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The World Bank

FOR OFFICIAL USE ONLY

Report No. 8214-AL

STAFF APPRAISAL REPORT

IEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA

AGRICULTURAL RESEARCH AND PILOT EXTENSION PROJECT

MAY 11, 1990

Country Department IIEurope, Middle East and North Africa Regional OfficeAgriculture Operations Division

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

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CURRENCY EOUIVALENTSCurrency Unit Algerian DinarUS$1.00 DA8.10DA1.00 US$0.123

As of January 31, 1990

WEIGHTS AND MEASURES

The metric system is used throughout this report.

FISCAL YEARJanuary 1 - December 31

GLOSSARY OF ABBREVIATIONS

ACV Field Extension AgentAgent communal de vulgarisation

BFV Training and Extension BureauBureau de formation et de vulgarisation

CFVA Training and Extension CenterCentre de formation et de vulgarisation agricole

CNPA National Center for Agricultural TrainingCentre national de p6dagogie agricole

CNVA National Extension CommitteeConseil national de vulgarisation

CRRA Regional Agricultural Research CenterCentre R6gional de recherche Ggronomique

CRP Plant Disease Research CenterCentre de recherche phytotechnique

CSRDA Scientific Commsittee for Farming Systems ResearchConseil scientifique de recherche-d6veloppement en agriculture

CVW Wilaya Extension CommitteeComit6 de vulgarisation de Wilaya

DAD Daira Agricultural OfficeD616gation agricole de la Daira

DAS Socialist FarmDomaine agricole socialiste

DVIR Extension and Rural Institutions DepartmentDirection de la vulgarisation et des institutions rurales

EAC Farm CooperativeEntreprise agricole collective

FE Experimental FarmFerme exp6rimentale

HCR Commission for ResearchHaut commissariat a la recherche

INPV National Institute for Crop ProtectionInstitut national de protection des v6g6taux

INRA National Institute for Agricultural ResearchInstitut national de la recherche agronomique d'Alg6rie

INSA National Institute for Animal HealthInstitut national de sant6 animale

INSID National Institute for Soils. Irrigation and DrainingInstitut national des sols, de l'irrigation et du drainage

ITAF National Institute for Fruit and VinesInstitut technique de l'arboriculture fruitiare et de la vigne

ITCMI National Institute for Commercial Vegetable CropsInstitut technique des cultures maraichAres industrielles

ITDAS National Institute for Saharan AgricultureInstitut technique de d6veloppement de I agriculture saharienne

ITEBO National Institute for Cattle and Sheep Raising.:r.stitut technique de 1V6levage bovin et ovin

ITGC National Institute for Field CropsInstitut technique des grandes cultures

ITPE National Institute for Small LivestockInstitute technique des petits elevages

MA Ministry of AgricultureMinistAre de l agriculture

SAU Useful Agricultural AreaSurface agricole utile

FOR OMCIAL USE ONLY


DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA

AGRICULTUtRAL RESEARCH AND PILOT EXTENSION PROJECT

Loan and Project Summarv

Borrower: Democratic and Popular Republic of Algeria

Amount: US$32 Million equivalent

Terms: 15 years including five years grace, at the standard variableinterest.

Executing Agencies: National Institute for Agricultural Research (INRA)National Center for Agricultural Training (CNPA)

Proiect Description: The project would comprise a five-year program to help theGovernment develop improved national research and extensionservices. The research sub-project would develop and test proposalsto reform agricultural research, including: (a) strengthening ofINRA for coordinating programs and carrying out basic research; (b)implementing through INRA, ITCC, INPV and ITEBO five priorityresearch themes including wheat and barley, legumes, forage crops,red meat production and cereal/livestock farming system; (c)application of programming by objectives to research implementation;(d) upgrading five experimental stations to regional researchcenters, decentralization of station management and establishment ofresearch/development units; (e) staff training and technicalassistance. The extension sub-project would comprise a pilotprogram to test approaches for developing a national extensionservice in a second phase and would include: (a) strengthening ofextension services in 20 districts containing about 160,000 farms;(b) provision of improved research - extension - farmer linkagethrough the research/development approach; (c) training, technicalassistance and fellowships; (d) strengthening of CNPA to manage thesub-project and con-inue its training and audio-visual programs; (e)establishment of Monitoring and Evaluation units at CNPA and in theWilayate.

Benefits and Risks: The project would have substantial benefits through putting in placethe means to develop an effective national agricultural researchprogram, developing an extension service and promoting the moreefficient use of land and water resources and farm inputs for thebenefit of the environment. The main risks relate to (i) possibledelays in transferring the required numbers of trained staff workingin agricultural research and extension; (ii) budget shortfalls; and(iii) shortage of farm inputs which could nullify the impact of theextension program. The risks relating to research staff build uphave been reduced by bringing terms and conditions of employmentcl"ser to those of university staff and by requiring trainees towork for the institutes for a fixed time following completion oftheir training. Funding risks have been minimized by inclusion ofthe project in the five year plan. Availability of adequatequantities of inputs is linked to the availability of foreignexchange. Covernment has declared that priority will be given tothe allocation of foreign exchange to agriculture.

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

(ii)

Estimated Project Costs a/ Local Foreign Total---------- US Million--------

Research Component 22.3 13.6 35.9Extension Component 15.0 4.2 19.2

Total Base Costs 37.3 17.8 55.1

Physical Contingencies 1.2 1.5 2.7Price Contingencies 14.3 2.8 171A

Total Project Costs 52.8 22.1 74.9

Financing Plan Local Foreign Total-----------USS Million---------

World Bank 9.9 22.1 32.0Government 31.8 - 31.8

Net Project Cost 41.7 22.1 63.8Taxes and Duties 11.1 - 11.1Total Project Costs 52.8 22.1 74.9

Estimated Disbursement

Bank FY 1991 1992 1993 1994 1995 1996 1997--------------------US$ Million----------------

Annual 2.0 1.5 5.0 6.5 8.0 6.0 3.0Cumulative 2.0 3.5 8.5 15.0 23.0 29.0 32.0

Economic Rate of Return: n.a

Map. No. IBRD 21081 Research NetworkIBRD 21119 Extension Network

g/ Including of US$11.1 million taxes and duties




Table of Contents

Page

I INTRODUCTION . . . . . . . . . . . . . . . . . . . 1

II THE AGRICULTURAL SECTOR . . . . . . . . . . . . . . 1

A. Physical and Macro-Economic Setting . . . . . . 1B. Experience with Past Lending in the Sector . . . 4

III AGRICULTURAL RESEARCH AND EXTENSION IN ALGERIA . . 5

A. Agricultural Research . . . . . . . . . . . . . 5B. Agricultural Extension . . . . . . . . . . . . . 9

IV THE PROJECT .... . . . . . ...... . . . . . 13

A. Project Rationale and Objectives . . . . . . . . 13B. Summary Project Description . . . . . . . . . . 14C. Detailed Description . . . . . . . . . . . . . . 15D. Cost Estimates .18E. Financing .19F. Procurement .20G. Disbursements 22

V PROJECT IMPLEMENTATION . . . . . . . . . . . . . . 24

A. Overall .24B. Research . . . . . . . . . . . . . . . . . . . . 24C. Extension .28D. Research and Extension Links . . . . . . . . . . 30E. Reporting . . . . . . . . . . . . . . . . . . . 31F. Accounts and audit . . . . . . . . . . . . . . . 31G. Supervision .31

VI BENEFITS, ENVIRONMENTAL IMPACT AND RISKS . . . . . 31

VII SUMMARY OF AGREEMENTS AND RECOMMENDATION . . . . . 33

This report is based on the findings of an appraisal mission which visitedAlgeria in June 1989, composed of Mr. J. Cole, (Mission Leader) Bank, andMessrs. A. B&ndarin (Architect), F. Reeb (Agriculturist), P. Roche (ResearchSpecialist), and J. Sarraute (Management Specialist), Consultants.


nFEMOCRATIC AND POPUL-AR REPUBLIC OF ALGFP!A


Table of contents (continued)

Charts:

1. Research Organization2. Extension Organization3. Implementation Research sub-project4. Implementation Extension sub-project

Annexes:

1. Total acreage and production2. Research implementation plan3. Extension implementation plan4. Summary Cost Estimates5. Disbursement Schedule6. Proposed Bank supervision input into key activities7. Selected documents available in project file

Ma-Ds:

1. 1BRD 21081 Research Network2. IBRD 21119 Extension Network




I. INTRODUCTION

1.01 Following an agricultural sector review in 1985/86, the AlgerianGovernment and the Bank started a dialogue on the constraints to, andpotential for, building effective research and extension services in supportof agriculturai development. A joint Bank and FAO/CP mission identified theproject in April/May 1987 and three subsequent FAO/CP missions betweenSeptember and December 1987, worked with the Ministry of Agriculture, the"Centre National de P6dagogie Agricole" (CNPA) and the "Institut National dela Recherche Agronomique d'Algerie" (INRA) on project preparation. Theproject was preappraised in June 1988 but appraisal was subsequently delayedawaiting Government's decision on the organization of research and extensionservices. The project was appraised in June 1989.

II. THE AGRIC_UURAL SECTOR

A. Physical and Macro-Economic SettingPhysical Setting

2.01 About 20%, 47 M ha, of Algeria's total land area of 238 M ha issuitable for agriculture and of this only some 7.5 M ha, or 3%, is suitablefor cultivation; the balance of the agricultural land is comprised of grazing,forests, esparto scrub and shrubs. Of the 7.5 M ha, about 40% is left fallow,slightly less than 40% is planted in cereals, 10% in forage crops, and theremaining 10% are devoted mostly to fruit and vegetable cultivation (1986 landuse data). The livestock population includes 15.8 M sheep, 2.5 M goats and1.3 K cattle. Some 52% of Algeria's 23 million people live in the rural areasand agriculture provides employment for 25% of the labor force. During thelast ten years population growth has averaged overall about 3.2%; but in ruralareas it has averaged only 1.2% due to outmigration.

2.02 Agricultural development in Algeria faces a numb3r of physicalconstraints: (a) the high proportion of land unusable for agriculture and ofrangelands as yet difficult to improve; (b) the high proportion of land withshallow, erodible soils of low organic content; (c) climatic factors includingerratic and low rainfall, cold winters coinciding with the rainy seasoninhibiting growth when water is available, and hot summers requiringirrigatson for crop growth; and (d) limited water resources for irrigation.

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The culti-vable land is distributed in six major agro-climatic zones asfollows:

Zone Rainfall Slope Cultivable Areamm X mln ha X

A >600 <12 0.3 4B 450 - 600 <12 1.5 20C 350 - 450 <12 3.5 47D 200 - 350 <12 1.1 14M >350 >12 0.8 11I Irrigated 0.3 4

TOTAL 7.5 100

2.03 Zone A which is hot and well watered is intensively cultivatedwith citrus, early vegetables etc. In Zones B and C which cover 66% of thecultivable land and include the plateau areas where winters are cold and cropssubject to late frosts, rainfall fluctuates sharply. Cropping in Zone B isdominantly a wheat/fallow rotation and in Zone C a barley/fallow rotation; theproportion of fallow varies from 25% in Zone B to 50% in zone C, whererainfall is more uncertain. In zone D, cereal cropping is irregular and50/60% is in grazed fallow. Zone M is well watered but, with steep slopes, issubject to severe erosion.

Economic Setting

2.04 In addition to these physical constraints, the development ofagriculture in Algeria has in the past been severoly limited by Algeria'seconomic development strategy after independence which concentrated onindustrialization at th" expense of agriculture. In agriculture, Governmentundertook an agrarian revolution after independence which included thecreation of socialist farms, and a shift from the export orientation developedduring the colonial period to meeting domestic food requirements. The impacton the agricultural sector was twofold: (i) deficiencies were encountered inthe production and distribution of key farm inputs which were totallycontrolled by public entities and, more importantly: (ii) socialist farms(DAS), which occupied the most fertile land and accounted for about 60% of theagricultural potential of the country, turned out to be inefficient producers.The outcome was sluggish agricultural growth and inefficient use of resources.

2.05 The contribution of agriculture to GDP decreased in the yearsafter independence partly due to the emphasis placed on investment in heavyindustries and the construction sector, and the growth in the oil and g sindu.try, but also because of stagnation in agricultural productivity. As aresult, the share of agriculture in aggregate value added declined from about13% in 1970 to 6 - 8% in the 1980s. The growth of the agriculture sector overthe past 20 years, at about 3.2% p.a. in real terms (a reasonable growth ratein world terms), has been insufficient to keep pace with growing demand. Muchof the growth can be attributed to a rapid increase in prices of fruit andvegetables and the supply response to these increasing prices. At the same

3

time, the production of staple foods (grains & pulses) has stagnated and, withgrowing per capita incomes (averaging about 3.5% p.a.) and increasingpopulation, the food gap has widened significantly. Some 70% of basic foodneeds are now imported compared to only 25% in the 1966/70 period; in 1980/84Algeria had to spend almost 15% of its merchandise export earnings to importfoodstuffs. The decline has been particularly severe for cereals, two thirdsof which are now imported. The value of food exports (wine, fruits &vegetables) has also fallen by almost 90% between 1972 and 1983, andagriculture now accounts for less than 1% of total exports.

2.06 The poor performance has been attributed to many factors.Although agriculture has been favored in terms of relative pricing and hasbenefitted from an effort to provide at least the socialist sector farms withsufficient equipment and inputs, production has shown little response toinvest?ments. Yields of most crops have stagnated, with the exception of fruitand vegetables, and are only abouut 50% - 70% uf those in neighboring countrieswith similar climatic and soil conditions. Rainfall is an important limitingfactor and cultural practices are often badly adapted and carried out toolate. However, the poor performance of the socialist sector was also aproblem. Until 1987, the socialist state-owned and run farming sectoroccupied the most fertile land in the country and had first call on availableinputs, equipment and credit. The DAS occupied about 33% of the cropped areaand produced 40 - 50% of the cereals (wheat & barley) and 20 - 30% of fruitsand vegetables. The yields of cereals have been slightly higher on the DASthan in the private sector due to greater availability of inputs. For fruitsand vegetables with a high labor content, yields have been significantlyhigher (20 - 100%) on the private farms. The DAS had almost continuousoperating deficits a.-.d were a drain on Government resources. The private,small-scale farmers, by coatrast, have performed considerably better in spiteof the handicaps. Where J-.puts have been available yields have been higherand they have responded to opportunities in the poultry sub-sector, fruit: andvegetable production and land development in the southern part of the country.

Recent Reforms: the BreakuD of the State Farms

2.07 In an attempt to improve agricultural performance, Government has,however, since 1980, increasingly liberalized the sector and this has given anew impetus to growth. It reduced its involvement in marketing of fruits andvegetables, and allowed, on a limited scale, private trading of most inputsand equipment spare parts. Private farmers' access to inputs, equipment andcredit has been increased and a seriej of reforms were tried to iuprove DASperformance. These reforms culminated in the decision in 1987 to replace theDAS with private voluntary co,peratives (Exploitations Agricoles Collectives[EAC] and Exploitations Agricoles Individuelles [EAIs]) which would operateindependently, fret. of Government interference. By the end of 1988, some25,000 EACs and EAIs had been created, the EACs with a minimum of threeindividuals but more generally 6 - 7 from the same affinity or family group.Apart from a few large EAC (e.g. dairy farms) which will be retained ascooperatives, the majority operate like private farms responsible forarranging their own credit from the "Banque de l'Agriculture et deDeveloppement Rural" (BADR), or other banks, and their own planning andmanagement. Government is expected to maintain a strategy of disengaging the

4

public sector from direct production, reinforcing its support services andincreasing the role of the private sector in input supply. More developedcrvl.ev for research end extensior. arc n.2w urgently requircd to support thesereforms.

B. Experience with Past Lending in the Sector

2.08 Bank Group lending for agriculture started in 1974, and to dateeight projects for a total of US$399 million of loans have been approved.These include the Technical Assistance/Rural Development Project (ln1159-ALG), the Meat Industry Project (ln 1739-ALG), the Bas Cheliff IrrigationProject (ln 1802-ALG), the Cheliff Irrigation Project (ln 2809-ALG), theIrrigation Engineering loan (ln 2978-ALG), the Desert Locust Control Project(ln 3017-ALG), the West Mitidja Irrigation Project (ln 3076-ALG) and theAgricultural Credit Project (ln 3009-ALG). Perfcrmance of these projects hasbeen mixed, reflecting the institutional constraints in the sector. AProject Performance Audit Report has been prepared on the TechnicalAssistance/Rural Development Project and Project Completion Reports areavailable on the Meat Industry and Bas Cheliff projects.

