AFRICAN DEVELOPMENT FUND

MAD/PAAC/2001/01

Language: ENGLISH Original: FRENCH

APPRAISAL REPORT

PREVENTIVE LOCUST CONTROL

MADAGASCAR

NB: This document contains errata or corrigenda (see Annexes)

COUNTRY DEPARTMENT OCDE EAST REGION JANUARY 2001

TABLE OF CONTENTS

CURRENCY EQUIVALENTS, WEIGHTS AND MEASUREMENTS, LIST OF TABLES AND ANNEXES, ACRONYMS AND ABBREVIATIONS, PROJECT BRIEF, PROJECT MATRIX, ANALYTICAL SUMMARY i-ix 1. PROJECT GENESIS AND BACKGROUND 1 2. THE AGRICULTURAL SECTOR 2 2.1 Background 2.2 Sectoral Constraints 2 2.3 Sectoral Strategy 2 2.4 Agricultural Institutions 2 3. THE LOCUST CONTROL SUB-SECTOR 4 3.1 Locust Control Structures 4 3.2 Major Constraints 5 3.3 Locust Control Strategy 5 4. THE PROJECT 6 4.1 Project Concept and Rationale 6 4.2 Project Zone and Beneficiaries 7 4.3 Strategic Context 8 4.4 Project Objectives 8 4.5 Project Description 8 4.6 Production, Contracts and Prices 11 4.7 Environmental Impact 11 4.8 Social Impact 12 4.9 Project Cost 13 4.10 Sources of Finance and Expenditure Schedule 14 5. PROJECT IMPLEMENTATION 16 5.1 Executing Agency 16 5.2 Institutional Provisions 17 5.3 Implementation Schedule and Supervision 18 5.4 Procurement Arrangements 19 5.5 Disbursement Provisions 22 5.6 Follow-up and Evaluation 22 5.7 Financial and Audit Reports 22 5.8 Assistance Coordination 23 6. PROJECT SUSTAINABILITY AND RISKS 23 6.1 Recurrent Expenditure 23 6.2 Project Sustainability 23 6.3 Major Risks and Accommodating Measures 24

7. PROJECT BENEFITS 25 7.1 Economic and Financial Analysis 25 7.2 Social Impact Analysis 25 8. CONCLUSION AND RECOMMENDATIONS 26 8.1 Conclusion 26 8.2 Recommendations and Loan Conditions 26 This report was prepared by Messrs. M.T. Futa (Head Socio-Economist), H.A. Lam (Principal Agronomist), and a consulting financial analyst following their mission to Madagascar from 5 to 29 May 2000. Questions on the report should be referred to Mr. H.A. Lam (Ext. 5126) or Mr. L.I. Umeh, Division Manager, OCDE.2 (Ext. 4133).

AFRICAN DEVELOPMENT FUND 01 BP 1387, Abidjan, 01

Tel: 20.44.44; 20.40.56; 20.41.33 Fax 20.49.09; 20.42.20; 20.51.60

PROJECT BRIEF Date: June 2000

The information given hereunder is intended to provide some guidance to prospective suppliers, contractors and consultants and all 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. 1. COUNTRY : Republic of Madagascar 2. PROJECT NAME : Preventive Locust Control Project (PLCP) 3. LOCATION : Migratory locust outbreak area (Tulear and

Fianarantsoa Provinces) and outside the outbreak area (the North).

4. BORROWER : Government of the Republic of Madagascar 5. EXECUTING AGENCY : National Locust Control Centre B.P.: 301, Antananarivo (101) Madagascar. Tel./Fax: (261) 20 22 21 858 6. PROJECT DESCRIPTION : The project components include: A. Locust surveillance B. Research and training C. Project management and coordination 7. TOTAL COST : UA 13.91 million (i) Foreign exchange : UA 9.67 million (ii) Local currency : UA 4.24 million 8. ADF FINANCING : UA 5.78 million 9. TAF FINANCING : UA 1.29 million 10. OTHER SOURCES OF FINANCE Malagasy Government : UA 1.48 million Beneficiaries : UA 0.02 million FAC : UA 0.84 million EU : UA 4.50 million 11. PROBABLE PROJECT START-UP DATE

AND DURATION : April 2001, for five years 12. PROCUREMENT OF GOODS, WORKS AND SERVICES

Project goods, works and services will be procured as follows:

Competitive bidding on the basis of a short list for the recruitment of technical assistance (locust expert/logistician, locust expert, CNA technical adviser), project accounts auditing and mid-term review;

Individual consultants recruited for periods up to two months on the basis of a short list;

Building construction and rehabilitation works through local competition;

International competition for the procurement of vehicles and motorcycles;

National shopping for office equipment, supplies and computer hardware;

International shopping for laboratory products/equipment and pesticides;

Direct negotiation with specialized institutes approved by the Bank for research and training abroad.

13 CONSULTANCY SERVICES REQUIRED Consultancy services will be required for short-term technical assistance and services; project account and financial audit; and project mid-term review.

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CURRENCY EQUIVALENTS AND MEASUREMENTS

Currency Equivalents (May 2000)

National currency : FMG UA 1 : FMG 8781.21

: US $ 1.3192

: Euro 1.45207 US $ 1 : FMG 6 900

MEASUREMENTS Metric System

FINANCIAL YEAR

1 January to 31 December

LIST OF TABLES

4.1 Summary of Project Cost by Component 4.2 Summary of Project Cost by Category 4.3 Sources of Finance 4.3 (a) ADF Resource Financing Plan 4.3 (b) TAF Resource Financing Plan 4.4 Sources of Finance by Category 4.5 Expenditure Schedule by Component 4.6 Expenditure Schedule by Source of Finance 5.1 Estimated Implementation Schedule 5.2 Procurement Arrangements 5.3 Procurement of Goods and Services Using Other Methods

LIST OF ANNEXES

1: Map (Location of the Project Area) 2: CNA/Project Organization Chart 3: Project Implementation Schedule 4: Bank Group Operations 5. Project Cost Summary 6. Project Cost Summary by Year

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LIST OF ACRONYMS AND ABBREVIATIONS

ADB African Development Bank BVLA Village Locust Control Brigade (Brigade villageoise de lutte antiacridienne) CAB Betioky-Sud Locust Control Centre (Centre antiacridien de Betioky-sud) CABI International Agriculture and Biological Science Centre (Centre international pour

l’agriculture et la science biologique) CNA CNLA

National Locust Committee (Comité National Antiacridien) National Locust Control Committee (Comité national de lutte antiacridienne)

CSP Follow-up and Steering Committee (Comité de suivi et de pilotage) DPV Crop Protection Directorate (Direction de la protection des végétaux) FAC French Mission for Cooperation and Cultural Activities (Mission française de

coopération et d’action culturelle) ADF African Development Fund FAO United Nations Food and Agricultural Organization TAF Technical Assistance Fund FMG Malagasy Franc FOFIFA National Centre for Applied Rural Development Research (Centre national de

recherche appliquée au développement rural) GOLA Locust Control Operational Group (Groupe opérationnel de lutte antiacridienne) GTZ German Technical Cooperation Agency IDA International Development Association ICIPE International Centre for Insect Physiology and Ecology INSTAT National Institute of Statistics MINAGRI Ministry of Agriculture ONE National Environmental Agency (Office national de l’environnement) PA Locust Warning Outpost (Poste d’avertissement antiacridien) PAE Environmental Action Plan (Plan d’action environnemental) EP Environmental Programme GDP Gross Domestic Product PIP Public Investment Programme PETF Technical and Financial Implementation Programme (Programme d’exécution

technique et financière) PLCP Preventive Locust Control Project PNLA National Locust Control Programme (Programme national de lutte antiacridienne) PNRA National Agricultural Research Project (Projet national de recherche agricole) UNDP United Nations Development Programme PNVA National Agricultural Extension Project (Projet national de vulgarisation agricole) UA Unit of Account EU European Union USAID United States Agency for International Development LCZ Locust Control Zone

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Republic of Madagascar: Preventive Locust Control Project (PLCP)

PROJECT MATRIX Design team: H.A. LAM/M.T. FUTA

Narrative Description (ND) Objectively Verifiable Indicators (OVI) Means of Verification (MOV) Major Assumptions

Sectoral Objective : Strengthen food security by protecting crops and harvest.

Reduce losses of nearly 30 000 tonnes of paddy and 60 000 tonnes of cassava from the project’s fourth year.

- National statistics on agricultural production - Project activity reports.

Achievements : 1. Provide the country with the adequate organizational structure, infrastructure, human, material and financial resources for locust control.

Put a surveillance system in place Support beneficiaries through training and sensitization. 2. Finalize and implement alternative locust control methods (especially bio-pesticides) compatible with the need to protect the environment and preserve Madagascar’s considerable biodiversity.

1.1 Set up/rehabilitate and operate six (6) locust control zones and 24 locust warning outposts before the project’s second year; 1.2 Rehabilitate CAB offices and residential quarters; fully equip the locust control zones and 24 warning outposts with means of transport, spotting, treatment, communication and office equipment on project completion; 1.3 Organize twenty-five (25) training sessions on project completion. 2.1 Operate a continuous training system at the DPV for all locust control staff from the project’s second year; 2.2 Provide specialized training to nine (09) national managers before the project’s fourth year;

1.1 –Quarterly activity and supervision reports. Bank activity and supervision reports Idem idem

(Proj. Achievements Vs. Proj. Objective): Government creates a budget chapter for the project in the PIP and assigns thereto the necessary resources to cover the recurrent expenditure; Managers trained return and work within the locust control framework.

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Provide specialized training to national managers 3. Set up the project implementation unit

2.3 During the implementation phase, managers attend five (05) workshops and seminars abroad; 2.4 FOFIFA conducts a biological control research programme with the technical assistance of the ICIPE/CABI consortium from the project’s second year. 3.1 Assign five national managers specialized in CP to the project from the first year; 3.2 Recruit contract workers from the project’s first year; 3.3 The PIU receives technical assistance from the project’s first year; 3.4 Set up one (1) liaison office at TANA from project start-up.

Project activity reports FOFIFA/ICIPE convention FOFIFA and ICIPE activity reports Ministerial edict Contract TA contract

Cooperation with ICIPE/CABI is maintained

Activities : 1. Locust Monitoring 1.1 Collect and analyze climatic data 1.2 Observe the locust population density 1.3 Undertake locust spotting operations 1.4 Organize beneficiary participation in locust control. 2. Research and Training 2.1 Test the licensing of metharizium anisopliae strain biopesticide 2.2 Conduct a study to determine outbreak and control

Financial Resources Source Amount ADF loan UA 5.78 million TAF UA 1.29 million EU UA 4.50 million FAC UA 0.84 million Benef. UA 0.02 million GVT UA 1.48 million Total UA 13.91 million Budget Component Amount

- Disbursement ledger - Project activity reports Project programme and budget Project financial and audit reports – ADB financial report - Project follow-up/evaluation report.

The financial resources needed to implement the project are obtained and on time. Farmers’ participation in maintenance works. Availability of expertise with regard to technical assistance and consultancy.

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2.3 Conduct tests associating phenomena/pesticides and/or insecticides/methariziun 2.4 Pursue research on local mycopesticide strain 2.5 Continue the locust entomo-pathogenous and entomophagous inventory 2.6 Conduct a study on Nomadacris Septemfaciata 2.7 Conduct biotope studies 2.8 Provide satellite surveillance information 2.9 Ensure environmental follow-up 2.10 Train specialized managers 3. Project Management 3.1 Assign management staff to CNA 3.2 Recruit contract workers 3.3 Provide CNA with technical assistance 3.4 Set up a liaison office 3.5 Open a special account 3.6 Procure goods and services 3.7 Prepare a mid-term review 3.8 Audit accounts

Locust monitoring UA 8.96 million Research/training UA 2.72 million Project mgt. and coord. UA 2.23 million 3. Human Resources International technical assistance National technical assistance Consultancy services

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Analytical Summary Project Background/Genesis

Migratory and red locusts (respectively Locusta Migratoria Capito and Nomadacris Septemfasciata) invade Madagascar now and then. The former are considered the most harmful from the economic perspective, wrecking havoc on and pasture during invasion. The twentieth century witnessed eight major invasions, the most recent of which began in early 1997. In the wake of the infestation of the migratory locust outbreak area, the Government called for international assistance to counter the invasion. Within that context, the Bank Group extended UA 544 070 to Madagascar as emergency assistance and contributed to the preparation of a National Locust Control Programme (Programme National de Lutte Antiacridienne, PNLA) comprising two components: (i) the curative control component; and (ii) the preventive control component. To implement the programme, the Malagasy Government requested Bank support to finance the preventive locust control component. Further to the request, the Bank in August 1997 identified the Locust Control Project. In view of the urgent need to respond to Government concerns, the identified project was prepared in July 1998 and appraised in September of the same year. The project initially scheduled for submission to the January ADF Board was subsequently reclassified from Environmental Category I to II, necessitating a prior Environmental Impact Assessment (EIA). A project reappraisal mission was conducted in May 2000. The project is of special importance to the Malagasy Government since it is hoped that its implementation will help secure agricultural production by considerably reducing losses and damage. By its preventive nature, the project will develop a sustainable and economically acceptable solution. It falls squarely within the Government sectoral policy to strengthen food security, reduce poverty and preserve the environment. Aim of the Loan

The ADF/TAF loan of UA 7.07 million representing 50.8% of the total project cost will fund 47.1% of the foreign exchange cost (UA 4.55 million) and 59.3% of the local currency cost (UA 2.52 million), respectively. Project Sectoral Aim and Objective

At the sectoral level, the project will contribute to strengthen food security. The objective of the project is to prevent future locust invasion by sustainably maintaining the locust population below the outbreak level.

Brief Description of Project Achievements

To attain these objectives, the project will comprise the following components:

(i) locust surveillance involving (a) detection and early locust population control through spotting; (b) early and rapid intervention against first swarms; and (c) support to beneficiaries through sensitization, training and organization;

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(ii) research and training: the purpose of research is to experiment and disseminate information on alternative methods (biological control) in view of the need to protect the environment. Training will involve national locust control capacity building;

(iii) project management and coordination: the Project Implementation Unit within the National Locust Control Centre will implement the project (the Centre has administrative and financial autonomy). Management staff will be assigned from the Ministry of Agriculture, and contract workers put at the project’s disposal. To enhance its structure, provision has been made for a locust expert and a project manager (procurement specialist). .. Project Cost

The total project cost, net of taxes and customs duty, is estimated at UA 13.91 million (FMG 122.139 million), of which UA 9.67 million (FMG 84.897 million) and UA 4.24 million (FMG 37.242 million) in foreign exchange and local currency, respectively. Source of Finance The ADF, the TAF, FAC, the EU, the Republic of Madagascar and the beneficiaries will fund the project. ADF and TAF resources will go into financing part of the building construction and rehabilitation works, some of the vehicles and equipment, part of operations, overall training and technical assistance, short-term consultancy and studies (excluding the biotope study).

