Document of

THE ASIAN DEVELOPMENT BANK

FOR OFFICIAL USE ONLY

Report No. 4638-VA

APPRAISAL REPORT

REPUBLIC OF VANUATU

AGRICULTURAL EXTENSION AND TRAINING PROJECT

July 14, 1983

FILE COPYThis document has a restricted distribution and may be used by recipients onlyin the performance of their official duties. Its contents may not otherwisebe disclosed without World Bank or Asian Development Bank authorization.

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CURRENCY EQUIVALENTS(as of 15 May 1983)

-Currency Unit Vatu (Vt)$1.00 Vt 97.8369Vt 100 $ 1.0221

On 1 January 1981, the New Hebrides Franc was renamed Vatu.One Vatu was equal to one new Hebrides Franc. The Vatuwas initially pegged to the French Franc at Vtl.0O = 0.61875 FF.

Since 10 September 1981, the Vatu has been pegged to SpecialDrawing Rights (SDR) at the rate of VtlO6.20 = SDR 1.

In this Report an exchange rate of 97 Vatu to the Dollar isused as prevailing during Appraisal in February 1983.

NOTE]S

(i) In this Report "$" refers to US dollars.(ii) The Fiscal Year oif the Government ends on 31 December.

ABBREVIATIONS

CSB - Cooperative Savings BankDALF - Department of Agriculture, Livestock and ForestryDBV - Development Bank of VanuatuEDF - European Development FundEEC - European Economic CommunityFAO - Food and Agriculture OrganizationIRCC - Institut de Recherches du Caf6, du Cacao et autres

Plantes StimulantesIRHO - Institut de Recherches pour les Huiles et

OleagineauxMLNR - Ministry of Land and Natural ResourcesMFCIT - Ministry of Finance, Commerce, Industry and TourismNPSO - National Planning and Statistics OfficeVCF - Vanuatu Cooperative FederationVLDC - Vanuatu Livestock Development Corporation

GLOSSARY

custom - Social patternsin the village life of indigenousPacific islanders strongly influenced by theirideas on land ownership and spiritual beliefs.

customaryownership - Land tenure system in Pacific islands based on

"custom". Land "belongs" to a group, typically aclan, its ancestors and descendants. Purchase andsale of land are not therefore considered possibleunder "custom". Boundaries are vaguely defined by"ancestral utilization".

fermentary - Building and facilities used to ferment and drycacao beans.

fresh copra - Undried coconut kernel removed from the nut.

pulpery - Building and facilities used to process coffeecherry to parchment.

outer islands- All islands except Efate and Espiritu Santo.

ni-Vanuatu - Indigenous people of Vanuatu.

'} *~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

PROJECT FOCUS, DESIGN AND RATIONALE

About 85 per cent of the population of the Republic ofVanuatu depends on agriculture for its livelihood. In the agriculturesector, smallholders play an important role. Though most of theirproduction is for subsistence, they produce about 75 per cent of themarketed copra. A considerable portion of the country's exportsoriginate from smallholdings. After Independence, the importance ofsmallholdings has further increased relative to the country's plantationsector. Uncertainty regarding land tenure and shortage of labor haveled to a decline in investment and production in commercial plantations.The Government has therefore given considerable importance to schemesaimed at improving the efficiency of the smallholders.

The Government has been successful in obtaining significantexternal assistance for station-based agricultural research and forproduction-oriented smallholder projects such as replanting senescentcoconut, planting coffee and cacao, livestock development and improvingthe quality of primary processing units. However, the link betweenresearch and its application to smallholdings requires strengtheningKey areas in need of further improvement and strengthening are:(i) localized research to test the findings of research stations undervarying soil and climatic conditions of smallholdings; (ii) demonstrationof new practices on smallholdings to test their relevance; (iii) trainingof staff for major smallholder support services; (iv) training of youngsmallholders; (v) organization and facilities for extension, agriculturalinformation, livestock services and agricultural training; and (vi) overalladministrative and project implementation capability of the Department ofAgriculture, Livestock and Forestry (DALF).

The proposed Project will provide for: (i) experimentationplots and smallholder demonstration farms, simulating the smallholderenvironment, at eight Agricultural Centers of DALF on seven major islands;(ii) in-service training, overseas fellowships and study tours for theexisting extension staff, improved curricula for the National AgriculturalSchool at Tagabe and training for young smallholders at the demonstrationfarms together with necessary facilities; (iii) housing, storage, transportand radio-communication for the extension service; (iv) overseas fellow-ships and equipment for the information service; (v) veterinary laboratoryfacilities for the Livestock Service; and (vi) consultant services fortraining, extension, agricultural information and institution-building ofDALF.

The total cost of the proposed Project is $3.875 millionequivalent of which $2.5 million is in foreign exchange and $1.375 millionequivalent in local currency. The Project will be jointly co-financedwith IDA to the extent of $3.1 million, except for consultant serviceswhich will be funded exclusively by the Bank under parallel financing.The Bank would provide $0.8 million in foreign exchange and $0.3 million

equivalent of the local currency cost. It iIs proposed to provide the loanof $1.1 million from the Bank's Special Funds resources. IDA would con-tribute $1.6 million in foreiLgn exchange and $0.4 million equivalent ofthe local currency cost. The remaining local currency cost of $675,000equivalent and $100,000 of foreign exchange cost representing financialcharges during Project implemientation (20 per cent of total Project cost)will be borne by the Government. In addition, the Bank would provide atechnical assistance grant of $265,000 to strengthen DALF's technical andmanagerial capabilities. The Borrower will be the Republic of Vanuatu.DALF will be the Executing Agency for the proposed Project and technicalassistance.

The main achievement of the Project wou:Ld be improvement ofsmallholder support services for the benefit of about 19,000 smallholderhouseholds of Vanuatu, increasing their cash income;, expansion and diversi-fication of agricultural procluction and exports, increase in foreignexchange earnings, incremental government revenue from export tax andincrease in qualified manpower.

The main risks irL achieving the Project"s ultimate objectivesarise from the prevailing social pattern and the difficulty in determiniLngthe pace and direction of chaLnge to which smallholders c:an be motivated.While a large number of traditional smallholders may avail themselves ofthe proposed services only maLrginally, there are islands with increasingscarcity of land, having about one-third of the country's population,where the response to new agricultural practices is increasing. Moreover,the younger generation is likely to be involved in cash enterprises to agreater extent than their pre decessors in order to meet the increasingdemand for consumer goods and services.

The success of the Project also depends on the continuedprovision of external assistance to production-oriented programs and onthe Government's ability to meet local cost. The Gcovernment has shownconsiderable resourcefulness in attracting external finance and in meetingchanging budgetary requirements and is expected to be able to raise thefunds required. In addition, 35 per cent ($350,000) of the Bank's firstloan to the Development Bank of Vanuatu, has been earmarked for agriculture,stock farming and fishing. The risk of shortcomings in the implementationcapability has been addressed bv the provision of consultants and techniLcalassistance for establishing a basic management information system.

TABLE OF CONTENTS

Page

MAP Republic of Vanuatu (i)

I. INTRODUCTION 1

II. BACKGROUND 2

A. Agricultural Sector 2B. Smallholder Production 3C. Smallholder Support Services and Constraints 4D. External Assistance to Agriculture

and Implementation Constraints 9

III. THE PROJECT 13

A. Objective and Scope 13

B. Detailed Features 14C. Project Cost 19D. Financing Plan 20E. Environmental Effects 21F. Energy Impact 21G. Advisory Technical Assistance 21

IV. PROJECT MANAGEMENT AND IMPLEMENTATION 23

A. Executing Agency 23B. Accounts and Audits 23C. Procurement and Consultancy Services 24

D. Project Implementation 24

V. PROJECT BENEFITS, JUSTIFICATION AND RISKS 27

A. Benefits and Justification 27B. Project Risks 28

VI. CONCLUSIONS AND RECOMMENDATIONS 29

APPENDIXES 31

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IV

I. INTRODUCTION

1. A Smallholder Agricultural Development Project was firstproposed by the Government of the Republic of Vanuatu to the Bank inSeptember 1981 during a Bank Country Programming Mission. Subse-quently the Government requested technical assistance from the Bankfor project preparation. Provision of technical assistance was approvedby the Bank in June 1982 and a team of consultants prepared a feasibilitystudy and submitted their final report to the Government and the Bankin December 1982.

2. At the request of the Government, a Bank Mission visitedVanuatu to appraise the proposed Project from 2 February to 3 March 1983.The Mission was composed of D. Lepper (Project Economist/Mission Chief),C. de Burgh Codrington (Agronomist), C. Claasz (Country Officer),A. Mufti (Counsel), C. Brookson (Processing and Marketing Expert/Consultant) and E. Varona (Mass Communication Expert/Consultant). TheMission visited proposed Project sites in major islands of the countryand held discussions with Government agencies, the Development Bank ofVanuatu (DBV), the Vanuatu Cooperative Federation (VCF), primarycooperative societies and private firms involved in handling smallholders'produce. The Mission also interviewed rural community leaders andsmallholders. This Report is based on the feasibility study, theMission's findings in the field and,discussions with Government officials.

II. BACKGROUND

A. Agricultural Sector

3. Agriculture is the mainstay of Vanuatu's economy and accountsfor over 80 per cent of the country's total exports. About 85 per centof its population of 126,COO depends on agriculture for its livelihood.As in many of the South Pacific countries, the economy of Vanuatu has alarge subsistence-based rural sector. The small population is spreadover some 80 islands scattered in the Pacific Ocean. About 100 languagesare spoken in the country which also has a franco-phone and an anglo-phoneorientation. Its people follow various traditional "customs" and belongto different religious denominations. Land is generally plentiful inrelation to population and of the 1.2 million ha, some 0.5 million ha isclassified as potential agricultural land. The potential arable land perhousehold engaged in agriculture is on average 27 ha, of which only 11.5ha are utilized at present. There are, however, wide variations in popu-lation densities between islands resulting in different ratios of land useto land reserves!/ and some of the uncultivated land is not utilizedbecause of conflicting claims among custom owners.

4. Commercial farming, mainly large-scale coconut plantations,was introduced by European settlers in the last century. Production wasconcentrated on three of the larger islands, Efate, E.spiritu Santo andMalekula. Individual settlers and colonial companies claimed large tractsof land, only part of which (about 15 per cent of utilized agriculturalland) could be developed in view of inadequate labor available for plantationwork on a continuous basis. Uncertainty with regard to land tenure afterthe country's Independence in 1980 led to a decline in investment andproduction in the plantation sector.

5. Exposure to European ways of life and farming practicesinfluenced the country's social and economic development. The desire forcash goods and services led smallholders at subsistence level of farmingto establish their own coconut groves to get some money. However, sub-sistence farming is widespread and the traditional way of life based on"1custom" and associated ceremcnies continues. Barter is widely practised,with smallholders directly exchanging dried copra for consumer goods.While there is an increasing demand for non-subsistence goods and servicles(such as schooling, health service, consumer goods), its magnitude andeffects on market-oriented prcduction are not known.

6. Smallholders currently produce about 75 per cent of themarketed copra and cocoa and rear about 30 per cent of the cattle. The

1/ See Appendix 1, Table 1.

government's agricultural development strategy aims at increasingsmallholder production and encouraging rehabilitation of the plantationsector. With limited qualified manpower, improvement of the plantationsector would appear easier than smallholder development. However, theplantati,n sector faces major obstacles to progress arising from aconstitutional provision whereby all "alienated" lands would be returnedto the indigenous custom owners or their descendants. Former plantationowners may negotiate a lease with custom owners or alternatively claimcompensation for land improvements, according to legal provisions.Implementation of these steps has been hampered by conflicting claims bygroups of custom owners. The former expatriate owners hold that thecompensation provision is unfair, while the government or custom ownersdo not have adequate funds to pay compensation. A system of land courtsis being established to resolve land disputes but it will take time toshow significant results. Hence, only limited expatriate investment inthe plantation sector could be stimulated. In these circumstances,smallholder development provides the major opportunity to increaseagricultural production and exports in the short and medium term.Accordingly, the First National Development Plan (1982-1986) placesconsiderable emphasis on smallholder agriculture and sets out targetsfor the Plan period including areas to be planted under different cropson smallholdings (2,650 ha of coconut, 3,600 ha of cacao and 700 ha ofcoffee).

