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A FRICA N D EV ELO PM ENT FU N D
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REF. N O :LANGUA GE :ORIGINAL :DISTRIBUTION :
M AI/PAAA/98/01ENGLISHENGLISHLIM ITED
CO N FIDENTIA L
APPR M SM . REPORT
M ACAbAM IA W M ,LHOLDER DEVELOPM ENT PROR CT
REPUBLIC OF M ALAW I
This Report is m ade available ollly to staff m em llers t.o whosework it relates. Any ful-ther release mtlst be aut llorized by theVice-prGident for Operations (OPVP).
COUNTRY DEPARTM ENTSOUTH REGION
OCDSM AY 1998
MAG W IMACADAMIA SMALLHOLDER DEVELOPMENT PROJEW
TABLE OF CONTENT .
Basic Dao, Currenè and Measure, LKt of Tables, List of Annexœ, List of Abbrevltions, ProjectBrief, ProjH Matrix and Project Summary.
1. Introduction1.1 , Origin and His-tory of the Proje1.2 Performance of Slmilar Projectq in Malawi.
2. The Aqricultuœ Sedor2.1 Salient Feature2.2 Strudure2.3 Recent Pedormance2.4 Agricultural lnstitutions2.5 Policy Agenda2.6 Land Tenure and 'l nd use2.7 Constraints to Agriculture Development2.8 Poverty in Malawi
3. Macadam ia Sub-sector3.1 The Sub-sector Analp is3.2 Proje Area3.3 Climate, Tomgraqhy, Rils and Vegeta:on3.4 Project Beneficianes3.5 Gender Issue3.6 HeaIth and Nutrition3.7 Environment
4. The Proiect4.1 Proje Objeeves4.2 Decription of Projed Outpu?4.3 Detailed D% cription of Componen? and Adiviti%4.4 Projed M sumptions 4nd Risks4.5 Projed Cost Fdimate4.6 Source.s of FinancH4.7 JuMiscation of Financing Local CoA by ADF4.8 Environmental Impaœ4.9 lmpad on Women4.10 lmpact on Poverty
5. Proiee Im olementation5.1 Executing Agency5.2 Organisation and Management5.3 Co-oràination of MSDP5.4 Training and Incentive,s5.5 Procurement5.6 lmplementation Plan and Fxpenditure Schedule5.7 Projed Planning, Monitoring, Evaluation and Benesciary Assecmmept5.8 Accounl and Audit5.9 Recurrent Cosl5.10 Cost Recovery and Projed Suqtainability
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6.1 Tec'hnical Justification 28 ' .
'46.2 Prolvct Benefix za -.êk e.t6.3 ,',Fj na' ncial Justification nà 'J' i6.4 Ecolnomic Jtlx ficati
on 2W9 .15.4- ' :' j k f297
. conclusièn and Recom m eildatidins ''7 1 Coi'clusion .it. al
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7.2 Recùmmendasons alC
31
'Ihis 'Appraisal Report was prepaed by M ejya
y 'w>'. .s' ;,o ojjtyzu;' asjcyaj asjcujmral. ' jScollom ist and Team I weadery OCD. s. é),, :., Wi a' 'b :.. * ' ' , . r ,... j j rgujj , y y
ay jsyjy. .osyjCDPJRCCQ 0 CDS. 2). J. Helsen (Senioi- agrùrko: ' m- jt,t. oXC k':'7 f ' '#X: ( $0 Or . g1' . ,E j 4
, . coss a. ) . gad. y ..w soli jri'' urn' s, xjornv ronmentalist ocos. 2) fbllowiog tlaeii- mikjitz, . ' ' ,' '.'Y ' ' '.' ' - '- ,, . .r;T ( Q'Enquirie
s s' hould be addressed to oivision claiefrsrk tG' Màlzwi irk- 'I%b;c!,,.a.rg....'.'/,''M, tarè-h''- 1p. 98.. .. . .. l .. ' ' . . .. .. '
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LIST OF ANNEXES
Annex
Num ber Title of Annex
1. Map of Malawi ipt. icating proje location2. Climate Data
3. A. Macadamia Technical Notes
Num ber
Of Pages
1
B. Agriculture Feension SeNices in Malawi
C. Training Adivities
n e Malawi Rural Rnance Company Limited
List of Goods and Services
FAO Marketing Study Recommendations
Organigrams: A Ministry of Agriculture & Irrigation
B Agriculture Development Division
Im plementation Chart
Technical Assistant Terms of Reference
Financial and Economic Analysis
4.
5.
6.
7.
4
1
1
3
6
1
8.
9.
10.
2
N
%s.zx
.LI ST O-F Y. A B- t. E-S-,
Num ber ,, .- t - .. - ,. ;. , . -r. ., .. .j j jyja oy ssy auCY CZb C Y
.' . . ' vx n %#.> '5ï r! (k 4 .j . ,: . ,.y .: R . ç . .j c .. .
4.1 Summary Of Proled Cost Estimatelby C' ompon:nt
4 2 Summal of Proje Cost Esti' im 'a-te'by/ 'C.atqgol ofExm hditure
4.3 Source of Finance
5.1 Procurement Arrangement
5 2 lmplemenztion Target Dat'pq'. - '! . % ' r '. J '.. 6 , s.;.ï.; ..-..5
.3 Exm nditure Schedule by Corhm netqt' .
5.4 Expenditure Schedule by Source bf Fi.yance..% l è
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CURRENW AND EOUIVALENT AS AT M ARCH 1998
CURRENW MAG W I Kwacha (Mkw)1 UA Mkw. 24.40711 Mkw UA 0.* 0971 UA US$ 1.350231 US$ UA 0.73948
W EIGHTS AND M EASURES
1 Metric Ton (Mt)1 Kilo gram (Kg)1 Metre (m) '.1 Kilometre (m)1 Herfare (ha)
2,204 Pounds (Ib)2.2. Pounds (lb)3.28 Fœt (Q)0.62 Miles2-471 Acre
H SCAL YEAR1 July -30 zune
ABBREVIATIONS
ADB Africzn A velopment M nkADD Agriœ ltural Devdopment DivisionADF African IMvelopmc t FundADMARC Agriœltural Development and Marketing Corm rationAG Arrnunlnt Generala.s.I Above A a LevelAW P Annual Work PlanBARS Bvum- Agricultural Research StationCAS Cona ller of Agricultural ServicœCSP Couno Stategy PapœDEA Direœ r of Environmental AffairsEA Executing AgencyEPA Extensions Planning N eaFA Reld M sislnlGDP Gross x mestic ProductGOM Govr ment of Malawi1PM Integrated PG ManagementMAI Ministry of Agriculmre and IrrigationMASIP Malawi Agriculture Sev-tor InvG tment ProgrammeMIS Management Information SystemMOFFEA Ministry of Forepstry, Fisherie.s and Environmental AfrairsMRFC Malawj Rural Finance Co> rationMSDP Macadamia Smallholder A velopment ProjectMTM Macadamia Tnst of MalawiNCW D National Commission of W omen in DevelopmentN1S Nut In ShellPB ProjM BenehciaryPC Projct Co-ordinatorPCR Proju Completion RemrtPS Principal Sc retaryQPR Quarterly Progress RemrtRDP Rural Development ProjxtSCA Smallholder Cofee AutoritySMS Subjct Matter SmcialistSOE Statement of AccountSTA Smallholder Tea AuthorityTNGA Tree Nuts Growers M sociationUNDP United Nations Development ProgrammeVAM Vulnerability Asspqqment and Mapping
AFRJCAN DEVELOPMENT BANK AFRIG N DEVELOPMENT FUND
01 B.P 138 .,7 ABIDJAN 01
TEL: 325 010/320 711/225 652
PROJEW INFORMAH ON SHEW
Date: May 1998
n e informa:on given hereunder is intended to provide some guidance to prospec vesupplies, contractos, consultanl and aII perr ns intere ed in the procurçment of gx dsand service for proje /pK rammH approved by the M ard of Dire ors of thè % nk Group.More detailed informa:on and guidance should be obtained from the Executing Agency of theBorrower.
1. COUNTRY & NAME OF PROJEW :
2. NAME OF PROJEG :
n e Republic of Malawi
Macadamia SmallholderDevelopment Project
ln Kasungu and Mzuzu ADDS;about 68 km and 360 km north ofLilongwe, respeœ vely
Government of Malawi
Ministry of Agriculture and lrrigation
3. LOCATION:
4. BORROW ER:
5. BENEFICIARY:
6. EXECUTING AGENW : Ministry of Agriculture andIrrigabon, P.O.Box 30134, Lilongwe3, Telephone, Fax (265) 1 784656/781 164
The Projed comm nenl arei) Nursery Development (ii) CropDevelopment', Strengthening ofResearch and Ex-tension Sènrices; (iii)Capacity Building', (iv) Relmbililtion ofRoads and Construction of Buildings',(v) Project Management
UA 8.21 million
UA 4.75 millionUA 3.46 million
PROJEG DESCRIPTION:
8. TOTAL COA :
9. FOREIGN- COA :LOCAL COA
10. BANK LOAN ADF UA 6.85 million
OTHER SOURCES OF FINANCING:GovernmentBeneficiaries
DATE OF APPROVAL:
UA 0.95 millionUA 0.41 million
June 1998
13. ESTIMATES STARTING DATEOF PROJEG & DURATION: January 1999 for 5 yeas
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SUMMARN CONCLUSION AND RECOMMENDATIONS
1. BORROW ER
2. EXECUW NG AGENW
3. LOAN (ADF):
TERMS
Government of Malawi (GOM)
Ministry of Agriculture and lrrigation (MA1)
UA 6.85 m illion
i) Service Charge 0.75% per annum on the amount disbursedand outstanding.
0.50Zo on the undisbursed podjon 12O daysaoer signature of loan agreement.
50 years including a grace period of 10years.
ii) Commitment Charge
iii) Duration
iv) Repayment : 1% of the principal Ioan amount payableannually from the 11* year after the signingof the Loan Agreement through the 20thyear and 3% per annum thereaoer.
4.
The ADF Ioan will be used to finance 100% of the foreign exchange costamounting to UA 4.75 million. These costs are associated with: civil. worl ,equipment, vehicles, technical assistance, services and consultancies. n e Fund willalso finance part of the local cost focussing on road rehabilitation and training. Thiswill amount to UA 2.10 million or 25.6% of the total Project cost.
5. THE PROJECT
a) Objective
The sector goal is to improve on the well being of Malawians through poveAalleviation, especially among rural people, by promoting broad based and rapidagricultural development. Speciscally, the oblective is to promote and develop thed ition of 500 ha of macadamia intercrojped within 2,500 ha of food and cashpro u
crops under smalîholder production in the prolect area
PURPOSE OF THE LOAN
b) Description
R e projed will have five componenl: nursery development, includingmother and community nurseries; crop development includinj supqly of credit to 'smallholder farmers; research and extension support, capaclty bullding includingsupport to farmer group organisations; infrastructure development, includîngconstrudion of buildings and rehabilitation of gravel access roads and ProjedManagement.
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j . ? .. . ,,). lj , . , j ! , . .#y . jyCmp' Development 17,550.00 1 1 ,.150 ,000 w .2'8.W. OO.X (91 j .>'. .7. 19#0..5 . 456.831 1 ; 175.89 0.39. ' 4.. . ..u .. ' .. .gj .%'i ' . t . I . 'j . . . . , . u. j j ; . , . .y. g . tj g. . j j g ; j . r j 6 . g y y . , tj , . yyj . . . x j yv yR,estlrch & Ex-tension 1 ,905.74 3 ,3M .90 52 9 0- . . . . . . .I l ., . i .( % . . j : . . . .. ,k ,.j...Capliqity .)-.Bu ilding 5,2 30,00 7,.750:0. 0, !. > 12':980..00.:.4. L . .) .,1j43:.81 . .. 31' 1 :53.: ' . ' 1,3. 'lt-.&1 0: 59I ..e i ''* ? . '+ -. . . < ' . ç.
. . tj : . . r . : . . :.In.frastrklcture 27,325. 53 ' 7,2*/7 .:26 . Zu3.. :,$6()..,.2 ..79. . . l , 1 19 .5. &, . 29.8- .,.1 6 l ,4 1 $l' .74 . 0 .2-1 . ) .. . . . . . . . ' .. ' . . +. : . . t: li . ' ' .M anagemènt 1
,720.00 5 1 .240.00' . ''52 96'0.Q-j' ' . . ,.70.4-/ ' *3,099.39. 2-.169.86' 0.97 . QJ.'' '.@ . . . , ; ; . ,m ., , - , , ,. t; .; . . . . ,, .; . . . , ,:.Tdtal B' aàe Cost 56 . 164 .31 96.302. 1 . 6. . 1 5.Q.k4. L6%.'.k7' ... ' ,:2-:1 ..3*011..1. ,$5 . ,C ' :.3. .9, '-45. i.x6*. q.c. ., -5-#2. 46..81. ' 0..63 ' : :4 .*! 4: . j e . .' ) ' *?? . Q* r . . r lirsF .'., :.- . ' '. k; ,y := ;Tf.!,'N ''' ' . . j) .: ' l 'm''':l .,a.
P hysical- Conti 'ngencies 5.446.43 4,908.22 .''.w.10;3'5'..:4-65i 7a$- , .2 2. 3.151 )'; ),201i'.#f1kU.:ç 424.25 0.47 .J'' .x'',( . I . ... y rs . . rj. .,u. . . :jj sjzy.ijsj. ., : 6jj.g .j j r, ky . j j g.y , . y sj (; . y q . .t .,xsP Irice C..' Qntin. aencies 22,756.98 14,798.57 . , 271. s;5. <.45.,/55: '.k-%'.. #.3. . . . . . . .. , . k ,1 . .
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7 .' 'S U M M A RY O F P R O J E C O S T .. BY k . C ' A , T k EztvGt4uo, , . Ru .tY .0 1 F1 ! EOX. ,' P EJPN; .DJ.'; a ( U : R E . .' 4.
$ . : V R ' J 02 '. . ': u . - . . . . i
z a i .J l ,. ., ' . z j- . l k u. : . . .. ' . f. . . ' . . ' ' ' * '
*
diThe total prolect cost by categ o rv 'ofvexp' 'x-
endtt-u'' ce 'ls su. mm. ans' ed b e'Iow: , k'ù. :; . . . . .. . .r .. ..:. .; .ut ?$ ' c ' . . j. . ; . . . . . . . f s'''u L .9 ; . % 'q : ... >. ' . . . . ''& 4. . .. .
. j . , ..! y J . k. . . . x : ' u v&. . . yt .%- . . . , ' + k yS u m m a r-v of Proq ra m m e Cost E stlm 'ate#hbzv/ 'C, .%t. ql.q. .oG. o Jf ?E..x'o, end. ltu ee 'r
1. ''rk ..: j . . . .. a' ( . ,,k . . . . x,j . -. : t v; ... - - . ê.,.;? .t h. ' ïl't.e. . . : js I
-. j Mkn- -k' . m.. , .....c 9 ' r.U82A- i 000. ' ; . ' . : t'( '. - . . . . : . . . ..' Cateoon - ' . ' -. . , ; . ' 'v. . . . ' . ' . . ' ... . . jj . yz . j . . . . . q
'
?- t . . r . j r, . . ( , ,. .. rjy; , yc . . , oz f .. . j j,. LC VC TOt, à1l.' : ' ' .V . t, ! 2 v.' ' . . l Ota.I'' ' ' ' l.. x z.'j ... ; . ..; st y. . , . . . pc y .
. . ; : . (j, 7 y -. a . .k , s j.;.. ; 4, j yj . j z .j y z.. y (;,..z g. . '. .a. l Civil Blorks: Roads 24,36 l .36 6,090.34 30..94,5t1 .7.x . .. t., ,998% l . , ...j. . . . . . , yj .! Ci il Works' Building 8 l 1 28 l l86 92 1*998 20 33:*23' %' 8 63 ' 871 85 0 .*8 11 . , . .
.. J . jc.' l Enuipment l ,290,00 9, 195.00 10 ,485,.0,.0. 52..86 . . 376.73 429.59 0,88 .,i( .. .. . q , , .
.. . . ; .;4d
. '; Vehicles 827.00 1 ,460.00 2,281- t,O@ 1,,. ' 33, 88 5.9:8- 1.' 93.69 1 .0 O . )
' , ' ' ' W1e.
'i Motorcl cles 400.00 222.00 622.00 ) 6.79 9.09 25.48. 1 .O0 . ?' . .j
LL ' Teclmical Assistance - 14,400.00 .1.4,4U'('>0- 0. :: . ':' . '..@ +.
'' '
.5.89..99 58)9.9- 9 l .0O L..'. ' t1 ' ! . '
Services 245.00 57 1 ,00 .. 8:1 6.00 .*1.0','03. 23.3 9 3.3.42. .O. 1 9 . *. '',:''111
. ( .. . . . . . . . . n.. : . $ :. ih copsultancies 2, l 52,00 30 20.00 .32 3522/.00 ' - -88. 1-7 1,2. '.3-7..3$ - 1 ' 325.5 1.,' P ' l Q'0 ' k*a i. ! , , , . . . , . , . , - . . <.
. . . , . r..i.. . Local Sta/ 1 ,4 50.00 '- 1.,4 B' 9.':00. ;..- .. ' ...5$9.4 0. ' ' - 59',4.0 . . X. 2,00. ' '
. . r ..: . . k . .s t r ,.
' '' ;. ' . . .
' ' %.' ' ' 83 l 80 l 52'9 .94 O 52 . A nk'k. . Farm Inputs 1 7,039,78 20,301 .09 37.34 1.68 . 698, 14 . , . . . .
i . :. ->. ' 411. eration' & Maint. 1 ,020.00 l ,580.00 2,600.00, . ..,4) .79 64. -..7 3, l 06.5 2 0.60 .,''.'.' t
..,. .. # . . 'ï Travels: Int-l/tocal 250.00 1 -1 20.00 1 .3.70.'00 .' -. .1,0.,'?25 45.88 5-6. 1 9 O.o-o ., ..tt . t.,.fm . .
t ' X' '- -z;'3%11. 1'5 ' 31,9.45' .66,. 6.246.-811- 0.63 . ''k3 ' ' ''YBase Total 56.164.4. 2 96.302. 16 1.s2k46.6-k$J. . ,)) ;,.j. -, . ,, . -v..,,. j,r,j ... -( . . . . j j: . . . j. . y .. y , .y g g y j 5 jj 4 y y j ,3 Chj' % iP21 C
.O 11 t i ngzll Cie: . S44 6.43 4 9 08.22 ' 1,03 .5.j , 6 5 24 1-. %.1S 20 1.. 1 0 . . !j 1 . ..
' ., .
. . ,
.
r :Rrice Continconcies 22756.98 14798.57 ,
' 3755 $..55 .9.32..*3.:9., '2606. ..3$2. : . . 1:5.3 8.71 ' *(k3.9 .*f''/ h( . . v.e . d ' 4, yTotal Cost 84367.72 1 1 6008.95* 200 376.'/7 3 4$'6.89 4'7'b*3.08, ' 820 9. .77 0.58 u %jl. r x 1 . . . . J
. .. J . . . Lj . '
. x 'jI . . !
I ' ?i i . JMï i:q;41
. . q ' jr . . z ' .. . . . ..
' - .z.t%ta:/xk.x-.<J ...w ='Jtp.=- 1-k.b..'' >.v''.='''k:i, .. -'a. k'Ait'-'îaah!u- - ..-&- Jk. a -.x. ...u..-.i:'t..ki' ' . :r'-.'z25.w.,''*''!.'.Q'&-' ' Z- .v 'd - - ' -'-..*. .: . . o -.. -
8.
The projed will be financed from three sources: the ADF the GOM and the(Projed Beneficiaries (PBs). The ADF will hnance 100% of the forelgn cost amountingto UA 4.75 million or MKw 116.01 million (57.8% of the total project cost). The Fundwill also snance part of the Iocal cost relatihg to road rehabilitation and training. Thecontribution to the Iocal cost will amount to UA 2.10 million (25.6% of the totalprojtu cost). The GOM will snance aIl other local cost amounting to UA 0.95 millionor MKw 23.19 million. This is equivalent to 11.6% of the total project coe. q or 27.5%of total Inral cost. The balance of the local coqtq, amounting to UA 0.41 million orMKw 1Q.Q1 million will be financed by the PBs. These cost relate mainly to 25% oftheir contribution towards procurerpent. of farm inpu? and seedling. The PBs totalcontribution is a* ut 5.0% of the total projed cost or 11.8% of the total Iocal cosl.The source of finance is detailed in the following table.
SOURCE OF FINANCE
Source of Finance
In UA %000
Source LC FC Total % of TotalADF 2.10 4.75 6.:5 :3.4GOM 0.95 0.95 1 1.6Benesciaries 0.41 z 0.4 1 J=.lTotal 3.46 4.75 8.21 1(*.00
9. EXPENDITURE SCHEDULE BY COM PONENT AND SOURCE OFFINANCE
The expenditure schedule by component for each year is show X low:
Expenditure Schedule by ComponentTn UA M illion
The expenditure schedule by source of snance for each year is shown in table
below:
. vo of
Component 1999 2000 2001 2002 2003 Total Total
a. Nursery Development 0.21 0.15 0.16 0. 17 0.1 S 0.87 10.6
b. Crop œ velopment 0. 1 0 0. 1 1 0. 1 l 0. 12 0. 14 0.58 7. 1
c. Research & Extension 0.04 0.03 0.03 0.04 0.04 0. l 2 2,2
d. Capacity Building 0. 14 0, 15 0.1 5 0. 1 5 0. 1 6 0.75 9. l
e. lnfrastrucmre 0.35 1 .24 0.30 0.35 3.4 1 4 1 .5
17 Project Management 6.67 0.43 0.65 0.23 0.44 2,42 29.5Total 1.51 2.04 2.34 1.01 1.31 8.21 100..0
*
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. ADF ' l . l 1 1 .83 '2h- .t'1. 9. . T' . - 0.72 1 .00. . 6. .85 83 .4 q '. t. ' rrj , t , : . ,: 21$. . > . .1 z : : I . .1 (5OM 0*.35 0. l 4 . 'h IJU' iù. t C--ls ', .$ '. :d.!14'''K. .. ;- 0.25 ' :0..95 ' . . ' 1 l .6 ' . ..' i',
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YTj e prbled will be impl.em:nté:d. oypTft, . . ,' . ; ,! .i/. ; - . . j ' .-. s . . .Prolèd Year 1 (PY 1). The implementàtibpx ,sc-rj .e,.d.e-vqlp i.s à' hown in Aùney 8,., . '*'./2 .
. % % .61.1. PROCUREM ENT .'
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Proled goods and servicef' 10. ,. ,i . . , j). . , .. . . . . , ,j, ivyjj. ,as t u s j j,j jg. , .,( jj q j .jyc , jjrj j. ., s . ,jjalccordi.ng to the ADF Rules and .prqtèz-du.r-es .f.b.. .F,, procp. .
'tanrdard Bidding Documen' .ts. Prnc. u. re.. iin'*'. eth t '.p.f.'' ci:it. wpftks'. u' ,.t%. rtc, âdtt aôd ab2 Mi'l,dt, 'ing .('E, . , .j . r .,
< ' . ; *' '1(,k qjj/ . .:,: . . , ; .;: ' u. . lk#!z x .
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contràct'q will be carried out throug 'h 'N. 'àti:pal. - Caomp' ,1. tltlvi ë' Bid'. di:ng.. (N. C .Bj'); the ..k . 17' .
. , I . ' 7- lt!!5q!?- . . r - - l 7 - . ' -- .,. i.-'> - . ' .' jr -.Iocation and the size of the constsp. diont ',W utiks..u. -t?t:.pàb' è-.y,rldt'wgqli1 a'kèp 4t: su.te-ja th at they ) .;. ' 1 z . ' <t'...;i : . ï, . 7 . , -:.J .. .- a . ; ,! a re ù n I i k'ely to attra ct bids f rom outs. . -, ïde... .M.W. I-à'Nl#yjsce'o
. .n2t' t'rà.ct'. q wK' f. .p'(. ' the .ssupip-'lty*sp'' *of ve'h? i'clès . . ' :.' l .. ;..: ' .,k,' . ,. - -
'.t ' 'riz - '.- . ..y ..p, . z '! . ., a nd motorœ cles wil ! a Iso be pro, cured 'thlouœ. ge h., . 'A. ,Gy .,% k ,' ..k.. Thst r. . e cö, nutqadt, for ..:ffi' ce .. ,:g.1 . 1 ' . ' . sj,x y jy j. . .. jj., ygn x-j jj ..j t ., ' .. jj, yq. ,.py j' 'gj ,)u. y <g y.a, $ 4uj a , '.% .. cak' 'jt :/ R k''p' '.( . 6:, c. u re m. e't). t of ' $ '' .. '.'equi pment, a n d: O', .frlce . rstationel . WI? . , :
. .. , .. ., , . ..N, .. .s . , j . .. .., .I . , Aj ?. , . .I I . ài- ;- , . . ' : ' -: . .thê Technical Assistant, Shorbterm Gçj 'R.'$-/.' Itytr! çy 'Sèryicês. . '.e'r.h'al. Au. ,ditgt ' and ' s )',. . ï ;-.. . . . .. - .i :,'r: - , . . . . - . , .
Training Expert will be undertaken thro. tltgahl ù .limlt' :wjz.co. .rt). 'p' etition. ' b. ased. on short Iist zl . . , . . . . '
. . z jtjj n j. tyj .; j.. t q j ulra.. j j . j .tk ., '. . ' 'w. ' j tt tjf : ! p '. ,'k. j c e'st' . ' . , . ' .using selection procedure of combinih-g 'tpc k .
i j , . . '! .' 4.: . - '' . * ''.1 2 CON CLUSI ON AND COM FM, T'E' 'N iD' .A4T ilOi'N*. ' . ''. . .. . . . e. . - . i .t . . . :' ' *
'
. :. ...m ' ' . - ' 'k ...: e.. *. . . . w. t y, .# ,. ) . . .; , v. . . .
;../ . . ' .'. *R #.r-- .'!lk..Conclusion '
.,y.
' . ). ' '' . 4 .
Macadamia Smallholder Developme'ht 'ipflol''e' 'ct (MSDP) .,ha.: â high ' p rio riltyq' 't. 1 . ' .
' - . , . f; - ' . -. ;
' ; . -. z. ,yj' )r.jè-.
. .. .. /.t!f,'.j amon. g the GOM develnpment oblectives:. Thsè 'lpgo.lpd atq')g a1t a'llleakiàittiéœgc po..vk yc ' .. . .j . . ' . .r . ol-,ç $44 j j;. . . .) .. .. . . , . . tjq . .4-r , . . u. !:1 the 'tura I a reàs, by ràisi ng rural incolhes ansd: . ldxkikelb--ii.fyy iing . th e ecôq'fj ,rfj,., lc .b.,.é.ses, M SDP ; ' t ,
. , . t . , . . . . . . .( i I I a ls'o foster an ena bli ng environment C'for' /p: titafte vçect 'or d: *êt. .gI*. pfim Qrzît. th-' 'rouj h :::3-.W
. . . . . . . . . .; ' F $ v .
f.e . . ' .J( 7 . '* * '' 4) i'mprovems ent of the essential agricultu'ral s'. cl:v. it#s to farmers, increàsing, iknvestm.ént . ' .
j I ' - .' -,in rural i 'nfrastructure and appropriate ttaining; packag,es. e,-
) j , , a. ly A' .I . - r
, Most importantly the MSDP will f'ocus pn othe sm allho. Iders, w.p. m. e. n farmers, , ,,.:
j ' - s %' ..' , j2 $ . ' y i. , ' . k' youth. ; and the groups with subVtanti,alr,pntap, pède, '.gt t.owth ,p.le,te/n. tiat. One cf thkle mostI ,- . l ' . . .,
'$.C 7 ' ' , . . , . . , . . t -! . ' .p notable stratenies nronosed under t'he nrm e'ct i# strènnthenity n th: farm er nrobos Dr ,' . . I -'' ' ' r . . - ' -;.--' 1 - ' '&'' ' ''''-' '''-' ' . . ; '.jcreafing new gfoup. s were appropriate-o,,Th, is... rwi/l emepcwer th. 'e s. Ma. ,1;1 ho. td, ets. by ,, k. ,,ienabling them to determine their own àff, ?.à.i',ks'. ié t-ecànhs of théir agricultural' actl%itles. tk;
1 he foca'l '',p'0: i'nt f-crtfarmer p articipation io t.h..ë prolle'ct ' q 2J1Farmer g jroups will in future be t
l desi g n a nd i m pl em entation . B* y, 't' a riil. rtjln. l
.)j th'e f alhm er gc rou pS, MSDP vwirl'l ''j .,.
'j,p r'O,p.() Sa l St' cçy. . . , . . .
.
remove manv of the constraints faced. kbv thê:. m ahd helip im, prove smallholder -.çs4j . '
, ' . 1 ' . : ' ' ' ,k - ' . ' -. . ;produdivity
, Ieading to increase in income â'ndk Wëlfia/è. jI . . . ;- :
.- ...%
$ .. . . -
; j.. , The MSDP emphasises pove alleviartiori as its primary obled ive. It is ' .
1 - ''' k fi ialily sustainable. It is ''-technically feasible
, economically Justirlké.b. Ie :, add nanc , .I I - . '' ' .formulated within the framework of the'tReform P'ronram.Me activelv'beinn' nuréued ïI '''*' . . '' ''*#
'
' ., Jby the G@M with support from the multilateral institutions. The MSDP is also in Iine .,'ë: tl: L') t -' l
. . .. $ :f;. - < zuk.
. . .. j..
. . ' . . .
. . ,q)jv;. . . . . y . t .. . . ,. . x j;àjk . . . ,L , s; .k ' .t; v . '. . a.: ' dk.:kxx.'i,ial..wu- .ku.iFs:kx Lc 'J .....X . -=..L/ze.s-..= :' j '' e.. - ... . -'r,.Lawxl,x ... . x-.xz-.rx. :< . a ..122-.:.-'.. . Y7.,... -)h'
with the institutional requiremen? and implemenvtion strategies proposed underthe MASIP, currenty being formulated by the GOM and the donor community.Finally, the projed is in Iine with ADF V11 development strategy.
Recom m endation #i
lt is therefore recommended that a loan not exceeding UA 6.85. Million begranted from ADF R% ources to the Govem ment of Malawi for the purposes ofimplementing the projed as described in this report subjed to the followingconditions:
Conditions of Enta into Force
The entry into force of the Loan Agreement shall be subjed to the fulfilàmentby the Borrower of the provisions of Section 5.01 of the General ConditionsApplicable to Loans and Guarantee Agreement of the ADF.
Conditions Precedent to First Disbuo em ent
A.
B. The obligations of the Bank to make the firs't disbursement shall be conditionalupon the following:
a. The entry into force of the Loan Agreement;b. The submission of evidence, satisfactory to the ADF, that:
i) the roads identified for rehabilitation, as part of this project,are included in the National Road Authority yearly maintenanceprogramme (para. 4.3.16);
i i ) six (6) qualised nurseries managers and two (2) qualised drivershave been recruited in accordance with the standard governmentterms to facilitate the projed implementation (para. 5.2.1)) and
iii) the two (2) Iong-term technical assistance staff, the short-termconsultant on group dynam ids, and the short-term trainingconsultant (collectively referred to as the 'Primary Consultants)have been selected.
D-ther Conditions
Within six (6) months following the First disbursement of the Loan, theBorrower shall provide evidence satisfadory to the ADF, that alI the PrimaryConsultan? have been recruited by the Ministry of Agriculture and are alreadyperforming their services.
hI .
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We *>1 =Z -XA -=Q tv- =:. * --w X . .- w . *< .0 t/ en %e çn tm. = < = < =w) o .
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= = < = w. < w. u = = w = u2 = u' = = = = w' u' = < n.o o o o K tn o o o oœ .= = o > >x ... n. >x >x ta ta :>x o ;>xr = i! 0$. ' = it = * !! = = E il = Ou. =
ta ta O = tz e4 tz t>X .- = = w = r o = = = ul :.u = u) =' œ '-m < '-' =. te tv ' = < tv = te . r4 . tue m X > >- I o x X o > I I & 1 o
. . . . - . . + -. . . œ Ph1 - Phl* CN *'* CS CS M *- * * CV ' ' ' '
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Introduction
1.1 Orioin and His-torv of the Po iect
1.1.1 Covering a too! area of 119,140 km2# Malawi is a landlocked countryt Iocated in the northern' part of southern Africa. It is O rdered by Tanzania in thè north-eas't, Zambla in the north-weqf andMozambique in the Southern part of the country. lt stretches between Iongitude 32 and 36 E andbetween layitude 9.30 and 17 S. Malawi has a m pulation of 9.5 million and is the fourth mostdensely mpulated country in Xfrica with an annual popula:on increax of about 3.6D/n.Approximately 85% of the toll population live in the rural areas.
1.1.2 The physical geography of the country consiA of a low Iying area of about altitude 100 m inthe far south (Lower Shire Valley), and rises to a high of more than 3000 m asl (Mt. Muylanje).However, mœt of the Iand is Iocated between 1000 and 1400 m als and is jart of the SouthernAfrican Plateaux zone. The total Iand àrea include.s 28,208 km2 (250/0) of lnland water, mostlyLake Malawi.
. e
1.1.3 The main rer urce base of Malawi is agriculture, which dominat% the economy and accoun?for 43% of GDP. Per caqita GNP was peimated by the World Bank in 1996-% be US$ 200 andabout 60% of the populabon Iive below the Ievel of aY olute m verty with an annual income of lo sthan US$ 40, per household which classifie Malawi as one of the poorG countri% in the world.