The ADF contribution of UA 7.07 million (50.8% of the total) will cover 47.1% and 59.3% of the foreign exchange and local currency costs, in that order. FAC’s UA 0.84 million will finance part of the locust warning infrastructure rehabilitation cost and the biotope study update. The European Union’s UA 4.5 million will fund most of the vehicles and equipment. The beneficiary contribution of UA 0.02 million will account for the people’s participation in the project construction, rehabilitation and infrastructure maintenance works. The UA 1.48 million counterpart contribution (10.6% of the project total) will finance part of the project operating cost, especially national staff salaries. Project Implementation The implementation phase will spread over five (5) years, under the aegis of the project implementation unit within the CNA. A coordinator (an operational locust expert) will head the unit, assisted by a secretariat. The coordinator should cooperate with the CNA departments concerned which, under the supervision of the Technical Director, will prepare annual programmes and an implementation schedule. The Technical director will: (i) coordinate, monitor and evaluate all project activities; (ii) prepare and manage protocols of agreement in collaboration with FOFIFA and the CABI/ICIPE consortium; (iii) prepare bidding documents and disbursement requests for presentation to the ADF; and (iv) prepare project financial statements and activity reports. The project’s administrative directorate will be based in Tulear, and the technical directorate in Betioky. The project will maintain an office in Antananarivo. To support the CNA and facilitate operations implementation, provision has been made from the start-up stage to recruit three international and four national consultants. Among the international consultants, the first will assist the CNA director as technical adviser for three and

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a half years. The other two will be locust experts who will work thrice a year (two months each time). There are plans to strengthen the institutional capacity through a major training programme to enable the national staff to acquire the necessary technical and professional skills to plan and implement locust control programmes on a sustainable basis. The national managers in charge of implementing the project will participate in the training organized by AMTA (Agricultural Management Training for Africa). The project Follow-up and Steering Committee (Comité de suivi et de pilotage, CSP) will be set up within the Ministry of Agriculture. The CSP will be responsible for approving the project’s work programme and budget. It will be headed by the Secretary General, Ministry of Agriculture, and will comprise the Director General of Technical Operations in the Ministry of Agriculture, The Director of Crop Protection, the Director of Agricultural Extension, the Director of FOFIFA, the Director of ONE, the representative of the Ministry of Finance and chairpersons of “FARITANY” special delegations from Fianarantsoa and Tulear, and the Betioky-Sud sub-prefecture. However, the CSP could engage anyone who, in its view, has the skills to help it implement its decisions. The CSP will meet twice yearly, preferably at Tulear. The head of the PLPA will maintain the CSP secretariat. He will be responsible for organizing meetings and ensure the enforcement CSP decisions. Conclusion and Recommendations As in most of Africa, poverty is the most acute problem facing Madagascar, especially in the rural area. The Preventive Locust Control Project falls within the general context of food security and poverty reduction through crop protection. In that regard, it is a priority for agricultural development operation. Efforts by the Malagasy Government to contain the current locust invasion and prevent future ones should be supported and encouraged. The protection of the considerable agricultural production potential by implementing the project under consideration will undoubtedly contribute to improving the people’s socio-economic conditions and reduce poverty. Thus, by targeting small swarms of locusts using the preventive control method, the quantity of chemical products used will be reduced even as the project contributes to environmental protection. The project falls within the context of Bank Group agricultural and rural sector development policy and the ARDP framework (the Government’s referential frame); both programmes aim, among other things, at strengthening national institutional capacities and rural cooperatives, enhancing production with a view to poverty reduction and food security. In the light of the foregoing, it is recommended that the Government of Madagascar be extended a grant of UA 1.29 million from the Technical Assistance Fund (TAF) and a loan not exceeding UA 5.78 million, i.e. a total Bank financial assistance of UA 7.07 million, to implement the project as described in this report.

The loan conditions are as set forth in the loan agreement.

1. INTRODUCTION 1.1 Project Genesis and Background 1.1.1 Madagascar Island covers an area of nearly 587 000 km2. Estimated at nearly 15 million inhabitants in 1998, the Malagasy population increases yearly by about 3%. Madagascar has considerable biodiversity and a wide range of climates, from the humid tropical in the Eastern Coast to the semi-arid zones of the South and semi-temparate zones of the High Plateaux which favours a diversity of tropical and temperate crops. Only the extreme South is generally arid and subject to drought. The island has a significant growth potential, thanks to its diverse and abundant natural resources, tourism potential, youthful population and cheap labour. 1.1.2 The economic structure is characterized by: (i) the pre-eminence of the primary sector which contributes 30% of the GDP, 80% of the export receipt and provides subsistence to 81.5% of the active population; (ii) the under-developed secondary sector with 13% of the GDP and only 5.3% of jobs created; and (iii) the tertiary sector which provides 13% of jobs but accounts for 54% of the GDP, of which 25% for public administration. Available indicators confirm the deterioration of the social situation. The GDP per capita estimated at US $ 260 puts the country among the world’s poorest (147th out of 174 according to the 1997 Human Development Index). 1.1.3 In a letter dated 8 April 1997, the FAP informed the international community about a strong risk of locust invasion of a magnitude comparable to that of 1960/62, and appealed for immediate intervention to prevent the risk prolonging over several years with considerable losses to farmers and the Malagasy economy. On 18 April 1997, the Malagasy government appealed for international solidarity to enable it to face the outbreak. Bank Group assistance was specifically sought in a letter dated 22 April 1997. 1.1.4 In July 1997, in response to the Government’s first request and in view of the alarming situation, the Bank Group extended a financial assistance amounting to UA 544 070 to the Republic of Madagascar as contribution to the curative campaign within the framework of an emergency operation to contain the invasion. In a letter dated 17 June 1998, the Malagasy Government informed the Bank about the status of implementation of the curative project and difficulties in containing the invasion, then requested further assistance to implement a preventive control project aimed at sustainably strengthening the national locust control capacity. 1.1.5 The PLCP was identified in August 1997 during Bank Group mission to Madagascar from 13 to 31 July 1998 to join hands with the Government and other donors in designing a National Locust Control Programme (Programme National de Lutte Antiacridienne, PNLA) which would be the operating reference for locust control. The programme comprises two components: curative and preventive. The Bank received a request to fund the preventive control component. 1.1.6 The project was appraised in 1998 and submitted for Board consideration in January 1999. Initially classified under Category II, it was reclassified under Category I, thus necessitating an Environmental Impact Assessment (EIA). Given the delay in preparing the EIA and the summary for Board information, the project could not be presented to the ADF in 1999 as planned. A decision was taken to reappraise the project. In May 2000, the Bank sent a project reappraisal mission, resulting in the report under consideration.

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2. THE AGRICULTURAL SECTOR 2.1 Background

Agriculture (including livestock and fishing) employs more than 80% of the active population and provides the country with most of its export receipts. It is a source of raw materials for the agri-food and textile industries both of which account for 75% of the industrial value added. The main food crops are rice (the staple food), cassava and maize. Rice farming, the foremost agricultural activity, covers 40% of farmland and represents one-third of the agricultural value added. Fishing occupies the second position with 24% of the primary sector value added. The main traditional export crops are vanilla, coffee, wallflower and pepper. All four crops make up 60 to 65% of agricultural exports. Industrial crops include cotton, groundnut and sugar. The herd is estimated at nearly 12 million heads. 2.2 Sectoral Constraints

Despite its huge potential, the Malagasy agricultural sector has not developed as much as it should. State divestiture was not adequately prepared. The rural sector remains too ill-structured to take over certain functions previously performed by State agencies. Traditional exports have performed poorly due to: falling world coffee and wallflower prices, on the one hand, and the declining competitiveness of Malagasy vanilla in the face of international competition, on the other hand. Sea food and beef exports have also declined due to their non-compliance with European market standards. The development of the sector is mostly hampered by insufficient mechanization, low input use, traditional cropping methods, cyclone damage, inadequate water control, deteriorating irrigation infrastructure, difficult access to credit, land-use problems and harvest losses attributable especially to locust invasion and damage. 2.3 Sectoral Strategy

Madagascar’s agricultural development objectives and thrusts are to: ensure food security, contribute to enhanced economic growth, reduce poverty and improve rural living standard, promote sustainable natural resource management, provide training and information with a view to developing rural production. To attain the objectives enumerated, the State plans to: (i) implement economic reform programmes especially those involving State divestiture from public enterprises and reduction of factors of distortion which still exist with regard to prices and markets, and which limit competition and reduce the competitiveness of the agricultural sector; (ii) increase the production and social infrastructure, and improve other rural services in order to facilitate the people’s access to social services and enhance rural income through agricultural modernization; and (iii) modify the country’s institutional framework by reducing central administration, encouraging private investment and participation of local authorities and village communities in decisions that affect them. A political and administrative decentralization process has been ongoing since 1994. 2.4 Agricultural Institutions 2.4.1 Government’s agricultural sector policy is pursued by rural sector support departments in six ministries (Agriculture, Livestock, Water and Forest Resources, Environment, Town and Country Planning, and Scientific Research). The project will be assisted by the above institutions in general, and the following support agencies in particular:

Crop Protection Directorate

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2.4.2 The aim of the Crop Protection Directorate (Direction de la Protection des Végétaux, DPV) include: (i) implementation of the Ministry of Agriculture’s crop parasites and pest control policy, especially public calamities of which locusts are a part; and (ii) enforcement of the existing phytosanitary law and international conventions on crop protection, quarantine and phytosanitary control. The DPV comprises four central departments: (i) the Agricultural Warning Department (Service de l'avertissement agricole, SAA); (ii) the Quarantine Department (Service de la quarantaine, SQV); (iii) the Phytopharmacy and Pesticide Control Department (Service de la phytopharmacie et du contrôle des pesticides, SPCP); and (iv) the Public Calamity and Other Harmful Vertebrae Department (Service des calamités publiques et autres vertébrés nuisibles, SCPAVN). The SCPAVN is responsible for locust control and has a central locust control office in Tananarivo, as well as a locust control centre in Betioky-Sud (CAB).

National Locust Control Centre (Centre National Antiacridien, CNA) 2.4.3 During the emergency control programme phase, a National Locust Control Coordination (coordination nationale de lutte antiacridienne, CNLA), placed under the army’s authority, was charged with control operations, management and organization. With the experience gained during the emergency control phase and in the absence of involvement and accountability by the appropriate technical department (Ministry of Agriculture), the decision was taken, in concert with all technical and financial partners, to set up a National Locust Control Centre (Centre National Antiacridien, CNA), pursuant to Edict 200-250 of 12 April 2000. The Centre is a Public Administrative Establishment (Etablissement Public à caractère Administratif, EPA) with administrative and financial autonomy. 2.4.4 CNA aims are: (i) in the short term, to reduce the locust situation to the remission level, and in the medium term, maintain the locust population below the outbreak level to prevent any new invasion. 2.4.5 CNA comprises a technical department, a research, operations and environment unit and a follow-up/evaluation unit. The structure also has locust control zones and outposts.

National Directorate of Agriculture 2.4.6 The National Directorate of Agriculture provides technical supervision to farmers. It currently does so through projects, programmes, sensitization, extension and training.

National Centre for Applied Rural Development Research 2.4.7 The National Centre for Applied Rural Development Research (FOFIFA) is a financially autonomous public industrial and commercial establishment (établissement public à caractère industriel et commercial EPIC) under the supervision of the Ministry of Scientific and Technological Research for Development. The general objectives of agricultural research in Madagascar include: (i) increase in agricultural production and productivity to meet the people’s needs; and (ii) export increase and diversification, at the same time protecting natural resources. FOFIFA will implement the Research and Training component with the technical assistance of the CABI/ICIPE consortium. 3 THE LOCUST CONTROL SUB-SECTOR

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There is a long history of locust control in Madagascar. The Betioky-Sud Locust Control Centre (with control outposts) was set up 1934. With no major invasion since 1957, the State increasingly overlooked locust control: the staff budget was neither renewed nor rechannelled. Prior to the current invasion, only one engineer was available for administrative and technical operations. The human resource situation had become the major handicap. The Malagasy State was to pay dearly for the lack of qualified national staff and resources during the 1997-2000 campaign, incurring expenditure far beyond the FMG 3 billion normally needed due to poor use of acridicides and defective monitoring. 3.1 Locust Control Structures 3.1.1 At the national level, the CNA is the administrative structure in charge of all locust monitoring operations, of which CAB is the operational unit. Its role is to conduct locust monitoring and control in outbreak areas during the remission period, and locust control throughout the country during invasion. The outbreak area is divided into control zones and outposts responsible for gathering and disseminating locust information. The zones and outposts spot and, if necessary, conduct treatment. In the past, the CAB satisfactorily conducted locust control. However, with the locust situation calming down and in the wake of the country’s economic and political difficulties, resources allocated to the centre were reduced, skilled hands departed and CAB’s effectiveness diminished. CAB will be revitalized with a new structure and the preventive control project. 3.1.2 At the continental level, operations are coordinated with a view to effective locust control. In that regard, locust control institutions include the Joint Anti-Locust and Anti-Aviarian Organization for countries of the Sahel (Organisation de lutte anti-aviaire et antiacridienne pour les pays du Sahel, OCLALAV), Desert Locust Control Organization for Eastern Africa (DLCO-EA) and the North-West Africa Migrating Locust Control Commission (Commission de lutte contre le criquet pèlerin en Afrique du nord-ouest, CLCPANO). Other regional centres with biological locust control programmes include the International Centre for Agriculture and Biological Sciences (Centre international pour l’agriculture et la science biologique, CABI) and the International Insect Physiology and Ecology Centre (Centre international de physiologie et d’écologie des insectes, ICIPE). So far, Madagascar has not benefitted from the services of these regional institutions, even though they contribute significantly to locust control on the continent. An information and exchange system will be set up between the CNA and the institutions concerned. 3.1.3 Since 1989, CABI has worked in collaboration with the International Institute of Tropical Agriculture (IITA), the Permanent Inter-State Committee on Drought Control in the Sahel (Comité inter-états de lutte contre la sécheresse au Sahel, CILSS-INSAH/AGRHYMET) and Montana State University (United States) to implement the LUBILOSA research project (Lutte biologique contre les locustes et sautériaux [locust and grasshopper biological control]). The related research programme financed by the Governments of Canada, the United States, Switzerland, the Netherlands and the United Kingdom is based on the development of a mycoinsecticide (“Green muscle") from spores of the fungi metarhizium anisopliae var. acridum (IMI 330189) whose effectiveness in locust control was proven by recent tests in Sahel countries. 3.1.4 ICIPE is an inter-governmental organization researching and developing crop pest and disease management methods compatible with environmental and biodiversity protection needs. It also provides practical training to farmers and extension workers, and academic training to national

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managers through ARPPIS (African Regional Post-graduate Programme in Insect Science, a programme involving cooperation among 25 African universities). Recent research at ICIPE permitted the identification of pheromones responsible for gregariousness. Furthermore, experiments combining pheromones and mycoinsecticides led to improvements in the effectiveness of mycopesticides. The involvement of the CABI/ICIPE consortium in implementing the project under review will enable Madagascar to: (i) participate in the global biological control research system by experimenting technologies earlier mentioned through the project; (ii) benefit from other strategic research results conducted at international centres; and (iii) gain from the related training programme (ARPPIS) to strengthen institutional capacities.

3.2 Major Constraints

The major constraints facing locust control include: (i) inadequate intervention and monitoring mostly attributable to staff and skills shortage, lack of material resources (transport, equipment, transmission, etc.), lack of financial resources and inadequate infrastructure (buildings, air strips); (ii) lack of mechanism to sustain operations initiated by foreign-funded projects, especially reduction in the amount of resources set aside for locust control during the remission period, marginal involvement of beneficiaries and lack of internally-generated special funds for locust control; (iii) staff demotivation; and (iv) absence of environmentally friendly control technologies and, until recently, barrier treatment products since the withdrawal of Dieldrin. It is hoped that the project will help find solutions to the above constraints through institution building, revitalization of locust control research and putting in place of the preventive control mechanism. 3.3 Locust Control Strategy 3.3.1 During the remission period, the aim of the strategy is to prevent increase in the locust population through: (i) permanent monitoring of the outbreak area with a view to the early detection of locust groupings likely to generate new invasion; (ii) analysis of the climatological conditions of the outbreak area favourable or otherwise to locust reproduction and gregariousness; and (iii) locust control at the breeding grounds from the appearance of the first larva band or swarm formations in order to prevent preventing extension of invasion to agricultural areas in the Mid-West, North-East and High Plateau. 3.3.2 During the invasion period, the strategy seeks to protect farming areas through appropriate land and air control. Control during the invasion phase is based on: (i) knowledge of locust biology, swarm dynamics and breeding area; (ii) determination of the swarm corridor and breeding ground in order to define the line of defence; (iii) study of the country’s infrastructure (roads, take-off strips, rideable roads, water points, etc.) and its direct impact on locust spotting and control operations; and (iv) timely provision of adequate logistic, human and financial resources to face invasion.