B. Smallholder Production

7. Smallholders in Vanuatu are farmers working on land to whichthey have a 'claim' under customary ownership without as a rule employingpaid labor. Under customary ownership, land rights are regarded asinalienable and are vested in a group, typically a clan, which recognizesrights to utilize such land in accordance with social status and needs.Production from smallholdings meets the farmers' subsistence requirements.Yields from root crops such as yam, taro, sweet potato, cassava are high(about 18 t/ha). As they are also easy to cultivate, it is unlikely thatthey will be substituted by grain crops such as rice, though importedrice is increasingly becoming part of the farmers' diet. Traditionalsubsistence practices normally yield a significant surplus over dailyrequirements, to meet unforeseen demands and social obligations. Thefood gardens which are established in newly cleared bush land, aremaintained for about three years before being allowed to revert to theiroriginal condition for an extended period of 15 to 25 years. The areaof land involved in this kind of rotation is about 8 ha on average. Mostof the smallholders' labor is devoted to subsistence practices absorbingan estimated 250 labor days per family in a year, which includes a size-able portion used for growing ceremonial yams and for raising boars valuedfor their circular tusks.

8. Smallholders' cash requirements are met mainly from theircoconut plantations. The total area covered by smallholder coconut is

estimated at about '`5,000 ha or about 2.3 ha per household on average-requiring about 38 man-days a year. Export of copra indicates an averageyield of 750 kg/ha and in addition fresh nuts are consumed on the small-holdings. Established coconut: groves yield a high return of about Vt770per man-day (about $8). About one quarter of the coc:onut: groves aresenescent (over 65 years cld) and another quarter will enter this groupin the next 20 years. To a smaller extent cacao (3,750 ha) was plantedby smallholders, but appears poorly maintained because of more stringentlabor requirements and lack of' processing and market-Lng support in thepast leading to low returns. Smallholders' involvement in coffee is atpresent marginal. The crop is, however, finding increasi.ng acceptanceon the southern island of Tanna with Government assistance.

9. The smallholder usually gathers fallen coconuts, when he isin need of cash, on average at: three-month intervals, The nuts are splitin the field and wet copra is extracted. In the absence of on-farmtransport, copra is handcarried by the smallholder together with someshells and husks for fuel to the nearest copra dryer, owned by him orshared on a neighborhood basis. Often, husks and shells are not carriedin sufficient quantity over long distances and proper drying is not possible,resulting in deterioration of copra. The smoke-drying process used iscrude and leads to further delerioration in color and extractable oilquality, depressing export: pr:ices by about 10 per cent below those pre-vailing in the Philippines. 'he Government has recently introducedquality grading standards for smoke-dried copra. As a result, there wassome improvement in qualit:y and overseas buyers who had threatened to stopcopra imports from Vanuatu, continued to buy.

10. Most of Vanuatu's cattle are reared on commercial plantations.lowever, cattle are increasingly accepted on smallholdings. Availableestimates indicate that about 30 per cent of the cattle are on small-holdings', however, in absolute terms these estimates vary between 12,000and 35,000 head. The lower figure seems more likely as there is onlylimited incentive such as good market outlets for smallholders on theouter islands. Smallholders pay little attention to improved husbandry,and calving rates are low at about 50 per cent. Unimproved pasture cansustain only one animal oii evesry two hectares. The Government has plansto develop breeding grounds in outer islands and transhil? young cattleto Efate and Santo for fat:tening and thereby make better use of limitedcapacity for transporting cattle.

C. Smallholder Support Services and Constraints

11. The-major constraints on more rapid agricultural developmentare socio-political, related to traditional 'Life-styles and socialstructures of village comnunities, customary land ownership, and thedesire to preserve ni-Vanuatu traditional values. T'he clan structure and

1/ See Appendix 1, Tablea 1.

-5-

the customary land tenure are not conducive to individual initiative,since the fruits of an individual's efforts are likely to be shared bymany other members of the clan as part of a wide range of obligations.Hence, the pace of development is set more by the community than by theindividual. Small clan settlements are physically separated from eachother by disputed and therefore undeveloped land. As the marketablesurplus is dispersed in small quantities, it would be uneconomical toinvest in transport infrastructure. Since no rapid change is expectedin the present socio-political setting, it would be appropriate to givepriority to resolving technical and administrative constraints on servicescurrently provided to smallholders.

1. Transport

12. Transport and handling facilities are best developed wherelarge-scale plantations or relatively high population densities providesufficient produce to justify investment in roads, wharves and centralstorage. Dispersal of smallholders mostly with small quantities ofmarketable produce does not provide economic justification for infra-structure development. The present arrangement is therefore likely tocontinue in many locations, which involves collection of smallholderproduce from a large number of beach points and its transport by smallboats to interisland vessels anchored off the coral banks surroundingmost of the islands. Multiple handling of produce from smallholdings tointerisland vessels is increasing marketing costs. The Vanuatu CooperativeFederation (VCF) has therefore started to set up central island stores togather produce from smallholdings and primary cooperative stores to reducehandling and shipping costs. Interisland transport capacity is consideredsufficient to pick up the produce offered for sale by smallholders. Ocean-going vessels call frequently at the two export ports of Port Vila on Efateand Luganville on Espiritu Santo. Storage facilities are also consideredadequate at both locations.

2. Marketing

13. Private trading companies, primary cooperative societies andVCF are involved in the marketing of produce and distribution of consumergoods to smallholders. Some 250 primary cooperative societies with anaverage membership of 47 each are registered with the CooperativeDepartment of the Ministry of Finance, Commerce, Industry and Tourism(MFCIT). They handle about 63 per cent of smallholders' copra and aquarter of the nation's distribution of imported food and drinks. However,post-Independence events led to an erosion of funds through excessive creditand embezzlement. The present financial status of primary cooperativesocieties is still being assessed by the Department of Cooperatives.

14. VCF was formed by about 100 primary cooperative societies. Inrecent years, it incurred losses but appears to be on its way to recovery,following a management contract with an Australian firm of consultants.

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VCF's share in copra marketing is increasing (presently albout 11 per cent)and a return to profitable operations is expected by its management. Itis at present not clear how VCF's policy of setting up central islandstores will affect the business of primary cooperative societies.

3. Credit and Banking

15. Deposit accounts are available to smallholders through theCooperative Savings Bank (CSB), operating as a division of VCF andemploying secretaries of VCF member cooperative societies as their agents.While about 5,000 smallholders are reported to maintain savings accounts,these appear to be largely inactive and most of the cash is kept at thesmallholders' homes. The recent expansion in business of CSB is due toits handling of Government transfers of salaries and funds to the islands.

16. Institutional credit is available to smallholders through theDevelopment Bank of Vanuatu (DBV). The Bank has provided a loan of $1.0million to DBV of which $350,000 are earmarked for agriculture.-! DBVutilizes the Department of Agriculture, Livestock and For,estry's LoanOfficers for loan appraisal and CSB agencies for repayment of principaland interest. In 1982 DBV provided 341 micro loans (generally below $50CI)each averaging about $350 mostly for agriculture and 21 loans for stockfarming (average loan size being about $2,000). Nineteen other loansfor agriculture (about $5,500 per loan) given by DBV cannot be considered.smallholder loans. In general, it appears that most smallholders preferto raise the limited cash required for their minor investmnents from theirclan members and friends rather than from a banking institution.

4. Know-How and Motivation

17. Information on coconut research is available from the Institutde Recherches pour les Huiles et Oleagineaux (IRHO), on Espiritu SantoIsland. Research on coffee, cacao and other cash crops will be undertakenat a station presently being established by the Institut de Recherchesdu Cafe, du Cacao et autres Plantes Stimulantes (IRCC) on the same island.The Government-owned Vanuatu Livestock Development Corporation (VLDC) onEfate is also undertaking some research in breeding and pasture establish-ment. The key element in communicating available know-how and motivatingsmallholders for change is the Extension Service Division of DALF forcrop production and the Livestock Service of DALF for animal husbandry.The recently established Information Office of the Ministry of Lands andNatural Resources (M4LNR) has a.n important supportive function. TheDepartment of Education has introduced compulsory teaching of agriculturein primary and secondary educa.tion. Post-secondary agricultural trainingis provided at the Tagabe National Agricultural School under DALF, in athree-year course with an intake of about 30 students every three years,

1/ Loan No. 616, approved 14 December 1982.

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half of whom take to the English medium while the other half do the Frenchmedium. Ni-Vanuatu plantation owners are provided a practical-orientedplantation management course for 11 months, this being a Catholic Churchinitiative supported by DALF's Training Division.

18. Constraints on effective functioning of various servicesprovided are manifold:

19. (i) Research. Station-based research as undertaken by theexisting institutions is not directly applicable to the varying edaphicconditions of the archipelago. It has to be tested at various locations.Presently, there are no funds to undertake such an effort. Introductionof new agricultural practices for the benefit of smallholders requiresknowledge of their impact on operations and of their implications interms of transport, processing and marketing. There are no facilitiesat present to test the suitability of new practices for smallholders.

20. (ii) Demonstration. Demonstration plots for coffee, coconutand cacao have been established on smallholder farms. In many cases theplots are located away from the main enterprises of the smallholding.Establishment of these plots is heavily subsidized and there are caseswhere the smallholder's involvement is minimal. Smallholders visit thesedemonstration plots on days arranged by the Extension Service. Thedemonstration effect is regarded as limited, since the demonstration plotis not perceived as an integrated part of smallholders' operations. Nofunds are available to introduce improved demonstration arrangements.

21. (iii) Training. Children attending formal education oftenleave their smallholdings at an early age and stay at boarding schools.They return only during vacation and their exposure to smallholder agri-culture is, therefore, rather limited. The Department of Education's effortsof introducing agricultural subjects into formal education will be limitedfor quite some time for want of qualified teachers and school-owned farmland. The medium used in education, French or English, is not usuallyspoken outside the school and is not sufficiently mastered in many caseseven after secondary education. The Tagabe National Agricultura:L Schooladmits about 30 students with this background every three years for athree-year course and continues teaching in French and English, whereasBislama, the local version of Pidgin English, is the lingua franca used byall ni-Vanuatu. The school has an adequate number of teachers but theylack special experience or training in teaching agriculture. The presentcourse content and ways of instruction are not closely geared to the futurework of the students, and alternative curricula have therefore to be developed.

22. Most of the extension service personnel have completed theTagabe course. While some have adjusted to the requirements of their jobs,many are yet to learn the skills and they need annual in-service refreshercourses. These courses are handled by staff without a professional back-ground in teaching agriculture.

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23. (iv) Extension Service. The Extension Service for Agriculturehas 49 professional staff on its roll, including two senior officers, onein charge of the northern part of the country and the other the southernpart. With the introduction of further regional subdivision, there aresix Extension Officers in charge of supervising Field Extension Officersand as many Specialist Extension Officers at Agricultural Centers. Inaddition, there are four field staff for 'Special Projects' (coconutplanting, cacao planting, IRHO), the Tagabe National Agricultural School,the Agricultural Information Office and the Plantation Management TrainingCenter. Two staff members are on overseas training. As a result, only29 staff are available in the field to work with farmers (or 33, if fourspecial projects staff are included) giving a ratio of about 600 householdsper extension worker on average. Such a ratio is considered adequate, ifgroup approaches form a significant part of the extensioln effort. Deploy-ment of the field force has to take into account transportation andcommunication problems and the ratio of households per field extensionofficer (Y7n-specialist) varies from less than a hundred to more than athousand-

24. The Government is attempting to provide nationwide extension

cowerage and present deployment of staff does not reflect population densityin relation to agricultural land. On Erromango, for instance, with only200 households and ample lands, one Extension Officer, onae specialistextension officer and one field assistant are stationed, while on Tannawith 3,700 households and relatively high population density, only threeextension officers (incluiding one specialist) are available.

25. Extension Staff are mainly recruited from among the graduatesof the Tagabe National Agricultural School. The maina se:Lection criterionhas been academic achievement rather than individual capiacity for extensionwork. As the graduates are young (between 18 and 20 years) and work withoutthe support of an experienced officer, they have problems of being acceptedby smallholders. As a matter of policy, the extension personnel areassigned to islands other than their native island so that they can performtheir duties without submitting themselves to the demands of their ownsocial structure.

26. The extension service has not been able to guide field officerson selection of farmers for particular programs or on effective organizationof their work. The approach is geared to serve individual farmers, andgroup efforts have practically not been tried. The 'achievement' isconsidered in terms of planting targets rather than successful operationof plantations with due regard to processing and marketing. As a result,isolated plantings of 0.25 ha to 0.5 ha are found scattered on islandsand there are doubts about their future profitable operal-ion.

1/ See Map and Appendix 1, Table 1.

27. No consistent records are available on the performance ofthe Extension Service. Evaluation of staff has not been undertaken sinceIndepend?nce. Contacts with the supervising officer are limited to abouttwo inspection tours a year and messages passed on by public telephoneor the Vanuatu broadcasting station. In some areas, field staff do nothave transport or adequate housing and storage. Under these circumstancesit is difficult for the Extension Service to achieve satisfactory results.

