Document ofTHE WORLD BANK

Report No. 16384-MAU

STAFF APPRAISAL REPORT

ISLAMIC REPUBLIC OF MAURITANIA

RAINFED NATURAL RESOURCE MANAGEMENT PROJECT

May 22, 1997

Technical Agriculture 3Country Department 15Africa Region

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CURRENCY EQUIVALENT

Currency Unit = Ouguiya (UM)USSI.00 = UM 142 (January 1997)SDR = US$1.3637

SYSTEM OF WEIGHTS AND MEASURES: METRIC

Metric System

FISCAL YEAR OF BORROWER

January I - December 31

ABBREVIATIONS AND ACRONYMS'

ADC Association de Developpement Communautaire (Community development association)AEA (Projet d') Approvisionnement en Eau Aftout (Aflout water supply)AfDB African Development BankAMM Association des maires de Mauritanie (Mauritanian mayors' association)AP Association pastorale (Pastoral Cooperative Association, PCA)AVB Agent de vulgarisation de base (Field extension agent, Ag. Services project)BOP Bureau des organisations paysannes

(Rural organization office, in wilayas' MDRE Delegations)BVT (Projet de la) Barriere Verte du Trarza (Trarza green belt)BTU British Thermal UnitCAIE Centrale d'Approvisionnement en Intrants d'Elevage (vet. medicine supply organization)CA Compte d'Avance (Advance Account)CAS Country Assistance StrategyCESP Country environmental strategy paperCLD Comite local de developpement (District development committee, at Moughataa level)CNERV Centre national d 'etudes et de recherche veterinaire (National center of veterinary research)CP Comite de Pilotage (Project steering committe)CPR Charge de Programme Regional (Regional Program Assistant)CRD Comite Regional de Developpement (Regional Developpement committee, at wilaya level)CRP Coordinateur Regional de Projet (Regional Project Coordinator)CS Conseil de surveillance (Project Control Committee)CVN (Projet de la) Ceinture verte de Nouakchott (Nouakchott green belt project)DAP Direction des Affaires Politiques et des Libertes Publiques

(Political Affairs and Public Liberties Directorate of MIPT)DATAR Direction de l'Amenagement du Territoire (National land use planning, Min. of Interior)DEAR Direction de l 'Environnement et de I 'Amenagement Rural (Environment directorate, MDRE)DRAP Direction des Ressources Agricoles et Pastorales (Directorate of crops and livestock, MDRE)DRFV Direction de la Recherche, de la Formation et de la Vulgarisation

(Research, education and extension directorate, MDRE)ECPG Equipe centrale de planification et de gestion (Project's central planning and implementation team)EMAT Equipe mobile d'appui technique (Project's technical support team)ESMAP Energy Sector Management Assistance Program

In order to avoid confusion, the text uses French acronyms exclusively, except in the case of international institutionsand Bank procedures.

Vice-President: Jean-Louis SarbibCountry Director: Hasan TuluyTechnical Manager: Jean-Paul ChausseTask Team Leader: John Hall

FNAEM Federation Nationale des Agriculteurs et Eleveurs de Mauritanie(Mauritanian national federation of livestock raisers)

FNEM Federation Nationale de Eleveurs de Mauritanie (Mauritanian federation of livestock raisers)GIRNEM (Projet de) Gestion des Ressources Naturelles de l 'Est Mauritanien

(East Mauritania natural resource management project)GNAP Groupement National des Associations Pastorales (Pastoral associations national group)GRN Gestion des ressources naturelles( Natural Resource Management, NRM)GTC Groupement Technique Communautaire (Community technical group)GTIV Groupes techniques inter-villageois (Local technical committees)HRM Holistic resources managementHVPSE (Projet d') Hydraulique Villageoise et Pastorale du Sud-Est (Southwestern pastoral and

water supply project)IDB Islamic Development BankMP Manuel de Procedures (Implementation Manual)MARP Methode acceleree de recherche participative (Participative rural appraisal, PRA)MDRE Ministere du developpement rural et de 1 'environnement

(Ministry of Rural Development and Environment)MHE Ministere de l 'Hydraulique et de l 'Energie (Ministry of energy and water resources)MIPT Ministere de I 'Interieur, des postes et des telecommunications

(Ministry of Interior, Post and Telecommunications)NBP National bidding proceduresNEAP National Environmental Action ProgramONS Office National des Statistiques (National Statistical Institute)PAC Plan d'Amenagement Communautaire (Community management plan)PAFT Plan d'action desforets tropicales (FAO's Tropical Forest Action Plan)PAN (Projet de) Protection de I 'Aeroport de Nema (Nema Airport protection project)PDIAIM Projet de developpement integre de I 'agriculture irriguee de Mauritanie

(Mauritanian Integrated Development Program of Irrigated Agriculture)PDLCD Programme de lutte contre la desertification (Program of desertification control)PETF Plan d 'Execution Technique et Financiere (Technical and financial action plan)PIC Plan d'Investissement Communautaire (Community investment plan)PLEMVASP Projet de Lutte contre l 'Ensablement (sand dune protection project)PMLCD Plan Mauritanien de Lutte Contre la Desertification (Mauritanian plan to check desertification)POV Projet Operations Villageoises (Village operations project)PRADER Projet Regional d'Appui au Developpement Rural (Regional rural development support project)PRASRE Projet de Reboisement d'Agglomerations sur la Route de l 'Espoir

(Tree plantation project south of "Route de l'espoir")PSA Projet des Services Agricoles (Ag. services project)RPTES Review of Policies of Traditional Energy StrategySAC Schema d'Amenagement Communautaire (Community land use master plan)SED Strategie Energie Domestique (Domestic energy strategy)SOE Statements of ExpenditureSONADER Societe Nationale de developpement et d'equipement rural

(National society of rural equipment and development)UE Union Europeenne (European Union)UICN Union Internationale pour la conservation de la nature

(International union for the conservation of nature)UNCACEM Union Nationale des Caisses de Credit et d 'Epargne Mutuels

(National union of savings and loan organizations)UNDP United Nations Development ProgramUNSO United Nations Sudano-Sahelian Office

ISLAMIC REPUBLIC OF MAURITANIA

RAINFED NATURAL RESOURCE MANAGEMENT PROJECT

Table of Contents

Page No

I. BACKGROUND ........................................... I

A. The Country ........................................... .1B. The Economy ........................................... IC. The Rural Sector ............................................ 2D. The Environment ............................................ 5E. Institutions ............................................ 6F. Sectoral Issues and Strategy ............................................ 8

II. THE PROJECT ............................................ 11

A. Rationale and Objectives ........................................... 1 IB. Summary Description ........................................... 14C. Detailed Features ........................................... 14D. Project Costs ........................................... . 19E. Financing Plan ........................................... 20F. Procurement ........................................... 21G. Disbursement ........................................... . 24

iiI. PROJECT ORGANIZATION AND MANAGEMENT ....................................... 26

A. Project Organization ............................................ 26B. Project Implementation ........................................... 29C. Monitoring and Evaluation ........................................... 30D. Financial Management, Accounting and Auditing ..................................... 30E. Reporting, Supervision and Mid-Term Review ........................................... 32F. Environmental and Social Impacts ........................................... 33

IV. PROJECT BENEFITS, RISKS AND SUSTAINABILITY ........................................... 35

A. Project Benefits ........................................... 35B. Project Risks ........................................... 37C. Fiscal Impact of the Project ........................................... 38D. Project Sustainability ........................................... 38

V. AGREEMENTS REACHED AND RECOMMENDATIONS ........................................... 39

ANNEXES

1. List of Projects Related to Natural Resource Management, and Lessons Learned2. Implementation of Project's Activities3. Anticipated Cost of Activities4. Project Cost Summary5. Estimated Schedule of Disbursements of IDA Credit6. Project Institutional Set-Up7. Selection Criteria of Participating Communities8. Investment Choices and Economic Justification9. Project Implementation Schedule10. Project Logical Framework11. Key Performances Indicators12. Nature and Source of Consultant Services13. Map IBRD. 28452

ISLAMIC REPUBLIC OF MAURITANIARAINFED NATURAL RESOURCE MANAGEMENT PROJECT

Credit and Program SummaryBorrower: Islamic Republic of MauritaniaImplementing Agency: Ministry of Rural Development and Environment (MDRE)Beneficiaries: Farmers and herders (approximately 75,000 inhabitants) from 250

villages located in the rainfed area of 9 of Mauritania's 13 Regions.Povertv: Program of Targeted InterventionsCredit Amount: SDR 13.2 million (US$18.0 million equivalent)Terms: Standard IDA terms, with 40 years' maturity and 10 years grace

periodProject Description The project would be the first five-year time slice of a long term (20-

year) natural resource management program. The project has threecomponents: (i) allocation of funds for community investments; (ii)provision of technical support and strengthening of the institutionalenvironment; and (iii) establishment of a comprehensive trainingprogram. The result of the implementation of these threecomponents is expected to be: (a) the empowerment of organizedrural communities; and (b) the creation of an enabling institutionalframework. These results are, in turn, expected to have a positiveimpact on two major development-related phenomena, namely: (i)the rehabilitation of land, water and vegetation; and, consequently(ii) improved production, increased income and a better quality oflife for communities participating in the program.

Economic Rate of Return: Investment scenarios expected to provide 12%, 13% and 14% ERRfor pastoral, agro-pastoral and agro-sylvo-pastoral systems,respectively.

Benefits: The proposed project contains features that would increase crop andlivestock production, in addition to laying the groundwork for solvingother, more persistent, social and environmental problems in the ruralsector. At the village level, the project would: (i) preserve villagehabitat; (ii) improve subsistence production; and (iii) increasebeneficiary revenues. At the national level, the project would help to(i) retain people on the land, thus reducing rural outmigration; (ii)reduce environmental degradation over the medium to long terrn; (iii)improve the institutional environment, thus reducing social conflicts;and (iv) ensure more sustainable maintenance of rural infrastructures.

Risks: Risk factors which could hamper project implementation are: (i) theadministration's ability to implement this project; (ii) conflicts arisingamong potential beneficiaries; (iii) the availability of relevanttechnologies to be disseminated; and (iv) natural conditions (rainfall)

- 11 -

which could prevent environmental rehabilitation from taking place.Finally, risks associated with the project's ability to reduce povertyoverall include the persistence of traditional forms of socialorganization which could prevent the equitable distribution of projectbenefits to all segments of the population. Each of these issues hasbeen addressed by, respectively, (i) designing an effectiveinstitutional setup for the project; (ii) taking full advantage of theexisting legal framework; (iii) facilitating the exchange and extensionof appropriate technologies; and (iv) establishing droughtpreparedness contingency plans.

Project Financing Plan:Contributors US$ million UM million °IDA 18.0 2,556 69Beneficiaries 7.5 1,065 29Govemment 0.4 57 2Total 25.9 3,678 100

Estimated IDA Disbursements:

US$millionFY98 FY99 FY2000 FY2001 FY2002 FY2003

Annual 1.9 2.3 2.6 4.6 6.1 0.5Cumulative 1.9 4.2 6.8 11.4 17.5 18.0

Map: No. IBRD 28452

ISLAMIC REPUBLIC OF MAURITANIA

RAINFED NATURAL RESOURCE MANAGEMENT PROJECT

STAFF APPRAISAL REPORT

I. BACKGROUND

A. THE COUNTRY

1.01 The Islamic Republic of Mauritania covers a territory in the Western Sahara ofover one million km2, and consists largely of desert, except for its southern fringe. Itspopulation of 2.3 million, which is growing at an annual rate of 2.5 %, depends to a great extenton agriculture and stockraising for its livelihood. The prolonged droughts of the 1970s and early1980s have caused great social upheaval: the population, about two-thirds of which wasnomadic in 1965, has become largely sedentary and/or has moved to urban centers. More thanhalf the population now lives in cities (compared to 5% in 1960) and Mauritania has one of theworld's highest urban growth rates (6.9 % annually). In the countryside, the rural population hasmainly settled in the Senegal Valley (which is now home to about 30% of the total) and in therainfed zone adjoining it to the north (15% of the total). Only 10 % of the total populationremains nomadic. These large population shifts have put great stress on the limited land, othernatural resources and on Government services. This was a factor in the political unrest thatoccurred in the 1989-1992 period.

B. THE ECONOMY

1.02 Mauritania is a low-income country, with a per capita GNP estimated at US$460equivalent in 1995. Over two-thirds of the population depends on agriculture, livestock andfishing for a living; together, these activities account for about one third of GDP. Mauritania isalso an important iron ore producer and has rich fishing grounds; iron ore and fish products arethe mainstay (over 90%) of its exports.

1.03 Mauritania's economic development through the mid-1980s was uneven andmarked by major financial imbalances and highly interventionist government policies. Despiteinvestment rates as high as 36% of GDP in the early 1980s, the long-term rate of growthaveraged only 2%, which was slower than that of the population. Faced with a deepening crisis,the Govemment adopted an economic adjustment program in 1985, which improved macro-economic performance considerably: from 1985 to 1989, real GDP growth was 3.4%. Duringthis period, key reforms were enacted: price liberalization, abolishment of all import licenses andquotas, and privatization of rice processing and marketing. From 1989 to 1992, however, thecountry suffered a series of intemal shocks (unfavorable weather, institutional bottlenecks, theSenegal-Mauritania crisis of 1989, and the Persian Gulf crisis of 1990-91), which had a severe

-2 -

impact on economic and financial performance. Real GDP growth fell to 1.7% in 1992, and thepublic sector deficit (excluding grants and restructuring operations) doubled from 1.6% to 3.1%of GDP. To counteract these trends, the Government launched in 1992 a renewed adjustmentprogram that provided for a 27% devaluation of the Ouguiya (UM); liberalization of foreignexchange; reduction of inflation (from 10% in 1992 to 4.7% in 1996); and a reduction in thefiscal deficit (from over 3.1% in 1992 to 0.8% in 1995.) This has resulted in an annual GDPgrowth rate of 4.9% over the past four years (1993-96), a remarkable recovery from thestagnation of the three preceding years. The underlying strategy of the adjustment program, towhich the Government fully subscribes, has been (i) to create an environment conducive toprivate sector development as a basis for economic growth; (ii) to check public sector deficitsthrough structural reform of public enterprises; and (iii) to increase public sector efficiencythrough more decentralized decision-making and increased institutional capacity.

C. THE RURAL SECTOR

1.04 In an arid country where nearly 90% of the land area is desert (i.e., receives lessthan 150 mm of rainfall annually), the raising of drought-tolerant livestock (cattle, sheep, goatsand camels) is the activity best suited for survival. In Mauritania, it is the most importantagricultural occupation, accounting for about 80% of agricultural GDP. This percentage hasremained remarkably stable: during the drought years, when large numbers of animals died orwere slaughtered for lack of fodder, it declined to 74%, only to rise again to 81% in the betterrainfall years after 1985. By contrast, crop production contributes less than 20% to agriculturalGDP and fluctuates more, since it depends on rainfall. Over the past ten years, it has increasedoverall by only 0.6% per year, while ranging in individual years from a 41.3% decline (1990) to37.0% growth (1993) over the preceding year. Until the late 1970s, the country was self-sufficient in cereals and milk and a net exporter of meat. Subsequent droughts, as well as a shiftin demand by an increasingly urban populace towards wheat and rice at the expense of sorghumand millet, have made the country more dependent on food imports, including a decliningproportion of food aid.

The Resource Base

1.05 Cropping. The availability of water is the main determinant of agriculturalproduction in Mauritania. This factor limits the cultivable land area to about 0.5% of the total.Table 1 shows land potential, as distinct from its actual utilization. Only in the southeast of thecountry (Guidimaka and Hodh regions) is rainfall sufficient (450 - 550 mm. annually) to allowrainfed cropping; on average, about 120,000 ha are cropped here annually. Everywhere else,cropping depends on supplementary water supplies. The latter are used most extensively in floodrecession cropping (on residual soil moisture after flood waters have receded), which is practicedin the Senegal River Valley on about 35,000 ha, and water harvesting (on some 30,000 ha inbottomlands and behind retention dikes) in the area north of the Senegal Valley but south of the"Route de I 'Espoir", where rainfall ranges from 150 mm to 400 mm. annually. In all of thesesystems, sorghum and millet, sometimes in rotation with cowpeas, are the main crops. Finally,the Senegal Valley has some 19,000 fully irrigated hectares, almost all under rice. The area

-3 -

under irrigation has been increasing since private irrigation development was permitted fouryears ago.

1.06 Annual consumption of grains, the basis of the Mauritanian diet, is around300,000 tons a year. Of this, about 200,000 tons can be supplied by domestic producers in agood year: some 150,000 tons in the form of sorghum and millet, which are subsistence cropsmainly consumed on the farm; and about 50,000 tons as paddy, a cash crop sold in urbanmarkets.

1.07 Livestock raising. Mauritania's livestock herd is large, and grazes on almost 14million ha of sylvo-pastoral land, or 14% of the country's area (Table 1). The livestockpopulation breaks down into approximately eight million sheep and goats, 1.4 million cattle andone million camels. Annual meat production, which satisfies domestic demand, is estimated at60,000 tons per year, of which 50% is sheep and goat meat, 35% beef and 15% camel meat.Milk production does not currently meet the country's needs. Veterinary services are generallyavailable, but animal husbandry is largely traditional and productivity is low, since pasturelandshave been stagnating in productivity and declining in quality.

Table 1: Land potential in Mauritania (' 000 Ha)

Potential Potential as % Actual Usageof total

Cultivable land• under rainfed conditions 220 0.20 120. flood recession/harvesting 139 0.15 65. oases 6 --

. irrigable area 137 0.15 1 9Subtotal cultivable land 502 0.5 204

Rangelands 13,800 13.40Forest lands (gazetted) 48 --

Desert 88,719 86.10Total land area 103,069 100.0

1.08 The livestock industry has been undergoing great changes which, althoughpainful, have laid the groundwork for higher productivity growth and better security againstdroughts. First, the drought years have largely eliminated the purely nomadic system oftranshumance (except for camel herds), and those pastoralists who did not become city dwellershave largely settled in the southern fringe of the country, in or near the Senegal Valley. They arenow more likely to grow crops, and in the dry season will only trek short distances with theiranimals to watering points in the area. With increased settlement density in the southern areas,the competition for water resources and good pasture and cropland has increased. Thus, there isa more widely felt need for broader application of irrigation and water harvesting techniques forcropping, better maintenance of watering points, and pasture improvement technologies.Second, demographic shifts within the country have created an important urban market for meat

-4 -

and milk where little or none existed before. Hence, while livestock raising was largely forsubsistence in the past (with some live cattle exports to neighboring countries), it hasincreasingly become a commercial undertaking which is spurring the demand for productivity-and quality-improving technologies, as well as for more efficient marketing circuits.

1.09 Fuelwood Production. As the prime source of household energy, fuelwood isimportant in the Mauritanian economy, even in urban centers. Total wood resources, primarilyin the sylvo-pastoral steppes in the south and in the Senegal Valley, were tentatively estimated in1991 at 700,000 m3 per year, of which some 10% to 20% was considered accessible for cutting.

1.10 Several developments have put a severe strain on wood supplies. Successivedroughts have retarded growth, and even destroyed part of the resource. Increased cropping andgrazing in the area where most of the forest and bush are found have further exacerbated thistrend. Most importantly, the explosive growth of cities has pushed the demand for charcoal tosuch levels that forests (including gazetted forests closer to cities) have become depleted. Thesupply response to this growth in demand has consisted of little more than accelerated cutting ofexisting wood resources. Forest protection measures by the Government (in gazetted forests)have been relatively ineffective, and reforestation has so far been insignificant. Under theDomestic Energy Strategy (SED) launched by Government in 1990, incentives were created tosubstitute gas for fuelwood. This policy has been relatively successful, with gas consumptionincreasing from 9,000 tons in 1991 to 14,000 tons in 1995. But gas is considerably moreexpensive than charcoal per BTU, so the gas market will be limited to affluent urban consumersfor a long time to come. Therefore, this policy has not really been able to substantially reducecharcoal consumption or halt environmental degradation. In fact, the major charcoal-producingareas shifted from Rosso (200 km east of Nouakchott) during the 1980s, to Kaedi (450 km east ofNouakchott) during the early 1 990s, finally ending up in Selibabi (600 km east of Nouakchott) atpresent.

1.11 An important obstacle thus far to the development of a wood supply strategy hasbeen that forest and bush areas are considered "open" territory, where cutting, grazing andclearance for cropping can be carried out without interference. Typically, charcoal makers needonly a permit from the Regional Governor to cut wood, and villages with wood resources havehad little or no say in the exploitation of that resource. Under such conditions, there is noincentive to maintain or replant wood: charcoalers will simply move to other areas afterdepletion of the forest. It is now acknowledged that villagers should have a greater say in theexploitation of their wood resources. A legal framework exists for such a shift (para. 1.25), andthey should be helped to arrive at agreements with charcoalers ("contrats participatifs") in theinterest of more rational forest exploitation and the creation of rural wood markets.