6

4 THE PROJECT 4.1 Project Concept and Rationale 4.1.1 Malagasy agriculture faces various crop pests, the worst of which is the locust in terms of the damage caused. There are several alternatives to face the locust menace: (i) the non-intervention option which involves no action to contain the pest, with the risk of continued locust invasion; (ii) close crop protection involving control of pests in farms; (iii) invasion control which requires that locusts be left to develop naturally and invasion combatted (presupposing that the targets are far beyond the outbreak zone); and (iv) invasion prevention: under that scenario, necessary measures are taken to prevent locusts from going beyond the outbreak zone. In other words, action is needed to contain locusts at the breeding grounds and anticipate invasion (preventive control). 4.1.2 The risks and costs of the first three alternatives are very high, whereas under preventive control both risks and costs are controllable. Indeed, only a rationally conducted preventive control can prevent or effectively and economically contain departing locust invasion by acting on small locust swarms right at the moment of transition from the solitary to the gregarious phase. Preventive control is based on strategies and technologies (mostly permanent locust spotting in outbreak areas and eventual operation through integrated pest management [IPM] that emphasizes biological control).

4.1.3 Therefore, the attainment of project objectives is based on beneficiary participation and smooth implementation of project activities, some of which (research, training and environment) will be implemented by technical and scientific partners (CABI/ICIPE, FOFIFA, ONE) with which agreements will be signed. The involvement of beneficiaries and civil society organizations (NGOs) in locust control operations will reduce State contribution to project recurrent expenditure and share in its sustainability. 4.1.4 Project design took into account lessons drawn from the implementation of emergency locust control projects in Madagascar. The ADF jointly financed the projects with the EU, the IDA and the FAO The aim of the project which was completed in December 2000 was to bring the current locust invasion under control before 2000 by: (i) setting up an efficient air and land monitoring and spotting network with a view to gathering specific and standardized field data on the locust situation in real time; (ii) strengthening the land and air operating capacity; and (iii) conducting environmental impact follow-up and evaluation. The project will set up Locust Control Operational Groups (Groupes opérationnels de lutte antiacridienne, GOLA) whose principal role is to coordinate control operations in a given zone. 4.1.5 In the early ’seventies, the UNDP/FAO/MAG-70.523 project (Malagasy Migratory Locust Research) shed enough scientific light for the first time ever on the locust problem to propose a simple warning and preventive control system. The system was based on the regular study of rainfall data, a land-based reporting network, early and rapid intervention against early locust groupings (prelude to the formation of swarms). The only zone monitored was the island’s South-West, corresponding to the Malagasy migratory locust invasion departure area. The foundation was laid for a simple, effective and cost-effective preventive control system. 4.1.6 The locust surveillance system which GTZ and the Malagasy Government maintained and rehabilitated, was in operation for some years. Subsequently, with the calm locust situation

7

and following the country’s growing economic and political difficulties, resources were reduced, hard skills (project-trained workers) gradually disappeared and the system fell into disuse. Thus, it was inevitable that invasion develop in a country that no longer had any prevention and control system in place. 4.1.7 GTZ’s Crop Protection Project initiated in 1988 is in its fourth phase. Although it seeks to strengthen the Crop Protection Directorate in particular and crop protection in general, the project provided support to the warning system, especially the rehabilitation of locust control infrastructure and documentation. 4.1.8 The following lessons were drawn following the implementation of various operations: (i) the marginal involvement of the beneficiary population encourages the people to adopt a largely passive attitude; (ii) limited involvement of research institutions, therefore lack of research into sustainable environmentally-friendly alternative control methods, e.g. biological control; and (iii) low State participation in financing project recurrent expenditure. On the contrary, the strategy worked out for the PLCP emphasizes full involvement of the beneficiary population in all actions undertaken, biopesticide research and the State’s funding of the project’s recurrent expenditure. 4.1.9 The Preventive Locust Control Project falls within the framework of the National Locust Control Programme (programme national de lutte antiacridienne, PNLA) designed during the July 1998 workshop which brought together the country’s political, administrative and technical authorities, bilateral and international institutions, and Non-Governmental Organizations working on locust control. Overall, the project whose purpose is to strengthen food security through crop protection, environmental preservation and institutional capacity building, is in sync with Bank Group and Government strategy for the agricultural sector. 4.2 Project Zone and Beneficiaries 4.2.1 The project’s focus area is Madagascar’s migratory locust outbreak zone. The outbreak zone delineation study was last conducted in 1973. It helped to highlight the major ecologically homogeneous territorial units of the outbreak area, namely the following approximately parallel strips to the North-West/South-East, running North-Southwards: (i) initial migratory locust multiplication area representing about 35% of the outbreak area; (ii) the transitory multiplication area accounting for nearly 35% of the outbreak area; and (iii) the densation area, southwards, representing about 30% of the outbreak area (see Annex 1: Outbreak and Densation Area). 4.2.2 The outbreak area covers 60 000 km2 in Madagascar’s South/South-West. Most of it lies in Tulear Province and a portion of Fianarantsoa Province (Ihosy Region). The major characteristics of the project zone are: 4.2.3 The climate: Madagascar’s South has an arid to semi-arid climate with irregular rainfall. Very dry winds blowing eastwards heighten the aridness. Average rainfall is 500 mm yearly and temperature ranges from 23 to 30°C. 4.2.4 The vegetation: the crop cover is largely dominated by the xerophile formation with alternating tropophile forest (characteristic of the West) and spiniferous formations in the South-West, with the savannah predominating. In the ’seventies, the Southern plateau covered with woodlands and herbaceous clearings made up the migratory locust densation area. Currently the clearing notion is outdated because with human action (uncontrolled deforestation), there are

8

now only shrubs and residual groves. 4.2.5 The population: at the human level, the South is under-populated, accounting for 13% of the national population but representing 27% of the country’s total area. The population density stands at 8.5 inh./km2 against 25.6 inh./km2 nationally. Despite the low density, there is high disproportion between the demography and available resources. The useful farm space (UFS) represents a mere 10.4% of the total area, the cultivated area 13.7% of the UFS (compared with the national figures of 15.5% and 18.5%, respectively). 4.2.6 Through crop and pasture protection, the project will directly benefit farmers and stockbreeders. It will help to save foreign exchange previously spent on cereal imports. 4.3 Strategic Context 4.3.1 The aim of Government agricultural development policy is to overcome the constraints mentioned in paragraphs 2.2 and 2.3 of this report. The key objective of the policy is to strengthen food security and reduce poverty. The strategic thrusts behind poverty reduction in Madagascar consist in: (i) the quest for higher and more sustainable growth from which the poor will benefit, giving special attention to the rural area since all indicators show the disquieting scope of poverty in the countryside; (ii) preparing effective action programmes in the priority sectors such as education, health, water supply and rural infrastructure, especially access roads; (iii) institutional development and human capacity building. 4.3.2 The guidelines in the agricultural and rural development policy document mention, among other things, public service support improvement, agriculture, enhancement of natural resources management and farmers’ participation. The project under consideration will contribute to Government sectoral objective and help to reduce production losses. Environmental protection (biotope preservation) will have an impact on the rural poor. 4.4 Project Objectives 4.4.1 Sectoral Objective: The aim of the Preventive Locust Control Project (PLCP) is to strengthen food security by protecting crops and harvests. 4.4.2 Project Objective: implementation of the PLCP will contribute to preventing future locust invasion by sustainably maintaining the locust population below the outbreak level. 4.5 Project Description 4.5.1 The project components include: A – Locust Monitoring; B – Research and Training; and C: - Project Management and Coordination.

Component A: Locust Monitoring 4.5.2 Locust monitoring aims at the early detection and control of any increase in the locust population that might lead to an invasion. 4.5.3 The major locust spotting activities will involve the collection and regular analysis of climatic data, constant monitoring of the locust population and eventual recommendation of early and rapid intervention against groupings (prelude to the formation of swarms). The spotting network will comprise nearly 200 observation stations, 24 locust warning outposts and

9

six locust control zones. 4.5.4 With regard to locust spotting, the project will fund a study to update information on the biotope and location of reporting stations. The terms of reference of the study are given in the working document (compiled to facilitate project implementation and available in the project dossier). In addition, the project will finance the rehabilitation of locust warning infrastructure, especially CAB, ZA and PA buildings, as well as equip the locust control department with means of transport (vehicles and motorcycles), communication equipment (BLU radio, GPS, etc.), computer hardware and meteorological stations. 4.5.5 Within the preventive control framework, operations will focus on the principle of early and rapid control against the first locust groupings. The project provides for an intervention strategy based on the integrated pest management method (IPM). It gives precedence to experimentation and use of biological control methods, especially biopesticides that are compatible with the need to preserve Madagascar’s environment and its rich biodiversity. 4.5.6 In terms of strengthening national capacity, 15 training seminar and workshop sessions will be organized for spotters and locust control workers in the course of the project. Locust control and spotting techniques, general acridology, cricket ecology and biology , collection and transmission of standardized locust information, acridicide application techniques, treatment equipment calibration and maintenance, human, animal and environmental protection security measures will make up the major training topics. For operational needs, the project will fund the procurement of transport (vehicles), communication and treatment equipment, as well as computer hardware. 4.5.7 The project will support beneficiaries by preparing them to play a greater role in locust control. Beneficiary sensitization, organization, training and equipment will form the core of the sub-component. As discussed with and accepted by farmers’ representatives met during the field survey, the beneficiaries organized into village locust control brigades (brigades villageoises de lutte antiacridienne, BVLA) under the methodological support of the Directorate of Agriculture, will participate in locust control. They will also share in maintaining the locust control infrastructure, especially overseeing the take-off strips and managing the reporting stations. Component B: Research and Training 4.5.8 The research and training will be implemented by FOFIFA, with the technical support of the CABI/ICIPE consortium which has biological locust control technologies and remarkable experience in training entomological managers in the sub-region. In that regard, protocols of agreement will be signed with various partner institutions and the project implementation unit. Indeed, through the LUBILOSA research project, CABI set up the “Green Muscle”, a mycoinsecticide recommended for locust control. Recent research by ICIPE helped identify pheromones responsible for gregariousness. Hence, through ARPRIS (African Regional Post-graduate Programme in Insect Science - a cooperation programme involving 25 African universities), ICIPE developed a unique training expertise which Madagascar will benefit from, thanks to the involvement of the CABI/ICIPE consortium in implementing the research and training component. The ADF will finance the procurement of a four-wheel drive vehicle for sample collection and experimentation in the project area. 4.5.9 The aim of research is to experiment and disseminate alternative locust control methods, especially biopesticides. The key research activities under the project framework will concern

10

the metarhizium anisopliae var.acridum IMI 330189 strain biopesticide licensing test, gregarization and degregarization determinism study (pheromone systems), pheromones/biopesticide and/or insecticide/metharizium association tests. These biological control methods developed by CABI and ICIPE will be tested and evaluated under Malagasy conditions. Research to identify and use a local mycopesticde strain (Johenrea Locusta), conducted by the Montana State University will be pursued. Therefore, in addition to work on biological control methods, other operational research activities will be undertaken (continuation of the locust entomo-pathogeneous and entomophagous inventory). 4.5.10 A study will be conducted on the nomadic locust (Nomadacris Septemfasciata, not as well known as the migrating locust [Locusta migratoria migratorioides]), which is currently an additional menace in Madagascar. Biotope studies and the Geographic Information System will provide a decision-making tool to monitor the locust situation and issue early warning. Work planned include: (i) compilation of a new locust biotope inventory on the migrating locust outbreak zone; (ii) update of the Malagasy migratory locust model developed in the ’seventies and introduction of a decision-making tool; (iii) information on the status of the locust warning section since 1973/74; (iv) optimization of the locust control department’s operating strategy and initiation of new monitoring and preventive control structures. The said studies are already underway with the support of the International Cooperation Centre of Agricultural Research for Development (CIRAD), funded by Coopération Française 4.5.11 The studies will continue under the project. Supply of information and use of satellite imagery will be developed in collaboration with a local specialized institution (e.g. CFSIGE). In order to monitor the impact of preventive control on the environment, provision has been made for research and environmental follow-up. The ONE, acting as an advisory body vis-à-vis the CNA, will be in charge of such follow-up. The ADF will finance the environmental follow-up activities. 4.5.12 Training will consist in strengthening national locust control research and training activities. Through the implementation of the training sub-component, the country will be provided with skilled local hands to plan and implement sustainable locust control programmes. National managers scheduled for specialized training within the project framework will be selected from among staff of the National Agronomic Research System, the DPV and the CNA. The project will fund two kinds of training: specialization and skills improvement through short-term seminars and academic training for 2 to 3 years. Training will focus on biochemistry, environment/locust ecology, applied entomology, basic and operational acridology. In that regard, six scholarships will be awarded (50% for studies outside Africa and 50% in Africa through the ARPPIS and ICIPE programme).

Component C: Project Management and Coordination 4.5.13 A Project Implementation Unit (PIU) within the National Locust Control Centre will implement the project. The CNA is a Public Administrative Agency (établissement public à caractère administratif, EPA) responsible for locust monitoring and control in the outbreak area during the period of remission and locust control throughout the country during invasion. The project will use CNA staff to implement field tasks (locust control outposts and zones). The unit will comprise: (i) management staff specialized in crop protection, assigned to the CNA (head of the Spotting Unit, head of the Operations Unit and head of the Operational Research Unit; an agro-economist who will be responsible for project follow-up and evaluation and a logistics officer; (ii) contract workers (an accountant/manager, three secretaries, three drivers); and (iii) technical assistance (locust specialist, locust specialist/logistics officer and one procurement

11

specialist). Coordinated by the head of the unit, the above staff and technical assistance will together conduct project operations. Technical assistance will provide training, methodological and technical support to Malagasy staff in connection with project planning, implementation and follow-up/evaluation. Annex 2 shows the CNA organization chart. 4.5.14 Since the project site is located far from the country’s capital, provision has been made to set up a liaison office in Antananarivo to facilitate contact with the central authorities and the Bank, and accelerate procurement procedures. The liaison office will have two staff (office manager and secretary). 4.5.15 Project accounts will be audited yearly. Moreover, the project management and coordination unit will be charged with managing funds disbursed by the Bank. In that connection, a special account will be opened in a reputable commercial bank into which the project working capital will be paid. Opening of the account is one of the conditions to fulfill prior to loan and grant entry into force. The ADF will finance the procurement of two four-wheel drive vehicles for transportation purposes within the project coordination framework. 4.6 Production, Contracts and Prices

The aim of the PLCP is to protect crops from locust invasion. The key focus is on rice, wheat, sugarcane, maize, cassava and pasture, preventing or limiting losses caused by locusts. The project will not generate any additional production. Overall farm production losses are estimated at between 30 and 50% of production in the project zone, i.e. nearly 6 500 tonnes of beans, 199 000 tonnes of paddy, 20 000 tonnes of maize and 370 000 tonnes of cassava. The protection of that production volume could have a positive impact on consumer prices and food security. 4.7 Environmental Impact 4.7.1 The Preventive Locust Control Project is classified under Environmental Category I. The project components have little negative impact on the environment; whatever impact there is will be limited, insignificant in scope or easy to contain. Limited impact could appear especially during the construction of project infrastructure and probably during the development of alternative locust control resources via highly monitored research. 4.7.2 Furthermore, it should be pointed out that since the Preventive Locust Control Project was classified under Category I, the ADF undertook to conduct a full EIA, taking into account not only the toxic effect of chemicals but also the toxicity of biopesticides. The key objectives of the EIA consist in: (i) identifying and assessing the importance and probability of potential impacts; (ii) defining the major activities, the corresponding resources and the responsibility of various parties for the smooth conduct of preventive control; (iii) defining the general framework for the use of biopesticides; and (iv) preparing an environmental programme for impact monitoring and evaluation. 4.7.3 The conclusions of the EIA confirm that the PLCP has no harmful ecological impact. Instead, as a preventive operation, it contributes to better protection of the agro-ecological balance constantly menaced by the risk of invasion. The EIA developed an environmental approach specific to Madagascar’s locust control needs. The plan takes into account the particularly fragile environment due to: (i) endemic species; and (ii) contingencies linked to the people’s health and crop protection against chemical pollution. Adequate monitoring of the