28. (v) Information Service. The Information Office, which wasrecently established, has been organizing a weekly half-hour radio programand has started to prepare reference books for extension staff and led amajor campaign for copra quality improvement involving radio, posters andt-shirts. Currently the staff consist of only one (expatriate) InformationOfficer and two trainees. Without sufficient funds for equipment andmaterials, production of popular materials of interest to smallholders andextension staff cannot be done satisfactorily. The scope for closecoordination between information and extension activities is thereforelimited.

29. (vi) Livestock Services. The Livestock Service of DALF isresponsible for livestock extension service, meat inspection, veterinaryclinical services, control and eradication of disease, and animal quarantine.The veterinary service has six officers, as many laboratory techniiciansand seven technical assistants for meat inspection and laboratory work. Theextension section consists of one extension officer supervising six fieldextension workers. Staff strength is considered adequate. Operation oflivestock extension outside the agriculture extension service involvessome duplication in supervisory cost, and there are difficulties incoordinating the activities of the services in the field; reorganizationof the arrangement should therefore be considered. Laboratory facilitiesare found insufficient for meat inspection and certification or forassistance in the control of major diseases. The present arrangement ofsending meat samples to New Caledonia for laboratory screening is foundunsatisfactory. To safeguard future exports of beef, which is of goodquality and amounts to 700 mt of boneless meat annually, and for adiversification of markets, it is essential that appropriate laboratorytests and credible certification are undertaken.

D. External Assistance to Agricultureand Implementation Constraints

30. The First National Development Plan (1982-1986) estimatestotal agricultural capital budget expenditure at Vt3,244 million or$33.4 million. Research activities would absorb Vt445 million or $4.6million. Various production-oriented programs are estimated to absorbVt2,536 million or $26.1 million. The rest of Vt263 million ($2.7 million)is earmarked for land use mapping, bujrcellosis (cattle disease) eradicationand bush clearing units. Since the revenue base is not yet sufficient forthe recurring budget, all funds for the capital expenditure program are

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expected to be raised from external assistance. Agreement with aiddonors is yet to be reached for several production-oriented programs.As of January 1983 aid donors had allocated funds amountinig to Vt512million or $5.3 million for ongoi7g and new projects, mostly (78 percent) for agricultural research.I

31. Major ongoing and planned programs are:

(i) Research

- Oil crop research is done by IRHO research station,including cocor.ut selection and breediLng, seedgardens, improved seed nuts for nurseries, researchon coconut pests and on intercropping coconut withcacao. The ongoing program is funded by I]RHO. Theexpenditure over the Plan period is estimated atVt207 million or $2.1 million. IRHO will be ableto provide sufficient seed nuts or seedlings toestablish 2,000i ha or coconut plantatiLons in 1985and 3,500 ha b) 1989. The research performanceby IRHO has been commendable and the research outputhas reached a stage when many findings could beapplied to field production in a meaningful manner.

- Cacao and coffee research is conducted by IRCC, asan ongoing project with a research station beingestablished., to undertake improvement of plantingmaterial for coffee and cacao; from 1984 onwards,it will also do research on pepper, vanilla, kava,tea, other beverage crops and spices. The expen-diture during the Plan period is estimated atVtl90 million or $2.0 million, funded by IRCC.IRCC can draw on its research experience in otherparts of the world. Considering IRCC's expertiseand the availability of genetic mater:Lal andtechnology, loc:ally applicable results can beexpected in the short term. As a result, consid-erable increases in yields from existing plantingsof cacao arnd coffee in Vanuatu could also be expected.

- National root crop trials, under a UN)P/FAO-supportedregional root crop development program, will beundertaken on Land made available by [RCC. The costis estimated al: Vtl.6 million or $16,000, with fundingby FAO/UNDP and New Zealand.

1/ See Appendix 2, page 3.

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Cattle breeding station of VLDC is being improvedto supply better breeding stock to ranches and

smallholders, and to undertake research on pasture,animal production, feed grains, and weed control.This is an ongoing project with Australianassistance, and further assistance is expected

involving Vt47.8 million or $493,000.

(ii) Production

- Coconut. The First National Development Plan provides

a planting target of 2,650 ha, reaching 1,000 ha in

1985/86, to be achieved by smallholders on newly

cleared bush land, supported by European Development

Fund (EDF). Total smallholder coconut area is esti-mated to be 45,000 ha with one-quarter of the area

being senescent. Total cost over the Plan periodis estimated at Vt149 million or $1.5 million.

- Cacao. A cacao development project aiming at

improving existing cacao planting and establishingnew plantings has been proposed by the Governmentand is being considered by aid donors. 3,000 ha of

new plantings are to be established over four years.

Existing smallholder plantings cover an estimated3,700 ha. The cost of the project is estimated at$1.5 million.

- Coffee. Development is proposed under a nucleus

estate-cum-smallholder concept for the sourthernisland of Tanna, with a 450 ha nucleus coffee estate

and 250 ha of smallholder coffee plots. Present

involvement of smallholders in coffee is insignifi-cant. The cost of the scheme, to be implementedover three years, is Vt212 million or $2.2 million.

Commonwealth Development Corporation (CDC) isreported to have expressed interest in funding theprogram. EDF has allocated Vt5.2 million or $54,000for the establishment of nurseries and production of

seedling.

- Pepper. A five-year development program includesnurseries, demonstration plots and transport,

distribution of pepper cuttings to smaller islands.One hundred ha of smallholder plantings are envisaged

under an EDF project with Vt6.0 million or $61,000allocated, beginning in 1983.

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(iii) Processing

Copra. Improved smoke dryers and conversion tohot-air dryers; Vtl5 million ($155,000) is allocatedfrom EDF and other funds as of Janua:ry 1983. Thetotal cost: of the program to build or improve 2,300copra dryers over the years, 1982 to 1984, is estimatedat Vt68.6 mill-ion ($707,000).

Cacao. Twenty-four community cacao fermentaries areto be built and EDF has allocated Vt:3.2 mnillion ($33,000)at present:, while total cost of the Project is estimatedat Vtl4.6 million ($150,000).

The Bank is formulating a regiLonal Technical Assistance Project onstrengthening agricultural research in eight South Pacific DevelopingMember Countries including Vanuatu. This Technical Assistance would becomplementary to the proposed Project and concerns the setting up ofresearch networks on coconut, crops associated with coconut and food cropsand strengthening of regional communication. Where necessary the regionalTechnical Assistance woulc also help strengthen national agriculturalresearch.

32. Details of thet planned capital expenditure according to theFirst National Development. Plan and actual allocation as of January 1983are shown in Appendix 2. The Government is confident of obtaining suffli-cient external assistance for production-oriented programas and does nottherefore see any need to avail itself of Bank financing for this purposeunder the Project. Substantial funds are expected from external sourcesfor station-based research, crop establishment and irLproved processingfacilities, but not for improvement of essential support services forsmallholders required to establish a link between the research stationsand smallholders and to imtplement effectively various programs for theirbenefit.

33. The large number of relatively small, externally-assistedprojects and programs and their administrative requirements varying acco.rdingto the donors, severely stretch trained and experienced manpower availableto DALF. Current accounting procedures geared to a recurrent budget and acapital budget, to which different sources contribute do not provide suffi-cient management information f'or taking decisions on priorities or con-tinuation of programs. DPLF has been unable to introduce routine projectmonitoring procedures, which are equally important for decision-making.The proposed Project would. require a basic management: inf'ormation systemfor DALF.

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III. THE PROJECT

A. Objective and Scope

34. The basic objective of the proposed Project is to improveessential smallholder support services by: (i) adaptive localizedresearch; (ii) extension service including demonstration; (iii) agri-cultural information service; and (iv) veterinary service together withassociated imnprovement in training and support facilities. The improve-ment is necessary to reap the full benefit of the investments madealready in station-based research and to ensure satisfactory resultsfrom various production-oriented agricultural programs financed by othersources. Improved services are expected to yield the following benefits:(i) Vanuatu's smallholders will be able to meet their cash requirementsto a large extent; (ii) the economy will benefit by the expansion anddiversification of agricultural production and exports, and by increasedforeign exchange earnings; and (iii) the Government will enlarge itsrevenue base as a result of tax on increased exports.

35. With a view to achieving the primary objective, the proposedProject will provide for the following:

(i) Experimental plots and demonstration farms located ateight agricultural centers of DALF on seven majorislands with support services;

(ii) Pre-service and in-service training, overseas fellowshipsand study tours for the extension service; training ofyoung farmers at the demonstration farms and assistanceto the Tagabe National Agricultural School;

(iii) Introduction of group extension efforts and clusterplantings; support facilities for the extensionservice in communication, transportation, housingand storage;

(iv) Assistance in the development of motivational campaignsand information materials by the Information Office;associated equipment and training fellowships;

(v) A veterinary laboratory and training for laboratorytechnicians;

(vi) Facilities and services for a Project Office; and

(vii) Ccnsuitant services for agricultural training, extensionservice and agricultural information.

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In addition, a technical assistance grant will be provided for institution-building with the purpose of establishing a basic management informationsystem for DALF.

B. Detailed Features

1. Experimental Plots andDemonstration Farms

36. Experimental plots and demonstration farms will be establishedat eight Agricultural Centers of DALF located on the islands of EspirituSanto, Malekula, Aoba, Pentecost, Ambrym, Vanualava, and Tanna (with twostations). Their purpose is to strengthen the link between research andits on-farm application by verifying the suitability of the researchfindings under various conditions and examine their relevance to small-holdings. The Government will acquire about five ha of land for eachcenter_/ and conduct experiments on practices suitable for the area andcrops as determined jointly by the research stations and DALF.

37. The Government will also acquire about 7.5 ha near each centerfor the development of demonstration farms.l/ Work on the demonstrationfarms would begin with traditional smallholder operations (involving foodgardens, pigs and poultry) for subsistence food requirements, including

activities related to ceriemonies or social status. However, instead ofreversing food gardens to bus'h fallow, cash-earning crops would be growLincluding coconut, cacao, coffee, pepper, and cattle rearing will also bieundertaken. The farm development plan would be worked out by the extensionofficer at the agricultural center and submitted to the principal extensiionofficer for approval. Whesreas the gradual change from t'he food garden/bushfallow rotation to a food garden/cash crop rotation imay take 20 years, thisprocess would be accelerated on the demonstration farms. Appropriaterecords would be kept of labor and physical inputs, expenditure, output andsales, and the extension 'service consultant will advise on the format of'such records. The demonstration farms would also feature improved housing(with concrete floor, corrugated iron roof, water supply and sanitaryfacilities, local material structure and wall panelling), on-farm transpiort(horses, bullocks, wheelbarrows as appropriate), processing and storagefacilities (hot-air copra dryer, cacao dryer/fermentary, coffee pulpery).In addition, each farm will have a bull of improved 'breed for use by small-holders in the neighborhood.

38. The activities on the experimental plot and the demonstrationfarm will be supervised by a farm manager who will be an experienced fieldextension officer. He will be provided with housing, office and storage!

1/ Loan Agreement, Schedule 6, para 8.

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facilities and a motorcycle. Under his supervision, up to four young

farmer trainees will be recruited for on-the-job training and remuneratedon a daily basis. A replacement for the farm manager will be recruitedfor the extension service from among the graduates of the Tagabe NationalAgricultural School.

2. Agricultural Training

39. The most immediate requirement in the field of agricultural

training is upgrading of the qualifications of the extension servicecadre. A consultant for agricultural training and another for agricul-tural extension will jointly determine the know-how requirements and willdesign appropriate curricula for in-service training courses. Theproposed Project provides for the cost of travel and per diem for 50participants in an annual in-service training course of one week duration.Furthermore, five workshops with 10 participants each are included tofamiliarize extension staff with teaching situations that would arise withthe introduction of group extension scheme (see para 45). The consultantswill also indicate the subjects to be selected for providing overseastraining at post-graduate or post-diploma level (such as general agri-culture, specialization on livestock, plantation crops, annual crops,extension service methodology, agricultural training). He will recommendappropriate arrangements for training, and advise on the selection ofsuitable candidates. The Project provides for seven one-year post-diplomaor post-graduate fellowships and 10 study tours each of four-month duration.

40. Training for young farmers will be provided by the farmmanager at the demonstration farms of agricultural centers. The farmerswill be trained in the maintenance of appropriate farm records andaccounts as they familiarize themselves with improved agriculturepractices. Their training will extend to at least one year. If suitablyqualified, they can participate in a revised course at the Tagabe NationalAgricultural School, or serve as assistants to field extension officers intheir home community to bridge the communication gap between the officerfrom another island and his community or set up a pilot farm replicatingthe development of the demonstration farm with the assistance of theextension service.

