Document of F

The World Bank

FOR OFFICIAL USE ONLY

Report No. 4103T-.ZR

STAFF APPRAISAL REPORT

ZAIRE

NORTH EAST RURAL DEVELOPMENT PROJECT

January 12, 1983

Eastern Africa RegionCentral Agriculture Division

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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EXCHANGE RATES

Exchange Rates as at February 22, 1980

1 zaire = 0.35 dollars1 dollar = 2.86 zaires

Exchange Rates as at August 20, 1981

1 zaire = 0.18 dollars1 dolla.r = 5.5 zaIres

WEIG_TS AND MEASURES

Metric system English/American Equivalents

1 hectare (ha) 2.47 acres1 kilometer (km) 0.624 miles1 kilogram (kg) 2.20 pounds (lb)I metric ton (tm) 2,204 pounds

ABBREVIATIONS

ACOOPELI Association des Cooperatives d'Eleveurs del'Ituri

BAD/FAD Af'rican Development Bank/African DevelopmentFund

BDPA Bureau pour le Développement de laProduction Agricole

BPI Bureau du Projet IturiCG Consultative GroupCIDA Canadian International Development AgencyCIMMYT International Center for Maize and Wheat

Development(Centro Internacional para el Mejoramientodel Malz y Trigo)

ERF Economic Recovery FundsFAC French Ministry of Cooperation (Fonds d'aide

et de Coopération)INERA National Institute for Agricultural Research

and StudiesMURD Department of Rural Agricultural DevelopmentOR Office des RoutesPAM Minimum Agricultural ProgramPNM National Maize ProgramPROD'EL Promotion pour la Defense de l'ElevagePRONAM Programme National ManiocSOPFIDE Ec:onomic Development and Finance CompanyUNDP UrLited Nations Development Programme

FISCAL YEAR (COVL'JR-ENT OF ZAIRE)

January 1 - December 31

FOR OFFICIAL USE ONLYZAIRE

NORTH EAST RURAL DEVELOPMENT/ITURI II PROJECT

STAFF APPRAISAL REPORT

Table of Contents

PageI - BACKGROUND

A. Project Background 1B. Sector Background 2C. Institutions for Agricultural and Rural Development 9D. Government Strategy for Agricultural Development 12E. Bank Group Support for Agriculture 13

II - PROJECT AREA

A. Location and Physical Characteristics 14B. Socio-cultural Aspects 15C. Production Systems 16D. Marketing 19E. Ongoing Activities in the Project Area 21F. Rural Institutions 21

III - THE ITURI LIVESTOCK PROJECT

A. Project Background and Objectives 21B. Preliminary Results 22C. Project Impact 24

IV - THE PROJECT

A. Objectives and General Description 25B. Detailed Features 26C. Project Costs 30D. Financing 31E. Procurement 32F. Disbursements 33G. Accounts and Auditing 33H. Environmental Impact 34

V - ORGANIZATION AND MANAGEMENT

A. Organization and Staff 34B. Management of Project Components 35C. ACOOPELI 39

VI - TECHNICAL FEATURES, PRODUCTION AND MARKETS

A. Technical Features 41B. Production 43C. Markets and Prices 43

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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VIII - PROJECT JUSTIFICATION & ECONOMIC ANALYSIS

A. Justification & Benefits 44B. Economic Analysis 45

VIII - SUMMARY OF AGREEMENTS TO BE REACHED AND RECOMMENDATIONS 47

Table 1 - Project Cost Summary and Detailed Cost TablesTable 2 - Estimat:ed Disbursement ScheduleTable 3 - Economic Analysis

Table 4 - Governræent Project Related Cash FlowTable 5 - ACOOPELI Cash Flow

Table 6 - Project: Implementation ScheduleTable 7 - Meat Price StructureTable 8 - Cattle Production Parameters

Annex 1 - Annual Work Programs

Chart 1 - Organization Chart of Ministry of Agriculture,Rural Development, Environment, Wild Life andTourisni.

Chart 2 - Organization Chart of BPI

mAPS - IBRD 16239 : Existing and Proposed DevelopmentActivities

IBRD 16240 : The Project Area

Implementation Volume

1. Livestock Development Program2. Crop Production3. Economic Analysis Sensitivity Analysis4. Marketing and Prices

ZAIRE

NORTH EAST RURAL DEVELOPMENT PROJECT

I - BACKGROUND

A. Project Background

1.01 The Ituri Livestock Project - Cr.697-ZR, (Chapter III) was

conceived as a long term development program and thus it was anticipatedfrom the beginning that it would be followed by one or more successivephases. The proposed North East Rural Development Project would be such a

continuation and would aim to improve the productivity of farmers'agricultural holdings. The proposed Project was prepared by the bureaupour le Développement de la Production Agricole (BDPA), a French consulting

firm, and reviewed by officials of the relevant Zairian ministries, staffof the on-going project and by IDA staff.

1.02 This report is based on the findings of an IDA appraisal missionwhich visited Zaire in October-November 1981, composed of B. Mbida-Essama,A. de Largentaye, R. Egli, D. von Samson and J. Houston (IDA, Washington).

Representatives from CIDA (Canadian International Development Agency), andthe French Ministry of Cooperation also participated in the mission. Theonly significant change made to proposals in the preparation report is the

introduction of an investigative component during the first two yearsconcerning ticks, tick-borne and other diseases and the resulting possiblechange in the disease control program design that will be based on the

results of the investigation.

1.03 This would be the tenth project financed in the agricultural

sector by the Bank Group for a total of US$119.6 million (including aboutUS$16.5 million under two SOFIDE projects). Total costs for theseprojects, including cofinancing, amount to about US$294.6 million.

1.04 The first such project was for Livestock Development(Cr.398-ZR for US$8.5 million); it was approved in 1973 and was fully

disbursed in early 1982. Its objectives were the rehabilitation of threelarge, commercial ranches in the Shaba Region and the development of ONDE,a parastatal with responsibility for ranch management and general support

to the livestock subsector. The project experienced serious implementationdifficulties and results are mixed: the most positive achievement has been

the development of ONDE as a worthwhile, Zairian institution. A Project

Completion Report is being prepared. The Ituri Livestock DevelopmentProject (Cr.697-ZR for US$8.0 million), approved in mid-1977 focuses onrehabilitation and development of the traditional livestock economy in

north-east Zaire. This project is reviewed in more detail in Chapter III.A Cotton rehabilitation project (Cr.660-ZR for US$8.0 million) was approved

in 1976 to support smallholder cotton production in the Ubangi area ofEquateur Region in north-west Zaire. This project also met seriousdifficulties resulting from the establishment of new institutions and thedefinition of new policies, all of which took time. However, the chianges

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introduced have been positive. Private sector involvement in the subsectorhas been encouraged and project implementation has shown markedimprovement. An oil palm project approved in 1978 (Cr.796-ZR for US$9.0million) aimed at rehabilitating Zaire's palm oil subsector through supportto the three principal producers, mainly for critical import needs.Project implementation encountered serious delays, the most significantones due to difficulties in finalizing financing arrangements between the

Government and the companies involved and the need to clarify complexcofinancing arrangements. However, project implementation is now underwayand is expected to proceed without further serious difficulties. Asmallholder maize project for the Kasai Oriental Region (Cr. 1040-ZR forUS$11.0 million), effective in November 1981, is designed to develop aneffective input distribution and extension system to support smallholderproduction in a key maize-producing area. There were some start-updifficulties and implementation may pose continuing logistic and inputsupply problems. However, farmers are displaying keen interest inpurchasing both fertilizer and improved seeds. A project to supportZaire's largest sugar company at Kwilu-Ngongo in Bas Zaire was approved inDecember, 1980 (Cr. 1089-ZR for US$26.4 million). Implementation began onschedule and is not expected to face serious problems. The operationpromises to result in significant increases in sugar production fordomestic consumption. Finally, a pilot project (Cr. 1152-ZR for US$2.9million) to establish a mixed capital company for rural development in theKwango-Kwilu Region of Bandundu was approved in May, 1981 (Cr. 1152-ZR forUS$2.9 million). The Credit became effective in July 1982. Theagricultural activities supported by SOFIDE (para 1.43) include a seriesof medium-scale loans to commercial enterprises and individuals, notablyfor livestock, forestry, and export crop ventures.

1.05 A second cotton project recently approved for US$11.3 million,aims to strengthen extension services, improve cotton collection andmarketing activities, improve road infrastructure, provide agriculturalinputs and make cotton ginning operations more effective in key cottongrowing areas. A technical assistance project (Cr.1244-ZR for US$5.0million) to MARD was recently approved. Its main objective is to increasethe Government's capacity for agricultural sector planning, for effectiveproject implementation and for reviewing key policy issues. Finally, asixth line of credit to SOFIDE has recently been approved. It would aim tosupport, among other investments, a range of agricultural activities.Total funds earmarked for agriculture are at least US$7.5 million.

B. Sector Background

General

1.06 Zaire is the third largest country of Africa in area and the fifthlargest in terms of population, but its GNP per capita, estimated at about

US$260 in 1980, ranks among the lowest. Total population was about27 million in 1980, growing at a rate of 2.2 to 2.8% a year. Urbanpopulation, representating about one-third of the total, is growing at arate of nearly 8% per annum.

1.07. Zaire covers about 2.3 million km2 on both sides of the Equator.Broadly defined, there are four major eco-climatic regions: (a) the rainforest (Cuvette Centrale) covers about 1.1 million km2, and has a rainfallof between 1,600 and 2,000 mm a year, a sparse population, a dense forestthat has been barely exploited to date, and poor soils with limited crop

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development potential; (b) the areas of mixed forest and savannah, adjacentto the rain forest, have a rainfall of between 1,000 and 1,600 mm a year,a denser population than in the rain forest,and manioc as the major crop,although cocoa and coffee are also grown; (c) the savannah belts north andsouth of the mixed forest have a longer annual dry season and less rainfall

overall, a higher population density than in either the rain forest or themixed forest, good soils and topography for agricultural development; and(d) the eastern tropical uplands are mountaineous and plateau areas withrich volcanic soils in many parts and rainfall of 1,400 to 2,000 mm a year,the highest rural population density in Zaire and excellent potential fordevelopment of many crops. An estimated 30 - 35% of Zaire's total land is

considered to be suitable for agriculture, but only an estimated 3 - 4% ofthe total land area is currently under cultivation or developed as ranches.

1.08. Agriculture is vital to Zaire's economy. It provides employmentand support to 70-75% of the active population and represents the mainsource of activity for a large segment of the manufacturing sector whichemploys an additional 10% of the population. However, its contribution toGDP and exports has been declining and imports of agricultural productshave been increasing (para. 1.10) as a result of: (i) the overall economiccrisis and the focus on mining and energy development which have preventedpublic authorities from devoting the necessary attention and resources tosector development, (ii) inadequate or unclear Government policies (paras.

1.19, 1.25 - 1.34); and (iii) the weakness of key agricultural institutionsand the neglect they have suffered from the central government.Particularly serious is the lack of planning and project implementationcapacity, the weakness of basic services and cumbersome and ineffectivebudgeting and financial management systems. Zaire's difficulties indeveloping agriculture are also caused by the immense size of the countryand the remoteness of the most fertile and productive regions.

1.09. The share of agriculture in total GDP has averaged about 30% overthe last four years with little or no growth taking place in agricultureover the last few years despite a moderate expansion in cotton production.Agriculture's traditional contribution to total exports has decreased

considerably over the past two decades from a high of 39% in 1959 to anestimated low of about 10% in 1981. Agricultural exports have alsodeclined in absolute terms from an estimated 433,000 tons in 1968 to about

146,000 tons in 1981.

1.10. The share of agricultural products in imports increased until 1978and has gradually been decreasing since. Once a maize exporter, Zaire hadto import 175,000 in 1978 but less than 100,000 tons in the last fewyears. It should be emphasized, however, that export as well as importfigures are unreliable given very substantial unofficial trade movements.

Agricultural Production

1.11. The major crops and products can be classified into five majorcategories: (a) food crops; (b) industrial crops; (c) export crops; (d)forest products; and (e) livestock and fisheries. Although data on thesecrops and products are unreliable and often inconsistent, the statisticsprovided below are meant to provide some indication of the order of

magnitude and relative importance of different sub-sectors along withgeneral trends.

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1.12. Food Crops. The most important staple foodcrops in Zaire aremanioc, maize and rice produced mcstly on small farms in the traditionalsector (para. 1.22).Over the last ten years, the production of foodcropshas either stagnated or increased at a rate lower than that of thepopulation. Reasons for this lack of growth include inadequate productiontechniques (para. 1.22), inefficient marketing systems (para. 1.25), andlack of adequate support from Governuent (para. 1.35). The mnodestproduction increases are a result mainly of expanded cultivated areas.

1.13. Manioc is the most widely produced foodcrop and is cultivated inall parts of the country. Total production is estimated to have increasedfrom about 10 million tons in 1970 to about 14 million tons in 1980,largely through expansion in cultivated areas. The main limiting factorsto increased production have been diseases and the poor quality of plantingmaterial. Work has been carried out on new varieties and techniques butresults are not conclusive and have not been introduced to the farmingpopulation. Maize, the second most important foodcrop, is grown mainly inShaba, Kasai and Bandundu. Total production is believed to have increasedfrom 500,000 tons in 1977 to about 560,000 tons in 1980. Major constraintsto increased production have been inappropriate price policies, thedifficulty of obtaining fertilizers and improved varieties and theinability of the government to provide basic extension services. Decliningsurpluses have made Zaire dependent on imported maize to feed its urbanpopulation. Rice is an important srop in Equateur, Haut-Zaire and Kivu.Production has increased from about 180,000 tons in 1970 to an estimated220,000 tons in 1980. Low yields, and the lack of effective assistance tofarmers in the supply of inputs have contributed to low productionincreases. Demand for rice has, however, increased rapidly and imports nowrepresent about one-fourth of tota:L consumption. Small amounts of other

cereals such as millet, sorghum, wheat and barley are also produced. Sweetpotatoes, beans, fresh vegetables and fruits (notably plantains andbananas) are also very important crops in some parts of the country.Improvement in their production is hindered by low yields, poor plantingmaterials and weak support services.

1.14. Industrial Crops. The two most important industrial crops arecotton, and sugarcane. Seed cotton production has varied from a peak of180,000 tons in 1959, to an estimated 29,000 tons in 1980. This latestincrease is mainly due to recent measures affecting cotton companies (para1.30). Cotton is grown mainly in Equateur, Haut-Zaire, Kasai-Oriental andKivu, almost entirely by smallholders. Productivity has remainedrelatively constant at 0.3 tons per hectare and production has beenaffected mainly by the capacity of cotton companies to provide inputs andto purchase crops within a reasonable time (paras 1.19 - 1.20), and theprice of cotton (para. 1.30), particularly in relation to other crops.Sugarcane is grown in all regions of Zaire. Total cane production is about

500,000 tons a year. About 60% of this is from smallholders and not usablefor sugar manufacture because of the scattered location of farmers. Sugarproduction from the two existing commercial plantations (para. 1.20) hasfluctuated between 42,000 tons (1970) to 63,000 tons (1974 and 1975). Itwas estimated at 48,000 tons in 1978 and is believed to have remained atthat general level since. Sugar production has been affected by

insufficient supplies of materials and spare parts for the factories andagricultural inputs for the plantations.

1.15. Export Crops. Oil palm, coffee, tea, rubber and cocoa constituteZaire's main export crops. Oil palm is produced principally in Bas-Zaire,Bandundu, Haut-Zaire and Equateur. Production of palm oil declined from325,000 tons in 1970 and to about 92,000 tons in 1981 due to neglect ofplantations in some areas and scarcity of foreign exchange for spareparts. Other palm related products include palm kernel oil and palm kernelcake with production estimated at about 50,U00 tons per year. Coffeeremains Zaire's most important and reliable agricultural export. Data oncoffee production, marketing and exports are particularly poor since a highproportion of exports are illegal. Coffee production has been about 60,000- 100,000 tons a year over the last decade. The principal constraints forexpansion of coffee production are inadequate infrastructure for marketing,storage and processing, lack of inputs such as pesticides, and unrealisticpricing policies. Tea is restricted to the Kivu province. Its productionhas declined from about 7,000 tons in 1970 to less than 4,000 tons in1981, due mainly to management, price and technical problems. Rubberproduction is concentrated in the Cuvette Centrale and is believed to havedeclined from 45,000 tons in 1973 to about 20,000 tons in 1981 due to lackof spare parts. Cocoa production has fluctuated between 3,000 and 5,000tons over the last few years. Other exports include fiber products,pyrethrum and cinchona bark.

1.16. Forest Products. The forest areas are located mainly in theCuvette Centrale (para 1.07). Only a small fraction of Zaire's forestryresources is currently exploited commercially and production of timber logshas remained stable at about 323,000 m3 over the last five years.Production of sawn timber, however, has decreased from about 163,000 m3 in1973 to an estimated 61,000 m3 in 1981. The principal problemscontributing to a decrease in wood production are lack of investments inplant and equipment by forestry enterprises, shortages of spare parts, andtransportation bottlenecks. Outside of the Cuvette Centrale rain forest,most forest exploitation is for fuelwood needs and is estimated at about 13million m3 a year.

1.17. Livestock and Fisheries. The national cattle herd was estimatedat 1.2 million in 1980, up from about 1 million in 1969 - 1971; it isconcentrated in the east. The principal factors constraining increasedlivestock production include inadequate services to assist in control ofdiseases, deterioration of the management and facilities of many of thelarge commercial ranches (para. 1.20) and inadequate and disorganizedmarketing channels. Beef production has remained stable at about 20,000tons over the last ten years. Information on production of other livestockis poor. The total goat herd is estimated at 2.0 - 2.7 million, sheep at0.8 million and pigs at 0.7 million head. There has been an average of 12- 13 million poultry in Zaire over the last six years or so. Theproduction of milk, eggs and related livestock products is estimated atbelow 20,000 tons per year. Fish production was estimated at about 100,000tons in 1976 down from about 150,000 tons in 1971. Development of thefisheries subsector is constrained by a lack of services to smallproducers, marketing problems and shortage of foreign exchange forequipment and spare parts in the commercial fisheries. Production of meatfrom hunting is estimated at about 45,000 - 50,000 tons while annualconsumption of insects is estimated at about 33,000 tons.

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Structure of Production

1.18. Zaire's agriculture is characterized by coexistence of the modernand the traditional sectors, each distinct from the other in structure,production techniques and scope of operations. It is estimated that atpresent the modern sector contributes about 40% to agriculture's share ofGDP and the traditional/subsistence sector, about 60%. Of the total valueof agricultural production, an estimated 48% is marketed and the remainderconsumed on the farm. About 27% of total marketed production is reportedlyexported, 23% sold on the internal consumption market and 50% sold to localindustries.

1.19. The Modern Sector. The modern sector includes large, corporation-owned plantations using modern techniques and inputs and small,individually-owned farms and ranches. The largest plantations are hield byforeign-owned companies with full Zairian corporate identity and Zairianparticipation. Many of the big plantations are part of verticallyintegrated agro-industrial enterprises. The smallest modern sectorenterprises were established by colonial farmers and many of them have been

completely abandoned. The principal commodities produced by the modernsector are palm oil, sugar, rubber, tobacco, coffee, cocoa and cattle.

1.20 Modern sector palm oil is produced by about 12 largelyforeign-owned production and processing companies. Together they accountedfor about two-thirds of national production in 1976. The total area underplantation is estimated to have declined from about 93,000 ha in 1973 to72,000 ha in 1976, and has probably been further reduced. Palm oilprocessed from plantation fruit represents about 67% of total commercialpalm oil production. Sugar is produced by two mostly foreign-ownedcompanies (para 1.14) mainly under rainfed cultivation. Implementation ofa Chinese-financed project in Yawenda (Haut-Zaire) was started recentlyfor a capacity of about 15,000 tons of refined sugar but is encounteringserious implementation problems. Since independence, large cofteeplantations have declined in importance and some of them have beenabandoned. Production of rubber is concentrated on nine large plantationsin the Cuvette Centrale. An estimated 40% of the national cattle herd isin the modern sector.

1.21. The general decline of the modern sector since independence is theresult of the low priority given to agriculture in the allocation of humanand financial resources and of the Zairianization and nationalizationmeasures of 1973/74 which sought first to transfer ownership of allforeign-owned agricultural, commercial and transport enterprises to Zairianowners and then to have the Governmnent exert direct management control overmany large enterprises. The immed:Late impact of these measures, which alsoaffected the traditional sector severely (para 1.23), included decline inproduction, a serious deterioration of plant and equipment, an exodus of

skilled managers and a serious disruption of commercial links. These mea-surese seriously damaged private sector confidence at home and abroad. The

modern sector has, moreover, suffered from the recent economic crisis andmost plants are operating at below 50% of their capacity because of thedecline in agricultural production and the lack of foreign exchange.

1.22. The Traditional Sector. This comprises an estimated 3 to 4million farming units working an average farm of about 1.5 ha andaccounting for about 60% of total agricultural production. ThroughoutZaire, traditional farming techniques rely almost exclusively on hand labor

and simple tools. Although well adapted to certain local situations, thelittle-changed slash and burn methods have resulted in soil erosion and a

decline in soil fertility in areas where population density has increased.The traditional crops grown are cassava, maize, rice, cotton, peanuts,vegetable and tropical fruits. An estimated 60% of cattle is owned byabout 3% of traditional farmers. A more detailed description oftraditional livestock production techniques is given in para 2.13.

1.23. Before independence, services for peasant agriculture were ingeneral oriented toward the production of cotton and the Government workedmainly with private cotton companies to provide inputs, services, and

supplies to farmers and to build the necessary infrastructure forprocessing and marketing the crop. The difficulties that private companiesexperienced (para 1.21) resulted in a serious deterioration of ruralservices and infrastructure, and a steady disintegration of the transportsystem. The consequences have been declining marketable surpluses £romsubsistence farmers, a worsening of the quality of rural life, anddeclining incomes.

1.24 Land Tenure. Land tenure is regulated by a combination oftraditional laws and modern regulations. Modern regulations are embodied ina law promulgated in 1973 which contains provisions for the continuingapplication of some traditional practices. Under the traditional system,individuals are granted usufruct rights over, not ownership of, the land tobe cultivated on a permanent basis and they own all the crops produced onthat land. These rights are usually transferable from father to son orclose relatives. Uncultivated and unutilized land belongs or revertsautomatically to the Government, or else must be formally registered withmodern title deeds to remain private. To expropriate cultivated land, theGovernment must pay compensation; it can, however also acquire most land,including grazing land, without compensation.

Marketing and Pricing of Agricultural Products

1.25 The Government of Zaire has in the past sought to regulate andcontrol marketing and prices of many agricultural products, in an effort toensure adequate supplies of food and basic commodities to the majorconsumption centers at a reasonable cost, and to guarantee prices whichwill provide adequate incentives to producers. However, inadequateapplications of Government measures have often had a negative impact onmarketing and production in many cases and the objectives sought, althrough

generally reasonable, have proved difficult to achieve. The maininstitutions involved in marketing and pricing activities and theirrespective roles are described below.

1.26 The Ministry of National Economy has principal responsibility forprice policies and, through an Interministerial Price Commission, for

setting and regulating official prices from the producer to the retaillevels. By a Decree signed on June 12, 1981 by the Minister of NationalEconomy, the Government began a program of selective liberalization ofprices for domestically produced as well as imported products wherebycontrols were to apply only to palm oil, wheat flour, sugar, petroleum andpharraaceutical products, construction materials other than wood, water,electricity and internal public transport. Requests for price increasesfor these products were to be regarded as automatically approved if the

Ministry of National Economy did not react within thirty days.

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1.27 MARD's role in marketing and pricing activities, historicallylimited to its nominal membership in the Interministerial Price Commission,

has recently expanded. A May 29, 1982 Decree signed by the Mlinister ofAgriculture has removed all controls on the prices of the followingagricultural products: cassava (tubers and flour), maize (grains and

flour), rice, soya, peanuts, beans, fruits and vegetable. The actualimplementation of the decree is primarily the responsibility of regional

governors.

1.28 Although marketing organization and problems vary for differentgroups of commodities, the following constraints apply to all :

(a) shortage of storage facilities; (b) a dilapidated road infrastructure;(c) unreliable river and rail transport systems; (d) serious shortage of

transport equipment, fuel and spare parts; and (e) limited availability of

credit. The marketing system for each commodity group is briefly reviewedbelow.

1.29 Foodcrops. The marketing structure for foodcrops consists of twoparallel systems: the first dominated by moderate to large traders and

companies, the second comprising mainly small village buyers operatingthrough a long chain of small intermediaries up to the urban retailers.Problems specifically related to fooderop marketing include: (a) the totallack of reliable information about storage and transport; (b) high productlosses; and (c) the almost complete control of the system in some areas bya small number of merchants. Past Goverament efforts to regulate andcontrol foodcrop marketing through parastatal bodies and the setting of

minimum prices have now been abandoned with the closing down of the OfficeNational des Produits Vivriers in early 1981 and the publication of the Mây29, 1982 price Decree (para 1.27).

1.30 Industrial and Export Commodities. Despite severe problensencountered in early 1982 due to non-payment for cotton lint by textilecompanies, measures have been taken to resolve this problem and normaloperations have resumed. Problems due to deteriorated and limitedtransport capacity, as well as the bad condition of the ginneries, are

being addressed through the second cotton project (para 1.05). One majorproblem remains, that is late deliveries to the textile firms. Producer

price policy has posed problems in the past; prices were revewed onlyirregularly and adjustments made bore little relationship to input priceincreases or prices paid for crops in competition with cotton. Inaddition, prices were fixed nationwide and did not take into account

regional or seasonal differences within Zaire. Legislation was introducedin 1981 which declared producer prices for cotton as minimum prices which

can be adjusted upwards by cotton companies; however, regular and adequateadjustments of minimum producer prices appear essential in order tomaintain producer incentives.

