Document of The World Bank Report No: 18554-SE PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF US$27.4 (SDR 20.2 MILLION EQUIVALENT) TO THE REPUBLIC OF SENEGAL FOR AN AGRICULTURAL SERVICES AND PRODUCER ORGANIZATIONS PROJECT IN SUPPORT OF THE FIRST PHASE OF THE AGRICULTURAL SERVICES AND PRODUCER ORGANIZATIONS PROGRAM April 8, 1999 Rural Development III Country Department 14 Africa Region CURRENCY EQUIVALENTS (Exchange Rate Effective June 1998) Currency Unit = CFA franc (CFAF) US$1.00 = 550CFAfranc FISCAL YEAR January I - December 31 ABBREVIATIONS AND ACRONYMS AfDB African Development Bank Banque Africaine de Developpement AFD Agence Fran,aise de Developpement AGEP Agence d 'Execution des Projets Ag. SECAL Agricultural Sector Adjustment Credit ANCAR Agence Nationale de Conseil Agricole et Rural (National Agency for Agricultural and Rural Counsel) ANPCR Association Nationale des Presidents de Communaute's Rurales (National Association of the Presidents of Rural Communities) APL Adaptable Program Loan ASPRODEB Association Senegalaise pour la Promotion des Petits Projets de Developpement CAMES Conseil Africain et Mlalgache de I 'Enseignement Supirieur (African and Malagasy Council for Higher Education) CAS Country Assistance Strategy CFA Communaute Financiere Africaine CIDA Canadian International Development Agency CLCOP Cadre Local de Concertation des Organisations de Producteurs CRCOP Cadre Regional de Concertation des Organisations de Producteurs CNCR Conseil National de Concertation et de Cooperation des Ruraux (National Rural People Council for Consultation and Cooperation) CPSP Caisse de Pe'requation et de Stabilisation des Prix (Price Stabilization Agency) CSE Centre de Suivi Ecologique (Center for Environmental Monitoring) DDI Direction de la Dette et de I 'Investissement du Ministire de l 'Economie, des Finances et du Plan (Directorate of Debt and Investment of the Ministry of Economics, Finances and Planning) DDRSF Demand-Driven Rural Services Fund DDRIF Demand-Driven Rural Investment Fund EIMSV Ecole Inter-Etats de Medecine et de Sciences Veterinaire (Regional School for Veterinary Sciences and Medicine) ENSA Ecole Nationale des Sciences de / 'Agriculture (National School for Agricultural Sciences) EPST Etablissement Public az caractere Scientifique et Technique (Public Agency for Science and Technology) Vice President: Mr. Jean-Louis Sarbib Country Director: Mr. Mahmood Ayub Sector Manager: Mr. Jean-Paul Chausse Task Team Leader: Mrs. Marie-Helene Collion FAO Food and Agricultural Organizationi of the United Nations Orgcinisation des Nations Unies pour' 1 alinentation et I/ 'agricultu-re FONGS Federation Nationale des Organisatiots non Goi/l'ernwtneL/aleS dle Sehnegal GOS Government of Senegal IAPSO Inter-Agency Procuremilenit Service IAS International Accounting Standaid ICB International Competitive Biddin,, IFAD International Fund for Agricultural Development ISRA Institut Senegalais de Recherches Agricole (Senegalese Agricultural Research Institute) ITA Inst it t de Technologie Alimentaire (Food Techinology Instittite) LPDI Lettre de Politique de DThveloppemnent Instituitiowniel (Letter of Institutional Development Policy) MA Ministry of Agriculture ML Ministry of Livestock NARS National Agriculture Research System NARF National Agricultural Research Fund NCB National Competitive Bidding NGO Non-Governmental Organization OCIR Opportunity Cost of Capital PNVA Projet National de Vulgarisation Agricole (National Extension Project) PO Producer Organizations QBCS Quality-Based and Cost Selection R&D Research and Development SAED Societe d 'Amenagement et d 'Exploitation des Terres du Delta du Fleuve Senegal et des Vallees du Fleuve Senegal et de la Faleene (Senegal River Valley Development Agency) SDRD Societes Regionales de Developpement Rural SODAGRI Societe' de Developpement Agricole et Industrielle du Seneigal SODEFITEX Societe pour le Developpement des Fibres Textiles (Cotton Development Company) SODEVA Societe de DIveloppement et de Vulgarisation Agricole (Extension Services Agency for the Peanut Bassin) SOE Statement of Expenditure SONACOS Societe Nationale de Commercialisation des Oleagineux (Groundnut Oil Company) STC Scientific and Technical Committee UE Union Europeenne (European Union) UNDP United Nations Development Project USAID United States Agency for International Development TEA Technical Executing Agency WARF West African Rural Foundation Senegal Agricultural Services and Producer Organizations Program CONTENTS A: Program Purpose and Project Development Objective ..............................................................- 2 1. Program purpose and program phasing .................................................................. 2 2. Project development objectives ......................... ........................................3 3. Key Project performance indicators and triggers for the second phase .........................4 B: Strategic Context ..................................................................5 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project .......5 2. Main sector issues and Governmeit strategy ................................................................6 3. Sector issues to be addressed by the project and strategic choices ................................7 4. Program description and performance triggers for subsequienit loans .......................... 10 C: Project Description Summary .................................................................. 10 1. Project components ................................................................. 10 2. Key policy and institutional reforms supported by the Project ................................... 12 3. Benefits and target populationi ..................................................................13 4. Institutional and implementationi arrangemenits ........................................................... 14 5. Accounting. Auditinig and Reporting ................................................................. 15 D: Project Rationale ................................................................. 18 1. Project alternatives considered and reasons for rejection ............................................ 18 2. Major related projects financed by the Bank and/or other development agencies ...... 18 3. Lessons learned and reflected in the project design . ................................................... 19 4. Indications of borrower commitment and ownership .................................................. 19 5. Value added of Bank and IFAD support in this project .............................................. 20 E: Summary Project Analysis .................................................................. 1 1. Economic ................................................................. 21 2. Impact of recurrent costs on public finances ...............................................................2 1 3. Technical ................................................................. " 4. Institutional ................................................................. " 5. Social .................................................................. 6. Environmental assessment ................................................................. 23 7. Participatory approach ................................................................. 23 F: Sustainability and Risks ................................................................. 24 G: Main Credit Conditions ................................................................. 25 Agreements to be reached and recommendations ............................................................. 25 Tasks to be completed for Board presentation ................................................................. 26 Tasks to be completed before credit effectiveness . .......................................................... 26 Tasks to be completed before component disbursement .................................................. 27 H: Readiness for Implementation ................................................................. 27 1: Compliance with Bank Policies ................................................................. 28 Annexes Annex 1. Project Design Summary .......................................... 29 Annex 11. Project Description .......................................... 47 Annex Ill. Estimated Project Costs .......................................... 59 Annex IV. Economic and Financial Analysis .......................................... 67 Annex V. Impact of Recurrent Project Costs on Public Finanices ....................................... 71 Annex VI. Procurement and Disbursemenit Arrangemilenits ............................................ 76 Table A. Project Costs by Procurement Arrangemenlts .................................. 78 Table B. Thresholds for Procurement Methods and Prior Review ................................ 79 Table C. Allocation of Loan Proceeds .......................................... 83 Annex VII. Project Processing Budget and Schedule .......................................... 84 Annex Vil. Documents in Project File .......................................... 85 Annex IX. Letter of Institutional Developmenit Policy .......................................... 94 Annex X Statement of Loans and Credits .......................................... 122 Annex Xi. Country at a Glance .......................................... 124 Map IBRD 29989 Senegal Agricultural Services and Producer Organizations Program Project Appraisal Document Africa Region Counitry Departiment 14 Date: April 8. 1999 ['ask 'l'car leader: Mlarie-llnlunc Collion Country Director: Mahmood A. Ayub Sector Nlager: Jean-Paul Chausse Project ID: SN-PA-2367 Sector: Rural Development Program Objective Catcgorv: lSD,'I.SI),'PR Lending Instrument: Adaptable Program Lending Program of' l'argeted Interveintioni: [XI Yes 11 No Program Financing Data Source Government Beneficiaries IFAD IDA Total Phase l 13.5 0.2 6.0 27.4 47.1 Phase 1i 11.5 0.7 4.2 21.3 37.7 Phase III 11.9 0.7 5.3 21.1 39.0 l'otal l'rogram Costs 36.9 1.6 15.5 69.8 123.8 IJSI) Project Financing Data [ I Loan [XI Credit I I Guarantee [I Other [Specify! Amount: SDR 20.2 million (US$27.4 million equivalent) Proposed terms: [xi Multicurrcncy [ j Single currency. specify Grace period (years): 10 [I Standard Variable F Fixed [I 1113OR-hased Years to maturitv: 40 Commitment fee: 0.5% Service charge: 0.75% Financing plan (LJS$ni): Source Taxes l.ocal Foreign T'otal Government 8.0 1.9 3.6 13.5 IIFA) 2.5 3.5 6.0 Beneficiarics 0.2 0).2 IDA 11.6 15.8 27.4 'I'otal 8. 0 16. 1 23.0 47.1 Borrower: Republic of Senegal Responsible agencies: Ministries of Agriculture and Livestock. National Agricultural Resciarcih Fund (NARF): Senegalese Agricultuiral Research Institute (ISRA): Food 'I'echnology Instituite ([IA): National Agency lor Agricultural and Rurai CoLinsel (ANCAAR): Association Senegalaise poutr la Promotion ties 1'etis l'ruoje's (It /)i;)t'eloppm'nut' (ASPRODE1B). . Estimated disbursements (Bank FY/US$M): 1999 2000 200)1 20)02 Annual 2.4 11.0 8.() 6.0) Cumulative 2.4 13.4 2.4 27.7 For Guarantees: [ Plartiail P artial risk credit Proposed coverage: Project sponsor: Nature of underlying financing: Terms of financing: Principal amount (US$) Final maturity Amortization profile Financing available without guarantee?: [ Yes I No If yes. estimated cost or maturity: Estimated financing cost or maturity with guarantee: Project implementation period: 3 years Expected effectiveness date: I)ecemher 3 1. 1999 Expected closing date: December 31, 2002 Page 2 A: Program Purpose and Project Development Objective 1. Program purpose and program phasing (see Annex 1) Poverty alleviation is at the core of the Program. To achieve this goal, the overall Program objective is the sustainable increase of smalliholder agricultural productivity, production. and incomiies through technological change, while at the same time protecting the environilmienit. Toward this end, the approach to supporting agricultural developmenit must change. For technologies to be relevant to producers' needs, agricultural services must be client-responisive and demanld-driveni. The strategy the Program will pursue to achieve the overall objective will be: (i) empowerilienit of producers and their organizationis, so that they have the technical and organizational capacity to formulate their demands and to apply leverage, particularly financial, to make their voices heard; (ii) public services institution accoulitability to producers, which implies increased auton1omily of these institutionis and major changes in their organization and managemenit to implemenit businiess-like management practices. Therefore, the long-term vision for rural institutions involved in agriculttiral development is the following: (a) Strong and effective producer organizationls at -nationial, regional and local levels, capable of: (i) having a say. technically and financially, in technology genierationi and transfer: and (ii) effectively providing services to their members to promote technology adoption. Producer organizations will be able to participate in the finanicinig of research and extensionl activities out of, inter alia, the existing levies on agricultural productioll, whiich will be co-maniaged withi the government in the fuIture. This proposed arrangemiienit will be subject to the results of on-goilng studies and negotiationis between the Govermiienit and the producers. (b) Extension services accountable to producers and responsive to producers' demilanid. Decision- makinig regarding extension programs and maniagemilenit will be in the hands of producer organizationis, who will bear a substantial share of the costs of these services, in part through existing levies co-managed with the government. (c) A separation of research funding from research executioll. All research activities will be financed out of a National Agricultural Research Fund (NARF) managed independently from the implementinig research institutes. Decisions regarding research allocations will be made by a scientific committee and a management committee with a majority representation of research users. (d) At the local level, research and development (R&D) and extension activities will be identified and programmed jointly with producer organizations and be subject to contractual arrangements between producer organizations, on the one hand, and research and extension on the other. (e) The Ministries of Agriculture and Livestock will be focused on policy formulation, monitoring and evaluation, and regulatory functions, with corresponding services strengthened and relocated to the regions. Mandates between the Ministries and their agencies (Societs Regionales de Developpement Ruiral SRDR) and between the Ministries' agencies and the extension services will be clearly separated. The above is reflected in the Letter of Institutional Development Policy which was reviewed by the Association during negotiations and has been adopted by the Government. It is envisioned that achieving this long-term vision-which entails major institutional reforms and investment in social capital-requires long-term support. Therefore a 10-year Program has been designed in three phases. It will be implemented through an Adaptable Program Loan (APL). Page 3 Program Phase Objectives Trigger Conditions First Phase (1999-2002). To set in place the institutional See detailed trigger conditions in Section A reforms to achieve autonomy and accountability of public 3. agencies and empower producer organizations. Second Phase (2003-2005). To consolidate the Institutional reforms achieved during the first achievements of the first phase, -in particular the phase have been consolidated. accountability and responsiveness of research and extension agencies, -and thus create an environment in The institutiolns involved functionl according which the beneficiaries are willing to assume an to their manual of procedures and remain increasing share of the cost of the services they receive. accountable to the users. Third Phase (2006-2009). To ensure the long-term sustainability of the system by completing the transfer of financial responsibility for operating costs to producers and other shareholders/clients of the research and extension agencies. 2. Project development objectives The overall objective of the first phase of the Program (the Project) is to set in place the institutionial reforms to achieve autonomy and accountability of public agencies and empower producer organizations. Specific objectives are as follows: (a) establish an effective national agriculture and agroprocessing research system capable of responding to users' needs and making an optimum use of the country's available resources, through the National Agricultural Research Fund; (b) improve the efficiency of Institut Senegalais de Recherches Agricole (ISRA) and of the Inslitil de Technologie Alimentaire (ITA), through improving their scientific and maniagerial capabilities: rehabilitating their infrastructure and upgrading their equipment; (c) establish extension services accountable to producers and responsive to their needs through contractual arrangements; (d) improve producer organizations' ability to provide services to their members to access inputs, credit and marketing and to make their voice heard in the decision-making processes; (e) focus the Ministries' services on their regulatory, policy-making and monitoring functions, strengthen their capabilities in these domains, and devolve the services to the regions. Page 4 3. Key Project performance indicators and triggersfor tle second phase A joint Government/World Bank/IFAD evaluation will determine the extent to which the above objectives have been fulfilled. For each component, the key indicators for this first phase and trigger conditions for the second phase are as indicated in the following table: Project Development Key performance indicators and triggers for the second phase Objectives Establish an effective national - NARF is a legal entity governed by private law with terms of agriculture and agroprocessing reference satisfactory for the Association. research system - NARF functions satisfactorily according to agreed upOnI policies and procedures, certified by an independent management audit. - Two other donors contribute to NARF, for a minimum of 10%. Improve ISRA and ITA - ISRA and ITA are operating satisfactorily according to their various efficiency management and organizational manuals. -Financial management and accounting systems are functioning adequately as reflected in the annual audit reports, which are unqualified, except for minor qualifications. -At least 15 ISRA projects and 5 ITA projects have been approved by NARF. Four of these are joint ventures. Establish extension services -The government holds a maximum of 49% of ANCAR's share; accountable to producers and responsive to their needs -ANCAR successfully established a decentralized extension service, through contractual with contractual arrangements with producer organizations, over at arrangements least 142 rural communes; -Producer organizations contribute to ANCAR's operating costs (including salaries), either directly or through contractual arrangements at the local level; -An evaluation of staff performance has been carried out after a two- year probation period and for each staff, a decision has been made (contract renewal or redeployment to the civil service). -All ANCAR staff is contractual. -ANCAR operates according to satisfactory policies and procedures, in particular as far as the financial management and accounting system is concerned, as reflected in the audit reports. Page 5 Project Development Key performance indicators and triggers for the second phase Objectives Improve producer Satisfactory functioning of the Demand-Driven Rural Services Fund, organizations' ability to with at least 142 local and 10 regional committees effectively provide services to their functioning and 5 subprojects approved per committee; members to access inputs, credit and marketing and to The National Rural People Coun1cil for Consultation and Cooperation make their voice heard in the (CNCR) contributes to the funding of its own operating costs decision-making processes; (excluding its public service functions) out of its own resources POs provide at least 75% of the services requested by their members All POs requests for technology are taken into account either in research proposals or extension programs Focus the Ministries' services The agreed upon redeployment of personnel is completed, including for on their regulatory, policy- the personnel currently seconded to projects and to the Societes making and monitoring Regionales de Developpenient Ruiral (SRDR). functions and strengthen their capabilities in these domains The extensioni mandate of the SRDRs and ANCAR has been redefined on the basis of an external evaluation including the cost-efficiency of each structure, beneficiaries satisfaction and relevance of extension services in order to decide on the institutional modalities for carrying out extension services. The Ministries focus only on their regulatory, policy-making and monitoring functions. B: Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project (see Annex 1). CAS docutment nurm7ber: 17269-SE. Date of latest CAS discussion: January 1998. In contrast with most African countries, the agricultural sector (including forestry, livestock and fisheries) accounts for only 20 percent of GDP. Agriculture is, however, the main occupation of 60 percent of the population. A large portion of foreign exchange earnings comes from the agricultural sector, with groundnut exports ranking third to fish exports and tourism. Despite the limited natural resource base and adverse agro-climatic conditions, the agricultural sector offers a substantial source of growth and employment creation, especially when considering all the backward- and forward-linkages associated with agricultural production. The potential for productivity increase in the rainfed sector, which occupies 95 percent of the total farming population, can be achieved at a relatively low cost: technologies exist that require limited amounts of modern, imported inputs. The core objective of the CAS is economic growth with social sustainability and targeted poverty reduction. Poverty is essentially a rural phenomenon: 45% of the rural households are poor, while 80 percent of poor households live in rural areas. Over the last two decades, rural poverty has deepened, as agricultural production stagnated, while rural population was increasing by more than 2 percent per annum. This resulted in an estimated reduction of agricultural production per capita of rural population of some 40 percent since the beginning of the 1970's. Poverty is not only the result of lack of economic Page 6 opportunities but also of the lack of capacity of poor people to make their voices heard and to articulate their demand vis-a-vis the actors and service agencies that regulate rural production activities. Increasing the income and well being of the rural poor will be closely related to improvements in agricultural productivity and sustainable increases in agricultural production, both for home-consumption and marketing. The Agricultural Services and Producer Organizations Program will contribute to the CAS poverty alleviation objective in two ways: (i) by accelerating technological changes and generating sustained productivity increases through accountable and cost-effective agricultural services institutions, responsive to the needs of producers, especially the poorest producers, most of whom are women; and (ii) by empowering producers and strengthening the capacity of their organizations, so that they can effectively articulate their demands and ensure that public services respond to their needs. 2. Main sector issues and Government strategy. Recent trends. Although statistics are not reliable, there is little doubt that agricultural production has stagnated or even regressed since the beginning of the decade. The competitiveness of the sector improved since the parity change of the CFA in January 1994, but the supply response appears to have been more muted than in other countries of the CFA zone. While pockets of dynamism exist (horticultural crops), there has been little sign of increased production/intensification, neither for the main cash crops of cotton and groundnuts, nor in the best endowed regions in terms of rainfall (except for Sine Saloum). Irrigated rice production in the Senegal river basin, which has received extremely costly investments over the last three decades, is confronted withi serious structural constraints that need to be fully addressed if it is to ever compete with imports from Asia. Constraints. (a) Natural resources. Agriculture is predominantly rainfed and production is characterized by low input, low output technologies. Annual rainfall is low and irregular. Soils are generally of poor quality, lacking organic matter and important micro-nutrients, and prone to rapid degradation if inadequately managed. Water and biomass resources are limited and fragile. A crucial issue, which will affect future agricultural development, is the increasing degradation of natural resources (soil and rangeland degradation, loss of forest cover, decapitalization of marine resources and lowering of water table). The limited natural resource base and its degradation is one of the causes of agricultural stagnation or even decline in some areas which have been particularly over-exploited in the past. The Groundnut Basin is a particularly striking example of a region where the decline and degradation have been severe. The climatic risk is also a major factor in sustained production and productivity increase. The effect of a drought reverberates for many years by its negative impact on productive assets and on the behavior of farmers who select low risk/low productivity production systems. (b) Economic Reforms. Over the past decade, albeit slowly and with considerable internal resistance, the Government has reduced its omnipresence and support to private monopolies in input pricing and distribution, imports of agricultural products and inputs, and processing and marketing of agricultural products. However, the sector is not yet completely liberalized. The State is still involved in some sub-sectors. Public and private monopoly situations still exist, albeit through covert forms-for example in the fertilizer industry and imports-thereby reducing farmers' income and affecting their incentives and ability to invest. Exporters still face a multitude of regulatory hurdles that limit their ability to penetrate increasingly competitive export markets. (c) Institutional Reforms. It is now official policy that the State should focus on providing a policy environment supportive of private sector development and on the provision of public goods Page 7 (basic social services and infrastructure, environmental protection). Progress has been made: producer organizations have recently emerged as credible interlocutors of the State and decentralization is gradually empowering local governments and rural communities to participate in the management of their resources and development.1 The 1995 Agricultural Development Policy Letter, as well as the more recent Agricultural Strategy Document (Docziiient d'Orientation Straligique), clearly state that tile responsibility for several functionis that were previously exclusively within the Ministry's mandate will now be shared with producers' associations. However, much remains to be done to restructure public agencies. Changinig their centralist and dirigiste culture towards a supportive role will further strengthen farmers organizations and provide a concrete contenit to the on-goinig decentralization process. Also, the institutionial framework for access to and managemenit of natural resources-such as lanid, water, and forests-needs to be revised to improve productivity and ensure conservation. (d) Weak producer orgaanizationis. Though producer organizations are organized up to the national level, they remaini by and large not as effective as they could be. Their weaknesses stem from managerial and organiizationial difficulties: they lack well trained human resources; their capacity to commllun.icate with their members and to keep informationi flowing in both directions is weak: and they lack finanicial leverage. In the case of producer organizations which have been goverinmenit- or donor-indticed, their leaders' legitimacy is often in doubt. (e) Access to basic services. Farmers' adoption of improved technologies has been limited. The research system-lacking efficiency and responsiveness to farmers' concerns-has been slow to develop techinologies appropriate to farmers' socio-economic and agroecological conditions. A largely unlresponisive public extensioni service ineffectively disseminates available technologies. While a large percentage of farmers are women, agricultuiral services are not readily available for them. Farmers, especially women, have difficulties accessing credit and agricultural inputs. Rtural populations' access to basic education and health services and to clean water is very low, and will need to be greatly improved if Senegalese farmers are to become more productive and open to technological innovations and market opportunities. (f) Access to markets. Because of the poor network of rural/feeder roads, large tracts of rural areas are not adequately linked to markets, thus hindering farmers from fully exploiting the new opportunities offered by increased urban demand and export possibilities. 3. Sector issues to be a(ldressed by thle project and strategic chtoices. In agreement with the government, the focus of Bank assistance under the proposed Program will be on: (i) institutional reforms, including the restructuring of the Ministries of Agriculture and Livestock, to make agricultural services accountable, more demand-driven and cost-efficient and to transfer or share with the private sector and civil society a number of functions; (ii) generation and transfer of technologies to improve agricultural productivity in a sustainable way, diversify, and conserve the natural resource base; (iii) empowerment and capacity-building of producer organizations. To date, implementation of these policies has resulted in the liberalization of rice imports in October 1995, the privatization of the rice mills previously operated by Societe d'Amenagement et d'Exploitation des Terres du Delta du Fleuve (SAED), and the liquidation of the Price Stabilization Agency (CPSP) in February 1996. The Goundnut Oil Company (SONACOS) was offered for sale (unsuccessfully) in December 1995 and the groundnut price stabilization fund was restructured during the same period. With respect to the cotton subsector, Cotton Development Company (SODEFITEX) is being reorganized to separate its public service activities from its agro-industrial activities and to bring the agency under common law status. In the medium term, the objective is that SODEFITEX should retain only the agro- industrial activities strictly related to cotton, which will allow for privatization. Page 8 A continuation of previous research and extension projects? The operation was first intended to be a continuation and a merging of the Agricultural Extension and Agricultural Research 1I Projects. The mid-term reviews and implementation completion reports for these projects had identified one of the problems as being the lack of accountability of the research and extension institutionis to producers and lack of responsiveness to their needs. Failure to involve the maii users in the technology generationi and dissemination process had led to several inefficiencies, among them: (i) the generation and extension of technologies that do not correspond to the diversity of socio-economic and agroecological constrainits and fail to take into account an important source of informationi, farmers' indigenous knowledge; and (ii) delays in technology dissemination and adoption. A three-pronged approach to agricultural services with a "support to producer organizations" component. To address the above issue, the Program was designed from the start to bring together technology users and suppliers, ulider a three-pronged approacih to agricultural services, based on collaboration of producer organizations, research, and extensioni. Producer organizationis have a crucial role to play in defining the research and extensioni agenda and priorities, in accelerating the diffusion of information and in providing services to producers to facilitate technology adoption. Therefore, they can bring about more demand- driven and accoulitable agricultural services. However, producer organizationis will need support to build up their capacity before they can play an effective role in the tecihnology developmenit and diffusion process, whilch is why a support-to-producer organiizationis component was introdIuced. Support to producer organizationis: Unit withini the extension services or social fund? To implement the support to producer organizationis program (PO), the idea of having a unit within the extension services that will provide technical support to PO's was considered and rejected. As part of capacity-building, it is essential to empower producers to ma;ke their own decisions as to the type of support they need and whiich supplier will provide this support to themil. Hence the decision to finance the support to PO's tilrougih a social fund mechanism: the Demand-Driven Rural Services Fund (DDRSF), with an indepenidenit private agency (NGO or other supplier of services) as a facilitator (See Annex 2). Extensioni Services. Lessons learned from the previous project lead to the conclusion that the present institutional set up (i.e. many agencies involved in extension, with extension being for most of them a secondary activity) had lead to the suboptimal performances observed. Hence, the decision was made to create one single umbrella institution for extension services. The next question was the legal status of the umbrella institution. Making the institutions accountable to the beneficiaries was a major consideration that lead to rejecting two options for the legal status. One option was the creation of a Directorate for extension services within the Ministry of Agriculture (MA), the other was to create the National Agency for Agricultural and Rural Counsel (ANCAR) as a public agency. Both options meant that the extension services will remain under the public service, albeit with more autonomy from the ministry with the second option. The status finally chosen, that of a societe a participation publique majoritaire, allows for the participation of stakeholders in ANCAR's capital (up to 49%), in its governing bodies and in the financing of its recurrent costs. This should not only ensure accountability but also the sustainable funding of the Agency, provided beneficiaries are satisfied. It also allows the beneficiaries to progressively take over the control of the agency through the buying of capital shares. Hence it is envisioned that ANCAR will evolve to become a sociefe ai participation publique minoritaire at the end of the first phase of the Program. This status was also adopted to give ANCAR the maximum degree of autonomy, which it will not have had under the other options. ANCAR will have the flexibility to adopt business-like management practices, including hiring staff under contractual arrangements and a system of personnel incentives and promotion that will reward best performance and ensure accountability to users. Page 9 Research. Financing only research on agricultural production under ISRA, as it had been done under the first two projects was considered unsatisfactory. In Senegal, the opportunities for added-value and growth in agroprocessing may be relatively important compared with productivity gains in production. Thus, the Implementation Completion report of the Agricultural Research 11 Project recommended to invest simultaneously in postharvest and production research. Hence, the inclusion of the Food Technology Institute (ITA) under the Program. Perhaps the most important institutional reforms introduced was to step away from the national research institutes (ISRA and ITA) as the exclusive buLilding blocks for inproving research capacity and performance. The challenge for Senegal is to determine how to exploit the complementarities between the various actors involved in researchr-mainly the University, agricultural schools and NGOs-so as to allow additional scientific skills and resources to be tapped and therefore develop a well-articulated research system. Toward this end, the Program will separate the function of research funding from that of execution, through the creation of the NARF. A separate funding body has a number of advantages over the direct funding of an executing institute: (i) it allows for effective involvement of research users and stakeholders in priority setting and resource allocation; thus it interests themil in funding research and provides an enablinig environiienit for sustailiable fuLidinig; (ii) it allows other research suppliers (other than ISRA and ITA) to have access to funding, tihus it ensures an optimal utilization of scarce human and physical resources, provides the financial tool for building a national agricultural research system; and promotes collaboration among all entities involved; (iii) it improves the scientific quality and relevance of research activities through scientific rigor in proposal selection and implementation through external control and reviews, void of conflicts of interests; (iv) it ensures that funding is effectively allocated to the team of researchers whose proposal has been approved; (v) it enforces researchers' accountability for results. Restructuring of the Ministry of Agriculture. The restructuring of the Ministry was not part of the Project design at first. During the course of project preparation, it appeared that it could not be left aside for several reasons. The creation of ANCAR introduced a new institution within the complex Senegalese institutional arrangement. Other parastal agencies such as the Extension Services Agency for the Peanut Basin (SODEVA), SAED and SODEFITEX also have a mandate for supplying extension services in their geographic area. SODEVA was expected to close down as a result of the creation of ANCAR, the mandates of SAED and SODEFITEX were expected to be revised, not only as a result of ANCAR's creation, but also because of the Ministry redefining its public service function, and