AFRICAN DEVELOPMENT FUND Language : Engglish Original : French

INTEGRATED DEVELOPMENT AUTHORITY OF THE LIPTAKO-GOURMA REGION

(ALG)

ALG INSTITUTIONAL SUPPORT PROJECT

APPRAISAL REPORT

DEPARTMENT OF INFRASTRUCTURE CENTRE AND WEST (OCIN) November 2004

TABLE OF CONTENTS

Pages PROJECT INFORMATION SHEET, CURRENCIES AND MEASURES, LIST OF ABBREVIATIONS, LIST OF TABLES, LIST OF ANNEXES, BASIC DATA, EXECUTIVE SUMMARY, PROJECT MATRIX

i – vii

1 PROJECT ORIGIN AND HISTORY.............................................................................1 2 PRESENTATION OF ALG.............................................................................................2 2.1 Legal and Institutional Framework .................................................................................... 2 2.2 Functions of ALG............................................................................................................... 3 2.3 Organisation and Management........................................................................................... 4 2.4 Staff and Training............................................................................................................... 5 2.5 Financial Situation ............................................................................................................. 6 2.6 Sectoral Policies ................................................................................................................. 6 2.7 Development Strategy ........................................................................................................ 7 2.8 Retrospective Activities of ALG........................................................................................ 8 2.9 Development Prospects .................................................................................................... 10 2.10 ALG Constraints .............................................................................................................. 11 3 THE PROJECT ..............................................................................................................11 3.1 Project Design and Rationale ........................................................................................... 11 3.2 Project Location ............................................................................................................... 12 3.3 Strategic Context of Project ............................................................................................. 12 3.4 Project Objectives ............................................................................................................ 14 3.5 Project Description ........................................................................................................... 14 3.6 Project Costs..................................................................................................................... 18 3.7 Financing Plan and Expenditure Schedule....................................................................... 19 4 PROJECT IMPLEMENTATI ON ...............................................................................20 4.1 Executing Agency ............................................................................................................ 20 4.2 Institutional Arrangements ............................................................................................... 20 4.3 Implementation and Supervisoin Schedules .................................................................... 21 4.4 Procurement Arrangements ............................................................................................. 22 4.5 Disbursement Arrangements ............................................................................................ 23 4.6 Monitoring and Evaluation............................................................................................... 23 4.7 Financial and Audit Reports ............................................................................................ 24 4.8 Aid Coordination ............................................................................................................. 24 5 PROJECT SUSTAINABILITY AND RISKS..............................................................24 5.1 Recurrent Expenses ......................................................................................................... 24 5.2 Project Sustainability........................................................................................................ 24 5.3 Main Risks and Mitigating Measures............................................................................... 25 6 PROJECT BENEFITS ...................................................................................................25 7 CONCLUSION AND RECOMMENDATIONS..........................................................26 7.1 Conclusions ...................................................................................................................... 26 7.2 Recommendations and Grant Conditions ........................................................................ 27 LIST OF TABLES • Table 6.1 : Summary of Project Cost Estimates by Component • Table 6.2 : Summary of Project Cost by Expenditure Category • Table 6.3 : Financing Plan by Source

• Table 6.4 : Financing Plan by Expenditure Category • Table 6.5 : Expenditure Schedule by Component • Table 6.6 : Expenditure Schedule by Expenditure Category • Table 6.7 : Expenditure Schedule by Financing Source • Table 7.1 : Project Implementation Schedule • Table 7.2 : Provisional Supervision Schedule • Table 7.3 : Procurement Arrangements LIST OF ANNEXES • Annex 1 : Map of Liptako-Gourma • Annex 2 : ALG Organisation Chart • Annex 3 : Project Implementation Schedule • Annex 4 : List of Goods and Services • Annex 5 : Retrospective Financial Situation • Annex 6 : ALG Operations Since its Inception • Annex 7 : Bank Group Operations • Annex 8 : Portfolio of Ongoing Projects - Burkina – Mali – Niger • Annex 9 : TORs of the Technical Assistants • Annex 10 : Time Table of Activities This report was written by Mr. J.B. NGUEMA-OLLO, Electro-mechanic Engineer and a Consultant, Financial Analyst, following a mission to the Liptako-Gourma Region in August 2004. Further information may be obtained from Messrs. G. MBESHERUBUSA, Director, OCIN, Mr. DOUMBIA, Division Manager, OCIN.2 or the author of the report.

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AFRICAN DEVELOPMENT FUND B.P. 323, 1002 Tunis Belvedere Tunisia

Tel: (216) 71 333 511 Fax: (216) 71 351 933 Email: afdb@afdb.org

PROJECT INFORMATION SHEET Date: November 04

The information given hereunder is intended to provide some guidance to prospective suppliers, contractors and consultants and other persons interested in the procurement of goods and services for projects approved by the Board of Directors of the Bank Group. More detailed information may be obtained from the Executing Agency of the Borrower. 1 Country and Title of Project Institutional Support to the ALG 2 Location Ouagadougou 3 Donee Liptako-Gourma Authority 4 Executing Agency Liptako-Gourma Authority

415, Avenue Kwame N’KRUMAH 01 BP 619 Ouagadougou 01 (Burkina Faso) Tel: (226) 50.30.61.48 Fax: (226) 50.30.85.88 E-mail: liptako-gourma@cenatrin.bf

5 Project Description The project comprises the following main components:

A) Technical Assistance B) Strengthening of Technical Equipment C) Training Programmes D) Project Coordination and Management

6 Total Project Cost • UA 1.69 million 7 ADF Grant Amount • UA 1.59 million

ALG • UA 0.03 million 8 Other Financing Sources Governments • UA 0.07 million

9 Date of Approval November 2004 10 Probable Start-up Date March 2005 11 Duration of Project 24 months 12 Procurement of Goods and

Services • Information technology and office equipment,

office material, technical equipment for the ALG headquarters will be procured through national shopping in the three ALG countries.

• Technical assistance services, the services of an external auditor and those concerning the training programme will be procured through consultancy based on a short list of consulting firms in compliance with the Bank rules of procedure for the use of Consultants.

• Various goods required for project coordination and management (operations of the executing agency and miscellaneous) will be procured through national shopping.

13 Technical Assistant Services Required

Technical assistance will be required to upgrade ALG’s expertise.

14 Environmental Category III

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CURRENCIES AND MEASURES (October 04)

CURRENCY EQUIVALENTS

• Currency Unit = CFAF (XOF) • UA 1 (UC) = XOF 794.272

WEIGHTS AND MEASURES

Metric System

FISCAL YEAR

1st January – 31 December

LIST OF ABBREVIATIONS

• ABEDA = Arab Bank for Economic Development in Africa • ABN = Niger Basin Authority • ADB = African Development Bank • ADF = African Development Fund • AEP = Sanitation and Water Supply • AFRISTAT = Economic and Statistical Observatory for Sub-Saharan Africa • ALG = Liptako-Gourma Authority • BCEP = Central Bureau for Studies and Projects • BD = Bidding Documents • BOAD = West African Development Bank • CDM = Council of Ministers • CFAF = CFA Franc • CFC = Common Fund for Commodities • CHS = Conference of Heads of State • CILSS = Inter-state Committee for Drought Control in the Sahel • CSP = Country Strategy Paper • DAAF = Directorate of Administrative and Financial Affairs • DDR = Department of Rural Development • DG = Director General • DIIM = Department of Infrastructure, Industry and Mines • ECA = United Nations Economic Commission for Africa • ECOWAS = Economic Community for West African States • EU = European Union • FAGACE = African Guarantee and Economic Cooperation Fund • GIS = Geographic Information Service • GPS = Global Positioning System • HDI = Human Development Index • ICB = International Competitive Bidding • IGO = Inter-Governmental Organisation • IsDB = Islamic Development Bank • PRSP = Poverty Reduction Strategy Paper

iii • SAE = Agriculture and Livestock Service • SBD = Basic Data Systems • SEP = Environmental and Fisheries Service • SHE = Water Resources and Energy Service • SIC = Infrastructure and Communication Service • SL = Short List • SSO = Sahara and Sahel Observatory • SYSCOA = West African Accounting System • TIP = Three-Year Investment Programme • UA = Unit of Account • WAEMU = West African Economic and Monetary Union • UNDP = United Nations Development Programme • UNSO = United Nations Students Organisation.

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EXECUTIVE SUMMARY 1 Project Origin and History 1.1 Liptako-Gourma is the name given to a geographic region lying astride the common boundaries of Burkina-Faso, the Republic of Mali and the Republic of Niger. The specificity of the region is that it is made up of the most landlocked and poorest areas of the three countries. It comprises however an extended zone of 536 000 km2, boasts 1400 km of the river Niger’s course, and possesses considerable resources (mining, energy, water, mixed farming and fishing) that are yet to be developed. In the early years of independence, the Republic of Burkina-Faso, the Republic of Mali and the Republic of Niger undertook to strengthen ties of cooperation and solidarity binding the three States, through the integrated and harmonious development of the Liptako-Gourma region. It was towards that goal that the Liptako-Gourma Authority (ALG) was created in December 1970 and commissioned to promote the common development of this economic potential with a view to reducing poverty in the region. 1.2 To attain all the objectives of its mission, ALG adopted a strategy that focuses on the development of the selected activity sectors through appropriate policies. Accordingly, it has formulated a far-reaching development programme for the region which, if it is to be implemented requires more human and technical resources. This project is the result of a diagnosis of the needs expressed by ALG, of discussions with other development partners and a review of their respective contributions to resolving the issue of ALG’s institutional capacity. The rationality of this project stems also from the need for the Bank and donors to help ALG fine tune its strategy for poverty reduction. To do so, ALG should thus have an adequate framework and working instruments, create the conditions conducive to the harmonious development of the chosen sectors while ensuring effective participation of the private sector. These provisions were discussed and approved by donors during the review of ALG’s priority programme during the deliberations of the Round Table of March 2003. 1.3 Following the meeting of 13 April 2004 between the Bank and ALG, the need to build ALG’s capacity for intervention was accepted and the Bank agreed in principle to provide institutional support with a view to building ALGs’ human and material capacity, and providing technical assistance. Thus, by correspondence dated 3rd June 2004, the Chairman of its Council of Ministers submitted a request to the Bank for financing ALG’s institutional support. The proposed project, which was the subject of a preliminary appraisal by ALG staff, was included in the Bank’s 2004 lending programme. The project’s appraisal mission was fielded in August 2004. 2 Purpose of the ADF Support 2.1 The ADF support is aimed at providing ALG with financial resources to meet foreign exchange requirements and part of the local currency costs, as well as those for technical assistance, staff training and the procurement of information technology and office equipment needed to build its human and technical capacity. 3 Project Objectives 3.1 The project’s sector objective is to help put in place development plans and programmes in the water resources, energy and rural transport sectors of the Liptako-Gourma Region. Its specific goal is to build the human and technical capacity of ALG to enable it to improve its performance.

vi 4 Project Implementation and Components 4.1 The project’s implementation will provide ALG and donors with an energy and rural transport plan for the Liptako-Gourma Region which by the year 2006 will lead to a regional stock watering programme, a regional electrification programme and a rural road programme. Indeed, in the context of the water initiative, the Bank started preparing an important drinking water supply and sanitation programme in the three ALG member countries as well as a study concerning the rehabilitation of the Dori-Tera road between Burkina-Faso and Niger. However, this programme does not take into account the requirements of the mixed farming sector. It will supplement activities undertaken in the region in connection with the water initiative and improve the programme’s sustainability. Concurrently, master plan and rural electrification studies with a renewable energy component are ongoing in the countries with funds from the ADF. These studies should lead to national rural electrification programmes based on which ALG should initiate projects for this specific region. 4.2 The project comprises two components: i) building ALG’s human capacity and providing ALG with five technical assistants in the areas of water resources, renewable energy, mixed farming, rural transport and Geographic Information Systems, as well as a training programme for all ALG staff; and ii) building the technical capacity, strengthening technical installations, and procuring information technology and office equipment. Project components are as follows: A) Technical assistance; B) Strengthening technical equipment; C) Training programmes; and D) Project coordination and management; 5 Project Costs 5.1 Total project cost, net of taxes and customs duty is estimated at UA 1.69 million including UA 1.20 million in foreign exchange and UA 0.49 million in local currency. These costs include a 5% provision for physical contingencies and 3% per annum for price escalation on the foreign exchange and local currency costs. 6 Financing Plan 6.1 The project will be financed by the ADF, ALG and the three Governments in accordance with the financing plan of table 6.3. The ADF grant of UA 1.59 million will make it possible to cover 94.13% of the project’s total cost, finance the entire foreign exchange cost and 79.16% of all local currency costs of technical assistance, procurement and installation of information technology and office equipment, and the project unit. ALG will cover UA 0.03 million or 1.84% of the project’s total cost comprising part of the expenses for technical assistance, office supplies and training. The three Governments will share equally the cost of equipment for the ten offices and of overhauling the documentation room or UA 0.07 million i.e. 4.03% of the project’s total cost (UA 0.03 per country). 7 Project Implementation 7.1 The General Directorate will be the project’s executing agency. It will set up a project implementation unit attached to the Director General. ALG has a long experience in the implementation of studies and works during which its employees acquired the necessary skills to implement a project like the one proposed here. Its experience with the Bank in particular, was

vii acquired through studies and works. The implementation unit will be entrusted inter alia with preparing documents for the recruitment of technical assistants, the procurement of equipment and consultancy services, as well as monitoring and coordinating all project activities. 8 Conclusions and Recommendation 8.1 Building the capacity of ALG, which is in charge of implementing and coordinating development policies and programmes in the Liptako-Gourma Region seems a necessity. The assistance sought will help build ALG’s capacity to intervene in the areas of water, renewable energy, mixed farming, rural transport and design of databank and geographic information systems. The assistance will cover: i) recruitment of five technical assistants; ii) procurement of information technology equipment and office material; and iii) staff training. 8.2 It is recommended to extend an ADF grant not exceeding UA 1.59 million to the Liptako-Gourma Authority to implement the project as described in this report and in accordance with terms and conditions to be specified in the Grant Protocol Agreement.

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PROJECT MATRIX • Name of Project : ALG – INSTITUTIONAL SUPPORT TO THE LIPTAKO-GOURMA AUTHORITY • Design Date : 28 October 2004 • Completion Date : 31 December 2007 • Design Team : J.B. NGUEMA-OLLO and Consulting Financial Analyst

HIERARCHY OF OBJECTIVES (HO)

OBJECTIVELY VERIFIABLE INDICATORS (OVI)

MEANS OF VERIFICATION (MOV)

MAJOR ASSUMPTIONS/RISKS

1 SECTOR OBJECTIVE 1.1 Assist in putting in place

development plans and programmes in the water resources, energy and rural transport sectors of the Liptako-Gourma Region.

1.1 Contribute to improving the

extreme poverty line from US$ 60 in 2002 to US$ 120 in 2015.

1.2 Contribute to decreasing the population living below the extreme poverty line from 50% in 2002 to 30% in 2015.

1.1 UNDP Human Development

Report. 1.2 Economic Programme

Reports of the Governments/

1 IMPACT ON THE MAIN OBJECTIVE

1.1

2 PROJECT OBJECTIVES 2.1 Build the human and technical

capacity of ALG to help it improve its performance.

2.1 4 technical assistants recruited in

2005 2.2 5 additional professional staff

recruited in 2005. 3.1 ALG technical networks

strengthened in 2006. 2.3 33 ALG staff members trained in

2007. 2.4 1 GIS and 1 GPS purchased and

installed in 2005. 2.5 18 computers, 6 printers, 4

photocopiers, 3 scanners, 1 video-projector and 1 camcorder purchased in 2005.

2.1 Reports of the National

Directorates of the sectors covered by ALG.

2.2 Reports of the ALG investment programme reviews

2.3 ALG activity reports.

2 IMPACT ON SECTOR OBJECTIVE

2.1 Socio-political stability of the

ALG member countries. 2.2 Availability of reliable data on

social and economic parameters.

2.3 Mobility of staff trained. 2.4 Maintenance and renewal of

information systems.

ix 3 OUTPUTS 3.1 Plan of the Liptako-Gourma

Region’s water resources. 3.2 Energy Plan of the Liptako-

Gourma Region. 3.3 Liptako-Gourma Region

Rural Road Development Programme.

3.4 Establishment of a socio-economic databank of the region.

3.5 Strengthening technical equipment.

3.6 Training of staff members.

3.2 1 Liptako-Gourma Region

Regional Drinking Water Supply Programme available in 2006.

3.3 1 Regional Rural Electrification of the Liptako-Gourma Region available in 2006

3.4 1 Liptako-Gourma Region Rural Road Development Programme 2006.

3.5 1 conceptual design model for the GIS available in 2006.

3.1 Start-up notices for various

services signed. 3.2 Project implementation

reports. 3.3 ALG and ADF supervision

reports 3.4 Audit report. 3.5 Final project implementation

report.

3 INFLUENCE ON PROJECT OBJECTIVE

3.1 Availability of national

specialists required for ALG.

4.1 Financing • ADF UA 1.59

million • ALG UA 0.03

million • Gvts. (Burkina,

Mali, Niger) UA 0.07

million• Total UA 1.69

million

4 ACTIVITES 4.1 Publication of the general

information notice. 4.2 Preparation of TORs and

bidding documents. 4.3 Recruitment of technical

assistants. 4.4 Contract award. 4.5 Project Implementation. 4.6 Project supervision 4.7 Audit of project accounts.

4.2 Human Resources • Technical assistance (4) • National units • ADF Follow-up

4.1 Grant Agreement Protocol

signed. 4.2 Technical assistant contracts

signed. 4.3 Equipment contracts signed. 4.4 Minutes of the delivery of

services, equipment and supplies.