1.1.4 The Macadamia Smallholder Development Projed (MSDP) originated from the Government ofMalawi (GOM) golicy which aims, on the one hand to improve the welfare of the smallholdet sedorthrough provislon of income earning opportunitie and, on the other hand, to increase foreignexchange earnings of the agricultural sedor through crop diversiscation. lt is on this basis that'theGovernment requlqted a% istance from the Bank to snance a Macadamia nut produdion 5ndmarketing feasibility study. The Bank re ponded favourably to this requeqt in view of the fad thatthe Country Strategy Paper (CSP) for Malawi advocated the development of agriculture in Iine withthe above-qtated Government policy. The study was Ktarted in February 1993 and the final reportwas submitted to the Bank in June 1994.
1.1.5 The feasibility Study report prom sed a projed to bq implemented in two consecutive sevenyear periods, with 3,500 ha of macadamia tree planted during the 5% seken yeas. Thesmallholdes would be grouped in orchard blocks of around 50 ha on customary Iand, under the'management of a new institution to be called the Macadamia Trust of Malawi (G M). Thesmallholdes would serve in this arrangement as labourers to the MTM and would be preventedfrom having their own individual tre% .
1.1.6 Although the study established a sound basis for the o pansion of the macadamia industrywith the identification of new produdion areas of 10 agào-ecologically suited region/s, it failed tocapture an appropriate strategy for involving the smallholder sedor in the industry. Theimplementation of the study findings wàs m stm ned by the Government and the Bank as a resultof Government's reervations on the methodology proposed by the consultan? to integrate thesmallholder sedor in the project. The other reason was the delay in replenishment of the AöF-VII.
1.1.7 In June 1996, the Planning Division of the then Ministry of Agriculture and LivetockDevelopment (MOALD) prepared a projed proposal for smallholder macadamia nut development inMalawi. This was submitted to the Bank for review and consideration. In May 1997, theGovernment invited a Bank prepaetion mi%ion to visit Malawi with the objeOve of reformulatingthe projed in order to focus it on the smallholder sub-sedor a: expresmed in the Government'sprojed proposal.
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.1.1.8 The Prepara:on Mission visited Malawi in J,M.1y. 1.997 and. one of itl malor sndings w'âs that ' .' i dequate marketing and prét-agbtng rza'tcxltitito-q. . fo' r the M'academip xmallh ôld' .er j to'' ' wer:. ,4,-.) '' 1there were na . .k j ph - !#:j . a & c( . e ' j; .' '*' - 'î
-rhe Bank contraded the FAO to condudt a stud. y,fyklirlhwtyd' ''at fipdjlkg: Az- l'utions'mFtö' . 'the m'aikling and --'. .LQ ' ' J ' . 'k J. : '' 'k
'
.EQ I ' ' -' ' ' '' . - ' 'prdce-tslng pcblems facing Macadamia smyallhtpl-de.yl. i .T,h.is W4.s döéd' bdedrin Feb. tuûry/Ma'rch 1998, .,1 : t vt- 'h. 'Ié 4: lâypzriyi4' a Ib r1 à' j, o'. rt al < A' lj' n ek. . 6* : lk ' $land the key recommendations àre attachèda-tk-a .
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1..1.9 A Bank annraisaî mitqion visited Malawi' 'in Fkb- t$' 4 i'rv' ./Macchx, 19'.98 aQ' er d u'e coqîultatipns wjth, ,'&,'fI ' . l * . . . : 4 . - Qt 9 yr.j.- xr j ;' w ' . ' ;.j. j .. ; ': ; . t ) e ' 2 . zj .. '. p à é f : , , .t.h(!.. Govemment. lt worked closely witht t'hé''.?.:X. @. !, .a u:e'lit. wh, o IWa.6, s'1 ud. 4yieg .the'kn. 4 rk, etfn' g xpn. d .t. ''.
.1 . .. . aw l.#.lz ; .y ; . t y ., u. rj .Lp e.jyl .0 '>jvxts. . : apw :,2 . . . . s . k ; h - n . . , .! .Nrocpqsinc constraints facinq Macadâmiâk. Nklqllh, eltderts. : Th' : .1ib, app <I:.'à. 1 rexE . rb 1: ,b. asèd on ' th, e , ...
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. y; . *),L piw. -.a4': k. y . . . œ , . j j' '''$ ij; jzl .<k x $) :t ',.zlrX'r ' ' . : . .; 7 . . .f) nding s of the, lggGfeasibility 's1' 'ud y repoljj. it'h es g- pyqe.. lilp R'tp '. eàt ''p rdJkct,.. prp .y,. 7.4;. 91., fjr othe ssm. .aJ.'l>dI'd'er' ;.' cG'ttd'i'n' 9.Ga Ihîtdiàè:b. tjikïe' n, dzti. 'e'' hèpof '.t h'' . PAVOV'' '%* J ' ' ?inkagration into macadamia production, the . g. , . . k.. .,.s . , . - . .e. '..- Ma- eu.a,dam ya ,.. . '' 7 ' .;.': . IJk. ' gjkvfiq. :k. . . .j ; k. ...;oq (! su v ykk ) l :jg qr r;zt vj. . :.1. ,qu .... qya t ; . e , .. . Jqr . .M1 a'rketing aj nd Procpqqing Report , ahd lth'e 'miqrq-ip' n%-.v-l# r,#' lt.lvqqtl-'.. ,gatlot.s .duil-ij. 'g.. .g'trh-. e .prep. at. -Yt''l.un àhd ,..- .
, ' ' - ' dY' fj , rsktj.r - ï4pv/o. -,j .' ict ö., f' : i ts ' 'kZ.n' d . t 'o ' /' bi ' 5' , 'n é' 'ntè ''d ï by ' t h e :' Vappraikl of the prole . lf approved, it witl .* th è . .
''Group in Malawi. ' . ' ' ' ' -. -,''t1Bank k. .: ?,jj . ' '
' . . :. . ' -' ' ' ' 5 ' '' kYl' '4j( . e . > & . k . ? . 41.1.10The proled is in line with the A'UF,nW!I IMtrî.dslrll,g kpollcy, w, rhtc- h leys iemphwabjgt Qn poverty a:' ilevia's' on- It advocate a smallholde-i - s--trita-et'e'FgLyzykéfTq. im,c-koe :,4n. èi 'atioà andf- v-kftod, sllcurfty- -. The ' s', 13 , , .t e . -. t ,. . .e , . x ., y14- + z. . .... <.tu . , . '... ' '. ' . . . . .grg
ylect àls. o suppoA .the gove. rnment dev/wtop.mjkçrjt ybpey ë- iye. 'P,ft'erâdicating .::0 ve .' , th *ugh the . . . 1. .. ; -. , . . . , ; jdiverbification of the ecohomic base
, G neclally thè/àonclu.llture sèdof. k1;
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. . .. . ; - j:.L ;1.2 Pedorm ance of Sim ilar Prm ete. :in Ralàw i !Tt i ' ' *' ' * ''' ' - ' '' j j t p. ë , , . '. . v j yjy . ', . () ' . .. .y yt'
. L -' .. , %'..f ,.xy:-k, jjx :. t-j.. y::j a. cr, o. ,, pr. oj ea- i q. M a lawi '. .' .B- ut it. has ' ''.'' '1''.Vz
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'1.2. 1 Thq .Bank Group h. as .. not snancdd éhy; [email protected]. , gg. , j , . ; jagjm sx. syjjssjyjg. ,rj m keys . .,,,?,jdt'a nu1 mb. er of agricultural projee' C pqiatq'dksëctor 'adjtës-
.t- Iïn'èht progfia@a'9eQ.. . ..,. , -; . y . , . . . . u . . r . . yjj2 . - -! . . k : . ., - y.,a'Ilevia-ti.on.k ' . . ' ', ' . , ' ; . ' .: . .. j,' .
. 47 wl . . .1.2.z! The Bank Group commitmen? to th'e aalric. zlttl4e. vsedor. ac cöunts foF 21i.7D/i, ( UA 83..54 - 'j,' l e . ' - . - .
--R .!' . ' -' ; .. k : ' %* 'L?ï: T'. + '' , * 'b.M, iIli()p) gf the total. In all, 14 agrictfltural prolectsa' svhya. ke, . rN,
, fztplr be, #fq.. fitaaaced siin M,.'a..)là*i. At' pr%ent , 1- ' :v :, t .' . ' '* 1 . e ., . 'r . .:. . .. d ( . .
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6 lagl ricpltu ra1 prolectq a re on gOi ng , o. f: ;;tw, 'h ic. ;h,u, , F. . kwafljè--j' #y, :.t#J rd. ;,e#v Mlopm, qnt' , prölect.q'' ,, op'e sect, or -: d txï. ' . l - : y .z jjjj . j.j, y . jjvoxqa. gck zekelopi meyt *prtjecbk'' Y he uvï'Ab -.1a.dltlxm.ent, One agricultural Sqrvice, one f ore-qty .ty. ).. jx : yp ,j , . .- . , ,.;;. ' t j ''. ' ' jbRural Income Eqhancement Proled has not been d ècl:' rè%
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1.2.3 Performance of these projectq havè. ima p'ezvqd,-kint sécent time a'nd h'ave beén rated ' '. t . ' .f ) ) k ' -- . --' ' ' -l) .-*A- ' ' ' - . ' tp* . .. r. ' c.:sa
.tisfactbry with an G ception of the Nationa,l. rLikp-qt-c 'ö..tk Pr:-lect , w'hich (aced' e nblmber . of .. ! k
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2. THE AGM CULTURE SEG OR
2.1 Salieny Feature
2.1.1 Agriculttlre is a major player in the Malawi socio-economic landscape. lt accounl for 43% ofthe country's Gross Dompeic Product (GDP) of which about 27% originate from the smallholderse or. ln addition, it contributG 95% of tool G port eamings, of which tobacqo, tea, and sug?ralone accounl for over 60DA. n e sector accounY for aY ut 87% of tool employment, providGraw materials for a* ut two-thirds of the manufae lring se or, while at the same time,considerably dominatc the commercial and disbibution slvtors.
2.1.2 About 850/0 of the population Iive in the rural areas, and derive their livelihood dired y fromthe agriculture sedor. A* ut 60% of the m pulation Iive below the poverty line with an annua!income of lœs than Uss4o/annum. The rural m pulation, with food deficit, is çurrently H imated at700/e.
2.1.3 Out of a total land area of 9.5 million ha (1996 e 'Imat% ) cuslomary land accounl for 6.6million ha, public land 1.7 million ha, Ieasehold lant 1.2 million ha and freehold land 0.053 millionha. Of the total land area, only 4.6 million ha is under cultivation, and is densely Xpulated. Maizqwhich is Malawi's Ktaple food, is the dominant crop occupying a* ut 28.3% (1.3 millipn ha) of thecutvated area.
2.2 Structure
2.2.1 Malawi's agricultural s-tructure is commonly charaderised by two broad blocks, viz:smallholdes and Gqtate . There are about 1.8 million snvllholder farmers, broken down into threesub-categori%, namely; (i) smallholder with l%s than 0.7 hedare (350/c) who cannot, with prcenttechnology, satisfy their own subsistence requirçmenl from their holdings; this category ofsmallholjers, remain dependent on off-farm income, or fx d aid; (ii) smallholders between 0.7 and1.5 hedare.s (40DA) who with pr%ent technology, normally satisfy their svbsistence requiremenYand have the potential for modp-qt cash crop sales; and (iii) the remaining 25% with over 1.5 hawho are already involved in cash cropping. The Smallholder sector occupies about 80% of totalcropped area. CroN grown are maize, pulse , potatoes and cassava. Other crol grown aregroundnui; fltle cured tobacco, cotton, rice and various vegetabl% . This category of farmers haslimited accu s to credit and extension service .
2.2.2 The eqtate sub-sedor occupie a land size of about 691,000 ha, of which 170,000 ha arecultivated. The major crops grown are flue cured, and burley tobacco, which occupie.s a* ut 40%of the estate cropped area. Other crops grown are maizè, tea and sugar. Unlike smallholders, theestate.s get preferential acctuq to credit inputs and support servic% . M a result, the edate.s havea much higher Ievel of technology and achieve higher yields than smallholders.
2.2.3 The Iivestock sub-sedor accoun? for only a* ut 3% of the GDP. According to the 1995Malawi Statis-tical Year Book, the total Iivetock m pulation is about 2,205,771 of Which cattle total796,733, goats 977,126, pigs 2245,175, sheep 84,269, donkeys 2,463 and hol-s% 14 only. Of thetotal number of liveqtock, there are about 3,500 grade cows, and 4,600 exotic pigs. Poultry isG timated at 12 million birds. The Iivekock feed industry is not well developed and grazing isbased mainly on natura! paMure.
Recent Pedonnance
2.3.1 Since independencez agriculture contribution to GDP has varied widely, growing by nearly5% during the 1971 ; lo/o per annum in the early 1980s; and about 2.7% in the period 1987 to1990. Between 1991 and 1993 growth rate averaged 2.89/0. However, following policy reforms,the sedor has continued to register remarkable growth. In the 1994/95 Season agricultureprodudion grew by a robusl 29.704, and in 1995/96 growth rate regiMered clœ e to 3894; the
,. .. r: ;'% .
smallholder se or alone regiMered nearly 40D/o. performance could have l'vzen more remarkable.' jbut for the drought of 1996/97 season.
l . .2.3.2 Maize produdion increased from 941,15û., 0, tonpm i.n 19.9.3/94 to 2,038,:,0... X. ' , tonppq in 1995/96.1
' ' V? ' '' h' ' ' ' ' ' ''Prodbdionj drop to 1,565,000 in 1996. / 97 v,;.k9.1s to 112.6Q4, ljt. Pul<'e.s llowever, rqgistered'. ' . ,r ;,!Ir .' .. > --'. , ' . .i vu..s . . .suqtainable growth, from 78,300. tonql .j.p', 1,9% 3;'/,9 *44tb,jt1'8.. 7,.,48,/.5. ,q 70 topne. . lh .1:9.96/97. ' CasMva. . l . , . . $,4't,,1. r . $. . . $.., ( - . rycpröd udionl a Iso increased from 250,100. mtd.prpcpqwz .t4t 6 ./6X3o 2 /q0 0 rtrbài zqs .tdu ring. th' e pepod: , under:
. . â . ' .u: kjj gj: jj ca . ajjj jt; ' :o, jhj .jrjjçj' m' .V *%. y<p , g' ro (J n d n u;ts g1 revié'k t Growth was recorded in othkt cqùN .#.b ... j. ., , , , . . ,.1 tto-fi swl - ' poot- and * ya bean
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2.4 Aoricultural Institutibns'% a
2.4.1 The M inyistrv of Aq ri. èu Itu fe-, a'ndt-u'ijeiù. W:ibly .:(M AIf.).l Th. e M-jkitâ' li'y tl'. . hgs.. thq over4tllrtiponsib llity for the. devèlop,nient qpd j d',iito ..,fù.t.$4 l'pxttop' ! qf tiè. e,;beg.: vrJ ii tijtl 1.1, sqctor. Thq ej-mip. isi-t 'r# has six. t < . ) ' . Y é GJ ; . ' . :. f ' . w ot'kNr4' X e' v . . - j'z'g. N .' . . (,jj e1k:, - f.m lrii irik i (:::. .(Erl, , l . jl:jl 411, j::m I-.l:f 1-1r.1 4:5: 1'11 1t:!E;; , tr:jill' !i!$k,. 1r-p i 4::: 1r,1 lk:lr'j dEit .-47;:, dEly j!!!. . ë!dl. --,- Q,.. ,k- smt.. g jyjjs ..Ir11jyj;,. :1k:1k:, y.-.;,by. y:f, . j4,j:.nlt41bi.. s;;p..
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y ; .. .I under which it provides farm inpnl- andz,purdhe'k.s cro; yrbduce.. Because of liberalization,, l . ' E ' ' :*M.) ' ' .% 'ADMAkC s position vis-à-vis the marketing sector kak p mewst t d' ecreased
.
j ,, y . -.., -2.4.3' The Tœe Nut Authoritv (TNA),@as .pqtablis' h#d. in ' 19''94:wi'tlz funds frqm. . the World Bank.. ; , . . . . . . . . . . . @s ::; . ' . :., ; . .through the MX
. The malor öblecb. . kk '.p/ 1h, è...t.T' ',N,, A, ,?is, .rt'p proln.qte $'lR4 devëlp p'm. ; 'ént o. f trléq nuts,. j .. . ay , 1/ ;. :. p; . L . . . : . . ''nce its creation, T'. -NA' h as le'qtn' ''Jhèbli'shqd- rp ore.rt' hY an 300 haà #crlosf tte country.including macàdamia. Si :
, , . ;., . , , ( .y ,. ; t 1 î ;7NX stiffers fröm human as well a.s financiàlx'roöqkrce.. 'constraihis to effectively implemunt the
k: Ismallholder trèe nut development pfogratm.
2./.'.4 The Tree Nut Growers ociatlon ,.(.T@GA). i,s a. . nop-tfa-ttllDry essociation, whoseobjèdite are to repreent, advance and proièd th. q imtér-q'tyftreè nut g. xowers. P. reently, TNGAt repi-denti only eqtate growers
.
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1. l . . . , .2 .4 ,5 Thé Bkum- Aoricultural Xesèarch.. S
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, ('B. h.- RS. ), siiuà' ted nqar RlBntyre, ispMponsible to the Diredor of the D ep att. r&. çit.jè-f. Agtplculdtkllr4yl Research a'n'd Tèchnical ServiceDARTSI.IThe station condueq on-siation 4nd dd. à:p:;ti'ti/t outç.rèac' l)' researcll ôn tfbod.. and: çash crops.(E , s. . j, ; ,, j yrj .j . , .y. . . . ., .
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.'he 'Iiader is conduded through regjoaall'k l/astd. ctprnniildity-res4plch, tepms. Tree nklt Cpinmod. Ii'ty7 . . j v s.-y.ts. ; . x. . ;
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( , u; . . . yTèams in partid. ular, de'al with >s'l$èw,.' *çpff:e ica'd macadymléx TBARG. cpo avâ'il v'a'r'. :us hew. lp' j . . . . ' 2 tr. t - ' . . .... ; ,t4i . z.v .nhacada 'mia clone and is adively involvqd irl r'rés-earchvp I), 'Jntégtjtod 'P& tyMan'azgem'gnt (IPM).
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j ;- ., . .,, j ;. ... . . . . . y -. . . 1r'. .: - '-i kural Finance Corli',n'' ânv (J$M'kuJK $)' was estabtished in 19'93 wjth suppoft from,2.4.6 The Malaw ,thq Wtirld. B4nk. MRFC took over activitiG Jrlj miL t oliè bmallhplodçiiAçi/.id-yil'tural,.c,red'it, Ad tlrfihi'tstration,ejtablished under the MAI in 1984. Thè n't'' :in obgex-' Ive of y',MPJ' t:ic.kit to wsçqpb.. rt srfaallhdlder farm
$ ' . .... . . . . ' '. . . .tlevelop 'ment. So, -far, more than. 10t,000 srmpllloldq; facme.rs ha,kê-ambtaiined-- Sh ort-tzrm ' keason'al. . j. . . . . + ;. . . . . .
.
Io/nj. .one of the challenges for MRFC id td exp. afnstsiyk .porlfèliio and. t,o vetqtgre intè managingnnediu'l 'and longer term loans.
l . . '- '2 .4.7 The Malawi Exoort Promotion Counàfl ('V'EiP. ,C) is a sltutory body that waS Gtabtished
. .
. p ; . . x y... .g .in .t971. Ilts main fundions are to collel in.fdjmatibbnfll.ov:içprodsuc JavMli:l'arbl: for't.ex. pert and: to .èolledI
.. . ' ' . $- ' :t1 ; . . .v. .;- - .information On roreign markeY and disse
.mitzte 4.':':tO Iocal tiih' éhltlràcurers and producers. M'EPC is1. .. .
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res. ponsible for the exm rt of Macadamil,
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2.5 Policv Aoend-a
2.5.1 n e major Government qolicy agenda in the ajricultural sedor focuse on raising farmincomes and promoting economlc growth while conservlng natural reources; imqroving fx d self-sumciency as well as the nutritional eatus of the popula:on; and, expanding and diversifying cropand Iive ock produdion for local and exm rt markei. The major Strategi% employed by the GOMto facilitate the realisa:on of thp- objeYvH focus on policy reforms and jenera:on anddissemination of appropriate technology. Currently the GOM with donor suppoo ls de igning anAgriculyure SfG or Invpqtment Programme (MASIP) as a major vehicle of tacsing rural poverty.
2.5.2 Since 1987 a number of poliW and Structural reforms have been instituted to facilitateeconomic growth. Several adjuMment programm% have been implementedk since the 1983including measure to remove the barriers to enhance raqid groMh and 'development of theagricultural sertnr. Some of these are the repeal of the Agrlcultural and LivF< ock Marketing Adwhich removed aIl rêqtridions for entry into marketing of aIl agriculture and Iiv/qtock productq bythe private sectnr; price Iiberalisation; the Fertilisation Farm Feeds and Remedie Ad which openedthe trade to the private sedor. Other acts of Iiberalisation include the Seed Act Special Crops Actand the opening of tobacco growing to smallholöers.
2.5.3 The imhad of policy reforms on agriculture performance has been a remarkably satisfactorygrowth rate since 1993/94 ranging from 29.7% to 38% that has exceeded expedations. Gopdprodudion performance was recorded in aIl crops, including the eaple maize, rice, sorghum,puls%, mtatY q, cotton, tobacco and groundnut, (para. 2.3.2). The government is determined tosuqtain the policy initiative to ensure a high growth rate of a diversised agriculturq sedor
2.6 Land Tenure and Land :se
2.6.1 The land tenure system in Malawi categorize.s land into three dikinct groups: (i) CustomaryLand; (ii) Private t-and, and (iii) Public land. Customary land is vpqted in the Pr% ident who, underthe Chiefs ack delegate power to allocate land to traditional Chiefs for use by the smallholdersector. Private land is owned by individuals either under free hold or Ieasehold title, while publicland is used by the GOM for developing public ins-titutions, such as towns and markei or, set sidefor national parks and foreqt reservc . lt is gqtimated that 6.6 million ha are cuMomary Iand, 1.25million ha private and 1.7 million ha set aside as public land used for forpqt or game reserves.
2.6.2 Following the Iiberalization of the Malawi Land Amendment Act of 1971, small holderfarmers, in principle , can appiy to register customary Iand, to which they hold u' sufrud righl byauthority of the village headman, at Ieasehold. Leaseholds are for 21 years at the first option.Extension of the leasehold to 99 years is m ssible once the necG sary formaliti% of survey andregistration are completed. Customary landholders, in general, appear Satissed with this systqm ofIand allocation and security. The tenure system is suitable for the development of Tree Crow IikeMacadamia. The GOM is nevertheless committet to impose stricter controls on the System in orderto curb fblrther expansion of the estate lands. Parliament is expeded soon to consider appropriateIegislation to give effed to a new land policy that will further improve the sectlrity of tenure forsmallholdes.
Constraints to Aoriculture Dev'elooment
2.7.1 Although the improved m licy environment has contributed signiGcantly to increasedagricultural performance, the smallholder is still faced with an array of cons-traini . Erratic rainfallpatterns and recurrent drough? in the 1993 remain the mœ t unpredidable constraint facing thesedor. ln 1991/92, Malawi experienced the wost drought in Iiving memory. The situation hasimproved over the last 3 years, with exception of the 1996/97 season. Due to the high populationgrowth rate, land availability has become a constraint, D rticularly in the smallholder sob-sedor;government policy to re trid the transfer of customary Iand to the estate sedor has somewhatalleviated this constraint.
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' : >!.due to fprmer's irtdb ility to alord the high price , V..'c' ' '2.7.2 The insumcient applicabon of inputs
,I . : . . . . -.exacèrb ated by px r accpqs rœ ds, has conswltrâri.'hedmt,A,%s âb'' i'l,itty.',, otsmyllh Qld tels. t4'tprod,uce êfficiently. .t.' ' kq. t'' è1' : rop Ld'evefégm. zat. p'4rticularly with 'iêqkard '' & :9In 'addition, pe-qtq and disease represent a eon:tral , . ç . . . .-.i h as macadamia. The inadequa'te r*'4. .qz' (W àbd exlqnsiyn se'oit-es into thq jl%. allhold: ,er .to treH suc
.I ' ' '' : ï'.îk:l .:1 . ? i ' ' ' ' 'hr. areas ha .ve amplified the. e problefns. ' Enk-lrop: ..-!>,,èatà- )li ' dxueq./e'toxà. ':..zt) su,c$,..,.a. s soilt erl io, aljd c,ç - ' tù' . th.qApu''--zètn-fp'?lmènkt-r # suuqihTb-le.r.àgricu,ltu're .producb, 'on. .. '-). 'k. deforg-e. aboc has depleted the nattiràl cover . .. z.?. 'E . . . r s; ' ' . . . j
-- ;. - : ?'- . . l . ' . .l, '2.7.3 The pröpœed prolect will supp6' rt titG,..9' [email protected] 4%t to klini.mise some pf th. ese çonl'' r-àihl. ,,+'; d: 'Wi11 be rehabilitated and maihtériq-d ' to 4ésu' ir/e ad 'yq' upie svp. plytyf f'arm. tklputk apd '.''..ik R-oa. . . , . -. . . , .
j . . l . : h * tc e L . ' '6.3%' ' ' ' + . 5 ' . ' . ..b - ' .èNà' cuationj of farm produce, Th. è p7 ropYéd 4'gtisulttpe prlcbcqs, tmter .-the proled, , will ,'be ..,qx
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2.8 Pove* in Malawi ''jès .lk . -:- , ., , . . - . . . ., .1;
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2.8.1 PoveA alleviation in MalaWi is th: # 'â>, r f.öuius of the GOM development programme. ... ii, l . . 1 qzt l t..4 o . . .àccordipg to the UNDP/WOrId Bank assessmeilktt
. p',vt*et-tit.'. 60 lo of. fhe pppkllqtion Iivq KeloW the .k. ',.t; ,. l ' : J .T ' ; ' (.' . . ' J ' ' * wp' ovelty Ievel of USt 40 x r annum. Hpwevef li.tkthe GO@ view thià' ,is an upderst'; atemç:lytvbtqc
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. j * > . u . 4 .( z . . . ' t .doiu Ihot ta; ke into consideration othes 'p' a'r-àfjnéj@psx,.like . .nutlittbn? A'jtfAqy.q to hq-ilath fâcilitie, ' ')
1 . '! ' 1.- . .1 ; !. . ' 'ducation r'ate and sanitation, gender d. ispafiti'i asntla'-jhe Ilke. W.li en ttïeye 'aspeeq are indluded, . $e . . . . , . . ,I ' $ . . . iv.): () . .the GO'M pqtlmates that those Iiving in absolklte povqx'rty,tykWouldëre. , ch 80 Zo of ith' e pop tlla.tion. The j. ï . . u . . y . . . ; . jbasic DaQ Remrt attached to this appraisl
. I iéport pfèyld..e. more'jnsigh' (uof the gravlty' of mv*rty :i 1?1 1$/1 isl I (5j 1/$1 i . '. .,-.'..
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2'.'8.2:*I''nspite of positive rates of econbntic growfh iwjirrs f'ce .indèp endkncq, the i'ncjdeRqqyof poverty- *.:',+. 4 '; . j . , . qjv . .sx. r . .j ' ' j ' '. , . . j j j jj y.j y.a y ra jjjy ja< ;$ ;. ghas remained very high. The economy of thé ço.xgstry .1t' h eavily. degendqnt on srrial . ' . ..k,/ 4: T =u ,'#e ; ;. .. u J . . ib. .ajriculture 'which is highly susceptible to thè kagarilxël lyathqf. . Tttq ytjln/râbilityz eLfrathe economy -, ' .l
. - uk v. * , y 'R î 1.-. '.. . ' T <' -. '. ' ' '- ' ' ' = ' e ''.a*Jto poor wealther as demonstrated by the éff4cto .q1 of tlhe; réce, nlt d. fdijg.httà' must have driven ,more 44 j
Ma Iawians i 'nto absolute poverty. Low levels of 's,Qè$lk' dek. 'ds I.#R.ment,. a.5.Arfd. Aected in t'h,e .pG) o'r basic .i .j. 4j j , . . . . y . . . jtsocial indicators render the task of attaining soci&e.ioao.mic 'déveldpme'st particularly difficult in '.1Màlawi. , '' l, ,;jl
; .. . jj2.8.3 According to the Vulnerability M sesmentzjp'd k'pyppin. g .(XAM') 1.9.96. v the jmportant predictors 'ti' ) . . r: , , . . :7 *- '! vulnerabillty to poverty over the past fike tyvat
,s; .a$e tjhq. dtl. tàljon aad. iquanttty' of v-rainfàll, ':1,.kofl ., . tv . ( . r . . ;;.,,. j . . . . . . . x . jIiberalisation/strudùral adlustment programme pql.Yles,wi4:d? Mp?:i,,h. j de.va.luabpn. Ot, her ..pr& dlidors .'idel ntifi'ei incllude Iarge average family size, lajgtpâ. g'p,.rom--,4'-i'.ons of 'femalq 'héad ed households. the xykijI : . .
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smali size of average land holdings, and the pricé, i. 4f pliiritpàkrk Staple àgri' cultilsâl. p rotind'-. q: . '.j
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.8.4' The GO' M is making deliberate efforls to t'Aàqksle yoyeqty, 4.s a .wholqy A.. Povertyt. :. Allleviation e.;$ )' t 2 2 l . ' . . ' .'L:' : . . ' . -'' ' . -Programme .was launched in 1997. In additi6. p,, ,in cepi.lkkn. .c1.. ,i(4. tl wit.h darûirs, wjggd; haie beèn )
d' for calpacity building and promntion of fil'i'ès riv'4#) èkrprise- to kbengAt thekwkulherakllkt g .reup. -j6creb,te .: .,. I . ' . , . ; ; . , , . . . jDiv#rsiscationt in agriculture and develop. mept of-s.tM.' alh,$(-- 4l,Q irrig Jazïon. a'Fe pao' of. tvhe t.). t'l)' èr .m. alor kstrategii bei 'ng promoted by the G0M to f'ight -pt/vert'y. . l
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3. MAM DAMIA SUB-SEW OR
3.1 The Sub-sector Analvsis
3.1.1 Macadamia is native to eastern' Australia and is at home in the same type of climate asColea arabica, i.e. from equatorial highlands at 1,500 m altitude to frol-free sub-tropica! areas atsea Ievel. The crop requirœ about 1,000 mm of rain but is fairly drought re.siqta'nt. Malawi provideexcellent agro-ecological conditions for the cultivation of macadamia tr- q. Macadamia nu1 are ahigh energy food and contain no chole erol. They are a gx d K urce of protein? calcium,potassium and dietary sbre and are very Iow in sodium. The natuol oils''in Macadamias conlin78% mono-unsaturated fat . Mature macadamia nut kernels are encased in hard wx dy shellssurrounded by green-brown sbrous husi.
3.1.2 The Macadamia tree was introduced in Malawi from Australia sixty yeas ago. Commercial 'plantations in Malawi were not peablished until the 1960's. Nowadays, 17 fvtate.s have gone intooperation producing more than 311 tons of saleable kernels annually. Almos't aIl of this produce isprocused Iocally rG m dively in Naming'omba Tea Fqtates in n yolo Distrid in the South and inKawalazi Feate.s in Nkhata % y area in the North. Output from thp* factosic consiq'tq re pectivelyf 90% exmrted kernel, 7.5$ locally Kld kernels, 2% oil and 0.5% cake.o
3.1.3 Macadamia produdion at Smallholder Ievel is still in i? infancy. There has been a markedIack of intere in the development of the crop on customary Iand due to the absence of a clearGovernment policy. Smallholders were provided with few seedlings only while no back-up supportwas provided in terms of produdion technology, proc% sing and marketing. M a re ult, it was noteconomically viable for the smallholders to participate in macadamia produdion or for traders toventure in smallholder areas.
3.1.4 Most of the smallholder producers are situated in Mzuzu Agriculture Development Division(ADD) in the North, Kasungu ADD in the Centre and in the Thyolo Distrid in South of Malawi. Thenumber of trees planted per farmer remains small (30 tree.s per farmer) and the total number offarmers that engage in macadamia development is G imate at 200. Totpl produdion ofmacadamia for 1996/97 is Gtimated at Kasungu, 3.2 mt in Kasungu and 6.4 mt in Mzuzu. Most ofthG e nuts, however, have not found their way to the procGcming plant.
3.1.5 Macadamia produdion at smallholder Ievel is mcstly conkrained by lack of marketing; - badquality of the nut.s and the deplorable state of the rural access roads. It is envisaged th'at, with thenecessary support in produdion and proce sing technique.s and by improving the' rura! accesm androads and market infrastrudure, the industry can be made viable and profitable.
Proiect Area
3.2.1 The proposed projed areas will cover Kasungu Agriculture Development Division (ADD) lyingabout 60 km north of Lilongwe; and Mzuzu ADD which is about 360 km north of Lilongwe. InrKasungu area, the project will cover Malomo, Kallra, Chipjku, and Chikwacda Extecsion PlanningAreas (EPM ) of the Ntichisi Rural Development Projed (RDP). It will also cover Nachisaka EPA ofDowa RDP.
3.2.2 With regards to Mzuzu ADD, the projed will include Rumphi RDP covering Phoka andMphompha EPM ; Nyika and Nchena-chena hills in Phoka EPA; and, Viphya hills in Mphompa EPA.