12

environmental impact will allow room for adjustments to contain the menace. 4.7.4 In addition to the environmental monitoring mechanisms put in place during the project’s curative phase, a lighter permanent environmental monitoring mechanism to back preventive control will be set up. One team comprising hands drawn from various operational units is considered sufficient during the emergency phase. The team will include an ecologist (ecological monitoring), an applications expert (technical monitoring) and a toxicologist, supported by three assistants, two fact-finders and one driver. The team will use equipment procured during the emergency phase but will receive an operating budget throughout the project duration. A toxicologist will form part of the light permanent environmental monitoring team set up in the wake of curative control. 4.7.5 It should also be noted that the ONE closely monitored environmental impact issues during the curative phase when a significant volume of chemical pesticides was used. Thanks to data that ONE collected and analyzed, it was possible to avoid or reduce the potential negative impact on human health, the flora and fauna. Hence, following the said analysis, toxic pesticides were eliminated and replaced with less toxic ones. 4.8 Social Impact 4.8.1 The social impact of the project is obvious. The preventive treatment of areas infested by locusts will help to save harvests, reduce operations to control massive invasion and lessen women’s worries with regard to the subsistence of rural families. The project will preserve and improve rural quality and production level. It will bring associated financial, economic and environmental benefits. By protecting crops against locust invasion, the project will bring production losses down by 30 to 50% over an annual output of nearly 6 500 tonnes of beans, 199 000 tonnes of paddy, 20 000 tonnes of maize and 370 000 tonnes of cassava. Damage of pasture reduces the possibility of feeding livestock and forces livestock farmers to go further a-field to graze their herd. Production protection will have a positive impact on food security and reduce poverty. Preventive control will help reduce areas for future treatment as well as the quantity of products spread on the environment. 4.8.2 Thus by implementing the research component, the project will develop biological control methods (as an alternative to chemical control), sustainable and compatible with the need to protect the environment and the country’s considerable biodiversity against the dangers of locust invasion. The strengthening of the national institutional capacity through the human resource development programme and social cohesion at the beneficiary level via village locust control brigades is yet another major project impact. 4.8.3 In view of population concentration and movement, there is need to pay attention to the problem of HIV/AIDS, even though the sero-prevalence is low (0.02% in 1989 and 0.99% among target groups in 1999). According to UNAIDS projection, the contamination rate for the population as a whole stood at 0.15% in 1999. The population range most affected falls between the ages of 30 and 39. Sensitization to the HIV/AIDS problem will be taken into account within the context of training activities under the “support to beneficiaries” component. To that end, the project will maintain close contact with Tulear’s provincial health departments. 4.9 Project Cost 4.9.1 The total project cost net of taxes and customs duty is estimated at FMG 122.139 million

13

(UA 13.91 million). The cost comprises FMG 84.897 million in foreign exchange and FMG 37.242 million in local currency (UA 9.67 million and UA 4.24 million, respectively). Tables 4.1 and 4.2 below summarize the cost by component and expenditure category. Cost details are given in the annex.

Table 4.1: Summary of Project Cost by Component

(FMG Million) (UA'000)

% % COMPONENTS L.C. F.E. Total LC FE Total FE total

A. LOCUST MONITORING 20,409 47,904 68,313 2,324.18 5,455.32 7,779.50 70 64 B. RESEARCH AND TRAINING 2,358 18,864 21,222 268.48 2,148.24 2,416.72 89 20 C. PROJECT MANAGEMENT AND

COORDINATION 8,576 8,138 16,713 976.58 926.73 1,903.31 49 16

Total base cost 31,342 74,906 106,248 3,569.23 8,530.29 12,099.52 71 100 Contingencies 2,004 6,209 8,213 228.20 707.10 935.30 76 8 Inflation 3,896 3,781 7,678 443.73 430.61 874.34 49 7Total project cost 37,242 84,897 122,139 4,241.16 9,668.00 13,909.15 70 115

Table 4.2: Summary of Project Cost by Category

(FMG Million) (UA Thousand) % CATEGORIES L.C. F.E. Total L.C. F.E. Total F.E. total I. Capital expenditure A. CONSTRUCTION AND REHABILITATION 1,731 4,039 5,770 197.12 459.94 657.05 70 5 B. VEHICLES AND EQUIPMENT 504 40,323 40,827 57.38 4,591.98 4,649.36 99 38 C. TRAINING/RESEARCH 3,080 7,103 10,183 350.74 808.87 1,159.61 70 10 D. TECHNICAL ASSISTANCE,

CONSULTANCY & STUDIES 3,788 17,074 20,861 431.35 1,944.33 2,375.68 82 20

Sub-total capital expenditure 9,102 68,538 77,641 1,036.58 7,805.12 8,841.70 88 73 II. Operating expenses E. SALARIES 8,107 - 8,107 923.23 - 923.23 - 8 F. TRANSPORT ALLOWANCE 3,275 - 3,275 372.94 - 372.94 - 3 G.MAINTENANCE, OPERATIONS AND

REPAIRS 3,910 3,805 7,715 445.27 433.34 878.61 49 7

H. GENERAL EXPENSES 6,948 2,563 9,510 791.20 291.83 1,083.02 55 8Sub-total operating expenditure 22,240 6,368 28,608 2,532.65 725.17 3,257.82 22 27Total base cost 31,342 74,906 106,248 3,569.23 8,530.29 12,099.52 71 100 Contingencies 2,004 6,209 8,213 228.20 707.10 935.30 76 8 Inflation 3,896 3,781 7,678 443.73 430.61 874.34 49 7Total project cost 37,242 84,897 122,139 4,241.16 9,668.00 13,909.15 70 115

4.9.2 The cost estimates were based on prices effective in the country as of August 2000, to which a general 10% contingency provision was added except for national staff salaries, technical assistance, bonus and allowances. Concerning inflation, a 5% and 2.5% annual provision for local currency and foreign exchange expenses, respectively, was applied to all components. The total corresponding envelop for contingencies and inflation amount to UA 1.81 million or 13.0% of total project cost. 4.10 Sources of Finance and Expenditure Schedule 4.10.1 The project will be funded simultaneously by the ADF, the TAF, the European Union, Mission Française de Coopération et d’Action Culturelle (FAC), the Republic of Madagascar and beneficiaries, as shown in Tables 4.3 and 4.4 below:

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Table 4.3 Sources of Finance

UA Million Sources For. Exc. Loc. Currency Total % of the totalADF 3,662.45 2,121.37 5,783.81 41.6TAF 892.57 393.68 1,286.26 9.2EU 4,461.70 36.25 4,497.95 32.3FAC 651.28 184.64 835.92 6.0BENEFICIARIES - 24.99 24.99 0.2GOVERNMENT 1,480.22 1,480.22 10.6Total 9,668.00- 4,241.16 13,909.15 100

Table 4.3 (a) ADF Resource Financing Plan

UA Million Sources For. Exc. Local Currency Total % of the

totalADF 3,662.45 2,121.37 5,783.81 80.1BENEFICIARIES - 24.99 24.99 0.3GOVERNMENT 1,410.10 1,410.10 19.6Total 3,662.45 3,556.46 7,218.90 100,0

Table 4.3 (b)

TAF Resource Financing Plan

UA Million Sources For. Exc. Local Currency Total % of the

totalTAF 892.57 393.69 1,286.26 95GOVERNMENT 70.12 70.12 5Total 892.57 463.81 1,356.38 100

Table 4.4

Sources of Finance by Category (in UA 000)

Categories ADF TAF EU FAC GVT BEN TOTAL Investments Construction and rehabilitation Vehicles and equipment Training and research Technical assistance,

70.87

834.61

-

2,457.09

-

-

1,286.26

-

-

4,497.95

-

-

652.05

-

-

183.87

-

-

20.42

27.68

22.75

-

-

-

745.67

5,332.56

1,306.68

2,668.64

15

consultancy and studies S/total investments 3,362.57 1,286.26 4,497.95 835.92 48.10 22.75 10,053.55 Operations Salaries Travel allowance Maintenance, operations and repairs General expenses

30.07

443.58

1,055.94

891.65

-

1,052.44

12.17

367.51

2.25

1,082.51

443.58

1,070.36

1,259.16 S/total operations 2,421.24 - - 1,432.12 2.25 3,855.61 Total Project 5,783.81 1,286.26 4,497.95 835.92 1,480.22 24.99 13,909.16 4.10.2 The UA 5.78 million ADF funding (46% of total project cost) will finance part of the cost of building construction and rehabilitation, partial cost of vehicles and equipment, technical assistance and project operating expenses. TAF’s UA 1.29 million financing (9.2% of total project cost) will fund the training component. FAC’s participation (UA 0.83 million or 6% of total project cost) will finance part of the construction, rehabilitation and biotope study components. The EU’s UA 0.83 million (32.3% of total project cost) will finance the bulk of the vehicles and equipment component. That financing is already underway. The beneficiary contribution (UA 1.48 million or 10.6% of the project cost) will partly fund the operating cost, especially national staff salaries. 4.10.3 Project expenditure will be conducted as shown in the tables below (including provisions for contingencies and inflation).

Table 4.5: Expenditure Schedule by Component (in UA Thousand)

2001 2002 2003 2004 2005 Total A. LOCUST MONITORING 3,324.17 2,019.79 1,451.42 1,074.57 1,089.98 8,959.92B. RESEARCH/TRAINING 791.05 542.70 580.45 452.88 353.53 2,720.60C. MANAGEMENT/COORD. 636.89 398.15 484.97 316.73 391.90 2,228.63TOTAL PROJECT 4,752.10 2,960.63 2,516.84 1,844.18 1,835.40 13,909.15

Table 4.6: Expenditure Schedule by Source of Finance (in UA Thousand)

Sources of Finance/Year 2001 2002 2003 2004 2005 Total ADF 1,656.54 1,170.92 1,161.42 863.56 931.39 5,783.81 ADF 1,656.54 1,170.92 1,161.42 863.56 931.39 5,783.81 TAF 317.71 289.58 337.99 200.08 140.91 1,286.26 EU 1,965.95 842.72 679.79 519.90 489.58 4,497.95 FAC 486,57 321.79 8.90 9.18 9.48 835.92 BENEFICIARIES 13.96 8.50 0,80 0.84 0.89 24.99 GOVERNMENT 311.38 327.14 327.95 250.63 263.16 1,480.22 Total 4,752.10 2,960.63 2,516.84 1,844.18 1,835.40 13,909.15

Justification of Bank’s Participation in the Local Currency Cost Financing

4.10.4 Since 1994 and 1995 that marked the resumption of relations with the Bretton Woods institutions, Madagascar has received several bilateral and multilateral financial assistance.

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With the support of the international donor community, the country defined realistic economic and financial objectives, and undertook a series of macro-economic and structural reforms contained in the Economic Policy Framework Document (EPFD). The external and internal resources so mobilized will be used mostly to support the country’s economic and social development programme. 4.10.5 External capital received by way of international assistance is primarily used to meet the foreign exchange financing needs of various projects and programmes. Internal resources mobilized contributed substantially to project and programme implementation. However, in view of the current low domestic savings level and the country’s undertaking to bear the local currency cost of ongoing projects, Madagascar will be unable to totally fund the local currency cost of the PLCP without foreign support, notwithstanding the considerable improvement in budgetary receipts (currently above 11% of the GDP and estimated at 14.3% for 2001). 4.10.6 Moreover, in view of State commitments and budgetary constraints, any recourse to domestic borrowing or bond issue by the treasury should be avoided. The Bank will finance part of the local currency cost representing 18.1% of the total project cost. The costs mostly concern research, staff and beneficiary training, and operations. Therefore, since the project will contribute to poverty reduction and promote rural sector development, it should receive donor support in funding the local currency cost. 4.10.7 Local currency expenditure from the ADF loan will be committed in accordance with principles and conditions set forth in the ADF-VIII lending policy document and guidelines and procedures for the use of the Technical Assistance Fund. Parallel financing method was chosen. Proof of signature of agreements with other co-financiers or an undertaking from them to fund the project shall be one of the grant and loan conditions. 5 PROJECT IMPLEMENTATION 5.1 Executing Agency 5.1.1 The National Locust Control Centre (Centre National Antiacridien, CNA) will be the executing agency. The Centre will: (i) coordinate, monitor and follow-up all project activities; (ii) prepare and manage the memoranda of understanding with FOFIFA and the CABI/ICIPE consortium; (iii) prepare bidding documents and disbursement requests for presentation to the ADF; and (iv) prepare project financial statements and progress reports. The project’s administrative offices will be located in Tulear and the technical directorate at Betioky. The project will have an agency at Antananarivo. The project management and agency will be located within the premises that the Government will put at PLCP disposal. 5.1.2 The CNA is a public administrative agency (Etablissement Public à caractère Administratif, E.P.A.) set up by Edict N°2000251 of 12 April 2000. The aim of the National Locust Control Centre (Centre National Antiacridien, CNA) is to monitor and control locusts in the outbreak area during the remission period and extend control to all the country during invasion. Its foremost objective is to set up a preventive control system which, through regular monitoring of ecological conditions and the swarm population in the outbreak area, allows for rapid containment of the risk of new invasion. 5.2 Institutional Provisions

17

5.2.1 In view of the fact that the Malagasy Government set up the CNA, it is proposed that that Agency be entrusted with the project management. An implementation unit will be established within the CNA and placed under the supervision of the CNA Director. The Unit will be headed by a coordinator (an operational locust specialist), assisted by a secretariat. The coordinator shall cooperate with all relevant CNA departments which, under the aegis of the Director, will prepare annual programmes and an implementation plan of various project activities identified. The coordinator will also collaborate with CNA’s administration and finance department to prepare budgets and put in place an accounting system allowing for sound and transparent project resource management. 5.2.2 In addition, the coordinator will be better placed to monitor CNA collaboration with other partners such as FOFIFA, the Montana State University and the ICIPE/CABI consortium. The intervention of these partners shall be subject to cooperation agreements negotiated and signed by all parties. 5.2.3 The head of the PIU together with his colleagues in the technical division will strive to set up provincial locust control committees and village brigades. Cooperation contracts between the CNA and village brigades will clearly define the functions and responsibilities of each party. 5.2.4 In view of the fact that several institutions will participate in the implementation phase, a Follow-up and Steering Committee (Comité de suivi et de pilotage, CSP) will be set up at the Ministry of Agriculture. The CSP will be responsible for approving the project’s working programme and budget. It will supervise the implementation of the project budget and various components. It will be headed by the Secretary General in the Ministry of Agriculture and comprise the Director General in charge of technical operations in the Ministry of Agriculture, the Director of Crop Protection, the Director of Agricultural Extension, the Director of FOFIFA, the Director of ONE, the representative of the Ministry of Finance and heads of special delegations of Fianarantsoa and Tulear ‘’FARITANY’’ as well as the Betioky Sud sub-prefecture. However, the CSP could engage anyone who, in its view, has appropriate skills to help it to implement its decisions. The CSP will meet twice yearly, preferably at Tulear. The head of the PLPA will oversee the CSP secretariat, organize meetings and ensure that PLPA decisions are enforced. The establishment of the CSP shall be one of the loan conditions. 5.2.5 The strengthening of the institutional capacity through the training programme scheduled within the project framework will enable the national staff to acquire the technical and professional skills they need to plan and implement locust control programmes on a sustainable basis. National managers in charge of project management will attend training organized by AMTA (Agricultural Management Training for Africa). The AMTA training programme will focus on the procurement of goods and services, administrative and financial management of agricultural projects, follow-up/evaluation of agricultural projects, etc. 5.3 Implementation Schedule and Supervision 5.3.1 Project activities will start in early 2001; implementation will span five (5) years. The first year will witness the establishment of the project implementation unit, preparation of bidding documents for recurrent technical assistance, procurement of necessary equipment, materials and supplies. In order to support the CNA and facilitate its operations, three international consultants and four national consultants will be recruited. Among the international consultants, the first will assist the CNA director as technical adviser, recruited from the start of the project for a three and a half year period. The other two will be locust