4 INFLUENCE SUR LES REALISATIONS

4.1 Fulfilment of the other grant

conditions. 4.2 Availability of the

Governments’ and ALG counterpart funds.

1 PROJECT ORIGIN AND HISTORY 1.1 The Integrated Development Authority of the Liptako-Gourma Region known as the Liptako-Gourma Authority (ALG) is a regional cooperation organisation that groups the Republics of Burkina-Faso, Mali and Niger. It was established following the recommendations of a multisectoral mission that the United Nations Economic Commission for Africa (ECA) and the United Nations Development Programme (UNDP) organised in 1970 in this region, which lies astride the boundaries of the three countries. The ALG impact area covers the administrative districts and is estimated at 536 000 km2 or 19% of the total area of the three member states, that is to say 57.6% of the area of Burkina, 14.25% of that of Mali and 28.15% of that of Niger. The population of the region was estimated at 16.5 million inhabitants in 2002 by the UNDP human development report for 2004, in other words 45% of the total population of the three countries. This population is extremely poor with 50% living below the poverty line estimated at US$ 60 per annum and nearly 80% are rural dwellers. According to the UNDP’s HDI, in 2002 all three countries were classed among the bottom ten countries of the world. 1.2 On of the specificities of the Liptako-Gourma Region lies in the fact that it is confined to a landlocked, underprivileged and very poor area subject to weather hazards, although it boasts considerable potential and resources which can only be rationally tapped by all three together. This potential includes: i) immense water (1400 km of the river Niger’s course among others) and therefore significant energy, agricultural and fishing resources; ii) many mining resources; and iii) abundant animal resources. The economy of each ALG member countries is characterised mainly by: i) an essentially rural population who practice primarily subsistence farming and have a very low purchasing power; ii) activities that relate mainly to mixed farming dependent on the vagaries of the weather; iii) exports concentrated on primary products; iv) a trade deficit; and v) the landlocked nature of the territory. The ECA/UNDP mission recommended among other things a common exploitation of the region’s riches. This recommendation was backed and given concrete expression on 3/12/1970, through the signing of the Protocol of Agreement creating ALG with a view to strengthening the ties of cooperation and solidarity that bind the three countries and the resolve to make of ALG a successful example of harmonious development in the region. 1.3 The fundamental objective of ALG is to promote in the Liptako-Gourma Region, mining, energy, water, mixed farming and fishing resources through studies in various activity sectors, and mobilise external resources for implementing and monitoring projects. The harmonious and integrated development programme of the Liptako-Gourma Region was designed based on two main axes: i) sectoral integration in other words the inter-dependence of sectors, the consistency and complementarity of social actions; and ii) the connection between the regional programme and actions taken at the level of the States and Inter-governmental Organisations (IGO). 1.4 Sectoral integration requires the contribution of all activity sectors with the support of the mixed farming and mining sectors whose development will propel industrialisation and will have a ripple effect on the other sectors. The inter-dependence resulting from the implementation of a coherent policy in the support sectors (water resources, communications and energy) would make it possible to address the concerns of the populations and provide the means necessary to increase production. The operations in the water and energy sectors will help attain the objectives of mixed farming and mining production. The transport and communications infrastructure will be the basis for the development of trade and the establishment of a regional market capable of stimulating production and social development.

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1.5 The link between the regional programme and the national and IGO actions shows the efforts made by member states individually and by ALG to implement operations. These have been coordinated for complementarity and to ensure that activities are in harmony. In that context, given the increase in the number of IGOs and the scarcity of financial resources, ALG signed protocols of agreement or cooperation with other IGOs involved in the area, (ABN, AFRICARAIL, BOAD, CFC, CEN-SAD, CILSS, FAGACE, WAEMU). The IGOs of the sub-region to which the ALG member states belong have been approached for the benefit to be derived from their technical and financial support in identifying and formulating projects. These actions aim at setting out harmoniously, national development plans and programmes and initiating in concert projects and studies. The other IGOs consider ALG as a regional organisation whose actions serve as pilot operations to be generalised. In addition, within the framework of the afore-mentioned cooperation agreements, the substitution principle whereby ALG will be in charge of development programmes in its impact area has been adopted. 1.6 To attain all the objectives of its mission, ALG has formulated a development programme for the region which on the one hand, is progressing in line with the resources mobilised in the three states, and on the other, fits into a general framework of priority actions pertaining to the regional integration of the Economic Community of West African States (ECOWAS), the West African Economic and Monetary Union (WAEMU) and the New Partnership for Africa’s Development (NEPAD). This programme was presented to the Donor and Development Partners during the Heads of State Conference held in Ouagadougou on 21 March 2003. Specific recommendations were made including the institutional strengthening of ALG with a view to improving its performance and programme quality. The ADB Group appears to be one of ALG’s lead partners both in terms of the diversity of its interventions (roads, telecommunications, water resources, livestock, health, institutional support) as of the volume of its investments (over CFAF 30 billion or 24.5% of the amounts obtained). Because of this loyalty to ALG, ADB has been designated lead donor of ALG. However, donor interventions are almost overlooked in institution building which ALG really needs to implement its three-year activity programmes. 1.7 It is in that context that by correspondence of 3 June 2004, the Chairman of the ALG Council of Ministers submitted to the Bank a request to finance institutional support for ALG. The support requested aims to build ALG’s capacity in the areas of water, renewable energy, mixed farming and the establishment of a databank. This grant proposal is a follow-up to the aforesaid request. It is based on the results of the project’s appraisal carried out in August 2004 at the ALG Headquarters in Ouagadougou, Burkina-Faso. 2 PRESENTATION OF ALG 2.1 Legal and Institutional Framework 2.1.1 ALG is a multinational public non-profit-making establishment endowed with a legal personality and financial autonomy. In particular, it has the capacity to sue and be sued, sign financial agreements, create or share in companies. ALG’s decision-making organs are: i) the Heads of State Conference; ii) the Council of Ministers; and iii) the General Directorate. 2.1.2 The Conference of Heads of State (CCE) is ALG’s supreme organ. Its plays the role of guide and meets in an ordinary session every three years. It is chaired in turn by each of the three States.

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2.1.3 The Council of Ministers (CDM) is the decision-making and supervisory organ. It comprises a Minister per State and is chaired in turn by each of the three member states for a period of three years. The CDM meets once a year in an ordinary session at the request of its Chairman but can also be convened in extraordinary sessions at the request of one of the member states, the Director General or at his initiative. Its powers are far-reaching especially in the definition of priority development actions and fixing the budget. The decisions of the CDM are taken unanimously by its members and cannot validly deliberate except with a representative from each member state. The Chairman of the CDM has the power to negotiate and sign on behalf of the member states all agreements relative to project implementation. He is assisted in this task by the Director General (DG). 2.1.4 The General Directorate is supervised by the sitting Chairman of the CDM. It ensures that the decisions of the CDM are applied, manages the staff, executes ALG’s operating budget and reports to the CDM on the application of decisions it is assigned. The DG is appointed by the CDM for a three-year period renewable once. He has the authority to negotiate any agreement within the framework of programmes decided by the member states. It plays the role of secretariat and submits ALG’s activity report on each CDM. The position of DG is occupied in turn by a national of the two member states which do not have the ALG headquarters. The headquarters are in Ouagadougou, Burkina-Faso. The country currently sitting in the CCE and CDM chair is Burkina Faso. 2.2 Functions of ALG 2.2.1 ALG’s overriding objective is to promote, in a regional framework the common development of mining, energy, water, agricultural, pastoral and fishing resources within the limits of its impact area. Its main mission is therefore to set in motion, implement and coordinate at member state level any action that can contribute to the harmonious and integrated development of the Liptako-Gourma Region. ALG’s role is decisive both in terms of identifying, formulating, planning and monitoring-evaluating projects, as in terms of searching for funds. Once the financing requirements have been signed, project implementation is entrusted to the supervisory ministries and ALG’s role is limited to supervision and monitoring-evaluation. 2.2.2 In the context of its development mission, ALG carries out a number of activities especially project and programme identification, project preparation, project monitoring-evaluation as well as coordinating the implementation of the actions of donors and other development partners. Operations are identified either by the Governments for transnational actions, or by ALG. Actions identified by the Governments are the subject of studies conducted by ALG in order to arouse the interest of at least two member states; those identified by ALG must comply with the following eligibility criteria: i) be of interest or regional in nature; ii) require investments that match the resources of member states; iii) appear in the development plans and programmes of member states. 2.2.3 Studies are conducted under the direct responsibility of ALG in liaison with member states, donors and other development partners. The studies validated or programmed as well as the regional actions identified are included in ALG’s three-year investment programme for the search of financing and implementation of the actions in its programme. The operations are coordinated through monitoring-evaluation missions organised with the consent of member states. Coordination may take three forms: i) the project is led by a committee chaired by ALG and comprising representatives of member states; ii) the project is led by a national unit set up to manage the national aspect of a regional project; and iii) the project is led by a coordination unit chaired by ALG and made up of representatives of the states for implementation of a regional project whose financing is in the form of loan to the Governments. ALG also ensures that there is an exchange of experience and skills between ALG and member states. Accordingly, all new ALG

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projects and programmes provide for a regional coordination unit in addition to the national coordination units. 2.3 Organisation and Management 2.3.1 ALG’s organisation chart (attached at Annex 2) comprises: the General Directorate with the following three Divisions: the Central Studies and Projects Office (BCEP), the Documentation, Information and Public Relations Department (SDIRP) and the Accountant; and following three Departments: the Department of Administrative and Financial Affairs (DAAF), the Department of Rural Development Rural (DDR) and the Department of Infrastructure, Industry and Mines (DIIM). DIIM, and DDR, the two operational departments are required to formulate and implement studies, programmes and projects in their respective sectors. They are assisted in their duties by the BCEP. 2.3.2 The BCEP is responsible for initiating studies, centralising economic information and statistics and preparing action programmes. It is also responsible for monitoring dossiers, financial execution and evaluating all ALG’s operations in collaboration with the technical departments of member countries. The BCEP is headed by a professional with over 20 years of experience. However, the position of economist/statistician provided for in the department has not yet been filled. The project plans to provide ALG with a technical assistant who is a computer expert specialised in the GIS. The economist/statistician to be recruited in June 2005 will be his counterpart. 2.3.3 The SDIRP is responsible for centralising documentation and archives, editing documents, organising statutory meetings and for public relations. The position of head of the SDIRP is still vacant. Given its importance, ALG plans to fill the position as soon as possible. 2.3.4 The Accountant is in charge of expenditure control and regulation, keeping accounts and funds, preparing accounting and financial documents, inputting data, co-signing cheques and for controlling and regulating expenditure. The accountant takes part in payment decisions, controls expenditure and as such judges and is judged. His functions cover in part those of the DAAF. For a better organisation of the work, this position must be converted into internal audit and accounts must be kept exclusively by the DAAF. That is a grant condition. The current holder of the position has the qualifications to carry out this function. 2.3.5 The DAAF is in charge of keeping accounts, staff and financial management, management of fixed and movable assets, preparation of institutional, administrative and financial texts, legal control of contracts, agreements and commitments, monitoring and processing of contentious issues. This Department is sub-divided into the following three sections: staff, accounting and property and legal issues and disputes. The Head of the Department is the only professional employee of the DAAF. The Department has adopted the new West African Accounting System (SYSCOA) and is in the process of computerising its accounts; the recruitment of an accountant with at least 5 years experience and solid information technology training is thus a necessity. In addition, the position of legal expert is yet to be filled; his recruitment is indispensable for preparing many of ALG’s contracts including those relative to this project. Lastly, the project will provide ALG with important equipment and ALG will be expected to recruit a specialist to maintain them. 2.3.6 The DDR is responsible for implementing agricultural, livestock and fish farming development operations, environmental protection and restoration, as well as community development activities. This Department comprises the Agriculture and Livestock Division (SAE) and the Environmental and Fisheries Division (SEP). The position of Head of the Environmental and Fisheries Division is still vacant. The Head of the Agriculture and Livestock Division will be the counterpart of the mixed farming specialist who will be recruited in the context of this project.

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2.3.7 The DIIM is in charge of implementing operations in the following fields: Transport, Telecommunications, Water Resources, Energy, Geology and Mines, Industry and Craft, Health and Education Infrastructure. The Department comprises the Infrastructure and Communications Division (SIC) which is in charge of operations concerning bridges and highways, railways, river navigation and telecommunications; the Industry and Mines Division (SIM) which is responsible for operations regarding research into and development of mining and oil resources and related industries; the Water Resources and Energy Division (SHE) which is responsible for operations pertaining to water and energy. The Heads of the Department and DDR and DIIM Divisions are professional employees with over 10 years experience and they will be helped by the technical assistants to be recruited. 2.3.8 The National Committees, one per member state, monitor ALG activities, process and follow-up projects and documents in the three countries. The national committees comprise representatives of all structures involved in ALG’s activities. They are chaired by national agents from the supervisory ministry and it is their responsibility to prepare activity reports and ensure harmonisation between the operations of ALG’s three-year investment programmes and the national development programmes. 2.3.9 ALG’s organisation chart is functional. It allows for a dissemination of information and rapid decision taking. The function lacking is that of internal control and in the spirit of SYSCOA, its introduction is a necessity. ALG must fill all the vacant positions if it is to attain the objectives of its mission. In that connection, a statistician/economist, an accountant, a documentalist, an environmentalist and a legal expert must be recruited not later than June 2005, prior to the start of the technical assistant services provided for under this project. The position of Internal Audit will be created following the approval by the CDM of the modification of ALG’s organic texts scheduled in December 2005. 2.4 Staff and Training 2.4.1 In August 2004, ALG accounted for 33 employees including 10 professional with international status who enjoy diplomatic privileges and immunities and a salary scale higher than that of the national employees. Staff members include 6 women 2 of whom are professionals: the Accountant and the Head of Human Resources. A breakdown of the staff strength is given as Annex 2. The quality of the professionals is satisfactory. Most acquired experience in the civil service of their countries before joining ALG. All professional staff have the relevant qualifications and experience for implementing the project; their considerable work load will become lighter after the recruitments planned under this project. 2.4.2 ALG is responsible for training its staff. However, for lack of resources, ALG does not systematically implement its training programmes. It has a major and urgent need to upgrade its staff and national agents. ABEDA has provided ALG with a specialist in rural development for 18 months starting 11/02/02. This specialist has lectured all professional staff and provided training in the methodological approach to rural development planning and the project cycle. The results of this training are positive and the professionals maintain that the courses have been of benefit to them. In 2002, the IDB put at ALG’S disposal three specialists for a period of six months each. The mission of the experts was to provide training in project monitoring-evaluation, data analysis and computerisation of financial management. However, the specialists were faced with the inadequacy of ALG’s equipment an issue that will be addressed under this project.

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2.5 Financial Situation 2.5.1 Funds for the implementation of ALG’s operations are from its own resources or external sources. The former are derived from i) equal contributions from the member states which amount to CFAF 64 million per annum; ii) specific contributions in respect of national counterpart funds for local costs and/or recurrent project expenses; iii) grants, legacies and subsidies; iv) various earnings and unforeseen revenue; v) borrowings; vi) income from fixed and movable assets. 2.5.2 ALG prepares its budget and submits it to the CDM for adoption. A review of the budgets of the last four years reveals that resources have see-sawed. Down from CFAF 193.4 million in 2000 to CFAF 174.7 million in 2001, CFAF 173.6 million in 2002, then to CFAF 314.9 million in 2003. In the first six months of 2004, ALG received CFAF 196 million corresponding to the contribution of the three member states, and proceeds from renting the building and meeting rooms. ALG’s revenue depends for the most part on contributions from the states, i.e. on average 60% of the total revenue. In 2003, the revenue recovery rate stood at 96%. Only Niger registered delays in contribution amounting to CFAF 345 million. Consequently, a clearance schedule was established according to which Niger paid CFAF 60 million in 2003 and must pay CFAF 91.8 million in 2004 and CFAF 31.8 million per annum until clearance of the arrears. This schedule has been complied with. A summary of the budgets is given as Annex 5. 2.5.3 In the last four years expenditure has been higher than income and thus there has been a budget deficit. It stood at CFAF 41.3 million in 2002 against CFAF 31.3 million in 2000. It was only CFAF 13 million in 2003. The cumulative deficit as at 18 August 2004 was CFAF 185.5 million. This deficit represents contribution arrears. ALG is gradually paying off these debts which are lower than the contribution arrears of the states. As described above, the resources put at ALG’s disposal are not enough for the current level of its activities and more importantly for the conduct of its 2004-2006 three-year investment programme. 2.5.4 In the resource projections, account was taken of the 15% yearly increase of state contributions. The rent paid for ALG’s premises will be adjusted by 20% in accordance with the lease. Thus, resources will rise from CFAF 299 million in 2005 to CFAF 337.4 million in 2006 and CFAF 375.6 million in 2007. Under expenditure, account was taken of the recruitment of staff planned for this project, salaries which will increase by 5% every two years, recurrent expenses which will total CFAF 65 million starting 2008 and a provision for debt clearance. Against such assumptions, the budget will be balanced in income and expenditure as indicated in Annex 6. 2.5.5 External resources cover most of ALG’s operations. They are derived mainly from bilateral and multilateral donors as well as all other development partners. A development fund has been created and its resources will be used to finance economic and social development operations in the Liptako-Gourma Region. External borrowings contracted for the Fund are guaranteed jointly and severally by the member states. Regulations adopted during the CDM govern the terms and conditions for operating the Fund. If necessary, special funds can also be created. 2.6 Sectoral Policies 2.6.1 Based on the guidelines of the Conference of Heads of State, sectoral policies have been defined and are strengthened with the formulation and implementation of operations in the three-year investment programmes decided annually by the Council of Ministers. These sectoral policies translate the resolve of member states to ensure the conditions for a balanced and sustainable development of the Liptako-Gourma Region. The community policies adopted concern specifically the areas of agriculture and livestock, environment and fisheries, water resources, energy, industry and mines and lastly the social sector. They are implemented gradually in concert with the member

