Report No. 1281a-HA FILE COPYAppraisal of Rural Development Project in theNorthern Department Haiti

RETURN TODecember 13, 1976 REPORTS DESKRegional Projects Department WITHINLatin America and the Caribbean Regional Office ONE WEEK

FOR OFFICIAL USE ONLY

Document of the World Bank

This document has a restricted distribution and may be used by recipientsonly in the performance of their officiai duties. its contents may nototherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

US$1 = Gourdes (G) 5.00Gourde XG). = US$0.20

WEIGHTS AND MEASURES

Metric System

1 meter (m) = 39.37 inches1 kilometer (km) - 0.62 miles1 hectare (ha) = 2.47 acres = 0.78 carreaux1 square kilometer (km2) = 0.386 square miles1 kilogram (kg) = 2.205 pounds1 ton (t) = 2,205 pounds1 liter (1) = 0.264 gallons

ABBREVIATIONS

BNRH - Banque Nationale de la Republique de HaitiBCA - Bureau de Credit AgricoleCOALEP - Cooperative pour l'Alimentation en Eau de la Population RuraleCONADEP - Conseil National de Developpement et de PlanificationCRUDEM - Centre Rural de Developpement de MilotDARNDR - Department de l'Agriculture, des Ressources Naturelles et

du Developpement RuralFAC - Fonds d'Aide et de Cooperation de la Republique FrancaiseFAO - Food ând Agriculture OrganizationIDA - International Development AssociationIDAI/SEN - Institut de Developpement Agricole et Industriel/Societe

d'Equipement NationalIDB - Inter-American Development BankODN - Organisme de Developpement du NordODVA - Organisme de Devèloppement de la Vallee de l'ArtiboniteONAAC - Office National d'Alphabetisation et d'Action CommunantaireOPDG - Organisme de Developpement de la Plaine des GonaivesPAHO - Pan American Health OrganizationSAC - Societe Agricole de CreditSAR - Service d'Animation RuraleSEPRRN - Service d'Entretien Permanent du Reseau Routier NationalSMV/SE - Service de Medecine Veterinaire/Service d'ElevageSHRH - Service Hydraulique de la Republique de Haiti (TPTC)SICR - Service des Irrigations et Controle des Rivieres (DARNDR)SVA - Service de Vulgarisation AgricoleTPTC - Ministere des Travaux Publics, Transports et CommunicationsUNDP - United Nations Development ProgrammeUNICEF - United Nations Children's FundUSAID - United States Agency for International DevelopmentWFP - World Food ProgramWHO - World Health Organization

GOVERNMENT OF HAITI

FISCAL YEAR

October 1 - September 30

FOR OFFICIAL USE ONLY

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

TABLE OF CONTENTS

Page No.

SUMMARY AND CONCLUSIONS ............................ i-iit

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

II. BACKGROUND ......................................... 1

A. General ....................................... 1B. The Rural Sector ............................... 2C. Government's Rural Development Strategy ....... 6

III. THE PROJECT AREA .................................. . 6

IV. THE PROJECT ........................................ 8

A. Brief Description ............................. 8B. Detailed Features ............................. 8C. Cost Estimates ................................ 10D. Financing ..................................... ilE. Procurement ................................... 13F. Disbursement .................................. 13

V. ORGANIZATION AND MANAGEMENT .14

VI. PRODUCTION, MARKETS AND PRICES, PROJECT BENEFITS ... 20

VII. BENEFITS AND JUSTIFICATION ......................... 22

VIII. AGREEMENTS REACHED AND RECOMMENDATION .... .......... 23

The report is based on the findings of an appraisal mission to Haiti inApril/May 1976, consisting of Messrs. K.H. Ochs, U. Kuffner, F. Lucca, andG.H. Soto (IDA) and S. Anania, S. Hallgrimmson and Ms. S. Leone (Consultants).

This document hm a restnttd distribution and My be us»d by rocipbnt only in the perfornnnceof thoir oMcial duti". il$ contents may not otherwio be disclood without Wofid Bank autboriution.

ANNEXES

1. The Project Area

Table 1 - Population in the Northern Department and the Arrondissementof Cap-Haitien

Table 2 - Rainfall at Caldos Sugar Mill (1960-1976)Table 3 - Land Tenure in the Arrondissement of Cap-HaitienTable 4 - Land Tenure

Table 5 - Land Tenure ModalityTable 6 - Land UseTable 7 - Income Distribution Pattern of Employed Population in Urban

and Rural AreasTable 8 - Annual per Capita Consumption of Essential Goods and Services

2. Irrigation Rehabilitation and Expansion

Table 1 - Irrigation Water RequirementsTable 2 - Cost of EquipmentTable 3 - Staff CostsTable 4 - Phasing of Expenditures

Table 5 - Summary Cost EstimatesTable 6 - Operation and Maintenance Costs after Full DevelopmentTable 7 - Rent and Cost Recovery

3. Credit to Agriculture

Table 1 - BCA - Strengthening of Regional Office in Cap-Haitien -

Investment and Operating CostsTable 2 - BCA - Use of FundsTable 3 - BCA - Consolidated Balance Sheet

Table 4 - BCA - Income StatementTable 5 - IDAI - Use of Funds

Table 6 - IDAI - Balance Sheet (June 30, 1975)Table 7 - IDAI - Income Statement (June 30, 1971-1975)

Schedule A - Lending and Operating Policies and Procedures of BCASchedule B - Points to be Covered in the Program of Reorganization of BCA

4. Agricultural Trials and Seed Production

Table 1 - Investment and Operating Costs

5. Regional Agricultural Extension Service - Investment and Operating Costs

6. Regional Rural Animation Service - Investment and Operating Costs

7. Regional Veterinary and Livestock Services - Investment and Operating Costs

ANNEXES (Cont'd)

8. Municipal Markets

Table 1 - Costs of Materials and Equipment for Rehabilitating andImproving the two Municipal Markets of Cap-Haitien

