing, Workshop 1517.7 971.3 846.4 3.NaviGational Aide (Invest. Cost) 118.1 76.2 42.9
(sub-total) 8108.5 S188.4 2919.1
Kooddoo Complex - Other Contracts
4.Rnfrigeration/Cold Storage Plant 8838.4 5S38.4 2400.0 S.l4i*cellaneous Equipment 3984.3 3964.3 S.New Vese l 2887.8 2587 .6 7.Rofurbishwant of Vessl- 1058.0 1o05.O 8.1ooring Tug 816.3 316.3 9.Na.igational Aide(Recurrant) 43.S 4S3. '0.D;ein/Super.i*ion for Port, Plant 2590.2 2590.2 11.TA/Training for Vessels 146.7 148.7
(Sub-total) 27763.5 7926.3 6538.4 2400.0 8338.6 2587.6 0.0 2982.8
Support Activities
1.Support to fPID 725.6 725.6 2.Suoport to PPI Restructuring 394.7 9887 296.0 3.Support to MOfA 1192.8 1054.4 138.4 4.Support to ERU 263.0 263.0 S.Pri ate Sector Encouragement 214.2 214.2
(Sub-total) 2790.3 2082.9 0.0 0.0 263.0 0.0 296.0 138.4
TOTAL 80343.8 10019.2 6538.4 \b 2400.0 8801.6 2687.6 296.0 3101.0
Not.:\a IA to finance 64.001 of the total contract saount. \b Norway *i ll actual ly provide USS6.7 xi ll;on gquivalent: the belance wi ll be uad to cover a part of the guarantee fee for the Norwegian credit. - 57 - ANNEX 3.2
Maldives ThirdFisheries FinancingPLan by ForeignExchange / Local/ taxes USS
IDA Norway Sweden NDF OPECFund UNDP GOM Total ...... Amount Amount Amount Amount Amount Amount Amount Amount
I Foreign 9968987.36361444.9 2334993.8 5529951.2 2587559.6 296001.6 2909206.9299W88145.3 11 Local(Excl. Taxes) 50292.6 176964.7 64955.6 71637.5 0.0 0.0 191765.8 555616.1 IIITaxes 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 TotatProject 10019279.96538409.5 2399949.4 5601588.7 2587559.6 296001.6 3100972.730543761.4 .uuaumuusw... .nu.nuuu...... ruu3...... w...... m...... _ 59 - ANNEX3.3
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Cost Recovery from STO/FPID
Of which to As Percentage be Recovered oi Total As Percentage Project Components Cost from STO Components of Total Benefitting STO (US$ '000) (US$ '000) Benefitting STO Project coat
Kooddoo Complex 27,753.5 19,904.4 68.9 65.2
TA to FPID 725.6 0.0 0.0 0.0
TA for Restructuring of FPID 394.7 0.0 0.0 0.0
Total 28.873.8/a 19,904.4 68.9 65.2
/a 94.5Z of total project cost. - 59 - ANNEX 3.4
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
DisbursementCategory Limits (USS)
Z of Expenditure Category Credit Allocation to be Financed
1. Civil Works for the 4,479,900 64 Port, Office/Housing/ Workshop and NavigationalAids
2. Equipment and Materials for MOFA 22,100 IOOZof foreign expenditures; 1002 of local ex- penditures (ex- factory); 902 of other local expenditures
3. Prototype Fishing Vessels 80,000 1002 of foreign expenditures; 100Z of local ex- penditures (ex- factory); 902 of other local expenditures
4. Consultant Services 2,974,900 100 for: Construction Supervision for the Port, Freezing/ColdStorage Plant and Vessels; for FPID, MOFA and MTI; and Training of: Vessels' Captains and Engineers and MOPA Staff; and for Familiarization Visits for Vessel Design
5. Refunding of PPF Advance 1,500,000
6. Unallocated 943,100
TOTAL 10.000,000 - 60 - ANNEX3.5
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Disbursement Schedule by Semester
Proiect IBRD Fiscal Year Semester Cumulative Cumulative and Semester (US$ '000) (US$ '000) (Percent)
FY92 First 0.0 0.0 0.0 Second 825.0 825.0 8.3
FY93 First 675.0 1,500.0 15.0 Second 963.6 2,463.6 24.6
FY94 First 1,406.9 3,870.5 38.7 Second 1,348.8 5,219.3 52.2
FY95 First 1,218.4 6,437.7 64.4 Second 1,218.4 7,656.1 76.6
FY96 First 1,022.5 8,678.6 86.8 Second 705.8 9,384.4 93.8
FY97 First 514.4 9,898.8 99.0 Second 101.2 10,000.0 100.0 - 61 - ANNEX 4.1
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
National Fish Catch and FPID Tuna Collection by Atoll. 1990 (metric tons)
Yellow- Other Other Total Tuna collected Region Skipjack fin tuna fish catch by FPID
Republic 59.899 5.279 5.185 6.011 76.373 22.740
Male 4,084 373 322 174 4,953 0 North Thiladhunmathi 5,385 300 195 119 5,999 2,796 South Thiladhunmathi 1,412 118 240 381 2,150 19 North Miladhunmadulu 1,418 351 1,040 1,166 3,973 76 South Miladhunmadulu 824 62 1,155 121 2,163 0 North Maalhosmadulu 6,175 487 624 251 7,537 0 South Maalhosmadulu 3,124 464 264 349 4,201 0 Faadhippolhu 4,785 366 48 9 5,209 23 Male Atoll 4,622 402 137 117 5,278 0 Ari Atoll 468 196 777 1,161 2,602 0 Felidhu Atoll 788 11 47 326 1,172 0 Mulaku Atoll 2,733 132 34 50 2,949 1,156 North Nilandhe 53 55 19 216 342 0 South Nilandhe 513 226 75 246 1,059 2 Kolhnmadulu 4,392 465 55 227 5,139 774 Hadhdhunmathi 5,405 783 98 58 6,344 6,428 North Huvadhu 5,443 228 11 14 5,695 6,570 South Huvadhu 7,044 146 31 172 7,394 4,861 Foammulah 155 80 0 17 252 35 Addu 1,076 33 15 838 1,962 0.5
Source. MOFA, FPID.
Note: Inconsistenciesin the above arise from differencesin sources of information. - 62 - ANNEX4.2
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Fish Catch by TYDe of Vessel. 1990 (metric tons)
Yellow- Dogtooth Little Frigate Other Total Vessel Skipjack fin tuna tuna tuna fish catch
All Vessels 59.899 5.279 281 1.891 3.013 6.011 76.373
Mechanized Masdhoni 59,724 5,225 260 1,238 2,760 5,068 74,275
Sailing Masdhoni 47 5 1 15 21 11 99
Mechanized Vadhu dhoni 37 10 0 17 12 24 99
Sailing Vadhu dhoni 91 40 20 614 216 599 1,580
Row Boat 0 0 0 6 3 12 21
Others 0 0 0 1 1 297 299
Source: MOFA. - 63 - ANNEX4.3
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Fish Production and Exports. 1990 (Thousand metric tons)
Total Catch 76.4
Skipjack 59.9 Yellowfin 5.3 Other tuna 5.2 Reef and bottom fish 6.0
Export of fresh/frozenfish 17.1
Export of other fish /a 41.5
Dry skipjack (Maldive fish) 12.1 Dry salted skipjack 6.3 Dry salted reef fish 2.3 Canned fish 20.8
La Fresh fish equivalents.
Source: MOFA. - 64 - ANNEX 4.4
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Export of Marine Prodtucts,1990
Private Sector Public Sector Item Quantity Lj Value FOB Quantity Value FOB (Rf) (metric tons) (Rf)
Total 83,401,870.6 277.973 984.7
Canned fish 0.0 6,930.8 127,038,864.9
Cowrie shells 25.9 53,378.0 0.0 0.0
Dried shark fins 17.8 1,798,870.0 0.0 0.0
Dried skipjack 2,077.6 33,359,774.6 340.0 2,808,939.4
Fish meal 0.7 2,175.9 1,970.0 7,210,599.7
Frozen skipjack 0.0 0.0 17,055.9 132,446,974.1
Live tropical fish 54,572.0 1,261,415.3 0.0 0.0
Red coral 16.7 22,854.5 0.0 0.0
Salt dry reef fish 595.4 4,977,185.8 156.0 1,272,695.8
Salt dry skipjack 959.5 8,180,882.8 1,124.7 7,065,282.9
Sea cucumber 745.9 31,584,050.9 0.0 0.0
Shark liver oil 19.0 1,072,753.9 2.7 130,628.0
Frozen clam meat 8.8 1,088,529.0 0.0 0.0
LI All in metric tons except for live tropical fish, which is in numbers.
Source: MOFA. - 65 - ANNEX 4.5
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Marine Products Exports by the Private and Government Sector By Country of Destination, 1990 (Rf)
Country of destination Private Government
Sri Lanka 45,904,930.0 16,112,386.5 United Kingdom 175,099.6 91,163,228.7 Italy 13,236.4 401,631.0 Thailand 37,138.5 90,704,935.3 West Germany 61,158.5 23,088,570.4 Hong Kong 12,919,263.7 0.0 Singapore 22,737,168.4 2,375,759.3 India 233,574.4 0.0 United States 19,576.4 552,699.9 Japan 691,280.3 41,742,038.8 Austria 1,590e8 874,818.0 Switzerland 21,248.3 1,419,165.0 France 70,166.8 0.0 Netherlands 412,805.0 638,345.1 Taiwan 21,541.3 0.0 Denmark 0.0 2,569,158.1 Canada 0.0 6,331,250.7 Belgium 35,463.9 0.0 Solomon Islands 46,628.4 0.0
Total 83,401,870.6 277.973.984.7
Source: MOFA. - 66 - ANNEX 4.6
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Official Prices for Fresh Tuna Purchased by STO
Price/kz for Fish (Rf) Date of Price Revision Above 2 kg Below 2 kg
April 1, 1981 1.50 1.10
December 10, 1985 1.80 1.30
March 1, 1987 1.95 1.55
June 1, 1987 1.95 1.40
December 3, 1989 2.00 1.50
December 10, 1990 2.20 1.70
Source: MOFA, FPID. - 677 ANNEX4.7
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Average Price of Fuel for Fishermen Relative to Tuna Prices
Price of Fuel for Average Price Ratio of Fuel Fishermen of Tuna /a to Tuna Prices Rf/liter Rf/kg
1983 2.89 1.46 2.0
1984 2.70 1.46 1.8
1985 2.70 1.46 1.8
1986 2.66 1.75 1.5
1987 2.60 1.92 1.4
1988 2.60 1.875 1.4
1989 2.60 1.895 1.4
1990 2.85 1.95 1.5
1991 4.05 2.15 1.9
/a Based on 90Z of tuna over 2 kg and 10S below 2 kg.
Source: STO and FPID. - 68 - ANNEX 5.1
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Technical Assistance Schedule
Parson Months
A. Detailed Design and Supervision
I. Support to STO
(a) Detailed Design Predesign Studies 17.5 Port 33.5 Plant 58.0 Vessels 5.0
(Subtotal) (114.0)
(b) Supervision and Construction Port 22.0 Plant 70*0 Vessels 6.0
(Subtotal) (98.0)
B. Technical Assistance (InstitutionalSuDDort)
I. Support for Restructuringof FPID 12.0
II. Support to FPID 53.0
III. Support to the Ministry of Fisheries and Agriculture
(a) Tuna Studies 36.0 (b) Statistics Support 5.0 (c) Support for Economic Planning and Development Section 14.0 (d) Fishing Vessel Design 12.0
(Subtotal) (6)
IV. Support to the EnvironmentalResearch Unit 9.0
V. Support for Private Sector Encouragement 16.0
C. Total 369.0 - 69 - ANNEX 5.2 Page 1 of 9
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
TERMSOF REFERENCE
Detailed Design of Kooddoo Port and Fish Freezing Complex
I. Background
1. State Trading Organization (STO) currently employs a fleet of mother vessels and collector vessels in Huvadhu (Gaafu) atoll in the South of Maldives to collect and freeze tuna for export to East Asia canneries. Huvadhu atoll consists of about 80 islands, of about 20 are inhabited; it currently produces about 13,000 tons of tuna, of which about 11,400 tons is exported. It can only be reached by boat, and has very limited facilities for transport and lodging.
2. The current fleet of STO vessels is old and is in nied of immediate replacement. In addition, the capacity of the STO fleet in the atoll is limited, constrainingtuna production of the local fishing fleet.
3. The Governmentof Maldives (GOM) has approached the World Bank and various cofinanciersto finance a project to replace the current fleet of mother and collectorvessels by shore-based tuna freezing plant, including port and collector vessels, at the uninhabitedKooddoo island in Huvadhu Atoll. This island is located adjacent to the capital of North Huvadhu Atoll (Gaafu Alifu), Villingili,which has a population of about 2,000.