Clim ate, ToDoqraphw s-pils and Veqet-ation
3.3.1 Generally, the climate in Malawi is tropical, warm and sub-humid. Seao ns and altitudeinsuence temperature ; the coolest period is June and July, while the hottest is Odober andNovember. Rainfall is uni-modal and occurs from Odober to April. Rainfall varic in length andamount with altitude. Climatological conditions are considered excellent for macadamiadevelopment. AII projed areas have been seleded for their agro-ecological suitability.
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. ' s. I1*.<' '. ). . .-.c..wc y)l d .
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. h' . . U ' , ' ; ' %
. . . tu,. r . . .. . ., 3.3.2 ln Kasuncu ADD, the area seleded. fo. r l41,aiâ4. -41. jp mröducti-o, n is sittlated in Ntchize acd *&4 .-!! . '*' ''lf ' . . S ' Mr PJ ' ï v. Y- . . J /6 . ' . j c..t ' . aj . ' '*.LI D()Wa-East RDP. % th areas are situated- ;,t. @p àlt'l.tt1-wsdW,#zr.f. .,1;U0) 0r''1.y8#.0. 'maqlt L.Ra- 'isNf'e-ll vrangqq frœ-m ' #'
l 1 200 'to' 1i 5O0 mm/year. The mean ann.'u. a'I ,'temp'drk'C)gp*/ - xk*aJri'p--qk bdtwèzn 22 E .th , e Io. wP' *. *lk vationj '' 5- ' .1p' ,
. . v jr , . . . ,yy, : ; .sjgqj. . k jq:j . g .. yj . , , . .,. ; . ;, . .. . . , . rtand 18 dègree in the higher elevationdt Th. e'êlandf-Ea... K-xchwt4.F./;c'.rY erztit' ed.'by uxdulati ng hllls. Sgits, . ' . . jj1in géi. eral,l ére sandy-loam, properly dtained, and rgleY vqly f'>ztitI' Ie. . Thè hatural; vegeotion is .j' * . j . . . ' .S. .r..t . k ' ; . . ' ' * . .t ompki#ed of large pockel of p' rotected forlvk--.àndt <.l'ö*-g' Y wlng. Mi'ohibo w ', ' Iand :. t :1'
kç . , . , - . , . . !,lj . . j . . . . . ' . .1. . 4. . . .
j ' . . - u $. . ' .
* .
rs 3. In Mzkàu ADD the area earmarke- 'f ot, rx tt-atd'kà:m. i.a ptodu*w. oal is <.itu' àite, d at vip. hyà' hills in -.3 . . s. : , # . k O , . .; s . , , y .. . .. . y r y jjjjjjj yjyy jjs,...) ayj y ..., a y,y yyjj a j . . .Mr-lh'or,4puhàt EPA and' in Nyika and N. t'hélj ache-n. a.,:'%.,ti,rI:l&#:!.à)pE,P.h' Uka .E..P' A..-''.r'1ri Viphla. ,'è
'rainfall,ameun? fo 1,280 mm. In '.Nyik..azla, h'd yacllRrrlâ.Qk' èng hillg Irziéfâll: .(é'nge'.. . , . , , ., y) ' '1 z A t . ' ( . k z ) /!& ' ' y , (. i. * t . ' , ' k . j j ( . . r.t ; a j . . . xj.. mcwt, lAn,nex 2). ' The mean annuàl tein peotérte 'vapa/b:-. ee.'ik.,2. o. ks .iiAktà-é'. lo*ezt, el../ati- e'ns anu ., .
.
'
19 Jegsirepql in thé higher elevations. Sollsy 'ino-- khêt?' wâIl'*',b1l;é7 i '/edg'' ytb'Wel'li' d'liàitned'- and' .kti:rtile. tD- ue ta h.'-'1'1 . : --%. , v. ... ' ' 4 ''.j(w ' y. 'v
'
Y' . 3 ' ( t x v ' y . . . jthe' loW nutrient retention capecity of the '*-.. is, Xh. b- .kW' .-*q4 e%6, ffMAlisfëe,alp-.pl'icatbùns 'A.i.f rqqftlired' . Thû 'Ji,. ' ' 1 * . '' ''. . J 4 . x w ) 1 ..!.! ''' ' ' ' ' ' ' ' ' ' ''''' 'J' ' * . , 2 ' M.
. natural; ven'etation is comprised of mou:tain g#.ài- -.l mah' ;' . with staû.. 'dtrèd ttee a'nd patd h% of mùist . . . ' :. ' : - j -
y . .. . . . . .Brach/stegia woodland. ' ..' , .. . : xN..:. t .
'
k . ' .1k 3 4 Proiect Beneficiari- . ?t:5' 'j @ '
' ; . ' . u . . .. %I . . ' '. .. itz...
. . j yz . .: . . . .. . , , . .3..4.,.4 .Thq target group will be the x orxsmallhulttka ((p ara... 2. ..1 .2 va.:d' sèctibn 2.,s).. The twb' proled . . ).ktea.hkave attotal pôpulatio' rj of 276/953 of wh.ysecjh/il'.43s4g, 1 .4r 5 .'1t$.'l8'ê/o are: femajet About 781% of the . :#' C'sj . >. . . ;: ' . jpjpppulation Iive below the poverty level, as per UNDRd.. efihitiop. .''
y '' ' . . , , t , .; . . .. . .k . . , . . 't.. . ) , . .
q ' *f J J' ' ' S ' i3:4.2 There are about 54,148 farm familieq in thê 'p*j':d'' .' g'rea/ eut öof' Whtcl) a* ut 14,620, or. 27 'D/o . .,
1'' ,. . o ' . . ; . . . . v . ., a Jt , :jis headèdu 'byj femaileq. The dired benefi cierill Wil.il' tût4I'.V2;t5'Q. 0' fafin ofamilie; of Whi'th 100.- 0 wîll' be . .'. ? :.vilb Kasungp ADD and the balance of. 1500 farni 'faarfïlllœ #
, . .
bèneficiarie.s will be household headed by'femàlp-.-t . . ' ..'
. 1.3.4.3 Màny of the targeted households havt preykious ',k. !p.. erieqce in' 'Mecadam ia tree Grqp groWing. .... ' '' j . . , s . .. 4 .: . r .Thejt.are reglstered with extension and reéarich .zip:efcsd- iptnll.'lipk:thèiir'r.e pedive afréas. Acnssing the pk; . ! . j -, - . . j; $ ::7:.' qt . - ,.-
' jE ( - . .. ... .bqnehciaria inethè proled areas will therefore hot be *'d- 1.5/ cult t'âs'k. . , . .
il '( . '! 3.5 Gender Issues . , z
. )- 1. h 1* .
' D/ Jf' thê 'pogylation. . They kaf'ry. out 70% of the '' ' !3.5.1 W'omen, in the proled area, repre ent 52' o o , ,. - i . 7- . a , , , ,
tota' I férm jwork and are mostly involved in, 'C.l). e #t.è?,c1 uction of, food crom, . . Female-h :eded ., (- ' l o j) à,j jyoujeh-bju- .s i rj: M zuyui: a'n'd 30 04 aitlj Kàsà. nq u . '. Yhe e. ' ' '..r >hou, Sehottls arte Htimated at 20 A of t e rur . . )
q . 1 . .i . . yy, g. ogyj . jj. j wl gvp j: y . ajr. gR lvjejut. jyi j: j y . g j yq 'g2, j e j y.. g'jwjment'aré dlvorceese widowed or unmatrried%z' M t' re' .ih4h,' tlttï , ... . j, '' 'i.. . . .. ' ... ., , ,k j. . ., ji . . : .. ,yparents, due .to seàsonal miqration of their h'eéband.' Puèmellè hebdè'u h öklsesdl.ds a'ré, gésnerally, ê,
- j -- . , ;( t. .;v.j rj(j. !kà : . Amg2. . , . v ; - . 4 . :,<poo. rer as they have low Ia* r-power, high depetteril' .ha o5, à sevêre lack bf prodùd. iv: aébets ,.; ro:.j
and relatively smaller farm size . i.v'.
'. j . ' i5'. ' 1
3.512 Overall, women have I%s accel to Iand, zcredit and extqnsion supm rt. They hold Iittle - . kl . ' . ' ' ' ' ' : ' ' ,' 1
.coAtrol over thj e benefits. There. are signs, hoWevef,, whitth' b-hcw' thést wörtnén â.re takilg a more .5. , . .
. )k j, . . : . y;actiye socia'l and political role oulide their tapetiti. resm tii'stbillitie . A lth6uph wöljieri é groups are '.t'1 $ he projed area'
, therre aré' -tlear sirgki, .a'i': th'qlt the' 'nuembeL'r ii? cn thé' increase. /.still ar new venture in ti .. . , . y , ..j
'
; . . : .)- . , , a
yMany of'these tgroups, however, have been crev/d' With Ykt. ' 'è.. m-:l Suppork. mostîy from Goverhment .sy. ' ) v- . ' ' 1. . . .or donors and for specific purpos%, such as the agricultteal clubf. t '!;
,
.
j . jyy jyyy, yyr. ' )'. 3.6 Health and Nutrition i' '. . z
' . . l . .- i' th,'
I j . 13.6.1 The rural population, in the proled arear suffers from chronic malnutrition that is caused 'j . r ;!:!y ..q. :... . , .
.; ,iby a o3mbinvation of under-nutrition and micro-hatriéntad' dft, qjenciet. Undér-ntjtltitipn, corrses a* ut, qs.l . ' . '' '' , ' '
partly, because food is not always available aqd padly lb. eceù. 'Se it is not acce. q'qible. A typical '''hungry season'' may last as Iong as 7 months, ftom Jari uâ' ry t.o August. ' :. , . k , ,+j . %'! . .. ' . .
I ' . . ' '' ' . . ' .
3 6 2 Micro-nutrient malnutrition is more Iife th'reâ' 'treni'aqg' Jahd is ' mà.nifested in iodine, vitamin Al low. intàke of vëvé' tâ. bles, protein ahd' fat in the diet. Thisand iron deficiencia . Tt is caused by a
. . 4 x . .. v ' .. ;. '
8
@1. ;:
,y. . .
. j;,- .s.j-qy.y.' ul; >1% .ee'- . x ..Sq'.Ar ..ut ..... .tx g '.k.a*l .... :. . ,,x ..'u...t .
'x' , -x.x t.,,...= .. . .... ,.wuu.....u .... .,.-.- 1.:.. -:,. +'. ka. . - <- .-;k.., exugz. z . t- -
form of malnutrition severely underminG the health of children, mothers and the elderly. On anational Ievel, it is e imate that 9% of the mothers have chronic protein-energy malnutrition and14% short eature while 56% of aII pregnant mothers are anaemic
3.6.3 In recent years, M DS hasmedical data is dim cult to M tablish,H1V positive. n ose mos't affectedgeneration.
aggravated the health situabon. Although the reliability ofit is believed that not I<q than 20% of the qopulation might beby the disease appear to be the economlcally adive middle
:,#. ;tqa
3.7 Environm y? Xt
3.7.1 The areas where macadamia is currently jrown are IY.ated in the high altitude areas whichrise to a* ut 1,500 m asl. Mos't of the top soils ln these areas are ooên very deep (soil depth >150 cm) to deep (100-150 cm), well drained, red to reddish brown, medium to fine textured. Mostof the hills and G carpment zone are covered with Brachystegia and G carpment wx dland(Julbernardia globisora). In the Iower reache.s mixed low altitude Ovanna œ curs with such speciœas Combretum diplorh Ynchus, Diœ pyrœ and Acacia
3.7.2 The structure of most cul:vated top soils is weak, owing to the cultivation pradicc ofintensive hœinj, and not returning enough organic material to the soil. Dke to the high rainfallrates, the K iI s highly erodible and sheet erosion is common in many areas. ln addition, thecommon practice of burning the vegetation during the dry season has resulted in many wild 5rGdperoying or afecting large paA of the natural vegeta:on and mx't of the remaininl fore.q'tr% ourcG are consequently degraded to varying degr- . On steep land and G carpment zonc,which has been under cultivation for some time, the top soil is usually aM ent or extremely thin.
3.7.3 The average annual rate of defore tation over the last 25 years based on rate.s ofagricultural exx nsion is 0.80/0. There are very few Iarge mammals Ie& in the projed area. % mebuffalos and antelope, baYons, several speci% of monkeys, wild jgs and a few feline.s occur innational reerves but not in the projed areas. There are a great varlety of birds. Local hunting ofSmall game such as can rats for fx d is common.
3.7.4 Malawi has * en engaged in a comprehensive review of its environmental Iegislation forthe last few years, gaining momentum aoer the Rio conference in 1992. A national EnvirqnmentalAdion Plan was drawn up in 1994, followed by the draoing of a Nabonal Environmental Policy thatwas adopted in February 1996. Parliament enaded Subsequently the Environmental ManagementAd in August 1996 (Ad 23). lnstitutional re ponsibility for the implementation 'of the policy andact lay with the Diredor of Environmental Affairs (DEA) in the Minis'try of Forpqtry, Fishery andEnvironmental Affairs (MOFFEA). The guideline.s for an Environmenta! lmpad M scsment hasbeen issued BY DEA in December 1997 and will be followed by sedor specific guidelinG .
9
V'' ''' y x yp 'r * & F'v > N r-= ' = 7ma $ r . . .. . ' . ' . L :. k. . , . .
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''f -.I . . . . .!N . .'4. THE PROJECT . 'v 'j . ..
! .' . . . . ' ' : . -. . . .t 4.1 Prolect Oblectives t . tn
l'' ' . . ' 'ï,. ' ' ' ' . . . . ' v.. ' '. - ' . ' . ' Xyt'':,4.1.1 The sedor goal is to improve the léIl .), evking, ù. f Malawlgms rth, iygh t'ra. kertyr.i' a'll-eviâïoa, . .,G pecially among rural people, by promotingpb *â#' d tbat-tdt g'g' d.'..'.@' p i -, ag
. ,I j . , , . . t'O'-'x . sp . ' .. ,y,: ' . , .. a . , . . . j-rj.y: -1 . ' *'. ! . -: ., J ' & ' ''4.1..2 n e Sxxcisc objfe ive of the pro. jed is tp p -*. motk an.4/ki'davelb: th. 'e.tDte rtldn.'on. of 5':0. '?hf'là of '. ';.* '''k v . '*' ' e' ' - ' '''M
'
' T $*.. ' - . ' - ' '* - ' 'Y''-w 'U' ' % l ''' * ' . r -% - '' l ? ' ' 3 ;' damial nut irter cropped within 2,50. 0.. srh4''ofk'fpo(1 7':1 'ti:i qatN .èz ttgo. ' undi. er sm :illlb #l':'é-rrr'I). pJuct. io-'n ''Q : t'j1'13' C0 .. . . .& ? . . . . . , , ; k. .' :. . .j r,. : . ...r , . a . . . $ . . <a- . q .: ( . . )i n the p. roject a rea . Th is will be adh ieked th .rou, g' gih' p :r -*'(;) aykit-iop of tfairni hg. a Rd 'builbd ling t 'Ehé j. a'p. acjltyk. 'mbf'' '1, v- ;
Macadamia t prod udion and ma rketing tec h'nv'olp' 'g. # ' h'thhro' tlg'f rh yéàmaifich ,aà3 dxtehsion, cred it, a h' d ' -' '?-'flFj . . . g.nurseripq pqt'a' blishment at the community Ieke). if.,I .,4/ ..' $ ,,,r. x t . .?
. . J . .. ' y . . # '
4.2 Descriotion of Proied Oitlt. D, tuts 's ti; -.'. . . . ' ' ..
' . * J. * , . ' ' ' '' .' .., . l ) ' . . . ' #,41.2..1 At the projed completion, six xmoth.er ahd 10,$, cemmunity., A$ QrsgriM. . would bè lqtàb I'ished. ' ., 'f.l j .
. , :- .Each nursery would be provided with one wa. ter .X. int.. ' , ,- '. . ' . j., ?'fl . , .. ' '. ' ' ' - '' .I ' ' . ' :î9 . . ' . ' . . ' ' . ' V ;' .. . . jep4:2
.2 About 500 ha of macadamia treê. q woul'd b-4-i'i.nt' 'ercrotgb- é. 41 with seasonal: dàsh a'nd ft6., d.' Fj ' j . ; . . .' . *'' >' . ; :, ' 7: : ' '. . 1 . l s. (j . y k . j w; . c .. . ) .cqops-kAbout 100. farmer groups (eaqh group jsùc&lKfprtç>-p' Ad' g'ùf' 2.5 'f-b.'lrt%er/o.l'two.sul'd b: St rér4nt' hêned or . -*; ' e ''Q' ' .
- '. . .
- 2 . t - ' s ' ' * ' 11 ' '' ' ' '.:.'/qt, a. bllsh; ed, to participate in Macadamia fyrlt,ll'ivz,:g.#'A'hp'e A , -- ' 'fà. 'rm-er' o' rganisâton '.'WbuId be ' ' . y. . ! . , t :
pq-t.: aiblished . . .- '... ' ' ' . . ;' t . . . ' ' . ..x.(. (. . e; . . '.
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.. y : : . . , . .. , . . , l . . .. 1 ' . '
. ' ), bru? '' ) ,. . . . ..r d b: eqt' a bIJ sh .:d. :',8 O!tF#'t'èl'd: assisq-fa. . :t11. 'amd '. 'at l>-,q.st .5- 0 s'tip) ervisöry e k4.2, .3 800 demo-trials plot woul . , . . , vt ; ; . y
mjysy arjo, ymxyxrtsj.. ..j. y.-1 . inciple o f macadé-mllà. kg''krd. d, ùtt.' l!*iq: prot' gq ,qtal would be trained in pr . x . . . !. 5 x . . . t' ... q, iw . .<k . ... . 'a zv. .. .', .' ...' . .
' ,, kkl.' . . ' $ : x..u' . . '' ; ' . '' J ;ù,., . . ,# . , .
.44.2.4 'Nine r% idential and six fundional buildingt F -oti ili' be cocétrbded. The prolfvf would '.<. 4'
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, .jrehabililte a total of 138.7 km rural acteoq roa .- sk' &Y. st . ' :, w ' ' ' .. . ., : , . . .. hj
4..3 Detailed Descriotion of C omp, .b.n+n##itâ,ntd Adfi#itire , '-i
'
' ' ' ? ' ' '. 3: !
A. ; Nursew Developm ent ' : 'xiI y j y . . jl
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..3.1 . The proled will establish six m0th. er n'urserio-qwitrd .a' tutalk Gapacityq .'of' 1.X-jX O, p, Iapl. Two , )1 . l ' . ., qc w , . . y ..(x. rj. jz, tj ga.o#t'r.j),e j.. .zg sye rja' '..k . ajrjn . to : . . p . :'..mother nurserlie.s will be Gtablished in Kaîuqn. ,t1 ADD A/ît1 k'lfetlt .i& . Jk. t ' $ . r;- JJ . '* - v . . . '. . j,' . j; tjj ey ' ; .g .. 1avail hlgh quelity planting materials of vanoug'' 'mAc-aderm' i'z. . clb- Il't:avq to,- .farmerugrolpj. o , .)
C ies . will kd aIK as a training groundb for firtwglà' dtf'i ' gràroing 'ahnt zmatqag. ê'Iithent t'êtlah' hiques. '#:1nursel: .:. j .. . ' j ' 7 ujj r t ' . yt (2 .x . ve .. a; . .lk .. . , ty . A: , . . . s ...These nurserie
.s will eventuplly be phased gut, , or O ld; .to g lroupé- to akgld th, e dépendency. . .id r() m e . ' . . ' V-,syn J:
. . ...:(.!<g
. . . ' .
. . ! l4.3.2 The prtoled will peablish at least' . '100 communisty'z n'qr-t'a erie'. Thè h. um'- r of tre% 'per . x'i
,.. . . : jcommunity nurlsery will be approximately 1',000. Comm' u 'rti'ty.' ntlrseridrq' Will .serve as a ,p. oint where . .J
.' $ .i' , q *' ' -1 .:fâörmers can easily access seedlings, at ful'l cœ t. They .Wjl,J...>IK. ' serve as com'munity treé produdion *l
damia öemand. Commuuityk'' ntirs-èrie . wil'l be provided' with môt' her bushes ' '?tunits for any fuiture maca - k
of various mac 'adamia clon% which, aoer year thre'e of th.é projett, will ..bè used. for graotng. L(.'..
j . . ' ' . .q jlB. l Croo Development .k
.. . , : ...j1
- !( ,. .. -- -
- .
i ,:--,1,4.3.3 The prtped will support the development of macadamia on at .lea.M 2,500 sméllholder .. 4?1 1 . , . , (.;:farmj covering 500 ha
. On average, 40 mecadamia trèet' :. er f'k' rmer will .be p.lented. Food and Fash . :4l .5 ! . . - ' .' . . .Cropj Will be intercropped
. The cropping system, irl g êh:ral: will: 'bè: .b,' àsed o, .rt : meize, Sweet . '' i v ' k uuagkj
, rjjzcacjart!. ij will be t '-.potatpesr cassava, ground nuY, QUISG and Soye. bolfi. :, Irt ,l . - : . $
-
established on Iand under cultivation. In Mzuzu, rfiata.dâlm' .ia devêtepm, ent Will be mainly on fallow '' : ', j ' ' . qIand
. It is exm ded that, aoer year 5, the treep cah np I'onger be i'ntercropped. ; -' .:.',E,. ..&- : , )h;t. ,
. -: . yti,4.3.4 Farmers will be encouraged, through eoension, to apply appropriate crop and lapd ,
:.4. ' A ' . v'llhusbandry pradice
. Th% e pradicG wiïl benefit also' the. m, acadamia tr-. q. Improved cro. p Seed, k ,. ., ; j
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fertilizers and ptvticide will be made available through credit. n ey can be obtained from Iocal .-.vendors who are preent in the projed area. Annex 3B provides additional information. . )'
Credit
4.3.5 Credit will be made available through the Malawi Rural Finance Compaqy (MRFC). The .,proje will provide a Iine of credit of UA 0.99 million (Mkw 24.16 million) to the MRFC to assist thç (smallholdes in purchasing farm inpul, knapsack Sprayers, mistblowers and huskes. A Short terni'' ljconsultant with wide experience in savings and credit will be retained to àssist farmer groups in ie blishing R vings and credit schem% . ' .
''
;)-.tt;,4.3.6 The MRFC with both technical and financial Supgort from the World Bank is well reourced toadminister and manage the credit facility. Currently It is managing a World Barik Iine of credit of j 'US$ 25 million and the lnternational Fund for Agricultural Development (IFAD) which contributedUS$ 10 million for the Mudzi Technical Service Project- n e MRFC charg% dommercial interest )rates which includes a percentage on loan lo%es. lt has a country-Wide repre-' ntation and coves J.'.' . jsatisfactorily the propxed projed area. Annex 4 providH additiona! informati6n.
Marketinq
4.3.7 Following recommendations of the FAO consultant on how to improve on the marketing ofmacadamia under the smallholder produdion, the projed has madq provision for a Marketingexx rt to provide the necesM ry help and advice on how to gain accH s to the well eqtnblishedMalawi Macadamia industry. This will include Strengthening skills of the ADD staff in MarketaccH sibil'lty and Marketing principlc . Problems relating to individual infrastrudure with regards tostorage and roads have also been addresed elsewhere in the appraisal report Farmer groups willbe organised to facilitate marketing, among others (para 4.3.13). ' The quality asped will beaddresed by extension q'taff and farmer training (paras. 4.3.9 and 4.3.10). Crpdit will be madeavailable to assis't farmers in construding on farm storage shade.s (para 4.3.5) while the projedhas made provision for the rehabilitation of the key accpcm roads in projed areas. (para 4.3.15).
4.3.8 An agreement has been obtained from the Kalawazi Macadamia Procc sing Facility that thecompany will aHis't in the quality control, transpltatjon, and the proce%ing of the incrementalmacadamia output. Adequate procusing capaclty is available. Major recommendations of theStudy is attached to the report as Annex 6.
RH earch and Extension Support
4.3.9 The projed will enhance an adaptive r%earch and extension program. The approach willbe based on the Worid Bank %lTraining and Visit'' skstem which has been modified by the GOM.Farmer groups will be the focal point of attention. The system is very fundional. and has proven tobe effedive in eliciting adive farmer participation. Under the program, community nurseries andmacadamia ptantation will be established. At a tater Stage, the program will introduce appropriatecrop and land husbandry pradices, and applying improved technologi% Such as tesling newmacadamia clone on-farm and the introdudion of lntegrated PeSI Management (IPM) techniques(Annex 3). The projed Fill assist in establishing farmer-managed demo-trials. ThGe demo-trialswill be used as Iearning grounds for farmes involved in macadamia produdion. Field trips and 5elddays will be organised as part of their training program.
4.3.10 The Bvumbe Agricultural Re-search Station will be assisting in supporting the on-farmr% earch. Regional horticulturist will be provided with transm rt with a view of assisting the FieldM sistan? (FA) in eMablishing and mopitoring the demo-trials. Provision will be made also fortechnical backstopping from the Bvumbe Agricultural Re* arch Station. A R% earch and extensionworkshop dealinj on aspeds of smallholder macadamia produdion will be organised.
%
-n x. a m +. . . . - ' .7 ( rn ' % &@(.EEX , WD U . . W . . . ' ( . ' N r ' '.F't. t . k : . . . t ' ' . ' ' ' . .. i . '
1 . :. # . . .'i'.!; .. :
:.) '3% 4'./ -:k:
itt . * X 'N .. lj ' .: . p .yl*iD
. C- apacitv Buildinq , i. ?'s';
wzxtr ,t . . ' i l . ) .. . .' . jj,.. z s..,.) ,jrozm.....
.
, t. jj e. A,o p . s .p..,. roj . ., , ,,, ... ,,I cgy . . .f ro. m th'e ' Jllf. ''t 4.3.11 Traiqing suppolt: Subled Matt. .er Specj-alit-l, .!J-t' 'RDPS and Development lcers from EPM. v/di'.ll bq: tc.q'iti',,eds.'. in s-lallhk-old 'ë'i',' m'éc. adwamiâ brodud--. jpn. ' 4.. yrj; fe ' . . .:
. Fieîd Assi.qta nts will be trai ned in grouip' vd. y: :n'.a. jm-' ,tcs. ' a hd Fpr. ikftèip le. : pf m-aqcu-a-.d.-à-ttàia ' prod.yxd. ?ib.*n, ' è '.'' j ' . ' . ) ; ?w ,Ls .k . . o. ' .. ' ' q . ,y.,, ' y. yk ; . ' ' . . : ,. ..1
: processing and marketing. FM will *. tlailœ'd ttilp th-k' 'pe:-- ''ab. Iis. hm. l'ent' àad pöàito' rin'g of denj' ' b.trikl: ,*. . : . p .w : y ' .. .k. v. 1 . . t .j . , . .j : . z . )
I a nd on. 'the asDe of IPM a n d other crop a n'd.' p,l.tai?.dl',-ljlt&Kwba. '- t'ade 'Iv. 'vlqt-azct' . ' ceq . 'FérM. ' e' rs will be tra l ned i n .. , * J, ' r . * . x-'' - '>b 7 ' 0-' 1* ' (7 < . . * . ' . f:: ' ë 1 - .. : a
..,f j.;, , .. m- y. fpa g e' m e n t; c .â rj d. , ' . ' . .' ' . .. mo Ijjt' /117: g' a n d.) ) . . .:- )comm, . unity' hu rsery techniq ue, .g. rat'. M.g .., fa. xdc? ktpe.kkR.. p ,. . r . , . . . . -.j ,i j s j.z.jN, j .. ). . .y;. . sjyz , . j,j jks. jrjgjjtgyxjyjyjjyjj,j Ksjjjy. jg; jy. kyjxjjj,jyy jyyjyjgygj .jajgj jg jkj jjj . ..u s, .
. . ,CO n tlYl e WO m e r1 Q FO U IH 3 11' d ' W0 m e 11' - 'lfi1/dj- .-@. rJ. Q. .pjkM. Nor--smw . 'i R' iaytitl @# t 3 G W : . . . .. . . ; j... . . , <y: .j . . jj , ,jyn. yjj
, ykxy) ot. jjjjjj . wjj j yjecejkt : pp. uxyéj, ,:, suj s. pq 'o rj.. .,. $ . :. ' > .k.n tltri-ti O h-a. l as perMa of t h e m. a ca d a m i a , Cn. uts. .- . . . 4J n - ia, ,d. -dt ll't. . .. : w.. , . ;. r j, ;qq k, , . .. x . .
agriculture related micro-enterprise.s developme, ntt é. nd. Nmah ag. emeqt. ' , t
. :. . i'' . . - . t: ,: ... . ;.
. : Q . . . t.4.,3.12 Farmer Organisatio. n': T.h ere a re. a. p.4., ttsmbsq.t. rex-fr-, l.i.rilf.d' rœalykfacmer tgiloqps', z '. .a'ndi.i-kro. r-. clubs in th: u.nrol' Flct. â F 'ea . The n ro u PS maJ o.r obJ Mt.'' i ve 'iXAte-u' '.b.. e, h. k..5î, t.4' f /0.' smiskt%/e. dfitiof. ty eiliti m.q. Tlh .. e. y. 'éfe'. shoW-qverk n o t .!1$* eR. ) % . $ -- * $ ( 7;. . Jx% v- . g.$ .m '' y v ; .L. .sa .s , xj . g;:. 7 . k : . . ' c 4jip roperly' .organ.ised to 'ma n a g é th. e. i.r. '..*wr). $ rp fféiaë'--. rf'7V hey' . 1àc-'''.k,k,- .lr.sltI)j., 'olti? t l:' nîa'l , . c. pp,. a, ib i lli.ty... ; â. '.n dp ,. â f'e'. ' not '' .'. y..-qC,'j .
.. . . . :. ..., ; ,. . . . . . u..çt.jj. vrjy,su.,; k,. ,y . yyypjqj, ,arj. j y ys..j...o(j j c.yy. q t, o. y.tj a -).. j , ytel- h q kca I l y. q u a l ifi. e. d to m a n a g e g ro u p a E't. ' ,'i vi. 'tlyM-. & ,. c.j.,.n. , 9, :?) d ' . d.z'', it. ',..ok ,a. . y. . , , . . , . . , . . , /y,.' j . o ...1. - . ) i x : j y j j j < j y jSJ L ysj j ; jjy . j y. Qg j y. a.g y aj yj, x* gs .s%... J a iy f . j t u. . , t . y, gjg. ; a gv 1 j' y .r q % ' g. j , .g rou p yad. . ivjkes. With o. ut p ro ;M. r Orga'R isktilj.-lqy. dfrjkh/j/.-e. aj - . q... .,t .. . . . . ..- . . s. .-
.. . . .
,,tj ts. j,,..yj yjrgs, yo y, - ..,. ,' tiuve crédit fi cilities marke:ng 'rof f4' a#lm. t' prud b:c. e' '; 'âtnd. neg. Dtiatin g e ord. p:..1:(:) (:2 (:). 1:r*I r:hti! J, . . t . s- . s . -,- .;. , - . . . , . . :y. . .. x . , . . . .
.1 : +> ) . .. . . . c j,.q , &. .... ( . s . . y y . , jjj. jjtheir acricultural produce. In addibon 'frarmes. par;t, 1,$. i,p- arköo n ih' dsqvelop m. ent actlvitim- w I.ll rem. a'iq . : . j !. . . ,
. +4 t , .
r . j j j. be qpN.,' j .q* e n c h. ed @q... ge-s. i a'll y in. . v' :' % ' !: ''limited . M a re ult the dependency syndrom, a-tbn tt. j..+, g. zuukernmqrî' t: w . , , . u ys,1 .' e -
. s ....4 '. à' w) . Lf'-- : . . . . . . . , . . . z w . . . ;.the supply of farm inpul ma nagemewnt of nlrsd--t/i'e:, ..),;, r11' a'rkètiih, g:; ètc. k Thé' GoverhMueqt :- annot '1t'
. . . (. v t ''.j .$)z' ' .v .w . v . . ' h ' a .. zk ! . . . l . . : 7 . .prc, lvid. é' th%e activitiœ indefinitelyc With prjpu:r o' tg inixe..tion 'illtt.eç .'glro. tjps,, .faAfm, , .:r p. a+' -c, i,i'? alti-.ror) i,n ' ' . #, .'! -
. l . ' ? : . r ( - . . . . . tj s . -t..t., 4.. . . . rxa- . .rt j c. 'jy. 1. te-f reff ei-t ' ivvdlkio -,:i'n ' 't'zl1 e ' '' ' Y '' 'd'ec-isic' n ' ma rki n g . . wil I be en h a n ced. . They
, + .,t*. jy,xk.l 1t. . ,b# ; sab' . . , . . . . . . . . . . t . , , . ). timplem, entalbon of the MSDP, and it. 'W,,i1,l alse lb: p.oe.
-.#''.-lt:le yfor th' em t'oz-adively, p alti Ccipât'e i'h the .
-.
.w : '! ; S ' ' î ' 'design and implementation of other proj : . . ,g-ntt-h. ?è. ftstti Crév'4 ' 'k '7;. . .,. . wJ$ ::
. 4 ..' . e ' .?'.k;.è '! .' . . ' ' ' k ' k '
4.3,13 The projed will encoqrage, an. d. spkpop' 'oxvag%'itt :at'er farm' *r pai*' ''c;.ip. âKz.n. in' d ekélppment ,,e'. . .. z , . s . . . . ! a o; . J xj jy d . . o a . v :. . . r j ! 'jk . . v . . iinn yj,tjx p . ' jlt;y z a: sy tyg.. y . N q.e j t . y... ,s:yj jyja'digitie byj streng, then ing the exisling fa tfmer'fg. .i@kpcq-lzl, amd llfxgalhktiklng: Ja-lrnizag:. i n'tb neW greup' s, ,,.' .j w -,., . . . ;s,,: c .r, . . .