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states. The seven activity sectors adopted by ALG are: i) agriculture and livestock; ii) environment and fisheries; iii) water resources; iv) energy; v) communications; vi) industry and mines; and vii) social (health, education, social and economic promotion of women). The results expected depend on the attainment of specific objectives such as food security, opening up of the area, environmental protection and the Region’s economic and social development. 2.6.2 In the mixed farming sector these objectives can be attained: i) on the operational front, through the generalisation of the appropriate techniques for production, diversification, specialisation, intensification of mixed farming production and better quality of products; ii) from the ecological standpoint, through better management of soil fertility, water control and rational development of irrigation schemes; iii) socially, through the involvement of producers in decision-taking and the promotion of the role of women. 2.6.3 In the water resources sector, the vital drinking water needs of the populations will be met through the creation of modern water points. The other objectives sought are contribution to the development of irrigation, livestock and desertification control. In the energy sector, ALG should promote the development of hydroelectricity, renewable energy resources and contribute to the development of rural electrification. The purpose of these actions is to enable the population, most of whom are rural dwellers attain satisfactory living conditions and promote development in the areas of agriculture, industry trade and craft which subtend the energy development policy. 2.6.4 Concerning communications and transport, efforts will be made to: i) support and finance production; ii) develop complementarity and the integration of the economies of the various zones of the Region on the one hand, and the three ALG countries, on the other, iii) contribute to the development of the domestic market; and iv) open up the region to the external market. Emphasis will be put on the development of rural roads, continued tarring and periodic maintenance of the region’s main trunk roads; better navigability on river Niger and the development of telecommunications. 2.6.5 In the industrial and mining sectors the objectives are: the promotion of agro-industry; continued mining of gold resources; development of phosphate in order to manufacture fertilisers; exploitation of limestone and other raw materials for the development of a building material industry; the development of fossilised energy resources (charcoal, oil and plumbaginous shales, peat, lignite…); continued identification and assessment of the Region’s mining potential; and diversification of operators (through private sector incentives). 2.7 Development Strategy 2.7.1 ALG’s development strategy addresses the concern to provide the Authority with a reference framework that covers all its actions and interventions. Adopted in 1989, the strategy was updated in 1999 to take into account regional and global socio-economic changes. On the basis of the main guidelines set out when ALG was established namely, harmonious and integrated development, and consistent and common development of resources on the one hand, and the region’s socio-economic situation on the other, the strategy places poverty reduction at the core of its concerns making it a global goal to attain. The specific objectives to support this global goal comprise the search for food security, disenclavement, environmental protection and social development. 2.7.2 The strategy comprises two phases of development operations that cover all sectoral policies. The first step consists in identifying operations of interest or regional in character that require investments that can be covered with resources (human, material and financial) available to the states and that are included in their development plans. The second step consists in conducting feasibility studies that will lead to a choice between different operation variants, identifying the

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technical characteristics of the operations, defining means to be used and the organisation to put in place while working out the cost of the operations, assessing their financial and economic results and drawing financing plans. 2.7.3 ALG has adopted the principle of the three-year rolling investment programme (TIP). To that end, specialists of member states and those of ALG meet annually. ALG draws the annual activity programmes whose performance review makes it possible to determine the TIP’s level of physical and financial implementation. According to the schedule laid down in concert with the states, ALG organises periodic missions aimed at monitoring the trend of the region’s social and economic situation; identifying, formulating and appraising operations; and supervising implementation of ongoing actions. These missions are coordinated, prepared and carried out in collaboration with the national activity monitoring committees which help facilitate conduct of the identification missions. 2.7.4 Implementation of ALG’s strategy demands major investments that cannot be obtained without the assistance of development partners whose involvement is highly sought. Implementation requires: i) permanent member state support; ii) building ALG’s financial and human resource capacity so as to better its performance; iii) consultation with other IGOs of the sub-region with a view to ensuring consistency, synergy, as well as the efficiency of the actions to undertake and rationalising the means of intervention. 2.8 Retrospective Activities of ALG 2.8.1 ALG started its activities in 1972. To date, it has initiated 80 operations (34 studies, 46 projects). The rural development, transport and telecommunications have benefited respectively from 33 and 21 operations or 62% of ALG’s activities. These two sectors are followed by the mines (10) and health (6) sectors. This data suggest that ALG has made efforts to remove the Liptako-Gourma Region from its isolation by carrying out 17 transport and 4 telecommunications operations. Most of these operations were financed by multilateral donors. The list of these operations is given as Annex 6 and summarised in Annex 7. 2.8.2 With regard to the mixed farming sector, ALG has implemented 11 operations comprising inter alia the creation in 1984 of mobile fumigation units for food products in warehouses of the Liptako-Gourma Region with financing from UNEF. Conduct in 2002 of the feasibility study for the capacity building programme to support the protection and commodity storage services in the Liptako-Gourma Region with funds from ABEDA. Conduct of a master plan for the development of the Timbuktu-Gaya river reach in 1984 with an agricultural component. Potential of 400.000 ha of irrigable land. The study was conducted with its own resources and with financial support from UNDP. The development of poultry farming in Niger in 1976 with UNEF financing. Animal disease control and internal disinfestation of ruminants within the framework of the Pan-African vaccination campaign launched by the OAU in 1987 and financed by the EDF, and the Liptako-Gourma Region livestock development programme study financed by the ADF in 1992/1997. 2.8.3 A multiphase programme concerning small-scale irrigation has been implemented in the three countries. The first two phases of the programme amounting to around CFAF 24 billion have been financed by the Kuwaiti Fund, the OPEC Fund, the ADF, the IsDB and BOAD making it possible to drill 322 boreholes, 311 modern wells, install 6 mini-DWS systems, 3 new dams, rehabilitate 8 dams and develop 14 ponds and 500 ha of land. The second phase is ongoing in Niger and will make it possible to drill 200 boreholes, 15 small-DWS systems and rehabilitate 100 wells. The third phase has just started in Burkina-Faso and will see the implementation of irrigation schemes (construction of 4 dams and irrigation works on 145 ha) amounting to CFAF 4.59 billion with BOAD financing.

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2.8.4 Concerning the renewable energy sub-sector, photovoltaic equipment has been used in several operations launched by ALG although the effort is still timid. Thus, 5% to 10% of the boreholes of water resources programmes have been equipped with photovoltaic pumping systems. Similarly, in the telecommunications project, the radio relay system is powered with solar panels. Lastly, for the health infrastructure strengthening programme, photovoltaic energy production systems have been associated to the diesel generator sets that equip the medical centres. These small local projects have a direct impact on the populations concerned. 2.8.5 Within the framework of its mission, ALG has formulated a programme to open up the region which is being implemented gradually in concert with member states and in line with the resources mobilised. One of the key priorities concerns the development and modernisation of the Inter-state road network. The road infrastructure programme distinguishes between two categories of roads: the main roads and the secondary roads. The programme to develop the main Inter-state roads is well underway to transform the paved roads to comply with international standards. Secondary Inter-state roads are virtually inexistent. Indeed, the secondary road network has earth roads impassable during the rainy season; in the dry season there are numerous sandy or deep passages on which special vehicles must be used. Some links are merely cattle passages. An express identification has made it possible to select a secondary road network that should link all geographic areas with development potential as shown by an economic study of the region, and to open up these areas with links to the main roads. This network makes up ALG’s Inter-state priority secondary road development programme. For the design and maintenance of rural roads, national strategies have been fashioned and a road maintenance fund established. Its resources, often below requirements, are derived from budget allocations and/or road users’ fees. 2.8.6 ALG’s retrospective operations given as Annex 6, total CFAF 122.7 billion. According to the list, rural development is the sector to have benefited most with CFAF 46.5 billion, followed by the transport sector with CFAF 42.7 billion and health CFAF 19.4 billion. In other words, ALG takes active part in poverty reduction, opening up the Liptako-Gourma Region and contributing to the integration of the three countries, through the road and telecommunications project. 2.8.7 The ADB Group has approved 10 development operations. The health sector has benefited from 4 operations (2 studies and 2 projects). It is followed by the rural development sector which has benefited from 2 studies and a project, the transport sector which has received two studies and a telecommunications project. The latter has helped to link the three ALG member countries. The Bank’s intervention in the transport sector has contributed to opening up the ALG zone. All these operations have been completed with the exception of the transport study (Dori-Tera road) which was approved in 2003. The other nine operations were approved before 1999. The amount for Bank operations stand at CFAF 31.11 billion (Annex.7). Despite the implementation delays of some projects, all have been implemented and progressing normally. Their main objectives have been reached and they have direct positive effects on the populations concerned (drinking water, health centres, irrigation schemes). 2.8.8 For these operations, ALG contributed efficiently either in the search of funds, in the formulation of the projects’ terms of reference or with the organisation Donor Round Tables. In addition, it fielded monitoring-evaluation missions during project implementation despite the shortage of technical and human means. For Bank-financed operations, ALG often played satisfactorily, the role of executing agency as was the case of the feasibility study for the Dori-Tera -Niamey road in 1980, the first telecommunications programme approved in 1986, the livestock development study in 1989 and currently the detailed sketches for the development of the Dori-Tera (Burkina-Faso and Niger) road approved in July 2003.

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2.9 Development Prospects 2.9.1 ALG’s portfolio accounts for 19 studies and 22 projects or 41 operations broken down as follows: 19 operations in the transport sector, 11 operations in the rural development sector, 5 operations the mines, industry and energy sectors, 3 in the social sector, 2 institutional support operations and 1 in the telecommunications sector. These operations were submitted to and discussed by donors present at the Round Table of March 2003. During the meeting, several pledges were made and interest shown in these operations. The studies are either ongoing or completed and the financing plan of certain projects settled. The cost estimate of projects included in the 2004-2006 TIP amounts to CFAF 546.8 billion. Pledges amount to CFAF 225.3 billion or 41.17%. Of that sum, CFAF 108.6 billion or 48.20% will be invested into the communications sector (roads and telecommunications). The energy sector will receive CFAF 100 billion or 44.38%; the water resources and environment sectors CFAF 7.1 billion or 3.15% and CFAF 9.5 billion or 4.22%, respectively. Furthermore, CFAF 32 billion or 5.86% has been earmarked for the mixed farming sector (Annex 7). 2.9.2 Water resources and energy are strategic sectors for ALG, as the significant investment planned for these sectors in the short and medium terms testify. Indeed, the investment portion projected for these sectors stand at CFAF 316 billion or 54.6% of the 2004-2006 TIP and represents mainly funds for the Taoussa hydroelectric dam in Mali and Kandadji in Niger projects. It is fitting to mention that of the pledges made for the 2004-2006 TIP operations, CFAF 225 billion will be invested in the water resources and energy sectors. These projects and programmes of the water and energy sectors of the TIP, include the Timbuktu-Gaya river reach development programme, the projects underway such as the water resources projects in Niger and Burkina and the projects being prepared of which in particular, the 2nd water resources programme in Mali, the Middle Niger catchment basin protection and development project, the evaluation of the underground water resources of the Liptako-Gourma Region, the regional programme for the mobilisation of surface waters and irrigation and lastly the renewable energy promotion project in the Liptako-Gourma Region. 2.9.3 Additionally, within the framework of the water initiative, the Bank has undertaken to prepare an important drinking water supply and sanitation programme in the three ALG member countries with the prospect of meeting in the long term the drinking water and sanitation needs of the rural populations so as to help improve their socio-economic conditions. This programme does not take into account the requirements of the mixed farming sector and in particular stock watering; ALG plans to design a project in that sector. This project will supplement the actions of the water initiative in the region and improve the sustainability of the programme. Currently, master plan and rural electrification studies with a renewable energy component are ongoing in the three countries with ADF financing. These studies should lead to national rural electrification programmes. Implementation of the Bank’s programme of water supply and future development of renewable energies will be based on the ALG’s experience in the region. This is what justifies the use of technical assistance in the water resources, mixed farming and renewable energy areas scheduled under this project. Finally, ALG has prepared a programme to open up the region which is being implemented gradually in concert with member states and in line with the resources mobilised. One of the major priorities concerns the development and modernisation of the Inter-state road network. The road infrastructure programme makes a distinction between two types of roads: the main and secondary roads. 2.9.4 Firm financing commitments include external resources to the tune of CFAF 180.9 billion or 80.30% and CFAF 44.4 billion or 19.70% of internal resources. External resources were received from various multilateral and bilateral donors. Out of the CFAF 180.9 billion of external financial announced, CFAF 70.2 billion or 38.82% will be obtained in the form of subsidies and

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CFAF 110.7 billion or 61.18% in the form of loans. The investment breakdown per country is as follows: CFAF 37 billion or 20.94% to Burkina, CFAF 90.8 billion or 50.16% to Mali, CFAF 51.3 billion or 28.85% to Niger, CFAF 85 million or 0.05% in the form of institutional support to ALG. CFAF 322 billion representing 58.83% of the amount in the TIP is to be sought. 2.9.5 This ambitious provisional programme requires that ALG’s capacity in terms of staff and expertise be built. The implementation of these operations depends primarily on the reaction of donors and ALG’s performance in mobilising resources. In addition, it is ALG’s duty to regularly report on the results obtained by member states. 2.10 ALG’s Constraints 2.10.1 The constraints weighing down on ALG are structural and cyclical. The Liptako-Gourma Region like its member countries is faced with new challenges to reduce poverty and ensure sustainable development in an environment of profound change. Structural transformations demand the adoption of a development approach based on a keener insight into the development constraints and possibilities of the various economic sectors and a better coordination of the different players. This approach must be consistent with the economic reform programmes underway in all three countries, dictated by the demands of liberalising their respective economies and their integration into the sub-regional and international environment. 2.10.2 Of the major constraints, mention can be made of inadequate working equipment, poor means of information; inexistence of a plan to upgrade professional staff and lack of expertise in certain activity sectors. Indeed, although ALG has its large headquarters building built with a grant from the People’s Republic of China, an undeniably major achievement for the Institution, it is fitting to stress that ALG moved into the new building with the old office equipment and furniture, the most recent of which were acquired in the 80s. The Institution’s limited means have not made it possible to renew office equipment and furniture, most of which are obsolete. Technical systems no longer comply with safety standards applicable to persons and goods. ALG’s information technology and office equipment are outdated and/or lacking, and as such are obstacles to ALG’s performance in the conduct of its mission. This project will replace part of this equipment in order to provide staff with better working conditions and enable ALG attain the objectives of its mission. 2.10.3 Moreover, in the implementation of its various operations, ALG boasts a considerable amount of data on the region which must however be organised. The assistance of an IT expert specialised in GIS will be necessary. Through this assistance, ALG will acquire a highly effective tool for an efficient and modern management of information. If ALG is to be made more operational it is indispensable to strengthen its human resources. 2.10.4 ALG only has a limited number of staff to carry out its duties. Several sensitive positions in the environment and fisheries and the legal affairs and disputes divisions are still vacant. Technical assistance in the Organisation’s core areas of intervention is therefore a must and will enable its professionals to benefit from the experience of these experts in preparing and finalising project documents to be submitted for external financing. 3 THE PROJECT 3.1 Project Design and Rationale 3.1.1 ALG’s development programme and strategy is justifiable especially as the current approach to development prioritises the formation of regional economic blocks. As a regional

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organisation, the framework for ALG’s operations is based on a schedule and content decided on the initiative of the three states in order to take hold of the destiny of this common region. 3.1.2 The project is the result of a diagnosis of needs expressed by ALG, discussions with other development partners and the review of their respective contributions in an endeavour to solve ALG’s institutional capacity problems. The project’s rationality lies also in the need for the Bank and other donors to help ALG finalise its poverty reduction strategy. To that end, ALG must dispose of an adequate framework and working tools to create the conditions propitious to a harmonious development of the sectors selected while ensuring the effective participation of the private sector. These provisions have been discussed and approved by the donors during the review of ALG’s priority programme on the occasion of the deliberations of the Round Table held in March 2003. Achieving a shared development, fruit of economic integration, is the surest means of stability, security and prosperity in the Liptako-Gourma Region. It in that context and given the urgency of this support that the Bank has included the project in its 2004 lending programme. 3.1.3 The project’s implementation should enable ALG to be more in a position to conduct the mission it was entrusted namely the integrated development of the Liptako-Gourma Region. Given ALG’s poor technical capacity to fully understand development statistics and the impact of its interventions in the region, coordinate various interventions in the region, ensure and implement the important programmes and projects of the TIP, ALG has set out in the terms and reference submitted to the Bank, its technical and human capacity building requirements, hence the needs of its operational capacity. 3.1.4 The project is part of ALG’s priority programme. It is in keeping with the strategic context of the Poverty Reduction Strategy Papers (PRSP) of the three member countries for which poverty reduction for a better well-being is the objective of the governmental strategies. During the last Round Table organised by ALG, donors insisted on the need for institution building with a view to improving ALG’s project management performance. The Bank’s intervention is set in that context. It aims in addition, through ALG’s technical capacity building, to modernise certain working and management instruments for the Region’s development programme. The areas targeted concern the coordination, production and dissemination of socio-economic information as well as monitoring-evaluation of operations. 3.2 Project Location 3.2.1 The project’s implementation will cover the zone within the strict limits of the Liptako-Gourma Region. Most of the project components will be implemented at ALG’s headquarters in Ouagadougou. Some information technology equipment will be installed in the premises of the officers of the national project monitoring committees. 3.3 Strategic Context of Project 3.3.1 The project is in line with the economic integration strategy of the WAEMU and ECOWAS member states. It is also in keeping with NEPAD’s policy which aims at eradicating poverty and placing African economies on the path to sustainable growth and development using the participatory and partnership approach. 3.3.2 To better plan and monitor activities, a databank will have to be set up. Without reliable statistics on the various sectors of activities project formulation is difficult. The databank will make it possible to collect at all times, both within and outside the Liptako-Gourma Region any information judged useful on the trend of the commodity markets, as well as economic and social data; to centralise data and economic statistics and information provided by member states and any