1.31 Marketing of palm oil faces the following specific problems : theinefficiency of the mills which are deteriorated and ill-maintained because

of spare parts shortages, resulting in unreliable and costly palm oilsupply; (b) transport disruptions due to fuel shortages; (c) high transportcosts due to high losses and theft; and (d) limited credit availability.

1.32 Coffee marketing up to and including export is handled by aparastatal agency for small producers and by larger private producersthemselves. Specific problems are: (a) delayed and often inaccurate coffeegrading; (b) cumbersome procedures for the attribution of export licences;

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and (c) fulfillment of export requirements. In addition, coffee pricereviews have been irregular and levels have not reflected either localproduction costs or international prices. This has encouraged thedevelopment of unofficial marketing arrangements and illegal exports.

1.33 Livestock and meat marketing is constrained by problems ofinadequate and poorly maintained processing, storage and transportinfrastructure. These problems are exacerbated by the long distancesseparating production areas and consumption centers. In most areas,authorities still rely on a 1979 Decree fixing minimum cattle prices thatare sometimes enforced as maximum prices, resulting in seriousdisincentives to produce or to sell.

1.34 It is widely recognized that Government controls and regulation ofthe marketing system have not achieved the desired objectives and have, insome instances, aggravated problems. The costs to the Zairian economy interms of financial losses, the economic costs of misallocation ofresources, and foregone production have been significant. The AgriculturalTechnical Assistance project (para 1.05) includes funds for the financingof marketing studies and provisions for setting up a marketing workinggroup to review marketing problems and issues.

C. Institutions for Agricultural and Rural Development

1.35 Few public resources have been effectively mobilized to develop asound institutional basis for promoting agricultural development and as aresult, virtually all institutions having responsibilities for developmentof the agricultural sector are weak and poorly organized. Since 1980, theGovernment has pursued a policy of encouraging private sector involvementin agricultural development by redefining the respective roles of thepublic and private sectors. The role of the Governnent is to focus on theoverall planning and coordination of development efforts, the provision ofinfrastructure and some basic services and on pilot development efforts,while the private sector is to become more responsible for all directproductive activities. However, a more precise and clearly definedassignment of responsibilities between the Government and the privatesector remains to be worked out.

1.36 The principal Goverament bodies involved in agricultural and ruraldevelopment are the following: the Ministry of Agricultural and RuralDevelopment, Environment, Forestry and Tourism (MARD), the Ministry ofNational Economy, the Ministry of Education, the Highway Authority (OR), anumber of parastatals, Regional and local authorities, the NationalEconomic Development Bank (SOFIDE), the Ministry of Finance and Portfolioand the Ministry of Planning.

1.37 MARD has undergone important changes in recent years. In May1982, the Ministry's responsibilities were expanded through the addition ofEnvironment, Forestry and Tourism, and finally, together with otherMinistries, MARD has recently been reorganized to include, between theState Secretary and director levels of management, a new position ofSecretary General. The organization of the Ministry is therefore changingand the chart included in this report should be seen as transitional.

1.38 MARD is responsible for agricultural policy, extension services,veterinary and research services, and technical supervision of parastatalinstitutions covering various commodities. It has broad responsibility

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within the Government for sector planning and policy formulation and forplanning, preparation, implementation, and supervision of projects. TheAgricultural Secretariat has in the past been assigned responsibility forpreparation, implementation and follow-up of large production-orientedprojects, including projects receiving foreign support, while the RuralDevelopment Secretariat has concentrated on provision of rural services,such as water supply and on cooperative development. MARD currentlyemploys an estimated 16,000 staff directly; significant numbers of otherstaff are indirectly employed by MARD in related parastatals and onspecific projects. Services providLed are generally weak due to poor stafftraining, low salary levels, and inadequate physical and financialresources. In many areas of the country, extension work by the Governmenthas virtually ceased because extens;ion workers have no access to inputs ormeans of transport; the Government has recently acted to equip extensionsupervisors with vehicles or motorbikes, and extension agents withbicycles. In some regions, only agricultural enterprises and developmentprojects operate extension services. MARD has trad-itionally been unable tocarry out its responsibilities for planning, preparation, implementationand supervision of projects due to insufficient funds and lack of trainedpersonnel. Furthermore, its management structure is weak and its budgetaryprocedures and financial controls inadequate. The Government, with theassistance of external donors, is taking steps to address these problemsthrough the Agricultural Action Plan (par. 1.48).

1.39 The Ministry of National Economy is responsible for price policiesand, through an Interministerial Price Commission, is responsible forsetting and regulating official prices from the producer to the retaillevels (para 1.26). The Ministry of Finance and Portfolio handles mostbudget, financial control issues and supervises companies in which theGovernment holds shares while the Ministry of Planning handles planning,preparation and administration of 1he investment budget. The Central Bankhandles foreign exchange allocations with the Ministry of Finance. TheMinistry of Education handles agricultural education and the Ministry ofTransport and its operational agency, OR, development and maintenance of alarge part of the national road network.

1.40 Regional and local authorities have important responsibilities forcoordination of development activities, allocation of land and thedisposition of abandoned farms and plantations. Zaire is divided intoeight regions (excluding Kinshasa), each of which is divided intosub-regions. The sub-regions are :Eurther divided into zones, the smallestadministrative unit. The Ministry of Territorial Administration isresponsible for local administration and works through its appointedofficers: Regional, Sub-regional and Zone Commissioners. These officialscoordinate the work of the staff of the technical ministries assigned totheir jurisdiction.

1.41 Parastatal Agencies: In 1971, the Government began to establishregulatory parastatals ("offices") for each major agricultural product.The principal responsibility of these bodies was to regulate trade andexports for their respective commodity. Some offices financed marketingactivities, while others became directly involved in production activitiesfollowing the "nationalizatio-n" of 1974. In May 1978, the Goveramentinitiated a complete reorganization of these commodity agencies due toacute management and financial problems; some offices were disolvedcompletely (para 1.30), while others were replaced with new parastatalinstitutions. Three parastatals are operating at present: Caisse de

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Stabilization Cotonnière (CsCo - cotton), Office National pour leDéveloppement de l'Elevage (ONDE - Livestock), and Office Zairois du Café(OZACAF - coffee).

1.42 Agricultural credit is not well developed in Zaire and the lackof credit available for productive enterprises is an important obstacle todevelopment of the sector. Agricultural credit is provided by sixcommercial banks and by SOFIDE (Société Financière de Développement), adevelopment finance company established in 1970. These institutionsprovide loans to medium- and large-scale enterprises, but a majorconstraint is lack of foreign exchange resources for lending. SOFIDEestablished an agricultural department in 1976 and its agricultural lendingincreased from about 3.2% in 1975 to about 38% in 1980, representing anevolution in commitments from Z 0.2 million in 1975 to Z 36.0 million in1980. Official credit for smallholder agriculture is virtuallynon-existent in Zaire- the only source of such credit is within the contextof a few area-specific development programs. Although the demand forcredit by smallholders is difficult to assess, there is a need for suchcredit, at least in the long term. The Government has announced plans toestablish an agricultural bank; feasibility studies have been completed.The World Bank and other donor agencies have resisted pressure from theGovernment to participate in the creation of this bank which they considerill prepared. Pilot operations recommended by those studies have startedin some regions.

1.43 To stimulate private sector participation in national economicdevelopment, the Government established a system of Economic Recovery Funds(ERF) in 1978 and these have become an important source of financing foragricultural development. Under this system, private companies enter intoan agreement to manage development activities in rural areas, utilizingGovernment funds raised by surcharges added to the retail price ofagricultural or agriculture-related products; the surcharge may not exceed10% of the retail price. The ERF system is under the supervision of theMinistry of National Economy, Commerce and Industry, and the technical workof evaluating project proposals and monitoring project execution andutilization of funds is carried out by a General Secretariat. Total fundscollected (1978-81) by the companies which have signed developmentagreements are estimated at about Z200 million (US$36 million), andexpenditure on these projects is estimated at Z135 million (US$24 million).

Agricultural Research

1.44 The National Institute for Agronomic Research and Studies (INERA),is responsible for agricultural research. It inherited a network ofresearch stations dispersed over the country. At present INERA is anautonomous institute within MARD. In total, INERA now manages 20 stations,six main stations in charge of national programs with assistance frominternational research organizations such as CIMMYT and IITA (Yangambi,Central station; Gandajika, Kipopo-cotton, Mvuazi-manioc (PRONAM),Mulumgu-grain, legumes; and Nioka, livestock) and 14 secondary stations.Other former stations are not operational.

1.45 Researchers are stationed only at the six main stations. Ingeneral the stations are heavily overstaffed with non-research personnel.The organization is unwieldy and suffers from a lack of funds, irregulardisbursement of available funds, an inadequate salary system, difficultinternal communications, ineffective physical infrastructure and weak

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management. The limited results obtained so far have generally not beentransferred to small farmers, due :mainly to weak extension services andinput delivery systems and poor linkage between research and fieldactivities.

1.46 The weakness of research findings is a serious constraint forimplementation of on-going agricultural projects and will be a majorobstacle in design and execution of future development projects. Inrecognition of this situation and the impact which agricultural researchmight have on agricultural production, the Government of Zaire submitted apreliminary proposal for a research project to external financing agencies

at the June 1982 Consultative Group Meeting on Agriculture. Most of theagencies at the meeting expressed interest in such a project. A project

preparation effort is now underway which may lead to a researchrehabilitation project.

Agricultural Education

1.47 Agricultural education is the responsibility of the Department ofEducation. A variety of agricultural training programs are available whichprepare students for extension and research work. Graduates are ranked atthree levels of expertise, depending on the length and type of program: ex-tension workers are usually A3, agronomists A2, and senior agronomist AI.The Yangambi faculty near Kisangani is the principal source of qualifiedagronomists. Although Zaire has developed a substantial network of

agricultural education institutions, most programs are not well adapted tothe needs of the agricultural sector. Graduates recruited for theextension services generally require considerable additional practicaltraining in order to perform adequately. Budgetary shortages haveafflicted the teaching institutions and their physical plants are generallyobsolete, inadequate, and deteriorating. The need for revitalization oftraining institutions is widely recognized.

D. Government Strategy for Agricultural Development

1.48 The main sector issues can be summarized as follows (para 1.08):inadequate or unclear Government policies, weakness and prolonged neglectof key agricultural institutions, lack of planning and projectimplementation capacity, weakness of basic services and cumbersome andineffective budgetary and financial management systems. In the pastdecade, the Zairian Government, with substantial assistance andencouragement from external agencies, has formulated a series of programsfor agricultural recovery on the assumption that revitalization of theagricultural sector was probably the highest priority for Zaire's long-termdevelopment and required a greatly increased allocation of resources. Todate, however, most plans for agriculture have remained largely at theconceptual stage and have not been carried out. The sector has continued,in practice, to receive a low priority particularly in the allocation offinancial resources. Its share of Goverament budgets has remained at the 2- 3% level throughout the 1970s but increased to about 9% in 1982. TheZairian Goverament is currently engaged in a new effort to define acoherent strategy to develop the agricultural sector. The World Bank andseveral other agencies have encouraged this effort which is referred to as

the Agricultural Action Plan.

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The Agricultural Action Plan

1.49 The Agricultural Action Plan is designed to stimulate short-termrecovery: first, by removing critical bottlenecks, notably inconsistent orinappropriate policies and inadequate allocation of Limited foreignexchange; second, by making on-going projects and programs work better; andthird, by specific efforts to encourage small farmers and private companiesto produce and market foodcrops, cotton and sugar for local industries,palm oil, coffee and forestry products for export. It includes measures tostrengthen the institutional support for agricultural policies andinvestments, a more systematic review of critical issues affecting

agriculture and of on-going projects to improve their implementation,preparation of a three-year investment plan for agriculture within thecontext of the Mobutu Plan, and an analysis of import needs of agriculturalenterprises in the private sector and a definition of priorities amongthem.

1.50 The basic Government strategy for agricultural development hasbeen summarized in the Agricultural Recovery Plan, a report prepared inlate 1981 to early 1982 by MARD, reviewed by external financing partnersand approved by the Council of Ministers. The chief objectives of thestrategy are: (a) to make Zaire self-sufficient in foodcrops, byincreasing production; (b) to increase the production of crops used as raw

materials by the local industries; and (c) to increase export cropproduction. For the short- and medium-term the priorities will be foodcropdevelopment through recovery of smallholder production and rehabilitationand maintenance of existing production capacity. Thus, short to mediumterm measures focus on: (a) establishing clear procedures for cabinet levelcoordination of agricultural policy; (b) reinforcing the capacity of MARD

to plan, prepare and implement projects more effectively; and (c)reinforcing its capacity to address key policy problems moresystematically.

1.51 The Government has taken or is taking action, partly with theassistance of external donors including the Belgian, French, Canadian andU.S. bilateral assistance programs and IDA, to reorganize MARD and toimplement the measures summnarized above (para 1.49). Significant initia-tives have been taken in the following areas: (a) interdepartmentalcoordination, (b) reorganization of MARD, (c) planning through provision ofshort- and long-term technical assistance and training of Ministry staff,(d) project preparation, (e) financial and Budget management, (f) project

supervision, (g) procurement and monitoring and evaluation, and (i) policyreview through policy working groups. Although it still is too early toassess the impact of recent measures on agricultural production, the Planand the preparatory efforts which it reflects represent realistic andsignificant steps to address the most important institutional and policyissues which have impeded production in the past.

E. Bank Group Support for Agriculture.

1.52 Bank Group support for the development of Zairian agriculture hasincluded sector work, project financing, coordination of donors' activitiesand a sustained dialogue with the Government to define and address morecoherently key policy issues such as pricing, marketing, incentives forprivate sector development, foreign exchange allocation, credit andresearch and training.

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1.53 A sector survey for agriculture was undertaken in ]971-72. Anagricultural sector memorandum was circulated to the Consultative Group in

May 1981, designed to facilitate a review of the Bank's agriculturalsupport to Zaire. A total of aine projects for agricultural development,excluding two lines of credit to SOFIDE (paras 1.03 - 1.05), consistent

with Government priorities for agriculture and rural development andaddressing both the rehabilitation and expansion needs of privately owned,modern agricultural enterprises and the development of basic services for

the smallholder farmers, have been supported to date. Finally, the BankGroup has played an important role in helping the Government coordinate the

activities of external financing agencies in the sector by taking a

leadership role in setting up cofinancing arrangements in seven of the nineprojects that it is financing, and by organizing and chairing, under the

aegis of the CG, the 1977 Working Group on agriculture and the 1982CG Special Meeting on agriculture.

1.54 Bank Group support for agricultural development in Zaire over thenext few years will continue to have two main goals: first to help improvethe policy and institutional framework so as to create an environment

conducive to increased investments, better management and increasedoutputs; and second to help increase the production of foodcrops as well asindustrial and export crops through the financing of well-prepared,production oriented projects. Intensive supervision of on-going

agricultural projects will continue to be a key element of the Bank Groupsupport to the sector.

II - PROJECT AREA

A. Location and Physical Characteristics

2.01 Location and Topography. The Project area would be most of theIturi subregion of the Haut-Zaire region in north-east Zaire (see map).The Ituri subregion is remote and landlocked and is very difficult to reachby road or by plane. No regular airline service is organized to or fromthe area and the roads leading to it are in a very bad state, requiring at

least one week travelling time to the nearest major urban centers ofKisangani or Goma during the rainy season and several days during the dryseason. The area has important gold mining activities (para 2.28) and manypeople are abandoning farming to search for gold. The Project area isbordered by Sudan in the north, Uganda in the east and south-east. Kivuregion lies to the south and Haute-Uélé, another Haut-Zaire subregion, to

the west. Although the sub-region comprises the five administrative zonesof Aru, Djugu, Irumu, Mahagi and Mambasa, the Project area would be limited

to the first four with a total areaL of about 29,000 km2. The Project areaconsists of a mixture of hills, plateaux and mountains,with altitudesvarying from just under 1,000 m to peaks of 2,000 meters. There are tworainy seasons: mid-March to mid-May and August to November.

2.02 Soils. Most of the soils of the Project area developedfrom non-differentiated bed rocks such as granites, schistes and basaltsin restricted areas. The dominant soil types are kaolisols and ferrasols,with the latter found mostly in the south and the north. The inherentfertility of these soils depends to a large extent on the clay content.

The southern ferrasols have a high sand and silt content and are consideredof low fertility. The kaolisols of the central section have a good clay

content and are of medium fertility. The northern section has both

ferrasols of a higher clay content than in the south and high fertilityblack soils on alluvial deposits that are hard to work.

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2.03 Vegetation and Land Use. The four zones to be covered by theProject (para 2.01) have been divided into three sectors and are coveredmainly with savannah with about 6,000 km2 representing pastures. Thenorthern sector has 4,000 km2 of pastures, 2,500 km2 of which are currentlyutilized. The central sector has potential for more than 5,000 km2 ofpastures but only about 1,500 km2 are exploited. The southern sector hasabout 2,300 km2 of pastures. Stocking rates are estimated to vary between2 and 4 ha/cattle unit. Current grazing practices could permit a stockingrate of about 2 ha/cattle unit over the whole project area or a total of317 000 cattle units, compared to about 243 000 currently available. Ifunused pastures of the northern and central sectors are exploited, anadditional 100,000 to 250,000 cattle units could be reared. These numberswould be actually lower if small livestock is considered (about 62,000cattle units). However, dangers of overgrazing exist in the central secterdue to high population density that leads to the use of more and more landfor cropping. The main vegetation cover of most of the pastures in thenorthern and southern sectors is Hyparrhenia (Jaragua grass). Othergrasses in these two sectors include Brachiaria (signal grass) of a goodfeeding quality, Sporobolus (dropseed grass) and Digitaria (finger grass)of inferior quality. In the central sector, the main grass is Setaria(foxtail millet), a good quality grass often accompanied by Imperata (Cogongrass) and Cymbopogan (false citronella). In traditional areas, grazing isheld communally while individuals have cultivation right according tocustomary law (para 1.25). Use of communal grazing land varies from afree for all to relatively closely controlled conditions.

B. Socio-Economic Aspects

2.04 The Project area has a population estimated at 1.6 million peoplewith a predominantly rural life pattern. Population density varies from31/km2 in the Irumu zone to about 85/km2 in Mahagi. Total activepopulation is estimated at about 663,000. About 18,000 families own cattleout of a total of about 300,000 farming families. Seven principal tribeslive in the sub-region with different ethnic and geographic origins andobtain most of their income from crops. Only three of the major fourtribes own appreciable numbers of livestock. The four major tribal groupsconsist of: (a) the Wallendu (about 28% of the population) living in Irumuand Djugu. They derive most of their income from cropping but also raisesome cattle and small livestock; (b) the Bahema, representing about 25% ofthe population and living mainly in Irumu, Djuju and Mahagi zones. Theyare mainly pastoralists but also produce foodcrops except for some groupsin the Southern Irumu who do not practice cropping; (c) the Lugware (about22% of the population) living in Aru mainly from cattle raising. They alsoproduce and sell foodcrops; and (d) the Alur (about 26% of the population),a group of crop and livestock producers living in Mahagi.

2.05 Farmers' incomes depend to a great extent on whether they areprimarily food croppers who traditionally own cattle, cattle breeders whocultivate farms just to satisfy their basic foodcrop requirements, orcultivators who have no, or very little, livestock activities. It isestimated for instance that the Bahemas (essentially pastoralists) deriveall their incomes from cattle related revenues while the Alur and Lugwarederive about 40% of their incomes from livestock and 60% from foodcrops.In general, those who derive the largest proportion of their income fromlivestock have tended to have a higher overall income level. Asocio-economic study based on a very limited sample and conducted by BPI(para 4.03) in 1980 indicated that gross income in rural areas varied from

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about US$600 per family for crop farmers to US$4,000 for a famnily owningabout 262 cattle head. Cash revenues were estimated to vary from about 20%of gross revenues for the small income families to 30% for higher incomefamilies.

C. Production Systems

2.06 Food Crops. Most of the pre-independence large farms are nowowned by Zairians, parastatals and missions. They presently produce verylittle because many of them have been gradually abandoned. Consequently,most of the production is now being done by the traditional sector. Themajor crops grown vary according to the zone and their production isestimated as to be 1,600,000 tons per year for manioc, 160,000 for beans,130,000 for sweet potatoes, 90,000 for maize, 27,000 for banana, 20,000 forgroundnuts and 8,000 for paddy.

2.07. The average farm has an area of 2.5 ha. In general, there are twoplantings per year of two or even three crops in the same field. Each cropis harvested separately. There are well established crop rotations and theland is usually cultivated for three years and then left for three to fouryears to fallow. Farmers are generally skilled. The production methodsare generally primitive and rely on hoes and machetes as tools. Nofertilizer or pesticides are available and labor is practically the onlyinput. The main factors limiting increased production are a severeshortage of tools in local markets and the poor quality of plantingmaterial. Despite the lack of reliable data, yields are believed not tohave significantly decreased in the last few years. In the central sector(Mahagi and Djugu), demographic pressure on land is such that shorterfallow periods have had to be adopted. This is likely to have acceleratedsoil deterioration. Studies under the Project (para 4.14) wouldinvestigate ways to address this problem.

2.08 Cash Crops. Coffee is by% far the most important cash crop inIturi. An estimated 9,000 smallholder coffee growers and a few estateplantations produce about 3,000 tons of both arabica and robusta coffee peryear. Smallholders' plantations cover an area of about 0.1 to 0.5 haeach. The apparent tree density is about 1,000 to 1,200 trees per ha, butbecause many of them have never been replaced, the real density may be ofthe order of 600 to 800 trees per ha. Lack of pruning, dense shading andthe absence of inputs such as pesticides and fertilizers all contribute tolow average yields of about 200 kg of green coffee per ha.

2.09 Since 1976, the British American Tobacco Company (BAT) has beenpromoting tobacco production in the Project area. About 2,400 farmersparticipated in the BAT program in 1981 and produced an estimated 226 tonsof flue cured and 120 tons of air cured tobacco. BAT has its own extensionservice and provides the necessary inputs such as pesticides, fertilizers,pipes at cost and seeds for free. Each extension agent is responsible forabout 30 farmers in the flue-cured tobacco producing area and about 150 inthe air-cured area. To qualify fcr BAT assistance, farmers, especiallythose growing flue-cured tobacco, are required to follow strict tobaccofarming and processing practices. The average farmer works on an area ofabout 0.3 ha. All tobacco produced under BAT supervision is purchased at aprice that is determined every year by BAT. The tobacco program appearssuccessful and has contributed to an increase in food production becausethe crops planted after tobacco benefit from the after effects offertilizers. Net incremental cash farmers' revenues resulting from tobacco

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alone were estimated at about 1000-1500z (US$180 - 280) per grower intobacco produced is processed by BAT at its Kinshasa plant and sold in thelocal market. The major problem facing BAT in its efforts to maintain orincrease the existing production is the lack of foreign exchange topurchase fertilizers, pesticides and sheet iron for the flue-cured tobacco.

2.10 Cotton production is promoted by SOTEXCO (Sociéte Textile etCotonnière), a textile company that provides inputs and extension servicesto farmers, maintains roads and buys seed cotton at fixed prices. SOTEXCOoperates one ginnery in Ituri and will receive assistance under the secondcotton project (para 1.04).

Livestock

2.11 The raising of livestock is an important activity in Ituri onaccount of its high social value and its economic role. About a third ofthe national cattle herd is raised in Ituri.

a) Cattle

2.12 Herd size and dynamics: The cattle herd is believed to haveincreased from 259,000 in 1965 to 300,000 in 1975, declined to 275,000 in1978 and then risen to about 309,000 in 1981. Reasons for these variationsare not well known, although it seems probable that part of the increasecan be attributed to activities of the on-going Ituri project (ChapterIII).

2.13 Cattle birth rate is about 19%, commercial offtake about 8.5% andmortality about 9%; calf mortality is estimated at 20%. The calving rateis 35%, the age of cows at first calving about 60 months, and the calvinginterval about 20 months. These data suggest that about half of thepotential growth rate of the Ituri herd (births) is lost throughmortalities; given the relatively low rate of births, this has resulted ina low growth rate in the neighborhood of 2%. Further, the low calving rateitself is caused by the advanced age of the female at first calving ofabout five years, poor grazing management, presence of old cows (para2.14), mineral and salt deficiencies and high parasite and diseaseincidence.

2.14 Production Systems. Livestock activities are mostly traditionaland occupy less than 10% of the farming families (para 2.04). The majorityof livestock producers are also farmers. Cattle production is extensivewith very little input use. Herd composition is about 8% bulls, 46% cows,17% heifers, 13% steers and 16% calves. These numbers reveal an abnormallyhigh proportion of cows, a consequence of a relatively high calf mortalityand the reluctance of producers to rid themselves of aging, thus unproduc-tivie cows. They also indicate a low percentage of calves resulting from alow calving rate (para 2.13).

2.15 It is estimated that 34% of the cattle herd is raised in thenorthern sector, 26% in the center and 40% in the south. The average herdper producer is 14, 23 and 38 head respectively for the three sectors.Herd sizes range from one to more than 250 head per owner; about 60% of thetotal herd is in the hands of small producers (1 to 60 head) and only justunder 10% is owned by those with 250 head or more. The combination of alow cattle density of Il head/km2 and a large number of relatively smallherds have made it difficult to reach all producers under the on-goingIturi project (para 3.01).