41. The course content of the Tagabe National Agricultural Schoolwill be revised by the training consultant to match the requirements ofthe trainees' future employment more closely. Since most of the requiredextension service positions have been filled by graduates of the Tagabecourse, future demand for those with this qualification is limited toreplacement of staff. In addition to extension staff, agriculturaltraining is required for agricultural loan officers, agriculturalinformation officers, staff needed for future government nucleus estate-cum-smallholder development schemes and teachers in primary and secondaryeducation following the introduction of compulsory agricultural instructionby the Department of Education.

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42. The training consultant will advise on the development ofsuitable training modules to suit various purposes, including such careeralternatives for extension service staff as teaching or agriculturalinformation preparation. Thile there is a need for a principal agri-cultural training facili-y as in Tagabe, its utilization calls for athorough review particularly to determine the type and length of course,proportion of practical work and classroom lectures, and medium ofinstruction (alternating courses in French and English or holding coursesin Bislama). The proposed Project, besides consult-ant services, providesfor a new students' dorm:itory at the Tagabe National Agricultural School.Audio-visual teaching aids and equipment and tools would be provided toa training workshop for repair and maintenance of agricultural machinery.The School will provide a building for the workshop which will be run bya mechanic to be recruited under the Volunteer Service arrangements.

43. Two overseas fel:Lowships for mass communica2ion of three-year duration are provided for information officers to upgrade theirskills. The information consultant will advise the Government on theselection of suitable candidates for overseas training.

44. Provision is made for two laboratory technicians to attendfour-month training courses overseas to familiarize thermselves with newlaboratory equipment provided under the Project.

45. DALF will set: up a system of bonding for DALF staff grantedfellowships to ensure that they return to Vanuatu after compl7tion of theirtraining and provide the service for which they are trained.!

3. Extension Service

46. The organization and operating procedures of the extensionservice will be reviewed and revised with the assistance! of an extensionservice consultant in order t:o reduce cost of its operation and increaseits efficiency. As part of t:his effort, group exterLsion. approaches(including cluster or blcck planting) considered most suitable for theclan structure of rural settlements will be introduced cn a pilot basis.These planting areas would be in different locations each involving aboutfive ha. This concept will be suitably popularized with support from theagricultural information office. Guidelines for this approach will begiven by the extension consultant. Supervision of its implementation willbe the responsibility of the regional extension officer of the agriculturalcenters.

47. Supervision and two-way communication between the fieldextension officer, his immediate supervisor and DALE' headquarters will beconsiderably improved with the proposed radio-telephone links. Mobility

I/ Loan Agreement, Schedule 6, para 12.

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of extension staff will be facilitated by four four-wheel-drive vehicles,24 motorcycles and 13 dinghies with outboard motor. Housing for fieldextension staff will be provided at 13 locations and for their assistants(trainees from the demonstration farms) at ten locations. Office andstorage facilities will be added for the field extension staff at sevenlocations. The locations will be decided by DALF based on, a review ofthe deployment of extension staff to be undertaken by the extensionconsultant.

4. Agricultural Information Office

48. Guidance for increase and orientation of the informationservice activities will be provided by an agricultural informationconsultant. (Limitations in local expertise are dealt with in thetraining component). The Project will further provide photographic,audio and office equipment and for assistance by local talent in thepreparation of information materials on a contract basis. These inputsare expected to strengthen the information service so that replacementof expatriates becomes feasible and materials of greater appeal tosmallholders, extension officers and schools are produced frequentlyand coordinated with other agencies involved.

5. Livestock Services

49. The proposed Project will support the establishment of a newveterinary laboratory with necessary installations, equipment and supplies.Veterinary expertise is available from other sources (Australia) andtraining for two laboratory technicians is provided under the trainingcomponent. With these inputs, the government's Livestock Services wouldbe in a position to undertake regular routine laboratory screening ofmeat samples and provide credible certification, essential for themaintenance, expansion and diversification of export market for thecountry's beef. Livestock Services would be equipped with appropriatelaboratory facilities to support pest eradication programs, should suchproblems arise as a result of greater density of cattle in the future.

6. Project Office

50. Provision is made for office furniture and equipment andincremental expenditure for the Project Office, to be used by themanagement information expert for DALF proposed under the technicalassistance grant and two counterparts to be trained by him. Thecounterparts would also be in charge of the Project Office, under theDirector of DALF, who is the Project Director.

7. Consultant Services-

51. The Project provides for individual consultants in threeareas of specialization, viz agricultural training, extension service

1/ See Appendix 4 for Terms of Reference.

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and agricultural information. Their services will be required for peri'odsof about three months in a year for three or four years during Projectimplementation and will be rescruited on a return basis. During theinitial period of their assignment, all of them are expected to be inthe field together so that they may assist each other in the formulationof proposals and recommendations to the Government in a coordinated manner.

52. The agricultural training consultant will be available fornine man-months spread over l:hree years. During his first term in thefirst year of the Project, he will determine the know-how requirement forvarious jobs, based on job descriptions worked out jointly with theextension service advisor and government agencies. He will evaluate theknow-how of the existing extension service cadre and prepare curriculafor in-service training courses for the next three years. He will alsoadvise the Government on the selection of participants for overseas training,indicate areas where training is required urgently and propose suitablearrangements for such training, including upgrading of ioreign languageskills of the participants. IHe will prepare an outline of future coursesto be held at the Tagabe National Agricultural School, with a view toreducing training cost and more closely matching trainirng with jobrequirement. He will also develop guidelines for young farmer trainingon the demonstration farms.

53. During his second term, the consultant will review imple-mentation of his initial reccmmendations, prepare curricula for appropriatecourse contents at the Tagabe National Agricultural School and develop anoutline of future in-service training courses. He will continue hisadvice on selection and arrangements for overseas training. During histhird term, he will further refine the Tagabe course curricula and trainingarrangements.

54. The extension service consultant will be engaged for 12man-months, consisting of four terms of about three months each. Duringhis first term, he will review the present organization and operationalprocedures of the extension service, identify bottlenecks that hinder acost-effective and achievement-oriented operation and make appropriaterecommendations to the Government. He will coordinate his recommendationswith the other consultants under the Project. Special attention will begiven to deployment of the extension force keeping in view the smallholders'willingness to adopt changes in agricultural practices, and to strengtheningof supervision and guidance of the extension force. Guidelines will beprepared for the introduction of group extension efforts and cluster orblock planting on a pilot basis. During his subsequent three periods ofassignment, he will further refine and revise earlier recommendations, alsrequired, and assist in their implementation.

55. The agricultural information consultant will be provided forthree periods of about three man-months each. During his first term, hewill, in cooperation with the consultant for extension service and the

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training expert, determine information requirements and priorities anddefine the most effective media approach (print, radio or personalcontact). He will advise the Government on the selection of the firstcandidate for overseas training (for 3 years) in mass communicationand on appropriate arrangements for such training. He will preparedetailed proposals on maintaining the information service with theassistance of local talent on a contract basis, during the absence ofthe trainees.

56. During his second term, the consultant will train localstaff in the utilization of equipment supplied under the Project, assistin the preparation of information materials and in the selection ofanother candidate for overseas training. The consultant will alsoprepare guidelines for the flow of information to the information officeand coordination of information and extension activities. He willpropose a program of major media campaigns to be undertaken during Projectimplementation. His third assignment will coincide with the return ofthe first trainee from abroad and serve the purpose of guiding the traineein the practical application of the know-how obtained.

C. Project Cost

57. The total cost of the Project including physical contingency,price escalation and financial charges during Project implementation isestimated at $3.875 million equivalent, of which $2.5 million is thedirect and indirect foreign exchange cost and $1.375 million equivalent,local currency cost. A summary of cost estimates is presented in Table 1and cost details in Appendix 3.

Table 1: Summary of Project Costa/($'000)

Foreign Local TotalExchange Cost Cost

I. Experiments and Demonstration 320 407 727II. Training 420 130 550III. Extension Service 590 308 898IV. Agric. Information Service 27 43 70V. Livestock Service 175 54 229VI. Project Office 8 50 58VII. Consultant Services 275 1 276

Base Cost 1,815 993 2,808

Physical Contingency 125 74 199Price Escalation 460 308 768Financial Charges during Project

Implementation 100 - 100

Total Cost 2,500 1,375 3,875

T.A. for Managemnet InformationSystem Advisorb/ 265 - 265

a/ Without duties and taxes, since none are levied on imports underdevelopment assistance.

b/ Local cost fNr the consultant is included in the cost of Project Office- in item vi a ove.

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58. The cost estimates are based on February 1983 prices formachinery, equipment, civil works and services. Appropriate physicalcontingen'ies up to 15 per cent have been included. Price escalationhas been computed at projected inflation rates varying from 8 per centto 6 per cent for local currency expenditure and from 7.5 per cent to6 per cent for the foreign exchange cost for the period, 1984-1988.

D. Financing Plan

59. The Government has requested Bank assistance to finance partof the foreign exchange cost and part of the local currency cost underco-financing arrangements with IDA. It is proposed that a loan of $1.1million be provided from the Bank's Special Funds resources. Of theproposed loan, 73 per cent would be for foreign cost financing and 27per cent for local currency expenditure. IDA's contribution would be$2.0 million, with $1.6 million for foreign exchangie cost and $0.4 millionfor local currency cost. The rest of local currency cost of $675,000equivalent and the foreign exchange cost of $100,000 representing financialcharges during Project implemaentation would be financed by the Government(see Table 2). The Bank and IDA would finance 80 per cient of the totalProject cost, 62 per cent: of which would be foreign cost and 18 per cent,local cost. IDA has agreed t:o co-finance the propoised Project jointly,except for consultant services which would be obtained iexclusively fromBank member countries and therefore financed by the Bank.

Table 2:: Financing Plan($'000)

Source Foreign LocaL TotalComponents of Funds Exchange Cost Cost

Consultants Bank 275 - 275Other Components Bank 525 300 825

Subtotal (Bank) 800 300 1,100

Other Components IDA 1,600 400 2,000Other Components Government l0oe! 675 775

Total 2,500 1,375 3,875

T.A. Grant Bank 265 - 265

a/ Financial charges during Project implementation.

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60. The Borrower would be the Republic of Vanuatu. It is alsoproposed that the Bank provide a technical assistance grant of $265,000to the Government of Vanuatu to establish an overall Project managementinformation system and improve monitoring capability of DALF (seeparas 63-65).

E. Environmental Effects

61. Under current agricultural practices, increases in populationand declining land resources would accelerate the rotation of food gardensand bush fallow, exposing land more frequently to erosion risks. TheProject would gradually replace the wasteful subsistence rotation by

improved agricultural practices and would encourage establishment ofperennial plantation crops and pasture as permanent soil cover, leadingto better land-use and erosion control. Fertilizers and plant protectionchemicals would be used only for crop establishmenit in small quantitiesunder the supervision of the extension service and no environmentalhazards are likely to result from their use.

F. Energy Impact

62. The major source of fuel to be used as a result of the Projectwould be crop byproducts such as coconut husks and shells for drying theproduce. These are available in plenty. Minor quantities of importedfuel would be required for the operation of additional motor vehicles.

G. Advisory Technical Assistance

63. Since Independence, the Government has been successful inattracting external assistance from bilateral as well as multi-lateralsources, much of it for agricultural activities. The entire governmentinvestment in agriculture originates from external assistance. Asizeable portion of recurrent budgetary expenditure is contributed bythe former Condominium powers (U.K. and France). The qualified manpoweravailable is stretched and its task is further complicated by variousadministrative and accounting requirements, differing from donor to donor.While concentrating its efforts on project implementation, DALF was notin a position to build sufficient capability for project monitoring andevaluation, including consolidation of accounts for cost determination.Thus little information is available to pinpoint shortcomings of ongoingprojects or programs.

64. The Government has requested Bank technical assistance ona grant basis to provide consultant services to:

(i) design and implement a management information systemfor DALF, including cost accounting and benefitmonitoring; and

(ii) train local counterparts in the application of such a

system for all agricultural projects.

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65. The advisor, whose Terms of Reference are detailed inAppendix 5, will be recruitecl as an individual consultarnt for 30 man-months, a period deemed necessary in view of the state of cost accountingin the country and initial qualifications of counterpart: officials. Thetotal foreign currency cost of technical assistance is estimated at$265,000. Local currency expenditure is covered under cost of the ProjectOffice, which the consultant is expected to share with his counterparts.Institutional strengthening cf DALF has been given high priority by theGovernment and neither local nor external funds are likely to be availablefor this purpose from other sources.

