Document of The World Bank FOR OMCIAL USE ONLY GA /3j?o>K , Repot N.. 5096-NEP NEP&L STAFF APPRAISAL REPORT OF THE AGRICULTURAL EXTENSION PROJECT II March 6, 1985 South Asia Projects Department General Agriculture Division This document a a restrited distibution and may be used by rcipients only in the performmance of their offichd duies. Us contets umxy not otherwise be discosed witht Wodd Bank autwhization. CURRENCY EOUIVALENTS US$ 1 - Nepalese Rupees 18.5 WEIGHTS AND MESURES Metric System FISCAL YEAR July 16 - July 15 ABEREVIATONS AL - Agricultural Assistant AADO - Assistant Agricultural Development Officer ADBN - Agricultural Development Bank, Nepal ADO - Agricultural Development Officer AIC - Agricultural Inputs Corporation CSP - Cropping Systems Program CTC - Central Technical Comumittee DDG - Deputy Director General DG - Director General DOA - Department of Agriculture DTC - District Techuical Committee BMI - His Majesty's Government of Nepal ICP - Integrated Cereals Project JT - Junior Technician JTA - Junior Technical Assistant M4&A - Ministry of Agriculture PC - Project Coordinator PLAA - Panchayat Level Agricultural Assistant PO - Production Officer ROO - Research Outreach Officer RRC - Regional Research Coordinator RRS - Regional Research Station RTC - Regional Training Center S.EO - Senior Agricultural Extension Officer SMs - Subject Matter Specialist T&V - Training and Visit System FOR OMCLIAL USE ONLY NEPAL AGRICULTURAL EXTENSION PROJECT II Table of Contents Credit and Project Summry Page No. I. BACKGROUND * .................................... ...... I A. Introduction ......................1 B. The Country .1 C. Agriculture in Nepal 2. 2 Agricultural Institutions 3 Bank's Role in the Agricultural Sector .. .6 D The Project Area ..7 The Terai Region .7............... .7 Nepal's Experience with Improved Extension. 8 Justification and Project Rationale .................. .. 11 II_ THE PROJECT . .12 A. General Description ................. ................... 12 Project Districts ...................................... 12 Project Phasing ....... ................................. 13 B. Detailed Features ........... ... .0 13 Agricultural Extension ............. .... 14 Strengthening of Engineering Unit ................. 21 Monitoring and Evaluation ................. 21 III. COST ESTIMATES AND FINANCING ..................... 22 A. Cost Estimates . ................. 22 B. Proposed Financing ..... 23 C. Procurement ................. 24 D. Disbursements, Accounts, and Audit ................. 25 IV. ORGANIZATION AND MANAGEMENT ................................ 27 Project Implementation ....... . . .. .... . ............ . . 27 National Level Coordination ..... 28 Linkages Between Extension and Research 28 Training ... .30 V. BENEFITS. JUSTIFICATION AND RISKS .......... 30 VI. AGREEMENTS REACHED AND RECONMENDATIONS ..32 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. -ii- 1. Costs Tables Table 1 - Simmary of Project Costs Table 2 - Civil Works Table 3 - Vehicles and Equipment Table 4 - Incremental Staff Costs Table 5 - Incremental Operating Costs Table 6 - Training Costs Table 7 - Monitoring and Evaluation Table 8 - Requirement and Availability of Extension Staff Table 9 - Requirement of Extension Staff by Year 2. Training 3. Table 1 - Implementation Schedule Table 2 - Estimated IDA Disbursements 4. Table 1 - Economic Analysis Table 2 - Economic Price Build-up 5. Related Documents Available in Project File Chart I - 25853 - Extension Organization Chart 2 - 25854 - Linkage Between Extension and Research Map - IBRD 17960R NEPAL AGRICULTURAL EXTENSION PROJECT II Credit and Proiect Summary Borrower: Kingdom of Nepal Amount: SDR 7.4 million (US$7.2 million equivalent) Terms: Standard Proiect Description: The project is the second phase of an IDA-supported introduction of the Training and Visit (T&V) extension system in Nepal. This phase would reorganize and strengthen agricultural extension services in eleven administrative districts in the Terai with the objective of achieving early and sustainable improvement in agricultural productivity. The project would aim to bring about these increases by advocating adoption of low-cost and labor-intensive agricultural practices, sound irrigation water management, tbus facilitating better cropping patterns, greater crop diversification and more efficient fertilizer usage. The project would also provide for training of staff and monitoring and evaluation of project activities. Given our experience with the first project and the considerable expertise we have developed in introducing the T&V system in Nepal and other countries in the region, no major risks are anticipated. Moreover, the second phase builds upon an existing extension structure, the incremental cost per hectare and per farm family is low and, therefore, even small production increases would generate high returns. Risks arising out of extension staff management have been minimized by providing that all staff would fall under the administrative control of a single government agency. Estimated Item Local Foreijn Total Cost: ----US$ million--- Civil Works 1.3 1.3 2.6 Vehicles and Equipment 0.2 0.8 1.0 Incremental Staff 1.6 - 1.6 Incremental Operating Cost 0.5 0.3 0.8 Training 0.4 - 0.4 Mouitoring and Evaluation 0.1 - 0.1 Total Base Costs 4.0 2.4 6.5 Contingencies Physical Contingency 0.4 0.3 0.7 Price Contingency 0.9 0.5 1.4 Total Proiect Costs 5.3 3.2 8.5 Finaucinx Plan Local Foreign Total ---US$ million-- IDA 4.0 3.2 7.2 RMGN 1.3 - 1.3 Total 5.3 3.2 8.5 Estimated Disbursement: IDA FY FY86 FY87 FY88 FY89 FY90 FY91 11 Annual 0.3 0.7 1.6 2.0 2.1 0.5 Cumulative - 1.0 2.6 4.6 6.7 7.2 VJ One semester. Economic Rate of Return: 50 percent Appraisal Report: NEPAL - Agricultural Extension Project : Phase II Report No. 5096-NEP, dated March 6, 1985 NEPAL AGRICULTURAL EXTENSION PROJECT II I. BACKGROUND A. rntroduction 1.01 As part of Bank assisted irrigation projects in the Terai region of Nepal, His Majesty's Government of Nepal (HMC) introduced the Training and Visit System (T&V) of agricultural extension (over the period 1975-79) into six districts. 1/ Encouraged by increasing yields achieved in the first two districts (Bara and rarsa covered by the Narayani Irrigation Project), HMG decided, at the time of the formulation of the Sixth Five Year Plan, to set up a more effective and unified National Agricultural Extension Program in the Terai. As part of this strategy HMG, with assistance from IDA, intro- duced improved agricultural extension into a further eight districts 2/ of the Terai. HMG has since decided to extend the system to the remaining districts of the Terai. The proposed project would cover six districts not covered under the previous project and also continue the strengthening of extension services in five irrigation project districts (previously covered under IDA assisted projects) to ensure an uniform approach, and thus complet- ing the coverage by improved extension of all the 20 Terai districts. 3/ With the consent of HMG, Mr. R.C. Mishra, Project Coordinator, Agricultural Exten- sion and Research Project formulated a draft outline of the proposed project. Preappraisal of the project was carried out by IDA in November/ December 1983. This report is based on the findings of an IDA appraisal by Mr. R. V. Ramakrishna (IDA) who visited Nepal in Marc'h 1984. B. The Country 1.02 Nepal is landlocked between China and India. It is divided into three parallel ecological zones running east-west: the Terai plain, an exten- sion of the Gangetic Plain of India; the Hills, actually the foothills of the Himalayas, ranging from 500 M to 4,000 M in elevation; and the Himalayan 1/ Birganj and Narayani Irrigation Projects (Crs. 373 and 856-NEP) in Bara, Parsa and Rautahat districts; Bhairawa-Lumbini Groundwater Project: Stage I (Cr. 654-NEP) in Rupandehi district; and Sunsari-Morang Irrigation and Drainage Development Project (Cr. 1055-NEP) in Sunsari and Morang dis- tricts. 2/ Agricultural Extension and Research Project (Cr. 1100-NEP) covering Jhapa, Sarlahi, Mahottari, Dhanusha, Kapilabastu, Chitwan, Nawalparasi and Banke districts. 3/ Rupandehi district is fully covered by improved extension under the ongo- ing Bhairawa-Lumbini Groundwater Project: Stage II (Cr. 1316-NEP, US$16.0 M, effective 1983). -2- Mountains to the North. These three zones account for 17 percent, 68 per- cent, and 15 percent of the total area (140,800 sq.km), respectively. Rivers and streams, running north to south, cut the Hills into isolated areas and varying microclimatic conditions and provide a range of conditions for plant growth, depending on elevation, aspect, cloud cover, sLope, etc. 1.03 Nepal's population, 96 percent of which is rural, is currently estimated at 15 M and is increasing at a rate of 2.7 percent annually. About 44 percent of the population lives in the Terai, where a higher rate of population increase (4.1 percent) is partially due to migration from the Hills and India. GNP per capita in Nepal, at about US$170, is among the lowest in the world. 1.04 Administratively, Nepal is divided into five development regions. Each of these comprises a section of the country, running north to south, containing Mountain, Hill and Terai areas. Each development region is divided into either two or three development zones, which are further divided into districts. The districts contain varying numbers of town and vilLage panchayats and there are nine wards (the smaLlest socioeconomic units) in each panchayat. In rural areas the ward consists of about two hamlets. C. Agriculture in Nepal 1.05 With farm production and related activities comprising about 60 percent of GDP, agricultural development is the key to economic development in Nepal. Agriculture engages about 90 percent of the labor force and provides more than 80 percent of all merchandise exports. Only about one sixth of the land area is available for cultivation of which about 15 percent is irrigated. About 90 percent of the cropped area is grown to foodgrains, predominantly rice (half of cropped area), followed by maize, wheat and pulses. Less than 10 percent of the cropped area is under cash crops, mainly oilseeds, jute, sugarcane and tobacco. 1.06 During the seventies, the trend in production of major foodgrains was not encouraging, except for wheat which increased at an a-verage rate of 9.6 percent p.a. Overall production grew at 1.1 percent annually largely due to expansion in acreage, while average yields, again with the exception of wheat, fell at a rate of 0.8-0.9 percent per year. Erratic monsoon condi- tions and uneven distribution as well as higher cost of fertilizers partly account for the decline, but inadequate extension advice and other supporting services, cultivation of marginal lands and inappropriate pricing policies have also contributed to the slow growth. 1.07 Agricultural Strategy. Nepal's Sixth Plan (1980-85) has given priority to increased food production in the Hills and the Terai. So far in the Sixth Plan, HMG has devoted special efforts to increasing the supply and storage of fertilizer, improving extension services in the Terai, increasing and encouraging the proper utilization of irrigation, and to accelerating the completion of seed and post harvest grain preservation projects. These efforts, aided by favorable monsoons, led to agricultural GDP growth of 10 -3- percent in 1980/81 and 3.5 percent in 1981/82. The high growth in 1980/81 was from a base of 1979/80 output and which had been low due to drought. When averaged over the more normal 1978/79 production base, agricultural growth in 1980/81 was about 2.5 percent, which was still higher than the rate obtained in many preceeding years. The highest gross foodgrain production (3.7 M tons) in 1981/82 was 16 percent below the 4.4 K tons required to satisfy the minimum needs of the population. In 1982/83, Nepal experienced another drought and compared to the previous year agricultural output declined by an estimated 11 percent. 1983/84, however, has been a favorable year with preliminary estimates indicating gross foodgrain production of 4.2 M tons, compared to 3.3 K tons in 1982/83. Agricultural Institutions 1.08 Agricultural development and policy are the main concern of four ministries: the Ministry of Agriculture (MOA), che Ministry of Forests and Soil Conservation, the Ministry of Water Resources and the Ministry of Land Reform. MOA includes the Department of Agriculture (DOA) which is respon- sible for promoting production through research, training and extension. MOA has also overall responsibility for institutions such as the Agricultural Development Bank of Nepal (ADBN) and the Agricultural Inputs Corporation (AIC). The Director General of Agriculture heads DOA and is assisted by four Deputy-Directors General one each responsible for Crop Development, Extension and Services, Horticulture and Fisheries, and Planning and Coordination. 1.09 Agricultural Research. Agricultural Research is the responsibility of DOA and is administered by a Deputy Director General (DDG) working under the Director General of Agriculture. The research service operates a total of 52 centers located throughout the country: 7 in Eastern Region, 25 in Central Region, 10 in Western Region, and 10 in Far Western Region. These consist of (a) research stations (for cereal crops); (b) research centers (for cash crops); and (c) research farms, the latter being mainly engaged in seed multiplication. The research service is charged with the responsibility for providing suitable agricultural technology for development of all the regions and climatic zones of Nepal. Considerable progress in the develop- ment of appropriate farming recommendations has been made largely as a result of the Integrated Cereals Project (ICP), assisted by USAID. This program has shown the benefits of a coordinated approach to rice, wheat, and maize research and production. The Cropping Systems Program (an integral part of ICP) has been able to develop improved cropping patterns and technology in selected districts of the Terai under irrigated and rainfed conditions through use of short duration varieties, early planting, introduction of additional crops into the rotation and balanced fertilizer use. In the irrigated lowland areas, cropping patterns e.g., Rice-Wheat-Maize, Rice-Wheat-Murngbean and Rice-Mustard-Maize using improved technology developed by the Cropping Systems Program (CSP) produced marked increases in annual yields and returns as compared to prevailing traditional cropping pattern of Rice-Wheat-Fallow. As a first step, to increasing production on a wider scale, DOA has implemented a Pilot Production Program (by mobilizing timely supply of seed, fertilizer, credit and irrigation water and embodying the recommendations of CSP) over compact blocks of 150-500 ha. As a result -4- of adoption of this improved technology, total annual yields of all crops under irrigation have increased from 4.5 tons/ha to between 6.5 and 7 tons/ha. Under rainfed lowland conditions, a few common cropping patterns have also been developed using improved technology and have led to sig- nificant yield increases. During the last winter season, a Pilot Production P'ogram was initiated for rainfed areas involving adoption of improved prac- tices under existing crop rotations. 1.10 Under the IDA assisted Agricultural Extension and Research Project (Cr. 1100-NEP) and the Cash Crop Development Project (Cr. 1339-NEP), agricul- tural research activities in the Terai are being strengthened by providing staff, equipment and buildings and decentralized by designating four of the existing research stations as Regional Research Stations (RRS). These are at: Tarahara (Eastern Region), Parwanipur (Central Region), Bhairawa (Western Region), and Nepalganj (Far Western Region). In addition, four research substations located at Nawalpur for oilseeds (Sarlahi district), Jitpur for sugarcane (Bara district), and Belachapi for tobacco and Hardinath for hor- ticulture and cereals (Janakpur district) are being developed. 1.11 Each RRS, headed by a Regional Research Coordinator, is responsible for coordinating research activities on RR.S and research substations located within the region. Research efforts focus on principal crops grown under the different agroclimatic conditions prevailing in the jurisdiction of each RRS with special emphasis on varietal trials, improvement of cultivation prac- tices, dryland farming techniques, soil and water management, improved farm implements, and farming systems and cropping patterns designed to increase farmers' income levels. Research substations are used for testing of research results and to work on specific crops allotted to them. One Research Outreach Officer (ROO) has been provided for each RRS with respon- sibility for designing and helping in carrying out adaptive trials or. farmers' fields and to work closely with subject matter specialists (SMS), extension staff, farmers, and research workers, and form an important link between research and extension. ROO also has an active role in training SMS which is carried out at RRS once every two months. 