transferring or sharing many functions to civil society and the private sector. In addition to redefining the institutional context, there were additional considerations for adding this component. Since the overall objective of the Program is to improve the performances and responsive- ness of agricultural services as a whole, supporting the Ministry's effort to strengthen its public services functions and to transfer its other functions, appeared as an essential complement to the other components. Finally, under the restructuring, the Ministry was expected to relocate its services to the regions, in line with the recently adopted laws on decentralization. The Bank should be supporting these efforts. Page 10 4. Program description and performance triggers for s ubsequent loans The Program will support the following components: (a) Research funiding, through the NARF. NARF will finanice priority research themes on a selective basis and Linder contractual arrangemenit. Research proposals will come mainly from ISRA, with a research mandate in agricultural production, and ITA with a research mandate in post-harvest and agroprocessing, but also from the Universities, NGO's, or other instittites, or from two or more of these instittitions presentinig a joinlt proposal. (b) Research instituite development (ISRA and ITA). The Program will support ISRA and ITA instittitionial development and investments (civil engineerinig, traininig and consultant services, equipmiient purchase). (d) Agricultiural Extensionl . The Program will invest in extension activities through ANCAR. (e) Support to producer organizationis (POs), implemented by ASPRODEB. The Program will strengthen producer organiizationis throughi trainig, communication and supporting access to basic services. (f) Strengthening public service functions of the Ministries of Agriculture and Livestock. IDA will commit to the second credit only when the GOL will have achieved the agreed key milestones. (See section A. 3). For the third credit, the key indicators will be that the institutional reforms achieved duiring the first phase have been consolidated during the second phase and that the institutions involved fuLictioni according to their manual of procedures. Since APLs are intended to be flexible, adjustments to the milestonles, loan amounts and timing are likely to change as the Program unfolds. Before committing subsequenit credits, however, there will be a joint Government/lFAD/IDA appraisal to determine whether agreed key performance indicators are satisfied and sector priorities remain valid. C: Project Description Summary 1. Project contponents (see Annex 2for a detailed description and Annex 3for a detailed cost breakdown). The proposed operation (the project) will be the first phase of the long-term Program (10 years). The project will support the same components as the 10-year Program, with the specific first phase activities as described below. (a) National research funding. The Project will help establish a National Agricultural Research Fund (NARF) and begin research proposal funding. (b) Research institute development. The Project will support ISRA and ITA institutional development and sustainability through: (i) improving ISRA's and ITA's management of financial resources to ensure timely delivery of funds to research teams; Page 1 1 (ii) streamlining research infrastructure to reduce recurrent costs through consolidation and closing down of non essential substations and laboratories, improving infrastructure and equipment maintenance, and upgrading laboratory and station equipment; (iii) improving personnel qualifications, through higher education degree training, as well as short-term training. Toward this objective, for both ISRA and ITA, the Project will finance rehabilitation of infrastructure to complement and consolidate the infrastructure developmenit of the predecessor project. The Project will provide field equipmenit for stations, scientific equipment for laboratories, computer equipment, vehicles, and funids for training. (c) Agricultural Extension. The Project will help create the ANCAR, a semi-public agency co- managed by the government and producer organizations with mechanisms to guarantee accountability to producers. The Project will support part of the operating costs of extension activities and all investments in humani resources (training and capacity-building, both on techinical aspects as well as communication and extension methods) and physical infrastructure, mainly rehabilitation of buildinigs, computer equipment and vehicles. (d) Support to producer organizations (PO's). The Project, implemented by ASPRODEB, will provide traininig, means of communication, techiical and organizational support to POs to assist them in providing services to their members and strengthien their capabilities to organize, manage and negotiate. The objective of the support is that producer organizations acquire more professional capabilities and financial strength, to make them better able to: (i) provide services to producers, to help them access inputs, credit or marketing; (ii) participate in adaptive research; (iii) disseminiate information on technologies on production and marketing; and (iv) be effective partners in the agricultural technology and transfer system through their capacity to diagnose, aggregate, prioritize, and articulate their members' needs and constraints. The Project will do so through a Demand-Driven Rural Services Fund (DDRSF), available to producer organizations at the local level on a matching grant basis. In addition to training and organizationial support, the DDRSF will help producer organizations to: (i) have access to techinical and management advice to assist them in the implementation of economic activities (for example, specialized agricultural technical skills; preparation of the documentation to access credit; micro-enterprise management); and (ii) undertake R&D activities jointly with researchers and extension agents and have access to seed money to facilitate the adoption of innovations on a matching grant basis. (e) Strengthening public service functions of the Ministries of Agriculture and Livestock. The project will assist the Ministries of Agriculture and Livestock to: (i) devolve services to regional directorates; (ii) strengthen policy formulation and monitoring and evaluation functions by providing support to the Directorate of Policy Analysis of the Ministry of Agriculture and to the Policy Unit of the Ministry of Livestock; (iii) provide support to the technical Directorates of the Ministries to perform their regulatory functions; and (iv) provide support to further privatize both veterinarian and pest control functions, as well as to help organize a network of certified seed production based upon specialized producer organizations. Page 12 First Phase Project Costs (in US$ millions) Components Indicative IDA Percent IFAD Percent Costs finanicing IDA Financingu IFAD financed financed I. NARF 4.5 3.7 82 0.7 16 2. ISRA 6.4 3.2 47 1.2 14 3. ITA 2.3 0.9 39 0.2 11 4. ANCAR 11.0 7.5 69 1.2 12 5. Producer Organizationis 4.9 3.5 73 0.9 18 6. Ministry of Agriculture 9.3 3.3 35 1.0 11 7. Ministry of Livestock 6.0 2.8 47 0.7 12 8. DDI 0.7 0.5 72 0.1 18 PPF 2.0 2.0 100 Total 47.1 27.4 58 6.0 13 2. Key policy and institutional reforms suepportedl by the Project (a) Research autonomy and accouLntability throuLgl separation of funding from implementation. The Project will help the Govermiienit of Senegal (GOS) set up an autollomllous NARF which will be managed independently from the implementinig institutes. The NARF will become a foundation or any other legal entity governed by private law by the end of year 2001. This is a trigger conditioni for the second phase of the Project. (see above, B3. strategic choices). (b) Privatization of the extension services through the creation of ANCAR. ANCAR's legal status is that of a sociLj e; parlicipalion publiquie 1n7aoritaire (a public/private agency with the State holdinig a majority in the capital). Durinig the first plhase, the composition of the capital will be the following: Government of Senegal: 51 percent; producer organizations: 28 percent; rural communies: 7 percent; private companies: 14 percent. ANCAR Board will have four government representatives, thlree representatives from producer organizations, three from the private sector, and two from the collectivites locales. It is expected that the government will become a minority sharelholder and that producer organizations, the private sector and civil society will take over the ownerslhip of ANCAR at the end of the first three years of its implementation. The Agency will theni become a societe a participation publique minoritaire. The evaluation at the end of the first phase will determine the trigger condition for the second phase of the Program. After an initial two-year period, all ANCAR staff will be contractual. Initially, staff will be recruited for a fixed probation period of two years. As the majority of ANCAR's personnel will probably be civil servants, they will be seconded from the public service during the first two years. At the end of the two-year period, staff performance will be evaluated, before the decision be made to recruit them. At that time, civil servants may decide to either join ANCAR definitively, in that case they will have to resign from the civil service, or else return to their Ministry of origin. The contractualisation of ANCAR staff at the end of the initial phase is a trigger condition for the second phase. Extension activities will be undertaken on the basis of annual or multiannual contracts between ANCAR, on the one hand, and the producer organizations and/or the rural communes on the other. The contract will specify the content of the extension activities, the expected results, the operating budget and the contribution of the producer organizations or rural commune to financing. Page 13 (c) Reorganization, transferring or sharing of the Ministries' functions. SODEVA is in the process of being closed down. The share of responsibilities between the various parastal agencies (SODEFITEX, SAED and Societe de Developpement Agricole et Industrielle du Senegal (SODAGRI)), the Ministries and the newly created ANCAR will be redefined by the end of the first phase. By that time, the parastal agencies and the Ministries will have retained only those functions which cannot be transferred or shared with the private sector or the civil society. Hence, the cotton-production related activities of SODEFITEX will have been privatized. Some of SAED irrigated perimeter and equipment maintenance functionls will have been privatized or transferred to producer organizations. By the end of the first phase, if ANCAR performs successfully, all of SAED and SODEFITEX extension activities will have been transferred to ANCAR. The Ministry of Agriculture will have privatized the part of the pest control services which can be privatized. The privatization of veterinary medicine of the Ministry of Livestock will be completed. The Project will provide training for staff of the Ministries wanting to set up their owIn private services, as well as the finanlcial and technical support to help them get established. All these refonns are expected to take place during the first plhase of the Program and are trigger conditions for the second phase. (d) Producer organizations' empowerment. In addition to the fact that producer organizations will become the main shareholders of ANCAR after the first phase, the main instrument for producer organizations empowerment will be the DDRSF, a financing mechanism similar to the Demand- Driven Rural Investment Fund. This Fund will be accessible to regional or local level producer organiizations on the basis of the presentation of a capacity-building project. The project will be reviewed by a local or regional level committee made up of producer organization representatives. The Committee will make the decision to fund the proposal, on a matching grant basis. It is envisioned that this mechanism will support capacity-building, while leaving the decision-makinlg with regard to the content and the providers of the services to the beneficiaries themselves. The process, from the design of the proposal to the selection by the committee, will be facilitated by a NGO. (e) Decentralization. The Project will help the ministries devolve their services to regional directorates. In addition, ANCAR will be a fully decentralized agency, operating out of 10 regional directorates with the appropriate financial and administrative autonomy. The main functions of the headquarters will be to provide support to the regional directorates in the following areas: (i) R&D methodology, (ii) training (communication extension methods, and agricultural technologies), (iii) ex-post financial management and accounting control, (iv) human resources management procedures for personnel annual evaluation and career development, (v) establishment of a referential data bank on agricultural technology and results of on-farm research, and (vi) overall extension program monitoring and evaluation. Decision-making regarding the content of the extension activities will be made at the rural community levels, so that the extension activities can be tailored to the specific needs and capacities of farmers and their communities. 3. Benefits and target population. Rural poverty alleviation With 45% of the rural population being below the poverty line, earning most of their revenues from farming, the Program will contribute to broad-based poverty alleviation in the country. It will do so by supporting technological change and innovation in crop, livestock, fishery and forestry production and in agroprocessing, thereby improving returns to all production factors, including land and labor. Strengthened producer organizations will be able to provide better services to their members to facilitate Page 14 technology adoption, by improving access to inputs and facilitating marketing. The participatory approach and fine-tuning of technical recommendations will help address the needs of the poorest farmers, many of them are women. Indeed, rural women who make up over 60% of the farming population and are often the major providers of their families will particularly benefit. Increased incomes for women will improve household food-security and well-being, as women spend most on their earnings on their families, especially on their children. Capacity building Through its producer organizations component, the Program will invest in social capital, strengthening grassroot organizations capacity to negotiate with actors and institutions that regulate: (i) access to services, (ii) the functioning of input and output markets; and (iii) social access to means of production. Strengthening local civil society capacity will help influence the processes through which value derived from rural production activities is distributed and used, as well as the extent to which it is retained in local communities. Empowering grassroot organizations is a social instrument for rural people to draw themselves out of poverty. Improved governance Strong grassroot associations suclh as producer organizations improve governance: they foster more effective and transparent public services at all levels. User's participation in the decision-making and resource allocation of research and extension institutions will improve the transparency in priority setting and resource use. 4. Institutional and implementation arrangements. Three technical ministries (Ministries of Agriculture, Livestock, and Scientific Research) as well as iSRA, ITA, NARF, ANCAR, ASPRODEB and the Directorate of Debt and Investment (DDI) of the Ministry of Economy, Finance and Planning are concerned with the Program. General guidance for the implementation of the Program and for monitoring its results will come under a National Coordination and Monitoring Committee integrated with representatives of these institutions. The terms of reference and composition of the National Coordination and Monitoring Committee will be adopted through an arrete. Committees with similar composition will also be established at the regional levels. These Committees will provide the framework for research, extension, producers organizations and the Ministry services to come together to program, review and take stock of their joint activities. Annually, in addition to reviewing implementation and coordination issues, the National Coordination and Monitoring Committee will review each agency's work program, before they are presented to IDA, the other donors involved, and the respective governing bodies of each agency. Executing agencies Seven executing agencies are involved, each one of them implementing a separate component: (i) NARF (Research funding); (ii) ISRA (Research institute development); (iii) ITA (Research institute development); (iv) ANCAR (Extension); (v) ASPRODEB (Support to producer organizations); (vi) Ministry of Agriculture and (vii) Ministry of Livestock (Strengthening key ministerial functions). Each of the executing agencies has a well-defined program and budget, corresponding to one component. Therefore, component implementation is completely delineated to ensure maximum flexibility. In addition, the DDI will ensure adequate financial implementation of the Project. Annex 2 presents the organizational details of each of these agencies and the activities they will carry out under the Project. Page 15 Research Funding through NARF. NARF was established under the Ministry of Agriculture but will be privately managed. It is expected that NARF will become an entity governed by private law during the course of the first phase. Research Institute Developnient.. The Institutes concerned are iinplemnenting the Instituites concerned. ISRA and ITA are public agencies with the legal status of etablissemnent public c; caractiˇre scientifique et technique. Extension. ANCAR will implement the extensioni activities. It is a public/private corporation with the legal status of societe c; pairticipationi pubvliqte inajoritaire to become a societe e participation publique ninoritaire after the first phase of the Project. The suppport to prochzicer organi:ations component will be implemenited by the Association Senegalaise polar Ici Promtotioni dles Petits Projets dle DL;velo)pemIeit i lei Base (ASPRODEB). ASPRODEB has NGO status and is integrated with 13 national federations of producer organizations or producer-related federationls 2. ASPRODEB was originally created to manage, through AGEP (Agence cle gestion de projet) tle IDA/IFAD cofinanced Small Rural Operations II Project (IDA Cr. 1992, IFAD Loan SRS- 01 80-SE) whichi will terminiate on Junle 30, 1999. The strengtheing7 Qf Min7istries 'fufnCtiOnS will be implemented by the technical ministries concerned, that is the Ministry of Agriculture and the Ministry of Livestock. 5. Accournting,A II(iting antdReporting. Each implemiienitinig agency will have a fiianlcial and accounting managemenit system -in place and certified by an indepenident auditor before credit effectiveness, except for ISRA, for which this is a disbursemenit condition. ISRA is puttilng in place an improved financial management and accounting system and will have to be restructured financially before receiving IDA funding (condition of component disbursement). As part of Project preparation, ITA is recruiting a financial management and accounting firm which will be responsible for assuring the quality of ITA accounts and financial management for the first two years, helping the Institute recruit staff (if necessary) and training accounting staff. ANCAR will put in place, with the support of an international accounting firm, a financial management system, including cost accounting (by activities and regions, in order to implement decentralization and to keep track of contracts with producer organizations and rural communities). The accounting firm will be responsible for producing an opening balance, recruiting financial management staff and accountants, and training them in the system. It will be expected to ensure the quality of the financial statements of 2 These 13 federations are the following: "'La Federation nationale des organisations non-gouvernementales du Senegal" (FONGS). a federation of multi-commodity small-holders; "La Fedration nationale des groupements d'interet economique des horticulteurs" (Vegetable and fruit growers); "La Federation nationale des groupements d'interet economique des pecheurs" (fishermen and fish processors); "La Federation nationale des groupements d'interet economique des eleveurs" and "l'Union nationale des cooperatives d'eleveurs du Senegal" (livestock producers); "La Federation nationale des groupements de promotion feminine du Senegal" (women associations); "I'Union nationale des cooperatives agricoles du Senegal" (groundnut growers); "'Union nationale des cooperatives d'exploitants forestiers du Senegal" and "La Federation nationale des organismes d'exploitants forestiers" (wood-cutters and charcoal makers); "Le Comite national interprofessionnel de l'horticulture" (all vegetable production stakeholders); "La Federation des producteurs de banane de Sedhiou" (banana and plantain growers); "La Federation des unions des groupements d'interet economique de Ngallenka"; "l'Union des groupements d'interet ecomomique des revendeuses de poisson" (fish traders); and "Association nationale des presidents de communautes rurales", (association of the Presidents of rural communities). Page 16 ANCAR for the first two years of operation and will be released of this responsibility once these statements have been audited and the recommendations of the independent auditor have been implemented. The Project will become effective once the accounting firn is in place and the manual of accounting procedures has been adopted by the ANCAR Board. All agencies will maintain their accounts in accordance with International Accounting Standards (IASs) to reflect their operations and financial positions and will have the accounts (includinig Special Accounts and Statements of expenditures) audited, in accordance with the lASs, by a firm of independent external auditors acceptable to IDA. Recruitment of such a firm on a one year renewable contract for each implementing agency is an effectiveness condition. Assuranices were obtained at negotiations that the audited accounlts and the auditors' report, including the Management Letter, and a statement as to whether or not Bank funds had been used for their intenided purpose, will be submitted to IDA within six months of the end of the fiscal year of each agency. By September 30 of each year, starting in 1999, each implementing agency will submit to their Board and their respective ministries, with a copy to IDA, their annual work programs and budgets. The report formiat will adequately portray activities and unit costs, and provide the basis for proper management for each implemeinting agency and operation of a sound accouL1tillg system. The budgetary proposals will include quarterly cash flow statements. Each participating agenicy will submit semi-annual reports and management accounts to their Board and/or their supervising ministry, showing budgeted and actual expenditures, statements of progress achieved and the objectives for the forthcoming quarter. Semi-annual reports will contain summaries of to-date expenditLures and use of funds by source, plus a forecast of withdrawal of IDA loan proceeds by quarter for the forthcomiinlg year. During negotiations, based on an assessment of capabilities, the Government agreed to recruit a disbursement specialist to strengthen the capacities of the Direction de la Dette et des Investissements of the Ministry of Economics, Finances and Planning. This person will: (i) set up a data base for the budget of the seven components and monitor the expenses against the budget; (ii) monitor and reconcile the special accounts; (iii) check the statement of expenditures for conformity of presentation and eligibility of expenditures; (iv) help the implementation agencies with the preparation of withdrawal requests; (v) monitor the timely submission of the audit reports. Procurement arrangements. Bank procurement guidelines will apply. Procurement plans for goods and civil works will specify source of funds, timing and procurement methods (whether ICB or other) and will be accompanied by an updated Procurement Schedule for the remaining life of the Project. For sub- projects of the Producer Organizations component, under the "Services Fund" category, the Guidelines for Simplified Procurement and Disbursement for Community-based Investments will apply (Annex 6). During negotiations, based on an assessment of current capacities, the Government agreed on a program to strengthen various entities handling procurement activities. Basically, each entity will receive support and guidance from a procurement specialist hired by the Ministry of Economics, Finance and Planning for the project and working out of the Direction de la Dette et des Investissements. In addition to the provision of support when needed the procurement specialist will have to clear all procurement decisions and documents sent to the Bank. Each entity will be reinforced through: (i) the recruitment of qualified staff and ad hoc short-term consultant services, as required; and (ii) in-service procurement training of staff. The Program will assist eligible producers' organizations (PO) through Sub-projects funded in the form of grants payable in tranches as described in the Sub-project management manual, and under contractual Page 17 arrangements between POs and ASPRODEB. Financial will be carried out by an independent firm -- selected by ASPRODEB in accordance with the procedures applicable for consultants -- annually to assess that completed sub-projects have been implemented according to sub-project proposal and contract (See Annex 6). Similarly, technical audits will be carried out by independent agencies (NGO's or other supplier of services). The Program will assist researchers to carry out research activities through contractual arrangements between NARF and the research institutions where the researchers operate. Research projects' eligibility, review and selection procedures will be described in the Research project management manual of NARF. Projects will be funded in the form of grants payable in tranches. NARF will carry out financial and technical audits, with the help of specialized consultants regularly, as required in the Research project management manual. Page 1 8 D: Project Rationale 1. Project alternatives considered and reasons for rejection. See "Sector issues to be adl(lressed by the project and strategic choices" on page 6. 2. Major related projects financed by the Bank and/or other development agencies (conipleted, ongoing and plannel): Sector issue Project Latest Supervisioni (PSR) Ratings (Bank-finianiced projects only) Implementationi Development Progress Objective (I P) (DO) Bank-financed Agricultuiral Diversification Agricultuiral Researcil II (Cr. S S and Intensificationi 2107-SE). C'onhipleted Agricultural Services Project (Cr. U U 2108). Compleled Small Rural Operations 11 S S (Cr. 1 992-SE). Ongoing Agricultural Policy Agricultural SECAL S S (Cr. 2738-SE). Comipleted. Agricultural Export Promotion S S (Cr. 30170) OnIgoing Rural Infrastructure National Rural Infrastrmcture Project (Unider preparationi) I FAD-finaniced Agric. Development Agric.Development Project in HS S Matam (Loan SRS-030-SE) Village Organisation Village Organization and HS HS Management Project (Loan 315 SE) Other development agencies EU Revitalization of the groundnut industry EU PARC (Panafrican campaign against bovine disease) AFD PIDAF (Interim Program of the River Valley Ag. Development) CMS (Mutual Credit for Senegal) IFAD PROMERE ADB PAPEL (support to livestock) USAID Participatory management of natural resources IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory) Page 19 3. Lessons learned and reflected in the project dlesign. Two previous Bank projects are particularly relevant to the proposed Program and one ongoing one. The Agricultural Research 11 Project (Cr. 2107-SE), the Agricultural Services Project (Cr. 2108-SE), and the Small Rural Operations 11 (Cr. 1992-SE). Under Agricultural Research II Project: (i) noticeable research results have been achieved in areas sucli as horticulture, livestock production, agroforestry, and natural resources management; (ii) ISRA headquarters were built and some infrastructure was rehabilitated; (iii) research programming and scientific management have been strengthened; and (iv) improved procedures for experimental station management and for equipment and infrastructure maintenance have been introduced. Under the Agricultural Services Project: (i) staff involved in the project have received considerable in-service training in technical matters and in extension management principles; (ii) a number of yield increasing technical recommendations concerning crop and livestock production and natural resource conservation have been adopted by farmers; and (iii) many farmers have been trained in functional literacy and numeracy. However, the impact of research oIn agricultural developmenit remained insufficient because of: (i) the lack of a participatory approach for research design and testing; (ii) lack of accountability to producers; and (iii) the fact that important sub-sectors such as post-harvest and agroprocessing were not included in the investment. In addition, a number of organizational and management issues remain unresolved under that project: (i) a civil service attitude and lack of a performance review and reward system based on results; (ii) an overextended network of infrastrLctures (experimental stations and laboratories) that caninot be maintained adequately; and (iii) weak financial and accounting management. The fundamental weakness of the Agricultural Services Project was its institutional set-up. The extension managemenit Ulnit and its Director did not have authority over the staff of the many different executing agenicies with their multiple mandates, other than extension. This made it next to impossible to enforce adherence to agreed work norms and principles and explains inefficiencies and the lack of supervision of the project at different levels. Most issues mentioned by the 1993 and 1994 reviews as well as the 1995 Beneficiary Assessment remained valid at project closing: (i) lack of accountability of extension agents to producers and insufficient use of participatory diagnosis, programming and evaluation methods; (ii) insufficient supervision and technical back-up of front-line extension workers by subject matter specialists and national and regional extension managers; and (iii) insufficient attention to women producers' needs: only 12 percent of extension agent contacts were with women or mixed groups. In addition, the beneficiary assessment emphasized that the way extension agents established and worked with "contact groups" was problematic. One major weakness was that extension agents were not paying enough attention to the already existing community associations or producer organizations and not working through them in setting up their contact groups. Under the IFAD cofinanced Small Rural Operations II Project: (i) a participatory mechanism for the management of project resources has been put in place; (ii) private project management capacity has been strengthened; and (iii) a process of decentralized planning and implementation of development activities is being tested. These lessons from previous projects have been incorporated into the project design. See "Sector issues to be addressed by the project and strategic choices" on page 6.. 4. Indications of borrower commitment and ownership. The Senegalese govemment and major beneficiaries and stakeholders stand behind the institutional reforms undertaken under the Program. The creation of ANCAR has been decided during an interministerial council (March 1997). A number of regional workshops have been held to gather Page 20 feedback from users and provide information on the creation of ANCAR as a demand-driveni extension services agency. The Forum of Federation of Producer Organizations, CNCR3, contributes to ANCAR social capital (28%), as well as the Association of the Presidents of Rural Communes (APCR) and the Assembly of Regional Councils (7%). The decision to create the NARF was made during a nationial level workshop involving all major stakeholders. The preparatory wvork for NARF and the workshops were funded by FAO and USAID. The Bank gave full support to the idea and provided feedback to the consultant and workshop reports. The Ministry restructLring has been discussed durinig a number of workshops at the national and regional levels and consenisus has been reached on the new directions. On the side of producer organizationis, CNCR has also held a number of workshops at the national and regional levels to gather feedback and ideas on the proposed componelnt. 5. Valiue add(led of Bank and IFAD support in this project. Besides providing the largest share of finanicial resources to implemiienit the Program, the World Bank has made and will continue to make a significant contributioni to the ambitious institutionial reforms envisioned unlder the Program, especially with regard to: (i) the creation of an autonomIIous agency for extension services with businiess-likie manag-ement practices and the involvement of producers: (ii) the creation of an independenit NARF; (iii) research and extensioni contractual arrangements with users; (iv) the support to producer organizationis througll a DDRSF. The design team has been able to draw on1 the experiences and lessons from other regions, especially: (i) Latin America and Asia for thie NARF; (ii) experiences from Latin America and other African countries (C6te d'lvoire) have been very useful to establish a demand-driven and accountable extension agency; (iii) lessons from the World Bank Research Project: "Decentralization, fiscal systems and rural development" were used to set-up the DDRSF. Specialized groups within the Bank (ESDAR and RDV) were important sources of information for good practices and technical support for the institutional reforms both for extension and research. The ideas developed within the Bank on investing in social capital as a means to achieve sustainable development provided the conceptual support for introducing the component on producer organizations These ideas are now well documented in Robert Picciotto and Eduardo Wiesner "Evaluation and Development: The Institutional Dimension". Two other documents were particularly useful: "Strengtheninlg National Agricultural Research Systems, Policy Issues and Good Practice" by Derek Byerlee and Gary E. Alex, (RDV) and "Agricultural Extension and Research, Achievements and Problems in National Systems" by Dennis L. Purcell and Jock R. Anderson (OED). The Bank team also drew on effective partnerships with other donors and agencies, especially with the French Cooperation and the Centre de Cooperation Internationale en Recherches Agronomiques pour le Developpement (CIRAD) for the producer organizations component, and on USAID experiences for NARF. IFAD has a long experience in participatory rural development and has contributed significantly to the design of the Producer Organizations Component. Represented through Senegal's rural sector with six ongoing investment projects, IFAD will be instrumental in facilitating the harmonization of individual 3 CNCR= Conseil National de Concertation et de Cooperation des Ruraux. CNCR is integrated with nine producers' federations, also part of ASPRODEB: "La Feddration nationale des organisations non-gouvemementales du Senegal" (FONGS), a federation of multi-commodity small-holders; "La Federation nationale des groupements d'int6ret economique des horticulteurs" (Vegetable and fruit growers); "La Federation nationale des groupements d'interet economique des pecheurs" (fishermen and fish processors); "La Federation nationale des groupements d'interet economique des eleveurs" and "l'Union nationale des cooperatives d'eleveurs du Senegal" (livestock producers); "La Federation nationale des groupements de promotion f6minine du Senegal" (women associations); "l'Union nationale des cooperatives agricoles du Senegal" (groundnut growers); 'Union nationale des cooperatives d'exploitants forestiers du Senegal" and "La Federation nationale des organismes d'exploitants forestiers" (wood-cutters and charcoal makers). Page 21 development projects with the interventions of the present program and thus ensure complementarity of the various initiatives in support of the rural sector E: Summary Project Analysis (Detailed assessments are in the project file, see Annex IV) 1. Economic (See Annex 4). Cost-Benefit Analysis: NPV=FCFA 12 billions at an OCIR of 12%; ERR= 19% The analysis was carried out by standard type of farms (one or two for each of the six agroecological zones for cropping activities) and standard types of herds (two types of herds for each of the two main agroecological zones for livestock activities) for a total of 12 different cropping or herding situatiolls. Overall benefits for the project were assessed by aggregating the farm budgets corresponding to each situation. Over the life of the project, yield increases were projected to increase between 15% to 35% depending on the zone and cropping system for cropping activities, and between 30% to 70% for livestock activities, resultinig from adoption of improved practices and input use. These improvements will be achieved only by adopting farms. Adoption rates vary from 15 to 30% depending on1 the zone and the cropping system and from 10 to 15% for livestock activities. Every three year, overall benefits were assumed to be reduced by 30% due to drought conditions. The project costs considered are the incremental investment and recurrent costs, net of taxes and subsidies for five out of seven components of the project, that is research (research fund, ISRA, ITA) extension (ANCAR) and the support to producer organizations. The cost of supporting key ministry functions were not taken into account in the analysis as this capacity building investment does not have a direct economic impact. Support to producers organizations, though also a capacity building investment was taken into account as it is considered to have an impact on adoption rates and effective technology generation and transfer. The economic rate of return for the program is estimated at 19%, a conservative estimate given the fact that some benefits could not be quantified, in particular the positive impact on environment due to the focus of the research and extension programs on soil and water management techniques, forestry and agroforestry techniques and the pilot community range management program. Additional benefits in the fishery and agroprocessing subsectors could not be quantified either due to lack of data. In addition, indirect benefits derived from the positive impact of agricultural production increase on upstream and down stream activities and on the rural economy as a whole were not quantified. Project profitability appears extremely sensitive to target average yields and net margins (switching values respectively of -5% and -9%) and somewhat sensitive to prices of outputs (switching value of - 18%) and adoption rate (switching value of -29%). However, because many benefits could not be taken into account in the analysis, the NPV is probably considerably higher and less sensitive to these parameters. 