2.09 The Technical Assistance/Rural Development Project, which was thefirst cooperative effort between the Government and Bank in the AgriculturalSector, set out to prepare. test and implement different approaches tointegrated rural development, as a forerunner to widespread application. Theperformance of consultants was mixed and there was a lack of commitment andcoordination by the Ministry of Agriculture; eventually responsibility forimplementation was transferred to two semi-autonomous agencies. In spite ofconsiderable delays and shortcomings of some of the studies, the projectsucceeded in testing different approaches to agricultural development in thecountry. However, no significant experimental work or project implemeatationwas undertaken. The loan for the Meat Industry Proiect, which was for theconstruction of sheep purchasing facilities and slaughterhouses, was cancelledat the Government's request before the design stage had been completed,following an apparent change of policy on red meat supply and marketing. IThBas-Cheliff Irrigation Project, which included the rehabilitation of headworkssupplying 5000 hectares and studies for a follow-up project, was successfullyimplemented. In spite of lengthy delays in implementation, the projectobjectives were met. The physical works were completed, the studies have beenused in further devel3pment of the river basin and Ministry of Hydraulicsstaff were trained. The main lessons learned from the implementation of theseprojects are to: (i) proceed with caution in project design and ensure thefull commitment of Government at each stage of preparation; (ii) complete asmuch as possible of the design process and bidding documents prior tonegotiations so as t) avoid implementation delays; and (iii) ensure the'bidding procedures are cost-effective. These lessons have been taken intoaccount in designing the proposed project - for example gradual implementationof the research component and the pilot nature of the extension component(para 4.03).

2.10 From 1980 until mid-1986, the Bank had limited involvement inAlgerian agriculture, with the exception of the two ongoing projects. Morerecently the Bank and Government have begun to develop a policy dialogue and a

5

lending program to address some of the major issues facing the sector. TheBank's current involvement in the sector aims to support the recentprivatization of agriculture by: (a) improving the a-vailablity of basicinputs to agriculture; (b) assisting the development of institutions andservices and their adaptation to the new environment, particularly forirrigation, credit, research and extension; and (c) fostering theestablishment of a sound prices and incentives policy. Work in associationwith UNDP is aimed at expanding fertilizer supplies as a part of a largerprogram of studies on input distribution and including work by the EEC on seedand pesticide supply. A credit project in support of BADR's increased needsin face of the dismantling of the DAS has been appi4ved. In addition, throughthe Cheliff Irrigation Project, effective January 28, 1988, and the WestMitidja Irrigation Project, approved in May 1989, the Bank is involved in thepractical aspects of restructuring the DAS into technically and economicallyviable units, as well as supporting the institutional framework for successfuloperation and maintenance of irrigation schemes.

III AGRICULTURAL RESEARCH AND EXTENSION IN ALGERIA

A. Agricultural Research

3.01 LonLg Term Obiectives. Government's long term objective is tocreate a strong research base from which to increase agricultural productionso as to reduce dependence on imported foodstuffs and to raise farm incomelevels. In pursuit of this objective, Government intends to strengthen theresearch institutions to make better use of available staff resources, topromote the regionalisation of research activities and to work on selectedpriority programs in which research operations would be rigorously planned,budgeted and results monitored. The objective would be to create wellequipped, multi-disciplinary research stations to carry out these programs ineach of the main agro-ecological zones. Ultimately each regional center wouldbe expected to become a point of reference and support for all institutionsworking on regional and national programs.

3.02 Research institutions. The "Institut National de la RechercheAgronomique d'Algerie" (INRA) was created in 1966 and until 1970 wasresponsible for carrying out research in the agriculture sector. Between 1970and 1981 most of the resources and research activities were transferred tosome twelve technical institutes and INRA's role was severely reduced. Then,in 1986, Government mounted a series of reforms to redress major problemsarising from a poor and frequently changing organization, weak staffing, lackof coordination between research institutes and absence of managerialautonomy. A high level commission, the "Haut Commissariat a la Recherche"(HCR) was created to oversee research in all sectors. Within agriculture, acoordinating body, the "Conseil scientifique de recherche-developpement enagriculture" (CSRDA), was set up and the number of institutes reduced to ten -INRA plus nine technical institutes, as follows:

- INRA which is responsible for research of overall interest;

6

- five technical institutes by product covering cereals, etc (ITGC),fruit trees & vines (ITAF), vegetables (ITCMI), beef & sheep(ITEBO), small livestock (ITPE);

- three technical institutes by discipline covering crop protection(INPV), animal health (INSA), soils, irrigation & drainage(INSID); and

- an institute for saharan agronomy (ITDAS).

3.03 INRA has the responsibility for: (i) basic agricultural research;(ii) coordination of applied research at the national level; and (il4)coordination of training of research staff and use of technical assistance.Although INRA was given these responsibilities in 1986, its statutes harlstill to be amended to confirm its role as the coordinating institution, andthere is as yet little cross sub-sector coordination of research. A furtherproblem is the lack of long term career prospects for research staff and theresulting high turnover. Some progress has been made recently with theagreement on an improved structure for INRA and the agreement to align thesalaries of its research staff with those applied to university researchscientists.

3.04 The five technical institutes orientated by production were set upby decree of 11/03/87. They are responsible for: (i) carrying out programs ofapplied research and adaptation of new planting and livestock materials; (ii)seed multiplication; (iii) certification and quality control of new plantingand livestock materials; and (iv) the diffusion of new technologies incollaboration with the extension services. Each institution is managed by adirector general reporting to a Board and guided by a scientific and technicalcommittee. The research stations and experimental farms are operated asseparate entities but do not have management autonomy and all payments have tobe made by headquarters. Provisions for decentralizing budgets have beenapproved but are not yet applied.

3.05 The institutes orientated by disciDline cover, inter alia,diagnostic and control work in three areas: plant protection through INPV,animal health control through INSA, and soil mapping/analysis as well asmonitoring of irrigation water through INSID which is hardly operational.

3.06 Staffing. Scientific staff working in INRA and the five largesttechnical institutes totals 245, of which 95 have doctorates or mastersdegrees. In addition, there are some 300 technicians and about 400administr,tive staff; a relatively high ratio of administrative to scientificstaff. Due to the lack of special terms and conditions of employment forresearch staff, it is difficult to attract suitably qualified staff for seniorpositions or to apply an effective system of job evaluation.

3.07 Financial Resources. Total expenditure on agricultural researchis estimated at about 0.3% of the agriculture GNP, below the average for

7

developing countries of 0.5% and less than a third of the target of 1% set byFAO as necessary for achieving reasonable progress in production technologies.The major part of the resources of INRA and the technical institutes isprovided by government budget, only 7% coming from sale of produce fromresearch farms. Only some 20% of the investment program included in the fiveyear plan (1985/89) has been realized due both to shortage of funds and thelengthy procedures for procurement of goods and services. Of the operatingbudget, too high a proportion goes on salaries - 84% against 16% on othercosts. Public accounting procedures are applied with a priori control ofexpenditures which greatly hinder payments. Delays in availability of creditsbetween the end of one financial year and the start of another, curtailresearch activities.

3.08 Infrastructure. The institutes are generally well provided withbuildings although many of these date from well before independence, areexpensive to maintain, and not always well adapted for research purposes.Much of the equipment is old and often not suitable for using modern researchmethods. There is, however, a good network of some 40 experimental farmscovering a total of about 3000 hectares. Facilities at these farms aregenerally in need of upgrading. Documentation facilities are rudimentary.

3.09 International links. ITGC has a rumber of conventions withinternational bodies, including: with CIMMYT and ICARDA for research oncereals and grain legumes and with FAO for plant resources. In addition,ITGC has project support frrm IFAD for development of cereal systems atTiaret; and with the French cooperation for two regional programs in farmingsystems research at Sidi Bel Abbes and Setif. ITEBO has a program with Canadafor research on milk production and is participating in the IFAD project atTiaret. ITCMI has a program with Canada on potatoes.

3.10 Research Program and Results. The ongoing research program hasdeveloped certain technical messages which are sufficiently well advanced forimmediate transmission to the farmers through extension services. Theseinclude the following: For cereals, the main emphasis is on developingimproved varieties of wheat and barley, and better cultural practices(fertilization and weed control techniques). On-farm yields of improvedvarieties range from 2 to 3 tons/ha in rainfall zones exceeding 400/500 mmcompared with an average of 1 to 1 1/2 tons/ha for traditional varieties.Field legume programs are orientated to developing more productive varietiesand better mechanical handling. Winter chickpeas developed from ICARDAmaterial offer the possibility of doubling yields compared to traditionalspring varieties. Forage crop research is focussed on developing new mixturesto replace oats/vetches. Work is at the trial stage and forage peas/oats andforage peas/triticale mixtures show promising results. Livestock researchincludes work on milk production, on beef production from local races andcrosses with imported animals, on the Hamra sheep breed and on the feed valueof local and introduced forage crops. Research on fruit trees and coveredvegetables includes development of improved planting material and a range ofcultural practices, and is well advanzed with certain technical messages.

3.11 The weakness of the existing research programs lies in the poordefinition of objectives, the lack of well defined priorities and inadequate

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coordination in both planning and execution. Although these programs haveyielded some positive results as indicated above, the technicalrecommendations do not always respond to the demands of the predominatelymixed crop and livestock system, nor have the needs of field crops in theirrigated areas been tackled. A major factor has been the lack ofcoordination between the technical institutes. ITGC and ITEBO, for example,work independently of each other on forage crop development and there is nowork on farming systems. ITGC has also concentrated on varietal improvementand, in the absence of effective extension services, has emphasizeddemonstration and extension of existing technical messages, at the expense ofthe applied research needed for future advances. In addition, ITGC has alsodevoted much management time and resources to seed production. The successfulrealization of well directed agricultural research programs will be a keyfactor in implementing the sector development strategy, which aims to reducethe considerable gap in yields between Algeria and the neighboring countries,intensify cropping by a reduction in the fallow, step up production fromirrigated areas and raise the efficiency of water use. The major constraintsto be tackled by the project in putting in place the programs required to meetthese goals are summarized below.

3.12 Constraints to Development of Agricultural Research. Duringproject preparation, action in the following key areas was identified asessential for revitalizing the research program:

(a) INRA Organization and Approval of Statutes. INRA has a key roleto play in coordinating programs across technical institutes andproviding "upstream" basic research. An improved structure forINRA has recently been approved but the neeessary amendments toits statutes which would provide it with the necessary authorityto play a coordinating role and which have been underconsideration by the Higher Research Council (HCR) since 1986,have still to be approved. Prior to negotiations, Governmentissued a directive confirming INRA as the coordinating agency forthe project's research component and during negotiationsassurances were obtained that not later than June 30, 1991, INRAwould be vested with all necessary powers and authority to confirmits coordination role for the national research program (para5.05).

(b) Status and Numbers of Research Personnel. The research andextension services face difficulties due to the lack of recognizedcareer paths for staff and remuneration levels which are notcompetitive with the private sector. For research, a recognizedcareer path is required to attract capable scientists. Thealignment of INRA research scientists' remuneration levels withthose of university staff was approved in May 1989 but acomprehensive statute detailing the terms and conditions ofemployment has still to be prepared. Furthermore, the HCR does notaccept that this be applied also to staff of the TechnicalInstitutes since the majority of their work is on seed productionrather than research. Under the project this will change; jointresearch teams from INRA and the concerned Technical Institutes

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will be set up to work on the priority programs (para 4.07). Thesame terms and conditions of employwent must then be applied alsoto those research scientists at the Technical Institutes doingequivalent work in these teams. Assurances were obtained duringnegotiations that the necessary changes in the structure ofsalaries and employment benefits of research scientists would beintroduced by December 31, 1991 (para 5.10). A "statut de corpstechnique" for research support staff is under preparation andwould be applied under the project. The project includes anincrease in the number of research personnel and assurances wereobtained at negotiations that financing for the required postswould be provided in the five year plan (para 4.08).

(c) Research Programs. In correcting the weaknesses of ill-definedobjectives and poor coordination outlined in paragraph 3.11,planning and budgeting procedures will require a totalreorganization and the technical cot-tent of programs will requireredirection. Much greater emphasis should be given to productionagronomy (e.g. weed control, land management) to redress the overconcentration on varietal improvement of existing programs, andresearch on the main farming systems should be started. Somestrengthening of the more basic research in soils, bioclimatologyand plant physiology would also be desirable to back-up the cropprograms. Development of good links between research staff andfarmers and extension workers in the Wilaya will be essential inorder to have their participation when identifying researchpriorities as well as for the dissemination of results. Theproject would provide for broadening the applied research programincluding work on the cereal-livestock system, for strengtheningbasic research, and for building adequate links to farmers throughthe extension services (para 5.20).

(d) Financial and administrative controls. Government controls whichhave placed severe limitations on the efficient operation of bothresearch and extension services in the past, are gradually beingrelaxed as part of the Government's economic reform program.However, delays in the release of funds at the start of each yearcould still be a problem, and project operations could beeffectively blocked for three to four months for lack of operatingfunds. Also, in spite of existing provisions permittingdecentralization of research station accounting and fundmanagement, responsibility for use of funds remains centralized atthe headquarters of each research institute in Algiers. Theproject would provide for the application cf these provisions andthe putting in place of a system to assure funding continuity fromone year to the next (para 5.11).

B. Agricultural Extension

3.13 Long Term Objectives. Government's long term objective is toestablish a coherent agricultural extension service throughout the mainfarming areas which will inform farmers of improved farming techniques while,

10

at the same time, facilitating the feed-back from farmers to researchservices. The service would be established progressively to cover the majoragro-ecological zones and should be responsive to the demands for advice froma very diverse farming population. A major effort would be made to graduallyupgrade the level of extension personnel through training in technology,communications and diagnostic techniques. The development of private serviceswhere appropriate (e.g. for intensive fruits and vegetables and large privatefarms) would also be encouraged.

3.14 Agricultural Extension Institutions. In 1985, Government issueda national extension policy and structure to put in place appropriate staffingand management, to improve the technical content of the extension system andto improve the farmer/extension/research linkage. The extension structureincludes the administration's coordination units and services at central,Wilaya, Daira and Commune level'/, the "Centre National de la PedagogieAgricole" (CNPA) and the "Centres de Formation et de Vulgarisation Agricole"(CFVA). To date, field extension activities have never addressed the needs ofthe private sector. In the past the techitical research institutes carriedlimited extension activities mostly oriented to the socialist farms (DAS).The DAS also benefitted from technical support and information from unitsattached to the Ministry of Agriculture which advised the DAS - the "Secteurde Developpement Agricole", or SDAs. These activities, often considered to beextension, consisted in reality of farm management advice and had nothing todo with extension to individual farmers. Therefore, an extension service inthe real sense now has to be established from scratch. The presentcomposition and role of the existing structure is reviewed briefly below.

3.15 The Administration's Extension Services. The services whichremain following the breakup of the socialist farms in 1987, comprise: (i) anational committee ("Conseil national de la vulgarisation' - CNVA) chaired bythe minister of agriculture and on which are represented the ministry'stechnical divisions, CNPA, the research institutes, HCR, the training centers,the Wilayate, or Governorates, and the National Union of agriculturalproducers; (ii) the "Direction de la Vulgarisation et des InstitutionsRurales" (DVIR) of the Ministry of Agriculture, which has a purelyadministrative role; 'iii) an extension committee in each Wilaya grouping allbranches concerned with production; (iv) the "Bureau de Formation et deVulgarisation" (BFV) within each "Division de Developpement des ActivitiesHydrauliques et Agricoles" at each Wilaya which provides administrative andtechnical support to the extension staff in the Daira, or district; (v) the"Delegations Agricoles des Dairas" (DAD) responsible for managing fieldservices; and (vi) the field extension agents at the level of each commune, orvillage - "agents communaux de vulgarisation" (ACV).

3.16 Extension Activities. Due to lack of programs, organization,vehicles, equipment and budget, the skeletal extension service whose agents

'/ Algeria's administrative structure divides regional Governmentservices by Wilaya (of which there are 48), Daira (there are 3-5 dairaper Wilaya), and commune (4-12 communes per Daira).

11

are based in communes, could only carry out administrative tasks for farmersof the private sector in the past. Now, following the dissolution of thestructure that supported the DAS, the extension program is in a state ofchange. For the first time in 1987/88, the outline of a national extensionprogram was drawn up, priority extension themes were identified and theresources and action plans required to implement them in certain Wilayatedetermined. However, much remains to be done to assure the commitment of thenecessary resources for establishing a reliable extension organization and forthe training of staff.

3.17 Staffing. Following the breakup of the DAS and landdistribution which also benefitted Ministry of Agriculture officers, manystaff members left the government services while the others had to bere-appointed thus leaving the already very light extension structure entirelydisorganized. To date private small-scale farmers have been served bytechnician-level Daira staff (ratios of as many as 1/4000 farmers).

3.18 Logistical supRort. Few of the field extension agents havetransport and those that do, do not receive allowances for its use. The BFVis dependent on the Wilaya pool of vehicles for which extension activities arenot among the first priorities; and, without dependable transport, its staffare forced back into a primarily administrative role. The institutes andagricultural service cooperatives are better provided with vehicles but thisis still insufficient for operating an effective service.