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specialists who will intervene thrice yearly, each intervention for a two-month period (three interventions yearly the first three years, two during the fourth year and one intervention on the fifth year). 5.3.2 Furthermore, provision has been made to invite four national experts. The first, an accountant recruited throughout the period, will monitor project financial operations and keep accounts with the assistance of the accounts officer. The second will be a specialist in public contract, invitation and bid opening , goods and services procurement procedures. He will work full-time the first three years, nine months during the fourth year and four months during the fifth. Lastly, two national consultants will each work for twenty-six (26) months spread through the project period (6 months the first three years and 4 months the last two). 5.3.3 The project will take off immediately following loan signature and assignment of the national staff. The Bank will supervise the project once or twice yearly. The mid-term review will be conducted during the third year. External auditing will be carried out yearly. The estimated schedule of key project activities is given in Table 5 below:

Table 5.1: Estimated Implementation Schedule

Activities Responsible Starting/Ending Loan approval ADF Feb. 2001 Loan signature ADF/GOV April 2001 Entry into force GOV/ADF June 2001 Assignment of national managers/ Recruitment of local staff GOV/PLPA July 2001 Establishment of the CSP GOV. July 2001 Project start-up seminar ADF/ PLPA August 2001 Tech. assistance bidding & contract PLPA Aug. – Jan. 2002 Agreements with ONE, FOFIFA and NGO PLPA Nov. 2001 – Mar. 2002 civil eng. works bidding & contract PLPA Aug. 2001 – Dec. 2001 Vehicle bidding & contract PLPA Aug. - Oct. 2001 Civil engineering works implementation CONTRACTORS April 2002- July 2003 Supervision mission ADF/GOV 1 - 2 times/annum Audit ADF/GOV. Yearly Mid-term review ADF/GOV. August 2003 Completion report ADF/GOV. 2006 5.4 Procurement Arrangements 5.4.1 All Bank-funded procurement of works, goods and services shall comply with the Institution’s rules of procedure for the procurement of goods and works or the rules of procedure for the use of consultants, as the case may be, using the appropriate standard Bank bid forms. Table 5.2 below summarizes the project’s procurement modalities:

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Table 5.2: Procurement Arrangements

(in UA Thousand)

Expenditure Categories ICB LCB Others Short List Other finan Total WORKS Construction Rehabilitation

- 62.85 (62.85) 8.02 (8.02)

- - 598.42 76.38

661.27 (62.85) 84.40 (8.02)

GOODS Vehicles Miscl. equipment

309.66 (309.66) 524.94 (524.94)

- - - 349.15 4,148.81

658.81 (309.66)4,673.75(524.94)

TRAINING Academic training Prof. training (seminars and workshops) Beneficiary training

- -

- 601.04 (601.04) 483.50 (483.50) 201.72 (201.72)

9.80 10.62

601.04 (601.04)493.30 (483.50)212.33 (201.72)

TECHNICAL ASSISTANCE CONSULTANCY & STUDIES Foreign technical assistance Local consultancy External audit Mid-term review Short-term consultancy

- - - 1,970.49 (1,970.49) 118.94 (118.94) 11.87 (11.87) 383.47 (355.79)

183.87

2,154.36(1,970.49 118.94 (118.94)11.87 (11.87) 383.47 (355.79)

OPERATIONS Salaries Transport allowance Maintenance and repairs General and miscl. expenses

- - - -

- - - -

30.07 (30.07) 443.58 (443.58) 1,055.94 (1,055.94) 891.65 (891.65)

- - - -

1,052.44 - 14.42 367.51

1.058.51(30.07) 443.58 (443.58)1,070.36(1,055.941,259.16(891.65)

Total 834.60 (834.60)

70.87 (70.87)

3,707.50 (3,707.50)

2,484.77 (2,457.09)

6,811.42 13,909.15(7,070.07

N.B.: Figures in parenthesis represent ADF/TAF funding 5.4.2 The National Locust Control Centre, with the support of the technical adviser to the director and the procurement specialist, will be charged with all project procurements, including the selection of consultants. At project start-up, he will prepare a consolidated procurement plan which will outline the contracts, costs, procurement methods and schedule for each good or service. He will negotiate and sign protocols of agreement with other partners charged with implementing other project activities. Rules and regulations governing the award of contracts in the Republic of Madagascar were reviewed and considered acceptable. 5.4.3 Works: these involve the construction and rehabilitation of certain office buildings and

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living quarters in locust control zones and outposts for a total contract of UA 0.74 million. The Bank’s contribution to financing the component is estimated at UA 0.07 million. Since these works will very likely not be of interest to international donors, LCB is the proposed procurement method. Bidding will be open to eligible foreign firms operating in the country that may wish to participate. Besides, there are enough local private contracting firms capable of undertaking such works. 5.4.4 Goods: these comprise: (i) vehicles for a contract of UA 0.66 million, of which the Bank’s participation will amount to UA 0.31 million; and (ii) miscellaneous equipment for a total contract of UA 4.67 million, including the Bank’s participation of UA 0.52 million. This expenditure category will comprise several contracts, depending on the type of goods to procure. ICB is the proposed procurement method. Other goods and services will be procured using other methods as shown in Table 5.3 below:

Table 5.3 Procurement of Goods and Services Using Other Methods

Procedure

Goods Maximum per Contract

(in UA million) Total

(in UA million) National shopping

Maintenance and repairs General expenses (office supplies)

0.15 0.15

1.54 0.92

5.4.5 Training: this component comprises higher academic training for managers, vocational training for field staff and training of beneficiaries. The overall service value is estimated at UA 1.29 million which will be fully funded by the Bank (TAF). The procurement method proposed consists in consulting training institutions on the basis of a short list in accordance with the Bank’s rules of procedure. NGOs recruited in the wake of competition on the basis of a short list of international suppliers of higher academic training will provide training for beneficiaries. National shopping will also be used in both vocational and beneficiary training. 5.4.6 Technical Assistance, Consultancy and Studies: these services will comprise foreign technical assistance (locust specialist, locust specialist/logistician), local consultancy (external audit, mid-term review) and studies, for a total contract of UA 2.67 million, of which UA 2.469 million will be funded by the Bank. These services will be procured through bidding on the basis of a short list, in accordance with Bank rules of procedures on the use of consultants. Bid analysis will be based on comparison of technical proposals and selection of the least costly bid. 5.4.7 Operations: the project infrastructure, equipment maintenance and repairs as well as office supplies (general expenses) will be subject to local shopping procedures, given the existence of local suppliers and the diversity of goods and equipment. 5.4.8 Information Note on Procurement: the text of a General Procurement Information Note approved by the borrower during negotiations shall be submitted for publication in Development Business immediately following loan approval by the ADF Board. 5.4.9 Review Procedures: the following documents shall be submitted to the Bank prior to publication: (i) special procurement information note; (ii) bidding documents; (iii) bid appraisal reports containing contract recommendations; and (iv) draft contracts if those contained in the

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bidding documents were modified. 5.5 Disbursement Provisions 5.5.1 The Government will open a special project account in a bank that the Fund considers acceptable, into which disbursement will be paid. The account will be opened and managed by the project implementation unit in accordance with ADF disbursement rules of procedure. The said rules and procedures will be explained during the project start-up mission. Disbursement for operating expenses will be made using the working capital method and in line with ADF procedures (expenditure projection and justification). 5.5.2 Contract disbursements for infrastructure and civil engineering works, vehicles, consultancy services, spotting, treatment and sundry equipment, will be paid directly to suppliers. Expenditure above UA 20 000 will be paid from the project account with prior ADF authorization. 5.6 Follow-up and Evaluation

An agro-economist will be assigned to the project implementation unit for the routine follow-up and evaluation of all project activities. Follow-up/evaluation will mostly focus on the following aspects: (i) respect of project implementation schedule; (ii) management of the research cooperation agreement; (iii) project expenditure; (iv) comparison between resources committed and technical achievements; (v) analysis of technical, administrative and organizational problems during the implementation phase; and (vi) project impact. The Bank will conduct a mid-term review at the beginning of the third year to evaluate progress made, identify constraints and, if necessary, propose corrective measures. 5.7 Financial and Audit Reports 5.7.1 An annual external audit of project accounts will be conducted by an independent auditing firm recruited in accordance with Bank rules of procedure for the use of consultants. The project will take the audit cost into account. The audit reports will be submitted to the Fund for review and comments not later than six months following the end of each financial year. 5.7.2 Quarterly progress reports will be prepared and forwarded to the Bank. The reports should contain project progress indicators vis-à-vis the set objectives, and explain reasons for major gaps. The project’s physical and financial implementation shall be extensively reviewed during the preparation of these reports. The quarterly reports and Bank supervision reports will offer key input for follow-up/evaluation. The Government will prepare a mid-term review during the third year and a project completion report (PCR) at the end of the project, on the basis of which the Bank will prepare its own completion report. The project took into account the cost of these activities. 5.8 Assistance Coordination 5.8.1 At the national level, the Ministry of Economy and Finance is in charge of assistance coordination. The UNDP oversees donor coordination. Within the context of its operations in

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the agricultural and rural development sector, donors will be coordinated via the Rural Development Action Plan structure (Plan d'action pour le développement rural, PADR) which, henceforth, will be the joint action and operating framework for all of Madagascar’s technical and financial partners. 5.8.2 The design of the project under consideration took into account experiences on similar locust control projects implemented in Madagascar, especially those of the FAO/UNDP, the GTZ and the European Union. Other donors were associated in preparing, appraising and reappraising the project. From views exchanged, all donors share a common vision of what locust control action is needed, in particular the reintroduction of the locust early warning system, the search for alternative control methods compatible with the need to protect Madagascar’s environment and considerable biodiversity, management training and participation of the beneficiary population in locust control. 6. Project Sustainability and Risks 6.1 Recurrent Expenditure 6.1.1 The project will generate total recurrent expenditure of UA 3.85 million (28% of the total project cost) throughout its duration (5 years). The expenditure comprise national staff salaries, transport allowance, maintenance, repair and operating cost as well as general expenses of the project management and coordination unit. The recurrent expenditure also includes the cost of hiring aircraft during locust invasion. Throughout the project duration, the Government will mostly cater for national staff salaries and part of the general expenses to the tune of UA 1.48 million. The Bank will contribute UA 2.42 million under the “other expenditure” chapter. 6.1.2 On project completion, the CNA ordinary budget will take the recurrent expenditure into account. Such expenditure will significantly reduce as the preventive locust control measures are effectively put in place. For instance, the frequent hiring of aircraft which takes up a considerable amount of the recurrent budget will reduce, with a corresponding effect on CNA’s overall recurrent expenditure. Furthermore, during the project implementation phase, recurrent expenditure will fall over time (UA 0.88 million to UA 0.62 million), i.e. a 30% decline. The local beneficiary population will participate by way of labour, locust monitoring, project supervision and project infrastructure maintenance. 6.2 Project Sustainability 6.2.1 The purpose of the project is to set up an adequate permanent locust monitoring system. With a view to initiating sustainable action, the project took a number of precautions: (i) training of the beneficiary population and organizing them into village locust control brigades; (ii) strengthening FOFIFA and CNA institutional capacity through a major national management staff training programme; (iii) establishment of a special locust control fund; and (iv) gradual transfer to the State and the beneficiary population of all recurrent expenditure financing prior to project completion. Malagasy managers trained within the project framework will be capable of designing and implementing a locust control programme. 6.2.2 Among assets to sustain project action beyond the project life are: a better structured locust control department, a locust monitoring network covering all the outbreak area and run by workers and well-trained representatives of the beneficiary population, the existence of residual products for the barrier treatment of larva bands (which could adequately replace Dieldrin whose

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withdrawal from the list of approved products was a major constraint to the effectiveness of barrier treatment). 6.2.3 Another guarantee for project sustainability include the Government’s bearing the recurrent expenditure (through CNA’s budget), strengthening of the national capacity through training, use of biological control methods, active participation of the beneficiary population in maintenance, observation and alert. 6.3 Major Risks and Accommodating Measures 6.3.1 The reduction during the remission period of resources assigned to locust control and lack of continuity in locust control activities beyond external financing constitutes a handicap. To overcome that obstacle and ensure the sustainability of project activities, provision has been made for: (i) beneficiary participation, organized into village locust spotting and control teams; (ii) establishment of national and provincial locust control follow-up and steering committees; and (iii) Government commitment to include the project in the PIP and an annual budget to cover the recurrent expenditure during and after the implementation period. 6.3.2 The selection and retention of competent locust control staff will also be important if the project objectives are to be met. The project plans to motivate staff and ensure their retention by: (i) evaluating and possibly increasing their field allowance; (ii) improving working conditions and the work setting (rehabilitation of offices and living quarters, provision of adequate means of transport, etc.); (iii) job security (more indefinite term contracts); (iv) organization of regular and frequent training and refresher courses. 6.3.3 Moreover, with regard to locust monitoring, owing to budgetary constraints there is a tendency to question the need for maintaining a preventive monitoring and control system (seen as an unnecessary waste of resources). Such risk could hamper project sustainability. The Ministry of Agriculture, and by extension the Government of Madagascar, should support the project and allocate it the necessary budget to sustain its operations and performance. 6.3.4 Attainment of project objectives depends on participation by the beneficiaries and thorough implementation of project activities, some of which (research and training) will be provided by partners with whom agreements will be signed. The non-involvement of beneficiaries is another project risk. To minimize that risk, the project contains a programme to sensitize and train beneficiaries. From the start, the project used the participatory approach involving the people as partners, not mere recipients. Village spotting and treatment teams will be set up and equipped. Furthermore, with a view to mobilizing national resources, project follow-up and steering committees will supervise all project activities at the provincial and national levels. There are also plans to use competent staff to coordinate the field activities of various partners through most of the project life, especially the services of the three technical assistance workers. 7. Project Benefits 7.1 Economic and Financial Analysis 7.1.1 Project justification at the economic and financial level can only be contrasted against an inventory of the havoc that locust invasion wrecks on agriculture, livestock, bee farming and the environment. It is difficult to draw up such an inventory owing to lack of precise records with