Table 2 - Improvement of the Municipal Market of St. Raphael

9. Municipal Abattoir - Costs of Materials and Equipment

10. Road Construction and Maintenance

Table 1 - Name and Length of Roads to be ConstructedTable 2 - Proposed Feeder Roads StandardsTable 3 - Cost of Equipment Fleet for Feeder Road ConstructionTable 4 - Cost per km Feeder RoadsTable 5 - Summary Costs and Phasing of Expenditures

11. Potable Water Supply

Table 1 - Investment and Maintenance Costs

12. Organisme du Developpement du Nord (ODN) - Headguarters

Table 1 - Investment CostsTable 2 - Operating CostsTable 3 - Initial Project Implementation Schedule

13. Appointment of Project Staff and Qualifications for Senior Staff

Schedule A - Timeframe for the Appointment of Project Staff andNumbers Required

14. Project Monitoring and Evaluation

Table 1 - Costs of Project Monitoring and EvaluationTable 2 - Project Design, Summary and Evaluation Framework

15. Summary of Project Cost

16. Project Cost Phasing

17. Financing Plan

18. Estimated Schedule of Disbursement

ANNEXES (Cont'd)

19. Farm Models

Model 1: 10-ha Farm Unit in the Irrigated Area of St. Raphael

Table 1 - Production and Production ValueTable 2 - Investment and Operating CostsTable 3 - Financial Projections

Model 2: 10-ha Farm Unit in the Irrigated Area of Quartier Morin

Table 4 - Production and Production ValueTable 5 - Investment and Operating CostsTable 6 - Financial Projections

Model 3: 10-ha Farm Unit with Well Irrigation (Quartier Morin)

Table 7 - Investment and Operating CostsTable 8 - Financial Projections

Model 4: 15-ha Farm Unit in the Rainfed Area of Plaine du Nord

Table 9 - Production and Production ValueTable 10 - Investment and Operating CostsTable 11 - Financial Projections

20. Government's Incremental Cash Flow from the Project

21. Economic Analysis

Table 1 - Economic Rate of Return

CHART - Proposed Project Organization and Management

MAP - IBRD No. 12217 - Location of.Project Activities

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

SUMMARY AND CONCLUSIONS

i. This report appraises a Rural Development Project for which an

IDA credit of US$10 million equivalent is proposed. The credit would help

finance basic infrastructure and services for rural development in the Northern

Department of Haiti where over 90% of the rural population are under the level

of absolute poverty. The project would consist of (a) rehabilitation and

expansion of the Quartier Morin (2,000 ha) and St. Raphael (1,900 ha) irriga-

tion systems and irrigation of up to 1,000 ha based on deep wells; (b) rehab-

ilitation and construction of 66.5 km of feeder roads and 27 km of farm access

roads; (c) construction of up to 400 wells operated with hand pumps and of up

to five small water supply systems served by springs, for rural potable water

supply; and (d) rehabilitation and improvement of the two municipal markets

and abattoir in Cap-Haitien and construction of a market in St. Raphael. The

credit would also strengthen and support regional agricultural services pro-

viding (a) short-term and medium-term credit to groups of small farmers and

to individual medium-size farmers; (b) agricultural trials and improved seed

multiplication; and (c) agricultural extension, rural animation, and animalhealth services. About 4,000 rural families would benefit from directly

productive components of the project as well as from the productive support

activities and the road component, increasing their on-farm consumption by

about 30% and their average annual cash income from agricultural and livestock

activities from US$60 to US$150. In addition, some 26,000 rural families would

benefit from better roads, improved agricultural services and availability of

improved seeds and would increase their on-farm consumption by 10% to 20%, and

about 3,000 rural households would receive potable water. Also, about 60,000

urban inhabitants would benefit from decreased health hazards and more competi-

tive trading due to the rehabilitation and improvement of three municipal

markets and an abattoir.

ii. The project would be IDA's first agricultural rural development

operation in Haiti but the Bank Group has already assisted the Government with

a US$2.6 million loan for highway rehabilitation in 1956 (141-HA), followed by a

highway maintenance project, partially financed by a US$350,000 credit in 1962

(32-HA) and reconstruction of the Northern Road through a credit of US$10million in 1974 (478-HA) and a credit of US$20 million in 1975 (556-HA).

Assistance to education was also provided through a US$5.5 million credit in

February 1976 (618-HA) and for electric power in the Port-au-Prince area

through a US$16 million credit in June 1976 (645-HA). Project execution under

the two recent highway projects and the education project has been satisfac-

tory. The implementation of the electric power project has just begun.

iii. Agriculture is the most important sector in Haiti's economy, provid-

ing about 45% of GDP and over 50% of merchandise exports and meeting most of

the needs of domestic consumption of agricultural products, but agricultural

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imports absorb about 90% of agricultural export earnings. The importance ofthe sector is further emphasized by the fact that about 80% of Haiti's popu-lation obtains its livelihood from agriculture. Development of the ruralsector constitutes a major priority of the Government and increased productionof food crops is one of its major goals.

iv. With an area of 27,750 km and a population of 4.7 million in 1976,growing annually at a rate of about 1.6%, Haiti has an average populationdensity of about 170 persons per square kilometer, one of the highest in LatinAmerica. With agriculture concentrated mainly in a limited number of rivervalleys and coastal plains, development of these areas becomes essential tothe country's economy and welfare. The arrondissement of Cap-Haitien andthe irrigated district of St.. Raphael are two such productive areas, with pooragricultural services and existing infrastructure in severe need of rehabili-tation and expansion. The proposed project would help correct these deficien-cies and provide the basis for the development of the whole Northern Department.

v. An "Organisme de Developpement du Nord" (ODN), established under thePresident of the Republic would implement the project under the supervision ofa Board chaired by the State Secretary of the Department of Agriculture,Natural Resources and Rural Development (DARNDR), and including representa-tives of the Department of Public Works, Transport and Communications (TPTC),the Department of Finance and Economic Affairs, the National Bank (BNRH) andthe Planning Council (CONADEP).