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IV. PROJECT MANAGEMENT AND IMPLEMENTATION

A. The '-xecuting Agency

6A. The Executing Agency for the proposed Project will be theDepartment for Agriculture, Livestock and Foresjuy (DALF) under theMinistry of Lands and Natural Resources (MLNR).- DALF, which wasestablished in 1952 as a Condominium agency did not get full supportof the Condominium powers (U.K. and France), who gave first preferenceto their own organizations. Since March 1981, there has been a 35 percent increase in staff of DALF and in October 1982, 128 staff wereemployed, of which 112 held budgetary positions, the rest being mostlyshort-term volunteers.

67. The Director of DALF reports to the Minister of Lands andNatural Resources and supervises three sub-departments of LivestockServices, Agricultural Services and Forestry Services respectively.Agricultural Services comprise the Divisions for Training, Extension,Quarantine Inspection and Agricultural Loans. Livestock Services carryout functions similar to Agricultural Services, but without furtherorganizational subdivision. The Agricultural Information Officer reportsdirectly to the Minister.- Since the Director of DALF as ProjectDirector is responsible for overall Project implementation, it is con-sidered necessary that the Information Officer should replyt directly tothe Director of DALF on all activities under the Project.-/ In practice,a number of informal working arrangements appear to supersede the givenorganizational structure, particularly at the field level. It appears

desirable to reflect actual working arrangements in the organizationalstructure. Accordingly, the terms of reference of the consultant forthe management information system include this aspect.

B. Accounts and Audits

68. DALF's accounting procedures are maintained in accordancewith the Government's budgetary and accounting practices, whereby separatebudgets are maintained for recurrent and capital expenditure. Therecurrent budget is funded by the Government's internal revenue and bycontributions by the United Kingdom and France. The capital budgetcomprises all other external contributions of a recurrent or capitalnature, including capital aid by the former Condominium powers. Whilethese buigetary arrangements were found convenient for the purpose ofmaximizing external contributions, they have led to complicated accountingprocedures. As a result, identification of expenditure by cost categoriesor cost -enters has become difficult.

1/ Loan Agreement, Schedule 6, para 1.2/ See Appendix 6.3/ Loan Agreement, Schedule 6, para 2.

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69. DALF's accounts are annually audited by a government auditor.The Government will continue to have DALF's accounts audited annually,including separate accourits i-or the Project. DALF will furnish to theBank certified copies of the audited accounts not later than six monthsafter the end of each related fiscal year. DALF will fuirnish to theBank such information on its accolnts and audits thereon as the Bankshall request from time to time.-

C. Procurement and ConsLltancy Services

1. Procurement

70. Procurement cf goods and services for the Project will becarried out in accordance wit.h the Bank's Guidelines for Procurement.2/Contract values will be too small to warrant International CompetitiveBidding and all contracts for machinery and equipment wiLll be awardedunder international shopping with the exception of off-the-shelf itemswith contract values below $10,000. Civil works are considered to betoo small and scattered in different locations of the archipelago, to b,eof interest to international competitors. The civil works will be awardedunder loca; competitive bidding on terms and conditi'ons satisfactory tothe Bank.- Some incremental operating cost and agricultural inputsoriginating from DALF will be met from force account (see Appendix 7).-'

2. Consultant Services

71. The consultant will be engaged on an individual basis. Theselection and engagement of consultants to be financed under the proposedloan and under the technical assistance grant wit}, be in accordance withthe Bank's Guidelines on the Use of Consultants.-

D. Project Implementation

1. Project Office and ProjectCoordinating Committee

72. DALF will be responsible for the implementation of the Project.A special Project Office (PO) will be established and suitably staffedwithin the Office of the Director of DALF. The Director of DALF willconcurrently be the Project Director and be responsible for the overallimplementation of the Project. A Project Manager will be appointed by

1/ Loan Agreement, Article IV, Section 4.06.2/ Loan Agreement, Schediule 4, para 2.3/ Loan Agreement, Schedule 3, para 3.4/ Loan Agreement, Schedule 3, para 4.5/ Loan Agreement, Schedule 5, para 2.

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the Project Director to undertake day-to-da',a management of the Project.-"The Project Manager shall work under the general control and guidance ofthe Project Director and report to him. The P0 will be responsible for:(i) all , --urement; (ii) engagement of consultants; (iii) arrangementsfor overseas fellowships; (iv) maintenance of separate books of accounts;(v) monitoring Project implementation; and (vi) pre ration of quarterlyProject reports in a format acceptable to tHe Bank.-' The Project Managerwill be assiysed by a full-time accountant and secretarial staff of DALFas required.-

73. A Project Coordinating Committee (PS7) will be set up toresolve matters that cannot be settled by DALF.- It will be chaired bythe First Secretary of MNLR, and will have as permanent members the FirstSecretary of MFCIT and the Director of the National Planning and StatisticsOffice (NPSO), and the Project Manager.

2. Land, Staff and Radio Frequency

74. For implementation of the experimentation plots and demon-stration farms, the Government has given an assurance that necessary landwill be acquired and made avai,lable prior to the year for which theirimplementation is scheduled.4 Experienced field extension officers, onefor each agricultural center with experimental plots and demonstrationfarms, will be assigned by DALF as farm managers. Graduates from theTagabe National Agriculturg} School will be recruited to replace theextension field personnel.-

75. The staff strength of the Agricultural Information Officewill be increased by two local staff, to ensure continued operation ofthe service during extended overseas training for two gOficials and toincrease the strength on completion of their training.- The Gove r)entwill make available to DALF a suitable short-wave radio frequency._

3. Implementation Schedule

76. The Project will be implemented over a five-year period(1984-1988) according to a schedule given Ln Appendix 8. The provisionof consultant services is phased over three or four years (for threemonths every year) for all three specializations to ensure continuityof recommendations, implementation and revisions. The establishment ofthe experimentation plots and demonstration farms is phased over thefive-year period, with the completion of the last farm's developmentextending to the post-implementation period. In-service as well as

I/ Loan Agreement, Schedule 6, para 2.2/ Loan Agreement, Schedule 6, para 3.3/ Loan Agreement, Schedule 6, para 4.4/ Loan Agreement, Schedule 6, para 8.5/ Loan Agreement, Schedule 6, para 6.6/ Loan Agreement, Schedule 6, para 7.7/ Loan Agreement, Schedule 6, para 10.

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overseas training will be an ongoing feature over the five-year period.The civil works and equipment of the Tagabe National Agricultural Schoolare phased after the initial field stay of the training consultant toreflect his views while making these investments. Radio telephoneequipment is scheduled for the second year; this would facilitateimproved supervision and flow of information necessary for an efficientextension service. The proposed implementation schedule has been preparedin consultation with DALF and is considered realistic.

4. Operation and Maintenance

77. The Government has assured the Bank that it will providenecessary funds, manpower, land and facilities required to ensure theimplementation, continued operation and maintenance of al.l Projectfacilities.l/

1/ Loan Agreement, Schedule 6, para 5; Article IV, Section 4.02.

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V. PROJECT BENEFITS, JUSTIFICATION AND RISKS

A. Benefits and Justification

78. The proposed Project will provide assistance to theGovernment's efforts to accelerate and diversify smallholders' agri-cultural development, by consolidating and improving key agriculturalsupport services and associated facilities such as localized research,demonstration, agricultural extension, agricultural information serviceand veterinary services. As a result, the existing shortcomings inthese fields are expected to be alleviated or eliminated.

79. The establishment of experimental plots at agriculturalcenters and application of research findings on demonstration farmsand smallholdings will provide a necessary link between station-basedresearch and on-farm application. The demonstration farms, operatedby local young farmers as trainees, will popularize improved agriculturalpractices in the context of a simulated smallholder operation rather thanas separate enterprises. Smallholders can easily visit the demonstrationfarms located at administration and communication centers in the island.The training of local young farmers is expected to result in an increasingreplication of demonstration farm practices on the islands.

80. As a result of various inputs under the Project, extensionservice staff's capability will be greatly improved. The staff will haveincreased mobility and better communication, essential for improvedguidance and supervision. The extension service will be supported by anupgraded information service. The consultants are expected to contributeto cost effectiveness and operational efficiency of the services. Localyoung farmers, trained at the demonstration farms will play a supportiverole in overcoming the communication gap between smallholders and extensionofficers assigned to communities, to which they do not belong. Pre-servicetraining will be revised and will more closely match job requirement,reduce cost of training and open perspectives for career alternatives.

81. The proposed Project would serve to maximize benefits frominvestments in station-based research and production-oriented programsfinanced by sources other than the Bank. The Government is confident ofattracting sufficient external funds for these purposes also in the future.Since many programs are related to export crops, the Project would con-tribute to an increase in foreign exchange earnings and government revenueby way of export taxation. All Project inputs will ultimately serve thesmallholders, though it is difficult to determine at present the pace anddirection of smallholder development. It has to be a long-term process,probably involving at least one generation of smallholders. In view ofthe nature of the development envisaged, it would be inappropriate toundertake a quantification of benefits and an economic evaluation of the

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Project; nor can a financial evaluation of the individual smallholder beundertaken, since the Project is not directly involved in on-farmproduction and it is not known to what extent smallholders will getinvolved in one cash enterprise or another. Though individual enter-prises can easily be shown as being financially beneficial to thesmallholder, it is not known to what extent social preferences willlimit his involvement.

82. An important contribution of the Project will be institutionalsupport for strengthening management and operation of smallholder supportservices. The Project will provide consultant services where localexperience is not available For Project implementation, in particularfor training, extension service and agricultural information service. Inaddition, a technical assistance grant will be provided for institution-building to establish a basic management information system for DALFcovering cost accounting and benefit monitoring for all ongoing activitiesas well as training count:erparts.

B. Project Risks

83. The achievement of the Project's ultimate objective viz.,the development of smallholders, depends on: (i) availability ofsufficient external assistance and local funds for production-orientedon-farm programs; and (ii) on a sufficient number of smallholders beingmotivated for change. The Government has shown considerable resourcefu:Lnessin attracting external finance and in meeting changing budgetary require-ments and is expected to be able to raise the required funds in the future.With the focus of agricultural extension on the promotion of export cropsthe Project is likely to have a significant impact on increased governmentrevenue. With regard to smallholder participation, it has been found thaton islands with higher population relative to land suitable for agriculture,and on those without any or limited land reserves, the response to proposedchange has been increasing. Such islands have about one-third of thecountry's population, and in addition pockets under similar conditions arefound on other islands also. Moreover, the younger generation, settingup households, shows a higher demand for consumer goods and services and itis est mated that about 1,000 new rural households will be established everyyear.T Overall, the population growth of 3.2 per cent per annum will alsoinfluence the willingness to change. It can, therefore, be reasonably ex-pected that sufficient smallholder involvement in improved agriculturalpractices can be motivated by the Project. The risk of shortcomings in theimplementation capability has been addressed by provision of consultantsand technical assistance for institution-building.

1/ Appendix 1, page 4, age bracket 20-24 years.

- 29 -

VI. CONCLUSIONS AND RECOMMENDATIONS

84. The proposed Project which has been accorded high priorityby the Government will assist the Government in improving supportservices to smallholders, and motivate them to change their traditionalsubsistence rotation of food gardens and bush fallow in favor of moreproductive practices, introducing and improving cash enterprises, whilemaintaining subsistence food gardening. The Project will provide for:(i) localized research including experimentation plots and demonstrationfarms to test the validity of station-research findings under varying

edaphic conditions and for their suitability for introduction intosmallholders' operations; (ii) upgraded training by adjusting the cur-riculum of the Tagabe National Agricultural School, appropriate in-servicetraining, overseas fellowships and study tours, and training for youngfarmers on demonstration farms; (iii) more effectivze extension service

by introduction of group extension approaches and provision of communica-tion and transportation equipment as well as housing, office and storagefacilities; (iv) better agricultural information by strengthening theInformation Office in staff and equipment; (v) veterinary laboratoryinspection to safeguard export markets for beef and control pests;(vi) equipping and staffing a Project Office; and (vii) consultant servicesto advise on suitable changes in the operation of training, extension andinformation services. In addition, a technical assistance grant for DALFto establish a basic management information system and train counterpartsfor its application will be provided.

85. The Project would serve to maximize benefits from sizeableinvestment on research and programs for smallholder production financed orto be financed from other external sources. Ultimately, the benefitswould accrue to smallholders who are likely to be motivated to adopt newpractices. Since most of the production-oriented programs are related tooxport crops, the Project would contribute to an increase in foreignexchange earnings and government revenue (as a result of export tax).Quantification of these benefits is found inappropriate because of theabsence of direct on-farm production and in view of limited knowledge onthe pace and direction of smallholder development.