Production Systems

1.12 Farming systems in Mauritania typically embrace each of the above-mentionedactivities (livestock raising, cropping and wood gathering), but their interdependence variesaccording to rainfall. In the drier areas of the rainfed zone, a pastoral production system willpredominate, in which stockraising provides the bulk of subsistence and monetary income, and

-5 -

cropping is marginal. Transhumance is still necessary under this system to provide sufficientfeed for the herd. In areas with somewhat more rainfall, agro-pastoral production systems arefound, in which cropping is more important (although seldom predominant). They have a higherdegree of sedentarization, and transhumance is practiced only over short distances. Finally, inthe most humid areas, where wood resources are still fairly abundant, a2ro-sylvo-pastoralproduction systems predominate. These are usually well integrated, as in flood-recession areaswhere dry season pastures are among the richest in the country. Even here, however, croppingseldom predominates unless full-scale irrigation is practiced (as in the Senegal Valley).

1.13 In addition to the poor natural endowment of the rural sector and the harshclimatic conditions, the constraints common to all production systems are: (i) the low level ofempowerment and the inadequate application of the existing legal framework, which preventrural communities from dealing effectively with the increased competition for land and waterresulting from population shifts; (ii) poor technical knowledge, on the part of both ruralpopulations and technical services, of relevant natural resource management technologies(especially in rangeland management) which would be economically replicable and technicallysustainable; and (iii) the fact that, even when the institutional environment is not an issue and thetechnology is available, these cannot be implemented for want of the required financialresources.

D. THE ENVIRONMENT

1.14 Fragmentary data on natural resources exists in Mauritania, but it is currentlyscattered among various ministries, project management units and NGOs, in addition to being ofvariable quality and reliability. There is considerable redundancy and confusion between thedata produced by different agencies. Topographic maps are often outdated or unavailable, andsome thematic maps are imprecise or inconsistent in their use of geographic place namnes. Also,there is a general lack of circulation and exchange of information at all levels in Mauritania, aproblem that severely compromises the quality of planning, monitoring and evaluation ofenvironment-related activities.

1.15 Land degradation is considered the major challenge to Mauritania's future. Thestages in the fight against desertification are closely linked to international and regionalinitiatives. Landmark documents and activities include: (i) the adoption of the PDLCD (Frenchacronym of the Program of Desertification Control) by the Council of Ministers in 1987; (ii) thepreparation, with support from ESMAP (Energy Sector Management Assistance Programn), of adomestic energy strategy (1990); (iii) the preparation of a Tropical Forest Action Plan (PAFT -

1990); (iv) the preparation of the PMLCD, or Multisectoral Desertification Control Program,based on the PAFT and the PDLCD (1991); (v) the Mauritanian Country EnvironmentalStrategy Paper (CESP), which identified major problem areas; (vi) Government's signature ofthe Convention on Desertification (1994); and (vii) the preparation of a National EnvironmentalAction Program (NEAP), begun in March 1995 and due to be finalized by the end of 1997.

1.16 The Country Environmental Strategy Paper of 1994 identified three majorproblem areas: (i) the absence of sustainable, equitable and efficient management of natural

-6 -

resources; (ii) the overfishing of coastal waters, which is depleting a formerly rich resource base;and (iii) the rapid emergence of water supply and sanitation problems in urban areas. It cites fournatural resource management issues: the development of irrigation in the Senegal River Valley;land degradation in the rainfed zone, especially sand dune encroachment and deforestation;problems associated with pastoralism; and overexploitation of water in the oases of the desertzone.

1.17 To a large extent, the natural resource management issues developed in the CESPcorrespond to the analysis and issues outlined in the preceding paragraphs. Increasingly,however, it is possible to discern strategies that would help alleviate these problems and diminishtheir impact over the medium to long term. Land degradation could be addressed by betterresource management using the "gestion de terroir" or community-based natural resourcemanagement approach, which is one of the goals of the proposed project as far as the rainfedzone is concerned. Similarly, techniques exist to improve pasture management even underconditions of intense grazing pressure. Such techniques have been successfully tried in otherparts of the Sahel and would be introduced into Mauritania under the proposed project. Finally,participatory approaches to forest exploitation, also to be introduced under the project, wouldcreate incentives for better preservation of existing wood resources, permitting their exploitationat sustainable levels.

E. INSTITUTIONS

Territorial Organization

1.18 Administratively, Mauritania is divided into: (i) 13 regions (wilaya), each ofwhich is under the authority of a governor (wali) assisted by two or three assistant governors(wali moucaid); (ii) 53 districts (moughataa) directed by a prefect (hakem); (iii) 205municipalities (communes), of which 163 are rural. The mandate and attributions of theterritorial administration are defined by order No. 90.002 of January 31, 1990. This whole set-upis under the purview of the Ministry of the Interior, Post and Telecommunications (MIPT) and inparticular of its directorates: Regional Planning and Interventions (DATAR), LocalCommunities, and Political Affairs and Public Liberties. Civil society, on the other hand, isorganized at the municipal level, where each commune (including village communities withintheir boundaries) has the status of a decentralized territorial collectivity with its administrationand local management under the responsibility of an elected mayor. Municipal managementinvolves local fiscal revenues and budgeting under the control of the Ministry of Finance, buthuman and material resources are extremely scarce in rural communes.

Government Services in the Rural Sector

1.19 The Ministry of Rural Development and Environment (MDRE) is the agencyresponsible for the development of livestock and agriculture, as well as for environmentalprotection. The MDRE was reorganized in March 1993 by decree No. 22-93 so as to better useits resources at field level. It now has three technical directorates: DRAP (agriculture andlivestock), DRFV (research education and extension) and DEAR (forestry and environment),

-7 -

together with a Planning Unit (Cellule de Planification) at cabinet level. In the field, RegionalDelegations of the MDRE have been established in each wilaya, under the authority of the wali.Taken together, the public structures dealing with rural development, excluding SONADER,employed nearly 1,200 agents by late 1993, of which 176 were senior staff and technicians, and700 lower-level staff divided amongst the regional delegations. Aside from the Banc D'ArguinNational Park, a public entity under the Govermment's General Secretariat, the MDREsupervises public entities (in particular SONADER, CNERV and the Diawling National Park) aswell as two semi-public enterprises: UNCACEM and CAIE.

1.20 MDRE's operations are hampered by: (i) the inadequate number of qualified fieldstaff; (ii) an operating budget that has been stagnant since 1988, with only 60% of the Ministry'sresources funneled to the regions; and (iii) difficulties in personnel management when it comesto responding to demands from the rural sector.

Producer's Groups. Associations and Coops

1.21 Rural entities wishing to organize themselves in Mauritania have two options: (i)cooperative association under the Cooperative Law of January 1993, and under the authority ofthe Agriculture and Livestock Directory (DRAP) of the Ministry of Rural Development(MDRE); and (ii) community association under the Law of June 1964, and under the authority ofthe Directorate of Political Affairs and Public Liberties of the Ministry of Interior.

1.22 Thirty-nine pastoral "cooperative associations" (APs) have been established underthe IDA-funded Livestock II project in the 8 wilayas south of the "Route de l'Espoir." TheseAPs formally represent 660,000 people living in 1,100 villages. Although the new Law hasboosted the number of rural coops, they have not been very effective so far and, according to asurvey performed during this project's preparation, village investments carried out by now-completed projects have shown a poor level of sustainability. The reasons for such poorperformance include: (i) the weak skills of the organizations' leaders, which prevent them frommanaging funds properly and from diversifying activities (input supply and marketing ofproduction); and (ii) the organizations' lack of access, even when they enjoy legal recognition, tothe financial resources required to start a new activity. Three major agriculture and herders'associations are represented at the national level: the GNAP (representing pastoral cooperativeassociations), the FNAEM, and the FNEM.

1.23 Because it is not of a sectoral nature and can cover different types of activities, the"community association" option has been chosen by many programs dealing with agriculturaland non-agricultural activities, such as the management of solar pumps (UE), the construction ofclassrooms (IDA), rural pharmacies, transportation, etc. In addition, when such associations areawarded the "public interest" status (reconnaissance d'interet public), they may manage publicfunds and can be granted some authority in managing and protecting Government-ownedresources (water points, forests). Since they are managed under the Ministry of Interior, suchtypes of organizations have better access to regional and local administrations, and are bettersuited to dealing with community-based natural resource management.

-8 -

Land Tenure

1.24 The current land tenure legislation has emerged mainly in response to conditionsspecific to the irrigated areas (Senegal River Valley), and needs further refinement and officialmechanisms (i.e., decrees) providing for its application to rainfed areas. It offers some scope forensuring secure tenure for the affected communities: the concept of harim. or vital space,borrowed from Islamic law (sharia), was introduced under the law dealing with settlements. Ithas already been broadened by the addition of the notion of land reserve, which is used in tenureregularization efforts in the Senegal River Valley (Trarza). The notion of the indivisibilitv ofcollective rights in a cooperative context opens up another possible avenue for the devolution ofstate-held land rights, according to which these collective rights would be acknowledged asbelonging exclusively to a defined group, without there being a possibility (for ecological orsocial reasons) of a drift towards the regime of concession rurale, or private property. TheState's option to grant leases of public lands and publicly created infrastructures offers anotherpossibility for the devolution of public lands to local communities, cooperatives or associations.

1.25 A study was carried out during project preparation to assess the relevance of thelegislative framework. Its conclusions, which were confirmed by the Government, were that theproject could be implemented under the existing legal framework, namely: (i) the Ordinance ofJune 5, 1983, and its Decree of Application of January 31, 1990 concerning the private allocationof agricultural lands; (ii) the Water Code of July 4, 1985 stating that under certain circumstancesprivate entities might be granted exclusive rights over water resources outside privately ownedland; (iii) the Forestry Code of December 15, 1982 acknowledging the rights of some privateusers to manage gazetted forests; and (iv) the Ordinance of June 5, 1983 authorizing the State togrant exclusive grazing rights to a given group of users.

F. SECTORAL ISSUES AND STRATEGY

Lessons Learned with IDA Lending

1.26 The World Bank Group has been involved in Mauritania's agricultural sectorsince 1971, mainly in support of investments in irrigation, livestock development and anti-desertification efforts. Several projects, either completed, under implementation or underpreparation, are relevant to the sector (see Annex 1). A substantial store of experience istherefore available to help identify and overcome strategic difficulties encountered in: (i) ruraldevelopment projects; (ii) the agricultural sector at large; and (iii) the policy environment foragriculture.

1.27 Past projects in the rural sector have encountered such obstacles as: (i) generallyinappropriate top-down desIns that preclude sustainability and a sense of ownership; (ii) poorfinancial manag'ement resulting in extensive implementation delays; (iii) len2tgrv procurementprocesses ; (iv) ineffective field services, which have often been unresponsive to beneficiaries'demands; and (v) lack of counterpart funding due to budgetary problems.

- 9-

1.28 In addition, Mauritanian agriculture is hobbled by four factors that can only beovercome in the long run. First the poor level of natural resource endowment demandsfamiliarity with, and application of, relevant technologies in order to put production on securefooting and attain acceptable levels of productivity. In certain fields such as water harvesting,technologies are already well developed. In others, however, such as pasture management,animal fodder production and storage, there is a great need for improvement and adaptation tolocal ecological conditions. Second, rural communities lack the institutional capacity to reversethe current trend toward impoverishment. They are insufficiently organized, they lack theauthority to steer Government technical services toward their needs and, until recently, the legaland regulatory framework did not support their empowerment. Tbird, rural communities' lowlevel of market integration into the monetary economy causes a critical shortage of savings andinvestment instruments (credits, grants, etc. ). Fourth, most resources (human and financial)have been allocated to irrigation, while rainfed agriculture has been neglected.

Main Conclusions of Economic and Sector Work

1.29 Recently completed economic and sector work, subsequent discussion of itsconclusions with Government, and the results of ongoing adjustment programs have all pointedthe way to a comprehensive development strategy for the sector at large. These ESW productsare described below.

1.30 The Country Assistance Strategy. The 1994 CAS, as well as the 1997 draft CAS,set forth a comprehensive development strategy for Mauritania, including: (i) human resourcedevelopment and poverty reduction to develop the skills of rural communities, create conditionsconducive to their empowerment, and improve the quality of life of rainfed farmers; (ii) privatesector development, including decentralization of civil works, services and input supply toprovide incentives to local contractors rather than to businesses based in Nouakchott; (iii)development of the agricultural sector along participatory lines, in the interest of a strongereconomy; (iv) economic management and capacity building; and (v) environmental protectionand rehabilitation.

1.31 The Country Environmental Strategy Paper (1994) identified three majorchallenges: the unsustainable, inequitable and inefficient management of natural resources; theoverexploitation of fisheries; and urban expansion. The CESP proposed three degrees of priorityfor the problems at hand: (i) due to their great ecological and socio-economic value, a high levelof priority would go to the sustainable development of the Senegal River Valley, the sustainableuse of fishing grounds, the management of fuelwood supply and demand, and control of thesalinization of aquifers; (ii) medium priority would be accorded to the control of sand duneencroachment, soil erosion and fertility loss, solid waste disposal, and the overuse of aquifers inoases, given their ecological and socio-economic importance; and (iii) a lesser degree of prioritywould go to urban wastewater disposal and pollution control, biodiversity, environmental impactof mining, and coastal pollution.

-10-

1.32 The povertv alleviation strategy (1994) acknowledges that the incidence ofpoverty in the rainfed (East and Center) rural areas of the country is between 62% and 75%, arate which is among the highest in the country (as against 40% in urban areas and 57% forMauritania as a whole). The strategy laid out in this document, which recommends assisting themost vulnerable segments of the population, cites six major priorities to be included in any rural-oriented development strategy: (i) promotion of producers' organizations; (ii) effectivemanagement of land and water; (iii) protection against desertification; (iv) land tenure security;(v) establishment of local micro-financing schemes; and (vi) skills development among ruraldwellers.

1.33 The agricultural development strategv agreed upon in 1995 with the Governmentwould be pursued through (i) active participation of villagers in the design and implementationof agricultural policies for which incentives would be provided; (ii) improved technical supportto help villagers increase and diversify production; (iii) rehabilitation of existing irrigatedperimeters rather than the creation of new ones; (iv) establishment of a national NRM programand of a legal and institutional framework giving local communities greater authority andresponsibility; and (v) adoption of reforms to help streamline services and intensify productionthrough appropriate policies on land use, extension and improved competitiveness of localproducts.

II. THE PROJECT

A. RATIONALE AND OBJECTIVES

Sector Development. Objectives and Strategv

2.01 The proposed operation would capitalize on steps that Government has alreadytaken to: (a) improve the policy environment with greater empowerment of local ruralcommunities and the decentralization of MDRE's services; (b) implement the CESP'senvironmental recommendation concerning more efficient management of natural resources; and(c) strengthen oneoin2' operations by coordinating with existing extension services, devising adomestic energy strategy, and liaising with the PDIAIM project now under preparation.

Rationale and value-added of IDA involvement2.02 IDA should be involved because the proposed project would: (i) help the countryto implement its development strategy; (ii) link macropolicy measures supported by IDA andinvestment/capacity building; (iii) promote the emergence of coherent rural sector developmentprograms by coordinating operations currently under implementation (such as the PSA) or underpreparation (such as the PDIAIM); (iv) exploit lessons learned under earlier projects; (v) bringIDA's NRM experience in other countries to bear in Mauritania; (vi) pursue the householdenergy strategy agreed upon in 1990; and (vii) promote donor coordination.

Logical Framework

2.03 The project would be the first five-year time slice of a long-term (20-year) naturalresource management program that would cover the whole rainfed zone of Mauritania. Asshown in the logical framework (Annex 10), the project has been designed as follows:

(a) The Proiect's overall objective would be to control and, hopefully, reduce, thespiral of poverty so well illustrated in this part of the world by the confluence ofpopulation growth, environmental degradation and reduced agriculturalproduction.

(b) Project's expected impact. In order to break the poverty spiral, the project isexpected to improve the basic ecological functions (water and mineral cycles,ecological succession) through resource management, thus bringing aboutsustainable yield increases (in crops and livestock) and increased incomes forparticipating communities.

(c) Proiect's expected outcome. The project's impact (described in (b) above)depends upon two conditions, which are the project's expected outcome: (i) the

- 12 -

empowerment of rural communities, i.e., the provision of skills to organize, tomanage common resources and obtain access to financing; and (ii) an improvedinstitutional environment in the rural sector, including secure access to naturalresources.

(d) Proiect's output. The project is expected to produce three major outputs, whichwould be required in order for the project's outcome above to take place: (i) animproved basis for sustainable production, with well chosen and well managedvillage investments; (ii) stronger technical services to the community; and (iii) thegeneration and dissemination of appropriate technologies, and the development ofrequired skills.

(e) Components. In order to produce the above output, the project would implementthree components: (i) village investments; (ii) strengthening of governmentservices; and (iii) skills development.

Project Scope

2.04 As a first five-year slice of a long-term program, the Project would intervene innine regions or wilayas, out of the 13 existing in Mauritania. As for the rest of the nationalterritory, it is recommended that consultations with other donors involved in similar activities(Germany, European Union, IFAD) be pursued with a view to harmonizing approaches andcoordinating field interventions. Within the nine selected regions, the project would concentrateon approximately 250 villages (roughly 10% of the 2,260 Mauritanian villages in the rainfedarea) that are home to about 75,000 inhabitants (10% of the population of the rainfed area).While the Government identified the 62 communes in which the project would be implementedduring its first phase, guidelines for selecting villages which would benefit from the project, withreasonable chances of success, were established (Annex 7). Since the participatory process uponwhich the project is built takes time, the proposed project would be implemented over five years,with this first tranche followed by others.

2.05 Village investments under the project would provide for the start-up ofcommunity-level natural resource management plans. Investments for each participating village(300 inhabitants in average) would amount to about US$30,000, to be financed under the Credit,plus US$30,000 supplied by the beneficiaries themselves (mostly as labor) over the 3-4 years ofthe project's intervention in the village.

- 13 -

Proiect's Phasing

2.06 In each village where the Project intervenes, there would be a first phase ofinstitutional/capacity building that would not exceed one year. This would be followed by thedesign and approval of the NRM plan and its implementation. Phasing out of the Project at thelevel of each village would occur after three to four years. Since not all the villages would beaffected in Year 1, it is expected that an increasing number of new villages would be "enrolled"each year, and that, in each year starting in Year 3, project intervention with the first enrolledvillages would be phased out. It is also expected that much experience would be gained duringthe five years of the proposed project, and that a rapidly growing number of communities wouldbe involved in the subsequent phases of the foreseen 20-year program. Therefore, projectimplementation cannot be sequenced by starting with organization during the first phase, andreturning to the issue of investments during the project's second time slice, five years later. Agradually increasing geographic coverage constitutes in itself the most appropriate phasing ofproject implementation. The development process will not be linear, since the emergence ofgreater numbers of skilled people (rurals and technicians), effective procedures, relevant policies,adapted technologies and improved infrastructure will improve replicability. It is thereforeexpected that an increasing number of villages would be involved annually at a lower extemalcost, and that Mauritania's 2,260 villages in the rainfed area could be covered within the 20-yearprogram.

Proiect Imlementation: A Different Approach

2.07 The project's implementation principles are based on the key sector issuesidentified in Chapter I, taking into account past experience in the development of the sector:

(a) in a departure from previous strategies that treated the agricultural developmentproblem in a sub-sectoral manner (livestock, forestry, etc.), the project wouldaddress rural development in an integrated manner. This means that all issuesfacing a given community in managing its natural resources are addressedsimultaneously and holistically -- taking into account community goals andpriorities and the current state of the resource base -- with interventions chosenon the basis of cost-effectiveness, sustainability, popular acceptance and soundresource management principles (Annex 2; para. 13);

(b) interventions under the project would be pro-active, and would address theunderlving causes of environmental degradation (i.e., mainly the overuse ofresources) instead of focusing on defensive actions. This would be done byimproving the management of all resources utilized in the targeted zones;

(c) instead of the usual schema of action programs defined and implemented byGovernment services, the project would be implemented in a bottom-up,articiDatorv mode, meaning that, within the framework defined by the

government, organized communities would set goals and define scenarios andactivities for the zone under their control. During project identification and

- 14 -

preparation, this method was tested with the aid of participatory rural appraisaltools (e.g., social assessment) that made it possible to establish a dialogue withsome future beneficiaries and to gather the needed information;

(d) to avoid redundancies and/or the neglect of important issues, the proposedproject would be carried out in close coordination with ongoing programs andprojects that may be able and willing to implement some of its components.Cooperation Agreements or formal linkages would be established in thefollowing areas: extension (research and agricultural services projects);household energy (technical assistance, public enterprise and energy project),the provision of experience and skills (German-financed GIRNEM project);and the European Union's 7th FED investment program, which providesfinancing for the national program in the Tagant and Brakna regions and part ofthe Trarza region.

(e) instead of being designed in isolation from ongoing institutional developments,the project would support the communal development policy currently pursuedby the government. Community-based NRM plans would be established withthe participation of elected community leaders and negotiated on their behalf.These plans would later be integrated or harmonized into broader communaldevelopment plans covering clusters of about 20 villages. In so doing, theproposed project aims to reconcile Government-designed land-use plans(amenagement du territoire) with the natural resource management plans ofcommunities.

B. SUMMARY DESCRIPTION

2.08 The project would include the following three components: (i) financial supportfor investments in 250 villages chosen from representative agro-ecological zones of the country'srainfed area; (ii) strengthenin-p of Government services in order to support communityorganization, improve the legal framework for local empowerment, and finance Government'stechnical support to beneficiaries; and (iii) enhancement of skills. including the development ofrequired technologies (research, short- and medium-term technical assistance), and thedissemination of those technologies through extension and training.