2. Impact of recurrent costs on publicfinances (see Annex 5): The issue is whether the recurrent costs generated by the project will be satisfactorily covered under government budget during program implementation, as well as in the longer term. The analytical approach consisted of comparing, in the medium and long-term, the additional recurrent costs generated by the program with estimates of primary sector public expenditures dedicated to salaries, operations, and maintenance. The financial participation of the users in extension and research costs was integrated into this analysis, taking into account the risks of delays and a less than expected contribution. Under prudent hypotheses concerning the pacing of the growth of users' contribution, the share of public agricultural expenditures going to the Program declines from 8% in year 2000 to 2% in year 2020. Even Page 22 if the users could not increase their contribution to the level expected by year 2020. the recurrent costs for the government will remain under 10% of agricultuiral public expendittires. This is a very conservative estimate, since the analysis does not take into account the savings that should result from the closing down of SODEVA and the reduction in functionl duplication between ANCAR, the MA and the other SRDRs (SODEFITEX, SODAGRI and SAED) as far as extensionl is conceriled. Thus it is likely that recurrent costs, as a share of agricultural public expendituires, will be less thani the above estimates. They constitute an acceptable burden on public finances and well withill the GOS finanicial means. 3. Technical. An assessment of the supply and demand for agricultural techinologies was carried out for each of the agroecological zones of Senegal through local and regional consultationis of the beneficiaries and maill actors involved in technology transfer. Senegal has eight major agroecological zones: Senegal River Basin, Lower and Middle Casamance, Western Senegal and Upper Casamance, Sine-salou.lil Northerin Peanut Basin, Niayes, Sylvo Pastoral and Maritime Zones. The demand for technologies evolves arouLid soil and water conversation techniques, short cycle varieties resistant to pest and diseases. animal nutrition based on local products. agricultural practices, post-harvest technologies, agroforestry. small agricultural equipment. On the supply side, an invenitory of available research results ready to be either extended or field tested indicates that ISRA and ITA have developed, or are able to adapt techniologies suitable for the technical challenges of each of the agroecological zones and of agroprocessing. The Program design takes into accounlt the lessons from previous projects and supports a numiiber of institutional reforms to address the issue of cost-efficiency. For agricultural research in particular, the Program builds upon all human and physical resources Senegal has, by enabling otiler research providers to have access to funding. On the investment side, civil engineering work has been kept to a minimu.liL mainly much needed infrastructure rehabilitationi. The emphasis has been put on traininig and retooling. 4. Institutional. The beneficiaries, through the Forum of Federation of Producer's Organizations (CNCR) have expressed a strong interest in becoming reliable partners of agricultural services institutionis. The Govermilenit and the beneficiaries are strongly committed to a shift from public to private management of agricultural services and to buildinig an effective national agricultural research system througil the separation of research funding from research execution. User feedback will play an important role in technilcal orientation and be a major input into the planning and monitoring process, through research and extension contracts, and through participatory methods for diagnosis, programming and evaluation. 5. Social. The main social issue is the extent to which women will participate and benefit from the techinology generation and diffusion process. Under research and extension, agricultural activities that are either solely or largely carried out by women (crop production; livestock; food processing techniques: and utilization, storage and marketing of farm products and other off-farm income-generating activities) will be given special attention. Research and extension on the post-harvest, value-added processing activities that women carry out will be increased. ITA will investigate local packaging materials and work on solutions to blockages in the production to consumption activity chain. The many technologies "in the drawer" at ITA will be evaluated for their suitability for the activities of rural women, and those selected will be included in the extension program. Appropriate technologies will be generated and developed through the agricultural research sub-projects of ISRA and ITA and through testing and adaptive research carried out with women's groups including those belonging to the Federation nationale des Organisations non Gouvernementales du Senegal (FONGS) and to the Federation of Women Associations. Page 23 With regard to extension, the two main objectives are to increase the contact between extension agents and women in the farming community and to improve the content of the messages and training given to rural women. In order to increase women's participation, at least one third of the groups (or one third of all farmers) contacted by each extension agent will be female. The number of female staff will be increased to address women in groups by identifying nionitrices rutrales who will be given extra training in agriculture and agriculture extension methodolagies so that they can work with extension agents. Extension staff at all levels will attend workshops to raise awareness of the fundamental importance of women in agricultural development and to train them to analyze the different needs of the social groups in the farming community. The training modules will be designed to ensure that women and other disadvantaged groups are adequately diagnosed and their needs are included in research and extension activities. Under the support to producer organizations component, women's groups will be given special attention in the management training courses. Modules include literacy and numeracy, organizational and financial management, marketing, and management of small enterprises (such as, vegetable production, ruminant fattening, processing, and operating mills) in order to broaden their economic base away from purely commercial activities. 6. Environmental assessment. Environmental Category /1A /x/B II C A crucial issue regarding the future of agricultural development in Senegal is the degradation of natural resources characterized by: (i) loss of cultural practices due to demographic pressure, resulting in soil fertility no longer being replenished; these practices, combined with severe wind and water erosion, lead to a decline in soil fertility-estimated at three to five percent a year-and poor water retention; (ii) loss of forest cover, declining by 1.2 percent a year; (iii) rangeland degradation; (iv) decapitalization of marine resources due to over-exploitation; (v) soil salinization and either acidification or alkalization; (vi) lowering of the groundwater table leading to salt water intrusion; and (vii) loss of biodiversity. Technologies which will be generated and extended under the Program are designed to promote environmentally sustainable agriculture. Agricultural research and extensions sub-projects will emphasize soil and water management, range land management, forestry and agroforestry, and crop- livestock-forestry interactions, and will integrate social and economic considerations. On-farm adaptation activities will be implemented with local communities and producer organizations as is already the case under the test activities carried out with PPF financing. The PPF also allows the testing of rangeland management pilot activities as part of the regional West Africa Rangeland Management initiative. These activities will be extended under the Program. Given Senegal's severe environmental degradation conditions, the Program has been classified under category B. The Center for Ecological Monitoring (CSE) carried out an environmental assessment and concluded that the Program proposed activities are in line with the National Environmental Action Plan and will improve natural resources management. However, the environmental assessment emphasized that for the expected positive impact to be achieved, research and extension services must effectively associate local communities and producer organizations at all phases of the technology generation and transfer process: diagnosis, design, implementation, evaluation, and dissemination which is precisely what the Program will foster. CSE also highlighted the need for a policy environment conducive to the adoption of environmentally-friendly technologies, if the Program is to have the expected positive impact on natural resources management. 7. Participatory approach. Overall Program Preparation. A committee comprising the beneficiaries represented by CNCR has been set up to oversee the preparation of the Program. Page 24 Research. ISRA and ITA prepared a strategic plan through a bottom-up approach. In each of the 10 administrative regions of Senegal, preparatory commissions were set up, involvinig research users, the government development agencies, NGO's and, when appropriate, small agroprocessing enterprises. A national commission comprising the same partners reviewed the strategic plan. The NARF was adopted during a two-day national workshop involvinig all stakeeholders. Extension. The new institutional set up for extensioni was discussed at the regional level durinig a nulimber of workshops involving the beneficiaries and stakelholders. A special study was condticted by an independent NGO to assess the supply and demanid for techniologies for each agroecological zones. Support to producer organizations. CNCR conducted nationial and regional workshiops of its uLnioins and local associations to discuss the main features of the support to producer organlizationis componienit and gather feedback from their grassroots organizationis. This input was thell used in the preparationl of the component. During these workshops, the new institutionial set Up for extensioni was also discussed. Ministry restructuring. The proposed organizationi for the Ministry of Agriculture has been discussed during a number of national and regional workshops involvinig mniistry staff. F: Sustainability and Risks Producer organizations participation in the design of the institutional reforms, as well as their participation in the governance of the research and extension ilstitutions, augur well for Program sustainability. The Program will also strengthien POs' capacity to negotiate and demand responsiveness, which should guarantee that the special features to enihanice accoulitability and client orientation will be m-naintainied. The Government is also strongly comimlitted to the instituitionial reforms, in particular to shifting from a public to private sector-type management for the extensioni services, and to separatilig funding of research from executing research. On the financial side, the participation of users in the financinig of ANCAR, at the institutional level, and through contracts between POs, or rural commines, and ANCAR at the local level, is a guarantee for sustainability. Direct Government financial participation will decrease after the first phase, as that of producers and other stakeholders increases. A study is being undertaken to determine the details of this process. Page 25 Risk Risk Risk Minimization Measure Rating ANCAR is a decentralized agency only on M Producer organizations, Regional Councils paper. and Rural Communes hold an important share of ANCAR's capital. They should be able to enforce decentralization. Producer organizations and other beneficiaries S Support to producer organizations component fail to take over ANCAR ownership because of will strengthen POs'capacity to negotiate. lack of capital and government difficulty to let go of ANCAR's control. Joint Government-Producer organizations S Support to producer organizations component allocation of agricultural levies is not achieved. will strengthen POs'capacity to negotiate. Reluctance of ANCAR staff to leave civil M Attractive work environment, job content and service. salaries compared to civil service Extension contracts are difficult to elaborate M NGO's will be hired to facilitate and implement. participatory diagnosis and extension program planning. PO's capacity will be enhanced through the support to PO's component. Unqualified extension services staff, lack of M Large training program in technical matters client responsiveness. and in communication techniques as well as a sensitization program to the new approach to extension will undertaken. ISRA financial management and accounting S A financial management and accounting firm system remains weak will be recruited to oversee ISRA financial management and be responsible for quality assurance. Disbursement will occur only after the Institute has been financially restructured The Bank administrative budget may not be S Negotiations with Country Director to obtain sufficient to provide adequate supervision and more than the standard administrative budget advice to this innovative Program involving allowed per project, given the scope of the seven executing agencies. project. Overall risk is between moderate and substantial G: Main Credit Conditions Agreements to be reached and recommendations. During negotiations, agreements have been obtained on the following: (a) a single Regional Directorate for Agriculture and Livestock will be created and maintained. This will be indicated in the legal texts adopting the organization of the Ministry of Agriculture and Livestock, to become effective prior to Program effectiveness. The total number of national directorates for Agriculture and Livestock will not exceed the seven national directorates agreed upon at the time of appraisal. Page 26 (b) the Government's annual budget will contain adequate provisions to meet the Government's share of program expenditures at the time the Program be-comes effective. A total of 1.8 million dollar will be deposited annuially into the respective project accounts of each implementing agency. (c) by September 30 of each year, starting from 1999, the Governmeit will submit to IDA for comments a copy of each agency's draft work program and budget for the coming year; (d) implementing agencies will follow the World Bank/IDA guidelinies in the procurement of works, goods and services; thiey will submit to IDA updated and detailed procurement schedules covering the investment period for each componenit, giving items and their quantities, sources of funds, procurement methods and timing; they will benefit from the assistance of a procurement specialist and a consulting firm for the supervision of works; (e) the National Coordination and Monitoring Committee for the Program will include the following entities: ISRA, ITA, NARF, ANCAR, ASPRODEB, Ministries of Agriculture, Livestock, Scientific and Technical Research, Economy. Finances and Planning and the Office of the Prime Minister. It will monitor Program implemenitation and meet every three months; (f) each implementing agency will submit comprehensive semianinual progress reports. A review will be carried out by a joint Government/ World Bank/IFAD team no later than two years after the program has become effective, with coordinationi by the National Coordination and Monitoring Committee; Tasks to be completedfor Boardl presentation. For the Program Letter of institutional development policy has been adopted. Tasks to be completed before credit effectiveness. ANCAR, ASPRODEB, ITA, MA, MOL and NARF have respectively recruited an independent external auditor acceptable to the Association on the basis of a one-year renewable contract. The Borrower has established a financial accounting and management system, satisfactory to the Association, for ANCAR, ASPRODEB, ITA, MA, MOL and NARF respectively, including, for NARF provision to subcontract its financial management and accounting functions to an accounting firm acceptable to the Association; ANCAR has : (i) adopted its Management and Internal Organization Manual ; (ii), appointed an accounting firm to be responsible for the quality of ANCAR's accounts for the first two years of the Project and for the training of its accounting staff; MA and MOL respectively: (i) have redeployed their staff; and (ii) the Borrower has adopted the legal texts organizing the two ministries and establishing (A) a single regional directorate including support to crops and livestock production; and (B) a maximum of seven national directorates for MA and MOL; Page 27 The subsidiary agreement between the Government and ASPRODEB and the Government and NARF have been signed. Dated covenants. By December 31, 1999, the Borrower will have adopted a Manual of Procedures for the evaluation and monitoring of sub-projects, in form and substanice acceptable to the Association. By December 31, 1999, ITA will have disassociated and accounted for separately its research and commercial activities. By December 31, 2001, the Borrower will liave taken all the necessary measures to change the legal status of NARF to an entity governed by private law with terms of reference acceptable to the Association. By December 31, 2001, ANCAR will have completed an evaluation of its personiel. The identified staff to be retained will become contractual. By December 31, 2001, the Government will be a minority shareholder of ANCAR. By December 31, 2001, the extension functions of the Societes Regionales de De;veloppement Rural (SRDR) will have been redefined on the basis of an external evaluation including the cost-efficiency of each structure, beneficiaries satisfaction and relevance of extension services in order to decide on the institutional modalities for carrying out extensioni services. Tasks to be completed before component disbursement. No withdrawals shall be made in respect of payments made for expenditures prior to the date of effectiveness of the Development Credit Agreement; ISRA. No withdrawals shall be made in respect of payments against Categories l(a), 2 (a) and 3 (a), unless ISRA has: (i) established a financial and accounting management system acceptable to the Association and certified by external auditors, disassociating and accounting for separately ISRA's commercial and research activities; (ii) appointed its financial management and accounting staff with terms of reference and qualifications satisfactory to the Association; (iii) completed the financial restructuring (reprise du passif anterieur) in form and substance acceptable to the Association; (iv) adopted a Plan for the restructuring of ISRA infrastructure network in conjunction with available resources and its strategic plan, acceptable to the Association; (v) appointed an accounting firm responsible for ISRA's account for the first two years of the Project and the training of the accounting staff and, ensure the quality of ISRA's accounts; (vi) furnished a balanced and audited balance sheet, in form satisfactory to the Association; and (vii) appointed an external auditor, acceptable to the Association. H: Readiness for Implementation 1. The procurement documents for the first year's activities will be completed for the launching of the project. Page 28 2. Each agency has a Manual of procedures which has been appraised and found to be realistic and of satisfactory quality except for ANCAR and.ASPRODEB (See below). 3. The following items are under preparation and are discussed under loan conditions. * Management and Internal Organization Manual of ANCAR. * Manual of Procedures for the evaluation and monitoring of sub-projects of ASPRODEB. See above (Section G) for the actions to be undertakeni for disbursemenit or dated covenanits. They are all reflected in the Credit Agreement. I: Compliance with Bank Policies [ x] This project complies with all applicable Bank policies. [ x] The project complies with all other applicable Bank policies. T Leader: Marie-H616ne Collion Sector a er: Jean-Paul Chausse Country Director: Mahmood A. Ayub Page 29 ANNEX I Senegal Agricultural Services and Producer Organizations Program Program Design Summary GOALS/OBJECTIVES AND IMPACT Descriptive summary Verifiable objective indicators Means of verification Critical conditions/Risks Sector-related CAS Goal Reduce the number of rural poor from National surveys Rural poverty alleviation which 45% to 30% in ten years translates into: * improved food security * improved rural income * sustainable production systems Program Outcome/Impact sustainable increase of smallholder By year 2005: Agricultural statistics droughit conditionis do not worsen (a productivity - Crop yield increases between 15 to 35 30% yield reductioni every three year % depending on the cropping system ANCAR, ISRA and ITA reports has been assumed). for 15 to 30 % of the farms (depending on the agroecological enabling envirolimenit for technology zone). adoption - Livestock productivity increases betw een 30 to 70% for 10 to 15% of legal and regulatory framework the herds depending on the conducive for private investmenit agroecological zone - reports from CNCR and Chamber of - volume of agricultural products Commerce processed by small entrepreneurs and women associations increased by 15% - Reports of the Center of Ecological Environimenital Code effectively applies - lessening trends of environmental Monitoriig degradation Page 30 Project Development Objectives Descriptive summary Objective verifiable indicators Means of verification Critical coiiditions/Risks - establish an effective national - 30 % of the total operational - anlual reports of the institutes agriculture and agroprocessing financing of research system, through the agriculture/agroprocessing research -FNRA statistics on the number and National Agricultural Research allocated by FNRA types of research contracts finianiced Fund - 80% of R/D projects identified withiin - periodic reports of on-going - strengthening of leadership of the the scope of R/D extensioni, finanlced contracts genieral directorates of the institutes by the FNRA and motivationl of the staff - at least 2 more finanicial sponsors of - evaluation reports of projects - colimlimitmilenlt of the Governimienit to FNRA contributing 10% of the funds. requested by CST adequately finance researca in a Suistalinable wvay - improve ISRA and ITA efficiency - investment plan carried out - performance review process in place - mobilizationi of scientific and through improving their scientific and noniscienitific staff managerial capabilities; rehabilitating - number of theses and long-tern - evaluation reports their infrastructure and upgrading training programs of administrative their equipment: staff - aniual reports of the implemietation of the training plan - 20 % of scientific and noni scientific staff benefiting from training once - studies specific to the situations during the three years - three training sessions in management for the key scientific and administrative leaders in both | institutes during the 3 years (jooit traininlg programs possible) Page 31 Project Development Objectives Descriptive summary Objective verifiable indicators Means of verification Critical conditions/Risks - establish extension services - ANCAR's Board with a majority -composition of ANCAR Board - producer organizations and other accountable to producers and producer organizations beneficiaries fail to take over ANCAR responsive to their needs through ownershiip because of lack of capital contractual arrangements -joint Government-Producer - legal texts exist and are applied and governmeit difficulty to let go of organizations allocation of ANCAR's control agricultural levies - goveriinmenit uniwilliig to relinqtuishi - at least 142 contracts signed and - contracts control over the allocation of operational between ANCAR and the agriculttiral levies POs - improve producer organizations' - POs provide at least 75% of the - Beneficiary assessmenit - participatory and client-orienitation ability to provide services to their services requested by producers culture of ANCAR staff, ISRA and members to access inputs, credit [[A is not effective and marketing and to make their - all POs requests for techiiology are - research and extensioni program voice heard in the decision-making taken into account either in research contenit processes proposals or in extension programs. - focus the Ministries' services on -legal texts reorganizing the ministries - missions verifying the effective - delays in implemilenitinig the texts and their regulatory, policy-making and implemeintation of the legal texts and redeploying the persoinel adopted and implem-ented Z monitoring functions, strengthen the effectiveniess of services at the their capabilities in these domains - reliable services at the regional level regional level - insufficienit qualified hutimilan resources and devolve services to the regions. and training is not eflective Page 32 Project Outputs and Activities COMPONENTS I, II, III: AGRICULTURAL RESEARCH (NARF, ISRA, ITA) OUTPUTS Descriptive summary Objective verifiable indicators Means of verification Critical conditions/Risks effective functioning of a national - at least 10 project financed the first - minutes of meetings of above groups Scientists do not present proposals that Fund of agricultural research year and at least 50 by the end of are relevant and of scientific quality allowing an allocation of resources three years. - aniual report of managemenit to operational research according to committee The scientific and the maniagemenlt objectives of SNRA3 - percentage of projects approved by committees are not effective and do the Fund without modification - annual report of scientific committee not operate independently from the executing ilstitutes - percentage of projects approved by the Fund once modified research projects meet one or several - 15 research contracts associated with - reports of activities of the institutes - meanis of reviewing projects and of of the following criteria: (i) at least two agencies of SNRAA by and the Fund; monitorinig/evaluationi of the research mobilization of all of the actors in the end of 3 years contracts insufficienit. research; (ii) responsive to needs - number of theses and scientific - ad-hoc studies identified with the users; (iii) congresses during 6 years adaptability to the globalization of - number of projects carried out science. consistent with the demand Page 33 ACTIVITIES Descriptive summary Objective verifiable indicators Means of verification Critical conditions/Risks - put into place a management - fully operational end-1999 - external, scientific, administrative, information system financial and accounting audits - establish a training plan - number of training programs - annual training reports annually - establish an investment plan for - all structures rehabilitated in 3 years - balance sheets and rehabilitation and implementation - 70% of equipment procured in 3 accounting/physical inventories years - consolidation of the pilot committee - at least 3 annual meeting starting - minutes of meetings of National Research system from 1999 onwards - development and submission of - 4 projects in the course of two years - aniual reports of the institutes and projects linking two institutions or FNRA more, to FNRA - development and submission to - 7 projects undertaken by the end of 2 - publications FNRA of thematic research projects yrs - proceedings of con,resses (methods, knowledge bases) - number of publications stemming from strategic planning - number of methods put at the disposition of the regional centers - development and submission to - 8 projects undertaken within 2 years - aninial reports of the institutes FNRA other sources of applied - 25% of strategic plans translated into - aniual reports of FNRA research projects ( sector projects technologies, systems) stemming from strategic plans - participation in R/D assessment - number of sessions (see PO - aniual reports of the RD unit organized by CLCOP within the activities) scope of R/D consultations - 50 tests of technology transfer and adaptation available within two years - development and submission to - 50% of felt needs identified in the - aniual reports of the extensioni staff FNRA, R&D projects stemming from assessment translated into projects participatory assessment Page 34 Program Outputs and activities COMPONENT IV: ANCAR OUTPUTS Descriptive summary Verifiable objective indicators Means of verification Critical conditions/Risks - extension services respond to the - rate of achievement of planned activities - minutes of meetings - difficulties putting in place a real demand of producers for advice (number of meetings held, partner - assessments of implementation of partnership targeted to their needs, of good agencies involved, studies validated, activities - insufficiency of technical and financial technical quality, and focuses on their contracts fulfilled, evaluation of training, - evaluation forms means to put necessary staff in place and production system. procedures put in place and their - evaluation reports to implemenit a quality training program application, etc.) - internal and external audits - ANCAR with majority producer - new statutes - existing texts - transfer deferred by Government organizations control and minority - new systems of governance - President of the Board of -partner agencies are not ready to raise Government control Governors to the producer their part of the capital (i.e., they are not organizations/ managers of the convinced in the effectiveness of Government's minority share ANCAR: they don't have the means to acquire complementary share of capital; or the problem of the sustainable finanicinig of ANCAR (see following) is inot resolved - sustainable financing mechanisms - document approved by all parties - studies available - the regulatory texts are not adopted oii Co-managed by the Government and - regulatory texts elaborated and adopted - workshops of validation held schedule producer organizations are defined - commitment of the partner and accepted by all partner agencies agencies, notably the producer organizations, to augment their part of the capital - texts - staff in place (including female staff) - agents recruited: 267 in year 1. 470 in - signed contracts - noiavailability of staff with the targeted and selected in a manner satisfactory year 2, representing 58% of the planined - reports of the selection profiles to the beneficiaries personnel and including women committees - nolavailability of financial resources - civil service personnel have adopted - the opinion of the beneficiaries was - personnel files - producer participation in selection contractual status or left ANCAR taken into account in the selection committees is not effective - no civil service personnel work at - socio-political roadblocks ANCAR - personnel trained, including in the - 358 individuals have been trained - training session reports - weak capacity (content of training and new approaches initially and can apply the content - evaluation reports on the training ability of trainers) to undertake the types I of training required Page 35 ACTIVITIES Descriptive summary Verifiable objective indicators Means of verification Critical conditions/Risks -staff and partnership arrangements - 142 extension agents operational at - assessments and programiis achieved are identified and tested the local level and 10 at the regional by staff level - forms of - contracts amonig partner agencies for program implemenitationi conclLided - Agricultural Counsel programs - at least 142 contracts signed and - evaluationi of results - extensioni workers not in place or defined and achieved for the zones operational - reports on implemenitationi of the fuilictionilig covered contracts, inclidinlg an evaluationi of - certain techilologies are not available results - partner agencies adhere to an - workshops on the entreprenieurial - evaluation certificates from the - part of staff do not adhere to entrepreneurial work culture work culture held for all categories workshops entreprenieurial tenets of staff, by type - communication - training on the entreprenieurial work - internal and external communication culture is not effective plan - mechanisms and procedures of - procedural manuals - procedural manuals - procedures defined in manual are not technical, administrative and applied financial management are tested and valid - negotiation with the various partner - meetings/workshops - proceedings/minutes - difficulties or delays in cominig to agencies to modify the structure of - individuals and structures involved agreemiienlt amonlg the partner agencies the shareholder arrangement - studies and workshops to determine - study reports - study reports - delays in validation by the authorities and validate mechanisms of - minutes of workshiops - mIlutes of vorksliops sustainable financing - regulatory tests - regulatory tests __ _ _ _ _ _ _ _ _ _ _l__ _ _ _ _ _ _ _ _ _ .1 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Page 36 ACTIVITIES Descriptive summary Verifiable objective indicators Means of verification Critical conditions/Risks - nomination of members of personnel - ministerial decision - decree - competition between ANCAR and the selection committees restructured Ministry for recruitment of staff, - definitive selection and recruitment - selection criteria and proceedings - selection criteria notes/proceedings - socio-political conflicts - placement of personnel - fixed-term work contracts ( 2 years) - employment contracts - performance evaluations - evaluation reports; grading - evaluation reports - fixed-term assignments or non- - ANCAR no longer has contracts of files of personnel managemenit renewal of contract or return to indeterminate duration public service - selection of trainers, planning of - training materials - traininig materials modules, identification of comple- - contracts with external resources - contiacts mentary training needs - workshop reports - organization and implementation of - workshops conducted - reports of the S/E of the trainees training sessions - post traininig evaluation evaluation of extension agents - evaluation reports - evaluation reports elaboration of programs and - numbers of contracts, themes, - program documents by each zone identifying and formalizing contracts technologies covered with partner agencies implement contracts - percentage of results attained; rate of - evaluation reports - risk of losing interest due to other implementation of activities - aniual assessment of activities priority needs not being met Page 37 ACTIVITIES Descriptive summary Verifiable objective indicators Means of verification Critical conditions/Risks - establishment of a communication - attitudes and behavior that conform - surveys regarding hierarchiies of plan regarding the entrepreneurial with an entrepreneurial culture values culture (elaboration of educational aids/means of dissemination) and - elaboration, testing and - procedures manual adopted and periodical reporting of internal and - procedures not applied implementation of procedural manuals applied external audits - pilot pastoral program (PPP): testing - set of monitorable indicators for PPP - M&E system - Conflict on Commonl Property of community-based pastoral resource implementation and impact - Regional network evaluation Resources management (national component of (landscape; production; quality of life) - AnnIial regional workshop - Severe droughlt regional program WAPPP) - Beneficiary assessment Page 38 Program Outputs and Activities by component COMPONENT V: SUPPORT TO PRODUCER ORGANIZATIONS OUTPUTS Descriptive summary Verifiable objective indicators Means of verification Critical conditions/Risks - Grassroots rural producers organizations and their SPECIFIC DOCIJMENTS SPECIFIC RISKS members are capable of: - number of services provided vis- i) mobilizing the services needed by their members to A-vis number of services needed - proposal docuLIlenlts of CLCOP, - timiely availability of funlds increase yields, production, and income, such as -qualitative assessmelnt of CRCOP, federations of POs, and - availability of services research, training access to credit and inputs, means suitability of services in relation CNCR - fulfillmenit of commitments by of processing, and marketing services. to needs - specific surveys extensioni team (ii) influence rural development policies at the local, - POs proposals are considered in - proceedings of constiltationis at - fulfillimenit of commiiitmiienits by regional and national level so the aspirations of rural research projects presented to the nationial, regionial and local researchers people are better taken into account and served FNRA level - availability of partner agencies - contracts with extension services effectively reflect POs' requests - 142 contracts between extension services and POs are effective - 10 research teams contractually work with POs - the proposals of POs and federations of POs are considered in formulating agricultural poiicy Page 39 OUTPUTS 1 Descriptive summary Verifiable objective indicators Means of verification Critical conditions/Risks - POs supported by the Component: (i) participate in diagnostic assessments and the - 142 participatory diagiiosis - evaluationi report of the - programiis overly complex design, implementation, and evaluation (of activities initiated assessmenits - programils of extensioni not and actors) of programs (extension, research, etc.) - 142 programs of extensioni - extenisioni programis adequately accompaniied by defined - research programis providing iiptit supply, marketinig, and access to credit ii) diagnose their constraints and strengths, projects, - 10 research programs defined - reports of evaluationi ol the - subprojects overly complex identify and mobilize resources by contractual - annual meeting held of CLCOP teams - too maniy small projects means, manage and enforce accountability and CRCOP to evaluate the performance of contracted services -documilentation of the subprojects -852 subprojects identified - number of subprojects elaborated by the PO and rural communities, accepted and implemented Page 40 OUTPUTS Descriptive summary Verifiable objective indicators Means of verification Critical conditions/Risks POs participate in decision making processes and are - 142 CLCOP are so included - synthesized reports of CLCOP members of governing bodies of rural development locally - synthiesized reports of CRCOP institutions where they make substantiated proposals - 10 CRCOP are included - proceedings of decision makinig that are taken into account regionally sessions with CNC R - CNCR actively participates in the participation decision making and leadership - reports of activities of local, of national agencies for rural regional and nationial RD developmenit institutions Page 41 ACTIVITIES (OPERATIONS) Descriptive summary Verifiable objective indicators Means of verification Critical conditions/Risks setting up of CLCOP and CRCOP with support of - 142 CLCOP created - Report on creation of CLCOP - large proportion of PO are weak, Technical executing agency - 10 CRCOP created - Report on creation of CRCOP created durinig the Project participatory needs assessment carried out with - 142 needs assessments - needs assessment documlienits, support of technical executing agency and some by regioln. or Techinical elaboration of the local development plan at the executing agency reports level of the CR, from which the programs of extension and research development (RD) ensue - nuiLmerotis low priority projects elaboration and management (on contractual basis) - 852 subprojects or micro- - evaluation reports of subprojects of subprojects in the areas of training, projects/ activities, with 6 by communication, adoption of technological CRCOP innovations, access to specialized technical services - analysis of some extensioni - programs not reflecting of the - extension and RD programs achieved on a - 142 extension programs with programs by region (ANCAR priorities of the farmers of the contractual basis with ANCAR and others offering ANCAR reports) representative POs extension and RD services at the regional level, CRCOP select and manage - 20 projects carried out at the - project reports projects in the area of training, communication, level of CRCOP adoption of technological innovations of concern to PO across several rural communities, on the basis of needs assessments carried out at the rural communities level; Page 42 ACTIVITIES Descriptive summary Verifiable objective indicators Means of verification Critical .