3.19 Methodolo!ical supDport is provided by CNPA which trainsextension trainers and is developing a comprehensive audiovisual aids service.With UNDP/FAO assistance, a pilot project with CNPA was started in 1986 toupgrade extension training. After a difficult start, the project is now goingwell, some 20 extension trainers have been trained and a wide range ofextension materials have been developed and are in strong demand by the EACsand Wilayate services, among others. A second three year project is expectedto start in mid 1990. The technical institutes also play a role in trainingstaff as do the thirty nine "Centres de Formation et de VulgarisationAgricole" (CFVA) which are supervised by the Ministry of Agriculture andmonitored on technical aspects by CNPA.

3.20 Supply of Inputs in support of extension services, is providedby the input supply societies, such as ONAPSA and OAIC, and the agriculturalcooperatives - the "Cooperatives Agricoles Sp6cialisees de Service" (CASSAPetc). Their role in extension is to promote the best use of inputs but in thepast they worked mainly with the ex-DAS.

3.21 Financial Resources. Extension activities are financed fromthree sources: (i) the Ministry of Agriculture's department of extension andrural institutions (DVIR); (ii) the CNPA and training centers (CFVA); and(iii) the Wilayate budgets. Of total funds allocated to the operation ofextension services in 1988, about 95Z was used on staff salaries. Thisexcludes the technical institutes which consecrate a part of their budget todemonstration and extension.

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3.22 Constraints to the DeveloRment of Extension Services. Duringproject preparation, it became apparent that there was only a skeletalextension organizatio. in place and that the project would have to tackle anumber of very basic issues relating to the linkages within this institutionalstructure, the need to reconcile coordinated extension activities with theprinciple of a decentralised budget at the Wilaya level, and the limitednumber and sometimes poorly trained and motivated staff. This underlines thepilot nature of the extension component of this project. The majorconstraints that need to be addressed are:

(a) Extension Organization. There are three problems related torunning an extension service as proposed through the Wilayatefunded on a decentralized system and with no line ofresponsibility to the center. First, the development of acoordinated program at the national level; second, stafftraining and motivation; and third, authority over allocationand use of financial resources. On the first, the project woulduse CNPA as the coordinating agency. Although this is reallythe role of DVIR in the Ministry of Agriculture, the latter isfar from adequately staffed and use of the CNPA is clearly thebest solution at the present time. Government's decision toaccord this role to CNPA was published prior to negotiations ofthe proposed project. On the second, there is much to be doneto upgrade the skills of the field agents and to assure themotivation of the staff. An effective training program will bea prerequisite for progress. This together with the provisionof the means to work, should provide the basis for launching theextension service; in addition and during the life of theproject, improved terms and conditions of employment will bedeveloped. On the third, the Walis, or Governors, have beenconsulted on the project proposals. The project also makesproposals for the funding of the extension activities directlythrough the BFV (para 5.19).

(b) Staffing of Subject-Matter Specialist (SMS) Posts. The staffreleased from the breakup of the SDA and DAS (paras 2.07 and3.14) are expected to provide the source of graduate staffrequired to build up SMS teams at Wilaya level. They will needtraining and support to enable them to play a key role instrengthening the extension system, and, for the most part,adequate staff are in place, but the support is not.

(c) Input supply. Government has controlled official marketing ofinputs and equipment and until 1987 allocations betweenprovinces as well as between private and socialist sectors, weredecided at the center. Government has made a concerted effort,particularly for farm equipment, to channel increasing amountsto individual, small - scale farmers. In addition, privateretail marketing for items such as insecticide is beinggradually introduced and private dealers have been allowed tosell spare parts and do repair work on farm equipment. For thefirst time private companies now manufacture, for example,

13

ploughs and disk harrows. Nevertheless, the system of inputmarketing needs further improvement to increase the quantity andquality on the market required to meet the expected increaseddemand arising from the reform of the socialist sector.Government has established a review committee on the role of theservice cooperatives and a series of studies, assisted by UNDP,the EEC and the Bank, is now underway on the supply offertilizer, pesticides and seeds, while BADR's resources are tobe augmented to provide the necessary credit. These developmentsprovide a sufficient basis for proceeding with the extensionproject in the expectation that the necessary inputs will beavailable to match the extension messages.

IV. THE PROJECT

A. Proiect Rationale and Obiectives

Proiect Rationale and Justification for Bank Involvement

4.01 Proiect Rationale. The project would help contribute to theobjectives of the Government's five year plan (1990/94) for agriculture whichaims at an increase in domestic food production and reduction in percentageimported, while disengaging the public sector from direct productionactivities. Under this policy, Government will concentrate its efforts onguiding the development of the sector and providing the essential research andextension support services. The project would provide funding and technicalsupport for the priority research programs and testing, on a pilot basis, therevamping of extension services. The project is designed as the first fiveyear tranche of a ten to fifteen year program to establish a long termresearch base, develop an efficient national extension service, and raise theproductivity of Algerian agriculture.

4.02 Justification for Bank involvement. The reform program underwayin Algeria needs both financial assistance and support for institutionalchanges to succeed. After a period of limited contact with the Bank in theearly 1980's, the Government has requested assistance in a number of areas,but particularly in agriculture to improve services and supplies to thesector. Priorities for Bank support aimed at helping the Government's reformwork have been defined in a Sector Report (Agriculture: A New Opportunity forGrowth; report no 7419-AL, April 5, 1990) as: the provision of better inputdistribution, extension and research services, improved irrigation planning,infrastructure and maintenance, and agricultural credit. Bank involvement inthe proposed project is justified by the impact it would be expected to haveon the development of research and extension institutions, the execution ofpriority research programs, on developing extension services for the EACs andother individual farmers, as well as on production in the 20 districts covereddirectly by the project. The project would complement other Bank projen.ts byproviding essential research and extension advice in the Cheliff and Mitidjairrigated areas (supported by loans 2809 and 3076-AL) as well as to individualfarmers and EACs taking credit from BADR (supported by loan 3009-AL). Through

14

its technical assistance component the project would also be used by Algeriaas a vehicle for starting the coordination of external support to agriculturalresearch and, ultimately, for establishing a coherent extension system in thecountry.

Project Objectives

4.03 The overall objective of the project is to start to establishstrong and responsive research and extension services in support of Governmentobjectives to increase agricultural production and reduce dependence onimported foodstuffs. It is conceived as a first, pilot phase which isexpected to be followed by additional Bank support in the coming years. Inresearch, the objectives are to: (a) strengthen the institutional structure todevelop a competent, well motivated staff and improved coordination betweeninstitutes; (b) reorientate resources towards clearly identified priorities bythe introduction and testing of research programming by objectives; and (c)introduce a system of resource allocation and monitoring by research program.In extension, the objectives are to test approaches for the provision ofagricultural extension services to the EACs and individual farmers which willmeet the needs of each and will assure a strong two-way flow of informationbetween farmers and extension, training and research services.

B. Summary Proiect Descri2tion

4.04 The project would comprise two sub-projects, (i) agriculturalresearch and (ii) extension, to be implemented over a five year period andincluding the following actions:

(a) Agricultural Research:

- strengthening of INRA for coordination of research programsand carrying out basic research;

- implementation through INRA, ITGC, INrV and ITEBO of fivepriority research programs (cereals, legumes, forage crops,red meat production and cereal/livestock system) in therainfed and irrigated sub-sectors; and

- staff training and technical assistance.

(b) Agricultural Extension:

- introduction of improved extension organization and methodsin 20 Dairatc located in six Wilayate (Ain Defla, Tipaza,Blida, Bouira, Medea and Tizi-Ouzou);

- strengthening of five Extension Training Centers (CFVA), onefor extension methodology (Ain Taya) and four for technicalaspects (Ain Bessem, Bougara, Medea & Mechtras);

- strengthening CNPA for production of written and audiovisualand scriptovisual material;

15

setting up a monitoring/evaluation system; and

staff training and technical assistance.

C. Detailed Description.

1. Agricultural Research (Implementation Volume, Annex 1 & 3-)

4.05 Overview. The project would provide post-graduate training ofexisting and newly recruited research staff in order to raise researchcapabilities, would introduce a system for scientific and financialprogramming by objectives, would finance investments in the upgrading ofresearch facilities in the main agro-ecological areas for work on fivepriority programs, and would improve the management of research activities.

4.06 Research Programs. Following Government's priorities foragricultural development, the Ministry of Agr1culture prepared a series ofmajor research themes covering: cereals (wheat and barley), grain legumes(beans, lentils and chickpeas), forage and pasture crops, milk and meat(cattle and sheep) production, fruits (fruit trees and grapes), vegetables,cereal/livestock systems and Saharan agriculture. Of these, milk productionis supported by Canada, the pasture program is covered by the High Commissionfor the Steppes, and Saharan agriculture will be covered in the context of adevelopment program for the south. For the remainder, Government selectedresearch on five programs covering crops in rotation with cereals and thecereal/livestock system, as priorities for the proposed first research andextension project. The fruit and vegetable programs would be covered in asecond phase.

4.07 Reinforcement of the five priority grograms. The five priorityprograms would be carried out at five Regional Centers (CRPA): Lamtar, Tiaret,Setif, Oued Smar and El Khroub, as well as at their sub-stations and at theheadquarters of the institutes, as follows:

(a) cereals. The wheat and barley program would be based in the fiveCRRA covering the main cereal zones of the country and the Guelmasub-station. The program would focus on adaptation andintroduction of new varieties, pest control, cultural practices,cereal quality and the place of cereals in the main productionsystems. Irrigated trials would be handled at the El Khemis sub-station and processing technology at ITGC headquarters.

(b) grain legumes. This program would be based in the five CRRA plusGuelma and would cover the adaptation of new varieties and theirintroduction, pest control, cultural practices and the place ofgrain legumes in the rotation.

(c) forage crops. This program would be based in all five CRRA, plusGuelma and El Khemis, and would cover introduction of improved

16

varieties, agronomy and cultural practices and the feed value ofcultivated forage crops.

(d) red meat grogram. This program which would be realized at theBaba Ali headquarters of ITEBO, at the Lamtar and Tiaret CRRA andat the sub-stations of Saida, Ain M'Lila and Fetzara, would covermeat production from local races of sheep and beef cattle. Itwould include work on nutrition, stocking rate assessments ontemporary pastures, and flock management to maximize utilizationof rangeland and crop by-products, as well as stock selection.

(e) cereal/livestock systems. Tnis program would be executed in thefive CRRA plus their sub-stations in close liaison with researchstaff working on individual commodities, the agro-economic teamsof ITGC and ITEBO, as well as the regional extension services.The program would include studies of the agro-ecological potentialand socio-cconomic conditions in different zones, the confirmationof techniques to be developed and their demonstration. Theprogram would bring together a series of measures to promote themore efficient use of land resources and farm inputs (para 6.04and implementation volu.me, annex 1).

4.08 Strengthening of Research Stations. The implementation of thefive priority programs will require : (i) the strengthening of INRA to (a)handle basic "upstream"research (phytogenetics, soil studies and analysis andbioclimatology) including the development of the Mahdi Boualem researchcenter, and (b) establish a central documentation service as well as a back-up service for maintenance of laboratory equipment; (ii) the strengthening ofthe three technical institutes (ITGC, ITEBO & INPV)'/ including upgrading fiveexperimental farms to CRRA covering the main agro-ecological zones; (iii) anincrease in numbers and training of research scientists and technicians; (iv)technical assistance; and (v) provision of additional vehicles, equipment andoperating costs. The project would provide for some additional laboratories(total 2600 m2) and glasshouses (1300 m2) as well as the rehabilitation ofexisting laboratories and workshops (2000 m2) at the research stations,housing (46) for research staff at the CRRA and field stations, vehicles (55small cars, 17 4-wheel drive vehicles, 12 minibuses and 7 lorries), farm,laboratory and computer equipment, operating costs and 98 new research posts(staff expected to be drawn from the Faculty of Agriculture [INA] whichprovides 50-90 postgraduates per year). Assurances on the provision of thenecessary research posts were obtained at negotiations. Housing for researchstaff at the CRRA and field stations will be built to standard designs andconstruction will be controlled according to existing regulations for suchhousing ("logements d'astreinte").

4.09 Training and Technical Assistance. The project would include animportant training program to up-g;rade the level of agricultural research

'/ ITGC Institut technique des grandes culturesITEBO Institut technique de l'4levage bovin et ovinINrV Institut technique de protection des vegetaux

17

scientists in Algeria including: (a) 30 research staff who would takepost-graduate degrees overseas; (b) 54 research staff who would prepare forpost-graduate degrees while working on the priority programs over a period oftwo years - they would be supervised by a research scientist in an overseasresearch institute ..here they would spend up to 12 months; (c) 50 staff whowould receive short-duration training courses averaging four months (total 200man months) under which existing staff would receive special training in arelevant specialty; (d) 6 man-months of overseas training for managementstaff; and (e) 180 man months of management seminars and courses in Algeria.Technical assistance would comprise a plant breeder and soil fertility experteach for three years and an agro-climatologist for two years. Thirty twoman-months of consultants for training and special scientific skills togetherwith 33 man months for management, documentation and computerization skills,would also be financed during the project. Consultant terms of reference arein the implementation volume annexes 1 and 3.

4.10 Management Coordination Unit. The project would fund a managementcoordinating unit within INRA's existing programming section for overseeingproject implementation. Funds would cover rehabilitation of existing offices,two micro-computers for management, and one micro-computer including softwarefor the documentation service and connection to the international network(AGRIS), office equipment, three light vehicles, additional personnel (fiveengineers/administrators, an accountant and five support personnel) as well asoperating costs.

Azrlicultural Extension (Implementation Volume. Annex 2)

4.11 Objectives. Government's objective is to es*ablish a coherentsystem for the transfer of improved technology to individuals and the EACs.In view of the limited experience with agricultural extension in Algeria, theproposed project would be confined to a pilot program to test approaches whichcould be extended nationally in a second phase. The choice of project areahas taken into account the need to: (a) work with a minimum number (10%) offarmers distributed between EACs and private individuals; (b) berepresentative of the main production systems for which there are technicalmessages; (c) provide services in irrigated areas of the Cheliff and Mitidjaprojects; and (d) allow the Ministry of Agriculture to monitor results andadjust the program as necessary.

4.12 Extension Services. The main thrust of the extension componentwould be the introduction of an improved organization and methods in 170communes controlled by 20 Dairate located in six Wilayete and covering about452,000 hectares of the useful agricultural area (SAU), 6% of the total SAU.Staffing would include 191 extension agents, 25 subject-matter specialists, 20supervisors, 6 Wilayate extension officers and supporting audiovisual andmonitoring and evaluation staff. Thirty of these posts (10 SMS and 20extension agents) remain to be filled and would, to the extent possible, bedrawn from the advisory units that used to support the DAS. Assurances on thestaffing of the extension posts were obtained at negotiations. The projectwould provide for improvement of existing buildings (1000 m2), vehicles (105small cars and 48 4-wheel drive vehicles) and equipment and operating costs.Some 50,000 farmers would be reached during the first five year program.

18

4.13 Training Centers and CNPA. In support of this extension program,the project would include; (i) strengthening of five extension trainingcenters (CFVA) for training and retraining of staff - staff from outside the20 pilot Dairate would also be trained; (ii) strengthening CNPA for thepreparation of technical messages and translation to written and audiovisualmaterial; (iii) setting up monitoring/evaluation units in CNPA and the sixWilayate; (iv) technical assistance and overseas training courses; and (v) amanagement coordinating unit in CNPA. In each case the project would providevehicles (total of 31 light vehicles and 5 minibuses), equipment and operatingcosts. Some new buildings (400 m2) and improvement of existing buildings (800m2) would be included in the training centers component. The ongoing FAO/UNDPproject (para 3.19) would provide technical assistance for audiovisualproduction and staff training.

4.14 Consultancies and Training Courses. In addition, the projectwould include 38 man months of short term consultancies for extensionmethodology, planning and monitoring, and j man months to assist projectmaniagement. Overseas training would cover 46 short courses (3 to 4 months,total 139 man months) and two, 2-year courses for postgraduate training inextension methods. Management training would be provided in Algeria - 105 manmonths in all. Provision is also made for 15 man months of consultancy workon the mid-term review and preparation of a second project. Consultant termsof reference are in the implementation volume, annex 2.

D. Cost Estimates

4.15 Total project costs, including taxes, duties and contingencies,are estimated at DA 607 million (US$74.9 million), of which 29%, or US$22.1million, would be foreign exchange. Duties and taxes are assessed at DA 90.3million (US$11.1 million) which is equivalent to 15% of total project costs.Physical contingencies have been included at 10% on civil works, vehicles andequipment. Price contingencies were calculated assuming a domestic inflationrate for local prices of 12.5% in 1990, 13.6% in 1991, 7.6% in 1992, and 7.5%thereafter, and for international prices 4.9% throughout. Price contingenciesequal 31X of base costs. Cost estimates are summarized in Table 4.1 and shownin more detail in annex 4 and in annex 6 of the implementation volume.