1.12 As a result of the above, research activities throughout the Terai have been reorganized, considerably strengthened and a flow of relevant and practical technology started. 1.13 Agricultural Credit. The single major source of institutional credit is the Agricultural Development Bank, Nepal (tDBN), established in 1968. It is expected to provide the overall credit reqjirements of agriculture and agro-based inductries, and ensure effective mobilization of rural savings. The Sajha (cooperative) program provides short term production credit to farmers with funds made available from ADBN for onlending to its members. More recently, comnercial banks have also become involved in agricultural credit but their volume of lending is small. 1.14 The standard terms and conditions of lending by ADBN are 18 months duration for short cerm loans with a 15 percent annual interest rate, 7 years for medium loans at 12 percent annual interest rate, and 20 years for long -5- term loars with an 8 percent interest rate. ADBN has no constraints in the delivery of credit as it has offices located throughout the country. 1.15 Lending by ADBN increased about eight-fold during the five year period between 1972/73 (Rs. 36 M) and 1977/78 (Rs. 283 Mi. Lending, however, declined thereafter in 1978/79 (Rs. 218 M), 1979/80 (Rs. 140 M), and 1980/81 (Rs. 134 M). The total lending increased to Rs. 140 M in 1981/82. Further increases are reported for 1982/83. The main reason for decline in lending operations was due to deteriorating repayment performance. Loan overdues increased from 22.6 percent (Rs. 50 M) to 47 percent (Rs. 217 M) in 1979/80. Since then the situation has improved. The Asian Development Bank has provided continued assistance to ADBN tor agricultural credit and small farmer development. h 1.16 Cooperativyes. The Sajha development program was introduced in early 1976 to revitalize the cooperative movement, mobilize local savings, and to link economic development with political decentralization at the local level. The objectives of the Sajhas are to provide credit, agricultural inputs and marketing facilities, as well as to sell consumer goods (salt, kerosene, coarse cloth, diesel oil, rice and sugar). At present, one Sajha serves on an average, three to four panchayats. Further, at the village panchayat level, they act as the local agent of the Agricultural Inputs Corporation. There are 1,170 registered societies, the majority of which suffer from poor management and lack of resources. 1.17 Agricultural Inputs. The Agricultural Inputs Corporation (AIC), is the sole government agency responsible for supply of inputs and was estab- lished in its present form in 1975/76. Its functions include: (a) importa- tion and distribution of chemical fertilizers and maintenance of a buffer stock sufficient for at least one cropping season; (b) collection, process- ing, storage and distribution of improved seed and assistance toDOA in conducting seed multiplication programs; (c) procurement and distribution of agricultural chemicals for plant protection and grain storage; and (d) dis- tribution of locally manufactured agricultural tools and implements as well as importation and distribution of agricultural machinery. AIC also multi- plies improved seed through contract growers end is responsible for distribu- tion of seed produced on government farms. In general AIC suffers trom Lack of finances to import fertilizer on time and ;n adequate quantities. In recent years about 40 percent ot fertilizer imports, largely urea and complex mixtures, have been obtained in the form of external commodity aid. The prices of chemical fertilizer, sold in Nepal are fixed at an un.form rate throughout the country by HMG, taking into account the import prices and retail prices in the adjoining border areas of India. The uniform pricing practice implies subsidization of the cost of fertilizer, particularly to the Hills. However, the bulk of fertilizers (90 percent) is consumed in the Terai and the Kathmandu Valley. Partly as a result of declining import prices and increased retail prices, the rate of subsidy on the import price of Urea has been re*i.oced from 32 percent in 1980/81 to nil .n 1983!84, and for complex fertilizer from 26 percent in 1980181 to 3 parcent in 1'i83/84. Transportation cost of seed from the Terai to the Hills is fully subsidized. Budgetary subsidies to AIC amounted to Rs. 56 M in 1982/83, equivalenL to -6- about 3 percent of regular expenditure and 2 percent of current revenue in that year. 1.18 Agricultural Prices. A principal aim of agricultural pricing policy in Nepal has been to ensure low and stable food prices for consumers who spend 70 to 80 percent of their incomes on food. Producer price policy has aimed at providing input subsidies and announcing minimum support prices, usually fixed at below the expected market prices, for major foodgrains and cash crops but keeping in mind the need to contain consumer prices. While fertilizer procurement and distribution is entirely a public sector undertak- ing (AIC) in Nepal, the grain output market is predominantly a private sector operation and public procurement of foodgrains amounts to less than 15 per- cent of marketed output. The Nepal Food Corporation (NFC) procures foodgrains in the Terai for distribution to the deficit Hill &reas and sub- sidizes transportation costs to the Hills at a differential rate, which increases in direct relation to the remoteness of the deficit areas. Over- all, budgetary subsidies to NFC amounted to Rs. 80 M in 1982/83, equivalent to 4 percent of regular expenditure, and 3 percent of current revenue, in that year. The Bank's Role in the Agricultural Sector 1.19 The Bank, through its current and proposed programs seeks to assist Nepal's development objectives and strategy and the agricultural aector has received priority in the Bank's lending program. Past investments have been predominantly oriented towards increasing agricultural production with emphasis on the agriculture of the Terai and development of its major irriga- tion infrastructure - the Birganj and Narayani Irrigation Projects (Crs. 373-NEP and 856-NEP); the Sunsari-Morang Irrigation Project (Cr. 812-NEP); Bhairawa-Lumbini Groundwater Projects I and II (Crs. 654-NEP and 1316-NEP); and the Mahakali Irrigation Project I (Cr. 1055-NEP). These projects have made satisfactory progress (para 1.30). The Agricultural Extension and Research Project (Cr. 1100-NEP) will reorganize extension services in eight districts of the Terai and strengthen applied and adaptive research (para 1.29). The recently started Cash Crops Project (Cr. 1339-NEP) will promote the commercial production of sugarcane, tobacco and oilseeds in the Terai, initiate pilot development of sericulture (Hills) and groundnut, and strengthen ginger research (Hills). In addition, IDA is assisting in integrated rural development in the Hills (Cr. 939-NEP) which also addresses hill food production and includes a minor irrigation component. Implementa- tion of this project has been slow. The Hill Food Production Project (Cr. 1101-NEP) pays particular attention to improving extension, input supply and minor irrigation in Gandaki Zone. The project is progressing slowly. The Community Forestry Development Project (Cr. 1008-NEP) in the Hills and the Second Forestry Project (Cr. 1400-NEP) in the Terai address urgent ecological problems. Implementation of the Community Forestry Project in the Hills is satisfactory. The Second Forestry Project, located in the Terai, has recently become effective. -7- E. The Project Area The 1arai Region 1.20 The Terai lies below the southern foothills of the Siwalik range and stretches the length of Nepal as part of the Indo-Gangetic Plain. The region covers about 21,800 sq.km (about 15 percent of the country). The elevation of the region varies from 100 meters above sea Level near the Indian border to 500 meters near the foothills. A large number of streams and rivers (including three of the major rivers of Central Himalayas) enter and cross the Terai. 1.21 Climate. The average annual temperature is about 240C. Temperatures are high between March and October when the mean monthly range is between 20 and 300C. November to February are cold winter months with mean monthly temperatures between 14 and 230C. The average rainfall is about 1,600 mm per year. There is considerable ann-ual variation in the duration of the rainy season, and in the total amount of rainfall. The average number of rainy days is 81, the peak season being June-September when 80 percent of rainfall occurs. 1.22 Soils. The Terai plain forms the piedmont in the northern part of Indo-Cangetic depression which has been filled by recent alluvial material derived from the Himalayas. Soils vary from sandy to silty with thick gravel fans in the northern part. The soil pattern changes from north to south and also from east to west depending on nearness to sources. The texture of soil varies from coarse sand to graveL on foothill slopes to medium sand and silt in the middle of the Terai, and to somewhat heavier clay soils near the Nepal-India border. 1.23 Irrigation. According to current estimates, about 340,000 ha receive some form of irrigation in the Terai comprising 110,000 ha developed by the Government and 230,000 ha from private sources. Most of the area developed by the Government is in Central (42 percent) and Eastern (34 percent) Regions. 1.24 Crops and Production. With average hoLding sizes of between 1.4 to 2.0 ha, crop production in the Terai is dominated by rice and wheat which in 1981182 accounted for 64 and 16 percent, respectively, of the total cropped area - a total of 80 percent. Maize (8 percent), oilseeds (6 percent), jute (2 percent), sugarcane (1 percent) and millet (1 percent) made up most of the balance. Comparison with the statistics for 1971/72 indicates that over the decade to 1981/82, the cropped area in the Terai has increased by some 172,000 ha or about 12 percent. The most significant change has been the more than two-fold increase in area planted to wheat, from 112,000 ha to 249,000 ha. The areas under sugarcane and oilseeds have also increased significantly but other crops have remained at the same levels. Over the 10-year period 1970/71 to 1980181, the Terai accounted for 65 percent of the national cropped area and approximately the same proportion of national output on a weight basis. -8- 1.25 The average yields of important crops and those obtained by farmers using improved technology are given below: Tcble 1.1: Yields of Important Crops Crop Average Yield Yields obtained by good farmers kgs/ha ------------kgs/ha ------------- Irrigated Unirrigated Paddy 1,900 2,700 - 3,500 2,000 Maize 1,680 1,700 - 2,000 Millets 960 1,100 Wheat 1,329 2,400 - 3,100 1,400 - 1,700 Oilseed/Pulses 600 800 Sugarcane 24,000 30,000 -35,000 Nepal's Experience with Improved Extension 1.26 Prior to 1975, there was no organized system of agricultural exten- sion in the Terai and several factors contributed to the relatively low level of effectiveness of the extension service in increasing productivity. Field staff were required to perform varied tasks not directly related to extension activities, and much reporting was required. Targets were often centrally determined and bore little relation to local conditions and priorities. Usually, these work programs were more relevant to a small number of farmers, often the more advanced and larger ones and were usually related to input supplies. The concentration by research workers and policy makers on a high cost and sophisticated farm level technology was also an imporant factor in limiting the effectiveness of extension workers. The goal of high production and income levels was to be achieved by farmers instantly rather than progressing, step by step, from present productivity levels and in accordance with their farming situations and financial means. Thus, given the differing levels of resource and knowledge constraints, the majority of farmers obtained few relevant and practical messages from the extension service. Agricultural research and extension services suffered from lack of transport, housing and other facilities and inadequate emphasis was paid to applied and adaptive research. Furthermore, overall supervision of field workers was poor. 1.27 The T&V agricultural extension system was introduced between 1975 and 1978 into three districts of the Terai (Bara, Parsa and Rautahat) as a com- ponent of the Birganj and Narayani Irrigation Projects (Crs. 379-NEP and 856-NEP); Rupandehi district in 1976 under the Bhairawa-Lumbini Groundwater Proiect: Stage I (Cr. 654-NEP); Sunsari and Morang districts in 1978 under the Sunsari-Morang Irrigation Project (Cr. 812-NEP), and in 1981 to a limited area (6,000 ha) in Kanchanpur district under the Mahakali Irrigation Project (Cr. 1055-NEP). In Rapandehi district, a follow-on project, Bhairawa-Lumbini Groundwater Project: Stage II (Cr. 1316-NEP, effective 1983) provides for full coverage of the district by improved extension. -9- 1.28 The Director General of Agriculture is assisted by a Deputy Director General (DDG) for Extension and Services. The extension wing is represented at the region by a Regional Director of Agriculture who supervises district level extension programs headed by an Agricultural Development Officer/Assistant Agricultural Development Officer (ADO/AADO). Each ADO/AADO is assisted by a number of Junior Technicians (JT) and Junior Technical Assistants (JTA) each receiving two years and one year training respectively. 1.29 The projects provided for (a) Panchayat Level Agricultural Assistants (PLAA), Junior Technical Assistants (JTA) and Junior Technicians (JT) at the field level, (b) two Subject Matter Specialists (SMS) in each project area, and (c) a systematic program of training for PLAA, JTA and JT combined with a regular schedule of visits to farmers' fields. 1.30 Advice to farmers was provided at the village level by full time PLAA coming from a farming background and who are residents of the panchayats in which they work. Each PLAA was assigned to one panchayat (about 700 farm families). PLAAs receive technical support from JTA and one JTA guides and supervises some 3-5 PLAA. One JT supervises the work of three JTA. Supervi- sion at the district level is provided by an Assistant Agricultural Develop- ment Officer (ADDO) working under a Senior Agricultural Officer (SAO) at the project level. SAO is assisted by 2-3 SMS to provide specialist training to extension staff. The irrigation projects also financed the construction of two training centers at Jhumka (Sunsari district) and Parwanipur (Bara dis- trict). Responsibility for execution of the projects has been assigned to d'ily constituted Irrigation Boards and actual implementation is the respon- sibility of a Project Manager seconded from the Irrigation Department. In each project, the Senior Agricultural Officer, seconded from DOA and under the administrative control of the Project Manager, is responsible for agricultural extension activities. Subordinate level extension staff, some of whom are direct employees of the Irrigation Boards, are also responsible to SAO. Technical support and supervision of extension staff, however, are provided by DOA. These administrative arrangements, which provide for dual control over agricultural staff, have not been satisfactory; in particular DOA, who lacking administrative control over the agricultural staff in the irrigation project areas, has basically ignored these staff who are therefore cut off from assistance with problem solving and technology development. There is now a genuine appreciation in both the Irrigation and Agricultural Departments, of the need to place all extension staff directly under the administrative and technical control of DOA. Such arrangements would be incorporated in the proposed project. 