4. This detailed design study follows recommendationsfrom FAO/CP and World Bank preparationand appraisalmissions which have assessed the scope and location of the proposed plant and prepared preliminary designs and its feasibility,which are attached to the paper on project objectives and description,which is part of this tender package.
II. Oblectives
5. The purpose of this study is to:
(a) determine the necessary data concerning the physical environment thrcugh predesign studies;
(b) prepare detailed design of the port facilities,refrigeration plant, power and water supply and a housing complex;
(c) prepare a baseline environmentalsurvey and design and environmental monitoring system for the complex; and
(d) prepare draft tender documents for constructionof the port and separate tender documents for a turnkey contract for the - 70 - ANNEX 5.2 Page 2 of 9
refrigerationcomplex and related infrastructure,and a separate contract for equipment and assist GOM in evaluating bids.
III. SCOpe of Consultina Services
A. C neral
6. The consultantsshall conduct all engineeringsurveys and collection of operational data and other work herein described, as required to attain the objectives stated above. In the conduct of their work, the consultants shall collaborate closely with GOM, acting through STO, which has agreed to assign staff to work with the consultants,and provide data, services and facilities outlined in part IV herein. The consultantsshall be solely responsible, however, for the interpretationof all data and services received and for the findings and recommendationscontained in their report.
7. The geographicalscope of this osudy shall be limited to Kooddoo island, and the tuna fishery in Huvadhu Atoll.
B. Predesian Studies
8. Predesign Studies will include:
(a) Storm surge, wind and wave climate studies;
(b) Geotechnicaland hydrologicalstudies;
(c) Coastal processes studies; and
(d) Environmentalbaseline study and impact assessment.
Storm surze. wind and wage studies
9. The consultant shall:
* determine the inshore wave climate at the project site (North of Kooddoo island), using numerical techniques based on inshore and deep water wave data as locally and international'lyavailable.
* assess tidal variations, at the project site and establish the design tidal range.
• estimate the maximum and minimum seal level due to tidal and atmosphericeffects for a I in 100-year return period.
* estimate wave conditions at the deep water reefer berth and in the harbor basin.
* astimatedown time at the deep water berth for reefer vessels due to wind and/or wave conditions.
* determine the design wave height for determiningthe armor size and height of the inshore breakwater. - 71 ANNEX5.2 Page 3 of 9
Geotechnicaland HydrolozicalStudies
10. Specify, organize and administer a terrestrial and marine geotechnicalinvestigation to determine:
* foundation conditions for buildings, storage tanks and harbor structures. The mar._nebore holes shall extend at least 5 meters below the toe of any piling.
* the dredging characteristicsof materials to be rendered from the harbor basin, approach channel and reefer berth and the suitability of the dredged material as fill material.
* tidal variations, its response to draw down by pumping and its sustainableyield as a source of fresh non-potablewater.
Coastal Processes
11. The consultant sh all investigateexisting coastal processes and determine the impact of the constructionand operation of the port and shore facilities upon them. Specially the consultant shall:
* identify the coastal processes presently at work.
* determine the sources and sinks of sediments affected by littoral drift and estimate the extent of coastline likely to be influenced by constructionof the project.
o estimate the long-term availabilityof material from existing resources. * quantify rates and volumes of sediment transport.
* measure existing beach profiles over the length of the beach assessed to be affected by new construction,and establish a data base.
* recommend and outline coastal zone management proposed for the island to minimize the adverse impact of the project and subsequent shoreline developmenton the coastal processes regime.
* establish a program for ongoing beach profile and sediment transport to be taken over by GOM and provide training to designated GOM personnel.
EnvironmentalImpact
12. The consultant shall determine the environmentalbaseline condition at the site, shall assess the environmentalimpact of the constructionand operation of the project and shall identify and cost mitigation measures. - 72 _ ANNEX 5.2 Page 4 of 9
Specificallyhe shall:
* assess the health of the coral at the project site.
* prepare an inventoryof existing terrestrial and marine flora and fauna at the site, noting in particular rare and endangered species and establish a data base.
* assess the environmentalimpact of the constructionand operation of the project, in particular:
** impact of the additional sediment load in the water during capital dredging work and subsequentmaintenance; ** impact of sewerage discharges; ** impact of cooling water discharges; ** impact of groundwater; ** impact of waste generation from the plant and housing complex; ** impact of noise and exhaust from the generating plant;
* recommend design and cost mitigation measures.
* recommend and establish an ongoing environmentalmonitoring program to be taken over by the Ministry of Planning and Environment of GOM and provide training to designatedGOM personnel.
* recommend equipment to carry out such monitoring program.
* assess the risks of accidents related to operation of the plant, and recommend operatingmeasures and equipment to deal with such risks notably concerning the transfer and storage of fuel, the discharge of contaminatedseawater from collectorvessels in the harbor and accidental discharges of oil and other substances on land.
C. Detailed Design
General
13. In conceiving detailed design of the port and refrigerationcomplex, the consultants should review recommendations,suggestions and issues posed by FAO/CP and World Bank missions, as detailed in the three working papers attached to the descriptionof the project. These papers include addenda reflecting the most up-to-dateviews and concern. However, the consultants will be solely responsiblefor the final detailed design.
14. In the light of these predesign studies, and the other design considerationsdetailed in paras. 17 to 21, the consultantsshould review the design of the port, refrigerationcomplex and ancillary services at Kooddoo and recommend any necessary modifications. They shculd assess the operational impact of any modification quantify their costs implications,and agree the revised design with GOM prior to finalizing detailed design. ANNEX 5.2 Page 5 of 9
15. The consultantsshould carry out detailed design for the port and ahore facilities,including: * dredging * berth structures * breakwater and causeway * redamation and paving * foundationsfor refrigerationcomplex * freezing facilities * cold stores for frozen tuna * electricitygeneration and distributionand workshop * desalinationplant and water distributionsystem for different types of water * transportationand handling equipment * a building to house the various refrigeration,power and water facilities * water and fuel storage facilities * water treatment plant * drainage and services * sewerage treatment and disposal * cooling water disposal * refrigeratedsea water from collector vessels disposal * housing * landscapingand planting * navigationalaids * miscellaneousequipment, like scales, jetty cranes, fish boxes, cleaning and fire fighting equipment,workshop tools, etc.
16. They should:
* prepare detailed cost estimates.
* prepare a detailed constructionand procurement program, taking account of the financingpackage as detailed in para. 19 and Annex I to those TOR and the need for separate contracts.
* provide assistance to GOM in the preparation and issuing of prequalificationinvitationb and the evaluation of prequalification information,if so desired by IDA and/or GOM.
* prepare detailed tender documents,which reflects the individual procurementconditions of the financiers of the project, as detailed in the financing schedule (Annex I).
* Assist GOM in the distributionof tender documents and in the evaluation of bids.
D. Design Considerations
17. In designing the facilitiesand preparing procurement and constructionschedules, the consultantswill take account of the following considerations. - 7/4- ANNEX 5.2 Page 6 of 9
18. Financing. The facilities to be designed will be financed by a consortium of financiers from Norway and Sweden (Eksportfinansof Norway, NORAD, the Norwegian Agency for DevelopmentCooperation, and BITS, the Swedilsh Agency for InternationalTechnical and Economic Cooperation),the Nordic DevelopmentFund (NDF), the OPEC Fund and GOM. In Annex I a detailed list is attached of the financing package and how each project component is being financed.
19. The consultantsshould henceforthprepare tender documents for:
(a) a turnkey contract to construct the refrigerationcomplex. Procurementwould be limited to Norwegian and Swedish companies and the contract would be financed jointly by Exportfinans/NORAD/BITS. The contract should be limited to the items listed under "RefrigerationComplex" of Annex I.
(b) a contract to supply various equipment to the contractor mentioned under (a). The procurementwould be limited to suppliers from the five NORDIC countries (Iceland,Norway, Sweden, Denmark and Finland), and the contract would be financed by NDF.
Administrationof the procurementprocess would be handled by the turnkey contractor selected under (A). Tender arrangementsshould allow bidders to bid for individual or groups of items as listed under miscellaneousequipment listed in AninexI, and should be in accordancewith NDF guidelines.
(c) an InternationalCompetitive Bidding contract for port facilities, housing and navigationalaids to be financed by IDA.
20. All procurement documents should be in accordancewith the guidelines for procurement of the respective financiers. Detailed design of the ves&el component and the technical assistance components of the project are not part of this assignment,and will be executed by other consultants.
21. ConstructionImplementation. In view of the complicated financing and procurement arrangements,the consultantswill take particular care to phase constructionimplementation in such a way to achieve maximum efficiency and minimum costs. Specially the consultants should consider:
* Dredging of a preliminarychannel at the project site to facilitate unloading of the equipment and materials of the civil works and other contractor;
* assess the value of completing the deepwater berth prior to shipment of equipment for constructionof the refrigerationcomplex;
* the need for temporary housing for contractor staff on site, fuel supply, availabilityof water, etc.
* transport arrangements;and - 75 - ANNEX 5.2 Page 7 of 9
* the key interfacebetween the civil works and refrigerationturnkey contracts.
Particular care should be taken to review the rise of the deepwater berth, to ensure its operationalefficiency, and the need for standardizationof equipment and navigationalaids.
22. In preparing detailed designs and modifications,the consultants will take full account of the environmentalguidelines issued by the Ministry of Planning and Environmentas pertaining to the project, specially concerning the use of rock and aggregates from outside the country to minimize mining of local coral rock.
E. Time Schedule and Reporting
23. The consultantsshall mobilize their team in Maldives within one week of the Starting Date of the contract.
The consultantsshall prepare and submit the following reports to GOM and IDA within the time periods and in the quantities indicated.
Copies to Timing (in months) GOM bank from (StartingDate)
Inception Report 10 10 1h Interim Report 10 10 4½ Draft final tender documents 10 10 8
All reports should be in English.
24. The Inception Report shall summarize the consultant'sinitial findings and comments, a first assessment of available data, on site conditions,and difficultiesencountered or foreseen. In addition it sh all contain:
(a) details of the methods employed in the predesign surveys and other studies;
(b) the program of predesign surveys and detailed design; and
(c) an outline of the Interim Report.
25. The Interim Report shall contain:
o Details of the predesign study findings, an, their implicationsfor the design.
* a detailed list of modificationsof the project design as described in the project description and working papers and their implications in terms of costs and operations;and - 76 - ANNEX 5.2 Page 8 of 9
* a list of issues which need to be resolved by GOM, the financiers or the consultantswhich require decisions prior to completion of the tender documents. As soon as possible after issuing of the Interim Report, but not later than three weeks, a tripartitemeeting would take place between the consultants,the financiers and GOM to discuss the findings cf the report, and decide on outstanding issues. The consultantowill within two weeks prepare a report on the meeting which will be attached to the Interim Report.
IV. Data. Services and Facilities to be Provided by the Government
Data
26. GOM has agreed to provide the consultantswith access to all available data relevant to the services. The data shall include, but not be limited to:
* Wind and precipitationrecords from Male Airport;
* Records of predesign studies for the Felivaru Canning and Freezing Complex, which is somewhat similar to the proposed plant;
* A survey of Kooddoo Island;
* Drawing of project facilities as prepared during preliminary design of FAO/CP;
= The findings of the FAO/CP mission as detailed in their Preparation Reports.
Service
27. GOM will make arrangementsfor access by the consultantsto key officials in public and private agencies related to the project. It will provide the consultantsduring their stay in Maldives with:
* Secretarial staff consisting of a bilingual secretary and two typists full time for the duration of the services in Maldives.
* Unlimited local telephone services, and telex, fax and mail services to the country of origin of the consultants.
* Transportationbetween Male and Kooddoo island.
* Housing in Male and on site.
Facilities
28. GOM will provide the consultantsduring their stay in Maldives with the following facilities: - 77 _ ANNEX 5.2 Page 9 of 9
* Suitable air conditionedoffice space for consultants,counterpart staff to be assigned by STO and related secretarialstaff; * office furniture and equipment, includingword processing equipment, computers, reproductionmachinery, telephone and fax services, and office security and cleaning.
* offie supplies, as required. - 78 - ANNEX 3.3 Page 1 of 6
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
TERMS OF REFERENCE
Survev and Design of Fish Collector Vessels
I. Backyround
1. State Trading Organization (STO) currently employs a fleet of mother vessels and collector vessels in Huvadhu (Gaafu) atoll in the South of Maldives to collect and freeze tuna for export to East Asia canneries. Huvadhu atoll consists of about 80 islands, of about 20 are inhabited; it currently produces about 13,000 tons of tuna, of which about 11,400 tons is exported. It can only be reached by boat, and has very limited facilities for transport and lodging.
2. The current fleet of STO vessels is old and is in need of immediate replacement. In addition, the capacity of the STO fleet in the atoll is limited, constrainingtuna production of the local fishing fleet.
3. The Governmentof Maldives (GOM) has approached the World Bank in various cofinanciersto finance a project to replace the current fleet of mother and collecrorvessels by shore-basedtuna freezing plant, including port and collectorvessels, at the uninhabitedKooddoo island and Huvadhu Atoll. This island is located adjacent to the capital of North Huvadhu atoll: Villingili,which has a populationof about 2,000.
