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Document ofTHE WORLD BANK

Report No. 16098-TO

STAFF APPRAISAL REPORT

REPUBLIC OF TOGO

NATIONAL AGRICULTURAL SERVICES SUPPORT PROJECT

August 13, 1997

Technical Agriculture 3Country Department 13Africa Region

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CURRENCY EQUIVALENTS

Currency unit CFA Franc (CFAF)US$1.00 = 509 CFAF (as of March26, 1996)

WEIGHTS AND MEASURESMetric system

ABBREVIATIONS AND ACRONYMS

AfDB African Development BankBCEAO Banque Centrale des Etats de I'Afrique Occidentale (Central Bank of Western African

Countries)BIE Public Investment Budget (Budget d Invesiissement de l 'Etat)CAA Agricultural Apprenticeship CenterCAS Country Assistance StrategyCCS Coordination and Monitoring Committee (Comite de Coordination et de Suivi)CFAF Franc of the Central African Monetary UnionCFD Caisse Fran,aise de De'veloppement (French Development Bank)CNCA National Bank for Agricultural Credit (Caisse Nationale de Credit Agricole)COOPEC Savings and Loans Cooperatives (Cooperative d'Epargne et de Credit)CRAP Regional Agricultural Research CenterDAF Directorate of Administration and Finance (Direction Administrative et Financiere)DMN Directorate of National Meteorology (Direction de la Mietiorologie Nationale)DNRA National Directorate for Agricultural Research (Direction Nationale de la Recherche

Agricole)DPDR Prefectural Division for Rural Development Division (Division Prefectorale du

Developpement Rural)DRDR Regional Directorate for Rural Development (Direction Regionale du Developpement

Rural)EDI Economic Development InstituteERAC Economic Recovery and Adjustment CreditERR Economic Rate of ReturnESA Institute of Higher Studies in AgronomyEU European UnionFAC Fond d'Aide et de Coope'ration (French Aid and Cooperation Fund)FINSAC Financial Sector Adjustment CreditFONGTO Togolese Federation of NGOs (Fede'ration des ONG du Togo)FUCEC National Union of Saving and Loans Cooperation of Togo (Federation des Unions des

Cooperatives dE'pargne et de Credit)ICAT Technical Assistance and Support Institute (Institut de Conseil et d'Appui Technique)IFAD International Fund for Agricultural DevelopmentINCV National Food Crops Institute (Institut National des Cultures Vivrieres)INS National Soils Institute (Institut National des Sols)INTA Food Processing Technology Institute (Institut National des Technologies Agricoles)INZ Animal Husbandry Institute (Institut National de Zoonology)

Vice-President: Jean-Louis Sarbib, AFRVPCountry Director: Theodore Ahlers, AFC13Technical Manager: Jean-Paul Chausse, AFTA3Task Team Leader: Christian Fauliau, AFTA3

IRCC Coffee and Cocoa Research Institute (Institut de Recherche Cafi Cacao)IRCT Textile Crops Research Institute (Institut de Recherche sur les Cultures Textiles)ITRA Togolese Agricultural Research Institute (Institut Togolais de Recherche Agricole)LDPA Letter of Agricultural Development PolicyMAEP Ministry of Agriculture, Livestock and Fisheries (Ministere de I 'Agriculture, de

l 'Elevage et de la Peche)MEF Ministry of Economy and FinanceNGO Non-Governmental OrganizationNPV Net Present ValueOPAT Togolese Agency for Agricultural Products (Office des Produits Agricoles Togolais)OPEA Professional Agricultural Organizations (Organisations Professionnelles Economiques

Agricoles)PERP Public Enterprise Restructuring ProjectPFP Policy Framework PaperPIP Public Investment Program (Programme d 'Investissement Public)PNASA National Agricultural Services Project (Projet National d'Appui aux Services Agricoles)PNPE National Small Ruminant Project (Projet National d'Appui au Petit Elevage)OP Observation PointsPSM Public Sector ManagementPVA Agricultural Extension Project (Projet de Vulgarisation Agricole)RMFI Rural and Microfinance InstitutionsS&C Savings and CreditSAFFIC Coffee-Cocoa Support Agency (Societt Nationale d'Appui a la Filiere Cafe-Cacao)SARS Farming System Research Support Sites (Site d'Appui a la Recherche Systeme)STN National Technical Secreteriat (Secreteriat National Technical)SOE Statement of ExpendituresSONAPH National Palm Oil Company (Societe Nationale du Palmier a Huile)SOTOCO Togolese Cotton Company (Societe Togolaise du Coton)STER Togolese Rural Extension System (Systeme Togolais d'Encadrement Rural)T&V Training and VisitTOGOGRAIN Togolese Cereal Bank (Etablissement d'Etat de stockage des cereales)UEMOA West African Economic and Monetary Union (Union Economique et Monitaire

d'Afrique de l 'Ouest)UNDP United Nations Development ProgramUSAID United States Agency for International DevelopmentVB Field Extensionist (Vulgarisateur de Base)VDF Village Development FundWFP World Food Program

GOVERNMENT FISCAL YEARJanuary 1 - December 31

REPUBLIC OF TOGO


STAFF APPRAISAL REPORT

Table of ContentsPage No.

1. SOCIO-ECONOMIC BACKGROUND ................................................................. 1I

A. BACKGROUND ........................................................................ 1IB. RECENT DEVELOPMENTS ......................................................................... 1

II. AGRICULTURAL SECTORAL BACKGROUND ..................................................................2

A. FARMING SYSTEMS AND PRODUCTION ......................................................................... 2Agro-ecological Zones ................................................................. 2Production Potential .................................................................. 2Main Products and Productivity .................................................................. 3Rural Natural Resources .................................................................. 4

B. AGRICULTURAL INSTITUTIONS ......................................................................... 5Ministry of Rural Development and Village Water Resources (MAEP) ..............................5Agricultural Services .................................................................. 6Training in Agriculture .................................................................. 7Non-Governmental Organizations (NGOs) ............................................................... ... 7Credit to Agriculture .................................................................. 7Other Institutions Operating in Rural Areas ............................................................... 8...Trading of Agricultural Inputs .................................................................. 9Rural Investments: Current Projects ........................... ...................................... 9

C. THE GOVERNMENT'S SECTORAL STRATEGY ........................................................................ 10Role of Agriculture in the Economy ........................... ...................................... 10

D. SECTORAL STRATEGY AND WORLD BANK PROGRAMS IN TOGO ..................................... 10E. LESSONS LEARNED FROM THE EXPERIENCE OF THE WORLD BANK AND OTHERDONORS ........ ................................................................ II

III. THE PROJECT ................................................................. 12

A. PROJECT OBJECTIVES AND STRATEGY ........................................................................ 12B. SUMMARY DESCRIPTION ........................................................................ 13C. DETAILED PROJECT DESCRIPTION ........................................................................ 14

Restructuring of and Support to Extension Services ........................................................... 14Support to Agricultural Research ...................... ........................................... 15Support to Pilot Agricultural Credit Operations ................................................................. 15Pilot VDF ................................................................. 16

Support to the MAEP ........................................ 16

IV. PROJECT COSTS AND FINANCING ............................................. 17

A. PROJECT COSTS ............................................. 17B. PROJECT FINANCING ............................................. 18C. PROCUREMENT ............................................. 21D. DISBURSEMENTS ............................................. 24E. ACCOUNTING, FINANCIAL REPORTS, AND AUDITS ............................................. 25

Financial Management and Accounting ............................................. 25Budgeting ............................................. 26Auditing ............................................. 26

V. PROJECT ORGANIZATION AND IMPLEMENTATION ............................................. 27

A. PROJECT MANAGEMENT AND CRITICAL STEPS ............................................. 27Pre-implementation phase ............................................. 27Project Implementation ............................................. 27Monitoring, Evaluation and Reporting ............................................. 28

VI. PROJECT ECONOMIC ANALYSIS ............................................. 29

A. CURRENT AND POTENTIAL YIELDS ............................................. 29Project Interventions ............................................. 29

B. ESTIMATING FARM-LEVEL BENEFITS AND COSTS ............................................. 30Input and Output Markets ............................................. 30Farm Budgets ............................................. 31

C. PROJECT ECONOMIC VIABILITY ............................................. 32

VII. BENEFITS AND RISKS ............................................. 33

A. BENEFITS ............................................. 33Direct Project Benefits ............................................. 33Indirect Benefits ............................................. 34

B. PROJECT RISKS ............................................. 35Quantifiable risks ............................................. 35Non-quantifiable Risks ............................................. 35

C. FISCAL BURDEN OF THE PROJECT ON THE BORROWER ............................................. 38D. PROJECT IMPACTS .................................................. 39

VIII. ASSURANCES AND RECOMMENDATIONS ............................................. 39

ANNEXES

1. Detailed Project Description2. OED Recommendations and PNASA Responses3. Economic Analysis4. ICAT Organigramme5. MAEP Organigramme6. ITRA Organigramme7. Budget Impact8. M & E Indicators in Relation to Main Objectives9. Project Objectives and Key Performance Indicators10. Schedule of Liquidation, Privatization and Legal Framework Improvement11. Terms of Reference for Mid-Term Review12. IFAD's Review and Recommendations: Summary13. Project Documentation

MAP: IBRD No. 27983

This report is based on the findings of Bank appraisal mission carried out in Togo in March1996, consisting of Mr. C Fauliau (mission leader), Mr. K. Egbeto (financial analyst), and Mr.R. Poison (economist). The preparation of the project was supported by Mr. Noel Chabeuf,(livestock specialist), Mr. Harry Palmier (SPAAR, agriculture research specialist), Mr. J.Weetjens (extension specialist) and a team of FAO/CP. Secretarial support was provided byMme. W. Sajous. The project's lead advisor, Mr. J. Baah-Dwomoh and peer reviewers,Messrs.. F. Schorosch and C. de Haan have reviewed the project from the Initial ExecutiveProject Summary. The Negotiations were completed on May 30, 1997. Mr. T. Ahlers is theCountry Department Director and Mr. J.P. Chausse the Technical Manager of the AgricultureGroup responsible for this operation.

REPUBLIC OF TOGO


Credit and Project Summary

Borrower: Government of Togo

Beneficiaries Ministry of Agriculture, Livestock and Fisheries (MAEP),Technical Assistance and Support Institute,Togolese Agricultural Research Institute,Savings and Credit Cooperatives,Professional Agricultural Organizations, andVillage Communities

Credit Amount SDR 19.2 million (equivalent to US$26.2 million)

Terms: Standard IDA terms, with 40 years maturity and 10 year grace period

Project Descriotior The National Agricultural Services Support Project (PNASA) aims toincrease standards of living in rural areas by improving agriculturalproductivity, production and incomes. It supports the restructuring andstrengthening of Togo's institutions responsible for providing coreagricultural services to farmers and the emergence of strong and viableagricultural producer associations. The project would: (a) enhanceparticipation of farmers in the programming, management and financing ofagricultural services (adaptive research, extension, ProfessionalAgricultural Organizations - OPEAs); (b) strengthen MAEP's sectoralpolicy formulation implementation and monitoring capabilities (includingagricultural statistics); (c) increase agricultural productivity bystrengthening the agricultural research system to better meet farmers'needs, placing greater emphasis on protection of the environment andintegrating it more closely into regional and international networks; (d)facilitate a progressive transfer of import supply and marketing activitiesto OPEAs and the private sector; and (f) foster the development ofselected financial intermediation institutions in pilot areas.

The project includes five components:

(a) Agricultural Services. The project would support the creation of adecentralized, semi-private and autonomous Technical Assistance andSupport Institute (ICAT), with farmers' participation, which wouldconsolidate and replace existing governmental or parastatal extensionservices and retrain their staff, and would be responsible for providing

improved extension services to farmers and support to farmerorganizations;

(b) Agricultural Research. The project would strengthen Togo's agriculturalresearch system by consolidating all existing research institutions into anew decentralized, semi-private and autonomous Togolese AgriculturalResearch Institute (ITRA), with farmers' participation;

(c) Agricultural Credit. The project would include two pilot rural financeschemes: (i) grassroot savings and loans operations through selectedexisting non-governmental organizations, to test a successful approach forensuring accessibility to agriculture credit by small producers, includingwomen, to these essential services;

(d) Village Development Fund. A Village Development Fund to supportdemand-driven small rural infrastructure at the community level;

(e) Ministri of Agriculture. Livestock and Fisheries (MAEP). The projectwould provide assistance for the reorganization of MAEP, and to build upits capacity in policy design, planning, programming and programevaluation.

Benefits and Risks: By increasing agricultural productivity, the project would help Togo meetits goal of alleviating rural poverty and achieve its strategic objectives ofnational food security and increased exports. In the short term, improvedcultivation techniques would result both in increased production and betterenvironmental protection. Streamlining MAEP and reinforcing its policymaking and monitoring abilities would result in a policy and institutionalframework that would be more responsive to priorities and constraints inthe country.

Other important benefits of the project would come through its impact oninstitutional capacity-building, good governance and coordination ofdonor operations. The main agencies, ITRA and ICAT, would bemanaged as private enterprises with effective participation of beneficiariesto ensure transparency and demand-driven management. Farmers'organizations would be strengthened and encouraged to play a muchincreased role in the management of the sector.

The main project risks, which affect all projects in Togo, are that: (i) theGovernment may "backtrack" on its decisions to decentralize services andbestow increased autonomy and responsibility to local institutions and (ii)the country's severe fiscal constraints may curtail its capacity tosatisfactorily fund project activities. However, government commitmentto decentralization and empowerment is strong, and increasingly assertive

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farmers organizations supported by donors, limit greatly any possibility ofbacktracking. The financing by beneficiaries, through their associations,of a large share of agricultural service institutions would mitigate the riskof critical funding shortages, even after the end of external financialsupport.

Economic Rate ofReturn: 21.3 percent, with a net present value of CFAF 9,987 million.

Poverty Category Program of Targeted Interventions

EnvironmentalCategory. C

Man: IBRD No. 27983

Estimated Costs and Financing Plan

Project Costs(US$ million)

Expenditures Categories Costs Local Foreign Total % Total % ForeignCosts Costs Cost Exchange

- Civil Works 4.3 3.1 7.4 14 42- Goods and Equipment 1.4 5.8 7.2 14 81- Vehicles 4.8 5.7 10.5 20 54- Consulting Services, Studies,and Training 6.5 2.7 9.2 17 29

- Social Capital 0.1 0.1 --- Operating Costs 11.9 3.2 15.0 29 21- Severance Pay 1.7 1.7 3- PPF Refinancing 0.3 1.2 1.5 3 80TOTAL 30.9 21.7 52.6 100 41

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Financing Plan(US$ million)

ICAT ITRA Institutional Pilot Rural VDF PPF TOTALStrengthening Finance

IDA 9.2 7.0 7.6 0.9 1.5 26.2IFAD 3.9 2.1 3.1 0.6 0.3 10.0Other Donors 0.5 0.5 0.5 1.5OPEAs 1.6 1.0 2.6Government 2.4 2.4 7.0 0.4 12.2Total 17.6 13.0 18.2 1.9 0.3 1.5 52.6

Numbers may not add up due to rounding.

Estimated Disbursements of IDA Credit(US$ million)

FY98 FY99 FY2000 FY2001 FY2002 FY2003Annual 3.5 6.5 5.7 6.0 3.0 1.5Cumulative 3.5 10.0 15.7 21.7 24.7 26.2

REPUBLIC OF TOGO


I. SOCIO-ECONOMIC BACKGROUND

A. BACKGROUND

1.1 At the beginning of the 1980s, after a decade of high growth and heavy externalborrowing to finance an ambitious public investment program, Togo failed to adjust to a sharpdecline in the international prices of its major exports (phosphate, coffee and cocoa). Itsfinancial situation worsened significantly and it quickly found itself saddled with severemacroeconomic imbalances and high external indebtedness. Stabilization and adjustmentprograms implemented between 1985 and 1989, with the support of the Bretton Woodsinstitutions and other donors, helped the country achieve a substantial liberalization of itseconomy and led to a resumption of growth despite a less favorable external environment, withcommodity prices far below the peak level reached in 1980.

1.2 The Togolese reform process, which began in 1985, was centered on: (a) reducingunsustainable public sector deficits; and (b) liberalizing the economy. The structural reformprogram achieved significant progress in dealing with severe problems in all areas of economicactivity: agricultural pricing and marketing; restructuring of the public enterprise sector; publicresource allocation and efficiency; domestic and external trade taxation; and the incentiveframework for non-agricultural sectors. Real GDP growth averaged 3.4 percent a year between1984 and 1989 (with real annual growth of cash crops output averaging 11 percent andmanufacturing 6 percent).

B. RECENT DEVELOPMENTS

1.3 Political Developments. By the end of the 1980s the Government came under increasingpressure to establish a multi-party system. A period of political crisis ensued, marred by violentstreet riots and mass civil disobedience. A national conference, convened in July 1991, led to theformation of a one-year transition government. Parliamentary and presidential elections werescheduled for July 1992, but political violence disturbed the electoral calendar and paralyzedeconomic activity from November 1992 through July 1993. The political situation improvedduring the second half of 1993. In August 1993, President Eyadema was re-elected for a five-year term and legislative elections were completed in March 1994.

1.4 Economic Developments. The combination of socio-political turmoil and reduction ofgovernment expenditures, exacerbated by the drying up of foreign aid, led to a severe contractionof the economy. During 1991-93, GDP fell by 21 percent, fiscal revenues dropped by acumulative 52 percent and, by the end of 1993, the overall fiscal deficit widened to 15 percent ofGDP. The government accumulated substantial domestic payment arrears amounting to the

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equivalent of 8 percent in 1993, with more than half representing unpaid salaries and socialsecurity contributions. Exports and imports contracted sharply. The substantial drop in netforeign financing led to a marked deterioration in the balance of payments.

1.5 Post-Devaluation Developments. Following the devaluation of the CFA Franc (CFAF)in January 1994, the return to political stability and the resumption of structural reforms, theeconomy showed clear signs of recovery. Real growth reached 14 percent in 1994 and 8 percentin 1995, reflecting a solid recovery from the depressed levels of 1992 and 1993. In line withprogram targets, consumer prices rose by about 35 percent on average in 1994. The relativelyhigh inflation in 1994, similar to that in several other CFA countries, reflected a variety offactors, including the effects of the devaluation on the prices of imported goods and services,large inflows of capital, Togo's strong economic recovery and a drop in the supply of food cropsduring the second half of the year. Inflationary pressures have abated since then; the average CPIincrease was 7 percent in 1995 and is estimated at about 5 percent in 1996. Despite a sharp dropin cotton production during the 1995/96 crop season, the economic recovery remains robust andreal GDP growth is estimated at 6 percent in 1996, as the decline in cotton output wascompensated by buoyant trade and mining activity.

II. AGRICULTURAL SECTORAL BACKGROUND

A. FARMING SYSTEMS AND PRODUCTION

Agro-ecological Zones

2.1 Togo has six agro-ecological zones, running from north to south (a) the dry inlandsavannah zone in the north, with high rural population density and farming systems based onmillet, sorghum, cowpeas, peanuts and cotton; (b) the Oti River hydromorphological system withlow rural population density and the domain of sorghum, fonio, cowpeas, peanuts and irrigatedrice as the main crops; (c) the dry mountainous northern Atacora zone, with low rural populationdensity in the west, higher in the east, dominated by sorghum, yams, peanuts and cotton; (d) themiddle and southern Atacora mountainous and sub-humid zone, with average rural populationdensity and a diversified agriculture based on maize, sorghum, yams and peanuts in the north(Sokode), and maize, cassava, coffee, cocoa and oil palm in the southeast (Kpalime); (e) theMono river basin, with low to average rural population density, and planted in maize, yams, rain-fed rice, cowpeas and cotton; and (f) the dry coastal and precoastal zone, with a dense ruralpopulation and maize, cotton, cassava, peanuts and oil palm as the main crops.

Production Potential

2.2 Soil Potential. Togo is relatively rich in arable land, but the distribution of good land isuneven. The coastal and savannah regions run the greatest risk of soil deterioration. Theircurrent semi-intensive cropping systems will shortly be unable to satisfy the food needs of thepopulation, and soil fertility decline--already started due to intensified cropping--will accelerateunless radical steps are taken. The three central regions-Plateau, Center and Kara-have good

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potential and will be able to meet the needs of their projected populations, even with the currentfarmning systems, well beyond the coming decade.

2.3 Production Systems. Togo's main farming systems are the pastoral, agro-pastoral andagricultural systems. The scope for development of pastoral and agro-pastoral systems, in whichlivestock predominates, is constrained by limited grazing potential and animal health and waterproblems. In systems where crops predominate, herding and farming are often separate, but theyare beginning to be integrated with the development of animal traction. Productivity increases ofthe main farming systems face several constraints: (a) the state of natural resources (poorchemical characteristics of many soils, deterioration caused by climatic changes and humanpopulation pressures); (b) the rudimentary technological level of farmers (cotton farmers beingan exception); (c) population pressures, migration problems and land tenure issues; (d)inadequate marketing systems resulting in high prices for inputs and low prices of marketedproducts; and (e) inefficiency of public services.

2.4 Farm Structure. Farms vary a great deal in terms of the area under cultivation and thetype of equipment used. The cultivated area varies from less than two hectares in the morepopulous zones of the southern and northern prefectures to more than 10 hectares in the center.Per capita cultivated area ranges from less than 0.10 hectare for lands farmed manually to morethan 1.5 hectare in the cotton growing areas, where draft animals are used. At present 1.6 to 2.0million people are working in farming. The number of rural families now exceeds 400,000.

Main Products and Productivity

2.5 Agriculture. The last agricultural census was taken in 1981. Since that timeextrapolations have been carried out using quick surveys (which were disrupted, however, by thesocio-political crisis). Except for cash crops like cotton, coffee and cocoa, for which figures canbe supplied by marketing companies, the statistical data presented in this report should be usedwith caution. Togo's main food crops are cassava (411,000 tons annually), yams (364,000 tons),maize in the south (251,000 tons) and millet and sorghum in the north (123,000 tons). Riceproduction (38,000 tons of paddy rice) is growing rapidly but does not meet the needs ofdomestic consumption (28,000 metric tons of rice imported in 1994). Togo has the potential ofbeing self-sufficient in food, but per capita production of foodcrops over the whole period 1984-1994 declined, despite an increase in absolute terms in production of maize and rice.