vi. Government would provide the counterpart funds for project manage-ment and strengthening of agricultural services. Funds from the World FoodProgram (WFP) would finance two million man-days of unskilled labor in theform of "food for work". Project costs are estimated to total US$13.4 millionequivalent. IDA would finance US$10 million, or about 75%; Government wouldcontribute US$2 million, or almost 15%; and the WFP, US$1.4 million, or about10%. IDA's contribution would cover US$8.2 million, or 100% of the estimatedforeign exchange component, and US$1.8 million, or 35%, of local currencyexpenditures, which is justified on country grounds. Government would passon the proceeds of the IDA credit as a grant to ODN for the execution of theproject.

vii. The Government has requested bilateral assistance from the FederalRepublic of Germany and France to finance the cost of resident consultants.Should this assistance materialize, IDA would cancel an amount of the proposedIDA credit equivalent to the assistance so received, which is expected toamount to about US$2 million.

viii. Procurement of items financed by the WFP would be in line withits procurement procedures. All other procurement would be in accordance withthe Bank Group's Procurement Guidelines. Contracts in excess of US$50,000,aggregating about US$2 million, would be awarded on the basis of internationalcompetitive bidding. Contracts of less than US$50,000 but over US$10,000would be awarded on the basis of competitive bidding advertised locally. The

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bulk of civil works for irrigation rehabilitation/expansion and road construc-tion would be done on force account, but small local contractors would behired to carry out specific construction tasks.

ix. Financial rates of return based on four representative farm modelprojections have been estimated at 18% for rainfed and 29%, 31% and 48%,respectively, for three irrigated farm models. The economic rate of returnfor the project is 14%, with sensitivity tests showing that the project couldabsorb some setbacks and still be economically viable.

x. During negotiations appropriate assurances were obtained thatprovide a suitable basis for an IDA credit of US$10 million equivalent undernormal IDA terms.

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

I. INTRODUCTION

1.01 The Government of Haiti has requested IDA assistance in financing

a rural development project in the arrondissement of Cap-Haitien and the irri-

gation district of St. Raphael in the arrondissement of Grande Riviere du

Nord, both located in the Northern Department. The project would benefit

about 30,000 rural families mostly within the category of absolute poverty

and would be financed jointly with the World Food Program (WFP).

1.02 The project would be IDA's first agricultural/rural development ope-

ration in Haiti but the Bank Group has assisted the Government in other projects

for highway rehabilitation, financed by Loan 141-HA (US$2.6 million) in 1956;

highway maintenance, financed by Credit 32-HA (US$350,000) in 1962; reconstruc-

tion of the Northern Road, financed by Credit 478-HA (US$10 million) in 1974

and Credit 556-HA (US$20 million) in 1975; education, financed by Credit

618-HA (US$5.5 million) in February 1976; and supply of electric power in the

Port-au-Prince area, financed by Credit 645-HA (US$16 million) in June 1976.

1.03 The project was identified by an agricultural sector study jointly

undertaken by IDB, FAO and IBRD in 1973. It was prepared from February to May

1975 by an FAO/CP team.

II. BACKGROUND

A. General

2.01 Haiti is the poorest country of the Americas. With an area of

27,750 km and a population of 4.7 million in 1976, the average population

density is about 170 persons per square kilometer. GNP per capita in 1975

was US$180, but the depressed living standards of the population can be better

illustrated by a high infant mortality rate of about 150 per thousand live

births, an average life expectancy of only 50 years, very low nutrition and

sanitation standards, and an adult illiteracy of about 80%.

2.02 Haiti's economy has shown contrasting trends over the last four

years. In real terms, GDP grew by about 2.5% p.a. and gross domestic income

by about 3.8% p.a. between 1971 and 1975, thanks to relatively favorable terms

of trade. Agriculture, Haiti's most important sector, however, has shown

little progress, growing at only 1.2% annually, which is less than the average

rate of population growth of 1.6%. Further, the volume of agricultural exports

has been declining but, because of increased industrial exports, the overall

annual decrease in exports was only about 2% in the same period. The trade

balance, however, was converted from a US$1.5 million surplus in 1971 to a

deficit of US$22.5 million in 1975.

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B. The Rural Sector

2.03 In 1975, the rural sector accounted for about 45% of GDP (about US$400million) and over 50% of merchandise exports (US$39.5 million) (coffee, 20%;essential oils, 5%; sugar, 10%; sisal, 3%; and other agricultural products,12%). Not only does agriculture provide the livelihood of about 80% of Haiti'spopulation now, or about 680,000 families, it will continue to be the largestsource of employment for the foreseeable future. Nevertheless, in 1975,the sector received less than 7% of total Government expenditures, and theGovernment assistance in terms of production support services (research,extension, credit and marketing) is inadequate. Thus, except for sugarcaneand some rice and tobacco cultivation, agricultural production methods remainprimitive. Domestic agricultural output falls short of the country's require-ments of grain, edible oils and fats, and dairy products by 20 to 30%. Importsof these products absorb an estimated 92% of agricultural exports.

Land Use and Land Tenure

2.04 Of the country's total area, only 15% is well suited to agriculturealthough twice as much is actually under cultivation. The remaining 70% istoo arid or steep for cultivation. Mountain agriculture is limited to coffeeand cocoa, while most of the country's food crops and some of the export crops(sugar, citrus, sisal) are grown in the river valleys. The Artibonite valley,which has an extensive irrigation system, is the rice producing center of thecountry. The large northwest peninsula, with its semi-arid climate, and thewestern portion of the Cul-de-Sac plain, restricted by lack of water andunderlying salinity, constitute the country's low production regions. Forestcover has been drastically reduced as trees have been cut to provide firewood,and erosion is a serious problem, especially where subsistence crops are grownon steep slopes.

2.05 The lack of an adequate cadaster makes it difficult to determinethe land tenure situation. The revolution in the early 1800s, with theextensive distribution of land among peasants, resulted in a structure ofsmall farms which in time have been further subdivided. Most land is pri-vately owned and the present Rural Code legislation divides the land amongsurviving heirs, resulting in increasing minifundia. Other forms of landtenure include absentee owners, tenants and sharecroppers. An average ofabout 1.2 ha is available per family of five to six persons. The majorityof the farms are too small to provide more than a family subsistence. Thetypical Haitian farmer has only a hoe and machete as basic farming tools.