4. A preliminary design study, which follows recommendationsfrom FAO/CP and World Bank preparation and appraisalmissions which have assessed the scope and location of the proposed plant and prepared preliminary designs and its feasibilityis attached to the paper on project objectives and description,which is part of this tender package.
II. Obiectives
5. The purpose of this assignment is to:
(a) determine the necessary data concerningthe physical environment which the prorosed vessels have to operate;
(b) prepare detailed designs for three new fish collectionvessels;
(c) survey four existing fish collectionvessels;
(d) prepare a detailed proposal for complete refurbishmentof the existing vessels; - 79 _ ANNEX 5.3 Page 2 of 6
(e) prepare draft tender documents for constructionon the new fish collectionvessels, and a separate tender document for a turnkey contract for the refurbishmentof the existing vessels and assist GOM in evaluating bids; and
(f) supervise constructionand refurbishment.
III. Scope of Consultina Services
A. General
6. The consultants shall conduct all surveys, and collection of operationaldata and other work herein described, as required to attain the objectives stated above. In the conduct of their work, the consultants shall collaborateclosely with GOM acting through STO, which has agreed to assign staff to work with the consultants,and provide data, services and facilities outlined in part IV herein. The consultants shall be solely responsible, however, for the interpretationof all data and servicee received and for the findings and recomendations contained in their report.
B. DesiQn of New Fish Collection VesselF
7. The proposed vessels will be built of steel with an overall length of about 23 m and a beam of 6.5 m. Fish holds will be provided to carry a minimum of 25 tons of tuna in chilled brine. The vessels will be equipped with a main engine of approximstely250 hp, to attain a service speed of 8.5 knots.
The Consultant shall:
* determine the detailed design pai:ametersfor the proposed vessels, based on the informationprovided in the attached objectives and descriptionof the project, and on an assessment of collector operations in the project area (Huvadhu atoll);
* prepare a set of bidding documents to conform to IDA's procedures for Limited InternationalBidding;
* the technical section of the tender documents should include a complete technical specification,and the following drawings;
General Arrangement Plan Lines Plan Profile and Decks Machinery arrangement
* The foregoing documents should be developed to a sufficient level of detail to comprise contracL documents following final negotiations with the selected bidder. Technical specificationshould articulate appropriate standards of construction,machinery and equipment to conform with the requirementsof the InternationalClassification Society and relevant internationalconventions, such as the Safety -0- ANNEX 5.3 Page 3 of 6
of Life at Sea. Machinery and Equipment Specificationshould be generic as opposed to referencingindividual suppliers.
* Prepare a shortlist of about six shipyardswho may be particularly suitable for the proposed constructionof these vessels;
* Assist in the bid evaluation, including an analysis of bidder's proposed general arrangementand technical specificationswhere these differ from tender documents, and prepare a bid evaluation report and recommendationfor award of contract;
* following contract award, approve builders working drawings, constructionschedules as well as builder's proposals for tests and trial procedures;
* witness and approve in conjunction,where practical, with any similar surveys and approval by the classificationsociety nominated by the builder, the hull constructionincluding installationof floors, longitudinales,bulkheads and decks, installationof main and auxiliary engines and refrigerationequipment, installationof hydraulic machinery, and installationof electronic and navigation equipment;
* witness and approve all test and trials, including tank tests, pipe systems tests, electrical and communicationstests, dock trial tests, sea trials and loading trials. Special attention should be paid to fuel and power efficiency,without compromisingsafety and operational requirements.
C. Survey and Design of Refurbishmentof Existing Fish Collection Vessels
8. The existing vessels are built of steel with an overall length of about 17 m. Fish holds carry about 18 tons of tuna in chilled seawater. The vessels are equipped with a main engine of approximately150 hp.
The consultant shall:
* determine the detailed design parameters for the proposed vessels, based on the informationprovided in the attached objectives and descriptionof the project, and on an assessment of collector operations in the project area (Huvadhu atoll);
* survey the four existing collection vessels, in accordancewith accepted standards of the InternationalClassification Society;
* prepare a set of bidding documents for refurbishmentof the vessels, conform to procedures required by the Nordic Development Fund;
* the technical section of the tender documents should include a complete technical specificationof the required refurbishmentof each of the vessels, and the following drawings for each vessel; - 31 - ANNEX 5.3 Page 4 of 6
Existing and Proposed General Arrangement Plan Existing and Proposed Lines Plan Existing and Proposed Profile and Decks Existing and Proposed Machinery arrangement
* The proposed documents should be developed to a sufficient 1-vel of detail to comprise contract documents following final negotiations with the selected bidder. Technical specificationsshould articulate appropriatestandards of construction,machinery and equipment to conform with the requirementsof the International ClassificationSociety and relevant internationalEquipment Specificationshould be generic as opposed to referencing individual suppliers.
* If approved by the Nordic Development Fund, prepare a shortlist of shipyardswho may be particularlysuitable for the proposed refurbishmentof these vessels;
* Assist in the bid evaluation, includingan analysis of bidder's proposed general arrangementand technical specificationswhere these differ from tender documents, and prepare a bid evaluation report and recommendationfor award of contract;
* Following contract award, approve builders working drawings, constructionschedules as well as builder's proposals for tests and trial procedures;
* Witness and approve in conjunction,where practical, with any similar surveys and approval by the classificationsociety nominated by the builder, the hull constructionincluding installationof floors, longitudinales,bulkheads and decks, installationof mair and auxiliary engines and refrigerationequipment, installationof hydraulic machinery, and installationof electronic and navigation equipment;
* Witness and approve all tests and trials, including tax tests, pipe systems tests, electrical and communicationstests, dock trial tests, sea trials and loading trials. Special attention should be paid to fuel and power efficiency,without comprising safety and operational requirements.
D. Time Schedule and ReDorting
9. The consultant shall mobilize in Maldives within one week of the Starting Date of the Contract.
The consultant shall prepare and submit the following reports to GOM and IDA within the time periods and in the quantities indicated. - 82 - ANNEX 5.3 Page 5 of 6
Copies to Timing (in months GOM Bank from Starting Date)
InceptionReport 3 3 1½ Interim Report 3 3 3 Draft final tender Documents 3 3 6
All reports should be in English.
10. The InceptionReport shall summarize the consultant'sinitial findings and comments, a first assessment of available data, initial survey findings, and difficultiesencountered or foreseen. In addition it shall contain:
(a) details of the key design issues followingvessel surveys;
(b) the program of predesign surveys and detailed design; and
(c) an outline of the Interim Report.
11. The Interim Report shall contain:
* Details of the predesign surveys, and their implicationsfor the designs; * A detailed list of modificationsof the existing vessels and modificationsof the preliminarydes-ign parameters of the new vessels as provided in the background papers, and their implications in terms of costs and operations;and
* A list of issues which need to be resolved by GOM, the financiers or the consultantwhich require decisions prior to completion of the tender documents.
12. As soon at possible after issuing of the Interim Report, but not later than three weeks, a tripartitemeeting would take place between the consultant,the financiersand GOM to discuss the findings of the report, and decide on outstanding issues. The consultantswill within two weeks prepare a report on the meeting which will be attached to the Interim Report.
E. Data, Services and Facilities to be Provided by GOM
Data
13. The Government has agreed to provide the consultantswith access to all available data relevant to the services. The data shall include, but not be limited to: * Wind records from Male's Airport;
* Drawitngsof project facilitiesof the plant at Kooddoo as prepared during preliminary design of FAO/CP; 83 - ANNEX 5.3 Page 6 of 6
* The findings of the FAO/CP mission as detailed in their Preparation Reports.
Services
14. GOM will make arrangementsfor access by the consultants to key officials in public and private agencies related to the project. It will provide the consultantsduring their stay in Maldives with: * Secretarial staff for the duration of the services in Maldives;
* Unlimited local telephone services, and telex, fax, and mail services to the country of origin of the consultants;
* Transportationbetween Male and Kooddoo island.
Facilities
15. GOM will provide the consultantsduring their stay in Maldives with the following facilities: * Suitable airconditionedoffice space for the consultant,counterpart staff to be assigned by STO and related secretarial staff;
- Office furniture and equipment, includingword processing equipment, computers, reproductionmachinery, telephone and fax services, and office security and cleaning;
* Office supplies as required. - 84 - ANNEX 5.4 Page 1 of 4
REPUBLIC OF HALDIVES
THIRD FISHERIES PROJECT
TERMS OF REFERENCE
FPID RestructuringNanagement Consultanec
FPID is an operating division of the State Trading Organization (STO) and is currently composed of the followingunits:
DMP: Responsible for collecting/freezingand exporting tuna MFWEP: Owner of three mother and nine collectorvessels FTPP: Felivaru Tuna Processing Plant GENERAL: Responsible for purchasing and exporting dried fish.
FPID will also be responsiblefor executing the Third FisheriesProject financed by GOM, IDA, and other donors,which will involve, inter alia, the constructionof port and freezing/coldstorage facilitiesat Kooddoo in Gaafu Alifu which are projected to become operationalin 1994.
The management consultantsare required to review any previous studies on STO/FPID'spresent and future business operations, organizational structure,manning charts and the financialstructure, system,s procedures and recommendationsto restructureFPID into more efficient and profitable operatingunits. Eventuallyit is envisagedGOM may invite private participationin FPID's commercialactivities and the restructuringprocess should consider and evaluate the competitiveadvantage of the alternative forms. The consulting assignmentis estimated to encompass a visit to Male (Maldives)of four weeks duration at the end of which period the consultants should prepare an initial report to be submitted to GOM and IDA for comment (within six weeks) detailing their findings and recommendations. After review by GOM and IDA a further meeting will be held in Hale to discuss and clarify any issues and to finalize the report. GOM will then make its final decision on what form the restructuringof FPID will take and the consultantsmay be required to assist on particular aspects of implementationof their recommendationsif GOM so request.
The followingTerms of Reference cover the major areas to be reviewed during the assignmentby approximatelyfour consultant specialists. Consulting Firms invited to participateare at liberty to combine these assignmentsand make additionalproposals of they have specialist skills which they consider would enhance the quality of their final report.
1. Hanagement and OraanizationSgecialist
* Examine GOM/STO[PID's overall strategy in the fisheries sector and visit existing areas of infrastructure--freezing/production facilities,and review proposed investments;review products sold, pricing mechanisms,marketing and distributionsystems; comment on any weaknessesnoted and make recommendationson future strategy. - 85 - ANNEX5.4 Page 2 of 4
* Examine the existing business tunits of FPID and separate those businesses which entail commercialoperations from those which representpublic sector/serviceactivities which could possibly be retained by GOM and onerated in the public interest on a user pays (or other alternative)basis. Make recommendationson the appropriatehandling of such public sector type investments.
* Examlne for the commercialbusiness operations,the alternative business entitieswhich would be the most appropriate for them in the circumstances (e.g., Government Agency, GovernimentCorporation, Limited Liability Company, etc.) within the framework of existing Maldives laws and legal obligationsentered into with external donors (e.g., Kuwait Fund etc., and provide arguments for/against each alternative. Recommend preferred business entity for each type of business activity.
* Draw up present and appropriatefuture organizationcharts (alternativeor phased if necessary)which could be adopted by the various business ontities of FPID. Make recommendationson the most appropriateorganization chart/structure for optimum operating efficiencyfor each FPID business entity. Identify vacant posts for recruitmentpurposes and recommend appropriate ttaining programs to strengthen any perceived deficiencies.
* Define key objectives for each FPID business entity and identify the most appropriate goals to measure the efficiency of (a) each entity's business operations and (b) each business entity's management.
* Prepare detailed job descriptionsindicating where appropriate educationaland experiencerequirements for tec'inicalposts; key objectives;responsibilities; and means by which performancewould be measured. Recommend authority limits within which key managerial positions should be permitted to operate.
2. Financialand Accounting Specialist
* Examine in detail FPID's present accounting and internal control system. Recommend system improvementsto facilitatethe accurate accountingand reporting of each FPID business entity to ensure each entity's financial statementsfairly reflect the results of its operations, in accordancewith generally accepted accounting standards.
* Examine FPID's present computer and financial reporting systems and procedures to ensure these are sound. Review formats of management reports and financial operating reports for each business entity and recommend any changes as appropriateindicating timing (weekly- quarterly, etc.) and contents (commentary,statistical tables, variance reporting, etc.). Specify important financial data and ratios suitable for each entity to be monitored and controlled by management. - 36 - ANNEX 5.4 Page 3 of 4
* Examine FPID's budgetary and long range (5 year) financial forecasting system. Review formats for each business entity linking these with management and financial reporting system (variance reporting actual vs. budget etc.). Specify the timing of preparation and submissionof such reports for management approval and eventual consolidationof FPID's annual business plan and five year long range plan (forecastbalance sheets and profit and loss accounts).