Table 2.1 Trend in the per capita production of foodstuffs

Average 1978/82 Average 1983/87 1994(kg/inhabitant) (kg/inhabitant) (kg/inhabitant)

Total cereals 110 121 111Total roots/tubers 336 251 210

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2.6 The chief export crops are cocoa (5,000 tons in 1994, down from 14,000 tons in 1985),coffee (17,000 tons in 1994) and cotton (130,000 tons in 1994). The production of cotton hassoared (an annual increase of nearly 12 percent between 1986 and 1991) and today almost200,000 small farmers, about half of the farming population, are involved in this activity. Coffeeproduction improved markedly between 1984 and 1989 after the introduction of new varieties ofRobusta. The export crop base is still relatively narrow. However, the devaluation of the CFAFin January 1994, combined with a rise in world market prices, has given new life to theproduction of export crops. A private contract-farming program of aromatic plant production forexport has initiated diversification of agricultural operations, employing more than 600 persons.

2.7 Livestock. In 1993, Togo counted about 240,000 cattle, 2.4 million small ruminants(sheep and goats), 248,000 pigs and 5.2 million poultry. The importance of beef in the diet ofthe population has been steadily declining, whereas that of small ruminants (assisted by an IFADproject administered by IDA) and poultry is increasing rapidly. In the region of Lome, about tenmodem, private poultry production facilities have been established. This development is takingplace without Government assistance, and at times under severe constraints such as the difficultyof obtaining bank loans for these modem facilities (the largest has 10,000 laying hens).

2.8 Ocean and Inland Fishing. The country's fish production potential is rather limited.The potential of the coastal zone under traditional use is estimated at about 8,000 tons per year.The lagoon area covers some 6,500 hectares-lakes Vogan, Aneho and Togo-and is heavilyexploited, supplying around 2,500 tons of fish yearly. The inland resources include the Mono,Oti and Kara rivers and a few aquaculture facilities. Little is known about them, despite the factthat more than 50 percent of the population's protein needs is met by fish production.Consumption of fish varies between 8 and 13 kg per capita (more than 50 kg in fishing villages).National production of fish has remained unchanged for years, in the range of 15,000 tons yearly,while consumption is 37,000 tons per year (22,000 tons imported).

2.9 Inputs and Technology. The use of improved agricultural technologies and inputs(animal traction, selected seeds, fertilizers, pesticides, etc.) is still limited. Cotton production isan exception. In other crops, only 12 percent of the areas are planted with improved varieties.The total consumption of fertilizer rose from 5,000 tons in 1978 to 29,000 tons in 1993. Yet,overall, still only 15 percent of cultivated land is fertilized, mainly for cotton. Improvedagricultural technologies are available, but they are poorly disseminated because of thedysfunctional relationship between agricultural research and extension services. Thetechnologies available from research include improved husbandry methods, improvement in soilfertility and in natural pastures, agro-forestry, reforestation, watershed management and anti-erosion techniques. Nevertheless, these technologies often need to be adapted to the resourcesand requirements of the small farms, and systematically disseminated.

Rural Natural Resources

2.10 On the whole, the natural resources of Togo (water, soil, vegetation) are still sufficient tomeet the current needs of the country. By a conservative estimate, arable land of good or averagequality exceeds 3.1 million hectares, compared to about 1 million hectares cultivated annually.

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However, this potential is not evenly distributed over the country and in large areas there is analarming increase in the degradation of natural resources, chiefly due to population pressures andthe mining of soil fertility. The main detrimental resource-use practices include deforestation (upto 15,000 hectares per year), cultivation of marginal soils in the hilly areas and the race tocultivate forest galleries and wooded savannahs. Forests and woodlots are being replaced bybush savannah with slight, and in some areas non-existent, agricultural potential. Given theimportance of forests for conserving soil and water, this degradation induces accelerated soilerosion, blanketing of alluvial areas by coarse materials, siltation of rivers, lakes and dams, and anoticeable decline in ground water levels. The most critical situations can be seen in the denselypopulated coastal and central areas. The poorest segment of the population, which lacks thefinancial resources to use improved techniques or acquire alternative heating material tofirewood, is at the same time the chief victim of this environmental degradation and one of itspromoters. Togo has no significant remaining forest resources. In the plateau and centralregions, where rainfall exceeds 1,200 mm/year, there is a significant reforestation potential onmarginal land, estimated at 40 percent of the country's area. Despite efforts in this area duringthe period 1986-1990 (15,000 hectares of reforesting and 1,000 hectares of teak plantations),there is a continual and alarming deterioration of natural resources (6,000 to 15,000 hectares ofland cleared yearly) as the last stands of forest are replaced by bush savannah.

B. AGRICULTURAL INSTITUTIONS

Ministry of Rural Development and Village Water Resources (MAEP)

2.11 The decree Law 90/91 of April 3, 1991, reorganized the Ministry of Agriculture,Livestock and Fisheries (MAEP) and the decrees 01-02-03 of July 14, 1994, specified the tasks,structure and operations of its three Directorates namely: (a) the National Directorate ofAgricultural Research, including two technical departments and six institutes; (b) the GeneralDirectorate for Rural Development, including nine technical departments at the national leveland five Regional Directorates for Rural Development (DRDRs); and (c) the Directorate ofAdministration and Finance (DAF).

2.12 In practice, however, the Ministry is composed at the central level of 21 departments and43 divisions, services and sections; this is the result of the accumulation of structures that havefollowed successive ministerial reorganizations. The same proliferation of structures can befound at the regional level. This has led to fragmentationand dispersion of responsibilities,as wellas to serious communication and coordination problems. Excessive centralization has also resultedin removing responsibilities from local directorates and field services, lengthening the decision-making process, and rendering decisions inappropriate because the decision makers are far removedfrom local realities. Human resource management at the MAEP (more than 4,400 agents, ofwhich 2,000 at headquarters) is far from rigorous: an exhaustive inquiry carried out by theTCP/FAO project indicated that it is difficult to reconcile the situation -on the ground withMAEP's staffing records. Some categories of staff are without legal standing (temporarypersonnel, training and employment staff, and contractors for projects, some of whom maintaintheir positions after termination of the projects).

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2.13 Some departments of the MAEP are engaged in commercial activities. DAF is involvedin the marketing of inputs, and the Rural Transport Development Service with warehousing anddistribution of foodstuffs. Other units carry out activities in construction and make purchasesand sales of veterinary and phytosanitary products. DRDRs are also involved in carrying outcommercial activities often without adequate management and financial controls. Such practicesdivert the MAEP from its mission to promote rural development through the efficient provisionof essential public agricultural services to resource-poor rural populations.

Agricultural Services

2.14 Extension Services. In 1986 the Government adopted a new strategy for agriculturalextension services, set forth in the document "Togolese Rural Extension System" (STER), aimedat identifying the needs of the farmers and forging a strong link between agricultural research andextension services. The operations of the public extension service are based on the mainprinciples of the T&V system. At the national level, however, the extension service hasencountered difficulties due to the multiplicity of approaches and goals pursued by the variousrural operators: DRDRs aiming to provide integrated advice to smallholders, the Togolese CottonCompany (Socidtt Togolaise du Coton -SOTOCO) focusing on cotton production, and theCoffee-Cocoa Support Agency (Societe Nationale d'Appui ai la Filiere Cafe-Cacao - SAFICC)aiming at supporting coffee and cocoa producers (but at present essentially non-functional). TheAgricultural Extension Project (funded by the World Bank), prematurely closed in June 1994,attempted to support the efficient operation of STER. However, it was impeded in its efforts bythe social unrest in 1991-1992, the extremely difficult budgetary situation of the country, whichnearly eliminated any financial participation by the Government, an inadequate managementstructure and poor linkages with research.

2.15 Agricultural Research. Agricultural research in Togo is characterized by: (a) a strongconcentration of research centers and human resources in the southern part of the country (59researchers out of a total of 84, chiefly in Lome); (b) inadequate researchers' skills (the majorityof researchers possessing the education level of "agricultural engineer"; (c) lack of prioritizationand non-participatory planning; (d) poor access to scientific literature and links with regionalresearch; (e) insufficient operating resources; and (f) very weak links with extension agents andproducers. Only two specialized institutes are connected to regional and international networksaffording exchanges of technology and plant material: the Textile Crops Research Institute(IRCT) for cotton farming in Correkape, the plateau region, and the Coffee and Cocoa ResearchInstitute (IRCC) for coffee and cocoa in Tove, the western plateau region. However, theseinstitutes have had little or no involvement in other crops (food crops) or in production systems.The research system also includes, the National Food Crops Institute (INCV) in Ativeme-Lom6,the Animal Husbandry Institute (INZ) in Avetonou, in the plateau region, specializing in animalhusbandry, the National Soil Institute (INS) for soil research, the Food Processing TechnologyInstitute (INTA) for food processing technology and the Directorate for National Meteorology(DMN) for meteorology. To a varying but significant degree, these institutes are weak and donot address the pressing needs of Togo's agriculture.

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2.16 Professional Agricultural Associations. The number of Professional AgriculturalAssociations (OPEAs) is estimated at more than 2,500. Many are exclusively woman groups andsome are particularly active. These OPEAs are organized around primary economic activities orsocial issues. Until about three years ago, producers in the coffee, cocoa and cotton sectors werenot organized. Now, they are actively involved in the collection of cotton seed and participate inthe management of the committee charged with coordinating activities in the liberalized coffeeand cocoa sub-sectors. Moreover, they are keen to play a much increased role in the supply ofagricultural inputs and the marketing of products. This will require, however, that assistance begiven to strengthen their institutional and operational capacities.

Training in Agriculture

2.17 There are three levels of training for agriculture: (a) basic training for extension agents atthe Agricultural Apprenticeship Center (CAA) of the National Agricultural Training Institute inTove; (b) mid-level field managers' training provided by the School for Agricultural Techniciansalso in Tove; and (c) (since 1981-82) advanced training for agricultural engineers offered by theInstitute for Higher Studies in Agronomy (ESA) in Lome. During the period from 1986 to 1991,the CAA retrained 750 extension officers. The Tove Training Center is currently closed becauseof a lack of financial resources, and only the ESA is in operation. Training of extension officersand of sector and subsector chiefs is provided by technicians specializing in extension activities.There is an urgent need to restructure agricultural training at all levels, to make it relevant to thechanging needs of farmers, but also of all the other public rural development institutions, whosemissions have changed dramatically and now focus on efficiently meeting the needs of farmersfor a widening range of agricultural services and advice.

Non-Governmental Organizations (NGOs)

2.18 The in-depth study of NGOs carried out during the preparation of the project revealedthat about sixty NGOs, organized in a national federation (Togolese Federation of NGOs -FONGTO), are presently active in rural areas. The number of NGOs has increased significantlyin recent years with the economic and political crisis. Within this group there is a majority oforganizations whose main objective is to provide services on a commercial basis rather thanassisting rural populations. Most NGOs work closely with donors, at times subcontracting andcarrying out components of investment projects on the same footing as private companies. AsNGO activities have thus far been poorly regulated, they are doing so in unfair competition withthe private sector. The study revealed that many NGOs-without supervision or evaluation-tend to impose their own priorities on farmers with little element of participation involved. Thequality and professional ability of these organizations also vary greatly. The pre-appraisalmission identified five NGOs, which have taken an active part in the preparation of the project,and with whom the project intends to maintain contractual agreements.

Credit to Agriculture

2.19 Following the liquidation of the National Bank for Agricultural Credit (CNCA) at the endof 1988, Togo has had no public rural credit institution. Private banks have not taken up the

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slack, refusing to lend to this sector without guarantees. Members of farmers' associations in thecotton zone have access to crop credits administered by SOTOCO. The traditional mechanismsof the "tontine" and loans granted by traders remain the most common forms of credit. A recentsurvey of rural credit by the World Council of Credit Unions and USAID in the Kara Riverregion revealed that about 40 percent of families had recourse to this form of borrowing, but thatusually these credits are not for production purposes. The National Union of Savings and LoanCooperatives of Togo (FUCEC) covers the entire country, but its activities in rural regions arelimited. The Savings and Loans Cooperative (COOPECs), which operate under the aegis ofFUCEC, follow a cooperative model based on accrued savings prior to the awarding of credit.Other associations attempt to reproduce the Grameen Bank model or base their approach onmutualist practices (SYNORSEC, SOCODEVI, etc.). In 1995, the National Assembly adopted alaw, enacted by the Central Bank, regulating Rural and Microfinance Institutions (RMFIs) underthe aegis of the Ministry of Economy and Finance (MEF). The proliferation of very small, local--and often unreliable--financial organizations masks the extreme difficulty for most smallfarmers of obtaining access to credit for agricultural and livestock operations.

Other Institutions Operating in Rural Areas

2.20 SOTOCO, SAFICC and, to a lesser degree, the National Palm Oil Company (SocieteNationale du Palmier a Huile, SONAPH) provide support services to agricultural producers.SOTOCO was created in 1974 as a public enterprise. It serves 13 rural development sectors (onethird of the national total) and has an integrated approach, working upstream and downstreamfrom cotton production by providing in kind credit to farmers for inputs and undertaking allpurchases of seed cotton from producers, and providing for transportation, processing anddelivery of cotton fiber to the port. SOTOCO has also been entrusted with extension servicesrelated to cotton and food crops, as well as with adaptive research, the production of seeds forfood crops, the promotion of farmers' associations and the creation of rural infrastructure. For itsextension activities alone, SOTOCO has 883 employees, of which 587 are field extensionists.With the aid of the World Bank-supported Third Cotton Project (Cr. 1929-TO) and the CaisseFrancaise de Developpement (CFD), SOTOCO is presently undergoing restructuring to clearlyseparate its processing and marketing activities, which would be privatized, from its agriculturalsupport activities. SAFICC was created in 1992 for providing extension services in the coffeeand cocoa region (three sectors) in cooperation with IRCC, which is responsible for coffee andcocoa research. SAFICC currently employs 123 agents (including three sector chiefs and 20local advisors) for extension services, and 62 organizational staff. It doesn't have an operatingbudget and producers are considering it not efficient. It would be liquidated as a condition ofBoard Presentation of the proposed project (para. 8.3 (a)). SONAPH's mandate is to developindustrial and village oil palm plantations, manage the processing plants and market the oil.However, support to palm plantations is inefficient and would be assumed by ICAT. Plantationswould be leased or sold to private farmers. Oil palm processing, now very inefficient, would beprivatized. The Togolese Cereal Bank (TOGOGRAIN), active in grain marketing, does a poorjob of managing buffer stocks and its elimination has been contemplated several times, but notyet implemented. Its liquidation would be a condition of Board Presentation (para. 8.3 (a)).

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Trading of Agricultural Inputs

2.21 The distribution of agricultural inputs is still dominated by an inefficient public sector.Trading of fertilizers and pesticides outside the cotton sector is handled by the MAEP through itsDAF and the Directorate of Market and Production Support (DMMP), in a clearly inefficientfashion. The private sector only takes care of the transportation from the port to the regionalMAEP warehouses. SOTOCO has warehouses and trucks to deal with fertilizers and pesticidesfor cotton cultivation which is the main consumer of modem inputs. Production of basic seedsby the INCV has been hampered by administrative and budgetary constraints. This contextweakens the farmers' chances to get good and timely agricultural inputs. The public service isnot only inefficient but it also unfairly competes against the private sector, making the latter'sgrowth impossible. Only three private import firms, with a small financial capacity, have beenable to survive by providing services to SOTOCO and DMMP. However, during the last fiveyears, farmers' organizations, collaborating with each other, have increased their ability to dealwith the local distribution of fertilizers, particularly in the cotton area and could provide viablepartners to an emerging private sector role in the distribution of inputs.

Rural Investments: Current Projects

2.22 The Public Investment Program (PIP) for 1995 totaled CFAF 34,102 million (US$70.3million) of which only 10 percent in support of the agricultural sector. Although some of thepublic investments in other sectors (e.g., those appearing under the headings "Infrastructure" and"Socio-Cultural Investments") will benefit the rural sector, this share seems small in relation tothe importance of the rural sector in the GDP, the work force employed in the sector, and theGovernment's declarations concerning the key role of agriculture in the country's development.Ongoing investment projects in the agricultural sector are numerous despite the withdrawal ofmost official assistance to Togo during recent years. The most important projects are: (a) theThird Cotton Development Project, funded jointly by the World Bank (Cr. 1929-TO), the CaisseFrancaise de Developpement (CFD) and the Government of Togo; (b) "FED-Savane," anintegrated rural development project financed by the European Union (EU); (c) the "micro-projects" program, focused chiefly on the development of bottomlands, financed by the EU; (d)the "PAIDB" program (Grassroots Development Project) financed by the World Bank; (e) theNational Small Livestock Project (PNPE) financed by IFAD and administered by the WorldBank; (f) the Support to Village Groups in the Eastern Savannah Region Project, cofunded byIFAD, UNDP and UNCDF; (g) the project "Support for Women's Associations in the SavannahRegions," undertaken by the NGO "Islands of Peace"; (h) the "Forest Development andProtection of the Environment Project," project financed by the WFP; and (i) the "Northern TogoAgro-forestry Development and Model Plantations Project," financed by Care International.Many of these projects operate outside public institutions and their capacity-building impact islimited

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C. THE GOVERNMENT'S SECTORAL STRATEGY

Role of Agriculture in the Economy

2.23 Agriculture occupies a critical position in the Togolese economy. It employs about 77percent of the active population and accounts for about 35 percent of GDP (its share evenreached 45 percent in 1993 as the result of the downturn in the other sectors). It is stronglyoriented toward the production of food crops, which contribute about two thirds of sectoral GDP.Livestock ranks second (15 percent) followed by cash crops (about 10 percent of GDP). Cashcrops and phosphates account for 27 percent and 34 percent of export revenues respectively. In1995, however, receipts from cotton exceeded those from phosphates for the first time. Themajority of poor people live in rural areas. The lack of development in rural areas draws youngTogolese towards the cities, where they join a fast expanding poor, urban population. Theimportance of economic growth in the agricultural sector is not only in its role in reducing ruralpoverty, but also as an essential component of social stability.

2.24 The main constraints to accelerated agricultural growth are summed up in the conclusionsof the general review of the rural sector carried out in 1992 by the Government of (NationalMeeting on Agriculture and Land Issues): (a) the services provided to farmers and livestockproducers are inadequate; (b) agronomic research is ill-adapted to the actual problems of thesector; (c) farm credit is insufficient; (d) agricultural land titles are insecure; (e) transportationand storage infrastructure is lacking; and (f) water management needs to be greatly improved.

2.25 As a first step in re-designing its agricultural growth strategy, the Government hasoutlined four principal goals: (a) intensify and diversify production to enhance food security,improve the population's nutritional balance, provide substitutes for imports and increaseexports; (b) reduce rural poverty by increasing rural productivity, employment and incomes; (c)develop agriculture within an environmentally sustainable framework; and (d) develop humanresources in the agricultural sector. Government's broad strategy to achieve these objectivesembodied in a Letter of Agricultural Development Policy (LDPA) has been provided to the Bankin November 1996 (para. 8.1 (a)). The general policies advocated in the LPDA are to: (a)complete the liberalization of trade and prices; (b) redefine the functions of the various ruralactors by restructuring public services, organizing rural society and giving farmers, in particularwomen and young producers, adequate representation in the institutions falling under MAEP; (c)guarantee access to land via land reform (the agricultural land reforms of 1974 and associatedimplementation decrees are to be reviewed and amended); (d) improve agricultural productivitywhile preserving natural resources; (e) establish a decentralized system of agricultural creditbased on cooperative savings and loan principles; and (f) professionalize technicians andproducers through training.

D. SECTORAL STRATEGY AND WORLD BANK PROGRAMS IN TOGO

2.26 Agricultural-led rural development is at the core of the Bank's Country AssistanceStrategy (CAS) for Togo. The CAS aims to promote a policy and institutional framework thatfavors private initiative and eliminates obstacles to agricultural investments, production and

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exports. The on-going Economic Recovery and Adjustment Credit (ERAC) supports importantagricultural sector reforms, notably the elimination of public monopolies in processing,marketing and exporting of cash crops. As a first step, the transfer of the marketing andexporting of cotton from OPAT to SOTOCO has just been completed. Progressive privatizationof cotton transportation implemented under the Third Cotton Project has also already permitted asubstantial decrease in transportation costs. A study is currently being carried out to define anoverall strategy for the liberalization and privatization of the cotton sector. Coffee and cocoamarketing have been liberalized in 1996. Finally, other studies have been undertaken to design astrategy for the privatization of the agricultural parastatal SONAPH.

2.27 Following the closing of the credit for the Agricultural Extension Project in 1994, there isonly one remaining IDA-funded operation in support of Togo's agricultural sector: the CottonIII Project (Cr. 1929-TO), which is supporting the development and rationalizing of cottonproduction. IDA is also the executing agency for the IFAD-funded PNPE which supports thegrowth and reorganization of small ruminant production. IFAD's assistance to Togo started in1983 with the financing of the Notse Rural Development Project and has been primarily aimed atpromoting crop intensification and diversification among smallholders, with particular emphasison food crops and small livestock development. IFAD has been supporting a policy of reducedState intervention and increased reliance on grass roots institutions. There are presently threeIFAD-financed projects under implementation: (a) PNPE (approved in 1987), (b) the Support toVillage Groups in the Eastern Savannah Region Project (approved in 1990); and (c) the VillageOrganization and Development Project (approved in 1995).

E. LESSONS LEARNED FROM THE EXPERIENCE OF THE WORLD BANK ANDOTHER DONORS

2.28 The experience of the World Bank (see also para. 2.14), IFAD and other donors in projectimplementation in Togo highlights the following lessons: (i) agricultural sector growth requiresthat Government define and implement a clear and supportive agricultural policy andinstitutional framework; (ii) while growth must be private sector-led the State has a central roleto play in ensuring adequate access of all farmers, and in particular the poorest among them, tothe basic agricultural services and rural infrastructure that are beyond the power of localcommunities and/or the market to deliver; (iii) sustained growth in agricultural production andincomes requires improvements in productivity and technical innovations that must be adapted tolocal circumstances and disseminated by a well functioning and closely collaborating researchand extension system; (iv) the continuing relevance of extension services critically hinges on acontinuous flow of technologies from research well suited to farmers' technical, financial andmanagerial abilities, and to their market opportunities; (v) given Government's budgetaryconstraints, it is desirable to move, when possible, towards the recovery of part of the cost ofdelivering basic services and maintaining infrastructure, to ensure their long-term viability; and(vi) even if these basic services must be financed by the Government, it has been unable toprovide these services efficiently in the past; they may be more efficiently delivered by non-government institutions and beneficiaries must play a leading role in their definition and qualitycontrol if they are to be relevant and efficiently delivered. These lessons, and lessons fromoperations in other countries and OED's findings and recommendations with respect to

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agricultural services, extension in particular, have been fully incorporated in the design of theproposed operation.