1.31 Given the promising results of improved extension in irrigated areas but in recognitior of the limited manpower resources and absorptive capacity of DOA, a Bank financed Agricultural Extension and Research Project (Cr. 1100-NEP) became effective in 1981 and extended coverage to a further eight districts of the Terai (Jhapa, Sarlahi, Mahottari, Dhanusha, Kapilabastu, Nawalparasi, Chitwan and Banke). A Project Coordinator, working under the Director General of Agriculture, is responsible for implementation. The project provides for (a) improvement and decentralization of research -10- facilities in the Terai to provide applied and adaptive research based on location specific needs, (b) an unified extension service under a single line of command, (c) two SMS per district, (d) establishment of a dynamic link between farmers, professional extension workers and researchers, (e) a sys- tematic program for training of full time village level extension workers combined with a regular schedule of visits to farmers' fields, (f) a regular program for inservice training of extension workers, and (g) UNDP technical assistance for overseas training of project staff and provision of consult- ants. HMG's commitment to providing improved agricultural extension has been evidenced by the action taken to fill almost all research and extension staff positions, to provide incentives to staff, to reorganize the metrodology of research so as to establish strong extension-research linkages and to organize training programs required to meet the needs of reorganized exten- sion. 1.32 Good progress has been made in Bara, Parsa, Rautahat, Sunsari and Morang districts (irrigation project districts) over the period 1977-1982. Over this period, in Bara, Parsa and Rautahat districts, fertilizer consump- tion increased from 5,800 to 8,000 tons (55 percent) and in Sunsari and Morang districts from 1,500 to 2,000 tons (33 percent). Production of foodgrains increased in Bara, Parsa and Rautahat districts from 315,000 to 480,000 tons (52 percent) and in Sunsari and Morang districts from 280,000 to 320,000 tons (14 percent). Studies carried out in Bara and Parsa districts have shown a clear indication of yield increases under both rainfed and irrigated conditions. Details are given below: Table 1.2: Yield Increases in Bara and Para Districts Rainfed Irrigated Pre Project 1/ Present 2/ Pre Project L/ Present 2/ …----- tons per ha - Early Paddy 1.9 2.5 2.2 3.3 Main Crop Paddy 2.1 2.4 2.2 3.3 Wheat 1.1 1.6 2.4 3.2 1/ Baseline Data collected prior to project implementation. 2! Crop cutting trials in 1981182 and winter crop of 1982/83. 1.33 In the ongoing Agricultural Extension and Research Project (Cr. 1100-NEP), the extension mechanism of regular farm visits by PLAA and quality training is being well established. Special courses for SMS in training methodology have been regularly organized. Technology requiring modest financial outlays (seed treatment, timely sowing, line sowing of maize and wheat, interculture operations) are being readily adopted. Research extension linkages in terms of preseason Regional Workshops to determine crop recommendations and programs for field trials, bimonthly workshop for SMS at research stations, and involvement of researchers in guiding SMS to lay out on-farm field trials are improving. In the Pilot Production Program areas, where special efforts have been made to coordinate the timely availability of -11- irrigation, credit, inputs and advice, annual production per hectare increased under rainfed (2.86 to 4.15 tons/ha) and irrigated (4.5 to 6.5 tons/ha) conditions by adopting advice given by the reorganized extension service. A recent monitoring study carried out by the Agricultural Project Services Center (APROSC), Nepal in the eight project districts has shown further encouraging results: (a) even distribution of contact farmers in each category of farm size and resource base, (b) minimum variation in holding of irrigated land between contact and non-contact farmers, (c) a high percentage of contact and non-contact farmers are aware of the Panchayat Level Agricul- tural Assistant (PLAA), (d) PLAA visits to contact farmers (74-96 percent) and non-contact farmers (55-89 percent) are regular, Ce) a good number of non-contact farmers are aware (34-77 percent) of contact farmers, (f) a good percentage of farmers feel that visits of PLAA are useful, and (g) that there is scope for improvement of the quality of PLAA visits. Justification and Project Rationale 1.34 In the IDA assisted Sunsari-Morang Irrigation Project (Cr. 812-NEP), the project works have been revised and the closing date has been extended to June 30, 1986. Funds provided for agricultural extension would, however, be fully utilized in FY 1983/84. The Narayani Zone Irrigation Project (Cr. 856-NEP) is expected to be completed by December 1984. Experience has shown that these projects did not, however, provide for adequate levels of extension staff especially of Subject Matter Specialists (SMS) and Agricul- tural Development Officers (ADO); most PLAAs did not possess basic minimum qualifications; definitive linkages were not established with research; little provision was made for inservice training of staff, especially SMS; and in view of the special administrative arrangements (para 1.30) the Department of Agriculture failed to provide adequate technical supervision of field staff. As a result, the extension methodology has developed slowly and consequently the extension system is only partly operative and partially effective. Nevertheless, given the encouraging results obtained so far (para 1.32 and 1.33) and in line with Nepal's objectives and strategy for increas- ing agricultural production, HMG has decided to further extend improved extension coverage to the remaining six districts of the Terai (Kanchanpur, Kalali, Bardia, Dang, Sirha and Saptari), not previously covered by IDA assisted projects, and to consolidate and strengthen agricultural extension services in the five irrigation project districts of Bara, Parsa, Rautahat, Sunsari and Morang so as to bring them in line with other districts. This will provide coverage of 19 districts of the Terai under two projects (Cr. 1100-NEP and the proposed project) and ensure coordinated management and supervision of the extension service under the administrative responsibility of DOA. As Rupandehi district is fully covered by improved extension under the ongoing Bhairawa-Lumbini Groundwater Project: Stage II (Cr. 1316-NEP, US$16.0 M, effective 1983) it is not included in the proposed project. 1.35 Since Nepal's agricultural production programs have found priority in the Bank's past and present lending programs, it would be rational for IDA to continue its assistance to improving agricultural extension and research services throughout the Terai and to promote increased crop produc- tion so vital to the country's continued progress. -12- 1.35 Since Nepal's agricultural production programs have found priority in the Bank's past and present lending programs, it would be rational for IDA to continue its assistance to improving agricultural extension and research services throughout the Terai and to promote increased crop produc- tion so vital to the country's continued progress. II. THE PROJECT A. General Description 2.01 The project would reorganize and strengthen the agricultural exten- sion service in 11 administrative districts of the Nepal Terai. The exten- sion service will provide for the development of a well trained and techni- cally competent organization with the means to reach the majority of farmers. The organization will provide the institutional framework into which all agricultural development programs, aimed at achieving early and sustained improvement in production and incomes, would be incorporated. These improve- ments in agricultural production would largely be brought about by the wide adoption of low cost and labor intensive agricultural practices, proper irrigation water management, and use of appropriate crop varieties and levels of fertilizer. The design of the project, its timing scope, relative size of project components and organization are based on the experience gdined in the implementation of similar reorganization in the irrigation project districts and in the ongoing Agricultural Extension and Research Project (Cr. 1100-NEP). The five year project would comprise: (a) Reorganization and Strengthening of Agricultural Extension Services. Provision of additional staff, offices, housing, vehicles, equipment and staff training designed to consolidate the reorganization; (b) Project Management. Strengthening and improving project manage- ment and supervision at Headquarter and at the Regional level; and (c) Project Monitoring and Evaluation. The Project Districts 2.02 The project area would include six new districts (Kanchanpur and Kailali in the Far-Western Region, Bardia and Dang in the Mid-Western Region and Sirha and Saptari in the Eastern Region) which would receive improved extension coverage for the first time and five districts of Bara, Parsa and Rautahat (Central Region) and Sunsari and Morang (Eastern Region) previously covered by IDA assisted irrigation projects. 2.03 The eleven districts cover an area of 19,000 sq.km. with a cultivated area of 780,000 ha. Total population in the project districts is 3.46 M with 490,000 farm families living in 772 panchayats (averaging 635 farm families -13- and 1,000 ha cultivated area per panchayat). The average farm size is 1.6 ha. The same general agricultural production pattern as elsewhere in the Terai is to be found in the project districts. Project Phasing 2.04 During the first project year, the agricultural extension organiza- tion would be strengthened in Bara, Parsa, Rautahat, Sunsari and Morang districts; it would be established in Kanchanpur, Kailali and Bardia dis- tricts in the second project year and in Dang, Sirha and Saptari districts during the third year (see Map IBRD 17960R). B. Detailed Features 2.05 The project would: (a) Reorganize agricultural extension in six new districts (which would receive improved extension for the first time) to provide for additional technical staff, Panchayat Level Agricultural Assistants (PLAA), and support staff so as to enable a single line of command from the Director General to PLAA and the intro- duction of regular and systematic village and farm visits to provide farmers with advice on farming practices best suited to their specific conditions; (b) Strengthen the existing extension organization in the five irrigation project districts to bring them in line with other extension districts - provision of subject matter specialists, JT, JTA and PLAA and facilities for fortnightly training; Cc) Provide frequent training of all staff; (d) Enlarge two extension training centers at Jhumka (Sunsari-Horang Project) and Parwanipur (Narayani Project); (e) Improve staffing of the offices of four Regional Directors of Agriculture by providing one full time Senior Agricultural Extension Officer for guidance to and supervision of extension activities; (f) Provide Production Officers in selected areas at subcenter level to coordinate input, credit and irrigation water supply; (g) Strengthen the Extension - Training and Planning Sections of the Director General of Agriculture to provide technical support to field operations and follow up on budget, procurement and staff- ing: (h) Construct minimum office accommodation and housing for staff; -14- (i) Furnish and equip field extension and training programs; (j) Provide vehicles and travelling allowance to ensure greater mobility of all staff; (k) Provide incremental operating costs; and (1) Undertake baseline studies in the six new districts and project monitoring and evaluation in all project districts. Agricultural Extension 2.06 The project would provide farmers, on a regular and systematic basis, with demonstrations and up-to-date advice on farming practices best suited to their specific conditions and capable of having an immediate impact on production and income. This would be achieved by programmed visits from regularly trained field staff, supported by professional advice from within the Department of Agriculture (DOA). At the village level, PLAA wouLd be the full time extension worker and would have completed about eight years of schooling and come from a farming background. PLAAs would be residents of the panchayats in which they would work but would not be regarded as per- manent and pensionable government employees. In the six new project dis- tricts (Kanchanpur, Kailali, Bardia, Dang, Sirha and Saptari), PLAAs would be mainly selected from among existing part time Agricultural Assistants (AM) who have the requisite background and qualification. In the ongoing project (para 1.31) procedures have been established for the selection of PLAAs and this would be continued. The existing procedures comprise: notification of vacancies at the Panchayat level indicating minimum qualification and experience requirements; scrutiny of applications; and an interview by a District Committee chaired by the District Agricultural Development officer with officials and concerned non officials as members. Candidates selected are from the Panchayat in which they would work and would successfully com- plete a pre-service training course (30 days) before being posted as PLAAs. In five remaining districts, the existing PLAAs and who are presently employed by Irrigation Boards would be screened and only those with requisite qualification and a good record of field work would be selected for employ- ment by DOA. At the moment, part time AA and full time PLAA are paid a fixed remuneration of Rs. 50 and Rs. 150 per month respectively. The remuneration of PLAA (Rs. 150 per month) was fixed in 1975 when improved extension was first introduced. Since that time the minimum daily wage for laborers has been increased to Rs. 10 per day. It is now necessary for PLAA remuneration to be brought into line with the minimum wage rate. At the start of nego- tiations, HMG confirmed that in order to provide an additional incentive to PLAAs, their remuneration would be increased from Rs. 150 to Rs. 300 per month effective July 16, 1985 and necessary provisions would be made in their FY 1985/86 budget which starts on July 16, 1985. Assurances were obtained during negotiations that (a) PLAAs of requisite qualification and experience would be recruited; and (b) PLAAs would be residents of the Panchayats in which they would work. -15- 2.07 In the project districts, there are 772 Panchayats and about 490,000 farm families. The number of farm families per Panchayat ranges between 524-1150 (averaging 635 per Panchayat). Each Panchayat is divided into nine wards. Initially, one PLAA would be posted to each Panchayat, but those Panchayats where populacion is widespread or in irrigated areas, more than one PLAA might be required. Provision has been made for about 80 additional PLAAs to meet the needs of more intensive coverage. Overall requirement of additional staff wouLd be reviewed during project implementation. An assurance was obtained during negotiations that HMC and IDA would review by March 31, 1987, the adequacy of staff, especially of PLAA. Thereafter, HMG would ensure that adequate numbers are employed for satisfactory implementa- tion of the project. 2.08 The Extension MethodoLogy. Under the proposed agricultural extension system, an intensive scheduled program of farm visits would be introduced. Each ward would be visited by a PLAA, on a fixed day of the week, once every two weeks. Thus, a PLAA wouLd cover five wards in one week and four wards in the next week. In most panchayats, where additional PLAAs are not provided, the number of farm families covered by one PLAA would not exceed 700. During daily visits, PLAA would spend the full day in the scheduled ward, would visit fields during morning hours, and in the afternoon, either hold meetings in the village at a pre-determir ' time or hold discussions with farmers or meet farmers in their homes. One of the three remaining working days each fortnight would be devoted to in-service training, where PLAA would discuss and Learn recommended practices to be given to farmers during the following fortnight and also bring farmer's problems to the attention of trainers. Thus, every two weeks the PLAA would spend nine days in visiting each of his nine wards and one day in training. During the two remaining days, PLAA would visit field trials, arrange special extension activities, make up visits missed because of illness or holidays, and do occasional but limited office work. All PLAAs would maintain a chart showing days for visiting each ward as well as time and place of group meetings. 