2.06 Farmers' organizations are not common in Haiti and the few existingcooperatives are either in the form of pilot projects or associated withprivate groups, generally religious in motivation. Other forms of agriculturalcooperation exist, including mutual assistance labor groups which rotate amonga number of farms to carry out essential agricultural work as well as groupsof small farmers who constitute Agricultural Credit Societies (SACs) of mutualguarantee.

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Rural Income Structure

2.07 The income distribution pattern in 1970 obtained from a survey of the

Haitian Institute of Statistics shows that about 90% of the rural population

earned an average income of less than US$45 per person. Analysis of rural

incomes and annual per capita consumption rates of essential goods and services

indicates that more than 90% of the rural population and 85% of the totalpopulation of Haiti were, in 1975, below the absolute poverty level of about

US$60.

Agricultural Services

2.08 Training, research and technical assistance in agriculture are the

responsibility of the Department of Agriculture, Natural Resources and Rural

Development (DARNDR). The Faculty of Agronomy in Port-au-Prince turns out

about 40 agronomists and 15 veterinary assistants per year, and agriculturalschools in the interior train about 100 agricultural technicians per year.

Rural education and functional literacy courses are under the responsibility

of DARNDR and the National Office of Alphabetization and Community Development(ONAAC), respectively, while several private groups give training in agricul-

ture at the vocational level and education at the elementary level for rural

children. Although the training programs and output of agricultural staff and

veterinary assistants are, by and large, adequate, there is a lack of veteri-

narians. Research is conducted at a central experimental station in Damien

and at plots throughout the country, but facilities and personnel are inade-quate. The Agricultural Extension Service (SVA) assists farmers in adoptingimproved methods of production, while the Rural Animation Service (SAR)

further supports such efforts and also assists in community development. Both

services are staffed by some 200 mostly medium-level technicians, reaching at

present only about 5% of farmers (30,000 farmers). A proposed program to

strengthen agricultural extension is included in the 1976-81 Agricultural

Development Plan and would increase to 300,000 the number of farmers reached

by 1981.

2.09 Agricultural credit is provided through two specialized Government

agencies -- the Institute for Agricultural and Industrial Development (IDAI),

which is a multi-sector financing institution, and the Bureau of Agricultural

Credit (BCA), which has been especially designed to serve the needs of smallfarmers by organizing them into groups. In 1975, the portfolio of both these

agencies amounted to US$593,000, which represents only about 0.17% of thevalue of agricultural production and reached only about 0.5% of all farmers.Both institutions require Government financial support to break even.

Rural indebtedness to non-institutional credit sources, such as relatives,merchants and moneylenders, is widespread, with interest rates running up to

120% a year or higher. The bulk of IDAI's funds is invested in industry, and

most of its agricultural loans go to farmers owning more than 5 ha. The rate

of interest charged by IDAI was raised from 8% to 9% in September 1976. The

BCA is a bureau within the framework of DARNDR, which is chaired by the State

Secretary of DARNDR and managed by a Director appointed by the President of

the Republic. Its staff of 50 persons is distributed among nine regional

offices, including one at Cap-Haitien with a staff of eight. In 1975, BCA

advanced US$165,000, mainly by way of short-term loans for crop production, togroups of seven to 15 small farmers known as SACs who would borrow under amutual group guarantee, and to particularly efficient individual farmers. Theaverage loan per SAC was about US$200 and that to individuals, about US$90.A limited amount of term credit was also extended for small irrigation works,land improvement, and agricultural machinery. In December 1976, the rate ofinterest charged by BCA for all its loans was increased from 8% to 9%. Com-pared to around 15% at commercial banks, this rate is negative in real terms,in view of the about 18% rate of inflation in 1975, which, however, is ex-pected to decline sharply over the medium term. BCA's income from interestin 1975 amounted to only 11% of total operating costs while the Governmentsubsidy amounted to 70% and other income to 3%, leaving a loss equal to 16%.Arrears, uncollectible in large part, stood at about 40% of its portfolio.

2.10 Although the BCA's financial standing is poor, it will have to playan important role in rural development programs, as it is, by statute, dedi-cated to providing technical assistance and credit to small farmers. Itspast performance mainly reflects the impact of the basic difficulties facedin the supply of agricultural credit to small farmers in Haiti such as: (a)fragmentation of holdings (1.2 ha average); (b) lack of farmer organizations atthe grass-root level; (c) inadequacy of the infrastructure such as feeder andfarm access roads and irrigation facilities; and (d) lack of adequate extensionand marketing services. In view of the severe constraint of financial, tech-nical and administrative resources, the strategy of the Government is topromote the development of institutional credit gradually in step with that ofother agricultural services and infrastructure, which is being undertaken on aregion-by-region basis as, for example, under programs such as the on-goingprojects in Artibonite, the Plain of Gonaives, and the proposed IDA project.The problem of the reorganization of BCA is, at the same time, being reviewedby Government with the assistance of consultants employed by the USAID inconnection with its agricultural credit activities in Haiti, which include (a)a grant of US$3 million for disbursement as fertilizer credit to small coffeegrowers; (b) strengthening of BCA with the support of three expatriate consul-tants (agriculturalist, credit adviser and management specialist) and 28agricultural credit extensionists; and (c) a proposed US$1 million project forsimilarly assisting the production of subsistence crops.

Agricultural Prices and Marketing

2.11 Except for sugarcane, for which the Government sets the price, thereis no price regulation. The weak bargaining position of the producers,particularly small farmers, works to the advantage of exporters, processingindustries and the merchant sector, which enjoy the availability of capitaland, to some extent, of credit. Thus, the agricultural price system in Haitihas not so far provided sufficient incentives for increased production.

2.12 Coffee exports are controlled by a few large operators, with about2,000 middlemen providing the link with producers, mostly small farmers.Food crops, on the other hand, are marketed along traditional lines by num-erous small operators who purchase, assemble, process and transport the produce

in small lots to regional and consumer markets. The system is labor-intensive

and reasonably efficient, but, because of an almost total lack of storage,

marketing and credit facilities, crop forecasts and market information, as

well as of all-weather roads, the farmer is unable to cushion steep seasonal

and geographic price variations.