19

Table 4.1: PROJECT COST SUMMARY

-DA '000------ -----US$ '000------ X XLocal Foreign Total Local Foreign Total For- Total

eign BaseExch. Costs

A.RESEARCHINRA 73.0 33.0 106.0 9.0 4.1 13.1 31 24ITGC 68.8 31.1 99.9 8.5 3.8 12.3 31 22ITEBO 28.6 7.6 36.2 3.5 0.9 4.4 21 8INPV 4.0 1.4 5.4 0.5 0.2 0.7 25 1Training/Consultants 5.9 37.' 43.0 0.7 4.6 5.3 86 10

Sub-total Research 180.3 110. 290.5 22.3 13.6 35.9 38 65

B. EXTENSION

Extension programs 87.2 13.3 100.5 10.8 1.6 12.4 13 23CFVA training centers 11.1 3.1 14.2 1.4 0.4 1.8 22 3Audiovisual support 9.3 7.8 17.1 1.1 1.0 2.1 46 4Technology development 2.2 0.5 2.7 0.2 0.1 0.3 18 -Monitoring/Evaluation 4.0 1.5 5.5 0.5 0.2 0.7 27 1Training/Consultants 1.5 6.6 8.1 0.2 0.8 1.0 81 2Management unit I LQ 7.5 0.8 0.1 0.9 13 2

Sub-total Extension 121.8 33.8 155.6 15.0 4.2 19.2. 2 35

Total Base Costs 302.1 144.0 446.1 37.3 17.8 55.1 32 100

Physical contingencies 10.0 12.1 22.1 1.2 1.5 2.7 55 5Price contingencies 116.2 22.7 138.9 14.3 2.8 17.1 16 31

TOTAL PROJECT COSTS 428.3 178.7 607.0 52.8 22.1 74.9 29 136

E. Financine

4.16 A Bank loan of US$32 million to the Democratic and PopularRepublic of Algeria is proposed, to finance about 50% of total costs net oftaxes. This would cover 100% of foreign exchange costs and 24% of localcosts. The proposed loan amount includes the equivalent of US$5.7 million inforeign exchange for technical assistance and training fellowships for theresearch sub-project, and for which Government is actively seeking bilateralgrants. Should an agreement satisfactory to the Bank be obtained to financethese activities, the Bank loan may, at the demand of the Government, bereduced accordingly. The Government would finance the balance of local costs

20

and there is no financing gap. The following table summarizes the proposedfinancing plan:

Table 4.2: PROJECT FINANCING PLAN(US$ M)

Local Foreign Total Percentage of ProiectNet ForeignCosts Exchange

World Bank 9.9 22.1 32.0 50 100Government 31.8 - 31.8 50 -

Net Project Cost 41.7 22.1 63.8 100 100Taxes & Duties 11.1 - 11.1

Total Project Cost 52.8 22.1 74.9

F. Procurement

4.17 Procurement would be carried out separately by the project agenciesINRA and CNPA for the goods, works and services included in their respectivecomponents as described in paras. 4.05 to 4.14 above and Table 4.1.Procurement arrangements are summarized in Table 4.3:

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Table 4,3: PROCUREMENT METHODS /a(US$ M)

Project rElements Procurement MethodsICB LCB Other NA Total

Costs

Civil Works 0.5 9.8 0.5 - 10.8(0.5) (7.8) (0.2) (-) (8.5)

Equipment 7.8 1.5 1.0 - 10.3(6.2) (1.0) (0.5) (-) (7.7)

Vehicles 7.0 - - - 7.0(3.3) ()()-)(3.3)

Technical assistance, - - 2.6 5.5 8.1Fellowships and (-) (-) (2.6) (5.4) (8.0)Consultancy

Incremental Operating - - 22.9 15.8 38.7Costs including (-) (-) (4.5) (-) (4.5)Personnel

Total 15.3 11.3 27.0 21.3 74.9(10.0) (8.8) (7.8) (5.4) (32.0)

/a Figures in parentheses are the amounts financed by the Bank.

4.18 Civil Works. Contracts (2) for glasshouses (about US$500,000)would be awarded through international competitive bidding (ICB). Theremainder of the civil works program comprising rehabilitation and newconstruction at widely scattered sites would be awarded according to localprocedures. Contracts estimated to cost less than US$1 M equivalent up to anaggregate of US$10 M would be awarded according to local competitive biddingprocedures (LCB). Small contracts estimated to cost no more than US$100,000equivalent up to an aggregate of US$500,000 would be awarded on the basis ofdirect contracting in accordance with procedures satisfactory to the Bank.

4.19 Vehicles and Equipment. Contracts for all vehicles and forequipment estimated to cost US$300,000 equivalent or more would be awardedthrough ICB. Qualified domestic manufacturers of equipment will receivepreference in bid evaluation of 15X or the prevailinb import duty, whicheveris less. Contracts for laboratory equipment, estimated to cost US$150,000equivalent but not more than US$500,000 equivalent and aggregating not morethan US$3.0 M, would be awarded through limited international bidding (LIB)

22

with bids to be obtained from a minimum of three suppliers from differentcountries. LIB is appropriate in this case since there are only a limitednumber of suppliers of the goods in question. Contracts for equipment up tothe equivalent of US$300,000 and aggregating not more than US$1.5 M would beLaarded through LCB procedures. Contracts for office and field equipmentestimated to cost less than US$50,000 equivalent up to an aggregate of US$1.0M would be purchased through international and local shopping. AltnoughAlgerian ICB and LCB procedures are generally acceptable to the Bank, thereare some aspects which are inconsistent with Bank policy and/or could beimproved to ensure better competition. Assurances were obtained atnegotiations that procurement under the proposed project would be carried outunder procedures acceptable to the Bank.

4.20 Consultants. Consultant services totalling about US$2.6 M wouldbe recruited according to qualifications, terms and conditions of employmentsatisfactory to the Bank, in line with 1981 Bank guidelines for use ofconsultants.

4.21 Contract Review. All bidding documents and awards of contract forcivil works estimated to cost the equivalent of US$500,000 or more and forvehicles and equipment estimated to cost US$300,000 equivalent or more, wouldrequire the Bank's prior approval. It is estimated that 70% of the value ofgoods would be subject to the Bank's prior review of procurementdocumenLation. Contracts not covered by prior review procedures would besubject to random post review by the Bank after contract award.

G. Disbursements

4.22 Disbursement Schedule. It is anticipated that the proposed Bankloan of US$32 million which would finance a five year time slice would bedisbursed over seven fiscal years. The detailed schedule of disbursements isgiven in Annex 5 and summarized below.

Disbursement Schedule

IBRD Fiscal YearsDisbursements 1991 1992 1993 1994 1995 1996 1997

--------------------------US$M------------------------

Annual 2.0 1.5 5.0 6.5 8.0 6.0 3.0Cumulative 2.0 3.5 8.5 15.0 23.0 29.0 32.0

The disbursement period is consistent with profiles for the EMENA Region whichgenerally indicate that seven to eight years are required for fulldisbursement. The proposed closing date of the loan would be December 31,1996.

4.23 Disbursement Procedures. Disbursements would be made against thefollowing categories of expenditures:

23

Category Loan Amount % of Expenditures to be Financed(USSM)

(1) Civil Works (a) INRA 7.5 80% of total expenditures(b) CNPA 0.5

(2) Equipment, vehicles (a) INRA 7.5 100% of foreign expenditures,(b) CNPA 3.5 100% of local expenditures

exfactory and 60% of otheritems produced locally

(3) Incremental (a) INRA 1.7 70% of total expenditures inOperating Costs' 1 (b) CIPA 1.8 calendar year 1991;

50% in 1992; and40% in 1993.

(4) Technical assistance (a) INRA 5.0 100% of total expendituresFellowships, and (b) CNPA 1.0Research contracts

(5) Unallocated 3.5

Total 32.0

(a) INRA includes ITGC, INPV and ITEBO

4.24 Dis'btursements would be maade upon receipt by the Bank of fullydocumented applications, except for contracts for civil works valued belowUS$:00,000, contracts for vehicles and equipment valued below US$50,000 andfor operating costs for which disbursements would be against Statements ofExpenditure (SOE) certified by INRA or CNPA. Supporting documentation forSOEs would be retained until one year after Bank receipt of the last auditreport for the project, and made available for review by the Bank duringsupervision. The annual audits of the project accounts would include aseparate opinien on disbursements made under SOE procedures and the Specialkccount (para.4.25). Assurances were obtained at negotiations that governmentwould provide each year funds required to ensure full implementation of allproject activities in that year and that annual investment programs for theresearch and extension sub-projects would be sent to the Bank for commentbefore October 31 of the year prior to that of the proposed investment.

4.25 To improve the efficient and timely implementation of the Project,the Borrower would establish a special account at the Central Bank to be used

1/ Expenditures for the operation and maintenance of agriculturalresearch and extension equipment and operation of agriculturalresearch and extension services and including materials, fuel,spare parts, farm inputs,services for trials and demonstrationsand travel allowances.

24

as a revolving fund to finance eligible expenditures corresponding to theBank's share of the four-month average project expenditure needs. Itsauthorized allocation would be 2.0 M. The special account would bereplenished by applications submitted whenever at least one third of theauthorized amount has been utilized. Applications for direct payments and forspecial commitments may be submitted provided they are amounts equivalent toat least US$100,000.

4.26 Retroactive Financing of up to US$1,000,000 against payments madefor eligible expenditures under categories (l)(a), (b) and (4)(a), (b) (para.4.23) before the date of the Loan Agreement but after April 1, 1990, isproposed to cover project actions already started.

V. PROJECT IMPLEMENTATION

A. Overall

5.01 Proiect Coordination. Implementation of the research andextension sub-projects would be overseen by a project coordinator reporting tothe Director of sxtension and rural institutions, Ministry of Agriculture.Components of each sub-project would be implemented by a number of agenciesand for each of the two sub-projects a management coordination unit would beestablished. For the research sub-project it would be located in INRA, whilefor extension it would be in CNPA. Location in these agencies would providesome flexibility of administration (as compared within a division of theMinistry of Agriculture) while maintaining the necessary close ties to theadministration for all administrative, logistical and institutional support.Each sub-project management unit would have programming, managementaccounting, procurement and monitoring functions to oversee projectimplementation by the various implementing agencies. Coordination of projectactions with national programs would be realized through two existing bodies:(i) the scientific council for research-development; and (ii) the nationalcommittee for agricultural extension. Assurances were obtained atnegotiations that the annual, national investment programs for research andextension services would be sent to the Bank before December 15 of the yearprior to the proposed investment so as to permit an exchange of views betweenthe Bank and Government on the national programs.

5.02 ImRlementing Agencies. The implementing agencies for the researchcomponent would inn<lude INRA, ITGC, ITEBO and INPV. For the extensioncomponent, the training and extension section of the six Wilayate wouldimplement the extension services through the Dairate and communal agents; thefive training centers (CFVA) would implement the staff training component.CNPA would provide technical support to both groups (Wilaya & CFVA) and wouldimplement the audiovisual component.

B. Research

5.03 Overview. At the Government's request it was agreed to retainbroadly the existing research structure for the first phase pilot project;that is to retain INRA for basic research and coordination and the TechnicalInstitutes for applied and adaptive research. Accordingly, the guiding

25

principles behind the implementat'ion proposals are to assure full coordinationbetween the concerned agencies, to promote efficient management of availableresources and to provide effective support to the research teams, workingbroadly within the present research structure (see Chart 1). Coordination insetting priorities and preparing research programs will be assured by nationaland regional planning commissions (para 5.04). INRA will coordinate projectimplementation while the creation of the Regional Research Centers (CRRA) willprovide the basis for developing multi-disciplinary research teams from thedifferent institutes and for strengthening support services. The structurewould be reviewed in the third year prior to preparing a second phase projectand a national research program. Assurances to this effect were obtained atnegotiations. In the longer term, it is expected that the current researchstructure would evolve towards INRA being the apex coordinator of researchwhile delegating research tasks to various implementing agencies. Projectproposals would contribute to this longer term aim by strengthening INRA'scoordinating role.

5.04 Programming by Objectives. The implementation of the priorityresearch programs (para. 4.07) will be planned and monitored by regionalpregramming commissions "Commissions rdgionales de programmationrecherche/vulgarisation" to be set up and attached to the Regional ResearchCenters (CRRA). At the center, a national commission "Commission nationale deprogrammation systeme de production cereales, ldgumes sec, fourrages, elevage"to be set up and attached to the Extension and Rural Institutions Department(DVIR), MA, will consolidate the programs prepared by the regional commissionsand move them through the budget process working with the project unit andDVIR. The national commission will be made up of representatives from theresearch/development scientific committee, the Ministry of Agriculture, INRA,the technical institutes, the extension services, farmers and other interestedbeneficiaries. The management coordinating unit will act as a secretariat tothe commission. The regional commissions will bring together representativesfrom the CRRA, the extension service (Wilaya level), irrigation offices andthe farming profession. The regional commissions should provide for closeliaison between research staff and those confronted with the reality offarming. In implementing this system, the priority research programs will bebroken down by discipline and research operation and the source of personnel,logistical support and funding, detailed by CRRA and experimental farm as wellas research institute. This will provide the basis for coordinating all workrelated to the priority programs and promoting the build up of multi-disciplinary teams of researchers. Creation of these commissions would be acondition for loan effectiveness. Assurances were obtained at negotiationsthat the terms of reference and operating procedures for the national andregional commissions would be sent to the Bank by 31 December 1990.

5.05 Role of INRA. INRA would be responsible for the coordination ofall activities in the research sub-project and the realization of certain"up-stream" research activities, including phytogenetics, soil studies andanalysis and bioclimatology. INRA would also operate a unit to maintainlaboratory equipment. The head of the management coordinating unit wouldreport to the Director of INRA. The role of the unit would be to reinforcethe management of existing resources and to aid the proper functioning ofexisting operations. The unit would comprise four sections ('bureaux')

26

covering programming, management, supervision of investments, and a datasection. The programming section would be headed by a research scientist andshould provide support for the introduct on and operation of programming byobjectives. The management section would oversee the setting up of amanagement accounting system, the carrying out of internal audits, and thecontrol of funding. The investment section would be responsible forpreparation and letting contracts for construction and purchase of vehiclesard equipment. The data section would be responsible for putting in place thenecessary programming hardware and software, and setting up a documentationunit. The establishment of the management coordinating unit would be acondition for loan effectiveness. The ministerial decision confirming INRA asthe coordinating agency for the project's research component was issued priorto negotiations and assurances were obtained at negotiations that not laterthan June 30, 1991. INRA would be vested with all necessary powers andauthority to confirm its coordination role for the national research program.

5.06 Regional Centers for Agricultural Research (CRRAs). As discussedin Chapter 3 (para. 3.01), the long term objective is to create a wellequipped multi-disciplinary central research station in each of the main agro-ecological zones to: (a) manage the regional research programs at the centerand outlying stations, (b) provide research teams with centrally managedsupport services and laboratories common to all programs (soils, plantphysiology and plant protection), and (c) establish research - developmentunits for linking farmers, extension and research staff. The five centers tobe funded under the project would cover the main agro-ecological zones asfollows: Lamtar (western coastal plains), El Khroub (eastern coastal plains),Oued Smar - with the El Khemis station for irrigated crops - (central coastalplains), Setif (tellien plateau) and Tiaret (high plateau). Each center willbe responsible for the experimental farms in the region and for tackling theresearch problems in the Wilayate within its area. The proposedreorganization will be tested first at Lamtar and the other centers will bephased in over a five year period. Assurances were obtained at negotiationsthat the five stations would be designated as CRRA no later than December 31,1991.

5.07 The CRRA at Lamtar, where INRA and ITEBO are elready based, willbe managed by INRA and part of ITGC's operations at Sidi Bel Abbes will betransferred to Lamtar. The other four CRRAs which are all ITGC stations, willfor the time being be managed by ITGC. A program coordinator at each CRRAwill be responsible to the director for setting up, and following progresswith the program operations. The regional programming commission (para 5.04)will advise the CRRA director on regional requirements and the actionsrequired to assure the link between research and extension. Each priorityprogram sub-divided into research operations will be under the responsibilityof a program head. Multi-disciplinary research teams bringing togetherresearch scientists from the different technical institutes would be built upgradually. The immediate objective will be to bring together crops andlivestock scientists to work on the cereal/livestock system. Aresearch-development section at each CRRA will handle the links with theextension service through the subject-matter specialists attached to theWilayate training and extension sections.

27

5.08 Training and Technical Assistance. (Implementation Volume, Annex4a). Training under the project would cover scientific and management staff.An immediate start on training is required in order to provide a nucleus ofresearch scientists for the priority research programs. A two-year overseasfellowship program for 30 research scientists to obtain master's degrees inkey disciplines would be launched before project start up. The project wouldalso provide 54 one-year fellowships for advanced science degrees (Diplomed'Etudes Approfondies), in which recipients would do the associated researchunder supervision from the university while continuing to work on the priorityprograms. The 200 man months of fellowships to upgrade technical skills wouldinclude laboratory staff to be trained for operation of the new laboratoriesexpected to be equipped by year three. Thirty two man months of scientificconsultants are included for the supervision of staff taking higher degreesand for assistance with setting up the system of programming by objectives.Agreement on the training program for research staff would be a condition foreffectiveness of the loan. Full tivie technical assistance would comprise aplant breeder and soil fertility specialist to work with INRA for three yearsand an agroclimatologist for two years. Assurances were obtained etnegotiations that these posts would be filled by June 30, 1992. Thirty threeconsultant man months are provided for assisting with the management system.Following an initial identification of training needs, a consultant teamcovering management, data handling and accounting skills would provide back upto INRA's management staff. Assurances were obtained at negotiations that themanagement consultants would be recruited by June 30, 1991.