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regard to the affected zones. Nonetheless, the damage is obvious. According to recent estimates by the Ministry of Agriculture and the WFP, locust attack is responsible for 3% of national agricultural production losses, all products combined (maize, paddy, cassava, beans, pasture, bee farming, etc.). Concerning cereals (maize and paddy) which are the hardest hit during locust attack and whose national production stands at 2 770 000, invasion losses are estimated at between 30 and 50%. Based on WHO report, damage amounts to FMG 45.9 billion or US $ 6.6 million – which would represent 1% of the agricultural GDP for the 1997 farming season (July 1996 to June 1997), i.e. 0.25% of the GDP total. 7.1.2 The project is also justified in view of its capacity to protect and/or improve the quality of rural production which is one of the foundations of the national food security and poverty reduction strategy. Locust control will contribute to reducing the country’s commercial deficit and enhance foreign exchange savings which Madagascar needs to sustain its balance of payments. Therefore, the project will not generate additional production but contribute to preserving the existing national agricultural production. In view of the particular nature of the project, the usual calculation of the financial and economic rate of return does not apply. The project’s qualitative benefits can be judged through its social impact as described in paragraph 7.2 below. 7.2 Social Impact Analysis 7.2.1 Both women and men participate in agricultural activities. Twenty per cent (20%) of farm operators or allottees are women. Given their dominance in the food crop sector, women will be the principal beneficiaries in terms of nutrition and added income, crop and harvest protection. Women will also be closely associated with the project implementation. They will be inducted into the project provincial coordination committees and the village locust control teams. In that connection, the project will offer supervision and training to women. 7.2.2 In many ways, the project will contribute to Government poverty reduction efforts. It will protect agricultural production. Annual losses attributable to locust and mostly affecting cereals is estimated at 800 000 to 1 300 000 tonnes. The project will also help to strengthen food security and reduce poverty by eliminating recurring food shortage that usually affects Madagascar’s South, as well as generate income thanks to the marketing of agricultural production that would have been lost otherwise. Furthermore, since on average 10% of the construction cost and 5% of the maintenance cost represent labour expenditure, the project will create jobs equivalent to nearly FMG 540 million during the locust control infrastructure construction and rehabilitation period, and between FMG 3 to 6 million from maintenance work.. 7.2.3 Hence, it is understandable that the project production is indirectly estimated on the basis of rural sector production that would be destroyed in a no-project situation. The impact analysis compares the no-project and project situations. 8 CONCLUSION AND RECOMMENDATIONS 8.1 Conclusion 8.1.1 As in most of Africa, poverty is the most acute problem facing Madagascar, especially in the rural area. The Preventive Locust Control Project falls within the general context of food security and poverty reduction through crop protection. Hence, the PLCP is a priority operation

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for agricultural development. Efforts by the Malagasy Government to contain the current locust invasion and prevent future ones should be supported and encouraged. The protection of the considerable agricultural production potential through implementation of the project under consideration will undoubtedly contribute to improving the people’s socio-economic well-being and reduce poverty. Thus, by targeting small swarms of locusts using the preventive control method, the quantity of chemical products used will be reduced. In that manner, the project will contribute to environmental protection. 8.1.2 The project falls within the context of Bank Group agricultural and rural sector development policy and the ARDP framework (the Government’s referential frame); both programmes aim, among other things, at strengthening national institutional capacities and rural cooperatives, enhancing production with a view to poverty reduction and food security. 8.2 Recommendations and Loan Conditions

In the light of the foregoing, it is recommended that the Government of Madagascar be extended a grant of UA 1.29 million from the Technical Assistance Fund (TAF) and a loan not exceeding UA 5.78 million, i.e. a total Bank financial assistance of UA 7.07 million to the Government of Madagascar to implement the Preventive Locust Control Project. Entry into force of the loan will be subject to fulfillment of the following conditions: A. Conditions Precedent to Entry into Force of the Grant and Loan

(i) Show proof to the Fund of opening a special account in an acceptable commercial bank into which the project working capital will be paid;

(ii) Show proof to the Fund of the establishment of the Project Coordination Unit

within the CNA;

(iii) Show proof to the Fund of the establishment of the Project Follow-up and Steering Committee to be headed by the Secretary General in the Ministry of Agriculture, comprising the Director-General of Technical Operations in the Ministry of Agriculture, the Director of Crop Protection, the National Coordinator of Locust Control, the Director of Agriculture, the Director of FOFIFA, the Director of ONE, the representative of the Ministry of Finance, the heads of Fianarantsoa and Tulear ‘FARITANY’ special delegations and the Betioky-Sud sub-prefecture;

(iv) Show proof of appointing the project coordinator with qualifications and

experience that the Fund would have considered acceptable;

(v) Show proof to the Fund of financing agreements signed with other co-financiers or commitment from them to fund the project.

B. Other Conditions Moreover, the borrower shall:

Submit to the Fund not later than three months after the first disbursement the list

of staff to be assigned to the project.

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C. Special Commitments (i) Undertake to have the Project Implementation Unit sign a protocol of agreement

with agricultural research institutions (FOFIFA and the CABI/ICIPE consortium) for the implementation of the research and academic training component. The protocol of agreement shall be submitted to the Fund for prior approval.

(ii) Sign a protocol of agreement with FOFIFA and the CABI/ICIPE consortium to

implement the research and training component not later than six months following the date of first disbursement.

(iii) Put premises at the disposal of the project unit

ANNEX 1

MADAGASCAR

PREVENTIVE LOCUST COTROL PROJECT ANNEX I: Location of the Project Area

ANNEX 2

National Locust Control Centre (CNA)

Project Manager

Operational and Environmental Research Unit

Accounting Agency

Logistics Section

Follow-up/Evaluation Unit

Follow-up and Evaluation Unit

Management Secretariat

Tananarive Office

ANNEX II: CNA/PROJECT ORGANIZATION CHART

Technical

Department

Operations Section

Supervision and Training Section

Monitoring Section

Transmission Office

ZONE I Ankaraobato

ZONE II Tuléaar

ZONE III Ejeda

ZONE IV Ambovombe

ZONE V Ihosy

ZONE VI Betroka

CIRPV

PA - Manja - Ankaaraobato - Befandriana-Sud - Mandabe

PA - Tulear - Betioky - Beheloka - Benenitra

PA - Ejeda - Beahiste - Saodona - Ampanihy

PA - Ambovombe - Amboasary - Beloha - Tsivory

PA - Ihosy - Ranohira - Sakaraha - Ankazoabo - Beroroha

PA - Betroka - Ianakafy - Bekily

PA: Locust Control CIRPV: Crop Protection Circuit Outside the Outbreak Zone (Circonscription de la Protection des Végétauux hors Aire Grégarigène)

ANNEX 3

CIVIL ENG. WORKS BIDDING AND CONTRACT PLPAAugust2001 – March 2002

VEHICLE BIDDING AND CONTRACT PLPAJuly-October 2001.

CIVIL ENGINEERING WORKS IMPLEMEN. CONTR. FIRMSApril 2002-July 2003

SUPERVISION MISSION ADF/GOVT. 1 - 2 times/year

AUDIT ADF/GOVT. Yearly x x x x x x

MID-TERM REVIEW ADF/GOVT. Aug-03

COMPLETION REPORT ADF/GOVT. 2006 x

1 - 2 times 1 - 2 times 1 - 2 times 1 - 2 times 1 - 2 times 1 - 2 times

ANNEX 4 Page 1 of 3

Annex 4: SUMMARY OF BANK GROUP OPERATIONS (Amount in UA)

Status as at 29 December 2000

SECTOR/OPERATION Origin of

Funds

Approval Date.

Signature Date

Date of Effectivenes

s

Loan/Grant Amount

Amount Cancelled

Net Loan/Grant Amount Due

Amount Disbursed Amount Undisbursed

% Disbursed

Status

I/ AGRICULTURAL SECTOR 1. Irrigated Rice Farming Development ADF 16/08/77 23/09/77 02/03/79 5,618,417.00 985,259.50 4,633,157.50 4,633,157.50 100.00 Completed 2. Line of Credit to BTM ADF 23/03/79 17/05/79 28/02/81 4,605,260.00 633,559.32 3,971,700.68 3,971,700.68 100.00 Completed 3. Rice Farming Development, Phase II ADF 30/10/81 14/12/81 08/11/82 9,210,520.00 9,210,520.00 9,091,046.27 119,473.73 98.70 Completed

1/ 4. Emergency Assistance Programme ADF 07/09/82 22/09/82 04/08/82 10,748,677.00 1.28 10,748,675.72 10,748,675.72 100.00 Completed 5. Analaiva Sugar Project, Phase II ADB 16/03/83 11/04/83 16/12/83 16,730,000.00 268,309.44 16,461,690.56 16,461,690.56 100.00 Completed 6. Agro-Industrial Cashew Production Project ADB 15/12/83 08/03/84 19/09/84 9,950,000.00 1,345,929.56 8,604,070.44 8,604,070.44 100.00 Completed 7. Lower Betsiboka Project Preliminary Study TAA 19/11/84 15/12/84 08/07/85 300,263.00 138.35 300,124.65 300,124.65 100.00 Completed 8. Antalaha Oil Palm Agro-Industrial Complex ADB 12/12/84 05/09/85 01/01/85 4,650,000.00 1,999,375.91 2,650,624.09 2,650,624.09 100.00 ADF 5,553,944.00 332.30 5,553,611.70 5,553,611.70 100.00 Completed 9. Tsiribihina Irrigation Development Project, Phase I ADF 26/06/87 03/03/88 18/12/88 9,763,151.00 6,695.80 9,756,455.20 9,756,455.20 100.00 Completed 10. Lower Betsiboka Rice Farming Rehabilitation Project ADF 27/05/88 28/05/89 27/09/90 11,052,624.00 11,052,624.00 7,514,704.66 3,537,919.34 67.99 Ongoing 11. Fiherenana River Reg. Tulear Protection Study TAF 27/05/88 28/05/89 08/06/90 1,528,946.00 1,528,946.00 1,528,946.00 100.00 Completed 12. National Maize Project ADF 18/04/89 28/05/89 03/04/90 7,580,258.00 7,580,258.00 3,176,567.95 4,403,690.05 41.91 Ongoing 13. DIR Institution Building Project ADF 23/08/89 28/09/89 06/11/90 2,799,998.00 2,799,998.00 2,111,289.51 688,708.49 75.40 Completed TAF 23/08/89 28/09/89 06/11/90 2,256,577.00 62.43 2,256,514.57 2,256,514.57 100.00 14. DPRA Institution Building ADF 29/10/91 13/05/92 03/05/93 9,671,046.00 9,671,046.00 9,671,046.00 100.00 Loan

reallocated 15. Dairy Production Project ADF 29/10/92 13/05/92 27/04/94 7,230,258.00 258.00 7,230,000.00 7,230,000.00 100.00 Loan

reallocated 16. Environmental Programme Phase I ADF 24/08/92 01/12/93 09/08/93 11,052,624.00 2,624.00 11,050,000.00 11,050,000.00 100.00 Loan

reallocated 17. Andakana/Ikalamavony Plains Development Studies TAF 17/07/93 ` 680,000.00 680,000.00 Grant

cancelled 18. Mananara/Andronomera Plains Development Studies Rice II Balance Completed 19. Young Rural Entrepreneurs Programme ADF 12/11/98 17/12/98 05/10/99 7,350,000.00 7,350,000.00 143,709.21 7,206,290.79 Ongoing 20. Lower-Mangoky Scheme Rehabilitation Project ADF 20/10/99 17/12/99 28/09/99 10,000,000.00 10,000,000.00 10,000,000.00 Ongoing

SECTOR SUB-TOTAL 148,332,563.00 5,922,545.89 142,410,017.11 116,453,934.71 25,956,082.40 81.77 II/ TRANSPORT SECTOR 1. Bealanana – Antsahabe Road Project ADF 04/04/77 05/04/77 22/11/78 3,407,892.00 8,328.33 3,399,563.67 3,399,563.67 100.00 Completed

ANNEX 4 Page 2 of 3

NTF 23/02/77 05/04/77 31/12/79 6,650,000.00 779,318.51 5,870,681.49 5,870,681.49 100.00

2. Pangalanes Canal Development ADB 15/12/83 03/08/84 09/03/84 11,000,000.00 458,450.70 10,541,549.30 10,541,549.30 100.00 Completed (Northern Trunk) ADF 25/01/84 03/08/84 09/03/84 18,421,040.00 11,206.67 18,409,833.33 18,409,830.33 100.00 3. RN7 Rehabilitation Project ADB 22/04/83 03/08/84 11/12/84 19,660,000.00 1,499.74 19,658,500.26 19,658,500.26 100.00 Completed (Antananarivo-Ankaramena) ADF 11/10/83 03/08/84 14,736,832.00 38,370.45 14,698,461.55 14,698,461.55 100.00 4. Route Malaimbandy – Mahabo Road Development ADF 17/12/84 09/02/85 15,473,674.00 6,451,571.87 9,022,102.13 9,022,102.13 100.00 Completed 5. RN6 Rehabilitation Study TAA 03/12/85 05/09/85 18/02/86 663,157.00 134,379.92 528,777.08 528,777.08 100.00 Completed 6. Road Maintenance and Rehabilitation Project ADF 15/05/90 30/11/90 11/04/91 6,493,417.00 6,493,417.00 469,300.02 6,024,116.98 7.23 Ongoing NTF 6,000,000.00 6,000,000.00 121,285.15 5,878,714.85 2.02 7. Panagalanes Canal Development Study (Southern Trunk)

TAF 27/11/92 13/05/92 1,842,104.00 1,842,104.00 Grant cancelled

8. RN34/RN35/RN41 Studies TAF 02/12/98 17/12/98 1,340,000.00 1,340,000.00 1,340,000.00 Ongoing 9. RN6 and RN1 bis TAF 07/07/99 13/07/99 1,335,000.00 1,350,000.00 1,350,000.00 Ongoing 10. Project to Repair Damage Caused by Cyclones ADF 31/10/00 18/12/00 6,520,000.00 6,520,000.00 6,520,000.00 Ongoing

SECTOR SUB-TOTAL 113,543,116.00 9,725,230.19 103,832,885.81 82,720,050.98 21,112,831.83 79.67

III/ MULTISECTOR 1. Structural Adjustment Programme ADF 17/01/89 02/10/89 06/09/89 27,631,560.00 27,631,560.00 27,631,559.79 100.00 Completed 2. Social Action Project Within the SAP Framework ADF 26/02/91 05/09/91 13/08/93 1,381,578.00 1,578.00 1,380,000.00 1,380,000.00 100.00 Loan

reallocated TAF 26/02/91 05/09/91 13/08/93 921,052.00 921,052.00 Grant

cancelled 3. Structural Adjustment Programme II ADF 17/09/97 02/10/97 23/12/97 21,740,000.00 21,740,000.00 21,740,000.00 100.00 Completed 4. Emergency Assistance Programme/Gretelle ADF 16/07/97 05/08/97 05/10/97 6,235,000.00 6,235,000.00 6,135,690.92 99,309.08 98.41 Ongoing TAF 16/07/97 05/08/97 05/10/97 188,000.00 188,000.00 125,331.61 62,668.39 66.67 5. Supplementary Finance Mechanism 1998 ADF 02/12/98 17/12/98 1,418,000.00 1,418,000.00 1,418,000.00 100,00 Completed 6. Supplementary Finance Mechanism 1999 ADF 01/07/99 13/07/99 1,561,000.00 1,561,000.00 1,561,000.00 Completed 7. Structural Adjustment Programme III ADF 27/04/00 20/05/00 04/10/00 16,000,000.00 16,000,000.00 12,000,000.00 4,000,000.00 75.00 Ongoing

SECTOR SUB-TOTAL 77,076,190.00 922,630.00 76,153,560.00 71,991,582.32 4,161,977.47 94.53 IV SOCIAL SECTOR 1. Intermediate Health Infrastructure Strengthening Project ADF 31/03/81 05/11/81 19/11/81 7,368,416.00 7,368,416.00 7,368,416.00 100.00 Completed