86. The total cost of the Project is estimated at $3.875 millionequivalent, with a total foreign exchange cost of $2.5 million and localcurrency cost of $1.375 million equivalent. The Bank would provide$1.1 million and IDA $2.0 million. The total loan amount of $3.1 millionequivalent represents 80 per cent of total Project cost, covering alldirect and indirect foreign exchange cost!/ and part (51 per cent) ofthe local currency cost. Consultants will be recruited from the Bank'smember countries only and therefore be financed by the Banl- exclusively.

I/ Except financial charges during Project implementation.

- 30 -

All other goods and servi'ces would be jointly co-financed by the Bankand IDA. The Bank would finance $800,000 equivalent in foreign exchangecost and $300,000 equivalent in local currency cost. In addition, theBank would provide for a teclnical assistance grant of S3265,000 forsetting up a management information system for DALF. The Borrower willbe the Republic of Vanuat:u and DALF will be the Executing Agency. Theorganizational and institutional arrangements for the Project aresatisfactory.

87. In addition to thLe standard provisions and requirementsapplicable to the proposed lcan and embodied in the Bank.'s loan documents,the Government has given the following specific assurances:

(i) land for experimentation plots, demonstration farmsand the proposed block or cluster planting will beacquired or made available prior to the financialyear in which these facilities are scheduled forimplementation;

(ii) the Government will provide suitably qualified stafffor the Project Office, will replace the fieldextension workers (eight) reassigned as demonstrationfarm managers, will increase the staff of theAgricultural Information Office by two professionalsand will recruit trainees for each demonstrationfarm; and

(iii) the Government: wiLl make available to DALF a suitableshort-wave raclio frequency.

- 31 -

APPENDIXES

Appendix Page

1 Statistical Information on Smallholders 32

2 External Assistance for Agriculture 35

3 Detailed Project Cost 38

4 Terms of Reference for ProjectImplementation Consultants 42

5 Terms of Reference for TechnicalAssistance Consultant 45

6 Organization Structure of the Departmentof Agriculture, Livestock and Forestry 46

7 Allocation of Loan Proceed by Methodof Procurement 47

8 Implementation Schedule 49

3 2-

Appendix 1Page 1

Statistical Information on Smallholders

1. Available information on smallholders by island groups isgiY- nin Table 1 of this Appendix. Overall, only about 50 per centof the agriculturally suitable land is presently utilized, with averagesize of smallholdings shown as 10.4 ha, of which 8 ha are in the sub-sistence food garden-bush fallow rotation and 2.4 ha planted to coconut,sometimes undercropped with cacao or to a minor extent with coffee. Landavailability and size of smallholdings vary considerably from island toisland. The smallest average is shown for Efate, where employment onplantations and outside agriculture is an important factor. On theShepherd Islands, the average size is 4.2 ha, with no further land reservesavailable. A similar situation exists on the group of Paama/Lopevi with6.2 ha on average. Relatively high population density is also indicatedlfor Pentecost (9.4 ha), Tanna (9.1 ha) and Pmeityum/Futuna/Aniwa (9.8 ha).Averages of about 20 ha or above are shown for Maewo, Santo/Malo, Epi/Lamenand the Banks. Variations in the size of smallholdings are mainly deter-mined by the duration of the subsistence rotation. The area of landreserves shown can either indicate useable land or land disputed undercustom ownership and, therefore, not used.

2. The greatest pressure to intensify agricultural practiceswould appear to exist on the Shepherd Islands, on Paama, Lopevi, Pentecost,Tanna, and Aneityum/Futuna/An:iwa with small average sizes of holdings and/orlittle available land reserves. These islands are noted for most of themigration to other islands for casual plantation work. About 6,880 ruralhouseholds (in 1979)1/ or 36 per cent are fotnd on these islands. Whileit would appear reasonable to concentrate extension efforts on these islandsit must be noted that the averages shown for the other islands contain anumber of households under equal pressure to intensify their farmingpractices.

3. Table 2 of this Appendix shows the age structure of the populationof Vanuatu as given by the 1979 population census. 10,0C)0 persons are shownin the age bracket 20-24, likely to set up their own households. At apopulation growth rate of 3.2 per cent per annum, there would be 11,502persons in this bracket in 1983. The rural population within this agebracket is estimated at 82 per cent or about 9,500. The five-year agebracket would lead to an estimate of about one thousand new rural householdsestablished annually. With fcur children to raise orin average this segmentof population is considered another likely group responsive to suggestionsto intensify agriculture.

- At 3.2 per cent population growth the figure would be 7,800 householdsin 1983.

(Reference in text: page 2, paras 3 and 4)

Table 1: Population. Number of Houseralds, LandAvailability and Utilization

Area Per Rural Househole (ha)

pW Area Suit- Smallholder Land Reserve

(D Land able for Used for Reserve of Subsistence Smallholder As Percent Populatior

Rural Rural Total Agricultup5 Agriculture Agric. Land Rotation Caah Crac Sub- Cash Land of Agric. Growth

j Island Group Population-/ Households (lOOha) (lOha)- (100ha) (100ha) (IOOha)V' (100ha) i/ eistence Crop total Reserve Suitable Land 1 p.a.

(D

0 Torres 305 66 120 99 8 91 7 1 10.6 1.5 12.1 137.9 92 4.0

anoks 3.210 597 762 218 114 104 92 22 15.4 3.7 19.1 17.4 46 2.9

' M Oae 1,845 367 300 125 92 33 74 18 20.2 4.9 25.1 9.0 26 3.8

n-t Santo/Malo 13.735 2,632 4,200 1,680 678 1.002 410 67 15.6 2.6 18.2 38.1 60 3.5

Aoba 7,691 1,602 400 215 162 53 87 75 5.4 4.7 10.1 3.3 25 2.3

Cl Pentecost 9,316 1,915 500 191 180 11 150 30 7.8 1.6 9.4 0.6 6 '.8

Ambrym 6,260 1,170 665 218 133 85 87 46 7.4 3.9 11.3 7.3 39 3.4

Malakula 15.184 3,184 2,100 808 267 541 169 62 5.3 1.9 7.2 17.0 67 2.7

t3~3 Pasma/Lopevi 2,237 534 63 33 33 0 26 7 4.9 1.3 6.2 0 0 1.2

(V (D VEpi/Lamen 2,599 540 455 195 128 67 90 38 16.7 7.0 23.7 12.4 34 2.3

Shepherds 4,421 1.248 85 52 52 0 35 17 2.8 1.4 4.2 0 0 1.8

aCt2 Efate 9,811 1,700 985 570 112 458 32 20 1.9 1.2 3.1 26.9 80 4.6

M gj Errosango 936 200 900 206 17 189 15 2 7.5 1.0 8.5 94.5 92 3.9

(j@ Tanna 15.491 2,968 572 313 270 43 229 41 7.7 1.4 9.1 1.5 14 3.1

C. Co Aneityum/FutunaAniwa 1,166 215 179 22 21 1 15 9 5.6 4.2 9.8 0.5 5 2.9

4> Total 94!207 18,939 1',276 5,075 2,267 2,678 1,515 455 8.0 2.4 10.4 14.1 53 3.2

a/ 1979 Population Census.

b/ Quantin. ORSTOM (1972-78). includes classification (i) no and alight limitations in utilization end (ii) moderate limitations, each about 50'.

Ci Comprises: intensive subsistence gardening. itinerant gardening, wooded fallovs with dispereed su0sistence gardening.

d/ Cqmprises: indigenous coconut planting, mixed dense planting, European type coconut planting.

11)p; Q

t-.i in

rI D'tIE

3:1f

Appendix 1Page 3

Table 2: Age of Vanuatu's Population in 1979

Age groupin years Males Females Total

0 - 4 10,025 9,121 19,146

5 - 9 8,989 7,895 16,884

10 - 14 7,661 6,772 14,433

15 - 19 6,322 5,837 12,1:59

20 - 24 5,201 4,940 10,:l41

25 - 29 4,236 4,086 8,322

30 - 34 3,294 3,149 6,443

35 - 39 3,195 2,724 5,919

40 - 44 2,308 1,976 4,284

45 - 49 2,129 1,587 3,716

50 - 54 1,421 1,108 2,529

55 - 59 1,351 991 2,342

60 - 64 995 697 1,692

over 65 1,947 1,294 3,241

T o t a 1 59,074 52,177 111,251

(Reference in text: pacge 28, para 83)

Appendix 2Page 1

External Assistance for Agriculture

1. The First National Development Plan 1982-1986 indicated atotal capital expenditure program for the Agricultural Sectoramounting Vt 3,244 million, most of it to be funded fromexternal sources.

2. Table I shows details of projected capital expenditure foragriculture. Ongoing projects are listed in Table 2 togetherwith amounts allocated and donors. By sub-sector the fundedprojects are set out as follows:

Million Vatu

General Agriculture 46.6

Livestock 40.7

Agricultural Support 27.6

Research 396.9

Total 512.0

These projects amount to Vt 512 million, of which research isthe major item. The amount allocated as of 31 January 1983,start of the second year of the plan period, is equivalent to16 per cent of the total planned capital expenditure overfive years.

(Reference in text: page 12, para 32)

- 36 -

Appendix 2Page 2

Table 1: First National Development Plan,OultlirLe Capital ExpenditureProgramme, 1982-1986 a

(VT'000)

Project 1982 1983 1984 1985 1986 Total

Coconut Development 44,268 30,935 37,359 36,837 - 149,399Cocoa and Coffe Research

Station 63,318 36,025 30,135 -30,135 30,135 1893,748Development of Cattle

Breeding Station(VLD Ltd) 33,697 14,147 - - - 47,844

Oil Crops' Research Station 41,336 41,336 41,500 41,500 41,500 207,172Brucellosis Eradication 1,720 370 210 - - 2,300Extension Staff Housing 26,600 - - - - 26,600Cocoa Fermentaries 14,581 - - - - 14,581Pepper Development 12,637 - - - - 12,637Coffee Development (Tanna) 13,754 - - - - 13,754Smallholder Cattle

Development 36,815 - - - - 36,815

Various Small Projects 30,000 30,000 30,000 30,000 30,000 150,000Equipment (Middle Bush

Tanna) 4,340 - - - - 4,340Bush Clearing Units and

Additional Equipment 41,213 51,608 25,804 - - 118,625Big Bay Rice - 17,000 34,000 51,000 68,000 170,000C.D.C.WCocoa (Malekula) - 222,000 278,000 371,000 489,000 1,360,000C.D .CY5Cattle (Espiritu

Santo) - 34,000 68,000 102,000 136,000 340,000C.D.C.-Coffee (Tanna) - 21,000 64,000 127,400 - 212,400Cocoa Development 32,004 24,905 25,253 18,210 - 100,372Root Crops Development 900 670 - - - 1,570Copra Drier 17,050 18,750 27,500 5,250 - 68,550Cocoa, Coffee and Coconut

Demonstration Plots 1[,000 - - - - 11,000ORSTOM Mapping 6,000 - - - - 6,000

TOTAL 431,233 542,746 661,761 813,33:2 794,635 3,243,707

-/ For many projects, no firm agreement yet reached with donor.b/ CDC = Commonwealth Development Corporation.

- 37 -

Appendix 2Page 3

Table 2: Ongoing Externally Assisted Project for Agriculture,Aid Donor and Allocations as of January 1983

(in Vatu'000)

Name of Project Donor Amount Allocated

I. Research

IRHO -/ France 207,172IRCC - France 189,748

II. Agriculture

Agriculture Equipment ADAB 7,137Cattle Under Coconuts SPC 200Phytosanitary Projects ADAB 2,160Equipment for Dryland Rice, Tanna ADAB 600Lounansounon Vila Beehives ADAB 340Tagabe School Extension ODA 13,500Refund and Purchase of Pasture Seed ODA 375Subsidies - Bush Clearing Cattle ODA 400Phytosanitary Services ADAB 2,314Phytosanitary Airport Control ADAB 1,160Cocoa, Coffee and Coconut Demonstration Plot ADAB 4,211Vila Show Ground Facilities ADAB 990Santo Cattle Holding Ground ODA 319Giant African Snail Control NZ 700Upgrading of Agricultural Training Center NZ 750Collection and Establishment - Major Root Crops NZ 351Plantation Advisers ADAB 2,230Equipment Tagabe Agriculture School Canada 550Copra Improvement Project EDF/Stabex 15,000Coffee Development EDF 5,242Community Farm Roads EDF 1,760Agricultural Tools Primary Schools EDF 1,700Pepper Development EDF 5,949Community Run Estates Lolovenue EDF 1,700Community/Village Cocoa Fermentary EDF 3,180Santo Agricultural Station Buildings ODA 649Luganville Produce Inspection Depot France 510Agricultural Sub-Stations Equipment NZ 412Agricultural Information Office ADAB 2,275Brucellosis Eradication ODA 4,800Cattle Breeding Station VLD ADAB 33,700

TOTAL 511,984

a/ Based on First National Development Plan Projections.