III. THE PROJECT

A. PROJECT OBJECTIVES AND STRATEGY

3.1 Objectives. The project's central objective is to improve living standards of farmhouseholds by increasing agricultural productivity and income, while placing greater emphasison protection of the environment. It would install and strengthen a national institutionalframework designed to upgrade the performance of agriculture and stimulate development ofOPEAs and the private sector. More specifically, the project would: (a) boost participation offarmers in the programming, management and financing of agricultural services (adaptiveresearch, extension and support for OPEAs); (b) strengthen the MAEP's sectoral policyformulation, implementation and monitoring capabilities (including agricultural statistics); (c)increase agricultural productivity by strengthening the agricultural research system to better meetfarmers' needs, placing greater emphasis on protection of the environment and integrating it moreclosely into the regional and international networks; (d) facilitate a progressive transfer of importsupply and marketing activities to OPEAs and the private sector; and (e) foster the developmentof three Saving and Credit institutions in pilot areas.

3.2 Project strategy. Implementation of the PNASA would be preceded by a preliminaryphase of restructuring of the MAEP and of the public agencies involved in direct support tofarmers. The restructuring process would concern about 4,400 staff (including 600 staff workingin different agricultural projects). After restructuring, about 2,760 agents would have beenredeployed in the four new agencies: (a) MAEP with about 1,000 staff; (b) a TechnicalAssistance and Support Institute (ICAT) in charge of national extension services with about1,350 staff; (c) a Togolese Agricultural Research Institute (ITRA), whose permanent core staffwould not exceed 260; and (d) SOTOCO, which would as part of the restructuring focus oncotton processing and marketing activities, would retain 150 extension staff dealing withlinkages with ICAT and ITRA. Redundant staff would thus amount to about 1,700 employees.Taking into account 550 retirements, about 1,250 would have to be laid off. These numbers areindicative. A detailed staff assessment is currently being carried out that would identify staff thatwould be retained/laid off. Government would provide terminated employees with a severancepayment in accordance with the law in effect at the time of termination. The timing of theselection of staff to be retained/terminated, as well as the payment of severance entitlements hasbeen agreed upon during negotiations, as part of the detailed action plan for the restructuring ofMAEP (see para. 5.2).

3.3 A Consultation and Monitoring Committee (CCS), chaired by the Minister of MAEP andcomposed of representatives of the Ministries of Planning, Public Service, Finance and State-Owned Companies, was established on January 31, 1995 by the Government to supervise therestructuring phase before the start-up of the project. A National Technical Secretariat (STN)was also set up within MAEP on January 27, 1995, to plan and coordinate the implementation of

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the restructuring activities to be completed prior to the start-up of the PNASA. The STN iscurrently receiving assistance from an Ivorian consulting firm, specialized in human resourcedevelopment which provided assistance to similar restructuring operations in C6te d'Ivoire(including staff terminations). Key activities that have been undertaken over the past 2 years aredescribed in paragraph 5.1.

3.4 During negotiations, agreement was reached that MAEP's current activities which areunrelated to its core public service functions would be transferred to private operators andOPEAs (production, processing and marketing activities: ranches, inputs, seed productionnurseries and plantations, maintenance, rural works, etc.; (para. 8.2(a), see also Annex 10,including timetable). In addition, the liquidation of SAFICC and TOGOGRAIN was adopted bythe Government as a condition of Board Presentation (para 8.3(a)).

B. SUMMARY DESCRIPTION

3.5 The project has five main components:

(a) Agricultural Services. The project would support the creation of a decentralized,autonomous, semi-private, Technical Assistance and Support Institute (ICAT)--consolidating existing governmental or parastatal extension services, appointingand retraining their best staff-- responsible for providing improved extensionservices to farmers and support to farmer organizations;

(b) Agricultural Research. The project would strengthen Togo's agricultural researchsystem by merging all existing research institutions into a newly created,decentralized, autonomous, semi-private, Togolese Agricultural Research Institute(ITRA);

(c) Agricultural Credit. The project would provide assistance to implement two pilotrural finance activities (i) grassroot savings and loans operations through selectedexisting non-governmental agricultural organizations, to test a successfulapproach for ensuring accessibility for small producers, including women, to theseessential services; and

(d) Village Development Fund: To support demand-driven small rural infrastructureat community level (funded by IFAD);

(e) Ministrv of Agriculture. Livestock and Fisheries (MAEP). The project wouldprovide assistance for the reorganization of MAEP, to build up its capacity inpolicy design, planning, programming, monitoring, control and programevaluation.

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C. DETAILED PROJECT DESCRIPTION

3.6 The project would be implemented over a five-year period. Its detailed description andimplementation arrangements are presented in Annex 1. At the end of the second year ofimplementation, an in-depth mid-term review would be carried out to assess progress and issuesin implementation, as well as its impact on beneficiaries and institutional capacity-building (seealso para. 5.9).

Restructuring of and Support to Extension Services (US$17.6 million)

3.7 The project would support the merging of the existing MAEP and SOTOCO extensionservices into a new institute: ICAT. This institute would have as its mandate the provision ofagricultural extension to all farmers as well as assistance for the establishment and strengtheningof OPEAs. It would be a semi-private company (societe d'economie mixte), with full financialand management autonomy, in which Government would have a minority share (40 percent), 10percent from SOTOCO, 5 percent from ITRA, 5 percent from private sector and farmers throughtheir OPEAs will have (40 percent). ICAT's capital would be set at CFAF 200 million, allowingeasy access to OPEAs. ICAT's operating costs would be financed in the same proportion byGovernment, through annual budget transfers, and OPEAs, through voluntary contributions fromthe primary marketing of cash crops (it is estimated that about 80 percent of all farmers aremembers of OPEAs handling cotton, coffee and/or cocoa marketing and would thereforecontribute to ICAT financing). Farmers' representatives would therefore have a dominant voicein defining ICAT's policies, programs and budgets.

3.8 ICAT's management would be decentralized. In each of its five regional directorates, itwould establish a Regional Orientation Council (ROC) to reflect farmer's concerns in workprograms and management. ROCs would have an adequate representation of all small farmers,including food crop producers and women. Agricultural extension services would be organizedaccording to STER, which is based on the Training and Visit (T&V) system adapted to Togo'sparticular circumstances. ICAT would establish contractual links with research, focusing onadaptive research programs, based on participatory farming system assessments and executedwith the effective participation of farmers in the planning, implementation and monitoring ofresearch activities. Particular attention would be given to improving the productivity of cropsproduced by the poor, in particular food crops. ICAT support to OPEAs would aim atstrengthening their financial and institutional viability, and implementing appropriate financialmanagement (including accounting) principles. The financing of Management Advisers(Conseillers de gestion), initially appointed and financed by ICAT, would be progressively takenover by individual OPEAs. Finally, ICAT would design and operate a Farmers InformationSystem to disseminate through mass media (bulletins, regular radio and TV programs) relevantinformation on technologies, production issues, plant and animal protection problems, marketingand price conditions and other relevant inforrnation on farmners' technical and economicenvirornment. ICAT's staff would be selected from existing MAEP, and SOTOCO personnel,and employed on a contractual basis. From the start of the project, they would receive intensivetraining in relevant technical and managerial skills.

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3.9 The project would finance ICAT's non-salary operating costs (on a declining basis).Government and OPEAs would finance the balance of these costs as well as 100 percent ofsalary costs from the start (see also para. 4.5). The project would also finance, equipment,limited civil works to rehabilitate ICAT's essential premises, training programs, and technicalassistance. IFAD, one of the project's co-financiers, would also contribute part (50 percent) ofOPEAs' initial contribution to ICAT's share capital.

Support to Agricultural Research (US$13.0 million)

3.10 The project would support the merging of the current agricultural research institutions(DNRA and other institutes) into a new institute: ITRA. Like ICAT, ITRA would be a semi-private company (Societe d'economie mixte), with financial and management autonomy, andwith share capital contributed 40 percent directly by Government, 10 percent by SOTOCO, 5percent by ICAT, 5 percent by the private sector and 40 percent by producers through OPEAs.ITRA's main objectives would be to implement priority research programs (crop and animalhusbandry, improved planting material, soil and water conservation, post-harvest storage andprocessing) designed in collaboration with ICAT, OPEAs (representing smallholders) and privatepartners on the basis of priority needs of farming systems in each one of Togo's main agro-ecological zones. During the first year of project implementation, ITRA, together with ICATand MAEP would undertake a detailed review of farming systems with a focus on smallholders'production possibilities and constraints, the technologies available to meet their specific needsand the priority areas to be addressed by research programs. ITRA would also play an importantrole in the training of ICAT's extension staff. Its programs would be implemented largely oncontract (with ICAT and other partners) through four Regional Agricultural Research Centers(CRAPs). Its permanent staff wouldn't exceed 260, including 50 researchers, with the possibilityof using additional staff on limited-duration contracts for implementing specific researchprograms contracted by third parties (private companies, OPEAs, NGOs).

3.11 The project would finance ITRA's non-salary operating costs (on a declining basis).Government and OPEAs would finance the balance of these costs as well as 100 percent ofsalary costs from the start (see also para. 4.5). Income would also be derived from contracts withthird parties. The project would furthermore finance the rehabilitation and equipment of ITRA'soffices and research centers, the training of staff and limited technical assistance. IFAD wouldcontribute part (50 percent) of OPEAs' initial contribution to ITRA's initial share capital.

Support to Pilot Agricultural Credit Operations (US$ 3.2 million)

3.12 The project would include a pilot program to increase savings and develop credit toagriculture; this program would support the expansion of promising operations for three existingSavings and Credit (S&C) institutions (supported by reputable NGOs) --Mutuelle Adzedzi,Caisse Rurale de Nyelle and the COOPECs -- in pilot areas. The operations and performance ofthese three S&C grassroots institutions would be backstopped and closely monitored by theRural Credit Monitoring and Evaluation Unit in MAEP. This unit would review their operatingpolicies and human resource development plans. In accordance with the new law regulatingRMFIs, their financial and prudential management as well as their annual audits will be closely

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monitored by the unit in charge of Rural and Microfinance supervision in the MEF. Thecomponent would help promote the establishment of branches for three viable grass-rootsinstitutions addressing the needs in agricultural credit, with an emphasis on small farmers, and inparticular female producers. It would contribute to expand the outreach of Togo's financialsystem and thus be complimentary to the activities of the Financial Sector Adjustment Credit(FINSAC) currently in preparation with IDA support. The project would finance the initialinvestments required for the establishment of new branches (during the first three years of projectimplementation), the training of their staff and their operating costs (on a declining basis over aperiod of three years), including annual audits, on the basis of approved annual operatingbudgets, the assistance provided by NGOs (on the basis of negotiated contracts) and the salaryand operating expenses of the component's coordinator to be recruited on a contractual basis byNGOs Rural Credit Committee. Staff of the World Bank's Africa Region financial sector clusterwill be closely involved with the supervision of this component and will be part of thesupervision team.

Pilot VDF (US$0.6 million)

3.13 The project will also support the establishment of a pilot VDF. Through matching grantarrangements this pilot will allow the establishment, in selected villages, of a fund to financecommunity-based infrastructure (schools, health posts, village marketing facilities, water supply,bottomland development) on a demand basis. The fund would have a Board of Directorscomprised of local representative of the administration officials and representatives of the localcommunity, and be managed --on the basis of operating policies and procedures includingeligibility criteria adopted by the Board-- by a manager recruited on contract by the Board.Beneficiaries would contribute to the investment costs through cash or labor, and be responsiblefor their execution within the framework of contractual arrangements with NGOs or privateentrepreneurs. The project (IFAD) would finance the matching grant element of the investmentcosts, the operating cost of the VDF managers (on a declining basis, the balance being financedby a fee on the fund turn-over) and the initial training of VDF's board members.

Support to the MAEP (US$18.2 million)

3.14 The project would support, as part of the overall public sector reform process, therefocusing of MAEP's responsibilities and operations on the definition and monitoring ofGovernment's rural development policies and strategies. The main thrust of the reorganization isto build the capacity of MAEP to deliver Government's core functions (policy-making andprovision of essential services), decentralize its activities and establish more efficient planning,budgeting and monitoring procedures. The project would in particular support: (i) thestrengthening of MAEP's policy and monitoring capacities, including essential statisticscollection and analysis; (ii) the review of its planning and budgeting process, and theimplementation of annual public expenditure reviews; and (iii) the redeployment of existingMAEP staff within the Ministry's new structure or ICAT/ITRA, and comprehensive stafftraining programs. MAEP has already prepared a proposal outlining its main responsibilities andproposed organization, including a detailed job description and skills profile for each keyposition. MAEP's proposed institutional structure is presented in Annex 5. It is currently

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carrying out a full skills gap analysis to define the required human resource developmentprogram. During negotiations, agreement was reached on a detailed and time bound action planfor each of the activities related to the restructuring of MAEP, including the completion ofseverance payments to redundant staff in accordance with Togolese law (para. 8.2 (b)). Theaction plan was adopted by the Government as a condition of Board Presentation (para. 8.3 (b)).The restructuring of MAEP and the signature of Multi-year Program Agreements for ICAT andITRA would be a condition of credit effectiveness (para. 8.4 (a) and (b)).

3.15 PNASA would improve the framework of the agricultural sector. In addition, the PrimeMinister and the Minister of MAEP have stressed the need to quickly implement a ruralinvestment program. To undertake the preparation of this program, the MAEP, together with allrural development partners, has launched a program of economic sector work to thoroughlyanalyze the growth potential in the agricultural sector. This regionalized investment programwould aim: (i) to implement a "gestion de terroir" approach; (ii) to finance small ruralinvestments requested by producers; (iii) to implement a rural land tenure pilot approach, (iv) tosupport rural community radio programs in rural areas. A detailed proposal for studies, includingterms of reference, would be prepared as part of the project's first year's annual work programand budget (see also para. 5.7).

3.16 The project would finance the rehabilitation of MAEP's essential facilities at theheadquarters and regional levels, basic office equipment, a limited number of vehicles,incremental non-salary operating costs (on a declining basis), training and technical assistance.The refinancing of the project's PPF has been considered as part of this project component.

IV. PROJECT COSTS AND FINANCING

A. PROJECT COSTS

4.1 The total cost of the project is presented in Table 4.1. Over the five-year investmentperiod, it is estimated at US$52.6 million. Of this amount, about US$21.7 million, or 41 percent,is in foreign exchange, and US$4.6 million in taxes and duties. Physical contingencies areestimated at US$3.7 million and price contingencies at US$4.0 million.

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Table 4.1: FinancingPlan by Project Expenditure Category(US$ million)

Expenditures Categories Costs Local Foreign Total % Total % ForeignCosts Costs Cost Exchange

- Civil Works 4.3 3.1 7.4 14 42- Goods and Equipment 1.4 5.8 7.2 14 81- Vehicles 4.8 5.7 10.5 20 54- Consulting Services, Studies,and Training 6.5 2.7 9.2 17 29- Social Capital 0.1 0.1 --- Operating Costs 11.9 3.2 15.0 29 21- Severance Pay 1.7 1.7 3- PPF Refinancing 0.3 1.2 1.5 3 80TOTAL 30.9 21.7 52.6 100 41

B. PROJECT FINANCING

4.2 The respective shares of the Government of Togo, OPEAs and external donors arepresented in Table 4.2 below.

Table 4.2: Summary Project Costs by Component and Financier(IUS$ million)

ICAT ITRA Institutional. Pilot Rural VDF PPF TOTALStrengthening Finance

IDA 9.2 7.0 7.6 0.9 1.5 26.2IFAD 3.9 2.1 3.1 0.6 0.3 10.0Other Donors 0.5 0.5 0.5 1.5OPEAs 1.6 1.0 2.6Government 2.4 2.4 7.0 0.4 12.2Total 17.6 13.0 18.2 1.9 0.3 1.5 52.6

4.3 Government and the beneficiaries, through their OPEAs, would respectively contributeUS$ 12.2 million equivalent (23 percent of total cost)' and US$2.4 million equivalent (5 percent)towards the total cost of the project. IDA would contribute US$26.2 million (48 percent), IFADUS$10.0 million (20 percent) and the Japanese Government, which would finance the purchaseof computers for MAEP, ICAT and ITRA (US$1.5 million, 5 percent).

Of this amount, US$1.6 million is incremental financing and US$10.5 million represents present financing forstaff salaries and other operating and investment costs. (see paras. 7.14 and 7.17).

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4.4 IFAD would contribute to the financing of all project components. In particular, it wouldfinance part of OPEAs' contribution to ICAT's and ITRA's initial share capital and the VDF.IFAD's support to the project would be conditional upon the preparation by the Government ofan Action Plan covering the first two years of project implementation and detailing the measuresand activities specifically targeted at ensuring the adequate access of the poorest segments of therural population, in particular women, who are the main target group of IFAD's assistance, to theservices provided under the project. At the end of this two-year period, a detailed mid-termreview (para. 5.9) would (i) assess the performance of implementing agencies in carrying out theAction Plan and reaching the target group; and (ii) propose, if need be, changes in approachesand design necessary to better meet project's development objectives.

4.5 As agreed at negotiations, the Government would finance (i) from the start, 100 percentof MAEP's staff salary cost and 40 percent of ICAT's and ITRA's salary costs; and (ii) anincreasing proportion (up to 40 percent after the third year of the project) of ICAT's and ITRA'snon-salary operating costs. OPEAs private sector and agro-industries would finance (i) theirshare (the balance after IFAD contribution) of ICAT's and ITRA's initial share capital; (ii) 60percent of ICAT's and ITRA's salary costs; and (iii) an increasing proportion (up to 60 percentafter the third year of project implementation) of these institutions' non-salary operating costs(para. 8.2 (c)). The IDA credit would finance all investment costs and 100 percent of non-salaryoperating costs during the first three years of the project and 50 percent thereafter.

4.6 A programming and budget meeting will be held annually at the end of August to planICAT and ITRA resources. After analyzing results and budget execution for the previous year,ICAT and ITRA will present their program for the following year, along with the resourcesneeded. After deducting the Government's share (to be included in the Finance Law) andresources provided by certain external assistance programs, the subsectoral contributions andtheir respective allocation will be determined. This meeting will be organized by theSupervisory Board/General Meeting of each company (ICAT/ITRA), represented by their Boardof Directors.

4.7 In each company, a Supervisory Board that would take on the role of a General Meetingwould oversee the Board of Directors, whose members it would appoint. The Supervisory Boardwill consist of the ministers responsible for macroeconomic management and the agriculturesector, or their representatives, the coffee, cocoa and cotton exporters involved in the operationsof ICAT and ITRA, and the presidents of the coffee, cocoa and cotton cooperatives and the otherorganized subsectors. This Supervisory Board/General Meeting will hold a regular meeting atleast once a year.

4.8 Financing from the subsectors will be provided as follows: after the annual programmingand budget meeting has determined the resources required, the amount per kilo of product will beestablished (it will not be fixed, but may vary in light of expected production volumes, the levelof complementary external assistance, etc.). Initially the cotton, coffee and cocoa exporters (laterthe system may be extended to other organized subsectors) will withhold the agreed amounts.They will then deposit them in the ICAT, ITRA and coffee/cocoa OPEA support project

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accounts. Copies of the deposit statements will be systematically sent to the appropriateadministrative departments. Oversight will be exercised via export volumes. Only after theexporters have deposited their contributions to the ICAT and ITRA accounts will exportation beauthorized.

4.9 On the Boards of Directors of ICAT and ITRA interested parties will be represented asfollows:

Government 4 Cotton industry ICoffee/cocoa exporters I Companies supplying inputs IICAT/ITRA (cross-representation) 1 Agricultural producers 5

Producers will be represented as follows: 1 per region/subsector, i.e. 1 representative for cotton,1 for coffee/cocoa, 1 for stockraising,. 1 for fisheries, and 1 for market gardening (who must be awoman). The two delegations agreed that this proposal for the representation of producers is aninterim one designed to meet a temporary situation. It will be part of ICAT's mandate from itsfirst year to inform and to train the trade organizations in all lines of production regarding thesystem of representation and its financial implications. After two years, at the mid-term review,the provisional representation of producers will be replaced by a system of representation chosenand organized by the producers themselves.

Table 4.3: Financing of ICAT and ITRA(as percentage of operating costs)

Govemnment OPEAs/Private Sector and IDAAgro-industries

Project Year Salaries Other Salaries Other Salaries Other1 40 0 60 0 0 1002 40 0 60 0 0 1003 40 0 60 0 0 1004 40 20 60 30 0 505 40 20 60 30 0 50

Post-project 40 40 60 60 0 0

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C. PROCUREMENT

4.10 All goods and civil works financed under the IDA Credit would be procured inaccordance with the Guidelines for Procurement under IBRD Loans and IDA Credits, datedJanuary 1995 (rev. In January and August 1996). All procurement of consulting services will beguided by the Guidelines for the Selection and Employment of Consultants by World BankBorrowers dated January 1997. For initial contracts to supply goods and equipment, vehicles,and civil engineering services, the MAEP's, DAF will provide its support to ICAT and ITRA.Present procurement capacity is weak and MAEP staff responsible for procurement thereforeunderwent procurement training in 1996. ICAT and ITRA staff would undergo procurementtraining during the first year of project implementation (para. 4.10 and 5.3). Procurement planand bidding documents for the first project year have been submitted to IDA (para. 8.3 (c)). Useof the Bank's standard bid documents would be mandatory. Agreement on the use of Bankprocurementprocedureswas reached during negotiations(para. 8.2 (d)). The project's procurementarrangements are shown in Table 4.4 below.