2.09 It would not be possible for the PLAA to reach all farmers during field visits. Thus, under the guidance of supervisors and in consultation with the Panchayat Council and farmers themselves, PLAA would select contact farmers (7-8) from each ward. Contact farmers would be from all levels of village society, and would be selected for their potential influence and willingness to collaborate with the extension service in following recommen- dations. Changes in contact farmers would be made, especially between seasons, if they are shown to be ineffective or should they discontinue this service. PLAAs, during their field visits, would make special efforts to reach at least all contact farmers' fields, and who, in turn, would share the responsiblity of organizing and attending afternoon meeting or any other village group activity. PLAA would also invite neighboring farmers while meeting contact farmers in their fields, and visit other farmers' fields while moving from one contact farmer to another. In due course of time, most farmers in a ward would be aware of the visit day of PLAA. -16- 2.10 Within their area of operation, PLAA would concentrate on important crops focussing on practices which bring the best economic results. Ini- tially, concentration would be on improving agricultural practices and would include better land and seed bed preparation, improved nursery maintenance, use of good seed, seed treatment, timely operation (such as right time of sowing), proper spacing, weeding, etc., and use of appropriate quantities of fertilizer. In adopting better practices farmers face few risks, but will be required to work harder. Since most small farmers have surplus labor but little cash, this fits their financial status well. 2.11 Technical Support and Field Organization. PLAA would receive techni- cal support from Junior Technical Assistants (JTA) and one JTA would guide and supervise the work of 3-5 PLAAs working in three Panchayats. One Junior Technician (JT) would guide and supervise the work of three JTAs. To strengthen technical back up, the project would provide two Suoject Matter Specialists (SMSs) in each district, one each in Agronomy and Plant Protec- tion. 2.12 Each JTA would spend at least nine days in the fortnight visiting PLAA in the field. He would also help PLAAs in carrying out demonstrations and simple on-farm trials. He would attend meetings organized by PLAA and meet all of his PLAAs on a fixed day of the fortnight. This close ongoing relationship between PLAA and JTA would relieve the former of the need for formal reporting. PLAA and JTA would, however, maintain a daily diary of activities. JT would supervise the work of PLAAs and JTAs and ensure effec- tiveness of extension operations. He would spend at least four days in the week meeting his PLAA and JTA in the field. During his visits, he would be able to find out whether visits are being made as planned, inquire from farmers about visit days in their villages, messages learned, etc. Experience of work in the ongoing project districts has shown that once farmers become aware of visit schedules, they themselves become effective monitors by complaining if visits are not made regularly and in a satisfac- tory manner. 2.13 To ensure a continuous flow of cimely, locally proven and adapted farm recommendations, and adequate back-stopping and training of PLAA, JTA and JT, it would be necessary to strengthen the technical support staff at district level. Two Subject Matter Specialists (SMS) would be provided in each dis- trict (one each for Agronomy and Crop Protection). SMS would spend one-third of their time in training groups of PLAA, JTA and JT, one-third of their time in field visits providing technical support and guidance to PLAA and JTA and checking on reasons for adoption or non adoption of recommended practices, and one-third of their time in building their own stock of knowledge through a regular dialogue with research workers, carrying out simple field trials in farmers' fields, and attending short training courses. 2.14 During the last two years, DOA has implemented a PiLot Production Program in irrigated areas of Bara, Parsa, Rautahat, Chitwan, Dhanusha and Sarlahi districts under which compact blocks of 150-500 ha have been selected for intensive development using technology developed by the Cropping System Program (para 1.09). A Production Officer (PO) is in charge of each 1,000 ha -17- area (2-6 blocks) and is responsible for coordinating timely supply of seed, fertilizer, credit and irrigation. PO prepares an action plan for each production block in consultation with participating farmers and local agen- cies responsible for inputs, credit and supply of irrigation water. PO helps in the preparation of an individual farm plan for each farmer. The program has shown good results in terms of timely mobilization of inputs, credit and irrigation, adoption of improved technology and consequent increase of annual yields. A similar appr qch is being tried for rainfed lowland areas for which appropriate technology has been developed (para 1.09). To further intensify this program, the project would provide for 40 additional PO who would be located at selected subcenters/service centers and working under the district Agricultural Development Officer would organize production programs, attend bimonthly SMS workshops, and help in organizing and conducting fort- nightLy training sessions. 2.15 At the district level, there would be an Agricultural Development Officer (ADO) to supervise all extension activities. Provision has also been made for additional support staff such as an accountant and an additional clerk to assist ADO. ADO would be responsible for all extension activities in his district and make frequent visits to the field to guide extension staff, check the adoption rates of recommended practices by discussion with farmers and by checking the PLAA/JTA diaries. To free ADO from other routine activities and to allow frequent field visits so necessary to review exten- sion operations, the existing AADO would take over responsibility for report- ing and coordinating input supply arrangements. 2.16 At the Regional level, the Regional Director of Agriculture would be assisted by a Senior Agr:^ultural Extension Officer (SAEO) to provide inten- sive day-to-day support and supervision of extension activities in the Terai. SAEO for Eastern Region would be located at Biratnagar, for Central Region at Birganj, for Western Region at Bhairawa and for Mid-Western Region at Nepal- ganj. The Far-Western Region has recently been established and until the full organization is in position, SAEO for Mid-Western Region would also look after extension activities in the Far-Western Region. SAEOs would have a separate office under the project and would be assisted by minimum support staff. Staffing details are at Annex 1, Table 4. An assurance was obtained at negotiations that SAEOs for Eastern, Central and Western Regions would be appointed and be in positon by December 31, 1985 and one SAEO to look after Mid- and Far-Western Regions by August 31, 1986. 2.17 The Project Coordinator appointed under the ongoing Agricultural Extension and Research Project (Cr. 1100-NEP) would coordinate all extension activities in the 20 Terai districts. At the start of negotiations, HMC explained that the headquarters of the Project Coordinator should remain in Kathmandu instead of moving to the Terai as originally proposed inasmuch as his functions and responsibilities would be exercised best from Kathmandu rather than from a field Location. The Association accepted this explana- tion. 2.18 At DOA headquarters, in the office of the Director General of Agriculture, the project would strengthen the existing Extension-Training -18- and Planning sections. Provision has been made for five SMSs in the Exten- sion-Training section who would be responsible for special crop oriented programs (2) and training (3) and for improving the technical quality of the extension service in their areas of specialization and also help in improving the existing linkages between extension SMS and research work being done at Khumaltar in Kathmandu. The Planning section of DOA would be strengthened to follow up on budget, procurement, staffing and other policy matters needing guidance and decision by DOA and XOA headquarters. Details are at Annex 1, Table 4. 2.19 Staffing and Incentives. Much of the extension staff required under the project is presently working in DOA or for Irrigation Boards. Details are summarized below: Table 2.1: Incremental Extension Staff Requirements Total Nos. Total Available Additional Post Required DOA Irri. 3oard Total Needed PLAA 850 - - - 850 JTA 277 175 22 197 80 JT 99 84 5 89 10 Production Oficer 52 9 - 9 43 SMS 27 - - - 27 AADO 11 11 - 11 - ADO 11 5 - 5 6 SAEO 4 - - - 4 2.20 In the ongoing project (Cr. 1100-NEP), most of the staff positions including all SMS (excluding ROO) have been filled. The quality of SMS is being improved through inservice training :,nd special short courses. Availability of additional SMS and other staff for the project would, there- fore, not be a constraint. Adequate numbers of agricultural graduates are trained at the Institute of Agriculture and Animal Sciences, Rampur and postgraduate fellowships are available to DOA staff through programs spon- sored by the Colombo Plan and USAID. 2.21 Assurances were obtained during negotiations that (a) all incremental staff would be appointed according to the agreed schedule at Annex 1, Table 9, (b) upon completion of the project, HMG would maintain the incremental staff so as to ensure continued achievement of the objectives of the project, (c) extension staff would work exclusively on agricultural extension and they would not be given any other responsibility, and (d) all speciaL production programs planned for project districts and throughout the Terai would be implemented utilizing the extension methodology and organization. -19- 2.22 Extension work in project districts would be carried out under dif- ficult conditions. Experience in similar projects elsewhere and in ongoing project areas has shown that staff have to work harder and live in remote areas. Provision of housing, motorcycles and bicycles (paras 2.28 and 2.29), and bicycle allowance (para 2.29) would provide added incentive to staff to work more effectively. An understanding was reached at negotiations that HMG is reviewing the issue of monthly project allowance for extension workers as an added incentive and that a decision would be taken in due course. 2.23 Training. The project would strengthen training programs for exten- sion and research workers and administrative staff. The keynote would be the continuous fortnightly training of PLAAs, JTAs and JTs by SMS who are conver- sant with the latest research results, active in the identification of local problems, and who participate in local verification trials. The entire training effort would be focussed on making these fortnightly sessions as effective as possible. Training would be practical and concentrate on the few specific recommendations relevant to farming operations in the coming fortnight. Ample time would be provided for PLAAs and JTAs to study the recommendations and practice how they would convince farmers to adopt them. They would also have an opportunity to raise and discuss problems encountered in the past two weeks. On alternate weeks PLAAs would meet with JTAs to review progress. Other in-service training courses for PLAAs, JTAs and JTs would include a pre-season workshop/training session for each major season and one or two special short courses per year on a specific technical topic. In each project district, a number of small training subcenters would be established for fortnightly training of extension staff and which would not exceed six in any one district. Overall, 56 such training subcenters would be required. In addition, the facilities available at the Pilot Farm in the Mahakali Irrigation Project (Kanchanpur district) would be used for fort- nightly training. 2.24 All PLAA would receive an intensive pre-service training course (35 days). Higher level staff would require a range of introductory training programs as well. Pre-season training of PLAAs would be a regular occur- rence, with similar sessions held for JTAs and JTs. Also before each season there would be a workshop at the Regional Research Station attended by ADOs, SMSs, Research Outreach Officer (ROO) and research workers. During the workshop, research workers and extension staff would review the previous season's research results, specify recommendations and plan the coming season's research and field trial programs (paras 4.04-4.10). 2.25 Improving the knowledge of SMS is crucial to the success of the project. For this, there would be a training session held once i.- two months at the Regional Research Station of each region. The session would be attended by all SMS in the region, ADO, ROO and other research staff. The main objective would be to review results achieved, modify recommendations as necessary to suit prevailing field conditions, review findings and progress of field trials and develop suggestions for future research topics and field trials. The project also provides for special short courses for all staff, especially SMS, to build up their professional competence (para 4.11). Details are given in Annex 2. -20- 2.26 Training facilities are available at the four Regional Training Centers (RTC): Jhumka (Eastern Region), Janakpur (Central Region), Bhairawa (Western Region) and Nepalganj (Mid-Western Region), and at the new training center at Parwanipur (Bara district). RTC at Janakpur is functioning, RTC buildings at Nepalganj and Jhumka are under construction and the Bhairawa RTC will be constructed under the ongoing Agricultural Extension and Research Project. The Parwanipur Training Center has been completed recently. However, various training prngrams are already being conducted at these locations also making use of the facilities available at Regional Research Stations. 2.27 The project would provide funds for construction, equipping and furnishing of 40 small training subcenter buildings (16 buildings already exist) each with a training hall, store and residence for JT. Each building would have an area of 150 sq.m costing NRs. 450,000. Provisioni would also be made for expanding the facilities at Jhumka and Parwanipur training centers, developed under the Bank assisted irrigation projects, by providing incremen- tal staff and supplementing the equipment and furniture available. Details are given in Annex 1, Tables 1 to 4. 2.28 Housing and Offices. Under the reorganized extension service, exten- sion staff would be required to make regular and frequent visits to farmers. Consequently, it is desirable for them to live in or near their areas of work. To provide housing for all staff would be beyond the implementation capacity of DOA and the financial resources of HMG, consequently, modest provision has been made for housing (NRs. 26.22 M) for 55 JTAs, 15 JTs, 8 AADOs, 6 ADOs, 22 SMSs, 4 SAEOs, and 37 support staff. Provision has also been made for construction of offices for ADO(2) and SAEO(4) and renovation of the existing building at Parwanipur Training Center. Most civil works would be in village areas. As in case of the ongoing project, construction of JTA and officer staff quarters, subcenter buildings, and offices would be on Panchayat owned land and not involve acquisition. Location of sites has been tentatively decided. The project would provide funds for hiring a consultant architect to prepare detailed estimates for buildings located in the interior areas. Assurances were obtained during negotiations that HMC would (a) furnish to IDA by June 30, 1986, information on location of sites for all civil works to be financed under the project, and (b) appoint the consulting architect by December 31, 1985. Details are at Annex 1, Table 2. 2.29 Transport. The efficient operation of an extension service depends on the degree of contact between all levels of the extension hierarchy and with farmers. Mobility is essential to ensure this and thus funds would be made available for loans to JTAs for purchase of bicycles. The project would also provide a monthly allowance (Rs. 30) to JTA to ensure satisfactory maintenance of bicycles. Assurances were obtained during negotiations that terms and conditions of bicycles loans and the amount of the maintenance allowance would be sufficient to ensure their purchase and use. Motorcycles would be provided to JTs(83), SMSs(22), Production Officerst27) Project Coordinator(l), Headquarter Support Unit(4) and for use at two training centers(4) and 14 jeeps (4-wheel drive) would be provided to districts which -21- do not already have a vehicle(8), SAOs(4), Jhunka RTC(1) and the Project Coordinator(l)_ Two minibuses would be purchased for use at the Jhumka and Parwanipur training centers. Details are given in Annex 1, Table 3. 2.30 Equipment and Furniture. The project would provide office equipment and furniture, and simple audio visual equipment to support training sessions and enhance field operations. Emphasis wouLd be on low cost aids such as charts, flipcharts and flannelgraphs which extnusion staff can design them- selves and modify to suit local conditions. Otfice, hostel and audio visual equipment would be added at the training centers at Jhumka and Parwanipur. Details are given at Annex 1, Table 3. Strengthening of Engineering Unit 2.31 The Engineering Unit of DOA has been strengthened under the ongoing Agricultural Extension and Research Project (Cr. 1100-NEP). This unit h-s performed satisfactorily in designing, preparation of estimates, tendering and supervision of construction of civil works at reseazch stations and would be further strengthened under the project by adding one Executive Engineer, four Assistant Engineers, two draftsmen and 14 overseers to handle the new construction program and provide better supervision of ongoing works. Details are given in Annex 1, Tables 2 to 4. Monitoring and Evaluation 2.32 Under the ongoing Agricultural Extension and Research Project, monitoring and evaluation of project activities have been initiated in order to generate data with which to measure output, effect and impact of project actions, thus providing management guidance to those responsible for project implementation. Monitoring by continuous gathering of information on project inputs and activities (timely provision of staff, vehicles, equipment and buildings) is being done; a benchmark study has been completed in eight districts (establishing data on the agricultural conditions of farmers, agricultural practices used, current use of inputs and credit and crop yields). In addition, an indepth monitoring survey has been carried oat to evaluate the performance of PLAA and JTA. Under the project, further monitoring/evaluation surveys would be carried out on a regular basis and covering quality of training programs, development of appropriate recommenda- tions, regularity and quality of visits, adoption of recommendations, increased production and consequent increase in farm incomes, and effective- ness of Production Officers. 