(Reference in text: page 10, para 30)

- 38 -Appendix 3

DFrf:: Li;. _ C-. r Page L

Fo.eigo T ocol IUnit Cost Cost Cost (orLt FE

Vt Quanitty Vt '000 Vt '00O Vt'O00 I

1 Civil WorkL

A. Experi- rati.> * Dvnittation

Land Acquisiior. aord S,.rve, 6,000thb 100 h& - 600 600 0Dewsostrottoc (,arr,roi.s 30 sqa, Vt 5,0001sq& i50.000 16 720 1,680 2,400 30Farm Kia-.ters' ,_s,s 65 *&,4. Vt 37.000/sq.r 2.400,000 8 1,520 7,680 19,200 60Farr Nanae-' t ffice-o--Storei; 60 sq., Vt 33,333/sqn 2.000,000 8 11,600 6,400 16,000 60Processinfl F-(Iities 200,000 16 :,1440 1,760 3,200 45

SoOtotaa 21,280 18,120 41,400

D. Training

Doraieoru 26,000 3460 sqa 1,618 3.742 9,3bO 60

C. E-tension

Field Assist=.io' j-ses 65 sqrm at Vt 35,076 2.280,000 13 17,78'. 11,856 29.6'.0 60Offlc.e f-, F., 544.000 7 2,285 1.5:3 3,60d 60St.res r ,, -A> 240.000 7 1_008 b?2 1,6b0 60Oo.ses for ss.st,ncs 3u sqm at Vt 5,000 150,000 10 _ 450 1,050 1,500 30

S,t:ort i 21.527 15,101 36,628

D. Livestock ae-icc

VeLerrinr Lab.r:tory vith Fittings 26.736 288 sq. ',620 3,080 7,700 60

Tot.! Civil tWorks Ji.045 40.043 95.W8

Jl Equipment i flach,:o-r,

A. Experi_tntazo- r Dd0nstratioo

Psaps/Hydrrs - Carction to PLain Water Supply 50,000 16 720 sO ftO 90Pipiarg Ana Taps 15.000 a 108 12 120 90I*andLools Set. 25,000 8 10 20 200 90Calcuiaor ani A&ceouit Books foz emosstration Fars 30,000 8 ISO 60 240 75C&IcOlcoT aad Acount kooks for Farm Mlatuger 25.000 a 150 50 200 75Wbeelbarrovs 5.000 16 64 16 80 80Furniture Douonstration Farm Horuses 4 ,000 16 66 778 864 10Fornit.re Fars fan.ser's House 80,000 8 64 576 640 110Nous:hcld Equiptmn D.eonstr,ticn Farms 30.000 16 240 240 4S0 50Offic. Stores Fars Naaager 20.000 S. 120 40 160 75Tho Whel ltiaor 220.000 a 1.672 S8 1.760 95Oh,nsn.as 40,000 16 912 41 960 95

Sub^ct.al k(.496 2,000 6,504S. Tralllin&

Svnchrooircj lide Projector - 270,000 1 257 13 270 95Tools saJ Eq£-i.,.nt for TraiOnsno Wdorkthop 2.0J0,000 1 1,800 200 2,000 90Furnit.ra for £Oo.-tory 562,000 1 337 225 I62 60

Sub-t:l __'394 438 2,832

C. Extensiio. s r.cL-

Ralio Teiephor- Control Sets 3 000 5 .1,425 75 1.500 95Radia Teiapnane Slave Sets 145,000 30 4.113 217 4.350 95Forniture for i>tooioo Officers' House 80,000 13 104 936 1.040 10Furniture for A-ista.ats' Houmse 54.000 10 54 4686 540 113

SUD,:. CA _ ,716 1,114 7,430

D. Inforsation S-rvice

A) Audio Rcording Eq.ipmsot

ur toal _ 326 17 343 9.h

b) Phc, ugrap:;- tq4ipuent

Subt t.ai 879 49 928 9S

c) Offict Eq,,;pFent

Sattotl, _ 388 21 409 93

S .,t;t , I lnfor,.ation Service 1,593 87 1,680

E. Livesto.I Sr;

a, Office *oo IJtvr.orE 2uroaure 3i6 211 527 60

AircoidILicn-r and oftLe rLhinm!ry 533 27 560 95'

Subt ta_l 849 238 ,07

bl La_ocutora E,.uipnt

S bt,,Lrl 4,750 150 5,000 95

S,tiotal, Iivestock Services 5,599 .S8 6,087

F. tEaL,_et 1,rf-

Offi,. MJ.ir-e 180 8 168 95Offi.a ,.rt.ir. _ 190 10 200 60

S.r:,r.,1. Pto)ect Oftie 370 16 188

TL't -. ;rvt d Machinery li. 168 4.,53 2.921

(Reference in text: page 19, para 57)

- 39 -ALppandix 3

DF`I_EL, Pi -JLCr CUSI Page 2

VFraign Local 1araiUruit Cost Cost Cog: Cost FE

Vt Quantity Vt 'O0( Vt 000 Vt' 000 G

Ill. Vehicles

A. Extensicn Ser; t.i

4 1.0 LW SEati- .44on 1,500,000 1 1,350 15 1.500 90

4 '"! pi-ku, 91q0.U00 3 2,430 270 2.700 90

Motarcycle 150,000 24 3.240 360 3,600 90

Dinghies wLtt. O.LL3ard hoLtrs 700,000 13 6,190 910 9.1QO 90

%ct..:_P. isten,i:,. 3ervlce 15,210 1,690 16.900

B. txperinenta:i. urlstration

Mctorcycie 15(0,000 8 1080 120 1.200 90

Tota' -picles 16.290 1.610 16.100

IV. Agricltc.ra, 1np-s

A. ExperimLntjt.-r nl Docmsantatioi,

Plancins MAte1al L94.000 8 466 1.066 1.,552 30

Fertilizer 54.000 8 346 86 432 e0Pesticiae. 20.000 6 128 32 160 so

Cartle 35.000 8 224 56 280 0

Pigs & Paultr, 5.000 a 32 a 40 0

SubLcLta 1.196 1.268 2.464

8. Extension vClustez Tr:1-i.

Planting atetridl 31 000 40 372 868 1,240 30

Fertilizer 8.500 40 272 68 340 S0

Pescicides - 1.000 40 96 24 120 60

SubtoL.. 42,500 740 960 1 700

Totdi Agricultural laputs 1.93D 2.'28 48 164

V. Consulting Serviceh

Agrac.lEura1 TrAi ,Lng Lunulttant 893,000 9 8,007 30 8.037 9.6

Ectsusion C.nsulta.iL 893,000 12 10.676 40 107:6 9 .6

Agricultural Informaelon Consultant 893,000 9 6,007 30 6,037 99.6

lotzi .onsulting Services 26.690 100 26.79U

VI. Training

A. Extension Ser; ,e a Tagabe School

ln-Service-Trdinr.J,-Refresh,r r rses. n. WeeK. 10 participants 162.000 25 2.430 1.b20 .050 bU

Woresno?s on leaching .62,000 S 486 324 810 60

Overseas rellocships, (ne Yesr 1,580,000 7 9.954 1.106 11.060 90

Overseas Scud) Thurs. 4 onrhs 1.000.000 10 9,000 1,000 10,000 90

SubE.cal Extension 21,b70 4,050 25,920

8 Iniormation Servi.e

VeI1lowhips ftr Kass lonauni.ation 4,740,000 *2 *,S32 948 9.480 90

C. Livestoc. Service

Tialning tf La- ators lechnictan (4 months) 1000.000 2 1,800 200 2,000 90

-Ot- Trai,ing Ser\lies 32.202 5.198 37.400

Vil. Increxntal alar.e, . n. Wa/as

A. Experizant and Demonstration

Farm Man.ger.. b, J42,000 26 - 8.892 8.892 0

Trainee. hb.' , la') (average)

76.200 104 - 7,',25 7.925 0

Subi atal 16.817 16,817

Sl. Tra;1,

F.rt. mlecnjr.i lr ine.t 34'.000 4 1 1.256 1,256 0

F.rwr MecntJi, fr;iner. t2) (a:ter complttinc training) 337.000 4 - 1,346 1,34 0

-ublrJt 2,nO'. 2,604

C. rxtern,i. :- .

Asstsr.nt 1.a.::n 4.1rkers I15000 20 - :300 2,330 0

Iii.rrutl.l 'i: .. r. a';.btO 7 - 22t; 22t7 0

CU.ntrr.. t> r X re;ld,t.i.nl i.t ;.Irsriuu :lb,0O) bO _ _ .l ',bU i .,560 0

- 1t.82 3.e2;

- 40 -

Appendix 3Page 3

)EfAILED PROJECT COST

foroion Loal TotalUnit Cost Cost .ost C,.st FE

Vt Quaotitvy Vt 000 Vt 00O vt 000 2

E. Pr1ecz uffice

Proj.cL Coo 4iu.tur 35u.000 5 - 1,750 1.750 0AccouniAnt 3147,000 5 - 1.685 1 85 0Secretar) !50.000 5 - 1, 25 i 25D 0

Sutorvt - 4 tbF5 4.635

'cta. S:jlaries and Wageb _ 30.22J 30.233

V 11. Inntnal %vkelng~ost

A. En,er,e..: .2fl D,.nsrratiun

huiiainr Maintc arne 5 kepair 351 619 1170 30(1 of construction c.st ior Farm hanagei ' houses,Office and Stores;3E p.s. for Prozsssing Facilities andTrir.aecs' ho-ises)

Iotorcvcle iRepair ar.d Maintet%ance 203 202 405 50(15; of P.urdha-&' ',alue)

.%torcyclu Op~eration 18,000 26 574 94 468 t10Office SEores p.a. 4.000 18 54 i1 72 75

9*829 1.133 2.115

B. Trainir-S

Iui1dinr Repair i 4Mintdnance. 1: p.s. 94 3 141 141 282 50IAintsaace 1.1a & Zq%ipuent, 101 p.-. 227 4 454 45A 908 5iO

Suitotal 595 595 1,190

C. ExLeusion :ierice

Iuildiru A.:pair and hdint..n3rce 290 690 96 30Vehicl.s Mer4ir and MAinteoance 4,543 4Y342 9,S85 30Vehicts Operatingi Expense S.399 2.09Y 1O,;98 li0ladic fquiprsnt Maintenance.10Z p.a. - 3 798 798 1.596 5D

turtota. 1410D36 8.129 22.165

D. lnforation 0: ice

Supp1is and mAincenAnce 5 1jD08 252 1.260 110

E. Lives:r,).k Se:vices

Supp:ies an.d m.intenancc 4 .. 4760 l 690 B.AS0 10

F. Project Offi.e

Supplies and 'ainLatnj.ce, Trave! . 5 364 121 485 75

Ectl Ilncremntal otperating Cost L745 11.92O j5.665

4/1 -

Appendix 3Page 4

SUMMARY DETAILED PROJECT COST

4 Foreign Local TotalCost Cost Cost

Category (Vt '000) (Vt '000) (Vt '000)

I. Civil Works 55,045 40,043 95,088II. Equipment and Machinery 20,168 4,753 24,921

III. Vehicles 16,290 1,810 18,100IV. Agricultural Inputs 1,936 2,228 4,164V. Consulting Services 26,690 100 26,790VI. Training 32,202 5,198 37,400VII. Incremental Salaries and Wages - 30,233 30,233VIII. Incremental Operating Cost 23,745 11,920 35,665

Total Base Cost 176,076 96,285 272,361

Physical Contingency 12,076 7,178 19,254

Price Escalation 44,648 29,876 74,524

IX. Financial Charges duringProject Implementation 9,700 - 9,700

Total Project Cost (Vt '000) 242,500 133,339 375,839

Total Project Cost ($ '000) 2,500 1,375 3,875

Appendix 4Page 1

_orms of ReferenceProject lmplecnentation Consultants

I. Training Advisor (9 man-=nnths)

1. The consultant will have agricultural experience with a diplomaor post-graduate degree in Education. At least five years practicalexperience in structuring training course in developing countries willalso be required. Preference will be given to experience gained inPacific Islands. The consultant's terms of reference will include butnot necessarily be limited to:

(i) undertake a full review of all agricultural trainingactivities in Vanualu including formal education,in-service trairling and special courses;

(ii) examine and make recommendations concerning the futurerole of Tagabe National Agricultural School takinginto account training aims, entry and selectionrequirements, type(s) of course(s), duration,practical and theoretical orientation and mediulmof instruction;

(iii) prepare curricular and training materials f-or usein pre-service and in-service courses;

(iv) determine jointly with the Extension Advisorpriorities for overseas training and advise on theselection of candidates and suitable arrangementsfor such training; and

(v) assist the Government in the implementatiorn ofrecommendations.