C. DETAILED FEATURES

Village investments (US$16.9 Million)

2.09 Under the NRM approach, the final choice of technologies to be implemented ineach community is made by the community concerned, based on its own goals and ecologicalconstraints. Therefore, the village investments included in the project's cost tables should beviewed as indicative, rather than quantitative project objectives, and not as indicators of projectachievement. The long-term project key perfonnance indicators would reflect the ecological and

- 15 -

socio-economic impact of the community-based NRM approach (Annex 11). Short-termimplementation would be monitored according to the specific investment objectives included inthe project's annual work plan, and on the basis of community NRM plans that will have beennegotiated and agreed upon with technical support teams and regional authorities.

2.10 Village investments represent a large percentage of both the Credit and the totalproject cost, since the equivalent of US$10 million (56% of the US$18 million Credit, includingprice contingencies) would be invested at village level, while the total cost of villageinvestments, including beneficiaries' contributions, would amount to the equivalent of US$16.9million, or 65% of the total project cost of US$25.9 million. By any standard, this is a highproportion of credit proceeds allocated to end beneficiaries, in addition to the cost of theirtechnical support and training.

2.11 Land and water conservation. The land and water conservation techniquesenvisaged require the project to supply the following inputs: (i) transportation of stones, soil,water, building materials; (ii) plant material (seedlings and seeds); (iii) mechanized works (earthmoving, boring, firebreaks, harrowing, pitting); (iv) construction material (concrete, roofing,beams and wire netting); (v) fencing material (posts, barbed wire); and (vi) sand dune fixationdevices (mesh, plastic, etc.). Project beneficiaries would supply the required labor, representingup to 70% of costs. The technologies to be used for investments in land and water are outlined inAnnex 3:

(a) water harvesting techniques, including stone and vegetation contour bunds,surface water management dikes, and the deepening of natural and artificialponds;

(b) preservation of soil fertility, erosion prevention and control of sand duneencroachment, also including stone and vegetation contour bunds, gullycorrection and sand dune fixation;

(c) forage production on rangelands, and fuelwood production, includingprotection and plantation, although most of these objectives require improvedmanagement rather than additional investments;

(d) rehabilitation and construction of rural roads;

2.12 Some technologies included in this component are already well developed inMauritania. This is especially true of dune fixation and water harvesting (cultures derrierebarrage), which are familiar to Mauritanian farmers. Others, such as plantations, have beentested in Mauritania in the past, while certain other technologies, such as different types of bunds(diguettes), have been developed in neighboring countries (e.g., Sahel, North Africa) from whichexpertise will be sought under the project.

2.13 Infrastructure and eguipment. These investments are needed by ruralcommunities, and particularly by women, who spend much time on water collection and food

-16-

processing. Nevertheless, in order to avoid disincentives to private initiative and to encouragethe use of credit (when available), the financing of these investments would be contingent upon alevel of cash contributions from beneficiaries not lower than 20% of the total cost. In order toensure proper operation and maintenance of the equipment, such investments would only befunded under the community NRM package when (a) a community expresses strong demand andshows serious commitment to its further operation and maintenance; (b) no other source offinancing (credit or other program) exists; and (c) a specialized entity (e.g., NGO or otherproject) can provide backstopping for the sustainability of the investment. Detailed procedureson how these investments would be financed, operated and maintained have been included in theproject's implementation manual. The following investments would be financed under thecomponent:

(a) civil works related essentially to water supply (water wheels, drilling, cisterns)and, to a lesser extent, rural roads and community buildings (e.g., storagefacilities, cooperative shops, market and livestock handling facilities, etc.);

(b) mechanical equipment, including different types of pumps (wind mills,motorized pumps), forest management equipment (chain saws) whereapplicable, food processing devices (grain mills, oil extractors);

(c) small agricultural equipment, also for community use (carts, wheelbarrows,etc.), all types of agricultural tools (plows, etc.) and fencing material (whereapplicable), as part of the execution of an agreed village investment.

(d) water supply installations as part of the West African Pilot Pastoral Program,which is aimed at assessing the relevance of a new approach to rangelandmanagement, and is currently implemented in six Sahelian countries under thecoordination of the Bank (Annex 2, para. 13).

2.14 Other investments (micro-enterprises). The project would provide financing forthese investments to a maximum of 60% of their costs, with the remainder financed (in cash) bythe beneficiaries, according to detailed guidelines included in the project's implementationmanual. The shortage of capital at village level, the poor or non-existent access to credit, and thelimited savings potential, make this component particularly crucial to the success of the project.When properly managed, such operations have proven an effective means of transitioning toeffective community-based credit schemes, provided they: (i) ensure training for community staffin financial management and accounting; (ii) foster activities targeted to external markets; and(iii) effect a change in mentalities, after which the fund is no longer perceived as a Governmentsubsidy, but instead as a common good requiring community-wide commitment. The proposedproject would provide funds for income generating activities in line with project's objectives,including, but not limited to:

(a) cooperative and/or individual livestock fattening, for which funds are requiredto purchase animals and store feed until the time of marketing;

-17-

(b) grain storage, for which cash is needed to free farmers of the obligation tomarket their production at harvest time, when prices are lowest. Suchoperations could be of a cooperative or individual nature;

(c) human and animal medicine supply (a successful undertaking under LivestockII), with possible expansion to other inputs. Although they have initially beenmanaged on a cooperative basis, associations tend ultimately to have thesepharmacies managed by village-trained auxiliaries, thus guaranteeing that themedicines are made available and are used efficiently;

Strengthening of Public Support ( US$4.1 million)

2.15 Institutional support provided under the project would cover three different areas:(i) communitv organization and linkages with elected communal entities, which is being includedin the design and review of the community natural resource planning package; (ii) application ofthe legal framework in order to ensure reasonably secure access to common resources; and (iii)technical support to participating communities and to the Government in order to establish,implement and monitor the community-based NRM plans.

(a) At the village level, the project would be implemented by field extensionagents (AVBs) operating under the existing Agricultural Services Project(PSA). Since this would substantially increase their current workload,additional new agents would be recruited on a contractual basis. To ensureadequate extension services to women, the project would encourage therecruitment of female agents. Overall, the average ratio would be oneextension agent (agent de vulgarisation de base, A VB) for every four to sixvillages, or 1/200-300 households;

(b) Five technical support teams (EMATs), also to be recruited on a contractualbasis, would operate in the wilayas targeted under the project (para. 3.11). EachEMAT would consist of three specialists responsible for providingparticipating communities with skills not available within the existingagricultural services, i.e.: (i) community organization, negotiation and conflictresolution; (ii) management of communal property (especially rangeland andforest); and (iii) financial management, access to credit and administration.Unemployed young professionals with these profiles (not necessarily with anagricultural background) are available in the labor market.

(c) At the wilaya level, the Government has agreed that the project would beimplemented by existing agricultural services technical staff from regionalMDRE delegations whose salaries would be paid by the Government. Thisstaff would participate in project implementation and would receive dailysubsistence and required transportation from the project when working in thefield. In addition, and to complement existing staff, one regional project

- 18-

program assistant, as well as one financial manager and an accountant, wouldbe recruited on a contractual basis.

(d) A Central Project Team (ECPG), consisting of five professionals, would beestablished in Nouakchott under the cabinet of the MDRE. This Team wouldinclude: (i) the coordinator responsible for overall project implementation,dialogue with stakeholders, and reporting; (ii) the procurement officer; (iii) thefinancial manager responsible for disbursements (Special Accounts andAdvance Accounts), village investments, accounting and auditing; (iv) acommunity-based NRM specialist who would supervise the community NRMplanning process, and would be responsible for studies, WID issues andmonitoring and evaluation of project implementation and impact; and (v) theadult training specialist who, in coordination with the national agency forliteracy, would be in charge of identifying skills gaps and recruitingconsultants. The Central Project Team will consist in principle of existingcivil servants who will be assigned to these tasks. However, because theproject is causing incremental activities and because civil service staff islimited, contractuals could be hired if required skills are not available;

(e) Given the pilot nature of the pastoral program (para. 2.1 1(e)), support to thisprogram would be geared toward providing external expertise in the areas ofrangeland management, and monitoring/evaluation of the results of the pilot.

2.16 In addition to incremental salaries for contractual staff, the proposed projectwould also cover: the rehabilitation of existing offices; office equipment (photocopiers, personalcomputers when required); five vehicles for the ECPG, the EMATs, and the coordinators; andsmall motorcycles (125-175 cc) for the additional extension agents and field supervisors. As inthe case of the PSA, these motorcycles would be sold to agents on credit, with monthly paymentswithheld from their salaries. Funding for the operation and maintenance of the vehicles andequipment, and field allowances for the technical staff and drivers, will be borne by the project.

Skills Development (US$ 1.6 million)

2.17 Technical Assistance and Research. Adaptive research for NRM would includediagnostic activities performed at the request of beneficiaries with support from EMATs andresearchers, followed by on-site testing. The project would finance the tests and the researchers'services through contracts with research agencies, especially the Kaedi Research Center, butwithout excluding the possibility of collaboration with other partners (public, private, NGO, etc.)that make competitive proposals. The proposed research activities would be presented in annualaction plans to be approved by the Bank. The activities could include, for example, thedetermination of the most cost-effective type of earthen dam (length, spacing, material);measurements of the project's environmental impact (soil, vegetation, water table); thesustainable replanting of watersheds (species, implementation, management); the choice ofspecies for agroforestry as a function of specific agroecological conditions, etc. The project

-19-

would finance these activities, including 65 weeks of international specialists and 93 weeks ofnational consultants.

2.18 Training and Public Awareness. The training component is crucial. Projectobjectives can only be attained if support staff develops a true ability to listen, understand andreach out to rural clients, while at the same time mastering the technical aspects of the variousrural interventions. Training, information and public awareness efforts would be directed at anyparty involved in the project whenever it appears that their qualifications are not up to theresponsibilities entrusted to them. Training would be of a practical nature and generally on-site,while the identification of skills gaps and the assessment of the program's impact would be theresponsibility of project staff. The design and implementation of training modules would mostlybe subcontracted to consultants (firms and individuals). For more details on the implementationof this component, which will also rely on the network of rural radios (see Annex 2, paras. 3-5).In addition to consultants' fees, the project would mainly finance beneficiaries' travel andtrainers' mission expenses. Technical support would require a total of 69 man-weeks ofexpatriate consultancies, 114 man-weeks of sub-regional consultants, and 272 man-weeks oflocal consultancies (Annex 12).

2.19 Improving Rural Statistical Data. This component would also finance thestrengthening of statistical data surveys and processing in the rural sector, in order to improve thescope and reliability of statistical data on the rural sector (crops and livestock). It will be carriedout by the National Statistical Institute (INS) under the Ministry of Planning. It will consist of(a) a sample survey to check the relevance of data currently available on livestock (flocks, herds,yields, production, marketing, export) and crops (areas, yields, production, marketing); and (b)the establishment of an action plan aimed at improving the coverage and accuracy of nationalstatistics, to be implemented later under discrete support. The action plan would be finalizedbefore the mid-term review of the project.

D. PROJECT COSTS

2.20 Total base costs, net of taxes and duties, are estimated at US$25.9 million (UM3.7 billion), based on January 1997 prices. Given the nature of investments (high dependence onvillage labor, numerous small works, volumes of specific works not known before approval ofCommunity land management plans), physical contingencies have not been included. Pricecontingencies amounting to US$2.7 million, or 12 percent of base costs, have been included andare based on average forecasts of international inflation for foreign-supplied goods (2.5% perannum), estimated inflation in Mauritania for local costs (3.0 percent per annum), and on animplementation period of five years. The foreign exchange rate used was US$1.00 = UM 142(since January 1997), and the foreign exchange portion of the total cost was estimated at 49%.Total project costs of US$25.9 million break down as follows:

- 20 -

Table 2: Project Cost Summary

(UM Million) (US$'Million) l_ l_lLocal Foreign Total Local Foreign Total % F E % TBC

Project Components1. Village Investments 1,079.2 1,326.3 2,405.5 7.6 9.3 16.9 55 732. Strengthening of Public Sector 400.1 184.5 584.6 2.8 1.2 4.1 32 183. Skills Development 141.8 91.5 233.3 1.0 0.64 1.6 39 74. Pastoral Pilot Program 42.9 29.6 72.5 0.3 0.2 0.5 41 2

Total Baseline Costs 1,664.0 1,631.9 3,295.9 11.7 11.5 23.2 50 100Phyical Contingencies - - - - - - -

Price Contingencies 216.0 172.4 388.3 1.5 1.2 2.7 44 12

Total Project Costs 1,880.0 1,804.3 3,684.3 13.2 12.7 25.9 49 112

% F.E. = % Foreign Exchange% TBC = % Total Base Costs

E. FINANCING PLAN

2.21 Project costs would be financed by an IDA credit of US$18 million equivalent.The Mauritanian contribution amounts to US$7.9 million equivalent. The financing plan isdetailed below:

Table 3: Project Financing Plan

Contributors US$ million UM million *ieIDA 18.0 2,556 69Beneficiaries 7.5 1,065 29Government 0.4 57 2Total 25.9 3,678 100

2.22 The IDA credit would represent 69% of project costs. The beneficiarycontribution, (cash and labor) for village investments, is valued at US$7.5 million equivalent,which represents 29 % of total project cost. The Government's contribution is equivalent to thesalaries of Government civil servants that would be seconded to the project. This would amountto UM 57 million during the five project years, or 2 % of project costs. The full financing ofincremental operating costs under the project is required, since (i) the Government is funding aportion of recurrent operating costs through the transfer of about half the project staff from otherservices; and (ii) the operation is a first time slice of a long-term program, so incrementaloperating costs cannot be financed on a declining basis during implementation.

-21 -

F. PROCUREMENT

2.23 The following table summarizes the project categories and their estimated costs(including contingencies), as well as proposed methods of procurement. Mauritania'sprocurement laws and regulations conform to IDA procurement guidelines. No specialexemptions, permits, or licenses need to be specified in Credit documents for internationalcompetitive bidding (ICB), as Mauritania's procurement regulations allow IDA procedures totake precedence over any contrary provisions in local regulations. All procurement for goodsand civil works would be carried out in accordance with Bank guidelines for procurement underIBRD Loans and Credits (January 1995). All procurement for consulting services would becarried out in accordance with the Bank's Guidelines for the Selection and Employment ofConsultants (January 1997).

Table 4: Summary of Proposed Procurement Arrangements.(US$ million)

Categories ICB NCB Other NIF TotalGoods 1.2 2.0 1.1 4.3

(1.2) (2.0) (1. 1) (4.3)Works - 0.7 8.4 - 9.1

(0.7) (8.4) (9.1)Village Labor Contribution - - 6.9 6.9

Beneficiary Cash Contribution - - 0.6 0.6

Training & Technical Support - - 0.9 0.9(0.9) (0.9)

Studies - - 1.0 - 1.0(1.0) (1.0)

Staff seconded to project - - 0.4 0.4

Miscellaneous (increm. operating cost) 2.7 - 2.7(2.7) (2.7)

Total 1.2 2.7 14.1 7.9 25.9(1.2) (2.7) (14.1) (0.0) (18.0)

Note: Figures in parentheses are the respective amounts financed by the IDA Credit; N. 1. F.: not IDA Financed

2.24 International Competitive Bidding (ICB) would, in accordance with BankGuidelines for Procurement under IBRD Loans and IDA Credits (January 1995), be carried outfor the purchase of goods estimated to exceed US$100,000. Procurement using ICB is expectedto total US$1.2 million, mostly for the procurement of vehicles. Standard bidding documentsdeveloped by the Bank will be used. Satellite imagery would be procured through LimitedInternational Bidding by inviting the existing providers, whose number is limited to two or three.To the extent possible, contracts for goods shall be grouped in lots estimated to cost $100,000equivalent or more each.

- 22 -

2.25 National Competitive Bidding (NCB) would be carried out for goods, such asequipment, small implements and supplies estimated to cost less than US$ 100,000 and more thanUS$30,000 per contract, up to an aggregate amount not to exceed US$2.0 million equivalent; andworks estimated to cost less than US$150,000 and more than US$30,000 equivalent per contract,up to an aggregate amount not to exceed US$0.7 million.

2.26 Small civil works contracts. Contracts for standard small works estimated to costless than US$30,000 per contract, up to an aggregate amount of US$8.4 million, would beprocured under lump-sum, fixed price contracts awarded on the basis of quotations obtained fromthree (3) qualified domestic contractors. The invitation shall include reference unit pricesestablished by the ECPG, a detailed description of the works, including basic specifications, therequired completion date, a basic form of agreement acceptable to the Association, and relevantdrawings where applicable. The award would be made to the contractor who offers the lowestprice quotation for the required work, provided he demonstrates he has the experience andresources to complete the contract successfully. These are mostly works relating to bunding, treeplanting and protection of vegetation, gully correction, watershed management and villagecommunity projects, where most of the input (up to 70% of total costs) would come fromvillagers themselves in the form of labor, and contracts would be limited to furnishing technicalassistance and the necessary materials, equipment and supplies. These works would besupervised by five technical support teams (EMATs) based on criteria and standards appliedequally to all villages. Contributions from beneficiaries (US$7.5 million equivalent of whichUS$6.9 million in labor and US$0.6 in cash) have been valued at UM 250, or about US$1.8 perday of work. According to investment scenarios set out in Annex 8, this contribution wouldamount to 21 days, 30 days and 40 days of work per active beneficiary per year in pastoral, agro-pastoral and sylvo-agro-pastoral systems, over the three years of project implementation in thevillage. In the case of water supply and productive investments, a cash contribution would berequired from the villagers (ranging from 20% to 40% of the investment cost). The project'simplementation manual describes the mechanism by which labor contributions (contractedbetween the project and the ADC) would be verified and cash payments made and managed.

2.27 Local Shopping. Goods estimated to cost less than US$30,000 per contract, up toan aggregate amount of US$ 1.1 million, would be acquired on the basis of a comparison of pricequotes from at least three reliable suppliers. These are mostly materials relating to the small civilworks mentioned above, equipment, small implements and supplies.

2.28 Consultant's Services. These services would be used for (i) studies -- land tenure,environmental data, accounting systems, and impact analysis (estimated at 85 man weeks); (ii)technical matters and training -- skills gap analysis, skills development (155 man weeks); and(iii) training of project field staff and beneficiaries, estimated at 215 man weeks. Consultantservices financed by IDA, are expected to total US$1.9 million. Selection of consultants wouldbe done through competition among qualified short-listed firms in which the selection would bebased both on the quality of the proposal and on the cost of the services to be provided, exceptfor those contracts that are extimated to cost less than US$100,000. The latter would be awardedon the basis of lowest cost. Short-lists for technical assistance contracts provided to supportADCs, and whose value is estimated under US$100,000, may be comprised entirely of national

-23 -

consultants provided a sufficient number of qualified firms (at least three) are available atcompetitive costs. However, if foreign firms have expressed interest, they would not beexcluded from consideration. Services for training sessions and small studies which can bedelivered by individual consultants would be selected through comparison of qualificationsamong those approached directly or expressing interest in the assignment. The standard Letter ofInvitation and Form of Contract as developed by the Bank will be used for appointment ofconsultants. Simplified forms of contract would be used for short-term assignments, i.e. thosenot exceeding six months and carried out by individual consultants. The Government would bebriefed during negotiations about the special features of the new guidelines, in particular withregard to advertisement and public bid opening. A table detailing the nature and source ofconsultant services is given in Annex 12.

2.29 Adeguacy of National Bidding Procedures (NBP). National Bidding Proceduresfor public sector procurement in Mauritania have proven slow and cumbersome in several pastand ongoing IDA-financed projects. It has been agreed at negotiations that, before the scheduledmid-term review, a review of the effectiveness of national bidding procedures would be carriedout as they relate to the project's procurement experience and, if necessary, that modifications tothe current procedures would be proposed in order to accelerate project procurement while stillmaintaining adequate control over contract awards and payments (para. 5.01(a)).

2.30 Procurement Reviews. IDA-financed contracts above the threshold value ofUS$100,000 equivalent for goods and US$150,000 for works would be subject to IDA's priorreview procedures. The review process would cover 80 percent of the total value of the amountcontracted for goods. Selective post-review of contracts awarded below the threshold levelswould apply to about one in three contracts. Draft standard bidding documents for NCB wouldbe reviewed by and agreed upon with IDA. The Bank would review the selection process forconsultants proposed by the Borrower. The Borrower would be reminded that opening of thefinancial envelopes cannot take place before receiving the Bank's no-objection to the technicalevaluation. Prior IDA review would not apply to contracts for the recruitment of consultingfirms and individuals estimated to cost less than US$100,000 and US$50,000 equivalent,respectively. However, the exception to prior IDA review would not apply to Terms ofReference of such contracts, regardless of value, to single-source hiring, to assignments of acritical nature as determined by IDA, or to amendments of contracts raising the contract valueabove the prior review threshold.