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other appropriate structure; it will also be possible to exploit and draw lessons from such data, carry out social and economic reviews of the sub-region and identify and address the region’s inter-sectoral and spatial differences. 3.3.3 The current context of State divestiture, decentralisation and accountability of local communities, dictates greater involvement of the populations in the development process. The focus will be on involvement of the populations in the formulation and implementation of operations in concert with the other players (states, IGOs, NGOs, associations…); sensitisation of ALG member states to the contribution of counterpart funds and recurrent project expenses; and assistance towards the emergence of socio-professional associations capable of taking responsibility for promoting their activities. 3.3.4 This project falls within the general framework of regional economic integration and poverty reduction implemented in all three countries and consistent with the Bank Group’s policy in these areas. ALG’s active part will be the dynamics for the economic and social development of the entire region and will lead to an improvement in the living conditions of the peoples concerned. This institutional support is in line with ALG’s strategy the objective of which is to heighten cooperation and regional integration in the ALG member countries. Bank Group Strategy 3.3.5 The project is consistent with the Bank’s policy to provide well-targeted institutional support which, combined with the support of other development partners, will contribute to improving economic decision-taking, promote good governance and poverty reduction. Lastly, the project falls into the framework of Bank operational strategy in countries of the sub-region, as defined in the 2002-2003 CSP (updated in 2004) which focuses on the following areas of concentration: i) institution building; and ii) support to the rehabilitation and development of social and economic infrastructure. Lastly, the project is in keeping with the Bank’s good governance policy. In that regard, the Bank’s intervention complies with ALG’s main strategic objectives, particularly those pertaining to effective macroeconomic and sectoral management and the need to foster sustainable development, potential engine of economic growth. Moreover, the project is highly consistent with the structural reforms embarked on in these countries and which have the backing of donors, especially those relative to institution building of the administration and human resources development. Interventions of the Main Donors 3.3.6 The interventions of the other development partners have been taken into account for greater synergy of actions. When ALG was established, it received institutional support not only from ABEDA, IDB and the ADB Group, the United Nations system provided ALG with all the necessary assistance. Thus, alongside support from the ECA, other United Nations agencies (UNDP, UNEP, UNSO, WHO, UNICEF, ITU, FAO) have contributed each in its own field to the development of ALG’s activities. The various studies carried out under the supervision of ALG have for the most part led to concrete actions (roads, telecommunications, training…). Performance of Similar Operations 3.3.7 In February 2002, ALG obtained from ABEDA, financing for institutional support, with the recruitment for 18 months of an economist specialised in rural development. The objective targeted was in particular to help upgrade the capacity of ALG’s professional staff to identify appraise and monitor projects in the fields of agriculture, livestock, environment and fisheries and enable a gradual transfer of knowledge and experience from the technical assistant to the

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counterpart assigned by ALG. The objective was also to help strengthen the ties of cooperation between ALG and the financing institutions especially the Arab Fund, and lastly give advice on the training of ALG professional staff in the use of computers and specialised software. At the end of the period of technical assistance in February 2004, it was concluded that although the overall objectives had been met and the transfer of knowledge to the professionals of this sector real, there were still requirements in the areas of rural development project analysis, planning, identification and preparation. The mixed farming specialist to be recruited under this project will enhance these achievements and bridge the gap. 3.3.8 In the context of its cooperation with IBD, ALG obtained institutional support when three specialists were assigned for a six month period in 2002. The purpose of the project was to provide on-the-job training for ALG professionals in the fields of project management and monitoring-evaluation, computerisation, financing and document review. The IBD experts were faced mainly with the lack of teaching equipment as ALG does not have adequate information technology equipment. 3.3.9 Concerning the participation of the ADB Group, the officer in charge of the BCEP was trained in Bank rules of procedure but today it would be wise to organise retraining courses when the project is launched and extend the courses to other modules such as the “Costab” and all other members of the project implementation unit. Concurrently, ALG should take part in the training seminars that the ADB organises in member states. 3.4 Project Objectives 3.4.1 The project’s sectoral objective to help put in place development plans and programmes in the water resources, energy and transport sectors of the Liptako-Gourma Region with a view to reducing poverty in the region. Its specific objective is to build ALG’s human and technical capacity so as to improve its performance in the project cycle activities and enable it to attain the objectives that it was set for the economic and social development and better living conditions of the region. 3.5 Project Description 3.5.1 Provision has been made under the project to: i) provide ALG with five technical assistants in the fields of water resources, renewable energy, earth roads, mixed farming and the Geographic Information System; ii ) technical capacity building with the procurement of equipment and extension of the information technology network; procurement of technical and office equipment; rehabilitation and strengthening of technical systems (electric, computer, security), rehabilitation and strengthening of the documentation centre and training of professional staff; iii) building human resource capacity with the implementation of the staff training programme. The project components are:

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A) Technical assistance; B) Strengthening of technical equipment; C) Training programme; and D) Project coordination and management. A) Technical Assistance 3.5.2 The five experts to be recruited under the project will carry out their tasks in close collaboration with their counterparts so as to encourage a transfer of skills and technology. These experts will be put at ALG’s disposal by a consulting firm. The objective being to share their experience in organisation and method, provide staff with further training, share their experiences in preparing requests for financing from donors and assisting the ALG professionals to implement the projects in its portfolio. These experts will help ALG fine-tune the development programmes of the afore-mentioned sectors in the Liptako-Gourma Region, draw a plan for training and further training of their counterparts and the other ALG professionals. The general terms of reference of the technical assistants are given as Annex 8. 3.5.3 The Water Resources Expert recruited for 18 months, s/he will be required to make a diagnosis of the water resources in the Liptako-Gourma Region, and assist the ALG professional staff in identifying, appraising and monitoring water projects. In identifying water projects, focus will be put on rural and stockbreeding areas as well as on water supply in semi-urban areas. These identification documents will be prepared and accordingly adapted in collaboration with the national services. The specialist will share his experience in preparing financing requests to donors and help ALG staff advance ongoing projects. The water resources specialist will have top level qualification, at least ten years experience in projects and water tapping, building of earth dams and water project analysis. S/he must be computer literate with solid references in databank and GIS design. The priority documents are those on the regional surface water mobilisation and irrigation programme, the assessment of underground water resources in the Liptako-Gourma Region; the establishment of a computerised databank and GIS for water resources in collaboration with the databank and GIS design specialist. 3.5.4 The Renewable Energy Expert, recruited for 18 months, s/he will be expected to make a diagnosis of energy in the Liptako-Gourma Region. S/he will be assisted by professionals of ALG in the identification, appraisal and monitoring of renewable energy projects. The process of identification should lead to the preparation of an integrated energy programme based on the principle that energy issues are cross-cutting and involve all sectors. The identification documents will be prepared and accordingly adapted in collaboration with the national services of the ALG member countries. The renewable energy specialist should be highly qualified with at least ten years experience in the design and implementation of solar energy operations and be computer literate. 3.5.5 The Mixed Farming Expert will be recruited for 12 months and commissioned to write, in collaboration with other specialists, the procedures for identifying, preparing, appraising and monitoring projects (technical aspects). S/he will be expected to draft organisation, management and strategic procedures for the internal diagnosis of operations, and procedures for the formulation of rehabilitation and restructuring plans. S/he will recommend technical studies and define a programme for project promotion bearing in mind mixed farming priorities. S/he will also be responsible for rehabilitating, restructuring, identifying, preparing and appraising projects in close collaboration with the ALG’s professional staff and other experts. S/he will train ALG professionals on the job in the conduct of studies and implementation of priority operations. The mixed farming specialist should be highly qualified with at least ten years experience in mixed farming in the Sahel and the ability to design development operations.

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3.5.6 The Rural Transport Expert, will be recruited for 18 months to help ALG: (i) identify and establish in electronic form, a network of earth roads distinguishing between inter-state rural road links from national networks; (ii) identify the intermediate means of transport used in the area and the capacity for manufacturing them; (iii) analyse the national strategies for designing, financing and maintaining earth roads and proposing a regional strategy for earth road links; (iv) collect important technical and socio-economic data especially on the populations served, the technical specifications of the earth roads, the traffic and the economic activities and potential of each earth road; (v) propose the harmonisation of technical and geometric specifications of the earth roads depending on traffic and availability of materials; (vi) assist in the preparation of TORs for all studies needed to facilitate the mobilisation of funds for earth road link maintenance and construction works; (vii) define a mechanism with the other Regional Organisations, the WAEMU Commission in particular, with which ALG signed a cooperation agreement; and (viii) collect all data necessary for a good knowledge of the transport system in the area. The rural transport specialist will be a civil engineer with knowledge of transport economy and at least ten years of experience in rural transport. 3.5.7 The Information Technology Expert Specialised in GIS will be recruited for 12 months to design databank and geographic information systems. S/he will be expected to prepare and introduce a databank and geographic information system. To that end, in collaboration with the other experts and counterparts of ALG, s/he will prepare a conceptual data model for the GIS that is being designed, will then input the data available following validation of the conceptual data model. The data will be constantly updated by ALG’s specialists and national committees following periodic surveys. The data will be used by ALG professionals and put at the disposal of member states. S/he will prepare thematic maps for input in the GIS, as well as train counterparts. The data bank and GIS design expert should be highly qualified with at least ten years experience in the design of databank and GIS systems. In collaboration with the other experts s/he will introduce an economic benefits assessment model for rural development projects seen from the vantage point of the community. 3.5.8 Water resources, energy, mixed farming and earth roads are strategic sectors for ALG, as testify the size of the investments projected in the short and medium terms on the one hand, and the pressing needs of the underprivileged population of this region, on the other. ALG’s staffing and current skills level do not make it possible to effectively develop the above-mentioned sectors. The technical assistance required under the project, like the support from ABEDA in the rural development sector will help address in part this inadequacy. Moreover, in implementing its various operations, ALG disposes of a huge mass of data on the Liptako-Gourma Region which needs to be organised for optimum utilisation and effective and modern management of this information. The assistance of an information technology expert specialised in GIS is thus indispensable. B) Strengthening of Technical Equipment 3.5.9 With the planned recruitment and assistance drive, additional offices will have to be equipped for optimum operation. Likewise, the documentation room will have to be revamped for a well thought-out classification of documents and data. It remains understood that depending on the scope of ALG’s activities, some equipment elements could be added for a better quality and enhancement of the working environment. In addition, the equipment items considered in the reports remain standard models. Information Technology Equipment and Office Material

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3.5.10 Funds provided by IBD made the ongoing installation of the local Intranet/Internet network possible albeit only for the first floor of the headquarters building. Project completion is scheduled for September 2004. Under this project the network will be extended to the ground floor which will be equipped to enable ALG to create a Website. 3.5.11 The information technology and office equipment to be procured under this project will supplement those procured under previous support operations. They concern the supply and installation of desktop computers, laptop computers, printers at the ALG headquarters and in the national branch offices. The project will also make provision for production and office scanners, photocopiers and video-projectors for technical meetings and for the training sessions. Strengthening Technical Installations at the ALG Headquarters 3.5.12 This component concerns primarily the rehabilitation and strengthening of ALG’s technical systems and equipment. In particular, a new automatic telephone switchboard will be procured and installed and so will the Geographic Information System (GIS) comprising a powerful computer, a plotting board and a table to be digitalised with a geographic positioning system (GPS). 3.5.13 The electric system must be renovated taking into account the information technology equipment which requires a regulated supply, and measures for the protection of persons and goods. In order to prevent and safeguard the information technology equipment from power outages on Ouagadougou’s electricity supply system, provision has been made for the purchase and installation of a voltage stabiliser and for an uninterruptible power system in the headquarters. 3.5.14 The telephone switchboard is old and its maintenance costly. ALG’s current communication system which is obsolete does not allow for efficient internal or external calls. The telephone switchboard will be modernised in light of the possibilities offered by new communication technologies. Renovation of the air-conditioning system will entail procurement and installation of new air conditioners and maintenance of the existing equipment. Strengthening the fire safety mechanism will mean in particular, renewing the ten extinguishers and rehabilitating part of the piping and water jets. The National Fire Brigade will train a number of ALG staff in fire safety and panic control. C) Staff Training Programme 3.5.15 Training planned under this project will have two components: i) on-the-job training of counterparts by the technical assistants; and ii) training by specialised national and sub-regional institutions following the training modules identified by the human resource department for each employee category. All training courses will be given at ALG’s headquarters by local or regional vocational training institutes and ALG will be responsible for the material organisation. Without an Internet network or Website, communication with partners is by post which is costly and time-consuming. Members of the national monitoring committees also lack training and should be asked to attend the training programmes launched within ALG, in order to improve their knowledge for a satisfactory conduct of their activities. 3.5.16 The five experts will establish and implement a training and skills transfer programme for the benefit of counterparts. These courses will be part of the training programme planned under this project. The experts will organise seminars for ALG’s staff and go on field missions. They will be expected to submit an end-of-mission report on the accomplishment of the duties assigned, giving recommendations and how to apply them.

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3.5.17 The following training modules have been identified: i) management: corporate culture, administrative and financial management, internal audit, human resources management, retraining in the social, legal and insurance fields, project monitoring/evaluation, communications, public relations and secretarial functions, knowledge and command of SYSCOA); ii) information technology: use of software Office Windows, Internet Access, creation, utilisation of databanks, software installation; iii) specialised training: use of the GIS for the environment, natural resource management and urban management, equipment engineering, socio-cultural aspects, databank utilisation, rural development project formulation, management of drinking water supply systems in suburban areas and in small centres, data collection and processing, project preparation and monitoring, regional development and economic integration. Prior approval by the ADF of the training programmes is a grant condition. D) Project Coordination and Management 3.5.18 The project implementation unit will monitor the services to be provided. Throughout the project, members of the unit as well as the counterparts will be paid a monthly allowance. In addition, the unit will also be provided with various operating expenses. Validation and Sensitisation Seminars 3.5.19 At the end of their services, the technical assistants will organise and moderate, under the supervision of ALG, four consultation and validation seminars on the results of their works in each of the member countries and a wrap-up meeting at the ALG headquarters. For the occasion, they will present the priority programmes and projects selected, the various stages of development planned for the region, the institutional outline as well as their conclusions and recommendations. Representatives from the countries and ALG, local authorities, elected officials and dignitaries, representatives of cooperatives, local associations, the other IGOs and NGOs of the three member countries and women’s associations will take part in these seminars. The technical assistants will help ALG organise and facilitate Donor Round Tables with a view to mobilising funds for the programme’s priority projects. They will explain during such meetings, the options chosen and the stages of ALG’s development programme. 3.6 Project Costs 3.6.1 Total project cost net of taxes and custom duties is estimated at UA 1.69 million including UA 1.20 million in foreign exchange and UA 0.48 million in local currency. These costs include a 5% provision for technical and physical contingencies and 3% per annum for price escalation of the foreign exchange and local currency costs. The project’s costs by component and by expenditure category are shown in tables 6.1 and 6.2 below. The project’s detailed cost is given as Annex 4 (list of goods and services).

Table 6.1 Summary of Project Cost Estimate by Component

In CFAF million In UA million. N° Components F.E. L.C. Total F.E. L.C. Total % in F.E.

A Technical assistance 646,520 161,630 808,150 0.81 0.20 1.02 60.31B Strengthening technical equipment 225,600 56,400 282,000 0.28 0.07 0.36 21.04C Training programmes 14,000 56,000 70,000 0.02 0.07 0.09 5.22D Project coordination and

management - 80,625 80,625 - 0.10 0.10 6.02

Base Cost 886,120 354,655 1,240,775 1.12 0.45 1.56 92.59 Physical contingencies (5%) 44,306 17,733 62,039 0.06 0.02 0.08 4.63 Price escalation - 3% per annum 26,584 10,640 37,223 0.03 0.01 0.05 2.78 Total Project Cost 957,010 383,027 1,340,037 1.20 0.48 1.69 100.00 Percentage (%) 71.42 28.58 100.00 71.42 28.58 100.00

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Table 6.2 Summary of Project Cost by Expenditure Category

In CFAF million In UA million N° Expenditure Category F.E. L.C. Total F.E. L.C. Total % in F.E.

1. Goods (Supplies and equipment) 225,600 56,400 282,000 0.28 0.07 0.36 21.042. Services (TA, Audit, Training) 660,520 232,630 893,150 0.83 0.29 1.12 66.653. Miscellaneous - 65,625 65,625 - 0.08 0.08 4.90

Base Cost 886,120 354,655 1,240,775 1.12 0.45 1.56 92.59 Physical Contingencies (5%) 44,306 17,733 62,039 0.06 0.02 0.08 4.63 Price escalation 3% per annum 26,584 10,640 37,223 0.03 0.01 0.05 2.78 Total Project Cost 957,010 383,027 1,340,037 1.20 0.48 1.69 100.00 Percentage (%) 71.42 28.58 100.00 71.42 28.58 100.00

3.7 Financing Plan and Expenditure Schedule Financing Plan 3.7.1 The project will be financed by the ADF, ALG and three member states in accordance with the financing plan of table 6.3. The ADF grant of UA 1.59 million will cover 94.13% of the project’s cost and finance all foreign exchange costs and 79.16% of the entire local currency cost for technical assistance, the procurement and installation of information technology, office and implementation unit equipment. ALG will defray UA 0.03 million or 1.84% of the project’s total cost comprising part of the expenses for technical assistance, training and project coordination. The three states equally will take part in the financing of the technical equipment to the tune of UA 0.07 million or 4.03% of the project’s total cost (UA 0.03 million per country). ALG’s share as that of the three states will be paid into an account opened for that purpose in a commercial bank, as a grant condition. ALG will provide the Bank with evidence that member states have undertaken to earmark in their respective budgets their share in this project.