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2.16 Animal Health. Although the last reliable data on c:? tt -Ie diseasesin Ituri date from the colonial days, the following diseases have beenrepeatedly observed and constitute a major constraint to livestockproduction in Ituri.

2.17 Tickborne diseases. Tickls are responsible for the maintenance andpropagation of three major diseases of cattle in Ituri. East Coast fever(ECF - theileriosis), caused by the protozoan parasite Theileria parva andtransmitted by a brown ear tick and a red-legged tick is the most seriousand under some circumstances can cause high mortalities particularly incalves. It is suspected that difjferent strains exist and that adult cattlemoved to a new area are susceptib:Le to new strains. While mortality fromECF has traditionally been exaggerated in published statistics on Iturilivestock, more reliable data froma other ECF enzootic areas in East andCentral Africa indicate that average calf mortality due to ECF would varyfrom 3 to 10%. Piroplasmosis and Anaplasmosis are both transmitted by thetropical bont tick 'Boophilus microplus".

2.18 Apart from their importance as disease vectors, and the highlosses that may result, other major effects, less dramatic but probablywith greater economic impact,produced by ticks are: (a) the loss of bloodamounting to 1 - 3 ml for every tick completing its life cycle on cattle,(b) irritation causing licking and scratching (called "tick worry") whichinterferes with grazing and drastically reduces the productivity ofsurviving animals; (c) damage to hides; and (d) predisposition of the hostcattle to bacterial and fungal infection. Although the magnitude of thesedirect effects of tick infestations are not well documented in Ituri,studies carried out elsewhere on ticks suggest that an average dailyinfestation of 50 engorging "Boophilus" (i.e. the tick causingpiroplasmosis and anaplasmosis) can reduce weight gains by up to .65 kg pertick or about 3,500 kg per tick life cycle in a herd of 100 cattle. Thissuggests that it is imperative to control the ravages of ticks andtickborne diseases if cattle production in Ituri is to be increased.

2.19 Other diseases. Other diseases encountered in the project areainclude (a) Helminthiasis (liver flukes), gastro intestinal nematodes, lungworms and cycticercosis; (b) brucellosis, which causes many abortions; (c)Anthrax and blackleg and (d) trypanosomiasis which occurs in forested andriverine areas on the outskirts oif the project area where tse-tse flies arefound. Few cattle are reared in the tse-tse infested areas. A shortepidemic of lumpy skin disease occurred in the Southern sector in 1981 andis believed to have originated from Uganda.

b) Other Livestock

2.20 Most of the farmers in Ituri also have some goats, pigs, and a fewsheep and raise poultry. Small llvestock is important for the family'smeat supply and represent a valuable source of cash. There are anestimated 300,000 goats, 80,000 sheep and about 50,000 pigs. The majorityof these animals belong to small farmers who let them roam in thecountryside. Common health problems with goats and sheep include worms,coccidiosis, salmonella, piroplasmosis, caprine pleuropneumia and footrot. Information on the incidence of these diseases as well as mortalityrates and off take is lacking. The small size of individual herds and theapparent lack of interest of farmers in organizing breeding of smalllivestock renders any project intervention very difficult. The main fataldiseases of young pigs are worms and pneumonia.

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Fisheries

2.21 The Project area is bordered to the south east by Lake 1lobutuwhich has a total surface area of 5,270 km2, 2,420 km2 (46%) of which areconsidered Zairian waters. Data on fishing activities are not veryreliable but it is estimated that fishing is done by about 5,000 tradition-al fishermen using between 300 to 500 dug-out canoes; 6,000 artisanalfishermen using about 1,500 boats, 10% of which are motorized; and 10semi-industrial fishing companies owning a total of about 64 boats, 80% ofwhich are not operational. Total production from the lake was about 6,500tons in 1980, down from about 8,000 tons in 1977. Artisanal fishermencontribute about 75% of the catches, traditional fishermen about 15% andsemi-industrial concerns 10%. Fish is dried and salted by mostsemi-industrial fishing companies and frozen by half of them. Some drying,smoking and salting is also done by traditional and artisanal fishermen.Fishing companies ship fish by truck to towns such as Kisangani and Isiroand by plane to Kinshasa. Some small traders also buy and sell fish in

Ituri and occasionally ship it by plane to Kinshasa. Three fishermen'scooperative societies have been created and affiliated with ACOOPELI orfrom the has supplied them with limited amounts of fishing gear procuredwith funds from the Ituri livestock project. The major problem for lakefisheries remains the limited supply of adequate fishing gear, fuel andspare parts. Based on pre-independence statistics fish resources arebelieved to be exploitable at a sustainable rate of 12,000 tons/year orabout twice the current production level. Under the proposed Project (para4.14), limited funds would be made available for the procurement of fishinggear to be sold for cash by ACOOPELI to fisheries cooperatives. The FrenchMinistry of Cooperation is also planning to provide fishing gear tofishermen and to do a more systematic study of fishing activities.

D. Marketing

2.22 Ituri has been a traditional food supplier to the lowlands ofHaut-Zaire. The main exports are beans, cassava, fish, cattle, meat, andmaize. Trade seems to have grown despite the bad conditions of theroads. There is also a continuous local demand for foodcrops fromfishermen along lake Mobutu and from the increasing number of farmers whohave abandoned crop production to dig gold. Marketing faces majorconstraints such as lack of infrastructure, socio-economic factors,inadequate pricing and foreign exchange policies.

2.23 Marketing infrastructure. Basic marketing infrastructure includesrural and urban marketing centers, rural slaughterhouses, an abattoir, anorth-south stock route, roads and the Bunia airstrip. Poorly maintainedroads are a serious constraint to trade from the project area to nearbyconsumption centers and are the main cause of depressed demand. Roads tothe major regional centers of Isiro and Watsa in the north, Kisangani andGoma in the south are in a very bad state and result in high transportcosts and high cattle weight losses. Other infrastructural constraintsinclude the deteriorated state of the Bunia abattoir, the absence of meatstorage facilities and the run down bunia airstrip. The Bunia airstrip hasspecial relevance because of the importance of the Kinshasa meat marketwhich can be supplied only by plane. The Government has already awarded a

contract to a civil engineering firm to rehabilitate the airstrip and fundshave been earmarked for that purpose. Rehabilitation of the Buniaairstrip would allow the landing of turboprop and jet airplanes which areless costly to operate than piston engine airplanes, the only craft that

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now go to Bunia. Rehabilitation cf the Bunia abattoir has now beenundertaken by CIDA (para 5.21) and should become operational in late 1983.

2.24 Socio-economic factors. In addition to infrastructure problems,marketing is haapered, especially for livestock, by traditional attitudesin the central and northern sectors of the project area where producersseem reluctant to sell their cattle unless faced by a serious financial

problem. As a result, cattle sales in those areas have been constrainedand marketing development will require long, slow efforts to changeattitudes. ACOOPELI is expected to continue to play a major role in thisrespect (paras 3.12 and 5.21). Beef consumption, and consequently, sales,is also limited by low levels of income.

2.25 Prices. Price administration in the Ituri is similar to thecountrywide system (para 1.26). However, whereas prices of foodcrops havebeen remarkably free from Government interference there are indicationsthat the administration of cattle and beef prices in the sub-region are aserious constraint to commercialisation. Some local administrativeauthorities have consistently set cattle and meat prices at anunrealistically low level. This has discouraged producers from sellingtheir cattle. On the other hand, the level of the official exchange rateof the Zaire currency has tended to make imports of meat more attractivefor the Kinshasa market than Ituri meat and to further discourage shipmentof meat from the Project area. However, given appropriate foreign exchangerate policies, Ituri meat can become competitive with meat imports (Table

7). The impact of the Government's policy on prices in the Project areawill be monitored during the Project.

2.26 Other marketing constraints include lack of an appropriateorganization of marketing channels which lead to erratic supply of cattleto the markets and to traders coming from outside the region; theremoteness of the Ituri sub-region which results in disruption in thesupply of fuel and other basic necessities; and lack of credit to traders.

Supply and Demand

2.27 Ituri meat is consumed mainly in the local urban centers ofHaut-Zaire, by the rural population and in Kinshasa. It is estimated thatper capita meat consumption is about 1.4 kg per year in Ituri and variesfrom 3.7 in urban centers to 0.2 in rural areas. With an estimated 8.5%offtake, total available meat per year is estimated at about 25,50U head orabout 3,100 tons of carcass. In 1980 the urban population of about 800,000inhabitants in the subregion and outlying areas of Haut-Zaire was believedto have consumed about 2,900 tons of beef carcasses a year (about 23,000cattle head) while the rural Ituri population of about 1,300,000 wasbelieved to have consumed about 200 tons of beef (about 1,700 cattlehead). This would imply that about 100 tons (about 800 head) were shippedto Kinshasa in 1980. Most recent data indicate that between September 1981and February 1982, about 139 tons (about 1,000 cattle head) were shipped toKinshasa or about 23 tons (170 head) per month. These figures are verytentative and should be viewed with caution. They do, however, indicate anorder of magnitude and suggest that there is a significant unmet demand forIturi meat within the sub-region, in the neighboring areas and even in

Kinshasa. The main constraint to sale of meat to Kinshasa seems to be thepoor state of the Bunia airstrip and the Bunia Abattoir (para 2.23).

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E. Ongoing Activities in the LXject area

2.28 The major develcpmené project ir, lrcri is the Ituri LivestockProject which is reviewed in the next chapter. Other activities aredescribed in paras 2.09 - 2.10. The "Office des Mines d'Or de Kilo-Moto",a government-owned gold mining company, owns and operates gold mines inIturi. To help feed its workers, it operates five ranches covering 39,290hectares. All these ranches are in a run-down condition due to inadequatemanagement and lack of funds. Mortality of calves and other stock ishigh. The cattle herd in these ranches is estimated at about 2,000 head,down from about 4 000 in 1975. Financing for improvement of three of theseranches was included under the ongoing Ituri livestock project, but has notbeen implemented (Chapter III).

F. Rural Institutions

2.29 The sub-region is administered by the Sub-regional Commissionerstationed in Bunia. He directly supervises five zone commissioners whoreside in the zone headquarters of Aru, Mahagi, Djugu, Irumu and Mambasa.A number of chiefs of collectivities are appointed in each zone and reportto the zone commissioner. The sub-regional commissioner and the zonecommissioners coordinate the work of the staff of the technical ministrieswho are appointed by most departments at the subregion and zone levels.Livestock activities are under the responsibility of the Ituri Project Unitand are reviewed in Chapter III.

2.30 Field staff of the agricultural extension services include ten A2agronomists, 70 A3 extension officers and 18 agents. The chief of thesub-regional services is an agronomist located in Bunia. Each zone isunder the responsibility of an agronomist who supervises extension officersand agents working at the collectivity and village levels. Majorconstraints to extension work staff include lack of transport means,irregular salary payments, low salary levels and inadequate training.

2.31. Agricultural Training. There are about eight technical trainingschools in the Haut Zaire region, three of which are in the Project area atLoda, Bondo and Adrande. These are three-year program schools meant to

lead to employment of students at graduation at A2 or A3 levels. Like mostschools elsewhere in Zaire, they present the following weaknesses: (a)physical infrastructure is not adequately maintained and no appropriateequipment is available; (b) teachers receive very low salaries, are paidinfrequently, and consequently have to resort to part-time jobs or otheractivities; (c) despite a low rate of teachers to pupils, there is ashortage of qualified teachers; and (d) very little supervision and controlis provided from the central Ministry in Kinshasa, resulting in weakeducational and manpower planning and to misuse of resources.

2.32 Cooperatives have rapidly developed with the assistance of theIturi Livestock Project and are described in Chapter III.

III - THE ITURI LIVESTOCK PROJECT

A. Project Background and Objectives

3.01 The Ituri Livestock Project (Credit 697-ZR) was identified by anIDA mission in 1974 and prepared by the Department of Agriculture with thehelp of consultants and the Bank Resident Mission in Zaire (R1MZ). Theproject was appraised in September/October 1975.

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3.02 The principal objective of the project at appraisal was to developan overall livestock, mainly cattle, improvement program, through (a) therehabilitation of veterinary and animal production services; (b) theimprovement of marketing services, a stock route and rural slaughterfacilities; (c) the training of staff and farmers; (d) the rehabilitationand development of three existing ranches; (e) the improvement of existingabattoirs at Bunia and Kisangani; and (f) the provision of technicalassistance. The Ministry of Agriculture was to be responsible forcoordinating all project activities, while responsibility for managementand execution of the project was to be divided between the Ituri ProjectUnit (BPI, which was established for the purpose) for veterinary, animalproduction, marketing and rural slaughter services, and ONDE, the nationallivestock development authority, for the ranches and the abattoirs. TheIturi Credit was approved in June 1977, signed in August and becameeffective in December of the same year. The project was completed onDecember 31, 1982.

B. Prelimiinary Results

3.03 Although project activities lhave been beset by a number of seriousproblems, most of them have been overcome and the results obtained thus farhave been encouraging in many respects (paras 3.12-3.15). Given the longterm nature of the project and the lack of reliable data on animal healthand herd dynamics, the impact of project activities cannot be easilyquantified.

Project Implementation

3.04 Start-up of project implementation was delayed by difficulties ingetting the technical assistance team well established after their arrivalin the project area, Subsequently, the execution of the traditionallivestock component was hampered by late delivery of veterinary productsand further disrupted by the unanticipated departures of the projectmanager and the animal health manager in the second project year.Implementation of other components has faced many problems: (a) therehabilitation of the Ngabu training center, a key element for projectexecution, was delayed due to lack of a clear definition of therelationship between the Zairian Government, one co-financier and BPI; (b)the Bunia and Kisangani abattoirs were not rehabilitated due in part topolicy disagreements between another co-financier and the ZairianGovernment; (c) ONDE has never taken possession of the ranches andconsequently has not developed them because of the lack of a clearlydefined and equitable asset transfer mechanism between ONDE and the currentowner of the ranches; and (d) BPI has been consistently faced withcash-flow problems because of the Government's inability to providecounterpart funds on a timely basis. As seen in para 3.05 - 3.14 below,an effective project management team and a number of innovations havecontributed to a satisfactory performance despite these problems.Implementation of individual components is summarized below.

3.05 Veterinary activities. Construction and rehabilitation of dips,dispensaries, houses, and stores have been affected by the delay in startof project implementation difficulties (para 3.04) resulting from theremoteness of the project area and the lack of reliable local constructionfirms. It is expected, however, that about 80% of the dips, 43% of thedispensaries and 28% of the rural slaughter houses planned for at appraisalwill be operational when the project is completed. Despite the problemsdescribed above (para 3.04), about 20% of the cattle population are dipped

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weekly as a result of the project, 87% are treated with anthelmintics twicea year, 73% are vaccinated against blackleg and 33% against brucellosis.Further, mineral licks are manufactured by BPI and are sold to producers asmineral supplements for cattle.

3.06 Animal production. Although pasture improvement programs have metwith some resistance on the part of producers who failed to grasp the

benefits that were to be derived from them, a total of 98 seed gardens havebeen created, 64 of which are starting to function properly. BPI has setboundary stones for 64 communal pastures covering a total area of 27,000ha. These pastures are to be exploited by producers' cooperative societies(PRODELS, para 3.12) following technical guidelines developed by BPI.Concurrently, progressive producers, religious missions and the miningcompany (para 2.28) have received assistance and guidance from BPI in themanagement of their herds. About 36,000 cattle (about 55% of the males)have been castrated since the project started and limited geneticimprovement has been attempted through the import of brown swiss bulls andthe purchase of other selected breeds from the INERA station at NIOKA(about 14 steers and 43 heifers). These cattle are stationed in the threeACOOPELI stations (para 5.16) and producers are encouraged to visit them.Some producers have already purchased bulls while others have crossed theirheifers with the selected breeds at the stations.

3.07 Marketing services. A total of 18 rural markets, 13 of them inthe southern sector because of the proximity of Bunia, are now activecompared to the nine planned at appraisal. Only Il of the planned 40 ruralslaughter houses have been completed. A disappointment concerningmarketing activities has been the long delay in the rehabilitation of theBunia abattoir (para 3.04).

3.08 Training activities were initially delayed due to problems ofcoordination between some co-financiers and the Zairian Government (para3.04). However, this difficulty was successfully circumvented by projectmanagement through the development of a flexible and responsive trainingscheme. This scheme involves a series of field seminars involving bothproject staff and livestock producers and has the following specialfeatures: (a) the seminars are taught by the project staff fromheadquarters and the sectors, thus allowing a useful exchange of ideas andof experiences between producers and project staff; (b) those attendingthe seminars, usually the presidents, treasurers and ordinary members ofthe livestock producers' cooperative societies (para. 5.17) in addition toextension workers, have proved a useful link with the remaining producers.They have played a key role in the dissemination of information to theircolleagues; and (c) seminars are supplemented by the publication of the"Memento de l'Eleveur de l'Ituri", a well conceived training documentwritten in a local language, and by radio broadcasts and the distributionof educational pamphlets. About 50 hours of radio broadcasts in locallanguages are now made per year, while 6,000 short pamphlet copies areedited and distributed each month.

3.09 Organization and Management. The entire expatriate technicalassistance team has been maintained throughout the project implementationperiod. Most key posts for Zairian nationals have been filled most of the

time and the performance has been adequate except in a few instances.Performance of the expatriate technical assistance team has been remarkabledespite the difficult working conditions prevailing in the project area.

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C. Project Impact

3.10 Due to the general lack of data on the impact of projectactivities and more specifically on the incidence of diseases both beforeand after the introduction of animal health activities, it is difficult toassess the impact of project activities. The proposed North East RuralDevelopment Project includes a study component to address this shortcoming(para 4.09).

3.11 Although it is difficult to measure the impact of anthelmintic(deworming) treatments, some indication will be obtained at meat inspectionwhen the Bunia abattoir has been rehabilitated. Benefits of the vaccina-tion program against blackleg would appear to be positive because of theacceptance for the continued need of the program by producers who seem wellacquainted with the ravages of this endemic disease. The impact of thebrucellosis vaccination program will have to await maturity of vaccinatedcows to determine their levels of abortion following vaccination.

3.12 Probably the single most important achievement of the projectis the creation in 1979 of the Ituri Livestock Producers CooperativeSocieties Union (ACOOPELI (para. 5.16)). There are now 117 societies(PRODELS) with a total membership of close to 90% of all livestockproducers. ACOOPELI and the PRODELS are essential as active intermediariesbetween the BPI and the producers. The PRODELS are responsible formanaging dip and purchasing veterinary products from BPI and selling themat cost to the producers with the exception of acaricides which are still60% subsidized. Although initially dependent on BPI both financially andfor management support, ACOOPELI is gradually becoming self-sufficient. Itnow has its own paid personnel, has acquired its own offices and has itsown separate accounts. Its main sources of funds are membership fees fromthe PRODELS and the sale of veterinary and other products.

3.13 Another major achievement of the project is the setting up oflivestock experimental stations. BPI has renovated three stations and putthem at the disposal of ACOOPELI. It has also attributed four stations toprogressive producers to serve as pilot or demonstration stations to teachimproved breeding techniques. The three ACOOPELI stations are also usedfor demonstration purposes and will be partially exploited as seedproduction farms under the proposetd Project (para. 6.04).

3.14 Problems of competition for the same land by agriculturalists andpastoralists led BPI to create a land management section whose mainfunction is to delimit pasture grounds and set up boundary stones (para3.06). That section is now recognized by local administrative authoritieson whose behalf it is acting.

3.15 In conclusion, preliminary results of project activities to dateindicate that although their impact cannot be readily estimated, theproject has played a vital role in changing producers' mentalities, therebylaying the groundwork for future actions. It it important to emphasizethat activities to date represent only the start of a long-term program andthat unless they are sustained, many benefits will not materialize andgains to date, particularly in the vital area of institution building, willbe lost. The major lessons learned are that : (a) producers can be moreeffectively reached if they are organized at the grassroots level; (b) aneffective data gathering system must be instituted not only to monitorimplementation activities but alsc, to assess their impact in the project

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area and to aid in the design of future programs, (c) a clear definition ofrelationships between the external financing agencies and the ZairianGovernment is indispensable to effective project implementation, (d) anadequate price policy is important if producers are to be motivated, (e) aminimum level of marketing infrastructure is indispensable for propermarketing of meat and foodcrops; and (f) an effective training program isessential. These lessons have been taken into account in the design of theNorth East Rural Development Project through (a) the continuing importantrole of, and assistance given to ACOOPELI (para 5.21); (b) the design of astudy and data gathering component (para 4.09); (c) measures to help theGovernment better address the important pricing issue under the agricul-tural technical assistance project and as part of the Action Plan (paras1.04, 1.46 and 6.10); (d) measures taken regarding marketing infrastructure(paras 5.21 and 6.10); and (e) the continuation of the current successfultraining scheme (para 3.08).

IV - THE PROJECT

A - Objectives and General Description

4.01 The Project would be a continuation of the Ituri Livestock Projectwhich was conceived as part of a long-term development program for thesub-region. This second phase takes into account the fact that livestockproducers represent less than 10% of the farming families in Ituri and thatit is therefore necessary to devote increasing attention to foodcropproduction. It also recognizes that attainment of long-term developmentobjectives will depend to a great extent on the building of strong ruralinstitutions such as ACOOPELI to provide effective services to farmers.Accordingly, its main objectives would be (a) to increase livestock andfoodcrop production, thereby increasing smallholders' incomes; (b) tostrengthen rural development institutions; and (c) to support theGovernment's efforts to elaborate more adequate agricultural policies. TheProject would thus continue to provide support to livestock producers andespecially to strengthen their cooperative movement (para. 5.16). It wouldalso include new development activities in support of cropping. Since mostrural dwellers are small farmers, continued emphasis on livestock activi-ties alone would alienate livestock producers from other farmers and creategreater income disparities between these two groups (para 2.04 - 2.05).The Project is an important element of the Government's agriculturalstrategy (para 1.48) whose priority objective is to make Zaire self-sufficient in foodcrops by increasing production.

4.02 Construction of new dips would not start until completion of thetwo-year preliminary study (para 4.09). To allow for the properimplementation of the delayed activities the Project would be implementedover a seven-year period and would include the following components:

(a) A program for the rehabilitation of veterinaryand animal production services and infra-structure and for the provision of veterinaryproducts;

(b) A program to provide extension services andagricultural inputs to develop production offoodcrops and smallholder coffee;

(c) Human health services;

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(d) A basic data study on the major livestockdiseases and agricultural activities, to set upa program to monitor and evaluate the impact ofproject activities,

(e) Other studies, training, pilot activities andtrials, including limlited assistance tofisheries and marketing;

(f) Selective maintenanceb and rehabilitation ofinfrastructure such als roads and bridges; and

(g) Technical assistance to the Project managementunit (BPI) and to ACOOPELI

4.03 The existing Ituri Project Unit, BPI (para 5.01) would haveprincipal responsibility for project implementation under the generalsupervision of the Ministry of Agriculture and Rural Development(Chapter V).

B. Detailed Features

Veterinary and Animal Production Services and Infrastructure

4.04 The objective of this component is to reduce cattle mortality,increase birth rates, the average cattle weights and cows' lactation. TheProject would provide a tick control program, inoculations, veterinarytreatments, clinical and animal production advisory services throughout theProject area. Animal health improvement activities would be carried outas under the Ituri project except for the construction of new dips whichwould not be undertaken until the result of the basic data study is known(paras 4.09 - 4.13).

4.05 Animal Health. The Animal Health program would consist of: (a)treatment of cattle with polyvalent anthelmintics twice a year. Since 87%of cattle is currently treated, thle objective at full development (year 7)would be to reach more than 90% of the cattle in Ituri; (b) annual vaccina-tions against blackleg. About 73% of cattle are reported to have beenvaccinated in the last year of the Ituri project as farmers gained a goodknowledge of the effects of blackleg on cattle vaccination; (c) twice ayear brucellosis vaccination of cows aged 12-24 months and one vaccinationthe following year. The objective would be to cover 80% of the femalepopulation by year 7, up from about 33% currently; and (d) treatment ofcattle with trypanocides in tse-tse infested areas. During the first twoProject years, no new dips would be constructed except those planned underthe study (para 4.09) but existing dips would continue to functionnormally. Upon completion of the basic data study, the program to controltick and tickborne diseases would be revised based on the study results.Investment items for animal health activities would be infrastructure suchas dips (if necessary), spray races, spray pumps, dispensaries, offices,housing and stores, veterinary products, vehicles for veterinary personnel,simple laboratory equipment, tools and some operating costs. To ensurethat no dips are built outside of the context of the basic data study andthe recommendations that will result from it, special care will be taken inreviewing the annual work programs (paras 5.12 - 5.14) not to approveunwarranted provisions for the construction of dips.

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4.06 Animal production. Animal production activities would seek todevelop better natural and collective pastures to improve grazingmanagement and cattle husbandry practices. The poor state of pastureshas contributed to low or no cattle weight gains, poor health to someextent and could lead to overgrazing in the central sector in the future(para 2.03). A major extension effort would be made through radiobroadcasts, pamphlets and regular extension work to convince producersof the necessary link between weight gains, lactation, animal health andproper cattle feeding. The land management section (para 3.14) wouldcontinue to set boundaries and the PRODELS would play a key role in themanagement of collective pastures. Primary attention would be given to theintroduction of grazing rotations, eradication of bush and poor grassspecies, reseeding fallow land with setaria and introduction of legumes,particularly stylosanthes. ACOOPELI's three stations would be used toproduce the required seeds (para 5.06). The impact of all the pastureimprovement efforts would be closely monitored. In addition, herd improve-ment measures would be undertaken and include: selection of breedingstock,castration, cow culling, and supplemental feeding of minerals. On apilot basis, a closely monitored genetic improvement program would also beundertaken. Improved breeding bulls would be kept at ACOOPELI's threestations which would also be used for demonstration purposes. As under theongoing project, the development and supervision of rural markets andslaughterhouses would also be done by animal production personnel. Themain investment items would include vehicles, buildings and otherinfrastructure, fencing materials, equipment, and some incrementaloperating costs.