Physical Infrastructure

2.13 Irrigation is a major priority in Governnent's development policy.

Of the estimated 150,000 ha of irrigable land in the country, about 70,000 ha

are being irrigated by over 100 systems. The larger irrigation districts

include the Artibonite, the Trois Rivieres, the Gonaives, the Limbe, the

Quartier Morin and St. Raphael systems. The smaller systems are largely con-

centrated in the Southern Peninsula and the Arcahaie Plain, and a well irri-

gation system is operative in the Cul-de-Sac plain. Systems serving about

80% of the irrigated lands are in need of extensive rehabilitation, particu-

larly those in the Northern Department.

2.14 The main Port-au-Prince/Cap-Haitien highway is being reconstructed,

with assistance from IDA (para 1.02), while the important southern route,

Port-au-Prince/Les Cayes, is being built with IDB assistance. A branch to

Jacmel is being financed by the French Fund for Assistance and Cooperation

(FAC). Lack of adequate secondary, feeder and farm access roads, however,

continues to handicap rural development, and the chronic lack of maintenance

must be overcome if the transport infrastructure is to be effective.

2.15 Potable water supply facilities are insufficient in all rural/urban

centers. Some of the existing systems require extensive rehabilitation, and

a program to tap underground water and springs is needed.

2.16 A series of privately owned small thermoelectric plants are scat-

tered throughout the country to provide electricity to the rural sector.

An IDA-financed power project (para 1.02) will help construct a 21-MW diesel

power station in Port-au-Prince, expand and rehabilitate the distribution

network and provide technical assistance.

Health Services

2.17 The health services provided in rural areas are much poorer than

those in urban areas, although the 1975 Health Plan designates the rural

population as its principal objective. The Governnent has been giving health

a high priority, providing it with almost 14% of current budgetary expendi-

tures. The health sector has been recently strengthened by an IDB-financed

program for rural health services and by UNICEF grants to equip health facili-

ties and promote a nutrition program.

C. Government's Rural Development Strategy

2.18 With over 80% of its population in agriculture and limited pros-

pects in other sectors, development of the rural sector is a major goal of the

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Government. An average annual public expenditure in the rural sector, esti-mated at US$4.9 million for the 1974-77 period, is scheduled to be increasedto about US$20 million in 1977-81, rîsing from 9 to 25% of total public expendi-tures. Since these amounts far exceed Government's own resources, most of thefunds will have to be provided by external assistance.

2.19 The agricultural sector is characterized by (a) a low per capitaincome (slightly over US$60); (b) by small farm sizes (1.2 ha); (c) a poorinfrastructure; and (d) lack of public support services. The Government'sstrategy for rural development, therefore, calls first for the rehabilitationand extension of the existing transport and irrigation infrastructure. Foodcrop production would be increased next, followed by an expansion of exportcrops, particularly coffee and sugar, through increased agricultural creditand improved extension services to farmers to be organized into groups.However, because of the constraints encountered in the sector, nationwideefforts have little chance to succeed and Government is formulating projectsand plans in the framework of a policy of regionalization, based on on-goingprojects such as those in the Gonaives and Artibonite plains and the PetitGoave and Les Cayes projects. Special attention will also be given to increas-ing the incomes and living standards of small farmers by providing basicinfrastructure, improved technology packages and adequate support and socialservices through rural development projects.

2.20 The proposed project is in line with the above strategy and theoverall approach of regionalization, with emphasis on rehabilitation ofexisting infrastructure, increased food crop production and the establishmentof a project organization whose operations would gradually extend, in a secondphase, to the whole Northern Department.

III. THE PROJECT AREA

3.01 The project would be located in Haiti's Northern Department and

would cover the entire arrondissement of Cap-Haitien (500 km 2) (Map), in-cluding the irrigation district of Quartier Morin, and the irrigation districtof St. Raphael in the arrondissement of Grande Riviere du Nord (Annex 1).Quartier Morin, with about 2,000 ha, and St. Raphael, with about 1,900 ha,are both presently irrigating only about 50% of the areas commanded, beingin need of extensive rehabilitation. There is a total of about 45,000 haof agricultural land of which about 35,000 ha is cultivated each year. Thesoils present well structured clay and clay loams highly suitable for cropproduction. Rainfall (annual average in the lower plain, 1,300 mm; inSt. Raphael, 850 mm) is very irregular and droughts are frequent (Annex 1).Groundwater potential in the lower plain is extensive. Several privatelyowned wells north of Quartier Morin penetrate a slightly artesian aquifer andyield over 100 liters/second, pumped from a relatively shallow depth atreasonable costs.

3.02 There are about 220,000 people in the project area, including about8,000 people living in the irrigation district of St. Raphael. About 50,000

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people live in the capital of the Northern Department, Cap-Haitien, whereas

the rural population accounts for about 160,000 persons (or about 30,000families). About 92% of the project area's rural population (roughly 147,000

persons) are under the level of absolute poverty (para 2.07). This economicdeprivation is compounded by lack of health and school facilities, malnutri-

tion and endemic diseases (diarrhea, tuberculosis, and the like), a poor

physical infrastructure (roads, drinking water, electricity) and an extremelylimited social and communications infrastructure. The municipal markets inCap-Haitien and St. Raphael are insanitary and badly equipped, as is the

abattoir at Cap-Haitien.

3.03 Over the last few years, the price of land in the project area hasgone up tenfold and land purchases by larger farmers have increased signifi-cantly due to growing demand for agricultural products and rumors of infra-

structure improvements expected under the proposed project. However, the

Government has recently enacted a law to curtail land speculation in develop-ment areas. Further, assurances were obtained during negotiations that the

Governnent would (a) take all appropriate measures to determine and widelypublicize fair prices for land acquisition and for rental in the zones of theproject area which will remain rainfed under the project; (b) prohibit land

transactions in the Quartier Morin and St. Raphael irrigation districts untilthe irrigation rehabilitation/expansion works of the project are completedor the Government gives its prior approval; and (c) after the completion of

the irrigation rehabilitation/expansion works, take all appropriate measuresto determine and widely publicize fair prices for land acquisition and for

rental in the above irrigation districts.