* Examine various alternative financial structures (equityversus debt) for FPID assuming different levels of public and private ownership including (i) 100 percent ownership by STO; (ii) majority ownership by STO with various levels of minority private equity participation;(iii) majority private ownership with various levels of minority ownership by STO; illustratingthe effects of these alternativesin 5-year forecast financial statements (balance sheets, profit and loss accounts,cash flow forecasts),discuss the timing of any recommendedexchanges and the effects on GOM revevues, and the ramificationsof each alternative.
* Prepare an appropriateorganization chart for the accounting/ financial section of each business entity indicatingvacant positions to be filled, taking into account internal control and any internal audit requirements. Recommend training programs to ensure appropriatelevels of qualified accounting staff are developed. Identify specific positions which would benefit from education overseas, and identify educationalor training institute and courses.
* Prepare job descriptionsfor all key accounting positions indicating vital internal control functions and reporting responsibilities, (bank reconciliation,inventory and accounts receivable reconciliations,preparation of trial balances/financialstatements by 10th of followingmonth, etc.).
* Develop an appropriateaccounting policy and procedures manual suitable for each business entity.
3. Legal Specialist
* Examine all relevant Maldive Laws and GOM legal agreements (loan, credit or grant) with lending institutions,bank or donor agencies relating to FPID activitieswbich may inhibit or impede FPID's restructuring.
* Recommend and draft alternativelegislation for GOM consideration, where present legislationinhibits the restructuringor privatizationprocess.
* Check legal aspects of non incorporatedentities (non juridical bodies) such as STO acting as a shareholder and holding shares in subsidiary companies such as FPID etc. - 87 - ANNEX 5.4 Page 4 of 4
* Recommend for the various types of business entities being considered for FPID, suitable wording for the Memorandum and Articles of Association (or the equivalent thereof) for each business unit.
* Recommend any improvementsto the Decree on Limited Liability Companies (DecreeNo. 1988/123)which would facilitate the restructuringof FPID.
4. Manpower Developmentand Training Specialist
* For FPID as a whole analyze the organizationcharts and training program charts prepared by the Management and Organization Specialist,and the Financial and Accounting Specialist,and prepare a skills analysis for all key senior management and technical positions;
* Develop succession charts to identify local staff who could be trained and who should develop skills to replace (a) expatriate staff when their contracts eventually expire; and (b) those senior local staff who retire from FPID on reaching retirement age;
* Develop or identify appropriatetraining programs for senior local staff development,separating training provided by contractorsor suppliersunder the Third Fisheries Project etc. from other training;
* For mid-level management and supervisorypositions analyze training needs and propose suitable long-term training programs (including safety programs) to develop managerial abilities and particular technical skills as necessary;
* For factory and freezing plant operators devise essential basic training programs including safety awarenessprograms;
* Identify the key X..nagement positionswhich should be responsible for maintaining and monitoring FPID's successionscharts, essential skills analysis, and training programs on an ongoing basis. Ensure they receive necessary familiarizationwith these responsibilities as required;
* Assist FPID management to prepare manning charts showing key positions to be filled at Kooddoo Plant, at the headquartersand other locations prior to plant startup. (To be submitted to IDA 12 months prior to plant startup). - 88 - ANNEX 6.1 Page 1 of 3
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Assumptions for Financial and Economic Analysis
A. General Assumptions
1. In order to quantify the benefit of the project to the fishermen and their families, STO/FPID and the country as a whole, analyses based on a boat model, cash flow projections and rate of return calculations (both financial and economic)were carried out. It is assumed that the economic life of the project is twenty years. It is assumed that the three mother vessels operating in the project area would in any case be scrapped regardless of whether or not there is an IDA project, two immediatelyafter the completion of the complex (at the end of fiscal 1993/94) and the remaining one four years later. Given the very poor condition of these vessels, this appears to be a reasonable assumption.
2. The throughput for the plant (14,000 tons per year) and export price of tuna (FOB Male, from US$775 per ton in 1991 to US$925 in 2010) were estimatedby Bank staff. Replacement costs of equipment were estimated in accordancewith the table on useful life, depreciationcosts and replacement schedules (Annex 6.2). The throughput for the plant is to be 80 and 90 pcr_snt of the level at full developmentduring the first two years of the operation of the plan. Two percent of the investmentcost would be needed annually to maintain the port and the buildings, in line with the level of maintenance cost in similar projects.
B. Assumptions for FinancialAnalysis
3. The financial analysis is intended to demonstratethe financial viability of the project as an independentunit. The major assumptions on which the financial analysis was based are as follows:
(a) the cost of port facilities to be constructedunder the project are not included in financial analysis,based on the assumption that STO/FPID would not be expected to bear such cost, due to the nature of the port as a public infrastructureand the only modern transport point in the region;
(b) profits from Maldive Fish exports have not been included in the financial analysis, since COM is gradually handing this trade over to the private sector;
(c) financialprice of fuel was assumed to remain at Rf 4.05 per liter (Annex 4.7), which is the price at which fuel was sold by the Government to fishermen at the time of appraisal, in effect since February 1991; - 89 - ANNEX 6.1 Page 2 of 3
(d) the operational costs of the refrigerationplant and collector vessels were calculatedby using financial prices (Annexes 6.4 and 6.5);
(e) STO/FPID's purchasing prices for tuna are Rf 2.20 per kg for those over 2 kg (assumed to be 75 percent of tuna sold to STO/FPID) and Rf 1.70 per kg for those under 2 kg, which were prevailing during appraisal (Annex 4.6). They are assumed to increase proportionately with the export price of tuna;
(f) selling and distributioncosts for frozen tuna were assumed to be 1.5 percent of the revenue from exporting frozen tuna, in line with past trends;
(g) investment or operationalcosts of navigation lights and beacons have not been included, as they will be borne by the Ministry of Transport and Shipping;
(h) all funds to be onlent by the GOM to STO/FPID at an interest rate of 13.0 percent per annum, and a repayment oeriod of 20 years, including five years of grace, with GOM bearing the foreign exchange risk; and
(i) of the five technical assistance components, only the one to be borne by STO/FPID directly, detailed design and construction supervisionof the plant, has been included in the calculations.
C. Assumptions for Economic Analysis
4. The economic analysis for the project is based on incremental costs and benefits, i.e., with and without project analysis. The incrementalcosts and benefits are as shown in Annex 6.14. The assumptionson which the economic analysis was based are as follows:
(a) costs of the port facilities are included in the calculations;
(b) it was assumed that, for most items, financialprices reflect their opportunitycost to the economy. This is because most of the goods and services will be imported directly by STO free of duties and taxes, and also since the Rufia is a freely traded currency. The only items for which shadow prices were used are fuel and wages for unskilled labor. By eliminatingtransfer costs (e.g., duties) and financial costs (e.g., costs for opening letters of credit) from recent CIF prices in Male, the economic price for fuel was calculated to be Rf 2.8 per liter (Annex 6.10). A shadow wage rate was used for unskilled labor such as deck-hands (at 80 percent of the financialwage rates) in considerationof general underemploymentin the project area, but no shadow wage rates were applied to other, more skilled types of labor, due to the acute scarcity of skilled and semi-skilledlabor in the Maldives; - 90 - ANNEX 6.1 Page 3 of 3
(c) the operationalcosts of the refrigerationplant and collector vessels were calculated by using eccnomic prices (Annexes 6.12 and 6.13);
(d) the economic analysis takes into account the costs and benefits of the newest mother vessel currently operating in the project area, which would be relocated to another site in Maldives immediately after completion of the freezing and storage complex. It is assumed to be ctpable of freezing 2,000 tons of tuna per year, while its operating cost would be Rf 4.75 million per year (at US$250 per ton). The relocatedmother vessel is assumed to be in operation until fiscal 1997/98;
(e) costu for fishing and production of Maldive Fish by the fishermen were derived from the boat model at economic prices (Annex 6.11); and
(f) the price for Maldive fish was assumed to be Rf 20,600 per ton (on a product basis) based on recent export prices to Sri Lanka.
D. AssumiDtionsfor a Boat Model
5. A boat model was prepared, in order to assess the impact of the project on fishermen operating in the project area and their families (Annex 6.3). The output of fresh tuna as well as the inputs in labor, maintenance costs, etc. are consistentwith the figures used for the calculation of FRR and ERR. Prices used are those received and paid by fishermen at the time of appraisal. The model also assumes that boats will be rented from a boat owner who gets 50 percent of revenue net of operating costs, which is the system of operationspredominant in most parts of the country. As for labor, it is assumed that 8.6 worker days will be used for fishing per boat trip (one trip a day), and 6.0 worker days per ton (fresh fish basis) for production of Maldive Fish. ANNEX 6.2 - 91 - Page 1 of 4