2.31 Procurement Status of Onuoiny Projects and Proposed Arrangements. Duringnegotiations, the Government has submitted to IDA for review: (a) a draft procurement plan; (b)a draft Implementation Manual and (c) draft bidding documents for equipment to be procuredduring the first year of project's implementation, as well as draft letters of invitation forconsultant services to be financed by IDA. The Government would submit to IDA the finalversions of these documents prior to project effectiveness. It has given assurance at negotiationsthat it would apply the procurement procedures and arrangements outlined in the abovedocuments. During negotiations, agreement was reached on the proper monitoring ofprocurement as well as the use of the Bank's Standard Bidding Documents for ICB and thatstandard procurement documents for NCB would be developed by the Borrower, reviewed by,

-24 -

and agreed upon with IDA. Agreement was reached at negotiations that procurement of goods,works and consultant services required for the project, and to be financed out of Credit proceeds,would take place in accordance with procedures satisfactory to IDA (para.5.01(b)). Duringproject implementation, procurement information would be collected and recorded as follows:

(a) prompt recording of contract award information by the Borrower; and

(b) semi-annual reports to the Bank by the Borrower indicating (i) revised costestimates for individual contracts and the total project, including best estimatesof allowances for contingencies; (ii) revised timing of estimated procurementactions, including experience with completion time and completion cost forindividual contracts; and (iii) compliance with aggregate limits on specifiedmethods of procurement.

G. DISBURSEMENT

2.32 The project constitutes a five-year time slice of a longer program, and the creditwould be disbursed over a period of six years (instead of the standard seven-year profile forMauritania). The estimated semi-annual disbursement schedule is shown in Annex 5. The IDAcredit would be disbursed on the basis of the categories shown below.

Table 5: Categories of IDA Credit Expenditures

Category IDA Allocation % of expendituresof Expenditure (US$ million) to be financed

1. Works, goods and services (villages investments) 8.0 1002. Civil works (others) 1.0 1003. Goods and vehicles 1.0 1004. Consultant services and training 1.5 1005. Satellite imagery 0.1 1006. Incremental Operating Costs 2.5 1007. Refunding of PPF 1.08. Unallocated 2.9Total 18.0

2.33 Disbursements of the IDA credit would be fully documented, except forexpenditures valued under US$50,000 equivalent for individual consultant contracts, and underUS$100,000 for all other contracts, which would be against Statements of Expenditure (SOEs)certified by the ECPG's Chief Financial Officer and by the Project Director. The ECPG wouldbe responsible for preparing withdrawal applications, and would indicate on SOEs the nature andorigin of any goods and the payment date. Documentation of withdrawals under SOEs would beretained at the ECPG for review by IDA staff during supervision missions and for regular annualaudits.

2.34 In order to get their PICs implemented, ADCs would contract with individualsuppliers and private enterprises to get the work done. They would be supported in the processby individual consultants when required. In order to ensure the financing, mutual conventions

- 25 -

would be agreed between ADCs, providers and the project. The signature of these conventionsis a pre-requisite to the procurement and the implementation of the planned investments. Withthe assistance of consultants, the ADC and the PGRNP would sign a contract with providersselected according to the procurement procedures and the PGRNP. The investment would thenbe implemented according to the convention. The signature of the Project Director or hisrepresentative would commit the project to paying the provider according to the terms of thecontract.

2.35 To expedite disbursements, the Government would open and maintain a specialaccount at a commercial Bank, under terms and conditions satisfactory to IDA. The authorizedallocation would be US$800,000. IDA would make an initial deposit of US$400,000 uponcredit effectiveness, with the balance payable once cumulative disbursements under the creditreach the equivalent of SDR 1,000,000.

2.36 In order to ensure that funds are available at the regional level, the borrowerwould be allowed to withdraw from the special account, and deposit into four AdvanceAccounts, an amount not exceeding the equivalent of US$50,000 each for Kiffa, Ayoun elAtrous Nema, and Atar, and thereafter replenish said advance accounts from the special accountaccording to established Bank procedures. These procedures will be outlined in detail to theborrower and the executing agencies by the Loan Department in a Disbursement Letter that willbe dispatched to the borrower and executing agencies, following Board approval. The specialaccount and the four Advance Accounts will be audited annually, and auditors will be required togive a separate opinion on the operation and maintenance of these accounts as well as providecertification of withdrawal applications that have been submitted on the basis of Statements ofExpenditures (SOEs).

2.37 The regional program assistants would obtain the necessary information justifyingincurred expenditures, which will be the basis for monthly replenishment of the AdvanceAccounts from the Special Account. IDA would replenish the Special Account upon receipt ofsatisfactory proof of incurred expenditures and evidence that such expenditures are eligible forfinancing. Up-to-date bank statements as well as a reconciliation of the Special Account wouldneed to accompany each replenishment request.

- 26 -

III. PROJECT ORGANIZATION AND MANAGEMENT

A. PROJECT ORGANIZATION

General Framework

3.01 The project is based upon existing structures, be they administrative services,coordinating committees or political institutions, all acting in accordance with their usualmandates. No new temporary ad-hoc structure is being created. All three levels of theMauritanian institutional set-up are affected by the project, each of them with discrete objectives:(i) the local level, including the recently-created municipal level, with elected leaders, and thecommunity level, where village land-based communities make decisions regarding themanagement of natural resources; (ii) the regional level, including the regions proper (wilayas)and their district or departmental subdivisions (moughataas), where government services have arole of review and approval; and (iii) the national level, seat of central, administrative andpolitical power; from which project implementation would be planned and monitored.

Detailed Set-un of the Project

3.02 Village/community level. At the local level, the project would be implemented bythe community development association (ADC) according to the guidelines stated in theproject's implementation manual. Although the choice of the Committee members is left to thecommunity, project staff would ensure that its members are dynamic, influential andrepresentative of the main socio-professional groups in the community, particularly those groupsoften neglected (e.g., women and younger people), and including traditional leaders (villagechiefs) and local elected officials. Usually, ADCs have a President (representing theCommittee), a treasurer (to collect and manage funds) and a Secretary (to keep simple books) inaddition to representatives of each of the community technical groups (GTC) dealing with thesocial components of the village and the activities they carry out (agriculture, gardening, herding,fuelwood, hunting, women's activities, etc.). For larger infrastructure works involving severalvillages (large water harvesting dams, for instance), local technical committees (GTIVs) wouldbe established under the oversight of technical services from the MDRE Delegation.

3.03 The ADC's role is to: (i) carry out, with the project's support, the whole processof NRM planning leading to technically feasible action plans; (ii) ensure the implementation ofplanned programs and activities by mobilizing human, material and financial resources frombeneficiaries; (iii) ensure that these new facilities are being used and maintained in a sustainablemanner, and that operation and maintenance fees are being raised as agreed; (iv) help settlelitigation involving access to common resources belonging to the community; and (v) representthe community vis-a-vis other stakeholders (project, technical services, NGOs, othercommunities). From a legal standpoint, the community and its ADC need a legal status, such asthat of an association, in order to be able to enter into contractual arrangements. According tostudies carried out during project preparation, the legal framework for such recognition already

-27 -

exists. As stated in para. 1.25, the appraisal mission has agreed (and the Government hasconfirmed before negotiations) that the existing legal framework accommodates project'simplementation as far as community organization and security of access to natural resources areconcerned.3.04 Municipal level. At the municipal or communal level, the Municipal Council isthe legitimate institutional intermediary between the communities and the district and regionaladministrations. Mauritanian law on territorial administration has evolved in such a way that themunicipality is involved in the design and implementation of plans for equipping the variousvillage lands (terroirs) that constitute it. Once community natural resource management plans(see Para. 3.13) have been reviewed by the municipal council and approved by the regionaldevelopment committee (CRD), they will be acknowledged as compatible with national masterplans issued by DATAR, MHE, DEAR and other technical departments and become the buildingblocks of any further communal and regional development planning.3.05 District (Moughataa) Level. This level lies between the regional Governmentauthority (the wali in the wilaya) and the communal elected leaders (municipal council). TheProject's implementation manual describes how community's natural resource managementplanning package (see Para. 3.13) is transmitted for information to the moughataa for furthercommunication to the wilaya. This consultation is carried out by the district developmentcommittee (CLD) presided over by the hakem of the moughataa. Its members includerepresentatives of the civil services (MDRE, health and social welfare, hydraulics, education,energy and other decentralized government services), projects and NGOs, as well as local electedleaders.

3.06 Regional (Wilaya) level In five capital cities of the nine wilayas where theproject intervenes, the MDRE Delegate is the Regional Project Coordinator, (CRP). He isassisted by a regional program assistant (CPR) selected for his expertise, and recruited by theproject. Under the authority of the Director of the PGRNP and the MDRE Regional Delegate,this contractual staff would be responsible for the project's activities in the Region: (i) with theassistance of a financial manager, he would manage the Advance Account (where established),expedite local procurement and payments, and maintain a general and analytical accounting; (ii)in connection with the wilaya CRP, he would ensure that the community natural resourcemanagement planning package submitted for approval is reviewed and processed in a timelymanner; (iii) within the MDRE Delegation, he would facilitate and monitor the participation ofcivil servants from technical departments (including Ag. Services) in project activities accordingto a commonly agreed work plan; and (iv) he would plan and supervise project activities atregional level, including field visits, training, reporting and monitoring and evaluation activities.

3.07 The reg'ional dele-oation of the MDRE is the Project's operational headquarters inthe region. Three-member project support teams (EMATs) reinforce the Delegation's RuralOrganization Bureau (BOP), while civil servants from technical departments (forestry,agriculture, livestock, genie rural) participate in project activities (SAC preparation andimplementation of project investment plans) according to an agreed-upon work program to bemonitored by the Regional Coordinator.

-28 -

3.08 The regional development committee (CRD) is presided over by the wali Itincludes representatives of the administration (hakems), civil service (Ministries of Agriculture,Interior, Health, Education, Women's Affairs, Hydraulics, Energy, etc.), private stakeholders(NGOs and private firms), and the civil society (elected communal representatives andprofessional associations). On a quarterly basis, (i) the CRD approves new community naturalresources management packages possibly in presence of community representatives, assisted bycommunal elected leaders and project staff; and (ii) examines the status of projectimplementation plans and apportions resources from technical services accordingly. Everv yearthe CRD examines the annual NRM implementation report for the previous period and approvesthe work plan and budget for the next one.

3.09 National Level. Project financial management control is ensured, on behalf ofthe Government, by the recently created Conseil de surveillance (CS) (Decree 96-026 PM ofApril 1, 1996). Project technical coordination will be ensured by a Steering Committee (CP)including representatives from relevant ministries (MDRE, Plan, Interior, Equipment, Hydraulicsand Energy) and, on a consultative basis, others such as the Association of Mauritanian Mayors(AMM) and donors involved in the same type of activities. The CP will be presided over by theEconomic Counselor of the Prime Minister; its secretariat will be provided by the project'scentral planning and implementation team (ECPG). The role of the CP will be to: (i) ensure thecoordination of project activities with those carried out by other programs and departments; (ii)to establish broad goals to be achieved during the following year; and (iii) to review projectachievements on the same annual basis. Assurances have been obtained during negotiations thatthe "Arr&te" establishing composition, mandate and schedule of meetings of the Project SteeringCommittee will be issued to the Bank's satisfaction by the Ministry of Planning (para. 5.01 (d)).

3.10 Project planning and implementation would be carried out by the ECPGestablished within the Cabinet of the MDRE (Arrete 37 of February 11, 1996). Since thedecentralization in 1994 of MDRE's technical departments to the regional (wilaya) level, thechain of command of technical departments (DRAP, DEAR, DREV) having staff in the regionaldelegations is being channeled through the Cabinet of the MDRE. Nevertheless, since thereorganization, the operational capacity of the Cabinet has not increased. Thus, the placement ofthe project's ECPG at the Cabinet level is expected to contribute effectively to the developmentof the rural sector's institutional capacity. The ECPG team (see para 2.15 (d)) is kept minimal inorder to allocate most of the project's human resources in the field, but it is granted the externalsupport required to make it effective. Its staff is recruited on fixed-term contracts.

-29 -

B. PROJECT IMPLEMENTATION

Project area coverage

3.11 The rainfed area of Mauritania covers some 2,260 villages and 750,000inhabitants (roughly 300 per village on average). There are 1,600 villages with populations inthe target range of 100-1,000 inhabitants. The objective of the four five-year time-slices of theNRM program is to involve 85% of these villages: 250 villages during the first five-year project,300 during the second, 350 during the third and 450 during the fourth. The 250 villages to becovered under the proposed project would be located in nine regions or wilayas (out of 13).Twenty-four districts or moughataas (out of 53) and 62 rural municipalities or communes (out of163) would be involved. The project would therefore benefit roughly 75,000 inhabitants of the750,000 in the rainfed area (10%). According to information provided by the EU, theimplementation of the national natural resource management program in the regions of Tagant,Brakna and a part of the Trarza would be envisaged as part of its next national investmentprogram (PIN).

Table 6: Project's Zone of Intervention

City of operation Wilaya of intervention Advance AccountNouakchott

Atar * Tagant Atar* Inchiri* Adrar

Kiffa * Assaba Kiffa* Gorgol North* Guidimaka North_

Ayoun El Atrous * Hodh El Gharbi Ayoun El AtrousRosso * TrarzaNema * Hodh El Chargui Nema

3.12 Selection. The choice of rural communities to benefit from the Project is sensitivein terms of equity (with the poorest wilayas requiring more interventions) and operationality(since interventions are more likely to be successful in areas with higher potential). The choice ofthe 62 communes targeted for an intervention has been made by the Government for negotiations,whereas the choice of village clusters within these communes would be made by the project,using a comprehensive selection mechanism early in the process of implementation (details arein Annex 7 and the Implementation Manual). Although the project would focus on villagesranging from 100 to 1,000 inhabitants, smaller settlements might be eligible, provided that theyassociate with other neighboring communities to reach a minimal critical mass of investment.Larger communities might also be eligible, provided that they accept relatively lower allocations.3.13 Community Natural Resource Planning. The community-based natural resourcesmanagement planning consists of three different stages, each producing its own discretedocument: (a) the communftv land use master plan (SAC) is established during the initialintervention of the project, mostly using participatory rural appraisal techniques. It describes theresource base, land use and land tenure features of the different parts of the area managed by a

-30 -

given community; (b) the establishment of the communitv management plan (PAC) implies thatthe community is already aware of the ecological, social and economic principles of sound ruraldevelopment. The document includes all improvements which could be envisaged in themedium and long term, in terms of agriculture, social and infrastructure investments; (c) finally,the communitv investment plan (PIC) selects from the PAC the activities to be co-financed by theproject. This document is detailed enough to allow the establishment of contracts needed for itsimplementation, once approved. The content of the PIC would be examined by the ECPG and/orthe Regional Coordinator to ensure its conformity with the investment selection criteriacontained in the project implementation manual (economic and financial viability, andenvironmental and socio-economic impact; see also para. 3.29). Depending on local conditions,the whole process might take 3 months to one year.

3.14 Proiect activities, recruitment and coordination. During project preparation,guidelines were established for project implementation (Annex 2). These include (i)implementation of community-based NRM plans; (ii) the skills development and publicawareness component; (iii) the gender issue and how to ensure participation in the process; (iv)the test approach to the land tenure issue; (v) implementation of participatory fuelwoodmanagement; and (vi) rangeland management. A draft of the project implementation manual hasbeen transmitted to the Bank for negotiation; it will be finalized and translated into Arabic as acondition of effectiveness (para. 5.02 (a)). In addition, the project preparation team has beenasked to draw up a manual of technologies to be implemented by the project, which is the aim ofan ongoing consultancy.

C. MONITORING AND EVALUATION

3.15 Careful monitoring is needed to help decision-makers obtain quick and regularfeedback on project implementation, and to make rapid adjustments when required. Because ofthe grassroots nature of the proposed project and its bottom-up approach, details on the exactlocation, type and number of investments at field level cannot be known before community NRMplans are agreed upon. The Project is inherently flexible, which makes the role of processmonitoring far more important, as well as more difficult, than a simple assessment of theimplementation of prescribed plans. A project monitoring system, including 20 indicators, hasbeen developed as part of the project's logical framework (Annex 10), out of which a set of sixkey performance indicators has been established (Annex 11) against which the achievement ofproject's development objectives will be assessed.

3.16 Collection and processing procedures of indicators selected to monitor theproject's implementation, outcome and impact are included in the project implementationmanual; they would be carried out under the coordination of the NRM specialist of the ECPG.

D. FINANCIAL MANAGEMENT, ACCOUNTING AND AUDITING

3.17 Project Management and Accounting. The project's computerized managementand accounting system has been designed. The software has been purchased and will be installed

-31 -

as a condition of effectiveness. Assurances have been obtained that, for all expenditures forwhich withdrawals from the Credit are made on the basis of SOEs, the Borrower shall (i)maintain records and accounts reflecting such expenditures; (ii) retain for at least one year aftercredit closing all records evidencing such expenditures; (iii) enable IDA's representatives toexamine such records; and (iv) ensure that such records and accounts are included in the annualaudit, and that the report of such audit contains a separate opinion as to whether the SOEs can berelied upon to support the related withdrawals (para. 5.01(c)). In order to facilitateimplementation of the component, accounting procedures satisfactory to IDA will be included inthe project's implementation manual.

3.18 The project would provide funds to establish revolving funds managed at thecommunity level in order to build up their financial management capacity (para. 2.14). Suchprovision would be awarded according to detailed guidelines included in the project'simplementation manual: (i) each community would only be granted a single operation of thiskind, dealing either with productive or commercial activities; (ii) preconditions to be met wouldcover organization (i.e., a management committee), regulation (clear rules of operation,maintenance and accounting), finances (advance payment of beneficiary contributions) and skills(training where required); and (iii) EMAT's financial manager would monitor these operationsspecifically.

3.19 Audits. The financial manager of the ECPG would maintain all project-relatedrecords and accounts, and would have these audited annually by independent external auditorsacceptable to IDA. All disbursements against SOEs, the Special Account and the four AdvanceAccounts would be audited separately. The accounts would be maintained in accordance withsound and internationally recognized accounting principles and practices satisfactory to IDA.The accounting management would provide interim and annual financial statements reflectingthe financial performance and position of the Project. An auditor's opinion and reportssatisfactory to IDA on such statements would be provided within six months of the close of thefiscal year. The auditor's report would include a statement on the adequacy of the accountingsystem and internal controls, the reliability of SOEs as a basis for Credit disbursements, andcompliance with financial covenants.3.20 Assurances have been obtained that (i) the records and accounts for the SpecialAccount and Advance Accounts would be audited for each fiscal year, in accordance withappropriate auditing principles consistently applied by independent auditors acceptable to IDA;(ii) the Borrower would furnish to IDA as soon as available, but in any case not later than sixmonths after the end of each such year, a certified copy of the report of such audit by saidauditors, of such scope and in such detail as the Association shall have reasonably requested; and(iii) the Borrower would furnish to the Association such other information concerning suchrecords, accounts and the audit thereof as the Association shall from time to time reasonablyrequest. During negotiations, the Mauritanian delegation has submitted a short list of auditingfirms to IDA for approval. The appointment of an auditing firm acceptable to IDA to auditproject accounts under a one-year automatically renewable contract, except in the case of poorperformance, will be a condition of effectiveness (para. 5.02 (c)).

-32 -

E. REPORTING, SUPERVISION AND MID-TERM REVIEW

3.21 Project reporting. The project's ECPG would issue semi-annual reports on thestatus of project implementation. Reports, to be issued at the end of the calendar year, wouldconsolidate the whole year's results according to the standard format included in the project'simplementation manual and would provide a detailed technical and financial action plan (PETF)for the following year.

3.22 Proiect Supervision. Supervision missions would be carried out jointly or inliaison with other operations for which coordination is considered particularly important, such asthe PSA and the PDIAIM. Supervision of the Project's financial management, accounting andauditing follow-up would be undertaken as a separate exercise. Supervision missions wouldinclude, in addition to the task managers, experts with the various skills and experience requiredto assess project progress in financial management, popular participation, gender issues, training,and environmental impact. In view of the high supervision input that will be required foreffective implementation of this "process-oriented" project, such input will be clearly indicatedin the Bank's task contract.

3.23 Joint Annual Review. The Borrower and the Association shall undertake, duringthe first quarter of each calendar year, a joint review of the Project in which representatives ofADCs may be invited to participate. Such review meetings would be particularly important in thecase of the proposed project, since, as noted elsewhere, village-level investments would bechosen during project implementation. This review shall cover, inter alia (a) the progress madein the execution of the Project, the review of the progress report of the preceding year; (b) theADCs adherence to the provisions of the MP, and proposed changes to said MP; (c) theimplementation of Sub-project Agreements; (d) evaluation of (i) the adequacy of the ADC'scontribution to Sub-projects; and (ii) the performance of the pilot pastoral program in accordanceto the agreed indicators; (e) a review of the recommendations of the Conseil de Surveillance andthe Comite de Pilotage ; and (f) the approval of the implementation program of the Project,including technical, financial and procurement aspects, for the current year. Not later than onemonth prior to each such review, the progress report for the preceding year shall be submitted forreview and comments. Following each joint annual review, action plans will be agreed andaimed at addressing major problems identified during the review.

3.24 Mid-Term Review. Assurances have been obtained during negotiations that:

(a) the borrower and IDA would conduct, not later than two and a half years afterthe date of Credit effectiveness, a mid-term Project Implementation Reviewwhich would focus on project development objectives and, in particular: (i)implementation progress, on the basis of which preliminary decisions would bemade on the Program's continuation; (ii) the experience gained under landtenure arrangements, with a view to setting up a time-bound Action Plan,including steps to replace, modify or implement the existing land tenureframework; (iii) following up the conclusions of the assessment of publicprocurement procedures and making adequate recommendations; (iv)

-33 -

evaluation of the training component by an external entity, with a view to apossible merger of similar programs at the subregional level; and (v) reviewingthe Action Plan aimed at strengthening the statistical data of the rural sectorpreviously prepared by the ONS (para. 2.17 (g)).