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Table 4.4: Procurement Arrangements(US$ million equivalent)

Procurement Method

Procurement ICB NCB Other NBF'/ TotalArrangement

Civil Works 1.3 2.9 3.2 7.4of which IDA (1.2) (2.5) (3.7)

IFAD | (2.6) (2.6)Goods and equipment 1.6 0.8 0.8 4.0 7.2of which IDA (1.5) (0.7) (0.7) (2.9)

IFAD (2.4) (2.4)Vehicles 5.5 1.9 3.1 10.5of which IDA (5.0) (1.7) (6.7)

IFAD (1.1) (1.1)Consultant Services, Studies 4.6 4.6 9.2and Trainingof which IDA (4.6) (4.6)

IFAD (1.6) (1.6)Operating Costs 8.3 6.7 15.0of which IDA (6.8) (6.8)

IFAD (2.2) (2.2)Social Capital 0.1 0.1of which IDA

IFAD (0.1) (0. 1)Severance Pay 1.7 1.7of which IDA (0.0)

IFAD (0.0)Refinancing of PPF 1.5 1.5of which IDA (1.5) (1.5)

IFAD (0.0)Total 8.4 5.6 15.2 23.4 52.6of which IDA (7.7) (4.9) (13.6) (26.2)

IFAD (10.0) (10.0)* Figures may not add up due to rounding off.

4.11 Contracts for vehicles, goods and equipment would be grouped by lots. All lots valuedat more than US$150,000 would be procured using International Competitive Bidding (ICB)procedures and contracts from US$50,000 to US$150,000 using National Competitive Bidding(NCB) procedures. Contracts estimated to cost less than US$50,000, but more than US$35,000may be procured using international shopping and contracts of less than US$35,000 may be

2 Figures in parenthesis indicate IDA and IFAD share of financing. Numbers may not add up due to rounding.

2/ Not Bank-Financed

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procured using national shopping procedures. All laboratory equipment for ITRA costing lessthan US$50,000 may be procured using international shopping procedures. For all national andinternational shopping, at least three price quotations should be obtained for comparison. Theaggregate value is expected not to exceed US$0.7 million during the life of the project. Allcontracts for goods and works equivalent to US$150,000 or more would be subject to the Banksprior review. For all contracts not subject to prior review, all pertinent documentation would bekept by the agency responsible for the procurement (MAEP, ICAT and ITRA) for review by theauditors and Bank supervision missions.

4.12 Contracts for civil works. The contract to rebuild MAEP, estimated to costapproximately US$1.3 million, would be procured through ICB. Other contracts forrehabilitation and maintenance of regional and local offices, usually not exceeding US$20,000for each contract aggregating not more than US$2.5 million during the life of the project, wouldbe procured under NCB, using national procedures acceptable to the Bank. These works arescattered over the country and are not expected to attract foreign firms. However, they would beallowed to bid, if they wish.

4.13 Contracts for technical assistance, studies and training. The project would notfinance long-term expatriate technical assistance. Consultant services on a short-term basiswould be procured from local or international firms. The majority of the contracts will be basedon Quality and Cost Based Selection (QCBS) procedures. The project will also employ non-QCBS procedures as follows: (a) Fixed Budget for less than $50,000; (b)Consultants'Qualifications, less than $20,000 for individuals and less than $50,000 for firms; (c)Single Source for less than $20,000 for individuals, and less then $50,000 for firms (subject toBank approval); and (d) Selection of Individual Consultants according to section 5 of theguidelines. All consultant contracts with firms, estimated to cost more than US$30,000equivalent, including amendments and extensions, and with individual consultants, estimated tocost more than US$10,000, would be subject to IDA's prior review. All terms of reference forindividual consultants and sole source contracts, regardless of the amount of the contract, wouldbe subject to IDA's prior review.

4.14 Monitoring of contracts. A team in the MAEP would provide support to ICAT andITRA in preparing the first set of draft contracts. During the first year of the project all contractswould be followed-up by this team. Training for ICAT and ITRA staff would be organizedduring the first year of the project. DAF of MAEP, ICAT, and ITRA, together with the financialadministrator of the credit component, would set up, and keep up to date at all times, acomputerized data base for monitoring project procurement contracts. A contract statusstatement for each project component would be a mandatory part of the progress report submittedto IDA two weeks prior to each half-yearly supervision mission. Component contract managerswould be invited to take part in the technical training sessions regularly organized by the WorldBank for the benefit of the subregion. The expenses involved would be eligible for inclusion asproject costs.

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D. DISBURSEMENTS

4.15 The proposed disbursement by category are shown in table 4.5 below. Disbursementpercentages are relatively low for several categories because IFAD is co-financing theseexpenditures with IDA.

Table 4.5: Disbursements by Category

Amounts Financed by IDA(US$ (%)

million)

1. Civilworks 3.5 50% Foreign4

45% Local

2. Goods and Equipment 2.5 60% Foreign(except computers)3 45% Local

3. Vehicles 6.0 75% Foreign70% Local

4. Consultant Services, 4.2 60% Foreign exp.Studies and Training

5. Operating Costs 6.0 70% up to July 1, 2000 and 35%thereafter

6. Refinancing of PPF 1.5

7. Unallocated 2.5

TOTAL 26.2

4.16 To facilitate project implementation, the Government would open three Special Accounts,benefiting respectively MAEP, ICAT and ITRA, in the arnount of CFAF 250 million(US$500,000 equivalent) each, at a local commercial bank on terns and conditions acceptable toIDA. Agreement on this was reached during negotiations (para. 8.2 (e)). Activities plannedunder the Pilot Rural Finance Operations component would be supported through the MAEPspecial account. Upon effectiveness of the Credit, an aggregate amount of CFAF 175 million(equivalent to US$350,000) would be deposited in these Special Accounts. This amount would

3 Provided by the Japanese Government

4 The percentage is based on the without price taxes. Precision conceming the percentage of taxes on civil works would be provided by

Togolese representatives during negotiations.

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be increased to the authorized amount of the Special Accounts when cumulative disbursementsreach the equivalent of SDR 1.5 million. The Special Accounts would be replenished on amonthly basis or when the total of incurred expenditures reach one third of the total authorizedallocation of the respective Special Account. The Borrower would be permitted to submitwithdrawal applications on the basis of Statement of Expenditure (SOEs) for contracts for theprocurement of goods below the equivalent of US$50,000 and for services below the equivalentof US$50,000 for firms and US$20,000 for individual consultants. The invoices and relateddocumentation for claims submitted on the basis of SOEs would be kept at the projectcoordination office for review by IDA supervision missions and independent auditors. Allwithdrawals for contracts and expenditure above these thresholds would be submitted to IDAwith full documentation.

4.17 In addition to the Special Accounts, project accounts would be set up for ICAT andITRA. The Government would deposit its share of funding in these accounts. As part of its firstyear's funding of ICAT and ITRA's work program, Government, as a condition foreffectiveness, would make an initial deposit in the amount of CFAF 490 million for ICAT andCFAF 350 million for ITRA, representing salaries for six months, in the project accounts (para.8.4 (d)). Procedures for transfer of funds to ICAT and ITRA and for financial control wereagreed upon at negotiations (para. 8.2 (g)). Quarterly deposits would be due for ICAT andITRA. Failure to adhere to the quarterly deposit schedule would be treated as a cause forsuspension of disbursements by IDA. The timing and size of these deposits would be reviewed

'annually as part of the annual work program and budgets (para. 5.7). The timing of the initialdeposits was defined in the action plan for the restructuring of MAEP and the creation of ICATand ITRA (para. 5.2) and agreed upon during negotiations (para. 8.2 (f)).

E. ACCOUNTING, FINANCIAL REPORTS, AND AUDITS

Financial Management and Accounting

4.18 The restructured MAEP, ICAT and ITRA would each keep their own accounts. MAEPwould only keep Project accounts accounting, including specific accounts covering its SpecialAccount and Statements of Expenses (SOEs). ICAT's and ITRA's accounting would cover theirrespective Operating costs, Project accounts, Special account and SOEs. Financial managementat MAEP is presently weak, while ICAT and ITRA, as newly created institutions, have no trackrecord in financial management. The restructured MAEP, ICAT and ITRA, would, therefore, putin place appropriate accounting procedures and computerized financial management systems,acceptable to the Bank, with the support of an accounting firm. After installation of thecomputerized system, the accounting firm would maintain the accounts for a period of sixmonths, while selected staff from DAF (MAEP), and the financial and administrative divisionsof ICAT and ITRA, would undergo intensive and hands-on training in the use of the system andthe accounting procedures. After the initial training, timely short-term assistance would beprovided to: (a) review adherence to the accounting procedures and quality of data entry; and (b)give refresher training. The quality of the financial management systems and eventual corrective

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actions would be assessed as part of the annual audits (see para. 4.15). Agreement on thesearrangements and their timing was obtained at negotiations (para. 8.2 (h)).

4.19 The accounts would be kept in accordance with internationally accepted accountingprinciples and with practices acceptable to IDA. Agreement on this was reached duringnegotiations (para. 8.2 (i)). They would be expected to produce interim and annual financialstatements.

Budgeting

4.20 At least four months prior to the start of each fiscal year MAEP, ICAT and ITRA wouldsubmit annual budgetary projections for approval by the Project Management. The presentatibnof annual Budgets would follow the accounting plan retained for each of the three Projectexecuting agencies. MAEP, ICAT and ITRA would submit these Budgets for IDA's review andcomment no later than three months prior to the start of each fiscal year. Agreement on this hasbeen reached at negotiations.

Auditing

4.21 All project and operating accounts, special accounts, Statements of Expenses (SOE) andvoucher documentation would be audited once a year by an independent audit firm acceptable toIDA. Annual audit reports would include the auditors' findings on the management andreliability of the Special accounts and on the reliability of withdrawal applications submitted onthe basis of SOEs. They should also indicate whether reported expenditures on goods suppliedand services rendered are eligible for financing under the IDA Credit and state whether suchgoods and services appear to have been used for project purposes. Furthermore, the audit reportsshould assess the validity of the procedures and internal control mechanisms in place, andinclude proposals for their improvement (see also para. 4.14). Terms of reference and auditreports would be mandatorily reviewed by IDA. Certified copies of the audit reports would besubmitted to the Finance Ministry, MAEP, and IDA within six months of each fiscal year'sclosing dates. Assurances concening these audit procedures was provided during negotiations(para. 8.2 (j)). Appointment of an audit firm acceptable to the Bank was agreed duringnegotiations The supervision mission following the receipt of an audit report would arrange aworking meeting attended by representatives of MAEP, MEF and Civil Service Ministry, theexecuting agency concerned, the audit firm, and the World Bank to discuss the report and agreeon a plan of action to rectify any problems identified.

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V. PROJECT ORGANIZATION AND IMPLEMENTATION

A. PROJECT MANAGEMENT AND CRITICAL STEPS

Pre-implementation phase

5.1 The CCS established under the terms of an Interministerial Order dated January 31, 1995,and the STN, established within MAEP in January 1995, are currently in charge of the designand implementation of the proposed institutional restructuring program (para 3.3). Thefollowing critical actions, needed to establish the desired institutional structure before the properproject is launched, are presently underway:

(a) preselection of appointees to managerial positions in the newly organized entities(recruitment drives, both public and among former managers; job announcements via theusual media). Listing of to-be-abolishedjob positions, and computation of severance rights;

(b) planning for civil service staff transfers to the new MAEP with support from the sameconsulting firm; and

(c) selection of OPEAs to be ICAT and ITRA shareholders;

Project Implementation

5.2 The details of project implementation are presented in the Project's Implementation Plan,which was prepared during appraisal and approved at negotiations (para. 8.2 (k)). At the nationallevel, leadership and guidance would be provided by the CCS already set-up by Government(para 3.3). The secretary general of MAEP for the support to MAEP component; ICAT andITRA managing directors for these two components respectively, and the coordinator recruitedby the NGO committee would manage the financial aspects of the pilot rural finance component.A proposal concerning the statutes of MAEP, ICAT, and ITRA including job descriptions forkey positions in MAEP, ICAT, and ITRA was submitted to the Bank before negotiations (8.1 (b)and (c)).

5.3 Training. Implementation of the training plan would begin as soon as the project islaunched. The first staff to be trained would be the financial officers, and senior and mid-levelexecutives of ICAT, ITRA and MAEP. Country-wide coordination of training activities wouldbe the responsibility of MAEP's newly organized Directorate of Training, in close cooperationwith the human resources management staff of ICAT and ITRA. The Directorate's specificresponsibilities would be to: (a) compile comprehensive qualitative and quantitative data ontraining supply and demand; (b) centralize (and have available to users) the findings of themonitoring and evaluation divisions of the Human Resources Units of the two institutes (ICAT,ITRA); (c) keep up-to-date records on individual employees' training history so that the most

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effective use can be made of available know-how; and (d) provide orientation, advice, andsupport in the realm of teaching for all training instructors.

5.4 Technical Assistance. It is estimated that 96 person-months of specialist assistance andconsulting would be needed to help implement the project, including 31 months of internationalexpertise. Most of this assistance would support training activities, in the fonn of instructionalmodules to be delivered in Togo (10 months of services from international specialists and 63months from local institutions to adjust the existing training module to present needs).

Monitoring, Evaluation and Reporting

5.5 Each component would have its specific monitoring and evaluation arrangements to trackachievement of the performance indicators listed in Annexes 8 and 9. For the purpose of impa't/development evaluation, indicators have been developed for overall goals and production andinstitutional objectives. Monitoring indicators (input, process, output) include detailed,quantitatively measurable targets and financial performance gauges of the project and the unitsassisted by it. The project performance criteria in Annexes 8 and 9 were approved by theGovernment and IDA during negotiations (para. 8.2(1)). Under the supervision of the director ofeach institution concerned, the monitoring and evaluation process would include semi-annualmeetings to review work programs and adjust operating plans where this is necessary to ensurethat goals can be achieved. To facilitate evaluation of project impact, a base-line survey wasstarted during the latter part of 1996 and will be completed before mid-1997 and beneficiariessurvey would be carried out every year.

5.6 The private sector technical cluster of the Africa Region will be closely associated withthe implementation of the Agriculture Finance component of this project. Specifically staff of thefinancial sector cluster in AFTP1 will be part of the supervision team. The objective is to ensurethat the national agricultural credit policy will be developed jointly with the MEF and will fitwith the national rural and microfinance policy under preparation under the FINSAC.

5.7 The program-budgets for the various project components would be combined into aglobal annual work plan and budget for the entire project. These would be reviewed by IDA forno-objection during the mandatorily scheduled supervision missions each year in October.Considering the special objectives of the project regarding rural poor, particular attention wouldbe given to detailed activities targeted at the rural poor and to tracking project's performance inthis area. Agreement on timing and scope of the work prograns and budgets was reached duringnegotiations (para. 8.2 (m)).

5.8 Half-yearly reports to the Government and IDA covering all project components wouldbe required, covering: (a) the current implementation status (institutions, budget, procurement);and (b) project impact on quality of agricultural services, on agricultural production, and onfarmers' standard of living, particularly on women and youth. This documentation wouldprovide the basis for the work of supervision missions and the mid-term review team.Agreement on the submission of these reports was agreed during negotiations (para. 8.2 (n)).

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5.9 After two years, a mid-tern project review mission by representatives of IDA and theother donors would join with the Togolese authorities to evaluate the achievements up to thatpoint. Close attention would be paid to the overall implementation and impact of the two-year"Pro-poor" Action Plan and to the financing arrangements that support the agencies targeted bythe project, particularly the flow of contributions from their beneficiaries (see Annex 11). Thetenrs of reference for the mid-term review were approved during negotiations (para. 8.2(o)). Atthe end of the project, an implementation completion report would be prepared, (before sixmonths, after the end of the project), basing the findings on the development and performanceindicators to be agreed with the Government. Agreement on the preparation of theimplementation completion report and its contents was reached during negotiations (para. 8.2(p)).

VI. PROJECT ECONOMIC ANALYSIS

A. CURRENT AND POTENTIAL YIELDS

6.1 Togo shares many attributes of subsistence production characteristic of sub-SaharanAfrica: crop yields are below their agronomic potential, and the growth in food output is largelyfrom area expansion rather than through intensification. Low soil productivity, itinerant rainfalland low levels of technologies are the fundamental constraints to increased productivity. Thetraditional farming methods of alternating slash-bum accelerate loss of soil organic matter,resulting in rapid oxidation of inherent soil nutrients. Use of chemical fertilizer, which is neededto restore soil integrity, is suboptimal and confined largely to the export crop subsector. Only anestimated 15 percent of Togo's total cultivated area benefit directly from fertilizer use of anykind. The use of farm yard manure is not widespread and is largely concentrated in the Kara andSavanes Regions.

Project Interventions

6.2 The project would support structural realignment and institutional strengthening ofMAEP, ICAT and ITRA to enable these institutions to accelerate the process of technologydevelopment, testing and dissemination to increase productivity of smallholders, the latter beingfully involved in all stages of this process. The major crops that would be promoted are shownin Table 6.1 below:

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Table 6.1: Selected Food Crop Varieties and their Yield Potentials (kg/ha)

On-Station Demonstration On-Farm Farmer Yield Difference:Variety Plots Trials Fields Farmer Fields vs.

On-Farm Trials(%)

Maize:Pool 16 SR 4,300 3,691 2,912 1,210 58

Rice:ITA 212 5,500 4,574 3,532 2,054 42

Cassava:TMS 30574 22,000 20,860 21,360 9,934 54

CowpeasIT 82 E 1,537 1,106 733 360 51

Groundnut73-33 3,273 1,432 - 762 47

YamBrutani 25,000 - 13,800 10,313 25

Source: Direction de la Vulgarisation Agricole, MAEP.

B. ESTIMATING FARM-LEVEL BENEFITS AND COSTS

Input and Output Markets

6.3 Input Markets. Input markets, especially for fertilizer and farm chemicals, aredominated by the large agricultural parastatals that provide inputs, including credit, directly tocash crop producers. Recent economic reforms have helped to liberalize domestic marketing ofinputs and to provide an enabling environment for expanded private sector participation. Theprocurement and distribution of fertilizer is still dominated by SOTOCO, SAFICC, and thefertilizer procurement agency within MAEP. In the past, SOTOCO has relied on the governmentphosphate monopoly, OTP, to procure fertilizer for use in the cotton subsector. SOTOCO takesdelivery of these inputs at the port, and transports them to regional warehouses, from where theyare distributed to farmers. Under the proposed liberalization of internal markets, the projectwould gradually, but strongly support the development of village-level institutions (farmerassociations, cooperatives and women and youth groups) to handle the distribution of fertilizer tofarmers. For cocoa and coffee, the collapse of the rural credit system has led to serious problemsin SAFICC's efforts to supply inputs to farmers, and many of them have resorted to the openmarket for these inputs.

6.4 Output Markets. Food crop markets are generally competitive in Togo; they arecharacterized by numerous small traders and limited government intervention. The inefficientgovernment food crop sector parastatal, TOGOGRAIN, which has operated for nearly twodecades and whose functions have been limited to procuring about 12,000 MT of grains annuallyas security stock, will be dissolved (see also paras. 2.20 and 3.4). The marketing of food crops is

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dominated by women, but the relatively underdeveloped rural infrastructure network and post-harvest processing and storage facilities contribute to seasonal price variations in rural markets.Marketing of cotton, cocoa and coffee was, until recently, controlled by the parastatal OPAT.Under OPAT, there was heavy implicit taxation of export crop producers, with producer priceskept as low as one third of the world market price. The net effect of these policies was a hugecash surplus for the monopolist: in 1980, for example, OPAT contributed 10 percent of totalgovernment revenue. Between 1983 and 1987, and as a result of measures introduced under thestructural adjustrnent programs, the price of coffee, cocoa and cotton increased in real terms by29, 20, and 25 percent, respectively. From 1988 onwards, government adopted a policy to makethe producer price of export crops more responsive to world market signals, with an announcedindicative floor price, and supplemental transfers to producers based on the actual world marketprice that prevailed during the year. Under recent reforms, the export of cash crops has beenliberalized and since 1996 the internal marketing of coffee and cocoa has been liberalized.

6.5 Prices. Financial and economic prices of inputs and outputs are in Annex 3. Financialprices are based on first quarter 1996. All output prices are average annual farmgate pricesreceived by producers. The financial price of fertilizer is based on prices paid by fanners forthese inputs to the major parastatals. Import parity prices were calculated for all tradables. Forall non-tradables, a standard conversion factor (SCF) of 0.8 was used to convert financial pricesto economic values. The daily wage paid during first quarter 1996 was estimated at CFAF 750per day for the food crop sector; it is higher for export crops, averaging about CFAF 1,200 per

'day. The price of urea, the most common fertilizer used on food crops, was estimated at CFAF125 /kg or CFAF 6,250 per 50-kg bag. This compares to its economic price of CFAF 153 per kgor 7,650 per 50-kg bag, reflecting a subsidy element received by farmers linked to the parastatals.Given Togo's geography, calculation of economic prices was referenced on three majorproduction centers in order to fully account for differences in transport costs - Lome, for theSouth, Sokode, for the Central, and Mango, for the Savannah North. The cost of intrastatetransport of inputs to these major centers was provided by SOTOCO.

Farm Budgets

6.6 Financial budgets.5 Farm budgets (per ha) were estimated for main food and exportcrops. The farm budgets were based on conservative yield estimates (details are in theImplementation Manual). Labor use was adjusted to reflect differences in technical requirementsbetween traditional and improved farming systems for some activities, such as weeding andharvesting. Overall, farm budgets showed that the adoption of improved technologies would befinancially profitable for smallholders. The average returns to farm household (in CFAFIha)typically exceeded the rural wage of CFAF 750 per day for food crops and CFAF 1,200 per dayfor export crops. These returns were higher for the export crop sector, ranging between CFAF2,500 to 5,500 per day (Table 6.2).

s Detailed financial budgets for individual crops are in the Working Paper

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66.7 Economic budgets The impact of the adoption of improved varieties was also assessedusing the economic prices estimated for inputs and outputs, including the economic opportunitycost of farm labor. They include benefit-cost ratios, based on the opportunity costs of farm labor,and the benefit-cost ratios that take into account the economic costs of all inputs. Theseestimates are also in Table 6.2. The benefit-cost ratios for all crops exceeded unity, indicatingthat economic returns from adopting these technologies in traditional farming systems wouldmore than offset the invested resources. Benefit-cost ratios were, in general, higher for cashcrops, followed by cereals, and by roots and tuber crops. The lowest benefit-cost ratio was forcowpea, reflecting both the underdeveloped research for this crop, its low yields, and the highpostharvest losses caused by insect pests.

Table 6.2: Summary of Financial Returns and Economic Impact of Improved Technologies.