________________________________________________ conditions/R isks at the national level, organizational assessments and action - 2 organizational assessments - 2 assessmenit reports plans for restructuring of federations (both members and non members of CNCR) are undertaken and achieved at the national level, annual financial audits of CNCR and - 2 audits - 2 audit reports the member or non member federations of CNCR are completed prepare via training and communication PO representatives - 5 training workshops to participate in decision making regarding ANCAR and - 15 centers of traiiig research study regarding the co-management of agricultural levies - I study report validated by POs - study report of FNDR with the GOS and specifying the financial contribution of and Government PO to the operations of research and extension services workshops held on strategic considerations to prepare PO - 3 workshops held - 3 worksilop reports proposals to be submitted to CLCOPs and CRCOPs program of communications outreach - 8 informational bulletins - 8 inforimiationi bulletinis - 4 specific dossiers - 4 specific dossiers - 30 communication relays - 48 broadcasts - 10 CRCOP equipped - 16 workshops at the arrondissenient level a database on the activities of PO established - I database set up - reports on the database supervision missions undertaken for Technical executing - 12 missions - supervision mission reports agency activities by the CNCR Page 43 Program Outputs and Activities by coniponent COMPONENT VI and VII: Support key Ministry functions (Agriculture and Livestock) an(d specific livestock activities OUTPUTS Descriptive Summary Verifiable objective indicators Mcans of verification Critical conditions/Risks agriculture and livestock services - texts governing mission and structure - decrees regardinig reorganizationi of the l delay in the adoption of texts totally disengaged from market of public agriculture services adopted mission and structuIe of MA and ML organizing thle Ministries Iinked with activities and refocused on public and put in place adopted the creationi of the Ministry of service missions Livestock - official reporting of effective - missions verifying the effective disengagement from market activities implemenitationi of the provisions of texts organizinlg the Ministr-y agriculture and livestock services - reliable statistical information system - evaluation missionis regarding this area - delay in finanlcilig the necessary equipped with a system of information defined and operational at the level of equipmllelnt and statistics responsive to information DAPS - testing of the informationi system demand of POs, private firms, - agents trained and placed in their - insuLfficiilt humliani resources qualified Government, and other agencies. respective posts at central, regional and - statistical bulletins and anniual reports in statistics at the level of the agents of - ML equipped with Livestock Survey local levels specialized by subsector the MA and ML System and Computerized - tools and equipment procured Modelization System - statistical tools of partner agencies are harmonized and coherent among each other agriculture and livestock services - services of MA regrouped into the - missions to evaluate the organization of - absence of a reorganization or of a organized coherently at the central and same place at the central level agriculture services in relation to communication system of the central regional levels, avoiding overlap in the - administrative services of MA and ML ANCAR, the projects services of MA and ML exercise of their functions and not in place, without any overlap with competing with the private sector. ANCAR or competition with private - surveys of the private sector in - ANCAR not established sector agriculture and livestock Page 44 OUTPUTS Descriptive Summary Verifiable objective indicators Means of verification Critical conditions/Risks - the activities of SRDR are in accord - studies undertakeni regardinig the - study reports on lhe SRD)R completcd - oper ationial budgets of the regionial with those of ANCAR and ministries SRDR are finished with respect to the - examiniationi of letters fromii the directorates of rtiral developmenit put preparation of their next letter of preparatory missionis of SRI)R into place by the Governmienit are mission insufl icient - agriculture services' structure and - regional directorates for rural - review of level of equipmiienit and absence of regionial plans and operations are adapted to the context of development created and adequately operationis of the regional directorates prog,rams of developmenit ilitiated by regionalization and decentralization. staffed (given their missions), fuLided, of rulal developmenit and the local comm11ullities and equipped to work with the local appropriateness of communities - doculilenlts of work in comimiloIn (plans, local and regional programs and convenitiois, protocols and agreements linkinig the regional directoratcs and the local communities. the feasibility of privatization of - programs of privatization finalized - available programs of integration private pest control, veterinarian and - start of program of installation of - demanid for providing private services other disciplines of agriculture and private professionals identified livestock has been established - surveys of private providers requestinig to become established - the capabilities of agriculture and - the DAPS put in place at the central, - evaluation of the establishment of the livestock services to conduct analysis, regional and local levels DAPS and analysis methods of the planning and monitoring and - structures of economic analysis put in techinical directorates evaluation are reinforced place at the level of the technical - evaluation of the quality of the directorates of the Ministry documents produced in analysis, - the agents of the DAPS and other planniniig and monitorinig and technical directorates responsible for evaluation economic analysis trained - evaluation of the impact of recommendationis of the DAPS Page 45 OUTPUTS Descriptive Summary Verifiable objective indicators Means of verification Critical conditions/Risks - each directorate, division or office of - products expected for the directorates, - examinationi of the expected outputs the administrative services has a clear divisions and offices definition of its tasks and expected products ___ - the criteria of performance of staff and - a document of performance criteria - examination of the criteria defined - non participatory strategy agents are finalized, allowing agreed to by staff objective evaluation - agriculture and livestock services in - operational and equipment budgets of - examiniationi of the budgets and - operational budget of the regional the field are provided means to make agriculture and livestock services in evaluationi of operations and equipillent directoratcs of rural.devclopment them operational the field correspond to the provisions of the public agriculture services set out by the Govermalenit is of the project iiiadeqtiate - national epizootic diseases control - legal and regulatory framework - evaluation program - staff trained and recruited - reports from NCFS and NDSN improved food safety control program - National Committee for Food Safety - studies and surveys (NCFS) established - National Disease Surveillance Network (NDSN) an effective policy of communication - communication policy strengthened - evaluation outreach to agriculture and livestock and put in place professionals and the general public Page 46 ACTIVITIES Descriptive Summary Verifiable objective indicators Means of verification Critical conditions/Risks adoption of texts organizing the MA - texts adopted by the government - examiniation of texts - noni adoption of texts by the and ML Goveriiin et establish new structures in the MA and - structures established with regard to - evaluationi missionl of the establishment ML at the central, regional and program outlined of effective organizational structures departmental level rationalization and placement of - at all levels of staff of the agricultural - evaluationi mission looking at the human resources services organizationlal structures execution of training programs - numbers of trained agents - evaluation missioni of programs and agents trained - material resources in place - level of financing of investment - evaluationi missioni of the training - absence or insufficicicy of finanlcinig necessary for the public agricultural programil anid the trainied agents of investimienits by the donors of fuLids services studies to harmonize the activities of - study documents finalized and - studies made available SRDR and those of the central available services finalized program of integration of the - program of installation available - studies made available graduates of agriculture and livestock disciplines into the production finalized program of privatization of - program of installation available - studies made available pest control agents and veterinarians Page 47 ANNEX ll Senegal Agricultural Services and Producer Organizations Program Project Description PROGRAM COMPONENT 1: NARF 1. NARF was initially established by presidential decree utider the Ministry of Agriculture. By December 31, 2001. NARF will become either a private foulidatioln or any other legal entity governed by private law with terms of reference acceptable to the Association. It will be governed by the Mnagemwnet Comuittee and the.Scientific antdtc Teclhniicatl C'otimnzittee, and activities will be implemented by an Executive Secretanriat. The decision to establish the Funld was made during a national seminar, which took place in May 1998 and was presided by the Milister of Budget. The objective of the seminar was to review NARF operating mechanisms and governing bodies' composition and functions. At negotiationls. the terms of reference for the Executive Secretary of the Fund were reviewed. Before the credit becomes effective, the personiel of the Executive Secretariat will have been recruited and the governing bodies will liave been established. 2. NARF Manageinent Committee will be composed of 16 members, all research stakeholders or users, choseni intiuitI personae, from the Ministries of Economy, Finance and Planning, Agriculture, Livestock. Scientific Research, and Fisheries, and from ANCAR, CNCR, the agro-industries, producer or-anizationis, and NGO's. Representative of external donors will attend NARF Management Committee meetings as observers. The mandate of the Manageinelnt Committee will be to ensure that the Fund funictionis according to established procedures. as adopted under: (i) NARF Internal Organization Manual, (ii) the guidelines and procedures for research proposals review and selection, and monitoring and evaluation, and (iii) financial management and accounting procedures. The Management Committee will approve NARF aninual program of work and budget and review the audit reports. Proposed guidelines and procedures for the presentation, selection and monitoring and evaluation of research projects were reviewed at the time of negotiations. 3. The Scientific and Technical Committee (STC) mandate will be to : (i) elaborate NARF scientific policy (to be approved by the Management Committee); (ii) determine the review, selection, monitoring and evaluationi procedures of research proposals; and (iii) review and select research proposals (on the basis of their scientific merit and their relevance to development needs). For the evaluation of some research proposals, the STC will rely on a network of external peer reviewers. The research proposal application and review procedures, and the criteria for selection will be defined in the above mentioned guidelines. In addition to scientific quality and relevance, it is expected that the review of research proposals will place particular emphasis on: (i) the integration of existing research results (domestic and external); (ii) collaborative research activities with other institutions at the national, regional, and international level; (iii) the incorporation of social, economic and gender analysis; and (iv) sustainability issues. The STC will also participate in the monitoring and evaluation of approved projects. The STC will be integrated with renowned senior scientists from within and outside Senegal, nominated by the Management Committee. Criteria for the selection of members of STC and management committee of NARF was presented and discussed during negotiations. 4. Two parallel calls for research proposals, with similar review and approval procedures, will be followed under NARF. Research proposals will be solicited on themes identified: (i) under ISRA and ITA Strategic Plans; or (ii) by the users. For both mechanisms, NARF will invite proposals from one of Page 48 the main institutes (ISRA and ITA), other entities in the National Agricultural Research System (NARS) as well as joint proposals, from more than one institution. However, it is likely that researchers from ISRA and ITA will be in the best position to elaborate research proposals corresponding to the themiies of ISRA and ITA research plans, some of them in collaboration with other entities. At the end of the first phase, NARF will carry out an audit of the contracts to determine to wvhat extent the terms of the contracts have been followed by the various institutions. The conclusioll from the audit will determine the institutions future access to the Funld. 5. NARF will finance direct costs and research-related indirect costs, as a percentage of direct costs. This percentage will be determined by the Management Commilittee. Indirect costs include station and equipment maintenance and managemiient. Direct costs include short-termli training; publishing and documentation costs; and costs of developing Iinkages between agricultural research, extensioni services and producer organizations. It will support scientists' participation in regional and international research networks. including collaborative research activities. 6. The overall research objectives that NARF will pursue are the ones idenitified under ISRA and ITA strategic plans, which are as follows: (i) improve the competitiveness of Senegalese agriculture, so as to increase exports and recapture domestic markets; (ii) diversify the country's productive base; (iii) protect natural resources, and (iv) improve valLue-added of agricultural production througlh processing, particularly in rural areas, to stimulate employment and increase rural incomes. ISRA strategic plan includes research on crop, livestock, fisheries, forestry, and natural resource management. ITA strategic plan, wvhich focuses on post-harvest techiiology and agroprocessing, has three main domains of activities: (i) Technology generation or adaptationi: processing technologies cereals, fish and fish by- products, sesame, groundniut and aflatoxin, indigellous fruit, watermelons, animal feed and salt iodization; (ii! Quality control of processedproducts: a service for enterprises, both for domestic and export market; an1d Training of trainers. PROGRAM COMPONENTS 2 (ISRA) AND 3 (ITA). 7. ISRA and ITA. ISRA and ITA operate under the general guidance of their respective Boards of Governors. At present, the Boards' composition, as proposed in the draft decrees organizing the institutes under the new EPST law (Etablissernent Public a caractere scientifque et technique), is six members from the government, two members chosen intuitl personae, two representatives from producer organizations, two representatives from collectivites locales. To provide guidelines and monitor the Institutes' research policies and strategies, the Boards will continue to rely on a Scientific and Technical Committee (STC), which will be renewed and will consist of renowned national or foreign scientists. In particular, the STC's will review proposed adjustments to the Strategic Plans and provide guidelines to the Institutes to elaborate their long-term scientific policy and mid-to-long-term personnel policies. ITA and ISRA organizational decrees describe Board membership and STC's compositions and mandates. These decrees were adopted as a condition of negotiation. The role of the STC's will be made explicit in the internal procedures manual of ITA and ISRA. 8. ISRA elaborated a full-fledged policy and management statement for the Institute using a participatory approach involving users, stakeholders and staff. This statement includes a definition of the Institute goals, principles of management and organization processes, and overall priorities and principles guiding the interactions with stakeholders, beneficiaries and other research institutions. ITA did not prepare a policy and management strategy, but the essential elements of such a statement can be found in its strategic plan. For example, both ISRA's policy and management statement and ITA's Strategic Plan describe their working relationships with other national institutions, other NARS in the sub-region, the International Agricultural Research Centers, and advanced research institutes from the North. This Page 49 collaboration should enable the Institutes to draw from external experiences and results while participating in collaborative regional projects and networking activities for technology generation. 9. ISRA: Organization of research. ISRA has been reorganized into eight regional research centers and five research support units. The regional centers correspond to the eight agroecological zones: Senegal River Basin, Sylvo-pastoral zone, Northern Peanut Basin, Southern Peanut Basin, Upper Casamance and Western Senegal, Lower and Middle Casamance, The Niayes, The Coastal Zone. The research support units are essentially central laboratories for crop productioni, livestock, forestry, fisheries and policy analysis/macroeconomics. These units provide support to the adaptive research carried out by the regional research centers. Each regional center has a multidisciplinary natural resource management and productioll systems team in charge of coordinatinig on-farm testing and adaptation, as well as participatory technology development. This team is specifically in charge of direct collaboration with producer organizationis and extension services. 10. ITA: Organizationi of research. With techniical assistance from CIDA, ITA was reorganized. The research-developmenit directorate in charge of technology generation, in partnership with small processing enterprises and processing groups, has four research teams: cereals and leguminous crops; fruits and vegetables; fish and fish products, and livestock products. The external affairs directorate is responsible for defininlg the marketing policy of the Institute and for linkages with users (marketing and technical support). 11. ISRA and ITA: project planning and review process. ISRA is putting in place a project planning and review process to ensure that research meets producers' needs. To this end, producers will participate in the process and give their input on the research agenda, not only for the design of on-farm experiments, but also at the on-station stage. First, regional center researchers review their research results and project the activities for the following year with a small group of representatives of producer organizationis and selected regional extension and NGO staff. They are the users with whom researchers carry out on-farm testing and adaptation. Relevant senior researchers from the support research units participate in the regional programming and review meetings to promote client-oriented research all the way up to upstream research. 12. The process continues with a planning meeting between regional centers and research support units in order to define which basic research activities are needed to backstop the activities identified by the regional centers' clients. Then, the projects are screened and consolidated by the headquarters' Scientific Directorate. The process ends with a final review by the Scientific and Technical Committee of the Board. 13. The planning and review process of ITA will be similar. Since ITA does not have regional centers and in order to promote solid working relationships between ISRA and ITA, ITA researchers will participate in ISRA's regional project committees. In addition, ITA will have its own planning and review meetings with the group of users they are working with to develop technologies. The rest of the process will be similar to that of ISRA. 14. Physical infrastructure and equipment. For ISRA, there will be limited development of infrastructure under the program, mainly rehabilitation. New construction will take place only to consolidate existing research sites which would have been retained after restructuring. Consolidation into fewer site will decrease recurrent costs for ISRA in the long run. In some stations, additional experimental plots will have to be developed to consolidate research activities in one site. Before architectural and engineering plans are prepared, ISRA will obtain property titles (or any legal document allocating the land to the Institute) and prepare experiment station development plans to indicate the future use of buildings and grounds. A commission composed of senior scientists and engineers will Page 50 oversee the development of such plans and monitor the implementation. Once ISRA has prepared an experimental station development plan acceptable to IDA, the Association will review civil works and land improvement plans for that particular location. For ITA, the Program will rehabilitate laboratories and provide laboratory equipment. The presentation of an agricultural equipment profile for the research stations and of a laboratory study (gap analysis between the existing equipment and equipment needed to carry out the activities retained under the Strategic Plans) will be part of thie documentation required to obtain the no objection for equipment purchase. 15. Human resources management. At the moment, a system for researcher promotion does not exist. ISRA and ITA are considering entering the African and Malagasy Council for Higher Education (CAMES) system for researchers' promotion. In the meantime, ISRA and ITA are designing a system of promotion for the researchers in which the criteria encourage development-oriented research and work with clients. It is organized with external scientific commissions that the IDA credit will finance. These arrangements are described in thie decrees of ISRA and ITA conditions of service (reglenenlt d '&tab1issenment). 16. ITA and ISRA conditions of service include a description of conditionis of entry for each category of staff. It also contains a system for ongoing evaluation of staff performance, including an incenltive and reward system. Finally, the conditions of service also include a salaty scale. The salary scale is high enough to attract and retain well qualified personnlel, but not too high so that it can be financed out of the governmenit contributioni. The simulation of the evolution of the two Institutes' wage bill, taking into account the salary scale and number of staff was reviewed at the time of appraisal as well as the draft decrees for conditions of service. The decrees for ISRA and ITA conditions of service were adopted by the GOS as a condition of negotiations. In addition, both Inistitutes will adopt a management and internal organizationi manual. 1 7. Finanicial managemeit: ITA. A review of ITA finanicial and accounting management system was carried out as part of the appraisal mission. It showed weaknesses which are being addressed with PPF fundinig. As a condition of effectiveness, ITA financial management system will have to be certified by an accounting firm and the Institute will have recruited a financial and managerment firm responsible for the quality of ITA accounts during the first two-years of the project and for training its staff (See Annex 6). 18. Financial management: ISRA. ISRA financial management and accounting system remained weak under the previous IDA projects. The auditors gave a disclaimer and an adverse opinion for the 1995 and 1996 accounts, respectively. The main problems are: (i) the inventory of fixed assets, never updated since 1992; (ii) important supplier debts, amounting to close to 1.5 billion CFA; (iii) inadequate recording of sales and production costs for commercial activities (foundation seeds and vaccines); (iv) inadequate recording of personnel debts; (v) lack of payment of personnel social security and benefits. In November 1996, ISRA management designed an action plan to overcome this situation. In addition, ISRA is putting in place an improved decentralized cost-accounting financial management and accounting system, with a new software and new procedure manual and training of accounting staff. The adequate functioning of the new financial management and accounting system as certified by an accounting firm, the financial restructuring of the Institute (reprise du passif anterieur) and the recruitment of a financial firm that will be responsible during the first two years of the project for the quality of ISRA accounts are a condition for component disbursement. 19. Training and technical assistance. The Institutes will prepare and update annually a training plan. Scientists and managers will receive long-term training either from the IDA credit or from other sources of funding. In addition, short-term training is envisioned in the following areas: scientific support at critical moments of the project and review cycle; financial management; station management; human Page 51 resource management; and documentationi, editing and publishing. The IDA credit will not provide any long-term technical assistance. Short-term consultancies will be provided, in particular for bringing in outside expertise for the external program reviews commanided by the STC, development of infrastructure plans, finanlcial management. and editing and publishinlg. PROGRAM COMPONENT 4: Agricultural Extension: ANCAR 20. ANCAR's manidate, ownership and strategy. The GOS decided to create ANCAR during an interministerial couLIcil on March 17. 1997. ANCAR's mandate covers the whole of Senegal. Therefore, it has been agreed that after the second year of its implementation, ANCAR will take over the extension functions of SAED and SODEFITEX if ANCAR' s services are proven effective and relevant for beneficiaries needs. As a condition of negotiation, the decision to liquidate SODEVA was made. 21. The P'rogram will help: (a) put ANCAR in place by selecting and training staff at all levels and defining the Agency's operating procedures. The procedures will ensure that ANCAR operates in a decentralized fashion, giving regional offices a great deal of autonomy in managing staff and financial resouL-ces and providing for mechanlisms to involve the participation of producer organizations in decision-milakinig regarding agency local level staffing. (b) provide extension services to producers througih contractual arrangements between ANCAR and rural communes or producer organizations. (c) develop mechanisms to improve the capacity of extension services and producers' associations to work together to define and implemenlt extensioll activities. To this effect, ANCAR will test ways to work together with POs to: (i) elaborate local level exteisioni activities based on participatory assessment; (ii) involve POs and rural commilunes in the selection and evaluationi of the extension workers; and (iii) train and involve POs' auxiliary personiel in the implementation of the extension activity. (d) upgrade techilical and managerial skills of extension personnel through a regular in- service, as well as short-term, training activities. All staff will initially be trained to adopt a participatory attitude, ANCAR's guiding principle. Extension workers' technical skills will be upgraded. Subject matter specialists, along with researchers and representatives from producers' associations, will receive systematic training in their respective disciplines, as well as training in participatory technology development methods, basic economic and financial analysis, and social and gender analysis. All staff in managerial positions will be trained in management techniques. (e) establish a system for continual staff evaluation and reward for best performances. The system will include input from producers in the evaluation process. (f) promote the use of mass media, particularly radio, to complement field activities. (g) promote a systematic concern for meeting the technology needs of female producers, processors, and marketers. (h) implement pilot extension activities, such as provision of specialized extension advice from other providers, on a contractual basis; (i) implement the pilot national component of the West African Pilot Pastoral Program Page 52 (WAPPP) aiming at testing community-based pastoral resource management; 22. The West African Pilot Pastoral Programi (WAPPP) is aiming at testing an inn1ovative Community-Based Natural Resource Management in the semi-arid pastoral areas of Senegal (Ferlo region). This pilot operation is the national component of the regional West African Pilot Pastoral Program. The Pilot Pastoral Program objective is to demonstrate that througL1 proper resource management, it is possible to reverse the current process of land and vegetation degradation taking place in most pastoral areas of Senegal and to secure sustainiable agrosylvopastoral productioni, tlhus alleviating poverty and improving the living conditions of these communities. The encouraginig preliminary resul(ts from Asre Bani, the Pilot Pastoral Area clhoseni in the South Ferlo, promoted a demand to expand activities. The initiative is being mainstreamiled into the Agricultural Services and Producer Organizatiolis Program. It is intended to progressively add more Pilot Pastoral Areas, so that at the end of the pilot phase in 2001. the operation will include a dozen sites. If the pilot is a success, the next step will be to up- scale the operation at national level. The activities include technilcal assistance to pastoralists in designing and implemenitinig their Comllunllity Based Natural Resource Manageinetit plans, investmiients in Pilot Pastoral Areas and a specific national training program. Given the pilot nature of the program, it will be closely monitored and evaluated. 23. ANCAR's assets. ANCAR's assets will come mainily from the previous Agricultural Services Project and SODEVA. The physical invenitory of these assets is being carried out as part of the MA restructurinig effort. The part of the assets of SODEVA and of the former Agricultural Services Project whiich will be turned over to ANCAR will be determined and evaluated. On that basis, ANCAR will elaborate an investmenit plan for the first phase to be ready at effectiveness. 24. ANCAR financinig plan during the first two years. During the first two years it is expected that the GOS, through its own resources and the IDA credit, will finance most of ANCAR's operating expenditures. The government's contribution was included in the 1999 Budget Bill and in the Programme Triennal dInvestissemen;t Puzblic ( 1998-2000) as a condition of negotiations. Even though at the beginniniig prodticer organizations will not contribute directly to ANCAR's operating costs, it is expected that through contractual arrangements with ANCAR at the local level, they will participate in the financinig of the local extension agents' operating costs. 25. ANCAR financing plan during the second and third phase. After this initial phase, beneficiaries will take over the financing of ANCAR operating expenditures in accordance with their share of capital. To this end, negotiations have begun between the GOS and producer organizations to determine how the taxes collected on agricultural products could be co-managed between the GOS- and producer organizations. As a condition of negotiations, the GOS and producer organizations presented the results of a study determining the taxes that could be subject of joint management. T'he establishment of these mechanisms and procedures is a trigger condition for the second phase. 26. ANCAR's organization. When fully established, ANCAR will have a central office, and ten regional directorates with the appropriate administrative and financial autonomy for implementation. ANCAR's total staff will be limited to 812 staff: 690 technical staff and 122 administrative staff. There will be 459 extension agents working at rural commune level, a total of 159 extension managers and subject-matter specialists, with different fields of expertise depending on the production. systems Forty high level managers will be located in the central office (10) and in the regions (30). 27. Each Regional Office will be responsible for programming and implementing extension activities in its area of intervention. Subject-matter specialists will be grouped to work as a team, according to production systems or agroecological zones and will be located at the department level, rather than the regional level, to be closer to their intervening zones. Each extension agent willl have access to a team of Page 53 two to three subject-matter specialists. He/she will be based in a rural commune (commn,unaute rurale) and work with an agreed upon number of villages and producer organizations. The task of the extension manager is not solely administrative: he/she will be expected to provide technical back-up to the extension agents as well. 28. Working arrangements. Extension activities will be formulated at the rural commune (communaute rurale) level, between the extension agent and the producers. To elaborate an extension program, a participatory diagnosis will be conducted joinitly between the producers. ANCAR staff and staff from other development agencies working in the rural commune (NGOs, etc). The extension activities identified in that way, will be the basis for an annual contract between the rural commune and POs, on the one hand, and ANCAR and the extension agent on the other. The contract will specify the content of the extension activities, the expected results, the operating budget and the contribution of the producer organizations or rural commune to financinig. Wherever POs or NGOs have their own auxilliaire villageois, ANCAR extension agent will iltervene only to complement the work of the auxilliaire villageois. ANCAR will provide the auxilliaire villageois with technical backstopping through its subject matter specialists and training programs. The program of work of the awryilliaire villageois. technical back up and training, and budget will be defined in an annual contract between ANCAR and the PO or NGO. The organization of ANCAR and working arrangements at the local level will be presented in a detailed management and internal organization manual. Its approval by the Board is a condition of credit effectiveness. However, it is understood that the manual will have to be adjusted along with implementation, therefore it is proposed that it be reviewed at the end of the first phase. 