3.04 Agriculture in the project area is dominated by small farms.Farmers cultivating up to 6.5 ha -- who constitute the central core of the

target group -- represent about 92% of all farmers and their holdings repre-sent about 53% of the cultivated land. About 98% of all farms have less than

13 ha, occupying almost 70% of the land, and there are only about 12 farms in

the 65- to 130-ha category, 12 farms with somewhat over 130 ha, and one farm

comprising about 400 ha. About 74% of all farms are run by owners, 10% bytenants, 10% by managers and 6% by sharecroppers (Annex 1).

3.05 Food crops -- mainly corn and beans, some sorghum and rice, bananas,yams and manioc -- occupy almost two-thirds of the cultivated area (23,000 ha).

Cash crops comprise sugarcane, on almost 20% of the cultivated area (7,000 ha),and coffee, cocoa and citrus, on about 15% of the cultivated area (5,000 ha).Agricultural services such as extension and credit are almost non-existentand use of modern inputs is practically unknown. There are roughly 20,000head of cattle, 50,000 pigs and 20,000 goats. Livestock diseases in the area

are controllable, but animal health facilities are poor. The project area'sproduction barely covers subsistence food needs for both the rural and

Cap-Haitien population and generates an annual per capita monetary income ofonly about US$10.

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IV. THE PROJECT

A. Brief Description

4.01 The project would be carried out over a four-year period and wouldrehabilitate and expand irrigation systems, provide credit to mostly small

farmers, carry out agricultural trials and seed multiplication, improve tech-

nical assistance, set up an animal health service, rehabilitate two municipalmarkets and an abattoir, repair and construct feeder and access roads, and

improve rural water supply. In addition, the project would sponsor trainingfor project staff, carry out studies for project implementation and prepara-

tion of a follow-up project, and undertake project monitoring and evaluation.An "Organisme de Developpement du Nord" (ODN), established under the Presidentof the Republic would carry out the project and coordinate and supervise theproject-related efforts of all the participating agencies.

4.02 The project would concentrate on removing key constraints to devel-opment not presently covered by other programs. Thus, no human.health compo-nent is included since extensive assistance in health is already being pro-vided by the Government, IDB, PAHO, UNICEF, USAID and religious organizations,e.g., Center for Rural Development of Milot (CRUDEM) in the project area.Likewise, education and erosion-prevention components are excluded as theserequirements are being met by IDA's first education project (para 1.02) andby WFP/FAO project No. 2105, respectively.

B. Detailed Features

Irrigation

4.03 Rainfall in the project area is relatively high, but very irregularand droughts are frequent (Annex 1). Therefore, all canals and drains of theQuartier Morin district would be cleared and repaired, syphons and distributionstructures rehabilitated, and dikes along the Grande Riviere du Nord repaired(Annex 2). Irrigation and drainage canal systems would also be extended to

serve an additional 800 ha, bringing the total irrigated area to 2,000 ha.Land leveling and construction of gates, farm ditches and drains would be

carried out on the total 2,000 ha. The 1,900-ha St. Raphael district wouldreceive similar extensive rehabilitation works, including on-farm improvements.Pending the above improvements, sufficient water is available to allow doublecropping on about 85% of the area in the Quartier Morin district and 70% ofthe St. Raphael district. In addition, up to 14 wells would be constructed in

the area north of Quartier Morin, each about 40 m deep and equipped with adiesel pump, irrigating altogether about 1,000 ha.

Agricultural Credit

4.04 Agricultural credit would be made available through BCA (Annex 3)to SACs and to individual farmers who cultivate up to 10 ha in the irrigated

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areas and up to about 15 ha in the rainfed areas. Short-terim subloans to coverthe costs of fertilizers, pesticides, seeds, livestock medication and such,and medium-term credit to purchase draft-oxen, yokes, plows, sprayers, pumpsand the like would be provided. On an experimental basis, medium-term creditwould also be extended for construction of simple grain storage facilities,such as a 3- to 4-ton container, or larger storage of up to 50 tons for use ona collective basis.

Agricultural Trials and Seed Production

4.05 The project would provide for comprehensive agricultural trials andseed production programs in collaboration with the Caldos sugar mill andCRUDEM and with individual farmers, subcontracted by ODN (Annex 4), by finan-cing equipment for land preparation, planting and harvesting; transport; seedprocessing and laboratory tests; and related operating expenses for fuel,fertilizer, herbicides, pesticides, seed and the like. It would also providetechnical assistance.

Extension Services

4.06 Both the regional SVA and SAR (para 2.08) would be strengthened bythe establishment of field offices in Quartier Morin, Plaine du Nord andSt. Raphael, as well as by transportation and working facilities and additionalstaff (Annexes 5 and 6) to allow fôr one extension agent for about 200 farmersand one animation agent for each commune.

Animal Health

4.07 The project would strengthen the regional Veterinary and LivestockServices (SMV/SE) in the project area by providing two additional veterinaryassistants; constructing field offices in Plaine du Nord and St. Raphael;purchasing motorbikes and veterinary equipment; providing incremental oper-ating funds, principally for the operation of vehicles; and purchasing drugs,medicines and vaccines (Annex 7).

Municipal Markets and Abattoir

24.08 The roofed 5,000 m central market in Cap-Haitien would be completelyrenovated and equipped with-adequate water and drainage facilities, sanitaryinstallations, display tables, butcher shops, and a 3-ton capacity coldstorage room. The open-air "abattoir market" would be provided with adequatewater supply, drainage, sanitary installations, some display tables, and pavedwalkways. The municipal market of St. Raphael would also undergo improvementworks, including provision of water supply, pavement of the market area, pro-vision of2adequate drainage, and construction of a slaughter-slab (Annex 8).The 300 m municipal abattoir of Cap-Haitien would be completely renovated(Annex 9).