(b) not later than four weeks prior to such review, the Borrower shall furnish toIDA for its review and comment a report in such detail as IDA shall reasonablyrequest, including: (i) an evaluation of progress achieved in projectimplementation by the Borrower in general, and by its central, regional andlocal agencies in particular, in accordance with the provisions of respectiveimplementation agreements; (ii) a draft action program to be carried out untilthe completion of the Project, focused on the components stressed above; and

(c) promptly after completing the mid-term review, recommendations arising fromsaid review would be carried out as agreed by the Borrower and IDA (para.5.01(e)).

F. ENVIRONMENTAL AND SOCIAL IMPACTS

3.25 The objective of the Project is to halt and reverse the process of natural resourcedegradation in order to secure sustainable agricultural growth, enhance biodiversity andecological stability, and achieve sustainable livestock and wildlife management. Nevertheless,any program aiming simultaneously to enhance production and protect natural resources canhave potential negative impacts. These must be foreseen, and the implementation plan makesprovisions for their mitigation. Recent experience in neighboring countries has shown that,provided they are designed in accordance with sound environmental practices, natural resourcemanagement projects can very well precede rather than follow the finalization of the NEAP. InMali, the NRM project, which was implemented four years before the NEAP was issued,provided a forum for testing some important options (e.g., local management of NRM andinstitutional organization) which were later extended at the national level and subsequentlyincluded in the NEAP.

3.26 The Environmental Assessment, carried out as part of project preparation, hasconcluded that, in terms of potential negative environmental impact, actions envisaged under theproject vary greatly. Land conservation techniques (bunds, planting) have a mostly positiveimpact on erosion, while agricultural tillage and livestock grazing entail greater risks and, ifmismanaged, the possibility of worsening degradation. Water supply activities (wheels, pumps)present the risk of exhaustion of the water table.

3.27 The mitigation plan recommended by the environmental assessment recommends(i) including, in the planning of village investments, an assessment of existing water resources;(ii) coordination with Government services (i.e., departement de l'hydraulique), which is aprerequisite for the approval of communities' management plans by the CRD; (iii) the inclusion,

-34 -

in the training program, of an awareness of environmental risk; and (iv) implementation of aneffective monitoring system.

3.28 The Social Impact Study performed during project preparation identified areas ofpotential conflict, such as village delineation, access to water, access to rangelands, andcompetition over natural resources within the community itself and between the community andoutsiders. The study also identified areas in which the project is expected to have a positiveimpact, such as community empowerment, protection of the most vulnerable groups (the poor,women), development of human resources, and environmental protection. Finally, the studyrecommends (i) a concerted effort to identify vulnerable groups; (ii) an effective institutional set-up at the community level; and (iii) a well-designed training program (including conflictresolution).

3.29 In order to ensure that investment packages (PIC) to be implemented at villagelevel are both socially and environmentally sound, in addition to providing optimal economicbenefits, the project's implementation manual states that, in order to be executed, the PIC willhave to be assessed by the regional coordinators supported by regional technical services(DEAR, DRAP). This assessment will ensure that the PIC is sound (a) economically, usingstandard rates of return on major microprojects included in the package; (b) environmentallv, byassessing possible risks associated with the implementation of the PIC in terms of exhaustion ofthe water table, erosion and loss of soil fertility, and overexploitation of vegetation (forest andpastures); and (c) socially, by assessing the social equity of the proposed investments, and thecompatibility of the subsidy levels of the package with existing programs. Guidelines for theimplementation of these assessments are included in the project implementation manual.

- 35 -

IV. PROJECT BENEFITS, RISKS AND SUSTAINABILITY

A. PROJECT BENEFITS

4.01 The proposed project contains several novel features that, if successful, wouldincrease crop and livestock production in a difficult environment, as well as point the waytowards a solution to some of the more persistent social and enviromnental problems in the ruralsector. Project benefits can be grouped as follows: those directly increasing production at thevillage level; those that are felt nationwide (i.e. that have an impact beyond the project area);and those improving institutional and administrative capabilities.

4.02 Direct benefits can be categorized in three ways: preservation of the villagehabitat (e.g. through dune fixation; protection of woodlands; well construction and repair);improvement of subsistence production (e.g. through construction of small dams and waterretention dikes; contour bunds; anti-erosion dikes; vegetable gardening); and increasedmonetarv revenue (e.g. through establishment of orchards; woodlands exploitation for charcoalmaking; promotion of cottage industries).

4.03 Since the project is the first phase of a long-termn program, and the type andfrequency of investment actions chosen by the villagers is not yet known, it would not bemeaningful to calculate an economic rate of return for the project as a whole. Nevertheless, inorder to get a realistic idea of the projects' economic viability, three model village resourcemanagement plans have been drawn up in Annex 8: a pastoral model for the drier parts of theproject area in which livestock raising is virtually the only activity; an aWro-nastoral model forintermediate areas where cropping is becoming more important; and an agro-svlvo-xastoralmodel for the wetter parts of the project area, in which, in addition to livestock and cropping,wood resources are significant. Taken together, these models conform to, and are representativeof, the existing production systems in the project area. The investment choices for each modelhave been made, and the choices have been tested as to their conformity with eligibility andselection criteria. An internal rate of return has been calculated for most of the investments aswell as for each model as a whole.

4.04 The calculations show that the project would yield substantial direct benefits. Inthe pastoral model, execution of the pasture improvement program (improved water supply andintroduction of rotational grazing) would double livestock production in seven years due toincreased stocking rates, higher yield and better quality output. In the agro-pastoral model, thevarious investments in water harvesting would place place the production of sorghum, the basicstaple, on secure footing and increase output by about 45%. In the agro-sylvo-pastoral model,crop production and wood production would both be increased without risking resourcedepletion, and economic activities by women would be diversified. The return on individual

-36 -

investments ranges from 10% to 19%; the return on each model package reaches 12%, 13% and14% respectively (see Annex 8)

4.05 At the national level, the project entails four major benefits:

(a) since most project investments are expected to improve water availability andmake pasture and crop production more drought resistant, the project would helpto keep people on the land, thus reducing rural outmigration. This is animportant national policy goal: Mauritania is the only West African country withurbanization rates so high that its rural population has declined in absolute termsover the past 15 years (at rates between 0.5% and 1.5% per year) despite anoverall population increase of 2.5% per year, and Government bears a heavyburden of providing adequate infrastructure and urban facilities.

(b) disappearance of the forest and bush cover, and a decline in the regenerativecapacity of pasture land, are two of the most important environmental problemsthe country faces in the rural sector. The pilot programs for improved pasturemanagement and woodlands protection included in the project as part of thevillage resource management plans would, if successful, help to solve theseproblems and arrest and reverse environmental degradation over the medium tolong term.

(c) the establishment of village land resource management plans through the directinvolvement of stakeholders would lead to consensus solutions concerning landand water use. Land and water use conflicts over pasture lands, wells and woodresources are frequent, especially in times of insufficient rainfall. The projectwould thus directly contribute to a reduction of social conflict.

(d) since beneficiaries themselves will decide on, and participate in, the investmentsto be made, maintenance of infrastructure would be better ensured and its usefullife longer due to a greater sense of ownership.

4.06 The institutional set-up of the project also contains features that would further thecountry's ongoing process of decentralization of decision-making, to which the Government iscommitted. In order to firmly anchor decision-making powers at the beneficiary level, theproject would enter into contracts with Community Associations for the implementation ofadopted and approved plans. Moreover, the plans would only have to be approved by the localand regional authorities: by the Municipal Council of the municipality to which the villagebelongs, and subsequently by the Regional Development Committee under the RegionalGovernor. Thus, the Central Govermnent authorities would not intervene in the process. This"bottom up" approach would be new to the country and, if successful, would open the way toincreased power sharing with local authorities and villagers. Finally, the project would not havea free-standing implementation capability. It would instead rely on private contractors andsuppliers in addition to village labor for the execution of investments, on existing agriculturalservices for preparation of village resource management plans, and on the regional technical

-37 -

services of the Ministry of Rural Development for supervision of execution of works. Thetechnical services would be strengthened where necessary for this task. Replicability would thusbe ensured.

B. PROJECT RISKS

4.07 Project risks are largely non-quantifiable. They have been identified in the projectlogical framework (Annex 10) and can be grouped together with their likely impact and associatedmitigating measures, as shown below in Table 7.

Table 7: Non-quantifiable Project Risks

Risk Level Risk Factor Likely Impact Mitigation ProbabilityAbility of the Village investments not Project's institutional Lowadministration to implemented, public setup is expected toimplement the services remain ineffective mobilize existing

From project and skills remain poor. institutional resourcesproject and to boost itsinput effectiveness.to project Existence/appea- Unexpected social and Existing legal Mediumoutput rance of conflicts land tenure conflicts framework seems to be

within and between prevent rural communities adequate, andcommunities from getting effectively organization/conflict

organized. resolution skills wouldbe developed.

Relevant Although project is being In addition to existing Lowtechnologies to be implemented, technologies techniques, available inextended not relevant to communities' Mauritania and abroad,

From available requirements are missing. applied research wouldProject be carried out under theoutput project.to project Weak political will Current decentralization Recent evolution Lowoutcome from Government to policy would be called into towards decentralization

provide local question, and authoritarian and democracy seemscommunities with approach would be irreversible and woulddecision power implemented. be reinforced by all

donors.Extended period of Although rural Drought preparedness is unpredic-

From poor natural communities enjoy part of community NRM tableproject conditions (drought) conditions of genuine planning, and easier tooutcome empowerment, persistent implement in the projectto project drought prevents framework.impact production increase.

Persistence of Interest groups capture Education, adequate MediumFrom traditional forms of project's benefits, which legal framework, womenproject social organization are not distributed among participation,Impact to preventing equitable the poorest segment of the community organizationCAS distribution of population. income increase wouldobjectives project's benefits all tend to reduce this

I risk.

-38 -

C. FISCAL IMPACT OF THE PROJECT

4.08 The fiscal burden of the project on the Borrower is designed to be minimal, giventhe difficult financial situation of the country and the need to reduce the budget deficit. TheGovernment's contribution is limited to US$0.4 million over five years, representing the salaries(net of taxes) of existing government employees working in MDRE's field services who wouldbe seconded to the project. Other recurrent costs, as well as the wages of project personnel,would be met by the donor. After credit closing/project completion, costs related to the fieldlevel investments would be supported by the beneficiaries. Government's incrementalcontribution would be nil. The continuation of extension support would be needed, but this ispresently already included under the Agricultural Services Project. The long-term incrementalcost of extension support would be limited to the salaries and field allowances of AVBs and theirsupervision, approximately US$0.4 million per annum.

D. PROJECT SUSTAINABILITY

4.09 The project has been designed so as to optimize its chances of long-termsustainability. At the village level, investments would be implemented only after beneficiariesare effectively organized, rules of access to resources have been accepted, operation andmaintenance funds are being raised, and a system for their proper management exists. Oncevillages are organized, positive results are observed and additional production is generated,communities will be able to pursue on their own the process initiated with the project's help. Atthe municipal level, village resource management plans would be consolidated into "action plansfor municipal development", preparation of which was requested by the recent Congress ofMauritanian Mayors. At the regional and central levels, the project would be programmed andsupervised by the permanent technical services of the Ministry of Rural Development andEnvironment. At the international level. Mauritania would be part of the Sahelian/West Africannatural resource network currently being developed to foster an ongoing exchange of experiencebetween neighboring countries.

-39 -

V. AGREEMENTS REACHED AND RECOMMENDATIONS

5.01. The following assurances have been obtained during negotiations:

(a) during the scheduled Mid-Term review, the effectiveness of the nationalbidding procedures would be assessed (para. 2.29);

(b) procurement of the goods, works and consultant services required for theproject, and to be financed out of Credit proceeds, will take place in accordancewith procedures satisfactory to IDA (para. 2.31);

(c) expenditures to be made on the basis of SOEs will be carried out according tothe Association's procedures (para. 3.17);

(d) the project's Steering Committee has been established with terms of referenceand composition acceptable to IDA (para. 3.09) and semi-annual reports on thestatus of project's implementation are being issued by project management tothe Bank's satisfaction (paras. 3.21);

(e) the Borrower and the Association will conduct a mid-term review aimed atassessing project's past performances and current status, while designingactions to be taken to ensure the achievement of its development objectives(para. 3.24);

5.02 Actions to be carried out as conditions of effectiveness:

(a) the project implementation manual is acceptable to IDA and available inFrench and Arabic (para. 3.14);

(b) the appointment of project accountants is satisfactory to IDA and the project'scomputerized accounting system is operational (para 3.17);

(c) appointment of auditing firm of project accounts, satisfactory to IDA (para.3.20);

5.04 Recommendation:

With the above assurances and conditions, the project would be acceptable forIDA Credit of US$18 million, on standard IDA terms with 40 years' maturity.

-40 - ANNEX 1Page 1 of 2

Islamic Republic of MauritaniaRainfed Natural Resource Management Project

LIST OF PROJECTS RELATED TO

NATURAL RESOURCE MANAGEMENT. AND LESSONS LEARNED

Projects Funded by IDA:

* Project Technical Assistance to Rural Sector: (Cr-14140-MAU). This (now completed)IDA/UNSO project to strengthen MDRE's Environmental Protection Department hasshown that institutional development efforts whose sole aim is to strengthen public servicescannot make an effective contribution to environmental protection;

* Livestock II Proiect (Cr-16580-MAU), effective June 1987; closed June 1995, co-financedwith OPEC, AfDB and Norwegian financing, covered the entire rainfed zone. Despite someserious difficulties, it yielded valuable insights into the promotion of socio-professional andsylvopastoral resource management organizations that will prove useful under the PGRNP.Livestock II demonstrated that: (i) sub-sectoral projects cannot give producers' groups thedynamism they need; (ii) the creation of associations is not enough to ensure efficientresource management; and (iii) the success of any rural development program will dependon the assumption, by communities, of responsibility for its implementation;

* Aericultural Sector Adjustment and Investment Project (CR. 2093-MAU) has dealt rathersuccessfully with policy adjustments (land reform in the Senegal River Valley) andinvestments (irrigated perimeters in the Valley);

* Technical Assistance, Energv and Public Sector SupPort Proiect (Cr. 2167-MAU) includeda household energy strategy component aimed at reducing charcoal consumption,promoting substitute fuels, and developing the use of improved stoves. It did not addressthe supply side (forest management, fuelwood marketing) to be covered by the proposedproject;

* Agriculture Service Proiect, (Cr-2575-MAU), effective since 1994, aimed at providing thewhole rural sector with extension services, including agriculturists and herders. Theproposed project would be set up, together the PSA, within one single comprehensiveAgricultural Sector development program;

* Urban Infrastructure and Pilot Decentralization Project (Cr.2835-MAU), although it dealswith a different sector, is likely to play an important role in future activities dealing withcommunal organization;

* Integrated Development Program of Irrigated Agriculture (PDIAIAO, under preparation,would aim at (i) creating an enabling institutional environment in the sub-sector; (ii)restructuring irrigation management; (iii) upgrading farmers' skills and managerial abilities;(iv) consolidating existing irrigation schemes; (v) improving marketing and (vi) mitigating

-41- ANNEX 1Page 2 of 2

the ecological impacts of irrigation. It would be implemented in close coordination with theproposed project;

2. Projects Funded by Other Donors

* Tagant and Lac d'Aleg Proiects. currently financed by the European Community, haveobjectives and strategies similar to those of the proposed project, and are being implementedunder a single management staff, over three Regions where the proposed project would notintervene;

* Gestion des RessourcesNaturelles de I'Est Mauritanian GIRNEM (1991-1997). This German-financed project has accumulated experience that has proved useful in the preparation of theinstitutional component of the proposed project;

* Pro et de Lutte contre l'Ensablement et Mise en Valeur A rosvlvo astorale (PLEMVASP)(1993-1995). Co-financed by UNSO and UNDP. Implemented by FAO, aimed at dunestabilization, vegetation rehabilitation, control of desertification;

- Achram-DioukProiect (1992-1995). This project, financed by Germany, carried out valuableexperiments in exploiting flood recession techniques and in organizing communities foragrosylvopastoral land management;

- Proiet Rcpgional d'Apvui au Divelovpement Rural ( PRADER) (German financing). This areadevelopment project in the wilaya of Hodh el Gharbi, which is part of the implementationzone of the proposed project will, therefore, have a close relationshipwith it;

* Projet opderations villageoises POV (1992-1994), financed by the EU, involves small villageoperations in Gorgol, including water management works (mainly dams);

* In addition, the following projects have dealt, or still deal, with some aspects of naturalresource management:

* Barriere Verte du Trarza (BVT), French financing; 1994-1996;* Projet de Reboisement d'Agglomerations Situees sur la Route de l'Espoir (PRASRE),

financed by AfDB; 1994, ongoing;* Approvisionnementen EauAftout (AEA), 1988-1995, financed by IDB;* Hydraulique Villageoise et Pastorale du Sud-Est (HVPSE), 1988-1996, AfDB financing;* Hydraulique et Energie (HE), 1993-1994, French financing;* Ceinture Verte de Nouakchott (CVN), 1993-1995, French financing;* Protection de l'Aeroport de Nema (PAN), 1994-1995, French financing;

-42- ANNEX2

Page 1 of 7

Islamic Republic of MauritaniaRainfed Natural Resource Management Project

IMPLEMENTATION OF PROJECT'S ACTIVITIES

Community-based NRM Planning

I In accordance with the community-based NRM approach, the project's technical supportteams (EMATs) and extension agents (AVBs)would operate as follows:

(a) under the leadership of the EMAT's communications/organization specialist, andusing participatory rural appraisal (PRA) techniques in which project staff wouldhave been previously trained, the first phase of intervention aims at building trust,establishing Community development associations (ADC) and community technicalcommittees (GTC), This specialist would be responsible for the establishment of thecommunity land use master plan (SAC) defining the current land use and tenurestatus. No further activity would be started until this step is completed. The keyelement here is time.

(b) during the second phase, the common resource manag'ement specialist from theEMAT would extend the NRM planning methodology to the villagers, with a view tosetting up the community management plan (PAC), and to select, among the actionsincluded in the PAC, those which would be includes into the community investmentplan (PIC) to be co-financed by the project after being reviewed at communal anddistrict level, and approved by the Regional Governor. The focus of the communityinvestment plan could vary, depending on the situation, from a single limited actionto comprehensive programs involving entire production systems and populations.The key element here is flexibility.

(c) the financial and administrative specialist from the EMAT would subsequently helpthe villagers to carry out the community investment plan (PIC) once it has beenapproved, providing support for access to and management of funds and procurementof inputs and services. Finally, this specialist would monitor, on behalf of the Project,the effective delivery of goods and works (including labor provided by villagers)contracted for as part of the implementation of community investment plans. Pastexperience gained by similar projects inside and outside Mauritania, would be takeninto account.

2 The process described above is complex and time-consuming. Nevertheless, past experiencehas shown that community NRM can achieve its objectives provided that (i) the community NRMplanning process is demand-driven and takes into account the community's essential requirements;(ii) initial efforts are made to address the villagers' land tenure security; (iii) a comprehensive andculturally aware skills development program is carried out; (iv) the role of women is acknowledged

- 43 -ANNEX 2

Page 2 of 7

and encouraged; and (v) arrangements for the operation and maintenance of investments are clearlystated in the implementation manual and agreed upon by the community.

Skills Development and Public Awareness

3 The implementation of the proposed project requires new technical knowledge and skillsvery different from those presently available. Thus, the success of such a project depends onintensive human resource development. An interim training program will be in place at the timeof project start-up. The strategy for this component will aim at adapting the training program tothe Project's changing needs. The skills gap analysis and module design would be subcontractedto private training firms. The project would establish a database of training resources availablein Mauritania and neighboring countries (facilitators, resource persons, training facilities), whichcould be called upon for implementation of the modules.

4 Four different steps will be carried out by different entities working in close coordination:

(a) the first step consists of identifying target groups to be involved in the trainingprogram. This step will be handled by the ECPG's staff, with an eye to problemsidentified in the course of project implementation. Target groups include, in additionto project staff, the different community and village technical groups, technical andadministrative staff at the local, regional and national government levels, and thepublic at large.

(b) each group identified as requiring training is subjected to a "skills gap analysis"which pinpoints the missing skills -- e.g., pure technical knowledge, operationalprocedures, communications ability, etc. -- to be developed under the program. Aparticular procedure would be followed to develop targeted public awarenesscampaigns;

(c) "modules" or training processes of various durations are then designed for eachspecific target group and set of skills to be developed. These modules are based onparticipatory adult training techniques, including case studies, small group exercises,simulations and, in the case of village communities, techniques of PRA.

(d) once tested and adjusted, the training "modules' are delivered to their intended targetgroups by specialized facilitators assisted by qualified resource persons. In additionto the training of trainers, to be provided fortnightly to extension agents and monthlyto TSTs, these modules include, for instance, full-day village sensitization sessions,team-building workshops, short information seminars, and national public awarenesscampaigns.

5 In order to have some of the target groups ready to operate at effectiveness, an interimtraining and workshops program has already started This interim program would be a precursor ofthe several project-launch workshops to be held at the time of effectiveness, the cost of which wouldbe financed under the PPF. The experience acquired under similar components of the Burkina Faso

- 44 -ANNEX 2

Page 3 of 7

PNGT and Mali PGRN projects would be fully exploited through the use of tested training packagesand trainers with good performance records.