5.09 In addition to the implementing agencies cited above, the Facultyof Agriculture (INA) would assist with the supervision of post-graduatestudies and the universities of Oran and Constantine would also be called onto provide and hold sources of genetic material as well as to assist in animaland crop physiology.

5.10 Hanagement of Research Personnel. The project will make a starton rebuilding the numbers of research staff working in agriculture through:(a) introducing improved incentives and career structure, and (b) developing along term training program. Following agreement on aligning the remunerationfor INRA's research scientists with that of university staff (para 3.12 (b)),adoption of similar conditions for research staff at the technical institutes(that is staff in the plant improvement and production support division) willbe essential to stem the present loss of staff to the universities once theyobtain a higher degree. Assurances were obtained at negotiations that theresearch scientists of INRA, IT3C, INPV and ITEBO would have the structure oftheir salaries and employment benefits realigned with those applied in highereducation and the universities no later than December 31, 1991. A tentativestaff training program to fill immediate gaps in key disciplines and providefor a longer term build up in capacity is detailed in the implementationvolume, annex 4a. Staff benefitting from fellowships would be obliged tosign an undertaking to work a minimum of eight years with their institute onreturn to Algeria.

5.11 Financial Management. (Implementation Volume, Annex 3). Theproject would introduce improved procedures to facilitate the management of

28

research activities; these improvements would concern the decentralis-'ion ofoperating budgets and the introduction of a management accoux.ting system inall research centers and experimental farms where expenses are committed forthe project. First, in order to facilitate the payment of operating costs,recurrent budgets would be delegated to CRRA directors and "agents comptables"would be appointed to five CRRA's (para. 5.06). Also, the amount of cashadvance (regie d'advance) allowed to experimental farm directcrs would beincreased to the equivalent of three months operating costs. Second, in orderto improve the planning of resource allocation to, and the evaluation ofresearch programs, costs would be analysed by research program and sub-program as well as by institute, CRRA and experimental farm. The systemwould be introduced gradually with the help of consultant assistance and astaff training program (para. 5.08). Assurances were obtained at negotiationsthat: (i) appropriate budgetary, financial and accounting proceduressatisfactory to the Bank would be applied not later than June 30, 1992; and(ii) "agents compatables" would be appointed to the five CRRA not later thanDecember 31, 1992.

C. Extension

5.12 Overview. The extension sub-project being essentially a pilotaction to test the suitability of an extension system for possible widerapplication at a later date, demands some flexibility in managementorganization. In view of this and the fact that the DVIR is virtually stillwithout full time staff below the Director, Government took the decision toattach the sub-project management unit to CNPA. The structure and methods tobe tested are based on applying a single line structure with disciplinedexecution, direct support from research and training and with a two-way flowof ideas bctween farmers, research and extension. The investments to be madeare designed to accommodate whatever long term arrangements are eventually putin place.

5.13 Central Organization (Chart 2) The component will be managed byCNPA's director for technical information with the assistance of a managementcoordination unit. The management unit will comprise four sections: (a)management control; (b) technical and training; (c) monitoring and evaluation;and (d) data handling. Assurances were obtained at negotiations that themanagement unit would be adequately staffed. In order to increase CNPA'scapacity to provide extension literature adapted to the new extension systemand train extension staff, the project woule strengthen two of its services:(i) audio-visual production; and (ii) production of pedagogic supports.Establishment of the management coordination unit would be a condition foreffectiveness of the loan.

5.14 Regional and Field Organization. At Wilaya level, the extensionstructure of the project will be in line with the Ministry of Agricultureguidelines of December 1985 which define the role of, and links between, eachagency. The extension activities will be assured by the "Bureaux deFormation et de Vulgarisation"(BFV), supported by three assistants fortraining and communication, extension, and monitoring and evaluation. Theyalso will have authority on the SMS teams (3 to 4 specialists) staffed in eachWilaya according to the complexity of agricultural production. The SMS teams

29

will assure technical support to the extension staff and links with theresearch-development units at the CRRA. At the Daira level, extensionsupervisors will be respon:5hle to the Wilaya extension assistant. The ratiowill be of one supervisor for eight to ten extension agents and initially oneextension agent will be appointed in each commune (village) of the Dairacovered by the project.

5.15 Extension Activities. The extension agents will receive technicalsupport from the Wilaya SMS team. All extension staff from the extensionassistant of the Wilaya dowr to the extension agents will be exempted frommost administrative tasks. Extension agents will work with groups of about 15farmers visiting two groups a day and with visits every two or four weeksdepending upon the cropping program. With on average 240 to 480 farmerscovered per extension agent, about 50,000 farms and EACs, or about 30% of thearea's farmerg, will benefit directly from the extension service. Inaddition, the very small farmers who devote only part time to agricultulre willbenefit from media extension (TV and radio) messages specially applicable tothem. The larger farmers will continue to have direct access to agriculturemanagement specialists and researchers, and the progres? of their farms willbe followed by the SMS. The second phase of the FAO/UNDP project (para. 3.19)will study the role of women in Algerian agriculture to determine how best toreach women farmers, and the study's conclusions would be taken up by theproposed project.

5.16 Training. (Implementation Volume, Annex 4b). The trainingcomponent will cover the extension staff at all levels and sometimes staff ofother organizations related to agriculture and farmers. Training programswill be prepared by CNPA which will be strengthened under the project for thatpurpose. Programs will include: (a) initial training in methodology focussingon methods and techniques to penetrate rural population; (b) preparation ofthemes, messages and demonstration; and (c) improvement of current techniquesand farm management. Training will be carried out within the 5 CFVAs (para.4.04) funded by the project. For practical reasons and efficiency, initialtraining in extension methodology will be carried out at the Ain Taya CFVA.Training for skills improvement will be carried out in each of the fiveregional CFVAs in addition to their ongoing activities which are trainingyoung farmers and organizing information sessions for institutions related toagricultural development (extension staff, CRRAs, offices, cooperatives,etc.). Each CFVA will be specialized in crops grown locally. They willreceive and broadcast technical information provided by CNPA and CRRA throughtheir audio-visual equipment which will be completed under the project. Inaddition, each CFVA will: (a) grow a plot representing a typical farm of theregion; (b) be in regular contact with the extension staff at the Wilaya andDaira, as well as with SMS teams, to discuss experiences and exchangeinformation; (c) participate in adapting extension messages to the region: (d)convey farmers' requests; (e) organize farmers' visits, etc. Assurances wereobtained at negotiations that a training program would be submitted to theBank for its comments not later than June 30, 1991, that it would be updatedperiodically and applied to all extension staff not later than December 31,1993.

30

5.17 Monitoring and Evaluation. Internal evaluation will be carriedout in accordance with Monitoring and Evaluation policies and proceduressatisfactory to the Bank. M&E activities will be monitored and coordinated atthe M&E section of the extension PMU and carried out in the field by M&E unitsof each BFV. The objectives will be: (a) to collect information about targetfarmers and agriculture, the efficiency of the extension system and extensionoperations; (b) to analyze the above information, evaluate consequent changesand their impact on development; (c) to prepare necessary changes; and (d) toexecute small punctual surveys to help management to better understand theproject's impact and therefore make wiser decisions. Assurances were obtainedat negotiations that a monitoring and evaluation program would be developedwith the assistance of consultants and submitted to the Bank by March 31,1992. In addition, two external evaluations will be scheduled at the end ofthe-third and the fifth year, and a national extension program will beprepared from year 3. Carried out by external auditors, they will prepareeventual changes required to improve the effectiveness of extension services.Assurances to this effect were obtained at negotiations.

5.18 Technical assistance will be needed to support the establishmentof the extension service and the start-up of the training and upgradingcomponent will require participation of consultants during the first fouryears of the project. Their support will be allocated as follows: 38 manmonths for extension methodology, planning, monitoring and evaluation, and 5man months to assist management.

5.19 Financial Management. (Implementation Volume, Annex 2). In viewof the pilot nature of the extension component, financial management would becentralised within the CNPA. CNPA would be responsible for procurement of allvehicles and equipment and allocation to the BFV and CFVA concerned. Therecurrent budget would also be handled by CNPA, but the project would test thefeasibility of operating a revolving fund (regie d'advance) in Wilayatefinance departments from which extension services (BFV) would be able to meeturgent expenditures. CNPA would provide the initial advance for these fundsequivalent to three months' operating costs. Consultant assistance would beobtained to develop appropriate procedures. (para. 5.18). Assurances wereobtained at negotiations that appropriate budgetary, financial and accountingprocedures satisfactory to the Bank would be applied by CNPA not later thanDecember 31, 1991.

D. Research/Extension Links

5.20 Relations between research and extension need many improvements toinitiate close and continuous cooperation between research services,institutes, stations and the extension services at all levels. Therefore,formal contact will be established between research/development units of theCRRAs and SMS teams at Wilayate located in the CRRAs zone of activity. Duringregular meetings whose calendar will be established aTnually in September foreach CRRA, discussions will focus on: (a) programming of joint fieldactivities; (b) evolution of agricultural techniques; (c) results of ongoingwork; and (d) all subjects related to agricultural development. A synthesisof each meeting will be distributed to research and extension management atprovince and central levels. It is expected that with the project CRRAs

31

resea;-ch development units will now have with SMS teams reliable counterpartsto relay progress to the farmers. In order to impi ve the relationshipbetween research and SMS the latter will regularly receive upgrading andtraining at CRRAs, they will carry out joint field trials and will be secondedto CRRA during the dead season of the agricultural year to keep theirexpertise updated.

E. Reporting

5.21 INRA and CNPA would prepare half yearly and annual reports onphysical and financial progress in a format acceptable to the Bank. Thereports would include a standard table on annual progress with physicalimplementation and a section dealing with progress of each agency involved inproject execution. The reports should reach the Bank within two months of theend of the reporting period.

F. Accounts and Audit

5.22 INRA and CNPA would be responsible for keeping project accountsfor their respective sub-projects. Both institutions would have their fullaccounts as well as separate project accounts, along with the statements ofexpenditure sent to the Bank for disbursement and the revolving fund account,audited annually by independent auditors acceptable to the Bank. The auditreport together with a certified copy of the account would be submitted to theBank not later than six months after the end of each fiscal year. Assurancesto this effect were obtained at negotiations.

G. Sunervision

5.23 An indicative supervision plan listing key activities and staffinputs in addition to regular supervision needs for the review of progressreports, procurement actions, correspondence, etc., is set out in annex 6.The project is expected to require heavy supervision effort from both theGovernment and the Bank, given the institutional changes that are to beimplemented. Bank staff would work closely with the Mintstry of Agricultureto achieve this. The Bank's supervision plan for FY91 includes 18 staff-weeks (s-w) of professional Bank staff input including a start-up mission inSeptember/October 1990 (see annex for skills expected to be required).Subsequent supervision inputs are expected to be about 20 s-w in FY92, 15 s-win FY93 and FY94 and 12 s-w per year thereafter. The Director, DVIR, will beresponsible for coordinating arrangements for Bank supervision missions withINRA and CNPA.

VI BENEFITS. ENVIRONMENTAL IMPACT AND RISKS

Proiect Benefits

6.01 Agriculture is an important part of the Algerian economy.Although it accounts for only 7% of GDP, it employs 25% of the labor force andis the major source of income for 53% of the population. The recent landreform has transformed the possibilities for agricultural development and the

32

new EACs are proving voracious consumers of technical advice. Furthermore,rising population is placing greatly increased burdens on land and waterresources and the need to find solutions to their more efficient utilization.Following years of underfunding and poor organization, the research andextension services are not well placed to provide the necessary advice. Theproject will provide the first, pilot phase of a long term program to developthe research base for agricultural development and create an effectiveextension service. The research program focuses on priority crops and thedominant cereal/livestock system in the main productive zones with theobjective of raising rural incomes, promoting employment, increasing self-sufficiency and developing exports. The extension sub-project will testimproved methods in an area of high potential containing 160,000 farms ofwhich some 50,000 would be expected to participate in contact groups.

6.02 The project would have substantial benefits through buildingresearch and extension institutions. First, in the case of research, theproject would put in place the means to coordinate the planning andimplementation of the work of the different technical institutes, as well asthe allocation of resources by agreed priorities. The introduction andtesting of programming by objectives and the creation of regional researchcenters would ultimately provide a point of reference for research scientistsfrom all institutions working on associated programs. Second, the experienceobtained in contact group extension and other extension methods will be usedto determine the extension system to be applied nationally in a second phaseof the project.

6.03 Since it is difficult to forecast the degree of success andfailure of research programs, it is impossible to quantifv benefits in preciseterms. It is equally difficult to separate the impact of extension inputs andrainfall variations on increased production. However, where ex Rost studieshave been attempted in Latin America, India and some other countries, theeconomic rate of return of agricultural research has usually been above 40%.The technology packages to be recommended by the extension services for use byfarmers as well as the yields and production increases to be expected fromtheir application will vary according to crop, agro-ecological zones, regionsand farmer's level. They would be further refined during projectimplementation as applied research programs increasingly take into account on-farm conditions and constraints. Because of this and because adoption ratesfor various recommended practices would be difficult to assess, no attempt hasbeen made to quantify benefits expected from the project.

Environmental Impact

6.04 The proposed project would promote the more efficient use of landand water rescarces and farm inputs, and would be expected to have a positiveeffect on the environment. First, the project would test and ultimatelyextend a series of improved cultural practices which would include: (a)contour ploughing, planting of grass strips, bench terracing and tree plantingto protect land against erosion, (b) the introduction of less soil depletingcrop rotations, and (c) use of appropriately sized farm machinery and areduction in the worst effects of erosive mechanization. Second, the researchcomponent would initiate work on more efficient use of water resources on

33

field crops which is crucial for ultimately maximizing the efficiency of wateruse in agricultire. Third, the crop rs~search programs would includedevelopment of more efficient use of fertilizer and crop protection chemicals.The work on crop protection chemicals would take note of tne results of (i)the Integrated Pest Management (IPM) program to be launched shortly in theMitidja irrigation project and (ii) the ongoing UNDP funded regional IPM studyfor the Maghreb for which the B.nk is executing agency. The proposedstrengthening of the extension services are an essential prerequisite forapplying the results of the IPM study.

Risks

6.05 The main risks in the research sub-project relate to possibledelays in increasing the numbers of trained research scientists available towork on the priority programs. The launching of a training program prior toproject start up is essential to assure availability by the time equipment isin place. In the past, both INRA and the Technical Institutes have lost staffto the universities once they obtained higher degrees due to the better termsand conditions of employment. Also a number of qualified staff left t'4 takeon EACs during the 1987 land reform. The provisions to apply similarconditions to those in the universities and establish a clear career path(para 5.10) should help reduce the risk of further losses. Also staff goingfor trairing overseas will be contracted to return to work in Algeria.

6.06 The main risks in the extension sub-proiect stem from the very lowlevel of training and staff motivation and small numbers of qualified,supervisory staff available. Central and regional services also lost manysenior staff during the land reform. The strengthening of the service mightprove even more difficult than assumed. The project has been designed as apilot project to test a system for possible future replication more widely,and should be sufficiently flexible to respond to these difficulties. Also inthe course of the project the whole question of attracting good extensionpersonnel to stay with the service will be examined.

6.07 There is an overall risk that (i) the project will not beadequately funded due to budget shortfalls arising from the difficult economicsituation, and (ii) shortage of farm inputs will limit project impact. Therisk of budget shortfall has been reduced by inclusion of the project in thecore program of the five year plan. Government is conscious of the potentialeconomic cost of a shortage cf farm inputs.

VII SUMMARY OF AGREEMENTS AND RECOMMENDATION

7.01 Agreement was reached at negotiations that:

(a) numbers of research and extension posts to be establishedyear by year and appointment of Key staff would meet projectrequirements (para 4.08 & 4.12);

(b) modified local procurement procedures would be followed(para 4.19);

34

(c) annual investment programs for the research and extensionsub-projects would be sent to the Bank for review by October31 each year (para 4.24);

(d) annual, national investment programs for research andextension services would be sent tc the Bank by December 15each year, beginning in 1990, to permit an exchange of viewson the national programs (para. 5.01);

(e) research structures would be reviewed by the Government andBank in year 3 and a national program prepared (para 5.03);

(f) terms of reference and operating procedures of the nationaland regional programming commissions to be submitted to theBank by December 31, 1990 (para 5.04);

(g) INRA would be vested with all necessary powers and authorityto confirm its coordination role for the national researchprogram by June 30, 1991 (para 5.05);

(h) technical assistance for the research program would bsrecruited no later than June 30, 1992, and managementconsultants to work on the research management system wouldbe recruited by June 30, 1991 (para 5.08);

(i) the structure of salaries and employment benefits of INRA,ITGC, ITEBO and INPV research scientists would be realignedwith those applied in higher education and the universitiesby December 31, 1991 (para. 5.10);

(j) use of appropriate budgetary and accounting f-:ocedures forthe research program, decentralized procedures would beapplied to the CRRAs and experimental farms by June 30,1992, and "agents comptables" to be appointed to the fiveCRRA by December 31, 1992 (para 5.11);

(k) extension training programs would be submitted to the Bankfor its review by June 30, 1991 (para 5.16);

(1) monitoring and evaluation proposals to be submitted to theBank by March 31, 1992 and progress with the extension sub-project would be reviewed by the Government and Bank at theend of years 3 and 5, while a national extension programwould be prepared from year 3 (para 5.17);

(m) use by CNPA of appropriate budgetary and accountingprocedures for the agricultural extension services byDecember 31, 1991 (para. 5.19).