2.33 Monitoring and evaluation in project districts would be the respon- sibility of the Evaluation and Program Analysis Division of MOA. Funds would be provided for (a) benchmark studies in six new project districts, and (b) monitoring surveys in each cropping season to generate information that would provide project management with data on quality of training, development of appropriate recommendations, regularity and quality of visits, adoption rates of recommendations, and effectiveness of Production Officers, and (c) monitoring/evaluation surveys to generate additional inforkation and to provide data on crop yields, use of key inputs, and increased production. -22- Benchmark studies would be simple in content and involve data concerning cropping patterns, yield data, availability of inputs, marketing facilities, present status of extension support and its impact, and farmers technological constraints. This information would set the scene for the proposed extension and research support and also provide data for project evaluation studies/surveys. MOA woull commission such studies/surveys by organizations existing in Nepal. Assurances were obtained during negotiations that HMGN would: (a) complete benchmark studies in six new project districts by (Kanchanpur, Kailall, Bardia, Dane and Saptari) by July 31, 1987, (b) monitor project activities and progress on a semi-annual basis, and (c) carry out evaluation surveys in a form acceptable to IDA and forward results to IDA twice a year. Details are given in Annex 1, Table 7. III. COST ESTIMATES AND FINANCING A. Cost Estimates 3.01 Total project costs over the five-year deveLopment period (1985-90) are estimated at NRs. 157.9 M (US$8.5 M) of which the foreign exchange com- ponent is estimated at US$ 3.2 M (about 38 percent of total project cost). Duties and taxes included in total costs are estimated at US$56,600 equiv- alent. A detailed breakdown of project costs is presented in Annex 1, Tables 1 to 6. The estimated costs by component are summarized below: Table 3.1: Summary of Costs by Component 1/ Z Total ---NRs. Million--- --US$ Million---- Z Foreign Base Local Foreign Total Local Foreign Total Exchange Costs Civil Works 24.1 23.9 48.0 1.3 1.3 2.6 50.0 40.0 Vehicles and Equipment 3.7 14.5 18.2 0.2 0.8 1.0 80.0 15.0 InEremental Staff 28.8 - 28.8 1.6 - 1.6 - 24.0 Incremental Operating Costs 8.5 6.4 14.8 0.5 0.3 0.8 43.0 12.0 Training Costs 7.4 - 7.4 0.4 - 0.4 - 6.0 Monitoring and Evaluation 2.5 - 2.5 0.1 - 0.1 - 2.0 Total BASELINE COSTS 74.9 44.8 119.7 4.0 2.4 6.5 37.0 100.0 Physical Contingencies 6.5 6.4 12.9 0.4 0.3 0.7 50.0 11.0 Price Contingencies 16.6 8.6 25.3 0.9 0.5 1.4 34.0 21.0 Total PROJECT COSTS 98.0 59.8 157.9 5.3 3.2 8.5 38.0 132.0 1/ Discrepancies due to rounding. 3.02 Basis of Cost Estimates. Base costs refer to prices prevailing in February 1985, and were calculated on the following basis: -23- (a) Construction costs - on facilities of similar nature, currently bid or completed for the ongoing project Cr. 1100-NEP). The average cost per sq.meter was estimated at NRs. 3,000; (b) Equipment and furniture - on purchases made and tenders com- pleted for the ongoing project; (c) Salaries and operating costs - on detailed breakdown of current rates; (d) Training costs - on actual requirements. 3.03 Contingency Allowances. Estimated project costs include physical contingencies estimated at 15 percent: for civil works, vehicles, equipment, furniture, training and monitoring and evaluation and 10 percent for other expenditure. Price contingencies amounting to about 21 percent of baseline costs have been applied in accordance with current Bank estimates of expected inflation rates which are given below: Table 3.2: Price Escalation Estimates (Z per year) 1985186 1986/87 1987/88 1988/89 1989/90 Local (Nepal) 6.3 7.8 8.0 8.0 8.0 Foreign 6.3 7.8 8.0 8.0 8.0 B. Proposed Financing 3.04 Financing of total project costs of NRs. 157.90 H (US$ 8.5 M) includ- ing contingencies, but net of taxes and duties, would be provided as follows: Table 3.3: Proposed Financing Foreign Exchange Local Currency Total US$ M z US$ M Z US$ M Z IDA 3.2 100 4.0 75 7.2 85 HMGN - - 1.3 25 1.3 15 3.2 100 5.3 100 8.5 100 The proposed IDA credit of US$ 7.2 M would be to HMG on standard terms and conditions and would finance about 85 percent of project costs including all foreign exchange costs. ILA funds would be channeled through the Ministry of Finance to MOA as annual budget subventions. During negotiations an understanding was reached that HEG would (a) make adequate budget provision each year for implementation of the project, and (b) arrange for timely release of funds each year to project districts and units. -24- C. Procurement 3.05 Procurement arrangements are summarized in the table below: Table 3.4: Procurement Arrangements Procurement Method Total ICB LCB Other NA Cost Civil Works - 3.60 - - 3.60 (3.20) (3.20) Vehicles, Equipment 0.96 0.24 - - 1.20 and Furniture (0.96) (0.18) - - (1.14) Incremental Staff and - - - 3.00 3.00 Operating Costs (2.06) (2.06) Training - - - 0.60 0.60 (0.60) (0.60) Monitoring and Evaluation - - - 0.20 0.20 (0.20) (0.20) Total 0.96 3.84 - 3.80 8.50 (0.96) (3.38) (2.86) (7.20) Figures in parenthesis are the amounts to be financed bv the Credit. 3.06 Civil Works. All civil works (US$3.6 M) would be unsuitable for International Competitive Bidding (ICB) because they would be individually small and widely distributed throughout the project area. Accordingly, construction of buildings would be awarded to local contractors following Local Competitive Bidding (LCB) procedures and supervised by the Agricultural Engineering Division of DOA and in accordance with HMG procedures, which were found at appraisal to be satisfactory to IDA and which provide for foreign bidders to participate. 3.07 Vehicles and Equipment. Motor vehicles, motorcycles, cycles and equipment (US$0.96 M) would be grouped in appropriate bidding packages and procured by ICB in accordance with Bank Guidelines. Qualifying domestic manufacturers would receive a preference in bid evaluation of 15 percent or the import duty, whichever is the lower. Where orders are valued at less than US$30,000 and totalling no more than US$200,000, items would be procured under LCB procedures and which were found at appraisal to be satisfactory to IDA. Items such as furniture, books, training material, and office require- ments (US$ 0.24 H) would be purchased under established local bidding proce- dures. 3.08 Contract Review. Bidding documents for civil works contracts costing US$100,000 or more and for vehicles, equipment and other goods and services costing US$50,000 or more would be submitted to IDA for review prior to -25- invitation to bid. This would result in about 15% of contracts covering about 40 percent of the value of all contracts being subject to prior review. 3.09 The balance of project costs (US$ 3.7 M) would be staff salaries and related expenditures (US$ 2.9 M), training (US$ 0.6 M), and monitoring and evaluation (US$ 0.2 M). 3.10 Assurances were obtained at negotiations that procurement procedures set out above would be followed. D. Disbursements, Accounts, and Audit Disbursements 3.11 Disburbursement under the credit would be completed by December 31, 1991, over a period of 5 1/2 years, which is 2 1/2 years shorter than the average disbursement profile for IDA assisted agricultural projects Bankwide. An estimated disbursement schedule is presented in Annex 3, Table 2. This reduction is justified as EMG has agreed to open a Special Account (para 3.09), project authorities have already gained experience in ICB and LCB procedures, all civil works designs exist, and delays in payments of project expenditures due to slow release of government funds would be minimized as the accounting arrangements and expenditure reporting system are being presently streamlined (para 3.16). Disbursements from the proceeds of the credit would finance various categories in the following manner: (a) 81 percent of expenditures for civil works (US$ 2.90 million); (b) 100 percent of foreign expenditures for directly imported vehicles and equipment, and 100 percent of local expenditures (ex-factory), and 75 percent for other goods (books, training material, office equipment, and furniture) procured locally (US$ 1.14 million); (c) 48 percent of total expenditure on total staff salaries and allowances equal to 75 percent of incremental staff salaries and allowances disbursed at a declining scale of 100 percent expen- ditures on total salaries and allowances in FY86, 70 percent in FY87, 50 percent in FY88, 30 percent in FY89 and 20 percent in FY89 (US$ 1.43 million); (d) 45 percent of expenditures for project operating costs (US$ 0.50 million); (e) 100 percent of expenditure on training and monitoring and evaluation (US$ 0.8 million); and (f) Unallocated (US$ 430,000). -26- 3.12 Disbursements against items (c), (d) and (e) would be made against HMG statements of expenditures, the documentation for which would not be submitted to IDA for review but would be retained by HMG. These documents would be available for inspection by IDA during the course of project review missions. Disbursements against items (a), (b) and (f) would be fully docu- mented. Assurances covering the foregoing were obtained during negotiations. Special Account 3.13 In order to facilitate prefinancing of project expenditures under categories (a), (b), (c), (d) and (e) (para 3.11), a Special Account (SA) would be opened by HMG in the Nepal Rastra Bank (NRB). An initial deposit of US$300,000 (SDR 310,000) would be made in SA by IDA upon receipt of a direct payment application from HMG supported by appropriate evidence that such an account (SA) has been opened. Payments out of the special account would be made according to procedures agreed at negotiations. HMG would furnish to IDA requests for replenishment of SA at specified intervals. On the basis of such requests, IDA would withdraw from the Credit and deposit in SA such amounts as required to replenish SA but not exceeding the amount of payments made for eligible expenditures. Each such deposit would be withdrawn by IDA from the Credit under the respective categories (para 3.11), and in respec- tive equivalent amounts, as shall have been justified by the evidence sup- porting the request for such a deposit. HMG would furnish to IDA such evidence showing that payment was made for eligible expenditures. Recovery of the initial deposit by IDA would commence when the unwithdrawn amounts in the Credit had been reduced to double the initial deposit to the account. Recovery would be by reimbursing only 50% of the amounts claimed during the recovery period, until the advance has been fully recovered. HMG would refund to IDA any amount outstanding in SA and which would not be required to cover further payments for eligible expenditures. During negotiations 1MG and IDA reached a decision on establishing a Special Account and operating procedures. Accounts and Audit 3.14 The project would be subject to normal government financial control and audit procedures which are satisfactory. Accounts staff would be strengthened at district, project headquarters and DOA headquarters for proper maintenance of accounts and prompt reporting of expenditures. Assurances were obtained during negotiations that HMG would: (a) record all project expenditure under a separate head of account in accordance with sound accounting practices; (b) furnish to the Association as soon as available but not later than nine months after the end of each fiscal year, certified copies of financial statements for the year; (c) cause the records and accounts to be audited, in accordance with sound auditing principles consistently applied, by independent auditors acceptable to the Association; and -27- (d) provide a statement by such auditors that funds disbursed against statements of expenditure had been used for the purpose for which they were provided. 3.15 In order to ensure that audit covenants in IDA assisted projects are complied with on time, IDA has been assisting the Financial Comptroller General, HMG in a review of present accounting and audit procedures. As a result, a Project Accounting Manual has been prepared to facilitate prepara- tion of a Quarterly Commitment Statements giving details of (a) funds released during the quarter, (b) expenditure incurred, and (c) reimbursement claimed from IDA. This system would help the timely re'_ase of funds to project entities, as production of Quarterly Commitment Statements are condi- tional on further release of funds. Furthermore, such procedures would hasten reimbursement from IDA on a continuous basis, and preparation of an annual consolidated financial statement to enable the Auditor General to complete the audit of project accounts. The methodology contained in the Project Accounting Manual has recently been introduced in two ongoing IDA assisted projects, the Agricultural Extension and Research Project (Cr. 1100-NEP) and Hill Food Production Project (Cr. 1101-NEP), with satis- factory results. IV. ORGANIZATION AND MANANCEMENT Project Implementation 4.01 Overall responsibility for project implementation would be with the Director General of Agriculture assisted at headquarters by two Deputy Direc- tors General, one each for Crop Development and Extension and Services. Administrative control of agricultural extension staff working in the dis- tricts of Morang, Sunsari, Rautahat, Parsa, and Bara; in Rupandehi district except the command area (about 10,000 ha) of the Bhairawa-Lumbini Groundwater Project Stage II; and in the 6,000 ha area of Mahakali Irrigation Project in Kanchanpur district would be transferred from the respective Irrigation Boards to the Department of Agriculture. An exception has been made in respect of the command area (about 10,000 ha) of the Bhairawa-Lumbini Groundwater Project because agricultural staff in this area (who are normally supposed to perform only extension related activities) have assumed respon- sibility for input supply and distribution, and on-farm management of tubewell water in addition to their crop production advisory work and that these arrangements shouLd not be disturbed until the project is fully opera- tional, in three or four years time. MOA, and the Director General of Irrigation, are agreeable to the transfer of administrative control. At the start of negotiations, HMG confirmed that necessary action had been taken to (a) transfer administrative control over agricultural staff working in irrigation project districts, except the command area (about 10,000 ha) of the Bhairawa-Lumbini Groundwater Project: Stage II, to DOA, and (b) complete other formalities in respect of the transfer of budgetary control, transfer of assets to DOA, and arrangements for absorption into DOA staff directly appointed by the Irrigation Boards. -28- 4.02 At the Regional level, the Regional Director of Agriculture would continue to be responsible for the day-to-day operation of all district extension activities falling under his jurisdiction. Each Regional Director (Eastern, Central, Western and Mid-Western Regions) would be assisted by a SAEO who would specifically supervise and support extension activities. SAEO of Mid-Western Region would also be responsible for extension activities in the Far-Western Region (para 2.16). The existing Project Coordinator, under the Director General of Agriculture, would coordinate the implementation of project supported extension activities. Working through the Regional Direc- tors of Agriculture and SAEO, he would provide the necessary overall guidance to field operations. National Level Coordination 4.03 Coordination at the national level between extension, research and allied support agencies would be ensured through the existing Coordination and Progress Review Committee chaired by the Secretary MOA. The Committee, which meets monthly, consists of the Directors General of Agriculture and Livestock Development, the Deputy Directors General, and representatives of credit, input, and marketing organizations. The Committee would also invite representatives from the Ministry of Finance and National Planning Commission to participate in the meetings. Linkages Between Extension and Research 4.04 As neither research nor extension can function efficiently without close cooperation, it would be necessary to formalize the responsibilities of both agencies. The research wing of DOA would assume full responsibility for the development of suitable new technology, while the extension service wouLd have responsibility for the transfer of technology to farmers, includ- ing widespread testing of research recommendations, with the help of research, on farmers' fields. The research organization would continue to identify and select improved varieties of crops, and also identify economi- cally appropriate practices directed to substantially increasing crop produc- tion and, at the same time, lowering farmers' risk. Selected varieties and production practices, would then be tested at regional research stations, substations, the Pilot Farm established in the Mahakali Irrigation Project area, and on farmers' fields. The project would provide funds for field testing of research results and for adaptive trials on farmers' fields. Research staff would work closely with extension staff and accompany them during field visits to identify and diagonize field problems, especially SMS, as much of the work at regional stations would be in response to the needs of local extension staff and farmers. The extension staff would work with research workers in carrying out a program of field trials and analyzing and interpreting the results. Under the IDA assisted Agricultural Extension and Research Project (Cr. 1100-NEP) and the Cash Crop Development Project (Cr. 1339-NEP), research facilities in the Terai have been strengthened (paras 1.10 and 1.11) to meet the above objectives. -29- 4.05 Strengthening of arrangements for close coordination between research and extension would also be promoted through Central and District level committees, and regional workshops (paras 4.06 to 4.09). 