Language : ENGLISH Original : French AFRICAN DEVELOPMENT BANK GROUP PROJECT : Irrigation Development Programme in Bani Basin and Sélingué (PDI- BS) Phase I COUNTRY : REPUBLIC OF MALI APPRAISAL REPORT Date: March 2009 Messrs. A.ABOU-SAABA Director, OSAN Ext. 2037 F. PERRAULT Director, ORWB Ext. 2036 D. KEITA Division Manager, OSAN.2 Ext. 2086 M. A. KANE Chief Water Resources Engineer OSAN.2 Ext. 2390 KHIATI Principal Agric. Engineer, OSAN.2, Mission Head Ext. 2286 M. A DIOUM Agro-economist, OSAN.2 Mission Member Ext. 3474 Mrs. R.N. BA Gender Specialist, OSAN.2 Mission Member Ext. 2590 M. A. DJIRO Agronomist, MLFO Mission Member Ext. 6036 Mrs. C. LEWIS Environmentalist, Consultant Mission Member Peer Reviewers : Messrs. X. BOULENGER Principal Irrigation Engineer, CPO, SNFO Peer Ext. 23 88 M. BA Principal Agronomist CPO, MLFO Peer Ext. 60 51 J. P KALALA Principal Socio-economist OINF.1 Peer Ext. 35 61 TABLE OF CONTENTS Page Equivalents, Fiscal Year, Weights and Measures, Acronyms and abbreviations, Programme Information Sheet Executive Summary, Programme Matrix, Implementation Schedule............................................. i – xii I – STRATEGIC ORIENTATION AND JUSTIFICATION...........................................................1 • 1.1 Link of Programme with Country Strategy and Objectives..............................1 • 1.2 Justification for Bank intervention ...................................................................1 • 1.3 Aid Coordination ..............................................................................................2 II - PROGRAMME DESCRIPTION ..............................................................................................3 • 2.1 Programme Components................................................................................................3 • 2.2 Technical Options and Alternatives Considered......................................................5 • 2.3 Programme Type......................................................................................................6 • 2.4 Programme Cost and Financing Arrangements .......................................................6 • 2.5 Programme Area and Beneficiaries .........................................................................7 • 2.6 Participatory Approach to Programme Identification, Design and Implementation. • 2.7 Consideration of Bank Group Experience and Lessons Learnt in Programme Design ............................................................................................................................8 • 2.8 Key Performance Indicators ....................................................................................9 III – PROGRAMME FEASIBILITY................................................................................................10 • 3.1 Economic and Financial Performance ...................................................................10 • 3.2 Environmental and Social Impacts ........................................................................11 IV – IMPLEMENTATION...............................................................................................................14 • 4.I Implementation Arrangements ..............................................................................14 • 4.2 Programme Monitoring and Evaluation.................................................................17 • 4.3 Governance ............................................................................................................19 • 4.4 Sustainability .........................................................................................................19 • 4.5 Risk Management ..................................................................................................20 • 4.6 Knowledge Development.......................................................................................20 V – LEGAL FRAMEWORK ..........................................................................................................21 • 5.1 Legal Instrument ....................................................................................................21 • 5.2 Conditions for Bank Intervention ........................................................................21 • 5.3 Compliance with Bank Policies.............................................................................21 VI – RECOMMENDATION ............................................................................................................21 No. of Pages ANNEX I: Comparative Socio-economic Indicators of the Country 1 …………………………………….. ANNEX II: Mali – Ongoing Bank Group Operations …………………………………….. 3 ANNEX III : Key Projects financed by the Bank and other Development .Partners 1 ANNEX IV: Map of Programme Area ………………………………………….. 