Gender and Participation

6 Due to the migration of men to cities and other countries, women are increasinglyresponsible for natural resource management. They supply household water and firewood andparticipate actively in agricultural work, especially in the rainfed areas. Any NRM program musttherefore take women into account to the same degree as men. Although women have a lesser roleof decision-makers in many traditional communities, a dynamic women's movement is afoot inMauritania, and many women's associations exist for agricultural work and environmentalprotection. Female extension agents are still rare, and the project will pay particular attention toextension programs geared to women, to improving female producers' access to extension services,and to developing tools and technologies adapted to their needs and abilities.

7 The proposed project would develop and implement a strategy that would enhance the role ofwomen in NRM. According to this strategy, the gender issue would not be tackled through separatecomponents targeting women (although this might be relevant in some circumstances). Instead, theissue would be dealt with by the entire project staff in its day-to-day operations. Guidelines forproject staff would be established as part of the skills development program, and decisions on thefollowing topics would be made under community NRM plans only after being discussed andaccepted by the village women's technical committees: (i) location and operation of water points; (ii)land-use planning (agro-forestry); (iii) movement and management of livestock; and (iv) choice,location and operation of collective food-processing equipment (mills, oil extraction plants).

8 In addition, the Project would include measures to: (i) encourage the establishment of villagewomen's sub-sectoral groups; (ii) have these groups consulted on all important decisions concerningvillage NRM activities; (iii) promote the participation of women in training sessions and meetingsorganized under the proposed project; (iv) recruit women as technical extension staff whereverpossible, especially at village level. Issues of a broader nature, such as land tenure and gender, wouldbe first addressed in the Valley. The project's achievements in dealing with the gender issue wouldbe monitored under the proposed monitoring and evaluation system, using appropriate indicators.

Land Tenure under the Project

9 The project would not establish a land cadaster whether of privately or collectively ownedlands, since such an endeavor is not considered necessary at the present stage, in the rainfed zone.Instead, the following approach would be applied

(a) during project preparation, a legal consultancy has been carried out, which hasestablish that the current regulatory framework of laws and regulations would allowfor the allocation of land, water and vegetation (rangeland, fuelwood) to well-identified users' groups under certain conditions and the Government hasacknowledged the existence of this legislation, and committed itself to itsimplementation under the project;

45 -ANNEX 2Page 4 of 7

(b) during project implementation, according to the project's approach of "land tenuretests", villagers willing to improve land tenure security in their area would beassisted by knowledgeable, locally-recruited resource persons who would help themreview current local land tenure practices, paying special attention to gender. Thereview would produce practical recommendations, addressed to technical andadministrative authorities, for improving the community's security of access tonatural resources. In areas of overlapping grazing rights between sedentary villagersand seasonal transhumant herders, special attention would be paid to theacknowledgment by villagers of all well-established seasonal grazing rights;

(c) at mid-term review, subject to prior consultation with technical and administrativeauthorities at regional and district levels, the recommendations made during theprevious phase would be reviewed and then tested for a fixed period of time; and

(d) prior to project completion, and after close monitoring of the land tenure tests by theECPG and local authorities, the results of those tests would be fully assessed and adecision would then be made either to discontinue the operation, to adjust it, or toformalize it. In the latter case, the test could be used for the further amendment ofland tenure regulations. This is when the potential usefulness of a formal delimitation(cadastral survey) of common and private land would be assessed, and when such acomponent would possibly be included in a follow-up project.

Fuelwood Management under the Project

10 The household energy strategy (SED) designed by ESMAP in 1990, focused mainly ondemand issues (substitution, improved stoves and pricing policies) with very little emphasis on thesupply side, such as the management of the sustainable fuelwood production and distribution (para1 .10). As a result of project preparation, the Mauritanian Government requested and was granted theresources to participate in the Review of Policies of the Traditional Energy Sector (RPTES) carriedout under trust fund financing to establish a comprehensive sector strategy dealing with the "supply"as well as with the "demand" side of renewable energy. A comprehensive household energy strategy(SED) will be designed according to the recommendations of the NEAP and in agreement with theGovernment. In the meanwhile, pilot participative fuelwood management operations would becarried out as part of the village investments component of the project. The labor costs in thefollowing table would be borne by the beneficiaries.

Table 1: Objectives and costs of the household energy component

Activity Nb. Sites Area Ha. Cost USS labor USS Total USSManasementGazetted forests 2 16,000 480,000 205,714 685,714Sylvo-pastoral 4 3,200 96,000 41,143 137,143Existing plantations 3 200 -New PlantationsSanddunecontrol 12 600 102,857 411,429 514,286Agro-forestry 6 300 47,143 167,143 214,286Total 726,000 825,429 1,551,429

-46 - ANNEX2

Page 5 of 7

11 The project's strategy would be to deal with four dimensions of the household energy sector:(i) it would establish a close linkage between supplv and demand for household energy throughcoordination with the Public Sector, Technical Assistance and Energy Project (Cr. 2167-MAU) andthe permanent structure to be established within the Ministry of Energy, which would deal with thedifferential taxation of fuelwood and charcoal marketed in major cities; (ii) it would pursueproactive coordination with related proiects and programs, and especially with the PDIAIM projectin the Valley, under which participatory management of pilot gazetted and private forests would beimplemented according to the ESMAP-RPTES approach; (iii) it would contain an enabling policyframework including legal right of access, taxation and tax collection; and (iv) it would participate inthe implementation of the whole stratev (enforcement of regulation, monitoring, organization andskills development of stakeholders) under a discrete institutional framework.

Rangeland Management under the Project

12 Past attempts to check the continuous degradation of collectively managed rangeland inMauritania have been mostly unsuccessful. Under the completed Livestock II project, the followingreasons for this failure were cited: (i) the pastoral communities has been insufficiently involved indecision-making; (ii) the technical principles applied had often been ineffective, with anoveremphasis on "stocking rates" that had little relevance under conditions of unpredictable rainfalland mobile production systems; (iii) an "agronomic" approach stressing the planting of exoticspecies rather than improvement of the ecological succession of native species; and (iv) certainfeatures of plant vs animals'interraction, while well acknowledged by pastoral communities, wereignored. Given the encouraging results of the holistic resource management approach in Chad, thisapproach would be implemented in two pilot perimeters (Hodh El Gharbi and Hodh El Chargui)under the West African Pastoral Pilot Program involving five other Sahelian countries with IDAcoordination. The amount of US$500,000 has been allocated in the project budget to implement thispilot operation.

13 The holistic resource management model, used in rangeland management as well as in theestablishment of the community management plan, is a thought process by means of which, afteridentifying the resources to be involved in management (family, village, tribe), the following stepsare taken: (i) agreeing upon goals acceptable to the whole community; (ii) assessing the health of theenvironment in systemic terms of water, mineral and energy cycle, and succession; (iii) selecting thetools and technologies most likely to achieve these goals; and (iv) carrying out the permanentmonitoring of results and the iterative adjustment of the management plan. Features of specialinterest in the model are its "testing guidelines" which any investment must pass in order to beimplemented. In order to be acceptable, the proposed action must: (i) reinforce the ecologicalsuccession; (ii) address the weakest link; (iii) deal with the causes of ecological degradation, ratherthan with its symptoms; (iv) ensure the highest result for a given cost; (v) be sustainable (renewableenergy and self-generated capital); and (vi) be acceptable to the society and the culture. Project staffhas already begun to be trained in HRM.

- 47 - ANNEX 2Page 6 of 7

Staff Recruitment

14 Staff recruitment would be phased according to a staffing defined by the project's Costab.The Project Director, the financial management staff, the ECPG technical manager, six members ofthe technical support teams, and 19 field extension agents have already been recruited under theproject's PPF. None of these being civil servants Additional financial management staff would berecruited for effectiveness while Project regional coordinators, remaining EMAT staff and additionalfield extension agents would start work immediately after credit effectiveness. The furtherrecruitment of additional extension agents would follow the phasing of village incorporation by theAgricultural Services project.

15 Recruitment for positions under the credit would be publicized and open to private, NGOand government staff willing to separate from administrative service. Terms of reference have beenincluded in the Project Implementation Manual to be ready by negotiation. Minimal requirementsand selection criteria would be agreed upon by IDA and the Administrative and FinancialDepartment (DAF) of the MDRE. For purposes of implementing the Project (particularly regardingthe delkgations' civil servants involved in project implementation), the Borrower would employ andmaintain staff with qualifications, experience, terms and conditions of employment satisfactory toIDA. In order to ensure effective staffing at the highest level, selection mechanisms, such as"assessment centers" would be put in place with the participation of IDA staff. Remuneration ofcontractual staff would be commensurate with the temporary scope of the contract, but should notresult in a disincentive to Government officers with similar qualifications and responsibilities.

Coordination with Other Projects and Programs

16 The proposed project would be closely coordinated with other similar or complementaryprojects and programs. This coordination would not be limited to projects indicated below, butwould instead aim to establish effective linkages with all projects and NGOs operating within theproject area. Such coordination would strive to: (i) take advantage of the experience gained by IDAand other donors' projects; (ii) build on the facilities and services (staff, equipment) available at fieldlevel; and (iii) ensure that the village communities covered by the proposed project would haveaccess to services and inputs provided by other national programs, when available.

(a) Aklg Lake and Tazant EU Project: This project is of particular importance to theRNRMP since the European Union has agreed to carry out parallel financing in thewilayas of Tagant, Brakna and part of the Trarza, under the single national levelmanagement of the proposed IDA project, and using a similar methodology.

(b) Apricultural Services Proiect. The objectives of both projects are complementary.While the Agricultural Services Project extends productive technologies to individualherders and farmers, NRM planning deals with the allocation of individual plots aswell as with the management of common land. Both projects intervenesimultaneously at field level as the two elements of a single rural support program:(i) RNRM's field staff would be housed in the Rural organization bureau (BOP) ofthe Delegation, which is the operational base of the PSA; (ii) field activities of both

- 48 -

ANNEX 2Page 7 of 7

projects would be planned at regional (Delegation) level, involving similarpersonnel, (iii) their training programs, including monthly and fortnight trainingsessions, would be established jointly and (iv) both projects would be implementedin the field by the same single extension agent (AVB).

(c) Household Energy Component (Cr. 2167-MAU) This project has made considerableprogress in implementing the demand, or urban, aspects of the strategy. Closelinkages will be established when designing the comprehensive domestic energystrategy (SED) for Mauritania.

(d) Urban Infrastructure and Pilot Decentralization Proiect: Although this project dealswith medium and large municipalities, and not with rural ones, it might lend supportin designing the process by which village land-use master plans are consolidatedwithin larger communal development plans (plans communaux indicatifs), a task forwhich MDRE staff is not well prepared.

(e) Inteeorated Development Program for Irrigated Agriculture, to be implemented in theSenegal river valley, is under preparation. It will be closely coordinated with theproposed project. Several important issues are common to both projects (herdmovements, fuelwood energy, intensive livestock production) and will be addressedin a coordinated manner.

(f) GIRNEM and PRADER both financed by Germany, have objectives and strategiessimilar in many ways to those of the proposed project. The close relationshipsestablished at the outset of project preparation will be pursued to the benefit of both.

- 49 -

ANNEX 3Page 1 of 3

Islamic Republic of MauritaniaRainfed Natural Resource Manaeement Project

CATALOGUE OF PLANNED INVESTMENTS

ANTICIPATED COST OF ACTIVITIES

Activities UM'OOO US$SURFACE WATER CONSERVATION (Cost /ha)

Dam'Diversion-type, with concrete sluice and a spillway, over 4 meters high,providing for 80 hectares of irrigated crops 300 2,140

Weirearthen contour weir, between 2 and 4 meters high, no sluice, with orwithout spillway, with upstream stone reinforcement 70 500

Stone embankmentsstone contour embankment, at least 2 meters high, 35 250

Earthen embankmentscontour embankment at least 1 meter high, earthen but with stone-filledgabions at weak points 14 100

HYDRAULIC WORKS (Unit cost)

New well2

well, average depth 4045 meters, including supervision of work, casing,superstructure, cistern, pulley-driven lifts, materials removal costs 3,500 25,000

New well3

well, average depth 20 meters, including casing and superstructure, nocistern or lifting device, built with local drillers and masons. UM70,000 perlinear meter 1,400 10,000

Well retrofitting4Deepening, plus repairs and new superstructure for existing wells 1,500 10,700

1 Source: such a dam would cost between UM100,000/ha (highly labor-intensive option) to UM525,000/ha(turn-key contract). Given the size of the investment (even with the labor-intensive approach), and the lowlevel of revenues to be expected from agriculture above the dam (e.g., sorghum with a gross production valueof UM 18,000 per ha. per year), this type of dam is not considered suitable for the project.

2 Source: contract awarded in August 1995 for Livestock II Project. Average cost for a 22-well program.

3 Source: Ashramn-Diouck Project, updated estimate as of July 1996.

4 Source: contract awarded in June 1995. Average cost for 64-well program

-0 - ANNEX 3Page 2 of 3

Production well drillinglproduction drilling (including three exploratory drillings), and piping,including material moving costs 2,300 16.430

Well-mounted liftine device: wind-Dowered-including installation and cistern for existing drill-holes 1,200 8,570

VEGETATION UPGRADING: (Cost/ha)

Pasture upDradin2rangeland survey, dune stabilization, mowing, hillside retention dams,support staff equipment (excluding irrigation), assuming rangeland of 0.4 2.9010,000 ha.

Forestrv-Pasture upgradingin existing forests, classified or not; signage, warden services, firebreak 6 42.90maintenance

Anti-sandine measuresestablishing a double hedgerow around the perimeter, interior windbreaks 120 860every 30 meters, with 3-meter spacing (planted with forage species)

Forestry-pasture Dlantinesdouble perimeter hedge, denser internal windbreaks (spacing 2.5 meters)

Eucalvyptus plantings 70 500400 trees/ha, surrounded by a double thorn hedge

Perimeter market-gardens' 100 710metal fencing (400 meters @ UM350/linear meter), seed, wateringequipment (@ UM900), hoes (@ UM950), shovels (@ UM800) andwheelbarrows (@ UM5,800); build reservoir (UM20,000) over existingwell

200 1,430EOUIPMENT AND CONSTRUCTION (Unit cost)

Cereals Storagebuilding only: UM 15,000/square meter

Manure pit 600 4,290pit only: UM2,700/square meter.

Source: Japanese assistance contract. Average cost of program of 220 production drillings, underway as of

July 1996

6 Source: estimate from local windmill builder, June 1996. Includes work supervision

The major expense here is the metal fencing, which amounts to 140,000 UM per ha (installation not included).A live hedge would cost only 6,300 UM per ha (installation included), but offers less protection against animalincursions and requires constant upkeep

- 51 - ANNEX 3Page 3 of 3

Rural Market Construction/Rehabilitation 27 200facilities and installations for an area of 1,200 m2

Eguivment rental costs 900 6,430trucks (for building tracks), per truck, per day;small tools (carts, wheelbarrows, shovels, hoes, for buildingweirs/embankments) per lot 20 140

60 430Artisan epuiDmentsewing machines, looms, per lot

MINI-FUNDS (Unit cost) 25 180

Working capitalpurchase of veterinary medications, by lotmarketing fund

100 715500 3,570

PROJECT COST SUMMARY

MAURITANIARAINFED NATURAL RESOURCE MANAGEMENT PROJECT

Components Project Cost Sunmary

% % Total(UM Million) (US$ '000) Foreign Base

Local Foreign Total Local Foreign Total Exchange Costs

1. Investissements Villageois 1 079,2 1 326,3 2 405,5 7 599,9 9 340,3 16 940,3 55 732. Encadrement Technique (cout hors taxe) 400,1 184,5 584,6 2817,5 1 299,5 4117,0 32 183. Appui et Formation 141,8 91,5 233,3 998,7 644,3 1 643,0 39 74. Programme Pilote Pastoral 42,9 29,6 72,5 302,4 208,1 510,5 41 2 1

Total BASELINE COSTS 1 664,0 1 631,9 3295,9 11 718,5 11 492,3 23210,8 50 100Physical ContingenciesPrice Contingencies 216,0 1172,4 388,3 1 520,9 1 213,9 2 734,7 44 12

Total PROJECT COSTS 1 880,0 1 804,3 3684,3 13239,4 12706,2 25 945,6 49 112

MAURITANIARAINFED NATURAL RESOURCE MANAGEMENT PROJECT

Project Components by Year - Totals Including Contingencies(US$ '000)

Totals Including Contingencies1997 1998 1999 2000 2001 2002 Total

1. Investissements Villageois 886,9 1 820,7 2 776,5 5 737,3 7 836,4 - 19 057,82. Encadrement Technique (cout hors taxe) 1 116,4 675,7 691,4 740,1 755,3 589,9 4568,73. Appui et Formation 674,7 618,0 179,3 153,6 129,2 10,2 1 765,04. Programme Pilote Pastoral 184,7 165,2 66,2 52,1 51,5 34,3 554,0

Total PROJECT COSTS 2 862,7 3 279,6 3 713,4 6 683,2 8 772,4 634,4 25 945,6

Ul

MAURITANIARAINFED NATURAL RESOURCE MANAGEMENT PROJECT

Expenditure Accounts by Components - Totals Including Contingencies(US$ '000)

EncadrementTechnique Programme

Investissements (cout hors Appui et PiloteVillageois taxe) Formation Pastoral Total

I. Investment CostsA. Genie civil 19 057,8 11,5 - 147,1 19216,3B. Equipement-materiel - 279,8 - 91,0 370,8C. Vehicules 935,0 - - 935,0D. Formation et appui - - 761,5 - 761,5E. Consultation-etudes - - 1 003,6 244,5 1 248,0 >

Total Investment Costs 19 057,8 1 226,2 1 765,0 482,5 22 531,6 1II. Recurrent Costs

A. Salaires-Main d'oeuvre - 2 409,0 - 53,5 2 462,4B. Deplacements - 362,7 - 18,0 380,7C. Fonctionnement vehicules - 241,9 - - 241,9D. Maintenance equipements - 328,9 - - 328,9

Total Recurrent Costs - 3 342,5 - 71,4 3 413,9Total PROJECT COSTS 19 057,8 4 568,7 1 765,0 554,0 25 945,6

TaxesForeign Exchange 10 396,5 1 401,5 686,0 222,1 12 706,2

C);

m 0

MAURITANIARAINFED NATURAL RESOURCE MANAGEMENT PROJECT

Expenditure Accounts by Components -Totals Including Contingencies(UM Million)

EncadrementTechnique Programme

Investissements (cout hors Appul et PilotsVi0lageols taxe) Formation Pastoral Total

1. Investment CostsA. Genie civil 2 706,2 1,6 - 20,9 2 728,7B. Equipement-materiel - 39,7 - 12,9 52,6C. Vehicules - 132,8 - - 132,8D. Formation et appul - - 108,1 - 108,1E. Consultation-etudes - - 142,5 34,7 177,2

Total Investment Costs 2 706,2 174,1 250,6 68,5 3 199,511. Recurrent Costs

A. Salaires-Main d'oeuvre - 342,1 - 7,6 349,7B. Deplacements - 51,5 - 2,6 54,1C. Fonctionnement vehicuies - 34,4 - - 34,4D. Maintenance equipements - 46,7 - - 46.7

Total Recurrent Costs - 474,6 - 10,1 484,8Total PROJECT COSTS 2 706,2 648,8 250,6 78,7 3 684,3

TaxesForeign Exchange 1 476,3 199,0 97,4 31,5 1 804,3

e s

MAURITANIARAINFED NATURAL RESOURCE MANAGEMENT PROJECT

Expenditure Accounts Project Cost Summary

% % Total(UM Million) (USS 000) Foreign Base

Local Foreign Total Local Foreign Total Exchange Costs

I. Investment CostsA. Genie civil 1 094,1 1 332,7 2 426,7 7 704,6 9 385,2 17 089,8 55 74B. Equipement-materiel 5,0 44,9 49,9 35,1 316,0 351,1 90 2C. Vehicules 12,3 110,8 123,1 86,7 780,2 866,9 90 4D. Formation et appui 78,8 20,9 99,7 554,9 147,3 702,1 21 3E. Consultation-etudes 81,9 83,1 165,0 576,4 585,4 1 161,8 50 5

Total Investment Costs 1 272,0 1 592,4 2 864,4 8957,7 11 214,0 20 171,7 56 87II. Recurrent Costs

A. Salaires-Main d'oeuvre 310,6 - 310,6 2 187,4 - 2 187,4 - 9B. Deplacements 48,1 - 48,1 338,8 - 338,8 - 1C. Fonctionnementvehicules 12,4 18,6 30,9 87,1 130,7 217,9 60 1D. Maintenance equipements 21,0 21,0 41,9 147,5 147,5 295,1 50 1

Total Recurrent Costs 392,0 39,5 431,6 2760,9 278,3 3039,1 9 13Total BASELINE COSTS 1 664,0 1 631,9 3 295,9 11 718,5 11 492,3 23 210,8 50 100

Physical Contingencies - - - - - - - -Price Contingencies 216,0 172,4 388,3 1 520,9 1 213,9 2 734,7 44 12