. . v y. ytt , . r .jjoljj.jj-j.syx: ..j,:..z ygyy. yta.y jjjsj, . .yof', ,jjjse . v..;. ,.,lh.ere zpprmpriate; this .will enable fa'rmes- . tllkpallt 'ldtt-gajt'e ,.@ff4. eliy eolyqjn.. I .t , , p . .x' ' ' . ' I . . ' s.k , > >. s.% ., ' . './ '#.e::4 g '.i a . . '9 >. 4 27 .: ' .p'rqled. The oroled will enhance the u.Cal:xà' -t-I.:t'vA o. f ',th,, wea,t.hg'rou%t-'l .bv: . (nfbk.ii:. '-i%m' fèlevtarttétralning ih '.' ,
. 1 ' -' ' -' . -- - ' , y. (-;à..t- u ;r . -. - - ,.
'--':ckj'r' --'....kt '.p. . -. -' ; ---,k ' ' A. ' . . . ..dyna mism, ma nagement, .a nd otb er ,a#> tè. @' '/a*letgp, 'ictq . . 'T'h' @' 1: i/rp'@rj. -E l#. 'to dtih*'p. :Wêr thesg' :g rollp , . . - .. . .- vLqsv . .. .us;.,$ . w.r ,.c..t . ,. , ,. . . . . .j ., . . . ..j . . 1 . , . ,groups to be capable in managing 'their oWà nfafao. 'ilngti4a.gl- alvltie a'nd ltqab. I'è th'em to 'be the foç.us' of s .'
t ' @ ' ' tj.'' ' R*-<RA ' epïil+ . . . , t .k, , -.. . . .. ' . ,:' :$ -':x;j .consultàtion and discu% ions' on fqturetvd ekèlo. pm' ertgt6'aetlikiti'es. R..0. t thls putrtpM. è, thè proled will .ö
7 ' ' . ' ' ' T' l ' ' '
' ' ' 'd synam ic-q. - Flto' f-â' 'ciii'ta' té' ' thj ' farlo . ei- g rö'. up'. S --'''t . .',retain the service.s of a short tèrm tpnb'ulta' . nt ,ih g lrit.h.ulr/j . . v - . j .j .r . . ' . e tsk . . j,,a . . .. . , .ca pacjty b u i ldi ng . Th e pro. J ked w il.I g. ee..' ttp it k:ê,.t-h., 'q't' 't ' h'veaek: 'g/i7'oQ'p'- $ wi I'l ob taiuh a ' Ie g 4.1 'e3. . ktI'tye..-. t It is . . z:. . . i . . . ... . .)
, j g . . . . . j , j. , o a .y y u. myom . yj, , . gp . y ;. y .sk. . j o. . o. s g. . , , u ; j ;, , . ayj. aj y. jj j j;. , ( w j . j . j j ; t je.X p ede d t. h a t , OVe r ti m e, th es e f a r m e r g ro u. p'B. ,.w, .i. I l ê.v(J. ,I;t. e .. n . . .. . . . . . -l . ., ! . - ' , '' '.'x ' . r, k : . . : - . . jj . . . . . ,( kbe f ully empowered and a bIe to obtain imp
.ro%d.d' r'linput at' d 'tredjt fat i/liitiqs, market. (4 stle/ alnd - , ?,( ? :' . ' i .d'.èv:I(j pm:ht. acb. 'vibie: '''pricis; and also be at the fore front for beneficiary. ,.. partiqlprati' o. à.t ë).. .. * ..j
. ,1E. I nfrastruct, ure Developm ent ;
. . 9.4.I . , .. ..
4.3 .14 lBuildi nqs: The projed will make prtïbisié' ns to const rud K't-Q Saff 'h 0, use.'. k sma.ll .'input supply '<*kj#f' la nt shade . Fou r type C hou. ses'i'.,wi
.l1 ''','b'e L'Qn,skjru'ded: 7'.'to ac' , c'omm. od: C'ate/àtéc'h nical *L '#.' .storesi. and p ,z ,...J'' '.11 jr. ,.;. , .. . .. .kk.jjjjkj!!jj. assistant' stafft a nd their cou nterparts. . at Ntckisir' 4::d . f:Robmp'lk'i QD' Ps. .Twé.. typer D höuse'. -Wi.IkI b-e '( ' 1 j ' . !b /4r x. . =.: kt 1 yy , . ; L.s , . . ..,)u'construded to accommodate the on-fàrm rres, èa' rqh atva. 'fù'' 2. lt: :Dé. ,wa H-ill.s' a n'd Vip. h ya a rea. T hitee. ty', ;:e çE
. ! . . * L-i *. w : . y . .. ' . & l .j.. .. . jj ' j yj . .o p . . .. , ;. .E hl ouse will be construded to house the Meth:rktN. rt.u.w'qr(.y' tMapagë./.. . a't Nt. chisi. .R.'D,PI Rump , ( ,'' vip' hya arlea
. A pla nt shade, a n d. a. s'm. atll. ,lirhrp'.. 'w'':(r.,'j'',.u'/p'V'a.'xI-Ct' -.s.t- p, re .''.w; 'il.I xb. ez-con'sïàucte' 'd'- '' at. eac' 'h bf the ..,ïja nd, , . 1 . y . .
Mojther Nùtserv sit% . The M inistry Of Là ndd, 'H- o, ugilrjg4,'..'R. .h' ybidal Plae ning a nd ' Sytyrkèyl ' I ' z. . . .. -)st,'. . . ' . '#- tyjjjjjsy. jjaj.j jjj . rgj.-q. y.: tyjgj jjj jyyjj.'. .. ,.. .y ' . .;. ..designs and specifications for the buildings to..,b% :c
. bnft'ir'>!.clyted. , un .l
. . .' j1 4 '. ' ''
. i ; . .. z . .)4.3.1.5 . Roads: To assist : commercial adivities ,4.lil .y,é. i'l r 'mund., . ê.s pet iailly wit.h regards to th' e ï',t !$41
1 x . : . ': 1' ' '' '.'.f . ' ' . . m -4 ' . -J
)proyision. of input suppli% and evacuation. o: fràgrtictilltlqtal p-'rö, duce .aknd. other doninl' ercial àdjvitite , . ..- &: . 1 . . ... .:,y. . rza; . ). .4-..:, . . -. --. ; %, .(j '.. . . )th e ' prol ect wi l I re hab i I itate a tota I of 13817 z ktn' .., f! o afrlfg. 'trrzak. :zl 9 c C.eBS rœ'd t ; T' li e ,M iipis-try .o. f Wo rks w i liI > .'
j . . .i tj w.' G ' ' r .t g y,. j jy ryoqy, .g. . . j , . y q, o. jyy , j k j j o. y yxj. y , r ..0' . jj j , .s y. .y r e. r y. (j, j t a < t ; , .). ,r'ehlb,il itate the roads to the Sta nda rd .f'or vi-tjir;a .h R ,; .. . . , ; ., jz .. . . , .
, yy j x , . r , . . , T s ytsp, o yg yuork yor .tjje t.e n cj ej k , #prepare a detailed inventory of the road condi.tioll ilantj p repare t se. . . . . , . jdocument
.- At implementation slge, a consultant wiil' be rectuited to supervise thé. wort . The '''.,fo Ilowing' roads will be rehabilitated: .'.<
. . x .:jj). .. . 2 lj' it .-.i'j(-k1k;.!ë' x)('12 ;
.7:). .
.- . .. . a.2yjw''è?' 'AtJ-Ie'-
'
. uut). ....z - .. . . . zk - -'--.zr.-#tr .-..vk. - .. Ilka z*...' :... k-x .-u. J. ..))$i.- .uz.-j.....- -) ak-....-... ,,zk: u,..tx' '-..u.x.:u .:2 - '-- .-ç..' -.->'L-'-'K --'..L.1' .' ., r x!..-k..... . '...x..- -<-. .. . . ip . . = - . . z
Ntchisi RDP (Kasungu ADD)14.7 km of road D103 from Mbonekera to Dowa boundary;10.0 km of road D107 from Mwera Hill to Mtungwi (108 jd);10.8 km of road D108 from Chinthembe school to Mzandu HC;34.0 km of road D 41 from M* nekera to Mwansame .
Dowa Hills RDP (Kasungu ADD)8.5 km out of 38.9 km of road PRA from Mwangala Trading centre to Kamtayeni Village.
Rumphi RDP (Mzuzu ADD)33 km of road T.307 beginning Thumbi up to Uzumara;7.6 km of road T.306 from Phwezi - Phwamphwa (Muhuju);20.1 km of road T.305 from Phwamphwa (Muhuju) - Lura.
4.3.16 To ensure the suqo inability of the rehabilitated roads under the projed, GOM will berequired to include the roads rehabilitated under the projed in the Natiopal Road Authorii yearlymaintenance programme. The Authority haS * en Geablished as a result of a continuous dialoguebetween the GOM and the European Union (EU), World % nk (WB) and KM to assume theresponsibility of road janning, construction and maintenance of a1l rœds in Malawi induding thoAconstruded or rehabilltated by thc e and other Donors. In addition to Donor's funding for rœ dconstrudion and maintenance, the Authority will also receive. funding through a fuel Ievy to becolleded directly from the Petroleum Control Commission. AIl qokeholdels using the roads,including the prlvate sector are repreented in the Authorit/s Rcard, which decide,s on itsprogramme. M a Ioan condition, the Government will be required to undertake to comply with thisarrangement.
F. Proiee Manaoem ent
4.3.17 The projed will * implemented within the existing inkitutional framework of the MAI(chapter 5). The qtaff wil! be trained in Macadamiâ technology to improvè on performanceemciency. To this end Lmo Iong term Technical M sistant (TA) and seven short term consullni invarious areas of speciality will be retained to assist (Para 5.2.4). Additionll Iocal sk't'aff that will berequired is Iimited to 6 nursery managers, and 2 drivers. VehiclG , motorcyclea office' equipmentand omce Stationery will be provided to facilitate projed implementation.
4.4 Proiec M sum Dtiops and Rise
4.4.1 Market outlet for macadamia nuts are available but dimcult to accc s. The Iow quantitiG aswell as the mediocre quality of the nuts produced are Some of the problems Smallholders face inaccG sing market outlet. Unl/qq the project can overcome th% e constrainY, private traders willremain reludant to venture in theV areas. The Bank engaged the expert service.s of FAO toaddre-ss these short comings. The FAO recommendations have been incorporated in the projed. Itis a%umed that, as a result of the implementation of th%e recommeidations, farmes will benefitfrom satisfadory marketing and processing facilitiG .
4.4.2 The demand for macadamia nqlts, on a global level, is on the increase (Annex 3). The nut isincreasingly being used as a major ingredient in various culinary dishe.s which has r%ulted in asharp increase of the demand for macadamia nul. W ith a far from saturated market, it has beenassumed that world market price,s will remain stable.
4.4.3 Southern and East Africa have experienced periods of drought which, over the years, haveseverely affeded agricultural production. This, in principle, should not be a constraink as theprojed will exx nd to areas where rainfall will be adequate (over 1,200 mm). M macadamia treeare remarkably tolecant to moislure s'tre s it is assumed that there will be no need for irrigation.
13
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. .. . ., . '.tr(;g. . ;t, . . j,.* : v .
. I
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.g. 'é. % 'J4
.5 Prolec C - Estim ate '. j
.. . , . !
4 5 1 The project is p-qtimated to cost MkW 2b0C 70 ' millipn or U' A '8' '.2 1 m' illion 'indluding ,' i ipq net of duty. The foreign exehâh. 'g- e ,c'iokfmpb*n:nt a',m:. 'tfhts to Mgkw. 116x0. 1 m illiö' n o t' UA ' M,cont ngenc - # ,.. I () ' .. -. )i# .- ' -v.).- ?.,,. -.r ':./. .3'''' . '''h! .! . . j . z >:4
.75 million reprc enting 57.8 A o f total! p EOJH- .a . crmt'. . '..a , Tli'e, loqal .cust' ' ' m.' . 11f'.' dliö.. if. M, kW. 84.40 millicn' . t .#j.j$ -' . : çkl!hd- t!k ' '4 .. .2 - . . t t '-: L'.''. 1 '. ' ;!' . 7 -!or UA 3
.46 million reprc enting 42.20/0 of to tal p'f.ol, ',q.a'. A-cM . A suimmà, *1 of the cost' eqtimate is ' .y,-t.
hown in taî ble 4.1 below. 'F% 1. * ' ' ' tS
. : j,' . j3 g. ' , ' r,Table 4 1
. !. u..v' ''uûa . . . . , , :summaa .of,prowdxevèsl Estlmalé. bv fcbwmpénedt. <.. t h ,:L.,'
. . ' 2 . . . - œ? , . y ' ,,.
-( . aj . . .. . . .yl Mk'w ' UA!.00b . * ,1. ' .. . . . V z d
'
. .. . . .: ' .'
o . ' 'Prolect Costs bv t - rj-jtgle ':'' ' kg.'... ' j';..c2;' .' - ' yd ' Total . A '' .'TLC FC ..- . . cCom. ùnent . ' . '' . u .4i..,. . . FC -:' ''
' ' 1' ' '' ' ':''1 .. . . . . ' . ' .: :'
' - . .' . u .,
' ' ' a: ' lts'q . . . yNursery Development 2
,433.% 15,500.00 .1 7,943.04, .. 99.69' 635.06 7 34.75 0.86 . . , ,;! ' l à- ' ' . . .- : . - tCrolj Ddvelpoment. 17.550.00 1 1,150,0.00 ' 2:,7 O.' 0:0..@ h 'N ' 7 ,!J..9.4$. 456.83 1 .175.89' ' 0.39 ,. . ... . 'J '%,k .' . ab j '' .;. ' ' '' . :!! . ., ' .!; ''Reseamh 4r'Ex4=s-iqg .1.905.74 . 3.3> .90:, i t 5.2*. ,.364 .'... 1- 8.eg'. $ '. f3.gi6g. . .216.7.7 0.s4 , z .....
' '' 1 ; s;x. .. -. ,. . . . ' ' ... '.. ) ';.c'apaçih. 'J.B. . uilding 5,230,00 7,750.00 '' 12..',..980.@,0. ' 2 14.2'8.. 3 17.53 t'' ' ' ' 531'..81 0.59 . 'i . . ' . . . . . . - -. . . . 4.Infrastru. cture 27,325.53 . 7,2r.26 3k1.,'tX. 2, ..7é'! '. 1,. 1 1 9.58, 298.1$ '' '. 1 ,4.'.1-7.74 ' 0.2 1 . . ''.! . ' ; . f '. .. . ' l . à; ' . 3 *1Mmugement 1,720.00 51 ,240.00 'td 52 9*6$ -0% '' 70.44 ' 2 099.39 2 1k62,.86 0.97 ', tik'
. & . s à , k q y . ju. tC' % jqzi lilk t- . . ' ' tt j - '' - ' . .
'
>ïltal Base c. ost 56.164.31 96.302.165 152'.46-6..47 é.JbtLl. 5 3.% 1.6à.t 6,246.à1 . 4.63 ,I j '' ' z ' , ! .. .jj r: .. . . .-i ' '; . , . . . . . . r .7. . ' .Ph 'siqtjal C6nt 'injencies 5,446.43 4.90827 ' 11%354.617 ' ',0*',:
.m2' .23.. , 175 20 1 .1..01 42425 ' ' 0.,47 . /- Kf %'1J . . , j y . ., . . , . : r ,don' 'tigenlcies 22
,756.98 14,79*.!4 ' 37 5,5.5:16.4' ,j , 9.'j;. 1.j9 .j:
, 606. .32, 1 .538...71 0.39 ë.#. f,1'Pdce( . . . . I , ' .! o' !. - . . , j.- ..d
Tdtal Pfoi ect Cost 84 .367.72 1 16.008. .95. ' 2,,0. 0,3-76.6.* .. .3. k1li96. .6-9.. ! -4 .753.:...08 . . .8.2..* .77 ' .57.8 . . ' *< C: * l . . ' : - . ' ' . . .k m ; . # . ..i - i- N ux. r . : .
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4.5.2 The cost tNtimatH are based on Ma'rch 19 9'8 .currefit prices: A p hysical 'cxbl1.' ting ency of * ' ' t1094 has b een a ppI ied to a 11 itenu excep t staff. 't' 4tl). 'd' d't, rtàrlitl' iflijgi' IT-P ,4'-p,p.lii:àtti ofp of 10 q p; ycohtingepW: is baOd on past experience with ptom) #.ct.' ,K..', * f hth' is And in ;Ma .i
. l (:) . . k: ' ' ' . ..' 'ë ! 2- , jrjs .jjj. jgjjqj' .jjjj-f .jjjj jjjjtjj. jjjjtj.s , . .-j-. j$4.. jgjr' : jji jjjj j ,(ygj jr;j(r, tj a1(::, jylj. 422,' jry jj;ât- (:j,. j/,t)j ,. .. .;. .co. ntincescy of 5 A compounded is appltedt tô%l.1.l the' f'b' xre gp. e-XB . .
.. j -. . j 'e j , . ; . . . s . .w. e . . . .yc k , g . g .j . t j jj t, ; , .uprice contingency has beeq influenced by tlpêyr'pxr:lect' eldl we.. ig,h téd' z&eragè of the inflatioh. rate's. s
j l . . r .c . . o-jyj y orkpy. j : ooj pvgg u yatj lyg/o 'thhereaoèr ''%) 1hon-regional mj ember Countrie. A price conlilh geqW Q. f 1,. . . ... .
..' been xapslied tO. the Iocal cost. Th.e cllrkïb'ie'.g%nlc.i*c' t ré5. *LX '' .the w.eig'ht' qpplied, ' to donos ' -' :,1haS . .I . l %-j. ).>. - 4k. .. . ' ' !. <;. q ' . : x . jconjtribution inj föreignz currency to ofset Ioèal cost'bltllag. v Tke lyta,'l t; (4 '<',t ioElà'. d'ds.
'' s1- 'a..:ff' sala rie which ., .1. '? b ' , ' 2 ' '
nopmally lag: behind innation ratc . The cost' by cajtkpgb' ry. >.# f .expèndktirèeis summàlrised kn table 4.2 ,4$, #
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Table 4.2Sum m arv of Proiect- C* Eo m ate
bv Cateqow of-Expendituœ
Mk'w :000 UA*000
Category %LC FC Total LC FC Total FC
a. Ciqil Worla; Roa/ 24,362.36 6,090.34 30,451.70 998.15 249.52 1.247.67 0.20b. Civil lvorks: Building 81 1.28 1,186.92 1,99*.20 33-23 48.63 81.86 0.58c. Equipment 1,290.00 9.195.00 10,4:5.00 52.86 376.73 429.59 0.88d. Veiticle.s 827.09 1,460.00 2,2:7.00 33,88 59.81 93.69 1.00
e. Molorcycles 400.00 . 222.00 622.00 16.39 9.09 25.48 1.00
f Technical Assislance - 14.400.* 14,400.* - 589.99 589.99 1.00p Scvices 245.00 571.00 816.00 1G.03 23.39 33.42 0.19h. Consultancies 2.152.00 30,200 32,352.* 8:.17 1.237.34 1,325.51 1.00
i. Leocal Stafr 1,450.00 - 1,450.00 59.40 - 59,40 0.00'. Training 6.318.00 9.975.00 16.293.* 258.86 40:.69 667.55 0.61k- Farm Inpuls 17,039.78 20,301.90 37,341.68 698- 14 83 1.:0 1 ,529.94 0.52
1. Operation & Maint 1,020.00 1.580.00 2.600.00 4 1.79 64.73 106.52 0.60m. Travels: Int*lomcal 250.00 1 .1 20.00 1 .370.00 10.25 45.88 56. 19 0.00
Base Total M.16431 96102.16 152,40 .47 2.381.15 3.945.66 6246.81 0.63Php ical Contingencies 5446.0 490:.22 103> .65 223.15 201.10 424.25 0.47
Price Contingencies 227M .98 147* .57 37556.36 93239 6:6.32 1M 8.71 0.39
Total Cost %367.72 116*8.95 200376.67 3456.% ' . 4753.% 8209.77 0.V
4.6 SourcH of Finance
4.6.1 The project will be financed from three sourc% : The African Development Fund (ADF ,) the0/o ofGovernment of Malawi (GOM) and the Projed Benesciarie (PBs). The ADF will financi 100
the foreign cost component amounting to MG 116.01 million or UA 4.75 million. This is about57.8% of the total projed ctx't. The Fund will also finance part of the local cœt focussing on Roadand Training activitiH . The total ADF contribution for the two adivitie amounts to UA 2.10million, which is aY ut 25.6% of total projed cost The total ADF contribution of UA 6. .85 millionconstitqt% 83.4% of total projed cos't. The GOM will finance paQ of the Iocal cos't of the projedrelating to aIl adivitic , except roads and training, amounting to Mkw 23.19 million or UA 0.95million. This is equivalent to 11.6% of total projed cœt, or 27.5% of total Iocal cob-t. The balanceof local cos't, amounting to MG 10.01 or UA 0.41 million will be financed by the PBs. Th% eexpensG mainly relat% to 25% of PBs contribution towards procurement of Farm inputs, andseedlings. The PBs total contribution is a* gt 5.0% of total projed cost or 11.8D/o of total Iocalcost. The proposed financing plan is shown in table 4.3 below:
Table 4.3soùrce of Ftnance
In UA 1000
Source LC FC Total % of TotalADF 2.10 4.75 6.85 83.4GOM 0.95 - 0.95 1 1.6Benefciaries 0.41 : 0 41 5.OTotal 3.46 4.75 8.21 100.00
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e4,,7.1 Tj e Proled is set againk the backg-mtlnd g. fz>t' -h. e. Bànkrs Group Coun. 2 >' .stre1) ecy for Malawi, t: ' 'ih. :
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: . ' . !# ; . , J a,.t ' . ' ' ; r . 7 - . hj . e!o jwhich recognis% the malor elortsi. and initl. 'atikez'. s-tkee, -) ..d,',t':M.'.:.hjp,s. r-phsislendy' ' I.i3. a.'de. sih. c.e the mj'd g. . u . . .
#l. xs .( g 'vy . : g. . . . ; . . . , . s .. . sj19805 to mobilise dompq'tlc resources f6r tla.,b.d.'' R31, d-ttvelùnM. ént â'rl. d tp. Iiqb.ptta- Iise the economy, .. ;. . '- . qrlp;rrl i4e ., ; - . ' ;r ;x ; .? .,$ . ! j , ; , .
rjj., espedially the agriculture sector. Thesê efforK :intltde. tuh'/ .WiI. draWal' u.f thk state from' all' .*. ' ' ' . . . . '. .. ' ' .
, . . <. jo' k. j s j é. jj j 4'f,. ; jj? y e s tjw yvley j jj 'M ' rj va j * e *. 6V. o r to O g'e lla te t t1 @ * : : 'î JI ;rOdUX' iVQ CCOIIOIMiC CRtCIXCiSM: 311 / . LN . v-- k. / . ys . ,. u. '
. ykki. ..k-1 . - : ' - 1 ... . . - . . . .lenternriises. Indeed, the reforms exercise in.-,t.beuz.agté.c.y-ql'l'. t&'l1t- $ tvt- 4 'b r is all,'ri*. .s1 cpmpletwe. B-àrries -'j . v 5 . . e
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. . . . . v j. . ,? .;..mw. . j w'v . . r .:m ( y g. . . . . . ..khahve be.. en ! removed to en ha nce ra pid dê, ve' rloop'Zau, . è.t?' t/rfk 'tb. e- X. 'g ritàllt. t! Q' 11 ..OEt' or. The ',r;xt4rLq'u lti 'pgo irtn' pad .. -lof GOM withdrawal from 'pam cipatin'g .in t.kh'./w.,5q econo. .m, id è. rhhtk'é. rpris-'Nhas beern the. ability.. of the ,. '* r .I ! . .. . : - %. .
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x v y ;.4h' i'tlneoo cohj strained the smallholder econom'ieà.d. ' ,Ivltl.e. (, èsp::iall? ,é.. nl arqricult-rure plo, d4. ct. jon. The 4.9. .
. . q jzj. .y ,,,:4 . , . . : . . , -, , ; z . ; , . .t . . o.ADF .r% our, ces will solely be ublibed for tûpu acltylg',. .'':b.. uwliled'lia.tlg.. g 'n. d. accp. q: rœ d rehabflitati on. OtherI '1 . ' s, . jw :, A #'l., è. :zb . j;..donors will padicipat: ih, the maintenancé of thtp-qé r*. dgk --.-:;
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4.8 Environm entnl lmoae q '.
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. '* h !'41.8.1 According to the Bank's enyironm-ent. ail,vgqid êltiao, tlje p roject is categ.. ++- . 11 p lxject, hwaving t/ Psbme advese irta pad'q on the environmèqt. t-..h.t4:t cpp: .be âeawsily qwzâd, dkçeq- nq' ed a bky. the .inc. 6 rsm- ration of ..,u'..' .r.k l J . o . . 'y; ,.. . . ;jg .y. r . -.jjy, o . dq t .. . . Ju a .adecùate mltication measuru . The proiect '..l.!w;lv.e-$ ém.j'à1I.:.fé'e4.tlé 'g. re' iurtionj a low cos't. 'knrolect not. ' .,
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sltuatqd in o'r nea r environmentally sensitlvé. a-rsé'i-.srrk'r-/. hnd'' '-xktrlltrodltttlèitià per' vennial ccp-whofe éffed ori ''j 4, &. .. j .. . . , . . : ? ; : . v . ' i. . j., .the éh#i/onment is Iargely favourable
. r :ç.,jl &,$:. . ' . ..y ; j . t : . ' .. ; . . ' .j428.2 Magadamia would not b e planted' in h.a5.pe> b.fotlidigenos:s tfpqG , ahd wôu. ld oh.ly: be planted '
'hbldîer farms' or fallow létid. The,p''F:èl'ett, i,DW'7 ilêlkvpsï-iLàtlfz'ttjj-è,. t.sJ,î' ill)''l l'and hugb-.â'h. dry p. racticës and '' .-oh.! .srnall - ;$ .. .... ,j; t , o , , . . ,. , . . . . . .; ., .. ,. . . , . .. . ' ! . . .. wa:. jy. . jy
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j; .& .:,c ; ; . ag jk :. y. y v .(;i n ! site selecbon for the es'ta blishment of rriavc. adà- ,r4j. Ià, , :wzteév, p .é.-I. uêp. é.s (öf .oyèt' 40 /o) w., i1.I lx avdided , ..i f ion control . lnter-crö,pe''p#/lltngzk-tWli ;tt kvkântzn/.ù'.à#rl 't1 ùo4/o' *1 *-W ilil râh-jdre a. ' hii. h ground . 'fot the nurpose o eros . .,âI, ; . r . , : .: , .j.) . * j . . . . . , ,(. . . . y qgj.y yy j. $ c : . , . . . .
ycover that will in turn reducc loss of topsoil thrctueh WllRd. et*siœh' ahd Sùrfâde. l'bn-off. -'.
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.8, .3 'Usually care must be applied when 'h.andkling ' p F?-soq'tliksjde-.m, W,h.èl+ on the onè hend adequate ,.n
1 . k : ; ' 4. ' j . . : .p.k ' , gjj ga! , o. , y; (,. jj a o t j lj y . j;' , y jz. tj jj a j y ... j y . , .. y . ( , .tréining !is rèquired for the operators to akoid.; dp èratp/. d'kr. tàim' i% . . . , y . ij. 1 t ' / . ; '* *% 1 ) S 4litt' 1 e fea r ô' f the bu i l d u p of rpqid u eq i n 'tkeccgrotll'h. Q A'élp,$d' t-W à' ttélhv'h ay.sl2 - '' . Th at' ig be' Cà uje' tdè (-w0 used ' . ! r'
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: r - : ï* J jqtria' s d'àjje s. T.h $: ' tjs'è d' . i n slezYdit. ixd'e a l th ö tl g h ' s k'tf u j g ic. i d e.';S a're e,.Q remely Safe accordi n g to' iiàtetiihaptl [email protected] k . ! . , ... '
. ' ' . b y y té y j . v. y yj x, . g <jy t. L j j gyg. , + x jj jy ysejyj; ' j , s q.; ..q. y r o! jj k (j sy . . g' a t) é. a; j.? i ) . . y' . . gs lj j h tl y t (141/ o re l toxi c , w i I I brea k d o w n ra'p i d ly i Rc 1.L2 ,j.q ; t'r, wyjjsx-,; . yyss. . jj .,, , . z, qy,txy j, jaym jy oyc. jya. .jrtj. (j u ex to . s j. '
, #, j jj'virttlally'ilneffedive within four weeks. Solid .+4gte.# .!imM,I).1 e 1 . '..' ):2y u. y qk ; q , , . ) u j j yk .. k . j ,husking. and the releded nut in shell, this will be. tàkéà Ca. .re öf. uïirjg' co' mpott' ing and qj procecsings. ' jj
4.8,.4 There is very Iittle adverse effed . on the enkikeflrtleht : .j 1 ' . .e . ' : '
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; .! .. w .!': ' ;- ..). # rê . - k . ' ftz 'coqtaining somj e oiI in suspension. 'HowekgF, .t%. .e'' rarms ékmt. of salt discarded. W,II b'è within the yl 1 ' n :7 ' ' ' * v ' ' 21 < ' ' ? ' ' 'acceptablè' ra nge. This ca n be dried u,p a'nd ctj'll::4jèè1/' fd êbàr' ',d. tu- zmped. i'n a' wabk e cdlpledi6n with 1 to # .;;. A. . . . . '' .1 j.
C . ). (: D ' . jjr ;r* . N ' ' . . . . . . . , ; . .. '. . ' .5 cubic meters of water. These are relativelv. gmhalll 2à'r#('1' tu'rrentlv dlsDa ed to Iocal tive'l-s 'with no. '
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.9.1 The oroiect will soeciscally address fetnalelh'qaLd- e. d househdl/s: b.';y assisb'ng. them to 'fprm' . î ' qfj''. j e I < , v'
. r y . ) ?. - . a t .yjgroups and acquire credit on their own righ:i. Tù. ' :/i.. stWk that hJk4.'' 'm qn. issuo. are sad.eq.y,ately ..Jï
. ) . ' y:4) .. k .: . ' . .:r . ) . . j .j . jaddqesjed? Field Assiqtan? will be trained 'in q'ende,iclbiled aifk issuz> . jh. .à' t, mz na rticulac Will addre s : i ,
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x. .woMert s ' needs. The proled will encourage farrrtèrri,g- irouplttp 'be ebptftiituted at a Iével of at Ieagt ,(::, l l . . : --, - . h f(- . . . y, . . k30 16 being women. The payment will contqibute t:' àn:ljtrtii. p:rrog' éftheht ih the jlastitutionalt and health ..kl l sk t,r . ' k. ' 'i . . . . . , , . ',status of the women
. Fx d will become more avêirlb.b I:ê. .aad th2 sal'e of macadaMia nuts will .,lk 1 ': . . . tr.- . :. -. . . -qincrease their income. Women will be trainéd aiso in a'ltepna. tive ways of preoarinc nui.* 4 v v ' - ..jk. .tr
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t4.10 Imoact on PoveA
4.10.1 The prol= ed projed is supporting government elore of diversifying the agriculture basefrom traditional cash crom such as tobacco, tea and sugar. By assisting small farmers in growingmacadamia, inter crop!-d with m qle f*d crops, and tradltional cash crops, the projed willcontribute to efficient use of producbve rer urcH , fv self sufficiency, and enhanced income inthe proje areas, leading to improved enndard of living. The incremenll net income perDrticipa:ng smallholder will increase f rom Mkw. 23Q in 1999 (PY1) to MG 16,800 steady in 2013(PY15). The net income on without projed situation at PY15 is te imated at only Mkw. 3,500.
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h., cx: ..('m ). .. v#,- e .) . ...; '.)-t'': -1.S.1.1. The Ministry of Agriculture. and Irrlgaz.' q!l Q' l . ugxe prjf/éj&poéj ' 2.'g.2j<.dL,' jèta' try''- ' 'j'ppl , ks jj) é.. '.j çj m jqjxjat, jvL: h ea d a n d . .NIAI' is headéd by a Ministe. r. . . . . -. : . ,2.) ,, y ,
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He wH.it ' w-thltpf'kqrall cpuo iidslkwztt oripf tbe dây, ,>. zay ad, .ivis' .es , ; .l of t'h. è Mi n i . The Conttoller of Agrilk.lt *-u. r 41 'Sê..- -T.-..ry. kd' ,..œ (, .: . -, . v) wis. tj è, tedhln ieâl? heaed. öf the M i'nlslt- >. !r. ,.,'t @ jk +.i. ' ' ' ( ' r . T.!: k 'J'.;< . j $ .i&
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..Conservason. There is also the De. partment of Fi:aece, Ad m. îpitt' ration éod Perscni*tvt; The'fbod 'l and Nui rition unit deals with pqlicies rejasng jo.
. f,,o, 0d.-. è,,)yn4 aut-risöh. .rand' early warnih-grt. 0'1m.' ' plex. The' ' ).z .4.,7P/annino Division handle.s issues relatlnn ''to 'R:'(.1(.1,:t-i'tin,#. s'tid' itt)n ' m. arkébna, mö. à'torinn and. ' .:>'1 ..,. . ... x z. y . . lykt.. ..,:.,., . u . 'L .-..,4 - . . ... wx .. . ..,' . . ..- . .$ evaluation
. The o. rganisation chart for the MA!I.I: alp g -e. nd* as a'roex. I
1 . . . , . , .5. 1.2 The Controller of Acriculture Sèrvice.s *iIl, b'ê.