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Roads

4.09 The project would provide for the construction of 53.5 km of feederroads in the arrondissement of Cap-Haitien and 13 km of feeder roads and 27 kmof farm access roads in the St. Raphael area and for their maintenance duringthe disbursement period (Annex 10). The project would also provide a simpleequipment fleet, related operating funds, as well as tools for maintaining andrepairing the equipment fleet at the workshop of the National Road MaintenanceService (SPRRN) in Cap-Haitien.

Potable Water

4.10 The project would finance the construction of up to 400 hand-dug wellsoperated with hand pumps and up to five small water supply systems served bysprings (Annex 11). Wells would be 2 to 10 m deep with 1 m diameter linedwith prefabricated reinforced concrete rings or brick, disinfected and protectedwith reinforced concrete covers. The small water supply systems would havespring catchments, a small concrete water reservoir, and plastic pipes leadingto three or four public standpipes.

Project Administration

4.11 The project would finance the establishment of the ODN in Cap-Haitien(Annex 12) to plan, coordinate, supervise and administer project implementa-tion (paras 5.01 to 5.04). Offices for this agency would be built and fur-nished and the salaries of staff, including nine resident senior specialists(Annex 13) and support staff, would be financed. Short-term consultantservices (35 man-months) would be divided between project implementation(about 22 man-months) and the preparation of a follow-up rural developmentproject (about 13 man-months). Vehicles and equipment would be purchasedand operating expenses covered. ODN would be supplied with funds to financetraining in agricultural credit, agricultural extension, and rural animation(Annexes 3, 5 and 6), and for overseas training for Haitian ODN staff inpractical aspects of project-related work.

Project Monitoring and Evaluation

4.12 Project monitoring and evaluation would be carried out by theEvaluation and Control Unit within the Agricultural Planning Unit of DARNDRto assess project results, permit timely modifications of its design anddetermine the extent to which the project could be replicated elsewhere inthe country. Project funds would cover salaries of a project monitoring andevaluation specialist and support staff and operational expenses (Annex 14).

C. Cost Estimates

4.13 Total project costs are estimated at US$13.4 million, including aforeign exchange component of US$8.2 million, or about 61% of total projectcosts. A detailed cost analysis is provided in Annexes 15 and 16 andsummarized follows:

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Summary of Project Cost

X of

G'000 US$ '000 % of Foreign

Project Components Local Foreign Total Local Foreign Total Base Cost Exchange

1. Irrigation 9,798 6,615 16,413 1,960 1,323 3,283 36 40

2. Agricultural Credit 932 4,192 5,124 186 839 1,025 il 82

3. Trials and Seed 157 261 418 31 52 83 1 62

4. Extension Services 1,887 728 '2,615 377 146 523 6 28

5. Animal Health 116 328 444 23 66 89 1 74

6. Markets and Abattoir 189 616 805 38 123 161 2 77

7. Roads 1,730 4,508 6,238 346 901 1,247 14 72

8. Potable Water 258 601 859 52 120 172 2 70

9. Project Administration 1,661 9,477 11,138 332 1,895 2,227 25 85

10. Project Monitoring 263 890 1,153 53 178 231 2 78

Total Base Cost 16.991 28.216 45.207 3.398 5.643 9.041 100 62

Physical Contingencies 2,523 2,566 5,089 505 513 1,018 il 50

Price Contingencies 6,191 10,273 16,464 1,238 2,055 3,293 37 62

Sub-total 8,714 12.839 21.553 1.743 2.568 6 311 4R An

Total Project Cost 25,705 41,055 66,760 5,141 8,211 13,352 - 61

4.14 Cost estimates are based on mid-1976 prices. Physical contingencies

include about 20% on irrigation expansion/rehabilitation, water supply, trialsand seed production, municipal markets and abattoir and 10% on road construc-

tion. Expected price increases have been calculated by compounding the follow-

ing annual rates of increase for both local and foreign costs: for buildingsand civil works, 6.5% in 1976, 12% in 1977 through 1979, and 10% thereafter;

for equipment, 4.5% in 1976, 8% in 1977 through 1979, and 7% thereafter;

and for all other costs, 3.75% in 1976, and 7.5% thereafter.

D. Financing

4.15 Project financing would be shared by the Haitian Government, WFP,and by the IDA as follows:

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Project Financing(US$ '000)

Project Component Government /1 WFP IDA Total

1. Irrigation 485 900 1,898 3,2832. Agricultural Credit 168 - 857 1,0253. Trials and Seed 4 - 79 834. Extension Services 343 - 180 5235. Animal Health 20 - 69 896. Markets and Abattoir 8 - 153 1617. Roads 74 100 1,073 1,2478. Potable Water 9 - 163 1729. Project Administration 170 - 2,057 2,22710. Project Monitoring 36 - 195 231

Total Base Cost 1,317 1,000 6,724 9,041

Physical Contingencies 163 - 855 1,018Price Contingencies 492 380 2,421. 3,293

Sub-total 655 380 3,276 4,311

Total Project Cost 1,972 1,380 10,000 13,352

Percentage of Total 14.8 10.3 74.9 100

/1 Includes contributions of medium-size farmers under agricultural credit.

The proposed IDA credit of US$10 million, or about 75% of total projectcosts, would be made to the Government on standard terms. It would coverUS$8.2 million, or 100% of the estimated foreign exchange component, andUS$1.8 million, or 35% of local expenditures, which is justified on countrygrounds. The contribution of the WFP--equivalent to the cost of two millionman-days of unskilled labor in the form of "food for work"--estimated atappraisal at US$1.4 million, or about 10% of total project costs, would bemade to the Government as a grant, and the Government's contribution wouldcover US$2 million, or almost 15% of total project costs. Government'scontribution would principally meet local salaries (US$1.5 million) and alimited proportion (5% to 10%) of other local expenditures. A detailedfinancing plan is given in Annex 17. Whereas the share of the WFP in projectfinancing would be in kind, Government and IDA funds, totalling US$12 million,would be passed on as a grant to ODN. ODN would use about 28% of these funds(US$3.4 million) for implementing the project and would channel the remaining72% (US$8.6 million) to the participating regional agencies.