2/ 2. Health Sector Pre-Investment Study TAA 29/10/86 02/04/87 19/11/87 580,263.00 262.93 580,000.07 580,000.07 100.00 Loan

reallocated 3. Institutional Building in the Health Sector TAA 29/10/86 02/04/87 19/11/87 727,631.08 727,631.00 Loan

cancelled

ANNEX 4 Page 3 of 3

4. Education Structure Reinforcement Project ADF 27/11/86 16/12/86 09/02/88 13,382,886.00 13,382,886.00 12,347,589.20 1,035,296.80 92.26 Completed 5. Education Project II ADF 15/12/92 03/03/93 5,213,154.00 5,213,154.00 Loan

cancelled TAF 15/12/92 03/03/93 939,473.00 939,473.00 Grant

cancelled 6. Education Project III ADF 02/12/98 17/12/98 08/11/00 16,000,000.00 16,000,000.00 16,000,000.00 Ongoing TAF 02/12/98 17/12/98 08/11/00 500,000.00 500,000.00 500,000.00 7. Health II ADF 07/07/99 13/07/99 15/05/00 12,440,000.00 12,440,000.00 12,440,000.00 Ongoing TAF 07/07/99 13/07/99 750,000.00 750,000.00 750,000.00 SECTOR SUB-TOTAL 57,901,823.08 6,880,520.93 51,021,302.07 20,296,005.27 30,725,296.80 39.78 V/ PUBLIC UTILITIES SECTOR 1. Emergency Infrastructure Repair TAA 19/11/84 12/05/84 06/05/85 1,040,789.00 263.65 1,040,525.35 1,040,525.35 100.00 Completed 2. South Drinking Water Supply Project ADF 22/12/86 02/04/87 09/02/88 7,184,206.00 2,082,566.26 5,101,639.74 5,101,639.74 100.00 Completed 3. DWS Feasibility and Engineering Study in Eight Centres TAF 18/12/89 08/02/90 30/06/92 855,657.00 855,657.00 822,309.81 33,347.19 96.10 Completed 4. Tulear Town Protection Project ADF 12/11/97 05/12/97 28/01/99 6,440,000.00 6,440,000.00 6,440,000.00 Ongoing SECTOR SUB-TOTAL 15,520,652.00 2,082,829.91 13,437,822.09 6,964,474.90 6,473,347.19 51.83 VI° INDUSTRY/BANKS 1. Mining Study and Works Programme on the Feasibility of a Fertilizer Production Project

ADF 25/05/92 08/12/92 19/03/93 5,710,522.00 90,729.78 5,619,792.22 5,619,792.22 100.00 Completed

TAF 25/05/92 08/12/92 19/03/95 921,052.00 921,052.00 Grant cancelled

SECTOR SUB-TOTAL 6,631,574.00 1,011,781.78 5,619,792.22 5,619,792.22 100.00 TOTAL 419,005,918.08 26,545,538.70 392,475,379.30 304,045,840.40 88,429,535.69 77.47 1/ Project completed but balance being used to the Mananara North and Andranomena Plains Development Study 2/ After completion, the balance of UA 4 275 676.88 was reallocated

ANNEX 5 Page 1 of 2

REPUBLIC OF MADAGASCAR PREVENTIVE LOCUST CONTROL PROJECT Project Cost Summary (FMG Million) (UA '000) % % total

base cost

L.C. F.E. Total L.C. F.E. Total F.E. I. Capital Expenditure A. CONSTRUCTION ET REHABILITATION Construction 1,532 3,575 5,107 174.47 407.09 581.55 70 5 Rehabilitation 199 464 663 22.65 52.85 75.50 70 1 Sub-total CONSTRUCTION AND REHABILITATION 1,731 4,039 5,770 197.12 459.94 657.05 70 5 B. VEHICULES ET EQUIPEMENTS Vehicles 504 4,535 5,039 57.38 516.44 573.82 90 5 Equipment - 35,788 35,788 - 4,075.54 4,075.54 100 34 Sub-total VEHICLES AND EQUIPMENT 504 40,323 40,827 57.38 4,591.98 4,649.36 99 38 C. FORMATION Academic training - 4,804 4,804 - 547.12 547.12 100 5 Professional training/seminars and workshops 1,499 2,298 3,798 170.74 261.75 432.49 61 4 Beneficiary training 1,581 - 1,581 180.00 - 180.00 - 1 Sub-total TRAINING 3,080 7,103 10,183 350.74 808.87 1,159.61 70 10 D. TECHNICAL ASSISTANCE, CONSULTANCY AND STUDIES Foreign technical assistance - 17,074 17,074 - 1,944.33 1,944.33 100 16 Local consultancy 3,788 - 3,788 431.35 - 431.35 - 4 Sub-total TECHINCAL ASSISTANCE, CONSULTANCY AND

STUDIES 3,788 17,074 20,861 431.35 1,944.33 2,375.68 82 20

Total capital expenditure 9,102 68,538 77,641 1,036.58 7,805.12 8,841.70 88 73II. Operating expenses A. SALARIES 8,107 - 8,107 923.23 - 923.23 - 8 B. TRANSPORT ALLOWANCE 3,275 - 3,275 372.94 - 372.94 - 3 C. MAINTENANCE, OPERATION AND REPAIRS Vehicles 2,023 2,023 4,047 230.42 230.42 460.85 50 4 Equipment 1,572 1,572 3,145 179.07 179.07 358.13 50 3 Buildings and construction 314 209 524 35.78 23.85 59.63 40 - Sub-total MAINTENANCE, OPERATION AND REPAIRS 3,910 3,805 7,715 445.27 433.34 878.61 49 7 D. GENERAL EXPENSES 2,590 1,110 3,700 294.95 126.41 421.35 30 3 E. HIRING EXPENSES 4,358 1,453 5,810 496.25 165.42 661.67 25 5Total operating expenses 22,240 6,368 28,608 2,532.65 725.17 3,257.82 22 27 Base cost 31,342 74,906 106,248 3,569.23 8,530.29 12,099.52 71 100 Contingencies 2,004 6,209 8,213 228.20 707.10 935.30 76 8 Inflation 3,896 3,781 7,678 443.73 430.61 874.34 49 7 Project total 37,242 84,897 122,139 4,241.16 9,668.00 13,909.15 70 115

Annex 5 Page 2 of 2

REPUBLIC OF MADAGASCAR PREVENTIVE LOCUST CONTROL PROJECT Project Cost Summary by Year (FMG Million) (UA '000) FE 2001 2002 2003 2004 2005 Total 2001 2002 2003 2004 2005 Total % Amount I. Capital Expenditure A. CONSTRUCTION AND REHABILITATION Construction 2,891 1,990 75 75 75 5,107 329.27 226.66 8.54 8.54 8.54 581.55 70.0 407.09 Rehabilitation 663 - - - - 663 75.50 - - - - 75.50 70.0 52.85 Sub-total CONSTRUCTION AND REHABILITATION 3,554 1,990 75 75 75 5,770 404.77 226.66 8.54 8.54 8.54 657.05 70.0 459.94 B. VEHICLES AND EQUIPMENT Vehicles 2,930 - 1,582 - 527 5,039 333.69 - 180.13 - 60.00 573.82 90.0 516.44 Equipment 17,167 6,626 4,528 4,039 3,428 35,788 1,954.92 754.55 515.70 459.96 390.41 4,075.54 100.0 4,075.54 Sub-total VEHICLES AND EQUIPMENTS 20,097 6,626 6,110 4,039 3,955 40,827 2,288.61 754.55 695.83 459.96 450.41 4,649.36 98.8 4,591.98 C. TRAINING Academic training 1,381 1,320 1,381 660 61 4,804 157.32 150.32 157.32 75.16 7.00 547.12 100.0 547.12 Professional training/seminars and workshops 918 672 918 593 698 3,798 104.50 76.50 104.50 67.50 79.50 432.49 60.5 261.75 Beneficiary training 351 351 351 263 263 1,581 40.00 40.00 40.00 30.00 30.00 180.00 - - Sub-total TRAINING 2,650 2,343 2,650 1,516 1,023 10,183 301.82 266.82 301.82 172.66 116.50 1,159.61 69.8 808.87 D. TECHNICAL ASSISTANCE, CONSULTANCY AND

STUDIES

Foreign technical assistance 4,365 4,365 3,399 2,728 2,216 17,074 497.11 497.11 387.10 310.61 252.41 1,944.33 100.0 1,944.33 Local consultancy 460 880 1,091 691 666 3,788 52.36 100.19 124.20 78.72 75.87 431.35 - - Sub-total TECHNICAL ASSISTANCE,

CONSULTANCY AND STUDIES 4,825 5,245 4,490 3,419 2,883 20,861 549.47 597.30 511.30 389.33 328.28 2,375.68 81.8 1,944.33

Total capital expenditure 31,126 16,204 13,325 9,049 7,936 77,641 3,544.67 1,845.32 1,517.49 1,030.49 903.73 8,841.70 88.3 7,805.12 II. Operating expenses A. SALARIES 1,986 1,939 1,810 1,186 1,186 8,107 226.14 220.79 206.09 135.11 135.11 923.23 - - B. TRANSPORT ALLOWANCE 655 655 655 655 655 3,275 74.59 74.59 74.59 74.59 74.59 372.94 - - C. MAINTENANCE, OPERATION AND REPAIRS Vehicles 675 675 873 873 952 4,047 76.86 76.86 99.37 99.37 108.37 460.85 50.0 230.42 Equipment 486 549 619 709 782 3,145 55.35 62.51 70.50 80.75 89.02 358.13 50.0 179.07 Buildings and construction 71 111 112 114 115 524 8.10 12.63 12.80 12.97 13.14 59.63 40.0 23.85 Sub-total MAINTENANCE, OPERATION AND

REPAIRS 1,232 1,335 1,604 1,696 1,849 7,715 140.31 152.00 182.68 193.09 210.54 878.61 49.3 433.34

D. GENERAL EXPENSES 740 740 740 740 740 3,700 84.27 84.27 84.27 84.27 84.27 421.35 30.0 126.41 E. HIRING EXPENSES 2,193 2,193 844 101 480 5,810 249.69 249.69 96.09 11.49 54.69 661.67 25.0 165.42 Total operating expenses 6,805 6,861 5,653 4,378 4,910 28,608 775.00 781.34 643.72 498.56 559.20 3,257.82 22.3 725.17 Base cost 37,932 23,065 18,978 13,427 12,846 106,248 4,319.67 2,626.66 2,161.22 1,529.05 1,462.93 12,099.52 70.5 8,530.29 Contingencies 3,178 1,688 1,375 999 973 8,213 361.88 192.21 156.63 113.75 110.83 935.30 75.6 707.10 Inflation 620 1,245 1,747 1,768 2,297 7,678 70.55 141.76 198.99 201.39 261.64 874.34 49.3 430.61 Project total 41,729 25,998 22,101 16,194 16,117 122,139 4,752.10 2,960.63 2,516.84 1,844.18 1,835.40 13,909.15 69.5 9,668.00 Taxes - - - - - - - - - - - - - - Foreign Exchange 33,064 17,349 14,436 10,458 9,589 84,897 3,765.27 1,975.71 1,644.02 1,191.00 1,092.00 9,668.00 - -

Annex

REPUBLIC OF MADAGASCAR

PREVENTIVE LOCUST CONTROL PROJECT CORRIGENDUM

1. PROJECT BRIEF

Paragraph. 7: TOTAL PROJECT COST : UA 10.44 million (i) Foreign Exchange UA 6.69 million (ii) Local Currency UA 3.75 million

Paragraph. 8. ADF FINANCING : UA 5.76 million Paragraph. 9: TAF FINANCING : UA 1.16 Paragraph. 10: OTHER SOURCES OF FINANCING

Malagasy Government : UA 1.09 million Beneficiaries : UA 0.02 million FAC : UA 0.83 million EU : UA 1.56 million

Paragraph. 11: ESTIMATED STARTING DATE OF PROJECT

May 2001, for a 5-year duration

Paragraph. 12: PROCUREMENT OF GOODS, WORKS AND SERVICES Procurement of vehicles and motorcycles will be through the UN Purchasing Agency

(IAPSO)

2. EXECUTIVE SUMMARY

Purpose of the Loan The ADF/TAF loan amounting to UA 6.92 million representing 66.3% of the total project cost will be used to finance 67.5% of the foreign exchange cost (UA 4.51 million) and 64.2% of the local currency cost (UA 2.41 million)

Project Cost The total project cost excluding taxes and customs duties is estimated at UA 10.44

million (FMG 91,678 million) of which UA 6.69 million is in foreign exchange (FMG 58,709 million) and UA 3.75 million in local currency (FMG 32,969 million)

2

Source of Finance Paragraph. 2: the total amount of the ADF/TAF contribution which amounts to UA 6.92

million representing 66.3% of the total cost will be used to cover 67.5% of foreign exchange costs and 64.2% of local currency costs. The contribution by FAC will amount to UA 0.84 million and will be used to finance part of the costs of rehabilitation of locust warning facilities and the study on the updating of biotic knowledge. Contribution by the European Union will amount to UA 1.58 million and will be used to finance a significant portion of vehicles and equipment. Contribution by beneficiaries amounting to UA 0.02 million will represent the participation of communities in the construction, rehabilitation and maintenance of project facilities. Contribution by the Malagasy Government of UA 1.09 million representing 10.5% of the total project cost will serve to finance part of the project operating costs, notably staff wages

Project Implementation

Paragraph 5: the project will be monitored and managed by the CAN Board of Directors. Conclusion and Recommendations

Paragraph 3: In view of the foregoing, it is recommended that a grant amounting to UA 1.16 million from the Technical Assistance Fund (TAF) and an ADF loan not exceeding UA 5.76 million, that is a total financial assistance amounting to UA 6.92 million by the Bank be granted the Government of Madagascar for the implementation of the project as described in this report.

1. INTRODUCTION 1.1 Origin and History of the Project

1.1.6 the Project was appraised in 1998 and submitted to the Board for consideration in January 1999. The project, initially classified as category II, was reclassified as category I, and therefore requires an Environmental Impact Study (EIS). In view of the delay in the preparation of the EIS and the summary for the Board's information, it was not submitted to the ADF in 1999 as scheduled. It was therefore decided to undertake a re-appraisal mission in May 2000. The data of the report were then updated, with the Malagasy authorities during a Bank's mission in February 2001.

2. THE AGRICULTURAL SECTOR Directorate in Charge of Plant Protection 2.4.2 The last sentence should read as follows: Locust control is the responsibility of the CAN which has an outpost in Antananarivo 4. THE PROJECT 4.5.12 . Change the last sentence to: To this end fellowships have been earmarked for long-term training.

3

4.9 Project Cost

4.9 Project Costs 4.9.1 The total project cost excluding taxes and customs duties is estimated at FGM 91,677 million, that is UA 10.44 million. This cost is broken down into FMG 58.709 million in foreign exchange, that is UA 6.69 million, and FMG 32,968 million in local currency, that is UA 3.75 million. Tables 4.1 and 4.2 below summarize the costs by component and by category of expenditures. The detailed project costs are given the annex.

Table 4.1: Summary of the project cost estimates by component (FMG Million) (UA'000)

% % COMPOSNENT L.C F.E. Total LC. F.E. Total F.E. total A. LOCUST SURVEILLANCE 18,626 35,197 53,823 2.121.15 4.008.27 6,129.42 65 67 B. RESEARCH / TRAINING 2,346 10,864 13,210 267.20 1.237.15 1.504.35 82 17 C. PROJECT MANAGEMENT AND

COORDINATION 6,844 5,901 12.745 779.41 672.00 1.451.41 46 16

Total Base Cost 27,816 51,962 79,778 3.167.76 5.917.42 9.085.18 65 100 Physical Contingencies 1,786 4,298 6,084 203.37 489.43 692.80 71 8 Price Escalation 3,366 2,449 5,815 383.37 278.93 662.30 42 7 Total Project Cost 32,968 58,709 91,677 3.754.50 6.685.78 10.440.28 64 115

Table 4.2: Summary of Cost Estimates by Category

(FMG Million) (UA Thousand) % CATEGORY L.C. F.E. Total L.C F.E. Total F.E. total I. Investment Expenditure A. CONSTRUCTION AND REHABILITATION 2,698 6,294 8,992 307.19 716.78 1,023.97 70 11 B. VEHICLES AND EQUIPEMENT 417 24,119 24,536 47.49 2.746.64 2,793.13 98 31 C. TRAINING/RESEARCH 4,012 4,891 8,903 456.83 556.94 1,013.77 55 11 D. TECHNICAL ASSISTANCE,

CONSULTANCY & STUDIES 1,290 11,625 12,915 146.95 1,323.87 1,470.82 90 16

Sub-total 8,417 46,929 55,346 958.46 5,344.23 6,302.69 85 69 II. Operating Expenses E. WAGES 6,982 - 6,982 795,14 - 795.14 - 9 F. TRAVELLING ALLOWANCES 3,275 - 3,275 372,94 - 372.94 - 4 G.MAINTENANCE, OPERATING

& REPIRS 2,860 2,756 5,616 325,75 313.82 639.57 49 7

H. OVERHEADS 6,283 2,278 8,561 715.47 259.37 974.84 27 5 Sub-total 19,400 5,034 24,434 2,209.30 573.19 2,782.49 21 31

Total base cost 27.816 51.962 79,778 3,167.76 5,917.42 9,085.18 65 100 Physical Contingencies 1,786 4,298 6,084 203.37 489.43 692.80 71 8 Price Escalation 3,366 2,449 5,815 383.37 278.93 662.30 42 7 Total 32.968 58.709 91,677 3,754.50 6,685.78 10,440.28 64 115 4.9.2 The costs were estimated on the basis of prices in force in the country in August 2000. A 10% provision was applied as physical contingencies on all the base costs with the exception of those relating to the wages of national staff, technical assistance, bonuses and benefits. Regarding price escalation, an annual provision of 5% for local currency costs and 2.5% for those in foreign exchange was applied to all the components. The total amount corresponding to physical contingencies and price escalation is UA 1.35 million, that is 15.0 % of the total project cost.