Table 6.3 Financing Plan by Source

(in UA million) Sources F.E. L.C. Total %

ADF 1.20 0.39 1.59 94.13 ALG - 0.03 0.03 1.84 Governments - 0.07 0.07 4.03 Total 1.20 0.49 1.69 100.00

Percentage (%) 71.42 28.58 100.00

Table 6.4 Financing Plan by Expenditure Category

(in UA million) N° Expenditure Category ADF ALG GVT Total %

1. Goods (Supplies and equipment) 0.32 0.07 0.39 22.73 2. Services (Technical assistance, audit, training) 1.20 0.01 1.21 71.98 3. Miscellaneous 0.07 0.02 0.09 5.29

Total Project Cost 1.59 0.03 0.07 1.69 100.00 Percentage (%) 93.93 1.55 4.03 100.00

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Expenditure Schedule 3.7.2 The expenditure schedules established on the basis of the cost estimates and works implementation schedule are as follows:

Table 6.5 Expenditure Schedule by Component

(in UA million) N° Component 2005 2006 2007 Total % A Technical assistance 0.18 0.73 0.18 1.10 65.13 B Strengthening of technical equipment 0.27 0.12 - 0.38 22.73 C Training programmes 0.04 0.03 0.03 0.10 5.64 D Project coordination and management 0.04 0.04 0.04 0.11 6.50 Total project cost 0.53 0.91 0.25 1.69 100.00 Percentage (%) 31.19 54.12 14.69 100.00

Table 6.6

Expenditure Schedule by Expenditure Category (in UA million)

N° Expenditure Category 2 005 2 006 2 007 Total % 1. Goods (supplies and equipments) 0.12 0.21 0.06 0.38 22.73 2. Services (TA, Audit, Training) 0.38 0.66 0.18 1.21 71.98 3. Miscellaneous 0.03 0.05 0.01 0.09 5.29 Total Project Cost 0.53 0.91 0.25 1.69 100.00 Percentage (%) 31.19 54.12 14.69 100.00

Table 6.7

Expenditure Schedule by Financing Source (in UA million)

N° Financing source 2005 2006 2007 Total % 1 ADF 0.50 0.86 0.23 1.59 94.13 2 ALG 0.01 0.02 0.00 0.03 1.84 3 Gvts 0.02 0.04 0.01 0.07 4.03 Total project cost 0.53 0.91 0.25 1.69 100.00 Percentage (%) 31.19 54.12 14.69 100.00

4 PROJECT IMPLEMENTATION 4.1 Executing Agency 4.1.1 ALG is the project’s executing agency. It has a long experience in the implementation of studies and works during which its professional staff has acquired the required skills to implement a project such as the one proposed here. Its experience with the Bank in particular covers both studies and works. 4.2 Institutional Arrangements 4.2.1 ALG will set up an implementation unit which will be required to prepare documents concerning the recruitment of technical assistants and procurement of equipment and consultancy services, as well as monitor and coordinate all project activities. Evidence of the creation of this unit is a grant condition. 4.2.2 The implementation unit will regularly monitor project activities, manage various contracts and liaise between technical assistants and all the public structures and services concerned by the project. The Unit will have at its disposal the technical and management means to address all project and technical management issues as well as those pertaining to the project’s financial

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management. It will comprise a project coordinator, an accountant and a secretary all three ALG staff members appointed by the Director General. 4.2.3 The Head of the Central Studies and Projects Office who has acquired a wide experience in project monitoring and has already been trained in Bank rules of procedure was identified and evaluated satisfactorily for the position of implementation unit coordinator during appraisal of the project. He will be responsible for the project’s technical and financial implementation. Similarly, the Director of the DAAF whose experience is long can satisfactorily play the role of accountant of the project implementation unit. For the technical aspects, the project implementation unit will call upon ALG’s existing expertise. The appointment of members of the project implementation unit is a grant condition. 4.3 Implementation and Supervision Schedules 4.3.1 Project implementation will span 24 months beginning with the services of the technical assistants. The project’s detailed implementation schedule is summarised in table 7.1 and given as Annex.3. Equipment will be delivered and commissioned as and when they are installed before project completion. Various goods for the implementation unit will be procured as of entry into force of the grant. Project completion is scheduled for July 2007.

Table 7.1 Project Implementation Schedule

N° Activities Responsibility/Actions Date 1. Board approval ADF December 20042. General information notice ADF/ALG December 20043. Signing and entry into force of Grant Protocol Agreement ALG/ADF January 20054. Launching of project ADF January 20055. Fulfilment of conditions of first disbursement ALG/ADF February 2005 Technical assistance and training 6. Preparation of invitation letters ALG/ADF January 20057. Launching of bids ALG/ADF February 20058. Functions and signing of contract ALG/ADF/Experts April 20059. Beginning of services of technical assistants ALG/ADF/Experts May 200510. Start of training programmes ALG/ADF/ May 200511. End of training programmes ALG/ADF/ November 200612. End of technical assistants services ALG/ADF/Experts November 2006 Goods and services 13. Preparation of invitation letters ALG/ADF January 200514. Launching of bids ALG/ADF February 200515. Functions and signing of contracts ALG/ADF/Suppliers March 200516. Start pf deliveries and installation ALG/ Suppliers July 200517. End of deliveries and installation ALG/ Suppliers September 2005 Audit of Project Accounts 18. Preparation of TORs ALG/ADF June200519. Launching of bids ALG/ADF July 200520. Functions and contract signing ALG/ADF/Consultant September 200521. End of audit services ALG/ADF/Consultant December 200622. Project completion report ALG/ADF July 2007

4.3.2 The Bank will organise regular supervision missions to the field, following the launching mission as indicated in table 7.2 below; two supervision missions per year have been planned in order to ensure proper project implementation.

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Table 7.2: Provisional Supervision Schedule

Date Activity Composition of Mission Duration/ person/days

1st quarter 2005 Launching Project officer Procurement officer 20

3rd quarter 2005 Supervision Project officer 10

2nd quarter 2006 Midterm review Project officer Financial analyst 30

1st quarter 2007 Supervision Project officer 10

4th quarter 2007 Completion report Project officer Financial analyst 30

Total 100

4.4 Procurement Arrangements 4.4.1 Procurement arrangements are summarised in table 7.3 below. All Bank-financed goods and services will be procured in compliance with Bank rules of procedure for the procurement of goods and services or as the case may be, the rules of procedure for the use of consultants, using the appropriate standard Bank bidding documents.

Table 7.3 Procurement Arrangements

(in UA million)

N° Expenditure Category Component L.R. Other Total

1 Goods Technical, information technology and office equipment 0.38 [0,32] 0.38 [0,32] Technical assistance 1.10 [1,09] 1.10 [1,09] Audit, 0.02 [0,02] 0.02 [0,02] 2 Consultancy

Services Training 0.09 [0,08] 0.09 [0,08]

3 Miscellaneous Project coordination and management and supplies 0.09 [0,08] 0.09 [0,08] 4 Total 1.21 [1,19] 0.47 [0,40] 1.69 [1,59]

Percentage 71.98 28.02 100.00 N.B. Short list (SL.) applies to the use of technical assistants, audit and training; the figures in brackets [ ] concern amounts financed by the ADF. Goods 4.4.2 Information technology and office equipment totalling UA 0.13 million, technical equipment and strengthening of the electric and communications systems amounting to UA 0.25 million will be awarded through national shopping in the three ALG member countries. This procurement method is justified by the fact that there are enough qualified suppliers for competition and the contract amounts are relatively low (not more than UA 50, 000). 4.4.3 Various goods needed for project coordination and management (office supplies, information technology consumables and training expenses) of an overall amount of UA 0.09 million will be procured through national shopping. Services 4.4.4 Consultancy services for technical assistance totalling UA 1.10 million, the services of an external auditor totalling UA 0.02 million as well as services for the training programme amounting to UA 0.09 million will be procured through shopping based on a short list of consulting firms, pursuant to Bank rules of procedure for the use of Consultants. The selection procedure will be based on the combined evaluation of technical offers and amount of the offers, except for the audit exercise in which case selection will be based on the lowest prices for similar services.

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Executing Agency 4.4.5 ALG will be responsible for contract award. It has the capacity, expertise and experience to carry out functions for the procurement of good and services.

General Procurement Notice 4.4.6 The General Procurement Information Notice (GPN), will be adopted with ALG and issued for publication in "Development Business" of the United Nations, in the national press and sent to the official representatives of ADF member countries in the three ALG countries upon approval of the grant proposal by the Board of Directors. Review Procedure 4.4.7 The following documents will be submitted for review and approval by the Bank prior to publication: i) Specific information note on procurement; ii) Short lists of consulting firms and the external auditor; iii) Bidding documents and letters of invitation to consultants; iv) Evaluation reports of bids from enterprises and suppliers, or proposals from consultants, the

external auditor, with recommendations on contract award; and v) Draft contracts if those included in the bidding documents were modified. 4.5 Disbursement Arrangements 4.5.1 The grant will be disbursed over a period not exceeding 24 months starting from the date of first disbursement. Disbursements concerning the procurement and installation of equipment and technical assistance services will be made by direct payments to the contractors. The revolving and reimbursement fund methods will be used. For the implementation unit’s operating expenses, a special account will be opened in a bank acceptable to the ADF and that is a grant condition. 4.6 Monitoring and Evaluation 4.6.1 ALG will submit quarterly progress reports on project implementation. These reports will cover the physical achievement of works, problems encountered and solutions envisaged. The reports will show the project’s disbursement status. ALG will submit to the Bank within six months following project completion, the Borrower’s project completion report. The poverty reduction strategy of the three member countries that are part and parcel of ALG’s programmes will be reviewed during the PRSP monitoring-evaluation missions in all three countries. 4.6.2 A midterm project review has been scheduled for the second semester of 2006 to check whether: i) about 50% of the working programme of the technical assistants has been carried out satisfactorily and the regional programmes for drinking water supply, rural electrification and earth road development in the Liptako-Gourma Region are available; ii) 50% of the training programmes have been implemented, iii) 100% of the information technology and technical equipment have been delivered and installed and the GIS is operational, iv) physical and financial implementation is consistent with 50% of total project cost.

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4.7 Financial and Audit Reports 4.7.1 The system used by ALG up until 31/12/2003 was a simple spreadsheet accounting system. The CDM held end December 2003 noting the delay in the computerisation of the financial management, recommended that ALG adopt the SYSCOA system and computerise management of its accounts. The latter should lead to mandatory keeping of books and other media that will enable the establishment of financial statements in accordance with WAEMU guidelines comprising a balance sheet, a statement of income, the resource application financial table as well as related statements. ALG was assisted by IBD which financed in 2002, the services of a consultant for the design and computerisation of the management system. ALG’s accounts are checked by an auditor from an independent firm in compliance with the provisions in force in the WAEMU member countries. The various reports of the auditor were adopted unconditionally by the Council of Ministers. 4.7.2 ALG will keep separate accounts for the project which will make it possible to identify expenditures according to component, category and financing source. Project accounts will be audited annually by a firm recruited accordingly. The audit will cover ALG’s accounts so as to monitor the financial reform launched in 2004 by ALG. The financial and audit reports will be submitted to ADF in the six months following closure of the accounting period 4.8 Aid Coordination 4.8.1 ALG regularly consults with technical, financial and institutional partners. It has signed cooperation agreements with the following regional institutions: FAGACE, WAEMU; BOAD, CILSS, ABN, OSS, CFC and the World Conservation Union. The purpose of these agreements is coordination for synergy in the actions. ALG maintains relations with the following multilateral donors in view of the financing of development operations: ADB, IBD, ABEDA, UNDP, European Union, FAO and the Kuwaiti Fund. 5 PROJECT SUSTAINABILITY AND RISKS 5.1 Recurrent Expenses 5.1.1 Project implementation will imply recurrent expenses (consumables, supplies, training expenses, etc…) which will be financed in part with the grant during the project implementation period. Operating and maintaining information technology and office equipment will mean recurrent expenses estimated at CFAF 65 million or UA 81 000 per annum, (i.e. 17% of the 2007 operating budget). These expenses will be paid by the ALG budget starting 2008. ALG and member states have undertaken to earmark in the consolidated operating budget as of 2008 adequate resources to enable maintenance of the equipment provided in the context of the project and their renewal in 2007/2008.

5.2 Project Sustainability 5.2.1 Project sustainability taken in the sense of a continuation of activities and its benefits post 2007 is a certainty in the context of this project. Indeed, a major sustainability factor is the integration of ALG’s activities into the activities for monitoring-evaluation the PRSPs of member countries which means that project benefits will go beyond the project’s two year duration to become part of the PRSPs which will be in the years to come the reference framework for development strategies and the lead instrument of cooperation for the three countries.

25

5.2.2 Most of the project-related training will be through a transfer of skills from the technical assistants to the counterparts assigned to them, and through customised workshops and seminars on themes that relate directly to the main objectives of the sectoral programmes. Furthermore, computer training will help increase the productivity of the professional staff in the assisted structures. Through the training component, the project will contribute to improving the human capital for a more efficient role in ALG’s long-term economic development. In addition, ALG’s new working environment, source of motivation, will stimulate and sustain activities designed to produce and disseminate socio-economic information. Besides, the training received by the staff, the continuity of the information technology services and the provision of information technology and office hardware and software should generate considerable productivity gains and improve lastingly, the output of the beneficiary services. 5.3 Main Risks and Mitigating Measures 5.3.1 The project’s main risks are insignificant and concern primarily: i) contributions from member states to the budget; and ii) the difficulty to maintain and renew the information systems after the project phase because of financial constraints. Reservations stem also from the shortage of national specialists, mobility of the staff trained, availability of reliable data as well as social and political stability in the ALG member countries. 5.3.2 The three member states represented in the Council of Ministers meeting on 2 October 2004 in Niamey accepted to jointly finance the institutional support to the tune of CFAF 30 million per state. The CDM has authorised the recruitment of 4 professionals. Nevertheless, ADF maintains the conditionality of this recruitment, and disbursements will be suspended if the condition is not fulfilled in the set timeframe. Regarding staff mobility, it is fitting to underline that the emoluments of ALG professionals are much higher than those applied for the same levels in the three countries. Part of the operating budget is absorbed by the maintenance of premises and old equipment. The rehabilitation of premises and the purchase of equipment will mean savings on the operating budget. 6 PROJECT BENEFITS 6.1 The project will contribute to building ALG’s institutional and human capacity as well as promote good economic governance and poverty reduction. It will also help to restore confidence and attract investors to the Liptako-Gourma Region. 6.2 From the economic standpoint, by building the capacity to coordinate, produce, and disseminate socio-economic information, the project will strengthen the relevance of the options for resource allocation and therefore the basis for ALG’s sector strategy formulation, which will propel development. Accessible and quality economic information will effectively guide the investment intentions of the governments, especially the private sector for the best economic impact. The project will help consolidate ALG and enable it to accomplish the mission it was assigned and play a pivotal role in fostering integration in the WAEMU zone. 6.3 On the social front, the project’s implementation will mean reliable, updated and comprehensive data on the scope of the poverty in the region, particularly on the most vulnerable groups. The programmes devised for the most underprivileged strata of the population will better target the latter. The project’s implementation will thus contribute to the formulation of a policy to control social exclusion, and thereby enable the integration of the categories concerned into the development process.

26

6.4 Impact on Women: by backing the production of reliable, up-to-date socio-economic information for the purposes of development management, the project will enhance knowledge on the gender dimension and thereby encourage gender mainstreaming into the design and implementation of sectoral strategies. 6.5 Impact on Poverty Reduction: the project fits perfectly into the framework of the Poverty Reduction Strategy Paper (PRSP) monitoring adopted by the ALG member states. The actions planned by the project focus on: i) monitoring the PRSP’s implementation; ii) building the capacity for production and dissemination of socio-economic information at national and local levels; iii) improving the realisation of public investment. Once completed, the project will contribute to a better formulation of development policies and investment programmes, and a better assessment of the impact of these policies on poverty reduction. 6.6 Impact on Integration and Regional Cooperation: the project is consistent with the economic integration strategy of the WAEMU and ECOWAS member countries, contributing to the attainment of the objectives of the Common Minimum Statistical Programme, in accordance with the options set out in the Pact of Convergence, Stability, Growth and Solidarity. Moreover, it is in conformity with the NEPAD policy aimed at eradicating poverty and placing the African economies on the road to sustainable growth and development using the participatory and partnership approach. 6.7 Impact on Private Sector Development: the project will help build ALG’s capacity for organisation and coordination of economic and social management. By improving the coordination, production, and dissemination of socio-economic information, the project will contribute to the development of information, useful in economic decision-taking. In addition, such credible and reliable information is a pledge of transparency and mutual trust between ALG, the states and development partners. 6.8 Impact on the Environment: given the elements that make it up which entail fitting out of the computer rooms and documentation centre, the project will have no negative impact on the environment and is therefore classified under the Bank’s category III. 7 CONCLUSION AND RECOMMENDATIONS 7.1 Conclusions 7.1.1 ALG will be meaningfully strong and consistent only if the three countries support the same values while joining forces and strategies while contributing their respective potential. Hence, the need for a common integration policy. An in-depth analysis of the international and socio-economic context of the Liptako-Gourma Region justifies the institutional support that is sought. The general framework and the development problems identified from a review of the trend in the various sectors underscore the preoccupying nature of the socio-economic situation and the growing poverty of the people in the region. Poverty reduction is therefore indispensable as the overall objective of ALG’s strategy. The following specific goals sub-tend this overall objective: food security, environmental protection, disenclavement and social development which is backed by a multisectoral development programme of the Region. 7.1.2 ALG’s General Management is striving to sensitise the international community and mobilise the resources required to promote the Region’s economy towards a sustainable growth for poverty reduction. However, ALG is constrained by poor institutional capacity as a result of staff shortage, old working instruments and lack of continuous staff training at all levels. It is against that backdrop that this project was designed and its implementation will build ALG’s capacity to design and implement

27

medium and long term macro-economic strategies and programmes and operations in the priority sectors. 7.1.3 The project submitted for ADF financing is in keeping with the ALG strategy and Bank Group policies and priorities in the countries concerned, as well as with those of sub-regional integration organisations. The project is justifiable in that it is a priority for building ALG’s technical and human capacity with the purpose of promoting economic and social development in this region common to the three member countries. 7.2 Recommendations and Grant Conditions 7.2.1 In view of the foregoing, it is recommended that an ADF grant of UA 1.59 million be extended to the Liptako-Gourma Authority for the purpose of implementing the project as described in this report. Award of this grant shall be subject to the following conditions: A Conditions Precedent to Entry Into Force of the Grant Protocol Agreement 7.2.2 Entry into force of the grant shall be subject to the signing of the Grant Protocol Agreement by the Donee and the Fund. B Conditions Precedent to First Disbursement 7.2.3 In addition to entry into force of the Grant Protocol Agreement, the first disbursement of the grant shall be subject to fulfilment by the Donee of the following specific conditions: i) Provide the ADF with evidence of the creation of the project implementation unit (4.2.1); ii) Provide the ADF with evidence of the appointment of the members of the project

implementation unit namely: the Head of the Central Studies and Projects Office as Coordinator, and the Director of Administrative and Financial Affairs (DAAF) as Accountant, and a Secretary (§ 4.2.3);

iii) Provide evidence that a special account has been opened in a bank acceptable to the Fund into which part of the ADF grant resources will be paid (§ 4.5.1);

iv) Provide evidence that an account has been opened in a bank acceptable to the Fund into which the contribution of the States and ALG will be paid (§ 3.7.1); and

v) Provide evidence of the undertaking of the ALG member countries to include their share of the project in their respective budgets (§ 3.7.1).