'
y. he .overa' Il-ic,o-ordinato r o. f MSDXP. Under the ' . h' xl .
'''- '''; gjjy;. 91 t) 'l) . ,. . , . . .x jjjI GV, fall the departmen? of rMearch/ exteriseli .n. : layd , r.>' urdê,' a'tkd .?c. uyetk. eti p ny aI.l(,-öf Which wi'II . . ;' I i-tï' -: . -:) . . , .k. -I, - .. . !4$41 ' .be concErned with the implementation of
, thë prelèd'. 1.t .is ap plopriat: th at the mop ito ririg and . 'evalù' ation of the projed will be tlndertakén' .by. tbe Plennirn' # ,(.)' ivision, whjch is independent from ' 'athe ),, ,, ' . . 2 jj
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5.2 Oroanisation and M anaoem ent.. . ..- ;
. ;;'q ,,-z,j.) ..,.l - headquarters wil,,I bà' '.
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-it,
,h. ,-m'' th, e .MA1; i.n u .1q,ô. q.,w. e;. o ver
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I.5.2.1 The prol sI f
t :x: art: no parallel. âdministrative '' 'responstbiliW for impleménZng the proled +i.IiI. l;f<t.'. with Mz . e . .i - l - . . e ; , . . 2 , . q s. . . . , . .lstrudture unit will be created. The Controllep'of -Agri-etiflttllre S'e/viçes will l'j e the ovdral'l coerdinator .
tof the projed, as 'is the case With öt#er gg. ydphrri. eyt,.-progranl. . r4$et>.qu, . 'Hq will b e atsitt' ed .b-.y the 8. , t. . . . . g1 . .:.4 v jyjjk Lj)i ; p . L . jk . j .. ., . . tjjjk
respective j Programme Managerj (PM) öf K ag-ùip-g. tkj-Ag-'fiit. ultural Devqloprdept D. 'ikisioh (A DD) ? 'àpdr '7'' '. .. ' . ':r . ' ' ( . . ':.lMzuzu ADD. The PMS will be fnlly reronsiblk fof ïthoe' im. plorineeptawyton a'ct. 'ivi'àM'. in their respFxctl' 've, :' ' *
,l' ! r e ' < e 4M - # -'. ' v . k xr r; . . . ' ' . ' 2 1 '' 7 1*IAD D . ' Th e 'y w i I I re ;r rt d i redly to th e CAS i rhikilgqg,, wyususqy, .' -é- ij ' 'b' m' 17/t11 n g. 'reg u I a r re ps o i'l't . . Tb ey Wi'I'I %' .' ;: t, #)responsi ble' for integ rating the proj-ect àcti' iyv
slbtsx' D' f, 'ifiii *Q.:- : rjtxg'- gI'à,!r, tMAF a,d. ''ivi,hti'ee i'ri tG.hk*ecl'/ r'Gpedivèi' .';'' ,i'' J1/ 2 . . . ;. -: y;j. q - . Tj . k . . ,
- : y. jyy j:j jjgr jj ;z. . v jk j..; j.divisions
. The Divisional Hortcn, 'ltura.lis4'.-w.lllhjj.b': di#ex-wctly. resm. nglble fdr p role - adivittœ 'irl , jrespedive d ivis i o n S . H e Wi I l be a. 5S isted. b. y .$ Lttltbl edt . rTQ .j'.t1'er '$..péçi a-ljxeq' ,. of th.. e t &... -qu p .... . . . . ,. . .! ., : ,j .
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j,(ys ,rs w .j j.j ao . ; tEPM ! . At g rassroot Ievel , ..FieId. M sib't' -àln. ts 'upnd. e.f' th g4 ,,pwt-lliD- pty'.. of tl! 4 . . . . ,j w :1 . i t , . j;y. . T.. z . .,<&'eqIt: yj!jj . z . ( 5) . e x . , , . .#4kjp . Njjbe rejponsible for day to day prtted actik. itle 'cortf&o4rii), . ' 'tô. . th'ê âdqptèd 77. & . V ..eltéritip. n s - ém. .# tt.e
k I , . :, . -ii J , J)It - ' ' - ' - : - ' . ;yjNoo lthstanl ding, the GOM will be. req 'uked to. rè[email protected].,,,ItAj G .p4,' (;.y govepqtment qqle' értd prockdur% 0f. .. a, .' mplêyme 'nt, six qualified mother nurseœ. mà'''r@g-ê&, arhd tw&o' èxpe' rfeatèd. d 'fi 'k. ? ërs' t:.- aqq i'st in tqe': ' ' ,#.--. ,e! . . 1 . ; . .. . . . . ''prqed implementation
. This will be retajned a.j a Iœ)d!;) 'condition. ' ''.ht . , ' . . . . . '# 1. 4i -' 2 The staff at the Division Ievel will be delegéted ''ilasre' asing ra po. nsibi,ièitv a. nu qtc, ouctabiiity '$5i5 . i. . .. . . . . . . . ;,x r:k I ' . .
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j . . . . , . ,for planning and implemen:ng prol. ed adivitir-q. Tbèy Willt. br. e.: reltm Rsible for prêp aring budge? ,y. .l 1 . . - ù
'
') . - . ' , . .z ?'. ,. ïq - . :.,?n(1 monitor financial transadiohs. They will 41:: be rM' m. . risiblé for preparing work plans which .'. ,1 . ,. . , u , . . . .kwill be Submitted to MA1 headquarters for rev
. ieW. âind-' zapprovalu x. .j. l ' . . ' . . . j. - . -F,g' 1
. ' 'k . , . . .
5.2 .3 The MA1 haS the drnà nisational capadltv. , arfdv'' meelivated :S4 :ff to imolhmergt. the projkctk. . ' 1j œ-' *. .; '' . ' e ' ' v '. . ' . ' v ' ae'.g .. . v' - .' h i1I be the maj4. tjr' yeikc' 1'è ''fo af,.eceikomp.. l'è':m. 'er'htilù: . the projed- , is . efïectik'e . '.i=t',The extenslon service.s whic w .
j . ' . '%% ( ': ) . .='lltd' at the re'g- ionll a n:d *d'. is-trict 'Ie' .kel's w'h' iIe at : '?'-'a nd fu hdionj a I i .e plann i ng a nd management t-àkeos p- a ,
.t. , , - #.h ' I I FAS a re in d. ir'ed c:. n'taft:ywitll'y 'fatméts ot7 'g,re. . u 1) repre'jçritativès t0 i7mp'' art . /:%?t e grass rtx t eve
, ): , , x .$ . .% . , $ k .'knowledoe to farmers. AIl ADD.s, RDPS and ' V'ESPM ifob-llbi's the s-g me erènsion app'. roach that ha's . 't: '-' ' .' '' 'b . i) . . j l . q.;st , -:been based on the modified W orld Bank sunnarted' Trajçainn. ap. d Viéit svs-tem. ys I . ' * . . ' -'' ''''' z . e . . .'
. < 7 ; . y ' ' I'%X. ..
Teoh nica I ieance/rnnsulo,nc.v.'..seNi,ces u);! ; .vr ,g.;ë 1 . . ' .,ym5.2-4 MSDP will be whollv implemented, by MAI q'ta' ff within the exis-tin: inMitutignal l'tv' i ' ' ' ' ' t' ' - tir q.q. uipp'èd with . thp . teckniiral. a'cile... ast. , qzf ' ' ''. ''',arrangzmens. vhe MAl q-taff', however, i: erjst wè ,..' -azacjia idevelopment
. Knowledge on exteaus, io'n', gtrad. iog, on o rm prcce' sing and markvtinp of ' ' ,'t''mj a ( . .. x . . . , .. jh . ' ; ' . . ''v':<. .-;
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*
macadamia is Iimited. n e projed has therefore made provision for two long term TechnicalM sistance for a perie of three years each, one short term Technical M sieant and short termconsultanW Selvic% .
5.2.5 The two Iong term TM will be experis in oe pre uction, procesing, grading andmarketing of macadamia nut. They will be lY ated in tAqungu and Mzuzu ADA , respec vely. Theywill work closely with extension omces, speciscally the horticulturalim in macadamia nurserydevelopment, macadamia production techniqu% , diseax control, grading, procpming andmarketing. The TA will also be involved in the training of extension qtaf and PBs on macadamiadevelopmqnt The Terms of Reference is ac ched as Annex 8.
5.2.6 A short term TA will be retained during the f1rs1 six months of projed year (PY) 1 toprepare detailed training manual and programme for erension/rœearch omcials, and PBs. Followup consultancy service are also planned. Provisions have * n made for short term consultanci%in such sx cialised areas like gender, capadty building (group forma:on) macadamia marketingand credit administration, impact evaluation, training and audit.
5.2.7 A consultant will lx recruited to prepare a deo iled invenYry of the road conditions andprepare the scope of work for the tender documenl. A consultant will also be recruited tosupervise the implementabon of r> d rehabilitation worM .
5.3 Co-ordination of the MSDP
5.3.1 The projed will be coerdinated at three main Ievels:-
at the Divisional Ievel where aII govemment development organs, and theirpaoicipa:ng institutions are represented 'at the MAI headquarters in Ulongwe;at the donors Ievel.
i) Co-ordination at Divisional Level: With the exception of the Infrakrudure and CreditManagement component, aIl projed adivities will be centred at the re pedive divisional omce ofthe MM at Kastlngu and Mzuzu. The roads and building adivitie will be contraded to privatesedor under the Supervision of concerned Minislric. The Ministriœ of Works (Roads) and Minis'tryof l-ands, Housing, Physical Planning and Survey (Buildings) are repr% ented at the Divisionallevels, and will particix te in the normal monthly review meebngs at the MAI to facilitate progrH sof adivitiH . The PM is the chairman of the Review Meetings. No Specisc c6 mmittee will becreated for the projed because this will entail duplication of activiti% . Credit will be adminikeredby RMFC. R% m dive Area Manages will be invited to the Review Meetingsf
ii) At the MAI headquarters: the CAS will be the coerdinator of projec't adivitie . Regularmeetings, of Diredors of R% earch, Extension, Animal HeaIth and Land Resources, chaired . b? theCAS will take place to review progrecm of agricultural activiti% . The head of Planning Departmentattends such meetings. If necessary repre entatives of Ministrie.s of W ork.s and Ministry of l nds,Housing, Physical Planning and Survey (MLHPPS) will be invited to participate in such meetings,which among others will alK consider the implementatio: of MSDP.
iii) Donor Co-ordination : Qlnor co-ordination in Malawi is formal and institutionalised it isconduded at three levels:
a) at the Head of Missions Ievel where general m licy guideline.s are discussed and co-ordinated. lt also reviews on-going activiti% . The meeting is on weekly basis;
at the head of departmen? level, referred to as the Technical Committee, whereco-ordination of projed activiti% is discussed. This committee meet monthly;
b)
19
1
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cI) Specialised committeœ which rpeyt moh.,tb' sèly or as nectuqarv. These committ- c. . . r. !: ' a . : .nsider s a Iise suN' J'erlq. lllke-ùilôtigszlbon ; f ., c : secu.'rity ; . MASIP; poverty. ete.co
. . . .'f j/tita (xk -: ; :' 'ltV' nj. kmx'- kryes, ' w h.e re s ti 'e-y ai. lSb: d i'V ' u SS a nd i 0-Donors are repreente' & . : . ,. . z , k' . r y t . . 7 ; '
ord inate onwg oing p r:J. e-- q a'ô. d. uprdléct'ql. ' . in th. e pi.;x' .llne!. ,.. .i .. i . .. : 'Ihe rpqull of the co-ordinate adivitie é'to encoyrfzé.ginge .DL! p licatior) of )a. cti#itie is Y ing) avoided
, I . - k jwtj ,, .,,. mjky : y àxy, ,. jjyjtjsy ,, e., j ,w jty vanvoe t,s . tejajay. -entatives ofand. replication is encouraged. The p Fè'x-ie p .
, , . : . , . .. . . . . . .j ? , r:u :x jkt'? ''k.t MA - ) vttuiqitt tu s'lxlu .. rnja; tjo<it'- 'co:khl' ud. 'itvjr, thetdonorj comtunity - the FAO, the W6-,./Id q-an ,!!t.hk : E Ug a'nj th. e . . .v. t .z. o, , ; .k ha d..: tno ö bj edi o n to th e p roj e b ei n'g-' L i fiip. l'e nl évlljz#dk, 4p$ fr y- kh' d. .e'' '!'.lt% é ' dta. i j l n q f. th. 'e.
' ''
;k p, t 4 J ,. léd, g . ' kxtâkr-- ' i n to' he propx ed MAsIp.
' FAC. c iv- f/kWlêev: 'o. e- àtiwj'fq..t.a': ; ,h. ce tor' the qyqcktjtio. n 'öf. . the;;
c o n s i d e ra s o n t y c - : ,k . ; ,.,.r @ .Macadamia Marketing Study. The prox. d .t4S,y,..d p-jip. p e. ls .C$. nsik' .-ent W,It.h' t10 lêaoe wo .
. . ' y lxt j .u% i . 3* j r. $% . w y '. , , u . ' 'jj y' ' ' gj e eg. j rj g. gi *J.oblective of the propYed MAS
. 1P. n. è mlflus' es' pfzthexdonor ccœ ordilnatiihg cöfnrri' i :y : . ; ;. z. j !. . . , jjd.will be submitted to the Bank for infotzmcàstltp'trf, . and Utjm' menl. The Bank ià in 't,h,'e. pracpqà œ. f' ! 1. 1-C' $7 '.- 5 i - ' à '', ' .' . ' ' '' - ' : krecruit' i.ng a lx al q'taf to co-orlinate it d. etèltips ifo etst actvib.és in' Malâwi. 771. e qtaff Will. 'be able to,' l '1 ' ' ir ' - ' ' ' . 'k ; ' . , 4. . . .
particlpate in the donor co-ordinatibn meeti hg. z
5.4 Traininq and I-ncentiyes,
Traininq
) ' . . :. . . . , , . .5.4.1 Capacity building in general will. b,q lnltism.m. #wt'ksnt coh' t rllb.wl 'iag f4 ct'' or. 0. - 'àtrhe 'sgztceqs of th-et . I - ' -' *'' ' .-x$>ce' v 7.' '
. k 4 . : . , ' . . . -. .
broled Gnecially when the existinn q't. Aff-afreï tlec.. fiirkd' to imalktMen' t a. D. rolxfvt. o.f Whkich' techaical1 ' : ' *' '' ! R '> '.'! . '.'.j. ' . t ! LJO. ,: . ' ' œ '. 'r ''' * .j'. ' 1 . . *
'
f . '*' . ' ''V'
..; .7know how is inadequate. Provisions héve .bqgtàro. &d'@1:- ' :?' teyudtlwawlily tgp. grade the x>teciçaièal know howI ! K'M ff o n ti :7 :14:a* lieFrii. l at çr-ee-'' ' ' -f-711. . is' Wl1 l . e6. a b-I é. t'h' erib t'o lkiisfa ct o rilypf the r%earch and extension ,; - . ,, . . $ y r .l .
' . a
. . .; r t a r yy. r jyj .. ys ...r , .y.. o yyy. j jy g jy, j . . .j-j,ju. ,jy n jyj, .,j j .sjutjl jj . yjj. a j jj j ,y . ktjg. einterpret r%earch recommendatioa. s, andkad, # isp' kt>.e-. . . ; , . . ? ,i r hort term TA will bfe' tètaihéd tö p''repâlte a' del. i.led. ttreinintg' -' prö. g ramnq econdudèd in Malawi. A s . ,- .' 21 4) Some s . 'alised tra' ining afbr- goverà. mepl. qtal i'nvolved ' in th. e projed( pa ra . 5. . r . , . . , s .r 'i
'mplementation could be considered abroasd.
1 - .5.4.2 Participating smallholders will a.lFo'ib*laeGt f/-om prgeqiqed 'training, locally. The. exio ng
.! ' ' i 'd f% y'lùçt/ty''' . e af gersidqntial and' day trainipgk'training facllitie in the prolrxcf a'reas, ate well éqj pk. pe ; or -; . 4, p., x . . . jk . . oyw v, a . : ; ;, . s psy pgj.. q.. oj . sjjju a ra ya yjj ja.. g, y j, yy..a yépropojed under the prtped. Traihing wlliloi/qclpde .'4 -g. .t4p::rk1,1i...
.,
, .. ' 4. , j. b :2 . ! #: . ,contrbl, procesing at the farm gate marketiqgfdplntqt?tmirerz. g@t#,.q;4#i8e . Theàe will al.K. be specialcoul-ses, on. groups formation, to s'trengfh@h. .r-,ex'if-b(ig . farqlglérg: glrvups, or whe. ret' lapprop/iate,: , ? . yj :à . .eq-tablish a qex farmer organisation
. Thls 'wiI,l''ptrb:, v vi.d.ks.tthclm Wl,t.h. theqpp', porttlnity. of man'aging thei'r- i' irs I and effedively warticipati'ng in ythe d, ès-ijli' a nd ' ipljn. ê'plàme-rî. tatiùn of'. proj@rm'è '.? affeding'own aff
,f j . , )j , , . . yoryoatkoy.ythem. women and youth will t)e targeted. . A.:..K, b.. rt tecrym,
co. qsuly, é'ht/pspeclàllis-edk itn groupj l . ' . . , v? . y ?: jjya t jo jyj' . (, ' gyjé ..' 5 . k . 5 )Fill be retained to assist in the settlngsup. of th%e Qqga.rl .
I
IncentivH1 ' '
'' ' '
5,4.3 Th. e projed is appropriately deigned. ,san; js loqjGistentawith thg ob-j-ective of the propxed.. MA$Ip.') 4:. êhêi'j çhould. t >' a lsaiqnétnurag'. emerft toMalawi Agriculture Sedor Invu ment Pregpà'hl'' .r7)g ( :, ; . ,i . s ;.,..g suo wijlt. b', ev Tmioi,mised at tktie -timè 'bf' Iauhdhinjthe staff,in the fact that institutional and .legsy ul. ls , . . .l
f ilities, infrqssrtlektote (œès-'iiyjen'tiàll aod funit ion'ail- btlildirl/g:) improvedMASIP. , In ajdition, training ac , . .;' ' ' Cèirig provided to implbve' 0, n' the workingadcess roads vehicle and omce m uipinen). are b .l 'environment.
5..4.4 Participabng smallholöers will b, enefit vfram jifnp, .rqyed. acceasà r6jid ék. m apkebng fâcilitje.s andinformation; as well as comprehensiv: trainiog . programme fôr/: mâi'e ?d.' atmia dàVelopmént. The.seact, iviti% will provide sufficient incentivH to thq, betx/fidiarie-s.- ' Ii is a'nticipatèd ihat farmkrs willappreciate the support being provided by the Jgnçjed t4. Xàijsitt 'th em ih. 'p'eablishing farrmer groups.t
. l ' 'a . . ' ' - . . . . . .T 'hese qrouns will have Iecal backinn aùd will irrbnower f'armerFtu negotiate nx re com 'petitively in1 4 . - ' ' 1 - *' ' '. '- .areas of ihput supply, pric% , marketing and 'trané-pottâtiön.
20
2 ' . .z
N. e%.N .. . 'W . O MM :Y '
5.5 Procurem ent
5.5.1 Prœ urement aa ngements are summari>ed in table 5.1 Y low. All prx urement of goods,works and service snanced by the Bank will be inxaccordance with the Bank's Rule of Procedurefor Procurement of Goods and Wort, and the Rulœ of Prœ edure for the use of consultanl usingrelevant Bank Sondard Bidding Dx uments. '
5.5.2 Malawi's national prx urement laws and regula:ons have h- n reviewe and determined tobe acceptable. n e MAI is the FA. It has a Procurement Unit stafed by qualised personnel. TheUnit is supm rted W the World Bant lt is conversant with % nk prx urement rules and prx edure.
Civil W orks
5.5.3 Prxurement of civil wpiks contractq (roads and buildinjs) UA 2.30 million, and UA 0.06million repectively), will be carried otft through National Comm btive Bidding (NCB). The Iocationand size of the construdion wo* to * undertaken are qcattered and in remote areas so that theyare unlikely to attract bids from oulide Malawi. In addition, there are several internationalcontradors lMally Gsqtablished who will be able to compete.
Goods
VehiclH and M otorcvcle.s
5.5.4 Contram for supply of vehicl% and motorcycl'œ (valued at UA 0.12 million) will be procuredthrough NCB. n ere are several qualified Iocal Suppliers repr% enting international companie toensure comx titive bidding. AlternaNvely, the servicc of the Inter-Agency Prx urement Service.sOffice of the UNDP may tx used.
Ecuinm ent and Office Stationew
5.5.5 The contrad for equipment (valued at UA 0.44 million), will t)e prx ured via NCB. Thecharader of the m uipment, (mainly farm implemenY), is not iikely to interpqt suppliers fromouYide Malawi. n ere are several qualised suppliers locally Fvtablished to ensure competi:vebidding.
Goods Drocured under-Line of Credit
5.5.6 Goods purchased under the line of credit will be procured in accoröance with nationalprocedure.s which have been found acceptable.
Technical Au istance Consulv ncv ServicH and Trainino
5.5.7 Procurement of Technical Assistance, an Independent Auditor and Srecialists for trainingwill be undeoaken through Limited Competition using short listing with selection based on technicalquality with price as a fador. The Iist of training adivitie is a/ached in Annex 3 -C.
Generàl Procurem ent Notice
5.5.8 The text of the General Procurement Notite (GPN) will tx agreed at negotiations andissued for publication in Development Business, aoer approval of the Loan Propœ al by the Board ofDiredos .
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Review Procedures
5.5.9 The following dx umenl will t)e reviewed and approved by the Bank Y fore promulgation:
Sic ific pc urement notice ;Tender documenl and Requu for Prom sals from Consultanl;Tender Ee luation RepoA and RepoA on Evalua:on of Consultants' proposals,
ndation for contract award;including rcommeDrao Conmacts for lorks and gx ds, if th% e have l- n amended from draMincluded in the tender invitatioh document, and drao contracts for consultan?servicH . '
5.6 Im olem enO tion Plan and-Expenditure Schedule
5.6.1 The proje Ls d%igned to lM implemented over a five year perie beginning January 1999,and be complete by rNvrem- r 2003. It is planned that the 5% six x nths of 1999, the Projedyear 1 (PY1) will * devoted to organisa:onal aspte .q of the project. This will include recruitmentand registra:on of PBs, crea:on and sensitisation of farmer groups. Pc urement for works, andof goods and technical M siqtanl will be unöertaken in PYI. .
Table 5.2.Im olem entation Taroet Date
5.6.2 The tenotive Q rgets datc are summarised hereunder'.
Item Activity Date
1. M ard A rova! June 1998 Board.2. General Pr= lrement Notice JuI 19983. Loan Si nature Au ust 19984. Loan EffecYvene s November 19985. Tender Invivtion for supply of vehicles, motorcyclG , omce
m uipmént for dvil work.s and TA including short term January 1999consultan for rou d amio and trainin
6. Award of contraA for supply of vehiclH, motorcyclH and omce Marc.h 1999
7. Award of conyact for Civil Wo* A riI 191 '8. Award of conyact for TA + short term consultanl A ri1 1999
9. Mobilisabon of conyactor for Civil Worc j May 19991O. Road rehabilitzuon/construction of buildings commence.s j January 200011. TA assume work . June 1999 '
12. Training of Extensioa Suff j May 199913. j Gtablishment of Nurseri% j June 1999Iz1. Recruimnent and Registration of PB5 ) July 199915. j Training of PBs commence . j Septem>r 1999 l16. Macadamia Develo>Ment Commence j October 1999- I17. Actjvi:es Complebon l December 2003 If
5.6.3 Annual W ork Plans: The participating ADDS will be re ponsible for preparing andupdating Annual Work Plans (AWP) and budget for the MSDP, in accordance with theimplementabon plan. R e AW P with detail the adivitje.s planned, the budgetary and humanresource.s required, perform?nce indicatos, and the procurement programme, including thecontrad package, and es-timated cost. The AW P will be submitted to the CAS for approvpl.
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Expenditure sched- u1e bv rnaniip, on.entl . - . -,' :- . ' '- .
5.6.3 The expenditure schedule by c:mpe/erit föt éach y+. af 'is shthwn i'rl 1. ,bl'e 5 .5 hkreunder:. * . . :
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Com onent 1999 . . - 2:*. 'bi..'.,,.' , . : o'z4-olip. '
x. o : .37022 '.:: .(. k 2Q03 ' Total ,. . Tplal..L u t ;
. .t a. 'NCRDI' Development 0.21 . ' ' .U'.1'! '. ' ' '3% .1.j ' . - s .A ! Vt IT . . ' Q.1'8 0.:3 10.6, ., . lt ;k . ; . ; . ; .'' ' 1 . hp $ . 'I b crèp 17e1 velopment , 0. lo '. .. t/.f1 1ç:, 5: 1 1-- '(): 1.2' ' . k 0. 14 o.5g 7.1r . . . j : . . . jj.r . v jy . , . . f . -.c. . Resiarct & Ex-tersion 0.c4 . ' o.o'j.cc- -. o. ttlj: . 0.... t, .b4 . o-)-g 2..2'd) capa' citk Buuaing o. 14 ' o.'1.j, . b..,Ip5t 0 l.5 '' ' 'tt.l6 O 7,5 9. 1'e. Infrastnkcttre 0.35 ' 1.14 . ' '. 1 .2 4 0.30 0.3 5 3.4.1 4 1.5
. l ' $. 2 ? ''' .f. .proect Manmgement 0.67 . (:.43. . , , t 065 ; o-2'.j. ,- 0..44 . 2.4..2 29.5
. .. - : .* . . e
!Total 1.51 2.04 2t3...4 1.91. 1.34. ' 8.21 ' ' 100.0
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.:. à*I.e :5,.4*. ' i' .
. . . 7'u ' . f .))Expendin'ri sdbà.dullév'Y'yA'%zù*ee .of;4'n' nanrou %. j
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Tltal: com onent 1999 20.00...1 . .. - ..1 . .. . tr '. - .
',, '' '''''%.jà;vj,3)f, '9 ' r ' 7,,, . . . . r .. -Aolr. ' 1 . l l l .d3 , 'à- t'C 'f 0.72 1 .00 5.t5 83.4l '' .
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<;51 ' 2 G4 ' . ' 2../4 i 1..(f.1 1.31 8.'71' 100.0'rotul 1. . .. ? k. .,..
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M < t ' 2 'm en. , ' . .:
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'Ncqrrjofnic 'and; PlianlAin'g Division of ' MAI will be5..7..1 The Monitoring and Evaluation U.n. it ;(M&'E), .;,. z , . ,
're porisible for the monitoring exercise ö-f- th' élyrolkcht.. . : 7-h,e . ,, .equi pped to t condud the assignment. ,Thjrs'.'G. JQM.. , h à6rp ,':j :greed. ' )t4' ap Lpo. iqt , tw' o eeb- 1R. o'fdissts to' bqsta' tioned' ilj Kaiungu and Mzuzu ADDS re pedivelykipiin tl'lldér to skt-' 't.ehé, 'gthg: tl4 e monitoring exercise!
. j . . . x . ; ( yoyk ,jjx. .yjjr.., . y,, jj ; jjoa yy -y; sytajjjo, j.j jor tjj efin lthe pro
.lkec1,, a rea . These om cers ére to rG. tlh'rm è. hthàirr d.ut g . . ..'ed. In l addition, the projéd hali made -''p1 'yo' vis-ionkj for- tw-'V-p'.c cö' 'mputers ' t'ö. improve on the'prbl .. . . .' . 4 ! . . wh ' ' . .
monitoring emciency. . ,, , .1 ..' '- '' ....
' .I ' *
'
5.7.2 Th: M&E svstem under the MSDP would have two o eomoanen'ts' :.' M'anaaement lnformation) ' . .. .' ' ' ' ' ' . !; ' J) '%'.zï' y., ' *' . . . ' % .. f ' . '*'e 1. y . C.
M1'S) an'd Imm ct Evaluations and Ben*fidi%ry Mf.'.j'-'m.smenl and Fàed Béck (IEBAFB).System (. . >
. sz .t1,u%. svktiefùa) The Manaoement lnfotm. a o.c > ' ' '
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.7 .3 The Mt IS will basically be a tool of Rqpb-lr.1'i'r),, g,' ',.;. sys-térngzs-and therefore qI.Fxo.. : mû,nagement' '
information 'on : '(.,i ) .' -p'h- # '.<-iie..7al'ï i'nh ip.rdl'+rb. ''gàft-ation ; ç01'lt.-'ectl- . 'ng i nfor'ni a.tiontod,l. The M1S will provide tl ' . ' ji ' : . ' ..+ ' *%' ;: ' '1g7'relating to' the imolementation nroc%s. whetki-ii-.tatcaéts- . atté be' inc.rxlmet or not; (ii')' ' Relsonnel .1 . K ' . T- * * . :
'''- : .è s x ..e
'
4. .. ' . ' ' . %'*'
. ' . '* '' . .
information o 'n ava iIa bility of K-taff as indicated in .t'hh >ê:iS->'. !k.'' ti m. e of recrdithh. :nt Jh.: dtl. ratib. n o'tn the. j l . : . . .!:7 7: . -tr 3$1' ' 'ri. ' . .
' . '
Job, ( ii i) Prog reqq on recru itment of PBs aga i nstxthe .t: jgîp-tg' :; '(' Iv) 'Pro'g re s q on q't' 'a' ff a rtd PBs tra i n i n'g5 ' l ' Fi nancial inputs: ineflc. F (af Y'utrflihs timing, and tltil Upatinn ag' 'a'i nst plen ned'aga/ni;t planned targets, (v) . , j ..: , . , : ,l ; /
., z,tusjyjxs a g z i n x. tjye p roJ ect. ' o rj s .sources an'd use; (vi) lnformation orf outpùts' ahd/ôr r . ,( . . ,. . . k. : 2 ,; .
, . .;
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j . . j . ., . a . .) ..5.7 .4 Th e M&E will collec't a nd collate the data7 .to d,' Setermine whé. ,ther ta r'ge.ts ar : bei.ng. met.! ' 1 . , ; .. ..?r ;; ' - . . . t: . , 'Feed backs' 'will be rrzde availa bIe to the reS ive PM Whereb y causetive fac4- or.l . will: be d/bate. zdl . j . . '' ' ' . ' 'u
'pog ,a.nd plaxn of Adion agreed on. 'l
. . . k' '. z @ ,:,:u...', .(2 x-.z..tti--,kv-k-lyw'u ..2...fzu. u.-'-u.< .'- . ,'''.:z* c..-.xvkauylk?-zxuu 'z. .,-.u..=.u. . .
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.. 1.J. .' 1k&Mkb) The lm pact Evalpations and Beneficlirv Ass- qmene
5.7.5 R e impad of individual componeni or activitic will be evaluated annually. Theevaluation will have two componenl. On: will utilise quantotive data tq measure the impad ofservicG and input (TA, consullncy, Training and Credit) of the prolvt on produe on andincom% . The second ee luation cömponent will be the Systennatic client consultaton which will bebasically a feedback from the PBs on the effectivenc s of the project, in terrrs of d%ign features,compatibility with lY al M pirations and expectations. Apart from providing a check on the rc ull ofthe quantiltive evaluatons, this will help to identify rm uired imqrovemen? to increase the imxctof the proje , on the intended BPs. In vieW of the fact that thls kind of evalua:on and analois,may Strain the capacity and capability of the M&E unit, provisioM have la- n made for a consultantto assist in the data analo is.
M id Term Review
5.7.6 A Mid Term Rw iew of the proje will be undertaken during the third year of thqimplementabon prx nm. This exercise will asjes proje performance since il inception in tqrmsof de ignj targel, O neficial a%e-tmment, cœ tings anö development impad. The outcome of thereview wlll provide a useful opm rtunity for the Government and the Bank to make the nec% saryadjukmenl in Iine with the findings and recommendations of the Mid Term Review.
Repo/inq
5.7.7 The MM which is the G , will furnish the éank with quarterly progrG<m repoA inaccordance to the terms of the Iœn agreement, in the format satisfadory to the Bank. n e reportwill tye a tx I of monitoring and evaluating the proje . It will conoin assesment of the actvitie.sduring the previous quarter, explanations on the deviations from the targei, as well as financialperformance. lt will alK include plan of adion and the budget for the following quarter. The BankGuideline for preparing the QPR haS been made available to the MAI to facilitate preparation ofthe repoA .
5.7.8 The MAI will t)e required to prepare Projed Completion Rem rt (PCR) within two (2)months of conclusion of projed adivitiH . The nec-qary guideline will be submitted to theBorrower in due course.
5.8 Accoune and Audit
Accoune
5.8.1 The MAI will maintain an accounting and control Sr tem which are internationallyacceptable and are cax ble of reliable recording and repoing aIl financial transadions. TheAccounting Department of MM will manage the accounting and control systerns for MSDP.Separate accounl will be kept at aII Ievels from other accounting activitie in MAI. Re-spectiveADDS will maintain adm uate accounting records to allow accurate and timely recording of itsoperations and will prepare annual Gnancial stztements in accordance with generally acceptedaccounting principlH : The e annual snancial statemeni will be conr lidated by the MAIAccounting Department. Annual snancial StatemenY prepared for audit will consie of an incomeand expenditure account for the year, commutative accoun? since Ioaq entry into force, asummary of the reimbursemenY claimed under the Matement of expenditure (SOE) procedoresand Statemen? of invekmentvseason'al credits fôr macadamia development. These requiremen?were discussed and agreed upon with the Accoun? Department of MAI. The Accountl Depaomentat the MM headquarters and at the ADD levels are adequately q-tafred a'nd equipped, for this kindof exercise.