4.06 Central Technical Committee (CTC). This committee would comprise the Director General of Agriculture, Deputy Directors General of Research and Extension, Project Coordinator, Regional Research Coordinators and senior research staff. The DDG (Research) would be the secretary. CTC would meet twice a year and provide a formal mechanism for review of research and field trials, and for review of future research programs and extension recommenda- tions made by District Technical Committees and at RegionaL Workshops. 4.07 District Technical Committee (DTC). Each Committee would be chaired by the Agricultural Development Officer of the district and comprise district field staff, SMS, Research Outreach Officer, research workers, irrigation staff and farmers' representatives. Local officers of Irrigation Boards/Department would participate in the meeting to decide on the action plan for intensive work in irrigated areas. DTC would meet at lease twice a year to review adoption rates in the previous season and suggest recommenda- tions for agricultural practices, including the identification of research priorities and adaptive trial needs, for discussion at the Regional Workshops. 4.08 Assurances were obtained during negotiations that DTC would be estab- lished in the six irrigation project districts and six new districts by December 31, 1985, and meet thereafter at least twice every year. 4.09 Regional Workshops. Twice a year, regional workshops would be organized at each Regional Research Station by the Regional Research Coor- dinator, well in advance of the summer and winter crop seasons. The workshops would include research workers, Regional Director of Agriculture, and extension staff, and would discuss the implications of recommendations of DTC on extension activities including adoption rates of recommendations and reasons for non adoption, partial adoption and full adoption, adaptive trials, and research priorities, and finalize these after considering research data and field experience. 4.10 The evolution of extension recommendations would be as under: District Technical Committee Reviews adoption rates of previous ADOiSMS/ROO/Farmers/Research/ season, adaptive research, and trials Irrigation to propose recommendations and sug- gests field trial program, and action plan for work in irrigated areas. Regional Workshop Assembles proposed recommendations Research and Extension from DTC. Frames recommendations Staff of Region after consideration of research data, economic constraints, results of field trials, and an analysis of adoption rates. -30- Central Technical Committee Reviews proposed recommendations DC/DDG/RRCISenior Research developed by regional workshops. Staff Approves or suggests modifications before returning to DTC/RRS for implementation. District Technical Committee Considers suggestions of CTC and ADO/SMS/ROO/FarmersJResearch/ finalizes recommendations. Formulates Irrigation specific fortnightly recommendations. These will form the basis of fort- nightly training sessions after suitable modifications by SMS at the bimonthly workshop training. Bimonthly Workshop Bimonthly Workshop will modify SMS/ROO/Research Staff/ADO recommendations made at preseason (once in two months) training to suit local conditions, review findings of field trials and training techniques, and prepare lesson plans for fortnightly training. Fortnightly Training Discuss and finalize recommendations PLAA/JTA/JT/SMS for next fortnight. Training 4.11 Continuous practical training of PLAA, JTA and JT is crucial to project success. The keynote is the training of SMS, who have to be conver- sant with the latest research results, be active in the identification of local problems, and participate in local verification trials. Research workers would assist in the training of SMS in which ADO and AADO would also participate. Besides the bimonthly workshops, SMS would participate in special short courses in water management, crop oriented training, technology for rainfed farming and crop protection. These programs would be conducted under actual field conditions. Details of various inservice training programs are at Annex 2. V. BENEFITS, JUSTIFICATION AND RISKS 5.01 Total project costs over the five year development period, excluding price contingencies, amount to US$6.5 M, which is US$5.5 per ha of cropped Land or about US$13.27 per farm family, assuming 490,000 farm families. Incremental costs after the project development period, to be met from HMG budget resources, would be about US$0.66 M annually (less than 2 percent of annual development expenditure for Agriculture) or US$1.4 per farm family. 5.02 Economic Benefits. Attributing a precise level of benefits to this type of project is difficult since it is not possible to determine what -31- proportion of benefits are due to extension alone and what are due to addi- tional purchased inputs and other factors. In practice, it is the combina- tion of a number of factors, with extension playing the role of a catalyst, that brings the desired benefits. It is also difficult to estimate accept- ance rate of recommended practices. However, since the project relies primarily on reorganization and strengthening of an existing extension struc- ture, the incremental cost is low per hectare and per farm family. Hence, even very small production increase in the project areas would generate a high rate of return. The project would generate a 50 percent rate of return if, by 1992, yields of paddy (628,000 ha), maize (90,000 ha), wheat (195,000 ha), pulses (57,000 ha) and oilseeds (67,000 ha) and which cover about 80 percent of cropped land, increase by only 52 kg/ha, 47 kg/ha, 26 kg/ha, 17 kg/ha and 17 kg/ha respectively, over at least 50 percent of cropped land, and which requires an increase of 2.76 percent over current yield levels of all five crops. Details are given at Annex 4. Yield increases have exceeded this level where the extension system has been operating effectively for a few years. One significant feature of the system is that the practices initially stressed by the extension service focus on improving cultural practices (timely operations, good land preparation, proper seed rates, line sowing and weeding) to maintain adequate and healthy plant populations over unit area cultivated; as these operations usually involve more work and little cash outlay, they are particularly well-suited to the needs of many small farmers. 5.03 Project Risks. Risks due to administrative changes are relatively low because all extension staff would be under the control of DOA and this arrangement would ensure a single line of administrative command thus reduc- ing the problems of dual control inherent in past arrangements. Staff chan- ges in the upper ranks of government are frequent and there is the additional risk of lack of sustained, informed and motivated management. To avoid this, it would be necessary for IDA to continue to supervise these projects closely and frequently and provide constant encouragement and assistance to HMG until the principles of the extension reform become fully accepted and permanently institutionalized. 5.04 Other risks are mi.i.mal. Experience in the Terai where the reformed agricultural extension system has been introduced shows that farmers' respon- siveness to recommendations has been good wherever visits by extension workers are made :.ystematically and where PLAA and JTA have gained confidence in their own professional ability to introduce improved knowledge and skills. Furthermore, the ability of the extension service to develop and disseminate recommendations leading to yield increases well above the level needed for a 50 percent rate of return has been demonstrated adequately. The Cropping System Program has evolved suitable technology for rainfed and irrigated areas (para 1.09) which has been tested and refined to suit different farming situations. Progressive farmers who have adopted the technology have already obtained higher yields. Substantial yield increases are, therefore, possible even in the process of bringing the production level of average farmers up to that of the progressive farmers. To reduce the risk of technological con- straints lowering anticipated project benefits, research programs in the -32- Terai have already been strengthened and adequate provision exists for field testing of research results. VI. AGREEMENTS REACHED AND RECOMMENDATIONS 6.01 During negotiations, assurances were obtained from HMG on the follow- ing matters: (a) that (i) PLAA of requisite qualification and experience would be recruited, and (ii) PLAA would be residents of the panchayats in which they would work (para 2.06); (b) HMG and IDA would review by March 31, 1987 the adequacy of staff, especially of PLAA, and ensure thereafter that adequate numbers are employed for satisfactory implementation of the project (para 2.07); (c) SAEOs for Eastern, Central and Western regions would be appointed and be in position by December 31, 1985 and one SAEO for Hid and Far-Western Regions by August 31, 1986 (para 2.16); (d) that (i) all incremental staff would be appointed according to the agreed schedule, (ii) upon completion of the project, HMG would maintain the level of incremental staff to continue to achieve the objectives of the project, (iii) extension staff would work exclusively for agricultural extension and they would not be given any other responsibility, and (iv) all special production programs planned for the project districts and throughout the Terai would be implemented utilizing the exten- sion methodology and organization (para 2.21); (e) that HMG would (i) furnish to IDA by June 30, 1986 information on location of sites for all civil works to be financed under the project, and (ii) appoint the consulting Architect by Decem- ber 31, 1985 (para 2.28); Cf) terms and conditions of bicycles loans and the amount of the maintenance allowance would be sufficient to ensure their pur- chase and use (para 2.29); (g) would (i) complete benchmark studies in six new project dis- tricts by July 31, 1987, (ii) monitor project activities and progress on a semi-annual basis, and (iii) carry out evaluation surveys in a form acceptable to IDA and forward results to IDA twice a year (para 2.33); (h) follow the procurement procedures set out in paras 3.06 to 3.08 (para 3.10); -33- (i) in order to facilitate prefinancing of project expenditures a Special Account would be established by HMG in the Nepal Rastra Bank (para 3.13); (j) follow the disbursement procedures set out in paras 3.11 and 3.12; (k) separate accounts would be kept and audited annually by an independent auditor acceptable to IDA and financial statement for the year would be certified and submitted to IDA within nine months after the close of the fiscal year (para 3.14); and (1) District Technical Committees would be established in project districts by December 31, 1985 and meet thereafter at least twice every year (para 4.08). 6.02 Subject to the above conditions and assurances, the proposed project constitutes a suitable basis for an IDA credit of US$ 7.2 million (SDR 7.4) to His Majesty's Government of Nepal. -34- ANNEX 1 Table 1 NEPAL AGRICULTURAL EXTENSION PROJECT II Suasarv Acronmts hb Year tNRs, '000) bas, Cots Foreign Exchane 95/06 86/97 97/88 88/99 89/90 Total % Amount 20=mmanna =gammum nc-nm am-n ummaumm a mamumm ~ma mamas I. INWESTHENT COSTS A. CIVIL WORKS 1. aFrICE BUILDINGS - 7t860.0 89760.0 4P845.0 - 21,461.0 50.0 10,732.5 2. HOUSING - 7,000 10P1250 9%045.0 - 26P220.0 50.0 13t110.0 3. TRAINING - 100.0 - - - 100.0 50.0 50.0 4. ARCHITECT FEE 100.0 100.0 - - - 200.0 0.0 0.0 Sub-Total CIVIL MORKS 100.0 15l10.0 199985.0 13:890.0 - 47,985.0 49.9 23,892.5 B. VEHICLES ND EQUIPIENT t. VEHICLES 2,427.5 3:775.0 1:975.0 - - 89077.5 95.0 7o673.6 2. OFFICE EQUIPMENT 780.0 360.0 165.0 - - 1,305.0 80.0 19044.0 3. FURNITtE 1"90.0 1,35.0 1,075.0 200.0 - 49220,0 40.0 1P688.0 4. AUDIO VISUALS AND OTHER EOUIPHENT 1,993.8 19567.5 1.110.2 - - 4,561.5 89.9 49099.7 Sub-Total VEHICLES AND EQUIPMENT 6,681.3 7,057.5 4,225.2 200.0 - 18164.0 79.9 14505.3 Total INVESTMENT COSTS 6.781.3 22.167.5 23:110.2 14:090.0 - 66:149.0 58.0 38,397.8 II. RECIRRENT COSTS A. SALARIES AND ALLWbMCE 1. EXTENSION STAFF 2,735.4 3,57.6 5,141.2 5P5S5.5 5,555.5 22,560.2 0.0 0.0 2. TRAINING STAFF 134.1 149.5 149.5 149.5 149.5 732.1 0.0 0.0 3. SUPPORT STAFF S40.7 M.6 964.1 964.1 964.1 4.Z25.6 0.0 0.0 4. ENGINEERING STAFF 212.0 275.7 275*7 275.7 275.7 1,31498 0.0 0.0 Sub-Total SALARIES AND ALLIIANCE 3.622.2 4,790.4 6:530.5 69944.8 644.98 289832.7 0.0 0.0 B. OPERATING CUSTS 1. OFfICE AN EXTENSION MATERIAL 423.8 548.5 77.8 817.5 817.5 3.386.1 20.0 677.2 2. TRAUEL AND 011CR EXPENDITUIE 522.8 748.4 931.2 937.2 937.2 4:076.8 10.0 407.7 3. OFFICE REMT 252.0 348.0 388.0 388.0 4C.ķi 1:416.0 0.0 o.n 4. VEHICLE oPRATnIN COSTS 480.0 875.0 1,345.0 1550.0 1,550.0 5900.0 ?0.0 5220.0 5. FIELD TRIALS 20.0 30.0 40.0 40.0 40.0 170.0 50.0 85.0 Sub-Total OPERATING COSTS 1:698.6 2,549.9 3,483.0 30732.7 39384.7 14v648.9 43.0 6.389.9 C. TRAINING COSTS 967.5 1,569.0 1,678.0 1:603.0 1,603." 7i420.5 0.0 0.0 D. NOMITtNG AND EVALUATION 675.0 675.0 300.0 400.0 400.; 2:450.0 0.0 0.0 Total RECURRENT COSTS 69963.3 9,584.3 11,991.5 12:680.5 12:332.ķ 53:52.1 11.9 6.389.9 TOtal DASELImE COSTS 13:744.6 31,751.8 354101.7 2h:770.5 12t332.5 1190701.1 37.4 44,787.7 Pthnical Continancies 1,433.4 3.916.7 4P111,5 20797.2 639.9 12:807.9 49.6 6.399.7 Price CantUmncuis 478.1 39725.8 7:519.2 8:485.7 5:019.6 25.268.4 34.1 83624.2 Totl PROJECT COSTS 15.656.1 39:394.3 46732.4 38,043.5 19.031.0 1579857.4 37.9 594910.5 Z*f *r.laai sas Zuan ZSina nGma cassaX Taxes 136.0 199.6 239.5 228.1 243.1 12046.2 0.0 0.0 Foreign Exchanre 6.95.3 189092.5 19,S00.2 12:765.6 2,556.9 59,910.5 0.0 0.0 February 19, 195 11:05 -35- ANNEX 1 Table 1 Page 2 NEPAL AGRICULTURAL EXTENSION PROJECT II Recurrent Costs: 1984/85 - Benchmark X .ta Jt NRs Million Staff Salaries 5.40 Operating Costs 1.10 Total 6.50 j] Estimated expenditure by EKG in Project Districts. -36- EL MCILTUlML EItil PROJECT JJ A Table 2. CMIL 1OM Ta Dhtailed Cmst Tible (Eu. '000) parmters OIt Cont. For. Brat Suau. Unit W 97 8 76 U/l NM W3/ Total Cost NM 117M / WI? W"0 Total Rat Eah. Tax bt. km I. DHESI BIIT COSIS A. OIlFF IWllltS (200 s...) Ihs. - I 1 - - 2 00 - 600.0 600.0 - - 1020.0 0.15 0.5 0 SAM (150 U.N.) las - 1 3 - - 4 450 - 450.0 1,350.0 - - 1,000.0 0.15 0*5 0 JT Trainins L(hlt /b (150 se.). I. - 15 15 10 - 40 450 - 64750.0 6,75.0 4.500,0 - 13,000.0 0.15 0.5 0 Rest NOUN. (90 w...) Ihr. - - - 1 - I D0 - - - 270.0 - 270.0 0.15 0.5 0 hraie /c (15w ...) Nos. - 4 4 5 - 13 15 - 60.0 60.0 75.0 - 1M5.0 0.15 0.5 0 Sub-Total OFFICE UUILIDINSS - 790.0 89760.0 4,945.0 - 21465.0 3. 