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
l69JL LIFE. 0EEIATION COMiT AM REPtACEMT SOCI.L OF PLANT (Of .000)
Useful Life in Year&
Oe cription Coste 2 5 10 20
RERIGERATXONPLANT COMLEX
Freejingand Cold Storaeg Equipment
Equipme Inside Proceeing Area ChiIl/Fre-ae Tenke(ox evap) 2666 2666 Brine Buffer Tank. 1107 1107 Mobile High Preseure Cleanr 16l 161 Fish asahing A Anc I Equip 173 173 Brine Carge 69 69 Elevated Wenkway BtOn Tanks 196 196 Racks for Air Bleat 624 624
$3-TOTAL 4996
RefrigerationPlant Lw/MHigh StageScr e Cocfwr 4672 4872 SeawaterCooled Canden-ore 3181 3811 Intero_d iste Cooler a18 (le ore surge druaeheuape 818 Stainlee Steel Channelplete 1286 Evaporators or coils 1286 Forced-draft Ai rcorlera for 0 Chill, Ice and Cold Store 1014 Block Ice Plant (incl 4omre 2076 2076 & ecceeaori a) Control Panel and Automatics 961 961 Pipes a Inauletion Pipes etc 1101 1101
SUB-TOTAL 1501
Thcrml Ineuletion of Rtfrigereed Door. Ineulation Panels 2549 2S49 Flood Insulation (ea Chl l) 764 84 InauIted Sliding Oor 127 IV Ineuleted Hined Door. 81 61 Air-lockewith Strip Curtein 124 124 Outer Wall Protection 143 143 Ait-rolie Valvee 12 12
A.TUVAL 8620 ANNEX 6.2 - 92 - Page 2 of 4
REPUBLIC OF MALDIVES
THIRD F'ISHERIES PROJECT
USERL LIFE, DER8CIATtCN COSTSMD REPLACErNTSaCDULEES OF PiAr (Cont)
(Mf .000)
UnRful iJf. in years
Boas Damee.ptson Coeta 2 5 10 20
REICERATION PLANT(cont)
Ventdiation of Engine Reoom
Refrigeration Engine Raoo 550 SSO Power Plant Room 41 4S6 Air-con, for Control Room III 111
SU8-TOTAL 1117
Mi sce I I snos Eu i p_nt Office Equipment 501 501 Workshop Tools and Equipsont 1654 1654 CaMPrdamd-air Plant 391 391 Telephone A Wirelase Systems 150 1SO Incineretor 251 251 Th'rA-am ita A Safety Equip 100 100
SUB-TOTAL 3047
TRAN6PWTATSONAND OTHERCOSTS
Tranaport snd Installation 11266 11266 Initial Charge of Ansonia 377 377
SUe-TOTAL 11643
Buildingsand Amocieted Works
Procesming Area 28141 25141 Engine Room 7066 70S6 Forklift Leading Area 260 260
SU-TOTAL 32439
Refrigeration CamplexTotal 71943 0 2600 13S4 66995 ANNEX 6.2 -93 - Page 3 of 4
REPUBLIC OF IALDIVES
THIRD FISHERIES PROJECT
ULSER LIFE,DPECIATION COSTSAM REPLACEmmTSOHxB OF PLANT(Cont)
(MR .000)
Uaefil Lif- in Years Base Oacritipt.n Coats 2 5 10 20
MISCELWLAO EWtIfMENTFCR OPERATIONAL SUPPORT
Jetty Equipmefnt
Fied Hlydrlc CranthPlinth 1187 1187 Ancillary Lifting Equip 121 121 Heavy Duty Sale. 463 463 tSW Tank/Subsergible Pump 201 201 HFa1.Ropo,Wirs,Tool- etc 25 26
SU*-TOTAL 1997
Transportation Equipment
Diesel Forklift Truck 624 624 Oie- I Flift, Rotating Fork 774 774 ElectFl ift A Charger 392 392 Elect Flift, RotatingFork 926 25 0/head Cantry Crane (colpi) 150 1509 Pure.. Bui It Fish Cantre 10559 10559 Tractors,Trai lre 1157 1157
SUB-TOTAL 15941
Power Plant and Distribution
Cempi Generator Setm(50OkVa) 2909 2909 Cepl Caen#ertor Sets(30fkVa) 3S0 330 Fuol TransferSystem 111 I1I Eahouat Systaa(inel chimney) 238 236 Coolong Water SyJt- 519 51S (inmd outdoor *ir-cooler) 0/headGantry Crone (coepl) 448 448 Main Panel,Synchronizing 286 980 Equipmnt A Sub-panela
Internal Cabling A Lighte 2486 2465 ExternalDist A Lighte 1157 1157 Cathotic Protection of Sheet 388 W3 Pile" (nel rectifier) _ 94 - ANNEX6.2 Page 4 of 4
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
HISC±AEWB EWPIPt FPrROPERATIONAL SUPOiT (continued)
DO.alinatCion Plant and Water System
DOsalination Units la08 1308 OClorination Plant, Sand- 624 624 filters and Chemical Treat Dist of Sea,Fru hYell Water 861 861 Diesel Pup for Firefigliting 201 201
SUB-TOTAL 2994
RNrTLAE ND EWuIPNr Office Furnituro 119 119 Houe. £ "7h"- S96 S96
713
Totel Mic.Eq. for Op.Supp. 31191 146 4276 9704 17066
COuLLTORAN) wORKVOSsELS
Collectors, Tug 346S7 34657
SUB-TOTAL _ 0 0 0 34687
OFFICE, WOKSHOP,HOUSINa 13317 13317
OV2tALL TOTAL 187791
TOTALSFOR REPUAC8OETS 187791 148 6878 11038 133049
DReATION 9204.28 73 1378 1103.8 6632.48
_eee meee _ _ _ ANNEX 7.' - 95 - MALDIVES- THIRD FISHERIES PROJECr
BOAT MODEL
ltAT "lm (FINCL. PRIC5) ------i -inancialFuant Valu (Rf'000) ----- Unit Unit Cost Preent Without Without With Present Without Without With (and yr- Project Project Project Project Project Project I to S) (4th to Cath yr (4th to (Sth yr& 7th yr.) onwards) 7th yr-) cowards)
Fliehing trips pr year No. of - 115.8 51.7 89.7 147.5
Total catch of which sold to Sr0 tome 2075.0 85.0 17.6 0.0 89.2 184.9 88.5 0.0 185.0 (as fresh fitth)
of which processd and tons 2000.0 10.8 16.2 21.1 9.8 21.1 32.4 42.3 19.1 sold ma elidive fi4h
of which family con- toni - 5.4 5.4 5.4 5.1 - - - - sumption and distribution
Tot I tons 81.0 89.2 26.5 103.8 156.0 88.9 42.3 204.1
Input Costs Fuel for boats littr 4.05 3707.0 178.6 1271.5 8865.8 15.0 7.6 5.1 22.9
Engine repair, mintenance amount - - - _ _ 18.2 8.2 5.6 20.6
Vesel repsir, _intenance aount - - - - _ 7.8 8.9 2.6 9.7
Fuelsood for Moldiv* fish tons 100.0 10.6 18.2 21.1 9.6 1.1 1.6 2.1 1.0
Totsl s9.9 21.8 15.4 54.2
Rental to boat owner amount 58.6 24.6 14. 75.4
Returns to fieherwn amunt 57.5 28.0 12.4 74.5 (par boat)
Labor :l hing morker/de. 996.8 504.9 S41.7 1268.9 Maldive Fish Production worker/day 88.4 97.2 12ti.8 57.8 Total worker/day 1059.6 602.1 488.8 1I28.2
Daily Returan to Labor Rf/day 54.8 88.2 26.4 56.2 (per woriker) Annual Tuns Incoms Rf/year 6290.8 2248.6 1048.1 6288.7 (per worker) Percens vo Change in Inca" t -64t S 2A (compare" to the present cas)
Fuel cconuaption per trip: 82.0 liters at presnt ond without project 38.4 liters with project Purchase price of engine 81000.0 Pf Purchase prle, of vessel 76000.0 ft
____-____-.--_------Present Case------jt------Island iNo.of Av.Cetch No. of Total No. of A..Cstoh No.of Total last per Day Days Catch lats por Os, Osy. Catch (kg) (kg) (kg) (kr) ------~------
1. iClaf 6 700 100 5e60000 10 735 140 1.029.000 2. WilIl ng Pa-s 27 740 130 2,997.000 82 m 18o 4.484.000 8. Ila1. Ohasdiho. OIsewntdh 24 880 120 1,958.400 25 710 160 2.640.000 4. Nodey, asaf. "hsdul"d i 500 70 385.000 12 828 110 698.000 S. Tiady 30 750 168 8,712.800 81 780 165 3.68.250 S. lhdsawli. Nodsydh 9 700 150 945.000 10 700 150 1.050.000 T. W dlls. ftsfnf. Plyorl Neatshode. Fares 19 60 so 570.000 22 80 110 1.8 24.600 S. V"eadl a edhoo 14 520 50 3S4.000 15 540 110 691.000
Total Wsighte A*vrage, 142 66.2 118.6 11.491.900 157 690.5 147.5 16.327.850
In ton: 11,492 in tons: 1.82 ANNEX7.2 - 96 -
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Annual Operating Costs of Fleet
(FINACIAL PRICES)
Quentity Bee. Cost. (Rf'OOO)
Unit Yr * 5 6 7- Cost YV 4 5 6 7- I?JTS ANDCONSUMA8LES Hi7 cngmineKalX Now Collct' it/ ,0001 207.4 233.3 259.2 259.2 4.05 839.8 944.8 1049.8 1049.8 Old Colleco.a lb,' 0001 245.8 276.5 207.2 307.2 4.08 998.3 1119.7 1244.2 :-44.2 Tug SW0W 2/ .0001 50.t0i 3. 62.5 62.5 4.05 202.5 227.8 253.1 253.1 AuxiliaryEngine Fu*l New Collectors Sa/ 0001 545.6 388.8 432.0 432.0 4.05 1399.7 1574.6 1749.6 1749.6 Old Collector, S3l/ .0001 422.4 478.2 828.0 528.0 4.05 1710.7 1924.8 2138.4 2138.4 Lubricating Oil 4/ Collector, Sup 5.6 6.3 7.0 7.0 6.0 33.6 37.8 42.0 42.0 Tug Sum 0.8 0.9 1.0 1.0 6.0 4.8 5.4 6.0 6.0 ICe 5/ ,000o 6.7 7.6 8.4 8.4 0.0 0.0 0.0 0.0 0.0 Repsirakeintsnance NowCollector. 6/ Sum 2.4 2.7 3.0 3.0 877.3 908.4 1018.6 1131.8 1181.8 Old Collector 7/ Sum 3.2 3.6 4.0 4.0 870.6 1188.0 1334.8 1482.5 1482.8 Tug 7/ Sum 0. 0.9 1.0 1.0 831.5 265.2 298.3 331.5 331.5 ------StE-TOTAL- VARIABLECOSTS 7843.0 8488.9 9428.8 9428.8
SALARIS Fleet manager H-Y 1 1 1 1 241 241.4 241.4 241.4 241.4 Captains 6/ N-Y 9 9 9 9 S0 270.0 270.0 270.0 270.0 First Officere 9/ N-Y 8 8 8 8 18 144.0 144.0 144.0 144.0 Englneers N-Y 9 9 9 9 24 216.0 216.0 216.0 216.0 Tally Clerks Y-Y 14 14 14 14 18 252.0 252.0 252.0 252.0 Deck Hends10/ - soS0 0 6 S0 15 750.0 750.0 760.0 750.0 Cooke M-Y 7 7 7 7 18 126.0 126.0 126.0 126.0 Radio Operators N-Y 2 2 2 2 24 48.0 48.0 48.0 48.0 mechanics N-Y 2 2 2 2 24 48.0 48.0 48.0 48.0 Food, Al lo ate. it-Y 102 102 102 102 8 816.0 816.0 el6.0 616.0 ------S6-TOTAL- VARIABLECOSTS 2911.4 2911.4 2911.4 2911.4
TOTALOPtATJiO COSTSOF FLEET 10454.5 11897.8 M.i0.2 12340.2
NOTES:1\. Beoed oan150 days per year, 12 houre per day end48 litersper hour. lb\. Baeed on 100 days per yeur. 16 hours per day and 48 litero per hour. 2. haead on 25 houra*a eek for 50 seeks a yeors at 60 litrespae hour. SC%. basedon 300 days per year.24 houro per day and 20 lit re per hour. Sba. Beed an 275 deys per year. 24 houre per dey end 20 liters per hour. 4. 500 literspef er elI, at HRf12 per it er. 5. Cost of block ice heo been included in tho operatingcoete of the plant. 6. 55 of capitalcost (I 760.000) T. Appraisal*timtee. S. One per collector vessl plus the tug and one relief. 9. Not for tug. 10. Six per collector plus relief and two for tug. ANNEX7.3 - 97 -
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Annual Operating Costs of Freezing/Cold Storage Plant
(FrNANCL PrRics)
Quantity S o 4e COsta (,O 000)
-______-t __ Unit Unit Ye 4 6 -.. Ceet Ye 4 5 6-
INNUS ANDCONSUaA8LES
Power~plant Fuel I/ ,0001 1076.2 1o4.6 134.0 4.05 4854.6 4898.9 5448.2 Lubricant. Se 203.3 228.7 254.1 poseabCA,umabla, sue 2o03.3 228.7 254.1
Rfrigeeratiot Plant Lubricants Sue 241.4 271.6 301.8 Sear. A Consu- 2/ sun 288.d 319.3 354.7 Sodium ChIoride Sue 203.3S 28.7 254.1
Other CEqupicna Spres A Coneua Fl Sue 224.5 252.6 260.6 Spres A CAnaue 3/ SuN 54.8 404.8 485.3
SIA-TOTAL- VARTA&EaCSC S 6078.5 68W8.3 7598.2
STFF ANDLABOIR
Eapatri ate managing ODrector N-Y 1 1 t 107 1207.2 1207.2 1207.2 Plant Manager NY I 1 1 9e6 6,6a 986.6 965.e Chief Accountant -VY I 1 1 724 724.8 724.3 724.3 Technical & Supvr -Vy 8 6 6 541 1448.6 1446.6 1448.8 lNtionale bnogae"At/Sne Ads M.Y 2 2 2 114 22.0 92.0 226.0 skilled workers -VY 11 11 11 24 264.0 264.0 264.0 Somi-skilIld Wrkr *-Y M6 as 6 20 1100.0 1100.0 1100.0 maIIlled Workere N-Y go 0o so 15 40.0 .09o e.00o0 food. Allra. .0c.4/ *-Y 137 7? 197 a 1157.7 117.? 11R7.7
14TAMIXCOSI"
Office A Sutdry ESp Sue 1000.0 1000.0 1000.0
S61-TOTAL- FPI) M,Tn 6998.6 6996.6
TMtAL - =CsTs OPON Sam c l rV1074.2 15634.0 168.6
D 1. 4.8 mliIon Koh per ypgr uaing 0.28 l erah. 2. Including overhmul of th, refrigeration plans. 8. Mainteance of el*ctreal and water suply syste ls ti ni trgnde," rt quiwnt con hebl-n foal chlorination and chemical treatmt of coodeecre. 4. U*8 70 per manth po, aprloyp. Nepubl3c of bhUswe.