29. Staffing. The terms of reference and profiles for all ANCAR positions have been defined in the draft management and internal organization manual. On that basis, expression of interest have been solicited and candidates have been pre-selected. For each managerial position, and whenever possible, three candidates have been pre-selected. The final selection will be made by a Committee reflecting the composition of the Board and headed by the Director General. There will be one such committee for the selection of national level personnel, and regional level committees for the selection of regional personnel. 30. Procedures for personnel annual performance review, criteria for promotion and incentive system will be defined in the management and internal organization. These procedures will include mechanisms to collect beneficiaries' appreciation of ANCAR local level staff, in particular the extension agents. 31. A progressive implementation. A comprehensive training program will accompany the process of establishing the Agency. This initial training program will have as its objective the sensitization of all ANCAR staff to the new extension approach and to the way that the Agency will function (on the basis of the management and internal organization manual). The training program will include various managerial and communication aspects as well. The initial training program was examined at the time of negotiations. ANCAR will be established progressively over a four-year period. The implementation plan for ANCAR was reviewed at the time of appraisal. As part of the conditions for negotiation, the Board of Governors of ANCAR elected the Director-General. The recruitment of the managerial personnel necessary for the first year will be done before the credit becomes effective. The recruitment of the managerial personnel necessary for the first year would be done before the, credit becomes effective. The extension activities of SAED, SODEFITEX and ANCAR will be evaluated at the end of the first two years as far as the cost-efficiency of each structure, beneficiaries satisfaction and relevance of extension services, in order to decide on the institutional modalities for carrying out extension services. The extension mandate of SAED, SODEFITEX will be redefined on the basis of this external evaluation. 32. Financial management and accounting system. An accounting firm will be recruited to design a decentralized cost-accounting financial management and accounting system. As part of its terms of Page 54 reference, the firm will have to design the system, advise on the choice of a software, and agree on selected parameters, write the manual of procedures, and train the accountanits in the manual of procedures and use of the software. This firm will also be recruited for a period of two years to guarantee the quality of ANCAR's accounts. These are conditionis of effectiveness. PROGRAM COMPONENT 5: Support to Producer Organizations 33. Senegal's rural sector is highly structured and producer organizations (POs) play a rapidly growing role in its development. They first appeared in the forn of agricultural cooperatives whicl comprise now 4500 village sections organized in 338 cooperatives. Since the seventies, iiumbers and types of formal and informal organizationis have proliferated and now respond to the needs of all categories of producers. In 1984 the "Economic Interest Groups" (GlEs) were formialized, giVil1g such1 groups legal status and permitting them to obtain credit. Womenl's groups, of whichi exist about 4000 in the country, are particularly active at all levels of the rural economly, but womeni are also represented in mixed agricultural POs. The latter work in all rural subsectors and are increasingly structured inlto unions and federations, in order to be able to represent their members' interests at all adminiistrative levels. A majority collaborate at nationial level througlh the CLonseil nationalc cde concerlation et tie coop &ration des ruraux (CNCR). 34. The Program will help producer organizationis (at the nationial, regional and local levels) strengthen their capabilities so as to be better able to provide services to producers, suchi as access to inputs, product marketing, access to credit, access to informationi. Also, producer organizations are expected to be able to carry out a diagnosis of their members' constrainlts, aggregate and prioritize their needs and articulate them to research and extensionl services. They are also expected to take part in adaptive research and be able to disseminate knowledge and inforimiation to their members. 35. The Program will finance, onl a matchinig granit basis: (a) Training. The Programii will finanice training,, to strengtheni POs' organizational and managerial capabilities upoIn POs' request. Traininig will be in the following domains: (i) functional literacy and numlieracy; (ii) organiizational and financial/accountilig management for PO Board members; (iii) association rules and processes, including cooperative and associative movement regulations; (iv) leadership skills; (v) understanding the macro-economic and institutionial environment; (vi) participatory diagnosis, including gender analysis; (vii) program/project formulation; (viii) the organization and management of marketinlg and of inpuit supply delivery. (b) Communication. The Program will help producer organizations have access to means of communication (rural radio, newspapers, videocassettes as well as less formal means of communication: traditional thleater and songs) in order to communicate relevant information to their members in technical, economic and organizational domains. (c) Support to production and processing technical innovations. The Program will finance technical and management advice to assist producer organizations in the implementation of economic activities (for example, specialized agricultural technical skills; preparation of the documentation to access credit; micro-enterprise management; etc.) and a start-up fund to support the adoption of innovations on a matching grant basis. 36. This component will be implemented by ASPRODEB. ASPRODEB was created by 12 federations of producer organizations (including the nine federations of CNCR) and the Association of the Presidents of Rural Communes to finance and implement grassroots development projects. AGEP, Page 55 the present executing agency of ASPRODEB, operates under the governing bodies of ASPRODEB: the General Assembly, the Board of Governors and the Supervision Committee. The General Assembly, made up of two representatives for each producer organization federation, elects 14 members for three years, with one possible reelection, to constitute the Board of Governors. The Supervision Committee of five members is also elected by the General Assembly for three years. Among other duties, the Board approves funding of development projects presented by the federations or their constituting unions or associations. AGEP ensures that the approved projects are implemented and the Monitoring Committee monitors the implementation and reports to the Board. Before August 31. 1999, ASPRODEB will carry out a management audit of AGEP that will propose restructuring if necessary. 37. Funding mechanism: the Demand-Driven Rural- Service Fund. Three levels of producer organizations will have access to funding under the component: (i) the local level POs (at the rural communes or inter-communes level); (ii) the regional level (unions); (iii) the umbrella organization (CNCR). All POs will have access to funding under the component whether or not they belong to a Federation that is part of CNCR. Funding of regional and local POs' activities will be done at the request of producer organizations, upon presentation of a sub-project proposal. Sub-project proposals will be selected by regional or local coordinating committees made up of PO's representatives. The activities, funded on a grant basis with participation from beneficiaries, will be the following: training, communication, technical and management advice and start-up funding for technical innovation adoption. The percentage of the project costs to be funded by the PO's themselves will depend upon the type of activities and will range from 10% to 40% (less for training or communication, more for technical and management advice or for technical innovation). The funding mechanism will be similar toDDRIFs, except that in this case it will be a DDRSF. Procedures and criteria for sub-project selection, monitoring and evaluation, and auditing will be specified in the "Support to POs'procedures Manual" (See below). 38. Local and regional committees. At the local and regional level, POs' committees will be established: Cadre Local de Concerialion des Organisations de Producteurs; (CLCOP) at the local level, and Cadre Rgional de Concertation des Organisations de Producteurs (CRCOP) at the regional level. These committees will bring together representatives from local or regional POs respectively. rheir mandate will be to provide a forum for POs to discuss and agree on common priorities, review POs' project proposals and select them on the basis of the procedures and criteria presented in the "Subproject Management Manual" approved by ASPRODEB. The procedure manual is being elaborated as part of the experimental program presently underway (see below). ASPRODEB will have to approve the manual by December 31, 1999. Until the "Subproject management manual" is approved, the present Manual of Procedures of the Small Rural Operations Project applies. Once a subproject is approved by the CLCOP or the CRCOP, a contract will be established between ASPRODEB/AGEP and the PO, specifying the activities, the contractor who will provide the services or the training, the results to be achieved, the budget and the payment modalities. Subsequently, the role of theCLCOPs and CRCOPs will be to monitor results. 39. Role of NGOs. One or several NGOs will be recruited by ASPRODEB/AGEP to help establish the CLCOPs and the CRCOPs, train the POs' representatives in proposal review and selection, and then monitor results. The NGO will also prepare and recurrently update a data base of potential providers of services and training-both national and external-which POs will be able to consult to identify the service provider of their choice. The data base will also include a record of the performance of the service providers. 40. A progressive implementation. Because of the innovative, highly participatory and decentralized approach for this component, the activities are already being tested in two out of the ten regions, in a learning-by-doing mode. Under the Program, the activities will progressively be extended to all the regions, on the basis of lessons learned and incorporated in the "Support to PO's" procedures manual. Page 56 The testing phase began in January 1998 under the Small Rural Operations Project, in Senegal Oriental (Tambacounda) and Haute-Casamance (Kolda). ASPRODEB/AGEP contracted with an NGO, the West African Rural Foundation (WARF) to help establish the CLCOPs and CRCOPs. In addition to the general role assigned to the NGO's, as described above, under its contract. WARF is expected to: (i) design the procedure manual jointly with the CLCOPs and CRCOPs it is helping to establish; (ii) with the same collaborative approach, identify and agree with POs' representatives the results the component should achieve; (iii) determine the procedures for monitoring and evaluationi; (iv) elaborate and update a data base of potential service and training providers; and (v) assess the support these providers will need themselves (training of trainers). The test is planned for 24 months. An evaluationi of this testing phase is planned by August 31, 1999. Before that date, the management of AGEP (Agence d'Ex6cution des Projets) of ASPRODEB will have been audited. Lessons learnt will be incorporated into the 2000 plan of work and budget for the component 41. Strengthening CNCR capabilities: This componienlt will support the strengtilelling of the capabilities of CNCR leaders in their representation and advocacy role; their capabilities to analyze, synthesize and-design strategic alternatives; and negotiate with public and private partners. To ward this goal, the component will support: (i) training for CNCR leaders; (ii) communication and networkinig, with the financing of a communications specialist; and (iii) the financinig of a monitorinig and evaluation specialist who will be responsible for establishing a data base on POs. The database will include POs' activities, the support they are obtaining under the present componenit and the results achieved. This will be the basis for organizing exchanges and self-help among POs. 42. Research, extension, and producer organizations collaborative R&D activities. The Research- Development Committee will promote participatory techniology development activities between research, extension and producer organizations. ISRA and ITA will develop contractual arrangemenits with a few producer organizations and the extension services to jointly develop techinologies of interest to these organizations. These partnerships will be established on a pilot basis. At the moment, partnershiips for R&D activities are under experimentation in three agroecological zones-first ulider the Agricultural Services Project and now tinder PPF financing-namely the Senegal River Basin (Podor); Haute- Casamance (Kolda); and the Eastern Senegal (Kedougou). Under the Program, funding for these activities will come either from the DDRSF of ASPRODEB/AGEP, at POs' request, or will be the product of a joint research/extension/PO's proposal presented to the NARF. 43. Under R&D experimental phase, the Research-Development Committee is helping identify potential partnerships, and provide support throughout implementation. It identifies technical assistance when needed, organizes training in participatory technology development methods and organizes the monitoring and evaluation of the activities and their results. It provides feedback to ISRA, ITA, ANCAR and CNCR during the meetings of the Committee. It creates a network for coinmunication and exchange among the various actors involved in participatory technology development activities throughout the country. Finally, it promotes the diffusion of results by working with the diffusion units of each agency. An evaluation of these experimental activities and incorporation of lessons learnt into the 2000 annual work program and budget are planned before August 3 1, 1999. Page 57 PROGRAM COMPONENT 6 and 7: Support key Ministries' functions: (Agriculture and Livestock) and specific livestock activities 44. Devolution of Ministries headquarters services to the regional and departmental levels. The Program will assist the Ministries devolve their services to the regional and departmenit level by providing funding and support to: (i) equip these services (mainly vehicles, computer equipment and, for animal production, simple equipment to test the quality of drmgs and consumer animal products); (ii) to train staff for their new functions, in particular, in data collection, management and analysis; (iii) elaborate procedures to define the role and functions of the regional and departmental services within the Ministry and vis-a-vis their clients and stakeholders. To this end, some of the headquarters staff will be redeployed towards the regions. A skill gap analysis was prepared as a conditioni of negotiations. An inventory of physical assets was also prepared as a condition for negotiations. Completion of the personnel redeployment will be a condition of effectiveness. 45. Share of responsibilities between the ministries' services and the parastatal agtencies. Studies to that effect will be carried out. Decisions concerning a redefinitioni of share of responsibilities between the ministries and the parastatal agencies (SRDR), based on the recommenidationis of these studies, will be a trigger condition for the second phase. 46. Quality control and regulatory functions. These funictionis concern the Directorates of Livestock and of Crop Production. The capacity of the nationial and regional services to ascertain quality control will be enhanced through training in quality control and management and development of a reporting system. In addition, quality control will be redefined to encompass the prevention of market failures. Training courses will be organized to improve and standardize the quality of the services provided by veterinary, pest control and seed certification personiel. The regulatory funictionis of the ML will be strengthened through national programs for epizootic diseases control and for improved food safety control. These programs will include legislation, training and the creation of Regional Inspections, a National Committee for Food Quality, and a National Disease Surveillalice Network. 47. Strengthiening of statistical analysis, policy analysis and monitorinig and evaluation functionis. The Program will assist the MA and the ML in establishing an efficient, reliable and rapid data collection and analysis system through: (i) a simplification of the procedures; (ii) decentralization of the functions to the regional and departmental level; and (iii) training in methodology for data collection and analysis. The Program will introduce the use of a number of less costly and more efficient computerized data collection instruments, such as remote sensing and improved statistical methods. Programs such as National Livestock Survey, Drought Preparedness and Livestock Modelization will be implemented by the ML. 48. Training. The Program will support an important training component, not only for the above functions but for the Ministries as a whole. The training program will have three objectives: (i) sensitization to the Ministries' new role; (ii) improved management, especially for the new human resources management unit and the financial and administrative management Directorate of the MA and ML; and (iii) improving technical skills. As part of improving human resource development and management, a directorate for human resources management will be created. An internal organization and procedure manual will be elaborated, including terms of reference for the positions and procedures for programming, monitoring and evaluation. The draft of this manual was reviewed during negotiations. 49. Support to privatization. The Program will support the further privatization of veterinarian services, pest control services, and seed multiplication through initial training in business management, a service for advice upon request, and a start-up fund, on a matching grant basis. Page 58 50. Construction and rehabilitation. The Program will help the Ministry of Agriculture to build or rehabilitate a building for its headquarters in order to regroup its presently dispersed directorates. The rehabilitation of food inspection services (including the ones of the airport and of the harbour), and the construction of 30 traditional butcher shops following standard hygiene norms are part of the Program. The shops will be managed by private butchers. A special disseminiationi program will promote this type of constructions. In addition, four regional laboratories, three quaranitinie centers, five veterinarian services and ten vaccination centers will be either constructed or rehabilitated. 51. Ministry of Agriculture network of laboratories. A study to rationalize the managemilent of the Ministry of Agriculture network of laboratories will be uLidertakeni in order to determine the extent to which they should continue to be managed by the Ministry or whether some of themil should be transferred to other entities. The study will also determine the humanlia resources and equipment needed for their adequate functioning. Page 59 ANNEX III Senegal Agricultural Services and Producer Organizations Program Estimated Project Costs SENECA) Agncultural Services and Producer Orgaizations Program Program Components in 3 Phases, by Year -- Totals Including Contingencies (US$ '000) Totals Including Contingencies Grand Total 1999 2000 2001 Total 2002 2003 2004 Total 2005 2006 2007 2008 Total 0 years A. Restucturing the Ministry of Agriculture Headquarters 896 9 2.9919 801 8 4,490.6 390 3 3996 1,059.3 1,849.1 801 8 801 8 8018 801 8 3,207.2 9,546.9 10 Regonal Offies 2.951.0 1,153.3 7233 4,827.5 7409 7589 3.841 5,383.9 7233 7233 7233 7233 2,893.1 13,104.5 SubtotalRestructuringtheMinistryofAgncultume 3,6479 4,1452 1,525.1 9,318.1 1,131 1 1.1585 4,9434 7,233.0 1.5251 1,5251 1.525.1 1.5251 6,100.3 22,651.4 B. Ministry of Uveetock Headquarters 86.2 58 4 59 7 204.3 24 0 24 5 133 5 182.0 59 7 59 7 59 7 59 7 238.9 625.2 Improono OQualityControl olAfnimal-based Food Products 4439 4766 2975 1,218.0 21S1 2223 1934 630.8 2975 2975 2975 2975 1,190.1 3,038.9 Improving LivestGck Health 1.703 4 463 7 365 9 2,573.0 776 3 368 5 477 9 1,622.7 385 9 385 9 385 9 385 9 1,543.7 5,739.4 Improvnrg Livestocklr nfornation 1.40866 196 1 122 4 1.697 3 129 9 132 7 422 2 684.8 122 4 122 4 122 4 122 4 489.0 2,871.6 Subtotal Ministry of Livestock 1397 94 2 96 4 320.4 1,145 748 0 1.2270 3,120.3 96 4 96 4 96 4 96 4 3895.7 3,836.4 C. Stengthening the Dir. Dette et In,. (DDI) 1. Strenglhening the DDI 252 6 231 8 236 5 790 S 0 0 0.0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 720.9 Subtotal Strengthening the bir. Dette et Inv. (DDI) 2526 231 a 2336 720.9 00 00 00 0.0 00 00 00 00 00 720.9 C. Institut de Technologie Alimentaires (ITA) a. ITA Proects Management Unit (Direction Generale) 746 5 809 3 479 2 2,036.C 335 2 4507 512 2 1,298.1 479 2 479 2 479 2 479 2 1,916.6 5,249.7 c. Other ITA Programs ITA-funded Protects/a 253 703 526 148.7 62 00 00 8.2 00 00 00 00 00 156.9 OtherDonor-fundedProjectslb 1183 . 118.3 00 00 00 0.0 00 00 00 00 0.0 118.3 SubtotalOtherlTAPrograms 1436 708 526 267.0 82 00 00 8.2 526 526 526 526 210.5 489.7 SubtotallnstitutdeTechnologieAlimentaires(ITA) 8901 8801 5318 2,302.0 3434 4507 5122 1,306.3 5318 5318 5318 5316 2,127.1 5,735.4 D.Institut Sinltgalais de Recherche Agr5cole (ISRA) a.SupporttoManagementUnit(Directiong*n*rale) 2951 2968 1812 773.1 1853 1774 3281 690.8 1812 1812 1812 1812 724.8 2,188.8 b. National Research Units Crop Producbon 156 9 250 7 10 2 423.8 16 6 7.9 244.8 269.3 16 2 16 2 16 2 16 2 65.0 758.1 Forestry 113 1 98 4 16 2 227.7 16 6 1 7 816 109.9 16 2 16 2 16 2 16 2 65.0 402.6 Aninmal Producbon 167 8 1319 11 I 310.9 114 63 104 5 122.2 11 1 11 1 11 1 11 1 44.5 477.6 Agicultural Poicy 208 1599 11 1 191.9 62 10 1354 142.5 11 1 111 11 1 11 1 44.5 379.0 Subtotal N*fion,I Research Units 458 7 640 9 54 9 1,154.3 50 9 26 9 566 2 644.0 54 54 8 54 8 54 8 219.0 2,017.3 *D c. Regional Re"amch Units ID LowerandMddleCasamance 918 2598 438 390.4 440 334 1104 189.1 438 438 438 438 175.1 759.6 EasternandUpperCasanrance 1428 6563 430 8420 440 329 1344 211.3 430 430 430 430 171.9 1,2252 Cr South PeanutBasmr 1148 4422 282 585.2 *33 15 1359 150.7 282 282 292 262 112.9 848.8 Cental Norenm Peanut Basn 1056 2061 4346 746.3 129 10 1503 164.2 4346 4346 4346 4346 1,738.4 2,648.9 Senegal Rmer6 Bas 958 2066 2026 505.1 289 I5 1508 181.2 2028 2028 2028 2028 811.1 1,497.4 Sytvopastoral Zone 1229 191 3 4346 748.8 285 1 0 1503 479.7 4346 4346 4346 4346 1,738.4 2,667.0 N,yaes Zones 682 2292 434 360.8 445 174 1709 232.9 434 434 434 434 173.7 767.4 Mantme Zone 841 1738 434 3013 445 174 1147 176.6 434 434 434 434 173.7 651.7 Subtotal Regional Research Unrls 845 8 2 365 2 1 273 8 4,484.9 261 5 106 4 1 1177 1,485.7 1 273 8 1 273 8 1 273 6 1,273 8 5,095.3 11,065.9 Subtotal Strengthen Institut S6ngalais de Recherche Agricole (ISRA) 15996 33029 1 5098 6,412.3 4978 3106 20121 2,820.5 1.5098 1 5096 1 5098 1 5098 6,039.2 15,272.0 Subtotal Agricultunl Research 2 489 7 4 183 0 2 041 6 8,714 3 841 2 7613 2,5243 4,126.8 2,041 6 2.041 6 2.041 6 2 041 6 8,166.3 21,007 4 E Naitinal Agricultunl Research Fund 1 NARF-ManagementUmt 3560 2756 2931 9249_ 211i0 2157 2206 647.3 2157 2150 z157 2157 8629 2.4351 2 NawonalAgncu,ural Research Fund (NARF) 774 7 1186 3 1 620 3 3,583.3 1 964 0 1.906 1 1 9493 5,719 4 1 906 1 1 906 1 1 906 1 1 906 1 7,624.6 16,927.3 Subtotal National Agriculhurl Research Fund 1.130 7 1.464 2 1913 4 4,008.3 2 075 0 21219 2,1699 6,366.7 2,1219 21219 2 1219 21219 8,487 5 19,362.4 F. AgricuBural Extension 1 ANCAR Headquarters 695 7 1 033 8 729 6 2,459.3 14 40 49 1 094 8 1,674.7 7298 729 6 729 0 729 6 2,919.4 7,053.4 2 Regional Extension Programs to improue Eatensron Services 1.620 C 2 883 6 2 902 6 7,356.: 2 b86 0 2 011 6 2.4913 7,088 9 2,852 6 2 652 6 2,852 6 2 852 6 11,410 6 25,855.6 3 Pilot Program in Natural Resources Management 511 1 213 1 393 2 1,117 4 576 6 244 9 76 4 1,200.0 393 2 393 2 393 2 393 2 1,572 9 3,890.2 Subtotal Agricultural Extension 28267 41305 39767 13,933.0 33494 2.7517 35625 9,963.6 3,9757 39707 39757 39757 15,902.8 36,7993 G. Producer Organizations 1. Building Capacity of Local Producers Organizations Access to Senvices Fund 251 9 590 1 9839 1,8256 1 4707 1 637 1 17566 4,870.4 1 637 1 1 637 1 16371 1 637 1 6,548.3 13,244.5 Techmical Eeacuon 5154 5824 3809 1,478.8 2463 221 9 2262 6943 2218 221 8 22 18 221 8 887.0 3,060.1 Subtotal BuildingCapacity ofLocal Producers Organizations 7673 1,1725 1,3648 3,304.6 ,7229 1.8588 19828 5,564.6 1.85808 1.956 168580 1.8588 7,435.4 16,304.6 2. Building Capacities of National and Regional POs Supporto Researh and Development 559 502 512 157.3 41 1 421 490 1322 42 1 42 1 42 1 421 168.3 457.8 Communrcations Program Development 2102 1379 1484 496.5 1770 1039 2408 521.7 1039 1039 1039 1039 415.5 1,433.7 Strengthening Naoona PO Capaaty 2165 1404 121 2 .80.4 '20b 1229 1936 437.0 1229 1229 1229 1229 491.7 1,409.1 Financal Management, Execution and Audnting 1463 1493 1523 447.9 682 696 71 1 208.8 696 696 696 696 278.4 935.0 Subtotal uilding Capacities of National and Regional POs 6310 477 6 473 3 1,582.0 406 7 330 5 554 5 1.299 7 338 5 338 5 338 5 338 5 1,353.9 4,235.7 Subtotal ProducerOrganizations 1.398.3 1,650.3 1.8381 4.886 C 2.129 7 2197 3 2 5374 6,864.4 2.197 3 2 197 3 2.197 3 2,197 3 8,789.3 20,540.2 H. PPF Financing 1. PPF Refinanang 2.000 0 2,0t 0 0 0 0 0 0 0 0.0 0 0 0 0 0 0 00 0.0 2,000.0 Subtotal PPF Financing 2.000 0 . . 2,00.9 - 00 0 0 0 0 0.0 0 0 0 0 0 0 0 0 0.0 2,000.0 Total PROJECT COSTS 17,5280 17.0840 12,4922 47,1C4.2 10 971 6 9.7387 16,9644 37.6747 9,7387 97387 9 7387 9.7387 38,954.6 123,733.6 \a Inaudes: proects on couscaus, watermelon. staabilsation de boisson . concept,on d'un cuiseur and lomo \b Includes: uanthane (ITA-CEA) and aam (ITA-CRDI) projects Page 1 3phases2. SENEGAL AgriculturI Serie and Professional OrganizationsPrnrrn(lename PSA3Y. 5IMar 21 1999) Components Project Cost Sumnmry (CFA Francs Million) (US$ 000) Forign Bane L..e] Foreign Total Local Foreign Total E-ohange Costs A. Restructuring the Ministry of Agnuolture i. teldquertsnrs end Regional Offices Headquarern 1,254 1.008 2.262 2,280.0 1.8332 4113.2 45 9 10 Regional Offices 878 `66 2444 1.596 8 28473 4.4442 64 10 Subtotal Restrunturing the Ministry of Agriculture 2.132 -u74 4,707 3876.8 4,6006 8,557 4 55 20 B. Ministry of Liestock Headquarters 66 39 105 1194 718 191,2 38 - Impo-gQuality ConPtrolofArirnal-tasedFood Products 374 250 624 6791 4551 1.1342 40 3 Irmonving Livestock HetIh 606 707 1.312 1,101.0 1,2849 2,385.9 54 S nWtinsngLienskckInlontration 666 202 869 1,21t.8 367.5 1,5793 23 4 Und ofMondorng & Enalaton 57 III 168 1037 2011 3048 66 1 SubtolUaMinistryofUwesock 1,768 1.309 3,077 3.2151 2.2803 5,5954 43 13 C. Sengthening th Oie Deltte etoInv (DOI) 1. Strengtee'g the DDIC 362 18 380 65980 32C 691.0 5 2 SubtsotI Strengtheing the Dirl Dette*lt lnv (DOt) 362 18 380 659 0 32 0 691 0 5 2 D. Agricultuntl Reseaech 1. labsttutedp Technologi Aiitim inun (ITA) e. IA ProjecU ManagentUndt(5n aon~G.re) 538 488 1.027 9789 5877 1.86666 48 4 e Other WA Pregame ITA-fatedd Peeects Ia 33 41 74 600 752 1352 56 0th ornorlitandedProntects b 25 37 61 45 664 i1 5 60 Sulbf IOth rlTA P-gngns, 58 78 136 105 1 1416 246 7 57 1 Svbt11tktnsdtitdutl do T ogie Altimnteirae (FTA) 596 566 1,162 1.084 0 1,0293 2.113 3 49 5 2 SW-nte Wistute SOAiaas e Rd ehelhe Agricole jISRA) a Sope-ltohfaoage Uneeer ntsr)nmra genoe 173 219 392 3134 3981 7136 56 2 b Nlieeonal Reneaih Uits CnMP PnnKss 76 140 21, 1374 2536 391.0 65 1 '-V Foreory 35 e1 117 643 147.5 211.8 70 . Anwrial Prodes 54 105 159 574 1908 2882 66 1 On A - Pocy 32 65 97 580 1187 1767 67 - (D Sa Nlwhbont Resech Unnts 196 391 587 357 0 710 7 1,067.7 67 2 o Regaetl Research Uenits d Loiie,rnWdt.ndM Casenance 64 137 201 1156 2497 3653 68 1 Ease nd Uppe Casarsntce 196 235 425 3452 4280 7731 55 2 Sauh Peanut Basan 120 176 296 2186 3197 5383 59 1 Cten4lNNognnePeanutwna 165 207 372 3003 3759 6762 56 2 Senegal River Bain 92 162 254 168 0 294 0 462 0 64 1 Sylnopastorel Zone 170 203 373 3092 3603 6775 54 2 Nfyee Zones 50 134 184 909 2429 3337 73 1 Macbone Zone 38 116 154 691 2106 2797 75 1 Subtotal Regional Research Units 889 1 369 2 250 1616 7 2 4091 4.105 9 61 9 Subtotal StengthtenInsttitut ntgais do Recherche Agnoole (1SRA) 1.259 1979 3238 22892 3.5980 508872 61 14 Subtotal Agricultural Research 1.855 2.545 4,400 3.373 2 4 627 3 60000 5 58 18 E. National Agricultural Research Fund I. NAMF - Management Unit 272 250 472 494 8 363 9 050 7 42 2 2. National Agrcuuoral Researh Fund (NARF) 863 925 1 700 1 5682 1.0824 32507 52 7 Subtotal National Agricutural Research Fuod 1.135 1.125 2260 2.063 1 2 0463 4,109 4 50 9 F. Agricultural Entenriin 1 ANCAR Headquarlers 534 712 1 246 9710 1,294.3 2,265 2 57 5 2. Regional Extension Programs to Improne Eotenoi.n Servic,es 1.678 1.989 3.668 3,051 6 3,6171 6.660 8 54 15 3. Pilot Programin Natural Resources Management 357 213 570 640.0 3874 10361 37 2 Subtotal Agriculturel E-mntion 2.569 2 914 5,484 4,671 4 5,2900 9.9702 53 23 G. Producer OrganizaiSons 1. Building Capacity of Local Produce' Organiations Access to Semces Fund 901 20 929 1.630 4 515 1,689 9 3 4 Technical Eaecoion 757 3757 13701 13761 3 Subtotal uilding Capacity of Local Producen Organizations 1,658 20 1.686 3,014 6 515 3,066 0 2 7 2. Building Capacities of National and Regional POs Supporto Research and Develupmnct 77 3 79 5 39 1 99 144 0 3 Communicatons Program Deuotnpmern 228 23 251 413 9 41 6 455 5 9 1 Strengthonin National PO Capacity 228 15 243 4148 267 441 0 6 Financial Management. Ec.cution and Auditing 237 237 4304 430 4 . I Subtotal sliding Capacities of Notional and Regional POs 769 40 809 1 398 2 731 1.471 3 S 3 Subtotal Producer Organiations 2.427 69 2.496 4.4127 1246 45373 3 10 H. PPF Financing 1. PPF ReInancing 1 1.100 -.157 . 20OL0 2.0000 100 5 Subtotal PPF Financing . 1.100 1.100 - 20500 2000 0 105 5 Total BASELINE COSTS 12.249 11,654 235904 22.271 2 21 189 9 43 461 1 49 100 Physical Conlngencins 477 495 972 667 0 900; 1.767 5 51 4 Pice Contingenes 527 504 1.032 950 7 i6 9 1 675 6 49 4 Total PROJECT COSTS 13.253 12654 25907 24.0969 23,0073 471042 49 108 Ia Includes: projects on couscous, motonon, "stabilitsain do Sis-on", cdnnnptimn dun cuiseur and fon,o \b Inlcudos: calhane (ITA-CEA) and ataw (ITA-CRDI) projects Page 1 Sum-com do Comyl xis SENEGAL Agr1cuuai Sorur-es and Profssional Organirabon Program (illnam, PSA3Y- SlMar 21. 1999) Project Compon nts by Y.ar - Totals Includ.g ContinganciCs Totals Including Contingancree (CPA FrancsaMillion) Total Including Contingn ie (US$000) 1999 2000 2001 Total 1999 209 2001 Total A. Reetsbustuang the Minitry of Agricuftur 1. Httdq-utr nndR gion lOff-.tt Headqsnaeand 383 1646 441 2.470 696 9 2.9919 801.8 4.490 6 10ReonalOttIces 1.623 634 398 2.655 2,9510 1.153 3 723 3 4.827 5 SubtotalR tRtuctiningtheMinity ofAgvduiltou 2006 2.280 839 5.125 3.6479 4145 2 1.5251 9.3181 B. Ministry sd Liessocik HadrWartrn 47 32 33 112 962 584 597 2043 Improving Quality Cotol ftA-a dbas Food Poduds 244 262 164 670 4439 4766 2975 1.2180 Improong Liveetock Heatlh 937 266 212 1415 1.703 4 483 7 385 9 2.573 0 Improving Livestock Intonaton 775 91 67 934 1,408 8 1661 122 4 1,697 3 Un of Monitoring b& oluabo 77 52 53 182 139.7 942 964 3304 SobtotaI Ministry s Uveock 2,080 703 529 3.313 3.782 0 1.279 1 962 0 6.023 1 C. Strngthaning th Dir. Dtta at Inn (DDI) I Slrngllening the D)DI 139 127 130 396 252 6 2318 236 5 720 9 Subtotal Strngthaningth. Dir. D tteet In. (DOI) 139 127 130 396 2526 2318 2365 7209 D. AgicaulerI Resoarch 1. Institt d Technolgie Alimentairs (ITA) a. ITA Projotta Manaeement Und(Drerctonconrrale) 411 445 264 1.119 7465b 092 4792 2,0350 c Othr ITA Progrms ITA-bnded Projolst I 14 39 29 02 253 708 526 1407 Olher Donor-hundd Projeclslb 65 - - 65 118 3 - 116 3 Subtotal Other TA Programs 79 39 29 147 1436 708 526 2670 Subtstllnsetutde Tnchnologi Alimnntairs (ITA) 490 404 29 1.266 8901 8801 531 0 2.302 0 2. Strengthen Institet Sdnegalais da Recherce Ag-ico (ISRA) a Support IManagenemtoUmil(Dir-cSon raio 162 763 lu 425 29b1 2768 1812 7731 b. National Research Units Crop Producion 66 138 9 233 156S 2507 162 4230 Forestry 62 54 9 125 1131 904 162 2277 Anml Produchon 92 73 6 171 1678 3129 11 1 3109 91 Agncouloral Policy I1 68 6 106 20 6 159 9 11 1 1919 9 Subtotal Ntional Reseach Units 252 352 30 635 4587 6409 548 1,1543 3D c. Ragisnal Research Unite Lover and Middle Casamanco 50 143 24 217 918 259 0 43 8 395 4 Easteon and UpperCsamanco 79 361 24 463 1420 6563 430 8420 Sout Peanut Basin 63 243 16 322 1148 4422 282 5852 Centr-alNorN hem Panut Basm 58 113 239 410 1056 2061 4346 7463 Seosgal Ri-r Basi 53 114 112 278 958 2066 2020 5051 Sylopastorl Zone 60 105 239 412 1229 1913 4346 7409 Niya". Zones 40 126 24 198 882 2292 434 3608 Man6m Zone 46 96 24 166 041 173 8 43 4 301 3 Subtotal Regional Res"arch Units 465 1,301 701 2.467 045 8 2.365 2 1.273 8 4.484 9 Subtotal Strmngtnn 1nsttut S6nigalais de Recherche Agricol (ISRA) 880 1.817 030 3 527 1599 6 3 302 9 1.509 8 6 412 3 Subtotal Agricutral Research 1,369 2.301 1,123 4,793 2.409 7 4.183,0 2.0416 8.714 3 E. Natonal Agriculturl Research Fund I NARF - Maegemel Uol 196 152 161 509 3560 2750 2931 9249 2 NabonalAgicuhur1 Ro-searh Fund (NARF) 426 654 891 1.971 7747 1.1883 16203 25833 Subtotal National Agricultrual Rsearh Fund 622 805 1.052 2,460 1.130 7 1.464 2 1.913 4 4.508 3 F. Agricuhrul Entansisn I ANCAR Headquarnrs 383 569 401 1.353 695 7 1 033 0 729 0 2 459 3 2 Regmoal Evt-noion Pmorrn toi n -or onEut.nsioSn.r-ce.s 091 1566 1569 4 046 1620 0 2 083 6 2 052 6 7 356 2 3 Piot Pgnta i Natural Resoures Maagomenl 281 117 216 615 511 1 2131 3932 1 1174 Subtotal Agricuttunl Eotnuion 1,555 2 272 2167 6,013 2,826 7 40130 5 3,9757 710933 0 G. Producer Orga-niztions i. Building Caparity of Local Producero Organiations A-asotaSet s Fund 139 325 541 1 004 2519 590 1 9839 1 8258 Teodentt Eveobon 283 320 210 813 5154 5824 3809 14700 Subtotalit dingCapacityofLocalPoduocertOrganizatios 422 645 751 1,018 7673 1 1725 13648 3.3040 2 Bedding Capacitien of National and Regional PO. SutpopnttoRe---ch ndDevo rebnrn 31 28 28 86 5b9 502 512 1573 ComminatcatieunProWn5nmo;nment 116 76 52 273 2102 1379 1404 4965 Stnrthaintg NaonalPOCaP-ty 720 77 67 264 2105 1404 1215 4804 FinancldMlanagranrttenE-on andAudnlog 00 02 04 246 1463 1493 1523 4479 Subtoldutal u CingCarp cibe Natonal and RegionalPO. 347 263 260 870 6310 4778 4733 158020 SubtoaPltucOrgd Ontitizob 769 908 1011 2688 13983 16503 1.8381 4.8856 H PPm Fetanceg 1 PPFR - unong 1100 - I 716 20000 - - 200000 sut Pm Penncing 1100 . 1 100 2 000D0 - 2 0000 Total PROJECT COSTS 9 640 9 396 6 577 25.907 17 520 0 17 084 0 12 492 2 47 104 2 inrldes pmycton -oi- S noenWreIon sutbdms-oo Or boss corptu- dun -s-ur and Ion b Includes oire (ITACEA) and arra (ITA-CRDlI pr,1ndo Pago I sr i-^ -- o P E r g E S E Z 1 _ SI,~~~~~ a * -- - -0--~..... .. ct ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~t Zs __ _! _t _ >u gX " t t aW t I0 8 oYt;X >S u uw wW y0 ococ n a 4-Aw s g w 2 o s o wwow . s O js.so os i t o ~~~~~~. . . ....... . ... . .... . S. . ... . SSS... ..... .e S M ~~~~~~~~~~~. . . . . . . . . . W. . . . ....>at 0 . . . . . _ u. . . . . . . . . . . . . . . . . . . . . . . .. . . ... . . . . .... . . . . . ..e jO ~~~~~~~~~. Oi, ..ou.,IW_ .... . . . . ................. . ....... . . . .. . . . . ........ . ....