The Advisor will be recruited as an individual consultant. The consultantwill be responsible to the Director of Agriculture, DALF and will beavailable for three periods of three months over the Project implementationwith the first visit to coincide with the fielding of the AgriculturalExtension Specialist and the Agricultural Information Advisor.

II. Agricultural Extension Specialist (12 man-months)

2. The consultant should possess recognized qualifications in agri-culture and have at least five years field experience of agriculturalextension work in developilg countries. Preference will be given toexperience gained in the South Pacific. The terms of reference willinclude but not be restricted to:

(Reference in text: page 17, 'ara 5I)

Appendix 4Page 2

(i) examine in detail the present functions, organizationand staffing of the Extension service taking intoaccount pre-service training and experience of thepresent staff in position;

(ii) identify the constraints as a result of the presenttraining practices both prior to and in-service andformulate the policies upon which DALF should recruitand train staff together with the Training Consultant;

(iii) evaluate in cooperation with the Agricultural InformationAdvisor requirements for agricultural information at thefield level (extension officers and smallholders);

(iv) prepare recommendations for DALF on improved extensionmethods, achievement-oriented deployment of staffand more efficient operating and supervisory procedures; and

(v) assist in the implementation of all proposals and prepareoperating manuals for the guidance of ni-Vanuatu ExtensionOfficers.

The consultant will be recruited as an individual consultant. Theconsultant will report to the Director of Agriculture. In order toassist in efficient implementation, he will be available for four periodsof about three months each, with the initial visit to coincide with thefielding of the Extension Specialist and the Communications Advisor.

III. Agricultural Information Advisor (9 man-months)

3. The consultant will have had formal training in mass communicationand have had at least five years experience in using mass media for agri-cultural information. Experience in Pacific Islands would be desirable.The consultant's terms of reference would include but not necessarily belimited to:

(i) determine jointly with the Extension Advisor and theTraining Advisor information requirements at thefield level;

(ii) identify the present constraints to communication withsmallholders in Vanuatu and prepare in detail proposalshow such constraints can best be overcome;

(iii) review the present operation of the agriculturalInformation Office and prepare a work program forthe next five years;

(iv) assist on the selection of suitable ni-Vanuatucandidates for overseas training in communications

Appendix 4Page 3

and make recomrendations on the duration andtype of training required; and

(v) give assistance to DALF in the implementationof proposals and in particular provide shortterm on-the-job training to those ni-Vanuatureturning after overseas training.

The Advisor will be recruited as an individual consultanit. He wouldbe responsible to the Director of Agriculture. The assignment would bephased in three periods cf about three months each over the implementationperiod of the Project. The first assignment would coincide with the visitof the other consultants provided under the Project.

Appendix 5

Terms of ReferenceTechnical Assistance Consultant

Management Information System Advisor (30 man-months)

1. The consultant will be suitably qualified and have a goodbackground in public accounting and administration combined with projectplanning, coordination, implementation and evaluation. Field experiencegained in Pacific Island countries would be advantageous. The terms ofreference would include but not be restricted to:,

(i) establishing a unit within DALF and the necessarysystems and accounting procedures to ensure thetimely preparation of the annual capital andrecurrent budgets and subsequent accounts of DALF;

(ii) advising DALF on any reorganization necessary forthe preparation of the departments developmentprogram and more efficient project implementationand monitoring;

(iii) the installation of recruitment procedures forconsultants and procurement procedures acceptableto aid donors and in particular in accordance withthe Bank's Guidelines on Procurement and Recruitmentof Consultants;

(iv) establishing a system for project reporting in DALFto ensure progress reports are submitted as required; and

(v) train a counterpart DALF officer together with anaccountant to ensure the maintenance of theplanning, budgeting, accounting and reportingsystems as installed.

The Advisor will be selected as an individual consultant by the Bank inconsultation with the Government. He shall assume his responsibilitiesat the start of the Project. The consultant will report directly to theDirector of Agriculture.

(Reference in text: pax4e 22, para 65)

ORGANIZATION STRUCrURE OF THE DEPARTMENT OF AGRICULTURE,LIVESTOCK l 1A)D FORESTRY

- . ~~~MINISTER.II

LSecretariat Political Sec:. Tnfo Service

(D

(D0 Permanent Sec, ---- - cnms

(D

¢ | ~~~~~~~~~~~~Dir. of Agricul.

___~~ ~ ~ I_ _ _ _ _ _ _ _ _ _

Oil Crops Cocoa and Coffe Root Crops n vanuatu Live-L Research Research . Development Stoc. Dev. Ltd.

; Secretariat Deputy Director

a I ____ J I oE ltRric ll~~~~ture I

Livestock Service Agriculture Serv, Fery Service

3mlliholder Catt e Training Extension Quarantine & Agricultural

Development Proj Division Division Produce Ins- Loans Div.

~~~~~~~~~~~~~~~~~~~~~~~~~xM6nimartre Plan-j

tation Manage-ment Training

Appendix 7A1.I½A2 I'r 1 1 i) AI)b s;I\i IlA) Page 1

Allocation Procurement Sdtis of

FC LC Method a/ Disbureemnt b/

A. Civil Works, various contracts 567 413 LCB 100 contract valus

S. Machinery and Equipment

1. Demonstration farmsand Experimentation plats

- calculators. two-wheelcultivators. ciwinac 30 3 is 95f cif

- furniture 2 14 LS 152 exehop- remaining equipment 14 4 IS/LS 802 exehop

2. Trainina

- synchronized alide projectur 3 I 1s 951 cif- tools and equip_ent for workshop 19 2 Is 9u0 cif- furniture for dormitory 3 2 LS 602 exshop

3. Extension Service

- radio telephon equipment 57 2 Is '/' cif- furniture 2 15 LS 152 xehaop

4. Information Service

- auio-equipment 3 - is 98Z cifphoto-equipment 9 1 is 952 cif

- office equipmet d - IS 952 cif

5. Livestock Services

- airconditionar 3 - is 952 cif- office mchins_ 3 - IS 952 cif- laboratory equipimt 49 3 IS 952 cif- furniture 3 2 Li/IS 602 *eXhop

G. Mrojeet Office

- office machinery d aircood. 2 - I1 952 cif- offiee furniture I - LI b02 exshop

C. Vehicles (various comsurects) 1i" 19 IS 90S cif

D. Agricultural puts

planting materials. livsstocl 9 23 force account 1002 of coatina.cticidee, fertilier 9 LS/IS 802 cit of exsbcp

S. Cosultin Servicas 275 ank Guidelinoe 1002 foreigo excchase

T. Tr

In-service-traninUs 30 force account 602 of coatOversee training 302 902 of cost

G. Ineremtal SaUlries nd Wages -

H. Incremental Operating Cost 245 IS for major supplies 1002 cif value or(laboratory) off-ahelf-volu< ofoff-the shelve for supplies. spares.minor items force materials

Iasacost 1,815 503

imallocate 585 197

Toa t alI 2,400 700

I/ LCS-Locel Cometitive Bidding; LS-Lcal Shopping; IS"international Shopping.b/ Including local handling storage an inter-leland transport.

(Referenrme in text: page 24, para 70)

- 48 -

Appendix 7Page 2

ALLOCATION BY DONOR($ '000)

TotalADB IDA Loans

___________ __ FC LC FC LC kC LC

Consultants ADB 100% 275 - - - 275 -

Other FC cost ADB 21.4% 330 - 1,210 - 1,540

IDA 78.6%; LC, ADB 42.8%;JDA 57.2% - 218 - 291 - 509

Base Cost Allocation 605 218 1,210 291 1,815 509

Unallocated LC ADB 33.3%; IDA 66.7%;LC ADB 43%: IDA 57% 195 82 390 109 585 191

Total Allocation 800 300 1,600 400 2,400 700

TOTAL LOANS 1,100 2,0010 3,100

35.5% 64.5%.

IMPLEMENTATION SCHEDULEAppendix

I, Expessusao teuo end 0.maUsrsUIo,,

Cantor ILend sireno

ConsinmCt-oPro-ur-ent eimn

Center Ited IlILend a0p.-SrtrosrT.ntler C,oI wokrkAward of Contract

ProcurementC.utl.trttr, WarltO

Centers IV. V. VtLan Wt.arton

A-ed of ontact

Cesasr VI I ad \VIII

Awird of Contuaa

Proix. res.entC.stmtsetosr. operessos

IL. Truo

Tagels Netsonal Agrics,ltaral SchsooTenda cwdt works

Award at Contrait

Prociinrnianii ad",.W.Ms.P,oc,,nerint wo*dshM

eqrwnwstt

In-anscr t ea,ncing f ft aiW -tnWVork*shop as teachingOser,. fell-rshis lee sons

1 and 2

Orwaiss Study toot, Io

Fellowshv lfe Rum curnn,enass

Labsatory taclsscensosaa

lit. E~~it

CaO arutos, &dso- 1asa 3 .c .oa.no.

4-7 !

Hwasss.lt f rstant stanson,

Poleecis. of Vahwala

stat`o' *aggasPick-ups

Rldo telphone as.ksCluster trials

IV. Infor"tnass Se F

Proo.rerenan of Etsupnent

V. Lsvtatsck SanscesC-kt Wwrks

Tw,dee leboseitoov bldg.Aesesd of Contsact

Vt. Proet fOffice

VII.Cnstst

Tra,.Nrn Cun,sattar

Extesrioir Cosraltu-t

LOGICAL FRAHEWORX SHRUTVANUATU SKALLHOLDER AGRICULTURAL DEVELOPMENT PROJECT

NARRATIVE SUMM4ARY PROJECT FORMULATION _____________________ _________________

1 1 * _ * hActions forSocto-Economic Goals Indicators of Achievement Malor Aesumptions/Loan Covenant_ Monitoring aol Fva_luaton

By the provision of support to - Increase in Agricultural production. - DALr will establish a Project office - PBME will be based on resultssmallholdere increased cash in- - Incremental value of production, under a Project Coordinator to coor- of the Agricultural Censuscomes will: - Number of beneficiaries and benefit dinate external aid and implent | currently being ndertaken by

- provide a higher standard distribution. the Project. DALF, together with other COVof living, - Incremental return to land labour and - The GOV shall make available all funds statistics which are readily

- t m involve- capital. for implementation *nd continued available.ment in cash economy; - More efficient use of land, operation of the Project. - Format for quarterly project

- contribute to growth of m DP - Value of incremental exported produce. - GOV shall provide staff necessary for reporting will be preparedwith eqiual dtstribution of - Incremental export taese implementation of the Project. for guidance of the Project

income; ~~~~~~~~~~~~~~~~- GOV will assure avaeiability of credit Office this t1tl provide for

- increaoe GOV FE earnings: to e*_llholders through DBV or as PBHE as appropriate.- increase COV revenurn and appropriate. - On loan approval an Inception- make more efVrevent use of - GOV vill encourage the production of Mission will be ftelded to

nAtural resources. high quality output by maintaining discuss projecc implementationprice preeluma. and to establish PBMF require-

p m~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~entsa.Project Purpose - Review Missions wtill be dis-

Maximize the benefits of external - Acceptance of recomrended practices, patched at least once a yeargrand aid in respect of research - incremental procurement of farm inputs, to nwnitor progress inand project funding by: - Greater utilization of credit, project implementation.

- Number of extension workers trained. - PCR should be prepared in 1988- developing local fitdri s Number of young smaiholders trained. to repot and erify_the

to teat research stationAid donor funds effectively disbursod. rchvcir-nrr sof -i eProject.food ings;

- demonstrating research findingsunder smaliholder conditions;

- training of extension workers.- training of young smallholders; :-- providing support services to

saaltholders; and- improving the ability of DALF

to program and implement

projects.

ProPect Inputs

PoctInouts

(including contingencies end price escalstion)

1984 1985 1986 l987 log8 TOTA

1. Expertmentation andDemonstration 85 193 325 280 108 991

11. Training 102 244 256 9 70 ;63

Ill. Extension Service 194 479 322 82 103 1,180

IV. Information Office 27 9 17 19 20 Su

V. Livestock Service 107 105 31 33 35 310

VI. Project Offtce 14 13 15 16 16 74

VII. Consultants 93 66 70 75 40 344

Total 617 1,109 1,036 596 392 3,750

Protect Output

The Project benefits will be inferred from increased quantities and values of the major agrtcultural exports. i.e. copra, meat and meat products.cocoa and coffee.