; W.
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1 ' . ' ''i'--' ''C. . :.. j ' . . 2 . !. . :,.5.8.2 Tj e annual financial qtatemtntj of th e tptole, û-t ,Wi!l * ihterhally audited by th: GOM L .
atpd'itorf eneral. An extem al.ly recognisqit-Apd, itbzFfjm, -qqc,):pt4;b.I@:'tQ the Bank .Fil.I. ,be l'eta' irted to ad y''.Ii és Externa'l Auditor. provisions have beeen..dkh-fald'è-'f,st:,' thi's purm' . se. N'''.ét latei' th' ' arah: sik 1(6) mônths of .)t'* ( . . j . , x v . t ; . j . .). . . , . j . j . . . . , j. . . . . w , . z. yjjs,.. l . : ' . r L y. j) . jso ;rj k ..a jjtj ited fi natnzlal 'yqt'.. ralt:mens of .l end of xeach 5na ncial ypa r, thè MAI +i.11 :',s9. bm' it .t3 t 4 )4y. yjr . ,r v ; ,. y , t.j. t . . l . . : h . . .tJqi .jj; ... ... :invpcment credil for the prveding
, financial ye. ar', ''',é#.,d. tted ,by a Mxt'emil ap.d. .j.1to, . r âccep 1. lble to th e , -;( k ' ' ' - 2 1,,Ban . g
. k : .kx . ,
, #'. . t' w j , g.( % ' * '25 18 3 ''In addition to the annual fin4ntial g.tàit.'çlt1g'-pl *.è':tàud.kiiors wtll a'lso confirm that: (i,) *, -. y ' * . . .
; ) j . . . . j y. ( j %. j j, . j . j ; j .?. . , ; j . . . . . y y, j. jnf.oceiïerfjent rul% and procedurerhevè, jeèv j rfk. 1.jb; vpjsctltlll, 1..-) e pmj.e. .. fhnds hsa*. e h. pt. * .n used to . ,, '.!...1 1 . G h4 i : : y
.u (j,s jjzve jée' j ' idkanced in. aCCOFd; IICC ' ' ' .,.'11provide fujds to partes öther than PBs; (lii) c6untkhgpd' n . ,jWith the agreed work prx o mme. ,.j.l '
5.9 Recurrent Coe 'r.. j. : 4i.
'ect operati ng/recu rrent, cp,q'tq )ç.xp-. ett' d llturM. . for th' e' im. pleria '8f7 .t4ti #' Ijfof thq prl, 'dxct- . ' A...V. à 15.9.1 . The pro)l j.;y, aj ,t, u . jyj ,. ajjowjyyyau . pjmoyytjug. to z. :w. t. .;Willl cover the coqm of (i) incremenzl! gpvernrùent:e'' eajf Mlaji.
. -, ;jp k. ;. y , , ., k :. v.m, yoj m me .,:):,!.1 ' k # : ' t : . ' K ' !W- (% 7 - D < ?11.8. . thoùsand (UA0.46 thousand) annujlly, (.11,).,y# pg, #à. banig.. iktlxd'. maiptenahce EO. , . t,t ' 7 ' ' ' 1 ' ' ' G '' I'pq btilldingss ampuihtiiag tbsr-i3kw
-3. .J thillion (UA0.1.3) annually. ''eqtlipment, vehicl% and motorcyd . .( ,. -
: .kh ' ct has made provisions for forè' i:li êxghange compohents of opelating coe. and5.9.2 T e prole . , .l l i ' o . - ' , J ...
' '
maintenance of vehiclea m uipment and btzitdmgt, .. The lX àl cts-t'. dpmp. olndnt of. these ac viti'-' J j ' . . . ,. . ' : :which amoynts to mkw 52.80 thousand , UA 5.! th,e. :,C,a. nd.) wil'l 'b e fthanced from government'' siàij ë inçi/emenol qta-'. f:f salarlpm. é' .ad a'llb' wance whichrGources. In addition, the governmeat .will, fl ) l ,c .
. ,,: I :J? 't, . . . .t:tatls mkw 134.13. thousa nd pr UA . 5..5 thoùss)' tkd . . 5,h #3i4' %,1: ag- oytqamprpt, co. mmttmqnt .in fiih. anïing' . j . . j . y !; . p .. , . : . x : ..sja . . s g...#, gyaw . . . . .
(gjrqctlrretit a nd operating coqtq ls mkW' j. :) J0t ,thbkqa' j s.idtu j@çA< 53.3, tlluoujand- wbz, .'ict iS,,#'*. 4t 5,-0, .1 A ' 14 f76 ' ' bon to the project. T-his sébj ecl.. ' VW' z'4rs./dià' cg.1'ç'd-. w ,1 Mdth k p e G1M a,nd agrc mehrt wàs ''its toùl contribu
- : : ; ,:,. p , .4. . . : yj ,jx.. m, zye. ayy.laxe tto mœ t thexincsementalréached that the neceqsark budg/tér'y allbçetl. bn.sxwpl ; . . .
cgsts.a
' ' ''v.
5.10 Cost Recov-ew an-d Prolect Skustaiin-abiliW. C , , ) - . .i -S' .. 10.1 The SGOM has put in place 4 'nne'ch:a nijp. wpf , c.,j, St reçovery ip public fin. .a nced 'p rogra mme.st
. I ' . f &. jswggl' j à. y fu (ly ,for all ihe f#rrqziesputs'. ,.'q: tqd setv i,ces .and /or projecs. Under thé prom sed proled, P . . . . .l I . : , , ''a' - x . . .Qtkalified. clienl will obtain credit from the M'alawi Rull-# 1 Finance .corm ration (''MkFC) Which' has al .' l , '; ' .
network. alI over the country. MRFC has a. setisfakcl. oryrdoq' rem vel;y gmechanism whith has wb' rk'edt ' ' : 'rh j k. ' ' 'y ' , ' ' 'wqll since it inception in 1994 (annex 4). Ths PBs w'ill pukchasè .iéàd-adarmié seed' Iingj fiiio m the
I ie..s at rnarket pric- . The Farm' 1 Cfop Budget shown in Anne.x ,9. demonstrat% thatcomrnuha nurser .j ... j !; , . . .the pBs will bje in a position to service the credit facilil.' 'khsion'- s'' vrvjces
. . are common goa.d. s: and therefores.10.2 Incremental com in Rev prch and Ex't
.$ -' p ':'government re-qponsibîlity, 4nd will be fi'nanced; 'fn.pm -,;) k'bl:i'c fueds. A'zmecha nism. haf' Rllrea/df .y b:en
out lbetween thé' Governmen't àndvi'd' pnà-Jr co'rmmuni'yy.. . regarding rQad inaintenak'ncewo/ked .prqgramme (para. 4.3.14). This is also considered a common good.jk ' 'l ..P r
-ö'i ect S ue n i n a bi l it'v
1 . ; . . j rj py yjI5.10.3 Sustainino projed activitl% in the post impslemernctl' on perie which commence,s
l v ' - . . ' *..i .' . . , . ,(plà nned for yjea r 20> ) wil! tàe critical if !t: h. e prtljed, 'o ls .'tpk a.tt4ih' S1,9 ,10.:, g term oblectve of povefrtyj
s ,
. . , ,alléyiation andt economic growth . There- are. threet 'gost.peentre.s which will' qm- 'uiré continued infl. oW p
of Jund's durring the post implemenjtab'on period..e T>',>,@.',are: (.a) xextension. end research . s,taff tàlries and wl'age ; (b) mainteian'ce of equtpment/kkqhsicle and infraMructure; (c) omrabLng. .;lsaI T
expenses. .'j. ' !. ., . . ;ir t:!5
.10.4 The MSDP is being implemented withjn th e ëwf,b-.t- in'p structure.s and onhly eight (8) junior 'g!l d There will therefore be ,no. sij'èiji,ficant increase in s't'waf R'Ylarie.s durin, g the ' ?!staff will be engage .
éltkkp. ,:-: j' p
. . t
( ' .''!
' . .: e. ? ': ,.. ' ' *t. I;ICL.f'C 2t: . -..k ' . ' z .- 'ù.....u- .. . . - --. .x ...'- .- --.z;- .- ' . ack.' ..zk. ub .. . z. , - .
2+X
:' ,1.''* #. c'J' . .5. tjk. t#* j'-1!'
;.'
: ttjlêN.. tpost implemenl tion period. This can be accommodated by the govem ment budget without anyStrains on the government current account. Extension and Research adivi:e
.s have beenadequately financed by the govemment, and there will * no incremenl l demands on theextension and re earch x rsonnel. n e proje has a healthy financial m tus, and will therefore beable to provide adm uate retumà to the treasury to contribute to any incremental operating andmaintenance exx nsc (annex 10).
5.10.5 Long Term sue inability, however, will be ensured by the PBs themselve who will betrained, a% is'ted to form farmer groups which will enable them to prote their interpm efe ively
.
As a grouq, they will * able to provide themselv% with the ncessary selvic% - farm inpul,transpo% bon, better prices for farm produce, improved markeung. Adm uate provisions havebeen made in the projed to ele ively trqin, supervise and provide incen:ve to the PBs so as toensure their future paliicipation in projed management even in the m st implementation m riod.
%*
27
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:4 ) '. , . g..::- .j..q. kjv , .4:,r;!. -,
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.'4. $6
. JUSTIFICATION >. .iI
l Kemtion ''.'
l6.1. Technirml Justij . .
.
-. $,,. :jk. j
6ttcl Macadamia is easy to grow a'ljd ttreqqi-t ..e. .litfI'è.k. n'œinten4ncq in comparison with morê . , ;.'4b11
ca<h icrom suèh ,as tobaccp' '., à';-''' 'a't;.ik,4>' tltC,'%ff. :Se. l-b' ck.ê'''k.> is hardykpmd d'roug.lift tolerant. , i-,!tgad. itiona ; , . ) .qv ,, ,, . .k.,, . , r .J - . . x ( . j k - . . , t r .f ,j. . ;y w éj j tjjyjyj j g j y; jj. tj . co j) tjjtjo jj;s.j. .x...jgs raeatch trials have demonstratei in kzletwi tlhsjt. tttyè .i,/è-e t. aq . , t ., .l . k ' ç . ' '. kt; .; ;: e u ;( ' i . . k .macadam
jia will t)e grown in areas situatèd ai. 4,Y' ' O ri.: êtèrhs a.i1., :.'è séà Ièvél W lth caln fall over 1,10,Q )).. l
This 'amount of rainfall is adequate for m'âe'daîmj'i devespnij nt 'ï'.,'i.1r*4 *1 . . ... .' t . . - . ,u ' '' . ï' il . . . ,' qlk. '''.zk;r . Il ' -' ' i'kï
'b't t''è iprip ci,pal ' nursr,pq. .r.e.p''.'r-.
. ent proy.en
'
, -..i''
.''.',6.1:2 n e. nrated venetabve material prs , *dk' Gé. EJ ., ..I -'' . . -*-
. . ' . ..: .
' .t.. -- - % , . .
, technologiœ inikee érop producbon. T hé techrikku: is widely used ani gènecally app.licable with j1 ., , ; .w . . . ' r ' ' ' . . ' ;Y.trees such as citrus and cashew. -) .-
t . , o-?,f' t' ' 1 * . : ; ( jj y < t x a j ,g a g r y po. va g j w' i ge t y p. ou, t g a gj d 1 y : . k ( j Ig) (6,.1'.3 Macadàmia will te intercrop with f'cod, tctops su' ' l * .. . . ' . . 1* > ' ' . .
puls% and cash crom , including groundnpy' pnd so, j a A' ee.nsu ,?7:hê/ will' p'rokide f* d a'ik inç-rease w'll j-: yj-. krj , 'sujt- , vjjz , ixes.yoppijràg; wjI,I.. dnable the. ,.4 ,income until the tirx that macadamias Wil.l''-<- ad.r; 4a/ J v q . , ,l incrpase return to lae p aj' thl' ''tp-tx.cm- L:i1'jlàl çroq. 'st.litt@1t-sa lndry pradi. ceq stlch âs the use gf :.-.' ''jsrnallholder to , ..k z . . . . . . . . ;.. .1
ee ing and control will 'àeindfji!i .Gtli w' :trêxès.. lntèrkroppinj wi.th annna! çrops will also 'Xfertili<er, wj ... jgr: . . . tj . .j. ireduce loss of top K il through wind erosiot'liiii. 'r'1j' k gerfate i-uinrlol. The intr/uctön :..t IP.M. will jrepr%ent a viable Stratdy to control pe
-j-tf' C;, ans.. . .diseases as this will red. uce the amount of 1z'.t.. .. .
. ,,.----,;--. ,j,-:q:!!j. ,'chemicals used in spraying the macadamia trkœ .
J,i J .. . , , r ''6.1.4' The introdudion of Iocally prod. .ut:qd 'hufkkys repre* nt a via,bl: .'elternative low. cœ t ':.à I ' . ' . '''technology that will enable the smallhötde
. r'k.;tn iqftiàté th-q: prxe-q--'xt-qking of macadafinid' nuts beföre, ' k.- 'taking them to Iarge scale processing facilitil . Bè'fo/e' thgik transm rt fthacadamîa nu'ts will be suh- ' il ., . . . . tldried to reduce their moisture content in.locallyhtonstructed raci... '.'ï :##
111 '''5: .'1'..: :, '
3'''*'**'i'''' '' ....
5î'''.J.!.i11f@1'
b.1.5 The buildings will be conslructed using loc:51 contraetop fotlowi.ng Ktapdard mèthe s and ''-hniqu%lthat have proven to be ad.. uate. A' oaz. :'s*: ''iils ,j1K bke xrehabilitàtéd klsing Ioèa'l contractos , 'f'tet- ,k - . .. -r .. , .tfollswinj Aandard and Simple technique.s that a'rézGuitaibt'e for the ltight traëc that CS Wpical for the ,:.-a I a reas .1 ,7:
r'('-ji'ur .
, jqjjjj(kj. ''1- --- ï,'' 'ii' '':k:,t118):. kk-k- 'l t6.3 Prolee Benefie .
E' , 1. . - -1 .. .
:' -'--111'6.7..1 The project will significantly cont, ribute io p$' ù: :'rty ellekiabon by improving th'e fxd securit'y k: I t . ' ' ., ' u ? .ituation .anj d the Aandard of livinj of the . rteral ùoor-. Projêd Ohefici/rim wilt :be a*ut 2,.500 *?j ,smallholden farm familic . With an averagè f'amily siàe df' Sik pe K p'vlre O r family, the total nurnber of .C.I j .w .. . .... .k. , - .a. . # . $ - - ' - . ' ubenesciari% is fe imated at 15
,UUU. About 3:% of the bznéjiqiarie.s will be wpmen. .
t .- .6.2.2 Quantifiable projed benefit can bé. x% p4.$4 :, d i.n crop Y'èild.' improvement. It is ee mated !I . ' . - 'r . :- . - . .: - ..) -:that
a aoer year 10, there will be an incrementà' 1' .à' .rmual ptpd.'. uctioh of 40.* tonno of cassava, x '' 50 tonn% of'g:rosqd
sktitq, 13.00 tonhes of pulsel, 20.00 tbpne.s of'' z 'j30.00 ton.nes of sweet potato, 6. : t;soya beans, and 2424.0 tonne.s of maize. The-ttp tà-. .1 ihçremental value 1998 cons-tant .price..s will rise k.r 1
) k'W 2 2 million in 1999 to Mkw 52.0 mi'lliiöp 'or fu'l'I' developmen't in year 20' 13. />If ,orn M . -
; J ' .,: '. 7l!l1 '. . ù-6.2, 3 Maoadam ia trees will start nroducinn from vear fopr. Prdd udion from the 500 ha will .
1 . ' j ' ''*' @ .. . . . . 1 .gradually increase until a11 trees have rea.çhqd. matvttiity. at yéar 14. Ebtom then, Onward, tree will y'
producq Kg j15 Nls/tree. Total yearly produdio' rh rof ''N.51tS;': p'il1 be GtinQted at 1',5*'50. tonn. e..s. Vkith an .t$.; . .. . . ;.ektimàtqd recovery rate of 15% of Saleable kern'êl,. Yacadamia nutc; will geherate yea.rly USS
300,000. : ,
6 2.4 Social benesl include capacity buildipg o, f tbe farmers â'nd institutional Mrengthening of kj: j . : -,the 'MAI. There will L:/ benefits in greater techni.da'l andt orgapirsabbrlra'l capablflit'y, iqplp rpved .health k
l ' ificab'on programme. ' Ehviàonmental' , '.''and better nutrition as a direct impaa of th e crop diverpi .
e' nefits will 1t)e assxiated with the establishmêjpt of tàe,q.. cover red. ucing thè incidende:. of, ertsioù. 'z f1)bR'te roads and bridge.s witl open a greater degfee oftrfnôy*.ment amc ng pe ple ànd gx ds,' thereby ujtI :
. ,. ...4 gj' '(r , 'j.t;!,j2 8 ')
'.f
.; ; ,619,:. .
helping with trade and the provision of servicG , reducing market distolons. Entrepreneurs areIikely, either to Spring from within community or invade the area Ieadinj to the development ofmicro-medium sized businpqq concerns. The e adikitic will Iead to an Increase in income thuscontributing significanty to m verty alleviation.
6.3 Financial Justificauon
6.3.1 n e Internal Rnancial Rate of Return (IFRR) is e 'mate at 12.6004. The followingassumptions have hnrn made to arrive at the(1FRR) under the proju :
i) Macadamia financial farm gate price has h- n derive by adjustment of internationalricG . n e intercropped cro> have been priced at the 1998 coneant market price at farmgate;
i i)
iii) The proje crmtm and benefi? are programmed for 30 years period..
'
6.3.2 The programmed cash flows prepared from crop produdion show that total revenues willgrow from MG 2.2 million in the year 1999 to MG 52.0 million by the year 2013 and Steadythereaoer. Cashflow at D rticipating household Ievel will increase from MG 230 in 1999 to MG16,800 in 2013. '
6.4 Econom ic JuA ification
The area of cultivation will reach 5O0 ha. During the firs't five years of the project,macadamia will be intercropped with other crops; (para. 4.3.3)
6.4.1 The prom sed projed will contribute significantly in easing the poverty burden in the projedareas. It will provide an opm rtunity for the pafcipating famili% to improve on the Ievel ofsumciency in food pre udion. W ith a net, incremental income of MG 60,000 annually, perparticipating household, the government's efforls towards poverty alleviation will have beenenhanced. The projed also jrovidG a useful window by which the GOM can improve on ii currentaccount, through export earnlngs.
6.4.2 The Economic Rate of Return (ERR) of the projed is estimated at 14,50% (anne.x 11) in a 30year projed Iife. The low rate of return is due to the Iong gpqtation period of macadamia tree.
6.4.3 With regard to sensitivity analysis, there are only three majoraffed the projed K rformances:
pro> bflities, which may
recurrent drought, which will trigger a downward trend in crop production thus,undermining the returns from the e adivitie . A sensibvity analo is shows thatwith even a decline of 20% of Gtimated produdion, the projed remains viablewith an ERR of 12.0Q/o,
an increase in operating cost as a consequence of edernal fadors may adverselyaffed the unit cost of imported items. A sensitivity analysis shows that even with acos't overrun of 20oZo, the projed remains 'kiable with an ERR of 13.2Q/o,
there is a third probable risk of the international price of macadamia nut decliningby 200/0, The ERR remains viable at 13.6D/o,
' ï *;. g,6.4.4 M indicated in Dra. 6.4.3, the projed is less sensitive to Kme Iikely adverse occurrçnces !which may aff'ec't its viability. .
6.4.5 The principal assumptons employed in the economic analysis are:
29
Benefie : onlyconsidered
. . ' . .
' s . ; n 2' - 7 ' ' 'Pric- : export par'lty prick'o' djùt-t:d' to farmt g'a' ,tq lvvel hasp b ee*a JSSIIM' ed ' tor' ' ' : !-?q) .''Ck , ) . . . : ' . '' '' ' ' ' * ' ç' ' ' l%: ê: î ' dYai imlp, rt. psari'ty ptice. .' ? . er ct.eo. ' have nmaradamia. Maize ha. s n .p,4.ç: -. .
.. . . ;. p .) 4.-r.,. , .i(upriced at f'arm gate finandial priep---sz .' .@ . . :i . . ' .
. '): .>, -
fblly' ' ad, ttjpeqtid. that the Mkw is currently trading freely in'Value of Mkw: it is gene . . .financial markeY. Hencé*nà
, s'h-psd, r:WJg' ricikng'. haf-u ' ? n ap, pllei,... ) e
'
' . ' '
, ,. e )? cre ' 1 ) .f : î. . . .l-nbour: hired labour Will. bé ié:lg. p lficad t in the prolect sinde the prolect is
. z ' kye r ' . . ; .d-qignq.d to om rate withilftjthe Jranha ework 'b( thk family la.*
= -., ur. . dbwever, whgre. . -r ''- ' j V * 3 ' ' : '''' . 0, * . ', . *, . . 'J
. .applicable, fa* ur has .b: reqp qjçjdy; ,at Q4' e curre,n't on gbing @te W 'h. ich ,1' ff dibh o' r tlh:irJîec' onb. n1' ic valùq ' 'considered as a true re e
. , ,
-
. .j ' j bj a f trjj e . joj ed h s' . Wo - . a 4 gst uijjn ed to ' ,X 30 yea r'SP FOJ l if e . thz e K OROW G , 1 e? R' ;) , ; .: # . .. . tistj ; itk $f v;1:.p Ak 'L4' - c ,î)' . . ..
Replacement df proJe,.: :qùygnise
, Nt qN1th e'es, Dy #-omjkcklife shorter than 'thi'sqp' eriod 'hàes. . .. . - ,0 .. . . . & ,lt ; t J , ,h- n included . Actùal Operati
,n. g ua. è'pd i. 'c1. alntenaù-'d''è c. 0.* q over the plrèa. JKI life has' ' e F1 <.j . - ., 'a Iso n i n cl uded . Ter;M i n a I *
, Ij 6-IJ. tj-' hvve bè- en i'g 'n one. d- .,q .
benkfi'l arising from incremeno l cosc have be àincremental
CONCLUSION AND RECOMMENDAH ONS
7.1 Conclusion
7.1.1 The Macadamia Smallholder Development Proje has a high priority among the GOMdevelopment obje ive . n e projed aims at alleviaKng poverty in the rural areas, by raising ruralincom% and diversifying the economic base. MSDP will also fM er an enabling economicenvironment for prie te sedor development through improvement of the H sential agriculturalservice to farmers, increasing invpqtment.in rural infrastrudure and appropriate training package.
7.1.2 Mos't imm c ntly the MSDP will focus on the smallholders, women farmers and the youth,the groups with subeantial untapped growth potential. One of the most notable Strategieproposed under the projed is the strengthening of the farmer groups, and c'reating new groupswhere appropriate. This will emm wer the smallholdes by enabling them to determine their ownafairs as farmers . Farmer groups will in future be the fx us m int for farmer participation inprojed proixsals, d% ign and implementation. By targeting the farmer groups, MSDP will removemany of the constraints faced by them and help improve smallholder productivity, Ieading toincreased income and welfare.
7.1.3 The project will improve household food security through enhanced food produdion andrul'al income jeneration. R is technically feasible, economically juofiable, and financiallysueainable. lt ls form ulated within the framework of Reform Prœ ram me being adively x rsued bythe GOM with supm rt from the multilateral institutions. The MSDP is also in Iine with theinstitu:onal rm uiremenl, and implementation strategic propœ ed under the MASIP, currentlybeing formulated by the GOM and the donor community. Finally, the projed is alK in Iine withADF W 1 development Strategy.
7.2 Recom m endations
7.2.1 It is m erefore recommended that a Ioan not G ceeding UA 6.85 Million be granted from ADFReource.s to the Government of Malawi for the purpœe of implementing the projed as d% cribedin this report Subjed to the following particular conditions:-
Conditions of Entw in-to Force
A. The entry into force of the Loan Agreement shall be subjed to the fulfillment by theBorrower of the provisions of Section 5.01 of the General Conditions Applicable to Loans andGuarantee Agreement of the ADF.
B.
Conditions Precedent to First Disbursem ent
The obligations of the Bank to make the 5% disbursement shall be conditional upon thefollowing:
a. The entry into force of the Loan Agreement;b. The Submission of evidence, satisfadory to the ADF, that:
i) The roads identified for rehabilitation, as part of this projed, are included in theNationaî Road Authority yearly maintenance prœ ramme (para. 4.3.16))
six (6) nurserie managec and two (2) qualified drivers have been recruited in ;.accordance with the standard government terms to facilitate the project '' .!
impbementation (para. 5.2.1)) and :: .
the two (2) long-term technical assislance staff, the short-term consultant ongroup dynamic, and the short-term training consult-ant (colledively referred toas the 'Primaw Consultanl'l have been x lected. '
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AIALAW I
SIACADAM IA SAIALLH OLDER DEVELOPAIENT PROJECT
PRO JECT LO CATIO N
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ANN EX ZPage 1
M ALAW IM ACADG A SM M LHOLDER DEVELOPX NT PROJECT
CLN ATE DATA FOR PROJECT AREAS
1 M alawi experiences a sub-humid tropical climate; the lower elevations having a drysub-humid climate and the higher elevations experiencing a moist sub-humid climate.
2 Rainfall is highly iniuenced by orqgraphic efrects: east to south-east facing windward
slopes receivinr more than the leeside side of hills and mountains, and areas with highelevation receivlng more than low-lying areas. M ost parts of M alawi receive between 80Oand 1,000 mm of annual rainfall, except for some areas on the lake shore plaina vand in thehigher elevations, particularly those facing SE whicà may receive as much as 3,000 mm (forinstance, the area north-west of Lake Malawi). The rainy season usually starts towards theend of November/erly December and continues in most places until sometime in April. '
3 Between M ay and November there is, generallyy a dry season. The mean number of
dg months (less than 50 mm of rainfall) usually lies between 6 to 8 months. Waves of Iightraln or drizzle, known as chiperoni, may occur throughout the year but are particularlycommon on Southeast facing slopes in the Southern and northern pm s of the country. Inprinciple, chiperoni's occura on average, about twice per month with an average duration of2-3 days. Climatic conditions for the project areas. speciscally, favour macadamia nutdevelopment. This is illustrated by the mean annual rainfall data presented in table below.
hfean annual Rainfall (in mm )
Year Nchena-Ncherm Vi hva Hills NtchisiD owa Hills80/8 l 1.0 15.7 1.155.4 924.281/82 1-332.5 1.219.2 77 l .682/83 1-470.2 1.264. 183/84 1.270.4 1.192.4 1.167.484/85 1,473.2 1.397. 1 1.351.685/86 l .658.5 1.637.6 2.047.086/87 1,078.7 1.229.3 1.388.091/92 1.129.7 1.269.292/93 982.9 1.005.6 ' 940.093/94 1.100.4 1.100.2 987.295/96 1.478.2 1.305.8 1.306. 1Source: slaeadamia Nu1 Produmion and Marketing Feasibili:).' Study. December l 993: Appraisalstission Field Data: Nlarch 1998.
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A NN EX 3-.4Page l
M ALAW IM ACADAM IA SM ALLHOLDER DEVELOPM ENT PROJECT
TECHNICAL N OTES
Introduction
1.1 The M acadamia tree is a tropical evergreen, indigenous to Australia. The tree cangrow up to heights of 15 meters in fenile soils. They will stnrt. . yielding from year 4(depending on the clone) and-continu. ç to produce up to year 6O. Peak production is from 10* -' * . *
to 35 yenm .
Selection of olantinG- site
2.1 ln M alawi, M acadnmia will probably grow best in the 600M to 1 ,250 m altituderange. i.e. from the lakeshore to the lower highland areas. M acadamia prefers a slightly acidsoil, pH 5.7 - 6.9. ' Soils should be deep and freely draining. On smallholder farms,M dam ia is usually' intkrcropped with subsistence crops, such as maizd, pulses and cusava.. aCaln som e cases, smallholders have planted them in pure stands or intercropped with coffee.Old tobacco land has the particular problem of very acidic soils (PH of 3.5) wllich makes ittmsuitable for planting macadàmia 'lnless extensive lim ingyis carded out prior tö planting.
Production of plantino- m aterial
3.1 The superiority of gro ed tcees over seedlings hms been well established. n e mostcommonly used form ot grafting is Approach Grafling. The method involves the grafling of': . .
' supporting seedlln: ptants, aged 12 to 1 8 months in containers, to terminal scion shoots fromm other bush m aterial of superior clones. A mother bush is a clone tree, produced either bygraftihg or vegetative propagation selected for their yield and kem el quality characteristics.
3.2 Approach grafting can produce planting m atedal w ithin one year. M ost of the graftbdplanting m aterial in the country has been produced at either the Bvum be A griculturalResearch Station or the Tea estates in Narng'om ba and K aw alazi. These estztes can m akegrafted planting material available to smallholders faz-m ers upon request.
-'o .3 For many years the. m otber bush clone NN':..S N1. te--raphylla. N ow adays, a neu'generation clones have been lntroduced. The newer clones have been selected, in addition toln ' 'ield and kem i l qualily characten'stics for tree shape a-s well a.s for their adaptab' ilily lot elr ) ,
climatic conditions. Tnis includes wind resistance and suitabt'lity rzor the lower uvarmer and:he higher cooler azes in the country. Currently approved c lo-.-es include : 800, 34 4 , 74 1 , o'-Kwoand 79 1 .
a'N 4 T h c r e h a v e b 0- e n s e 3. ' e r a l s p a c 1 n o a rr 0-...17 g e m 0- zn -k s a r- -k o. .=. . zn -.e c' o & ' e r -k h e ) ' 0.. a r s . !- n -t h e n o -. t h* &o f t h e c o u n t a c o n s -t a n t s p a c i n .0 o f 6 m' k ' 9 . 5 m, a l o n .0 rv h 0- c -- -. .-.. o u r. u' a s a u' o p t 0- d . I n th 0- s o u 'k 'nt h e r 0- h a s b 0- c n m o r e v a r 1 a t 1 o n . T h e m aj o r 1 ( y o f s rn a ! 1 -1 : o 1 d .-.2 r -.X .-=. , . e r. s gr. o N s ' : h 0- 1 r .=. . a c a d -.0 rn 1 a a -ta s a c -1 n c? o f 9 m x 9 jm . T h . e o r oj . e c t u ' 1- l l t- e c o ra,t =- - 0-. n d a q - a c i .n o o f 5 ,=, x l 0 -=. . . -1 'n e .,-. . a i n. .Jl = . *' .- =d ' ' o o f c lose sr- o c 1 n o sv.''.' l l be earl ie- 'neari rh a u ', c k. o - - ..' ..> ! -' - a-a.-4 o 'a s-- e r zx'o .--! con- -o1a N an t a w O .v w. & k à =. , k : . .,.m . . w . .* . ..- . .... o . . .... w r...w . w' w. .... : . . : .o
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... .t. . . . . . q i . . 4.4. 1 Mlacadamla requlres mlnlmal: . .a.. ttelulon durlng Lhe ftr-st llnproductlve years-'',wv t:'vi.
l . . . . . .
. . - .Nevenheless, good crop mxnagem ent pfactltes may result fn earller nkpd m ore .produc?tlon. It' . ...,.l
*' - . ' . -. - . . *' . ' --
. ' t''may ' also defe r the lncldehce of pests 'and, dlsenqes. M ulchlng of young trees' 1s. very f
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. , . . .. . k.. e o f. puosphonls, tty' ' !,.i1imponant. M ulchlng ls ol partlcular 1m. p ortance to lm prove th e up. tp . ,* . . . . . .4 s . .' .
' Wjc
, onserve molsm re and to depress weeds. Addptlon al weedlnmq fnay be rq. qu kr. ed but cnn be . ''.' . - '
. ''''- - - *' .' e)
'establpshed by hoelng. ' ,. !.,;@
. , 'k#
'
e .. ' . . j j4 9 Th
e 'use of fenili ser especially nltrooen, is stro'n. oly advised. e 'extra us e of otrgan ic' . .''' '' . l . - ''* , - . . . -- , . . .
.k- . ' ' . . '
, w t''jk':- im anure w111 ' be advantageous. 0 rganlc m, anure ls 'rm p onhin. t. for' th. , 'e sm allholders wyh. o hake. .? -?1 j . , . . . j ,jmore access to wood ash cattle dung .,% 'chlcken. 'm anure, etc. ' . Le tl-m'l:ng.> of .cfzerl.i.l.l%ey'.'. e',. j > . . .. . .
' .. zkvy,j
a lplicati '*n has been shown to be cn'tièal. N itrqgen is 'best applied in smva''ls.l doses over t'h'ek, wet ' '' lt(1; , - . . , $ . . . .. . . ç .' d fdr the no' n-bean-no trees nnd 'm 'sevçral 'ap plications from Feb'ns to the end ofz''tlo'v-ëi 'y' i,peno I
. o ' .
..'
t seu on for beanng trees. pwe
, . *
4 eo Pest nnd disease control is und. oubted: '.l'y 'th'e m ost lmponnnt qqtp'ect in e. nsudng 'b'ofoth .H.,''' e yielld and .top qupu ity. Key pests 'reqptk ire-altrm' e'lty. ' .eon. trol ir th e''ectop is . 'sot .to.