>' o22 (400(4 0 22232 W ( 3 A 0 Vu eg36ed Agneultural Services and Producer Organizations Program Expenditures Accounts by Components - Totals Including Contngenaes (USS'000) Ministry of Ministry of Strengthening Agriculture Uvestock the DDt ITA ISRA NARF ANCAR OP PPF Total 1. Investment Costs A. ChMI WorkS Conrsucbon of Wells - 90 4 - 90 4 RehatalitaDon of Buildings/Land Lots 2.208 1 417 5 492 6 1,773 5 421 4 - 5.313 1 Subtotal CvllWorks 2.2081 4175 4926 1.7735 511 8 54035 B. Vehicles Veh;des 4x4 (DC, other) 2,4831 50 2 361 1253 4 - 916 4 50 2 4 789 5 Sedanrs/Bedine - 562 562 2091 551 3116 - 6883 Motorcycles 409 0 - - 78 3 - 1.746 9 2 234 2 Subtotal Vehicles 2.4831 515 5 92 4 1540 8 551 2.975 0 50 2 7.712 0 C. Agricultural and ScIentifIc Equipment - - - - - - Laboratory Equipment 146 0 86 5 5101 - 2 0 744 6 Agncultural Equipment - 291 1 - 3 3 - 294 4 Subtotal Agricultural and Sclentmfic Equipment - 146 0 - 86 5 801 1 - 5 3 - 1 039 0 D. Equipment and Materials . . - - Computerand Oftha Equipment 3610 303 2 32 5 391 295 4 31 1 783 8 610 - 1907 2 Communicabon and Training Equipment /a - 127 6 108 3 2 0 - 134 7 - - 372 6 Other Equipment/b 80 2417 - 1068 701 - 235 703 5225 Fumiture 7.6 31 1122 121 - 4421 15 - 5786 Subtotal Equipment and Materials 3767 6725 356 3684 3796 31 1 1,384 1 1329 3.3809 E. Specialist Services - Intemabonal Consultants 324 8 - - 610 306 5 - 1.0081 - - 1.700 3 Nabonal Consultants 252 9 30 4 - 278 8 - - - 2 062 2 2 624 3 Subtotal Specialist Sereices 577 7 30 4 339 8 306 5 1.008 1 2.062 2 - 4 324 6 F. Studies. Evaluations and Surveys - 4508 - - - 2394 8859 - 7792 tu G. Training 0) Local 527 5 830 7 65 7 64 4 8980 15942 39805l Overseas - 170 4 , 90 0 1066 4 - - - 1326 9 Travel 251.6 58 8 - - 80 7 3911 0' Altomances/perdiem , 755 5 , 46 7 25 6 827 8 I- Scholarships. Funds and Grants - 102 4 - 53 9 - - 1.047 0 - 1 203 4 Documentabon Matenats , 0 8 - 0 8 Subtotal Training 779 0 1,917 9 65 7 143 9 1 178 2 - 1004 3 2.6413 - 7,730 4 H PPF Refinanong - - , , - - - 2 000 0 2 000 0 Total Investment Costs 6 424 6 4.150 6 101 3 1.523 6 5 979 7 325 6 6.977 6 4 886 6 2.000 0 32.369 5 Ht. Recurrent Costs k . A Incremental Staff Salanes - - 611 5 221 273 2986 299 - - 9892 B. Opention and Maintenance Etsldings and Plots 457 3 0 5 - - 227 7 169 4 - - 855 0 Vehicles and Motorcycles /c 1 314 0 522 1 - 43 2 42 5 33 9 946 5 - 2.902 2 Offce/ComputerEquipment 2252 1169 81 158 99 191 3860 7812 Otherbquipment /d - 67 8 - - - - 67 8 Subtotal Operation and Maintenance 1996 5 707 3 81 59 0 2801 222 4 1332 6 4 6061 C. Opeating and Administrative Expenses - Travel and Subsistence - 237 6 - 62 9 48 3 67 7 416 6 Office Supples 5210 40 I 20 7 26 6 - 424 0 1032 3 Agncultural Supples - - - 35 8 - - 35 8 Subtotal Operating and Administntive Expenses 521 3 2777 836 1107 - 491 7 - 14846 D Oter Supplies /e - 4 5 119 0 66 7 - - - 190 2 E OberOperabngE.penses/t 1575 8831 1849 155 36616 8723 - 57750 F Ubintes 109 7 - - 199 3 - 1 228 9 1 537 9 G Carlnsurance 13859 - 427 , - - - 151 i TotalRecuqnentCosts 28936 18725 6196 5114 6996 41826 39554 - 147347 ToEta PROJECT COSTS 9 < 8 1 6 023 1 720 9 2 035 5 6 679 3 4 509 3 10 933 0 4 896 6 2 000 0 47 104 2 Taxes 25171 7411 87 4389 18786 744 20446 2544 79581 Foreign Exchange 51218 2 56 9 34 7 970 7 4 055 5 2 2615 5 841 4 134 6 2 000 0 23 007 3 %a Includes aud,o-mvsuals. conference room equipment documentation matenals %b Includes satellte images, generators, air conditioners, mobile rad.os machmes and tools for workshops %c Calculated at 20% o0 necle pnoce or CFA 5 625/eh,de/yr (I e for 25000 krehecle/year 1 CFA 225F/km) and CFA 35000/molorcyclnde vd Includes agncwltural equipment, air conditboning ve Laboratory, chemicals, machinery supplies tools It Building rentals, cost of evaluabons. studies. surveys, commumcatonscosts tees for contracted services Page 1 EXACCCOM uIs Lftfin.xls SENEGAL Agricultural Services and Professional Organizations Program (filename: PSA3Y-15/Mar. 21, 1999) Local/ForeignlTaxes by Financiers (CFA Francs Mil!ion) International International Fund Development for Agric. The Government Association Other Development Beneficiaries Total Amount % Amount % Amount % Amount % Amount % Amount % I. Foreign 1,942.3 15.3 8,716.2 68.9 39.0 0.3 1,953.1 15.4 3.4 - 12,654.0 48.8 II. Local (Excl. Taxes) 1,027.1 11.6 6,360.1 71.7 16.5 0.2 1,353.5 15.2 119.2 1.3 8,876.4 34.3 III. Taxes 4,376.9 100.0 - - - - - - - 4,376.9 16.9 Total Project 7,346.3 28.4 15,076.3 58.2 55.5 0.2 3,306.6 12.8 122.6 0.5 25,907.3 100.0 (D Page 1 Lftfin.xls SENEGAL Agricultural Services and Professional Organizations Program (filename: PSA3Y-1 5/Mar. 21, 1999) LocallForeign/Taxes by Financiers (USS '000) Intemational International Fund Development for Agric. The Govemment Association Other Development Beneficiaries Total Amount % Amount % Amount % Amount % Amount % Amount % 1. Foreign 3,531.5 15.3 15,847.6 68.9 70.9 0.3 3,551.0 15.4 6.2 - 23,007.3 48.8 II. Local(Excl.Taxes) 1,867.4 11.6 11,563.8 71.7 29.9 0.2 2,461.0 15.2 216.8 1.3 16,138.9 34.3 Ill. Taxes 7,958.1 100.0 - - - - - - - - 7,958.1 16.9 Total Project 13,357.0 28.4 27,411.5 58.2 100.9 0.2 6,012.0 12.8 222.9 0.5 47,104.2 100.0 Page 1 Page 67 ANNEX IV Senegal Agricultural Services and Producer Organizations Program ECONOMIC AND FINANCIAL ANALYSIS The project benefits taken into account il this economilic analysis have been the increase in national agricultural production, net of additional on-farm investimienit and inputs, due to the adoption by farmers of the technical packages proposed ulider the programi. Thlese packages will be designed in association with the farmers themiiselves and with their organizations. Tlhe agricultuLal production includes the cropping activities, which represent about 60% of the added value of the sector, and the livestock activities whicih represent about 40%. Most of this productioll comes from smallholders wvho represent over 90% of the farmers. The cropping component includes an estimation of farim budgets by agroecological zones and standard types of farms4, and an assessment of overall benefits by aggregating farm budgets. accordilg to assumptions made by the mission on the prospective adoption rates wvhich may differ dependiing on the agroecological zone. The livestock component inclides an estimationi of herd and flock budgets by standard type5 and an assessment of overall benefits by aggregating herd budgets, according to assumptionis made by the mission on the prospective adoption rates by cattle and sheep breeders. Farm-level Financial Analysis Farmn/Herd models. Primary project beneficiaries will be small farmers currently practicing low-input and low-output farming systems. As cropping systems vary considerably within the sixagroecological zones of Senegal, the analysis includes one or two standard types of farn for each of these zones. It was assumed that the main project benefits will accrue from incremilenital productioni resulting from adoption of the improved varieties, better use of inputs and associated cultural practices by farmiers, along with better use of irrigation water in the case of rice-based farminig systems of the Senegal river valley. Every three years, benefits are reduced by 30% to take into account periodic drought. For livestock activities, the analysis includes two standard herds (large nomadic herds in the North of Senegal; sedentary cattle in the South) and two standards flocks of sheep (large nomadic flocks in the North; small sedentary flocks in the South). Sedentary cattle breeding could progressively be integrated with cropping activities by developing ox-drawn cultivation and increased use of manure. Main project benefits will accrue from better health, breeding techniquLes and feeding pattenis. Benefits and cost per standard type of farm. Technical packages and levels of productivity for main activities in the different situations (current, with project and without project situations) were determined for each of the standard type of farms, in accordance with the techinologies likely to be available during the investment phase of the project. Yield increases were projected to vary from 15 to 35 % (depending on the region and the crop)6 and to be achieved only by the adopting farms. For a given adopting farm, the objectives are to be achieved over a six-year period7. Productivity of standard types of livestock 4 On the basis of information and data provided and confirmed by the department of economics of ISRA (BAME). 5 On the basis of information and data provided and confirmed by the department of economics of ISRA (BAME). 6 Initial target yields provided by BAME have been reduced by 12 %. and additional benefits reduced by about 35 %, to obtain more realistic objectives. 7 Overall, additional benefits increase over a fifteen-year period. Annual rates of increase of productivity varies from 1,6 to 2.7%. Page 68 activities was supposed to increase by 30 % for cattle herds and 70 %8 for flocks of sheep, over a period of ten years. Cost of inputs. Major inputs used for rainfed cropping activities are labor, fertilizer, farn chemical and improved seeds. Labor is the single most important componenit of crop productioll cost in Senegal and accounts for 70 to 80% of total input costs. Fertilizer use in Senegal is low (7.9 kg/hla oln average in 1995) and has decreased over the last few years because of the divestiture of tile State from the distribution of fertilizers and slow takeover by the private sector. Inputs of increasinig importanlce should be improved seeds and agrochemical for seed treatment. Marketing of outputs and turnover. Main agricultural outputs are groulidintits, staple grains (millet, sorghum and maize), rice, cowpea and vegetables, whose respective importanice depends on the type of farms and agroecological zone. Main output of the livestock activities are meat, cow milk and mantire (used by cropping activities). The major constrainlts to efficient marketing of agricultural outputs are: (a) a poor distribution network, whiich leads to a wide disparity betweeni fariigate and retail prices, along with wide seasonal price fluctuations; (b) inadequate low-cost storage at farm level; and (c) lack of processing capacity at village level. The project includes researcih and extension activities to alleviate a part of these constraints, in particular through farmers' organizations. As a significant demand exists for domestically produced crops, the above project activities will facilitate the market absorption of the increased production to be generated under the project. Outputs of the standard types of farms and herds (or flocks) have been valued on the basis of average financial farm,gate prices observed during the three preceding years. Annual turnover of a given standard type of farm or herd results from the aggregation of the value of each output, after taking accoulit of their respective weight (hectares of crops, heads of cattle). Financial Farm Budgets. Farm-level returns were estimated in three situationis (current, without and with project) for eight types of farms devoted to cropping activities and for four types of herds or flocks. Under the assumptions used, almost all farn budgets show a significant increase of returns to farn families, a manjor part of which can be attributed to the project's interventions. For cropping activities, the output / input (other than labor) ratios9 ((with project)> vary from 2 to 8, according the region and type of farm. Higher ratios are reached for rainfed farming systems of the south part of Senegal, where rainfall is sufficient to justify noticeable quantities of purchased inputs. The weakest ratio will apply in theSahelian part of Senegal, for irrigated rice. Project-level Economic Analysis Approach and assumptions. Economic costs and benefits from the project were determined on the basis of the following assumptions: (a) a project life of 20 years, commencinig with a one-year lag for the accrual benefits; (b) an investment period of six years, includinig the total costs10 of the following components: (i) research including the special fund, (ii) agricultural extension, and (iii) farmers' organizations componentsl I; (c) all prices of outputs and inputs expressed in 1998 constant economic valuesl2; (d) an opportunity cost of capital (OCIR) of 12%; and (e) an exchange rate of 580 CFAF for I US$, equal to the market rate. Economic benefits from the project weire assessed for 8 standard individual farms, one for each of the 8 natural regions of Senegal and for 4 standard herds (or flocks). 8 Initial target growth provided by BAME have been reduced by 12 %, and additional benefits reduced by about 40 %, to obtain more realistic objectives. 9 Low ratios correspond to lower rusticity and higher financial risks due to high quantities of purchased inputs. It is generally considered that this type of ratio should be at least equal to 3 to be safely adopted by small farmers. 10 Recurrent costs have been taken into account from PY 7 to PY 20, on the basis of estimates made for the assessment of Agricultural Services and Producer Organizations Program fiscal impact. 11 Excluding restructuring of the Ministry of Agriculture. 12 There have been no significant changes in farm gate prices since 1996. Page 69 For internationally traded commodities such as groundnuts, rice and cotton, import parity farm gate prices were used. Adoption rates. The number of standard farms, herds and flocks that will adopt technical packages and benefit from the full impact of their adoption was estimated by the mission, on the basis of data provided and suggestions made by the PNVA. However, no sufficient information was available on target yields and adoption rates, by main activities and by regions'3. For cropping activities, adoption rates used in this economic analysis vary from 15 to 30% depending on the agroecological zone and the type of farm. For livestock activities, adoption rates vary from 10 to 15%. The adoption rate definitioni used in the analysis is the number of farms or herds, over the six years of the disbursement phase, which are supposed to adopt and benefit from the full impact of the adoption of the technical packages proposed by the project. This adoption rate is expressed in percentage of the total number of existing farms. Number of years to reach the objectives For cropping activities, it was assumed that a given standard farin which adopts a technical package in project year (PY) n benefits from the corresponding full impact on productivity in PY n +6. In addition, for each PY during the six-year disbursement phase, one sixth of the total target farms are assumed to adopt the considered technilcal package. Therefore the overall additional benefit reaches its maximum value in PY I1 and remains the same up to PY 20. For livestock activities, it was assumed that a given standard herd or flock whiich adopts a technical package in PY n reaches its <200 ICB Prior review US$2.2 million. <200 NCB Post review <50 Other (Quotations) Post review: 2. Goods >200 ICB Prior review/ All documentation. Aggregate: USS10.5 _ _ _ _ _ _ LIB US$1.03 <200 NCB Post Review <50 Other (Quotations) Post Review or IAPSO 3. Ser vices 3.1 Consulting Firmis or >100 a/ QCBS + Short List Prior Review. Technical evaluation subject to training instituitions LCS for Audits IDA non objection before opening financial proposals. Short Lists may be comprised entirely of firms from Senegal if there is at least three reliable firms. Aggregate: US$6.3 M <100 QCBS + Short list Post review (except for TORS) Consultant's _________________________ Qualifications for studies 3.2 Individual consUltalnts >50 Comparison of at least 3 Prior Review Cvs Aggregate: US$0.3 M <50 Comparison of at least 3 Post Review Cvs (except for TORs) Total value of contracts subject to prior review: US$20.33 (or 77% of total contract amount). a / Issue an advertisement in Business Development to get expression of interests for contracts above US$200,000. Prior Review is required for:. . All TORs for consultants, studies and trainings . Annual training and procurement plans . Sole source selection of individual consultants and firms . Amendments to contracts with consulting firns or individuals that bring the total value of the contract to US$ 100,000 equivalent or above for firms and US$ 50,000 for individuals. 32 Thresholds generally differ by country and project.- Consult OD 11.04 "Review of Procurement Documentation" and contact the Regional Procurement Adviser for guidance. Page 80 The project will assist eligible producers' organizations (PO) in the form of grants payable in tranches as described in the manual of procedures, and unlder contractual arrangemiienits between POs and ASPRODEB. Proposals prepared by POs with the assistance of NGOs, as needed, will be reviewed and approved by the local or regional committee (CLCOP or CRCOP). An NGO with extensive experience in similar operations will be responsible to provide support to the CLCOP and CRCOP and oversee with them the process of selection, monitoring and evaluationi of the POs sub-projects funded by the Rural Service Fund. In-additioni, financial and technical audits will be carried out by an indepenidenit firn -- selected by ASPRODEB in accordance with the procedures applicable for consultants -- annually to assess that completed sub-projects have been implemelnted according to sub-project proposal and contract. The convention between POs and ASPRODEB will stipulate that dependinig on the sub-project activity: (i) POs will receive an advance of the granit for starting activities: and (ii) the remaining amount will be paid in tranclhes against the provision of docuLmlentationl justifying imiplemenitationi of activities, certified by the CLCOP or the CRCOP with support of the above mentionied NGO. Disbursenments Disbursemiienit of IDA Credit. IDA and cofinaniciers will finanice 100% of foreign expendituLres and 80% of local expenditures for civil works and vehicles and equipmiienit; and 80% of operating costs. IDA and cofinianlciers will not finance operating costs directly for the two research institutes (ISRA and ITA). Operating costs for research will be funded through research project contracts reviewed, approved and funded by NARF. The operating costs of the Ministries will be financed entirely by the Government. Estimated at 8.0 millionis dollars, foregone taxes will be anothler form of Government contribution to the program. To facilitate program inplemenltationi, the Government will open a Special Account in CFAF in a local commercial banki acceptable to IDA. The authorized allocation will cover four months of eligible expenditLres. Upon effectiveness, an amount representing 50 percent of the authorized allocation will be deposited in the special accoullt All replenishment or reimbursement applications will be submitted monthly. All replenishmenit applications will be fully documented except for: (a) contracts of less than US$50,000 equivalent for goods and works; (b) US$100,000 for consultants; and (c) training, studies and operating costs which may be claimed on the basis of Statements of Expenditures (SOEs). The documents relating to points (a) to (c) will be retained at the program implementation units and reviewed by the IDA supervision missions. Ninety day advance accounts will be allowed under the Program for ANCAR Regional Directorates as long as the Agency will be able to: (a) maintain proper books of accounts for the project funds; (b) allocate funds to the various regional directorates based on budgets and cash flow plans approved by ANCAR Board. (c) monitor the use of decentralized funds by the various regional directorates and obtain acceptable accounting from each of these locations on a regular basis; (d) prepare and submit regular replenishment requests to the Bank (and other donors) together with appropriate supporting documents to evidence receipt and utilization of IDA and govemment funds. "The Bank is introducing an initiative to change loan administration in Bank group projects, the Loan Administrative Change Initiative (LACI). This initiative assists projects to put in place sound financial management, procurement and output monitoring systems. Where appropriate, if these systems are in Page 81 place, disbursements may be made on the basis of agreed quarterly Project Management Reports (PMR) rather than on the basis of individual invoices or statements of expenditLre. Since appraisal for the Project was before July 1, 1998, the date set by the Board for the implementation of LACI, the process does not apply to the Program. The LACI concepts have, however, been taken into consideration in project preparation. An assessment has been made that the LACI procedures will not be appropriate for the Program initially. There is a need to ensure that the systems put in place are operating effectively. The monitoring and evaluation process will include output monitoring reports which are consistent with the LACI requirements. The financial, procurement and output monitorinig systems will be reviewed as part of the mid-term review at the end of the second year to assess whether it will be appropriate to move to Project Management Reports disbursenments at that time. Accounting, Audliting and Reporting Each implementing agency will have a finanicial and accountinig management system in place and certified by an independenit auditor before credit effectiveness, except for ISRA, for which this is a disbursemenit condition. ISRA is putting in place an improved financial managemenit and accounting system and will have to be restructured finanicially before receiving IDA funding (condition of component disbursement). ITA will also recruit a financial maniagement and accounting firm which will be responsible for assuring the quality of ITA accouLnts and finanicial management for the first two years, helping the Institute recruit staff (if necessary) and training accountinig staff. This will be another condition of effectiveness. ANCAR will put in place, with the support of an international accounting firm, a financial management system, includinig cost accounting (by activities and regions, in order to implement decentralization and to keep track of contracts with producer organizations and rural communities). The accounting firm will be responsible for producing an opening balance, recruiting financial management staff and accountants, and traininlg them in the system. It will be expected to ensure the quality of the financial statements of ANCAR for the first two years of operation and will be released of this responsibility once these statements have been audited and the recommendations of the independent auditor have been implemented. The Program will become effective once the accounting firm is in place and the manual of accounting procedures has been adopted by the ANCAR Board. All agencies will maintain their accounts in accordance with International Accounting Standards (lASs) to reflect their operations and financial positions and will have the accounts (including Special Accounts and Statements of expenditures) audited, in accordance with the IASs, by a firm of independent external auditors acceptable to IDA. Recruitment of such a firm on a one year renewable contract for each implementing agency is a condition of effectiveness. Assurances were obtained at negotiations that the audited accounts and the auditors' report, including the Management Letter, and a statement as to whether or not Bank funds had been used for their intended purpose, will be submitted to IDA within six months of the end of the fiscal year of each agency. By September 30 of each year, starting in 1999, each implementing agency will submit to their Board and their respective ministries, with a copy to IDA, their annual work programs and budgets. The report format will adequately portray activities and unit costs, and provide the basis for proper management for each implementing agency and operation of a sound accounting system. The budgetary proposals will include quarterly cash flow statements. Each participating agency will submit semi-annual reports and management accounts to their Board and/or their supervising ministry, showing budgeted and actual expenditures, statements of progress Page 82 achieved and the objectives for the forthcoming quarter. Semi-annual reports will contain summaries of to-date expenditures and use of funds by source, plus a forecast of withdrawal of IDA loan proceeds by quarter for the forthcoming year. During negotiations, based on an assessment of capabilities, the Government agreed to assign within the Direction de la Dette et des Irvestissements of the Ministry of Economics, Finances and Planning a disbursement specialist for the management of the Program, with adequate resources to function. This staff will: (i) set up a data base for the budget of the seven components and monitor the expenses against the budget; (ii) monitor and reconcile the special accounts: (iii) check the statement of expenditures for conformity of presentation and eligibility of expenditures: (iv) help the implementation agencies witil the preparation of withdrawal requests; (v) monitor the timely submission of the audit reports. The program will assist researchers to carry ouit research activities througih contractual arrangements between NARF and the research institutions where the researchers operate. Research projects' eligibility, review and selection procedures will be described in the Research subproject management manual of NARF. Projects will be funided in the form of granits payable in tranclies. NARF will carry out financial and technical audits, with the help of specialized consultanits as required in the Research subproject management manual. Page 83 Table C: Allocation of IDA Credit Proceeds Expenditure Category Amount of the Credit Percent of Expenditure to be Allocated (in US$) financed 1. Civil Works 100% of foreign expenditures and 80% of local expenditures ISRA 670.000 ITA 190,000 ANCAR 160,000 Ministry of Agriculture 840,000 Ministry of Livestock 160,000 2. Vehicles and Equipment 100% of foreign expenditures and 80% of local expenditures NARF 40,000 ISRA 1.120.000 ITA 300,000 ANCAR 1.790.000 ASPRODEB 90.000 DDI 20,000 Ministry of Agricuiltuire 1.150,000 Ministry of Livestock 650,000 3. Constiltanit's Services and Training 100% NARF 200,000 ISRA 1,070,000 ITA 310,000 ANCAR 1,120,000 ASPRODEB 1,800,000 DDI 50,000 Ministry of Agriculttire 1,000,000 Ministry of Livestock 1,700,000 4. Operating Costs NARF 410,000 95% until December 31, 2001 and 80% thereafter ANCAR 3,080,000 80% DDI 400,000 80% 5. Research Fund (NARF) 2,650,000 100% 6. NRM pilot program (ANCAR) 630,000 100% 7. Rural Services Fund (ASPRODEB) 1,300,000 100% of eligible amount amount paid to the beneficiaries as a grant 8. Refunding of Project Preparation 2,000,000 Advance 9. Unallocated 2,500,000 100% Total 27,400,000 Page 84 ANNEX VI] Senegal Agricultural Services and Producer Organizations Program Project Processing Budget and Schedule A. Project Budget (US$000) Planned Actual (At final PCD stage) 40,000 for 6 years 70,000 for 10 years B. Project Schedule Planied Actual (At final PCD stage) Time taken to prepare the project (months) First Bank mission (identification) January 15, 1996 January 15, 1996 Pre-appraisal missions July 01, 1996 July 1, 1996 Appraisal mission departure January 15, 1997 July 1, 1998 Negotiations April 1997 March 1999 Planned Date of Effectiveness January 1998 September 1999 Prepared by: Ministry of Agriculture, ITA, ISRA, CNCR Preparation assistance: PPF, French Trust Fund, IFAD, PHRD grant Bank staff who worked on the project included: Name Specialty Marie-Helene Collion Task team leader and research specialist Alain Derevier Research specialist Henri Rouille D'Orfeuil Research specialist Christian Fauliau Rural institutions specialist Bertrand de Chazal Financial management specialist Pierre Rondot Consultant, producer organizations specialist Franz Schorosch Lead specialist Tjaart Van Ven Schillhorn Livestock specialist Fran,ois Le Gall Livestock specialist Leopold Sarr -Agricultural services specialist Kishor Uprety Counsel Bertrand Abeille Procurement specialist Amadou Tidiane Toure Procurement specialist Moustapha Ndiaye Financial management specialist Wolfgang Chadab Disbursement officer Rogerio Pinto Institutional development specialist Willem Zijp Extension services specialist Consultants Hannibal Muhtar Consultant, research infrastructure specialist Maurice Barbezant Consultant, extension services Jean-Pierre Okalla Financial management specialist (consultant) Alexander Kawalec Rural institutions specialist (c:onsultant, IFAD) Page 85 ANNEX VIII Senegal Agricultural Services and Producer Organizations Program Documents in the Project File* Appraisal Mission Cornit6 de Pilotage du PSAOP. 1998. Programine Services Agrico/es el Organisalions des Producteurs (PSAOP) . Cadres cle Concertation. Populations Locales - Chercheurs - Agenits c/e Conseil Agricole el Rural. Note de synth&se eI, Ici reunion chu Comie c/le Pilotage. ISRA. 1998. Programme Services Agricoles et Organisations c/es Prodcucteurs (PSAOP)F: Composcnte Recherche/lISRA. Document c/c bise pour L'v;valuation etela mise en oeuv!re ctu PiSAOP. Ministere de I'Agriculture: Direction de I'Elevage. Programme Services Agricoles et Organisations des Producteurs (PSAOP) : Composante Pilote Gestion c/es Parcours. Ministere de I'Agriculture; ISRA. 1998. Comnpte rencht ge;ne;ral c/e I'citelier sur le fic/ns c/e recherche agricole et agro-alimnentaire. Ministere de I'Agriculture; ISRA. 1998. . Progrcmmnme Services Agricoles et Organisations c/es Producteurs (PSAOP)F: Coniposante "Appui cux Orgcnisactions c/c Prodlucieurs Ruraux " Ministere de l'Agriculture: ITA. 1998. Programnme Services Agricoles et Orgcanisations cles Pro/uhcteuirs (PSAOP). Composante Recherche : ISRA-ITA et Fonc/s Nationcil dc/ Recherche. Doclmaent d 'evaluation. Ministere de I'Agriculture. 1998. Programme Services Agricoles et Organisations c/es Producteurs (PSAOP) : Composante Restructuration dcu Ministere de 1'4griculture. Document c/e Bcase pour l 'evaluation et la mise en oeuvre diu PSAOP. Programme Services Agricoles e Organisations des Producteurs (PSAOP): Volet Elevage. Rapport pour la Mission d'Evaluation. 1998. Programnme Services Agricoles et Organiscltions cles Producteurs (PSAOP): Cadre de Concertation pour la Recherche - Developpen7ent. Page 86 Creation du Conseil Agricole et Rural (ANCA]R) ANCAR. 1998. Organisation et Realisation de la S6llection des Agents de I A'NCAR : Principairr mocdes de fonctionnement en matiere cde gestion des ressources hunjaines. Rapport t/e synthese. BCST Consultants. ANCAR. 1998. Organisation et Realisation de lIa Selection dJes Agents clc/ 'ANCAR . Principaux mnodes de fonctionnement en matiere c/c gestion dces re.ssouirces humacines. Rapport c .synthese. BCST Consultants. ANCAR. 1997. Formalisations et Constitution Juridiquze. Organisation Structurelle et Fonctionnelle. Statuts et Accord d'Etablissement. Groupe Progesis; Bureau d'Etudes ANCAR. 1997. Document de Projet dli VZole ANC.AR. Annexe VI. Projet tie reglenent inte;rieur ANCAR. 1997. Formalisation et Constitution Juridique. Organisation Structuzrellc et Fonctionnelile. Statuts et Accord d 'Etablissemnent. Groupe Progesis. ANCAR. 1997. Organisation et Realisation de la Selection des Agents tic/ IANCAR Communicationz au ComWit Technique et azu Representants des 0. P. BCST Consultanits. ANCAR. 1997. Organisation et Realisation de la Selection d/es Agents de l'ANCAR Proposition Technique & Financiere. BCST Consultants Association Nationale pour le Developpement Agricole (ANDA). 1996. Mtission dAppui Aupres il/ PNVA. Theme: Evolution du Dispositif Concernant la Vulgarisation BCST, Consultants. 1996. Preselection du Personnel de l 'ANCAR: Pre;sentat,ion Methodologique Cabinet International d'Etude et de Conseil pour le Developpement (CIECC)D). 1997. Propositions Techniques et Evaluation Financiere pour l'Elaboration des Instruments Juridiques c/- l'Agence Nationale de Conseil Agricole et Rural (ANCAR) : Statuts. Reglement Interieur. Manulel c/e Procedures. Camara, Amadou Moustapha, Adama Faye, Antoinette M. L. Cabral Sagna, 1)esire Yande Sarr et Marie Kane Seck. Etude de /'Articulation entre l'offre et la demande en conseil agricole et rural Synthese (document provisoire). Ministere de I'Agriculture. Mission pour la creation de I'ANCAR. Camara, Amadou Moustapha, Adama Faye, Antoinette M. L. Cabral Sagna, [)esire Yande Sarr et Marie Kane Seck. 1997. Demande et offre en Conseil Rural et Agricole : Situations Regionales. Ministere de l'Agriculture. Mission pour la creation de I'ANCAR. Centre Interprofessionnel pour la Formation aux metiers de I'Agriculture (CIFA). 1995. Le contexte economique de la privatisation et de la liberalisation des filieres riz et tomate: Programme d'ouverture. Formation des responsables d'organisations paysannes. Seminaire No. 1. Compte rendu Page 87 Diouf, Aly. 1997. Note d'Orientation pour Ia Creation du Conseil Agricole et Rural (ANCAR). Diouf, Aly. 1997. Etude Contplementaire pour la creation de I 'Agence Nationale di Conseil Agricole et Rural (ANCAR). Senegal Prestations "SEN-PREST' Document de Projet du Volet ANCAR: Annexe No. . Projet (le Statuts Ministere de l'Agriculture; PNVA. 1995. Nouveiiui Catlre Instilutionnel et Ope;rationnel de la Vulgarisation Agricole Ministere de I'Agriculture; PNVA. 1995. Proposition dthn Nouveau Cadre Institfutionnel et Orgarrisationnel pour le Conseil Agricole et Ruiral Ministere de I'Agriculture: PNVA. 1996. Etal ei'Execultion cii Plan d'Actions pour les Besoins te Formulation du Volet Conseil Agricole el Rural ihu PSAOP Ministere de l'Agriculture. 1997. C'onseil Interminiivtc;riel suir le Conseil Agricole et Rural Mission ANCAR - CIRAD. 1998. Proposition pour la nisc en place de l 'Agence Nationale de Conseil Agricole et Rural: Rapport provisoire. Mission pour Ia creation de l'ANCAR. 1997. Etude de I 'Offre de Formation aui Se;ne;gal et 4 I 'Extdrieur pour le Personnel de l 'ANCAR. Programme National de Vulgarisation Agricole (PNVA). ANCAR. 1996. Mission d'Appui Organisationnel pour la Definition de la Nouvelle Structure AAgricole . Rapport. BCST Consultanits. Programme National de Vulgarisation Agricole (PNVA). Proposition d'Organisation el de Fonctionnement du Conseil Agricole et Rurale. Version remnaniie Projet de D&cret Fixant les Regles d'Organisation et de Fonclionnentent de l 'Agence Nationale pour le Conseil Agricole et Rural (ANCAR). Page 88 Documents in the Project File Institut de Technologie Alimentaire (ITA) Projet de Decret Fixant les Regles d'Organisation et cl/ Fonctionnenent cde l'Institrut cde Technologie Alimentaire (ITA). Ministere de la Recherche Scientifique et de la Techliologie. ITA. Projet de Dcrel .c Portant Reglement d 'Etablissement de l lTA. Ministere de la Recherche Scientifique et de la Techiiologie. ITA. 1998. Plan, Strategique c/c Deve1oppenient 1998 - 2003. Page 89 Documents in the Project File Institut Senegalais de Recherches Agricoles (ISRA) ACG AFRIQUE and CECOMAR. 1998. Expertise c/lu Ncwvire c/e ReCherche 'Louis Sauger". Ministere de l'Agriculture. ADIRA. 1998. Etuce le I 'Unitic; clc Procduiction cle SemLences t/ 1 'ItS,AS RcRpport iLMfinitif: Cornite Regional Fleuve. 1996. Plan7 Strategique c/e ICi ReclherchLe .Z o07e Fleuve &in7gal. Ministere de l'Agriculture: ISRA. Direction Scientifique. Comite Regional du Sud Bassin Arachidier. Plcu7 Sirctegiqute c/c la Recherche Algricole Zone Sucl Bassin Arachidier. Ministere de l'AgricultLire: ISRA. Comit6 Regional de Planification Strat6gique Basse et Moyenine Casamanice. 1996. Un it c Rfgionalce (le Recherches Bcisse et Moyenne Cascmance. Centre de Rechercihe Agricole de Djibelor. Gueye, A. 1996. Projet c/ cdcret poricitnt staiitt rgleginentciire particulier c/hl personnel cle /'Inistil ut ,Sencegalcais cle Recherches Agricoles.. Gueye, Amadou. 1996. Projet c/e cMckret polrtant sticitt reglenientciire palrticuiier cdu personniiel cIC / 'ISRA. Badiane, A., M. Diop, F. Gueye, M. Gueye, M. Kebe, J-L Manga, F. Ndao Ba, S. Niang. 1996. P/ca7 cle Gestion et c/e Developpement des Infrastructures, Gros Equipenent.s et Lc,borctoires. Groupe de Prospective et de Synthese. Danthu, P., 0. Diagne, 1. Diallo, M. Diatta, M. Dione, A. Gaye, B. Ndour, P. N. Sall, et A. Tamba. 1996. Groupe Prospective et Synthese. Commission ThNcmatique . Productions Forestieres. Ministere de l'Agriculture. ISRA. Groupe de Prospective et de Synthese. Plan de developpenient clit seceiur seinelnc es. Document 2. Groupe de Prospective et de Synthese. 1996. Plan Strategique. Plan c/e Gestion et /e D';veloppelnent des Infrastructures, Gros Equipements et Laboratoires Groupe de Prospective et de Synthese. 1996. Reflexion prospective. Projel cd entreprise pour I'ISRA. Rapport de la conimission "Production de vaccins". Groupe de Prospective et de Synthese. Plan strategique pour le developpement du secteur semences. Version 2. Groupe de Prospective et de Synthese. 1996. Reflexion prospective. Projet d 'entreprise pour l'ISRA Observations des membres du Comite de lecture sur les rapports des commissions du GPS. Page 90 Groupe de Prospective et de Synthese. 1996. Reflexion prospective. Projet d'entreprise pour I 'ISRA: Rapport de la commission "Centre Nord Bassin Arachidier " Groupe de Prospective et de Synthese. 1996. Reflexion prospective. Projet d 'entreprise pour I 'ISRA: Rapport de la commission "Zone Maritirme" Groupe de Prospective et de Synthese. 1996. Reflexion prospective. Projet d 'entreprise pour I 'ISRA: Rapport de la commission "Zone Fleuve" Groupe de Prospective et de Synthese. 1996. R6flexion prospective. Projet d 'enlreprise por I 'ISRA. Rapport de la commission Zone des Niaves. Groupe de Prospective et de Synthese. 1996. Reflexion prospective. Projet d 'entreprise pour I 'ISRA Rapport de la commission Zone Sud du Bassin Arachidier (URR3). Groupe de Prospective et de Synthese. 1996. Reflexion prospective. Projet d'entreprise poiur l'ISR. Rapport de la commission "Basse et Moyenne Casamance " Groupe de Prospective et de Synthese. 1996. Reflexion prospective. Projet d 'entreprise pour I 'ISRA Rapport de la comrission "Haute Casamance et Snigal Oriental ". Groupe de Prospective et de Synthese. 1996. R&flexion prospective. Projet d 'entreprise potur l 'ISRA Rapport de la commission "Politique agricole et socio-economie'. Groupe de Prospective et de Synthese. 1996. Reflexion prospective. Projet d'entreprise poutr l 'ISRA Rapport de la commission "Productions vegetales " Groupe de Prospective et de Synthese. 1996. Reflexion prospective. Projet d 'entreprise pour I 'ISRA Rapport de la commission "Productions Halieutiques et Ocianographie ISRA. 1996. Manuel Provisoire de Procedures de I 'ISRA. ISRA. Centre Nord Bassin Arachidier (CNBA). 1996. Plan Strategique R6gional : Zone Centre Nord Bassin Arachidier. ISRA. 1996. Plan Strategique de la Recherche Agricole: Zone des Niayes. ISRA. 1996. Plan strategique pour l 'ISRA : Rapport de la commission "Politique agricole et socio- dconomie ". Groupe Prospective et Synthese. ISRA. URA - Productions Vegetales. 1996. Plan Strategique de la Recherche Agricole et Agroalimentaire. ISRA. 1996. Projet d'entreprise pour l'ISRA : Rapport de la commission "Informatique ". Groupe Prospective et Synthese: Reflexion prospective. ISRA. 1996. Projet d 'entreprise pour l 'ISRA : Rapport de la commission "Information Scientifique et Technique ". Prospective et Synthese : Reflexion prospective. ISRA. 1996. Plan Strategique de I 'ISRA 1997-2003: Conclusions de la Commission IST (Draft 1) Page 91 ISRA. 1996. Recherches en Matiere de Sanke et Productions Anjinales. Projet d 'Entreprise: Commission Sante et Productions Animnales. Le Centre de Suivi Ecologique (CSE). 1996. Evaluation Environnementale du Plan Stratigiquie de l'ISRA (Version Provisoire). Ministere de I'Agriculture: ISRA. Le Centre de Suivi Ecologique (CSE). 1996. Evaluation Environnemnentale dui Plan7, IStrtegique c/c l'ISRA (Version Provisoire) Annexes. Ministere de l'Agriculture: ISRA. Ministere de l'Agriculture; Ministere de la Recherche ScientifiqLue et de la Technologie. 1996.Forumn de la Recherche Agricole et Agro-Alimnentaire . Pour une.fondation c/f la1 recherc he en reponse aux clc;fis du secteur agricole et agro-alitnentaire.. Ministere de l'Agriculture; Institut Senegalais de Rechercihes Agricoles. 1996. ProcL;clures clc Gestion Scientifiqute (Giiide des Procec/ures). Version provisoire. Ministere de l'Agriculture: ISRA. 1996. Plan Stratugique cle Ia Recherche Agricole 1996-2006 pour ka Zone Sylvo-Pastorale. Ministere de l'Agriculture. ISRA. 1996. Plan Strategique Zone Sylvo-Pastorale: Annexes cles Tableaux. Ministere de I'Agriculture. ISRA. 1996. Plan Strake;gique Zone Sylvo-Pastorale . Annexes cles Cartes et Graphiqcues Ministere de I'Agriculture. ISRA. 1996. Plan Strate;giquLe c/e I/C Recherche sur les Proc/uictions Animales. Unite de Rechercihes d'Appui sur les Productions Animliales. Note sur les Possibilites de Collaboration ITA/ISRA. Ndione, Cheikh Mbache, Mamadou Dione, Amadou Diop, Ibrahima Sall et Mamnadou Nguer. 1996. Projet d 'entreprise pour 'ISRA : Rapport ce ci commission 'Zone Sylvo-Pastorale " Organisation des Nations Unies pour l'Alimentation et l'Agriculture (FAO), Service du Developpement de la Recherche et de la Technologie (SDRR). 1977. Le syvslc'Ine national de recherche agricole et agro-alimentaire di Senecgal . Mocalites c/e fincincelient ci long terme de la recherche agricole e agro-alimentaire. Ministere de I'Agrictiltuire, Minist6re de la Recherche Scientifique et de la Technologie Pichot, Jean-Pascal. 