Benefit-Cost RatiosIncremental Returns (Financial) (Economic terms)

Per Ha Non-labor InputsCrop (CFAF/HA) (CFAF/HA) Labor All CostsCereals

Maize 65,327 92,972 4.0 2.4Rice 80,040 61,301 5.8 2.3

Root andTubers

Cassava 148,800 143,200 3.2 2.9Yam 141,600 115,475 2.7 1.8

LegumesCowpea 121,000 73,775 3.5 1.5Groundnut 58,771 32,646 1.4 0.9

Export CropsCotton 253,885 225,629 9.0 5.5Cocoa 375,211 540,575 6.3 5.4Coffee 580,255 966,380 4.5 1 4.4

C. PROJECT,ECONOMIC VIABILITY.

6.8 Based on projections of the crop area that would be impacted by extension servicesannually, the economic budgets were aggregated to estimate the project's overall Economic Rateof Return (ERR). The estimation was based on the following assumptions: (a) a project life of20 years, commencing in mid-1997, with a one year lag for the accrual of benefits; (b) aninvestment period of five years; (c) an opportunity cost of capital of 12 percent; (d) all prices inconstant 1996 values; and (e) incremental output to come from the adoption of improvedvarieties and management practices for food and cash crops. Although the project would impact

6 Details of economic budgets are in the Working Paper

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on the livestock sector, estimation of economic returns focused primarily on food and cash crops.These two subsectors account for nearly 75 percent of agricultural GDP, with fisheries, livestockand hunting accounting for the remainder. Based on these assumptions, the project economicrate of return (ERR) was estimated at 21.3 percent with a net present value (NPV) of CFAF9,787 million.

VII. BENEFITS AND RISKS

A. BENEFITS

Direct Project Benefits

7.1 Direct project benefits would be: (a) increased productivity of traditional farmingsystems; (b) increased farm incomes; and (c) increased efficiency of research and extensionmanagement through the restructuring of MAEP, ICAT and ITRA.

7.2 Increased productivity. The project would strengthen the national agricultural researchand extension systems, resulting in increased productivity of traditional farming systems. Thetesting, selection, dissemination and adoption of improved varieties and management practiceswould increase yields of poor farmers, resulting in higher food output for both householdconsumption and markets. Yields of the major cereals, maize and rice, would increase by 112and 100 percent, respectively on farmers' fields by the end of the project. The yield ofleguminous crops, such as cowpea, would also nearly double under farmers' conditions,compared to the current yield of 450 kg per ha for traditional varieties. Farmers in the cash cropsubsector (cotton, cocoa, and coffee) are expected to benefit even more, from higher output.Overall, an estimated incremental 54,900 tons of maize and 7,000 tons of rice would beproduced annually at full implementation. The estimated incremental output of cassava and yamwould be about 94,970 and 31,730 tons (fresh tuber weight) per annum, respectively. Theaverage returns to farm families producing these crops would be about twice the existing ruralwage rate of CFAF 750 per day.

7.3 Increased incomes. The project would lead to increased incomes for farmers from thesale of marketable surpluses, both to the domestic markets and for exports. The liberalization ofinternal marketing of cash crops, in particular, would benefit farmers who would receive anincreasingly higher share of world market prices. Strengthened OPEAs would permit farmers tohave better and low price access to various markets due to economies of scale in marketing.OPEAs would also permit farmers to have ready access to cash as part of the trading benefit thatwould accrue to them as members of the cooperative. Given the concentration of poverty inTogo's rural areas, the impact of increased farm incomes would have a direct, positive impact onthe farmers, providing them with greater flexibility in consumption decisions.

7.4 Efficient management of research and extension. The project would lead to increasedefficiency in the delivery of research and extension services to beneficiaries through theestablishment of ICAT and ITRA. The measures that would be undertaken, including the semi-

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privatization of agricultural services would, through training and better incentives, lead toimproved services to farmers. Efficiency gains would be realized in terms of: (a) cost-effectiveness of extension; (b) frequency of field visits; (c) diversity of improved packages forfarmers; and (d) a pool of better trained and motivated extension staff. The strengthening of thecentral implementation unit, MAEP, and the research and extension systems would provideimproved capacity for effective management of research and extension in terms of betterplanning, priority setting, and policy formulation.

Indirect Benefits

7.5 Indirect project benefits would be: (a) improved food security and nutritional status; (b)human resource and institutional development; and (c) creation of an enabling environment forsustainable agriculture development (due to policy measures initiated under the ERAC and to bemonitored under the project).

7.6 Improved Food Security. The improved crop varieties and management practicespromoted under the project would increase the productivity of traditional farming systems,resulting in increased food production, which is essential for food security. Increasing theavailability and diversity of basic food supplies is essential for reducing poverty and increasinghousehold nutritional status. Food security would also be enhanced through the incomes thatfarmers would earn from marketing surplus production, thereby empowering them to purchasefood during the lean periods of the rainy season.

7.7 Human Resources and Institutional Development. In addition to the physicalinfrastructure, the project would train both front-line extension and research staff, includingsubject matter specialists. Training of ICAT and ITRA personnel would be complemented byenhanced capacity building within MAEP for sector policy formulation and for monitoring andevaluation of agricultural projects' impact. Capacity development within MAEP will includestrengthening capacity for the provision of market information to farmers (especially for exportcrops) and for standardization and quality control of cocoa, coffee and cotton.

7.8 Enabling Policy Environment for Agriculture. The policy measures that would besupported under the project, for example, the liberalization of input and output markets, wouldprovide an enabling environment for private sector participation in agriculture development,which is essential for sustainable sector growth. In particular, the involvement of farmersorganizations in setting research and extension policies and- priorities would broaden thedecision-making process of agricultural development. Farmer organizations would alsoparticipate in the marketing of inputs at the farm-level, gradually taking over the roles currentlyplayed by the key parastatals, SOTOCO and SAFICC.

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B. PROJECT RISKS

Quantifiable risks

7.9 Quantifiable project risks are as follows: (a) input price risks due, for example, to anincrease in the rural wage or increase in the price of purchased inputs, notably fertilizer as aresult of ongoing or planned liberalization; (b) output price risks, which may occur due to a fallin the world price of Togo's primary export crops (cotton, cocoa and coffee) or through pricediscounts that may be caused by lower quality of exports as a result of the liberalization ofexport marketing. For these risks, sensitivity analyses were used to determine the impact ofthese changes on the overall economic viability of the project, and switching values calculated todetermine the magnitude of the change required in each of these variables to make the projectchange from being economically viable to unviable.

7.10 An additional risk results from the major organizational changes supported by the projectand the potential delays linked to the tight timetable to implement these. This risk will bereduced by the requirements that key personnel for the new or reorganized units be selected on acompetitive basis and that the supporting finances are available on time. The effect of thepotential delay in this respect is presented in Table 7.1.

7.11 Sensitivity Analysis. Results of the sensitivity analysis are summarized below. Theyshow that the project's NPV is quite robust to wide shifts in input and output prices. However,depressed food crop prices would affect project viability; a 20 percent reduction in food cropprices would reduce the NPV by nearly 50 percent while, from the switching value estimated, a50 percent reduction in food crop prices would render the project economically unviable. A 20percent increase in the rural wage rate or a similar increase in fertilizer price would have noperceptible impact on project viability. While labor is the most binding constraint, some of theimproved management methods for weed control and integrated pest management require lesslabor input. Similarly, fertilizer use at the farm-level is still low and farmers would typically notapply the recommended dosage, but would cut back on use if prices were to increase.

Non-quantifiable Risks

7.12 The main non-quantifiable project risks are: (a) political instability; (b) inadequatecounterpart funding; (c) inability of the OPEAs to contribute to ICAT and ITRA; and (d) lower-than-expected adoption rates. For these risks, the approach used was to explain the nature of therisk, assess the likely impact on the project, assign a subjective probability as to its likelyoccurrence based on field experience and views of sector officials, and recommend mitigationmeasures to minimize these risks (Table 7.2)

7.13 Political instability. In Togo, a renewal of political unrest would directly affect theattainment of project objectives. Depending on the degree of instability, it may lead tocontraction of staff, reduced supervision, or at the extreme, project closure. The key interventionis for the main donors to continue the reform dialogue with the government. It is also expectedthat recent reforms that are being put into place to help restore macroeconomic stability may also

- 36 -

translate into some measure of political stability as the economy expands and jobs are createdand new opportunities are opened to the unemployed.

7.14 Counterpart funds. While Borrower's incremental contribution to project costs is low(about US$7.6 million over five years, excluding duties and taxes), there is a low real risk thatproject implementation delays may occur due to inadequate counterpart funding. Therationalization of government expenditures, which is currently underway, would help to improveexpenditure programming and introduce greater transparency in the budget process. Animportant step in minimizing this risk is continuation of the current reform agenda and theinstitutional strengthening within MEF. An important part of this process is to provide a regularand advance notice to government of counterpart fund requirements that will come due duringthe year. An appropriate forum for this would be the annual CPPR and supervision missions.

7.15 Contribution from the OPEAs. Under the project, OPEAs are expected to contribute ashare of the recurrent expenditures of ICAT and ITRA. However, there is the risk that the actualannual contribution may be affected by changes in market conditions, such as a fall in the priceof export and/or food crops. The associated risk can be minimized by (a) clearly stating theinstitutional mechanism and the procedures by which the transfer between the OPEAs and ITRAand ICAT would be effected; (b) educating member associations (a process that is alreadyunderway); and (c) providing a fall-back arrangement, such as through the EU-funded STABEX,for keeping funding at optimal levels in the event of low crop prices.

7.16 Lower-than-expected yields. The risks of lower-than-expected yields can be minimizedwith adequate logistics to front-line extension staff, and increased efficiency of dissemination,including a defined menu of technologies and target farmer groups. Monitorable indicatorsunder the project, which would be reviewed periodically during implementation (supervisionsand project mid-term review), may help to reduce this risk.

-37 -

Table 7.1: Non-quantifiable Project Risks and Mitigation Measures

Risk Factor Likely Impact Probability Mitigatory Measures Time Frame(a) Political Project Medium-to- Maintain policy Continuous; IDA,Instability implementation high dialogue and increased CFD, other

delayed or made probability. donor monitoring may donors.impossible due to help.renewed civilunrest.

(b) Inadequate Project objectives Medium Better budgetary Continuous; IDA,Counterpart delayed or not met; probability programming and IMF, TogoFunding project costs given country transparency; Country Team.

increased due to experience and continuedimplementation resource implementation ofdelays. scarcity. reforms to increase

fiscal accountabilityand transparency;annual dialogue(CPPR, SIR).

(c) Inadequate Inefficient The Clearly define ThroughoutOPEAs extension and probability of mechanisms for project life.Contribution research services this occurring beneficiary (MAEP/ICAT/IT

may result if is low-to- contribution; educate RA)private agents medium for OPEAs (underway) and(OPEAs) do not cash crop strengthen theirpay expected share producers, but capacity to implementof recurrent costs higher for food this task.in a timely crop farmers.manner; inefficientextension mayresult.

(d) Lower- Lower benefits Medium Sensitivity analysis of Throughoutthan-Expected than used in probability, but project benefits; project life;Adoption estimating project impact on Provide logistics and MAEP/Task

ERR; lower project is high incentives to extension; Manager.impact. if this risk increase number and

materializes. quality of extension;Regular monitoringthrough SPNs andMTR.

- 38 -

C. FISCAL BURDEN OF THE PROJECT ON THE BORROWER

7.17 The total government public investment program (PIP) for the three-year rolling plan isestimated at US$269.4 million, of which agriculture and rural development would account forUS$36.2 million (13.4 percent). Of this amount, the government would contribute about US$2.3million over the next three years, with donors providing the balance. Based on PIP estimates, thegovernment would contribute US$0.5 million to agriculture and rural development in 1996,US$1.0 million in 1997 and US$0.8 million in 1998, or a total of US$2.3 million over the threeyear period. Total incremental counterpart funding required under the project is estimated atUS$12.2 million (US$4.6 million excluding duties and taxes, see footnote 3 para. 4.3). With theproject, government's commitments would increase to US$0.78 million in 1996, US$1.28million in 1997, and US$1.08 million in 1998, indicating an increase of 56, 28 and 35 percentrespectively of the initial allocations for agriculture and rural development (Table 7.2).

Table 7.2: Fiscal Impact of Project on 3-Year Public Investment Program.1997 1998 1999

Without Project (US$ million):Total Annual PIP 75.4 90.0 104.0Of which, Agriculture and Rural Development. 10.4 12.4 13.4Agriculture Share of PIP (%) 13.8 13.8 12.9Government Contribution to Agriculture 0.5 1.0 0.8

With Project (US$ million):Annual Counterpart Funds (excluding duties and 0.28 0.28 0.28taxes) (a)Agriculture share of PIP with Project (US$ million) 14.08 14.08 13.18Revised Govt. Contribution to Agriculture US$ million) 0.78 1.28 1.08

Increase in Fiscal Burden in Agricultural Sector (%) 2.0 2.0 7.0Note: only. The increase in fiscal burden shows the percent increase in current commitments foragriculture and rural development due to the project.

(a) Assuming that counterpart funds are evenly distributed over the project life.Source: Mission estimates.

7.18 The increased financial burden under the project has been kept to a minimum, given theadverse economic conditions in the Borrower's country. Most of the recurrent expenditureswould be met by donors, including IFAD, Government of Japan and UNDP. However, thefollowing factors, which are built into the project, would also help ensure that government'scapacity to contribute this amount is not affected: (a) the project would rationalize the civilservice in agriculture, and the staff reductions envisaged would lead to reduced governmentexpenditures and savings; (b) OPEAs would contribute a share of recurrent expenditures for

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research and extension, freeing off government resources; (c) restructuring parastatals in theexport crop sector would lead to efficiency gains and cost savings, and less drain on publicresources; and (d) institutional strengthening efforts currently underway would introduce greatertransparency in public finance that would assist govermment to meet counterpart fund obligationsin a timely manner.

D. PROJECT IMPACTS

7.19 Impact on Women. The reorientation of the country's agricultural services, which willbecome demand-oriented and participatory, will help to bring these services (in particular,extension advice and research) to female producers and to respond better to their specific needs.Through their statutory representation in decision-making bodies, rural women will be able toinfluence strategic and policy decisions and adapt national programs to their demands andcapabilities. Women will benefit from the Program's training activities, in particular, from thefunctional literacy classes, and get priority access to the resources of the VDF.

7.20 Impact on Youths: The disengagement of the State, provided for under PNASA, willopen up a number of opportunities in the fields of input supply, transport, and other ruralservices. Young people in rural areas will have the opportunity to form OPEAs and benefit fromthe Programn's training, extension and financing facilities. This will enable them to fill the gapscreated by the withdrawal of the public and semi-public enterprises and undertake income-generating group activities in the fields of commerce, processing, transport of water, inputs andproducts, etc. Young smallholders will have an important role to play as counterparts to the newresearch structure (ITRA), participating in the identification and testing of research needs andmessages.

7.21 Impact on the Environment: PNASA will facilitate the introduction of improvedcultivation techniques aimed at environmental sustainability. By consolidating crop productionand animal husbandry related research, it will promote the development and introduction of soilconservation and restoration techniques, permitting to prevent or halt over-exploitation anddegradation of natural resources. Crop diversification and promotion of other economic activities(through the improved access to training and credit) will reduce the negative effects of mono-cropping and the pressure on limited land resources, in general. Project proposals submitted forfinancing from VDF or credit resources will be screened as to their environmental impact.

VIII. ASSURANCES AND RECOMMENDATIONS

8.1 Conditions for negotiations completed:

(a) a Letter of Agricultural Development Policy available for Bank comments (para.2.25);

(b) a proposal, in a form acceptable to the World Bank, of statutes to govern theorganization of MAEP, ICAT, and ITRA (para. 5.2); and

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(c) detailed proposals for all job positions for each of the functions of MAEP, ICAT,ITRA, and the agricultural services side of SOTOCO (para. 5.2).

8.2 Assurances obtained during negotiations:

(a) transfer of MAEP's current activities, unrelated to its core public service functionsto private sector operators and OPEAs (para. 3.4);

(b) detailed and time-bound action plan for the restructuring of MAEP and theestablishment of ICAT and ITRA (para. 3.14);

(c) OPEAs would contribute to financing of ICAT and ITRA and would mobilizeneeded funds through voluntary contributions from the primary marketing ofcocoa, coffee and cotton (paras. 4.5-4.8);

(d) Acceptance of Bank procurement procedures (para. 4. 10);

(e) opening of three special accounts, one each for MAEP, ICAT and ITRA (para.4.16);

(f) opening project accounts benefiting ICAT and ITRA and make quarterlygovernment deposits (para. 4.17);

(g) agreement on the administrative and financial procedures for transfer of funds toICAT and ITRA, and on financial control procedures (para. 4.17).

(h) installation of computerized financial management system and adoption ofappropriate accounting procedures at MAEP, ICAT and ITRA, satisfactory to theBank (paras. 4.18-4.19)

(i) operation of special accounts in accordance with internationally acceptedprinciples and with practices acceptable to IDA (para. 4.19)

(j) agreement on terms of reference for annual audits and submission of audit reportswithin 6 months of close of fiscal year (para. 4.21);

(k) agreement on Project Implementation Plan (para. 5.2)

(l) agreement on key project performance indicators (para. 5.5);

(m) agreement on timing and scope of work programs and budget (para 5.7);

(n) agreement on content of half-yearly progress reports (para. 5.8);

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(o) agreement on arrangements for mid-term review (para. 5.9);

(p) agreement on the preparation of the implementation completion report by theBorrower within 6 months of the credit's closing date (para. 5.9)

8.3 The following conditions for presentation to the Board have been complied with:

(a) approval by the Council of Ministers of a decree sanctioning the liquidation ofSAFICC and TOGOGRAIN (paras. 2.20 and 3.4);

(b) adoption of decrees for the restructuring of MAEP and the establishment of ICATand ITRA, by the Government (paras. 3.14); and

(c) submission to IDA of a procurement plan and bidding documents for the first yearof the project (para. 4. 10).

8.4 Conditions for Credit effectiveness:

(a) ICAT and ITRA have been established, and the boards of directors of ICAT andITRA, respectively, have had their first meeting;

(b) a Multi-year Program agreement has been signed for each of the two agencies(para. 3.14);

(c) MAEP has been restructured, and MAEP's staff not retained for employment ineither ICAT, ITRA or the restructured MAEP, have received severance paymentsin accordance with the relevant laws of the Borrower (para. 3.14); and

(d) the Borrower has deposited CFAF 490 million and CFA 350 million in the projectaccounts for ICAT and ITRA respectively (para. 4.17).

8.5 Recommendation. With the above assurances and conditions, the project would be suitable foran IDA Credit of US$ 26.2 million, on standard IDA terms with 40 years of maturity.

-42- Annex I

Page 1 of 9

REPUBLIC OF TOGO


DETAILED PROJECT DESCRIPTION

A. Support for basic agriculturalservices: TechnicalAssistance and Support Institute (ICAT)

1. ICAT would be created on the basis of the MAEP's, SAFIC and SOTOCO existingextension services. It would focus its efforts on support to farmers and OPEAs in coordination withother entities operating in the rural areas, by systematically seeking contractual relationships. ICAT isintended to lead rural producers, through their economic professional organizations, in sharing with theGovernment technical and financial responsibilities for efficient adaptive research, extension and OPEAsupport services. ICAT would have the status of a semi-private company. Its initial corporate capitalcould be distributed as follows: public shareholders (Government) 40 percent, and private shareholders(OPEAs, employees, SOTOCO traders of agricultural inputs and agricultural products) 60 percent. Thecorporate capital would be limited to FCFA200 million, allowing easy access by the OPEAs. TheGovernment would be able either to keep the assets used by ICAT in the public domain and make themavailable for use or provide the corresponding subsidies in kind. The choice would be done during thenegotiation. The seats on ICAT's management board would be distributed as the paticipation in thecorporate capital.

2. Extension and adaptive research. ICAT's function is to provide technical support toagricultural producers in order to enhance their use of technical practices to increase their production andimprove their productivity in the long terrn. Farming systems would be a basis for the messages to bedisseminated through the extension method. However, specific product approach would not be given up,but it would be integrated in the farming system context. Consequently, adaptive research and extensionstaff would have to promote coffee, cocoa and cotton cultivation as well as food crop production andlivestock as important targets

3. The extension services would be provided under the new Togolese Rural Extension System(STER) based on the "Training and Visit" system, adapted to socioeconomic conditions in Togo. Thissystem represents a continuation and adaptation of the first STER, drawn up by the Agricultural ExtensionProject (PVA), under which the MAEP's extension services were partly restructured. On the basis ofexperience with the PVA, SOTOCO's agricultural extension services and other projects in Togo, the secondSTER, Guide to Extension in Togo (Guide de la Vulgarisation au Togo) was prepared with World Bankassistance during the agricultural extension workshop held in April 1995. The extension programs wouldbe designed and structured as a dynamic participatoryprocess (producers, extension agents, researchers andother rural partners). The producers would be visited regularly by extension agents (agricultural advisers)supported by technical specialists and monitored by zone chief. The extension services would need togather, discuss and analyze experiences, promote their exchange among regional institutions and make theavailable technologies accessible to the producers. Adaptive research would be responsible for carrying outtests of adaptation and adoption of the technologies by the producers through the observation points (POs)and the Site to Support Agricultural Research System (SARSs) and for disseminatingfarmer know-how andtechnical improvements. It would take part (the main participants would be the producers) in on-farmdemonstrationsof the new technologies. Special attention would be given to crops grown by women and to

-43- Annex 1Page 2 of 9

the difficulties faced by young people in getting started in business and by the most disadvantaged farmers.Identification of their problems, together with the solutions proposed and their disseminated throughextension, would be included in the project monitoring criteria (see Annex 9). This adaptive research,corresponding to pre-extension, would be ICAT's responsibility and would be carried out in collaborationwith ITRA. ICAT would be able to entrust multi-site trials to ITRA, which would bear scientificresponsibilityfor them, ICAT continuing to be responsible for monitoring and evaluation.

4. Support for the professional agricultural economic organizations (OPEAs). This wouldcomprise providing the farmers with the necessary assistance to enable them to set up and consolidatefarner groups through technical assistance activities designed to promote and strengthen organizationalstructuring in the rural areas in order to set up economically and financially viable economic andcommercial units with coordination interlinkages. In addition to strengthening the basic groups, theobjective is to support the creation of higher-level agricultural professional organizations in the form ofunions and federations in specific fields. Involvement of women in the farmer associations would beachievedboth by helping set up women's associationsand by integratingthem more firmly into the existingprofessional organizations. The functions in which they traditionally excel (management, business, etc.)would be developed through adapted training activities. The technical support measures would be geared tothe following activities: (a) analysis of the situation of the existing groups; (b) continuation of the processof identifying and assessing the farmers' organizational needs; (c) assistance in setting up farmer groups(providing statutes, helping formulate internal regulations, etc.); (d) training of managers and managementadvisers, and (e) advisory assistance on rural credit, getting products to markets, marketing, processing andartisan skills.