Total PROJECT COSTS 1 880,0 1 804,3 3 684,3 13 239,4 12 706,2 25 945,6 49 112

0

0 W

MAURITANIARAINFED NATURAL RESOURCE MANAGEMENT PROJECT

Expenditure Accounts by Years - Totals Including Contingencies(USS '000)

Totals Including Contingencies1997 1998 1999 2000 2001 2002 Total

1. Investrnent CostsA. Genie civil 960,6 1 893,9 2 788,1 5 737,3 7 836,4 - 19 216,3B. Equipement-materiel 258,7 47,3 11,5 18,1 18,6 16,6 370,8C. Vehicules 575,3 29,9 15,4 37,8 32,3 244,3 935,0D. Formation et appui 232,7 244,9 112,6 95,8 75,4 - 761,5E. ConsuKation-etudes 495,2 415,2 108,6 97,2 93,3 38,5 1 248,0

Total Investment Costs 2 522,5 2 631,2 3 036,2 5 986,3 8 055,9 299,4 22 531,6II. Recurrent Costs

A. Salaires-Main d'oeuvre 241,7 465,8 489,6 504,0 518,2 243,1 2 462,4B. Deplacements 42,4 73,2 74,6 76,8 79,1 34,5 380,7C. Fonctionnement vehicules 25,3 46,2 48,1 49,4 50,7 22,3 241,9D. Maintenance equipements 30,7 63,1 64,8 66,6 68,5 35,2 328,9

Total Recurrent Costs 340,1 648,3 677,1 696,9 716,5 335,0 3 413,9Total PROJECT COSTS 2 862,7 3 279,6 3 713,4 6 683,2 8 772,4 634,4 25 945,6

Ul

OCD

e l

MAURITANIARAINFED NATURAL RESOURCE MANAGEMENT PROJECT

Expenditure Accounts by Financiers(US$ '000)

LocalThe Association The Government The Beneficiaries (Excl. Duties &

Amount % Amount % Amount % Amount % For. Exch. Taxes) Taxes

I. Investment CostsA. Genie civil 11422,1 59,4 0,0 - 7794,2 40,6 19216,3 74,1 10443,7 8 772,7B. Equipement-materiel 370,8 100,0 0,0 - - - 370,8 1,4 333,2 37,5C. Vehicules 935,0 100,0 0,0 - - - 935,0 3,6 840,1 95,0D. Formation et appui 761,5 100,0 0,0 - - - 761,5 2,9 159,4 602,0E. Consultation-etudes 1248,0 100,0 0,0 - - - 1 248,0 4,8 623,2 624,8

Total Investment Costs 14 737,4 65,4 0,0 - 7 794,2 34,6 22 531,6 86,8 12 399,6 10 132,0II. Recurrent Costs

A. Salaires-Main d'oeuvre 2 009,8 81,6 452,7 18,4 - - 2 462,4 9,5 - 2 462,4B. Deplacements 380,7 100,0 - - - - 380,7 1,5 - 380,7 -GC. Fonctionnementvehicules 241,9 100,0 0,0 - - - 241,9 0,9 143,9 98,0D. Maintenance equipements 250,4 76,1 78,5 23,9 - - 328,9 1,3 162,7 166,2

Total RecurrentCosts 2 882,8 84,4 531,2 15,6 - - 3 413,9 13,2 306,6 3107,4rotal Disbursement 17 620,2 67,9 531,2 2,0 7 794,2 30,0 25 945,6 100,0 12 706,2 13 239,4

I ;

.0

O Z

MAURITANIARAINFED NATURAL RESOURCE MANAGEMENT PROJECT

Components by Financiers(US$ '000)

LocalThe Association The Govemment The Beneficiaries Total (Excl. Duties &

Amount % Amount % Amount % Amount % For. Exch. Taxes) Taxes

1. lnvestissementsVillageois 11 263,6 59,1 0,0 - 7794,2 40,9 19 057,8 73,5 10396,5 8 661,32. Encadrement Technique (cout hors taxe) 4037,6 88,4 531,2 11,6 - - 4568,7 17,6 1401,5 3167,33. Appui et Formation 1 765,0 100,0 0,0 - - - 1 765,0 6,8 686,0 1 079,04. Programme Pilote Pastoral 554,0 100,0 0,0 - - - 554,0 2,1 222,1 331,8 -

Total Disbursement 17 620,2 67,9 531,2 2,0 7 794,2 30,0 25 945,6 100,0 12 706,2 13 239,4 -n

'Vl

0 >i

- 60 - ANNEX 5

Islamic Republic of MauritaniaRainfed Natural Resource Management Project

ESTIMATED SCHEDULE OF DISBURSEMENTS OF IDA CREDIT-

IDA Fiscal Year Disbursements US$ Disbursements US$ Disbursements %& Semester Million p. Semester Million Cumulative Cumulative

FY98Dec. 1997 0.9 0.9 5June 1998 1.0 1.9 11

FY99Dec. 1998 1.1 3.0 17June 1999 1.2 4.2 23

FY2000Dec. 1999 1.2 5.4 30June 2000 1.4 6.8 38

FY 2001Dec. 2000 2.0 8.8 49June 2001 2.6 11.4 63

FY 2002Dec. 2001 2.9 14.3 79June 2002 3.2 17.5 97

FY 2003Dec. 2002 0.3 17.8 99June 2003 0.2 18.0 100

8 This schedule of disbursement was established assuming the project is the five years tranche of a 20-year program. Therefore standard

disbursement schedules does not apply: (i) it would be implemented over 6 years instead of the standard 7-year schedule in Mauritania;

and (ii) it maintains its annual pace of disbursement until implementation of the following tranche begins.

- 61 -

ANNEX 6

Islamic Republic of MauritaniaRainfed Natural Resource Management Project

PROJECT INSTITUTIONAL SET-UP

[ Project Steering Committee|

33 ' ~~~T echnical Ministry of Ministry of |CD 3 | Ministeries I l lnterior | | Rural Development

Cabinet (5)

Project's UCPG

Governor MDRE Delegationof the Region *) Project's Coordinator

EMATs

Regional DevelopmentSAC-PAC-PIC Committee

e 1partment Preparation Implementationfi_ 12 '(eview ACPCP PI

|Contractors

NGOSs _

g Q I C~Review I Convention 1

Extension Agent

Community_ev. Association

62ANNEX 7

Islamic Republic of MauritaniaRainfed Natural Resource Management Project

SELECTION CRITERIA OF PARTICIPATING COMMUNITIES2

Criteria Indicators WeightingVillage eligibility * geographic location (within selected

communes);* more than 100 and less than 1,000 inhabitants;

Socio-economical * viability and sustainability of activities carried 5sustainability out by community;Community social * degree of social cohesion (rather than its 5cohesion homogeneity (not a selection criteria);

* existence of effective socio-professionalorganizations;

Community past performances * time elapsed since dwelling was established; 5* community's ability in resolving conflicts, or

persistence of those;* performances and sustainability of investments

established by former projects;* spontaneous initiative from community to

protect the environment;

Community degree of * community's understanding and acceptance of 3commitment project's objectives, strategy and actions;

* community's acceptance of "project's rules ofthe game" and amount of beneficiaries'participation to village's investments;

Assessment made by Assessment of community's ability to participate 3other stake holders successfully to project's implementation:

* Administrative authorities;* technical services (extension agents)* independent (private sector, NGOs)

Availability of human * counterpart contribution being rather high, 2resources communities with manpower will be preferred

_ to those with high level of expatriation;

Ecological replicability * community's management plan likely to be 2replicable else where;

9 Rating to be applied as follows: 4: maximum; 3: much; 2: average; 1: little; 0: not at all. For criteria including several indicators, an

average is calculated over these different indicators;

-63 - ANNEX8Page 1 of 20

Islamic Republic of MauritaniaRainfed Natural Resources Management Project

INVESTMENT CHOICES AND ECONOMIC JUSTIFICATION

A. Introduction

1. The project is based on a participatory approach which allows beneficiaries to select thepriority actions to be retained under the Community Investment Program (PIC), provided certainselection criteria are adhered to. It is therefore difficult, if not impossible, to quantify beforehandthe type, size and frequency of investments of choice which makes it impractical to estimate arate of return for the project as a whole.

2. However, it is possible to design rural community models of the communities that are likelyto be found under the project; to make assumptions on their priority needs; to identify certaininvestments that would respond to these priorities; to ascertain that these investments would fallwithin the limits of the selection criteria; and to calculate a return on these investments. Using thisapproach, it is possible to estimate a rate of return on the overall investment "package" for eachmodel.

3. Three models have been developed: (a) a pastoral model, in which resources are almostexclusively limited to livestock, and which is likely to be found in the driest parts of the projectarea; (b) an agro-pastoral model, in which livestock activities are still preponderant but in whichcropping activities are already more important; and (c) an agro-sylvo -pastoral model, in whichin addition to livestock and cropping, forest and bush exploitation is an important activity. Thismodel is likely to be found in the wettest parts of the project area where forest and bushSavannah are present.

4. The models are summarized below. A description of the village is given; its mainproblems are noted; a hypothetical choice of actions has been made; the investment are testedagainst the eligibility criteria, and a cost/benefit analysis of the investment package has beenworked out.

1. The Pastoral Model

Description of the Area

5. The land area, which belongs to one or more villages, is predominantly used forlivestock grazing. Recession cultivation may occur on occasion, but occupies less than 5% of theland.

-64- ANNEX8Page 2 of 20

6. The village(s) has (have) one or more wells, which serve only as water points forlivestock and for human consumption; no irrigation is practiced.

7. The land area is located in the most arid part of the rainfed zone. Permanently residinginhabitants number fewer than 300 families. Nomadic herders frequently use the grazing area aswell as existing wells. The area is generally overgrazed; fodder resources are scarce and woodresources limited or non-existent.

Main Problems emerging from the analvsis

8. Overgrazing of the land, and the resulting decline of fodder production capacity, raisesthe problem of survival of the village. Free access to the land by nomadic herders withoutlimitations on grazing or use of well water has so far precluded any action.

9. The village only produces a fraction of its food needs. Contour bunding would make itpossible to increase cropland production, but due to hilly terrain, bunds need to be stoneprotected.

Moving sand dunes threaten to destroy village buildings and infrastructure.

Priority Actions Decided

10. To initiate a pasture management program, in order to reduce overgrazing, improvefodder production and eliminate conflicts between village inhabitants and nomadic herders. Anexisting well will be repaired and deepened, and equipped with a windmill and water reservoir toreduce watering (and grazing) time for nomadic herders. Herders, in turn agree to submit tograzing rules and water charges.

11. A tree and bush perimeter will be established to protect village infrastructure andcropland from moving sand dunes, and to fix the dunes (anti-erosion works).

12. Contour bunds will be built and partly stone protected, to increase village foodproduction.

Elig'ibility Criteria Test

The limits that apply to this model are the following:

(a) project financing limit: $ 100 per inhabitant, or $30,000 for the community.

(b) investments in water supply (wells, boreholes, etc.) cannot exceed 60% of totalinvestment.

-65- ANNEX8Page 3 of 20

(c) water supply investments are to be shared between project and villagers in a*800/o/20% ratio; land improvement, and erosion protection works in a 2 00/o/8 0%ratio.

The investment tables (below) show that:

(a) the overall investment would be about UM 6.1 million ($ 44,000), of which theproject would finance UM 3.3 million (24,000) or about 55%, which is belowthe $30,000 limit for the community;

(b) the water supply investment is estimated at UM 3.3 million, or 54% of the totalinvestment which is below the 60% limit;

(c) project investment in water supply is UM 2.7 million ($19,000) or 81% of thetotal water supply investment, which is at the 800/o/20% sharing limit; and

(d) project investment in anti-erosion and land improvement works is UM 0.6million, or 21 % of the total land works investment which is slightly above the20%/80% sharing limit.

Economic Justification

13. The cost/benefit tables below show that the internal rates of return for the threeinvestments are: 13% for water supply combined with pasture improvement; 20% for anti-erosion works, and 11% for contour bunds. Labour costs in all these calculations have beenincluded. The overall return on the investment package is 12%.

-66- ANNEX8Page 4 of 20

PASTURE IMPROVEMENT: COST-BENEFIT ANALYSIS

EXPLANATORY NOTES

It is assumed that the Rural Community is in the arid zone of the project area, and has about5,000 hectares of grazing lands, with a grazing population of 1,500 cattle (of which 350 milk cows)and a goat and sheep population of 4,500.

The main initial investment is to increase the water supply and accelerate water flow, inorder to enable the establishment of rotational grazing. To achieve this, the existing well will berepaired and deepened; and a windmill with a water reservoir will be built. Furthernore, watercharges for well use will be introduced sufficient to pay for the operation and maintenance of thewater supply system.

In the without project situation, overgrazing would continue as a result of which, pastureproduction capacity is assumed to decline from the present situation (outlined below) to about 60%of its present level, with a proportionate decrease in animal off-take and milk production.

In the with project situation, output is expected to increase in five years to levels outlinedbelow. It is also assumed that all infrastructure works will be completed in one year and thatrotational grazing management will begin in year 2.

Situation before Project

stock number productivity sales/year adult weight unit totalvalue(UM) value(UM)

cattle 1,500 12% 180 220 1,540 227,200milk cows 350 150 liter 52,500 - 3.5 183,750goats & sheep 4,500 15% 675 20 140 94,500

total 505,450

Situation with Project at Full Development

cattle 1,500 22% 330 270 1,890 623,700milk cows 350 250 liter 87,500 - 3.5 306,250goats & sheep 4,500 25% 1,125 25 175 196,875

total 1,126,825

Islamic Republic of MauritaniaRainfed Natural Resources Management Project

PASTURE IMPROVEMENT: COST/ BENEFIT ANALYSIS ('000 UM)

Categories 0 1 2 3 4 5 6 7 8 9 10 11 12InvestmentsWell Repair 1 500Windmill 1 000Water Reservoir 200Borders 30Sub-total 2 730

Operating Costsextension 200 200 100 100 100Sub-total 200 200 100 100 100

Total Costs 2 930 200 100 100 100

Without Projectsale of cattle 227 212 197 182 167 151 136 136 136 136 136 136 136sale of milk 184 172 160 148 136 124 111 III II1 III I11 III IIIsale of goats/sheep 94 88 82 76 70 63 56 56 56 56 56 56 56Sub-total 505 472 439 406 373 338 303 303 303 303 303 303 303

With Projectsale of cattle 227 293 359 425 491 557 624 624 624 624 624 624 624sale of milk 184 204 224 244 264 285 306 306 306 306 306 306 306sale of goats/sheep 94 111 128 145 162 179 197 197 197 197 197 197 197Sub-total 505 608 711 814 917 1011 11271 1127 1127 1127 1127 1127 1127Total Net Benefits - 136 272 408 544 673 824 824 824 824 824 824 824Net Cost/Benefits -2930 -64 172 308 444 673 824 824 824 824 824 824 824Rate of Return 13%

- 68-- Page 6 of 20

COST-BENEFIT ANALYSIS: ANTI-EROSION WORKS OVER 4 HECTARE

EXPLANATORY NOTES

Size of the Perimeter

It is assumed, based on actual experience, that a bush and tree perimeter of about 30 metersbandwidth would protect an area slightly less than 100 meters behind it. Based on this, a perimeterof 4 hectare would protect an area of 120 hectare.

Infrastructure Protected

It is assumed that within the protected area, one well (present value 100,000 UM) and 15buildings exist (present value 40,000 UM each). If protected, they would all be amortized in 10years. Without protection, they would have to be abandoned after three years.

Cropland protected

It is assumed that, of the 120 hectare protected, 12 hectare is cropland with a present value of10,000 UM per hectare. Without the project, the cropland would be lost after three years. No valuehas been assigned to pasture land.

Islamic Republic of MauritaniaRainfed Natural Resources Management Project

ANT- EROSION PROTECTION WORKS OVER 4 HECTARE: COST/ BENEFIT ANALYSIS ('000 UM)

Categories 0 1 2 3 4 5 6 7 8 9 10InvestmenbFences 90Rastering 222sub-total Enclosure 312bush seedlings 264tree seedlings 54sub-total Nursery 318land preparation 162transport plants 84planting 33sub-total Plantation 279 o

sub-total investments 909Operating Costsirrigation 138 69maintenance 129replanting 129surveillance 24 12 12 12 12 12 12 12 12 12 12sub-total operating costs 162 210 141 12 12 12 12 12 12 12 12Total Costs 1 071 210 141 12 12 12 12 12 12 12 12wood production (value) - - 21

fodder production (value) - 3 3 3 3 3 12

infrastructure saved (amort. - 105 210 315 420 350 280 210 140 70 -

value)cropland saved (amort. value) - 60 90 120 120 120 120 120 120 120 120Total Benefits 165 300 435 540 470 400 330 260 190 120Net Cost/Benefits -1071 -45 159 423 528 458 358 318 248 178 108Rate of Return 20%

-70- ANNEX8

Page 8 of 20

CONSTRUCTION OF STONE CONTOUR BUNDS OVER 25 HA.

EXPLANATORY NOTES

Assumptions

The contour bunds would be stone protected in view of the hilly terrain and water flow velocityduring the wet season

Per hectare, 400 meter of stone bunds would be built (20 meter spacing)

Labour cost: 120 UM per linear meter.

Equipment and supplies: (I) gabions: 15 UM per linear meter over half the distance (5,000 meters);(2) carts and wheelbarrows for stone transport: 15,000 UM

Maintenance: 5% of construction costs

Islamic Republic of MauritaniaRainfed Natural Resource Management Project

CONSTRUCTION OF CONTOUR BUNDS ON 25 HA.: COST/BENEFIT ANALYSIS ('000 UM)

Categories 0 1 2 3 4 5 6 7 8 9 10Investmentsstone prot. bunds (labour) 1 200equipment and supplies 90sub-total investments 1 290

Maintenancestone prot.bunds (labour) - 70 70 70 70 70 70 70 70 70 70sub-total maintenance - 70 70 70 70 70 70 70 70 70 70

Totalcosts 1290 70 70 70 70 70 70 70 70 70 70

Benefitsincrem. soghum production600kg/ha at 30 UM/kg. - 450 450 450 450 450 450 450 450 450 450sub-total benefits - 450 450 450 450 450 450 450 450 450 450

Prod. Costsseeds: 60 kg/ha at 30Um/kg - 45 45 45 45 45 45 45 45 45 45labour:32 days at l50 UM/day - 120 120 120 120 120 120 120 120 120 120sub-total prod.costs - 165 165 165 165 165 165 165 165 165 165

Total Net Benefits - 285 285 285 285 285 285 285 285 285 285Net Cost/Benefits -1 290 215 215 215 215 215 215 215 215 215 215Rate of Return 11%

-72 - ANNEX

Page 10 of 20

2. The Agro -Pastoral model

Description ofArea

The land area is still predominantly used for grazing, but the scope for cropping (eitherrainfed or as recession cultivation) is greater (between 5% and 10% of the area).

The land is in an area with more rainfall than in Model A, and the village(s) contain(s) morepermanent residents than under Model A (assumption: 500 inhabitants).

The village(s) has several wells that have however insufficient flow to cover the livestockand human needs;

Main Problems emerging from the analysis

Nomadic herders use the grazing area, and conflicts among residents as well as betweenresidents and nomadic herders occur over the use of well water, which often is insufficient to coverthe needs of both cattle and the human population. Also, because of overgrazing, the rangeland isdegrading.

There is insufficient crop land for the subsistance needs of the community. A potentialexists to expand the land under crops, but it would need a more secure retention of water flowsduring the wet season

Priority Actions Decided

To alleviate the water and food production problems, three interventions have been decidedupon:

(a) repair an deepening of an existing well, together with installation of a windmill andwater reservoir, in order to start a range management program and serve the waterneeds of villagers and transhumants;

(b) construction of three retention dikes with a system of contour bunds downstream, inorder to increase the area under recession cultivation;

(c) deepening of one of the existing village wells, in order to establish a small irrigatedperimeter to cultivate fresh vegetables and fruits.

Eli-eibilitv Criteria Test

(a) The overall investment for the community would amount to about 6.35 million UM(S 45,600) of which the project would finance 4.6 million UM ($ 33,000) which iswell below the project financing limit for the community ($50,000);

73 - ANNEX8Page 11 of 20

(b) The water supply investments are estimated at 4.2 million UM ($30,000) or 62% ofthe total investment, which is slightly above the 60% limit;

(c) In order not to exceed the 80% project financing limit on water supply investments,the community inhabitants would have to contribute 20% or 840,000 UM ($6,000)to cover their part of the investment financing;

(d) The land improvement works are estimated at 2.15 million UM ($15,000) of whichthe project would finance 360,000 UM ($2,600) or 16% which is well below thesharing limit of 20%.

Economic Justification

The investment tables below show that investments in the pasture well and improvementprogram, in the retention dikes and contour bunds, and in the horticulture well and perimeter, wouldhave intemal rates of return of 13%, 10%, and 15% respectively. The overall internal rate of returnon the package (all labour costs included) is 13 %.

~ 74 - ANNEX8Page 12 of 20

CONSTRUCTION OF RETENTION DIKE AND CONTOUR BUNDS OVER 15 HA.

EXPLANATORY NOTES

Introduction

1. A good deal of experience exists in Mauritania with the construction of retention dikes.They serve to retain rainwater that would otherwise run off, thus permitting the sowing of a summercrop (if the ground is only damp or of an autumn/winter crop (on residual moisture, once the waterretained has evaporated) where cropping would otherwise be impossible. Invariably, a grain crop issown (sorghum or millet), typically without the use of fertilizer. Yields are low, averaging about 0.6tons per hectare.