1997. Reflexion s.ur les Parienaricals c/ l 'ISRA . Analyse des contrats de recherche du projet NRBAR et du portefeuille c/e cotnventions tlc l 'ISRA. Thiongane, P.L.. 1996 Des modalites cde crcation d'un systeme national de recherches agricoles et agro- alimentaires. Ministere de l'Agriculture Thiongane, P.l. 1996 Forum de la Recherche Agricole el Agro-Alimentaire : Collaboration et partenariat de l'Institut Senegalais de Recherches Agricoles (ISRA). Ministere de l'Agriculture. Ministere de la Recherche Scientifique et de la Technologie Page 92 Unite de Recherches d'Appui - Foret. 1996. Plan StratMgique Thematique . Comn,lission Productions Forestieres. Ministere de I'Agriculture: ISRA. Unite de Recherches Productions Halieutiques et Oceanographie. 1996. Plan Strategiqule The::matique Productions Halieutiques et Oceanographie. Ministere de l'Agriculture: ISRA. Page 93 Documents in the Project File Component "Support to Producer Organizations" (OP) Appui aux Organisations de Producteurs (OP) Conseil National de Concertationl et de Cooperation des Ruraux (CNCR). 1997. Prograromre ae Re,?forcen0e11t Institutionnel des Organisations cle Producteurs. Dia, Ibrahima, Samba Diop et Abdrahinane Diallo. 1997. Rapmport Prov isoire. Etudtle siwr les Organisationts Payscmnes et les M&anisnies cle Concerlation lc/ais le Catire /le ha Rel/ance ci/ Secteur Agricole. Ministere de l'Agriculture. Groupe de Reflexion Strategique. Fondation Rural de l'Afrique de l'Ouest (FRAO) et West Africa Rural Foundatioll (WARF). 1996. Appreciation des Prograiniies du CNCR ci inscrire crir Progranrnre dles Services Agrico/es et 'Assistacnce aux Organisations de Prochucteurs r'PSAOP). llboudo, Jean-Pierre. 1998. Rapport de Mission au Senegal: 16 au 28 janvier 1997. Mfission (le fincalisation c/tu progranmnme de fornmationi et c/e coniunication poiar le rienforcenrent cles capacileLs dles orgcnisations des prodlucleuirs . (Conseil naliociil tce conce'rtation cie cooprl;raion cles rm'acux au S.c;ncgal. Seck, Ibrahima. 1996. Atelier de Val/ciation chU Programmnre tle Frn'rction/Conmunication. Conseil Nationial de Concertation et de Cooperation des Ruraux (CNCR). Page 94 ANNEX IX LETTER OF INSTITUTIONAL DEVELOPMENT POLICY INSTITUTIONAL DEVELOPMENT OF THE AGRICULTURE SECTOR MARCH 1999 Page 95 TABLE OF CONTENTS 1. THE SETTING II. CURRENT SITUATION OF RURAL INSTITUTIONS 2.1 Public Institutions Involved in Rural Life 2.1.1 Central and Deconcentrated Administration 2.1.2 Local Authorities 2.2 Nongovernmental Organizations 2.3 Producer Organizations III. THE TEN-YEAR INSTITUTIONAL OUTLOOK ANNEXES i. Principles Governing Agricultural Services and Producer Organizations Reforms and Activities 2. Reforms 2.1.1 Restructuring the Ministries of Agriculture and Livestock 2.1.2 Creating a National Extension Services Agency 2.1.3 Reorganizing Agricultural and Agro-Processing Research 3. Results Expected from the First Phase of the Program Page 96 1. THE SETTING The Incidence of Poverty Poverty is much more prevalent in the rural areas than in cities. While 17% of households in urban areas are classified as poor, this percentage rises to 45% in the countryside. The latter figure also masks some very marked discrepancies among regions, with the poverty ratio ranging from 38% in Casamance to 53% in Kolda. Comparisons among administrative departments show an even wider variations in the incidence of poverty, the extremes being Kedougou and Mbacke. Human development indicators in rural areas - nutrition, andl illiteracy and mortality rates - provide clear evidence of poverty. Access to essential social services is very limited Nearly 30% of Senegal's population falls short of the minimum recommended daily intake of 1,400 kcal per person. In 1997, the rate of illiteracy among women stood at 77%, compared with the national average of 52.8%; the rate of maternal mortality was 510 per 10,000, and the infant-and-child mortality rate was 154 per 1,000. Nearly 40% of the rural population lives too far (i.e. more than 5 km) from a primary health center, and only 26% have access to safe drinking water. Basic economic infrastructure is inadequate and in poor condition Despite the considerable resources deployed, the electrification rate is only 5% in rural areas, compared with 50% in the cities. In contrast to the country's network of paved highways, totaling some 14,200 km, the classified network of feeder roads and earth roads serving rural areas is inadequate (about 5000 km), and is not maintained. There is no complete picture of the unclassified network, consisting primarily of earth roads and feeder roads, because it was built without any overall planning by a number of different agencies (i.e. the State, local authorities, agricultural development projects, and NGOs), and there is no proper institutional framework for managing it. In effect, there has been no national strategy or policy for rural transportation, as exists for other sectors. Agricultural output in comparison with needs The degree of self-sufficiency in domestic food production is a cause of concern. In the case of cereals, output in the 1990-95 period averaged 1.17 million tons of consumable products per year, meeting only half the requirements; the shortfall had to be made up through imports (i.e. 350,000 tons of rice, and 100,000 tons of wheat). The domestic output of cereals has been declining since 1996. A more detailed breakdown of these figures shows that in most of the 20 departments the last ten harvests have fallen short of gross cereal requirements, estimated at 185 kg per person per year. Output in the remainder of the country is inadequate, leaving the populace exposed to food shortages when transfers fail to materialize. Page 97 As regards animal products, meat consumption is low, at about 11.5 kg per person per year, annual milk consumption stands at 21 liters per person, and egg consumption is 18 units per person. To a very large degree, fish products - obtained through artisanal fishing - help offset the animal protein deficit. Fish consumption stands at about 25 kg per person per year. This worrisome food situation reflects the limited and erratic growth in the agriculture sector as a whole (crops and livestock), even following devaluation. The primary sector (crops, livestock, fishing, and forestry) has been growing at an average annual rate of 1.3% in real terms, which is slower than the 2.7% annual rate of population growth over the 1990-95 period. Constraints facing Senegal's agriciulture Agriculture employs from 65% to 70% of Senegal's active popillation, which is distributed over 480,000 farms; however, its productivity is very low, and it contributes only about 20% of GDP. In the wake of structural adjustment reforms and the devaluation of the CFAF. agricultural performance has recovered slightly, but continues to face a number of constraints: - Natural constraints, arising from: (i) limited and variable rainfall: in the past 20 years. Senegal has suffered 11 droughts; (ii) saturation and degradation of the land: nearly 50% of on farm land is degraded. * Structural constraints: the small average size of farm lots. Nationwide, the average area per farmer that is planted with groundnuts and cereals is respectively 0.27 ha and 0.37 ha. In irrigated areas, the average size of individual plots is between 0.25 ha and 1.00 ha. The number of persons per farm ranges from 6 to 13, with a national average of 10, while the number of persons actually engaged in farm work is between 5 and 10, with a national average of 8. . Economic constraints: Farmers' real income has declined, leading to a considerable reduction in the use of agricultural inputs. * Social constraints: The average farming household consists of about 11.2 persons. 'I'he working-age population has a 33.3% shortfall in the age range most suitable for farm work (25-49 years). Farmers do not have the education standards necessary for taking full advantage of rural extension services, and 91.3% of farmers have not even received a primary school education. * Constraints resulting from inadequate agricultural policies: (i) Access to credit is difficult; (ii) there is a shortage of high-quality seed, especially for groundnut production; (iii) farm equipment is obsolete; (iv) the law governing public ownership of land is inadequate and too rigid, and stands in the way of secure investment and sustainable farm Page 98 management; (v) there is a lack of sufficiently large financial resources, especially in the livestock subsector. * Technical constraints: The technologies and know-how that are transferred are often inappropriate, and unaffordable out of the proceeds from farming. Despite these constraints, the agricultural sector enjoys a number of advantages. Resource and production advantages Most of Senegal is endowed with considerable water resources (surface water. groundwater, and Maastrichtian formations) that can be used for irrigation purposes. The Senegal River Valley, in particular, is of great importance, as are the basins of the Gambia and Casamance Rivers. The southern part of the "Groundnut Basin" has significant potential for growing cereals as well as cash crops like groundnuts. Senegal's prime location on the Atlantic Coast provides it with a temperate climate for five months of the year, and offers scope for growing off-season horticultural products for the European market. The livestock sector enjoys considerable advantages because of its high growth rate (3% for cattle and 6% for poultry). Moreover, there are prospects for further growth and employment in the agricultural sector, because of its upstream and downstream linkages. Productivity in the rainfed sector, which accounts for 95% of the total farming population, could be increased at a modest cost by applying technologies that make little use of currently imported inputs. Advantages derivedfrom policy reforms In an effort to improve the overall economic environment and revive various sectors, particularly agriculture, Senegal has undertaken a series of reforms that have set the country on the path to economic growth in the wake of the CFAF devaluation. From standing at 2% in 1994, annual GDP growth has averaged 5% percent over the last three years. Inflation, which reached 32% at the time of the 1994 devaluation, was down to 3% in 1997. In agriculture, the reforms have led to government divestiture and to the privatization and restructuring of the public enterprises responsible for rural and agricultural development, the transfer to farmers of the responsibility for functions formerly carried out by public agencies, the removal of a number of subsidies, and the liberalization of prices, markets, and trade. The Government has been reducing - albeit slowly - its considerable role in the sector, as well as that of the private monopolies, whose presence has had the effect of distorting prices, the distribution of inputs, processing, the marketing of farm products, and imports of inputs and food products. Efforts to improve the sector are continuing, especially with regard to exports, which still face a number of regulatory obstacles that restrict their ability to penetrate increasingly competitive foreign markets. Page 99 Consequently, the Government's reforms for eliminating distortions and improving the macroeconomic and sectoral framework have helped create a favorable environment for investment in agriculture. They led to the liberalization of rice imports in October 1995. the privatization of rice farms that had previously been operated by SAED (Socie ( 'AmLnnagement et d'Exploitation des Terres du Delia dui Fleuve: the Senegal River Valley Development Agency), and the dissolution in Febniary 1996 of CPSP (Caisse de PNrq&uation et de Stabilisation des Prix: the Price Stabilization Agency). SONACOS (Socic4j Nationale de Commercialisation des Oleagineux: the Groundnut Oil Company) is in the process of being privatized, and the oil-seed price stabilization fiind was reorganized in 1995. SODEFITEX (Societe pour le Developpement des Fibires Textiles: the Cotton Development Company) is being reorganized in order to separate its public-service activities from its commercial (i.e. processing) interests. Over the medium term, it is planned to open up SODEFITEX to investment from the private sector and producer organizations. The above reforms, applied to the agricultural sector as a whole, have helped bring about a financial recovery in the various subsectors, and remove the major market distortions resulting from pricing and nontariff measures. Moreover, farmers' organizations and private-sector operators are now playing an effective part in managing the various subsectors, and mechanisms have been established to facilitate consultation within the various subsectors (i.e. groundnuts, horticulture, rice, livestock, cotton, commercial tomato-growing, meat production, and poultry). The subsectors have raised their prices by indexing them to international markets, in an effort to boost production. Overall, this pricing policy has produced increases in real prices for most crops, and in particular for domestic cereals (i.e. corn, millet, and sorghum). Some subsectors have become slightly more competitive since the monetary adjustments in January 1994 (the change in the parity of the CFAF). In particular, horticulture and livestock have shown dynamic growth, averaging respectively 3.2% and 4%; however, the output of industrial crops (groundnuts and cotton) has only slightly increased, as a result of more intensified cultivation. Despite the structural constraints affecting irrigated rice growing in the Senegal River basin (which are now being removed as a result of agreements with domestic and international partners), this activity has made an encouraging showing over the last three years, with output growth averaging nearly 30%. Finally, new crops such as sesame and the outlook for flower growing and poultry raising hold out new prospects for diversifying agricultural output. The Government is now focusing its efforts on creating a favorable climate for the growth of the private sector, and on providing access to basic social services (health, education, water, etc.). Significant progress has been made in this regard. Producer organizations are seen as partners of the Government, and the decentralization process is gradually empowering local elected officials and rural communities, so that they can play an active role in managing their resources and their own development. Page 100 II. CURRENT SITUATION OF RURAL INSTITUTIONS 2.1 Public Institutions Involved in Rural Life These are of two kinds: the Central Government and its local '"deconcentrated" representatives, and decentralized local authorities. 2.1.1 Central and Deconcentrated Administration Several ministries have responsibilities in rural affairs; i.e. the Ministries of the Interior, Environment and Nature Protection, Water Resources, Livestock, Fisheries, Family Support, Social Action, and National Solidarity, and Agriculture. They carry out their activities through their respective service organizations in the country's 1 0 regions and 30 departments. The departmental and local services of these ministries operate in a compartmentalized fashion. It is only at the level of the coordination committees organized by the authorities in each region that the various services are able to pool information, examine each other's data, and (occasionally) coordinate their logistical resources. At arrondissement leiel, there are the veterinary posts of the Ministry of Livestock, and - most importantly - the CERPs (centres d'expansion *urale polyvalents: multipurpose rural development centers). These are operated by the Ministry of the Interior, and are supposed to consist of eight specialists in different fields; however, they are very short of human, physical, and financial resources, despite the important role they once played among rural communities. Their initial tasks of providing planning, outreach, and support have been greatly expanded to include what are essentially administrative functions. In fact, more use has been made of CERP staff by the local administration than by the line ministries. The deconcentrated national administration (governors, prefects, and subprefects) represents the State in the 10 regions, 30 departments, and 98 arrondissements, and operates under appointed officials. Administrative and Technical Services of the Ministry of Agriculture and thie Ministry of Livestock Until July 1998, the Ministry of Agriculture was responsible for services relating to both crop production and livestock. The latter area has now been taken over by the Ministry of Livestock, which was established as a result of the most recent govemment reorganization (in August 1998). At national level, the agriculture and livestock services include the central technical directorates (for agriculture, plant protection, rural works, and horticulture) and the livestock directorate. At regional and departmental level, the agriculture and livestock services are offered in the 10 regions and 30 departments. At arrondissement level, the ministries are represented either by the CERPs or by their own offices. Page 101 The regional and departmental services have similar functions, combined with supervision and coordination. Their work generally has a sectoral focus, and is guided mainly by national directives. They have significant human resources, but their lack of sufficient operating expenditures prevents them from providing adequate support for development. In addition to their operational difficulties, the deconcentrated State services are unable to carry out their missions properly, mainly because of their organizational weaknesses (i.e. decision making is centralized, and competencies and responsibilities are compartmentalized). Regional Corporations and Projects During the 1980s, bilateral and multilateral cooperation institutions tended to work systematically with SRDRs (regional rural development agencies), or with project-based agencies, rather than directly with government agencies. There are currently three SRDRs (SAED, SODEFITEX and SODAGRI), now that SODESP and SODEVA are in the process of being wound up. There are about 20 projects now under implementation in the country as a whole. It should be noted that, despite these activities relating to SRDRs and projects, the State technical and administrative services have nonetheless continued to operate, as far as their resources allowed. As a result, the current system of support consists of a great many uncoordinated forms of government and parapublic activity. Because the local SRDRs are mainly concerned with their own programs and wield significantly greater resources, they have done little to establish links with the deconcentrated services or the CERPs. Farming and rural extension services Senegal has considerable experience in providing extension services based on policies and strategies that have been adjusted to meet changes over time. This experience has been gained through specific projects, such as the SATEC/SODEVA project in the "Groundnut Basin", independent projects, the SRDRs, the national directorates (agriculture, livestock, water resources and forests), NGOs, and farmers' organizations. A diagnostic study of these programs revealed their limitations, and laid the groundwork for formulating the PAGRI (the Pilot Program for Improving Farmers' Support Services), and subsequently the PNVA (the National Agricultural Extension Program of 1990). The following are the main lessons learned from the implementation of PVNA between 1990 and 1995: The procedure of obtaining services through agreements with the agencies concerned did not work, because the personnel involved was not under the supervision of the Program Management Unit. Page 102 * The thematic approach adopted has failed to take account of producers' concerns arising from local production systems. * The Program's methods and the human resources assigned to it have been inadequate to meet the overall objective of 60% coverage. * The absence of any real involvement of producer organizations in the contact groups has made it impossible to establish any effective partnership with them. Producers have never had a truly autonomous forum in which to give any free and concerted expression to their technology needs. What forums have been available to them have been the result of external initiatives (cooperatives and village committees, associations, and recently the PNVA contact groups). The result is that needs have tended to be defined by government agencies' staff. rather than producers. . The officially proposed technology packages have not always taken account producers' priorities. They have been designed rather to deal with the technical constraints affecting the presumed "best use" of land in each area. The content of activities was determined, therefore, not by the expressed wishes of producers, but rather by what was available from the system itself., which selected those initiatives it deemed most likely to increase output, and tried to get producers to accept them. Agricultifral and Agro-Processing Research The ISRA (Institzat SenJgalaise de Recherches Agricoles: the Senegal Agricultural Research Institute) and ITA (Instit ut de Technologie Alimentaire: the Food Technology Institute) were established essentially to plan and carry out research in all areas of agricultural production (farning. livestock, forestry, and fisheries) and agro-processing activities, in response to the public and private sectors and farmers' organizations. However, they lack the organizational and operating stability necessary for such functions. Their institutional structure is inappropriate and they are heavily dependent on external financing (70%), two factors that have had a serious impact on the research capacities of the two institutes. A further weakness is the way needs are identified ancd research activities are planned. Despite these shortcomings, they have produced some undeniable results; but a critical assessment shows that few of the research findings have been disseminated. This failure has called into question the value of these research results and the mechanisms, methods, and conditions for their transfer. Many of the innovations proposed on the basis of this research have been woefully out of line with socioeconomic realities and the concrete problems facing farmers and potential users. Moreover, coordination with development agencies and producer organizations is sporadic and informal, apart from certain built-in or contractual links or the program committees Page 103 that have recently been put in place. This has meant poor communication with development partners, and cooperative efforts that have often been ill-defined and ineffective. Agricultural policy-making, as well as the research and development entities, have taken little or no account of how farms actually operate (objectives, constraints, strategic advantages, factors leading to strategic choices, and environmental impacts). This has led to inconsistent and inappropriate choices of research topics, farm extension efforts, and development initiatives. Finally, the institutional performance of ISRA. the major agricultural research body, has been far from ideal. Its financial and accounting management suffers from numerous shortcomings. Its infrastructure network is too large for the resources it has available for maintaining and making effective use of the facilities. 2.1.2 Local Authorities The Decenitralization Law of March 22, 1996 established local authorities [collectivii's locaIles] possessing legal personality. The new legislation is still in the "breaking in" process. Since January 1997. decentralized local authorities have been set up at two levels in rural areas: Rural Communities [Comnzunauc;s Rurales]]. numbering some 320, and representing the grassroots level, and Regions (10 regions). These have both legal personality and financial autonomy, and are self-managing, through their elected councils. The decentralization legislation. while retaining the authority of the State, transferred to these local governments a number of powers that were previously vested in the central authorities. Nine functions that previously belonged to the deconcentrated administration were thus transferred by law to the local level. These relate primarily to the environment and natural resource management, land use and planning. The powers of the Ministry of Agriculture and the Ministry of Livestock were not transferred, however, and remain with the Central and Deconcentrated Administration. Rural Communities The rural community has been a feature of the institutional landscape in Senegal since 1972, and it plays a key role in the development of village lands. The rural community is an entity comprising several villages in the same area. It has legal personality and financial autonomy, and exercises the following powers: (i) In the area of environment and natural resource management, the rural community now has the right to manage forests within its territory, to create protected wooded areas, and to prepare and implement local environmental action plans and to enforce land ownership regulations. (ii) In terms of planning, the rural community has the power to prepare and carry out local development plans. Page 104 (iii) As regards land use, it has the right to give advice on any regional land-use scheme before it is approved by the State. Regions The regions have the same geographical borders as the regional administrative units. Each is represented by a regional council, the members of which (known as Regional Councilors) are elected. The council operates as the region's deliberative body. and elects a "Bureau" from among its members. The President of the regional council is the region's executive officer, and is responsible for managing areas under its control. The region's operating revenues are-expected to come from State contributions through the annual grants allocation, plus local revenues from land, regional output. and its own assets. The regional council is responsible for development planning, with the support of a Rural Development Agency (ARD). It initiates its own projects, and may offer advisory opinions on projects initiated by the State. It conducts land-use planning and carries out regional development plans. (i) In the area of environment and natural resource management, the region is responsible for managing. protecting and maintaining forests and protected areas, for protecting nature, for managing inland waters, and for preparing, implementing, and monitoring regional environmenital action plans or projects. (ii) As regards planning, the region is empowered to prepare and carry out PRDIs (regional plans for integrated development). (iii) With respect to land-use planning, it prepares its own regional plan (SRAT = Schema Rigional d 'Atncnagemenl du Territoire). 2.2 Non-governmental Organizations There are many such organizations in Senegal, but they are particularly numerous in the North (the St. Louis Region) and the South (the Ziguinchor Region). They are active in many fields, although most of them operate in areas that fall under the Ministry of Family Support, Social Action, and National Solidarity. They focus on providing tec]hnical and institutional support at the grassroots level. They have established partnerships with the POs [producer organizations], using participatory methods and tools for diagnosis and programming, and for providing farmning and rural development advice. Along with the Government's extension services, they are the main bodies active in providing advice and support to farmers. Although NGOs have established bodies to coordinate their efforts, there are shortcomings evident in both their activities and their approach. Their areas of intervention are generally very small, which limits the impact of their work. They suffer a scarcity of human resources, and must frequently turn to the Government's technical services for support. Page 105 2.3 Farmers' Organizations The first type of farmers' organization set up by the government serv-ices were the cooperatives. Some 338 of these have been established in various fields of activity: crop farming, livestock, horticulture, and consumer products. Producers' groups at the village level have been in existence since the early 1970s. Women's organizations appeared in the 1980s and now number 4,000. They have their own federation, based on the existing territorial divisions, but they face a number of constraints resulting from the social structure and their level of education, which is generally lower than that found in the men's organizations. Since the 1970s, other producer organizations have sprung up (based on groups, associations, unions, and informal agreements), alongside those sponsored by the State or the NGOs. The groupements d 'interet economiquie (GlEs) that were set up in 1984 following the adoption of Law 84-07 have a legal status that allows them to borrow money and to undertake productive activities. Because of the advantages enjoyed by this type of organization, the GIEs have flourished and have become common in subsectors such as livestock, horticulture, fishing, and forestry. Many of them have joined together to form national networks. Bodies known as confites interprofessionnel.s have been set up to coordinate and manage certain subsectors (i.e. groundnuts, cotton, tomatoes, rice, livestock, and poultry). They provide the channels through wlhich management of these subsectors has been transferred from the State to the operators themselves (i.e. to the farmers' organizations and the private sector). Their members are the professionals specializing in the various activities within each subsector, who serve as interlocutors for the State and the donors in respect of all political and economic decisions affecting their respective subsectors. Farmers' organizations have set up broader groups to reinforce their individual efforts. Thus, national unions or federations have been created, based on the existing territorial divisions. The unions are organized at rural community level, as well as at arrondissement, departmental, and regional level. In 1993, nine of these PO federations set up CNCR (the National Rural People Council for Consultation and Cooperation), which is now the prime interlocutor of the government on rural development. CNCR is concentrating its efforts on enhancing the institutional capacities of the POs to provide useful services to their members. From a legal and practical viewpoint, each member of CNCR is an independent PO unit. CNCR seeks to develop synergy among the federations, promoting consultation and cooperation. Many farmers' organizations suffer from inadequate internal governance and an inadequate ability on the part of their human resources to identify their needs, to establish mechanisms for consultation, and to play an effective role in the dialogue with the State, the NGOs, and the private sector. CNCR is one of the most representative organization, and has tackled the challenge of enhancing its members' capacities and the internal governance of the federations. Page 106 III. THE TEN-YEAR INSTITUTIONAL OUTLOOK Agricultural statistics for Senegal reveal several features olf the country's production system: (i) most farms are of the family type: and (ii) they are small. are located on village lands, and tend to be intertwined with one another. The results of agricultural policies to date, and the effects of the existing constraints, suggest that the dominant pattern of agriculture by the year 2010 is likely to be that of the mixed farm, run on a family basis. although the number of farmers as a proportion of the active population will decline. These family operations will be mixed farms not only in the sense that they will include crops and livestock production and exploiting forest resources, but also because they will develop new activities and new occupations related to the processing of thei-r output, which will enable them to respond better to growing consumer demand, while generating increased value added. The irreversible modernization of production systems - brought about by the fundamental changes resulting from the new rural development policies under the PSAOP (Programmt7e Services Agricoles el Organisations cdes Produlcteurs: the Program of Agricultural Services and Producer Organizations) - should help reduce production costs and boost output, in ways that will: * ensure the economic viability of farming and help increase market share domestically and internationally: . make the farming system more sustainable by encouraging the preservation of natural resotirces. In addition to family farms of this type, commercial agriculture will also be developed, and will work in synergy with smallholder farming. In the end, however, it is the producers themselves that will continue to be at the core of agricultural development. They will make their own choices about both their activities and production objectives. The agricultural development strategy adopted by the State in cooperation with its partners and contained in the Strategic Planning Document, together with the institutional reforms accompanying it, must be such as to allow farmers, as individuals or organizations, to flourish within an improved institutional and policy framework that will: (a) improve market access (through information systems, infrastructure, storage, transportation, etc.); (b) provide a regulatory and legislative framework that will ensure transparency and competitiveness as well as security for investments; (c) offer agricultural extension and research services capable of meeting producers' demands; Page 107 (d) strengthen their technical and commercial capacities; (e) provide a framework for dialogue and negotiation so that partnerships can be established among all stakeholders; (f) ensure greater transparency in the bodies that represent them. With implementation of this agricultural strategy and its accompanying institutional framework, it should be possible over the next ten years to ensure that: * Local, regional and national producer organizations are efficiently and transparently managed and are able to: (i) provide or arrange services for their members to help them increase their productivity and output: (ii) give effective expression - in technical terms - to their views and opinions with respect to the generation and transfer of technologies; (iii) assume responsibility for financing research and extension services, by drawing on the funds raised through the current levies on agrictltural products, among other sources. * Interprofessional associations play a proper role in upgrading and managing the various agricultural subsectors. e Agricultural extension services will meet the needs of producers and be accountable to them. Decisions on such extension programs should be taken by the producer organizations themselves, which should cover a substantial portion of the cost of such services. * At local level, research and development activities and farm extension services will be identified and planned jointly with producer organizations and will be formalized through contracts between the organizations, on one hand, and the research and extension services, on the other. * Agricultural and agro-processing research paradigms will be reconsidered so as to respond in a rational way to the needs expressed by producers. Such research should support producers in their strategies, pay more attention to the interplay of economic forces at national and regional level, keep operations in line with the Government's major development projects, and analyze in detail each of the agricultural subsectors, from production to consumption, including processing and marketing. It will be carried out by competent, productive, responsive, and motivated personnel. Financing for agricultural and agro-industrial activities will be provided for the most part by an agency separate from the one conducting the actual research work. Thus, a National Agricultural and Agro-Industrial Research Fund will be set up for financing research activities. It will be managed independently from the research institutes themselves. Decisions about the allocation of research resources will be taken by a technical committee made up of individually appointed and respected scientists, and a management committee on which users of the research results will be represented. This fund will constitute an essential step towards building the new national system for agricultural and agro-industrial research. Page 108 * The Ministries will be in a position to define and supervise policies in cooperation with sectoral operators/partners, within a system of deconcentrated administration. This function will be aimed primarily at ensuring equitable access to resources nationally, exploiting the comparative advantages of Senegal's agriculture in the regional and international context, and promoting sound environmental management. * The regulatory framework will be improved and public investments rationalized so as to foster growth and efficiency and enhance the security of private investment in the agricultural sector. Institutional development policy will focus on setting up rural development institutions that are equipped to promote this vision. To this end, government policy will give priority to three areas: * Strengthening the capacity of farmers' organizations so that they can play an effective role, in consultation with other rural stakeholders, in undertaking development activities. * Promoting a stronger private farming sector. . Strengthening the capacities of government services by refocusing them on their public service mission, and improving their effectiveness by making them accountable to users for the results of their work. In particular the CERPs will be strengthened so as to provide improved outreach and support services for local authorities, as part of the decentralization process. Page 109 ANNEXES 1. Principles Governing Agricultural Services and Producer Organizations Reforms and Activities The general principle adopted by the Government is that it should transfer to the private sector and the POs all functions that they are objectively capable of assuming, apart from the prerogatives of the State. The Government will provide the POs and the private sector with the necessary support to ensure that this transfer is successful. The Government will rationalize the public agricultural service organizations by reviewing their missions, roles and forms of organization (technical directorates, regional and local services of the Ministries of Agriculture and Livestock, SRDRs and projects, and research and rural extension services), with the following objectives: * A sound legislative and regulatory environment for production (implementing the liberalization policy for the various subsectors), and improved market access for producers, provided through an appropriate information system. * A new farm and rural extension system open to participation by agricultural organizations and private operators, in which each stakeholder can play a role consistent with its comparative advantages. Transparent management systems that stress accountability to producers will allow any shortcomings or inefficiencies to be detected. * A national agricultural and agro-industrial research system, comprising all stakeholders in such research, and supported by permanent financing through a national agricultural and agro-industrial research fund that is separate and independent from the research institutes themselves. * Strengthening of the mission of government services by defining and implementing methods for monitoring and evaluating the implementation of agricultural policies. The reforms and activities planned to this end will lead to a rural development support system based on a concerted approach (involving the POs, the State, and the private sector), enabling the needs of family farms to be identified, validated, and resolved. This concerted approach will mean a break with the methods used in the past for meeting farmers' needs. 