5. The general strategy of this component would be based on two lines of action: (a) trainingof OPEA technical specialists as true cooperative management and organization advisers, and (b) rapidintegration of these management advisers into cooperative unions intended progressively to take over totalresponsibility for them. Training would be provided concerning participatory diagnosis and regulation ofthe OPEAs and for management advisers (CGs) at private economic entities. Private-sector professionalswould take part in this training, particularly concerning trade in inputs. The work program of these CGs,complete with quantifiable objectives, would be drawn up in collaboration with and approved by thecooperativesand the unions with which they would be working. For the specific subsectors--coffee,cocoa,cotton--specific, quantifiable programs would be prepared which would be dovetailed into the generalstrategy but planned and negotiated each year by the various partners. Since CG assistance is deemed to bea service that must be remunerated by the cooperative unions, a pragmatic analysis would be performedafter the first two years of the project to determine objectively the tempo at which the unions have toassume total financial responsibility for these management advisers. The project would finance training ofthe management advisers and their necessary operating and travel facilities.

6. Human resources management and training. ICAT's would have a specific directoratededicated to have a permanent human resources development through on-the-job training for all staff. Inclose collaboration with the technical manager of adaptive research, extension and support to OPEAs,this Directorate would permanently assess the staff efficiency and would organize trainingcomplementation to improve their operational skills. The training would be given by private-sector,public sector and NGOs specialists. The project would finance training sessions, mission fees and travelmeans for trainers, international and national consultant costs to support national trainers.

7. Farmers information support. Broadcastingof information concerning agricultural productprices and location is a key element for good marketing. Extension, adaptive research and OPEA support'sstaff need also to have access to a broad forecasting system. An agricultural information unit would be

-44- Annex IPage 3 of 9

linked with the General Directorate of the ICAT. In close coordination with the ITRA and the MAEP thisunit would plan the broadcasting of agricultural infornation. This unit would not disseminate informationwhich would remain the task of TV, radio and newspapers. The unit would operate on the basis of contractswith the news media. The contracts would be financed by the project through ICAT. To be eligible forproject financingthe annual contractswould also be agreed with IDA.

8. ICAT's five regional directorates would be supported at the national level by the NationalDirectorate, comprising a General Directorate, an Administrative and Financial Directorate, three technicaldirectorates (Extension and Adaptive Research, Human Resources and Training, and Support for OPEAs)and three units (Monitoring and Evaluation, Internal Auditing, and Farmers Information). ICAT's total staffis projected to be 1,298: 120 upper-level managers, 287 middle managers and 891 operatives (including618 agricultural advisers). At headquarters there would be 42 staff (15 grade A, 7 grade B and 20 gradeC/D operatives and contractual staff). Each regional directorate would have a staff of 50 (15 grade A, 12grade B and 23 operatives), giving a total of 250 for the five regions. The local sections would have a totalstaff of 1,006 (30 grade A, 220 B and 756 operatives).

9. ICAT's staff would be selected from the MAEP's current personnel, chiefly that of theextension services, which would supply the greater part of its employees, and staff of SOTOCO (followingreorganization of the company) and SAFICC (following its liquidation). This staff would consistessentially of contractual personnel. Civil servants can be seconded during the first two years; thereafterthey would have to choose between private status and re-entry into the civil service.

10. ICAT's resources would comprise: (a) the shareholder's capital subscriptions; (b) publicresources in the form of an annual allocation to fund salaries and part of operating expenses, which woulddecrease as and when the time comes for them to be defrayed by private operators or agriculturalprofessional organization contributions; (c) contracts with the agricultural professional organizationsthrough voluntary levy requested by the producers and effected for cotton, coffee and cocoa by the exportfirms. These sums would then be passed on to ICAT and ITRA in accordancewith a technical and financialagreement concluded each year. This agreement would be drawn up by a committee on which theproducers would hold the majority of the seats; these levies on the purchase price of the products would beinstead of the current financial withholdings to finance services or taxes; (iv) contracts with agriculturalequipment and input vendors (inputs promotion), and (v) donations and legacies.

11. The project provides for:

(a) access to all agricultural data and a possibility for different interest groups to be involved inthe contracts which would be a condition for project financing;

(b) accommodation of ICAT's National Directorate headquarters in the current premises of theplant Protection Directorate, which are in good condition. They comprise a single-storybuilding with a site area of 600 m2, adequate to house ICAT and ITRA, which wouldmaintain a permanent contractual relationship,within a single site at Lome' Cacavelli;

(c) installation of ICATs regional directorates in:

(i) the PROPTA Project buildings at Atakpame, to be rehabilitated, and annexes to thebuildings of the Sokode, Kara and Dapaong DRDRs;

(ii) a building to be constructed at Tsevie, where there is no infrastructure; and


(d) redesign and rehabilitation of the existing infrastructures at the section and subsectionlevels for the offices of ICAT.

The project would finance:

(a) the necessary building rehabilitation or construction works;

(b) the necessary office equipment and materials, means of transportation (6 passenger cars, 6ATVs, 12 pickups, 286 motor cycles and 601 motorized bicycles), and training and missionfees.

B Support for agricultural research (Togolese AgriculturalResearch Institute--ITRA)

12. The agricultural research component would comprise activities aimed at promotingagricultural development in the areas of plant, animal, fishery and forest products, the environment, andpost-harvest, food and agroindustrialtechnologies. To that end it would support a scientific program basedon: (a) Togo's priority development concerns, defined by the MAEP and ICAT on the basis of theproducers' real needs both at the national level and that of each agro-ecological zone; (b) protection of theenvironment; (c) post-harvest, agro-food and agroindustrial technologies; (d) development of landresources; (e) production of basic seed for the major crops cultivated in Togo. The improved seed would bepropagated by a network of private producers, mainly seed farmers (a reconversion opportunity for laid-offstaff), who would sell it directly to individual farmers or OPEAs (this seeds privatization program would besupported by the NGO IFDC), and (f) development and distribution to the extension services of atechnological data package tailored to farmers needs.

13. The current agricultural research system (DNRA and institutes) would be replaced by aTogolese Agricultural Research Institute (ITRA). ITRA's functions would be to (a) serve as a nationalframe of reference in the area of agricultural research, however, without seeking to monopolize this activity;(b) provide training for researchers and technicians, and also, at the request of ICAT, technicians foragricultural extension; (c) collect, process and disseminate scientific and technological data in the areas ofthe agricultural and basic sciences; (d) advise the government authorities on the availability of technologywith the object of raising agricultural production, consolidating national food security and protecting theenvironment, and (e) contribute, within its areas of responsibility, to the formulation of Togo's nationalagricultural development policy. ITRA's status would be similar to that of ICAT (a semi-private companywith private capital partners). It would possessjuridical personalityand autonomy in administrationand intechnical, financial and human resources management. Its headquarters would be at Lome. It wouldcomprise a General Directorate and four polyvalent regional agricultural research centers with managementautonomy.

14. The General Directorate would comprise a Director General (DG), to be selected chiefly for hismanagement skills, assisted by a Scientific Director (DS), an Administrative and Financial Director (DAF)and a Support Services Director (DSA). The DS would be assisted by four scientific coordinators in thefollowing fields: (a) plant products and post-harvest technologies; (b) animal and fishery products; (c)forest products and management of agricultural natural resources, and (d) production systems andapplication of agricultural research findings. The DSA would have five agencies: (a) Scientific andTechnical Information; (b) Biometrics and Data Processing; (c) Agricultural Meteorology; (e) NationalSoils Service (Lome), which would provide its rural development services through contracts with a LandDevelopment Support Unit which is about to be privatized, and (f) National Food Technologies Service


(Lome), which would similarly provide its development services through contacts with an AgriculturalFood Product and Agroindustrial Technologies Support Unit (studies contracts) which could also beprivatized.

15. ITRA would have four regional polyvalent agricultural research centers (CRAPs). Theywould be located in the main agro-ecologicalregions, at:

(a) Kara (Abouda), for the dry savannahs of northern Togo;

(b) Tove (former IRCC station), for the sub-humid mountainous region of middle and southernAtacora; IRCC's old coffee/cocoa research programs would be expanded to include:production systems, food crops and post-harvest techniques, environment and animalproducts;

(c) Kolokope (former IRCT) for the moist savannah, where the old cotton research programswould be expanded as for the IRCC;

(d) Davie, for southem Togo.

16. The centers would specialize in certain fields for which they are best suited (for example:Kara, millet/sorghum; Tove, coffee/cocoa; Carr6kape, cotton; Tsevie, maize/yam), at the national andregional levels. Agreements could be signed for this purpose with regional (western African) andinternational research centers. The ability of the research system to cater for the specific problems ofwomen and young people would form part of the criteria for measuring the success of the project. (SeeAnnex 8).

17. The permanent "core" staff of agricultural research would not exceed 260, including 50researchers. They would be selected through open competition. In cases of comparable qualifications,preference would be given to current personnel of DNRA and the institutes. ITRA would use temporarypersonnel as needed in light of the research contracts awarded to it. This contract research would not,however, generate any additional recurrent costs for ITRA after completion of the work.

18. The project would provide for:

(a) redesign of the premises of INCV and DNRA (800 m2) and rebuilding of the premises ofINTA (800 m2) and INS (700 m m2) to accommodate ITRA's director's office andlaboratories;

(b) rehabilitationof the existing premises for offices and housing (250 m2) and constructionof150 m2 of new offices for the Davie SRAP;

(c) rehabilitation of office infrastructures(200 m2) for the KpalimelTove SRAP;

(d) rehabilitationof 500 m2 of housing for the Atakpam6/KolokopeSRAP;

(e) rehabilitationoflaboratories(120 m2), offices (500 m2) and housing(500 m2) atAbouda/Kara;

(f) electrification of the Abouda and Kolokope centers;

-47- Annex IPage 6 of 9

(g) provision of additional scientific equipment for the laboratories;

(h) provision of means of transport for researchers and support personnel;

(i) financing of inter-countryresearch agreements within the subregion.

C. Pilot Agricultural Credit

19. The purposes of the rural credit savings and loan component are to: (a) test the setting upof a three rural S&L institutions frame of reference based on the existing structures; (b) finance thedevelopment of agricultural production in order to enhance food security and upgrade rural livingconditions; (c) support efforts by farmers to better organize themselves for the purposes of production,marketing, product processing, and management of their farms and of their finances; (d) make the OPEAsmore efficient in this field; and (e) improve the rural framework for facilitatingthe liberalization process ofthe whole agricultural sector. These credit operations would make it possible to use the extension servicesfor individual farmers and groups of farmers to better advantage. This component implemented throughthree selectedNGOs would be based on: (a) good managementability; (b) credit reimbursementrate higherthan 95 percent during the last four years; (c) interest rate similar to the national financial market; (d) nodirect credit subsidies. However, during the implementation phase, not exceeding four years, grants tosupport salaries and capacity building for credit managers in the field is acceptable (OD 8.30 para, 29); (f)sound accounting, legal, and regulatory infrastructure system (OD 8.30 para.36, 37); (g) self-sustainingresource mobilization after the implementation period (OD 8.30 para.70); (h) independence of decisionmaking for the credit managers (OD 8.30 para.71). The project would not change the NGOs' strategies,which have already yielded positive results in the field, but it would provide support to consolidate the gainsand extend the experiments.

20. The project would hence provide support for: (a) three NGOs (SYNORSEC, SOCODEVIand FUCEC) in setting up new S&L branches to widen acces to saving and develop credit to agriculture inpredetermined pilot areas; (b) a Coordination Committee; and (c) a technical M&E unit to implement forthis component within the MAEP. The component will be complimentary to the activities of the FinancialSector Adjustment Credit (FINSAC) and therefore will entail close collaboration between the differentprojects' units during implementation.

21. Through the three NGOs the project would finance the setting up of 10 new rural S&Linstitutionsand strengtheningofthe Nyile S&L (SYNORSEC: six new rural S&Ls and strengtheningof theNyile S&L; SOCODEVI: four new S&L institutions, FUCEC: will provide training). The project wouldbear the infrastructure expenses (vehicles, data processing equipment, office furniture and materials) andpersonnel training, salary and travel costs during the period until the S&Ls that are to become self-financingreach break-even point in 4 to 5 years.

22. Technical coordination of this pilot operation would be assured by a CoordinationCommittee. The Committee would have eight members (NGOs-two each, MAEP-one, Finance Ministry-one) and its chairmanship would rotate every six months. It would be responsible chiefly for organizing athree-day discussion workshop every six months. The workshop would bring together entities involved incredit to agriculture in Togo. The three NGOs would present their results, their problems and their toolsand strategies at this workshop. This would give the other operators an opportunity to note and apply theinformation or even to strengthen the tools and strategies utilized through constructive criticism. Theproject would bear the costs of these workshops.

-48- Annex 1

Page 7 of 9

23. A Rural Credit Technical Monitoring and Evaluation Unit would be set up in the MAEP.Its functions will be to: (a) review the operating policies of the three pilot schemes and human resourcedevelopment plans; (b) assess the validity of the personnel positions and profiles of each of the pilot ruralscheme; (c) assess the pilots' economic impact on productivity and production in the selected regions; (d)evaluate the training activities carried out; and (e) review the annual audits of the pilots.

24. The financial manager for this component would be recruited on a contractual basis, usinga competitive method and terms of reference approved by the World Bank. The costs of this manager, whowould have no jurisdiction over the technical side of the component, would be borne by the project.

25. The Agricultural Finance component of this project would complement actions tobe taken under the FINSAC and the Public Enterprise Restructuring Project (PERP) to ensurestrengthening of the overall Rural and Microfinance sector in Togo. Actions supported by the FINSACand the PERP will consist in : (a) supporting the Unit in charge of the supervision of rural andmicrofinance institutions in the MEF, (b) providing the Network of RMFIs with regular technicaltraining sessions, broad exposure to international best practices and technical assistance to expand andorganize the network activities and communication, (c) assisting the public/private joint committee inelaborating a National Rural and Microfinance strategy for Togo, and (d) providing FUCEC withTechnical Assistance in institution building and financial management.

26. Therefore, the Technical Assistance activities regarding agricultural finance in thepresent project will be organized in coordination with the Implementation Unit of the PERP andFINSAC projects: (a) semi annual workshops (mentioned in paragraph 22) will be designed jointly; (b)during implementation the Unit in MAEP will work closely with the MEF in charge of supervision of allRural and Microfinance Institutions, to review the financial and prudential management of the three pilotsas well as their M&E procedures; (c) while the PERP will bear the initial cost of setting up and trainingthe Unit in MEF, the present project will bear the additional cost related to agricultural credit; and (d) thenational agricultural credit policy will be gradually developped under the framework of the rural andmicrofinance policy.

27. The support component (equipment, training) of this lending is regarded as an investrnentby the Government in the agricultural sector to set up the necessary professional human resources networkfor establishment of a rural S&L system. The funds derived from repayment of the loans by the NGOswould go to fund the regional S&L institutions in order to boost lending capacity and expand the system.An external audit of the development and use of the funds would be performed each year, by privateauditors, and transmitted to the MAEP, the Ministry of Finance and IDA. Future management procedureswould be determined in light of the findings of the mid-term review.

D. Support for the MAEP

28. The Ministry of Rural Development (MAEP) would refocus its attention on its functions offormulating and implementingthe Government's agricultural policy. Prior to start-up of the project, the jobdescriptions and personnel profiles for each position would be redefined, the headquarters directorates andservices restructured and reduced in number, and their staffs redeployed in the regions and prefectures.With ICAT taking over the agricultural services responsibilities in the regions, the staff of the regionalapparatus would be reduced from 1,736 to 765 and that of the headquarters services at Lome from 989 to178.


29. The Terms of Reference of the MAEP and its Regional Directorates during the first two years ofthe project would be to: (a) complete the liberalization process for coffee, cocoa and pursue it for cotton; (b)complete an annual agricultural public expenditures review; (c) update the agricultural sector review withparticipating regional directors; (d) implement instruments for managing its functions both at the regionaland national levels. The appraisal mission would finalize these TORs and propose financial covenants forthe CreditAgreementaccordingto the targets of planned operations. The mid-term review would assess theresults and propose a reviewed plan for the last three years of the project.

30. The new MAEP would comprise, at the national level, an office of the minister andsecretariat, with a secretary general coordinating the activities of six directorates: Administration andFinance; Planning, Programming and Statistics; Farming, Livestock and Fishing; Natural ResourcesManagement, and Promotion of Rural Legislation. These directorates would be divided into 20 agencies(services), as detailed in the organizational chart (see Annex 5). The permanent staff complement would\not exceed 68 of grades Al and A2, 39 of grade B and 41 of grades C/D, plus 30 permanent operationalstaff. At Lome these agencies would be grouped together in a single building. The costs of rehabilitation,furniture, data processing equipment and office equipment (50 percent would be renovated old equipment)would be borne by the project.

31. In the five regions, the government's role would be limited to: (a) identifying and studyingagricultural constraints and potentials and drawing up regional agricultural policies; (b) helping to programprojects within the framework of national policy; (c) assessing the impact of the projects and programs; (d)systematically gathering the necessary data on the rural world and, in particular, keeping the agriculturalstatistics; (e) overseeing compliance with the animal health, plant health and land tenure regulations and theestablishment of OPEAs, and (f) evaluating natural resources and drawing up rural land use anddevelopment plans. Each regional directorate would have five divisions: (a) Administration and Finance;(b) Programming and Statistics; (c) Natural Resources Management; (d) Animal and Plant Health Control,and (e) Land Tenure Affairs and Rural Institutions. The regional directorate would have a staff of 75 : 20 ofgrades Al/A2, 19 of grade B and 36 operational staff. The five regions would hence have a total staff of375.

32. A Prefecture Rural Development Division (DPDR) would be set up in each of the 30prefectures, with responsibility for applying the animal and plant health regulations, gathering statistics andoverseeing natural resource conservation. It would be headed by a division chief and would comprise threeoffices: (a) Natural Resources; (b) Statistics, and (c) Animal and Plant Health Control. Each prefecturewould have 1 grade B and 12 grade C/D staff members, giving a total staff of 390 for the whole of thecountry.

33. The project would finance: (a) rehabilitation of the DRDR's premises at Atakpame,Sokode, Kara and Dapaong (a total area of 2,910 m2). For the maritime DRDR, which would be movedfrom Lome to Tsevie, it is planned that the premises of the regional planning directorate (400 m2) berenovated and that they be rehabilitated and supplemented by a new 250-m2 office building; (b) renovationat the level of the 30 prefectures of the offices of the rural development prefectoral divisions (DPDRs), i.e.,4,500 m2 to be renovated in the existing infrastructures at the section level, and (c) rehabilitation andconstruction works for the buildings of the MAEP's headquarters services at Lome and rehabilitation of a330m2 single-story building, and construction of a second 500-m2 single-story building nearby. Thissolution brings the Minister'soffice and all the directoratestogetheron the DGDR site.

-50-Annex 1

Page 9 of 9

34. The project would also finance office equipment and materials, up to 50 percent of existinginventory, vehicles (II passenger cars, 7 ATVs, 100 motor cycles and 120 motorized bicycles) and theiroperating costs.

35. Other financing would have to be raised prior to start-up of the project in order to settle theMAEP's debts and pay the severance allowances of the staff not retained in the new structure.

-51- Annex 2

Page 1 of 2

REPUBLIC OF TOGO


OED RECOMMENDATIONS AND PNASA RESPONSES

Extension principle Recommendations of OED Response

Programming of To be maintained, but program to be The program is determined afteractivities determined according to the needs of participative diagnosis in accordance

the farmer group (as agreed with them) with farmers requests. Specificas well as the availability and training of Field Extension Workersappropriate timing for treatment of (FEW) and Subject Matter Specialistspecific technologies. (SMSs) on participative diagnosis is

planned.Fixed visits schedule To be maintained, but in accordance The periodicity of visits will be

with a schedule agreed as appropriate planned with farmer contact groups onbetween farmers, field staff and a regular schedule. Exceptions can besupervisor, rather than as a general accepted if the farmer so wishes.standard of fortnightly visits.

Supervision Maintain, but with more emphasis on Regular visit schedules will beassessing reactions of farmer clientele maintained in accordance with farmers'than on the mechanics of the visit requests. Training for FEW andschedule. supervisor to improve capacity to

assess reactions of farmers is plannedat the beginning of the project.

Single line of command To be maintained (but not as an Farmers are to be selected/appointed toessential requirement), but develop and the Board of ICAT. They are in theunderstanding that the extension staff regional planning and assessmentmust be responsive to the needs of the committee. ICAT's staff is managedfarmer clientele whose reactions would under semi-private rule not as civilbe monitored by supervisory staff as servants. They are accountable tomeasure of staff performance. farmers.

Concentration on ex- To be maintained, but not to the According to the project preparation,tension technology exclusion of facilitating the provision NGOs (Sassakawa 2000, SOCODEVI,

of services by other agencies (private IFDC etc ... ) support complementaryand public) to meet the needs of the pilot credit operation, seeds, fertilizerfarming communities being attended, and post harvest privatization.nor of assisting farmers to develop a Supported by the project OPEAs wouldself-help capacity (e.g., seedling be more efficient participating inproduction, group marketing) processing storage and marketing.


Technical content and To be maintained, timely training Training sessions would be plannedtraining sessions for field staff geared to from the SEW requests which would be

subjects of proximate visits, but not as established from farmers needs. Thedistrict-wide general recommendations presence of different SMS would allowassociated with dominant commodities; that and, if necessary, specific supportthe widely applicable recommendations would be requested from research.would be taken into account by trainingofficers, but training would be adaptedand incorporated where possible intothe solutions to the problems identifiedwith farmer groups.

Use of Contact Farmers A concept to be adopted that identifies That is exactly the project strategy andor Farmer Groups for existing groups of farmers with similar SEW would receive training tovisits and resource circumstances, problems and implement it.demonstrations attitudes as the medium for interaction

with the extension staff (as groups orsubgroups in the recipient community),uses these groups to define majorconstraints, analyzes the relevance oftechnological solutions, and assumesownership of demonstrations.