Crop Development

4.07 The crop development component would seek to increase foodproduction and to improve management of existing smallholders' coffeeholdings which are rundown (para 2.08). Given the high prices of inputssuch as fertilizers, the serious problems that their procurement would posedue to the remoteness of the project area and the lack of basic tools andimproved planting materials, this would be done through provision of basic

tools and production and distribution of selected seeds of the mainfoodcrops. Projects based on improvement ot planting materials alone inother countries have shown that substantial yield increases can be obtainedby the introduction of selected seeds without fertilizer use.Simultaneously, farming systems trials would be carried out. Their purposewould be to explore ways of maintaining or improving soil fertility throughadequate crop rotations and the introduction of soil regenerating crops.The major foodcrops involved would be maize, beans, groundauts, sweetpotatoes, paddy and millet. Seeds would be produced at two of the thethree ACOOPELI livestock stations using animal traction and hired labor.The major investment items would be tools such as hoes, matchettes andpruning saws, equipment, buildings, vehicles, limited seed processingequipment, materials, supplies, and some incremental operating costs.

Human Health Services

4.08 To comply with local labor regulations, BPI has had to operate aninfirmary for the benefit of its employees. These human health activities

would be pursued on a limited basis under the proposed Project and wouldinclude both preventive and curative treatments mainly for malaria,parasites and bronchitis. Funds would be required for the import ofnecessary medicines and the procurement and operation of vehicles for fieldmissions to treat employees stationed in parts of the Project area.

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Basic Data Study, Monitoring & Evaluation

4.09 At present, no reliable data exist on crop production yields andareas cultivated, on livestock diseases and on the impact of projectactivities (para 3.10). For livestock activities, the methods of tick andtickborne disease control are undergoing considerable technological changesthat require a better knowledge of population dynamics and a more exactdiagnosis of tickborne diseases. The objectives of the basic data study inthe livestock sector would therefore be: (a) to determine the seasonaldistribution of the major tick species on cattle in each project sectorbefore and after introduction of clips; (b) to determine the incidence ofmajor tickborne diseases on cattle in each Project sector both before andafter introduction of dipping, (c) to determine the impact of dipping ontick numbers, on incidence of tickborne diseases and on cattleproductivity; (d) to make better use of existing data, (e) to collect dataon other livestock diseases; and (f) to provide local and overseas trainingfor Zairian personnel in tick identification, diagnosis of tickborne andother diseases and conduct of epidlemiological investigations.

4.10 The study would be conducted in three phases: the first phasewould last about six months and would involve overseas training ofpersonnel, purchase of equipment, renovation of cattle holding facilitiesin study areas if necessary and selection of study herds. Simultaneously,implementation of a recent study by a French consultancy team on a systemto determine herd population, structure and the basic production parameterswould be undertaken over the Project area. The second phase would be theimplementation of an epidemiological study over a two-year period. Onestudy site would be selected in each project sector. This site would be inthe ecological zone and involve the ethnic group in that sector which aremost closely associated with catt]e production. In each site, three cattleherds of about 10, 50 and 100 heacd each would be selected. None of thesecattle would be exposed to any acaricides during the first year of thesecond phase. They would also not be exposed to any drugs having anyeffect on the tickborne diseases considered. Compensation would beprovided to owners who lose their cattle as a result of the study. At thebeginning of the second year of phase II, a dip would be constructed ateach site and all cattle in the selected herds dipped weekly. All otherroutine vaccinations and treatments performed by the Project would beadministered to the study herds whose cattle would be examined at monthlyintervals for evidence of tickborne infections. Whole-body tick countswould be carried out on 2 cattle from the smallest herds and 10% of thecattle from the larger herds, the same cattle being examined each timeafter being eartagged. Information on morbidity and mortality would becollected on pre-determined forms for each sick animal and post-mortemsperformed on animals that die.

4.11 In addition to collectingr data on normal production parameterssuch as calving and mortality rates, the on-going productivity of everyanimal in each study herd would be monitored by weighing each one atmonthly intervals. Data on weekly milk yield on all cows would also becollected. All smears, disease and other data would be regularly forwardedto Project headquarters for collation. The third phase of the study wouldcomprise a detailed analysis of these data, the quantification of thebenefits of the results obtained and the formulation of future policy ondisease control in Ituri and livestock development in general from thesound data base established. This last phase would take approximately twomonths and would be done by short--term consultants (para 4.17).

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4.12 For agricultural activities, the first priority would be to

establish a sounder set of agricultural statistics. This would be followed

by the development of a simple system for reporting key indicators to

monitor implementation of project activities and their impact on farmers.

A base line survey to determine the scope and level of agricultural

activities would be carried out at the start of Project activities based ona limited sample of farmers. Subsequently, periodic surveys would be

undertaken to compile key agricultural indicators including areas

cultivated, quantities and costs of inputs supplied and utilized, andyields obtained for major crops.

4.13 The organization of the study component is described in paragraph5.08. The major investment items would include two four-wheel drive

vehicles, high-resolution binocular microscopes and other supplies such as

bottles, chemical products, minor laboratory equipment, tools and materialsfor construction or renovation of cattle holding facilities, and

incremental operating costs.

Other Studies, Pilot Activities, Trials and Training

4.14 Studies, Pilot activities and trials. In addition to the basicdata study (para 4.09), funds for preparation of future rural developmentprojects or programs and for other studies and trials such as pedological

studies, investigations on farming systems (i.e. size of plots, culturalmethods, crops cultivated, introduction of legumes and foodcrops storageand marketing), soil erosion and population pressure on land have also been

included in Project costs. Because of the importance of fishing activitieson Lake Mobutu (para 2.21) limited funds have been made available for the

purchase of fishing gear to be sold by ACOOPELI to fishermen (para 5.21).

A pilot credit scheme would also be undertaken (para 5.09). For allstudies or project preparation work, both terms of reference and proposed

contracts should be submitted to IDA for approval. IDA should also approve

procedures for the selection of consultants to carry out such studies.Agreement was obtained on this at negotiations.

4.15 Training. The objectives of the training program would be toimprove performance of the Project staff. Training would first be provided

as part of the basic data study (para 4.09). Additional training would be

provided to other Project, ACOOPELI and PRODEL staff botli on the job, inZaire and overseas as appropriate. The types of local training providedwould include: (a) initial orientation at induction of new staff, (b)

phased basic training for existing staff in skills required for newtechnology or procedures; and (c) refresher training and in-service

training for existing staff. Training in other countries would be provided

through about 12 fellowships and study tours. A total of about 50 middleand higher level Zairian staff would benefit from the training program.

Training would continue to be provided to farmers and liîvestock producers

under the current scheme of field seminars (para 3.08) held simultaneouslyfor veterinary agents and livestock producers. The main investment items

would be for materials and scholarships.

Selective Maintenance & Rehabilitation of Infrastructure

4.16 The deteriorated state of roads and, in some instances, bridges isa serious impediment to development activities in the Project area (para

2.24). The Proposed project would not seek to address this problem in a

massive way as it would not have the resources or the expertise to do so.

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The infrastructure improvement component would seek to facilitate access todips or PRODEL warehouses for easier delivery of products by maintainingabout 100 kms per year of frequent:ly used access roads and about 20bridges. The main investment items would be vehicles small tools,equipment and operating costs.

Technical Assistance

4.17 Under the ongoing project, the French Ministry of Cooperation(FAC) is providing a team of eight experts that includes the projectmanager, the accounting and finance manager, the animal production manager,the animal health services manager; the extension and training manager, t'econstruction manager, the chiet mechanics and a nurse. Although a limirednumber of Zairian higher level staff employed by BPI have performedadequately, it would be necessary to continue to provide a team ofinternationally recruited experts for a period during implementation of theproposed project. Consequently, FAC would continue to provide staff forthe posts listed above. In addition, they would also provide anagriculturalist to manage the agricultural program (para 5.07). Because ofthe importance of the Bunia abattoir for meat marketing (para 2.23) and theincreasingly important role that ACOOPELI will play (para 5.21), CIDA willprovide the following experts to support it. a management expert to helpmanage the abattoir, a cooperative development expert who would also managethe pilot credit scheme (para 5.09) and a cooperative management expert. Atick specialist financed by IDA would also be hired for two years to managethe basic data study (para 4.09) and other consultants recruited forstudies, to analyze the survey results and formulate an appropriate diseasecontrol program. The average man-month cost of the specialists would varyfrom US$6,000 to about US$10,000 (including salaries, overhead costs, tees,international travel and subsistence). IDA would be consulted for therecruitment of all outside specialists. The qualifications, terms andconditions of employment of consultants financed under the IDA Credit,including the tick specialist, would be submitted to IDA for approval.Agreement was obtained on this at negotiations. Training responsibilitieswould be an important part of their responsibilities. All consultantswould be gradually replaced by their Zairian colleagues subject to theirsatisfactory performance.

C. Project Costs

4.18 Total Project costs are estimated at about US $30.2 million, ofwhich about US $22.9 million or 75.8% represent foreign exchange costs.Details are summarized below:

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PROJECT COST SUMMARY

(US$ Million) % of--------------------- Foreign % of Total

Local Foreign Total Exchange Base Costs

A. Livestock Development

Animal Health 1.6 2.7 4.3 63.4 19.2Other Livestock Dev. 0.4 2.0 2.5 82.8 11.1Subtotal Livestock Dev. 2.0 4.8 6.7 70.5 30.3

B. Agricultural Development 1.3 5.1 6.4 79.9 28.9C. Human Health 0.1 0.7 0.8 82.3 3.8

D. Pilot Activities, Research

Studies, Training 0.3 0.7 1.0 72.6 4.3E. Central Project Manage-

ment and Support

Services 1.6 5.7 7.3 77.5 32.8Total BASELINE COSTS 5.3 17.0 22.3 76.0 100.0Physical Contingencies 0.5 1.7 2.2 76.0 10.0Price Contingencies 1.5 4.2 5.7 72.9 25.6

TOTAL PROJECT COSTS 7.3 22.9 30.2 75.8 135.6

The above costs are incremental and do not include salaries for the

existing work force or recurrent expenditures to run existing veterinary

infrastructure. They do include, however, BPI headquarter costs which

comprise equipment and vehicle maintenance and operating costs, utility andbuilding maintenance costs and staff salaries. Project costs were

estimated on the basis of prices expected to prevail in January 1983. A

physical contingency of 10% was applied to all Project costs to reflect

general uncertainty about the detailed scope of Project investments. Thisrate is based on the knowledge gained on local conditions under the Ituri

project. Price contingencies were calculated on a cumulative basis at arate of 8% for 1983, 7.5% in 1984, 7.0% in 1985, 6.0% in 1986 andthereafter according to guidelines for international prices. It is felt

that any inflation above that level would be substantially offset by the

devaluation that would follow. Taxes and duties included in Project costsare negligible since virtually all items would be exempt from taxes and

duties. Project cost details are given in Table 1.

D. Financing

4.19 Financing of Project costs would be shared as follows:

US$ million %

Government of Zaire 3.2 il

CIDA 10.0 33FAC 3.0 10ACOOPELI 1.0 3IDA 13.0 43

Total Project Costs 30.2 100

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4.20 The proposed IDA credit would be effective only when financing

agreements on this Project have been signed with CIDA and FAC, and the

Governnent has satisfied the conditions of all these agreements. In the

case of suspension of CIDA or FAC financing, IDA would retain the right to

suspend the right of the Borrower t:o make withdrawals from the Credit. The

proposed IDA credit of SDR 12.3 million (US$13.0 million) would be made tothe Government of Zaire on standard IDA terms. It would finance about 43%

of total Project costs and cover 100% of foreign exchange and 90% of local

expenditures for the following components: livestock and crop development,human health; pilot activities; research and training; and BPI operating

costs. Local cost financing is justified by the Goverament's difficult

budgetary situation. CIDA would provide about US$10 million to finance allforeign exchange and 90% of local expenditures for technical assistance to

ACOOPELI, veterinary products and supplies, marketing studies, equipment,

vehicles and some agricultural tools on a grant basis. FAC would provide

an estimated US$3.0 million as a grant in the form of technical assistance

to BPI. The Goverament of Zaire would contribute US$3.25 million and

ACOOPELI US$1.05 million towards local costs. The Government has requesteda US$ 0.8 million PPF to start preparing the basic data study (para 4.09).

Agreement was obtained at negotiations that the Government would make its

contribution to BPI in a timely fashion in four quarterly installments to

be made available to BPI no later t:han the last day of the first month of

each quarter.

E. Procurement

4.21 For the acquisition of materials and supplies (US$5.4 millionincluding contingencies), vehicles, equipment and machinery (US$5.2 million

including contingencies), individual contracts of less than US$300,000 and

not exceeding US$1,500,000 in the aggregate would be awarded following

local competitive bidding accordingr to Government procedures which were

examined at appraisal and found satisfactory. Under Government procedures,

bids are requested from local firms in the local newspapers by the

technical ministry directly concerned. Bidding documents are generally

comprehensive and include clear instructions to tenderers, form of tender,conditions of contract, technical specifications, etc. Once bids are

received they are opened and evaluated by a committee chaired by a high

level official of the technical ministry and consisting of representatives

from key ministries such as finance, planning and economic affairs and

awards are made on the basis of agreed criteria. Individual contracts

exceeding US$300,000 (including contingencies) would be subject to

international competitive bidding in accordance with IDA guidelines.

Orders would be bulked whenever possible.

4.22 Civil Works. Civil work constructions (US$1.8 million including

contingencies), due to their dispersed locations and the difficult working

conditions in the Project area, especially for firms with no experience in

Zaire, would be carried out by local tender or by a negotiated civil works

contract if only one contractor is interested as was the case under the

Ituri Livestock Project. They would be carried out by force account if no

satisfactory contractor is availab]e . Procurement of veterinary drugs and

equipment (US$1.4 million includingr contingencies) would be done followinginternational competitive bidding procedures acceptable to IDA. Because of

the risk of the emergence of disease resistance to some of the drugs,

consideration will be given in awar-ding the contract to the capacity of the

prospective supplier to manufacture a range of products and to provide back

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up laboratory services for checking disease resistance to drugs on asystematic basis. Agreement was obtained at negotiations that the aboveprocurement procedures would be followed.

F. Disbursements

4.23 Funds from the IDA credit would be disbursed over eight years onthe following basis:

Category US$ million1. Civil Works 100% of foreign ) To be allo-2. Equipment and 90% of local ) cated to3. Materials & Supplies expenditures ) categories

and other operating costs on the basis(fuel and spares) of annual

work pro-4. Technical Assistance and - ditto - ) grams

training )

5. Studies, Pilot activities, trials - ditto - )

TOTAL IDA CREDIT 13.0of which reimbursement of advance under PPF .8

Disbursements would be subject to the approval of an annual work program(para 5.12), with due consideration to the conclusions of the basic datastudy on the advisability of dip construction (para 4.05). Disbursementsagainst all categories would be fully documented, except that disbursementsagainst civil works in category 1, if carried out by force account andagainst category 3 would be against statements of expenditures certified byBPI manager and the accounting and finance manager for local expendituresand against full documentation for foreign expenditures. A fulldocumentation would be retained by BPI and made available to IDA forinspection in the course of noraal Project supervision mission. Thisarrangement has been satisfactory under the Ituri Livestock project. Asestimated schedule of disbursements is given in Table 2, based on start ofProject implementation in January 1983. The disbursement profile foragricultural projects has averaged about 8 years for the Eastern Africaregion for 114 projects covering the 1970-80 period and slightly over eightyears for Zaire. Under the first Ituri Livestock project and despite aninitial project implementation delay of two years, disbursements areexpected to be completed over 6.5 years as planned. Consequently, adisbursement period of 8.0 years has been scheduled taking into account aseven year implementation period.

G. Accounts and Auditing

4.24 BPI would maintain records and accounts adequate to explain allProject activities. These accounts and the statements of expenditureswould be audited separately by independent auditors acceptable to IDA andwould be submitted to the Association within six months of the end of thefiscal year. The auditors would specifically review and comment on theprocedures used for control of disbursement against statements ofexpenditures. Agreement was obtained on all the above at negotiations.Accounts of the Ituri Livestock Project were regularly audited byinternationally recruited auditors in a satisfactory fashion and it is

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expected that accounts for 1982, the last year of project implementation,will be audited by June 30, 1983.

H. Environmental Impact

4.25 The proposed Project is not expected to have any adverse impact onthe environment. However, due to land pressure in some parts of theProject area and to the consequent signs of land deterioration, funds areincluded for a study of soil deterioration and farming systems to find waysof alleviating land pressure and arresting over-exploitation of farm land(para 4.14). No overgrazing is expected as a result of the projectedincrease in cattle herd size mainly because projected increases in herdsize as a result of the Project are modest (para 7.03), the current lowlevels of stocking rates (para 2.03), and foreseen improvements in pasturemanagement.

V - ORGANIZATION AND MANAGEMENT

A. Organization and Staff

5.01 The on-going Ituri Livestock project is carried out under thegeneral responsibility of the State Secretary for Agriculture who presidesover a project policy and coordinating committee which meets at least oncea year. This Committee includes the following members: the director oflivestock, the manager and deputy manager of the project, the directorgeneral of ONDE, and representatives from the Ministries of Finance,National Economy, Interior, Ituri Livestock producers and the Secretariatfor Rural Development. A sub-regional consultative committee chaired bythe sub-regional commissioner and consisting of representatives of thesub-regional administrative services is responsible for following up onproject implementation, transmitting its observations to central, nationalauthorities, and lending its support to BPI as appropriate, throughadministrative measures. It is convened twice a year and has helped BPIsolve a number of difficult problemis. The Project itself is managed by theIturi project unit (BPI) which is headquartered in Bunia. BPI is part ofthe Ministry of Agriculture and Rural Development but enjoys a considerabledegree of administrative and management autonomy and is headed by anexpatriate manager seconded by a Zairan deputy manager. The managerreports directly to the director of livestock. BPI consists of anadministration and finance department and the following five technicaldepartments: animal health, animal production, extension and training,construction, and mechanical. In addition, there is an infirmary. Allthese departments are currently headed by expatriates with one or twoZairan deputies each for the most part. BPI currently provides technicalassistance to ACOOPELI in the management of its livestock stations, itsstocks of veterinary products and their distribution, in the management ofthe dips and in keeping its accounts in order.

5.02 Geographically, the Project area is divided into three sectors.At the head of each sector is a Zairan veterinarian or zootechnician.These Zairan staff are stationed at sector headquarters in Aru for thenorthern sector, Nioka for the central sector, and Bunia for the southernsector. They also act as deputies to the expatriate heads of departments.Sectors are further divided into two sections each, the sections themselvesbeing subdivided into "groupements" (27 in total) which are broken downinto dispensaries (108 in total). "Groupements" are headed by veterinaryassistants and dispensaries by "infirmiers veterinaires" (veterinaryagents). A Project liaison office in Kinshasa is responsible for mostprocurement and logistics matters.

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5.03 The proposed Project would be organized and managed just like theon-going project as described above (paras. 5.01-5.02). The onlysignificant change would be the addition of an agricultural departmentwhich would also be headed by an internationally recruited specialist andthe membership of ACOOPELI to the sub-regional consultative committee. BPIwill occupy its present offices and the Governnent would be requested toprovide evidence at negotiations that it has taken steps to secure theseoffices for BPI for the duration of Project implementation. The proposedoverall organizational chart is given in Chart 2. Assurances would besought at negotiations that internationally recruited experts (para 4.17)would be maintained in their posts as appropriate during implementation andthat competent Zairan staff would be maintained in the following key postswhen necessary during Project implementation: deputy project manager;deputy animal health manager; deputy animal production manager, deputyaccounting and finance manager; deputy extension and training manager,deputy construction manager, deputy chief mechanic, assistant to the nurse,and deputy agricultural services manager. Subject to satisfactoryperformance, these national staff members would be called upon to replacethe expatriates at the earliest possible date. Agreement was obtainedon all the above at negotiations. Staffing plans and status would be partof annual work plans and reports to be submitted (paras 5.14 - 5.15). BPIwould establish a compensation plan to offer adequate incentives to itsstaff, as now done under the Ituri Livestock project. Agreement wasobtained on this at negotiations.

B. Management of Project Components

Veterinary and Animal Production Services and Infrastructure

5.04 Veterinary Activities: Veterinary activities would continue tobe managed as under the first Ituri project by the animal healthdepartment. As such, it would be responsible for (a) all activitiespertaining to animal health control, cattle movements both within theproject area and between this area and outside regions and meat inspectionin the project area; (b) the organization and supervision of allvaccination campaigns (para. 4.05); (c) the organization and supervision ofall tick and tickborne disease control activities; (d) the organization anddistribution of veterinary products to ACOOPELI and the PRODELS or tolivestock producers as appropriate and depending on the managementcapability of specific PRODELS; (e) the organization of cattle treatmentwith anthelmintics twice a year; (f) the management of the veterinaryproduct warehouse following the guidelines of the administrative andfinance department; (g) the management of permanent monitoring andevaluation of animal basic data study; training of its personnel andlivestock producers in close coordination with the training and extensionservices; (i) follow up of all veterinary product procurement matters; and(j) provision of assistance to the PRODELS in dip management asappropriate.

5.05 Animal Production. As under the Ituri project the principalresponsibilities of the animal production department will be the following:(a) grassland improvement through the production and introduction oflegumes and better grass species to livestock producers; (b) production anddistribution of mineral supplement licks; (c) organization, management andsupervision of cattle markets. It will also keep marketing statistics anddetermine the desirability of opening new markets; (d) provision oftechnical assistance to ACOOPELI (para. 5.18) in the management of itslivestock stations, (e) all genetic improvement activities; (f) management

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of the land section and the attribution of livestock stations to selectedproducers; (g) liaison with the agricultural department of BPI forintroduction of animal traction; (h) management of its own resources; and(i) training of its own staff in coordination with the training andextension department.

Crop Development

5.06 The crop development program would be the main responsibility ofthe new agricultural department within BPI. Its main tasks would be (a) toorganize and implement seed production; (b) to work closely with BPI's

extension and training department in developing appropriate extensionthemes to be transmitted to farmers through the audio-visual system already

in place (para. 3.08); (c) to design and follow implementation of trials onfarmers' fields; (d) to work closely with third parties such as BAT (para.2.08) in supervising their agricultural program; and (e) to supervisecoffee pruning and the production of coffee seedlings to replace losttrees. Under the Project, tools would be distributed by ACOOPELI throughits PRODELS (para. 5.17) which would provide a dense and well establishednetwork not only for cattle growers but also for farmers. Tobacco growerswould continue to receive their tools through BAT. An agreementsatisfactory to IDA would be signed between BPI and BAT defining the termsof their cooperation and indicating the items financed under the Project tobe made available to BAT for the farmers. Agreement was obtained on thatat negotiations. Because of its close association with farmers and the

good quality of its extension work force, BAT would be used to monitor theeffect of tools and inputs (fertilizers), on foodcrops used in rotationwith tobacco. Food crop seeds would be produced and processed on two ofthe three ACOOPELI livestock stations starting in year two for the first

station near Bunia and year three for the other station. They would alsobe distributed through the PRODELs. The expert in charge of theagricultural program would be assisted by one agronomist in each livestockstation responsible for seed production; one agronomist in charge of fieldtrials, one agronomist in charge of extension and monitoring and evaluationand one agronomist in charge of coffee development and necessary lowerlevel personnel.

Human Health Services

5.07 Human health services would continue to be managed by aninternationally recruited nurse assisted by a Zairian nurse as under the

Ituri project. The infirmary at Bunia would care for BPI employees, managethe stock of medicine and ensure that patients are promptly evacuated to

the nearby Nyakunde missionary hospital as appropriate. In addition, fieldtrips wold be undertaken to assist BPI field personnel and their familieson a periodic basis.

The Basic Data Study

5.08 The study will be managed under the overall supervision of theProject manager, but for livestock disease direct responsibility will liewith an expatriate veterinarian recruited for that purpose (para 4.17). He

will work closely with the animal health manager, initially supervise thestudy during the first two years and provide on-the-job training toZairans. He will need to be fluent in French and to possess experience of

tickborne diseases and tick control, preferably in Africa. He will workwith one Zairian Veterinarian as his counterpart; three "infirmiers", one

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per sector to monitor disease morbidity and mortality in tihe study herd andto conduct post-mortem examination of all cattle dying in the study herds;two veterinary assistants to collect blood and lymph node smears from thecattle studies; two other assistants to conduct whole-body tick counts onselected cattle; and one driver to transport the mobile investigating teamcomprised of the four assistants mentioned above. Management ofagricultural statistics would be the responsibility of the internationallyrecruited agriculturalist. A limited core group of about four surveyorswould be recruited and trained to conduct the base line survey (para.4.12), to participate in subsequent periodic surveys and monitor andcompile basic agricultural statistics. About 75 to 100 farm families wouldbe surveyed annually.