C Other Conditions 7.2.4 ALG shall furthermore : i) Create not later than 31/12/2005, a unit responsible for internal audit attached to the

Director General (§ 2.3.4 and 2.3.9); ii) Assign not later than 31/12/2005 the DAAF exclusively with keeping accounts (§ 2.3.4 and

2.3.9); iii) Recruit before 30/04/2005, an accountant with at least 5 years experience and an officer in

charge of maintaining ALG’s equipment (§ 2.3.5); iv) Fill not later than 30/04/2005, the positions of head of the Division of Environment and

Fisheries, of statistician/economist, legal affairs and disputes, documentation, information and public relations (§ 2.3.2, 2.3.3, 2.3.5, 2.3.6, 2.3.9);

v) Submit to the Fund for approval not later than 30/06/2005 a training programme and schedule provided for by this project (§ 3.5.17); and

vi) Provide evidence not later than 30/06/2005 that the ALG member states have included their share in the project in their respective budgets, (§ 3.7.1).

INTEGRATED DEVELOPMENT AUTHORITY OF THE LIPTAKO-GOURMA REGION INSTITUTIONAL SUPPORT PROJECT

Annex 1 MAP OF LIPTAKO-GOURMA

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GAO

SanBla

DORI

KAYA

Tera

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Dire

Nara

Koro

KitaKati

MANGA

GAOUA

Bilma

KeitaBouza

Goure

DOSSO

KIDAL

Diema MOPTIKAYESNiono

SEGOU

AGADES

TanoutTAHOUAAyorou DakoroIllela

ZINDERMirria

MARADI

Bourem

Menaka

Djenne

Dioila ZINIARE

BANFORA

Arrigui

MadaouaGotheye

Taoussa

Goundam

Ansongo

Kenieba

Kangara

SIKASSO

Kadiolo

DEDOUGOU

FilingueTessaoua

Matameye

Tessalit

YouvarouDouentza

Kolokani

Koutiala

Bougouni

TILLABERIBafoulabe

KOULIKORO

OUAHIGOUHA

TENKODOGO

TOMBOUCTOU

Nianfounke

Labbezanga

Bandiagara

Maine-Soroa

FADA NGOURMA

Birni NkonniDogondoutchi

Anderanboukan

BOBO-DIOULASSO

Gourma Rharous

Tchin Tabaraden

NIAMEY

BAMAKOOUAGADOUGOU

NigerMali

Burkina

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Echelle : 100 0 100 Kilometers

Localités#

Capitale#

Hydrographie

Limites de la Région du Liptako-Gourma

Mali

Niger

Burkina

Légende

This map was provided by the African Development Bank exclusively for the use of the readers of the report to which it is attached. The names used and the borders shown do not imply on the part of the Bank and its members any judgement concerning the legal status of a territory nor any approval or acceptance of these borders.

INTEGRATED DEVELOPMENT AUTHORITY OF THE LIPTAKO-GOURMA REGION INSTITUTIONAL SUPPORT PROJECT

ANNEX 2 ALG ORGANISATION CHART

Department General Management

Infrastructure, Industry and Mines of Rural Development Administrative and Financial

Accountant Central Studies

and Projects Office

DocumentationService

Infrastructure Communication

Water Resources and

Energy

Industry Mines

Livestock Fisheries Social Service

Personnel Accounting

Property Legal and Disputes

Total

Senior Professional Staff 1 (+ 1) 1 - 1(+ 1) 1 1 1 (+ 1) - (+ 1) - Vacant 10

Professionals 1 - - - - - - - 1 - - 2 Employees - - 1 1 1 1 16 1 - 21 Total 3 1 1 3 1 2 2 1 17 2 - 33

(+ 1) Director General and Heads of Departments

Conference of Heads of STate

Council of Ministers

General Management

Private Secretariat Accounts Office

Documentation and Public Relations Central Studies and Projects Office

ADB Institutioonal Support Project Implementation Unit ADB 1 coordinator(engineer)

Department of Infrastructure, Industry, Mines Department of Rural Development Department of Administrative and Financial Affairs

Infrastructure and CommunicationsDivision

Water and Energy Division

Industry and Mines Division

Secretariat

Agriculture and Livestock Division

Environment and Fisheries Division

Secretariat

Human Resources Division

Accounting and Property Division

Legal Affairs and Dispute Division

Secretariat

LIPTAKO-GOURMA AUTHORITY INSTITUTIONAL SUPPORT PROJECT

Annex 3 PROJECT IMPLEMENTATION SCHEDULE

YearMonth 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12T 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

12345678910111213141516171819

Preparation of BidsBid Evaluation

Delivery and Installation of EquipmentTraining Programmes

Services of Auditor

Signing of Grant Agreement and Entry into Force Preparation of Letters of Invitation and Bidding DocumentsShort List of Consultants (Technical Assistants and Auditors)Launching of bids (TA and Procurements)

Bid Evaluation Preparation of BidsFulfilment of Disbursement Conditions

Negotiation and Signing of ContractServices of Technical Assistants

Bank Project Completion Report

2007

ACTIVITIES

2004 2005

ALG Project Completion Report

Launching of Bids (Auditor)

Board Approval

2006

Negotiation and Signing of Audit Contract

LIPTAKO-GOURMA AUTHORITY INSTITUTIONAL SUPPORT PROJECT

Annex 4

LIST OF GOODS AND SERVICES Financing Plan N° COST ITEMS Unit Qty. UP in

CFAF Total

In CFAF Total in UC ADF ALG Gvts

A TECHNICAL ASSISTANCE Fees Water resources specialist P/M 18 9,000,000 162,000,000 203,960 203,960 Renewable energy resources P/M 18 9,000,000 162,000,000 203,960 203,960 Earth roads specialist P/M 18 9,000,000 162,000,000 203,960 203,960 Mixed farming expert P/M 12 9,000,000 108,000,000 135,974 135,974 Data bank and GIS design expert P/M 12 9,000,000 108,000,000 135,974 135,974 Sub-total Fees P/M 54 702,000,000 883,828 883,828 - - Travel-logistics International air transport U/V 5 1,250,000 6,250,000 7,869 7,869 Land transport (hire of 2 4x4 veh. For 18 months) U/M 36 2,500,000 90,000,000 113,311 113,311 Duplication expenses FF 1 2,500,000 2,500,000 3,148 3,148 Provision of 5 equipped offices M 18 300,000 5,400,000 6,799 6,799 Communication expenses FF 1 2,000,000 2,000,000 2,518 2,518 Sub-total travel-logistics FF 106,150,000 133,644 121,180 12,464 - Total Technical Assistance 808,150,000 1,017,473 1,005,008 12,464 -

B INFORMATION TECHNOLOGY AND OFFICE EQUIPMENT E

Desktop computers Pc 12 900,000 10,800,000 13,597 13,597 Laptop computers Pc 6 1,200,000 7,200,000 9,065 9,065 Large capacity printer Pc 2 1,250,000 2,500,000 3,148 3,148 Small capacity printer Pc 2 1,000,000 2,000,000 2,518 2,518 Ink jet printers Pc 2 350,000 700,000 881 881 Office scanner Pc 2 250,000 500,000 630 630 Production scanner Pc 1 800,000 800,000 1,007 1,007 Video-projector Pc 2 2,500,000 5,000,000 6,295 6,295 Camcorder Pc 1 2,500,000 2,500,000 3,148 3,148 Large capacity photocopier Pc 1 9,000,000 9,000,000 11,331 11,331 Small capacity photocopier Pc 3 3,500,000 10,500,000 13,220 13,220 IT software and consumables FF 1 25,000,000 25,000,000 31,475 31,475 Sub-total IT and office equipment 76,500,000 96,315 96,315 - -

C TECHNICAL EQUIPMENT Reorganisation of the documentation room FF 1 25,000,000 25,000,000 31,475 31,475 Equipment of 10 offices FF 10 2,500,000 25,000,000 31,475 31,475 SIG and GPS Units FF 1 15,500,000 15,500,000 19,515 19,515 Strengthening the IT and communications systems FF 1 95,000,000 95,000,000 119,606 119,606 Extension of the local Internet/Intranet Network with a Website FF 1 45,000,000 45,000,000 56,656 56,656 Sub-total Technical Equipment 155,500,000 258,727 195,777 - 62,951

D TRAINING PROGRAMME Training at national level FF 1 50,000,000 50,000,000 62,951 55,000 7,951 Training at sub-regional level FF 1 10,000,000 10,000,000 12,590 12,590 Training in specialised software FF 1 10,000,000 10,000,000 12,590 10,000 2,590 Sub-total Training 70,000,000 88,131 77,590 10,541 -

E PROJECT COORDINATION AND MANAGEMENT Allowances for members of the unit M 37 775,000 28,675,000 36,102 36,102 Air transport U 2 1,250,000 2,500,000 3,148 3,148 Per diems H/J 90 105,000 9,450,000 11,898 11,898 Office supplies FF 1 10,000,000 10,000,000 12,590 12,590 External audit FF 1 15,000,000 15,000,000 18,885 18,885 Validation and sensitisation seminars FF 5 3,000,000 15,000,000 18,885 13,220 5,666 Sub-total project coordination and management 80,625,000 101,508 95,842 5,666 - BASE COST 1,190,775,000 1,562,154 1,470,532 28,671 62,951

Physical Contingencies 5% 59,538,750 78,108 73,527 1,434 3,148

Financial Contingencies 3% 35,723,250 46,865 44,116 860 1,889

TOTAL COST 1,286,037,000 1,687,126 1,588,174 30,965 67,987

Percentage 100.00 94.13 1.84 4.03

INTEGRATED DEVELOPMENT AUTHORITY OF THE LIPTAKO-GOURMA REGION INSTITUTIONAL SUPPORT PROJECT

ANNEX 5

2000 -2004 RETROSPECTIVE FINANCIAL SITUATION

Year 2 000 2 001 2 002 2 003 2004 at 30/06

DESCRIPTION RESOURCES Projected Recovered Projected Recovered Projected Recovered Projected Recovered Projected Recovered Contributions from States 188 356 637 123 737 756 192 618 000 128 412 000 192 618 000 128 412 000 192 618 000 192 618 000 192 618 000 192 618 000 Revenue previous financial years 9 420 515 0 9 420 515 0 27 957 515 0 91 957 515 64 000 000 91 957 515 0 Revenue fixed and movable assets 36 795 200 46 186 216 39 974 720 46 298 192 43 472 192 41 988 192 43 472 192 43 758 192 43 208 192 1 860 000 Non-recurring revenue 22 452 330 23 486 479 901 070 63 001 914 435 3 196 892 914 435 14 587 068 4 860 878 1 815 815 Sub-Total 257 024 682 193 410 451 242 914 305 174 773 193 264 962 142 173 597 084 328 962 142 314 963 260 332 644 585 196 293 815 Recovery Rate 75% 72% 66% 96% 59% Banks 11 602 610 -52 738 -178 809 -20 083 357 37 644 365 27 832 458 Sub-total banks 205 013 061 174 720 455 173 418 275 322 712 361 233 938 180 TOTAL Resources 205 013 061 174 720 455 173 418 275 322 712 361 233 938 180

Year 2 000 2 001 2 002 2 003 2004 at30/06 DESCRIPTION APPLICATION Projected Actual Projected Actual Projected Actual Projected Actual Projected Actual

Operating expenses Staff expenses 119 048 898 95 614 033 115 413 993 88 834 372 119 053 942 78 576 280 117 926 937 104 815 808 134 130 355 68 723 615 Material, supplies & services expenditure 58 125 828 45 404 448 62 240 312 49 412 524 74 150 000 55 585 554 87 152 440 67 768 450 70 250 000 31 549 123 Investment & equipment expenditure 29 602 330 22 368 380 6 500 000 890 750 6 000 000 1 674 800 14 000 000 4 772 186 30 000 000 15 636 312 Contribution project implementation expend. 26 654 172 26 366 476 38 760 000 19 684 135 42 158 200 34 244 667 58 482 765 55 008 412 56 500 000 26 946 887 Expenditure past liabilities 23 593 454 14 574 650 20 000 000 16 042 082 23 600 000 23 420 331 51 400 000 44 528 005 41 764 230 8 682 721 Sub-total I 257 024 682 204 327 987 242 914 305 174 863 863 264 962 142 193 501 632 328 962 142 276 892 861 332 644 585 151 538 658 Implementation rate 79,50% 71,99% 73,03% 84,17% 45,56% WAEMU & BOAD 8 500 000 8 163 925 Special fund expenses 736 160 9 000 000 35 400 27 832 458 11 210 27 821 248 25 734 566 Sub total II 257 024 682 205 064 147 251 914 305 174 899 264 264 962 142 193 501 632 337 462 142 285 067 996 360 465 833 177 273 224 Tax expenses 7 812 080 7 062 968 5 261 415 4 530 564 2 830 486 Social expenses 8 355 304 10 545 911 20 443 241 415 479 1 595 373 Suppliers 15 201 204 11 821 837 15 639 349 8 078 150 5 957 694 Outstanding 31 368 588 29 430 716 41 344 005 13 024 193 10 383 553 Sub-total III 236 432 735 204 329 980 234 845 637 298 092 189 187 656 777 Banks -51 086 -178 809 -20 083 357 37 644 365 67 048 509 GRAND TOTAL 236 381 649 204 151 171 214 762 280 335 736 554 254 705 286 Reconciliation charges -1 652

LIPTAKO-GOURMA AUTHORITY INSTITUTIONAL SUPPORT PROJECT

ANNEX 6 ALG OPERATIONS SINCE ITS INCEPTION

N° Title of Operations Type Date Amount Financing 1 Hydrology of the Liptako-Gourma Region Grant 1972 25,000,000 CIEH 2 Integrated Disenclavement Study of the Liptako-Gourma Region Grant 1973 50,000,000 ECA 3 Integrated Development of the Liptako-Gourma Region Grant 1973 50,000,000 ECA 4 Formulation of a Mining Development Study Grant 1973 100,000,000 ECA 5 Formulation of a Mining Development Study (2nd phase) Grant 1976 142,000,000 UNDP 6 Institutional Support to the Liptako-Gourma Authority Grant 1976 142,500,000 UNDP 7 Creation Cholera Control Surveillance Posts Grant 1976 50,000,000 UNICEF/ OMS 8 Liptako-Gourma Mixed Farming Development Grant 1976 25,000,000 CAF 9 Agricultural Development Mechanisation Grant 1978 320,000,000 UNCDP 10 Study and Expertise on Telecommunication in Burkina, Mali and Niger Grant 1978 25,000,000 UNDP 11 Proposals for the Improvement of Secondary Roads Grant 1978 25,000,000 CAF 12 Dori-Tera-Niamey Road Feasibility Study and Socio-economic Study Grant 1979 80,000,000 USAID 13 Poultry Farming Development Grant 1980 185,750,000 UNCDP 14 Institutional Support to the Liptako-Gourma Region (2nd phase) Grant 1980 402,870,000 UNDP 15 Grain Marketing and Storages Structures Support Project Study Grant 1980 25,000,000 CAF 16 Feasibility Study for the Water Point Creation Study Grant 1981 15,000,000 UNDP 17 Assistance for the Formulation and Implementation of ALG’s Integrated Industrial