Research-extension To be maintained and expanded with The farming system approach is basiclinkage an emphasis on enduring relevance in for the project. SEW are polyvalent

applied/adaptive research; this implies (agro, livestock and forestry).a farming system perspective in both Adaptive/research would work directlyresearch and extension, which would into the farmers exploitation tobenefit by joint farming system experiment proposals for the extension.diagnostic surveys.

Annex 3Page I of 2

REPUBLIC OF TOGO


ECONOMIC ANALYSIS: CURRENT AND POTENTIAL YIELDS

1. Maize. In Togo, technology packages have been more effective for maize than for mostfood crops, given the high response of maize to nitrogen fertilizer. Maize improvement programshave concentrated on the rapid development and dissemination of open-pollinated varieties fromwhich farmers can save seeds for planting in subsequent seasons. Several improved varieties ofmaize are now commonplace in Togo's farming systems; notably the Ikenne and Pool 16SRvarieties. While high yields (upwards of 2.9 tons/ha) have been obtained during on-farm trails,realization of full yield potential under farmers' conditions is constrained by low inherent soilfertility, poor management, and striga infestation. Project interventions will address theseconstraints with the objective of raising on-farm yields closer to those realized under research-managed conditions and increasing farmers' yields which, at a high of about 1.2 tons/ha, is still58 percent below that of on-station yields.

2. Rice. The presence of hydromorphic soils and fertile valley bottoms make ricecultivation highly successful in the south-central areas of Togo. Despite this potential, rice hasremained an under-exploited crop. Water remains a major constraint, given the erratic rainfallpatterns in most parts of the country. Improved rice varieties have been imported from theregional research centers, such as IITA, but yields on farners' fields are still about 42 Rercentbelow that of on-farm trials. The project would support the multiplication and dissemination ofimproved rice varieties, as well as provide recommendations for improved input use andmanagement practices, including optimal plant population, spacing and timely weeding andapplication of chemicals. Regional directorates of the restructured MAEP would identifyandplan suitable investment projects to support irrigation improvements. NGOs and bilateral donorswould be able to finance these well-planned projects more easily.

3. Yams. Yam cultivation has benefited from the minister technology for multiplying yamseedlings for planting. However, this technology is not widely used by farmners. The relative easeof producing seed yams, and the high yield of this crop in Togo, provide substantial scope forincreasing national production. It is estimated that Togo's current national crop can be increasedby 25 percent over the project period with widespread adoption of minisett technology,combined with improved management practices. The project would support the dissemination ofimproved yams seed technology (minisett) to farmers as well as disease and pest controlinterventions.

4. Cassava. While yields of traditional cassava are currently low, about 8 to 10 tons/ha,there are improved varieties whose adoption can impact farm-level production dramatically. Themost popular varieties are the tropical manihot series (TMS) 30572 and TMS 30555, both ofwhich are in high demand due to processed quality. The project would support ITRA'smultiplication and on-station trials to select new cultivars for their tolerance to local diseases andpests. It will also support ICAT dissemination of these cultivars to smallholders.

5. Cowpea. Yields of beans are low in Togo, about 360 kg/ha, due to the prevalence ofinsect pests that wreck havoc in farmers' fields. The use of insecticides provides some degree of

-5 4- Annex 3Page 2 of 2

relief, but the high costs of these chemicals prevent farmers from using them on a wide scale.Newer varieties of beans, such as IT 82 E 18, and IT82 E 16 have on-station yields exceeding Iton/ha. The project would support the multiplication of these new varieties and theirintercropping into existing farming systems, an integrated pest management strategy that wouldfurther help to reduce insect infestation.

6. Groundnuts. Groundnut has a high potential as an economic crop in Togo, butrealization of this potential is constrained by diseases, poor agronomic practices, and limited useof fertilizer by farmers. With stable rainfall and the use of modem inputs, groundnut yield can beas high as 1.2 tons/ha on-station. Under farmers' conditions and management practices,groundnut yields are often as low as only 0.7 tons/ha. Improved groundnut varieties, such asRAP 12 and TS 32-1, would be multiplied by ITRA and disseminated by ICAT for traditionalfarming systems.

7. Export crops. In the past, the export crop sector received extension services directlyfrom the parastatals (SAFIC, SOTOCO). Under the project, extension services would berationalized, with resources pooled for more effective coverage. Support would be provided formanagement of existing crops, replanting with improved cultivars, and the development of newareas. In particular, ITRA would work on research on export crops, while ICAT would provideextension assistance to farmers on disease and pest control and management.

-55- Annex 4Page I of I

REPUBLIC OF TOGO


Institut de Conseil et d'Appui Technique (ICAT)

ORGANIGRAMME

D'ADMINISTRATION

FerineD O rClue Ifrv.natiqEauet

Serv. A GENERALE

uditDG/DGA e E

COORDINATION NATIONAF CORINTO NATINAL

| VULGARISATION 1 ORIAOPNATINL

|Serv. Adrnin. & Finncsa|REIONLEt8

I

| CS | | ~CS | |CHEF DE SECTEUR ||CS ||CS|

Unite Techniciens alis6s TS T

CA A_Consciller C A

L 5 LL 1 ~~~~~~~~~Agricole CAL IL J

ORGANIGRAMME DU MINISTERE DU DEVELOPPEMENT RURAL(MAEP)

| MINISTRE DU |

DEVELOPPEMENTRUAL

CABIINET MAEP~

|Etablissements Publics . .............- SECRETAR IAT *- SocietesGENERAL

D DA l l DEP l l DAF l _ DPRH DRNA DSID

4Div. P F V DFiv. P E -l jDiv. A P _|Div. Planif. Div. A R Div. Staistique

4Div. PA-I 4Div. P PA Div. BCAI jDiv.P&I I Div. CAGRNA | Div. Informatiq

Div. C.Phyto Div LHASPV 4Div. MPL Div. S&E Div.AA-F - Div. DIA

Div. Juridique |Div. GRHII

Div. E F A

aDiv. IR|

Etablissements Publics |-I-------| DIRDECTOPPN E REGIONALE . .-Societes

| Div. PE S l l DivRNA l | Div. A F Div. C V Div. C Phyto

DIVISION PREFECTORALE o U|nDU DEVELOPPEMENT RURAL eh

SIGNIFICATION DES SIGLES

DA Direction de I'AgricultureDiv. PFV Division de la Promotion des Filieres VivrieresDiv. PA-I Division de la Promotion des Filieres Agro-IndustriellesDiv. C. Phyto Division du Contr6le Phytosanitaire

DEP Direction de I'Elevage et des PechesDiv. PE Division de la Promotion de I'ElevageDiv. PPA Division de la Promotion des Peches et AquacultureDiv. LHASPV Division de la Legislation, de l'Hygiene Alimentaire et de la Sante

DAF Direction de I'Administration et des FinancesDiv. AP Division de I'Administration et du PersonnelDiv. BCAI Division du Budget, de la Comptabilite et de l'Audit InterneDiv. MPL Division de la Maintenance,du Patrimoine et de la LogistiqueDiv. Juridiq. Division Juridique

DPRH Direction de la Planification et des Ressources HumainesDiv. Planif. Division de la PlanificationDiv. P&I Division Programme et InvestissementDiv. S&E Division Suivi et EvaluationDiv.GRH Division Gestion des Ressources HumainesDiv.EFA Division de i'Enseignement et de la Formation AgricolesDiv.IR Division Institutions Rurales

DRNA Direction des Ressources Naturelles AgricolesDiv. AR Division Amdnagement RuralDiv. CAGRNA Division du Contr6le des Amenagement et Gestion des Ressources Naturelles AgricolesDiv. AA-F Division des Affaires Agro-foncieres

x0

DSID Direction des Statistiques, de l'Informatique et de la DocumentationDiv. Statistique Division des statistiquesDiv. Informatiq. Division de l'InformatiqueDiv. DIA Division de la Documentation et de l'Information Agricole

DIRECTION REGIONALE DU DEVELOPPEMENT RURALDiv. PFS Division de la Planification, de la Formantion et des StatistiquesDiv. RNA Division des Ressources Naturelles AgricolesDiv. AF Division de I'Administration et des FinancesDiv. CV Division du Contr6le VterinaireDiv. C. Phyto Division du Controle Phytosanitaire

DIRECTION PREFECTORALE DU DEVELOPPEMENT RURALBur. des Statistiques Bureau des StatistiquesBur. des Res. Nat. Agr. Bureau des Ressources Naturelles AgricolesBur. Contr6le Veterinaire Bureau du Contr6le VeterinaireBur. Contr6le Phytosan. Bureau du Controle Phytosanitaire u'

GQ~(DU

hU'

REPUBLIC Oi TOGO


Institut Togolais de Reclierche Agronomique (ITRA)

ORGANIGRAMME

DARS: Dispositif d'Appui a la Recherche-SystemeIST: Information Scientifique et Technique

CONSEILD'ADMINISTRATION

DIRECC1IONGENERALE

|DIRECTION DES LABORATOIRES DRCOODRETNADI XNITATIOE& SCIENTIFIQUE |DlES PROOGRAMMES | FINANCIERE

q Lao Micelvaleur des teffes |S4ervicelIST Product. aiiniales IS {iice Finaiicier

Lnbo N%tiitioll ctTcchiil.Aliilcoui. |IiixleB l Irodkct. vegetae |nCoptabilile

Labo Res.Genetiq BiAtecl.&RS istique

jDocumentation | st Ress. Natur.- | Conlr8le

. q~~~~~~~Serv. Admin. et tetRs.Hm

| CRA/L CRA/F r CRAtSIL CRAtSS | O| (DAVIE) ( TOVE) (KOLOKOPE) ll (BUA f*

-60- Annex 7

Page 1 of 3

REPUBLIC OF TOGO


LES COUTS DES STRUCTURESGESTION 1996

(en million FCFA)

Personnel Fonctionnement Investissement

1 SAFICC 105 358 252 TOGOGRAIN 20 88 4053 OPAT NC NC NC4 SOTOCO Enc 121 _

5 MAEP Central 1.868 1.677

6 DRDR 992 180

7 Projet ANANAS 19 1 188 PNPE 105.000

9 IRCT 58 51 5110 IRCC 50 59 12211 SOGVERS NC NC 107.28612 Projet TRYPANOSOMIASE 10 NC 2713 RANCH ADELE 37 5614 Projet NAMIELE 13 10 7215 PROPTA 24 NC NC

Source: DAF

NC: donnees non communiquees4: il s'agit seulement du personnel pris en charge sur le budget de l'Etat. La

SOTOCO paie les salaires et le fonctionnement de plus de 600 agents sur la filierecoton.


Impact du Projet sur le Financementau titre des filieres agricoles

Annee 1 Annee 2 Annee 3 Annee 4 Annee 5

ICAT + ITRA

Salaires 960 960 960 960 960

Fonctionnement 600 600

Total 960 960 960 1560 1560

N.B. Une partie des financements de fonctionnement pourront etre pris en charge pardes programmes d'appui bi ou multilateraux en particulier pour les annees 4 et 5 apresla reprise de toute la cooperation intemationale au Togo. Dans ce cas les charges asupporter par les filieres pourraient 8tre encore diminuees.

Impact sur le budget(million FCFA)

Annde 1 Annee 2 Annee 3 Annee 4 Annee 5R I R I R I R I R I

MAEP* Salaires 1000 1000 1000 1000 1000t Frais de Fonctionnement 395 395

ICA + ITRA* Salaires 640 640 640 640 640* Frais de Fonctionnement 414 414

Total 1640 1640 1640 1640 809 1640 809

Total par an 1640 1640 1640 2449 2449

R: Reallocation des fonds actuellement utifises par le budget courant.I: Depenses supplementaires dues a 1'execution du projet.

x0

REPUBLIC OF TOGO


MONITORING AND EVALUATION (M&E) INDICATORS IN RELATION TO MAIN OBJECTIVES

Narrative Summary Obiectively Verifiable Indicators(Actual v. Target)

Goals

1. Increase living standards of farm household 1. % rise in average household net incomes*2. Increase labour efficiency 2. % rise in return per person day of farm labour3. Reduce household food scarcity 3. % fall in food scarce HHs4. Improve nutrition 4. % decrease in malnourished children < 5 yrs (in close collaboration with the

Ministry of Health

Purpose and objectives

A. Productiona'

1. Increased yield of main crops 1. Average kgs/ha yield increases on main crops2. Increased area and output from main crops 2. % increase in area and output from main crops3. Increased food availability from own production 3. Proportion of food from farm consumed by HH*4. Area under improved seeds 4. % increase under improved seed for main crops*5. Adoption of agro-forestry 5. % increase in farmers using agro-forestry*6. Adoption of improved cultivation practices 6. % increase in farmers using improved practices*7. Adoption of soil/water conservation technics 7. % increase in farmers adopting conserve. practices*8. Increase labour productivity of female farmers 8. % of productivity increase of F farmers9. Increase cash income from livestock 9. % of HH income derived from livestock

B. Institutional

1. More cost-effective extension 1. % rise in number of mini-plots/meetings/FA unit cost2. Improved dissemination capacity 2. % rise in farmer understanding/awareness ext3. Improved relevance of extension messages 3. % rise in farmers adopting recommendations4. Upgrading management/supervisory skills 4. Staff assessment/job evaluations/reporting5. Increased efficiency and effect of research 5. Cost of research/increase of production from research6. Cost Accounting Systems operating 6. Funds disbursed and accounts produced7. Efficiency of Agency management 7. Farmers participation in decisions (national and regional)8. Improved acccess to agriculture credit 8. % farmers participating in rural credit and efficiency of rural credit program (D J9. Improved economic farmers empowerment 9. % of farmers involved in cooperatives increase incomes of farmers through cooperatives x (D

o xFh C

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PROJECT OBJECTIVES AND DETAILED SCHEDULE OF IMPLEMENTATION INDICATORS

.jProject Component C ompoetsObjctve Cri t 20: ical..... .......... Steps Inica0;i;;0;tor Da0 i:tes

Restructuring Create and implementProcess ICAT and ITRA and * Completion of the staff census 4/96(C)MAEP strengthen the MAEP 0 Selection of specialized private firms for staff evaluation and preparation of staff selection 4/96(C)ICAT * Creation of ICAT and ITRA 7/97ITRA * Completion of job description of all staff concerned 2/97(C)

* Completion of staff selection 10/7/97* Recruitment and start-up of training of the Heads of the training and Human Resources 8/97

Management Departments of ICAT, ITRA, and MAEP at both central and regional level* Lay-off of contractual staff who are not selected 9/97* Completion of the identification of staff's training needs and the project's training program 8/97* Final selection of the Director General of the ICAT and the ITRA 8/97* Final selection of the ICAT and ITRA national directors 8/97

TOGOGRAIN? * Appointment of a liquidator SAFIC 7/97* Audit of 1996 accounts and evaluation of assets of MAEP, DRDR Research Institutes 7/97* Allocation of assets to the ICAT and the ITRA 8/97* Ministerial decree to reorganize the MAEP's services 10/7/97

ICAT- Improve organization and * Elimination of duplication of extension services 10/97Extension management of * Multidisciplinarity of the extension service 10/97

extension services * Establishment of working program for extension staff on all levels 1/98* Regular supervision of extension staff on all levels Permanent* Regular Training for all staff Permanent* Appropriate logistic support for field and central staff Permanent

Improve farmers' know-how * Regular fortnightly visits to farmer contact groups Permanentand knowledge to increase * Installation of demonstration plots in farmers' fields Permanenttheir productivity and * Repetition of demonstration plots by all interested farmers in their own fields Permanentincome;

(C) Completed

oQ

ID

0U,h

Project Objectives and Detailed Schedule of Implementation Indicators

Project Component Component's Objectives Critical Steps - Indicators EvaluationDates

cont. ICAT' - Ext. Make the existing farm * Development of new technical messages Permanentmanagement systems more * Focus on the farm as a whole Permanentproductive, stable and * Special emphasis on agro-forestry and improved fallow Permanentenvironmentallysustainable

ICAT - Elaborate technical * Establishment of one Systematic Research Adaptation Site (SARS) in each region -- as much as 6/98Adaptive Research messages, based on a possible in the immediate surroundings of the observation plots to facilitate management and to

thorough understanding of diminish costs -- to bridge the gap between research results, both systematic and thematic,existing farming on the one hand, and technical messages, adoptable by farmers, on the other handpractices, permittingfarmers -- in particularwomen and youth -- to * Establishment of one Observation Plot in each region to serve as multi-local trial sites for 6/98increase their revenue and thematic research programs to undertake varietal testsproductivity throughintensification ofcropping practices and * Installation of On Farm Trials to test varieties, selected through the observation plots, in 6/98diversification into farmers' own fieldsprofitable andenvironmental sustainableactivitiesImprove research - farmer * Organization of Monthly Technical Review Meetings with SMSs, thematic and systematic 3/98extension linkages researchers and SARs staff

* Participation of the ICAT (Directorate for Support to Adaptive Research/Service for 1/98Technical Programs of Research/Development Support) in elaboration of research programs

9/97ICAT - Support Promote and strengthen * Recruitment of Farmer Organizations Specialists (FOSs)to Farmer's farmer's organizations * Regular meetings of FOSs and about 20 farmers' organization each to train and advise 3/98Organizations participants on creation of farmers' organizations purchasing of inputs, rural credit, processing

of agricultural production, marketing and relations with other organizations in agri-business* Stremaline OPEA's support strategy 3/98* Creation of tolls to support OPEA 3/98* Training of FOS to master strategy and tolls 3/98* Improve cooperator's incomes 6/99* Improved fertilizer management 6/99

Improve and promote * Close collaboration between the ICAT and different Professional Organizations 6/98coordination among Project which focuses on the creation of second and third - level organizationsfarmers' organizationsupport

CD >

ox


Projectg componen:t :Component's Objectives Cical Steps in Indcators. Evaluation

ICAT- * Monitoring of quality and regularity of training 6/98Monitoring and * Monitoring of cost effectiveness of ratios 12/98Evaluation

* Budgetary control 12/98Monitoring and evaluation * Monitoring of variations in farmers' revenues 6/99of the quality and impact * Monitoring of women farmers' revenues 6/99of the ICAT field work * Monitoring of farmers' reactions to technical themes 6/99

* Monitoring of adoption rates 6/99* Monitoring of commercial performance 6/99* Monitoring of benefits increase of farmers' organizations 6/99

MAEP - ICAT - ITRA Create, within the ICAT * Completion of training of Human Resources Managers and Training Managers 12/98Training and Human ITRA and MAEP, the * Assurance of external supervision of trainers 12/98Resources capacity to conceive andManagement organize training programs

Help staff adapt to new * Completion of first training of all staff on job description 12/98task descriptions * Completion of initial technical training for all staff 12/98Improve technical, manage- * Provision of continious training for all staff 6/99rial and orginizational skills .Assure efficient human * Adaptation of training programs to staff performance 6/99resource mamagement ON

MAEP - ICAT - ITRA Assure accountability * Preparation of annual budgets 12/98Administration * Assure general and analytical accountability 12/98and Finance * Assure budgetary control 12/98

12/98Manage goods and * Supervision of the accountability at the regional level 12/98equipment * Goods process in purchasing goods and services 12/98

* Supervision of logistical management at the regional levelAssure the administrative * Assure supervision of regional administrative human resources management 6/99aspects of human resourcesmanagement

ITRA Provide adapted * % of themes which adapted to the farmers context 12/99themes to SARS * Increase of farmers' production 12/99

* Increase of farmers' productivity 12/99l Decrease of farming system risks 12/99

oDo xU,h


Project Component EvaltationComponent's Objective Critical Steps - Indicators Dates

cont. ITRA Capacity building of * Staff training 12/99extension staff * Improvement of services from researchers to extension staff 12/99Capacity building * Result of training in work performance 12/99of research staff * Incentives to the researchers to promote adaptive research 12/99Regional and intemational * Impact of the Regional Network participation in planning, finance and results in the field 12/99networks participation * Impact of the Intemational Network participation in planning, finance and results in the field 12/99

Institutional Financial * Implementation of new procedures 12/98Strengthening of * Implementation of tools and human resources training for an annual agricultural public 12/98MAEP expenditure review (regional and national)

* First Agricultural public expenditure review 12/98* Annual Agricultural expenditures review 12/99

Planning and Financial * Implementation of tools and human resources training of the annual investment planning (regional 12/98and national)

* First annual planning of agricultural investments (regional and annual) 12/98* Annual planning of agricultural investments (regional and national) 12/98

Planning * Participation of regional and national planning service in Agricultural project preparation planning 12/98Monitoring * Effectiveness of S/E of Agricultural project (regional and national) and impact of the S/E 12/99Technical efficiency * Task definition for each services, working plan, monitoring or results 12/98of each regional service * Implementation of reliable agricultural statistics at regional and national levels 12/98Stregthening of MAEP's * Retrenchment of all activities related to direct support to cooperatives and training of farmers 12/98Cooperative Support * Enacting revised cooperative legislation to make it more simple and operational 12/98

* Monitoring of policy implementation and enforcement of regulations 12/99Strengthening of MAEP's * Effeciency of Regional Directorates: (a) development of regional agricultural 12/99Regional Directorates policies; (b) monitoring and evaluation of policy implementation; (c) enforcement of regulations;

and (d) collection and processing of statisticsStrengthening of MAEP's * Land tenure legislation improvement 12/00policy making * Rural NGO's framework improvement 12/99

* Rural credit framework proposal 12/99* Food crops policy support 12/98

>DOQ

o x

U,


EvaluationProject Component Component's Objectives Critical0 Steps -Indicators Dates

Agriculture Credit Implementation of cluster * Composition of the cluster 12/97managing the credit * Definition of rules 12/97component * limplementation of rules 6/98Mutual rural credit * Nb. of "caisse", Nb of credits, amounts, % of reimbursement 12/99implementationImpact of credit to * Impact in production and productivity increase 12/99agriculture

* Impact in living standards 12/99Exchange of information * Effectiveness of the semestiral workshops, participants and working plan issued 12/99MAEP and MEF * Training of human resources, improvement and implentation of S/E tools, quality of 12/99capacity building recommendations for the national strategy

co

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(DLJ1>

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-69- Annex 10Page 1 of I

REPUBLIC OF TOGO


SCHEDULE FOR LIQUIDATION, PRIVATIZATION AND LEGAL FRAMEWORKIMPROVEMENT

TOGOGRAIN Liquidation before board

SAFICC Liquidation before board

SEEDS

i) PrivatizationFarm of Sotoboua: privatization 12/99

ii) Quality ControlLegal Aspect 6/98Set up 6/98

iii) ImportationLegal Aspect 6/98

FERTILIZER

i) Import LiberalizationLegal Aspect completed

ii) Quality ControlLegal Aspect 6/98Set up 6/98

iii) Cancellation of Food crop Fertilizer subsidies 12/98

VETERINARY PRODUCTS

i) Import Liberalization completedii) Quality Control

Legal Aspect 6/98Set up 6/98

PESTICIDES

i) Import Liberalization completedii) Quality Control

Legal Aspect 6/98Set up 6/98

AGRICULTURAL TOOLS

i) UPROMA liquidation 12/98ii) Import Liberalization, Legal Aspect completed

Annex 1 1Page 1 of 4

REPUBLIC OF TOGO


TERMS OF REFERENCE FOR THE PROJECT MID-TERM REVIEW

The Mid-Term Review would take stock of progress and formulate recommendations with regard to appropriate actions to betaken in the area of project activity in the table below:

Proiect Activity Recommendation

1. The Restructuring Process MAEP. ICAT and ITRA:

-to what extent the restructuring process of the MAEP and thecreation of the ICAT and ITRA has been completed successfully;

-the possibility and appropriateness of further adjustment;to what extent both the MAEP and the ICAT and ITRA are -improve staffingproperly staffed;

-the budgetary impact of the restructuring process; -further increase financial sustainability

2. The ICAT:

-the participation of the different partners in the capital structure -the possibilities to increase the private sector's and in particularfarmers' organizations-participation in the capital;

-the private sector's capacities and interest to further assume -ways and means to increase the private sector's participation;responsibility for agricultural services;

-the efficiency of the ICAT's management structure, the extent of -increase efficiency of management and farmers' participation indecentralization, and the importance of farmer's participation in the management of the ICATthe decision making process

-the number of women working in the ICAT -increase the number of female staff;

-the cost effectiveness of the ICAT with regard to use of -increase the cost effectiveness; andequipment and vehicles; and the mission fees;

-availability of counterpart funds; -counterpart funds allocation and release.