Other Studies, Pilot Activities and Trials

5.09 Studies could be carried out either by BPI staff when they havethe time and expertise to do so or by outside consultants whosequalifications, terms and conditions of employment would be satisfactory toIDA. Pilot activities and trials would be managed by the respective BPIdepartments that are directly concerned or by ACOOPELI in the case ofmarketing. The credit program would be preceded by a study of credit needsin Ituri and managed by credit specialistsfinanced by CIDA (para 4.17). Adetailed pilot credit plan would then be elaborated and submitted as partof the annual work plan (para 5.13). BPI would open a special bank accouatto deposit all proceeds from the sale of products to ACOOPELI (para 5.21).Credit applications under this scheme would be reviewed by the creditcommittee (para 5.21) in accordance with criteria acceptable to IDA.Disbursement of funds from that account under the credit program would besubject to IDA's and CIDA's approval. Agreement was obtained on the aboveat negotiations.

Training

5.10 Training activities would be be linked with extension work. Assuch the training and extension department would work very closely with theother technical departments. Its basic responsibilities would be thefollowing: (a) development of a main extension theme each month onlivestock and agricultural activities based on technical information andspecifications provided by the heads of other technical departmentsincluding agriculture. These themes would then be transmitted to livestockproducers, farmers and BPI agents through radio broadcasts and technical,simple and illustrated pamphlets as was done under the first Ituriproject. The program would be reinforced through regular meetings betweenpersonnel and the producers; (b) organization of seminars for both BPIagents and producers. There would be two seminars per month for about 100participants each. These seminars would be based on specifically designedteaching materials and would be held mainly in the field and, lessfrequently, at either of the two training centers of Totoba and Ngabu; (c)production and diffusion on a regular basis of and training materials; (d)various small-scale studies such as the impact of the broadcasts on theproducers; and (e) liaison with local technical school and administrativeauthorities to inform them of Project activities and seek their support.Most of these activities would continue successful efforts which were wellmanaged under the first Ituri Livestock project. Training would also beprovided to ACOOPELI staff.

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Selective Maintenance and Rehabilitation of Infrastructure - VehiclesMaintenance

5.11 Selective road maintenances and rehabilitation as well as otherinfrastructure construction would be the responsibility of the constructiondepartment of BPI and vehicles would be maintained by the mechanicaldepartment. Agreement was obtained at negotiations that the Governmentwould make available to BPI during project implementation and to ACOOPELIthereafter the funds, facilities, equipment and services necessary for roadmaintenance.

Annual Work Programs

5.12 The Project would be implemented on the basis of annual workprograms prepared by BPI with the participation of ACOOPELI. The programswould serve as a planning, implementation and monitoring tool and providethe necessary flexibility to ensure better Project adaptation to localconditions. Preparation of each program would coincide with thepreparation of the government-wide investment budget to reduce therisks of major discrepancies between the figures proposed in the programand official government budget allocations. Government Budget preparationstarts in April and the law requires that the budget be submitted toParliament in early October. Goverament ministries are requested toforward their budget proposals to the Ministry of Planning during the firsthalf of July. These proposals are reviewed by the Budgetary Sub-Committeeduring the rest of July and defended by individual ministries during themonth of August. A draft investment budget is then transmitted by theMinistry of Planning to the Executive Council in early September. TheCouncil examines it and requests the Budgetary Sub-Committee to incorporateits suggestions and amendments in the draft which, if necessary, isreviewed by an Arbitration Committee chaired by the Prime Minister beforebeing transmitted to the Parliament in October.

5.13 The same timetable would be used in preparing the annual workprogram in the following manner: the first draft work program would beprepared along with the first budget proposals in the first half of Julyand submitted to IDA for preliminary review and comments. Subsequently, anupdated draft would be prepared to reflect the suggestions and amendmentsof the Executive Council made in September and submitted to IDA by the endof October before the draft budget is transmitted to the Parliament. IDA'sapproval of this updated draft would be a condition of disbursement for theactivities to which the work program applies. Agreement was obtained onthis at negotiations. This process would ensure that IDA can provide itsinput in the early and final stages of the budget review.

5.14 Annual work programs have been consistently prepared by BPImanagement under the Ituri Project and their preparation has been madeaccording to the timetable for the government-wide budget preparationdescribed above. However, no modifications have been made to the intialprogram and budget proposed to reflect amendments made by the BudgetarySub-Committee, the Executive Council and the Parliament. The updating ofthe work program introduced above (para. 5.13) is meant to address thisproblem. The work programs submitted by BPI have generally consisted of

two parts: the first part is a presentation of a detailed investment andoperating budget for the year, considered by Project component and sectoralong with the proposed financing plan indicating the major sources offinancing; the second is a qualitative description of the activities to becarried out including a detailed description of the terms of reference of

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all BPI departments and ACOOPELI. The proposed Project's annual workprogram would build on the existing format and include the following: (a)a brief evaluation of the previous year's performance compared toobjectives and a discussion of how results obtained are related to the newprogram; (b) detailed investment and operating budgets as done now; (c) adescription of the program of activities, including quantified implementa-tion objectives, output performance and project impact indicators whereappropriate; (d) staffing and training plans with a statement of specificobjectives; (e) a financing plan; and (f) procurement plans. More detailson the contents of the work programs are given in Annex I.

5.15 Reporting and Mid-Term Review: The current BPI system ofsemi-annual reports would be maintained under the proposed Project wherebya comprehensive description of all project activities is provided alongwith an analysis of major problems encountered and requests for specificdecisions to be taken. These reports would also include a comparisonbetween actual implementation results and the objectives included in theannual work program, project impact indicators and a comparison betweenactual results and appraisal estimates. Explanations would be provided forthe differences. Thus the annual work programs and the semi-annual reportswould be an important aspect of Project monitoring and evaluationactivities. By the end of Year 4, BPI would prepare a mid-term report inpreparation for the mid-term review to be carried out at the end of theyear. BPI would prepare a Project Completion Report (PCR) no later thansix months after the closing date. Both the mid-term report and the PCRwould summarize Project performance, evaluate its successes and problemsand underline useful lessons to be taken into account in the future designand implementation of similar projects. Agreement was obtained on this atnegotiations.

C. ACOOPELI

5.16 Livestock producers in Ituri are organized into cooperativesocieties called PRODELS (Promotion et Defense de l'Elevage). In 1979,ACOOPELI (para 3.12), a cooperative union (Association des Eleveurs del'Ituri) was formed to represent all the PRODELS of the sub-region and isheadquartered in Bunia. ACOOPELI and the PRODELS are registered asnon-profit organizations. This section briefly reviews the structure andfunctioning of both the PRODELS and ACOOPELI, the role they have played inthe implementation of the first Ituri project and their responsibilitiesunder the proposed Project.

5.17 PRODELS. Ituri livestock producers are required by a June 1981decision of the sub-regional commissioner to be members of their localPRODEL, one per dispensary. PRODELS have as their main objectives: (a) toensure that livestock producers interests are well represented at alllevels within the sub-region; (b) to provide their memabers with livestockand veterinary products; (c) to maintain and manage the dips; and (d) todevelop and manage communal pastures. Each PRODEL has a general assemblywhich is responsible for the election of a board of directors of six for athree year mandate. Board members are a president, a vice-president, asecretary, a treasurer and two other members. Currently, there are 117PRODELS with the following geographical distribution: 40 in the southernsector, 47 in the central sector, 28 in the northern sector and two outsidethe Project area. Total membership is about 14,000 and it is expected thatmore PRODELS will be created. Members of PRODELS are required tocontribute to its equity by paying a membership fee of Z 0.50 (about

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US$0.10) per cattle head. Other sources of funds for PRODELS include thesale of veterinary products to their members with a small profit margin,Goverament grants and loans. Funds are used mainly to acquire products andto improve pastures.

5.18 ACOOPELI. ACOOPELI was created in February 1979 as the union ofPRODELS at the sub-regional level and granted official status as anon-profit organization. Its general assembly is made up of the presidentsof PRODELS, meets once a year, and elects the board of directors for threeyears. Day-to-day management is entrusted to a permanent staff of 13headed by a general manager. ACOOPELI's main functions are to procureveterinary and other livestock products for the PRODELS and to manage thethree livestocks stations under its responsibility. It has derived itsincome from the sale of products to the PRODELS (on credit) or directly toproducers (for cash) from part of membership fees paid to PRODELS (para.5.17) and from grants by BPI. These funds are used mainly for the purchaseof veterinary products, equipment investments, and operating costs.ACOOPELI is now officially a member of ANEZA, the national businessassociation. This membership entitles it to receive an allocation offoreign exchange for its activities that are deemed economically sound.

5.19 Activities to date. ACOOPELI has played an essential role in theIturi project by serving as an effective link between BPI, the regionaladministrative authorities, the external financing agencies and theproducers. Producers' indifference to project activities is beinggradually overcome due in large part to BPI but also to ACOOPELI. It hasheld 11 board meetings, and three general assembly meeting since itscreation. In 1980, 1981 and during the first half of 1982, ACOOPELI,handled about Z 6.8 million worth of products (about US$1.2 million) and

extended to its members credits totalling close to Z 1 million (aboutUS$200 000). In addition to the sale of products to PRODELS, in 1981,ACOOPELI took over from BPI the operations of three livestock stations,covering a total area of 766 ha, one in each of the three sectors in theProject area. These stations now have 206 head of cattle belonging toACOOPELI. Extensive work has already been undertaken in these stations in

pasture improvement and fencing. Some of them are being used for limitedextension activities such as demonstration of pasture improvementtechniques and of animal traction as well as the introduction of improvedstock. ACOOPELI and the PRODELS have provided valuable assistance to BPIin demarcating and adjudicating communal grazing areas.

5.20 Finances. ACOOPELI now has its own separate accounts which havegenerally been found satisfactory over the past two years by the sameauditors who review BPI's accounts. Total revenues have increased fromabout US$233,000 in 1980 to US$139,000 for the first half of 1982 whileexpenditures have gone from US$51,000 to US$110,000 over the same period.Resulting profits shown come mainly from the fact that many products and

equipment have been given free of charge to ACOOPELI by BPI. This practiceis being gradually phased out to make ACOOPELI financially autonomous.Major problems encountered by ACOOPELI have included a slow payment ofmembership fees and unsatisfactory credit reimbursement by variousPRODELS. As of December 1981, about 43% of total credit outstanding wasoverdue but there has been a marked improvement owing mainly to anintensive training program undertaken on financial matters for treasurersof PRODELS and better follow-up and supervision of each PRODEL.

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5.21 ACOOPELI under the proposed Project. Under the proposed Project,ACOOPELI would play an expanded role in livestock and agriculturaldevelopment activities and in some pilot programs. First, it wouldcontinue to distribute medecines and would expand its activities to alsodistribute tools and other inputs to farmers and fishing gear tofis.hermen. Second, it would become responsible for the management of theBunia Abattoir. Although the abattoir component was in the first Ituriproject and has not been satisfactorily carried out, CIDA has now taken thenecessary steps to rehabilitate the abattoir and work is expected to becompleted by September 1983. Transfer of the abattoir managementresponsibility to ACOOPELI would take place after rehabilitation has beencompleted. Definition of and agreement on a satisfactory transfermechanism would be a condition of credit effectiveness. It would beessential to ensure that ACOOPELI will have the freedom to pass on thecosts of managing the abattoir to the users. Appropriate technicalassistance would be provided to ACOOPELI to ensure competent management ofthe abattoir (para. 4.17). A major objective in fostering the growth ofACOOPELI is to assist Ituri farmers in their efforts to better organizethemselves so that they can procure their own necessary inputs for thedevelopment of the agricultural sector in the sub-region. ACOOPELI is thusexpected to become capable of providing to its members the services nowunder the responsibility of veterinary and agricultural extension agentswith the exception of a few basic state run services. All products wouldbe sold at cost to PRODELS and their members to ensure that ACOOPELI isfinancially strong. The distribution of agricultural inputs and toolswould be very modest at the beginning, starting with crop farmers who ownlivestock and gradually expanded to all the farmers. Expansion of PRODELmembership to include farmers would be investigated under the Project . Aprojected ACOOPELI cash flow is given in Table 6. The revenues from thesale of these products to ACOOPELI would be set aside as counterpart fundsand used in a pilot credit scheme (para. 5.09). Credit applications underthis scheme would be reviewed by a committee consisting of the accountingand finance manager and another staff member of BPI, the President and themanagement specialist of ACOOPELI. Agreement was reached on this atnegotiations.

VI - Technical Features, Production and Markets

A. Technical Features

Veterinary and Animal Production

6.01 The Animal Health activities would be those described in para4.05. Supplies of drugs such as tetracycline antibiotics for use in theevent of East Coast Fever outbreaks would also be acquired. At fulldevelopment, about 120,000 (or 40%) additional cattle head would be treatedthrough the use of either dips, spray races, pumps, vaccinations, geneticimprovement, biological control measures or a combination of any of thembased on the recommendations following the basic data study (para 4.09).If dips are recommended, each dip would need to serve a minimum of 2500head of cattle within a radius of eight to 10 kilometers.

6.02 Dip Management. Several factors cause the strength of acaricidesin a dip to diminish with time, necessitating periodic replenishment of thedipping tank to maintainan adequate concentration of acaricide.Consequently, periodic chemical analyses of the concentrations of acaricidein dipwashes will be made so that dips can be maintained at their correctstrength. Such chemical analyses can be carried out either at the dipping

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tank or through the drug manutacturer. Replacement of dipwashes, basedupon the capacity of the dipping tank and the number of cattle passingthrough the dip will be done systematically at regular and desiredintervals. All efforts would be made to encourage cattle owners to diptheir cattle every week if tick control is to be successful. A constantproblem associated with the use of acaricides for tick control is theemergence of resistant strains of ticks. Once tick resistance issuspected, the dip manufacturer should be contacted, so that he can arrangeto check the acaricide and take away tick specimens to be checked forresistance in the laboratory.

6.03 Immunization against East Coast Fever. A UNDP/FAO RegionalProject "Research on Tickborne Diseases and Tick Control" to investigatethe feasibility of producing a vaccine against East Coast fever is beingcarried out by scientists working in Kenya at the International Laboratoryfor Research on Animal Diseases (ILRAD) and at the Kenya VeterinaryResearch Institute. Two approaches towards immunization of cattle againstEast Coast Fever are currently under investigation. However, there is nomethod currently available for artificial immunization against East CoastFever that can be applied in a fie:Ld situation. When new methods areavailable to fight ECF these will be incorporated in the animal healthcomponent as appropriate. Recent work has demonstrated that some cattle(especially in the Bos indicus breeds) have resistance to tick infestationand that this resistance is heritable. This suggests the attractivepossibility of cattle tick control through selective breeding.Unfortunately, there are no data oni resistance to ticks in Lugware, Bahemaand Alur cattle, the three breeds predominating in Ituri. Some suggestionsas to the relative susceptibility or resistance of these breeds to tickinfestation may be forthcoming froin the basic data study (para 4.09).

Crop Development

6.04 Farming families in the Project area would be supplied with toolssuch as hoes, machettes and sickels for fooderop production. Saws, pulpersand pruning shears would be provided to coffee growers and fertilizers,pesticides and flat iron sheeting for flue pipes would be provided totobacco growers. Although no improved plant material is readily availablein the Project area, basic seeds can be obtained from other ongoing seedprojects in Zaire. Good quality seeds from local planting material wouldinitially be selected, reproduced and distributed. Simultaneously,cultivars with good disease resistance would be gradually introduced fromsuch nationwide research programs as the "Programme National Manioc" forcassava and sweet potatoes; from the "Plan National Mais" for maize; fromthe Mulungu INERA station under a IJSAID sponsored program for beans; andfrom other ongoing applied research stations in Zaire which have producedor tried seeds under eco-climatic conditions similar to those in Ituri.Seeds would be produced at two of the three Acoopeli livestock stations.These stations would be equipped w:Lth adequate infrastructure under thelivestock component and would train bullocks for animal traction as isalready done under the Ituri project. Using hired labor and animaltraction about 40 to 50 ha would be cultivated on each station to produceseeds from the second year of project implementation. Quantities of seedsproduced would vary from 20 tons in year 2 or 60 tons in years four andfive for maize. Corresponding figures for other crops would be 50 and 150tons for beans, five and 15 tons for paddy and 20 tons for groundnuts.

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B. Production

6.05 At full development (year 12) the improved veterinary and animalhusbandry services would increase the productivity of the traditional herdby reducing cattle mortality, increasing liveweight at sale, improving

fertility, increasing milk production and contributing overall to a higherherd growth. A better supply of agricultural inputs and improvedcommunications with farmers would increase foodcrops yields and production.

6.06 To illustrate the production impact of Project activities, it hasbeen assumed that 40%/O of the cattle would be incrementally treated againstticks and tickborne diseases at full development and close to 100% wouldreceive the full range of other veterinary treatments when applicable as aresult of the Project. It is further assumed that the impact of tick anddisease control activities on production parameters would be as given inTable 8 at full development. This would translate into the followingproduction increase by year 12 for the 40% of the cattle:

Total number of cattle without Project 120 000Total number of cattle with Project 143 000Incremental cattle: 23 000Increase in % 19%

Milk Production without Project ('000 1) 3 900Milk Production with Project ('000 1) 6 700Incremental production ('000 1) 2 600Increase in % 72%

About 60% of the incremental milk production would be consumed by calves.There would also be a weight gain of about 7 - 10% per head for the totaladult cattle. This would represent about 5,040 tons liveweight.

6.07 Incremental foodcrop production as a result of the use of bettertools and improved seeds would be obtained from about 40% of the farmers atfull development (year 10) and would be as follows concerning the majorcrops listed.

Without Project With Project % increase

Maize grain (tons) 4 307 5 814 35Beans (tons) 4 140 4 830 17Fresh Cassava (tons) 28 512 35 640 25Sweet Potatoes (tons) 10 520 12 624 20Paddy (tons) 8 000 10 000 25

Most of these increases would come from increased yields due to use of moreadequate tools and better seeds. Incremental production of coffee would beabout 200 tons.

C. Markets & Prices

6.08 Impact of the Project. The proposed Project would increase herdsize by about 8% and milk production by about 35% at full development (para6.06). The incremental production would come mainly from the additionalproportion of cattle population treated against tick and tickbornediseases. About seven to 15% more foodcrops would be produced between

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Project years five and 1(. These increases are negligible on a nationalscale and would not have a negative impact on local Ituri prices since theyfail to even raatch expected population growth (2.7% per annum) and thusdemand. The Government's efforts co liberalize prices (paras 1.26 - 1.27)of agricultural and agro-industrial projects would be pursued in theProject area. The impact of this policy on production would be monitoredand reviewed periodically with the Association. Agreement was obtained onthis at negotiations.

6.09 Although milk production is projected to increase by about 72%within the target group as defined in para 6.06, more than half of thisincrease is expected to be consumed by healthier and more numerous calves.This would bring the growth rate closer to that of the human population andtherefore it has been assumed that most milk would continue to be consumedon or near the farm and no new special marketing infrastructure would berequired.

6.10 Beef. Given the modest increase in cattle herd size (about 23,000head, para6.706) and assuming an offtake of about 8% for commercialpurposes, incremental meat production would be about 293 tons of carcass atfull development (year 12). This would represent an increase of about 10%over current supply (para 2.26). Traditionally, about 3-4% of Ituri beefproduction has been shipped to Kinshasa (para 2.26). Because of the rateof population growth it can be assumed that about a similar proportion ofthe additional production would be shipped to Kinshasa, or about 10 extratons, a relatively negligible amount. The extent to which more meat wouldbe shipped to Kinshasa will depend on future trends in the Ituri sub-regionper capita meat consumption, population increase and meat priceelasticities, and farmers' propensity to sell (para 2.23), all factorswhich are difficult to predict.

6.11 Foodcrops. Ituri has been a traditional food supplier to the lowlands of Haut-Zaire and its main fcod export has been beans, a crop notgrown in the lowlands, in exchange for palm oil. Cassava and maize arealso regularly exported from Ituri. These exports have continued to

increase in spite of the bad state of roads. There is also a large growinglocal demand for foodcrops from go]d searching farmers who have abandonedtheir farms and from the relatively large population of fishermen alongLake Mobutu. Studies under the proposed Project would seek to gather moreinformation of these marketing flows.

6.12 Cotton, Tobacco and Coffee. Marketing of cotton is handled bySOTEXCO and that of tobacco by the British American Tobacco Company.Project activities would have only a minor impact on coffee production.

VII - PROJECT JUSTIFIICATION & ECONOMIC ANALYSIS

A. Justification & Benefits

7.01 General. The proposed Project constitutes an important element ofthe Government's program to achieve! food self-sufficiency and increase therevenues of the rural population. Production of crops and livestock isexpected to increase by 11 500 tons; and 23 000 cattle head respectively atfull development; that of milk by 2.6 million liters. In addition, anumber of pilot activities and studies would provide a better understandingof economic activities in the Project area and lay the groundwork for

- 45 -

further development activities. Finally, by strengthening ACOOPELI andseeking to make it financially autonomous, the Project would contribute tothe restructuring of the rural sector around a strong cooperative movementthat would reduce the need for active Government involvement in extensionand productive activities.

7.02 Production and Benefits. Overall the Project would generatesubstantial benefits at full development. Incremental production oflivestock and the principal crops, mainly beans, maize, sweet potatoes,cassava and groundnuts would increase as outlined in paras 6.06 and 6.07.These increases would derive from the increase in offtake rates, weightgains and lower mortality rates for livestock and from the use of better,higher yielding seeds, more adequate tools and, to a lesser extent, bettersoil preparation and farm management. Although the Project would createincome for producers, these benefits would not accrue to the Governmentbecause the major investments are either for institution building, physicalinfrastructure, or for raising the incomes of the rural poor who are notusually taxable. However, the Government would benefit indirectly from thepotential reduction, however small, in meat imports, a better cooperativemovement organisation in Ituri which would reduce the need for moreGovernment intervention and better sector management. This means thatinstead of about Z 3 - 4 million now required from the Government per yearin extension costs (about US$ .5 to .75 million) for the subregion, onlyabout Z 1 million (US$ .2 million) would be necessary (see table 4).

7.03 Beneficiaries. At full development, about 7 500 low incomelivestock producers and close to 120,000 low income crop farming familieswould have benefited from Project activities. Income of beneficiaries hasbeen estimated for three types of farms: the first type is for livestockproducers only with an average herd of 30 head; the second type is foragriculturalists only, with an average farm of 2.5 ha; the third type isfor those raising livestock and producing foodcrops. The changes in theirincome is given below. The figures given represent the gross value ofproduction for the "without" case and gross value of production lessincremental expenditure such as for veterinary products, tools and seedsfor the "With Project" case.

Farmers' Income Change(Gross value of output)

Without Project With Project Change ChangeZ US$ Z US$ Z US$ in %

Farm Type I 7 250 1 300 12 000 2 200 4 750 900 69Farm Type Il 2 400 435 3 300 600 900 165 38Farm Type III 9 650 1 735 15 300 2 800 5 650 1 065 61

Tobacco and coffee growers totalling less than 4,000 would also benefit asa result of the Project. On the average, incomes for these two groupswould increase by an average of about US$ 200 and US$250 respectively atfull development. The estimated relative poverty income level in ruralareas is estimated at US$43.0 per capita in Zaire.

B. Economic Analysis

7.04 Basic Assumptions. The economic rate of return has been computedbased on the following assumptions: (a) the economic life of the Project istaken to be 20 years; (b) all investments and incremental operating costs

- 46 -

have been taken into account including studies, training, technicalassistance, pilot activities, and physical contingencies; (c) incrementalproduction of crops, except for maize has been valued at farmgate pricesand that for coffee according to Bank projections in constant prices; (d)because Zaire currently imports substantial quantities of maize and meat,an import parity price has been used for the two commodities based on Bankestimates for maize, and on border prices for meat, after adjusting formarketing costs; and (e) foreign exchange has been shadow priced assuming apremium factor of 50%. Based on the above assumptions, the overall Projecteconomic rate of return would be in the range of 20 to 40% with the mostlikely estimate put at 30%. The separate rates calculated for thelivestock component and the foodcrop component are 36% and 17%respectively.

7.05 Sensitivity analysis. Projected rates of return were tested forsenstivity to changes in benefits, costs and delays in Project start. As ameasure, the crossover value was used as the value of the variable testedfor which the net present value (NPV), using a 15% discount rate, waszero. The crossover value may be interpreted as the value of the variabletested beyond which the economic rate of return would fall below 15%. Theresults are summarized below:

Summary of Economic AnalysisCrossover Values for 15%

Economic % Change in % Change inItem rate of return Benefits Costs

Livestock Component 36% -50% more than 50%Agricultural Component 17% -20% +20%

Total Project 30% -50% more than 50%

In addition, if the Project benefits are lagged by more than two years, thenet present value would still not fall below zero at 15%. This suggeststhat the Project as a whole is not very sensitive to cost increases orbenefit decreases but that the agricultural component is relativelysensitive to those two factors.