Development Grant 1982 328,000,000

UNIDO

18 Airborne Geophysical Survey of the Liptako-Gourma Region Grant 1982 841,000,000 ACDI 19 Evaluation and Design of an Integrated Livestock Development Project Grant 1983 81,250,000 FAO 20 Establishment of five (5) Mobile Fumigation Units Grant 1984 184,500,000 UNCDP 21 Preliminary Study of Human Health Architectural Plans Grant 1984 25,000,000 WHO 22 Workshop for the Exchange of Water Experiences Grant 1985 15,000,000 UNDP 23 Yako-Ouahigouya-Mali Border Road Engineering Designs Grant 1985 176,000,000 BID 24 Institutional Framework Study of the Timbuktu-Gaya Reach Development Grant 1985 16,000,000 UNDP 25 Dori-Tera-Niamey Road Engineering Studies Loan 1985 324,000,000 ADF 26 Animal Disease Control and Disinfestation of Ruminants Grant 1986 4,095,000,000 EDF 27 First Telecommunications Programme Loan 1986 7,000,000,000 ADB & NTF 28 First Telecommunications Programme Loan 1986 4,000,000,000 AFD 29 Seminar on the Promotion of Small and Medium Mining Companies Grant 1988 12,000,000 IDB 30 Desertification Control Interim Identification Programme Grant 1989 27,000,000 UNSO 31 Regional Phosphate Fertiliser Production Programme Grant 1989 97,000,000 ECOWAS 32 Health Structure Strengthening Programme Feasibility Study Grant 1989 685,224,000 ADF 33 First Water Programme Burkina Component Grant 1989 2,210,700,000 FKDEA 34 Sahel Railway Loan 1989 8,000,000,000 Algerian Coop. 35 Desertification Control Interim Identification Programme Grant 1989 27,000,000 CILSS OUA 36 Seminar on the Promotion of Small and Medium Mining Companies Grant 1990 18,000,000 IDB 37 First Water Programme Burkina Component Loan 1990 600,000,000 OPEC 38 Construction and Pavement of the Yako – Ouahigouya Road Loan 1990 3,240,987,738 EDF 39 Socio-economic Studies and Engineering Designs of the Tillabery – Gao Road Grant 1990 785,000,000 EDF 40 First Water Programme Niger Component Loan 1991 3,110,700,000 IDB 41 Sahel Railway (Ouagadougou – Kaya Stretch) Grant 1991 8,000,000,000 UNCDP / EDF 42 Livestock Development Programme Feasibility Study Grant 1991 190,000,000 ADF 43 Construction of Modern Kaya-Dori Earth Road Grant 1991 7,300,000,000 Italian Coop. 44 Plant Protection Grant 1991 360,000,000 DANIDA 45 Construction of the ALG Headquarters Loan 1991 490,000,000 Chinese Coop. 46 Construction and Pavement of the Ouagadougou-Kaya Road Grant 1992 5,809,957,425 KFW 47 Evaluation and Development of Gold Deposits Grant 1993 22,916,400 ECA 48 Mopti-Burkina Border Road Socio-economic Studies Grant 1993 150,000,000 IDB 49 Road Development Works on the Niger Stretch of the Dori-Tera-Niamey Road Grant 1993 1,398,125,625 EDF 50 Road Development Works on the Niger Stretch of the Dori-Tera-Niamey Road Loan 1993 1,398,125,625 BOAD 51 Second Water Programme Burkina Component Loan 1993 2,977,000,000 BOAD 52 Inter-states Secondary Roads Programme Studies Grant 1993 456,671,974 Belgian Coop. 53 First Water Programme Mali Component Grant 1993 2,541,300,000 Kuwaiti Fund 54 Seminar on the Promotion of Small and Medium Mining Companies Grant 1994 24,000,000 IDB 55 Livestock Sector Partners Forum and Donor Round Table Grant 1994 25,000,000 IDB 56 Livestock Development Programme Update Studies Grant 1996 70,000,000 ADF 57 Small Mines Legislation Study Grant 1998 10,000,000 IDB 58 Plant Protection Meeting Grant 1998 11,029,145 IDB 59 Health Structures Strengthening Programme Mali Component Loan 1998 8,596,630,000 ADF 60 Livestock Sector Partners Forum and Donor Round Table Grant 1998 5,000,000 BOAD 61 Meeting on Transborder Desertification Control Projects Grant 1998 5,000,000 CCD et CILSS 62 Health Structure Strengthening Programme Burkina Component Loan 1999 10,008,730,000 ADF 63 Updated Studies for the Health Structure Strengthening Programme - Niger Grant 1999 77,170,000 ADF 64 Institutional Support to the ALG General Directorate Grant 2000 143,500,000 IDB 65 Capacity Building of the Plant and Stored Food Protection Services Grant 2000 140,000,000 ADBEA 66 Construction Modern Earth Road Bandiagara-Burkina Border Loan 2000 5,000,000,000 BOAD

LIPTAKO-GOURMA AUTHORITY INSTITUTIONAL SUPPORT PROJECT

67 First Water Programme Mali Component Loan 2001 1,605,000,000 IDB 68 Livestock Development Programme Feasibility Study Grant 2001 133,000,000 IDB 69 Institutional Support to the ALG General Directorate Grant 2001 171,500,000 ADBEA 70 Technical Assistance in Telecommunications Grant 2001 54,978,000 UIT 71 First Water Programme Mali Component Loan 2001 3,600,000,000 ADF 72 Second Water Programme Niger Component Loan 2001 3,213,000,000 BOAD 73 « Le Beli » Transborder Desertification Control Project Grant 2001 113,700,000 CCD et CILSS 74 Third Water Programme Burkina Component Loan 2002 4,370,000,000 BOAD 75 Financing Support for the Organisation of the Donor Round Table Loan 2003 4,000,000 ADF 76 Study for the Development of the Dori-Tera Road between Burkina and Niger Loan 2003 557,109,000 ADF 77 Meeting to Validate the Document for the Integrated Reproductive Health Support

Project Grant 2003 4,500,000

WAEMU

78 Livestock Development Programme Burkina Loan 2004 5,675,500,000 IDB 79 Livestock Development Programme Mali Loan 2004 5,389,118,000 IDB 80 Livestock Development Programme Niger Prêt 2004 5,035,800,000 IDB

Total 122,699,842,932

LIPTAKO-GOURMA AUTHORITY INSTITUTIONAL SUPPORT PROJECT

ANNEX 7

BANK GROUP OPERATIONS In CFAF million

N° Name of Operation Approval

Date

Type Amount Completion

Date

1. Dori-Tera-Niamey Road Engineering Designs 17/06/1980 Grant 324,00 1985 2. Livestock Development Programme Feasibility Study 13/06/1989 Grant 190,00 1992 3. First Telecommunications Programme 1986 Loan 7 000,00 1989 4. First Water Programme Mali Component (cofinancing) 12/03/1985 Loan 3 600,00 2001 5. Health Structure Strengthening Programme Feasibility Study 20/09/1988 Grant 685,22 1991 6. Livestock Development Programme Update Studies 13/06/1989 Grant 70,00 1997 7. Health Structure Strengthening Programme Burkina Component 16/12/1991 Loan 10 008, 73 1999 8. Health Structure Strengthening Programme Studies - Niger 20/091988 Grant 77,17 1999 9. Health Structure Strengthening Programme Studies Mali 16/12/1991 Loan 8 596,63 1998 10. Dori-Tera, Burkina and Niger Road Development Study 09/07/2003 Grant 557,11 Ongoing 11. Total 31 108,86

RETROSPECTIVE ALG OPERATIONS

(in CFAF millions) Financing Source

Operation No. Other Partners Bilateral Multilateral Non African ADB/ADF African Donors Total

Studies 34 52.00 611.68 2,275.92 1,903.51 97.00 4,940.11Projects 46 123.20 31,552.96 39,911.08 29,205.36 16,967.13 117,759.73Operations 80 175.20 32,164.64 42,187.00 31,108.87 17,064.13 122,699.84Institutional Support 10 4.50 490.00 860.37 9.00 1,363.87Telecommunication. 4 4,000.00 79.98 7,000.00 11,079.98Mines Industry 10 841.00 656.00 97.00 1,594.00Health 6 75.00 19,367.76 19,442.76Rural Development 33 170.70 5,162.00 26,715.53 3,860.00 10,560.00 46,468.23Transports 17 21,671.64 13,800.12 881.11 6,398.13 42,751.00

PROJECTED OPERATIONS

(2004-2007) In CFAF millions

Departments Total Activity Sectors 2004 2005 2006 Projected Total Agriculture and Livestock 32 031 32 03111 Environment and Fisheries 3 184 3084 2239 1209 9 716Rural Development

3 Social 569 56918 Transport 55 682 36 282 103 696 195 660Communications 1 Telecommunications

Water 2 346 2 574 3 593 8 5135 Energy 298 047 298 047Industry, Mines and Energy

Industry and Mines 341 341Institutional Support 2 Institutional Support 85 1 855 1 940TOTAL 41 61 297 41 940 442 371 1 209 546 817

FINANCIAL PROJECTIONS

2005/2006/2007 In CFAF million

DESCRIPTION 2004 2005 2006 2007 REVENUE

Contributions from Member States 192 618 221 550 254 783 293 000Contribution Arrears 91 818 31 827 31 827 31 827Fixed Assets 43 208 43 208 45 850 45 850Other 5 000 2 500 5 000 5 000TOTAL REVENUE 332 644 299 085 337 460 375 677EXPENDITURE Staff 131 630 164 610 172 841 181 483Mat and Consumables 20 000 21 700 24 955 37 670External Services 106 550 91 700 105 455 121 273Transport Consumed 2 700 1 400 1 600 1 840Provision for Liability Settlement 41 764 15 025 27 261 27 261Investments 30 000 4 650 5 348 6 150TOTAL EXPENDITURE 332 644 299 085 337 460 375 677

LIPTAKO-GOURMA AUTHORITY INSTITUTIONAL SUPPORT PROJECT

ANNEX 8 Page 1 of 2

PORTFOLIO OF ONGOING PROJECTS BURKINA-FASO – MALI – NIGER

Country Name of Operations Sector Status Approval Date Date Of Signature

Project Completion Date Entry into Force Last

Disbursement Loan /Grant Amount

in UA Balance Loan /Grant

in UA Disbursement

Rate

Burkina Faso Institutional Support to the Ministry of Water Agriculture Ongo. 08/29/1990 11/22/1990 12/31/1997 06/12/1991 10/10/1997 2,245,525.00 0.00 100.0 Burkina Faso Rural De v. Decent. Support Centre West Agriculture Ongo. 11/28/2001 02/15/2002 12/31/2004 04/17/2002 09/20/2004 581,000.00 46,187.80 92.1 Burkina Faso Natural Res. Management Project. Agriculture Apvd. 05/21/2003 06/04/2003 12/31/2008 12,000,000.00 12,000,000.00 0.0 Burkina Faso Small Dam Devel. Project Agriculture Ongo. 12/12/2002 03/21/2003 12/31/2009 02/24/2004 03/10/2004 10,000,000.00 9,801,568.80 2.0 Burkina Faso Comoe, Leraba, Kenedougou Dev. Agriculture Apvd. 11/27/2002 03/21/2003 12/31/2009 08/02/2004 15,000,000.00 14,042,797.49 6.4 Burkina Faso Soum Livest. Dev. Proj. Ii Agriculture Ongo. 03/29/2000 08/28/2000 09/30/2007 11/14/2001 09/28/2004 9,990,000.00 6,864,974.27 31.3 Burkina Faso Rural Piela-Bilanga Rural Dev. Proj. Agriculture Ongo. 05/25/1992 12/30/1993 12/30/2004 10/27/1994 02/02/2004 9,440,783.00 192,659.47 98.0 Burkina Faso Rural Piela-Bilanga Rural Dev. Proj Agriculture Ongo. 05/25/1992 05/12/1993 12/28/2001 04/01/1996 06/20/2002 460,526.00 42,803.03 90.7 Burkina Faso De Bagre Dam Agriculture Ongo. 06/15/1989 08/17/1989 12/31/2003 03/28/1990 07/08/2003 33,176,293.00 5,323,417.63 84.0 Burkina Faso Et Parti. Bazega-Kadiogo Prov. Rural Dev. Agriculture Ongo. 04/18/2001 05/30/2001 12/31/2007 09/06/2004 15,000,000.00 11,801,037.32 21.3 Burkina Faso Rural Water Supply Water sup/sanit. Ongo. 11/24/1993 12/30/1993 12/30/2004 08/04/1995 09/02/2004 8,520,000.00 3,134,868.32 63.2 Burkina Faso Terr. Dev. Master Plan Study Multi-sector Apvd. 03/24/2004 04/22/2004 12/31/2007 2,000,000.00 2,000,000.00 0.0

Sub/Total Agriculture 118,414,127.00 65,250,314.13 44.9 Burkina Faso Second Road Programme Transport Ongo. 11/14/2001 12/07/2001 12/31/2005 10/16/2002 09/07/2004 22,000,000.00 20,148,581.28 8.4 Burkina Faso Road Maintenance Project Transport Ongo. 01/09/1997 02/13/1997 06/30/2005 06/09/1998 09/09/2003 10,000,000.00 2,011,487.79 79.9

Sub/Total Transports 32,000,000.00 22,160,069.07 30.7 Burkina Faso Sanit. & DWS Study Water sup/sanit. Ongo. 03/22/2000 08/28/2000 03/31/2005 05/21/2001 09/06/2004 970,000.00 695,592.97 28.3 Burkina Faso DWSS Programme in Burkina Water sup/sanit Apvd. 09/11/2003 12/18/2003 12/31/2009 15,000,000.00 15,000,000.00 0.0 Burkina Faso DWSS Programme in Burkina Water sup/sanit Apvd. 09/11/2003 12/18/2003 12/31/2009 5,000,000.00 5,000,000.00 0.0 Burkina Faso DWS Ouagadougou City Water sup/sanit Ongo. 12/15/1997 02/05/1998 12/31/2005 10/20/2000 08/13/2003 4,740,000.00 4,112,910.92 13.2 Burkina Faso Rural Elec. Decentral Feas. Study. Power Apvd. 04/17/2002 05/28/2002 01/30/2004 912,900.00 912,900.00 0.0

Sub/Total Public Utilities 26,622,900.00 25,721,403.89 3.4 Burkina Faso Education Project Iv Social Ongo. 07/16/1997 09/05/1997 12/31/2004 04/27/1999 09/14/2004 16,500,000.00 6,132,256.77 62.8 Burkina Faso Education Project V Social Apvd. 07/16/2003 09/02/2003 12/31/2009 12,000,000.00 12,000,000.00 0.0 Burkina Faso Education Project V Social Apvd. 07/16/2003 09/02/2003 12/31/2009 5,000,000.00 5,000,000.00 0.0 Burkina Faso Health Ii Social Ongo. 10/06/1999 02/07/2000 12/31/2006 09/02/2004 10,000,000.00 7,565,891.22 24.3 Burkina Faso HIV /IDS Multi-Sectoral Plan Support Social Apvd. 11/19/2003 12/18/2003 12/31/2008 5,000,000.00 5,000,000.00 0.0 Burkina Faso Poverty Reduction Programme Social Ongo. 12/10/1998 02/05/1999 12/31/2004 07/30/2001 03/24/2004 14,000,000.00 10,402,299.77 25.7 Burkina Faso Poverty Reduction Programme Social Ongo. 12/10/1998 02/05/1999 12/31/2004 07/30/2001 09/28/2004 1,500,000.00 953,676.96 36.4

Sub/Total Social Sector 64,000,000.00 47,054,124.72 26.5 Burkina Faso Support to Good Governance and Decentra. Multi-sector Ongo. 02/06/2002 02/15/2002 12/31/2004 07/25/2003 2,350,000.00 2,022,257.58 13.9 Burkina Faso Complementary Programme ESAP Ii Multi-sector Apvd. 09/22/2004 15,500,000.00 15,500,000.00

Sub/Total Multisector 17,850,000.00 17,522,257.58 1.8 TOTAL GENERAL BURKINA FASO 258,887,027.00 177,708,169.39 31.4

Mali Mopti Region Rural Dev. Support Agriculture Ongo. 10/10/2001 10/26/2001 12/31/2009 09/17/2002 09/29/2004 15,270,000.00 14,549,181.24 4.7 Mali Moyen Bani Plains Dev. Programme (I) Agriculture Ongo. 12/15/1997 02/20/1998 12/31/2003 03/29/1999 09/02/2004 19,770,000.00 17,577,608.44 11.1 Mali Baguineda Project Ii Agriculture Ongo. 09/17/1998 10/13/1998 12/31/2004 09/28/1999 09/29/2004 711,000.00 362,633.35 49.0 Mali De Daye-Hamadja-Korioume Scheme Consolidation Agriculture Apvd. 11/03/2000 04/26/2001 12/31/2006 7,840,000.00 7,840,000.00 0.0 Mali Line of Credit to Bnda Agriculture Apvd. 12/12/2002 02/14/2003 12/31/2006 15,000,000.00 15,000,000.00 0.0 Mali Seed Sub-sector Support Project Agriculture Ongo. 06/14/2001 07/11/2001 12/31/2007 12/16/2002 09/29/2004 5,670,000.00 4,967,088.49 12.4 Mali De Maninkoura Irrigated Sch. Dev. Agriculture Ongo. 10/18/2000 12/15/2000 12/31/2006 02/18/2002 08/12/2004 12,470,000.00 10,891,217.11 12.7 Mali De Maninkoura Irrigated Sch. Dev. Agriculture Ongo. 10/18/2000 12/15/2000 12/31/2006 02/18/2002 08/02/2004 440,000.00 192,963.76 56.1 Mali Phedie Irrigation Dev. Study Agriculture Ongo. 04/11/2002 05/28/2002 12/30/2005 06/30/2004 629,750.00 590,860.82 6.2 Mali Douentza Irrigation Study Mali Agriculture Ongo. 09/19/2001 10/26/2001 12/31/2003 05/06/2002 08/11/2004 648,546.00 487,282.61 24.9 Mali Djenne District Dev. Study Agriculture Apvd. 05/19/2004 08/26/2004 06/30/2007 1,060,000.00 1,060,000.00 0.0