7.02 As conditions of effectiveness of the proposed loan, theGovernment will:

35

(a) establish the National and Regional Research PlanningCommissions (para. 5.04);

(b) establish the management coordination units within INRA andCNPA (paras 5.05 and 5.13); and

(c) reach agreement on the training program for research staff(para 5.08).

7.03 On the basis of the above assurances and agreements, the projectis suitable for a Bank loan of US$32.0 million to the Democratic and PopularRepublic of Algeria for a term of 15 years including a five year grace period.The project is expected to be completed by June 1996.

REPUBLIQUE DEMOCRATIQUE ET POPULAIRE DALGERIEPROJET DE RECHERCHE AGRICOLE ET DE VULGARISATION AGRICOLE PILOTE

Institutions de Recherche Participant au Projet

MINISTEREDE

L'AGRICULTURE- - - - - - - - - - - - - - - - -

Commission Nationalde Programmation Direction de la

Systeme de production .''''''''''''''''-- vulgarisation et

Cereales-6levage des Institutions rurales

. . ,~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~TB

Commission r6glonale Centre R6gionaI ede Programmation .................... RecheRche

Recherche-Vulgarisation grcteur Moyens d'exploitation

----------- et d'exp6rimentation* Services g6n6raux* Biometric

Coordinateur de la |* Dcume tattonProgrammaUon E

d'appul sp6cialis6es Re~~~~~~~~~~Spcherchee| LaboratoZre l ¢ Laboratolres l l Equip~res es BF

Ex~~~~~6rimentaI ~~~ ~ 13veopejn

Sols |Physiologip Dcuefenes Phytotech 11 Zootechnic

*_Programmes Cereales 1-egumes secs Fourrages Elevage Systbmes C6rdallculture/dievage

p Spciallstes ||matieres des BFV

Stations ~~~~~~~~~DAD Daira

Exp6rlmentales _ _

ACV Communes

tbea'bu47 13

REPUBLIQUE DEMOCRATIQUE ET POPULAIRE D'ALGERIEPROJET DE RECHERCHE AGRICOLE ET DE VULGARISATION AGRICOLE PILOTE

Institutions de Vulgarisation Participant au Projet

MINISTERE DE L'AGRICULTJRE

NiveauCentral

DIRECTION DE L VULGARISATION j CENTRE NATIONAL DEF.T DES INSTITU rlONS RURALES |PEDAGOGIE AGRICOLE|

[ DEPARTMENTDES INFORMATIONS

S/DIRECTION S/DIRECTION TECHNIQUESRECHERCHE VULGARISATION T

CELLULE GESTIONDU PROJET

RNeivenal DIVISION DU DEVELOPPEMENT DES

ACTIVITES HYDRAULIQUESET AGRICOLES

SERVICE SERVICE i SERVICE DE L'HYDRAULIOUE | DES FORETS l DE L'AGRICULTURE!

| Bureau de formationet de vulgarisation

Niveau D [District

Nlveau Agents Communaux de oCommune Vulgadsation

......... Support Techniquebea w47t 73A

DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA/REPUBLIQUE POPULAIRE ET DEMOCRATIQUE D'ALGERIEAGRICULTURAL RESEARCH AND PILOT EXTENSION PROJECT/PROJET DE REC;HERCHE AGRICOLE ET DE VULGARISATiON AGRICOLE PILOTE

Implementaion CharVEcheancier - Research Sub-project/Sous-projet recherche

Pm ProjtAvanr Po j pyl PY2 PY3 PY4 PY5 PY619 90 1991 1992 1993 1994 1995 1996

1 2 3 14 1 2 3 4 '1 2 314 1 2 3 4 1 2 3 14 112 3 14 1 2 31 4

A. PLANNINGIPLANNIFICATIONConstruction program/Programme de constructionsAnnual program-budgeVProgramme annuel-budget _

B. INSTITUTIONAL CHANGES/MISE EN PLACE DES STRUCTURESINRA statutes/Statut d'INRA .Research stafl conditions/Statut de chercheurSet up programming commissions/Mise en place commissionsSet up ooordinating unil/Mise en place ceilule de coordinationAccounting & finacial systerrVSysteme comptable-financier - _ _ _ _ _

C. RECRUITMENT & TRAINING PERSONNEL/RECRUTMENT ET FORMATION PERSONNELTraining Program/Programme de forrmation _ _ -_ _ _ _ _ _ _ m _ _ _ _ _ _

2 year fellowships/Bourses 2 ans 12 12 6 OD

1 year fellowships/Bourses 1 an + formation a distance 10 13 10 10 8 3Training courses(mm)/Stages de perfeclionnement(hm) 40 80 60 20Nominate Project Coordinator/Nomination coordinateurRecruit unit staff/Recrutment personnel cellule de coordinationRecruit research staff/Recrutment personnel de recherche _ _ _ _

Research scientists/Chercheurs et igenieurs 5 40 26 18 9Technicians/Techniciens 7 35 28 15 4

Consultants(mm)/Consultations(hm)Programming/Programmation 4 4Follow up/Suivi des programmes 3 3 2Supervision training/Formation a distance 2 4 4 4 2Management/Gestion 7 8 10 6 2

Technical Assistance(no.)/Assistance technique(no.) 2 3 3

D. INVESTMENT/INVESTISSEMENTConstruction/Constructions _ . _ _ . _ _ _ _ _VehiclesNVehicules 3 3935 14Laboratory and expertl equipment/Materiel labo et d'exper'tn 35 in14_ _ iData handling equipmenVMateriel informatique _ . I = . . _

E. MIDTERM REVIEW+SECTOR PLAN/EVALUATION MOYEN TERME+PLAN SECTEUR

F. PREPARATION SECOND PHASE/PREPARATION DEUXIEME PHASE

DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIAIREPUBLIQUE POPULAIRE ET DEMOCRATIQUE D'ALGERIEAGRICULTURAL RESEARCH AND PILOT EXTENSION PROJECT/PROJET DE RECHERCHE AGRICOLE ET DE VULGARISATION AGRICOLE PILOTE

Implementaion Chart/Echeancier - Extension Sub-projecttSous-projet vulgarisation

rb eVAvaY8t POI PYl PY2 PY3 PY4 PY5 PY61990 1991 1992 1993 1994 1995 1996

_ _-_ 1 2 3 4 1 21314 1 2 3 4 1 2 314 1 2 3 4 1 23 4 1 2 3 4

A. PLANNING/PLANNIFICATIONObtain agreement Wai/Accord des WaliAnnual program-budgeVProgramme annuel-budget . . . .Construction prograrn/Progradme de constructions

B. INSTITUTIONAL CHANGES/MISE EN PLACE DES STRUCTURESConfirm role CNPA/Confirmation role CNPAProject unit set up/Mise en place cellule du projet

C. RECRUITMENT & TRAINING PERSONNEL/RECRUTMENT ET FORMATION PERSONNELTraining Program/Programme de tormation _ m _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

2 year fellowships/Bourses 2 ans 2 2Extension courses(mm)/stages court durpe(hm) 46 72 21Management courses(mm)/ stages gestion(hm) 35 45 21 4

Recruit unit staff/Recrutment personnel cellule de coordinationRecruit extension staff/Recrutment personnel de vulgarisation

SMS/Equipe pluridisciplinaire 10Extension agents/Agents 20

Consultants/Consultations(mm)ExtensionNulgarisation 5 6 3 2Monitoring etc/Suivi etc. 4 7 8 3Management/GestiOn 4 1 1

D. INVESTMENT/INVESTISSEMENTConstruction/Constructions _ _ _ _ _ _ _ _VehiclesNehicules I~ I EquipmenVMateriel 189 -Data handling equipmenVMateriel informatique _ _ _ _ _ _ _ _

E. REVIEW RESULTS+SECTOR PLAN/EVALUATION RESULTATS+PLAN SECTEUR

F. PREPARTION SECOND PHASE/PREPARATION DEUXIEME PHASE

40

ANRI 1

DENOCRATIC AND POPULAR REPUBLIC OF ALGERIA



Land Use in Algeria and Project Areas (Extension Component)Occupation de la SAU en Alg6rie et dans la zone du Prolet

(Sous-Projet Vulgarisation)

Algeria! Proiect Area/Alg6rie/ Zone du Projet2'(ha) (ha) X

Rotational CroRs/Culture assoldeCereals/Cereale 3,198,220 183,529 5.7Pulses/LAgume sec 157,340 12,544 8.0Forage Crops/Fourrage artificiel 810,560 55,277 8.2Industrial Crops/Culture industrielle 21,060 532 2.5Vegetables/Culture maraichere 24&,720 31,498 12.7Other/Autres 3.510

Total 1 4,439,410 294,380 6.6

Tree Crops/PlantationOlives/Olivier 162,740 53,221 32.7Citrus/Agrume 44,460 19,406 43.6Date Palms/Palmier-dattier 70,610 - -Other/Autres 315.820 - .

Total 2 593,630 72,627 12.2

Fallow/Jachere 3 2.450.400 84.620 3 5

Total 1 + 2 + 3 7,483,440 451,627 6.0

'/ Agricultural Statistics/Statistique agricole: Serie B-85

2/ Wilayate Estimates/Estime sur place avec les responsables desWilayate.

41

ANNEX 2



STAFF APPRAISAJ. REPORT

Research Implementation Plan

Organization and Management

1. The Director of Extension and Rural Institutions in the Ministry ofAgriculture will have overall responsibility for the project while theDirector of INRA will be responsible for the implementation of the researchsub-project including: (i) the preparation of operational research programs;(ii) the recruitment of staff and consultanLs; (iii) the coordination of thepreparation of documents -or the procurement of goods and works; (iv) theorganization of training programs; (v) the linkage of research activities tothe extension services of the Ministry of Agriculture; and (vi) contacts withthe Bank.

2. A sub-project management coordination unit will be established withinINRA with four sections as follows: (i) a programming section to provide thesecretariat for the national programming commission responsible for theputting in place of the priority research programs (para 3); (ii) a managementsection to provide for the setting up and operation of a management accountingsystem; (iii) a procurement section to provide for the preparation and reviewof documents for the procurement of goods and works; and (iv) a data sectionto develop improved data handling in the project executing agencies.

Research Programs

3. The National Commission for Progrrmming Crops and Farming SytemsResearch attached to the Extension and Rural Institutions Department of theMinistry of Agriculture, will be responsible for developing annualmultidisciplinary research programs focussing on priority crops and animalresearch. The research programs will focus on the following: cereals (wheatand barley), pulses, forage crops, meat production and cereal/livestocksytems. The Regional Commissions attached to the Regional Research Centerswill develop initial proposals following broad national objectives laid downby the National Commission which will consolidate the proposals into theannual program. These programs will be designed to address problems faced byfarmers in producing such crops and livestock and to recommend appropriatepolicies and procedures to improve their production and quality.

4. To enable INRA and the three technical institutes (ITGC, ITEBO andINPV) responsible for the execution of research programs properly to developand carry out these programs the following research staff shall be employed:

42

ANNEX 2Page 2

1991 1992 1993 1994 1995 TotalEngineers:INRA 5 7 6 5 4 27ITGC ^ 19 14 12 3 48ITEBO 12 5 1 1 19INVP 2 1 : 1 Total 5 40 26 18 9 98

Technicians:INRA 7 5 3 3 - 18ITGC 18 17 10 4 49ITEBO 10 8 2 - 20INPV 2 - - 2Total 7 35 28 15 4 89

5. The research programs will be carried out at five regional centers foragricultural research (CRRA) and associeted research stations as shown atappendix 1. INRA will be assigned resp,nsibility for the manag ment of theRegional Center for Agricultural Resea ch (CRRA) at Lamtar, while ITGC willretain responsibility for management 2 the CRRA at El Kb'oub, Setif, Tiaretand Oued Smar.

6. Suitably located research farms will be made available to the CRRAs asand when necessary to ̂ arry out field work required for their researchprograms. Specifically, the El Khemis station, *rnder the aegis of the OuedSmar CRRA, will cover research in irrigated fiela crops.

7. In order to facilitate the improved coordination of research andextension activities, a research and development unit will be established ineach CRRA with suitably qualified staff in adequate numbers, including, interalia, at least one engineer and one technical agent, to be responsible fordeveloping permanent exchanges of views and information among research staff,extension staff and farmers. In order to facilitate this cooperation the CRRAresearch and development units will work on a regular basis with Wilayateteams of Subject Matter Specialists.

8. To assist with the carrying out of the research program, INRA willemploy not later than June 30, 1992, the following consultants withqualifications, experience and terms of reference satisfactory to the Bank:(i) plant breeder; (ii) soil fertility specialist; and (iii) agro-climatologist.

43

ANNEX 2Page 3

Training

9. INRA will be responsible for: (a) developing and carrying out anoverseas training program which wili include training at academic institutionsto enable INRA's staff as well as those of ITGC, ITEBO and INPV, to obtainpost-graduate degrees in pertinent subjects, and to upgrade the skills of theengineering and technical staff of the four institutes; and (b) enter intoarrangements with appropriate overseas research institutions designed tofacilitate staff training and to enable an exchange of views on policies andprocedures to encourage agricultural development.

10. INRA will employ advisers with qualifications, experience and terms ofreference satisfactory to the Bank, to supervise research staff in thepreparation of post-graduate degrees.

Personnel Management

11. Employment policies and procedures will be maintained designed toencourage and reward quality performance by research staff in their work atINRA, ITGC, ITEBO and INPV. Remuneration levels for research scientists atINRA and at the technical institutions will be realigned with those in highereducation and the universities by December 31, 1991.

Financial Management

12. Appropriate budgeting, financial and accounting procedures will beapplied by June 30, 1992. A training program designed to improve thefinancial management capabilities of INRA's staff as well as that of thetechnical institutes would be developed and implemented by consultants to beemployed not later than June 30, 1991, with qualifications, experience andterms of reference satisfactory to the Bank.

44

ANNEX 2Appendix 1




Research Centers end Experimental Farms wherethe Research Prggrams Will Be Undertaken I/

Basic Cereals Pulses Forage Red Meat Cereal/LivestockResearch Crops Sheep Cattle Production

System

INRAEl Harrach x x x xCRP Mahdi/Boualem x x x x - - xCRRA Lamtar x x x - - -

ITGCEl Harrach - x x - - -

CRRA Oued Smar - x x x - - xCRRA Lamtar - x x x x - xCRRA Tiaret - x x x x - xCRRA Setif - x x x x - xCRRA El Khroub - x x x - -

FE Guelma - x x x - -

ITEBOBaba Ali - - - x x x xCRRA Tiaret - x x x x - xCRRA Lamtar - - - - - xFE Saida - - - - x - xFE Fetzara - - - x - x xFE Ain Mlila -

INPVEl Harrach - x x

'/ CRP : Regional Center for Research on plant diseasesCRRA : Regional Agricultural Research CentersFE : Experimental Farms

45

ANNEX 3




Extension Implementat9ion Program

Oreanization and Management of Sub-Project

1. The Director of Extension and Rural Institutions in the Ministry ofAgriculture will have overall responsibility for the project, while theDirector of CNPA will be responsible for the implementation of the extensionsub-project including: (i) the preparation of operational plans; (ii)coordination of the recruitment of staff and the recruitment of consultants;(iii) preparation of documents for the procurement of goods and works; (iv)coordination of training; and (v) contacts with the Bank.

2. CNPA's Director for Technical Information will assist CNPA's Directorwith management of the project and run the project management unit which wouldbe established in his department and will comprise the following sections: (a)management control; (b) technical and training; (c) monitoring and evaluation;and (d) data handling.

(a) Management control. This section will strengthen CNPA management tosupervise and monitor the extension sub-project; its responsibilities

will include:

- supervision and monitoring of the sub-project investments,ensuring availability of credit, execution of procurementprocedures and monitoring of investments use;

- evaluation of operating costs and budgets preparation throughimplementation of a cost accounting system and organization andsupervision of budget preparation at Wilaya level; and

- execution and monitoring of financial and accounting operations.