2. Reforms 2.1 Institutional Reorganization of the Services of the Ministries of Agriculture and Livestock The program for reorganizing agricultural services will mean a restructuring of the central, regional and local services of the Ministries of Agriculture and Livestock, reorganizing Page 110 agricultural and agro-industrial research, and setting up a new rural extension service with the participation of farmers' organizations and the private sector. 2.1.1 Restructuring the Ministries of Agriculture and Livestock The activities conducted to date by the Ministries of Agriculture and Livestock can be grouped into three categories: * Activities that belong properly to the private sector and that must now be- transferred to private operators, and preferably to agricultural and rural professional organizations. * Activities that require collaboration between the Government, professional organizations, and private operators. This is particularly relevant to the agricultural and rural extension services. * Activities that belong exclusively to the public domain and that must be performed by the Government. These may be classified into three broad functions: . the planning, analysis, and forecasting function serving as the basis for defining agricultural development policy programs; * the monitoring, coordination, and evaluation function for the implementation of agricultural development activities and policies by the various public and private operators; * the regulation and oversight of the various areas for which the Ministries of Agriculture and Livestock are responsible. The planned new organization is designed to fulfill these three broad public service functions. The key purposes underlying the new organization of the Ministries of Agriculture and Livestock are: * to strengthen initiative, responsibilities and management capacity among officials at regional, departmental, and local level, and to decentralize human, physical, and financial resources; * to give greater consistency and cohesion to their activities by: * organizing them on the basis of their major functions, as opposed to the subsector approach; * breaking down barriers between services at central level; * bringing all agricultural services under a single Regional Agricultural Directorate; this Directorate is established because of the need to ensure consistency and coordination in the development efforts of the Ministries of Agriculture and Livestock, in a context of integrated development; Page 111 * to enhance the capacities of the Ministries of Agriculture and Livestock, at both central and regional levels, for information gathering and analysis and projections of agricultural and livestock development; this will enable the two ministries to play a larger role in taking initiatives and proposing development policies and programs at all levels; * to strengthen the regulatory and supervisory functions of the ministries so as to create an economic and commercial environment that will foster the development of agricultural output. The proposed organizational structure is as follows: At departmental level: The Departmental Agricultural Service is the field operations body of the Ministry of Agriculture. It includes two bureaus: The Planning and Statistics Bureau; The Plant Protection and Seed Inspection Bureau. These bureaus will consist of teams assigned to work locally in farming areas. Their size and composition will vary, depending on the scope and complexity of the tasks they must undertake in order to respond to farmers' needs. The departmental service director will be responsible for the planning, coordination, monitoring, support, and evaluation of the teams' work and results. The Ministry of Livestock will be represented at departmental level by an inspectorate of veterinary services, consisting of staff working locally with veterinary posts. It will be concerned primarily with livestock regulation and supervision, pest management and prevention, and the collection of statistical data. At regional level: The services of the Ministry of Agriculture at regional level are grouped together under a Regional Directorate, which includes: the Analysis, Projections, and Statistics Division; the Rural Works and Irrigation Division; the Plant Products Division; the Administrative and Financial Division; the Animal Products Division. The Ministry of Livestock will be represented at regional level by the inspectorates of veterinary services in each region. Essentially, they will be concerned with the regulation and supervision of livestock activities, and pest management and prevention. Page 112 The programs of activities and the budgets of the agencies at regional level will be prepared by the regional technical divisions and consolidated by the regional directorate. They will be forwarded to central level for analysis by the technical directorates before being adopted by the Ministry before the beginning of the financial year. Once these programs and budgets have been adopted, they will be executed by the regional technical divisions under the supervision and coordination of the Regional Director. The central technical directorates will provide technical support, monitoring, and evaluation of the technical activities of the regional divisions. At central level: At central level, the Ministry of Agriculture consists of: the Office of the Minister; the Technical Inspection Office; the Analysis, Projections, and Statistics Directorate; the Agriculture Directorate; the Horticulture Directorate; the Plant Protection Directorate; the Rural Works and Irrigation Directorate; the General Administration and Infrastructure Directorate. The Ministry of Livestock will consist of: the Office of the Minister; the Technical Inspection Office; the Administration and Management Service (SAGE); a Studies, Planning, and Monitoring/Evaluation Unit; the Livestock Directorate; the National Technical Training Center for the Livestock Industry. 2.1.2 Creating a National Extension Services Agency (ANCAR) The creation of such an agency has become necessary because of the poor performance of Senegal's agriculture, despite implementation of the National Agricultural and Rural Extension Program. If this new approach to providing rural extension services is to be effective and provide proper support for the new institutional framework, it will need to develop strong partnerships among all the stakeholders in domestic agriculture (i.e. the State, local authorities, producer organizations, and the private sector). This framework presupposes both decentralization and a political will to support and strengthen the producer organizations so they can play their proper role in defining and implementing the policies that affect them. Page 113 As regards activities, the Agency will provide support services, but it will also help improve the management of natural resources. As well, it will provide information to producers about related activities and upstream and downstream linkages to plant and animal production. This new approach to agricultural and rural extension services begins with the recognition that it is the producers who have the prime responsibility for improving their systems of production and the management of their lands. In keeping with this new approach, extension services will be expected to: * build upon the producers' own know-how, taking it as the starting-point for helping them improve their agro-ecological and socioeconomic environment; * develop - in conjunction with producers and their organizations - an appreciation of the local agricultural situation, in the context of the rural community; e involve beneficiaries in the entire process of preparing, implementing, and evaluating extension messages in the form of: (i) statement of needs; (ii) development of content; (iii) participation in dissemination; (iv) impact evaluation; * ensure that advisers are accountable to the beneficiaries for the outcome of operations, on the basis of contracts between the producer organizations and the Agency; * develop technical methods and standards that will be responsive to the needs of producers, by creating a tripartite and decentralized forum for dialogue among ANCAR, the researchers, and the POs. The previously existing relationship will be fundamentally altered once producer organizations, local authorities, and the private sector are involved in the Agency's decision- making, financing and management. ANCAR and its staff will be held accountable to their beneficiaries for the results of their work. The latter will judge the quality of the service and determine the level of their contribution to the agency's work according to their degree of satisfaction; thus, the future of the agricultural and rural extension service will be closely linked to its effectiveness and its positive impact. At rural community level, this three-way dialogue involving ANCAR, the POs, and the researchers will allow for a shared analysis of farmners' needs in terms of extension services and research topics. The farm extension program will thus be based on a participatory diagnostic study. The program will be implemented in accordance with contracts between one or more POs and ANCAR. Under these contracts, the POs will contribute to the financing of the program, at a level to be determined in each contract on a case-by-case basis. ANCAR will provide free extension services to poor farmers and to those who are not members of organizations. Page 114 ANCAR's activities will be developed under a joint strategy with the POs, according to the following schedule: Year 1 -- 57 rural communities; Year 2 -- 142 rural communities; Year 3 -- 227 rural communities; Year 4 -- 320 rural communities. The project will be expected to reach 142 rural communities by the end of the first phase. 2.1.3 Reorganizing Agricultural and Agro-processing Research The disappointing impact that agricultural research has had on rural development to date calls for a change of approach and new methods for identifying research topics. Every effort must be devoted to the following issues: * Research should pay more attention to the needs of beneficiaries. The mandate for ISRA and ITA must be drawn up in light of clear market signals and farmers' real needs. The intention to conduct research that is more in keeping with current and future social demands is the motivation underlying the establishment of the new program committees and of a research and development unit. Consequently, researchers will need to take account of the R&D diagnostic studies organized by the POs. * High-quality research: Research institutes will need to ensure the overall quality of their work, and must be able to count on competent, productive and motivated human resources. The Scientific and Technical Committees of the research institutes will conduct a systematic evaluation of research work and its results, and of the researchers themselves, on the basis of international standards such as those of CAMES (Conseil africain et maigache pour /'enseignement superieur: African and Malagasy Council on Higher Education) or CORAF (Conference des responsables de recherche agronomique africains: the Conference of African Agricultural Research Directors). Research will be reorganized with the following goals in mind: • Institutional stability for research units - both in terms of organization and human resources - will be ensured by making ISRA and ITA into autonomous public institutions, known as etablissements publics a caractere scientifique et technique, with new regulations and bylaws to allow beneficiaries and other partners to sit on their boards of directors. * Sustainable research financing will be sought by setting up a National Agricultural Research Fund that will include units for selecting and managing research projects. This fund will provide financing on a selective basis for research projects submitted by teams from ISRA and ITA, and also from other entities in the SNRAA (the National System for Agricultural and Agro-Industrial Research). Page 115 * ISRA will be re-scaled to bring its network of infrastructure into line with the resources available to it. The interface between research and development had limited results. Recognition of this fact lay behind creation of the Research and Development Unit, formed jointly by ISRA, ITA, ANCAR and CNCR (the National Rural People Council for Consultation and Cooperation). 4.2.2 Strengthening Producer Organizations so that they can Fulfill their Proper Functions The goal here is to turn producer organizations into strong and representative institutions that can play their full role as partners in development. Support will be provided for producer organizations at three levels: (i) grassroots producer organizations; (ii) federations; and (iii) national coordination agencies, in particular CNCR. Grassroots organizations will be strengthened with a view to: * providing producer organizations that can serve as vehicles by which institutions and agencies can channel support to the largest possible number of family farms; . establishing CLCOPs (Cadre Local de Concertation des Organisations de Producteurs: Local Forums of Consultation for Producer Organizations). A CLCOP is a forum that brings together all the POs in a rural community so as to: - represent their interests in contacts with other institutions and coordination bodies (rural extension services, etc.); * ensure consistency in the support and assistance provided for POs, in accordance with their priori.ies; * negotiate with development partners on the allocation of roles, responsibilities, and resources for implementing programs and projects in support of POs; * allocate resources for PO development activities, in line with the priorities of the POs themselves; * monitor all activities undertaken in support of POs, and assess trends in these. At regional level, the CLCOPs will have the option of forming themselves into CRCOPs (Cadres Regionaux de Concertation des Organisations de Producteurs: Regional Forums of Consultation for Producer Organizations). A CRCOP will be a coordination mechanism, intended to: * promote improved approaches to common problems on the part of support services and other institutions involved in rural development, particularly regional R&D units; Page 116 * encourage exchanges of information and experience among CLCOPs; * negotiate and oversee implementation of development activities affecting a number of CLCOPs; * accept and carry out mandates issued by the CLCOPs. To facilitate the establishment and sustainable operation of these institutions, the Agricultural Services and Producer Organizations Project will provide for: * targeted training at village level, and inter-village exchanges; * promotion and operational support for the CLCOPs and CRCOPs; * support for innovation; * help for the POs to obtain specific extension services. Federations representing POs in various subsectors or types of activity will be strengthened, so that they can serve their members both at technical level and in networking to identify markets, financing, information, specialized training, etc. The subsector-based POs will also represent their producers within those coordinating bodies concerned with specific subsectors. To this end, the PSAOP will provide training for managers and officers from subsector-based POs, tailored to their specific needs, and with a particular emphasis on the organization and management of specific subsectors, using modules based on the diagnostic studies carried out by each federation or group of POs. At the same time, and at national level, CNCR will provide a forum by which the POs can be represented in "horizontal consultation" bodies (other than the subsector-based committees, or comitr's interprofessionnels) and in contacts with the major partners supporting the various sectors. It will be strengthened in its capacity for generating information on the agricultural environment, and for preparing and negotiating policy proposals, goals, programs, and projects, by means of the following actions: * establishing a database on the POs; * developing communications; * providing strategic analysis and training for PO managers; * instituting a technical support unit. In implementing all these actions for strengthening the POs, the POs themselves will decide what actions to undertake and who should provide the services. Private contractors who have the required skills will be hired for these purposes, through a process that will ensure fairness, transparency and efficiency. Page 117 4.2.3 Relationships between Government Agricultural and Livestock Services and their Rural Partners 1. Relationships among Stakeholders Efforts to strength the POs at rural community level will be based on participatory diagnostic studies. This exercise will involve all stakeholders in the rural community. The POs or the CLCOP (if there is one, otherwise a similar body that is recognized as such) and ANCAR will set up a select committee to initiate and coordinate the work of preparing and organizing the participatory diagnostic study. The committee may receive support from the private contractor responsible for setting up the CLCOPs. The findings of this diagnostic study will provide the framework of reference for activities in the agricultural sector at rural community level. At national level, the subsector-based committees will bring together all parties concerned with a given subsector. The subsector-based POs, or groups of POs concerned with a specific subsector, will represent both the POs and producers as a whole within these committees. The subsector-based POs will need to be strengthened in order to improve their ability to negotiate economic and financial terms for their branches of activity. 2. Relationships between State Services and Local Government Local government authorities are decentralized and autonomous bodies that work together with the regional services of the Ministries of Agriculture and Livestock on a basis of cooperation and mutual support, without any relationship of subordination. In this spirit, the regional directorates and regional veterinary services will act as advisers to these local authorities and help them incorporate the agricultural-development dimension into their overall development programs. 3. Relationships between the State Technical Services and ANCAR ANCAR is a corporation governed by private law and possessing its own statutes. It is governed by the bodies stipulated for this purpose in those statutes. Its mandate is to provide technical support to agricultural producers. ANCAR's management bodies are responsible for defining its programs and evaluating its results, and in these processes they must take account of the farmers' wishes and their assessment of the services they have received. The Agency's relationship with the services of the Ministries of Agriculture and Livestock and with local authorities is one of mutual support and cooperation, with a view to satisfying farmers' expectations to the fullest extent possible. Nevertheless, these relationships cannot justify any interference in the management of ANCAR. Page 118 The government agriculture and livestock services will retain those activities that are a permanent part of a government's functions. These relate primarily to the planning, monitoring and evaluation of agricultural development policy, and to regulating and supervising its implementation. Other activities in which they are now engaged will in time be transferred. These relate essentially to the provision of support for farmers and livestock producers, and, in particular, rural extension services and support for farmers' organizations. The transfer will be facilitated by the Government's involvement in the ANCAR Board and in the coordination bodies that will be preparing producers to talke over supervision and management of agricultural services, nationally and regionally. 4. Relationships between the State Technical Services, Farmers' Organizations, and Economic Agents Apart from the work of the coordination committees, these relationships are mainly concerned with exchanging information, coordinating activities, and raising consciousness among farmers, so as to prepare the ground for technical support. 5. Relationships between the State Technical Services and Nongovernmental Organizations These relationships involve: - consultations, in order to harmonize approaches and methods for supporting producers and their organizations; 3 cooperation - under contract or in other ways - in the conduct of development activities; * exchanges of information on the situation of farmers, their organizations, and their needs. 6. Relationships between the State Technical Services aind the SRDRs The SRDRs perforrn two kinds of function, separately or jointly: * They have a public-service mandate, under which they are responsible for delegated project management with respect to government investments, and provide advice and assistance for agricultural professionals (as in the case of SAED and SODAGRI). * They have industrial and commercial functions (as in the case of SOI)EFITEX). The first phase of the Agricultural Services and Producer Organizations Program is to last for three years. The agricultural development activities carried out by ANCAR, SODEFITEX, SAED, and the professional organizations will be subject to an external evaluation at the end of the first two crop years, with a focus on technical execution, cost-efficiency, and beneficiary satisfaction. On the basis of this evaluation, decisions will be made on any redefinition or reassignment of functions. The terms of reference for this evaluation will be established by Page 119 common agreement among the bodies concerned, the Ministry of Agriculture, and the donors concerned with the Agricultural Services and Producer Organizations Program and the above institutions. Thus, there are no presuppositions regarding the institutional configuration to be adopted for the second phase; nevertheless, there are certain principles that must govern the distribution of functions among the various institutions: refocusing the State on its original prerogatives, and recognizing the need to avoid duplication or overlapping in the public funding provided for one and the same operation in a single location. 7. Relationship to Projects Most projects are closely identified with the Ministries and tend to behave as institutions in their own right, and the significant resources they have at their disposal often enables them to impose their will on the Government. This situation makes it difficult to ensure coordination and monitoring, and the approaches taken by these projects are often inconsistent. The Ministries use projects as a means of intervening in the agricultural sector and harmonizing the approaches and methods employed for each project. In fact, projects represent the greatest channel of financial support for agricultural development, and the Ministry must in all cases exercise its powers of guidance, monitoring, and evaluation over them. Projects may be sponsored by the Ministry of Agriculture or the Ministry of Livestock, depending on the following criteria: e the geographical scope of the project: national, regional, or departmental; * the types of activity to be carried out (institutional, support for a specific subsector or for POs, etc.); * relationships that may be established with the services, depending on their mandates and the types of objective pursued by the projects. 8. Coordination Bodies under the Agricultural Services and Producer Organizations Program At local level: * The CLCOP, which is the PO's own coordination body; * The ANCAR/CLCOP/Research coordination framework. At regional level: * The CRCOP, which is the PO's own coordination framework; * The coordination framework consisting of the CRCOPs/ANCAR/Research/Ministries. Page 120 At national level: * CNCR (the National Rural People Council for Consultation and Cooperation); * The National Monitoring and Coordination Council of the Agricultural Services and Producer Organizations Program. 3. Results Expected from the First Phase of the Program The program calls for achieving the following objectives. An evaluation will be made jointly by the government of Senegal, the World Bank, and IFAD to determine how far these objectives have been met. Prodv :cer Organizations (a) The Demand-Driven Rural Services Fund functions satisfactorily, with at least 142 local committees (CLCOPs) and 10 regional committees (CRCOPs) functioning effectively. (b) CNCR covers its own operating costs (excluding its public-service functions) out of its own resources. Extension (a) The Government is a minority shareholder in ANCAR. (b) ANCAR has successfully established a decentralized extension service, co- managed by arrangements with producer organizations, and covering at least 142 rural communities. (c) Producer organizations are the majority shareholders of ANCAR and contribute to its operating costs (including salaries), either directly or through contractual arrangements at local level. (d) An evaluation of staff performance has been carried out after a two-year probation period, and decisions has been made on all staff members (i.e. hired on contract or redeployed to the civil service). (e) All ANCAR employees are contractual. (f) ANCAR operates according to satisfactory policies and procedures, particularly with regard to the financial management and accounting system, as reflected in the audit reports. National Agricultural and Agro-Industrial Research Fund (a) The Fund is a legal entity governed by private law. Page 121 (b) The Fund functions satisfactorily according to agreed policies and procedures, as certified by an independent management audit. (c) Two other donors contribute to the Fund (for a minimum of 10%). ISRA (a) ISRA is operating satisfactorily and in accordance with its various management and organizational manuals. (b) Financial management and accounting systems are functioning properly, as reflected in the annual audit reports, which are not qualified, except for minor qualified opinions. (c) At least 15 ISRA projects have been approved by the National Agricultural Research Fund. Four of these are joint ventures with ITA. ITA (a) ITA is operating satisfactorily and in accordance with its various management and organizational manuals. (b) Financial management and accounting systems are functioning properly, as reflected in the annual audit reports, which are not qualified, except for minor qualified opinions. (c) At least 5 ITA projects have been approved by the National Agricultural Research Fund. Four of these are joint ventures with ISRA. Ministries of Agriculture and Livestock (a) An external team has evaluated the extension fuinctions carried out by ANCAR, SODEFITEX, SAED, and the producer organizations, and decisions have been taken on redefining and reallocating those functions. (b) The Ministries focus only on their policy-making, regulatory, oversight, monitoring, and evaluation functions. Page 122 ANNEX X Senegal Agricultural Services and Producer Organizations Program Status of Bank Group Operations in Senegal Operations Portfolio As of 3 1-March-99 Difference Between expected Original Amount in US5 Millions and actual Last PSR Fiscal disbursements a/ Supervision Rating b/ Project ID Year borrower Purpose IBRD IDA Cancel. Undisb. Orig Frm Rev'd Dev Obj Imp Prog Number of Closed Projects: 72 Active Prolects sN-PE-2327 1989 GOVT OF SENEGAL SMALL RURAL OPS. II 0.00 16.10 0.00 4.03 3.86 0.00 S S SN-PE-2342 1991 GOVT OF SENEGAL TRANSPORT SEC. SECAL 0.00 68.73 3.73 8.30 2.60 2.37 S S SN-PE-2357 1993 GOVERNMENT HUMAN RES DEV'T II 0.00 40 .00 0.00 8.51 .88 0.00 S S SN-PE-35615 1995 GOVT OF SENEGAL COMM NUTRITION 0.00 18.20 0.00 7.15 8.10 6.08 S S SN-PE-2376 1995 REP. OF SENEGAL PRIV.SCTR.CAP.BLDG 0.00 12.50 0.00 5.97 4.30 1.02 S S SN-PE-2346 1995 REP. OF SENEGAL WATER SECTOR 0.00 100.00 0.00 60.88 57.35 50.07 HS S SN-PE-35621 1996 GOVT OF SENEGAL PILOT FEMALE LITERAC 0.00 12.60 0.00 6.41 -2.73 0.00 S S SN-PE-2373 1996 GOVERNMENT HIGHER EDUC I 0.00 26.50 0.00 17.57 -1.24 0.00 U U SN-PE-46768 1997 GOVERNMENT OF SENEGAL SUST.PART.ENGY.MGMT. 0.00 5.20 0.00 4.75 2.17 0.00 S S SN-PE-46648 1997 OHVS REGIONAL POWER 0.00 10.50 0.00 1.92 5.33 0.00 S S SN-PE-44383 1997 REPUBLIC OF SENEGAL URBAN TRANS REF TA 0.00 6.60 0.00 5.44 2.99 0.00 HS S SN-PE-41567 1997 GOVERNMENT OF SENEGAL ENDEMIC DISEASES 0.00 14.90 0.00 13.58 4.12 0.00 S U SN-PE-51610 1998 GOVT. OF SENEGAL AG.EXPORT PROMOTION 0.00 8.00 0.00 7.62 1.16 0.00 S S SN-PE-51357 1998 GOV. OF SENEGAL ENERGY SEC. ADJ. 0.00 100.00 0.00 75.59 -1.05 0.00 S S SN-PE-2369 1998 GOVT OF SENEGAL INTEGR.HEALTH S.DEV. 0.00 50.00 0.00 45.29 11.34 0.00 HS S SN-PE-2365 1998 GOVERNMENT URB DEVT 6 DECEN PRO 0.00 75.00 0.00 71.49 17.55 0.00 S S SN-PE-2366 1999 GOV. OF SENEGAL TRANSPORT II 0.00 90.00 0.00 90.00 0.00 0.00 Total 0.00 654.83 1.73 440.50 116.73 59.54 Active Projects Closed Projects Total Total Disbursed (IBRD and IDA): 199.01 1,240.10 1,439.11 of which has been repaid: .17 168.38 ld8.55 Total now held by IBRD and IDA: 650.93 1,000.44 1,651.37 Amount sold 0.00 5.46 5.46 Of which repaid : 0.00 5.46 5.46 Total Undisbursed : 440.50 .72 441.22 a. Intended disbursements to date minus actual disbursements to date as projected at appraisal. b. Following the FY94 Annual Review of Portfolio performance (ARPP), a letter based systein as introduced (HS - highly Satisfactory, S - satisfactory, U - unsatisfactory, HU - highly unsatisfactory): see proposed Improvements in Project and Portfolio Performarice R.tir.9 Methodology (SecM94-901), August 23, 1994. Note: Disbursement data is updated at the end of the first week a-f the month. Page 123 Senegal STATEMENT OF IFC's Committed and Disbursed Portfolio As of 28-Feb-99 (In US Dollar Millions) Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Part 1980 BHS 0.00 .46 0.00 0.00 0.00 .46 0.00 0. 1981/88 ICS 1.20 0.00 0.00 0.00 1.20 0.00 0.00 0. 1994/96 SOGECA 0.00 .33 0.00 0.00 0.00 .28 0.00 0. 1996/97/98 AEF SERT .83 .43 0.00 0.00 .83 .43 0.00 0. 1997 GTI Dakar 14.14 1.61 0.00 11.75 5.20 .38 0.00 6. 1998 SEFSENTA .39 0.00 0.00 0.00 .39 0.00 0.00 0. Total Portfolio: 16.56 2.83 0.00 11.75 7.62 1.55 0.00 6. Approvals Pending Commitment Loan Equity Quasi Partic 1998 GTI DAKAR INCR. 3.11 .22 0.00 0.00 1998 TOLSA-THIES 3.00 .90 0.00 0.00 Total PendingCommitment: 6.11 1.12 0.00 0.00 Page 1Z4 ANNEX X Senegal Agricultural Services and Producer Organizations Program Country at a Glance 10/1/98 Sub- POVt RTY and SOCIAL Saharan Low- Senegal Africa income Development dlamond 1997 Population, mid-year (millions) 8.8 614 2,048 Life expectancy GNP per capita (Atlas method, USS) 550 500 350 GNP (Atlas method, USS billions) 4.8 309 722 Average annual growth, 1991-97 Population (%) 2.6 2.7 2.1 GNP Goss Labor forre (%) 2 6 2.6 2.3 per Gpmary Most recent estimate {latest year available, 1991-97) capita < enrollment Poverty (% of population below national poverty line) Urban populabon (% of total population) 45 32 28 Life expectancy at birth (years) 51 52 59 Infant mortality (per 1, 000 live births) 58 90 78 Child malnutrition (% of children under 5) 22 61 Access to safe water Access to safe water (% of population) 50 44 71 Illiteracy (% of population age 15+) 67 43 47 Gross primary enrollment (% ofschool-age population) 69 75 91 Senegal Male 76 82 100 Low-income group Female 62 67 81 KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1976 1986 1996 1997 Economic ratios' GDP (US$ billions) 2.0 3.0 4.6 4.9 Gross domestic investmentjGDP 13.6 114 17.4 187 Trade Exports of goods and services/GDP 35.3 25.6 33 0 32.6 Gross domestic savingslGDP 6.8 42 11.9 13.2 Gross national savings/GDP 3.6 01 10.4 11.6 Current account balance/GDP -9.9 -15.1 -7.2 -6 5 Domestic ie\ Interest payments/GDP 0.9 33 2.1 1.8 SavingsInvestment Total debVGDP 20.3 107 4 80.0 74.6 Total debt service/exports 6.0 23 3 16.7 14.8 Present value of debttGDP 51 3 46.3 Present value of debt/exports 137.6 142.1 Indebtedness 1976-86 1987-97 1996 1997 1998-02 (average annual growth) GDP 2.0 2.0 5.7 5.2 6.2 --Senegal GNP per capita -1.1 -0.4 3.7 2.6 3.4 Low-income group Exports of goods and services 0.1 4.2 8.0 8.2 8.5 STRUCTURE of the ECONOMY 1976 1986 1996 1997 Growth rates of output and Investment (%) (% of GDP)1 40 Agrculture 29.8 22.3 19.9 18.5 Industry 13.6 17.5 219 22'2 20 . . Manufacturng - 12.5 14.8 14.8 Services 56.5 60.2 58.2 59.3 o<- 4_4 f 92 b.....f 95 95 9T Private consumpton 79.1 80.4 77.3 76.6 .20 General govemment consumption 14.2 15.4 10.8 10.2 _ G0G Imports of goods and services 42.1 32.8 38.5 38.1 197646 1987497 1996 997 , Growth rates of exports and Imports (%) (average annual growth) Agriculture -0.7 1.0 7.5 -2.2 30 Industry 3.4 2.9 7.3 6.7 20 Manufacturing 4.1 1.6 4.8 3.6 10 Services 2.7 2.2 4.6 7.2 Private consumption 2.5 0.3 3.8 1.0 r 95 95 97 General govemment consumption 3.7 -0.7 0.7 0.3 ° n Grossdomesticinvestffent -1.5 4.3 10.0 19.9 120 Imports of goods and services 1.0 -0.9 3.0 3.4 - -Exprts - t*-Imports Gross national product 1.8 2.2 8.5 5.4 1 Note: 1997 data are preliminary estimates. The diamonds show four key indicators in the country (in bold) compared with its Income-group average. If data are missing, the diamond will be incomplete. Page 125. Senegal PRICES and GOVERNMENT FINANCE 1976 1986 1996 1997 Inflation (%) Domestic prices 45 7 (% change) Consumer prices 1.1 6.1 2.7 1.8 30 - Implicit GDP deflator 3.8 7.6 3.7 2.5 Government finance O (% of GDP, includes current grants) 92 93 94 95 96 97 Current revenue 17.5 17.6 16.8 16.8 -15 Current budget balance .. -0.2 3.7 4.5 -GDP deflator CPI Overall surplus/deficit ,. -2.8 -1.5 -1.1 I TRADE 1976 1986 1996 1997 Export and Import levels (Uss millions) (US$ millions) Total exports (fob) 514 657 986 926 2,000 - Groundnut .. 65 80 50 Fish .. 68 38 30 1,500 - Manufactures .. 152 250 254 Total imports (cif). 1,004 1,440 1,352 Food .. 195 395 329 Fuel and energy 111178 176 191 Capital goods .. 139 186 184 0 9 2 9 4 9 6 9 Export price index (1995=100) . 94 100 94 I Import price index (1995=100) ,. 68 105 97 a Exports *Imports Terms of trade (1995=100) .. 137 96 97 1 BALANCE of PAYMENTS 1976 1986 1996 1997 Current account balance to GDP ratio (°) (USS millions) Exports of goods and services 696 1,071 1,587 1,472 ° Imports of goods and services 834 1,370 1,852 1,722 Resource balance -138 -300 -265 -249 Net inicome -1 -6 10 -1 Net current transfers -1 12 58 42 I Current account balance -200 -453 -337 -322 1 -10 Financing items (net) 190 592 392 438 Changes in net reserves 10 -139 -55 -117 Memo: Reserves including gold (US$ millions) 25 21 299 395 Conversion rate (DEC, local/US$) 229.1 434.1 528.9 538.8 EXTERNAL DEBT and RESOURCE FLOWS 196 18 19_ _99 1976 1986 1996 1997 1F (US$ millions) Composition of total debt, 1997 (US$ millions) Total debt outstanding and disbursed 410 3,225 3,719 3,671 IBRD 15 110 23 14 G: 213 A: 14 IDA 55 353 1,194 1,187 F: 65 Total debt service 45 268 290 237 j:1,187 IBRD 1 1 4 1 2 9 IDA 0 8 1 5 1 7 Composition of net resource flows E: 1,297 Official grants 107 218 308 271 Official creditors 91 398 202 202 Private creditors 41 30 -30 -21 Foreign direct investment 45 27 -5 79 292 Portfolio equity 0 0 0 0 D: 603 World Bank program Commitments 36 116 42 164 A -IBRD E-Bilateral Disbursements 16 78 110 61 B - IDA D - Other murtilateral F - Private Principal repayments 0 10 17 15 C - IMF G - Short-term Net flows 16 68 93 46 1 1 Interest payments 1 10 11 10 Net transfers 15 59 82 35 Development Economics 1011/98 MAP SECTION ______________________________________________ ______________________ lORE'R 29999 9 oo~~~~oK'.4 16' ~~~1 5- 14' 13 1 2' v`ader~ SENEGAL K,, ',*~~~~~~~~~~~~~~~~ ~AGRICULTURAL SERVICES ~~~~~~~~~AND <0 K 4ˇ Tell l Lee ~~~~~~~~~~~~>< ~PRODUCER ORGANIZATIONS / ~~~~~~~AINP ~~~~~~~~~PROGRAM A """ 4< t~~~~~~~~~~~~~~~~~~~~A N0 < ¾'K0« <>«< ¾ DelexeO 16'~~~~~ui Kit K "OK 044< 0< NoemmE / - 0Mbeclackh6 K 7< Ovine~~~~~~~~~~~~0 Sagl "' PRIMARY ROADS -~~~~~~~ j*-'--"'' - '<0"' >~~~~~~~~~~~~~~~nnp 'K * ~~~~~~SECONDARY ROADS K/A <0 ~~~~~~~~~~~~~~Ungc6rn I ."'"' / ~~~~~~~~~~~~~~~~~~~~~~ROUTES SECONDAfRES '.0 I(ebAraAr ~~~~~Dar-"""< 0 SELECTED CITIES AND TOWNS -' " - JRee6rac ' 00> ( CITES ST KILEES CHOISIES~~~~~~~~~~~~~~~~~~~~~~~~CTE E VILE COI)E 0<> "Ky '"'" "'<>-' K> 1 S DEPARTMENT CAPITALS~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~EPRT~N CPIAL 7' P,NPacn&y c' '04 ~~~~~Velrar0 aacCAPITALES DES REGIONS '1 '-" e~~~~~a~~ar ~~' - dirdi - 0ToR ~~~~~~~~-< Fete Rawe,P in,' / * NATIONAL CAPITALS~~NAIONA CAPTAL No ~~ T4eIte' I' p j/> 0h aubaj Daseana~G- ( $N , rCAPITALES NATIONALS S&b~~~ a inane Ban4b r"" M~~~~~~~pI06 /"t oh, MRa K / ~~~~~~~ ~- -'-' DEPARTMENT BOUNDARIESBOUNARIE bkkAWwr4~~~~~~~~~~: .'< p >"x0<~~~~~~~~~~~~~~~ LIMITES DES OSPARTEMENTS~~~~~~~~~LIITS ESDEAREMNr <'ˇ 7 < < co'bpj / Y I _ in Ta~~~~~~~~~~~~~~~~~ayee """'~~~~~~0 --.--..-.- REGION BOUNDARIES~~REGON OILNDAI~ 00 >'> Daseas '>0 > K" Kidira ' ,.,, -. 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