1113111 JTI Id (45 e..) NOS. - 5 20 30 - 5S 135 - 65.0 2,700.0 4W050.0 - 7P425.0 0.15 0.5 0 I- (60 e.G.) Ina. - 10 5 - - 15 1M0 - 1O,O.0 9O0.0 - - 2,700.0 0.15 O.S 0 I (lsoe.) Nos. - 2 3 3 - 8 240 - 430.0 7200 720.0 - 1,920.0 0.15 0.5 0 1 Bl (80 U.S.) Now. - 6 8 I - 22 240 - 1,440.0 1920.0 1i,20.0 - 5M230.0 0.15 0.5 0 I-- ^110 /I 10 ....) Nae. - 3 3 - - 6 270 - 810.0 B10.0 - -1.d20.0 0.15 0.5 0 UIEO (120 w..) Naga. - 2 2 - - 4 360 7200 720.0 - - I .0 05 0.5 0 ODtUr Clns III KW /h (M0 U.N.) Nae. - 2 4 4 - 10 244 - 460.0 96.o T60.0 - 2,400.0 0.15 0.5 0 a Othwr Ibn haz. Itt /1 (43 U.S.) Nos. - 4 I 8 - 20 135 - 540.0 14080.0 1IO0.0 - 2,700.0 0.15 0.5 0 [- Other Stott /s (35 sw...) hNs. - 1 3 3 - 7 105 - 105.0 315.0 315.0 - 735.0 0.15 0.5 0 h S9b-Ttal OUSID - 7,050.0 10,125.0 9,5.0 - 26,220.0 C. TRAININI Rwnvation of Shed and feuiing at Panruair NOs. - 1 - - - 1 100 - 100.0 - - - 100.0 0.15 0.5 0 TL Sub-Toal Il1E41 - 100.0 - - - 100.0 D. ARNIOTECT FEE 100.0 100.0 - - - 200.0 0.15 0 0 a Total I1NsTT WmTS 100.0 15,I10.0 18,8.0 13r390.0 - 47,95.0 Total 100.0 15,110.0 19e985.0 13890.0 - 47,95.0 h8 At Sisri mNd Twulih . 7b Office cm midmnce for JTr traininJ hull an stoe at ach Training Sub-center. /c PJect C rdintArC2), SAEO(4 anr e ch for Parsa, Rautalit Smunari, Sartri. Sirbu lardia Iundusu r. /d In reot, areas. /a In remote areas. Ir Parwa brat RPht, Swrii Iailali, Du brdla, Kanc6 r. AN Sunsari, S,ari, Sirliit Dardia, Dan, Kanchamr. /h In reno ares. A1 In reote arn. /J In remote areas. Febru 19, 193 5t:00 -37- ANNEX 1 Table 3 ZOCLUW CEXIWB FBJT SS Tale 3. Y85 AN 3PIrer Detailed Cost tIV PlIS. '0001 Parsewters beti am Cots Pie. - it Cent. For. rss Suar Unit 1 37 APM WUII f Total O et W ISM KM P/U WI? MAO Total bat ECtc. Tax Rat teat I. -0 7T it5 a. tEmsQ a1 uiai jew /a ln. 7 4 3 - - 14 200 Ire.O WA o ODA - - 2O.3IO 0.25 o0. 0.01 Pc Map Cesm it be. 33 0 37 - - 141 30 OL.02,070U1NA 00A - - 4,30.0 0.15 0.95 0.1 PC liccln (Dtffn d) Me 25 70 70 - - 165 1. 37.5 05.0 125.0 - - 247.5 0.25 0.95 L.1 IC ile IC2 - 2 - - - 2 400 - 00.0 - - - 100.0 .15 0.95 0.01 VC St-lTetl 101E0. 2,427.5 30775.0 .8P5.0 - - 1,077.5 3. OFIE EIIET P rjt aodinator d be. - 1 - - - 1 140 - 140.0 - - - 140.0 0.15 0.0 O.0Q aEO NeM/s N. I I - - - 4 55 265.0 5.0 - - - 220.0 0.25 0.S 0.01 MED aM J r s. 5 3 3 - - t1 1 275.0 .0 165.0 605.0 0.15 0.s 0.01 0EO Tra. igre lnr/g bIS. 2 - - - - 2 120 240.0 - - - - 240.0 0.15 0.0 0.01 EO Director Genl Office/b h os. I - - - - I 100 100.0 - - - - 100.0 0.15 0.0 0.01 1EO Se-Total IFFIE E0MI T 70.0 360.0 ISA - - 1,305.0 C. FaIlTRE Project Cordiator - I - - - 2 100 - 15o.0 - - 100.0 0.15 0.4 0.01 FUtR SE 3 1 - - - 4 30 90.0 .0 - - - 120.0 0.15 0.4 0.01 FUR AN - Office ad oarter 5 3 3 - - 11 50 250.0 150.0 150.0 - - S50.0 0.15 0.4 0.01 FUR Rat Him - - - I - 1 5 - - - 50.0 - 50.0 0.15 .4 0.01 FUR Trein Sb-ter 20 20 IS - - 56 50 1000.0 1,o000.0 900.0 - - 2,300.0 0.15 0.4 0.01 ftlR .2111* - 25 25 30 - 70 5 - 75.0 250 150.0 - 350.0 0.25 0.4 0.01 FUR trainirs Centers/i 2 - - - - 2 100 200.0 - - - - 200.0 0.15 0.4 0.01 Rht Dirctor Gewal Office I - - - - I 50 50.0 - - - - 50.0 0.15 0.4 0.01 FUR Sb-Totel FTUEM 159s0.0 1435.0 ltOl7.0 20. - 4.220.0 L. MsM VIRl A OIE EPJIPrir Project toordinator /J INS. - I - - - I 10 - 20.0 - - - 10.0 0.15 0.0 0.01 IVE SEM/k los. - 4 - - - 410 -6 4.0 - - - 40.0 0.15 0.0 0.01 AM a 1o eM. 5 3 3 - - 11 30 150.0 90.0 Y. - - 330.0 0.15 0.95 0.01 AVE T7iia Sub-Cetr I Nos. 20 20 16 - - 56 60 1.200.0 1,200.0 960.0 - - 3,360.0 0.15 0.95 0.01 M JI/ilD to Mos. 100 Is 46 - - 32 0.5 50.0 V.5 23.0 - - 160.5 0.15 0.5 0.02 AVE P16 /0 Ib. 407 3SO 93 - - 50 0.4 162. 140.0 37.2 - - 340.0 0.15 0.5 0.01 AVE Trainirs C en tr Nob. I - - - - I 30e 300.0 - - - - 300.0 0.15 0.9 0.01 AE Civil Giineris/ lbs. 21 - - - - 21 2 21.0 - - - - 21.0 0.15 0.9 0.01 AVE Sb-Total N4m VISUL - 011R EniELWT 1.0530 1,567.5 l.I10.2 - - 49561.5 Total l11151IT COSTS 6u681.3 7057.5 4,225.2 200. -1-.6 Total 66,81.3 7,057.5 4225.2 200.0 - 1I64.0 /a For Jba. bits, Nuammasha nIitta,rig Sarlabi. Sihe gailali, Brdiai SE024l. Prjet Coordinatll) ao Daa DEll). /b PbrSI), IsreU2). bdtabatlll. rban() StrmeriOlS, Sirhdl(5). Swtari(5. gailati(O), Berdie(S), DhittI, K,cbantur), Projet Coordimttorl) Trainirs Centrs(41 - am etocwle eat for dT an M Director lewal Officr(4) ad Production Orf icers(2V. le For Trauma cenkr : Parwninr ad hata. Id Treit (23t eall ad Etish, Doblicatort Photocw,r adoir etk. le Tweritee rlcaieow etc. /t Tstriten, lPolicatOr etc. Is T riter Dlicator, Reference Aiotil, t.t Kitchen utwnils for Peraar. lh Tresrter , Ilicator etr. A iteRl wd Claisos furitars for Pavnir'r. Librar turmitue for Perngnirw Ad JSA. 12 C r.o flal ad blat bards dec. A Cur. flarwl ad bla bards. tc. /A Ca_e csttr Plawr flaml aJ black brds. etc. /a Flwl ad black bheeds wil testias kit. wasurira tare, weiehin balanc, olwutic anenring rlas baSts. woo of differt sizs. arecia. jars ad battles. insect colletio oie rlnt Pretectien ed a_nts etc. In Sull foldi board, fmtel dct Ksnns tere surius bkloan bet to carrs Prers ret. /a Sel fodw boad. flmel clo th.amirs twap bha to care Pwers et. hp Slide Pso.htaor, file noeictor, aba projector. casette tan rcorer, Public ad_ess satee nd wortele generator for JS. africultwel tools. Plnts protection _aidst, maw ad semI material, draing board ad muint. artist tols ad seteria dirles boro. ek. otr Jm*a ad Panaiur. /e ormerin r tw aid on rock calcu r ret tilt. Fedrses LIP IM 1:100 NEPAL AtI URTWAL EXIDSIEO PIUCT 11 ANNEX I Table 4. ITRESNETAL ISAFF COSTS Table 4 Dtailed Cotst able list, '0001 Paraetters Duanital list Cosle Thy, ............lt... . .... ... . . . . .................. . ............................-Cnt, fr, Orm sS ars Unit 95/06 /8S7 i/N8 N/1f 89/90 Total Cost 8$/56 W87 0/57/N N/1f /OW Total Rate Extch Tas Rato kcount ......... ...... .. . ..........- * .stst sissa *l .sa ... 2 .8.... M111 l.... I..SO*= .......... .11,11 "IM 8 .ss"sl .ssl lss *sss*tt I *" 1. RECURENIT COSTS A. EXTENSION STAFF _ ......... 1. IROJCY COORDINATOR Junor Technilimn StatNear I I I I 1 5 HIS 11.8 11. 11 .IS tits 11.- 59.0 0 0 0 ES Driver StatNr - I I I 1 4 7.7 - 7.7 7.7 7.7 7.7 30.9 0 0 0 ES Sob-rTatl ROJACY COORDINIOR ;1.; ;;s5 ;; 5 it's 19.5 59.S 2. DIRECIOR ENEAL OFFICE /a _,,.,,..........:....... EItmsion an Traininrs Specialists Stat'ear 3 3 3 3 3 15 IS 65 49.5 49$ 5 49.5 49.5 49.5 247.5 0 0 0 ES SuoJet Natter Speciallss Staffnar - 2 2 2 2 5 1H.5 33,0 33.0 33.0 33.0 132.0 0 0 0 ES Assistant Ecnoeiat/Plaanr Staftnar - 2 2 2 2 S 165 33.0 33.0 33.0 33.0 132.0 0 0 0 ES Suo-Total DIRECTOR ERIIAL OFFICE Ia 49.5 115.5 115.5 115.5 115,5 511.5 3. REGIONAL LEtEL lb SAEO Staffysar 3 4 4 4 4 1 27.9 93.7 111.6 111.6 111. 111.6 530.1 0 0 0 Es Asit. Econoelst StattsIar 3 4 4 4 4 19 16.5 49.5 66.0 66,0 664.0 6.0 313.5 0 0 0 CS it Stattnar 3 4 4 4 4 1 11,1 35.4 47.2 4792 47.2 47.2 224.2 0 0 0 ES Driver Statfosar - 3 4 4 4 15 77 23.1 30-5 30.9 30.S 115.5 0 0 0 ES Sub-lotal REGiONAL LEVEL /b 168.6 247.9 255,6 255.6 255.6 11183.3 4. DISTRICT LEEvL ADO /c Statffnr 3 5 6 6 6 26 20.9 62.7 104.5 125.4 125.4 125.4 543.4 0 0 0 ES 115s /d Sldattyct 10 16 72 22 22 92 Il5 165,0 264,0 36.0 363.0 363.0 1,5i1.O 0 0 0 ES Driver /e StatNear 5 7 10 10 10 42 7.7 38.5 53.9 77.0 77,0 77.0 323.4 0 0 0 ES Sub-lotal DISTRICT lEYEL 266.2 472.4 565.4 565.4 55.4 2,3154.8 5. FIELD STAFF ............ Trovtilon Offlexr StattYlf 25 34 43 43 43 IN 16.5 412.5 561.0 709.5 709.5 709.5 3.10210 0 0 0 Es if1 t Stafseatr 5 5 10 10 10 40 HIS 59,0 59.0 IIS.O 11.0 11S0 472.4 0 0 0 ES JTA /I StatYear 34 37 65 S0 90 296 8.9 302.6 329.3 578.5 712.0 712.0 2t634.4 0 0 0 ES TLIM Statntear 407 505 772 S50 550 3384 3. 1465.2 1.918.0 2,179.2 3,060.0 310400 12o1l2,4 0 0 0 ES Suo-Total FIELD STAFF 2,239,3 2.767.3 4115.2 4,5".5 44".5 1s,290-s Sub-Totil EXTE 0SION STAFF 2l735.4 3.572.6 53ol42 115S.5 5S555.5 22.50 .2 . TIIINING CENTER STAFF Tralning Ottior /h Staftnar I I I I I 5 20,9 20.9 20.9 20,9 20.9 20. 104.5 0 0 0 TIS Instructors /i Slatfnar 4 4 4 4 4 20 16.5 66,0 660 66.0 66.0 6S0 330.0 0 0 0 IRS Jl /i Stftytar 4 4 4 4 4 20 11.3 47,2 47.2 47.2 47.2 47.2 236O 0 0 0 IRS Driver Stattoiar 2 2 2 2 * 7.7 . 15,4 15.4 15.4 15.4 61.6 0 0 0 IRS Sub-tltal 1iAININO CENIER STAFF M3t; 149.5 149;5 149.5 149.5 732;1 C. SUPPORT STAFF ,. ........... 1. FOJECT COORDINATOR ....... ... ... _. hilef Ateonltnt Sta'rasar I I I I 1 5 22.1 22.1 2i.1 22.1 22.1 22.1 110.5 0 0 0 6FS Senior Accownltnt Staffear I I I I 1 5 17 17.0 17.0 17.0 17.0 17.0 95.0 0 0 0 VSF Senior Clark (Storel Stfatear I I I I I 5 11.9 11 11.9 11.s 11.9 11.9 59.5 0 0 0 s5s PtrNalt'ehn Staftwer I I I I I 5 8 6.0 4,0 i,0 6.0 6.0 30.0 0 0 0 5S ii- 0.: O I TOR ; P; P44 1,744 ,1;.7l 21-.0 : S0 - SSi i i senior kcosmnteM 1tefnr I I I I 1 5 17 17.0 17.0 I7.0 1710 17.0 55.0 0 0 0 us6 TIsUt/Clerk Stithfenr 1 3 3 3 3 13 9.2 9.2 27.6 27M6 27.6 27.6 119.6 0 0 0 505 Pn staffatar - 2 2 2 2 8 6 - 12.0 12.0 12.0 12.0 43S0 0 0 0 PS tubTlttIl DIRECITOR 0KAL OFFIC1 26.2 566 56 4 54.6 566 25.i6 3. REGIGNAt LEVEL A ........... ..........._ Solar Accormtnt StatNear 3 4 4 4 4 19 17 5150 63.0 60.0 6. 68 U.0 323,0 0 0 0 oS Clerk/Tanlit Staftear 3 4 4 4 4 I9 9.2 27S6 36.6 36.8 36.6 361 1574. 0 0 0 5s0 eonjVatliean Statfwar 6 a 8 3 8 38 6 36.0 480 43.0 49.0 48.0 220.0 0 0 0 sn 4 .. 01335. k. ... Acceotent /I Staftear 3 6 7 7 7 30 1159 357 71A4 *323 03.3 S23 357.0 0 0 0 on Tvpost/Clrtk /a SlietaIer 5 9 11 It 51 46 9.2 46.0 73.6 101.2 1012 1012 423,2 0 0 0 uSI PeonNatchaan 7n SlatNeor 25 45 67 67 A7 271 6 150.0 27040 402.0 402.0 402.0 5,626.0 0 0 0 Ps St-lalel DISTRICT LEUL 231.7 415.0 586.1 586.5 506i5 2M4062 5. 3AININ CENTERS /a ....... ........ ..... kewtnlant SIteteer 2 2 2 2 2 10 55.9 2320 232. 23.8 23.8 23S 119.0 0 0 0 51S Twpist/Clerk Staftwear 2 2 2 2 2 10 9.2 18.4 18.4 5.4 15.4 15.4 92.0 0 0 0 us Artist Slttvear 2 2 2 2 2 50 10,5 21.0 21.0 21.0 21,0 210 5050 0 0 0 5s" Helnrs Sthtaur, 9 a 9 8 8 40 6 4310 48.0 48.0 49.0 48.0 240.0 0 0 0 Vs Su-Total TRAINING CENTEAS /o 1115 2 1115 2 111,2 111.2 1112 556.0 Sub-otatl 55 0I STlAF 50.7 2 964.1 94.1 964.1 i4 2526 D. CIYIL ENGOIINEESNO StAFF In ........................................._ Encutive EInelter StfatNer I I I I I 5 20.9 20,9 20.9 20.9 20.9 20.9 104.5 0 0 0 ENS Aialslanl Enireer Slftogar 3 4 4 4 4 19 565 49.5 66.0 66U0 64,0 660 313.5 0 0 0 ENS Draftsamn StatNoer 2 2 2 2 2 10 115. 23,6 23.6 22.6 22.6 26 556.0 0 0 0 EMS Ovrseas Slat ter 10 54 14 14 14 66 55.8 518.0 56.2 565.2 165.2 165.2 776.3 0 0 0 ENS St-leal C1VIL ENDINE1 lN1 STAFF Ir 212 0 275.7 215.7 275.7 275.7 ;i;;.11 Tolsl RECstI NT COSIS 1.622. 4790;4 11;6;443 6;4431 211;3227 Total 2.622,2 4.79064 6,530.5 6.9443 644.8 21,322.7 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~....... ....... ............. .... __..__. .. /a At Iathardu Is Ithe atic. ao lretl cto r urel, Aars1ustIre to .tre .nth .. te Esltnsian/Ttalnni nd PlSm ni ttilons. /b tre each fit Eastern, Central end Westen mRSoni d am tatr id rad Far Western lellioM (cohsnidl. /a Onr each tar Patse Reuhasl SunseltS KInenhnmur, lerdia rihe, /d Two each for It dlisricts. /i for Jhires Chilban aishna, NiSaltari, Strhuli Slrhrt EIllIle and lardiat nd Auo sore, /It Iaa31 Raulthall2Ia SeterII and Srtha (2). /0 Parsaflhl 1ACt154), Raulahetlyl, Norus121 tisneritil,l tIrteISl6le SIrheo12Ie lardlal3 end 15 additional. /b rat S,da /I J1ke Iraining center, /J J ka Wd terwanlrur trainlni cotate. .1 Fir IAEO. /7 Patti.n Da tr latahat llell, IOncthwaut. IerdlI and Doae /a One tor nich district, In tralnird Suh-ceners(56) eS ame for ADO oftictill). /o For Jude and Pernvnlrur lreinird ntelnr /r One Egecutive Enainuer at ProJect O Isl the terall tour Atilitent Ensinte ftr Ritaont - Estlem and Catrelill, Vestomill Hlid sterarnill and Far WestarnIlSl Ovriest Easlern nd Central(3), VeitarnlelJ Hid 11tlemlI1 end Far hsterni4l. .. 19. 5. 1_._..............0. 1..... . .. . ...... . .... ....................... FereoNtr 19i Iff IllOI NEPAL ANNEX 1 AGRICULTURAL EXTENSION MOJECT II Table 5 Table 5. INCREMENTAL OPERATINO COSTS Detailed Cost Table (NRc. '0001 Paraceters Guantitw Base Costs Phw. ................................. Unit ---------------------------- Canto For. Gross Suaarv Unit 85/86 86/87 87/88 E8/89 99/90 Total Cost 95/86 86/87 97/a8 98/89 89/90 Total Rate Exch, Tax Rate Acount :33333333 3a333 :311l 33333 33333 3S3:3 m:X::: :sll z33:333 *uuu:"u miami:s *:s..a: uw.:..: ::3:3a3x 33 axa33: 3333 3333333 3a3333 I, RECURRENT COSTS A. OFFICE OPERATING EXPENSES AND EXTENSION MATERIAL ......... ..... PLAA /a Staftfear 407 505 772 950 850 3J384 0.4 162.9 202,0 3089. 340,0 340.0 12353.6 Oi 0,2 0 OEM JT/JTA /b Staftwear 187 236 361 376 376 1i536 0.5 93.5 119.0 180.5 198,0 138.0 768.0 0,1 0.2 0 OEM SmS /c Staftuear 10 16 22 22 22 92 1 10.0 16.0 22.0 22,0 22,0 92.0 0.1 0,2 0 OEM Training Sub-centers /d Nos, 20 37 56 56 56 225 2.5 50,0 92.5 140,0 140.0 140,0 562,5 0.1 0.2 0 DE" ADO le Staffwear 5 8 11 11 11 46 2.5 12,5 20.0 27,5 27.5 27.5 115.0 01 0.2 0 OEM SAEO /t Staftwear 3 4 4 4 4 19 5 15.0 20.0 20,0 20,0 20,0 95,0 01 0,2 0 OEM ProJect Coordinator /g Staffwear I I I I 1 5 5 5.0 5,0 5,0 5.0 5.0 25,0 01 0.2 0 OEM Training Centers /h Nos., 2 2 2 2 2 10 15 30.0 30,0 30.0 30,0 30.0 150.0 01 0.2 0 OEN Civil Engineering Staffwear I I I I 1 5 40 40.0 40.0 40.0 40,0 40.0 200.0 0.1 0.2 0 OEM Director Oeneral Office Staffvear I I I I 1 5 5 5.0 5.0 5.0 5.0 5.0 25.0 0.1 0.2 0 OEM Sub-Total OFFICE OPERATING EXPENSES AND EXTENSION MATERIAL 423.8 549.5 778,9 817,5 817,5 3t396.1 B, TRAVELLING AND OTHER EXPENDITURE ................. ........................ ..... JTA Cycle Allowance /i Staftwear 1 7 171 262 277 277 1,124 0.4 5498 69.4 104.8 110.8 110.8 449,6 0.1 01 0 lOE JT /J Stafftear 50 65 99 99 99 412 0,6 30.0 39.0 59,4 59.4 59,4 247,2 0.1 01 0 TOE ADO /k Staftwear 5 11 11 11 46 6 30.0 49,0 66.0 66.0 66,0 276.0 0.1 01 0 TOE AADO /I Stafftear 5 8 11 11 11 46 4 20,0 32,0 44.0 44,0 44.0 184.0 0.1 01 0 TOE SHS /e Staftfear 10 16 22 22 22 92 10 100.0 160.0 220,0 22090 220,0 920,0 0.1 01 0 TOE SAEO Office In Has, 3 4 4 4 4 19 7 21,0 29.0 28.0 28.0 28,0 133.0 0.1 0.1 0 TOE ProJect Coordinator's Office /o Nos. I I I I 1 5 5 5.0 5.0 5.0 5.0 5.0 25.0 0.1 0o1 0 TOE Training Centers /p Has, 2 2 2 2 2 10 5 10.0 10.0 10.0 10,0 10.0 50.0 0.1 0.1 0 TOE Civil Engineering Staff Stafftear 14 21 21 21 21 98 10 140.0 210,0 210.0 210.0 210.0 980.0 0.1 0.1 0 TOE Production Officers Statfvear 25 34 43 43 43 189 4 100.0 136.0 172.0 172,0 172,0 752.0 0.1 0.1 0 TOE Director General Office Nos, I I I I 1 5 12 12.0 12,0 12.0 12.0 12.0 60,0 0.1 0.1 0 TOE Sub-Total TRAVELLING AND OTHER EXPENDITURE 522,8 748.4 931.2 937.2 937,2 4.076,9 C. OFFICE RENT /a ...... .......... .. trainins Sub-centers Nos, 15 30 40 40 10 135 4 60.0 120,0 160.0 160,0 40,0 540,0 0.1 0 0 OFR SAEO Staffvear 3 4 4 4 - 15 36 108.0 144.0 144.0 144,0 - 540.0 0.1 0 0 OFR 4 ProJect Coordinator Staffteav I I I I - 4 94 84,0 84.0 94,0 94.0 - 336.0 0.1 0 0 OFR Sub-Total OFFICE RENT /a 252.0 348.0 398.0 389.0 40.0 1,416.0 D. VEHICLE OPERATING COSTS 1. District 4WD Diesel /r Nos. s 9 1 17 12 P 54 71 I 1711 - 3,A A 3A A A 31A A I#FA c A A ^ I , ': 4 1 .. t te~~~~~~~ ~ ~ ~~~~~~~~~~~ 1' 1, I ..Ai..S.3?U...T.. Ci.S. 1. District 4WD Diesel /r Noas 5 9 12 12 12 50 30 150.0 270.0 360.0 360.0 360.0 1,500.0 0.1 0.f 0.1 VOC 2. AEO 4UD Diesel /s Hos, 1 3 4 4 4 16 40 40.0 120.0 160.0 160.0 160.0 640U 0 Ott 0.9 O0l vOC 3, ProJect Coord. 4WD Diesel /t Has, I 1 1 1 1 5 40 40.0 40.0 40.0 40.0 40.0 200.0 01 0.9 0o1 vOC 4, Minibus /u Hos, - 2 2 2 2 a 15 - 30.0 30.0 30 30 0 120.0 01 0.9 0.1 VOC 5. Hotorcuwles - Director General Office /v Has, - 4 4 4 4 16 5 - 20.0 20.0 20,0 20.0 80.0 0.1 0. 0.1 WSC - OHS /w NHas 10 10 16 22 22 80 10 100.0 100.0 160.0 220,0 220,0 800.0 0.1 0.9 0o1 vOC - JT Ix Nos, 20 28 74 99 99 320 5 100,0 140.0 370.0 495,0 495.0 I6tOOO 0.1 0.9 0.1 UoC - Coordinator /w Nos, - 3 4 4 4 15 5 - 15,0 20,0 20.0 20,0 75.0 0.1 0.9 0.1 Yoe - Training Center Iz Nos. - 4 4 4 4 16 5 - 20,0 20,0 20,0 20.0 80.0 0.1 0,9 0.1 vUC - Production Officers 'a Nos, 10 24 33 37 37 141 5 50,0 120.0 165.0 185,0 t85,0 705.0 0.1 0,9 0.1 VXC Sub-Total Hitorcvcles 250.0 415.0 755,0 960.0 960.0 3.340.0 Sub-Total VEHICLE OPERATING COSTS 480.0 975.0 1.345.0 19550,0 01550.0 5800.0 Et FIELD TRIALS - - - - - - 20.0 30.0 40.0 40.0 40.0 170.0 0.1 0.5 0.1 FT Total RECURRENT COSrS 1,698.6 2P549.9 3t493.0 3.732,7 3,394.7 14,84#9. as::::= = .ssau ::::aa::::: s:=== ==.= a:..ma:: Total 1N699.6 2,549.9 3v483,0 3,732.7 3,384.7 14i849.9 us::: ::...u:.......... a: : ........:: ...*... --:::: /a Includes rrinting of diaries. roster raper and raint for Preparing sisple aids and other instructional material. lb Includes Printing of diaries, Poster PaPer and Paint for PreParint siaple aids and other instructional material, /c For treparins tralning aids ard other simple visuals. Id Preparing training materlal and for fortnightlw trainins costs. /e Annual office operatins costs, It Annual office operating costs, Ig Annual office operating costs, /h Trainins Center (Jhuaka and Parwanipur) annual oreratins costs and Preparation of teachins aids. /I HRs 30 Per month for JTA owning a bicucle. /J Arvnual travelling costs, /k Annual travellins costs, /1 Annual lravellini costs. In Annual trajelling costs. /n Annual travellins costs, vo Annual travellins costs, /4 Annual travelling costs, /a Annual office rental Pending comPletion of civil works. Ir At 12000 kes per wear includes Jeep of Jhumka RTC, /s At 15,000 kes Per wear, /t At 15.000 kse Per wear, /u At 6.000 kas per wear. /v About 15 kms/daw at iRs 1.50/ke. /w About 30 kms/dav at IRs 1,50/kn. /x About 1 kst/day at NRs 150/ke, 1y About 15 kssuday at NRs 1,50/km. /z About 15 kas/dav at ERs 1.50/ks, /a About 15 kas/day at hRs 1,50/ke, …-…-............................................................