ANNEX 8 Page 2 of 2

Mali North East Livestock Dev. Support Agriculture Apvd. 09/11/2002 01/23/2003 12/31/2009 08/20/2004 09/29/2004 13,720,000.00 13,626,246.46 0.7 Mali AnsOngo. Rural Dev. Project Agriculture Ongo. 10/27/1999 02/07/2000 12/31/2005 02/15/2001 09/29/2004 9,440,000.00 4,933,162.55 47.7 Mali Water Studies Water sup/sanit Ongo. 05/06/1998 05/28/1998 12/31/2004 01/09/2001 09/29/2004 690,000.00 241,624.52 65.0

Total Agriculture Sector 103,359,296.00 92,319,869.35 10.7 Mali Road Maintenance Project Transport Ongo. 10/08/1997 11/25/1997 12/31/2005 06/02/1999 09/29/2004 14,000,000.00 4,115,185.00 70.6 Mali Road Maintenance Project Transport Ongo. 10/08/1997 11/25/1997 12/31/2005 05/03/1999 02/11/2004 500,000.00 49,312.46 90.1

Total Transports 14,500,000.00 4,164,497.46 71.3 Mali Rural DWSS Programme Water sup/sanit Apvd. 12/17/2003 03/25/2004 12/31/2008 9,800,000.00 9,800,000.00 0.0 Mali Rural DWSS Programme Water sup/sanit Apvd. 12/17/2003 03/25/2004 12/31/2008 2,200,000.00 2,200,000.00 0.0 Mali Bamako Sanitation Master Plan Water sup/sanit Apvd. 03/24/2004 08/26/2004 12/31/2006 973,000.00 973,000.00 0.0 Mali Rural Electrification Study power Apvd. 09/24/2003 11/21/2003 06/30/2006 1,130,000.00 1,130,000.00 0.0

Total Public Utilities 14,103,000.00 14,103,000.00 0.0 Mali Education Project Iii Social Ongo. 11/20/1997 12/17/1997 12/31/2004 09/17/1999 09/28/2004 10,000,000.00 4,275,743.26 57.2 Mali Prodec Support Proj. (Educ Iv) Social Apvd. 09/24/2003 11/21/2003 12/31/2010 12,000,000.00 12,000,000.00 0.0 Mali Prodec Support Proj. (Educ Iv) Social Apvd. 09/24/2003 11/21/2003 12/31/2010 3,000,000.00 3,000,000.00 0.0 Mali Prodess Support Proj. (Health Iv) Social Ongo. 11/21/2001 01/15/2002 12/31/2007 03/31/2004 15,000,000.00 11,978,990.71 20.1 Mali Poverty Reduction Social Ongo. 03/24/1999 05/18/1999 12/31/2004 07/28/2004 10,000,000.00 4,442,976.73 55.6 Mali Poverty Reduction Social Ongo. 03/24/1999 05/18/1999 12/31/2004 07/28/2004 2,500,000.00 534,356.91 78.6

Total Social Sector 52,500,000.00 36,232,067.61 31.0 Mali Good Governance Support Multi-sector Ongo. 12/20/2002 01/16/2003 01/31/2006 10/29/2003 11/28/2003 2,100,000.00 1,415,216.35 32.6 Mali SAP Complementary Programme Iii Multi-sector Apvd. 07/19/2004 08/26/2004 12/31/2005 8,600,000.00 8,600,000.00 0.0

Total Multisector 10,700,000.00 10,015,216.35 6.4 GRAND TOTAL MALI 195,162,296.00 156,834,650.77 19.6

Niger Diffa Mixed Farming Dev. Project Agriculture Ongo. 10/22/2003 12/04/2003 12/31/2011 07/19/2004 09/20/2004 15,000,000.00 14,552,430.45 2.98 Niger Micro-Projects Agriculture Ongo. 12/14/1993 12/16/1993 12/30/2004 07/18/1997 09/20/2004 10,850,000.00 2,189,504.39 79.8 Niger Diffa Mixed Farming Development Study Agriculture Ongo. 11/12/1997 12/17/1997 08/31/2004 12/03/1999 02/23/2004 700,000.00 92,896.63 86.7 Niger Dosso Province Rural Dev. Support Agriculture Ongo. 12/14/1993 12/15/1993 12/30/2004 10/07/1997 09/20/2004 10,000,000.00 1,432,101.26 85.7 Niger Surface Run-off Dev. Agriculture Ongo. 07/15/1998 11/12/1998 12/31/2004 03/12/2001 09/14/2004 7,950,000.00 2,901,799.49 63.5 Niger Run-off Water Mobilisat Study Agriculture Ongo. 09/03/2001 10/10/2001 12/30/2004 08/10/2004 440,000.00 117,953.41 73.2 Niger Zinder Agricultural Dev. Project Agriculture Ongo. 10/18/2001 11/23/2001 12/31/2007 10/10/2002 09/10/2004 5,800,000.00 5,116,826.66 11.8 Niger Maradi Water Harn. Study Agriculture Ongo. 09/11/2003 09/29/2003 06/30/2006 06/04/2004 850,000.00 770,354.22 9.4 Niger Natural Resource Dev. Agriculture Ongo. 09/17/1998 11/12/1998 12/31/2004 03/09/2001 09/28/2004 9,300,000.00 2,816,513.43 69.7 Niger Rural Water Programme Study in Niger Water sup/sanit. Ongo. 03/07/2001 05/30/2001 12/31/2004 09/10/2001 09/28/2004 960,000.00 173,368.48 81.9 Niger Kandadji Environmental Impact Assessment Multi-sector Apvd. 11/19/2003 12/04/2003 12/31/2006 07/15/2004 1,100,000.00 1,065,170.03 3.2

Agriculture Sector 62,950,000.00 31,228,918.45 50.4 Niger Road Programme Study Ii Transport Ongo. 05/18/2001 05/30/2001 12/31/2004 08/05/2003 09/04/2003 1,380,000.00 1,140,062.29 17.4

Transport Sector 1,380,000.00 1,140,062.29 17.4 Niger Natural Domestic Energy Niger Power Ongo. 07/03/2002 08/27/2002 12/31/2005 01/20/2003 09/28/2004 645,000.00 540,496.53 16.2

Public Utilities Sector 645,000.00 540,496.53 16.2 Niger Education Project Social Ongo. 09/10/1998 11/12/1998 12/31/2004 03/12/2001 09/29/2004 10,000,000.00 2,615,583.06 73.8 Niger Education Ii Social Apvd. 12/03/2003 12/04/2003 12/31/2009 02/10/2004 09/09/2004 10,000,000.00 9,914,886.82 0.9 Niger Education Ii Social Apvd. 12/03/2003 12/04/2003 12/31/2009 02/10/2004 09/09/2004 2,000,000.00 1,984,192.55 0.8 Niger Health Care Quality Improvement (Health Ii) Social Ongo. 10/18/2001 11/23/2001 12/31/2007 09/28/2004 15,950,000.00 15,456,841.63 3.1 Niger Health Care Quality Improvemen (Health Ii Social Ongo. 10/18/2001 11/23/2001 12/31/2007 400,000.00 400,000.00 0.0 Niger Equity Enhancement Social Apvd. 06/23/2004 3,000,000.00 0.00 Niger Maradi & Diffa Prov. Health Sector Strengthening Social Ongo. 12/14/1993 12/15/1993 06/30/2004 04/16/1997 07/26/2004 9,230,000.00 60,861.09 99.3 Niger Poverty Reduction Social Ongo. 10/28/1998 11/12/1998 12/31/2004 03/12/2001 09/23/2004 5,500,000.00 1,007,794.18 81.7 Niger Poverty Reduction Strengthening of Governance" Social Ongo. 10/28/1998 11/12/1998 12/31/2004 11/09/1999 09/23/2004 1,200,000.00 653,641.64 45.5

Social Sector 57,280,000.00 32,093,800.97 40.9 Niger Structural Adjustment Programme Iv Multi-sector Apvd. 11/12/2003 12/04/2003 01/31/2006 12/29/2003 01/02/2004 13,050,000.00 4,081,480.11 68.7 Niger Structural Adjustment Programme Iv Multi-sector Apvd. 11/12/2003 12/04/2003 01/01/2006 12/29/2003 08/06/2004 1,200,000.00 1,088,575.29 9.3

Multisector 14,250,000.00 5,170,055.40 63.7 GRAND TOTAL NIGER 136,505,000.00 70,173,333.64 47.4

LIPTAKO-GOURMA AUTHORITY INSTITUTIONAL SUPPORT PROJECT

ANNEX 9 Page 1 of 5

TERMS OF REFERENCE OF TECHNICAL ASSISTANTS

WATER RESOURCES EXPERT Purpose of the Mission The water resources expert will be required to: • Assist in building the capacity of ALG professionals to identify, appraise and monitor

water projects and help with the gradual transfer of experience to the expert assigned by ALG;

• Recommend and evaluate specialised technical studies; • Train professionals; and • Give advice. Description of Functions The expert will be commissioned to: • Make a diagnosis of the water resources in the Liptako-Gourma Region; • Draft, in collaboration with other experts, the procedures for identifying, preparing,

appraising and monitoring projects (technical aspects); • Identify, prepare, appraise and monitor water projects in close collaboration with ALG

professionals; documents must also be prepared and modified in collaboration with the national departments;

• Share experience acquired in preparing requests for financing from donors; • Provide on-the-job training for ALG professionals; • Contribute to making operational, a computerised databank and geographic information

system in collaboration with the expert in databank and geographic information system designs;

• Share experience acquired in organisation and methods; • Submit a project completion report explaining the accomplishment of tasks and making

appropriate recommendations on water sector project implementation. • Establish and carry out a training and skills transfer programme for the benefit of

counterparts Profile of Expert The services will be provided by a consulting firm of renown. The expert must have: • A top level specialisation certificate; • At least 10 years of experience in the study and exploitation of water, the construction of

earth dams and project analysis; • Be computer literate; • Solid references in the design of databank and geographic information systems (GIS); • The capacity to design and implement procedures manuals; and • French as a working language.

LIPTAKO-GOURMA AUTHORITY INSTITUTIONAL SUPPORT PROJECT

ANNEX 9 Page 2 of 5

TERMS OF REFERENCE OF TECHNICAL ASSISTANTS

RENEWABLE ENERGY EXPERT Purpose of Mission The Industrial Specialist will be required to: • Assist in building the capacity of the ALG professional staff to identify, appraise and

monitor renewable energy projects and help in the gradual transfer of experience from the expert to the counterpart assigned by ALG;

• Recommend and assess specialised technical studies; • Train professionals; • Give advice. Description of Functions The expert will be commissioned to: • draft, in collaboration with other experts, the procedures for identifying, preparing,

appraising and monitoring projects (technical aspects); • make an energy diagnosis of the Liptako-Gourma Region; • identify, prepare, appraise and monitor renewable energy projects in close collaboration

with the professional staff of ALG and national services. • Retrain the professional staff of ALG; • Contribute to making operational, a computerised databank and geographic information

system in collaboration with the expert in databank and geographic information design; • Assist the ALG professionals in advancing projects already designed. The priority

documents are those concerning the project to promote renewable energy in the Liptako-Gourma Region;

• Share experience acquired in preparing requests for project financing; • Provide a project completion report that relates the accomplishment of tasks and

containing appropriate recommendations on the implementation of energy sector projects; and

• Prepare and implement a programme for training and skills transfer for the benefit of counterparts.

Profile of Expert The services will be provided by a consulting firm of renown. The expert should have: • A top level specialisation certificate; • At least 10 years experience in the design and implementation of solar energy operations; • Be computer literate; and • French as a working language.

LIPTAKO-GOURMA AUTHORITY INSTITUTIONAL SUPPORT PROJECT

ANNEX 9 Page 3 of 5

TERMS OF REFERENCE OF TECHNICAL ASSISTANTS

MIXED FARMING EXPERT Purpose of Mission The mixed farming expert will be commissioned to: • Build ALG’s capacity to intervene especially in mixed farming analyses and studies; • Assist in the implementation and monitoring of development programmes and studies; • Put in place an operating mechanism for the coordination of mixed farming sector

operations; • Examine certain aspects regarding development actions in order to start improving mixed

farming production systems. • Design a plan for the promotion of small and medium mixed farming enterprises. Description of Functions The expert will be commissioned to: i) Draft, in collaboration with other experts, the procedures for identifying, preparing,

appraising and monitoring projects (technical aspects); ii) Draft, the procedures for the internal diagnosis of farms with regards to organisation,

management and strategy; and those relative to the formulation of rehabilitation and/or restructuring plans;

iii) Recommend specialised engineering designs, help chose consultants and evaluate their recommendations;

iv) Design in collaboration with the economist, a promotion programme that takes into account priorities for mixed farms to rehabilitate and/or restructure;

v) identify, prepare and appraise projects in close collaboration with the professions of ALG and other experts;

vi) provide on-the-job training for ALG professionals in the review of technical, management and strategic mixed farming issues;

vii) assist ALG professionals in preparing the terms of reference for the priority operations identifies with a view to conducting feasibility studies and implementing development actions;

viii) assist ALG professionals in preparing implementation of certain development operations at the start-up phase;

ix) establish and implement a programme of training and skills transfer for the benefit of counterparts.

Profile of Expert The services will be provided by a consulting firm of good reputation. The expert should have: • A high level expert diploma; • At least 10 years experience in the design and implementation of mixed farming

operations; • Be computer literate; and • French as a working language.

LIPTAKO-GOURMA AUTHORITY INSTITUTIONAL SUPPORT PROJECT

ANNEX 9 Page 4 of 5

TERMS OF REFERENCE OF TECHNICAL ASSISTANTS

RURAL TRANSPORT EXPERT Purpose of Mission In the context of its mission, ALG has formulated a programme to open up the region which is being implemented gradually in concert with member states and according to the resources mobilised. One of the main priorities concerns the development and modernisation of the Inter-state road network. The road infrastructure programme distinguishes between two categories of roads: main roads and secondary roads. The expert will be commissioned to help ALG fine tune the Liptako-Gourma Region road programme. Description of Functions The expert will be commissioned to: • Identify and establish in electronic form, a network of earth roads distinguishing between

Inter-state rural road links and the national rural road network; • Identify the intermediate means of transport used in the region and the capacity for

manufacturing them; • Analyse the national strategies for designing, financing and maintaining earth roads and

proposing a regional strategy for earth road links; • Collect important technical and socio-economic data particularly on the populations

served, the technical characteristics of the earth roads, traffic, as well as the economic potential and activities of each earth road;

• Propose harmonisation of the technical and geometric specifications of the earth roads according to traffic and materials available;

• Assist in preparing the TORs for all studies needed to facilitate mobilisation of funds for maintenance and construction of earth road links;

• Define a mechanism with other regional organisations, especially the WAEMU commission with which ALG has signed a cooperation agreement;

• Establish and implement a training and skills transfer programme for the benefit of counterparts;

• Build the capacity of ALG to intervene especially for earth road analyses and studies; • Assist in the implementation and monitoring of development programmes and studies; • Put in place a mechanism for coordinating operations in the transport sector; • Study certain aspects pertaining to development actions for a start to the improvement of

the road system in the Liptako-Gourma Region; • Assist in the gradual transfer of experience from the expert to the counterpart assigned by

ALG; • Give advice. Profile of Expert • The consultant will be a civil engineer with 10 years of experience in transport economy,

a good experience in rural transport and good knowledge of the transport system in the region.

LIPTAKO-GOURMA AUTHORITY INSTITUTIONAL SUPPORT PROJECT

ANNEX 9 Page 5 of 5

TERMS OF REFERENCE OF TECHNICAL ASSISTANTS

GIS EXPERT Purpose of Mission The IT expert specialised in GIS will be required to: • Help build the capacity of ALG professionals to design and implement databanks and

geographic information systems; • Participate in the collection of data; • Input into the GIS, information collected and geo-referenced based available maps and

surveys; • Establish the structure of the GIS-associated databank in collaboration with the

counterpart and other ALG professionals; • Input into the databank all information and results provided by the various experts; • Train the counterpart and other ALG professionals; • Participate in drafting various reports. Description of Duties The expert will be commissioned to: • Prepare a conceptual data model for the geographic information system to be designed,

as well as for the databank; • Draw a detailed schema describing the functional aspects (input, processing, survey,

screen layout, analysis, etc.); • Collect data obtainable from member states and ALG. • Input data available following validation of the conceptual data model; • Prepare a base map; • Prepare thematic maps and their production in the GIS; • Provide on-the-job training for ALG professionals in the design and implementation of

databanks and geographic information systems; • Review and give indicators on the economic and social impacts of ALG’s activities on

the populations of the Liptako-Gourma Region; and • Establish and implement a training and skills transfer programme for the benefit of

counterparts. Profile of Expert The services will be provided by a consulting firm of renown. The expert should have: • A top level specialisation certificate; • At least 5 years of experience in GIS application development; • The capacity to programme interfaces under Windows NT and applications under

various programming languages (AML, C++, Visual Basic, etc.) so as to computerise procedures linking the spatial reference information system operating chains to the databank management systems (Access, Dbase, Oracle, and software SIG Arc Info PC and Arc View GIS software) ;

• An ability to design and introduce procedures manuals; and • French as a working language.

ANNEX 10

TIME TABLE OF ACTIVITIES FOR PROJECT PREPARATION

N° ACTIVITIES DATES 1) Donor round table 21 March 20032) Visit of a delegation from Liptako-Gourma to the Bank 26 June 20033) Request for project financing 29 July 20034) Project identification mission 27/11 to 12/12/20035) Inclusion in the pipeline and lending programme for 2005 November 20036) Modification of TOR and financing request 03 June 20047) Recruitment of consultant August 20048) Appraisal mission 11 to 29 August 20049) Internal working group 16 September 200410) Inter-departmental working group 24 September 200411) Management committee 21 October 200412) Submission for translation 26 October 200413) Distribution to the Board 10 November 200414) Board Presentation 8 December 2004