'b e 1'o,-s'-t., oz. 't'',hl. .. . j . , t ., . . : . . . . . ' . . . ? ( . h . . . lk . 'rel' ected at the factory gate. e m os-t ltn..xhp..'o'I4antt, '' pnsec't pest 1: th 'e grau p. of stlvcpk-! n o 1.n. secl. r '.-:'. '1
.. , . . l;> uf . .' ' I - - . ' x
' - :s- tjjkECtE:yL Cjjku klg;. 'tI;:jj, :yj)8trj;jr ,j:;),'.'#y:-- (:jj.: t2:.!jtgj (:;'!: (:; (:jy tjj.1jjgr. )( gj/. , igr..--(:jj. j:.- ..k)k:;;(r... .:j)(.. hyriy!r.y (j;-., (:).t):?/'. () .t:)jjï-,- !yjrj- -,-yyjjjj(g: ,'ï-..:uk'lknown as Stlnk Bugs. Developlnrg p'U. ptj 1a., . . .. . , ,
,
crop can be los't ln weeks. Term ltes are .'âlzso. afiprroblerh; th. 'ough. . m abfbly ln +. . e low evxr, w arrner k. '.tk I'
: area q. The tv* o maj or di seaqes are . :.a1 1:.17.' . e. 'ltli%â.' s,p p' '.'; ''whe. .1.,ch â,tt. ac P.s'.. , th' . e ro o. ts a.>î- d k-!1 ls tln'b t. rè4! '' wt.'!I ti s spp ., whi ch 1- s a fl ower b: li tht thkft-'-' 'zt1. ai. k.- s -.f1 + we= i n. ht ..tlvu.-. itd condi ti 0:u..* ' ' t..'
, 1and Botry. ' lj' j
4 4 There are various m ethods to. keyep pe.sts and: disen-qes un'der control. ln practice, a. , '
'' . 1 . . ,, . . ''
, , jaan d , tja è app I j- c at 1 o n o f an 1' 'ntegi a' t Jd' t . . ,'tcomblnatlon of control meuures lncludes
. >. ,n thc. one .Pest , Manj agement (IPM) system, and on the- otzhlferr .h..a. nd, t , e use o. . . .
' a
'
.- ' '' ' ' ' * . * ?' Y ' '% ' M ' ' * * . '' 1' ltazgely d. epend cn the n. ature of the p, robllem . IPM .1s. .a.dv.tlsab.. l.e 'to keep. p e-st and dlseguse ...,..;'utbreakl und'er con.'trol. In combinavtion kwith-' ieoe.tfi 1&-. rm lo:t' i.ton. q'ng, se n-ous o'utb 'fes. k-s out p'ests.. , .., o
I ' ' ' ' ' ed ' d- . b -d d A m onitor'' ' cf's '/xtem is already in. use b v som e estatezzby m'eans .. ., 'PZIR 1SeaSeS Can e aVO 1 e . In..... . .Y. . u. . . . . , ,l . *''#' #' : - < '. >K . . . ..
' ,. '
.y . .f Pest S' couts. Pest stouts v/1'11 moni.tof , aod:' ' reöor' d d'urin: cnlti cal tirne' s' ''th'e ln, cld ence- o.f.. ,. IO - , = , .. . . .!1 .
' . . . . .. t:
problemj. Once a sen'ous problem has been d, etected', chemicals will be used. ' %.. ' , ; ,x
'
' . . . . . j. . . ' ' . t'
. ê . ' .. ..L . . i1 .
.. . .. : j::.-,.'''t'. 4 .5 T he proj ect' *..11 l see to 1- t that. férm. . efs ' $ki l.1 b.. e tr. aine'2 1 n p est an d d- .1- se/qe. monito. riinsc , ''.'xt'.k
a e a. ' ' :z. . ' . . -- . . ''. '
,.4: j . g.zj . ' ' .. . jj;qj!gF 0Y th Zt P tl X O S C , t. h C J7 f Oj C C t W 1* 1. l u SJe . th'ê S: l'V 1'' c e s O L* P e S t S c O u ts . Wn e T .rOJ 'e'C t NN Jl ,z. 1 n t r O .w: tl c'* , j' ; .,- .. . ,$ . . tr . . z ,4.: '.. ' . : . . .. ' . '. - 'l r
. o rn the m'o rd go , a rp a c k a c. e o f l P M teciluh'. 4:q'. 'u'e s : t.bz - l s p ac k'ia t2 z c o.n s ! s l:s J-n a l nl y o f : ntro d u c : n.bz, .'i,.t !;- . , - .
. . . . e r :.'
ate cultural .oracti ces (weed 'cohtrol prb oer scaci n'& feni li sati o,nl'' .,an.-2 'antroduc l Se''c u-.'aoproprl : . ,,, - . . , , . .,<' ' .' ., .1 .. ..' . . .. .. ,k :. . ' ' .:1* .' /' ',' '
' a g ro f o r .os t r'v t r e e s w l : n s D e c l a 1 p e s'tl c ld' Ce p r ()..7, e n ! e s ( G u:a s.. ar T e'-o'hJ-o s : a , Nt e e rn ) . R-' e S e. a'rc n o 'rq. ..t.' ?
.;.
. . l 'e , - . , - . . . , . . , . . . , . , - . .
,B ,vu yy-j, . y, e .a. u y. ; , s jj- ). y u, jr j' . j '. :.s !addltlonal IP Mz metnods .w ll1 be unden akea .,l,h collaoora:len w lth tne - .
... ! ' . . . ' .. . k ..k ., .-j. j ,u y o. u s 1 n' c c he :n. 1 c' al's . : i ?,1f1ikes. earch. lns:ltute. For acute cases, the p.roalectww l. reso . . ,
' :
11Y :1 ra ' 0 S t -1 n G ''' '... )kI, y. ,.-j.q'a. .jj. !
. , . w,
5 l h( ac ad. a.m 1 a n uts are h arv e sted fro m F,è e b ru aa:w :i 1 l N. ( ay . Tb..e nuts ars c J 1'; e c t ed Jiz. 0.p... . '*'; ...
j- j . - . - , , qt: Lt n d e r tlè e t r e e a t 1 e a s : o n c e p e r vveek . F xa, Frtn.. .. .eùt...s tzz : z l ' n n g - ..1 . I . , . . . : . ;
. . . . . u. o s :. o u s o u..t:' f Va: J-- s k ''' o f t h e n :-' : s Dp . o t!z ! d b e %' ' t. 'C O l 1 C' c t l 0. n D
. O l n t & v n e r e 1. h e y % V 1 1 l . b e h u. ..s kr . w d . ' T . ' , - e . j w . . .
.j' : re I'no %' ed NN'l -v n l n 24 n o u l's to re (:l u c e he -lt-'7re trn ! r a :: o n a. .'- .ac l l ta .e ur.- l n ao . . - - - e . . . . - . .,
,'1 I . . . q ..1-' . . ' -.; :rn a c a d a m l a n u : s u' ! '; 1. b e c a r e Jp u l l v s,viiit ù d. r ë'e-d. 7 E n ': o c a !. 1. n, c ::' n s :r2 c : e .-2 r a c k s -.. c .- zz d u c t t 9. t e .. '.
.... rh 1 c r : l re r. ''x -- * n v-w ! , ''w . C, 3 , ..& - o ,-- * .-: ' c' . s e.v.n - .'a 'n k ..s Z - ' ' . '-- -.* * - o '''> l': * C : ''n '.7 '-- * 1 *. t ' , 1 - .':> ''-' ' .' .'> = = . u <'C . . uz & u K w. . à w N.. w. . . . >' @ * k . v' .., . .- / D . . ' - - . w. . * . 1 . u A. W > - S ..Q ; w - . . ' . - - S r .. - . w' * * h- * .Z? e' *'e - * * h- e . * X t . e *' x- - - e * * *e' - *1 G' ' . , ' .- ' .. - : . ,.. - z 1.-x c . - - . '- ..x
. -.
- . .- z.. -. - - - - - . . . . .
' -. . -.
. - - a .. -. .. u -. . o - u. .
' . '
. .
-. .
. .. . . : ' - ' - m
. c. .- :. . ... -.c =
. u .-. '.- . ->. -. : o r ...x. -.j -. c ..z -. ' -. u. f' . ? ' 1. . y , . : . . a.kj
..'. ' ''''P'. . . . .')
. . . . . , . . . .xt..& 'iikw. . .. . . X ' P . I7LJ..-..... 1*. ' ... ''W ! . ..XX%'Z .-A. ''1W''' Ae x:k Z>)x.. l ....-.. . . .. 'LAK. .. s. . Tixua.tux =k... . . . . . . = .zt.... ''<aiu 'W 1 .%-AQ '
*
.. - , tli. ;,; . .
. Y' '' j'q.
A XW 1 E X DOPace a'No
moisture content frorri 3.5 to 1.5% : Aher drying. the nuts can be cracked euily without :'damaging the kem el and processed for onward marketing. 1
5.2 The first residue to be accumulated from a m acadam ia orchard is the husk afler de-husking and the rejected nut in shell. ldeally, this should be composted for another seasonaher which it becomes a good source of organic ferg iliser with slow releasing nutrients and anideal additive to the potting m hture.
. # '
5.3 n e N1S is cracked at the factory where the resulting shell hms a caloric value higher.*
than that of fuel wood, though less than coal and that can be used for energy production inprdcessing. Apart from the shell, there is a proponion of reject kem el. .The berter qualityreject can be pressed for oi1 tiat has a commercial value. The pressed cake together with lessquality reject can b,e used as a constituent of an animal or chicken feed mix.
6. W orld Production
6.1 According to 1996 data, Australia remains the largest producer followed by Hawaii.South Africa, Kenya and M alawi are the other listed producers. Figure l . below provides the
2.current W orld Production which is estimated at 55,000 tonnes of Nuts ln Shqll @ IS). n efigure for Kel el production which is derived from estimpted NIS production at 30% kemelrecovery rate is abour 15,000 toanes nnnually. Kernel production in Australia and Hawaii wasapproximately equai ip 1995 at about 5,150 tonnes each and together accounted for over 80%of world'production.
1 ? i u re 1 : SN' o rl d M a ca d a m l a P ro d u tt i o n .V - -cu
. =. s. ) - .u .
l' Nlacadallzia Production --l :l .î' ;l uc
-tgnn ' i
I sn-oon . 3Il z () . 0 () 0 a u- o rl d s I s fp . 3 0 v. l. l E zc-ccc 1 s xu vt rxl i .n xIs I I. kc. I ' 2 o , 0 () o I x v' o rt d ua rn c ) ( oe ri ve d ) I li I 1 a-oco .,.. -- . I1 1 - c : ' E - . - ll l 9c- s :- n2,- s3'- sz- nr,- $1, I 9 1 s 2 9 3 , .$. 9 s p 6! j -Ye ar
i
6 . 2 Nvorld production wilh time has been generally on the increu e except fbr the eazlyl 990:s >' 'hen there werepoor crops in A uslralia and Haw aii. The production trends indicates:hal. production of kernel u'ill reach 20,000 tons by the year 2,000 which will give a l O0%increase over 1 990 production. Other major producers of kernel w'ere estimaled to be SouthAfrica (520 tons), Ksnya (540 lons), Costa M ca (4 S0 tons) and Malawi (360 tons). 'T'he other '?signiGcant producers Svere Gualemala (2 10 tons) and.Brpgil (1 50 tons). .
m ' o r! d M a ca tl a m i a 5'! a rk et
. . . . ....,v . - . . ' r% '> U .. . Y ' WW . F * ' ' . N* ' ' .-1- . j . . , . . . . .,#r. :.jE .j k , ,kq>.. . .,x.d.l.s:F
, . , . . . . . eu' : . A i:.
. ' ' ' . . : . ' . ' .. ' d j .è. i !
. j . . . . , . j .. xeeœNrNw-.- ...-. j . . ' ' . * ' . 3f''' ilj.' . /
i 11 .p. '. . . .; . fA'
- E,t)(x. - . - '%' . . . : . . j . . t ' 'I A l , a .;,t, $.'P a (ee 4. >. ' X ' r.- r VSP. & . ;,
. . . - ç1. . u. ? . y 2.
1.. :9 ' . . . . ' ' *V' : 'jj'. a'm i a, .'Pro-d.. .i1, J
'
.tat i d'uh a n.d. '..
' C . bla.'j.'',k.li#' ,wpzi i p n .x. .1 9'95 ' . , ,
' . .'' v . .
'.- - ''-', %-I T a b l e 1 : '$%' o l d 5'1 a c a dl ' . ' ' r'
'' . I A u st ra l i a ' USA ' J.:-p.' .'a;n ;H- ..z<$' C . ,1 AL xii%'. Ebli'l p e 20 t. h e r . 17.'.. Tt 'P rok 1. ' ' - ' 'J. - K. : ..a 1' 2 .. -' . . ' * . . . . . ' ' ' 1 ' .
- . . . - . . - . . . .... , ..r ..! . , - . , , - . , . . .,- , x s j ortjt; . - . . v .., ,.X u s tra. 1 1 a 1 ! .4 S 0 l . 6 6 0 ' . 4 . 6: .4k%fj z' ,..).. .L 4 .2- /.,0: ' ' k 4v.8. .ût . . , . .6.0 û' - . . . -.q j 4. '. . .. .,' . . . ' 4 @-.57 ' E't '.''- ' ' ' ' - ' '- $' -n - - ' ' '- ' ' ' ' ' ' ' -' ' b I' 'U S A 1 . -- 4 , 5 6 0 .- . c a, x0., ', t- .' . .5,.0. . .1> , ; , . , , -0..,,0.. . , : :. 0-.. . . ' k.,.5.0:.. -' - . .. 5:. 1 6 0 k. ?& . . . .
. S . - A f n. ca -- l 7 0 . l -0,. -. $u .4 7 o 0: l . . . . . -- ., .. . l 1. '0 ' .' . . 6. 0 58 0 1 . J:, . A..,k (.h N . .- . . . . . : y.
' Brar' 1 I 6 - 60 - ', ', ' ' -- . ' ' ' + ' ' . ' 50' ' 4* 0. ' ''*' 1 230 %'' ' ' ' ' ' *'1 Il . , kl Costal Rica - 40O .7 .'1-e ' -- ' ' v r'-- : y.:- 7.0 43'0. .. . kz:' :
- : . . . , x . . . . '' .- ' G u ale' mala -- 2 1 O'- ' ..*. ''#*. - v -- ' - =- l 2 1 0 . *2 ' '' x ''??' t ' . . . - . - x ' 1' ' ' .' # . : ' ' . à . r ' irs? ' . ' . ' > r
. . . ' g.q. . g. ? , . 'j . . $. .. K e n ya- -- ''
..5'0'ê ' - .- '. 45$.0. - . , . . -+.... l r .- ;. .. 4 0 ' .. .- . v .' ..
-. . u .. . . j..
'. . M. al ak. r 1 ' -- 5O. .; .
' .z -i) .k .4, , . 5.0.. 1..:, . : . f'1., l 0-. O 5o: ! . l l 0. ' 3$ () . , >x. .. . u
'
's , . ' * 1 ' '. . . - . . -. . . . - -z i :. . ,j,y-1
. ' . k 9 5 C d n s u ntp t i o n l .4 8 : J . 1 6'9 1 y'b.zl%,' 7Rs ;#.. . 7 57 y . %3. ..û . . . . 9r() [email protected] . . - : 31J. #..,. a ; l 2,% .6*.6. 9 . i ..4q
. ' L ' - $ . '(' *90 Cbnsu m ption 30O 7.0 15 J 0479 - 69 '.. ' P1'0 . '''.'' - '1î0 '- Y'J ' -8T0 8 75% ' ' .. 'R1. .- . .% .. ... .e..' .$ 4 ..' -...; - x ws.'.* . .h = .' > * ' x . ' ' . *
'
. . 42 . - 1, , . x .z ,. .. . . . . . . - ,. . e !
. . . . . . - :1 I.' 11
r . . ;, .. . .. . *, - t t - l
. '' . '. ' ' , . ' I. . lx . . . ..+, . . e ' : '. ! , ;... krt , ' . jl.
, 7 .2 e table shows the enorm ous do. .m,. x'm '.atlon.. n.. f th. . ..e, U' S. A ln;.,c,,ons.:.!m p;t1',.o.n. of m, aca'dram. '.1,aw.;:y t' ..q. .
' l . ' - 'k 4 . rb çv'. c w , . . t. . . ' . . . ' . ,..t ..; . . ,, ' . . . j.jln 1. 9 9 O and be före and the em- ercence.- .'
s. lfl'qc'e >.1J#').-9 O.a o f th. p. Europenp ncn.d Chtn ? . ' ... 'oag K ..oh. g .. . ; k!! . . .
,î,'- . . ., - , - - .t-, - .,- ,.. , . . . . . . .. ., . . . ; . ., ;:. . -.:,;( . .',ç ,.m ar
.k et. , e other lnterestlng f act ît o m the', tla' b'-'tlx'e.. 'lhs. lthf-sa-rtt .c'.o 'qsum p .t- 1 0n.- ,. kn,,.: 'the CU ..S.. A . . has remal'nqd, . jj. yp.' ..?.t. I . . . . . , . . . ., z. j: jytj. ,u, , g-..u. a-s. yjus. s tj ,r.u.. ,, . .j 0..,,.,..., .g (0,,. . j.# :.5 '-jyas ugt, rj. s :.,.a-. . .. rM + ' .'!' vlrtually jstatlc whtle consurnptson l.n Jap.-any
. .71.. .t ...a.., ,; - . .
. , .,. . . . y .,., . , .., ,..,
...y osjy-j ,'
l - . - -* ' . .; :. u' ', ,s. s/.'
j yd-'. t:. . r, - eyd.. . to. ) b e'..e a' ' ' r e. ..a' ' ' c-. .t, iko n vft.orr..
'. th' . ..e i. . n c repz ï..t. '4. . . 1' n.
' 'kn.
'
.
'.'.'.
'
a(t 'Lhe rate. of other Aslqn countnes... Thvls 1,.s... , .., -. . . . . . . ,l . l - . . q. v . . . . . . . ., ,a .. ..-
.
. . y . . . .(j. ggoy . ajryj .o nd-. ' ( and' ' -:::.4.:./. izk emel pnce because macadamla ln thkesék,tw t) co. untza eg-ts gdkren Sll S. tlt'u. te . . , . ,,4ky . *' . ,., k , . x . *. . ' $ 4/ js . >) ' .i . .
jj.vlce versalk bp-qed almost enttrely on the relatlv' e. , .p.,.nce.. s of tht meats. . . . . ., . l. . k. ,, . . I ' . v . ' ' ' 'kI ' '. . '
. . r. . . . . , 4 . . u.ç1. : j . a . . . , . . . y
.. . .
! . j g .> : . . . . . * . . . . . g . x q7 3 ' Cons pti on in : A - cx thou'gh . nbt' ' ' .st.attl's,t1.;'$'..a.,'.-1,L1y- .., avla. ll.able. . ls a1.. so- p. lcklng up . .'sL''b .A)J ,I * z j J .j. ;. u , . , . ) , . ; . . a, ; , . . . . . ) . d.
, , . j j ,.) j .!t ( . . yz .0 y . o . . # .. . . . . .s. j . g t . . . . , w' t.y . g y . . . . j, j j . o g. a u. y a j.u a u gy y j. g , ' j .' l . acadn rn 1 a 1 s re ad l1y c o ns ed 1 n m. alao
x-r. hp 't.'.e,c1.s. pan. : d .. .. 1:e sxallrn n'tqy. e sp edlea. tùy .1n . , , , <-
. i I . . , ' , . 7 , -' i .p, . ' . ;t hi i. ' . ' ' ' .i x . tj .. j j c ac y .
- ' ''''. .'a .i S outhern Afrlca. A ntzmber of hlghclas, sàh. ou.
seholld.e ' .t1 o ,w ,. .o,.Q..nsu'm: ... e. -.m aaca.wz.d.. .nm. , ta n:.K-. ...e , .' t : ' - .. - . , ' -' . , . $ . . ' :
'::. . - - . ' ' . ; ' . . ' ' '. '., p 1.
' ' 1& U C M d ' - ' ' '
. Ses oz .. aca am la . v .g . . . . , .4
I . .. 4 ..: . 128 . 1 Use o f' macadami a k ernel in the 1 99O 's' h :..,.r7 c.h ang ed drnm atic. ally', ov'er''',k- ernsl use in' ' ' -.;
I : ' i- '- ' ...4- 'jk% )t. , . . . . - .. J, . . , . . s . 2 .. th e'. 1 9 8 O s b0th g eographlcally and ln type o.f u' 's-e. . In the. .1 9 8 O s lt w%q a. c.' A) nfectl,onery n'tl. t ..y;,:$.
' ' bei ng sold as chocolate coated candy. coated/rba-hs.te. d nn'd salled . ough or in .assodiatlo'fn. *1th '; î..tu' . . t o- . ' ' .Lv*1 ' f .2 - ' '' : '; ' ' ':. . .. ' 4. . J .. th., e Hawatlan lndus . The m aln uses are. now' as. c. ive. n A'n' 1 a. blT. 2 : Mrac. adam la ls,. ut Use. T 'hlsv . ' '.zI . . .* ' . . ' -''' ' . . '' ' ' ' .' , - ''' . '1d
, ata is sup plled by the Australlnn Benc v...ark l.n:r...oe S tudye .k t ' ' . ''''' . ' ' % ,r 'b'. ':. . . ' e yyh q, '
1 ' . . ' . ' T: . ' . . - . J'al r . a .J. . .. ...:1 .ç)- . ç . . . Y.l . T a b 1 e 2.: 51 a c a d-
- ' a m-i4.,?N.. pe.t. U sle 'l''h.- V/pt-b- .y. ..T.. - y. p#.. ts f 'U' ? s e r-
, , . I . ' . C b o c o I à t e c o a tf'd . ..k .R- ..o.ils.tx:t1 .- . -.' .'! '$. t,qikfl.u rg. ctrer i n g - c o o k i o g j ' ;t..k. .l 1 ' ' ' ''' ' 'êi. +'* '. .. :=. - . ..N
'
.. ' w w. . .x ' . . ' . x J'' I I i t z ..v b....- . . L o : . . y . . . AU S A 51 a r k p t 3 O F/o ' ' '. . p ) 0, . / t) . , j . 3. D.' ' Z. , v I $.' 0 F/o l . . , . '' J -M- a r k e t ' 1 4 0 oz ' -. . -''K' ' r4.' '0-> '- - - ' ' - ' !) ' p/' -' ' ' ' ') a p a n e s e 1 o 1 - t $i . 1 . .
- 0. o l . . - - 1 , . '' 3 M a r'k e t I 5 nz'o I ' D6'b%%- - ' I 7% 1 3 0 D,,'t lH o n g. Kon o .w, . r , .
.': 1 : . v' zy t - ' : C ' ' ' . ' ' ' '
. l C h i'n e s e -h.1 a, r .',4 e t I - - 1, . . , . . '. 4 0. '/# . I ' - t 6 0 Fo I.
' . ' ' '
.E u r o p e a. n &.d zl :: r k e : 1 l O o/o ' ; ' .è .L..c -9x%aii/,; ' ..' ' l . ' -- ' ' 1..% - - l - ' -' e. I . . .. C . '- .' . :. . k #
'
' '' M 2 n u l-a c ru r i n .0 : p r l n c i p a,l l y c a k e s . c o o k le s , jh rou.g b, . 'f. ro z.è npd o u c-h '' ' . ' . - 1 (2! . i . . . . . . ''' . . '. ;r. ...'wê) ' . *-' , '
C,' oo k l n g : P F I n c l p a 1 ! y re p l ac l n g C as h e w l n C.h.1 n'ds. 'e .cu l s l n;e . . .
a 'tl * . ..' +
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I ' .. . .' ;. .. t. . . ) s .! l:*
. . . . .. . $;
. . : - . . .. , ,t . .&, . '. : . x, % . . . . . b ' . ' 1 G u ' . ':
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kG v ''. . . . , . . . ,. . . ,xiu- - é. .ta.,. . . s ):c.-... -.:.. . ,kac-.-. u..... ,.z . . .' ! . . z..k .u'-.-' -'? .'è.-b. ''-J. ...-iz- - ''- -k- .='- -.' . --'
*
ANNEX 3-BPagel
M ALA W ISMALLHOLDER MXCADAMIA DEVELOPATENT PROJECT
AGW CULTURAL EXTENSION SERVICE
1 n e GOM has divided the country into eight Agricultural Development Divisions (ADEEach ADD is divided into two to fve Rufal Development frojects P), of whicb lhere are '. )in tgtal. Each RDP, çn turn, is divided into 180 Extension Plnnning Areas (EPA) on tbe basis Iagro-ecological criteria. Each EPA is divided into 10 to 15 sections, with each agricultural FieAssistant (FA) being' allocated one section.
2 n e MAI uses the modiûed, W orld Bank supponed, Training and Visit (T&V)extension system. The system is called the Block Exlension
-system (BES) a-s each sectionhas been sm her sub-divided into a maxlmum of eight sub-sections or Blocks. The number ofblocks will allow Field Assistants to visit each Block at least once every fonh night. Blocks,ideally, are comprised of 30 to 1O0 farm fnmilies and have b
. een designed on the bMis ofsim ilar geographical, social and economic considerations.
3 W ithin each Block, FAs are required to establish about five dem o-trials. Farmers inwhose gardens these dem o-trials have been established are referred to as. çontact fanners.Choice of topics or subject to be demonslated will originate 'from the knowlqdge of the FAsMsessment of the problems persistent in the block. Subject M atter Specialists includingHoniculturists, Crops Officers, Adaptive Research Officers; and Training Officers supponField assistants in their work. '
4 Very closely associated to the BES is the existence of various, functibnal cornmittees.Loc'al leadership is pivotal in the management and hznctioning of these committees.Committees meet at least once per month to plan and discuss issues' pertaining to cropspecific development. .'Fhey are very often' crucial in obtaining credit from the prevailing(fbrmal and informal) credit organisations in .the region.
5 One of the most imponant features under :he BES is the system of training.
Recornmendations, in pdnciple, are passed on from :he ADD level, via'the Project Oficers atRDP level, to the Development Officers at EPA level. Once a m essage has been verified and
ri ls and handouts prepared relyvant''sMs Nvill visit project azrea's to discuss themate amessages u'ith project based SMS, who in tun will v'isi: and train FAs at the fonnightly EP,A-m eetings.
%Vi th a chan ue 1 n :he po l 1:1 cal svste r.n 1 n 1 99 -7 - 9 2. and the nevv to vernn:e r.:' s f oc us onw J w
o o v' e n y a l .1 e v 1 a t 1 o n as : h e o s: e ral l s e c t o r c o a l f o r t h c c o u n :n- . t h e N41 A i :-. z a s s t a r! e --2 lo c n' t 1 c a 1 1 s'a n a l N'ze t h e B E S %'i Tn' a N.i e u, o f 1- rn pro v 1 n o 1 ts e t'Tc c :i %' e n e s s . -As a re s u l t th e s -.'s te r'n a I l o Nvs.r & * ' .
% ' f- ' - ' . > o q e '. n. : h e o n q t a n d h a S i .'7 : r O d u c C ''1 a;T1 L1 C 1 JRI O r C a C ! 1 V C . PK..-RN. e r P a n l C 1 # a t 1 O n , a S NK a S t . 1 C C . - . . ...
' ' f f - N' n' - ' d a n7 i a 1 s o n e - :- a - s k o ' . ! ''5 b e c o n .! i d e re d 1 n Qu a s' t o 'G a $.'& arlelv o crops. o. s lcn m aca , t. . u .- -:w . - .
. .
.' . je X k C r: S l O n Nk 0 r r: .
*
zi ' 7
A EX 3 - CP AGE 1
sr
M AUAW IM ACADAM IA SM ALLHOLDER DEV ELOPM ENT PROJECT
T INING ACTIV ITIE.S.
' :. . h ' 1 ' .': . .
Type of Training P/ofqjsiongtl pcàleeo-ri. ç.s Number Du'ratiop Cocs '. 2: . '. . %J . ' ***' .
Invotlved (wteeks) (USD ë, . (- 'a - - - ' ï!l - '- Aglriculturemonicultural Programme Mratpgets and 20 9 60.000)
. 'jt ' ' ' '.lT1 V 3g C m C D ! S e R i O f Y k l ff ;ê '. . . i .- Cröp Pro'duction and Subject Mgti çr Spècialistà :1:9 ' 1 0 1 50,00:.! ' '
- .Aglicultural. technoloaies , .'- Gröup Dyhamics Field.Assist4tlt; 80 ' 3.0 400.00'Om
! iM acadam ia Product on . '
! i .- , Process ng1 .
- M ajketing. :
- Nurïery Development ' Farmers :. ' ' ' ' 2 500 *2 130 000# . #
'
1 .- Crop husbandcy ,- lnte'grated Pest M anagem ent ,
. . . t' ? . .u * Ngttition and health Wolninr Groupg ' . .- :. 7.5.0 2 3:9.0,00. ' :t: '
. - ' * ' .. ' ' .; .- 'Fiel1.,, trips, and tours Fârràçrl'. ' . 20U/ L ,2 . 4 vUi#ù, 0
. j ) . : . ,. . . . .ç . F . ; ; . G *' 'r ' ' a . ' gj * ' y ; J g :6 ' x.+. g ; j , ,r .M. . icto-entrorisç Development Yoqth .4., 250 . , .
- ' '
Màcàdamia Development Hpsr4,i'çù'-tlkra'l'%M%z. z 2 . l'gC . 30,000: . . . . . .. , : , - . . ... .-c .ë s : '>T
. o'fà. l Tra i n in g Activit i es . ., .g .. . ' > ' '.5 . C' 880$9 0 0T . . .. . * ;
L 4). ' . .t ké .
>.; ,, j;i.., ; '7 <
. I' . :1? a4
#' :
' 4%ANNEX 4.; '
+Page 1/3 ='
M AG W IMACADAMIA SMALLHOLDER DEVELOPM ENT PROJEWTHE M ALAW I RURAL FINANCE COM PANY LIM ITED
1. Backoround
1.1 The Malawi Rural Finance Company Ltd., (MRFQ was Gqtablished in 1993 as a newfinance company by the Government of Malawi under snancial and technical assistancefrom the W orld Bank. It has been ekablished under the company's Act 1984 as a privateIimited Iiability company. It started operations with effe from 1St October, 19* .
1.2 The principal objective of the company is to provide snancial services and creditfacilities to thé rural areas. Presently MRFC is fully owned by the Government of Malawi.However, the process of privatising the company has been put to motion, and the GOMintends to reduce its ownership of the company to Iess than 2QOA by selling il shares tothe private se or. MRFC omrates on strid commercial principles: it accepis gr-anY butprovides none.
1.3 MRFC coverage of the country is extensive. lt has 8 branches, one in each ADD.There are 27 supervisol offices, one in each RDP. In addition, there 4re 134 5eId omces,almost one in each EPA. The company has approved positions of 315 out of which 288 or91.4% is slled as by January 1988.
2. Ac ivities
2.1 MRFC accept.s customer deposits. It provides seasonal and business Ioans.Institutional arrangemen? have been put in place to enable it manage medium to andIong term Ioans. Currently it is also managing a US$ 25.00 million Iine of credit from IFADunder the Mudzi Financial Service.s Project.
2.2 The company operates m ainly in the rural areas, but to a certain extent in the urban11 1ts major cutomers are smallholder farmers organized in clubsiand jmallareas as we .
and medium estate owners. It also assieq micro business enterprisc , either at individualor group Ievel. The interest rates charged is based on three tier structure: i) Primecustomer 340/0,. ii) Repeat cukomer 36% iii) First Time borrower 37%
2.3 The cost of the com pany's funds is bpsed or obtained from the Reserve Bank ofMalawi (RBM). The reference rates for preview years were:
i) 1994/95ii) 1995/96iii) 1996/97
2 1%35%9%
This policy of utilising the RBM for rate reference is to be m aintianed.
33
t . . a -, I w , wcov vv= .->. . rylrjg. vio v y .r ( . a . t ).. .u ' -; = . ' . *k. T Q' r ''' . , ' . n 7 v
'
..x.k... : ' ' ,. , . 'S' lx (,z .. 2 .j. j j
,$.)' .;
. 6. ' s ù. . t;.
. yz.,y-jt' ; .
k $'.yjs. .kh: .;..;'EX 4 ' Y lANN . y
Pàg' e 2/3 '@.
. ;.:à'jlending rates as. indicated. k hereunder-. 'Li2.4 The company Exes its ,e ' e . . vh
. ,. . , . . jq/.i) Operating coeq - 2.2 x#o ' :,': )
. . lj . t;..;ii) Loan Iosses . - 13 Zo -.w.
-.
iii) Cost. of Funds - . 90/0 ' -'*74iv) Profit for shareholder - NiI ,,, '.i-
xo ; ...' 'Total - 44 zo, t, ... . )' . . jl : ''t ' ' >
-in Iine with other lending agencies t.!The Lomnanv however charnes onlv 34% ln opder to .l , '- :q ' 1 @
'
'-- ''' -
, , ,hlike Com mércial Banks.g.
.
'
.
'
jj
d
yy,.
'
,.
'
,
'
gjgj
3. MRFC Performance :!' j . 1 '
l '.-.. - '-.. .' - ' . , . .. , ; 2'.-1 hin the thr- years thq- cpm p aù'y 'h. as . . n in' ...qx. atio. n,j it .ln. as performed $Ah3. 1 $Wi t
satisfactorj ily. In 1994/95 it disburs, e,d).6 MkW 35. 'psfiyilllfi-z4.p tu 60,055. .b., enê.. .fiqia, riq-s. I'n 1995/ 96 ''- ; . ' 'y' . j; 1J, )tI . ' - .. ' ' . .