7.06 Risks. There are no major technical risks for the Project. TheProposed livestock program is well known and has been tested under thefirst Ituri Project. If the construction of dips is recommended followingthe study (para 4.09) there would be some risk of creating a susceptiblecattle population which would be decimated if dipping broke down at a laterstage. However, this risk is significant only if 100% of the cattle is

efficiently dipped. Under the Ituri conditions such a high coverage ratiois not likely to be obtained and dipped cattle would continue to mix withundipped cattle in communal pastures. Tick numbers would be reduced butthere would still be some to provide a continuing challenge. In countrieswith ecological conditions similar to those in Ituri, it has been observedthat a sizeable difference in tick burdens and mortality rates existed

between dipped and undipped cattle although they shared communal pastures.The agricultural program is simple and its phasing is realistic. Yieldsare within results achieved elsewhere in similar conditions. Projectmanagement is well tested and competent. A serious risk would be

- 47 -

Goverament policy support in terms of adequate livestock price policies.However, this risk would be reduced by the rehabilitation of the BuniaAbattoir and the rehabilitation of this airstrip which would facilitatemeat expedition to Kinshasa and thus stimulate demand. Another seriousrisk would be the general economic crisis prevailing in Zaire and theconsequent reduced availability of foreign exchange for the importation ofveterinary products to meet recurrent needs. ACOOPELI's new membership inANEZA makes it eligible to officially be allocated foreign exchange. Itwill need to follow up very closely to insure first that it is allocated anadequate quota and second that it actually receives this quota. Finally,the risk of late arrival of deliveries because of the remoteness of theProject area should not have any substantial impact because of theexperience already gained under the first Lturi Project.

Cost Recovery

7.07 Investment, Operation and Maintenance costs. Under the firstIturi Project beneficiaries have paid only for part of the investment,operation and maintenance cost of dips and other infrastructure. Thedifficulty to determine benefits associated with the technical packageoffered under the first Ituri Project (para 3.10) can explain producers'doubts and unwillingness to bear the entire cost of disease controlprograms. However, under the proposed Project, the basic data study (para4.09) is designed to fully demonstrate the benefits of tick and tickbornedisease treatments and should provide some evidence on the economic meritsof Project activities. Agreement was obtained at negotiations that theGovernment would recover full costs of disease control program by ProjectYear 5. The cost recovery issue will be discussed at the mid-term review.

7.08 Input Costs. All implements and equipment for livestock andagricultural activities would be sold at cost to ACOOPELI which wouldsubsequently sell them to PRODELS and producers with a small margin tocover its overhead costs. Agreement was obtained at negotiations that theGovernment would recover the full costs of other agricultural inputs suchas seeds and fertilizers by project year 5.

Investment Analysis

7.09 Investments for the proposed Project would represent 67% of totalProject costs, broken down as follows: civil works 11%; vehicles,machinery and equipment 16%; veterinary medicines and equipment 5%;agricultural tools, seeds, fertilizers & pesticides 17%; and consultantservices 18%. Operating costs would represent 16% of total Project costs,broken down as follows: local salaries and allowances 7%; operating andmaintenance costs; vehicle and equipment 8%; and civil works operations andmaintenance 1%; and other costs (studies, pilot activities, .. ) wouldrepresent the balance of 17%. Investments specifically related to tickand tickborne disease control, assuming that dips are constructed (thehighest cost alternative), would represent about 7% of total project costs,a relatively small amount.

VIII - SUMMARY OF AGREEMENTS TO BE REACHED AND RECOMMENDATIONS

8.01 During negotiations, agreements were obtained on the followingissues:

- 48 -

a) That the qualifications, experience, terms and conditions ofemployment of the consultants financed by IDA would be submittedto the Association for approval; qualifications of consultantsfinanced by other donors would be submitted to IDA for review(paras 4.14, 4.17, and 5.09).

b) That the Government would regularly contribute its share ofProject costs (para 4.20).

c) That procurement procedures satisfactory to IDA would be followed(para 4.21 - 4.22).

d) That the Project's accounts and statements of expenditures wouldbe regularly audited by auditors acceptable to the Association andsubmitted to IDA within six months of the end of each fiscal year(para 4.24)

e) That BPI would be staffed at all times with qualified nationals inkey positions and with internationally recruited specialists asappropriate (para 5.03).

f) That BPI would establish a compensation plan to offer adequateincentives to its staff (para 5.03).

g) That the Agreement to be established between BAT and BPI would besubmitted to IDA for approval (para 5.06).

h) That BPI would open a Bank account to deposit all receipts fromthe sale of products to ACOOPELI and the PRODELS (para 5.09).

i) That disbursements of funds from this account would be subject toIDA's approval (para. 5.09).

j) That Project expenditures would be made according to annual workplans which would be submitted to IDA for review no later thanJuly 31 and for approval no later than October 31st of the yearpreceding the one to which it applies (para 5.13).

k) That BPI would prepare a Project Completion Report at the end ofthe Project Implementation (para (5.15).

1) That the Government would pursue its policy of price liberaliza-tion, monitor the impact of this policy on agricultural produc-tion, and exchange views periodically with the Association on thismatter (para 6.08).

m) That the preparation of the Project implementation mid-term reviewwould be done by BPI (para 5.15)

n) That the Government would -make available to BPI during projectimplementation and to ACOOPELI thereafter the funds, facilities,equipment, and services necessary for road maintenance (para5.11).

o) That the cost of tools and iLmplements for livestock, foodcrops andindustrial crops and the cost of other inputs for industrial cropswould be sold at least at cost to farmers and that the costs of

- 49 -

other inputs for the livestock disease control program and forfoodcrops would be fully recovered by project year 5 (para 7.07-7.08).

8.02 Conditions of effectiveness would be

a) The establishment of a mechanism satisfactory to IDA for thetransfer of the management of the rehabilitated BuniaAbattoir from ONDE and ACOOPELI (para 5.21);

b) That all conditions precedent to the disbursement of the CIDAand FAC grants have been fulfilled (para 4.20).

8.03 IDA'S approval of the annual work program would be a condition ofdisbursements against activities for the year to which it applies (para5.13).

8.04 The program for the rehabilitation of the Bunia airstrip andmeasures taken by the Governnent to ensure that BPI will continue to occupyits present office facilities were discussed at negotiations.

8.05 Subject to the above agreements being reached and the outlinedconditions of effectiveness being met, the proposed Project would besuitable for an IDA credit of SDR 12.3 million (US$13 million) to theGovernment of Zaire on standard IDA terms.

- 50 -

Table 1

ZAIRENORTH EAST RURAL DEVELOPMENT/ITURI II PROJECT

PRJEWECT COST SUMMARY

(Z Million) (US$ Million) Z of- -------------- …------------------Foreign Z of Total

Loi:el Foreign Total Local Foreign Tot8l Exchange Base Costs

A, LIVESTOCK DEVELOPMENT

ANIMAL HEALTH 8,6 14.9 23,5 1.6 2.7 4.3 63.4 19.2OTHER LIVESTOCK DEVELOPMENT :!3 11.3 13.6 0.4 2,0 2.5 82.8 11.1

Sub-Totai LIVESTOCK DEVELOPMENT 10.9 26.2 37.1 2,0 4.8 6.8 70.5 30.3B..AGRICULTURAL DEIVELOPMENT 1.1 28,3 35.4 1.3 5.1 6.4 79.9 28.9c. HUMAN HEALTH 0.8 3.B 4.6 0.1 0.7 0.8 82.3 3.8D. PILOT ACTIVITIES, RESEARCH, STUDIES, TRAINING 1.4 3.8 5.2 0.3 0J7 1.0 72.6 4.3E. CENTRAL PROJECT MANAGEMENT AND SUPPORT SERVICES 9.1 31.2 40.3 1.6 5.7 7.3 77.5 32,8

Total BASELINE COSTS 29.4 93,3 122.7 5.3 17.0 22.3 76.0 100.0Phusical Contingencies 2.9 9.3 12.3 0.5 1.7 2.2 76.0 10.0Price Continsencies 8.5 22.9 31.4 1.5 4.2 5,7 72.9 25.6

Total PROJECT COSTS 40.B 125.5 166.3 7.3 22,9 30.2 75.4 135.6

Januaru 5, 1983 16:00

- 51 -

ZAIN -Table 1 ANORTH EAST AiK EUBLUIT7Ttt Il 0081ECT

84c.t br htPuvt Croen t(Z '0001

LIVESTDCK DEVkLOtT PILT CENTRALACTIVITIESO PRCJECT Pht"r al

OThER RESEARC, MAGENENT Co.tîi,xsresANIIL LlVESTOK A8RICULTURAL hUNN STUDIES-, AD SVPORT ---------HESLTH 8EVELDPIIEhT DEVEI4EI4T EALTH TRAININ SERVICES total 7 A"oant

I. IIMST4E0T COSTS

A. CIVIL VDRS

OIPPIV8 TANKS (NEY A4D RENOVATED) 5,545.1 - _ _ 5,545.1 10.0 554.5OFFICL', USESS, STOES 4,312,0 3Z6.2 121.0 - - - 4,799,2 10.0 479.90THER CIVIL HOPS - 454.7 3.646.7 - - - 4,101.4 10,0 410.1

Vol-Total CIVIL tORK 95,7.1 B21.0 3,767.7 - - - 14,4450. 10.0 1,444,6Ph-ssîal Contof -eoes 985.7 E2.1 376.0 - - - 1,444.6 0.0 0.0Fr-e Contm,xces 2,368.7 100.6 310,2 - - - 3,779.5 9.1 252.7

SD-TotaI INCLUDIK8 CONTINBEPCIES 13,211.5 1,003.6 4,454.7 - - - 18,669.8 9.1 1,697.3Fo,,îo,, Echaooe 5,570.4 530.6 30,0.3 - - - 9,712.4 9.1 882.9

B. VEHICLES, I bChlNERY AND F9U0P1ENT

VEHICLES 3,962.6 3.983.8 1,004.6 256.7 - 4,502,4 10.740.2 10.0 1,374.0AChlINERY AND EOUIPMENT FOR CONSTRUCTION 8Y FOlE ACCOLNT - - - - - 4,70.4 4,670,4 10.0 467.0

OTHER EOUIPENET le.. Office Eoîi,t.) - 2,341.9 372.1 11.2 985.6 78.4 7,789.2 10,0 375.9

SVb-Total 1EHICLESV 4AhlINERY AND EDUIPNENT 3,962.6 6,325.8 1,376.8 297.9 985.6 9,251.2 22,199.8 10.0 2,220.0Ph"fsîal Conte.cîes 396.3 632.6 137.7 29.8 98.6 925.1 2.220.0 0.0 0.0Pri-e Cotîmsemcies 777.5 1,257.8 265.6 39.5 259.7 1,839.3 4,542.3 9.1 412,9

Sub-Total INCLUOIN3 CONTIN3NCIES 5,136.3 8,316,1 1,783.0 367.2 1,343.8 12,015,6 28,962.0 9.1 2,632.9Fortion Eocha6,e 5,136.3 8,268J7 1,592.7 367.2 1,343.8 12,015.6 20,724.4 9.1 2,611.3

C. VETERI0RY HEDICINES AND E1UIP1ENT 5,500.3 19.0 - - - - 5,519.4 10.0 551,9PhOsîcal Contm*nries 550.0 1.9 - - - - 551.9 0.0 0.0Prie Costlne.îles 1,801.7 4.7 1,806.4 9.1 164.2

SBb-Total INCLUDINS CONTINENIES 7.852.1 25.6 - - - - 7,877.7 9.1 716.2VDr,în EVrhanse 7,852.1 25.6 - - - - 7,877.7 9.1 716.2

D. A5RICLLTURFL TOOLS , SEEDS , FERTILIZER , PESTICIDES - 525.6 21,088.5 - _ - 21,617.1 10.0 2,161.7Phosiual Co.tin*e,s - 52.9 2.108.8 - - - 2,161.7 0.0 0.0Pri-e Contîioees 200.6 5,901.2 - - - 6,101.8 9.1 554.7

SVb-Total IhCLUD3K8 COPTI86ECIES - 782.1 29.098.6 - 29,880.7 9.1 2,716.4For-îtn Eocarl." - 70S7, 26,615.9 - - - 27,319.8 9.1 2.483.6

E. COKSLTNff SERVICES - - - - 985.6 19,609.6 20.675.2 10.0 2,067.5Phssîcal Contintie, - - - - 98.6 1,969.0 2,067.5 0.0 0.0Price Cootioos--i- 259.7 3,595.1 3,854.8 9.1 350.4

So-Total 111811 lD CONTINSENCIES - - - - 1,343.8 25,253.7 26,597.5 9.1 2,418.0FoPrisn Erch- 1.343.8 25,253.7 26,597.5 9.1 2,418.0

Total INST4ENT COSTS 19,320.0 7,694.4 26,232.9 297.9 1,971.2 28,940.8 84,457.2 10.0 8,445.7Phosical Cantîoees 1,932.0 78.4 2,623.3 29.8 197.1 2,894.1 8,445.7 0.0 0.0Proce îoet,nsrteî.s 4.947.9 1,663.6 6,480.0 39.5 519.3 5,434.4 19,084.7 9.1 1,735.0

Total INCLUOI8 COTINSENCIES 24,199.9 13,127,5 35,336.3 367.2 2,687.6 37,269.2 111,987.7 9.1 10.180.7

FPrison Exbhane. 18,562.0 9,528.8 31,816.9 367.2 2,687.6 37,269.2 100,231.7 9.1 9.112.0

Il. RECURRENT COSTS

A. LOCAL SALARIES AND ALLOuANCES 2,541.7 911.6 1,061.6 - - 3,321.8 7,836.8 10.0 783.7pb-sical Cînt1oaees 254.2 91.2 106.2 - - 332.2 7P3.7 0.0 0.0Pr,ie Ctong,msi 928.1 238.9 35Z.0 - - 1,062.4 2,582.4 9.1 234.8

Sub-Total IC1UDIN8 CONTINOENCIES 3,724.0 1,241.6 1,520.8 - - 4,716.4 11,202.8 9.1 1,018.4R. VEH7CLE SND EOUIPNENT V t O 1,444.8 3,91C.4 1,212.3 443.5 492.8 1,918.0 9,430.8 10.0 943.1

F9,sieal ContLnîmçcies 144.5 391.9 121.2 44.4 49.3 111,8 943.1 0.0 0.0P-îee Ccntaotars 344.6 1,287.1 374.7 164.9 129.8 616.2 2,917.5 9.1 265.2

SubT.Tota INCLUDIND C11 TINSENCIES 1,933,9 5.598.5 1,708.2 652.8 671.9 2,726.0 13.291.4 9.1 1,208.3Fcreisn Eochas 1,740.5 5,038.7 1,537.4 587.5 604.7 2,453.4 11,962.3 9.1 1,097.5

C. CIVIL MMRK O t 205.0 11.8 - - - - 354.7 10.0 35.7Possical Coetonoeriies 20.5 15.2 - - - - 35.7 0.0 0.0PrieCt eim 757 49.9 -_120.5 9.1 11.4

S16-Total I1CLUDIK CDOTIK8ERCIES 301.1 2l6.8 - - - - 517.9 9.1 47.1Por-con Exebane 103.6 100.S - - _ - 204.1 9.1 18.6

B. OBIER OPERSTIN COSTS - 918.4 61930.4 3,06.8 2,777.6 6,076.0 20,569.2 10.0 2,056.9PO,sieal contonoeîies - 91.8 693.0 386.7 277.8 607.6 2,056.9 0.0 0.0Pri-e Cot.,,e,es - 243.2 2,503.4 1,240.0 793.6 1,871.0 6,651.2 9.1 604.7

Sub-Total INCLUOII6 CONTI)IDECIES - 1,253.5 10,126.9 5.493.5 3,840.9 8,554.6 29,277.4 9.1 2.661.6FPrin Echa.e - 598.3 5,392.5 4,394,8 1.924.5 745.1 13,055.1 9.1 1,186.8

Totrl RECURRENT COSTS 4,191,5 5,901.2 9,204.4 4,310.3 3,270.4 11,315.8 380193.6 10.0 3.819,4Plssical Conti fio * 419.1 590.1 920.4 431.0 327.0 1,131.6 3,819.4 0.0 0.0Prie. Continntoe fs 1,348.4 1,819.1 3,231.1 1,404.9 923.4 3,549.7 12,276.6 9.1 1,116.1

Total INLUD3NB CWOTI»OE441S 509.59,0 8.310.4 13,355.9 4,146.3 4,520,0 3 7, 97.0 54.289.5 9.1 4,935.4

Fortion Eocbahde 1.844.1 5,737.4 6,930.1 4,982.3 2,529.2 3,198.5 25.221.5 9.1 2,292.9

Total A3SELINE CD3TS 23,511.5 13,595.6 35,437.3 4,608.2 5,241.6 40.256.6 1221650.8 10.0 12,265.1Phusical Cantirnsnoir 2,351.1 1,359,6 3,543.7 460.8 524.2 4,025.7 12,265.1 0.0 0.0Proce Contiosoecwis 4,296.3 3,482.8 9,711.1 1,444.4 1,442,7 80,94.0 310361.3 9.1 2,851.0

Total FOJECT COSTS 322159.0 18.437.9 48.692.2 6,513,5 7.208.5 53,266.3 166,277.2 9.1 15.116.1

Fortien Eocba,h. 20,406.1 15.266.2 38,746.8 5,349.5 5,216.9 40,467.8 125,453.2 9.1 11,404.8

Jaaiars 5. 1983 16:00

-52-

us ~~~~~~~~~~Table i Emm7 1>00 Su EWNÙtIIIU Il mm10

Priva 0o66.lam Coite u live Foazatn Lxchaniva

0ni. Unit lest ft, of Wntt. I 1903 94 1995 1996 1 lm 199E 99 Total (U1Sf '0W) Z heoet

0.CIVIL MS

DIP9I#8 TMSO (E5 MGD OTU>M tu. 5.6-117.6 133 - - 1,340,9 1,357.7 2A.04S 400.1 400.1 5,545.1 1,329.9 50.0 2,772.6OFFICES, H0015 S710S tO. 1.00840.64 255 2,150.4 2,230.9 409.9 - - - - 4,799.2 95223 31,2 1,499,03710 CIVIL LMS Nut. 0.896-225.2 442 2,362.5 16000,9 54.2 50.4 8.5 9. 8.ES 4,101.4 804.7 79,9 3,275.4

Stb-Total CIVIL MUS 4.512.9 3,047.0 5,800.0 1,400.1 2,055.0 400.6 400.0 14,445.8 2.005.9 52.2 7.5460,Ptrjiovs Cootirsmere 451.3 3M84. 100.5 140.9 205.5 40.9 40.9 1,444,6 - 52.2 75.6Prove Contuieoein- 198.6 5>0.0 400.3 433,0 005.4 196.7 235.5 2,779.5 - 50.8 1.411.9

Sut-Total INCL09180 CCUEIOOEOIES 5,162.0 0,742,4 2.305.8 1.991.9 3,065,9 640,1 604.9 19,669.9 35.059 52.0 9,712.4Forvoso LavOrs 2.826.2 2,556.1 1,102,0 1,002.9 1.52.0 129.5 340.2 9,712.4 - 0.0 0.0

E. 92I10E0, 00043ErY AU 0001P9E5T

VEHILES to. 14.561,100.9 599 6,991,4 799.6 1.463.8 2.854.9 1.502.6 157.9 - 12,740.2 2,979.5 100.0 13,740,2006.I18RY MD0 E9019(00 FOR CU4STRUTION ET F001 OCCf< Nos. 1.12-532 44 - - 2,959.0 427.8 427.8 427.9 427.8 4,670.4 1.081.9 100.0 4,670.40710EWIP 819 (8les,. 0191v Eoiet.> to. 0.14-572.33 433 059.2 095.6 631.8 225.2 924,2 122.2 - 32.799.2 925.7 95.3 3.609.5

O.k-Total 5EHIC.ES. 00414100 4M0 E001P9E8T 7,750.6 1.605.2 5,054.7 3,637.9 2,934.6 709.0 427.9 22.199.0 4.797.1 99,2 22.12011Ph-vical Con.tinsur.ia - 775.1 169.5 505.5 363.8 293.5 70.9 42.8 2.220.0 - 99.2 2,202.0Priva Cetinuovies 341.0 223,4 1.121.1 1.119.6 1,150.2 341.3 246.6 4.542.3 - 99.1 4.502,3

Sti-Total 1I4CL131N0 COIETIMI8ESC( 0866.6 2,077.1 6,601.3 5,120.4 4,379.2 1,121.2 717.2 28,962,0 4.787,1 99.2 20.724.4Forets,, Eovhoae 8 ,827.0 2,033.3 6.634.3 5,063.6 4,225.2 1,121.2 717.2 28,724.4 - 0.0 0.0

C. 00E0E1008Y 4ED1CIE AN EMPE0 E19(T tu. 0.336-44.8 1,691 001.0 243.0 895.9 704.5 1.054.5 1,050.0 700.0 5.509.4 1.202.1 106.0 5,519.Phwsical Cortinger.vies - 00.1 24.3 89.6 70.4 105.4 105.0 70.0 551.9 - 10100 551.9Priva Contiroenclies- 38.8 33.2 196.5 216.6 412.3 505.5 403.4 1,906.4 - 110.0 1,006.0

Stb-Total INC1.00I08 C00IO8OIES 1,008.4 299.6 1,171.0 991.5 1.573.2 1.600.5 1.173.4 7.877.7 1,302.1 100.0 7.077.7Foamis. Exchw.e -1,008.4 299. 1,171,3 9M1.5 1,572.2 1.660.5 1.170.4 7.077.7 - 0.0 0.0

D. 6GN1CttT0MAL TOtS . SM00 . FORTILIOER PESTICIDES( to. 0.010-29.12 35.,360 4.960.0 2.728.9 2.744.4 2.796.0 2.796.0 2.796.0 2,796.0 21,617.1 4.939.0 91.4 19,750.096-nival Cutitmiurces - 496.0 272.9 274.4 279.6 279.6 279.6 279.0 2,161.7 - 91.4 1,975.9Prime Contios..cies 218.2 361.7 600.7 959.7 1.095.9 1.340.1 1,611.4 6.101.0 - 91.5 5,U.50.

Sut-Total 140CL00180 CONT1410C1(5 5,674.2 3.363.0 3.627.6 3.935.3 4.171.4 4.421.7 4.607.0 29,880.7 4,939.0 91.4 27.319.0Forais. EoxOhSe 5.156.4 3,M .4 3.322.1 3.602.8 3,818.9 4,040.1 4,291.0 22.309.8 - 0.0 0.0

E. CONGTMT SER910ES Jéo. 160-560 57 4,792,45.029.8 5,029.0 5,029.0 806.4 - - 20,675.2 4.396.2 100.0 20.675.2Ptvoivaî Covtiosovies - 479,2 502.9 502.9 502.9 00.6 - - 2,067.5 - 100.0 2.067.5Priva Cantaseotes 210.4 666.6 1,115.4 1,546.3 316.1 - - 3.054.8 -100.0 3.054.8

lob-Total 1I(100100 CONTINSENCIEO 1.471.1 6.199.2 6.647.1 7.078.0 1.203.1 - -26.597.5 4,396.3 100.0 26,597.5Forais. Loxfohge 5,471.1 6,199.2 6,647.1 7,079.0 1,293.1 - - 26.597.5 - 0.0 0.0

Total I1C00I0540f COSYS 22,007.4 1.3,33.5 15.518.9 13,575.2 9.646.4 4.963.5 4.332.4 94.457.2 19,510.4 99.4 75,519.5F9hesiva1 Coetinbeeiae 2.208.7 1.353.3 1.551.9 1.357.5 944.6 096.4 433.2 0.445.7 - 99.4 7,551.9Prive Cotontinercies- 1,007.0 1,793.9 3.442.1 4,174.3 3,790.8 2,399.7 2.496.9 19.004.7 - 89.9 17.160.3

Total 100.00100 C00IeOENCES 26.183.1 16,600.7 29,512.8 19,107.0 14,391.9 7,049.6 7.362.6 111,927.7 10.510.4 89.5 100,331.7

Forais,. Exv9hr. - 22,299.7 14,167.6 18.977.1 07,740.8 12,450.5 7.150.3 6.529.8 100,231.7 - 0.0 0.0

I1. 9E000RE81 cooSS

A, LKM. 16A.8010 Ml M ULUMS ao vair 2.8-17.92 1.136 732.9 991.6 1,155.6 1.250.4 1.318.1 1.190.0 1.190.0 7,036,0 1,951.7 0.0 0.096-istal Centioser.ie - 73.3 99.2 115.6 125.8 131.8 119.0 009.0 783.7 - 0.0 0.0Priva Continsoias - 32.2 131.4 256.3 387.0 516.6 5729 005.9 2,592.4 - . .0

O.k-Total 3(1.011E CcO<IOmEEIS 838.5 1.222.3 1.027.5 1.770.2 0,966.6 1,001.9 1,994.9 11,202.9 1,051.7 0.0 0.00. 05I00E 664D E8219105 O 1 9 0W0 ka 0.112-3.36 11.592 970.5 1,270.1 1,643.4 1.651.4 1,630.4 1.122.0 0.122.0 9.430.0 2,196.9 90.0 8,407.8

Ph.esiaI Coetinsmins - 97.0 127.0 044.3 162.1 165.1 112.2 112.2 94.1 - 99.0 048.8Priva Co.tins.eias 42.7 160.3 364.5 507.0 647.3 540.2 046.7 2,917.5- 90.0 2,625.7

S.k-Total 1(C.00080 C00TIlEEKIES 1.110.2 1,565.4 2.172.2 2,324.4 2.462.9 1,774.4 1,800.9 13,291.4 2,196.9 90.0 11,962.3Forais,, Eovhua 999.2 1,400.9 1.955.0 2,991.9 2,217.5 1,597.0 1,692.0 01.962.3 - 0.0 0.0

C. CIVIL EUS O t 49 0.112-5.6 379 16.8 16.8 53.2 00.4 95,3 36.4 49.8 356.7 95.0 39.3 140.3Ph.iaiol Ceetioteovias 1.7 1.7 5.0 8.0 9.5 3.0 5.0 35.7- 39.3 14.0Prive Cotnftooa.ies 0.7 2.2 11.0 27. 37.4 17.5 20.7 125.5 -39.7 49.0