1 Volume II as separate document containing the Technical Annexes Currency Equivalents (February 2009) UA 1 = CFAF 763.606 = USD 1.49192 = €1.16411 USD1 = CFAF 511.828 €1 = CFAF 655.957 Fiscal Year 1 January - 31 December Weights and Measures 1 metric tonne = 2204 pounds 1 kilogramme (kg) = 2.20 pounds 1 meter (m) = 3.28 feet 1 millimeter (mm) = 0.03937 inches 1 kilometer (Km) = 0.62 mile 1 hectare (ha) = 2.471 acres Acronyms and Abbreviations ADB African Development Bank ADF African Development Fund AGETIER Agency for Management of Rural Infrastructure and Facility Works BNDA National Agricultural Development Bank BD Bidding Documents CPS Planning and Statistics Unit CRRA Regional Agronomic Research Centre DNA National Directorate of Agriculture DNACPN National Directorate for Pollution and Nuisance Control DNGR National Directorate of Rural Engineering DRA Regional Directorate of Agriculture DRGR Regional Directorate of Rural Engineering DRP Regional Directorate of Fisheries DRPIA Regional Directorate of Animal production and Industries DRS Regional Directorate of Health DRSV Regional Directorate of Veterinary Services DRCN Regional Directorate for Conservation of Nature DRHE Regional Directorate of Water Supply and Energy EDM Energie du Mali (Electricity Corporation of Mali) EIG Economic Interest Group ESDP Economic and Social Development Plan GPRSF Growth and Poverty Reduction Strategy Framework IER Institute of Rural Economy IGA Income-Generating Activities MFI Micro-Finance Institution ODRS Sélingué Rural Development Authority) OPIB Baguinéda Irrigation Area Authority) PAPIM Maninkoura Irrigation Area Development Project PDI-BS Irrigation Development Programme in Bani Basin and Sélingué ESMP Environmental and Social Management Plan PMB Moyen Bani Plains Development Programme PRSP Poverty Reduction Strategy Paper UA Unit of Account ii Programme Information Sheet Client Information BORROWER : Government of the Republic of Mali EXECUTING AGENCY : National Directorate of Rural Engineering Financing Plan Source Amount (UA) Instrument ADF 44 .00 million Loan IsBD 13.38 Loan /rate 0.75%/30 yrs KFEDA 10.22 Loan /rate 3.5%/22 yrs SDF 6.68 Loan /rate 1%/30 yrs ABEDA 6.69 Loan /rate 1%/30 yrs OFID OPEC Fund 6.80 Loan /rate 1%/30 yrs BOAD 13.45 Loan /rate 2%/30 yrs IFAD 10.00 Loan /rate 0.75/40 yrs WB 9.23 Loan /rate 0.75%/40 yrs BIDC 6.70 Loan /rate 3%/30 yrs Government 16.67 Own resources TOTAL COST 143.82 million Key Financial Information of ADB Loan Amount UA 44.00 million Commitment fee* 0.50% of the undisbursed balance to run as from 60th day following signature of loan Service charge 0.75% per year on the amount disbursed and not repaid Due date Every 6 months as from 11th year to 50th year Grace period 10 years IRR NPV (baseline scenario) 15% ; CFAF 33.58 billion ERR (baseline scenario) 15% Duration – Key Stages (expected) Approval of concept note August 2008 Approval of programme May 2009 Effectiveness October 2009 Last disbursement December 2015 Completion December 2014 Last repayment December 2054 iii PROGRAMME SUMMARY 1. Programme Overview The sector goal of the Irrigation Development Programme in Bani Basin and Sélingué (PDI-BS) is to contribute to enhanced food security and poverty reduction. Its specific objective is to contribute to sustainable increase in agro-sylvo-pastoral and fish production. To that end, the programme will construct two diversion sills: one at Djenné on the Bani, and the other in Kourouba on the Sankarani. These two sill and Talo sill, which is already operational, will help to develop 24.540 ha of rice farms in controlled irrigation, 915 ha of double-crop rice farm under total water control, 6.820 ha of bourgou pastures for livestock development, 554 ha of market gardening, and 270 ha of fish ponds. On the whole, an additional annual production of 52.000 tonnes of paddy rice, 3.620 tonnes of vegetables, 588 tons of beef, 6 million litres of milk and 880 tonnes of fish is expected from the programme at full development. The programme will directly affect nearly 12,000 farms with approximately 130 000 persons, most of whom are women. The programme will be implemented over a period of six years. The programme cost is estimated at UA 143.82 million. The ADF will provide UA 44.00 million, the Government UA 16.67 million, and other co-financiers UA 83.15 million 2. Programme Beneficiaries and Impacts 2.1 The direct beneficiaries of the programme are the rice farmers, market gardeners, stockbreeders, and fish farmers; they are approximately 120 000 persons (men, women and youths) on average farms of 2 to 3 ha, as well as about 10 000 youths and women, who will benefit from specific activities. The programme will also benefit local authorities, local technical services, NGOs and civil