(b) Technical and training. This section will have two sub-sections forextension activities and training:

- the extension sub-section will coordinate and supervise allextension activities carried out by the Wilayate extension andtraining units (BFV). It will keep BFV chiefs informed ofextension national policies, provide organizational andtechnical support to BFV, collect monthly reports and prepare

46

ANNEX 3Page 2

monthly reports and prepare monthly synthesis for the sub-project management.

- the training section will coordinate and supervise all trainingactivities of the sub-project. It will seek external and localtraining facilities, keep BFV staff informed of thesefacilities, organize training programs at national level andprovide adequate lecturers to BFV. The unit will haveresponsibility to train extension management staff such as BFVchiefs, SMS and PMU staff.

(c) Monitoring and Evaluation. This section will organize, coordinate andsupervise monitoring and evaluation activities carried out by BFV, M&Eunits. It will: (a) participate with BFV units in the establishmentof regional working programs in line with the sub-project managementneeds for information; and (b) help Wilaya units to prepare andexecute punctual surveys required by the sub-project management tomake appropriate dectsions and obtain better understanding of farmers'needs and wishes. The section will collect and process informationprovided by BFVs units and will prepare a synthesis for sub-projectmanagement. A monitoring and evaluation program will be developedwith the assistance of consultants and submitted to the Bank by theend of PY1.

(d) Data Handling. This section will provide technical support for thestrengthening of CNPA data handling staff and participate inestablishing required software and training uses. The section willfocus on the following tasks:

- participating in preparation of bidding documents for dataequipment purchase, control and setting up this equipment;

- participating in preparation and execution of managementprograms such as cost accounting, key indicator tables, statusof personnel, etc.

- organizing and carrying out training courses for staff usingsoftware;

- monitoring and maintaining computer equipment;

- operating the central computer equipment.

47

ANNEX 3Page 3

Organization of Extension Services

3. National Extension Committee. The National Committee for AgriculturalExtension would be maintained to provide policy coordination at the nationallevel. The Department of Extension and Rural Institutions in the Ministry ofAgriculture which provides the secretariat to this committee, would continueto work with CNPA in the application of this policy throughout the country.

4. Regional Extension Committee. Each Wilaya would maintain an extensioncommittee to adapt national policies to the conditions of the Wilaya and toassure coordination with other regional services.

5. Regional and Local. Field Organization. The regional and fieldservices would be organized as follows:

(a) Wilaya level: the Extension and Training unit (BFV) of the AgricultureDepartment will be maintained and strengthened. A suitablyexperienced chief would be assigned to each of the three sections ofBFV and a team of about four subject-matter specialists (SMS) coveringthe main crop and livestock activities in the area, will be assignedto each BFV. These specialists will report to the chief of BFV andwould be responsible inter alia for assuring a permanent link betweenresearch/development units and extension and providing a permanenttechnical support to extension agents. The BFV will include thefollowing sections:

- extension activities: which will cover organization andsupervision of all extension activities carried out at Daira andCommune level. The section will pay particular attention topreparation and execution of visits and extension programs,monitoring field activities, and monitoring staff achievement.It will prepare a monthly synthesis of reports from the Dairatfor the sub-project management;

- training and communication: covering the training of extensionagents, this section will organize training sessions at Wilayaor Daira level in cooperation with SMS, agriculture staff andexternal lecturers. The unit will discuss and prepare withextension agents a yearly training program to be carried outeither at monthly Daira meetings or at specific trainingcenters. The unit will have responsibility to prepare and issueall local technical and training papers for extension agents;and

- monitoring and evaluation; thIs section will have responsibilityfor providing BFV management with all information required tomonitor and run extension activities efficiently. It will have

48

ANNEX 3Page 4

to carry out specific surveys at management (Daira or sub-project) request. All activities will be carried out undersupervision of the M&E section of the project management unit atCNPA.

(b) Daira level: At Daira level one extension supervisor will beappointed for about eight extension agents and will report to the BFVchief of extension section. Supervisors will have responsibility fororganizing extension agents' working programs and monitor execution ofprograms in the field while providing technical support.

(c) Commune level. As a first step one extension agent will be appointedin each commune and will work with groups of about 15 farmers. Eachagent would therefore cover about 240 farmers to be visited twice amonth or 480 farmers in regions where the cropping pattern needs lesssupport and farmers could be visited monthly.

Extension Programs

6. Extension activities would involve the dissemination of technicalinformation through the carrying out of visits to farmers, the use of audio-visual aids, mass media and field demonstrations. Extension programs would beprepared annually in cooperation with CRRAs and SMS teams and would bedesigned to address specific farming problems identified on the basis ofextension reports, findings of SMS and research/development units andeventually surveys carried out by .&E units. The extension programs (analyzedby themes) for the following year would be formulated by each BFV andsubmitted to the Bank by October 31 each year.

Training

7. PMU will plan and organize all training activities in cooperation withCNPA, the extension training centers (CFVA), training sections of BFVs and SMSteams. A training methodology will be established with support of consultantsin PYI to be progressively improved and extended over three years to allextension staff. Training will start with training trainers at the Ain TayaCFVA which will carry out all national training programs, while specifictraining will be provided by CFVAs with specialization in various culturaltechniques. CFVAs will also carry out: first grade training for youngfarmers; information days for engineers and technicians from severalagricultural organizations; training sessions for extension agents; andspecial sessions for improvement of farmers' cultural practices.



Total Project Costs

base Costs foreign fechango

1991 1992 1993 1994 1999 Total I .Awiun

I. INVEIS,Kh8 COSIS

a1 CO8sIRIICIION 7.8848a 33.190 7 23. 1161 3 4.1918 1 4 I 21.88? 06 KAIEIIIi AGRICOIC 7.281 6 947 2 7.828 8 38 2 2.994 0C 8A1ER1(1 D ACCO8PAGNINIIII 4.628 6 3.740 8 1. 388 6 9.797 9 89 9 b.841 9

0"NI'll,L Olp E IMAf lOl 3.869 0 999 4 4.864 4 69 7 3.390 9& NAIiRIII1 WIAI. OR211,AIOIRIA 10.980 I 6.90O96 2.74689 20.632 6 72 8 15.0296

f8A11R111 lNF0R."8ll0UE 9.292 3 181 9 - 9.475 1 58 3 5.522 8G ACIIAl 811188U5 191 6 306 6 498 2 0 0 0 0Of DOI.'118NI1dA18U 213 9 213 9 49 7 106 3I COISUIIAIION . A551S1A8C1 1tCHNlIQUt 2.4668a 4.2448 9 .003. 6 4. 2 lb4 399. 3 16.329 9 89 3 MM57 7.JFORHAIIOII 10.969 2 8. 218 7 5.480 0 3.286 8 1.8694 1 29.649 2 84 7 25. 109 IK BOUlESIS 9409 13 .993 6 2.135 6 929 6 b. 1553 78 5 4.045 31RI 881811 DI P8301311108 V1010 1. 713 4 1.713 4 41 8 716 9N 8AI11R1t11 Di IIWoUtUII08 0IAI'OS 90 7 910 7 96 289 8N 8A11R1k1 Di PRIIdIICIIOII SCIlIPIC VISUli 1. 001 7 330 7 .3324 72 964 5o AF0R111 D 08SiRYAII0IS El Of NISUIRI 923 6 - 23 6 38 9 201I7P HAI(RIIl Dl DIIFUSIOII AUDIO VISUiJ '498 9 996 9 42 8 424 4Q HO,ItRlI . HAORM11 O181B1RkAU 268 1 4.307 7 1. 689i6 H89 I b.926 4 28 3 I 9608

R 80Y1NS Di IRAN8 PORI 921 8 .1%. 219 6 6. 198 2 2. 167 9 44.507~ 2 43 2 19. 2$17 7-SAPIPR0VISl0N8INPNlAGRIC0lk1 87 6 876b 0 0 0 0 I NAILRIII of 13115181 134 4 134 4 9 9 13 3

1o181 IIlVL.9IlICI COSIS 23. 091 2 128. 961 7 96. 62S 14. 999 9 2. 094 7 229. 329 9 54 3 122.311 0

II RECURRENI C0515

A. P1R9ONNII 1.990 2 lb. 780 8 20. 754 S 23.064 9 24.041 7 88.b.12 0 0 0 0 08 FIIIRIIILII C0N IRUIC1108 134 0 603 1 964 6 929 7 2.631 4 30 9 812 8C 1011C110118&81N VtiiICUIls V) 36 3.698 4 4.49b 6 4.688 0 4.688 0 17.7235 1 48 2 .62390 fRAIS Di DiPi..CIIENI 138 4 9.889 4 10. 43295 10.917 0 It, 102 3 42.4799h 0 0 0 0

L. L5SAIS !,8 I 833 4 1.998S7 2.067.9 2.204 9 6. 723 9 199S 1. 4103acfiClIo o ACI:rMPAG8181 296 6 807 6 408 2 408 2 1.880 7 34 7 693J

13 101.811131181818 AtW80 67 1.998 7 8.710 7 9. 188 5 9.293 9 29. 234 6 28 6 s 197 7II1086111311811N: I8IOR1HAIl0Ul 904 0 1. 0811 6 1. 085 6 1.089b 6 4.1160 '4 48 7 2. 029 6I D18011S1RAIION1 646 4 646 4 1.268 8 1.268 8 3.830 3 0 0 0 0J1 RKI(IERCI 8IB I0GII8I'iIQUi 323 8 323 8 323 8 971 3 89 9 672 8K £11108 0 ANIN l(35 648 8 8787 878 7 763 8 3.170 0 0 0 0 0I (81811118 N81,8111 DE I'ROIIICIIOI ohs87 198.7 19 7 19 7 63950 62 0 393 78 FNFRf11E8 NAI,81(1 O Dl DIIisIo8 44 9 51 0 SI1 0 SI 0 197 4 44 0 86 98t pIIOOIIcIioN It SuPPORIS PEOALOCIQULJL 990 7 2.093 0 2.993 0 2.093 0 7.269 1 62 0 4.903 80 BUREAUX88j818(13 90 3 992 0 604 I 610 6 610 6 2.507 7 0 0 0 0P A118181 Of 8118l1 1.469 5 1.513 3 1.557 I L.997 I b.097 0 0 0 0 0Q 1AC81IONS . 21 9 28 9 28.9 28 9 It, 3 122 6 0 0 0 08 ACCULIIS l IlJ81lGt8EN15 196 0 540 9 795 8 918 9 398 9 2,470 6 0 0 0 0

loIal RlICURIJIII C1351 4. 872 1 19. 419 3 59. 941 6 b99953 9 60. 999 3 220. 738 3 9 8 21.1,40 8lolal SWIM18 COISIS 27 121 i 167.977 0 112. 169 I 74.949 8 61.049 0 446.0658 2 32 3 143.951 8

Physical COnlingen. les 2.1043' 12.9571 4 w.1,63 3 1.499 6 209 4 22.087 6 94 9 t2.04b 7Price ConiI i genc ies i271 Ii .4. 067 3 34 911 9 31. 686 3 34. 954 7 138. 891 9 lb 3 22. 688 8

lolal P11OJ111 CO519 1J. 118 i 214. hIS l7 192. 744 4 I0n. 139 t 98. 21 1 0 6,07. 047 7 29 4 178.1,87 3

laxes 7iNJ~~~~~ 19I 46. 177 9 20.bl1 0 11.837 8 9. 441 4 S0. 441 8 0 0 0 0 1-

loresgn ItchAnge *17.0374 I1 81. 868 0 46. 415 0 22. 489 2 10. 840 I 178.687 4 0 0 0 0

Apr~il 18. 1990 10 SI



Project Components by Year

(DA'000)

134193 1992 3941 14.44 1 493' D ov.S Ii U0-io

A Mt 13.I1E11IC

I 333:109L133h11 1113A 43141 1 it W ) 1) Ii 1. 4 3'. 'it.. 0 k, :'37 t I, S Is' '334 3 I3 3On,13 7 a WUkH I 3.:3 /014 4 03 '.41 0 34 0q.J 4 13. 1is '3 I ISP:, 443' 431! 43 1.0 41 . I

. iflUokUNI I No31 37 1 0 3 /14? 0 30 420 '3 7 s. I S % ' It: I.', 3 4 41 34 vini IUILNINI iWpv 1.24b I87/ II7'I8 ' 23'. '1'b .1..4`3 fIUMIIIIUN A. I¶.IANCI 1131H11103 I I LUN'M13A110H3 I ? 43,40 ii1 '77 '/34 3 7114.4 0'31 7 431'0043 '3 304 7

'..j,lo aI,,. WI1:mkIH Kil74 i 1. -~ '3/ -i' '3 11 343 4 4n ., I i 4 i0I .'*Io 4st .1 t'. 111.7 '

VI) I33 UAJI I -.A I ON39 RAPR1,13311I 4'. hJ I I / I I34/ 4 3 '3.. I Its 40'34 h.-0 4I3 33 I I 40,0 3RI2 OI NO 11h11311191 1.'3LIv 18L. 11 3.t, I I it.' 0 I PS , IS'.) II 34 M/., 31 I .% I

I3 PW330043I I (IN A11..3I '3L.133 VI ..... 1 480 S i 401 '/ I IllI / II)I I/ III I 'It., 3.

4 DiR 1391013/ PRk1133. l ' I1ictIQII I .'I. .' 431.h i 4 bl. 46,t I I.111 ' fit 0!, suiViI 3VAIII?. O113 , t. 1133 8,3%4 3, 33.. b.' 1313, 2 '.4'.es* Id1 3 3. CO33III IAlI GM' II 13101101M S I.'I 1.1 2 318'i 2 ;1 14 4 el' 3 Is I."4 3, I 003 II CIIIIIII Of 6.I.13 10 VUI.ANI'3AIUN 1 '104 4 I A37A a1 3 :'%' 3. I7 t. I 4 ,, / 'a,4 0 3311A

%.A, 3.4.13. V333.ARI". Blilk I. .0a I /0 ?'JI I .'18 /to 2 it, 3114 . 1'3,18 I 1Y.%a '.1 3 4 .031 3,

lot41 IIA'3I310 333 34%1', 2/1.423 I 10 1, I3 0 11.' I3. 3- I /4 '34-44 3.3 04'3 0 441, O.It,11 Y 3' 0/0 Il4hy!. C.3 Iw, Cu ,.itVi.' lu 2 141 1 12 713 4 '3.0. bb I 43'3 t 204 4 .''1.311 3.lI .' 173. 4Pr t.. CtMll tflg2.. so. 3. 271 b 14. Ob/ 3 14 -)I I I3 I3 3,33. 314 4%44 / 31 W33 3- ' II 314/

lt,1d3 3'11tJ33I L3)SIS 31 JJ388 .734 l%1.'I P,? /44 4 tO,1 II' V / 4,1 Ils (, . 041 I 14 044

I8l't3b ~~~~~~~~~~~~~~~~~~~~~~~~2 3M3 7 41.. 37/ 4j 20. %1I 0 3311 all ' 44314 40 i43 n I1V.I I.foreign. k.ch.ngu 37 074 9 81 81b8 0 44. 4I'3~ 0 22 411'S2 10 8401 373 bi8/ I ?2 0'. 2

April II8. 3430 30 '31



Research Component

lolals Incluading Lonti ngencies lotals IncI..dinia ConI Ifl3flCeis

iDA 1000I 1US$ '000)

1991 1992 1993 1994 1995. lotla 1991 I'392 1993 1994~ 1995 lotal

INY(STtNhlI cosis

A CONISIRUCIIUN 9.585 7 39.383 0 32.b5096 81.478 3 I183j * 4.81,2 1 4.013 5 10.059 0B "Al ERIEL AGRICOII 7.667 1 78?2 8.449 3 946 5 96 b 1.043 1C NIAIIII D1 ACCO PAG.NIM(NI -5,592 9 5 08? 9 2.041 7 12. 717 5 b9o 527WI5 252 I 1.570 1

M AI SRIIIt 0 6 XPFRINENIAI ION 4.802 A 1.310 3 6.111? 25929 161 8 754 I NAIIRILI Of IABORAIOIRE 13.5463 8.948 4 J. 737 2 21, 231 9 .672 4 1. 104 7 461 4 3. 2385bI AIIIlIII IIIIORNAIIQU( 8.93b A 241 8 9. 178 6 1. 103 3 29 9 1. 133 2

Ii ACIIAI ANINAIIA 143 0 b7 9 b6109 176b 57 8 75 4HI CONSUiLAIION . ASSISIANICt ILCIHNIQUL 1.7b4 5 4.121 7 5.574 5 5.373 8 579 2 17.413 7 217 8 5088 5 882 6634 715 2. 149 81 fORlNAIION I.;. 009 I 10, 355 3 7.222 5 4.`19 S 2.478 8 '17. 64) I 1 bOb I 1.278 4 891 7 5654 306 0 4.647 5J MAIIRIIL 01 PRODUCT11:ION SCRIIIIO VI silla 428 8 42ft8 52 9 52 9A 110811111. M11RIt11( Di BIJRIIAU 119!j9 3'.I19 0 2.4771b 91,2 0 .878 8 14114 286 3 305,9 118a 725 8I OYfNS III IIANSIP13RF 4i-b 9 7. 892 6 8.099 9 2.995 2 19. 454 Ii by 1, ?14 4 1. 000 0 .319 8 2. 401 8

llliNVISlNINI CUS,IS 24. 11 i, I 104. 7b0 4 73.1465' 19J.6895 3080 022S. b,005 J. 0748 12. 413 4 S. 030 4 2.430 8 3775 27. b5l 9