Third Fimheries Project - rrojected Profit eDZ Loe Acount
Rf oilIion
1992 1993 1994 199s 1996 F997I? 19 19"9 2000 20o0 2002 2003 2004 2006 2006 200 z0 2000 2010 |,______~~~~~~~~~~~~~~~~~~~~~~~~~ __------_------__------_------. ------__ rTOAL 310E RW 65 0 0 0 9l 126 149 1N 184 171 187 194 2D1 204 216 224 232 241 250 259 car w sa letri,eetIom Plant. ae. 0 0 0 17 19 21 22 2S 24 24 25 26 27 26 29 30 32 35 34 Phec5e dO Fish 0 0 0 23 32 s7 39 39 40 42 43 45 47 48 s0 52 S4 S6 SS DepreciaSion of Phb. . 0 0 0 9 9 9 C. 9 9 9 9 9 9 9 9 9 9 I 9 CoDlI_or V_rl aeI. 0 0 0 12 13 13 is 16 17 17 1i 19 19 20 21 21 22 23 24
TFAL CMff OF SUM 0 0 0 66 74 82 6s 87 s 9 92 os 99 102 1os 109 116 117 121 12
1 R T 0 0 0 25 82 67 74 78 SI 95 96 102 106 111 11s 120 125 129 1i6
M&D 4 cum. aEr 0 0 0 1 1 2 S s 5 a a 3 S 3 3 4 4 4 4
N =INXDr T sA 0 o 0 o 4 51 a4 71 73 78 92 95 99 l1s 107 212 116 121 12 131
iWU61WAT334All O COSTS 2 a 4 6 a 7 9 9 10 12 12 12 is 1S 14 14 IS IS 16s
FM IS NIa CM 0 0 0 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2
OSE-TOAL 2 0 4 7 7 9 0o 11 11 13 13 14 14 15 16 16 17 17 is
NO M A BMW wDR 1PAe r -2 - -4 17 44 ss 1 6s 67 79 2 65 89 92 96 1O 104 1oo 113
LS1 D1EU T r ULWB 0 0 0 30 30 25 26 24 22 20 18 16 14 12 10 a 6 4 2
M WtIT (18OM) MEYNIWRXATIM -2 -3 -4 -13 14 2f 35 41 45 59 64 69 75 80 8s 92 96 104 Ill
LS N WM Of PX (S6U 0 a 0 0 7 14 17 20 23 29 32 35 37 40 43 46 49 52 55
9AWAL -2 -4 -4 -IS 7 14 17 20 2S 29 32 35 37 40 43 46 49 52 55
lI A EKATEDlRTJA1M 0 -2 -5 -10 -22 -15 -2 le 36 59 88 10 155 .92 232 275 322 371 423
A . M AF SS APR A WATI nU -2 -5 -10 -22 -15 -2 16 36 59 as 120 15 192 232 275 322 871 423 47t
4 -5S------as
lepuliC af Ihidivet
Third Fishteles Project - wjted Balaeu seet
Rf oil ioni
m 192 1904 1995 19O 197 1906 1ie 200 2001 2006 2004 205 2004 2007 200 2M 201 FDM ASSS 7 55 172 210 201 102 1I3 181 172 163 14 145 15 144 15 126 117 weS 9
laveeto.Se.JR.celwebles 14 12 10 20 SD 60 62 64 as Go 70 72 74 76 78 0o 82 64 86 C_mb 14 13 10 10 11 28 39 45 61 as 111 13 151 164 IM 260 302 347 395 S bota go 25 20 as 61 as 101 109 1 154 1e1 211 225 260 20 340 364 431 461 CL0MW LUPaIfI Low Repayabe 0. 0 0 0 0 i5 15 is is i5s 5 15i5 i5 15 1s 15 15 is GM Metofprofit 0 a 0 0 7 14 17 20 23 29 32 35 37 Le Interet 40 43 48 44 52 E6 Payble 0 0 0 30 aO 28 26 24 22 20 18 le 14 12 10 a 8 4 2 Sekotl 0 0 0 O 37 Sr so so s0 4 65 s66 67 so 09 70 6On 12 ox CAPITAL CA-CA) 20 25 20 a 24 31 48 so 67 s0 116 145 159 193 230 2n 314 360 404 NU ASSEYS (F/A*/c) 3a so 192 216 225 03 2s 231 2ss 253 270 29D 312 337 365 397 431 466 50w &.ESS:THM F1 U LOW 7 35 172 210 210 195 1e0 165 150 1 120 105 90 75 S6 45 30 15 0 TOTAL 26 26 20 8 15 20 48 6s 80 1le 150 Las m 262 305 352 401 433 50S
CwsU1ibated Capital 30 so 30 30 aD 30 so 30 s0 30 30 30 30 so Accum.ProlliAoss 30 30 30 30 30 -2 -5 -10 -2M -15 -2 1s 36 50 as 120 155 192 232 275 322 3 423 476 TOTAL 20 25 20 a 1i 28 46 66 so 11i 1I0 18 m2 262 305 352 401 453 5s
______~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- , ______~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~(I gtepubIlc of KaIdic.e
Third Fisheriea Project - Projected Incr wntal Cash Flow to FPIM
Rf million
1992 1993 1994 1995 1996 1997 1998 1"99 2l10 2001 2002 2003 2004 2005 2006 2007 2008 2001 2C10
TAffAL CASHDfLOiS
OD 4IAN l(ADD SQ 0 0 0 9 9 9 9 9 9 9 9 9 9 9 9 q q 9 9 oIf fIT" (m8m Ab RPRIATIG4 -2 -3 -4 -13 14 28 35 41 45 59 64 69 'r 80 86 92 93 104 111 U-TE LLOAN 7 48 117 8 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 IT-TEiIM LO6N 0 0 0 10 11 13 L3 14 14 15 15 18 16 17 18 1i 19 20 20 (U-TOTAL) 5 45 113 14 34 S0 57. S3 58 83 a8 94 100 106 113 119 126 133 140
DCfLCSH OUTLOS
M_ntI * EPAE 7 48 117 8 0 0 0 4 0 0 0 0 14 0 0 0 0 0 0 LSEN amS a OtlF fOFT(S 0 0 0 0 7 1 17 20 23 29 32 a5 37 40 43 4 49 62 5S Lm-T4 Lem 0 0 0 0 15 15 1 5 15 15 15 15 15 15 is i5 is 1S MMR-To" n 6\. 0 0 0 11 13 14 16 15 16 17 17 18 18 19 20 20 21 22 23 p-TOUTAL) 7 45 117 20 20 44 40 55 54 62 65 68 85 75 78 82 86 90 94
H CASKDIW -2 -S -4 -5 14 6 9 a 14 21 24 25 15 32 34 37 40 43 47
------
%e Awe.d to ceove funds necesary to eoveroperation coets of the fleet and plant, acs*-I ea coste of purcehsing fresh tun. for two months. Tle leterent rate io assumed to be 12 percent per year; the term is one year.
0' RmmLIC OF WTVES Tm1RDFSHERIE DEVE UET PROJECr FinancialRate of Return Rf'000
1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 l6 17 18 19 20
Year: 192 1993 1994 1995 199 97 1998 1999 2o0 2001 2002 2003 t4 2005 2006 2007 2008 2009 2010 2011
Expowt Price of Frozan Tuna 7,797 8,C48 8,300 8,551 8,803 8.803 8,803 9,306 9,306 9,93O 9,308 9,30 9,306 9,306 9,306 9,30 9,306 9,306 Amnt of Export ('000 tone) 11.2 12.6 14.0 14.0 14.0 14.0 14.0 14.0 14.0 Z. 0 14.0 14.0 14.0 14.0 14.0 14.0 14.0 Orta Revenue from aport. 90,136 104,574 119,714 123,235 123,925 123,235 13O,27 130,277 1u,277 130,277 130,277 130,277 130.277 130.277 130,277 130277 130.277
Coat. ot Fresh T,it Purchasa 23,990 26,962 29,930 29,904 29,050 29,050 30,710 29,050 29.050 29.050 29,050 29.050 29.050 29,050 29,050 29.050 29.050
Operating Cuat.: Seflin and ODitributlon Coat 1/ 1,352 1,569 1,796 1,849 14649 189 1,954 1,954 1,954 1,954 1,954 1,954 1,954 1,954 1.93' 1,954 1,94 Operation ot the Plant 15,074 15,834 16,694 16,594 18,594 16,594 16.594 16,594 16,594 18,694 18.694 16,694 16,594 1,594 16,594 16 394 16.594 Operation of Collector bln- 10.455 11,97 12,340 12,340 12.340 12,840 12,340 12,340 12,340 12,AO 12,3sS 12,340 12.340 12,340 12,340 12,340 12.340 Maintenance of the Fort. 1uildins 2/ 1.381 1,381 1,381 1,381 1,381 1,381 1.381 1,381 1,381 1, 11 I S381 1,381 1,381 1,381 1.381 1,381 1.361 Total Operating Cost. 28,262 30,181 32,111 32,164 32,164 t2,164 32,269 32,269 32,269 32,259 32,249 32,269 32.269 32.269 32.269 32,269 32,269 ------0
Returns Net of Operating 0 0 0 37,886 47,431 57,673 61,167 62,021 62,021 67,298 68,958 68.968 68,938 68,958 68,938a9 68,98 68,95a 68,e681 68,958
Investmant and Replacement Coat. Design, Sun. for PNItt 6,580 2,708 2,708 2,464 Freezing/Storage Plant 25,404 58,297 1,187 0 0 0 2.600 0 0 0 0 3,934 0 0 0 0 2.600 0 0 Office, Housing, UorltU 2,68 10,653 Supply ot risc. eqipowtt 16,S98 16,524 4,004 146 0 146 4.278 146 0 148 0 14,125 0 146 0 146 4,275 146 0 oat & Nwgsatilma ;Ida 0 54,167 105 0 0 0 0 0 0 0 0. 0 0 0 0 0 0 0 0 TATraIning for V -esee 1,006 377 463 Total Inv. A Rep. Costs 6,50 48,179 11,218 8,233 148 0 146 6,875 148 0 146 0 18,069 0 146 0 146 8,875 148 0
NIERSC C6.SbO) (48,17EU(117,258) 29,688 47,285 67,673 61,021 55,148 61,875 67,298 68,812 68,958 60,699 68,958 68,812 68,958 86.92 W2.0=3 68,812 68,958
Rate f Retrn an Total Capital Eloyed: 27 2
1/ Teem at 1.9 of rownmom. 2/ Tzvee at2 of investeet cost. MUSIS- Mm PiU iU im: GM's DIn M.t CAIMn MMtt 126 Tt tS(U6 '000)
C.lemd.r Vor U a 04 a 0 6?7 98 04 O0 01 02 Os 04 as as 02 lememt1s CshR tfm
Fort .s. % I8.4 7A.4 tifftis. V*hoa. t_lmlisg 106.0 440.4 Oe igatialn Ald (Covital Coet)%a 42.0 Useeiaslmel Ald (Racarrest Cos.) 18.6 14.5 18.0 15.6 15.7 17.7 16.7 19.7 208 22.0 28.3 24.6 2.6 Aml eta.c to A\h 72.2 88.8 7.r 0.0 0.0 Seportf lese Lose Fe" li 235.6 (St-Totl GM. lJp.) 235.6 1724.6 MW.0 2n.2 14.8 15.0 15.8 16.7 17.7 16.7 19.7 2D.0 22.0 23.3 24.6 25.
LoaN i. . (by CA4) MA1Crdit lid Principl- 200.0 200.0 200.0 200.0 2D0.0 200.0 Sereice Carge (7, 1) 11.0 11.0 11.0 11.0 11.0 11.01 1.0 11.0 11.0 11.0 11.0 0. 10.4 4.7 C.0 6.1 .nIce Cahre. aV, 2) 28.8 2.6 28.8 25.8 26.6 28.6 5.6 28.6 28.6 25.6 26.0 26.9 25.3 23.8 21.0 Seic,. Charge (VP 3) 25.2 28.2 25.2 25.2 25.2 25.2 25.2 22.2 28.2 28.2 24.7 28.7 22.3 20D. 18.8 6wvie Char" (VP 4) 8.7 5.? 5.7 5.7 8.7 5.7 5.7 8.7 5.7 5.6 8.4 8.0 4.6 4.2 Srortfieee (Norwa) Loan 523. 823.6 528.6 s82.6 823.6 823. s23.6 S23.6 2A.6 523.6 Bn (Seed.) Los %f 288.0 258.0 288.0 255.0 288.0 235.0 255.0 258.0 __F Cr"it ug Primmpal 93.3 It.7 164.7 16.7 166.7 166.7 Soreice Chorg. (VY 2) La.1 13.1 12.1 13.1 13.1 13.1 13. 13.11 13 1 13.1 12.9 12.3 12.2 9.9 6.8 ibric. Clmre. Ctr 3) 23.0 23.0 23.0 23.0 23.0 23.0 23.0 23.0 23. 22.0 21.5 19.7 17.7 18., Sw,ic Chargbe(r 4) 5.4 3.4 E.4 3.4 2.4 3.4 3.4 3.4 3.4 3.3 3.0 2.6 2.2 OPECPs"d Loss %h Priocipal 216.7 216.7 216.7 216.7 216.7 216.7 216.7 218.7 linerest (7r 3) 87.5 57.8 57.5 87.5 57.5 87.8 57.5 71.5 68.0 86.8 82.0 43.5 39.0 n2.6 (Sub-T@tal Loie) 11.0 77.4 164.2 641.2 891.2 691.2 946.2 94.2 1182.9 1176.9 1483.7 1s.5 1537.3 1000.2 730.0 71.9.