Stb-Total I(1.00180 COO01403E5 19.2 20.7 70.3 124.4 142.2 57.6 03.5 507.9 85.6 39.4 204.1Forais. Exvlhavse- 9.6 10.4 20.4 42.0 48.4 06.8 39.7 204.0 - 0.0 0.0

B. OTHIE 90000008 COTS 0.329-79.4 71.953 0.075.7 2.991.5 3.198,9 3.380.4 3,223.6 2,999.6 2,999.0 20,569.2 0,039.2 44,3 9,117.0Pinasivol Ceetirseovie - 187.6 299.2 319.9 330,0 322.4 300.0 300.0 2,056.9 - 44.3 910.0Prive Coe.tirse,,ias - 82.5 303.3 709.5 1,039.4 1.263.5 1,444.2 1,720.8 6,651.2 -45.5 3,025.6

Sub-TotalI 01(10018 C000180(IES 2,140.0 0.563.9 4,228.4 4.757.9 4.009.4 4.743.7 5.020.0 29.277.4 4,839.2 44.6 13.033.1Parien. Eov.aea- 760.1 0,502.0 1.879.7 2.2200 2.236.2 2.063.3 2.293.0 130.05.1 - 0.0 0.0

Total 81010008 0407 3.595.9 5.170.0 6,051.1 6.378.0 6.200.5 5,040.0 5,361,4 3B,193.6 8,973.5 46.5 17.745.0Firsival Contins.,,ies - 339.6 017.0 605.1 637.9 628.8 534.0 536.1 3.819.4 - 46.5 1.774.6Prive Cutiolee.ies 150.2 685.3 1.342.1 1.961.4 2.464.7 2,574.8 3.090,0 12.276.6- 46.4 5.701.1

Total 5(1.0918 C00NE0IES 4,110.7 6.372.3 7.998.4 8,977.9 9,382.0 8.457.6 8.997.0 54.289.5 8,973.5 46.5 25.220.5

Forais. Eov4amg 1,769.9 2.921.3 3.861.1 4.350.7 0,502,1 3.797.0 4.025.5 25,221.5 - 0.3 0.0

Total &MINE CD8TS 26.403.2 19,703.0 21,570.0 19.950.9 05,934.9 10,301.5 9,097.8 122.650.8 27.400.8 76.0 93,263.3Ph,oivul Coetiraeri.ia- 2,648.3 1.970.3 2,157.0 1.995.4 1,593.5 1,031.2 969.4 12,263.1 - 76.0 9.326.5Prive Cntinaovies 1.163.3 2,479.0 4.784,3 6.135.7 6.245.0 4,964.0 5.507.0 30.361.3 - 73.9 22.001.4

Total FREOCT TUb 30.296.9 23.053.0 28.511.2 29.084.9 23.773.9 16,307.2 16,250.2 166,277.2 27,403.8 75.4 125,453.2

Forais.n Ehrieg- 25,069.6 17.008.9 22.738.2 22.095.5 06,960.5 10.945.2 10.355.3 025.455.32 0.0 0.0

Ja,sare 5. 1903 16100

- 53 -

IATH E45T RtJU4 I Table 1 CTablt M AMAL HE4LTH

DebilId Cost TableZ '000)

Iuantzta bus Cests Phu. For.Corh. Exch. Tax S,mari

Ubnt 1983 1984 1985 1986 1987 1988 1989 Total Unit Coot 1983 1984 1585 1986 1987 1988 198S Total Rate Com. Rate keot

1.AW2TAL CDSTS

A. CIVIL MS

111 DIPPI T1S6 NoTS 8 8 14 30 117.6 - - 940.8 940.8 1,6l4.4 - - 3.528.0 0.1 0.5 0 DTREO TED DIPPIHS TMS No. - - - 3 - - - 3 5.6 - _ - 16.8 - _ 16.8 0.1 0.5 0 DTSPRAY RACES do. - - 20 20 20 20 20 100 20.003 - - 400.1 400,1 400.1 400.1 400.1 2.000.3 0.1 0.5 0 DT

YTU. DISPE16ARIES (40 02) No. 20 16 3 - - - - 39 35.84 714.8 573.4 107.5 - - - - 1-397.8 0,1 0.3 0 OHSQET. STDRS (40 d2) Nu. 3 1 - - - - - 4 41.44 124.3 41.4 - - - _ - 165.8 0.1 0.3 0 OOFFICES (30 e2) lN. 2 - - - … _ _ 2 39.2 78.4 - - - - - - 78.4 0.1 0.3 0 OHRElEOE QET. DIISMRIES ND. - 3 - - - - - 3 2.24 - 6.7 - - - - - 6.7 0.1 0.3 0 OHS460 STAF HOU5ES (local mâtar:aîs) No. 33 37 9 - - - - 79 33.6 1,108.8 1,243.2 302.4 - - - - 2,654.4 0.1 0.3 0 OHSREM E STAFF HOMSS No. - 2 - …- … 2 4.48 - 9.0 - - - - - 9.0 0.1 0-5 0 ORS

Sub-Totil CIVIL liFS 2.028.3 1,873.8 1,750.8 1.357.7 2,046.5 400.1 400.1 9,857.18. VEHICLS

muRD TOP No. 6 3 - 6 3 - - 18 l43.36 860.2 430.1 - S60.2 430.1 - - 2.580.5 0.1 10 VENIOTORCYCLE (125 cel ll. 4 - 10 4 - - - l8 14.56 58.2 - 145.6 58.2 - - - 262.1 0.1 1 0 VEHBYCICLE li. 250 - - 250 - - - 500 2.24 560.0 - - 560.0 - - - 1,120.0 0.1 1 0 YEN

1ub-Total VEHICLES 1,478.4 430.1 145.6 1,478.4 430.1 - - 3,962.6C. V46 I)A1Y EWIPffHT MEl PlICIDES

. T. EeI1P0ltT FOR SECTOR /b le. 3 - - - - - - 3 44.8 134.4 - - - - - - 134.4 0.1 1 0 VET

.ET. EWIFffltT FOR SECTI88/ l. 29 - - - - - - 29 16.8 487.2 - - - - - - 487.2 0.1 1 0 VET0ET. EEUIPIEOIT FOR DISPE16ARY/ NIu. 20 16 3 - - - - 39 4.4S 89.6 71,7 13.4 - - - - 174.7 0.1 1 0 VETS*Y PP . 500 500 500 - - - -150 0.336 168.0 168.0 160.0 - - - - 504.0 0.1 t O VETUET. IEDICIIES/SUPPLIES /c li - - 20 20 30 30 20 120 35 - - 700.0 700.0 1.050.0 1,050.0 700.0 4.200.0 0.1 1 0 VET

,Total VETERINARY EQWIPENtT Mb 8081ClNES 879.2 239.7 881.4 700.0 1,050.0 1,050.0 700.0 5.500.3

Total CAPITAL COSTS 4,385.7 2,543.5 2.777.8 3,536.1 3-526.5 1.450.1 1,100,1 19320,.0

1 OPERATINS COSTS

A. CIVIL kS O t N /d

DlPP11S TMS to. - - -… - - 16 24 1.68 - - - - - 13.4 2c.9 40.3 0.1 0.5 C COtUET. D8SPEtIARES NO. - - 20 363S - - 95 0.56 - - 11.2 20.2 21.8 - - 53.2 0.1 0.3 0 COHSTAFF KOLES (local uaterials) Nu. - - 33 70 79 - - 182 0.56 - - 18.5 39,2 44.2 - - 101.9 0.1 0.3 0 CmET. STORES MD. - - 3 4 4 - - il 0.56 - - 1.7 2.2 2.2 - - 6.2 0.1 0.3 0 COlt

OFFICES Nu. - - 2 2 2 - - 6 0.56 - - 1.1 1.1 1.1 - - 3.4 0.1 0.3 0 COit

Sub-Total CIVIL KS O I R /d - - 32.5 62.7 69.4 13.4 26.9 205.0D. U}HICLE1 O I Il

HARD TOP 000 ka 100 175 175 175 175 - 1.68 168.0 294.0 294.0 294.0 294.0 - - 1.344.0 0.1 0.9 O vu1RITUCiCI 000 k 24 24 84 84 84 - - 300 0.336 8.1 8.1 28.2 28.2 28.2 - - 100.8 0.1 0.9 0 VO

Dib-Total 0011 01 H I 176.1 302.1 322.2 322.2 322.2 - - 1444.8C. FIELD PEOSOiE /e

DISFSEARY CRIEF un sat - 12 19 27 27 27 27 139 5.376 - 64.5 102.1 145.2 145.2 145.2 145.2 747.3 0.1 0 0 SALCL1INC CNIEF eanm ee 3 3 3 3 3 3 3 21 6.944 20.8 20.8 20.8 20.8 20.8 20.8 20.8 145.8 0.1 O O SALDISPEltS ARSSISTAIT un War - 24 41 50 50 50 50 265 4.816 - 115.6 197.5 240.8 240.8 240.8 240.8 1t,276.2 0.1 O O SAM.SECRETARY an war 4 4 4 4 4 4 4 28 5.936 23.7 23.7 23.7 23.7 23.7 23.7 23.7 166.2 0.1 0 0 SALORIVR aun ear 1 1 I 1 1 1 1 7 5.376 5.4 5.4 5.4 5.4 5.4 5.4 5.4 37.6 0.1 10 54LhiCOROPIST un ear 5 5 5 5 5 5 5 35 4.816 24.1 24.1 24.1 24.1 24.1 24.1 24.1 168.6 0.1 o o s5

Sub-Total F2F10 PfRSOMaEL /e 74.0 254.1 373. 460.0 460.0 460.0 460.0 2,541.7

Total OtRTIHM COSUS 250.1 556.2 728.3 844.9 851.6 473.4 486.9 4,191.5

otal 8SELIIIE coTs 4,636.0 3,099.7 3,506.2 4,381.0 4.378.2 1.923.5 1,586.9 3.511.5

lb The ProJect Are is diviWded for pureos of veterinarav servieninta 3 Sectof,. 6 Sections (2 pnr Sctor) and about 100 Disnsalries (15-20 nr Section.

'c Sre Table 101A for derivation of th,es luw sc fiaure'd lgintmna,c beins tuo weers after ctruction.le Field Personel mu, all ,ersonnl stationed utside of Projet Unit (SPI) headarters.

Sextaber 20, 1982 16:34

C~~~~~~~~~~- -. a O .i!0E . ) 9~~~~~~~~~~~~~~~~~~ O I O i U i;L

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O O F .° O F .° F F --- F O tl t = -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ m o - a J I J,E 0O 0OOO~~'- -O -0OOOOOO -000 -O

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! IIQIIQ.wl 000 O OC ~ OC1 OOoOO1O OOOOOCOoOoX | |e Il Sl

- 56 -

7AIE Table 1 FMORTN EAST RMUAL V OELT/ITURI II PROJECT

Table AC8WELI8etailed Csst Table

(Z '8000)

Owntits iase Costs Ps. For.- --- ------------------------------ ------ Cont. Exch. Tax Sumears

LUnit 19S3 1984 195 1986 1987 1988 1989 Total Unit Cost 1983 1984 1985 1986 1987 1988 1989 Total Rate Coap. Rate Rccount

I. CAPITAL COSTS

A. CIVIL WS

FECIlG ON RRCNES ka 8 a 8 5 2 2 2 35 4.256 34.0 34.0 34.0 21.3 8.5 8.5 8.5 149.0 0.1 0.9 0 OUIVET STRE (40 2> 4n. 1 2 - - - - - 3 41.44 41.4 82.9 - - - - - 124.3 0.1 0.3 0 CHSHOU1146 (9I IA) Nu. - 2 - - - 2 90.64 - 161.3 - - - - - 161.3 0.1 0.5 0 ORSSTWOFFICE Mo. - 1 - --. 64 - 80.6 - - - - - 30.6 0.1 0.3 0 O,

Sub-Total CIVIL (MS 75.5 358.8 34.0 21.3 8.5 8.5 8.5 515.2B. VEHICLES, EWJIPtMT, SLtPFIES

BLLS Uo. 1 2 2 32 - - 10 3.36 3.4 6.7 6.7 10.1 6.7 - - 33.6 0.1 0 0 OVEOFFIC EDUIPKElT lusu S - - - - - - 19.0 - - - - - - 19.0 0.1 0.9 0 OVESTATIONOlt NO. 1 - - I - 2 157.92 157.9 - - 157.9 - - - 315.8 0.1 1 0 VEHCATTLE TRUK No. 1 - 1 2 539.84 539.8 - - - 539.8 - -1,079.7 0.1 1 0 VENDELIlVY TRMOK Nu. 1 - I 2 52.32 572.3 - - - 592.3 - -1,144.6 0.1 1 0 OVEIMERAL StfPLE>E T sutt - - - - - - -2.2 3.4 4.5 4.5 4.5 - - 19.0 0.1 1 0 PET

Sub-Total V£INLES, EUIPFT, SLWIES 1,294.7 10.1 11.2 172.5 1,123.4 - - 2,611.8

Total CAPITAL COSTS 1,370.2 368.9 45.2 193.S 1,131.9 8.5 8.5 3,127.0

II. OPERATIIH COSTS

A. CIVIL M 0S O l M /b

VET STORE o. - - 3 3 3 3 13 0.56 - - 0.6 1.7 1.7 1.7 1.7 7.3 0.1 0.3 0 COtHOUSIm\ (PJltlAI Io. - - - 2 2 2 2 8 1.12 - - - 2.2 2.2 2.2 2.2 9.0 0.1 0.3 0 cotSTOE/OFFICE No. - - - I 2 2 6 1.12 - - - 1.1 1.1 2.2 2.2 6.7 0.1 0.3 0 CON

Sub-Total CIVIL ( S 0 t H /b - - 0.6 S0O 5.0 6.2 6.2 23.0B. VEtHCLE/EOUIPèMWT O t M

STATION0 mm 000 ka 25 25 25 25 25 25 25 175 1.68 42.0 42.0 42.0 42.0 42.0 42.0 42.0 294.0 0.1 0.9 0 OlCATTLE TRmtX 000 ta 30 30 30 30 30 30 30 210 3.36 100.8 100.8 100.0 100.8 100.8 100.8 1008. 705.6 0.1 0.9 0 VûitDELI'&Y TRUTCI 000 ka 30 30 30 30 30 30 30 210 3.36 100.8 100.8 100.8 100.S 100.8 100.8 100.8 705.6 0.1 0.9 0 VOl

Sub-Total EOICIE/MWIPMT 0 I 4t 243.6 243.6 243.6 243.6 243.6 243.6 243.6 1,705.2C. FIELD PERSOINEL /c

RMCN tWGERS tuan sar 3 3 3 3 3 - - 15 5.936 17.8 17.8 17.8 17.8 17.8 - - 89.0 0.1 80 0 SLHKEDERS/TRAIIERS SmI ser 13 14 16 19 20 - - 82 3.696 48.0 51.7 59.1 70,2 73.9 - - 303.1 0.1 0 0 SALLABO"ERS ta waer 13 13 13 13 13 - - 65 2.8 36,4 36.4 36.4 36.4 36.4 - - 182.0 0.1 0 0 SmA

Suob-Total FIELD PERSONNEL lc 102.3 106.0 113.3 124.4 128.1 - - 574.1

Total OPERATIMO COSTS 345.9 349.6 357.5 373.1 376.8 249.8 249.8 2,302.3

Total 8ASELIE COSTS 1,716.1 718.5 402.8 566.8 1,508.6 258.3 258.3 5,429.3

7b Maintenance betins 2 suers *fter construction./l Field Personnel means all Personnel stationed outside of Prouect Unit headeuirters.

September 20, 1982 16:34

Table MRICMTM DMWTabe i

Dwtail1.d Ccct Table10 000

kiatitw buc Cocts 986 For._______ _______ _______ ______ _______ _______ ______ __ -- __ _______ - - - - - C o t. 8,,eO. Ta. O ,o,N

unit I91 1964 196 116 196 I91 1969 Total Un,it Cost 1913 1964 1I6 1986 1967 1918 1919 Total 0.t. Cm. Rite Occat

C6617M. COOTS

A. CIVIL FMFS OU SM0 F6668 th

((66NE106TION ELOCTRICZ7 0RI0 Im f.. 481.6 - 481.6 0.1 0.6 0 O 0(ON F666 LECT6ICM. 08E1066TI0N 1u siai 58.2 582.2 0.1 0.65 O ou6F6CTOUY/S7668 .2 200 200 400 0.896 129,2 179.2- 326.4 0.1 0.2 O ou6HIMI66 R2 00 40 120 1.004 60.6 40,03 121.0 0.1 0.20 (6(0000OAT1OU m0 Ouw M oc - 19. - - 19.0 -36.1 0.1 0.2 O Km6F108 91.67 IN 0SEO F6C7OR0 huM sc. 1,I53.2 1.032.2 - 2,710.4 0.1 O.9 O 086

Su6-Total CIVIL fiS OUN1SE0 F6609 lb 2,173,9 1,574.7 - 19.0 -3 -0767.7

I. 08I0L.8 (6N6 E1619686 le

PIC06600( TNuc. 4 - - 4 - - 114.24 457.0 - - 457,0 - - - 910.9 0.1 I I 08947OUC7CL0 (122 ccl Ue. I I I I 1 - 14.56 14.6 14.6 14.6 14,6 14,6 - 72.8 0.1 I O 680BICYCLE ma. 4 - - 4 - - 2.124 9.0 - - 9,0 - - - 17.9 3.1 I O "EN4SAR94ESS Nu. 10 10 1 0 10 10 50 0.14 1.4 1.4 1,4 1.4 1.4 - - 7.0 M. 0.4 O 39<91.06 No. 10 20 30 30 30 - - 120 0.95? 9.5 19.0 28.6 28.6 21.6 - - 114.2 0.1 I O 20668R86 Um.l 10 1 2 13 12 - 60 1.344 6.7 13.4 20.2 20.2 20.2 - 0.6 0,1 I 0 01.7668048 U.. 3 3 3 3 3 - - 15 2.016 6.0 6.0 6.0 6.0 6.0 -3 0.2 0,1 I 0 m1.0XE9 ma. 20 20 20 20 20 - - 100 1.4 20.0 26.0 20,0 20.0 20.0 - - 1 ,00,1 O O m9<

1u0-Tctal VEICLES 660 80019949 le 232.2 82.5 908.7 564.6 98.7 - -1,376,68

C. 7(6006S A066I070 FOR9606R800

4080 /6 '00 100 50 50 20 30 20 56 400 29.12 2,912.0 1.456.0 1,426.0 1,42 6.0 1.456,0 1,456.0 1,456.0 11.646.0 0.1 0.9 O 7096604878/e "O0 60 30 30 30 20 30 30 240 19,04 1,142.4 271.2 270.2 571.2 571.2 571.2 571.2 4,269.6 M. 0.9 I T099SICKL8/C t 20 10 I0 10 10 10 10 60 19.04 360.0 190.4 190.4 190.4 190.4 190.4 190.4 1,522.2 0.1 0.9 O 759PP900916600E86S I. Nu. 600 200 200 200 200 200 200 2,000 0.047 37,6 9.4 9.4 9.4 9.4 9.4 9.4 94.1 0.1 0.9 O T0F99006140 066S/d MO. "0 000 600 600 6N0 600 00 5.600 0.006 14,3 14.3 14.3 14.3 14.3 14.3 14.3 100.4 0.1 0.9 0 T6FP911989 If No. 20 20 20 20 20 20 20 140 0.851 17.0 17.0 17.0 17.0 17.0 17.0 17.0 119.2 0.1 0.9 O 70F9F0RTILIZ00 lc f.im. 1.500 1300 1.300 1.500 1.200 1,560 1, 500 10.500 0.202 302,4 302.4 302.4 302.4 302.4 302,4 302.4 2,116.8 0.1 1 O 7090

POOTICII48/9 f.a..r 1,50 1.00 1, 200 1, 500 1200 1,500 lf 1,500 10.500 0.053 79.0 79.0 79.0 79.0 79,0 79.0 79.0 232.7 0.1 I 0 T099FUAT 1006 0 TI6814 e fi?"?, soc sc 500 590 200 500 500 3.500 0.104 52.1 22.1 22.1 52.1 52.1 52.1 52.1 344.6 0. Il O 0099

Sc.b-Tot.al 7089. AU1 I66P30S FOR F66080 4,937.6 2,691.8 2,691.8 2,691.8 2,691.8 2,691.8 2,691.8 21,06.5

TotalCAITA176 dOSTS 7,643.7 4,349,0 2,790.S 0.272.2 2.790.5 2,691.8 2,691.8 26,232.9

Il. 0006716(000

A. SM8 9S6871.RINE

SE006C001S17Il1 lumim - - - - - - -- - 6.0 26.0 56.0 56.0 56.0 - - 260.0 0.1 0.2 O McSEED PRO908ION tOc, 200 400 600 600 600 600 600 3.600 0.896 179.2 358.4 537.6 707.6 227.6 507,6 537.6 3.225.6 0.1 0.3 O 00028809628800160 Oo. - 200 400 600 0,3 600 600 0000 1.0715 - U25. 430.0 645.1 642.1 642.1 642.I 3,020.6 0.1 0. O om

060-Total SM0 UUOtAC7I9Off 232,2 629,4 1,023.7 1,230.7 7,238,7 1,182.7 1.182.7 6,731.20. C80 I66R59VE89

Km"50 66007006 plant 'M0 20 100 160 100 100 le0 10 620 0.28 I4. 20.0 20.0 20.0 20.0 20.0 20.0 t82.0 0.1 0.2 O WC96900018 Lis t 2 2 2 2 2 2 2 14 1.232 2.2 2.5 2.5 2.2 2.5 2.5 2.5 17.2 0.1 0.9 0 028

O.6-Tot.l C66F0 II0P6900T 16.5 30.5 30.5 30,5 30.5 30.5 30.5 199.2C. VM0LE0 & m0

P180 66 TMl 000 ka 100 100 100 100 100 100 100 700 1.60 168.0 166.0 16R.0 168.0 166.0 168.0 168.0 1,176.0 0,1 0.9 O 66040TORC70L0 000 kt à 12 18 le 16 16 Io 100 0.326 2.0 4.0 6,0 6.0 6.0 6.0 6.0 06.3 0.1 0.9 O 089

Su60-Total 0814E00. O M 170.0 172.0 174.0 174. 174.0 174.0 174.0 1.212.3D. 9FI1.D 90018UL /i

S8806FF1C0RS MdcWear 2 3 4 4 4 4 4 25 10.12 20.4 30.6 40.8 40.8640.6 40.8 40.8 254.0 0.1 2 0 sM.FORM ~ ~~~~Md Wear il 16 21 21 21 21 21 132 5.376 59.1 66.0 112.9 112.9 112.9 112,9 112.9 709.6 0.1 I O SM.

P60I16 6FFIC06 Md c.ir 2 2 2 2 2 2 2 14 6.944 13.9 13.9 13.9 13.9 13.9 13.9 13.9 97.2 0.1 a O 066.

Scb-Tctal F110 986000481 /6 93.4 130.5 167.6 167.6 167.6 167,6 167.6 1,061.6

Total W8RT166 (8070 515,1 962.4 1,38.7 1.610.8 1,610,6 1,554.8 1,254.8 9,20,44

Total MMINEl C80S 8,156. ,31.8 ,1. 4.686. 4,401 4,246.6 4,246,6 33,437.3

lb Scids .il1 be P,cdcc, at Ouia. acd 6f.,an 4 ro6 ,cse at B,,za.le 81,6,1.t is fo, ms m, $Wg fa,,./d To b. supolie tOc all farcers regaff1.ss of crools) O~w. 00.e cbjecto, bo the esd of ooir S is to 4aw 900 of f..r., c50n0 ho,. M2 sinf .ad,etes and 101 00,0 -,ct..le To b. sw,1,d tOceoffe. f.,crs. The 06.etio, b, th.. end et or 5 îs te hmo 20Z et f.,., 0s 0 vsi esth lodls./f To b. Ie tc, o. Oc ff,, farmrs. 00jetîow is tg hmc 500 of eoffte nroductioe, ..ils60 wit1. 60,5. nsu./c Tu be so,.lied Oc tob&vvo fa,uer. The ob.tit6. bs c., 5 is tu hm.. 1000 of f4mm usios, fe,tilizer 400 ?,sticies.lb Tc bu swI.sdlo. Oc f f. farwer for cmi,trwutiw, cf flues./I Field personnel wans a11 Personnel oct stationed at 9,o..ect Unit661 (SPI) ,odirtrs.