. , : ' jthe disbursement portfolio incrêqs. ed,'' tQ-,jM. klsztx4, 7. m i'llionyt .with :numbér pf Benefidiaries .. ,
'
$ . - . . ;, , y . jjdotibl i ng to 139, 105. Due to severe dron. g, lhpt, Qu f' t.' 996 /' ,.9 7, the àmount disbursed- . d, ropp. ed p.,;.., j yu;,. . yaj ) yy jr , J. .s awN a.s .s: oss. j.. y . . .. ..,. w.. u, . , g kto M kw 167 m i I I i on ; th e n u m ber of Beqçpf, e ilid. :$ 4à. . .1u.*' . d êdl i rb 'eu to; 10 2 , -f o z . I n e p roJ eG' eo ' :j
j .y p . q . - . . jy . . , q!jji .btq4disbursement for 1997/98 season is g$'t- himr4 ted .t'o iocrease tp .M.' kw 2O0 m ililion. .,' h,.j
2 ,
uoj an recovery has also beeq .s-ati,sfaci'p' r-ysu
. nde. r 'th.qrvircumst. a.oco . .
.In 1994/9.s, .
,. ) .'v.13.' o/ In 1'995/96 t-iëz 'rèdovery, .tatq d'rop pred to. . 76% d ue to ?ti il
ythe recovery rate was 95 o. , . , . .
i Iilmitations. It however increas:d' to 87% in 19,96/97. The projected: recovery '. '.capac. ty . tI ,. : a. ''ha .rate for 1997/98 is Gqtimated at 800/0, dué to'-ptbât rai nfalt. ' :'. .. . . ;,; .l . -. . ' .3.3 . The com pany. has Iost some funds d,. q. e .to b pd d,.e. b.t... Th e total amount Iost d'urj ng k.
. I ''! ) . . . '$ . . ' ' .. '
the three 'y ears of operations totals Mkw. 1iO 8klpjillipn, U.f whjçh Mkw 2 m i.llion was Iost in' in 1995/96,. and/ M'kw. 24 million ill .,'1.9696/
,9 7. Jj1994/95) Mkw 82 million .' . L'/. . .k j
3.4 Further analysis of the company's crej it portfolio for 19.' 96/97 seaon Shows Yat ' 1)' I . . ;. $ 'hiçther disbursements have been effeded tö' Kaàukngu
, ADD' . and Mzuzu ADD s, the t '.). ) '' . tjproposed prolect areas
. The table bèlpw oipdicates branchwise disbursemen? and ',r- : . . ' jtecoveriqq
. 4 ' pk! - - - , , tr,. . . . .
. . rk.., p.5! . .q .1 . . , ;
q : ..Bra nchw ise Disburs-ementK.=. :1. 99:6 /r9 7, S,eason , ; J
. . ,. ... . . . . -
. j. .; j. : .'f . ' .'.,;iIt . ..
. ' .
,4 <Di.s hd. ij e awn t.s t ï .1 Recovery R à te )( ' !.l woo. ' (fn sl.k&y-..i,n- .iifi? .n. . . I .
'
- (uz-) --,. .'
1karunga ' 5.t), ' 94.3 /' 37 O 9!
. 1 ':'tMztzzu
.kàsungu 44.0 s3.5 ulLlklongwe 3..,.0 s7.d. .
-'''''
I (*-,-.' ' :S'alina 12.0 79 8 :l 1) ,Mochinga 34 .0 90.2 , *kBlanp're 6.O 55.3 yl
(Shire Valxlc!.' 1 .0 . ..: . 58 . 6 Xt k1' '. r. . #h.
. ) . y . . . j.1. v. i4)j7-.4.''' 'dF' lh';l. :(,.y
. eii.
. t ; jj1 . -- .à- sl.
. .,. k
y. .. (ti , .- ..,..f.w-',.t.- ..- ..---z.27-I:=- t--u-.. ,.---i..t=J!'slu .u. .-. . ,.a,=- --'..--x%-' ?.--. ... 's.=-..z.:s è..-,w .- .. .u., .-.. àkx. -4a-V'f
*
ANNEX 4Page 3/3
4. SuDDort to M SDP
4.1 The proje proposes to provide a line of credit of UA 0.99 million (Mkw 24.16million) as seaKnal or medium term credit to assist PBs in procuring inputs to developmacadamia, and other food/cash crops. The credit facility will be 'managed andadministered within the frameworks of the MRFC institutional arrangemenl . Thecompany has overcome the capacity limitations it had faced during the 1995/96 season.It is now well organised and adequately represented country wide to undec ke thisadivity satisfactorily. 11 representation in the projte areas IrrAted in Mzuzu andKasungu ADDS is adequate. Performance in these areas, in terms of Ioans disbursed andrecovel are satisfadory. MRFC is the only institution in Malawi, which is well organisedand adm uately resourced to undertake credit activities afecting smallholders. Thetechnical support it is receiving from the World Bank and IFAD has strengthened itsinstitutional and performance capability.
**$
MAG DAMIA SMALLHOLDER DEVELOPMENT PROZECV
Annex 5
TENTAH VE LIST OF GO ODS AND SERW CES
MG UA'OOQCateqorv .
LC FC Total LC FC Total
a. Rnads rehabilitation Contrad 24362 6000 3M 52 998.15 249.52 1247.67
b. Housing and other building: O ntrad 811 1187 1998 3323 48.63 81.25
c. Equipment 1250 9195 1> O 5235 376.73 422.59
d. Vehides and Motor Cydes 1227 1682 2909 50.27 68.9 110.18
e. Tecbni=l Assistanœ & Consultancy Services 2398 45171 47563 98.25 1850.72 1M 2.92
f. Lv-ql Staff 1450 1450 59.41 - 59.41
g. Training 6318 9975 16293 253.86 402.69 657.55
h. Fafm lnputs 17039.78 20301.9 37341.66 693.14 831.80 1520.04
i. Operaticn & Maintecanœ 1020 1580 26X 41.79 1 .73 11 .52
'. Travels: lnfxocal 250 1120 1370 -10.25 :5.83 55.19
Base Total 56164.11 96312.16 452466.47 2:91.15 :945.66 6246.21Physical Contingencies 5446.42 4908.77 12754.65 22:.15 201.10 424.25Price Contingencies 22756.08 14798.57 37555.76 932.38 6D5.32 157271
Total Cost 84367.72 1.160D2.95 200776.67 3456.89 4752.14 2228.77
!- ! ,-: 2- ,:ï l-J i-MACADJ/tIA SMALLROLDER DEVELOPLIEXT PROJECT
MACADAMIA MARVETIXG STUDY
1.
A. Ovew iew.
1. This report has addressed those matters which are considered releyant toefective marketing of Srnallholder macadamia in M alawi in response to thePreparation M sslons Ending for this project that development of Srùallholdermacadsmla production was severely constrined by lack of an elective m arketingsystem. Field visits to existing and proposed Smallholder macadzm-la areas as part oftEs repon conErms that at tEs time, existing Sm ilholder growèrs of macadam'la haveno market for their produce whick apart Fom some local household consumptiona islargely lcA to rot on the ground. ln contrast to this situationa there is a well establishedmacadamia processing industry in Malawi (two processors) which efectively caters forsigniscant macadsmia production on world standards from the larger farms and Estatesector of the industry.
c k.... -' .& 'v
D a o e IA o
RECOM M ENDATIONS.
2. M esective marketing system is dependent on a thorough understanding of thewhole macadnmia industry b0th locally and intem ationally not only in the are,a ofmarket forces which may prevail from time to time but also in all related aspects such
Jrk t volumes available product qreparation and handling,as quality, delivel to m e , ,packaginp shipment etcc A1l these aspects of the m acadnmla mrket have beenaddressed in detail in the main body of this report and as a result of tbose investigationthe following main reccr.kmendations for implementation of an eFective Sm allholdermarketing system aze summarized.
B. Recom m ended Scope of M arketing System.
3. Traditional market channels for macadamia farmers throughout the world havebeen desned in the report. The potcntial market channels available to the Smallholdermacadamia farmers are limited by the dim culty in cracking the nut and the stringentstorage requirements of the kemel once it has been removed. lt is recommended thatthe scope of the marketing system established for the Smallholder Project sbould varyaccording to the stage of implementation of the project as below:
(1)
4. There is a well éstablished macadamia processing system in M alani that has thecapacity to absorb immediately production from existing Smallholder producers. Theirnmediate aim should therefore be to access tMs potential market fbr existingSmallholder production and for early production from the new plantings. .
(2) Stage Two - Build Processing Plant
5. * en production from the existing and new Smallholder plantings reaches adesirable level which is estimated at 1,000 tonnes of nut in Shell in this repon, thengrower retum s are likely to be enhanced by developing their own processing capacity.Using the yield predications generated in tl'tis report, new plantings of 50O hectaresshould reach this productive capacity, in terms of kernel volume at a fac:ory k-ernelrecoveo' or 250z1. at approxi' mately S to l 0 years ax er c 'kanting. Production fi'cr:n :he
Stage O ne - A ccess Existing processors.
ANNEX 6Pagq 2.
; :d ting Smallholder plantings is unlikçly to; signjdc.ansly aFect this timing. TL e ti.me toe Sy . j . . . . g. 4 j . . .factory oonstruction could be reducetlç. by, putch àsè oî nut in shell from other growers'
Iq but this 'adds additional cornmercial dsk t'ù tit é.kènture.
6. It is further recommended tha: sh.oul'd the decision to proceed w ith al ' ' . :J processing 'fadlity be takeë then it.l. Qtï, 1@. bq', l.ljtr,p. lem ente.d in the farpvof a grower(
, .
z ysjorj js poroceedowned and operated enterprise in the 1i, aqzqtof a, cö-optc>jtive. The eç ,I .
' . ' '
.
$1th this venture is therefore crilicallrdep, :R,d,)#nt on develpplng a vib. rnnt and strong- C ii ï d b other processors
.grower orgnnlrution and the likely compeyitqn pose , y .
(3) S'tAge 3 - Value added Productlon.. *
'
i7. lt is recommended that any deçglop to prooeed with value adided production'
. d'-ètsnfiction:ry or snack products io éeneral)(roasted and salted, cboolate coated, 1, ' . :l ial scale, sh' ould npt blivt 'âkçri àt 'thi. 's time. In gvneral. th-e möve iù worldon a cqmtnerc
.z . !:' . . . . .
industries is or raw kernel orocessorslto m6vé out ''of this area lf thqy are ih it because1 * .of its specialized nature lmd requiremçnts. 1'N additioha. .q for most cuuntries it is
. e .' . ' .
necesska to çxnort the oroducts orod.octd, aj'hom e cons 'umption usually will not! - * *' * ' .F'.'r ' Md .suppod sum cient volume while mo'st potential irftporting oountries apply tqdfi-s to anyl -form of snished goods
.
(4) .conxcu.rrent Stages.
8. Notwithstanding that the rççorA end. atiuon is tu' concentraxe principally on the.production of raw kem el for txoortim 'all'volumes of broduce can bé p'laded ihtoI *
.
' . * '
m arkets by farmer groups in the form of nut .lh shell, or small volume raw or roastedI
kem el produced by hand cracki- ng ipsmal.lrboutique o'perations. The success bf thesel i is highly dependent onhtà: dtejfke of lo'rml.dentand énd the level of
.,operat ons1
ble income of potential consumdrs.'Yh,rq price that can bç achieved in traditionaldisp josa' è will most, .p.fte.n'hLq. site the p.ntential impro' kem:ent; in r4tumsraw kernel export mark t
, s
l in kets oler'f lt is not redoliut:. éndhid that the proposr>'d prq-edt take an 'that these ar ,l i .
.activ,e role in these enterprises ôther tla.a: t, o prou dé tljç techpolop cal support that may' i d from time to time frbm'tbe.teclmologir>l. jool establish:d p.s part of thebe requ reinl roject
.
'
m a p
C. S'gniscant Issuts.
1. Overview.
9. Field interviews undertqkea,t,o prokide titis report indicate that the current
situation with Smallholder macadynéjkptoduction is Malawi is tkat on the one handthere is and established processing lnf' Ftastructure wlaich is ready and able to buyf
. .
j kpoapable ofSmrllholder productiona while, on tlw ofhx hand, the individual fârmer .sotaki- nc advantace of this ootential mzrkei. ln the pa-stx h!.r. q'illie Ferro, of the Treè
I '-''''' %'''''' - . -Nut Authority, was able to providè the li.rak in somelfr-m mes betweeà the faM ers and thel '
. .
processors. since sir. Férro oeàsed to bè the coanection betweea the smallholder ;ndl he smallholder ha! b'ècooà totally' lsolated from the mgcadamiathe processors t
m alrketing channels. Thio- togethetrrw''ith. the. already ooerous dim cultiés posed byx! . .
.' ....k<w =. .:'.e! r u ...d. .' :J .
'' Yj.*,i'je'Y-..lh
AXNEX 6@ '>
Page 3 '. xt. !'.L ' .. . .
'
j. AN
geographical isolationa has caused Smallholders to lose faith in the future of the ' yJ'tm acadamia and their prodace is leh to rot in the selds. '
10. In addition to the geographic and communication isolation that the Smallholdersulers there are otber ij'suas which must be addressed Fom the marketing perspective
Iif a successful Smallholdçr project is to be established. These issues and: ;.
recomméndations to address them are outlined below .i.?(
2. M arketlng technolon .
a) Desnition of Issum
1 1. lt is apparent that there is little understanding of the procEss and operation of afree marketing system within the Smallholder sector of the macadam'la industry inM a1 awi' .
b) Recommended Action.
12. The project plus to employ Technical M sistants as part of the implementationprogramme. lt is essential that the terms of reference of at least one of these assistantsinclude training at a11 levels on market structures, market mechanlsms and pm icularly
f farmer prdjuçe to market chains as these matters relate speciscally toon access oSmallholder macadxmiali:i M alawi
.i.jr.::13
. barm er Isolation from hiarket Inform atîon.
a) Desnition of Issue-
13. Farmers currently. have no information on how to address their marketing
situation. That is, the potential processor niarket is available but the processors haveno communication with the Smallholder and vice versa. The feld sm dy for this reportcov rmed that the Agriozltural Development Divisions (ADD's) of the Miaistry ofAgriculture and Irrigation ), tkough their Rural Development Projects andExtension Planning areas are a strong and iv uential stm cture in the farming areasthroughout M alawi. ln additiona the ADD system reaches down to the individualfarmer extremely efectively in tbe areas of tecim ological ex-tension and farmer supportfor a very large range of crops. How ever it is apparent that developm ent of an
awareness of marketing ojcrops generally, and mrketing of macadamia in particular isonly just beginning. Fktrthcrmore it ha.s been agreed in the Aide M emoire that theexisting institutional fraYework within the M M teough the ADD struct-ure will be theproject managers.
R ecom m ended A ction.
The project must:
i. make a deliberate efibrt to build capacity on marketing ofmacadamia at the ADD level so that tinls capacity can be passed dowmthe line to the Extension Planaing arep.s and the Field .M sistants for thebenefit orthe f'anmers. The essential outcome of this trairking, at least inthe shon te= and befbre farm er p-eups are capab:e of unïérlaz,ng :he
N
c v
ANgEX 6P a ge 4
. q
'
e
ftask themselves. must be to,p. ,rovide q.n: efec.tive, com munications andorganizational conduit betwé.à thêsfari'n' - er'rqroups a-en. d th'e market.
. x '''- * 'e
'
ii. train farmer qroups to tàke over these functions in their own right. '- * .k .
with time.
4. Farmer Geotr. aphlrlsblatîo. .n.u
' '
a) Dennitîdiz o,f Is' sue. :
15. From tbe seld visîts, it is apparent thatxthe target benesdaries for tlf.., .s prolect. ' . . ' q?
wi11 cover a wide geographic area of tbe coyrjt-ry antl' that in many' caqes 1.h. e indivi' duall ' .farmerls will be situated a long distance Fom mainvroads and a cons.id. eclblxke, .'distance'
. y ' k..$ ., , 2 l T .frgm, the established processorà-zG' tlkeu'th. e h'érkùà't s'ched ttlple d'es. tnqd 1, ct.'hi.' s report. andth4tthe.farmers will in m any. ca ej' 'be sthlàl. lltie'any eventa 'theà th: volurpT.of product
y '* a ' ' ' ' ' .
thit is available at any o'pe time from a,.ri i'nditvidual flrm ers harvest V II ;b''e so small as. . ' . a ..4 .to be of impractical volu.me for efrectiv6
, . matk.etiing. Si,nu-larly, the physital and1
rt dimculties thal'ùumerous sma' Elil vbhltlmes öf p/od.uct poée to th. e individkualttanspoI . ; ' . 'farmer in many instances are a sevem dbt
x.r/ït..e. .v$. to the phcoducts ,marketàbility.t . ' ''
b) Recommen d+d Aetion..
1.6 n e volume of produce 'av.allas..ltz,at >, pr.'v. ko tll'e at > given place must be..: ). s . , .. , . ysuo cientlv larne to be of Dradiaal ând: tkjaf' k'setab. le :iz-. 'é ànd .v#..l,ue. lt is essential tha.tI e '.*p*' œ * ' . s.
groups of farmers band together to Ad. .hieve t-his outcom. e. lt is th:refo. re recom mendedthat:
. . tm .j. . ,si. tbe project àssist tltr buah t.h.ç techtfti' r-q. 1 Msist-ànts and ADD : to
! ' * ' ' ' **e' j . #; ' ' ' ' ; ' . : . -form farm er groupk .s. g.t th ç in. jdlylsdw, aLIE. xt ..iensi p'.n. P l,:p.n?'tn I ng. hjn ea @, 'PA)... . 2 . z .
'
level who 'are capab-/le Qf-pradw,wt/dnq' ,.svY... ,ciâe,pt p'Imdktk o.4j. at indivi dual. ) . . . ' e
'
Q I . . 4* ' . - . . .ik ?' ''''''- ' , ; ' ' . N
'
haw ests .or indiWduJàl d eliyeryt ittm ej, Tto. b:'a praqtîoalrsiz e for delivery: : ' ..; . . , . .to the factory.
;:
) :' 4 ' 't . . 5 . . .il. that the project méke avy4plq-bil.e at the E, P' 'A levvl.y a storiage shed to'*'' : -. q.4. . 1 .. ' ' - 'act as a öepot wher: farni- .:#p.s'.r*n,... 6y dektusk: their n'uts, w.eigh-.tln. e. m a dry
t. . ' 5 * ' ' ' ' *them on drying ràcks, and bag tlnem read. y for the, façtory to pick them
J % '
UP .
iii.. the prol' ect make âkkil. àbl<eya. t each' depot w,eighing, xscales, drying. .r -. e .),t*:-.' . .. .. , .ks and a simple Cha 'nd op'eiated dehusk -et (txpected cost K watchafaC , + .@ '
. x 'x . .
,5,000.00) as designe-d.by the''chi. trdz-q Rssearch Stâtio. n an.d describedin the main report. Thè'se Jucilitles are to be maintaineï and operated bythe farmer group with 'iht neoessary hlelp and gu idance from the
. ' .Gn
Techrfcal Xssistànts 'gn'd the A'D' '-D ' s.
îv. the p.roject make .avallably, at least in the short terim
commun-ica-rions facàllii*s, a. n,d. b*.vlp >4th cornaun.i. czti ons, so tlmfatfarmers m. ay make the pecessary: 'seliing and delivery a=angements withthe procfssors.
, (.
. . P . . ' ; . ; .j aa u
'
... . ;< - . .c .u
'
. a. . .)...; 1'y: -z..œ. ,a.....k= 2V..x'-..t w..'. , ..zK.t-.'OO .oukx k ... -.--' .'.>k **<--*.''= K ''' 2-.2 '. . . . xxs
%.' yè1.
+
ANNEX 6
Page 5
v. tbe project ensure that tbe individual farmer groups are inter-connected through a Smallbolder Project Farmers Body. lt isrecommended that this body join and take active part in tbe existingTree Nut Authority.
vi. the project do all in its power to make the Smallholder ProjectsFarmer Body a legally instituted body w ithin the laws of M alawi àndhat the tl ody be strengthened and trined to become the pdncipait
'lof the Project with time and eventually the owner and operatormanager.!
of the prtcessing facility.
5. M acadamia Yields and Quality.
a) Desnition of Issum
17. The main report has identised environmental cultural, harvest, handling, andstorage parameters that are criticyl to achieving Egh yields of good qualitym acadarniu at tbe t'farm gate*'. From the perspective of snancial success of theprojsct, the importance of achieving high yield is clearly apparent. However, what isolen not so apparent is the importance of quzity and the fact that to a very largeextent quality is determined on the farm in the growing and handling of the product.From the marketing point of view at the fann level therefore, quality is of paramountimponance not only begause processors have rninimum quality requirements for. . kacceptance of product irita the factory, but also because the farmer ls paid bu ed on the
:k . 'quality of nut in shell supplied to the processor.
t?l;li Recommended Action.
18. Through the Technical M sistants and the ADD structure the project mustensure that a thorough farmers training prograrnme is implemented. This programmemust as a rikinimum implement the following:
i. a farmers manual on good orchard practice which covers all aspects of theculture, harvest, handling, and storage of macadamia must be produced in alanguage wizich is understapdable by farmers.
regular seld days and t'farmers walks'' must be Urganized 'and an-anged.
iii. formal f'armer training schools must be im plernented.! . .')
fann visits t6 fplatories and vice versa must be a-ranged.tl i' . )
'
19. Aspects which are of principal importance to Jield and quality must bethoroughly covered including'.
i. lnsect Control.ii. Nutritional programs.iii. Harvest teclmiques, tirning, and rnaturity standards.iv. Dehuski- ng and handling.
Storàge of-Nut in Shell.
N
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20 The m acadami a is a very ta.sty' pam , d. tqu' ' 'yinftio us. fo. od whe n eaten by itsvself'but it 7 'i'''. t.''.. *
. .. ..@y : ,g ., . j. . ' . ' î . ' , c # .' j.. . . , . ;y < J.is also an ideal ad'diuve to oth :r. 'foo-d-
--w..t.-'o. .,b..o),r .1, ,.--:u,...,.... a.-. o-e .,t,h,,at... .r..o. ods -tsqte and -nutn-tio ,nal..- , .-, .,'?
.1 o . ' l ' * ' ' -''*
'
' ' ** i i ) 'valu 'e. However, the nut IS ext ' r:m ely '.h. .r' .d' Stkotst' ./'ae.k.N sc/fo'r bes-.t. '.reesu.-/l''ts' ,'.it s' h, 'outd' bç ; 1., . r ., ..+ ., . . , , . . . s . . g.fl ' - : ' . , j', tsu' jge' '. ... atfl 'd- , Jft m'''1h1' ' d$-; kt 'e>:n'o'r. . ate. very V',bq:- 'uii' c'kl,-. y' - n 9t:.r. .. ' ' 4 t*1'- a. dequately-dn.ed to about 4,.Zo . S. ,.m()- 14., .,w. ,? . . ,. -, - .
. .-
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, x,. ,..j,I - . git.z , ' -',. ! , j,t. - tjyerzçoij : not ez:y' tt) p.repar: for' x,; . 7.remojval from the shell Tf not st, oredhkpî.ro. xpti/cglyy,v,'t. ls . , .
home consumption or for szale ollto lo-cal m àr' 'kkpts. ' ,..-: .w
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Ny yjyb) ' Recom 'metid. e,d A .ctl. o n. , , ,'
. 2 : ï. .. . . . jj . .. ',.,2 1 . The prolect throu the T qc, t,z : calt ,.o.s.l,s. t- Fimts and the -. D. s sh o' uld pbepar. e a .
, ' a1' *
'
.
bxqic tec -cal manual on the d. rying ct at'kltr'''n'g storage and us.....s of m âcad.àmia with .' , ; . ' ' > . ; . . ' t . . ..î - -.-. ,,d, u ct-.f, oz )?'' ho. 'me öonsu'. mp.
.
'
kt..-l.on, olr .1,0. e' 'al' s aie. ' '.'partlcular reference to preparatlon dfrth': p. r. os . . . ,l ' . ., ' ' t q . . 'k ' . 71, . ' -' ..; ' .The manual 'should lnciude. reco mmend ed. :g seâ 'ln t'he .home an. d. rèclpes wlu ch take .
.
1 . i l i l - 'e -'/- . - .account of lorml cullnaryscustoms.. j.
. 9,, a. ,;j.,b.%l $: . . ..,-?
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. The Tec cal , sl stan, ts to, gtesthettr' w,llts h '-i..h. 3e, F, f ,)..nz fan.. 'cl. .a1 :. an d ''.P. 14a' tn-'cn' ï! p g.,, rçs. 0t). rces ö CL -.ks . .. ; . :. v '. .. ,, q..l . . . ' az - z ,.-. ;: .. .- : k.th e GI ov e 'ent o f 54 al am sh ould p re. p aTi' e ;:
..,- uf e. .x, ..K1b. jkq tyft-j.-at..ly.dq,y,' ' Aoln' 4,,'h. ,e/ c'<.. n .ktf=. 4- t l on an d n. .I . ,. ,. ,, . '' ,k u. xq , , . .-.:. s.' 't - ).ju . ,, ,. . : . - .;- . 't v : ,. . ..#; :z ? -'.. ; . r . -operatlon of a processlng faclllty
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M ACADAM IA SM ALLHOLDER DEVELQPM ENT PROJECT
TECHNICAL ASSISTAN CE
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TITLE
DURATION
RöSITIONS VACANT
DIJTY STATIbN
W ORKING LANGUAGE
OUALIFICATIONS
At lemst a M asters Degree in Agronomym oniculture with 10 years of practicalexperience in tree crop development. At least five years of practical experience in macadamiacrop development under smallholder farming conditions.
Job Description
Tefm s of R-eference
M acadamia Development Expen
3 Years
Two (2)
Kasungu ADD and M zuzu ADD
English
The M acadamia Development expert will work under the supelwision of therespective ADD Programme Officer and report to the Controller of Agricultural Services ofthe M AI. He/she will be responsible for the specific tasks described below:
Assist in the preparation of the training programm, e and assist in training profe-ssional 'staff and farmer groups. At a later stage, assist in the evaluation of the impact of thetraining program m e w ith a view of im proving the training curriculum ;
Contribute to the establishment and/or strengthenlng of farrner groups',
Assist in the establishment and the m anagem ent of mother nurseries. Assist fanmergroups in establishing comm unity nurseries. ProN'ide :he necessary training in : 'ap proach grafting to farm er group representatisres,' ;
. * 2.. .2. . .,19pLiaise with the F'leld Extension Of-ficers to ensure that km o'a'l edge on macadamia crop A,
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production u'ill be properly impaned to the benei-iciaries.
Liaise with the Bvum be Agricultural Research Stalion, :he respectis'e Tree Crop - .
Commodity Teams, and the Geld extensionists :.n conducting on-fan'n research on 'im proved crop husbandry techniques, In:egrare; Pest l.lanagem ent m ethods andtesting of new m aca. dam ia clones.
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j . . kdl '.& to = O tfs l O = trl '= . & av 0% = & o x v < o > j . o (w . :.. v = ON . c< . uD v . rm c km . . o ra . .. ch o e-x' o reï ' & > ' gn o ' rw * o reï = ' & - rn n-. =s I = ..- ''e < : V$= C< *= .. < .- cn ''- ro fhq m rx .-- (w *5 ... %r'. o - cx . t'n r.- 4'.r- (h< ''- - fel . co =' . =.Nua o ... xr .
o & tm * '2N . * o rx 0% = o o * v = = m ro & & &= w . cq oq . r4 . < v . ro o tm . . & . vn . rm o o co rn .' o ro ' = os ' o ' ' o en co . = ro oq . .- < .j
= rq % . . 'r - ca - < cn (N P' o m .- w mj ... rel <( Na CS . en o4 .rq 04 - - Cn - xr .% = CO =' ' .4
' m= = * = oq 'e o o co v = = Y'cu n o o tn' cx ox . ru Qh . No v . rn o <> . . o cy . r.j CN o o x -
,= v . . o . o . . o co o . o rm . x . x .. .
rw= ru .v o rn v . . > ..- m (x P- w - Kj . r'q .. . x Irg cq ... - rn rn (N N - ro o r.j ,j= rm ro< a
io rw qo . .P- = X o ON % & o * v.e o m o qo & o *!= ' os oN . eu > . m v . ro o < . . = . rx o o wj r- .Nr . o ro . = ox . co . . o en = . o vn m . 0. . ON x= rm %
.- v - m - m ç.j eq >' m (x - m to .- r- rm wj n Rn . cs ro .
* ..- -m m x 'o x < o & o. oq & (x o. ON w % f.j qm . o . o w o . ro o o n r.-= o . eq . . o . . % ' . o xen os < = r- ' & rn = ' ch ro en . krt : rm *'-o <: v rs v .. - t.j rq m (x .- (w <d - w j rm o. ox = . ro uo- e1 -
= oto = tn x o. > o o x w o = qo v o o o= = > r.- . (%q > . =) .e. . rn o * . . o . o o o o x <@ < * o ON * o ' ' o rn o ' o ees ro I ' ro= = % V r - - m rs t- D - *1 - m -
* m- * . rn mrn ... %
* = O o œ = > = w * w o - o < = & = <= ' > > . > G . = > . & 0 . . . 0 . - > 0 & 0 >m . . . 0 . . o . e o m o . o x . . o . m xo o
= > % X v - - = N > > % - - m .e m - > m m - > m . x o m o m
o& CR o <ï %G c> tnO . o: o cu oq eq uo x eq m x o & o m o x o o o co rno v . r- ' ' . . . * o ' & t- <uo * o >. ' o - ' - rej o ND .- * & o & : rq (N= => > en v - .- .- wn eq - .- cu rx v <t rx * xr to eo . v =e% r/ q
x= x 0. <k = %m* ' ox %n eq DN m rw * . rn v * . &. o PQ o m o * % o. tn o to %mo to rn ' * ' . ' o* un * ' >. D< ' t'- m ' = o & - QN ' M' X VD P- t rel &= - % % - > > < - M x > x . c <- . m - % a - > > > v -1
r'-c7 - = r- * to tm & trs=> ' oN o (h4 uo ' < to &. rn r'- (.q &. xr * o (>x x trl o Ka m= = - . m ' ru rw . v ' . . j , m , x rn- . . m t.- . o p. x w. rx< = to % * xr = o - ..- > eq .- P' (x - .- Krh vn . m M'- v v
< t.- t.- m> = -- tm x w o .m . x .- o x
o- = e.x ' oq rw m r/ v . m * . en % m . rS . o ox P< ' t'-w . = = % &. Gn -e (N '- -. m (N .- m' rx - ro vn .- %n .- o rx oqr- v '- P- rq
ox ro= = 1
- - & - M> . M > m w o o- o m a o > o > . > -. . * 0 . > m . = . =
. . m o o. o . m . cj .. . - . o < wj . exj . j . ON . <> N % = % = - - N - * - > < - - m o v >1
J- r - .=
- c çtl t/ c'u) t/ c' Pu k- =t) t; c.= = c
.-. r.( vu ij
.x.' 11 11- - >.= .-w# ar
,>. = ' ' v '... o wo:r ... o'h ww<e- ..- = w xvo ca o o R.X o - (N w
== u. = >x-. rz = ra o .0 >D '-o & = u
.-*= - ' -*
o *-'''>. C: ' = '-e trs **' %* t $k.- vn = t.a . o . .& & = u) = -= = . -. = = = ul ' -.-. . o : Q) =& & - . -. = = '- . $m e-.-. :.4 = .. ro tm r..ô .-.' .* >, - = u) D -u I l =. $o = w- .. so = . .- ='J = = =
..- to . -= = = = *- = = .-o C) tc c u. o a -'- .= = =. u. o tm ,- .- = r = =& & N - u = - - 0 -w = - m = - = o u = -- c m n = D . o o . =
. < D u o o =- - - m w m . w . .- .> - - - - o r . .o O = = = c c a c - z r - D = - u . o r a- = = = - = - = - - w< - O = - M . m - . = . - M - n - = - * = m c .- =''- = = * = = N= '- -- G
-'r -- X - -- .- ' - > = = - - o = - - & == - - . = = - = - = D J0 0 = * 0 = - = - = 0 - - = & = = . 0 0 = R c - 0 . > * ....M = = - t ::D t.l -0 M 7% o M k3 -o -'* m a =: A F- = = o W' - - = .
- - '
a uw - . - co - = = .- -- o' .- .. = - - = - - = .-. ..- '> ..- = v = Q) .
w # ' - w - . ..- . > .-. - > - .- == = - = = x = = o = = u = = < = = < = = - = = w = = > . 0 = '- - - - - - - > - - > - - > - - - = = - e e =*t. -
.z' = - .z' = = v'.- - = = = .-- = = .-- -- = ' M = = u, -- =- '' ' a . t2 . - = = ' -- - - R . - ...a
.- :7 .-. ' - u:a .-. tp o v tp = v. = = .-. = :a v. = O - = = ..- D .- .- = . - r . ;z > - . .'*' Z. '- * A. r * Z '* = Z . ;7 * = ZZ ;Z Z '- '- Z e- = = = t2 '- w) = '- ' '- = = = '& X * - - c X - .. c - m c = & . l *- rz c .. . & . .. t) A M
=== U O D O D O = O D O = = O = O W O O = = D * V - < - = O Ne.a; .u . - o ..4 . .- ta to . .- = u) . .- u) ta . - up o . -. = = . .- ua *- > = ''a = I ,.'<. . -u. .- u- .- = .- -. = .- .- cz u. .- = u. .- e. u- .- C) .- QJ :7 e t/ C.6 ''''% ' '- .-.4-- -
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-= = --
- = -- - = = - = = - = -- -- = = =. : J , -- =: D =. w ' :z2 v z -w ' w- ' .- v
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