2. A great variety of retention dikes exists. The simplest are earthen contour bunds erected bythe farmers themselves with hand tools, which generally need to be repaired or rebuilt frequently.The most sophisticated are dams with stone sidings and equipped with concrete spillways andcontrol gates, covering an area of up to 200 hectare and built by the Government or donor-financedprojects. Construction costs vary from 14,000 UM ($100) per hectare to up to 525,000 UM($3,700) per hectare depending on design, topography and area covered.

3. A sizable number of the more sophisticated type of dams have been built during or after thedrought years, or are under construction. Many have revealed themselves to be uneconomic, giventhe high cost of construction in relation to the value of production obtained (gross value of grainproduction: about 18,000 UM to 20,000 UM per hectare), and because they are beyond the capacityof the local population to maintain, requiring continuous Government or donor intervention forrepair or rehabilitation.

Data on the example retained

4. The dike for which the cost/benefit analysis has been made, is at the lower end of theinvestment cost range (about $280 per hectare). It has been chosen because it is at the limit ofwhat the local population can build and maintain with manual labour (with some project help in theform of tools and transport of stones). The assumptions are as follows:

-75 - ANNEX8Page 13 of 20

dike length 300 meters (depth of area behind dam: 500 meters)

earth works (labor costs) 800 UM per linear meterstone protection (labor costs) 700 UM per linear meter including stone transport

spillway (labor costs and gabions) 6,000 UM per linear meter over 10 meters (including gabions)20 UM per linear meter over 7500 meters (spacing every 20

contour bunds (labor costs) meters)

annual dike maintenance 8% of construction costsannual contour bunds repair 10% of construction costs

value of sorghum production 600 kg valued at 30 UM per kg.production costs:

seeds 60 kg. per ha. at 30 UM per kg.labor for land preparation, sowing and harvesting 35 days at 150 UM per day

Islamic Republic of MauritaniaRainfed Natural Resource Management Project

CONSTRUCTION OF RETENTION DIKE AND CONTOUR BUNDS OVER 15 HECTARE

Categories 0 1 2 3 4 5 6 7 8 9 10

Investmentseath works dike 240spillway 60stone protection of dike 210contour bunds 60 90sub-total Investments 570 90

maintenancedike repair - 20 40 40 40 40 40 40 40 40 40 <

contourbunds - 10 15 15 15 15 15 15 15 15 15 sub-total maintenance - 30 55 55 55 55 55 55 55 55 55

Total Costs 570 120 55 55 55 55 55 55 55 55 55

BenefitsSorghum Production - 150 235 270 270 270 270 270 270 270 270minus:seeds - 15 20 25 25 25 25 25 25 25 25labour - 45 60 70 70 70 70 70 70 70 70sub-total - 60 80 95 95 95 95 95 95 95 95

Total Net Benefits - 90 155 175 175 175 175 175 175 175 175Net Cost-Benefits -570 -30 100 120 120 120 120 120 120 120 120Rate of Return 10%

00q

_77 - ANNEX8Page 15 of 20

ESTABLISHMENT OF HORTICULTURE PERIMETER OF ONE HECTARE

EXPLANATORY NOTES

I The establishment of a horticulture perimeter of one hectare would necessitate thefollowing investments:

(a) repair and deepening of an existing well valued at UM 1.5 million (see table)

(b) construction, by manual means, of a reservoir to store well water forirrigation: valued at UM 20,000;

(c) purchase and installation of a metallic fence to protect the perimeter againstanimal intrusion: 400 meters of fence at UM 300 per linear meter. Total cost:UM 140,000;

(d) purchase of tools and supplies (hoses, spraying cans, shovels, etc.): estimatedtotal cost: UM 40,000.

2. Operating costs would consist of:

(a) the purchase of vegetable seeds, estimated at 20% of the value of the finishedproduct (this was found to be the average on a sample of the most frequentlygrown vegetables); and

(b) maintenance of the perimeter, i.e., fence repair and replacement, purchase ofnew tools, etc.: estimated at 15% of initial purchase cost annually, or UM30,000 per annum at full development.

3. The following assumptions have been made:

(a) the well would provide sufficient water to irrigate one hectare. In reality,horticultural perimeters are smaller (about one third of a hectare), but thewell -- usually located within the village-- also serves the villagers' potablewater needs and only one third of its production is used for perimeterirrigation;

(b) the most commonly grown vegetables are: mint, tomatoes, carrots, onions,cabbage and eggplant. Overall production has been conservatively valued at10 tons per hectare, with a production value of UM 80 per kilo;

(c) vegetable gardening would almost exclusively be carried out by villagewomen, who would not be otherwise employed; labor costs have thereforebeen excluded..

(d) the useful life of the investment has been estimated at ten years.

-78 - ANNEX8Page 16 of 20

Islamic Republic of MauritaniaRainfed Natural Resource Management Project

HORTICULTURE PERIMETER ESTABLISHMENT

Cost Benefit Analysis (Thousand UM p. Ha)

Years 0 1 2 3 4 5 to 10Investmentswell repair 1 500water reservoir 20metal fence 140tools, supplies 40Total 1 700Operating Costsseeds - 30 60 90 120 120irrigation system - 5 10 15 30 30Total - 35 70 105 150 150Total Costs 1 700 35 70 105 150 150ProductionVarious vegetables - 150 300 450 600 600(average:10 tons/ha at 80 UM/kg;cropping intensity:65%)Total Benefits -1 700 115 230 345 450 450Rate of Return: 15.2% |

79 - ANNEX8Page 17 of 20

3. The Svlvo -Agro -Pastoral Model

Description of Area

The village land area is typically located in the more humid part of the rainfed zone. It isstill mostly used for livestock grazing, but existing or potential cropland covers more than 10% ofthe area. Also, bush and woodlands are important, and a classified forest of 1,500 hectare is locatednear the village.

The village(s) is (are) larger than under model B (model assumption: 800 inhabitants) andinhabitants are generally permanent residents; few nomadic herders cross the area, but the village isclose to cattle routes.

Water is usually available in sufficient quantity for human and livestock needs. However,the extension of cropland is limited (and even existing cropland is losing topsoil) due to rapid runoffof rainwater,

Main Problems emergin2 from the Analysis

The impossibility of expanding crop cultivation and declining crop yields are hamperingvillage growth and causing emigration to the cities.

Increasingly, charcoalers are coming into the area to harvest trees for charcoal making, and adepletion of wood resources is beginning-to be felt, leading to increased social tensions;

The village has women's associations engaged in handicrafts, which would require training(to improve product quality) and funding (to permit better marketing).

Priority Actions Decided

In order to expand the cultivated area: construction of a dam with spillway, and a system ofcontour bunds and terraces would be needed

In order to arrest and reverse the yield decline on existing cropland, anti-erosion contourbund (digues filtrantes) would have to be constructed;

In order to halt unregulated exploitation of the woodlands: a woodland protection andmanagement program would be initiated for the classified forest, and a rural market for charcoalwould be established

Women's associations would be assisted in contacting and financing training facilities, and arollover fund of 700,000 UM for association marketing activities would be established

A women's association would be formed to operate a cooperative grain mill, which theproject would finance (cost: 1.4 million UM, or $10,000)

-80 -

Page 18 of 20

Eligibilitv Criteria Test

(a) the total investment for the community would amount to 15.6 million UM($111,400) of which the project would finance 4.8 million UM ($33,000) which iswell below the project financing limit of $80,000. The investment cost breaks downas follows: (1) woodland protection and management: 7.2 million UM; (2) retentiondikes with contour bunds over 135 ha.: 5.13 million UM; (3) anti-erosion bunds over120 ha.: 1.2 million UM; (4) grain mill: 1.4 million UM; and (5) rollover fund: 0.7million UM.

(b) observing the sharing limits, the project would contribute 20% of the cost of the landimprovement works, equivalent to 2.7 million UM; and 100% of the cost of thegrain mill and of the rollover fund, equivalent to 2.1 million UM.

Economic Justification

The cost/benefit calculations show that the intemal rates of return of the woodlandsprotection, the retention dikes worth contour bunds, and the anti-erosion bunds would be 15%, 13%and 13% respectively. The overall return on the package would be 14%. A return on the grain millhas not been calculated but its main benefit would be savings in women's' working time; theseinvestments have been shown to be popular in similar projects throughout the Sahel.

-81 - ANNEX8Page 19 of 20

ANTI-EROSION BUNDS ON EXISTING CROPLANDEXPLANATORY NOTES

IntroductionAnti-erosion bunds of the filtrating type (digues filtrantes) serve to slow rainwater runoff during

the wet season impeding runoff of topsoil and increasing the deposit of sediments on the cropland. Usuallyconstructed of earth with e vegetative cover, their main beneficial effect is to increase soil fertility, therebyincreasing yields. Experience in other Sahel countries points to an average yield increase of 20% if thebunds are well maintained. Even though the vegetative cover is done with drought resistant plants, suchbunds would only survive in the wetter parts of Mauritania (rainfall over 450 mm/year).Investment cost

It is estimated that the establishment of bunds costs 20 UM per linear meter (virtually all in theform of labour), and that a 20 meter spacing is required to maintain efficiency (500 linear meters perhectare). In the model, it is assumed that they would be established over 120 hectares, over 3 years (30hectares in year 1, 40 hectares in year 2 and the remaining 50 hectares in year 3). The resultinginvestment cost totals 1.2 million um over three years.Maintenance

It is estimated that maintenance would be 20% of investment cost each year (especially inreestablishing vegetative cover). This would amount to 2,000 UM per hectare of finished bunds per year.Benefits

Present average yields of sorghum are 600 kglha/year, valued at 30 UM/kg. A 20% increase wouldamount to 120 kg./ha, or a total gross value of incremental production of 3,600 UM/ha. Incremental labourcosts (mostly harvesting) are valued at 20% of incremental production, or 720 UM/ha. The average life ofbunds, assuming continued maintenance, is estimated at 15 years.

Under these conditions, the internal rate of return on the investment would be 13%.

-82 - ANNEX8Page 20 of 20

WOODLANDS PROTECTION AND MANAGEMENT PROGRAM

EXPLANATORY NOTES

Introduction

The total area to be protected and manged would cover 1,200 hectare eventually.

Actions would consist of (a) delimiting the woodlands borders; (b) fencing and gating ofmain entry points and access roads; (c) improvement of forest paths and establishing fire alleys;(d) guarding the perimeter; and (e) managed grazing and cutting within the perimeter.

The prerequisite to this program would be that a contract will be signed and approvedbetween the administration, the charcoalers and the village authorities that the forest would befor the exclusive use by the villagers, with forest management guidance by the administrativeauthorities and strict cutting limits for the charcoalers.

Investment Cost

Investment costs are roughly estimated at 6,000 UM per hectare, of which 4,000 UM perhectare would be for putting up fencing and gates. The remaining costs would be virtually all inthe form of labour; only an expense of 45,000 UM would be for the purchase of hand tools.

Benefits

A direct benefit of the operation would be the exclusive use of the perimeter by thevillagers for managed grazing and wood cutting. The gross value of production is estimated, onan annual basis, at 1000 kg/ha of fodder (sales price: 2 UM/kg.) and 0.6 cubic meters ofwood/hectare (sales price: 3 UMlkg).

The main direct benefit, however, would be in the preservation of the woodlands;without the protection and management program, and a continuation of unlimited cutting, it isestimated that within 10 years, the production value would decline to 20% of its present value.

The environmental benefits would also be substantial, in the form of lower losses oftopsoil and maintenance of plant diversity in the forest as well as on forest grazing lands. In theabsence of reliable data, however, these benefits have not been quantified.

On the basis of the direct benefits alone. the internal rate of return of the protection andmanagement program is estimated at 15%.

Islamic Republic of MauritaniaRainfed Natural Resource Management Project

PROJECT IMPLEMFNTATION SCHEDULE

Project's activities Responsibility 1996 1997 1998 1999 2000 2001 2002 2003Pre-&ffietiveness ...* implementation manual ECPG* participative negotiations IDA+GOM* Board presentation IDA %* financial management system ECPG* contracts with auditors ECPG* Effectiveness ECPG+IDA ...... :

Institution building: Recruitments* Coordinator GOM* ECPG Staff Project Coordinator w* EMAT Staff ECPG* Regional coordinators/accountants ECPG+Delegue* Delegation Civil Servants ECPG+DelegueInstitution Building: Eguioment* Offices Rehab & equipment ECPG* Vehicles ECPG

Technical Building: Research ECPG, consultantsTechnical building Workshops ECPG .

Technical Building: Skill Dev. inL*iII .*

* Consultants' identification ECPG* Gap analysis, module design ECPG, consultants* Monthly training of EMATs EMATS, consultant* Fortnight training ext agents ECPG, consultants

Project's activities Responsibility 1996 1997 1998 1999 | 2000 2001 2002 2003Public awareness pregcram ECPG+consultants IEvillaee invesiments* Selection of beneficiary villages ECPG+EMATs* SAT preparation EMAT+Delegation* SAT clearance Reg. Coord. +CRD* PAT and PGT preparation EMAT+Delegation* Contractual Arrangements EMAT+Reg. Coor.* Implementation of Investments EMAT+contractor ____.....

Review. Completion & Second Phase* SPN & Reporting IDA+ECPG* Mid-Term review IDA+ECPG* Preparation 2nd phase GOM+consultants* Appraisal, Negotiation, Board: IDA+GOM* Effectiveness 2nd phase IDA+ECPG* Completion Ist phase IDA o* ICR 2nd phase GOM+IDA II I_ 4_

Islamic Republic of MauritaniaRainfed Natural Resource Management Project

PROJECT LOGICAL FRAMEWORK

A. Project's Objectives

Description Indicators of Performances Assumption/ Risks

(threatening project's long term justification)* Crop and livestock yield increases * Rainfed cereal crop yield (sample)

* Livestock offtake (sample) * Evolution of traditional features of socialorganization which could hamper the

* Environment is rehabilitated water cycle, equitable distribution of project benefitsland fertility, vegetation; + Level of water table (sample) between all social groups;

+ Measurement of land erosion (sample)(Process of education, democratization,human rights)

B. Project's Outcome

Description Indicators of Performances Assumptions/ Risks

+ Women participation in decision making (threatening translation of project's outcome* Empowerment of local rural communities (PRA) into project's expected impact)

* % committed labor supplied annually(project) * No occurrence of several years of

exceptionally low rainfall;+ frequency of internal / external conflicts

* Improvement of land tenure security (PRA) (Community investment planing would* O&M fees collection from outsiders (project) include drought preparedness scenarios);

CD

oQ

C. Project's Output

Description Indicators of Performances Assumptions/ Risks* Technical services more effective and * Adoption rate extension messages (project) (threatening translation of project's output into

institutional support more conducive to * % time spent by project staff in the field project's expected outcome)community empowerment (Project)

* Effectiveness community organization * Technologies are available or well adapted;* Relevant technologies available and social, (PRA) (effective research and use of available

technical and financial capabilities enhanced; * % O&M fees collected from direct experience);beneficiaries annually (project)

* Government political commitment to carry* Village level investments implemented, * % sustainability of equipment according to out effective shift in decision making;

properly exploited and maintained; amortization plan (Project) (strengthening of on going decentralization* % micro-enterprises funds reimbursed process);

annually (Project) ____

D. Project's Inputs/Components

Description Indicators of Performances Assumptions/ Risks(threatening translation of project's inputs into

* Support of technical services in the rural * % disbursement of the component (project) project's expected outputs)sector * Number staff implementing project (id.) * Ability of the administration to implement the

project;* Research, extension and Skill development * % disbursement component (project) (relevance of the institutional setup)

of beneficiaries and other stake holders; * man/woman-day trained (id.) * Social conflicts (internal and external) likelyto disrupt project's implementation

* Community level investments * % disbursement component (project) (existence of relevant regulatory system; well* Number communities benefiting (id.) designed skill development)

* capacity of beneficiaries in participating incommunity investments(no risks if chosen by the community)

CD

'-*o

Islamic Republic of MauritaniaRainfed Natural Resource Management Project

KEY PERFORMANCE INDICATORS

PYO PYI PY2Goal Actual % Goal Actual % Goal Actual %

1. Estimated income ('000 UM p. capita) l x 1.1 |_ l

2. Land erosion (cms. p. year) x 0.93. Collection of O&M Fees (million UM p. year) 6 19 4. Contrib. from beneficiaries (million UM p. year) 115 2305. Credit Disbursement ('000 US$) 500 10006. Beneficiaries (Number persons) 3700 11000 m_

_____ PY3 PY4 _ PY5Goal Actual % Goal Actual % Goal Actual %

1. Estimated income ('000 UM p. capita) x 1.2 x 1.3 x 1.52. Land erosion (cms. p. year) x 0.8 x 0.7 x 0.53. Collection of O&M Fees (million UM p. year) 38 73 123 i

4. Contrib. from beneficiaries (million UM p. year) 340 680 9001_5. Credit Disbursement ('000 US$) 1500 3000 40006. Beneficiaries (Number persons) 22000 37000 n_75000n

1, 2: Base line data not available until sampling carried out; expected goals: highly tentative;3: 10% of consolidated infrastructures and productive investments;4: Village investments only.

Islamic Republic of MauritaniaRainfed Natural Resource Management Project

NATURE AND SOURCE OF CONSULTANT SERVICES10

International Sub-Regional National Total

_ SW '000US$ SW '000US$ SW '000US$ SW '000US$Studies* Assessment Public procurement system 3 8 3 3 6* Updating of groundwater master plan 66 15 6 6 12* Assessment of institutional matters 9 16 9* Studies for Mid-term review 5 9 5 5 10 X

* External audits 48 48 48 coSub-total 9 23 14 25 62 62 85 110

Consultancies on technical matters* Research sub-contracting 20 35 40 40 60* computerized financial management system 10 25 10 17 10 10 30* Institutional matters/ WID/ poverty 10 25 5 8 20 20 35* Natural resources management matters 10 25 10 17 10 10 130

Sub-total 30 75 45 77 80 80 155 232

10 These figures are strictly tentative and do not imply any obligation on the part of project management, in terms of subject, duration, cost or origin.

o

International Sub-Regional National Total

Consultancies on training matters* Design & implementation training program 10 25 20 35 100 100 130* Workshops design and implementation 15 25 10 10 25* PRA and beneficiaries' assessments 10 25 10 17 10 10 30* Public awareness package 10 25 10 17 10 10 30

Sub-Total 30 75 55 93 130 130 215 298Total 69 173 114 195 272 272 455 640

00

oo

MAP SECTION

IBRD 2S452

18. 140 12r 10' Forme,

MAURITANIA h1oomh r -- ALGER A

RAINFED NATURAL RESOURCE ShojMANAGEMENT PROJECT MAURITANIA

30' 30 - N-kcrrort* PROJECT HEADQUARTERS M A L I* PROJECT COORDINATORS & EMAT N-ee. *Tojbo. oj

_* UE COORDINATION CENTERS D.kor SNA ,_- NIGER

I IDA CREDIT GAMTHEI N on/ y

UE PROJECT' B,0'~'

ISOHYETS (ANNUAL RAINFALL IN MM, 1970-84) GISSAU GUINEA r '--°

NATIONAL PARKS MO R O CC O 0orrkry-/ \ DI-'i - OT[ , o

-8 PRIMARY ROADS

SECONDARY ROADS…8 M1 r-t s o f TprWdrceidby r-kT. Ti~~d..( Top b.u-g-- -irolTe o- rP

------- -~ TRACKS -o To -indott Theandor a err ,ncrr'or rro" .or

-r- RAILROADS -rr map do rot opry on roe pc'rr cf

O SELECTED TOWNS tr Wo'ro o-rtr ,Poryrrrer

(3 REGION CAPITALS , or, endreoenr o, orceptrrnce ofAIRPORTS N r

260 PORTS r . ALGERIA 26REGION BOUNDARIES Ate Ben Tili

- - INTERNATIONAL |±Cheqgg BOUNDARIES To Lo'Youe ir Mogrein

* UE Project includes only a -4portion of Trarza region. F O R M E R T R S '

! \ ~TIRIS-240 SPANISH ! ' ZEMMOUR 0' 24

SAHARA Ii Zou4rot ,' r' 2 /l

Fd6ritt ,-- ~ f

220 | To8ji, T our.ne / 2

22, ou I 22~~~~~~~~~~I

Nouadhibou - 6- oTrr io m .. I.la+IE1 i u6r 8,° uad,na,D R A Rne M A L I

NOUAPDHMOU

200 BANC I INCHIRI 2 z anguelti 20D'ARGUIN', Akj6__

Noudmghir- - o, tx

Noue-mg } L vHODH ECH \Tomassou, ± 4(i e NT . \

Aqui,,-- FAg ai8a 0 *ridiikia -- _>ocTi,ht / CHARGUINOUAKCHOTT TA ,

Congor6fo ., Moudje6rr '

|. Bouti imi t~ -Mpszta La h'jar a ........................... x~

'Ale J' <~' K (1' Tochekket -

DIAWLING < ma N

16' r Bassiko 10uno 533 1 6

SENEGAL Gour0y20 30t 0 ~~~~~~~~ ~~~~~1 00 200 300

) (KILOMETERS

14' 18' 16 14 12 10' 8 6 14

JANUARY 1997

IMAGING

Report No.: 16384 MAUType: SAR