Se?teIb,, 20, 1982 16134

- 58 -

ZATPE Table 1 HMItN EAST RUAL DEEL~P /ITURI II PROEtCT

Table 601. HL tEALTHD taild Cost Table

(Z '000)

Omntits Base Costs Phs. FTr.-- - -------- *---- - ----------------------------- Cort. Exch. Tax Summrs

unit 1983 1984 1985 1986 1987 198 1989 Total Unit Cost 1983 1984 1985 1986 1987 1988 1989 Total Rate Co", Rate Accosat

1. CAPITAL CDSTS

A. UEICLES AND EWUIPHfi4T

NARDTOP la. - 2 - - - 2 143.36 286.7 - - - - - 7 O.i I O UEHREMRI0ERATOR No. - 1 - - - I 11.2 - 11.2 - - - - 11.2 0.1 1 0 20

Su.-Total UEHCLES AND EWIPNEltT - 297.9 297.9

Total CAPITAL COSTS 297.9 297.9

Il. OPERATIll COSTS

A. UEICLE a t h

AARD TOP 000 k - 24 48 48 48 48 48 264 1.68 - 40.3 0.6 80.6 80.6 80, 80.6 443.5 0.1 0.90 VO8. TREATEliT OF PATIENTS

PROJECT STAFF lia.lsear 3t4 300 300 300 300 3»4 300 2t100 1.008 302.4 302.4 302.4 302.4 302.4 302.4 302.4 2P116,8 0.1 0.8 O D3CACOELI tlElERS /b t,eatmnt 5,000 7,500 10,000 10,00 10.000 10,010 10000 U2,50 0.028 140.0 210.0 2S0.0 280.0 280.0 280.0 280.0 1.750.0 0.1 0.8 0 33C

Sub-Total TREArFfA OF PATIEitS 442.4 512.4 582.4 SU.4 102.4 502.4 582.4 3,866.8

Total DPERAT:14 COSTS 442.4 552.7 663.0 663.0 663,0 663.0 663,0 4,310.3

Total 8ASC.IE CtSTS 442.4 850.6 663.0 663.0 663.0 663,0 663.0 4,600.2

/a Scc Table 5 for derivatioe of unit costs.lb ACSOELI seb.rs are the livestock o'wtmrtfar,.rs of the Projct Area.

Se,te.ber 20, 1982 16:34

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- 61 -

ZAIRE Table 1 KNORTH EAST RURAL DEVELOMIT/ITURI Il PROJECT

Table 821. KINS4ASA OFFICEDetai'ed Cost Table

(Z '000)

Qwntit7 Base Costs PhN. For.-Cont. Exch. Tax Sumaru

Unit 1983 1984 1985 1986 1987 1988 1989 Total Unit Cost 1983 1984 1985 1986 1987 1988 1989 Total Rate Cou . Rate kcount

i. CAPITAL COSTS

A. UMEICLES AnD EWUIPIDUT

SMLL PICK UP No. I 1 2 106.4 106.4 - - 106.4 -212.8 0.1 1 O vEEOUIPIINT WOffice, etc.) lu s -… - … -- - - 11.2 - - - 11.2 0.1 1 0 MW

Sub-Total VEHICLES ANID EQUIPHENT 117.6 - - 106.4 - - - 224.0

Total CAPITAL COSTS 117.6 - - 106.4 - - - 224.0

Il. OPERATING COSTS

A. FIELD PERSONDEL /b

MNAJER amn Yar 1 1 I 1 1 I 1 7 14.56 14.6 14.6 14.6 14.6 14.6 14.6 14.6 101.9 0.1 0 0 SALSECRETARY an !seat 2 2 2 2 2 2 2 14 5.936 11.9 11.9 11.9 11.9 11.9 11.9 11.9 83.1 0.1 0 0 SALDRIVER san ear 1 1 I 1 1 1 1 7 5.376 5.4 5.4 5.4 5,4 5.4 5.4 5.4 37.6 0.1 0 0 SALLAORER am Wnar 1 1 I I 1 1 1 7 5.376 5.4 5.4 5.4 5.4 5.4 5.4 5.4 37.6 0.1 0 0 SAL

Sub-Total FIELD PERSOIIOEL lb 37.2 37.2 37.2 37.2 37.2 37.2 37.2 260.3

Total OPERATIN6 COSTS 37.2 37.2 37.2 37.2 37.2 37.2 37.2 260.3

Total BASELINE COSTS 154.8 37.2 37.2 143,6 37.2 37.2 37.2 484.3

lb Field Personnel sans ail Personnel stationed outside of Projct Unit (<PI) Head.wrters.

eUpte.ber 20. 1982 16:34

- 62 -

ZAI1EMIN EAST RURAL DE'EL&PLEMRT/ITURI Il PROJECT Table I L.

Table 831. MOJEt UlIT (BPI) HEADtWRTES /ahstailtl Cr Table

Il '000)

Okatity Dase Coits P.-_-_-_ -- ----------- -------------------------- Cont For. Gros; Susse

thit 1983 1984 1985 1986 1987 1988 1989 rota! Unit Lost 9831 1984 1985 1986 18? 1988 1999 Total Rate Exch. Tax Rate Acont

1. iFESnen Ct5T

A. V4LES AND EOUIPFENT

STATIONMAGII A.4i 1 - 1 1 - - - 3 157.92 157.9 - 17.9 15.9 - - - 473.8 0.1 1 0 YENTI.S (fer vohicle uintee unit) lum sm - - - - 67.2 - - 67.2 o.1 1 O D9

1*-Toal 80EICLES AND EOUJIPANT 225.1 - 17.9 17.9 - - - 541.0S. oeN11TM8T SERVICES

WSITANTS-T9FE I /b un vear 4 4 4 4 - - 16 420 1,680.0 1,688.0 1,680.0 168. - - - 6,720.0 0.1 1 8 TAEOULTANTS-TYPE Il/b uan sYr 5 5 5 5 - - 20 281.96 1.444.8 1,444.B 1,444.8 1,444.8 - - - 5,779.2 0.1 I O TA

iKA ABATTOIR MANGER e n star - - I 1 1 3 560 - - 560.0 960.0 0. - - 1,680.0 0.1 1 O A,PILOT CREDIT OA4AGER uan sur 1 1 1 - 4 560 560.0 560.0 560.0 560.0 - 2,240.0 0.1 1 0 TAMLIEF Of 1IEICAL SERVIE in sear I I 1 -I 4 168 168.0 168.0 168.0 168.0 - - - 672.0 0.1 I T

CMSTULTIDN S5PERtJIS1RS san eat 2 2 2 2 - - 1-4.8 369.6 369.6 369.6 369.6 - - - 1,478,4 0.l 1 D rTICX YECIALIST an Yet I I - - - 2 560 560.0 568,0 - - 1,120.0 0.1 1 0 TA

1*-Totl CONSULTANT SERtIŒES 4,782.4 4,782.4 4.7824 4,782.4 560.0 - 19,689.6

Total IMST1(T COSTS 5,007.5 4,782.4 4,940,3 4,940.3 560.0 - - 20,230.6

Il. UDIT COSTS

A, EMT, SUPPLIES, INSURAKCE

Kil Ftf OFFIC lS sue … -134.4 134.4 134.4 134.4 134.4 134.4 134.4 940.B 0.1 0 0 amIT FOR NOUSES lum s… -224.0 224,0 224.0 224.0 224.0 224.0 224.0 1.568.0 0.1 o o MC

IYtIES (ircl. electricits) lue suri 229.6 229.6 229.6 229.6 229.6 229.6 229.6 1,607,2 0.1 0.3 0 mCDUMICE lu1 soa 149.6 145.6 145.6 145.6 145.6 145.6 145.6 1,019.2 0.1 0 O DOC

S*-Tot4l REMT, SUPPLIES, INSUANCE 733,6 731.6 733.6 733.6 733.6 733.6 733.6 5,135.23. YE0lES

STATII MON 000 kt 25 25 50 90 50 - - 200 1.68 42.0 42.0 84.0 84.0 94.0 - - 336.0 0.1 0.9 0 Oc. sEL /l

IIEFS OF SERQICESITN9TS n star - - - - 5 5 5 15 16.24 - - - - 81.2 81.2 81.2 243.6 0.1 0 0 SM.MIET 3IRECTOR am str - - - - 1 1 1 3 :17.92 - - - - 17.9 17.9 17.9 53.8 0.1 0 ô SALMStmANT COIEFS can tar 2 2 2 2 - - - 8 14 28.0 28.0 28.0 28.0 - - - 112.0 8.1 o 0 SM.SSTANT PROJECT DIRECTOR man stear I I I I - - - 4 16.24 16.2 16,2 16.2 16.2 - - - 65.0 0.1 o * SdLmISTmA CNIEF OF ANIMAL NEALTs man sear 1 I 1 I - - - 4 15.12 15.1 15,1 1I.1 19.1 - - - 60.5 6.1 O 8 SM.îtIEF OF AINmL sEALTO an sea … - - - - 1 1 1 3 :16.24 - - - - 16.2 16.2 16.2 48.7 0.1 O o SML

TUURPER ma nna, - 1 1 1 I I 1 6 10.192 - 10.2 10.2 10.2 10.2 10.2 10.2 61.2 0.1 o o SALfEfRETARY un tar 2 2 2 2 2 2 2 14 5.936 11.9 11.9 11.9 11.9 11.9 11.9 11.9 83.1 0.1 0 0 SALSTUEIEPER ian sar 1 1 1 1 1 I 1 7 0.944 6.9 6.9 6.9 6.9 6.9 6.9 6.9 48.6 0.1 0 0 SMLSWOVISOR OF TRAINING tan 9ire I I 1 1 1 I 1 7 101,192 10.2 10.2 10.2 10.2 10.2 10.2 10.2 71.3 0.1 0 o SALN1IVETR8LATORS/DESOINERS/DRAFTSMER tan twar 8 Il Il Il Il 11 Il 74 5.264 42.1 57.9 57.9 57.9 s7,9 57.9 S7.? 389.5 0.1 O O SOLMISTANr TOFOGRAPHER amn ear 1 3 3 3 3 3 3 19 5,936 5.9 17.0 17.8 17.0 17.8 17.8 17.0 112.0 0.1 CI O SOL

9ISrlR OF ADMI0NISTRATI0O NOCOTULI) san sear I 1 I I I I 1 7 12.096 12.1 12.1 12.1 12.1 12.1 12.1 12 1 B4.7 0.1 0 0 SALLER0 S tan -unr 3 3 3 3 3 S 3 21 2.8 8.4 8.4 8.4 8.4 8.4 8.4 8.4 50.0 0.1 o o SAL

1*-Total FERSONNEL /c 156.9 194.8 194.8 194.8 250,8 250.8 250,8 1,493.5I. STAFF TRUIEL

WSSiIItS /d lui su - _ _ _ _ _ _ _ 134.4 134.4 134.4 134,4 124.4 134.4 134,4 ?40.H 0.1 0.05 O UCUCATIRNS /e luis sua - - - - 224.0 224.0 224.8 24.0 274.0 224.0 224.2 1,568.0 0.1 0 0 SAL

1*-TToal STAFF TRAQEL 358.4 358.4 35.4 35B.4 358.4 358.4 350.4 2;508.8

Total EECUNI GOSTS 1,290.9 1.320.8 I,370,8 1,71.8 1.426.8 1.342.8 1,342.6 9,473,5

Total WNSINE COSTS 6,290.4 6.111.2 6.311.1 6.311.1 1,90. H 142.H 1.342 H P704,1

/a S.. Table S for dnrivation if muit cests./b Thtso consoltants. to 'e nired inde, technical assistance contracts, vill till the follouins positioos

Feo.uct Director, Chie? of Ar-:a1 iiealth, CI,;f of Ani.al Prod:uction, Chief o? Extension and rrainins,CRiaf of Vehicle 4aintnnnce.Oncnarîcol Unit, Chief of Finance and Adsinistration,ChiD f of Construction Jnit, frrunomist, ACOOPELI oanaseoent Adviser.

/c Excludins Consultr,ts,/d Includes aission travel cests sf ail Zaiaois Perso,nel amd ail tons<stanî;/e ovenarnent on Zaire resulations reousre ecrIosers to pas vacation travel allonctes to ail Zailris Personnel Consultants vacation travel costs art thsa eucluded,

Jant,ara 5. 1983 15:59

- 63 -ZAIRE Table 2

NORTH EAST RURAL DEVELOPMENT PROJECT

Estimated Disbursement ScheduleCalendrier estimatif des décaissements

Cumulative Disbursements Décaissements cumulatifs en finat end of Quarter en fin de trimestre

US$ '000

1982/83 1982/83

March 31, 1983 500 31 mars 1983June 30,1983 900 30 juin 1983

1983/84 1983/84

September 30, 1983 1 100 30 septembre 1983December 31, 1983 1 400 31 décembre 1983March 31, 1984 1 600 31 mars 1983June 30, 1984 1 800 30 juin 1984

1984/85 1984/85

September 30, 1984 2 000 30 septembre 1984December 31, 1984 2 200 31 décembre 1984March 31, 1985 2 600 31 mars 1985June 30, 1985 3 000 30 juin 1985

1985/86 i985/86

September 30, 1985 3 500 30 septembre 1985December 31, 1085 4 200 31 décembre 1985March 31, 1986 4 800 31 mars 1986June 30, 1986 5 000 30 juin 1986

1986/87 1986/87

September 30, 1986 5 200 30 septembre 1986December 31, 1986 6 800 31 décembre 1986March 31, 1987 7 200 31 mars 1987June 30, 1987 8 000 30 juin 1987

1987/88 1987/88

September 30, 1987 8 500 30 septembre 1987December 31, 1987 9 300 31 décembre 1986March 31, 1988 9 800 31 mars 1988June 30, 1988 10 300 30 juin 1988

1988/89 1988/89

September 30, 1988 10 700 30 septembre 1988December 31, 1988 il 000 31 décembre 1988March 31, 1989 11 200 31 mars 1989June 30, 1989 il 500 30 juin 1989

1989/90 1989/90

September 30, 1989 Il 700 30 septembre 1989December 31, 1989 12 000 31 décembre 1989March 31, 1990 12 200 31 mars 1990June 30, 1990 12 500 30 juin 1990

1990/91 1990/91

September 30, 1990 12 700 30 septembre 1990December 31, 1990 1/ 13 000 31 décembre 1990 1/

1/ Credit Closing Date. 1/ Date de clôture du Crédit.

ZAIRENORTH EAST RURAL DEVELOPMENT PROJECT

Economic Analyaia(bn Z milon)

Year 1 Yr 2 Yr. 3 Yr 4 Yr 5 'Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Il Yr 12 Yr 13 Yr 14 Yr 15 Yr 16 Yr 17 Ir 18 Yr 19 Yr 20 tu1-TOTAL PROJEOr

aenef ita - 6 10 14 33 40 48 63 69 73 76 85 93 103 112 118 126 133 138 144

Cosat (37) (17) (32) (30) (23) (15) (13) (5) (4) (5) (7) (15) (10) (10) (10) (10) (15) (10> (10) (10)

N'et Benefits (37) (11> (22) (16) 10 25 35 58 65 68 69 70 83 93 102 108 Ili 123 128 134 30.17

Il-LIVFSTOCX COMPON4ENT?,~~ne£it% ~~- 5 8 il 30 34 40 53 57 59 61 68 75 83 91 96 103 108 113 118

ro.tM ~~~~(24> (B) (25) (22> (16) (9) (7) (4) (3) (4) (6) (12) (S) (7) (7) (8) (12) (8) (8) (B)

Nset Benefits (24) (3) (17) (11) 14 25 33 50 54 55 55 56 67 76 84 88 91 100 105 110 36.03

Peefits - 1 2 3 3 6 8 10 12 14 15 17 18 20 21 22 23 25 25 25

.;et leaefits (13) (8) () 5) 4) - 2 9 il 13 14 14 16 17 18 20 20 23 23 23 17.38

1/ lAvEstock Exehange at 150%L.vestock benefîta 50% first 3 yeara of wihat they vould be if dipping started at Year 1.Thi& is comapenaated by major increasea in Years 8. 9. 10 to each target.

-~~~~~~ ~~- £S5 -Table 4

°«1 ~ ~ ~ ~ ~ ~ t ,e

t-

_~~~~~~ - N N

_~~~~~~~ - N t4

Y~~~~~~~~~~~~ _ t _

-~ ~ ~ ~ ~ ~ ~ -

b~~~~~~ r- _ Nz

z o I _ I

,_ _- s t _. _

f 0 - t _ -

o _

Z YI _N iti n - I I O NS

t- N t 4

3 ~ ~~~ O tO _ , O _ I I N N

-t t~ ê e . t' - t t t

b A UN 0 _, _ I I -t -t

14 _ « {S «~~VE r b b~~~

t CO a vD^ _ «

.W ~ ~~ _ 0u>- O - t. I o

-4

Q t.., t- t-. _~ I. I

t -~~ t'..v .t

d S

-< t t. f

ZAIRENORTH EAST RURAL DEVELOPMENT PROJECT

Projected Annual Cash Flow 1983-1987 for ACOOPELI* (in millions of constant 1983 Zaires)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 - 20

1983 1984 1985 1986 1987 1988 1989 1990 1991 1992-2001

A. INFLOWS (Z '000)

Sale of veterinary medicines(including dipping fees) 1/ 3.0 5.2 7.3 8.8 11.4 13.4 14.4 15 15 15

Sale of Agricultural tools & Inputsl/ 5.7 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1

Subscription Fees 7/ .025 .025 - - - - - - - -

TOTAL INFLOWS 8.7 8.4 10.3 11.9 14.5 16.5 17.5 18.1 18.1 18.1

B. OUTFLOWS (Z '000)

Purchase & distribution of veterinarymedicines, suipplies (includingacaricides) 2/ 2.6 4.5 6.3 7.7 9.9 11.6 13 13.5 13.5 13.5

Operation of cattle stations 4/.1 .1 .1 .1 .1 .1 .1 .1 .1 .1

Purchase & Distribution of agricul-tural tools and inputs 5/ 4.9 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7

Other operating expenses- Salaries 6/ .1 .1 .1 .1 .1 .1 .1 .1 .1 .1- Vehicle operation & maintenance 3/ .1 .1 .1 .1 .1 .1 .1 .1 .1 .1- Buiilding operation and maintenance .1 .1 .1 .1 .1 .1 .1 .1 .1

TOTAL OUTFLOWS 7.9 7.6 9.4 10.8 13.0 14.7 16.1 16.6 16.6 !6.6

NET CASH FLOW .8 .8 1.0 1.1 1.5 1.8 1.4 1.5 1.5 1.5

1/ Equals cost of purchase + distribution +15%. (Assumes that sll short-term credit granted by ACOOPELI will be repaid in the same yearin which it is granted.) Includes holdover stocks from the Ituri Project for Year 1. It also assumes recurrent drug needs will behandled.

2/ Consiste of. (a) cost of medicines/supplies cif Bucia (per Cost Table 101) + (b) distribution cost (=50% x annual O&M cost of stationwagon + cattle truck)

3/ Excludes cost of distributing veterinary medicines i.e. consists of 50% of annual 0&M cost of station wagon + cattle truck, perdetailed cost table 401)

pD4/ Consista of wages/salaries for ranch managers, herders, trainers and laborers.

5/ Consists of (A) coat of toole/inputs cif Bulnia (per detailed cost table 501) + (b) distribution costs within Ituri (=50% x annual O&M (Dcost of delivery truck)

Ln6/ Cost of headquarters sjtaff: t.e. manager, assistent manager, supervisor of administration, secretary, 2 storekeepers, 2 drivers, 3

laborers (- salaries + mission travel + vacation allowance)

7/ To date, about 14,000 of the cattle owuiers in Ituri have joined a PRODEL (and thereby joined ACOOPELI). They own an estimated 200,000cattle. It is expected that they will have paid their subscription fees (totalling Z100,000 based on a rate of ZO.50/head of cattle)by the end of 1982. In 1983 arud 1984 ACOOPELI will receive the subscription fees (totalling Z50,000 over 2 years) of tlhe remaining

4,000 cattle owners, who owui an estimated 100,000 cattle.

ZAIRE

NORTII EAST RURAL DEVELOPMENT PROJECT

Project Implementation Schedule

Component /Year 1983 1984 1985 1986 1987 1988 1989

Basic Data Study

Mid-Terin Review

Animal llealth

Animal Production __

Crop Development

Human llealtl_

Other Studies, Training,Pilot Activities, Trials

Road and Bridge Maintenance

C3t>

68 -

Table 7

ZAIRENORTH EAST RURAL DEVELOPMENT/ITURI II PROJECT

Meat Price Structure

Importsat official at parallel

Bunia Goma Lubumbashi rate rate(Zaires per kg)

1. LivestockFarmgate price 4.80 6.5 8.20

- Transport .12- Transport tax 0.2- Market tax 0.2- Slaughter tax .10 0.4Effective live-weight price 5.02 6.58

2. Carcass pricel/ 10.46 14.62Storage fees2/ 0.36 4.50Trader's margin 1.00 1.00

3. Carcass fob price(Bunia and Goma) 11.82 20.12

4. Transport costto Kinshasa 6.00 4.00

5. Landed cost Kinshasaand cif price forimports 17.82 24.12 19.0 14.0 35.0

1/ Yield estimated at 48% for Bunia and 45% for Goma2! Three days on the average at Z 0.128/day in Bunia and Z 1.50/day in

Goma.

- 69 -Table 8

ZAIRENORTH EAST RURAL DEVELOPMENT/ITURI II PROJECT

Cattle Production Parameters

South Center North

Without With Without With Without WithProject Project Project Project Project Project

Calving Rate 42% 45% 48% 52% 35% 38%Calf Mortality 23% 16% 18% 13% 18% 13%Weaning Rate 32% 38% 39% 45% 29% 33%

Adult Mortality 8% 6% 8% 6% 5% 4%Total Mortality 11% 8% 10% 8% 7% 5.5%

Commercial Offtake 6% 8% 6% 8% 6% 8%Herd Growth Rate 0 3% 2% 3% 3% 3%

Liveweights (kgs.)Slaughter Animals 290 320 280 300 260 280

Calves 75 80 60 65 55 60Heifers(3-4 yr) 280 300 260 280 240 260

Milk Production:

Cows in Milk 32% 38% 39% 45% 29% 33%Production per lactation

(lit.) 600 720 500 600 350 420

of which:To Calf (lit.) 300 360 270 320 250 285Surplus (lit.) 300 360 230 280 100 135

of which:Home Consumption 30% (+3% p.a.) 63% (+3% p.a.) 80% (+3% p.a.)Sales 70% Balance 37% Balance 20% Balance

- 70 - ANNEX 1page 1 of 3

ZAIRE

NORTH EAST RURAL DEVELOPMENT PROJECT

Annual Work Programs - Presentation and Contents

The Annual Work Program must be conceived as a performance andplanning document. As such, it will include a statement of the specificobjectives to be pursued for the coming year, a description by projectcomponent of the activities to be undertaken in order to achieve thoseobjectives, a presentation of the resources (human, financial and physical)required and a financing plan stating where the funds needed will comefrom. It will consist of four basic parts:

1. A brief evaluation of the previous year'sperformance and a discussion of how resultsobtained are related to the new program;

2. A description of the program of activities,including quantified implementation objectives,output and project impact indicators whereappropriate. As an. indication, the followingtopics would be covered:

A. Animal Health

1. Vaccination. campaigns, by disease:- availability of vaccine;- participation by farmers;

- role of ACOOPELI;

2. Animals to be dipped;3. Deworming campaigns;4. Current level of ticks, tickborne diseases

along with the source of information;5. Herd sizes.

B. Animal Production and Marketing

1. Animal Production- livestock improvement, e.g. births,deaths, castrations, culling, livestockcensus;

- pasture improvement;

- range management - pasture demarcation

and tenure;- commercialisation;

- ranches;- support for ACOOPELI - e.g. distributionof instruments and supplies;

- research studies.

- 71 - ANNEX 1page 2 of 3

2. Marketing and commercialization:- the fundamental problem: inadequatedemand for beef in the Ituri sub-region,especially for beef produced in theCentral and Northern sectors;

- development of local markets;- sales statistics;- slaughter statistics;

- prices - including Goverament policy;- marketing to urban centers outside Ituri.

C. Training and Extension

- staff training plans with statements ofspecific objectives;

- radio broadcasts

- brochures;- short courses;

- Extension work in the field;- producers' association;- public relations;- anti-theft campaign;

- work in the schools;- Ngabu Training Center.

D. Construction

1. Construction Progress by Sector:- new buildings;

- repair work.

2. Tendering.

E. Mechanical Work

1. Repair of Vehicles and Generators.2. Acquisition of new Vehicles and Equipment.3. Maintenance of Stores.

F. Medical Activities

1. Number of Consultations at Dispensary.

G. Administration and Finance

1. Personnel:- expatriates;

- local personnel (professional/technical);- other local staff - including Government personnel

policies;- remuneration - incentives.

2. Accounting.

- 72 -ANNEX 1page 3 of 3

3. Vital Supplies:- fuel;- foreign exchange- information/correspondence.

H. Crop Development

- objectives for the coming year;- improved seed production;- import of inputs;- distribution of inputs;- number of farmers to be reached;- status of yields and areas planted.

I. Studies, Trials, Pilot Activities

- objectives and discription of studies,trials and pilot activities proposed forthe year.

3. Detailed investment and operating budgets in the form of anannual budget that will include:

a) the proposed capital expenditures (e.g. on civil works,vehicle and equipment) for all project components;

b) the proposed expenditures on salaries, materials, fuel,repairs and maintenance;

c) detailed financial projection for the year underconsideration, including an estimate of the financingrequirements under the line of credit by categories and ofZaire Government counterpart funds.

4. Procurement plans.

ZAtRt - NHt?RCAORICULTURE ORCANIZIAT!ON

b<_NISTER Sec(etAly. erzAC tete! CDh

-ftâtii Secretary | rStte secret.YJPural DevalOp.aQt 20 Projeta i. rlcultur_ - 34 ?r@*ectS

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Tb. Sacrecarîlt bas 3 tgclwcati caaiataats. 2 agiculturil .nStinreê, pSluson. soctologfsc. ta 44dition to a "credit ccli" .upporte4 by rio aDdaeporctlà dir.ctly bo too Staco Sacrctcry.

il This is the old chart, since the new one has not been published by the Coverxment

ZAIRENORTHEA3T RURAL DEVELOPMENT/ITURI Il PROJECT

PROJET DE DEVELOPPEMENT RURAL NORDEST/ITURI IlOrganizational Charl et tho ProjIct Unit

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Z AIRE

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