--............a........................................................…...................…. ........ Februarv 19 1785 11103 NEPA ANNER I AGRIILTIRIL EXTEIEIOII PRECT 11 Table 6 Table 6. TEAINIIB COMTS Detailed Cost Table (Ms. '0O0I Parmters hmntity Ae costs Phb. iUnit - Cant. For. Gras Sumart Unit 35t/6 9f/87 87/3 88/59 99/90 Total Cast 85/86 86/87 87U W89M /90 Total bte Exch. Tax lbte ccunt r COME Iation Trains Amg Starr la StatNer 700 - - - - 700 0.1 70.0 - - - - 70.0 0.15 0 0 TIC ta3ft Stafttear 200 350 420 420 420 liStS 0.1 20.0 35.0 42.0 4.0 42.0 131.0 0.15 0 0 TiC -1 Orienttion Trainird 90.0 35.0 42.0 42.0 2.0 251.0 -race Trainins: FUP /b Staifyar 150 300 150 100 100 800 1.5 225.0 450.0 2Z5.0 150.0 150.0 1,200.0 0.15 0 0 TNC - thlt Uorkshot Ic klNADO) Staffear 25 40 52 52 52 221 1.2 30.0 48.0 62.4 62U4 62.4 265.2 0.15 0 0 TIC jasNm Training 'U4AnI Staft,ear 600 1.000 1.300 1.300 1.300 5.500 0.2 120.0 200.0 260.0 210.0 260.0 1100.0 0.15 0 0 TIC - asom Regioal lorishor --UIS/AAITrs. Office) Stattear 25 40 52 52 52 221 0.3 7.5 12.0 15.6 15.6 15.6 66.3 0.15 0 0 TIC -:i1 Short Caems Jd Statfear 10 16 22 22 22 92 1.5 15.0 24.0 33.0 33.0 33.0 138.0 0.15 0 0 INC JMA/JT Stafter 600 1,000 1.300 1,300 19300 5.500 0.8 480.0 800.0 1,040.0 1040.0 1040.0 4400.0 0.15 0 0 TIC :1 Speciul Short Caures /d 45.0 824.0 l.073.0 14073.0 1.073.0 4.533.0 ENT COSTS 967.5 1.569.0 1.678.0 1403.0 1,03.0 7.420.5 = =n _n _n _ _ 967.5 1l569.0 1,678.0 1,603.0 1.6*3.0 79420.5 : ing staff in Koran, Sw9sri, Rautuat, Parsa, J Rwamehi districts will be siven a two-da orientation badtch (40 erosD Per batch). includes incentives to research scientists. includes incentives to reserch scientists. includes incentives to research scientists. 19B5 11:05 -41- NEPL ANNEX 1 ABRIC1LTIRAL TSION PIROT IT Table 7 Table 7. NUNITWI AN"D EUATXON Detailed Eost Table (IR. '0002 ?a-ameters uantitv bse Costs Phw. - - Unit - Cant. Far. Gross Sumary Unit 5/86 86/87 87/U M/ 89/9 Total ro t rU6 U9/7 87/U8 J8/89 89h9 Total Rate Exch. Tax Rate Account e== z_- J3== = Q= == _ === ===__= : ==-= =_= == MT COSTS e Study !a District 3 3 - - - 6 125 375.0 375.0 - - - 750.0 0.15 0 0 MAE ira and -wutian Studies hb Nos. 3 3 3 4 4 17 100 300.0 300.0 300.0 400.0 400.0 1,700.0 0.15 0 0 MAE WNT COSTS 675.0 675.0 300.0 400.0 400.0 2,450.0 675.0 675'.0 300.0 400.0 400.0 2,450.0 , Karchawur wJd Bhrdia in 84/85; -irha md Saptari in 85/96. auld be candtcted an scmitic Project activities. Is 1i1:05 NIEPAL AOtICULTURAL ENTENIION PROJEcT: PHAS It RlfUIzUDI AND AVATLASILITTY OF KIUBIUON STAf Diitrict Puncbh- PIALMj/|A .11|3JTA Ine -21 |J InCr_mm- SHB I Fers- rntcr n- ADO ADO ADO ADO Incemn-j ayet. |Rq. leqd. POittonu talJTA Reqd. Poettonie tal JT I aqd. mn:t 3H8 *l S3 RaIqd. Avail. rnd. vail. tcl ADO L I ~~~~~Aealtable lImed Avalslb1 INmede I Avallable X z Need Ndd | Morsng 66 66 22 20 2 a 8 - 2 - 2 1 .1 1 1 Sunserl 52 !2 IB 17 1 7 7 - 2 - 2 1 1 1 - I 'Aug hat 101 101 34 23 9 12 10 2 2 - 2 1 1 1 - 1 Ura 103 105 35 21 14 13 10 3 2 - 2 1 1 1 1 - Pars. 33 33 23 20 a 10 10 - 2 - 2 1 1 1 - _ Sub Total 407 407 137 103 34 50 45 5 10 - 10 5 5 5 2 3 tEA it Sardia 34 34 12 9 3 5 S - 2 - 2 1 1 1 - I KsXalla 44 44 1s 13 - 6 6 - 2 - 2 1 I 1 1 - Kanchanpur 20 20 7 7 - 4 & - 2 - 2 1 2 1 - I Sub Total 98 98 34 31 3 15 IS - 6 - 6 3 3 3 1 2 TEAR III Saptart 115 115 39 23 16 14 11 3 2 - 2 1 1 1 1 - Sirha 112 112 3B 26 12 14 12 2 2 - 2 1 1 1 - I Don& 40 40 14 14 - 6 & 2 - 2 1 1 1 1I Sub Total 267 267 91 63 28 34 29 5 6 - 6 3 3 3 2 1 Addit lona Need. 3/ - 78 15 - 15 - - - - - - - - - - - TOTAL 772 3SO 277 197 30 99 89 10 22 - 22 11 11 11 5 6 1 One PLAA per Panch.yat and one JTA for three PLAk or nine Panneheyats. _I One JT for three JTA and one for ADO offlce. 3t Additional poaltitom of PLAA and JTA needed for akintg adjustnents in remote and difficult areas and Lnteniwe cultivation arees. -43- ANNEX I Table 9 Page 1 NEPAL AGRICULTURAL EXTENSION PROJECT.II Recruitment of Staff by Year 1985/86 1986/87 1987/88 1988/89 1989/90 PLAA New - one PLAA per yearly 407 98 267 - - Panchayat - additional PLAA - - - 78 - cumulative 407 505 772 850 850 JTA - Existing yearly 103 31 63 - - Nev n 34 3 28 15 - cumulative 137 171 262 277 277 JT - Existing yearly 45 15 29 - - -New 5 - 5 - - cumulative 50 65 99 99 99 AADO - Existiug yearly 5 3 3 - - cumulative 5 8 11 11 11 ADO - Existing yearly 2 1 2 - - - New it 3 2 1 - _ cumulative 5 8 11 11 11 PRODUCTION OFFICER - New yearly 25 9 9 - - cumulative 25 34 43 43 43 SMS - New yearly 13 8 6 - cumulative 13 21 27 27 27 SAEO -New yearly 3 1 - - - cumulative 3 4 4 4 4 -44- ANNEX 1 Table 9 Page 2 1985/86 1986/87 1987(88 1988/89 1989/90 TRAINING - New yearly 9 2 - - - cumulative 9 11 11 11 11 ENGINEERING - New yearly 16 5 - - - cumulative 16 21 21 21 21 ACCOUNTS STAFF - New yearly 10 4 1 - - cumulative 10 14 15 15 15 -45- ANNEX 2 Page 1 NEPAL AGRICULTURAL EXTENSION PROJECT II TRAINING Training StrateRY 1. Since the extension service has to improve the quality of farming practices, training of research and extension staff and farmers would be such that it imparts the specific information that is needed. The exten- sion workers work with farmers in teaching specific skills. This implies that PLAA, JTA and JT must be able to perform all tasks and, likewise, SMS who train these workers must also be able to perform all these tasks. Furthermore, trainers of SMS (research workers and senior staff) need to be acquainted with farming operations and how they are best performed. 2. In designing appropriate training programs it would be necessary to identify the skills and knowledge required by farmers to improve their production. The PLAA would need training in what is to be passed on to the farmers. The JTA and JT should be able to answer more advanced tech- nical questions. Research workers have to develop ability to identify factors limiting farm production in the field. This implies joint farm visits by research and extension workers. 3. The project would support a variety of in-service and pre-service training programs for staff. These are briefly described below. Panchayat Level Aaricultural Assistants (PLAA) 4. Pre-service Training. PLAA would have generally completed about 8 years of schooling. They would be given a 35-day training with emphasis on practicals and development of skills. 5. Orientation Training. All PLAA would receive special training in extension and T&V system. 6. Fortnightly Training. Central to the entire extension approach and an integral part of it is the fortnightly training session. The training would be carried out by the SMS and, reviewed by PLAA and his JTA in the alternate week. PLAA, JTA and JT would attend the fortnightly training given by the SMS on a specific day, once in two weeks. Most sessions would be held where there are means for practical application of lessons taught, viz., a farmer's field, a seed farm, an experimental station or a training center. Training would cover actual field situa- tions likely to arise over the next two week period. Time would be allowed to PLAA to carry out field operations and practicals. During training, PLAA would have a chance to raise and discuss problems encountered in the previous fortnight. Representative of Sajha, ADBN, AIC and Irrigation would be invited to attend part of the session to ensure coordination of related activities. In the intervening week, PLAA would meet with their JTA to reviev current problems. -46- ANNEX 2 Page 2 7. Preseason Training. Prior to each of the two main agricultural seasons (summer and winter), PLAA would receive a 2-day traiuing covering the main seasonal crops and practices recommended for them. The training would be held it two to three convenient groups for each district where facilities vould be available. ADO and SMS would organize and attend this session. The training would initiate the extension campaign for the coming season. 8. Suecial Short Courses. PLAA would be giveu training in particular disciplines/crops which are of special importance to their areas. Junior Technical Assistants an Junior Technicians (JTA/JT) 9. Pre-service Training. JTA and JT would have received one year and two year basic training respectively in the Institute of Agricultural Sciences, Rampur. A few JT would have been promoted from JTA. 10. Orientation Tra,ining. All JTA and JT would receive special train- ing in extension methodology and T&V system. 11. Fortnigbtly Trainint. JTA and JT would attend all training ses- sions of their PLAA. They would be given extra training by SMS to develop greater subject matter efficiency. 12. Preseason Train . JT and JT would participate in the 2-day preseason training. 13. Special Short Courses. Selected JTA and JT would be given spe- cialized training for a week in particular crops and disciplines which are of importance to their area of operation. Subiect Hatter Specialists (SMS) 14. Pre-service Training. SES would generally be university graduates. Some of them would have post-graduate qualifications. 15. Orientation Training. All SMS would receive special training in T&V extension methodology. 16. In-service Training. SMS would participate in the preseason training, bimonthly workshop and specialized short courses. (a) Preseason Training. SMS would participate in the 2-day preseason training prior to the main cropping season. -47- ARNM 2 * Page 3 (b) Bimonthly Workshop. To provide effective training to PLAA, JTA and JT once every two weeks, SM would have to be up to date in their area of specialization and ensure that training has a practical bias. For this purpose, the SMS would par- ticipate in bimonthly workshop once every two months at the Regional Research Station. (c) Special Short Courses. In order to build up professional competence of SXS it is considered necessary to provide them opportunities for special training in research institutions within the country. Administrative Staff 17. Orientation Training. All supervisory personnel would undergo training in extension methodology and T&V system. Their specific roles vould be explained in detail. Responsibilities 18. The Project Coordinator, in consultation with Deputy Directors General, Research and Extension and other appropriate staff, would be responsible for planning and organizing all training programs. A summary of the training activities is as under: Training Parti- Activity Venue Frequency Duration cipants Trainers OrRanizers Pre-service RIC As 45 35 days PLAA RRS Staff DOAlProject (PLAA) needed recruits Coordinator Fortnightly within 26x year 1 day PLAA SMS ADO, AADO (PIAA) district JTA, JT SMS Bimonthly RRS 6x year 1 or 2 All SMS, RRS Staff Project Workshop days ADO and DOA, 100 Coordinator, (SMS) AADO of ROO, (DDG) region Research Preseason within 2x year 3 days PLAA SMS, ADO, ADO, SHS (PIAA) district ROO, Research Staff Preseason district 2x year 3 days JTA, JT SMS, ADO, ADO, SNS (JXr/JT) ROO, Research Staff -48- ANNEX 2 Page 4 Training Parti- Activity Venue Frequency Duration ciiants Trainers Organizers Special RRS/ 2z year 5-7 days PLAA Research Regional Short RTC JTA, JT Staff, Project Courses ROO, SMS Coordinator Special RRS/ As needed 5-7 days SES Research DDG Short Ihumal- Senior Staff, & (Research), Courses tar Staff other Project Institu- Coordinator tions Project District As needed 2 days All Project Project Orientation District Coordi- Coordinator/ Staff/ nator SAEO SAEO Region/ As needed 2 days Senior Project Project Katzmdnu Staff Coordi- Coordinator/ nator SAEO -49- ANNEX 3 Table 1 NEPAL AGRICULTURAL EXTENSION PROJECT 11 Implmentation Schedule FINANCIALWVA F|86 FY87 FYU | FY89 FY90 PROJECI 'EAR _ 1_ 2 3 5 CALENDARYAR 1965 1966 1967 1998 1989 1990 _UARTU I 2 3 13 4 51 2 3 4 1 2tl 1 3 A I 2 3 4 1 2 3 4 1 2 ILWVORKS- Soloection & A=)ontment df AtChilect Site SeIection m -T Desig DeveIoxnent Pr o,orion oTendeGs I - - 1- Contraict Awora & Appowoad- - - Cotxaa & I _ _ : _157 Con leCons5runcon -o * 7- 11CLES& EQUIPMENW I I Pleoe Let of EcMAIome Pe,oroaTenaero 1 _ o Cort*act Award & Ao l,oo ; = - Pu:hme Velmcies j65o 1 1451 1 112 PACse Equinent I - . I-=REMWBJAL STAI . _ Acopointment ot Stcf I 3: - ADO 3 1 2 - Sh 1 38 __ - JT 5 - JTA | 3 28 - t -PLAA 4FO | 7 05 207! 78 0 2 T- TnV Staff | | Wa| B LL 25:55 -Eng reerwV Stof> 4 i i _ Woric 83or.- - 25855 -50- ANNEX 3 Table 2 NEPAL AGRICULTURAL EXTENSION PROJECT II SCHEDULE OF ESTIMATED IDA DISBURSEMENTS US$ Million IDA Fiscal Year Disbursement and Semester Semester Cumulative 1986 1st 0.1 - 2nd 0.2 0.3 1987 1st 0.3 0.6 2nd 0.4 1.0 1988 1st 0.6 1.6 2nd 1.0 2.6 1989 1st 1.0 3.6 2nd 1.0 4.6 1990 lot 1.3' 6.1 2nd 0.6 6.7 1991 1st 0.5 7.2 -51- ANNEX 4 Table 1 NEPAL AGRICULTURAL EXTENSION PROJECT II Economic Analysis (NRs. '000) Benefits Incremental Total Cost Present Extension and Discounted Discount Benefits Value of Year Training Costs at 50% Factor Achieved Benefits 1 13,745 9,127 0.664 - - 2 31,752 14,098 0.444 10 0.044 3 35,102 10,390 0.296 30 0.088 4 26,770 5,274 0.197 60 0.118 5 12,332 1,615 0.131 80 0.105 6 12,332 1,073 0.087 90 0.078 7-20 12,332 2.096 0.170 100 0.170 43,673 0.603 The annual incremental value of crops (1981 prices) required from year 7 onwards to achieve a 50% rate of return is NRs. 43.673 M or NRs. 72 M .603 Present Present Present Yearly Prices of Yearly Value Yield Production Crops of Crops Crop Area (ha) Kx/ha M tons NRslton NRs M Paddy 628,000 1,900 1.19 2,836 i 3,375.0 Wheat 195,490 1,300 0.25 3,873 ./ 968.0 Maize 90,031 1,700 0.15 3,207 7J 481.0 Other Crops 1/ 124,000 600 0.07 5,500 3/ 385.0 5,209.0 1/ Pulses and Oilseeds. 2/ See Table 2. 3/ Farmgate prices have been used as these crops are not traded. -52- ANNEX 4 Table 1 Page 2 To obtain NUs. 72 X, all yields aust increase by 72 or 1.382 on all cropped 5,209 area or 2.76X on 50% cropped area. Yield increases vould thus be: All Cropped 502 Cropped Area (kaIha) Area (kglha) Paddy 26.22 52.44 Wheat 17.94 25.88 Maize 23.46 46.92 Other Crops 8.28 16.56 -53- ANNEX 4 Table 2 NEPAL AGRICULTURAL EXTENSION PROJECT II Economic Price BuilC-up Paddy/Rice Maize Wheat Projected Average World Market Price 1/ 286 116 152 1985-90 (US$/ton) Adjustment for Quality Differentials 2/ -28X - - (factor) and bags (US$/ton) Adjusted Projected Price 206 116 152 Freight FOB Calcutta +25 +30 +30 Price FOB Calcutta 231 146 182 Clearing, forwarding and bandling from +40 +40 +40 Calcutta to Project Area Wholesale Price in Project Area 271 186 222 Equivalent NRs. 5,014 3,441 4,107 Domestic Transport/Handling from -225 -171 -171 Wholesale Point or Mill (NRs/ton x SCF) 31 Processing Ratio 64% 100X 100% Processing Cost (NRs/ton x SCF) 3/ -166 - - Transport, Handling to/from Farmgate -63 -63 -63 (NRs/ton x SCF) 3/ Farmgate Economic Price of Paddy 2,836 3,207 3,873 (NRs/ton rounded) 1/ Source: IBRD Commodity Price Forecasts, December 1984. Rice : Thai, milled 5% broken FOB Bangkok Maize: US No 2, yellow, FOB Gulf Ports Wheat: Canadian No. 1, Western Red Spring, in store Thunder Bay. 2/ Since most of the rice produced is traded locally with a high content of brokens (28%), price is assumed to be 28% lower. 31 SCF = 0.9. -54- ANNEX 5 NEPAL AGRICULTURAL MlTENSION PROJECT II Related Document Available in the Proiect File 1. Nepal - Agricultural Extension and Research Project II: Project Proposal Report. R.C. Hishra, Consultwat. -55- NEPAL AGRICULTURAL EXTENSION PROJECT 11 Extension Organization DkectorGeneralL | of Agdcullure 1 l _ _ ~~~~~~~~ Coordinator Regiwa DbecSor_ -~_ REGIONS (5) / Agdcultural DISIRICIS (11) Development | Teon qOCENERS (56) Sub-Center Jurior Technician Juuner Technic Legend: Assistant Lvc vdK (277) _ _ _ IntrmTation & Liaison P.LA.A (850) 9 Wairds Wodd Bark-25853 -56- NEPAL AGRICULTURAL EMTENSION PROJECT 11 Unkoges Between Research and Extension _ X ~~~~~~~~~~T**I D.De L--r. conw~~~~~~~~~~~~~~~~tto s ntd U an ;IUne omtn &Commlonc R.gnWald Bank-2584 SAEA F._-fl-*s._, q N E PA L .3 " 0 2... AGRICULTURAL EXTENSION PROJECT JI 30' (Pet 3, ' + Protect Districts SAJHA4 " 1, u?E 7/? Project Year I /I ' /I1 ,, *g-g VMSL ;4 Protect Y*or 2 i- ' Project Yeor 3 '; I .Oi jqA I) ! Ongoing Projet Districts 9o- Development Region Existing Research and S ~ x ii -lonS < ...... ~ EA ti I DOtA . Boundaries Training Facilities; .11r 94w.C N ci ..r~O District Baouidaries * Xisumatitor Research Station ~~ WSVn~~~~y ~JAJA IIC .q N ....~~~~~~~ - - ~~Zonal Boundaries SE Regianni Research Stations a ~~~~~~~~~~~~~~~International Boundaries IL Research Sub-stations r-ž - /)a Regional Training Centers I 0 p 4. I SAUW 25o, xo . o N " A. / A K 28- 1,0M*.*~assOlusj . - AIflt B; A 08 TI I _A I H UV I I p A I~~~~~~~~~~~~~~~~~~~~~~~~ o 20 40 60 t1OO A ~ffl 'W 'UtA frt PrvaelbCamt Ora4ik- "g UteataflM. ka to ra.. irte Ci%av, r .h.wui aud aa tw wh Is-ICSnW 1w VW Paws a. bow dajm ADM, ow .t"W a &a, ucmw n n& m atgr co &W nsra.a