AFRICAN DEVELOPMENT BANK LANGUAGE: ENGLISH ORIGINAL: FRENCH ________________________________________________________________________ REPUBLIC OF TUNISIA INTEGRATED AGRICULTURE DEVELOPMENT PROJECT (IADP) FOR KAIROUAN APPRAISAL REPORT AGRICULTURE AND RURAL DEVELOPMENT ONAR DEPARTMENT NORTH, EAST AND SOUTH REGIONS) February 2006 TABLE OF CONTENTS Page Project Information Sheet, Currency Equivalents, List of Tables, List of Annexes, Acronyms and Abbreviations, Comparative Socio-economic Indicators, Executive Summary, Project Matrix ……………………….…………………………………………………….i-x 1. PROJECT ORIGIN AND BACKGROUND...........................................................1 2. THE AGRICULTURE SECTOR.............................................................................2 2.1 MAJOR CHARACTERISTICS ................................................................................2 2.2 LAND TENURE...................................................................................................2 2.3 PERFORMANCE OF THE SECTOR.........................................................................2 2.4 CONSTRAINTS AND PROSPECTS .........................................................................3 2.5 COUNTRY AGRICULTURE SECTOR STRATEGY ...................................................3 2.6 KEY INSTITUTIONS IN THE SECTOR ...................................................................4 2.7 GENDER ............................................................................................................4 2.8 RURAL FINANCING............................................................................................5 2.9 KEY PARTICIPANTS IN THE SECTOR..................................................................6 3. THE SUBSECTORS..................................................................................................6 3.1 WATER..............................................................................................................6 3.2 GRAIN FARMING ...............................................................................................6 3.3 ARBORICULTURE...............................................................................................7 3.4 LIVESTOCK BREEDING ......................................................................................7 3.5 FORESTRY .........................................................................................................7 4. THE PROJECT..........................................................................................................8 4.1 PROJECT DESIGN AND RATIONALE....................................................................8 4.2 PROJECT AREA AND BENEFICIARIES ...............................................................10 4.3 STRATEGIC CONTEXT......................................................................................11 4.4 PROJECT OBJECTIVES......................................................................................11 4.5 PROJECT DESCRIPTION....................................................................................12 4.6 PRODUCTION, MARKET AND PRICE .................................................................16 4.7 ENVIRONMENTAL IMPACT ..............................................................................17 4.8 PROJECT COSTS...............................................................................................19 4.9 SOURCES OF FINANCING AND EXPENDITURE SCHEDULE ..................................20 5. PROJECT IMPLEMENTATION..........................................................................21 5.1 IMPLEMENTING AGENCY.................................................................................21 5.2 INSTITUTIONAL ARRANGEMENTS....................................................................22 5.3 IMPLEMENTATION SCHEDULE AND SUPERVISION..............................................24 5.4 PROCUREMENT ARRANGEMENTS ....................................................................26 5.5 DISBURSEMENT ARRANGEMENTS ...................................................................28 5.6 MONITORING & EVALUATION.........................................................................29 5.7 FINANCIAL REPORTING AND AUDITING...........................................................29 5.8 AID COORDINATION........................................................................................30 6. PROJECT SUSTAINABILITY AND RISKS .......................................................30 6.1 RECURRENT COSTS .........................................................................................30 6.2 PROJECT SUSTAINABILITY...............................................................................30 6.3 MAJOR RISKS AND MITIGATING MEASURES ...................................................31 7. PROJECT BENEFITS ............................................................................................31 7.1 FINANCIAL ANALYSIS .....................................................................................31 7.2 ECONOMIC ANALYSIS .....................................................................................32 7.3 SOCIAL IMPACT OF PROJECT ...........................................................................32 7.4 SENSITIVITY ANALYSIS...................................................................................33 8. CONCLUSIONS AND RECOMMENDATIONS.................................................33 8.1 CONCLUSIONS .................................................................................................33 8.2 RECOMMENDATIONS.......................................................................................34 This report was prepared following a mission to Tunisia from December 5 to 12, 2005 by Messrs. Ould-Tolba Mohamed, Principal Agro-economist, ONAR.2, Head of Mission (Extension 2452); Mahdi Ahmed I., Principal Financial Analyst; Mouldi Tarhouni, Rural Engineer; Louis-Philippe Mousseau, Senior Environment Specialist, ONAR.0, and; Mrs. Ba N. Rita, Gender Specialist. Questions should be referred to the authors or to Mr. M. A. Abou-Sabaa, Manager, ONAR.2 (Extension 2675) and to Mr. B.B. Sidibé, Director, ONAR (Extension 2037). - i - AFRICAN DEVELOPMENT BANK BP 323 –1002 TUNIS BELVEDERE, TUNISIA TEL: (216) 71 33 35 21 FAX: (216) 71 33 29 92 Project Information Sheet (February 2006) The information given hereunder is intended to provide some guidance to all prospective suppliers, contractors, consultants and all persons interested in the procurement of goods and services under projects approved by the Boards of Directors of the African Development Bank Group. More information may be obtained from the Executing Agency of the Borrower. 1. COUNTRY : TUNISIA 2. TITLE : INTEGRATED AGRICULTURE DEVELOPMENT PROJECT (IADP) for Kairouan 3. LOCATION : Governorate of Kairouan 4. BORROWER : Republic of Tunisia 5. EXECUTING AGENCY : Commissariat Régional au Développement Agricole de Kairouan – Kairouan - Tunisia Tel: (216) 77 301 301 Fax: (216) 77 303 580 6. PROJECT DESCRIPTION : The sectoral objective of the Project is to contribute to poverty reduction in rural areas in Tunisia. The specific objective of the Kairouan Integrated Agricultural Development Project is to promote sustainable agricultural development by developing agricultural infrastructure, fostering participatory development and building the institutional capacity of government and beneficiary institutions. The Kairouan IADP comprises three components: (i) rural infrastructure development; (ii) participatory agricultural development; and (iii) capacity building. 7. PROCUREMENT OF GOODS AND SERVICES Goods, Works, and Services will be procured as follows: (i) The acquisition of drilling works, soil and water conservation works, uprooting of jujube trees, rehabilitation and creation of irrigated perimeters, construction and rehabilitation of drinking water supply pipes and road construction shall be done in accordance with National Competitive Bidding procedures. (ii) The acquisition of works for dry-masonry gabions and sills, the rehabilitation of public water tanks, the rehabilitation of soil and water conservation works, the rejuvenation of sylvo-pastoral areas, forestry works, and the constructions of drinking water tanks will be done in accordance with the procedure for community participation in procurement. (iii) Pastoral development works will be carried out under the framework of agreements with the Office for Livestock and Pastures (Office de l’Elevage et des pâturages - OEP). (iv) The electrification of boreholes for irrigation and for drinking water supply will be carried out under a works contract supervision convention with the STEG. - ii - (v) Hydro mechanical equipment for the pumping stations of the irrigated perimeters and the water supply networks, the vehicles, crane-truck, transformers, computer and audio-visual equipment, various equipment and fruit plants shall be procured through Local Competitive Bidding. (vi) The services of the consulting firm that will conduct the studies, technical assistance, the training of senior staff and the training of beneficiaries shall be procured through short listing. (vii) The inventory of water points and the research works will be carried out under agreement with the specialized institutions of the IRESA and the universities. (viii) Land consolidation will be carried out under the framework of an agreement with the Agricultural Land Agency (Agence Foncière Agricole). 8. TOTAL COST : UA 27.28 million - Foreign Exchange : UA 16.94 million - Local Currency