11 R(.CUIIRINI I;OSIS

A PfRSONNi .3. 6~,o I 10. 652 I I1. 969 0 2 1. 687 6 24.880 2 77. 839 0 4506 1, . 3 15 1 2.094 9 2.677 5 3.071l 6 9.509 8B kNiNIlII CONISIIUCIION 163 7 bill 6 1,226,7 1. 308 4 3. 38b 4 20 2 84 9 151 14 1615t 418 I1: fINCIIONNIMINI YIH11C311I .,5 2 748 8t 1. bi8 4 2.031 9 2. 176 0 6.61202? 3 I 92 4 202 3 250 8 268B 6 817 30 IIAIS Pt UIPIAIA6:111N1 2-,6 6 I. 758i 6 2.915 5 3.856 8 4.443 I 13. 230 b 31 7 21 11 '359 9 47lt I 548 5 1. 633 4F LSSAIS 1.7 6 1. 018 8 2.065,9 2.944 4 3.363 4 9.460 2 8 3 1258a 255 I 3635 415)2 1. 167 9I A8(11N011 ALCUNPAGNINLN 322 7 i.077 3 569 7 607 7 2.5)77 3 39 8 133 0 70J3 75 0 JI182G FONC[IONNIINIII 18A1( )I 3 2 463 8 11.421 9 12.835 0 13.887 9 40.6799 8 8 304 2 1.410 1 1.584 6 1.714 6 5.022 2It IIoICIIONKININI II4IORMA1IQUI 1.022 I 1.06i54 1. 130 0 1. 198 7 4. 41652 126 2 131 5) 1395b 148 0 545 21 IlICHILRCIE 8111810EORAIJIIQUf 385 7 405 8 426 9 1.218 4 47 6 501 I 2 7 150 4i1 PRODULIIION Di SUPPORTIS PEDAGUL.IQUiS 121 I 127 2 133 6 140 3 52 I 14 9 IS 7 lb 5i 17 3 64 5K IIINCIIONMiMINNi BUREAUX .7 0 49 4 53 2 57 2 b,1 4 253 2 3 41 6 1 b I, 7 I 7 8 31 31 A8I11NI 11D BEIAIL 1.895 7 2.099 5 2. 322 3 2.49b 5 8.813 9 244 0 259 2 28b 7 408 2 1.088 I

lotal RLCURRLNI COSIS, 4.1lo? 8 20.21b6b 40.506 549.200 854.9905 69 M017 3 5065 2.495 9 5.0008 6.074 2 6.789 020.8bb63

lotal PR10J31( COSIS 29.048 9 124.977 0 113.653 1 68.890 358.048 5 394.617 8 3.5863 15.429 .4 14.031 2 8.5050 7.161,5 48.718 3

April 18. 1990 II 0? tw1



Extension Component

Totals Inclhiding Cont ingenciss Totla s Including Conte'gene 'Os(DA '0001 (US$ '0001

1991 1992 1993 19914 1995 1ol.1 1991 19(12 1993 MA94 199% lotla

luviSINtug costs

a CONSIPIJCIION 4838 5.2?? 2 419. 2 S .745 2 60 651 5 61 7 7093

S NAIIRIEI asmicoil ~~~~~~~ ~ ~ ~ ~~~~~~~~~~~1.926 6 -- 1.926 6 737 8 23? A

C1 AIRIMEI A"INIRIAIU 2.674 8 -- 2.57489 330 2 330 2

0 ACHIa ANINAIIX 129 0 -129 0 15 9 159

E. DOCURIUMAION - 277.9 -- 277 9 - 34 3 341

I CONSUl 18110W . ASSISIAIICE ttEoIIQUE 1.158 8 1. 165 3 98t 9 437 4 3.743 4 143 1 143 9 121 2 54 0 462 2

6 8913151 660 3 2.481 2 2.827 0 733.0 6.701 4 81.5 306 3 349 0 905 827 3

II NAIERIEI I POf olCIIONl WISE - 2. 120. 4 .- 2.120 4 - 261 8 261 S

I N OfRE DIPROTIUCIION OIAPOS - 631 1 6 31 1 77 977

J. NAIIRIFI DL ,RROOUCIIONU SCRIPTO - VISUEL 1.235 6 -1.235 6 152 5 152 5

£Ratail[l 0 IRISIRwaIION El Dl NISURE - 693 8 - 693 8 - 5 6 as856

1. NatIRIEI D ofIIIIISION AUODI - WisuEL 1.234 3 1.234 IS12 4 -152 4

N NIPiEII . "ATERIEt. of BUREAU 216 S 3.440 5 S 3.657 1 26a8 424 7 45

* N111 S 01" Of Aim*sPotI 621 7 35.89 8" - 36.512 lo , It. 4 411 0 4O77

0 APPMOISIONNENENI LORICOIE 124 3 -- 124 31 3 IS 3 3

P. NATERIEL OE CUISINE 187. 5 - 187.5 23.2 -23 2

Total INVESININT COSTS 2,308 4 59. 490 I 4.228 0 I. 170. 4 - 67.594 9 334. 1 7. 344 5 522.0 144.5 - .345 I

II RE6URRNI COSTs

A. P'hiSOEI 1.012 0 *0.995 4 11.82S 3 12.712 2 13.665 6 50.210 6 1249 1.357 5 1.459 9 t.569 4 1.6871 6. 198 8

B. (86011118 coNsIRUCTION 0 5 99 2 115 7 71 2 286 6 0 I 12. 3 14. 3 8a8 35 4

C IONCIIONUNFENI WENIICUIES 15l 2 3.902 0 4.41? 1 4.729. 9 S.065 3 18. 265 6 18 7 481 7 545.3 583 9 825 3 2.25% 0

o IRAIS Of DEPIACENENI 118.8 10.740 8 11.558 3 12.425 2 I3.3S7 1 48.220 3 I? 1 1.3260 1.427 0 1.534 0 1.649 0 S.9S3 I

SIMS585 28 3 30.4 32 7 35 1 126 4 3 5 3 8 4 0 43 is6

I IoNcIIOINFNENT INIORNAIIREE - 142 8 300 I 318 3 337.7 1.008 8 I? 6 37 I 39. 3 41 7 135 If

6. OFNONSIR8IION 833 8 896 8 1,892 3 2.034 2 5.657 I 102 9 110 7 233 '. 25I1I 698 4

N ACTION 0 881888108 - 36 9 1.219 1 I.310.6 1.224 5 4.591 2 103 3 ISO05 161 8 151 2 5568

I FNIRMillI PAIERIE. Of PRODCTION IT17 2 187.2 196 6 206 5 768 6 - 22 0 23 I 24 3 25 5 94 9

J ENIREOIII NAIIRIEI Dl SIIFUSION 49.9 60 I 63 I 66.3 239 4 5 2 1 4 7 8 8? 29 6

S PROEIUCIION DE SUPPORTS PIDAGOIRUES . 991.1 2.341 I 2.459.2 2.583 3 8.374 8 - 122 4 289 0 303 6 318 9 1.033 9

I. IONCI IONNEINNV8UR(huX 73 6 714. 3 784 9 853 6 917 6 3. 3413 9 9 I 88 2 96 9 lOS 4 113 3 412 S

P VACAIIOIIS 25 6 36 7 395s 425S 24 6 168 9 3? 45 4 9 52 30 208

N ACCJElIS El IIESER6ANENTS t82. 3 697.8 1, 104 I 923 1 575 4 3.482 7 22 5 86 I 136 3 1140 71 0 4300

-lotal RECUJRREMI COSIS I, .83.5S 30. 148 5 34 863 3 38. 075 0 40. 164 5 144. 834 9 195 5 3.72? 0 4.304 I 4.700 6 4.958 6 1?. 880 8

total PRJECT COStS 4289.9 89,638.7 39.091 3 39.245 4 40,164 5 212.429 8 529 6 111.066 5 4.826. I 4.845 I 4.958 6 26.722 9

Nap 4. 1990 12 14

53

AMNE 5

DEMOCRATIC AND POPULAR REPUBLIC 01 AIGERIA

AGRICULTURAL RESEARCH AND EXTENSION PILOT PROJECT


Estimated Schedule of Disbursement of Bank Loan i

CumulativeIBRD Semester By end of Cumulative X ofFiscal Year Ending Semester Disbursement

1991 Dec 90 - -June 91 2.0 Lb 2.0 6

1992 Dec 91 0.5 2.5 8June 92 1.0 3.5 11

1993 Dec 92 2.5 6.0 19June 93 2.5 8.5 27

1994 Dec 93 2.5 11.0 34June 94 4.0 15.0 47

1995 Dec 94 4.0 19.0 59June 95 4.0 23.0 72

1996 Dec 95 3.5 26.5 83June 96 2.5 29.0 91

1997 Dec 96 1.5 30.5 95June 97 1.5 32.0 100

Expected Effectiveness Date : January 1991Expected Completion Date : June 1996Expected Closing Date : December 1996

Special Account Deposit

54

ANNEX 6

DEMOCRATIC AND POPULAR REPUBLIC OE ALGERIA



Proposed Bank SuRervision InDut into Key Activities

Dates Activity Expected Skill Staff(approx.) Requirements Input

(weeks)3/

9-10/90 Supervision Mission Research ) 8.0(Project start-up) Extension )

Procurement )Financial Analyst )

12/90 Review training program Research (training) 0.5research scientists

1/91 Review national research Research (policy) 1.0program

2-3/91 Supervision Mission Research (pbo) ) 6.0(including review Extension )proposals programmingby objectives)

6-7/91 Supervision Mission Research ) 7.0(including review of (experimental )construction program) design) Extension )

Architect )

10-11/91 Supervision Mission Research ) 7.0Extension )Financial Analyst )

1/92 Review national research Research (policy) 1.0program

1992 Two Supervision Missions Research ) 15.0Extension )Financial Analyst )

55

1993 Two Supervision Mission Research ) 15.0(including review of Extension )proposals national Financial Analyst )research plan, evaluationextension results andreview proposals nationalplan)

1994 Two Supervision Missions Research ) 12.0Extension )Financial Analyst )

1995 Two Supervision Missions Research ) 10.0(including evaluation Extension )extension results and Financial Analyst )second phase proposals)

1996 Two Supervision Missions Research ) 10.0(including work on PCR) Extension )

Financial Analyst )

aj Excluding review of progrees renorts, procurement actions, correspondenceetc.

56

ANNEX 7




Selected Documents Available in Project File

1. "Projet Recherche et Vulgarisation," FAO/CP, Investment Center,Report No. 27/88 CP-ALG 24. March 15, 1988.

2. "Programme de D6veloppement du Secteur C6realier,n FAO InvestmentCenter, Report No. 53/88GV - ALG 25. May 18, 1988.

3. Implementation Volume:

Annex 1 Recherche AgronomiqueAnnex 2 Sous-projet VulgarisationAnnex 3 Gestion du Sous-projet RechercheAnnex 4 (a) Sous-projet Recherche: Formation, Consultations et

Assistance TechniqueAnnex 4 (b) Sous-projet Vulgarisation: FormationAnnex 5 Composante ConstructionAnnpx 6 CoCIt Du Projet

MAP SECTION

IBRD 21081

ALGERIAMe itAGRICULTURAL RESEARCH AND EXTENSION PROJECT M e d i e r r a n e a n S e a

PROJET DE RECHERCHE ET DE VULGARISATION AGRICOLE *oR.-72

CLIMATE DATA AND LOCATION OF REGIONAL AGRICULTURE -EP S0kikee ANJNAA -4RESEARCH CENTERS AND RESEARCH STATIONS

DONNEES CUMATIQUES Er LOCALISATION DES CENTRES REGIONAUX \ SKIKDA EL TARFDE RECHERCHE AGRONOMiOQUE ET STATIONS EXPERIMENTALES BEJA E I m

Bouim A M /,CrNSTjM NE GUELMA SW*/\ ognoo\ A hESou, lE

. \ | / / / / El Boyedh ;/ / Loghouct0 . 1 / * ' j \~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0 l h-

UA NM A I A L'A/ s... fH l M 8 V - SQUKAHRAS I\. D BCi . )B\.diBou S E T S F MS SEiGE E W

\;, ) / |~~~~~~SI PLJV IEREm \ ;¾.N.r NAns ONd A A1 TLO¢

*_ TISSO SILT ( . I S ~ OU ELABOUNOAGHI `

i ~ ~~~~~~~~~~~~ S S E " [L mQ o rprd [ b lL h x s rLrlh 0 R NnRQNNrERNA4ONIS\

ASCARA I i I L A/

It.. mm, -- -, 9~~~~~~~~~~~~ ~ ~~~~~~~~ KHENCHELAI

L *Smido

ABES \ SAIDA 8 I SI..K R A

NAAMLA / / E~~~~~IB ydh®

-Nea.. EL A A D H "CEEIIRES REGIONIAUXDE RECHERCHE AGRONOMIGUE TEMPERATURIE. mRiNJMA EXTREMES (de,g C) -) ( "' U ~~~~~~~~~~~~~~~~~~~~~STATIONS EXPERIMENTALES SIEGES DES WILAYA

-- PAINFA11~~~~~~~~~~~~~~~~~~~~~~~m.) ® ~~~~~~~APfLEAONALE

0 50 100 ISO 600 FRON~TERES DES VV0I4A LN. . .. . . . -. KILOMETERS ,INTERNATIONAL BOUNDARIES --.... 2 ..-- '" / ~~~~~~~~~~~~~~~~~~ ~~~ ~~~ ) 00FRONTIER ES INTERNATIONAIESN.

JANUARZY 1989

ALGERIA

AGRICULTURAL RESEARCH AND EXTENSION PROJECT 9JET DE RECHERCHE ET DE VULGARISATION AGRICOLE Ab

LOCATION OF EXTENSION ACTIVITIES 55 A.NA,A El

SITES DES ACTIVITIES DE VULGARISATION ALGIERS AjT BOUMERDESo_ogqe_,u A-zf-i . S SK) kV GFoNNAS I

ALGIERS rT ~die.at. I z I J,KpIlK D A EL TARF\%ued S~~~~~ar..,,,. R~~~EJAIA Reon JIJj E L

Cherhel r90 5

I I0KIz0

/ T IPA A ,I&oBioc\/ -- ,~ .6a-~~~---t Snuiro - HoWe, ' ~~~~~~~~~~~CONSTANTINE GEM (S&k

H.i- sn,C-nslnln\ hANu/ -. -- "'-~~~A~ .LMijiA, A.e~u mO, cdcIAo, ¾-.1 IKo.AIN o ~~~~~Medec ____s U, II RA SOUK AHRA MIA ,

CH L EKF ElEei OD OL /¾/.

TStllY' > '~ChiIf \EIA"e( Djle -d/aWe A Baeoogho .' NMOStOgO/SBflT W ~~~~~~~~~~~~' ' ~~M ED E A K Bord4Bo- S ET I F \M Ldo ..

3 y. -- AEREETDJ ~' OumABRERgDJ

*Oron )~~~~~~REL IZANE ,, ISESI 'sl* GJAH

ORA N S e,on5

A2 TseMsl. - on

A,. Temo,,chent AIN MmASCARA .8vA>T--N-A- V/ -ATN

S'd, Rd Tio,.t K~~~~~~~~~~~~~~~~~- . HENCHELA 3/ TEBESSA

A* TLEMCEN 1 / TI A R E T ~~\ ~ -.- TI-- SIDI~~~~~~~~~~~~~~~~~~--

ABBES<N S A IDA V-.'Djelfo - I7 8 K R A

L-- LI~~~~~~~~~~.--~

-- z ~ ~ ~ ~ ~ --- >

El Boydh N'-./* N A A M A LAGHOUJAT

DIAATEDE ORMTIO ETDEVULGARISA I/ON AGRICOTE * SIEGES DES WI/NAYA..

F-j A/n DeAl W.ioo NATORNAL CAPITAL

Ne. , W~~~~~~~~~~~~~~~~~~~~~~~~- BMoc W,I.,0 I ALGERIADA/RATE BOUNDARIES I

0 SR ISO~~~~10 ISO FR os W 0 0 SONTIERES DES GA/RATE/ NJ ,~~~~~~~~< I C' N~~~~IEJS-.Wdy

.. . . . . ~~~~~~~~KILOmErERS W7 mede Wiloyo N/LAVA BOJNDARIES N/ ~~~~~~~~~~~~~~~~ SET~~~~~~~~~~~~~~~~~FONTIERES DES Wr//NAA

a..ao,i. .. s.njoo.onnapechbon.Sn,a, -o- il.y.INTERNAT/ONA BOUNDARIES .N.

AUG

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