cToeel Cast w is) 248.6 1U25 1466.2 712.4 0.7 706.2 962.1 983.0 12e0.6 1195.5 1483.4 186. 4 1659.3 1023.4 754.8 739.8 0 _ -_------Tlcrmostal Ceeb lot io V1t 1% from FID 2, 695.8 139.7 169.9 1088.1 2288.3 282.7 8S6. 9 3479.1 367n.9 3976.1 4214.4 4572.6 Cstse.ebte frt,01 I lmport U 81.2 77.o 84.1 67.6 0.e9 94.2 97.7 101.3 10S I 109.0 113.0 117.2 In2. i_ Stbrer. (hi FWD)V' Prlncipal 1559.8 155.5 1528.5 155.8 1828.8 1828.s 1826.5 U28.5 1820.8 1825.8 152.a steet 26o.6 2960. 296.8 2781.9 2083.2 2354.5 218u.6 197.1 173.4 1.69.7 1291.0 1192.2 99a.6 (sh-Totel Lose) 0.0 0.0 0.0 260.6 2900.6 4509.1 45O. 1 4510.4 4211.7 3913.0 3714.3 3815.6 3316.9 3118.2 2419.8 2720. _,_ ------_ - - - _ ------~~~------,tal Cod Wtlo) 0.0 0.0 0.0 50o1.6 3754.2 5965.3 628.6 636s.4 6402.2 8893.4 896.5 7099N. 71.0.6 7207.2 7311.0 7414.6 _~~~~~~~~~~ ------_-- _------_-_------Oat C&A Flom (SNinal Tern) -148.6 -1602.8 -14U.2 2319.4 3048.5 8279.1 6324.6 584.4 8311.7 8697.0 8813.1 S830.4 6544.8 6183.4 634.4 6878.0
fietlon lide 2,1 1O.t7 1.078 1.118 1.1e 1.199 1.244 1.290 1.837 1.357 1.436 1.491 1.846 1.60 1.6631 1. 4 1. 763 _____------_- _--_ -- _--_ __----_ --- ~~~~~~~~------. ------_ ------ho Cas Ios (Reel Term) -287. -1678.2 -1252.7 200.6 242.1 4245.1 4226.8 4087.7 86.2 392.1 3606.3 876.1 8467.8 3716.4 8601.6 3732.4 _ _ _ _ ~~~~~~~~~~~~~~~~~~~~~~~~~------__-_------.------__- _-- - - -
. Paql. of as cot of sort, office si -e ids to he ttlsocd by GM .. 006 %r Go to ounerst w U11 of the cost. wed MA %e rest (ll4edifti All c_mttbst). 2,c Rssrdls tie tee related too tehpWtfie ices. It Is re.AmW.dhere ocahtie cometies a scarite Vsw(ht 1S38.8O0 eqemelstS). ast bhs fee (0.2 of the lIo W-t) and go sct of pocket osooe", of 1.6330,000suival nt. Teefiorro awe bsen anthes tim - dretf tao agr t betOO. EkOWWfi08 WA - detd October 10. 1992, _A a ltter from g_eportfse dated 4/2811991. Ah,t 1.8612.0 200 i,0lSiof the los., hose.,. gill be esed to cer. a part of time ecwrity foe. %d NA CredIt sasseed to he lent. to M ast istsr.t (Cml 0.786 service chare.), .. , 40 ymars Wth 10 Jer Of GreC. after los ei.owrar. %. *eworttls lose aeostls to ii6tt7 millios. wit* itereet tinanced btJa* ORt r at. Repapay over 10 Yer*. to start 68 nthe sf1, time Ca1 01iUdtion Date (07o01/16I9%) 2f M3M 1ce to cr.r 688 of 6t42.4 million (o131U 0 sillice), wIth mm loteres. drepyal. or 6 erer. witt. the first asyment a". 2.86ears after tme otart-up of tme Plest- j iW creit esond to e lest to Ci *1 term identical to IP (0.7 serice cherg., see 40 smre. .it 10 reare of arre costtd freesthe dete of lose sismate -_ * OM0 tmmd lose to oo last WIO ata 2.253 interet. sar 17 J_rs Includins 8 your. ? arac aft., fisl diebernemset. ; Mi of F s se"t profit esumd to he tromet.rred to CON. Uj CeO_ daiy es oil st 10 oatCt? price ( _sssedto tb 138300 pet tea). t,t 1i asmmed twae at woeld onlte to WiD ieo twAd swl for te ceolsa (IscI. w,or le. e1i, etC.) and TA fo deeigs WA coserectio Supereaon of time plant. CAi sI_diee le *°M segImedto tb dm at, US iatneret. msr 20 #eare ieeledi>s 6 *,r Of 5Sense lnterest durins cowetrecte is cpitellazed. eased im meata projected by Ui lime Imit Vsle tod. of ftsfustvris LeperaEp to L0 mork,- frem f.. i.e detriblized coeutries. - 103 -
ANNEX 8.1
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Projected Economic Price of Marine Diesel Oil
(1991 Currency Values)
Unit\a 1992 1993 1994 1995-
Export Price\a USS/ton 271.6 245.7 256.5 265.1 (FOB Singapore)
Freight and Insurance USS/ton 40.7 40.6 40.7 40.7
CIF Price (US) US$/ton 312.3 286.3 297.1 305.8
CIF Price (Rf)\b Rf/liter 2.6 2.4 2.5 2.6
Handling and Distribution Rf/liter 0.2 0.2 0.2 0.2 (to retail level)
Economic Retail Price Rf/liter 2.8 2.6 2.7 2.8
(Financial Retail Price\c) Rf/liter 4.05 4.05 4.06 4.05
\e Based on p-trolous price projections by the International Economic. Department, the World Bank. Fuel coefficient of 7011 wa used to convert crude oil price to mrine oil price. \b Echango rate: U5uRIf 10.06 \. Price at appraisel, effective February 20, 1991. - 104 - ANNEX 8.2
BOAT MODEL(EC0IIC PRICES) - Qu.ntitiem -c-- - Eonomic Value (Rf 000)------Unit Unit Coat Present Without Without With Present Without Without With (Economic (and yre Project Project Project (and yre Project Project Project Prices) I to 8) (4th to (8th yr A I to 3) (4th to (8th yr A 7th yrs) onwards) 7th yr-) onwards)
Fishing tripsper yoar No. of - 116.8 58.7 39.7 147.5
Totalcatch of which sold to ST0 tons 2075.0 66.0 17.6 0.0 89.2 134,9 36.5 0.0 185.0 (as fresh fi;h)
of which procesed and tons 2000.0 10.6 16.2 21.1 9.6 21.1 32.4 42.3 19.1 mold as Maldive fish
of whichfamily con- tons - 6.4 6.4 5.4 5.1 - - suaption and distribution
Total tons 81.0 89.2 26.6 10S 8 166.0 68.9 42.3 204.1
Input Coste Fuel for boats liter 2.80 3707.0 1878.6 1271.6 5666.8 10,4 6.3 3.6 16.9
Engine repair,m intensnce amount - - - - - 16,2 8,2 6.6 20.6
Ve ssl repair, maintenanceamount - - - - - 7.6 8.9 2.6 9.7
Fuelwood for Maldivefish tons 100.0 10.6 16.2 21.1 9.6 1.1 1.6 2.1 1.0
TotaI 36.2 18.9 13.8 47.1
Rental to boat owner smount 60.9 26.8 16.3 79.0
Returnsto fishersen amount 69.9 24.2 13.2 78.0 (per boat)
Labor Fishing worker/day 40 996.3 604.9 841.7 1268.9 39.9 20.2 13.7 60.8 Maldive Fish Production worker/day 40 68.4 97.2 126.8 67.3 2.6 3.9 6.1 2.3 Totel 1069.6 602.1 468.6 1326.2 42.4 24.1 18.7 53.0
Daily Returns to Labor Rf/day 66.6 40.2 28.1 6 .8 (per worker) Annual Tuna Incoin Rf/year 664S.6 S38.1 1116 5 8680.6 (per worker) Percentage Change in Incom 1 -641 -831 331 (compared to the preent cae)
Fuel consumption per trip: 32.0 liters* at prsesnt and without project 86.4 liter,with project Purchase price of engine 81000.0Rf Purchaseprlce of vessl 76000.0 Rf Shadowwage rate (in/day) 40 Rf (S01 of financial rate)
------Present Cas------VWith Project------Island No.ot Aw.Cetch No. of Total No. of Av.Cwtch ND.Of Total Boats per Day Days Catch Boat* per Day Days Catch (kg) (kg) (kg) (kg)
1. Nolamf 8 700 100 560.000 t0 736 140 1.029.000 2. Villing, Mass 27 740 1S0 2,997.000 82 776 180 4.484.000 S. Nilandh. Dhaadhoo.Ohvwsndh 24 680 120 1.956,400 26 710 160 2,840.000 4. Kodey. Csenaf, Khadulud 11 600 70 866.000 12 625 110 493.000 S. *inadu 30 760 166 3,712.,00 81 760 166 S3.6.250 6. Hdaveli. Hodeydh 9 700 160 945,000 10 700 160 1.060.000 . ndellg, hastafn. Ciyori. Nasthoda, Farse 19 Soo 6O 670,000 22 680 110 1.524,6O0 . Veodhee.ahadhoo 14 520 60 364.000 15 540 110 691.000
Toietol ightsd Avergag 142 668.2 116.8 11.491.900 1S7 690.6 147.6 16.327.e60
in tone: 1,492 in tons: is.26 - 105 - ANNEX8.3
(ECONOMIC PRIC:S) MALDIVES - THIRD FISHERIES PROJECT ANAJAL OPERATINGCOSTS OF FLEEr
Quantity Base Coats (Rf ,OJA) Unit Unit. Yr 4 5 6 7- Cost Yr 4 5 6 7- INPUTSAND CONSUMABLES Main Engine Fuel NewCollectore Is/ .0001 207.4 233.3 259.2 259.2 2.8 580.6 653.2 725.8 725.8 Old Collector- lb/ 0001 245.8 276.5 307.2 307.2 2.8 688.1 774.1 860.2 860.2 Tug 350 HP 2/ .0001 50.0 56.3 62.5 62.5 2.8 140.0 157.5 175.0 175.0 Auxiliary Engine Fuel Now Collectors Sa/ .0001 345.6 388.8 432.0 432.0 2.8 967.7 1088.6 1209.6 1209.6 Old Collectors 8b/ 0001 422.4 475.2 S28.0 528.0 2.8 1182.7 1330.6 1478.4 1478.4 Lubricating Oil 4/ Collectors Sue 5.6 6.3 7.0 7.0 6.0 33.6 37.8 42.0 42.0 Tug Sum 0.8 0.9 1.0 1.0 6.0 4.8 5.4 8.0 6.0 Ite 6/ OOOct 6.7 7.6 8.4 8.4 0.0 0.0 0.0 0.0 0.0 Repai rs,aintenance New Collectors 6/ Sum 2.4 2.7 3.0 3.0 377.3 905.4 1018.6 1131.8 1131.8 Old Collector. 7/ Sum 3.2 3.6 4.0 4.0 350.0 1120.0 1260.0 1400.0 1400.0 Tug 7/ Sum 0.8 0.9 1.0 1.0 313.0 250.4 281.7 313.0 318.0
SUB-TOTAL- VARIABLECOSTS 5873.3 6607.6 7341.7 7341.7
SALARIES Fleet Manager M-Y 1 1 1 1 228 228.0 228.0 228.0 228.0 Captains 8/ M-Y 9 9 9 9 30 270.0 270.0 270.0 270.0 First Officers 9/ M-Y 8 a 8 8 i 144.0 144.0 144.0 144.0 Engineers M-Y 9 9 9 9 24 216.0 216.0 216.0 216.0 Trlly Clerks M-Y 14 14 14 14 18 252.0 252.0 252.0 252.0 DcclkHands 10/ M-Y 50 50 50 60 12 600.0 600.0 600.0 600.0 Cooke M-Y 7 7 7 7 18 126.0 126.0 126.0 126.0 Radio Operators M-Y 2 2 2 2 24 48.0 48.0 48.0 48.0 Mechanics M-Y 2 2 2 2 24 48.0 48.0 48.0 48.0 Food, Al lows etc. M-Y 102 102 102 102 8 816.0 816.0 816.0 816.0
SUB-TOTAL- VARIABLECOSTS 2748.0 2748.0 2748.0 2748.0
TOTALOPERATINO COSTS OF FLEET 8821.3 93565. 10089.7 10089.7
NOTES:1la. Basedon 160 days per year, 12 hours per day and 48 liters por hour. lb\. Basedon 100 days per year. 16 houro per day and 48 liters per hour. 2. Basedon 25 hours a week for 50 weseksa years at 50 litres per hour. So\. Based on 300 days par year, 24 hours per day and 20 liters per hour. 3b\. Based on 275 days per year, 24 hours per day and 20 liters per hour. 4. 500 liters per vesel, at MRkf12 per liter. S. Coat of block ice has been included in the operating costa of the plant. 6. 56 of capitel cost (S 750,000) 7. Appraisal estimate. 8. One per collector veseeI plus the tug and one relif. 9. Not for tug. 10. Six per collector plus relief and too for tug. - 106 - ANNEX8.4
(ECONOMIC PRICES) MALDIVES - THIRD FISHERIES PROJECT ANNUAL OPERATINCCOSTS OF THE PLANT
Quantity Base Costs (Rf'OOO) Unit Unit Yr 4 5 6- Cost Yr 4 5 6-
INPUTS AND CONSIMIABLES
Power Plant Fuel 1/ 0001 1075.2 1209.6 1344.0 2.80 3010.6 3386.9 3763.2 Lubricants Sum 192.0 216.0 240.0 SperesaConsumables Sum 192.0 216.0 240.0
Refrigeration Plant Lubricants Sum 228.0 266.5 285.0 Sparre. A Consue 2/ Sum 268.0 301.5 835.0 Sodium Chloride Sum 192.0 216.0 240.0
Other Equipment Spares A Consum Fl Sum 212.0 238.5 265.0 Spares A Conaum 3/ Sue 844.0 387.0 430.0
SUB-TOTAL - VARIABLE COSTS 4638.6 5218.4 8798.2
STAFF AND LABOUR