4

4.10 Sources of Finance and Schedule of Expenditures 4.10.1 The project will be financed by the ADF, the TAF, European Union, the French Cooperation Agency and (FAC), the Malagasy Republic and the beneficiaries, in accordance with Tables 4.3 and 4.4 above:

Table 4.3 Sources of Financing Thousands of UA Source F.E. L.C. Total % of Total ADF 3,895.61 1,866.76 5,762.37 55.2 TAF 619.04 542.14 1,161.18 11.1 EU 1,519.84 40.92 1,560.76 15.0 FAC 651.28 184.64 835.92 8.0 BENEFICIARES - 24.74 24.74 0.2 GOVERNMENT 1,095.31 1,095.31 10.5 Total 6,685.78 3,754.50 10,440.28 100.0

Table 4.3 (a): ADF Financing Plan Millions of UA Source F.E. L.C. Total % of

Total ADF 3,895.61 1,866.76 5,762.37 84.6 BENEFICIARIES - 24.74 24.74 0.4 GOVERNEMENT 1,018.64 1,018.64 15.0 Total 3,895.61 2,910.14 6,805.75 100.0

Table 4.3 (b): TAF Financing Plan Millions of UA Source F.E. L.C. Total % of

Total TAF 619.04 542.14 1,161.18 94 GOVERNMENT 76.67 76.67 6 Total 619.04 618.81 1,237.85 100

5

Table 4.4: Sources of Financing by Category

(in 000 UA)

Category ADF TAF UA FAC GVT BEN TOTAL Investments Constructions & Rehabilitation Vehicles Equipment Training . Tech. Ass.; Consultancy & Studies

489.29 150.88 1,486.51 - 1,439.82

- - - 1,161.18 -

- 393.50 1,167.26 - -

652.05 - - - 183.87

- - - 76.67 7.19

22.75 - - - -

1,164.08 544.38 2,653.77 1,237.85 1,630.88

S/total 3,566.49 1,161.18 1,560.73 835.92 83.86 22.75 7,230.95 Operating Cost Wages Travelling Allowances Maintenance; Operating Cost & Repairs Overheads

30.07 443.58 769.25 952.98

-

831.55 6.09 173.82

- 1.99

861.62 443.58 777.34 1,126

S/Total 2,195.88 - - - 1,011.46 1.99 3,209.33 Total 5,762.37 1,161.18 1,56.73 835,92 1095.22 24.74 10,440.28 4.10.2 The ADF financing amounting to UA 5.76 million that is, 55.2 % of the total project cost, will be used to finance a part of the construction and rehabilitation of buildings; part of the vehicles and equipment, part of the technical assistance and part of the operating cost of the project. The TAF financing of UA 1.16 million, that is 11.1 % of the total project cost will be used to finance the training component of the project. The FAC's share of the total project cost (UA 0.84 million, that is 8.0 % of the total project cost), will be used to finance part of the construction and rehabilitation works and the « Biotope ». study. The contribution of the European Union (UA 1.56 million, that is 15% of the total project cost) will be used to finance a greater portion of vehicle and equipment component. This financing is already in use. The contribution by beneficiaries (UA 0.02 million, that is 0.2 % of the total project cost) will be essentially made up of contribution in kind by the latter in the construction, rehabilitation and maintenance works for the project facilities. Lastly, the share of the Government (UA 1.09 million; that is 10.5 % of the project cost) will be used to finance part of the operating cost, particularly the wages of the national staff. 4.10.3 The project expenses will be in accordance with the expenditure schedule indicated in the tables below (including provisions for physical contingencies and price escalation).

6

Table 4.5: Schedule of Expenditure by Component (In thousands of UA)

Table 4.5: Schedule of Expenditure by Component (in Thousands of UA)

2001 2002 2003 2004 2005 Total A. LOCUST MONITORING 2,652.14 1,695.91 1,058.27 1846.97 794.40 7,047;69B. RESEARCH /TRAINING 564.52 282.48 331.05 271.08 260.30 1,709;42C. MANGEMENT AND COORDIN.

539.13 394.52 307.52 211.27 230.73 1,683;17

TOTAL 3.755.79 2,372.91 1,696.84 1,329.32 1,285.43 10,440.28

Table 4.6: Schedule of Expenditures by Financing Source (In Thousands of UA)

Source of Financing/Year 2001 2002 2003 2004 2005 Total

ADF 2,052.81 1,363.72 946.47 666.68 732.70 5,762.38 TAF 253.72 210.04 274.94 207.30 215.17 1,161.18 EU 734.17 237.71 221.76 247.60 119.53 1,560.76 FAC 486.57 321.79 8.90 9.18 9.48 835.92 BENEFICIAIRIES 13.92 8.45 0.75 0,79 0.83 24.74 GOVERNMENT 214.60 231.20 244.03 197.79 207.69 1,095.32 Total 3,755.79 2372.91 1,696.85 1,329.32 1,285.40 10,440.28

5. PROJECT IMPLEMENTATION 5.2 Institutional Arrangements 5.2.4 The CNA Board of Directors will cater for the monitoring and management of the project. It will be responsible for approving the project work programme and budget. It could however associate any person whose skills it will deem useful in informing its decisions. The proof that the CAN Board of Directors has been appointed to cater for the monitoring and management of the project will be a loan condition.

7

5.4 Procurement Arrangements

Table 5.2: Procurement Arrangements

(in thousands of UA) Expenditure Category LCB LCB Other Shortlist Other

FinancieTotal

WORKS Constructions Rehabilitation

- 481.26 (481.26) 8.02 (8.02)

- - 598.41 76.38

1079.676(481.26)84.40 (8.02)

GOODS Vehicles Miscellaneous Equipment

1486.51 (1486.51)

-

150.88 (150.88)

- 393.50 1167.26

544.38 (150.88)2653.77(1486.51)

TRAINING Academic Training Vocational Training. (Sem.& Training of Beneficiaries

- -

- 122.08 (122.08) 542.38 (542.38) 496.72 (496.72)

30.37 46.30

122.08 (122.08)572.75 (542.38)543.02 (496.72)

TECHNICAL ASSISTANCE &CONSULTANCY & STUDIES- Foreign. Tech. Ass - Local Shopping:

• External Auditing • Mid-Term Review

• Short-Term Consultancy

- - - 1273.12 (1273.12) 33.86 (33.86) 11.87 (11.87) 120.97 (120.97)

183.87

1456.99(1273.12) 118.94 (118.94)11.87 (11.87) 383.47 (355.79)

OPERATING COST Wages Travelling Allowance Maintenance and Repairs Overheads and sundry exp

- - - -

- - - -

30.07 (30.07) 443.58 (443.58) 769.25 (769.25) 952.98 (952.98)

- - - -

831.55 - 8.08 173.82

861.62 (30.07) 443.58 (443.58)777.33 (769.25)1126.80(952.98)

Total 1,486.51 (1,486.51)

489.28 (489.28)

2346.76 (2,346.76)

2,601.00 (2,601.00)

3,516.7310,440.28(6,923.55

N.B.: The figures in parentheses correspond to ADF and TAF financing

8

5.4.3 Works. These entail the construction and rehabilitation of a few service buildings and housing units in the locust control areas and posts estimated at UA 1.16 million. The portion to be financed by the Bank is estimated at UA 0.48 million. It is very unlikely these works would interest international bidders, in view of their dispersal in the project area, a reason for the type of procurement proposed being an LCB. The latter is in any case open to eligible foreign enterprises established in the country that would wish to participate in it. Moreover, there is a sufficient number of qualified local contractors capable of carrying out these works. 5.4.4 Goods. They comprise: (i) vehicles for a contract valued at UA 0.54 million of which the portion to be financed by the Bank amounts to UA 0.15 million and, (ii) various equipment for a contract valued at UA 2.65 million of which the portion to be financed by the Bank amounts to UA 1.48 million. The latter category of expenditures comprises several contracts according to the nature of the goods to be procured; the type of procurement proposed is LCB, whereas for vehicles and motorcycles procurement proposed will be through the IAPSO. Other goods and services will be by other types of procurement as indicated in table 5.3 below.

Table 5.3 Other Types of Procurement of Goods and Services

Procedure

Goods Maximum per

Contract (in 'UA million )

Maximum of Total (in UA million )

Local Shopping

Maintenance & Repairs Overheads (office supplies)

0;15 0;15

1.54 0.92

5.4.5 Training. This consists of higher academic training for executives, vocational training for field staff and training of beneficiaries. The total value of these services is estimated at UA 1.24 million of which the portion to be financed by the TAF amounts to UA 1.16 million and the rest will be financed by the Government (UA 0.17 million). The type of procurement proposed is by short-listing of training institutions in accordance with Bank rules of procedure. The beneficiaries will be trained by NGO's recruited following the international limited shopping for the higher academic training and local shopping at national level for vocational training and that of beneficiaries. 5.4.6 Technical assistance and consultancy services and studies. These services comprise foreign technical assistance (locust expert, locust expert/logistician) local consultancy (external auditing, mid-term review) and studies for a contract estimated at UA 1.63 million of which UA 1.44 million will be financed by the Bank. Procurement of these services will be by limited competitive bidding, in accordance with the Bank's rules of procedure for the use of consultants. The analysis of bids will be based on a comparison of technical proposals and the selection of the lowest bid. 5.4.7 Operating: Contracts on the maintenance and repairs of project facilities and equipment as well as office supplies (overheads) will be by local shopping in view of the existence of suppliers at the local level and the diversity of goods and equipment.

9

5.6 Monitoring-Evaluation: The initial phase is thus labelled: the Monitoring/Evaluation Department of the CNA will carry out monitoring-evaluation of the project. 6. CONCLUSIONS AND RECOMMENDATIONS

Conditions precedent to loan effectiveness

The third condition is replaced by:

(iii) show proof that the CAN Board of Directors has been appointed to ensure the monitoring and management of the project

Add the following condition (v) show proof to the Fund of the appointment of the specialist in plant protection

seconded to the CAN (a manager of Prospection Unit, a manager of Intervention Unit and a manager of Operational Unit); an agro-economist responsible for the monitoring-evaluation of the project, a logistician and an accountant; the qualifications and experiences of this staff must be acceptable to the Fund.

Other Conditions The borrower must also submit to the Fund, prior to the starting of training

activities, proof that it has taken the necessary steps to ensure that the beneficiaries of training abroad remain at the disposal of the locust control activities in Madagascar.

ANNEX II: CAN/PROJECT ORGANIZATION CHART National Locust Control Centre

(CNA)

Project Manager

Operational Reseaarch and Environmental Unit

Accounts Departmente

Logistic Section

Monitoring Evaluation

Monitoring and Evaluation Représentation

in Tananarive

Technical

Department

Intervention Section

Supervisory and Training Section

Surveillance Section

Transmission Office

ZONE I Ankaraobato

ZONE II Tuléaar

ZONE III Ejeda

ZONE IV Ambovombe

ZONE V Ihosy

ZONE VI Betroka

CIRPV

PA - Manja - Ankaaraobato - Befandriana-Sud - Mandabe

PA - Tulear - Betioky - Beheloka - Benenitra

PA - Ejeda - Beahiste - Saodona - Ampanihy

PA - Ambovombe - Amboasary - Beloha - Tsivory

PA - Ihosy - Ranohira - Sakaraha - Ankazoabo - Beroroha

PA - Betroka - Ianakafy - Bekily

PA: Antiacridien CIRPV: Circonscription de la Protection des Végétauux hors Aire Grégarigène

ANNEX 5-Page 1 of 2

REPUBLIQUE OF MADAGASCAR PREVENTIVE LOCUST CONTROL PROJECT Summary of Project Costs by Component % Total (FMG Million) (UA '000) % Base Local F.E Total L.C. F.E. Total F.E. Costs A. LOCUST SURVEILLANCE Prospection 7,084 10,375 17,459 806.72 1,181.51 1,988.23 59 22 Intervention 7,832 21,537 29,369 891.89 2,452.62 3,344.52 73 37 Support to Beneficiaries 3,710 3,285 6,996 422.54 374.14 796.68 47 9Sub-Total 18,626 35,197 53,824 2,121.15 4,008.27 6,129.43 65 67B. RESEARCH / TRAINING 2,346 10,864 13,210 267.20 1,237.15 1,504.35 82 17C. PROJECT MANAGEMENT AND COORDINATION

6,844 5,901 12,745 779.41 672.00 1,451.40 46 16

27,817 51,962 79,779 3,167.76 5,917.42 9,085.18 65 100 Physical Contingencies 1,786 4,298 6,084 203.37 489.43 692.80 71 8 Price Escalation 3,366 2,449 5,816 383.37 278.93 662.30 42 7 TOTAL 32,969 58,709 91,678 3,754.51 6,685.78 10,440.28 64 115

ANNEX 5 Page 2 of 2 REPUBLIC OF MADAGASCAR PROJET DE LUTTE PREVENTIVE ANTI-ACRIDIENNE Summary of Costs by Component and by Year

Base Costs (FMG Million) Base Costs (UA '000) 2001 2002 2003 2004 2005 Total 2001 2002 2003 2004 2005 Total A. LOCUST SURVEILLANCE Prospection 7,490 3,691 2,514 2,213 1,552 17,459 852.98 420.27 286.28 251.97 176.73 1,988.23 Intervention 12,236 8,055 4,015 2,497 2,566 29,369 1,393.42 917.30 457.22 284.34 292.25 3,344.52 Support to Beneficiaries 1,401 1,400 1,399 1,398 1,398 6,996 159.50 159.44 159.36 159.19 159.19 796.68 Sub Total 21,127 13,146 7,928 6,107 5,516 53,824 2,405.90 1,497.01 902.86 695.49 628.16 6,129.43 B. RESEARCH / TRAINING 4,538 2,238 2,544 2,016 1,874 13,210 516.83 254.87 289.67 229.59 213.39 1,504.35 C. PROJECT MANAGEMENT AND COORDINATION

4,322 3,075 2,300 1,490 1,559 12,745 492.21 350.12 261.90 169.62 177.54 1,451.40

29,987 18,458 12,772 9,613 8,949 79,779 3,414.94 2,102.01 1,454.43 1,094.71 1,019.10 9,085.18 Physical Contingencies 2,486 1,352 891 717 638 6,084 283.07 153.96 101.50 81.67 72.61 692.80 Price Escalation 507 1,027 1,237 1,343 1,701 5,816 57.79 116.94 140.91 152.94 193.72 662.30 TOTAL PROJET 32,980 20,837 14,900 11,673 11,288 91,678 3,755.79 2,372.90 1,696.84 1,329.32 1,285.43 10,440.28 T axes - - - - - - - - - - - - Devises 24,655 13,059 8,658 6,621 5,716 58,709 2,807.72 1,487.14 985.95 753.99 650.97 6,685.78