(a) Extension and adawtive research:

-the impact of the principal technical themes with regard to -improve relevance of technical themes;agriculture, livestock and agro-forestry, on production andfarmers' revenue;

-the cost effectiveness of the ratios applied by the ICAT and by -improve ratiosother extension organizations.

-the number of demonstration plots per contact group and per -increase the visibility of the extension activities; the number oftechnical theme, and the number of farmers participating in the farmers adopting one or more technical themes; improveencounters with the FEWs understanding of reasons for non-adoption.

-farmers', researchers' and extension agents' participation in -improve research - farmers - extension linkages;Systemic Research Adaptation Sites;

-the efficiency and regularity of monthly extension workshops; -improve the process of monthly review and fine-tuning oftechnical technical themes;

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Page 2 of 4

-the efficiency, relevance and environmental impact of technical -improve technical messages;messages;

-the relevance of technical messages for special interest groups -improve technical messages;such as women and youth;

(b) Farmer Organizations

-the number and quality of newly created first -, second-, and -improve conditions for the creation and promotion of farmers'third- level farmer organizations; organization;

-the financial management of farmer organizations in terms of -improve management practices;turnover, benefits and economic investments;

-the number of Farmer Organizations Specialists transferred from -strengthen cooperative unions so as to enhance their managerialthe ICAT to farmers' cooperative unions; and financial responsibility for Farmers' Organization Specialists;

-the possibility for farmer organizations to take direct and full -extend Farmer's Organization economic activitiesresponsibility for price setting, marketing and exportation ofcotton, coffee, cocoa etc.;

-the efficiency and relevance of the ICAT's activities with regardto strengthening of farmers' organizations, making the ICAT'sfarmers' organizations activities more demand-drive.

(c) Farmer and trader Information

fthe involvement of different professionals -improve the variety of information broadcastingthe relevence of informationthe efficeincy of informarion broadcasting

3. The ITRA

-the participation of the different partners in the capital structure -the possibilities to increase the private sector's and in particularfarmer organizations-participation in the capital;

-the private sector's capacities and interest to further assume -ways and means to increase the private sector's participation;responsibility for research services;

-the efficiency of the ITRA's management structure, the extent of -increase efficiency of management and farmers' participation indecentralization, and the importance of farmers' participation in the management of the ITRAthe decision making process

-the number of women working in the ITRA -increase the number of female staff;

-the cost effectiveness of the ITRA with regard to use of -increase the cost effectivenessequipment and vehicles; and the mission fees

-availability of counterpart funds; -counterpart funds allocation and release.

-themes provided to the extension, themes used by extensionist, -improve relevance of technical themesand themes adopted by farmers;

-the cost effectiveness of research actions;

-impact of researches in capacity building of extension staff andOPA leaders;

-impact of the project in capacity building of researchers;

-relevant relationship between national, regional and international

-72- Annex I I

Page 3 of 4agricultural research network

-effectiveness of incentives to have results in the field rather thanacademic reports.

4. The MAEP:

-the planning directorate's capacities to prepare and program -strengthen the directorates' staff through appropriate training andagricultural policy, annual investment budgets, and studies; other means;

-the cooperative directorate's capacities to prepare policy and -strengthen the directorates' staff through appropriate training andlegislation and to enforce regulations with regard to cooperatives other means;.

-the regularity and reliability of statistical reports; -strengthen the directorate's staff through appropriate trainingand other means;

-the regional directorates' capacity to develop regional -strengthen the directorates' staff through appropriate training andagricultural policies, monitor and evaluate policy implementation, other means;enforce regulations and produce reliable statistics;

-the autonomy of regional directorates with regard to budgetary -appropriateness to increase regional directorate's budgetaryplanning; autonomy.

5. Credit to Aericulture

-the efficiency of credits to agriculture: number of credit increase, -to improve strategy and tools;amounts, % of recovery;

-the impact of credits in production increase and productivity -to focus strategy;improvement;

-the relevance of national policy proposed; -to decide extension or not of the pilot operations.

6. Training

-the quality, relevance and cost of initial training of all staff; -improve the cost effectiveness of the training;

-the appropriateness and possibilities to improve initialagricultural training programs;

-the regularity and relevance of continuous training of all staff; increase training's efficiency and relevance;

-the efficiency of collaboration between the ICAT, ITRA, MAEP ways and means to improve and expand collaboration with o-therand other training organizations; training organizations.

7. Administration and Finance

-the maintaining of records and accounts reflecting adequately -improvements to the accounting procedures;operations and financial conditions;

-the timely availability of certified copies of accounts as well as of -respect of delays for transmission of such accounts and auditthe annual audit report; reports;

-the respect of Bank's procedures with regards to procurement and -appropriate training to increase staff's capacities with regard todisbursement; procurement and disbursement;

-the eligibility of payments made under the special account; -proper use of special accounts;

-the efficiency of financial and administrative procedures; -improve such procedures;

-efficiency of the budgeting process and the responsibility of both -increasing financial responsibility at the regional level;the regional and national level for ICAT, ITRA and MAEP;

-73-Annex 11

Page 4 of 4

-the availability of counterpart funds, -timely release of these funds.

8. MonitoringlEvaluation of ICAT. ITRA. MAEP and rural credit

-the relevance of the indicators used by the M/E system; -improve the M/E system and training of M/F staff;

-the reliability of information; -procedures of data collecting and processing;

-the availability on the appropriate levels of M/E reports; -the production and distribution of M/E reports.

9 Revised estimate of the proiect impact during the first two years

10 Economic analysis of the proiect and second phase

-adequacy of data to prepare an economic analysis -based on data collected during the first phase of the project, aneconomic analysis to be prepared/updated.

Annex 12Page 1 of 5

REPUBLIC OF TOGO


SUMMARY OF IFAD'S REVIEW AND STRATEGIES

PRINCIPALES CARACTERISTIQUES DU FONDS DE DEVELOPPEMENTVILLAGEOIS (FDV)

I. CONTEXTE

Le Projet national d'appui aux services agricoles (PNASA) du Togo a ete prepare par iaBanque mondiale depuis janvier 1995. II vise, a travers une meilleure organisation desproducteurs et des groupes sociaux, une amelioration de la foumiture de services et intrants etl'incitation pour une meilleure commercialisation, a l'augmentation de la productivite desexploitations agricoles, F'amelioration des conditions de vie et la reduction de la pauvrete enmilieu rural.

Ces objectifs generaux devraient etre atteints grace a la mise en oeuvre de quatrescomposantes principales:

i) Appui aux services agricoles;ii) Renforcement de la recherche agricole;iii) Operations pilotes de credit rural; etiv) Assistance au Ministere du developpement rural.

Le cout total du Projet est evalue a 50,9 millions d'USD pour une periode de 5 ans. LaBanque mondiale, en tant que Chef de file, finance 25,0 millions d'USD, alors que la part duGouvernement s'eleve a 7,4 millions d'USD. Une partie des formations (1,2 million d'USD) estsupportee par le PNUD, tandis que la participation des organisations professionnelleseconomiques agricoles (OPEA) couvrira 2,4 millions d'USD. Le reste devra etre finance pard'autres bailleurs de fonds interesses, japonais (1,5 million d'USD).

Le FIDA propose de participer a ce Projet en financant 20% des couts de toutes lescomposantes, avec l'objectif principal d'orienter l'appui du Projet vers le groupe cible de petitsproducteurs, les femmes, les jeunes et les ruraux pauvres. Afin d'atteindre cet objectif, quicorrespond parfaitement a la politique du Gouvernement togolais et a la nouvelle strategie de laBanque mondiale (qui cible sa plus grande implication dans la lutte contre la pauvrete rurale),des missions d'appuis r6guliers d'un(e) consultant(e) en "Agriculture familiale et allegement dela pauvretd rurale", specifiquement orientees vers ces aspects, ont et inclues parmi les activitesdu Projet. Dans le meme but, le PNASA financera les parts des groupes cibles au capital socialde l'Institution de conseil et d'appui technique (ICAT) et l'Institut togolais de recherche agricole(ITRA) pour que les groupes economiquement les plus faibles bien que les plus nombreuxpuissent representer leurs interets dans la gestion et la programmation des deux institutions.Enfin, un Fonds de developpement villageois (FDV) sera initie en faveur des groupes de petits


producteurs, des femmes et des jeunes, principalement dans les villages hors cultures de rente,pour financer des amrnagements et infrastructures communautaires.

L'objectif de la presente Annexe est de donner les principales caracteristiques du Fondsde developpement villageois (FDV) pour lequel le PNASA contribuera a son initiation avec unmontant de 220 000 USD et qui sera ouvert A toutes autres contributions nationales et/ouetrangeres. Ce document devra servir de base pour l'elaboration (avec un appui exterieur sinecessaire) du manuel de procedures par l'ONG choisie pour la gestion du Fonds pendant uneperiode interimaire de deux ans.

II. PRINCIPALES CARACTERISTIQUES DU FONDS

L'objectif du Fonds sera: (a) d'atteindre les communautes de petits producteurs horsculture de rente, les femmes, les jeunes et les pauvres; (b) r6pondre A des besoins reelsd'investissements communautaires exprimes par les groupes sociaux vises; (c) contribuer AI'am6lioration de leur niveau de vie; et (d) faciliter les actions de vulgarisation agricole.

Les domaines d'investissement prevus (liste non exhaustive) seront lies A: (a) lagestion rationnelle et durable des terroirs: realisation de plans d'amenagement de terroirs,amenagement de bas-fonds et de mares, protection des ressources naturelles communales,pepinieres de reboisement villageois; et (b) I'amelioration des infrastructures communes:magasins de stockage d'intrants, greniers villageois, salles d'alphabetisation, cases de sante,petits ouvrages de desenclavement, puits/forages, amenagement des marches villageois.

Les activites du Fonds debuteront par une campagne d'information sur: (a) lesobjectifs du Fonds; (b) les possibilites d'acceder au Fonds (seules les organisations villageoisesregroupant les groupes cibles ou une majorite de populations cibles pourront y acceder pour lar6alisation d'investissements d'inter8t commun); (b) les criteres de selection des participants(adhesion aux conditions du FDV, organisation dynamique du groupe, volontge exprime par lamajorite du groupe, pas de conflits majeurs entre les groupes au niveau du village, etc.); (c) laprdsentation des propositions sur des formulaires prepares a cet effet par le FDV; et (d) lespossibilites d'appui (ONG, ICAT, ITRA, etc.) dans ce domaine.

La selection des demandes de participation aux actions du Fonds se fera des procedurestransparentes, simples et decentralisees au niveau des regions avec la participation des OPEA desgroupes cibles prioritaires. Pour les actions choisies, l'ICAT (I'ONG, l'OPEA) aidera lesvillages (organisations villageoises) dans l'elaboration d'un document simple de faisabilite del'action selon une procedure d6finie dans le manuel de procedures.

La mise en oeuvre des actions sera participative, les collectivites devront decider duchoix des investissements A realiser, des technologies utilisees, des modalites de realisation destravaux (par contrat avec de tacherons, des ONG ou autres entrepreneurs prives) et du suivi destravaux. La gestion et l'entretien des infrastructures seront a la charge des communautesvillageoises. Un cahier de charge precisera les modalit6s de gestion et d'acces aux installationscommunautaires realisees au moyen du FDV.

Les cofits des investissements prevus seront partages entre la participation propre desbeneficiaires de 30% en monnaie, materiaux de construction, batiments et/ou main-d'oeuvre et70% qui seront couverts par le Fonds (subventions). Ce partage des contributions pourra etre

-76-Annex 12

Page 3 of 5

modifie de commun accord avec les beneficiaires et d'autres bailleurs de fonds travaillant selonune approche semblable dans la zone et assurant dans tous les cas une participation minimum desbeneficiaires.

Le deboursement du Fonds sera decentralise au niveau des regions. Pour la realisationdes actions concretes au niveau des villages, des contrats seront signes entre le Fonds et uneassociation (groupement, organisation economique ou sociale) pour preciser les modalites et lesconditions de mise en oeuvre et de d6boursement des tranches successives des montantsaccordes. Un compte sera ouvert a la banque la plus proche au nom de l'association pour larealisation de l'investissement. Pour chaque tranche successive de financement, le suivi devraevaluer l'avancement des travaux en accord avec les termes du contrat; l'ordre de deboursementdevra etre contre-signe par deux personnes autorisees dont une, representera la communaute.Les redevances et une eventuelle contribution des beneficiaires pour la maintenance et lerenouvellement des investissements seront versees sur un compte ouvert au nom d'uneorganisation villageoise et constituant un fonds de roulement villageois pour aider i laperennisation des investissements.

La gestion du Fonds sera initiee par une ONG, puis apres une periode interimaire dedeux ans sera transferee aux organisations sociales etlou socioprofessionelles (OPEA)regroupant les petits producteurs hors cultures de rente, les femmes et les jeunes. Pendant cetteperiode interimaire aura lieu la consolidation, le renforcement et la formation des organisationsciblees par les activites du Fonds; elles seront aussi initiees a la mise en oeuvre desinvestissements et la gestion du Fonds.

L'ONG devra repondre a un certain nombre de criteres: (a) travailler au moins 5 ans auTogo dans l'appui au developpement rural; (b) avoir une experience dans la formation et la miseen oeuvre des micro-r6alisations en milieu rural; (c) avoir une experience dans la gestionfinanciere et la tenue des cahiers des charges; et (d) avoir actuellement des activites au Togopour diminuer le cofit de l'assistance au FDV. Sur la base du present document le MAEP fera unpremier choix de trois ONG repondant le mieux a la realisation des objectifs du Fonds. UneONG sera selectionnee avec I'aide de l'ICAT et de l'ITRA et du (de la) consultant(e) en"Agriculture familiale et allegement de la pauvrete rurale". Elle devra preparer (avec un appuiexterieur si n6cessaire) dans un d6lai de deux mois la version provisoire du manuel deprocedures qui sera envoy6 aux bailleurs de fonds (IDA et FIDA) pour commentaires avant lafinalisation. Le document sera finalise lors de la seconde mission d'appui technique avec le(a)consultant(e) en "Agriculture familiale et all6gement de la pauvrete rurale". La versiondefinitive, y inclus la proposition de couts de gestion de l'ONG pour la periode interimaire et leprogramme pour la premiere annee, sera envoyee pour approbation a l'IDA et au FIDA deuxmois plus tard. DMs l'approbation du FIDA, la premiere tranche sera versee sur un comptebancaire. Le FDV devrait 8tre operationnel en seconde annee du PNASA.

Durant la periode de 3 ans de la mise en oeuvre des actions financees par le FDV, leFIDA et le cas echeant, d'autres contribuables (bailleurs de fonds bi et multi-lateraux desireux decontribuer aux investissements de base en milieu rural) au financement du fonds recevront desrapports semi-annuals d'activites. Les activit6s seront aussi suivies et 6valuees par le(a)consultant(e) qui formnulera durant ses mission au Togo (apres discussions avec l'ONG et lesOPEA) des recommandations pour la poursuite des activites du Fonds. L'Unite de suivi etevaluation de l'ICAT et des representants des groupes sociaux concernes, seront aussi impliquesdans le processus.


III. PREPARATION DU MANUEL DE PROCEDURES DU FONDS DEDEVELOPPEMENT VILLAGEOIS (FDV)

Le manuel de procedures du Fonds devra contenir:

A. Description des informations sur le Fonds, destinees a une large diffusion atravers les services d'appui au monde rural et les media:

* Objectifs du Fonds* Domaines d'investissement possible* Principes de financement (couit minimum/maximum, participation

villageoise, subvention du PNASA)* Conditions de participation* Presentation de candidatures* Selection des candidatures* Preparation de la documentation pour des actions (investissements)* Gestion des realisations

B. Domaines d'investissement:

* Gestion rationnelle et durable des terroirs villageois: plansd'amenagement de terroirs, amenagement de bas-fonds et de mares,protection des ressources communales, amenagement des espacesintervillageois, pepinieres de reboisement villageois, etc.

* Amdlioration des infrastructures communes: magasins de stockaged'intrants, greniers villageois, salles d'alphabetisation, cases de sante,petits ouvrages de desenclavement, puits/forages, amenagement desmarches villageois, etc.

C. Principes de financement des investissements:

* Financement minimum et maximum* Participation villageoise: monnaie, materiaux de construction, main-

d'oeuvre, transport* Subvention du projet

D. Conditions de participation:

Appartenance a un groupe cible (petits producteurs, femmes, jeunes,ruraux pauvres, hors culture de rente)Adhesion volontaire aux conditions du FDVOrganisation dynamique du(des) groupe(s) cible(s)Pas de conflits majeurs entre les groupes et les autres villageois

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Page 5 of 5

E. Presentation et selection des candidatures:* Demande par ecrit en fran9ais ou en langue nationale sur imprime

prepare a cet occasion par le Fonds* Investissement prioritaire pour le groupe* Attestation d'un agent de vulgarisation sur la validite de la demande* Correspondance avec les conditions d'adhesion

F. Preparation de la documentation pour les actions (investissements):* Document simplifie de faisabilite selon modele prepare a cet effet par le

fonds* Possibilite d'appui de la part de l'ICAT, de l'ITRA, des ONG

G. Approche (participative) pour le choix des actions, des technologies et de la miseen oeuvre:* Choix des actions (investissement)* Choix des technologies adaptdes* Modalitds de mise en oeuvre

H. Contrat entre le Fonds et les communautes pour un investissement, sur imprimeprepare ia cet effet par le Fonds

1. Contrat pour la realisation des travaux entre la Communaute, les services prives,ONG, etc., sur imprime prepare a cet effet par le Fonds

J. Deboursements des fonds par le Projet

K. Deboursement des fonds pour les investissements villageois

L. Suivi et evaluation des investissements villageois:- OPEA et ONG (pour la periode interimaire)* Groupes cibles concernes

M. Fonds de roulement villageois:* Entretien des investisssements* Renouvellement des investissements

N. Financement et gestion du FDV

0. Suivi et evaluation du FDV* LePNASA* L'ICAT* Le MAEP

P. Rapports

R. Litiges.

-79-Annex 13

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REPUBLIC OF TOGO


PROJECT DOCUMENTATION

PREPARATORY STUDIES:1. FAO, 1994/1995: Preparation du Plan de restructuration des institutions rurales (PRIR) (Projet FAO/TCP/TOG/4.)

2. MAEPET, FAO, mars 1995: Proposition de politique agricole.

3. Banque Mondiale/ MAEPET (P. Debouvry), 1995: Etude du dispositif de formation agricole.

4. MAEPET, BM, PVA (Mme. A. J. Atchikiti et Mme. E.V.Womitso); mai 1994: Role des femmes et les moyens de leurintdgration dans les services de vulgarisation.

5. FAO/CP, Banque Mondiale, mars 1995: (ICR). Agricultural Extension project (cr. 1808-TO

6. MAEPET/DVA, avril 1995: Guide de la vulgarisation au Togo. (Atakpame avril 1995).

7. ISNAR, mai 1995: Diagnostic de la recherche agricole.

8. MAEPET, juin 1995: Declaration de politique de la recherche agricole.

9. Direction de la recherche agricole, octobre 1995: Preparation de la composante Recherche agricole (version provisoire).

10. SAFECO, avril 1995: Inventaire et diagnostic des institutions financieres en milieu rural.

11. SOCODEVI, SYNORSEC et FUCEC, octobre 1995: Propositions pour la composante de credit mutuel rural.

12. CESAO/FONGTO, avril 1995: Evaluation de la capacite institutionnelle des ONG en milieu rural.

13. MAEPET/ Banque Mondiale (J.P. Koffi et M. Foli), juin 1995: problemes fonciers en milieu rural au Togo.

14. Analyse de la ldgislation cooperative.

15. (IFDC) le systeme de vente des intrants et les propositions de privatisation.

16. Le ddsengagement de l'Etat de 1'exdcution des infrastructures.

17. Les contraintes a l'extension de la traction animale et propositions operationnelles.

18. Les strategies paysannes dans l'Ouest Togo.

19. Le processus de privation des ranchs.et de la fonction veterinaire.

20. L'amelioration de la transformation des produits agricoles.

WORKING PAPER:1. Vulgarisation agricole2. Crddit rural mutuel3. Ressources humaines4. Mise en oeuvre du Projet national d'appui aux services agricoles5. Gestion6. Aspectsjuridiques et institutionnels

MAP SECTION

- BURKINA FASO .r MALI

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IMAGING

Report No.: 16098 TOType: A

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