Expatriate Managing Director M-Y 1 1 1 1140 1140.0 1140.0 1140.0 Plant Manager M-Y 1 1 1 912 912.0 912.0 912.0 Chief Accountant MNY 1 1 1 684 684.0 684.0 684.0 Technical & Supvr M-Y 6 6 6 228 1l68.0 1368.0 1868.0 Nationals Manageaent/Snr Adm M-Y 2 2 2 114 228.0 228.0 228.0 Skilled Workers M-Y 11 11 11 24 264.0 264.0 264.0 Sesi-skilled Wrkr N-Y 55 55 5S 20 1100.0 1100.0 1100.0 Unakilled Wrkr 4/ M-Y 60 60 60 12 720.0 720.0 720.0 Food, Allows etc.S/ M-Y 137 137 137 8 1096.0 1096.0 1096.0
MAXNTe4?E COSTS
Office A Sundry Exp Sum 1000.0 1000.0 1000.0
SUB-TOTAL - FIXED COSTS 8612.0 8S12.0 8512.0
TOTAL - COSTS OF ON SHORECOMPLEX 13150.6 13730.4 14810.2
NOTES: 1. 4.8 million Kwh per year using 0.28 1;trea/Kwh. 2. Including ovorhaul of the refrigeration plant. 3. Maintenance of electrical and water supply system, lifting and transport equipment. consumable for chlorination and chemical treatment of condeneors. 4. Shadow wage rats (80S of financial rats) used for unskilled labor. S. US6 70 per month per employee. 1AL08Y - TM1 FIUMI PJr DIUEFM. OPEPATiD0 COTS AND B1B OPFTlM PROJBT. AT EOSSOC PRICES
Pregot Without With Lncr.- Without With Iner-- Without With Inre- W,t*out With Inere- Without With lner.- Without With 84cr.- (and lct Project Project mntal Project Project mental Project Project mental Project Project mental Project ProJect _anta t Project Project eate l 3 years) (year 4) (year 5) (yoar 6) (year 7) (ath.-) (lo. -)
Fish Available for 11.400 2,60D 11.200 8.700 2.500 12.600 10.100 2.600 14,000 11,500 2,500 14.000 11,500 0 14000 14000 0 14000 18000 FreezIng (tons) Fih Available for Idlive 1,500 2,S00 1.500 (800) 2.300 1.650 (800) 2,300 1,500 (800) 2,300 1,500 (800) 3000 1500 -1500 3000 1500 -t5OO Fisb (tone;freah fls baies) Muldive Fish Produced 3O 460 300 (160) 460 800 (160) 4t0 XO0 (160) 460 30 (160) 600 300 -300 600 300 -300 (tons: product bheai)
8enefit (FOE price; M '000) Eport Price of Frozn 7T79 88.048 8.048 8.300 80XO S.551 6.551 8.803 5.t80t 8903 8.803 9.30' 9.506 Tua per ton Value of Frozen Tuna 89."0 20.120 90,13t 70.018 20,749 104.874 8S.825 21,378 119,714 98,337 22.006 12J,235 101,229 0 1223,235 123.235 0 I3,277 130.277 Ezport Volve of Mldive Fish 6.130 9.476 6,130 (3.296) 9,476 6.180 (3,296) 9,476 6,180 (3,296) 9,476 6,180 (5,296) 12,360 6.180 (6.110) 12,360 6.180 (6.180) Export Totel Se It) 29.69 95,S40 96,818 66.722 30,225 110,754 80,529 30,854 125.894 95,041 31,482 129,415 97,933 12,_60 129,415 117.0SS 12,360 136,457 124.097
Coat of Collection end Freezing f'8000) 44.62D 9,7W0 21.84t 12,146 9.700 23,182 13,482 9.70D 24.518 14.818 9,700 24,518 14,818 0 24.518 24,518 0 24,518 24,518
Coet of Fiehbng adw Ibldlv Flab Production (MIf000) Fuel nd Boet Operations 4.856 2,471 6,109 3.6ae 2.471 6,681 4,211 2.471 7,253 4.783 2,471 7,253 4,785 1.605 7.253 5.649 1.605 7.253 5.,49 Fuelaood for Ibldive 1i5 227 157 (70) 227 157 (70) 227 157 (70) 227 157 (70) 296 157 (141) 298 157 (141) Fih Production Labour 6,021 3.422 7,022 3.59s s,422 7,679 4.267 8,422 8,337 4,915 8,422 8,337 4,915 2,670 8.3s7 3,667 2,870 8.337 5,617 (Su-total) 11.05 8120. 13,288 7,163 6.120 14,517 8,397 S. 10 15.747 9,.27 6,120 15.747 9,627 4.572 15.747 11,175 4.572 15.747 11.175 _ _ ~~~~~~~~~~~~~~~~------_-_ ------_------. ,------Total Coat a5566s 15.820 36,134 19,314 L5,82D 37,699 21.879 15,820 40,265 24,445 15,820 40,265 24,445 4.572 40.2635 35.69 4.572 40.265 3S5693
Increenetal Benfit 40,186 47.406 5,6,60 70,56W 73,488 81.62 80.404 AeetAttons: onIc PrIce of Ihidive Fish (produt heals): 20.400 lf (based on pricea for eaport s5o receIved In 1989) Colleeting/Presizng Coet: S.80m Iooo/t (preewt nsa.. economic price) Nber of bonte (preeen ci bout projec): 141 Nrbr of boats (aitib project) 117 Thbroghpu durlng LitIal Years (as pu rntag. of througput at full deIopnt. in year 6) I year 4: 90.4X Y r ti: co.as X~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~U REPUBLIC OF MADIVES Third Fisheries Project Eeonecuc Rate of Retuen ?fl'000
Projsct Yoar: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1S 16 17 18 19 20
IDm Fiscal TaYr: 92 93 e4 95 98 97 93 99 00 01 02 03 04 05 06 07 08 09 10 11
Tuns Eaport Prico (per ton) 8.048 8.300 8.651 8.803 8.803 8.803 9.306 9.306 9.306 9.306 9.306 9.306 9.306 9.306 9.306 9.306 9.306
Incr.a.ntal Eaport Value 0 0 0 78.942 92,462 106,869 109,903 110.195 110.195 116.846 116.845 116,845 116.845 116.845 116.845 116.845 116.845 116.845 116.845 116.845
Incrasatal Operating Cost Collsctimn/Fr.szing 12.146 13,482 14,818 14,818 24,518 24,518 24,518 24,S18 24.518 24,518 24.518 24,518 24.518 24,518 24.518 24.518 24,518 Relocated Mother V_*ot 6.030 S.080 5.030 5.030 0 0 0 0 0 0 0 0 0 0 0 0 0 Selling & Distribution 1,184 1,387 1,600 1.649 1,.SW 1,653 1,753 1,753 1.753 1,753 1.75S 1,753 1,753 1.753 1,753 l,753 1,753 Maintanance of the Port, bilding. 0 1.381 1,381 - 1,381 1.381 1.381 1.S81 1,381 1,381 1,381 1,381 1,381 1.381 1,381 1.381 1.381 1.381 Operation of Navigational Aide 0 105 105 105 105 105 105 105 105 105 105 105 105 105 105 105 105 1 (Sub-total) 18,360 21,385 22,934 22.983 27,687 27,657 27,757 27,757 27.757 27,757 27,757 27,757 27,757 27,757 27,757 27,757 27,757 F - ___ ------__ ---- _ _ _------
IncrementalCost of Fishing 7.168 8,397 9,627 9,627 11,175 11,175 11,175 11.175 11,175 11,175 11.175 11,175 11,175 11,175 11,175 11,175 11.175 1 and Production of Maldive Fish
Investmsnt and Replacsemnt Cost at the Cospes Design, Supervision 14,159 4,098 3,831 2.745 Port Workl 37,521 18,424 0 Freezing/Storage Plant 25,404 S5,297 1,187 0 0 0 2,600 0 0 0 0 3,934 0 0 0 0 2.600 0 0 Supply of misc.Eq. 16,538 18,524 4,004 146 0 146 4,27b 146 0 146 0 14,125 0 146 0 146 4.275 146 0 Off ie.. Workshop, Housing 2,6S3 10,653 0 Bats A Wvigational Aide 0 34,657 104 Support to FPID (PM) 2,012 2,012 2,012 (Sub-total) 14,189 87,891 138,398 10.052 146 0 146 6,875 146 0 146 0 18,059 0 146 0 146 6,875 146 0
PET IETUWS (14,159) (87.891)(138,098) 43,362 82,534 74,108 77,147 64.488 71,217 77.913 77,767 77,915 59,864 77.91S 77,767 77,91S 77,767 71.038 77,167 71,913
Econwoic Rats of Return: 24 t Co - 109 - ANNEX 9
REPUBLIC OF MALDIVES
THIRD FISHERIES PROJECT
Selected Documents Available in the Prolect File
A. General and Sector Documents
1. StatisticalYearbook of Maldives, 19900
2. Documents for a Round Table Meeting on Maldives, 1991 - Volume I: DevelopmentConstraints, Plans and Strategies - Volume II: Priority DevelopmentRequirements
B. Documents Related to the Proiect
1. Maldives Third Fisheries Development Project PreparationReport, FAO/World Bank CooperativeProgram, Rome, January 23, 1990.
2. Maldives Third Fisheries DevelopmentProject PreparationReport, Volumes 1 and 2, FAO/World Bank Cooperative Program, Rome, August 20, 1990. RZPu5LeCor nuaLwzv Chart 1 S3ltD V16U3M$ FR.=M
SSASS TgADIM OROAMIS^tIO ($Tt° CtiGAhISASIOM cuaIT
Board of Directors
Chief | Executive
irectOr ()Drector 2
Boat Yard Admin. Office Retail Sales
Admin. Vehicles Warehouees by and Launches Product
Asst Director l)eputy Director Deputy Director Manager nag Manager M nar Imports Dept. Food Supplies FPID Foreign Trade| Mi IConstruction Tradena In!o Li|t I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-
Govt. I Vdrious Desks BV ips various Desks By See Separate Investments Accounts Warehoue Depa |Type of Client 1 CoTemp)|combdity C Fuel Chart Garments/Ins] (Temp)
MWarehouje 1 | Warehouses Chief By Comodity Accountant
NOThSt (1) Responsible for supervising Secoild Fisheries Project and Investments, for signing checks, for general administrative matters and for such work as requested by the Chief Executive. 12) Responsible for Administration (Primarily) and for such work as requested by the Chief Executive. outrcet STO0 Mission Drawing January 1991 Chart 2.1 NPUBLIC OF n&alDvS 1IRD vzsmIn PROJ3C
PISERIES pRPRMINMI CI OHART( PID
KanagLn Directo (CEO of SO
DLrector (1) r~~~irsto I
Sr. PeronneltAccont. AJsint. Generale- Offgr er Officer ricl Starff AcStaff M&Lnt.~~~ ~ ~ ~ .
_Adam. Of f Naint. 8ngineer
NOTES: OpCTerations (Vessels) (1) Responmible for fish purchasing (frese and (temporarily) for supervision of FTPP. (2) Responmible for purchasing of dried and Haldive fish, males of frozen, dried, Maldive and canned fish and fisb meal and (temporarily) for office administration. Sq8upplyHanager |(3) Responsible for purchasing fish, operations of four collector vessels, running plant and administration and accounts. Supply Staff SOURCE: PIDj Mission Drawing January 1991 Chart RCPUBLIC OP NALDIVES 2.2 2HIRD FI833RIS8 PROJECT
FISHERICS PROJECTS INPL E2-TroW n)PAMTHIIT £FP!Db MAJOR FUNCTIONAL ACTIVITIES
Manacing Director
ADt Dtant Director
Aset. Manager Manager Manager, Exports Project Officer Procurement Accounts Manager Operations Manager Supply Manager and Gen. Admin. KFWEP Technical Dept. Fleet Operationn Felivaru Proj.
Overseas purchases rntegrated computer- Frozen tuna Boat building Vessel maintenance Custom clearance ized management Collector vessel cps. Local purchases Dried fish Ice plants TrEining operations Air, surface cargo Felivaru accounts Canned Mothership operations Supplies to Felivaru tuna Fuel stores Schedule frozen fish Receipts, issuing DMP accounts Fish meal Fish purchasing Admin. services Delivers to Felivaru Local POe MFWEP accounts Market information purchases Obtain competitive FPID budgets Overseas buyers bids Payroll Personnel Critical level Cash payments Admin. services purcbhae Thulusdhoo System, PO follow Haafushl up Muli Procedures, pay- ments Stock room Chart 3 REPUBLIC OF KALDIVES THIRD FISBERISS PROJECT
MINISTRY OF FISHERIES AND AGRICULTURE tMFNAM ORGANIZATION CHART
|MiniBter1
iFiBerie& Aric. Plnin n |dioyBoard Dev. Council
Administration Section Economic, planning FisherieB research Agric. research & & development section & projects imple- projecte implemen mentation section tation section
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