4.16 The Government has requested bilateral assistance from the FederalRepublic of Germany and France to finance the cost of the resident consultants.The authorities in both countries are favorably inclined towards this request,

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the processing of which has already been initiated. During negotiations, the

Government agreed that, should bilateral assistance materialize, IDA could

cancel an amount of the proposed IDA credit equivalent to the assistance so

received, which is expected to amount to about US$2 million.

4.17 It would be a condition of credit effectiveness that IDA had been

informed by WFP that its ongoing "food for work" program in Haiti, No. 2105,

had been modified to provide 200,000 man-days of unskilled labor for the first

year of the project. Agreement in principle has been reached regarding WFP's

next program in Haiti, which would provide the balance (1.8 million man-days)

of labor required for the project. In addition, assurances were obtained from

the Government during negotiations that it would make the necessary budgetary

allocations to cover its share of the project cost during the life of the

project.

E. Procurement

4.18 "Food for work" (equivalent to the cost of two million man-days of

unskilled labor) would be financed by WFP, and procurement would be in line

with its procedures. All other procurement would be in accordance with the

Bank,Group's Procurement Guidelines. Contracts in excess of US$50,000 for

buildings (US$0.4 million), drilling of irrigation wells (US$0.3 million), and

purchase of vehicles and equipment (US$1.3 million), aggregating about US$2

million, would be awarded on the basis of international competitive bidding in

accordance with IDA guidelines. Goods manufactured locally would be allowed a

preference of 15% (or the level of applicable import duty, whichever is lower)

over foreign goods, and for civil works, domestic contractors would be granted

a 7.5% preference over foreign contractors. Contracts of less than US$50,000

but over US$10,000 would be awarded in accordance with Government procedures

satisfactory to IDA. The bulk of civil works for irrigation rehabilitation/

expansion and road construction would be done on force account, but small

local contractors would be hired to carry out specific construction tasks.

The services of internationally recruited resident and short-term consul-

tants, costing about US$2.4 million, would be obtained in accordance with

procedures acceptable to IDA.

F. Disbursement

4.19 The proceeds of the IDA credit would be disbursed over a four-year

period to cover the following amounts:

(a) Civil works, excluding expenditures on vehicles and equipment:

(i) 60% of total expenditures on irrigation rehabilitation/

expansion (US$1.9 million); and

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(ii) 90Z of total expenditures on office buildings and staffdwellings, rehabilitation and improvement of three muni-cipal markets and one abattoir, potable water supplyfacilities and road construction (US$1.7 million);

(b) 100% of foreign expenditures on imported vehicles and equipment,or, if procured locally, 75% of local expenditures (US$1.3 million);

(c) 95% of expenditures for agricultural credit (US$1 million);

(d) 95% of total expenditures for project administration (exceptsalaries), and expenditures on vehicles and equipment (US$0.7million); and

(e) 100% of total expenditures on resident and short-term consul-tants and fellowships for project staff (US$2.2 million).

US$1.2 million would be unallocated. Any unspent balance would be cancelled.Annex 18 shows the estimated quarterly disbursements. Disbursements would bemade against import documentation, contracts, or against certified statementsof expenditures. For disbursements against the latter, documents would not besubmitted to IDA for review, but would be retained by ODN for possible scrutinyby project supervision missions. All statements of expenditures would besigned by the Project Accountant and countersigned by the Project Director.

V. ORGANIZATION AND MANAGEMENT

Project Administration

5.01 ODN. Implementation of the project would be the responsibility ofODN (Chart), established under the President of the Republic and supervised bya Board chaired by the State Secretary of DARNDR and including representativesof the Departments of Public Works (TPTC) and of Finance, BNRH, the PlanningCouncil (CONADEP), and the Director of ODN. A Regional Coordinating Committee,comprising the Director of ODN and representatives of the relevant Governmentservices, non-Government agencies and farmers, would review twice a year, orwhenever the need arises, the progress of ODN operations and propose changesif necessary. The draft statutes for ODN's establishment were submitted toIDA for review prior to their enactment.

5.02 ODN headquarters would be in Cap-Haitien and be adequately staffedand equipped (Annex 12). It would comprise two basic units: a planning,coordinating and work supervision unit and an administrative and accountingunit. The nine key staff members of ODN would be the Director, his Deputy(an agricultural economist or agronomist), a surface water irrigation spe-cialist, a groundwater irrigation specialist, an agronomist, a marketing/agricultural credit specialist, a road construction engineer, a communitydevelopment officer, and a chief accountant. Necessary support personnel

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would complete the staff and 35 man-months of short-term consultants would beprovided for the various project components. A Haitian national, who has beenselected in consultation with IDA, would be the Director, assisted by aninternationally recruited Deputy Director with project management experience.The community development officer and chief accountant would also be Haitiannationals. However, since it is unlikely that qualified and experiencedHaitian nationals would be available to fill the remaining posts, expatriateswould be hired, providing each with a suitably qualified counterpart. By theend of the disbursement period, the counterparts would replace the special-ists. During negotiations, assurances were obtained from the Government that:(a) candidates for the six internationally and three locally recruited keyproject staff positions, as well as the short-term consultants, would beapproved by IDA and would fulfill terms of reference and conditions ofappointment acceptable to IDA within an established timeframe set out inSchedule A of Annex 13; and (b) it would make available adequate supportstaff also in accordance with Schedule A of Annex 13. A condition of crediteffectiveness would be that the Director and Deputy Director of ODN had beenemployed by the Government.

5.03 ODN would coordinate the activities of other relevant regionalservices involved in rural development in the project area, such as those forhealth and education, as well as those of bilateral and multilateral agenciesand of private organizations. In addition, ODN would participate in theyearly review by Government and IDA of projected sugarcane production in theproject area, of the processing capacity of the sugar mill and regarding theestablishment of a yearly cutting and collection schedule for sugarcane aswell as assist in the supervision of these arrangements (para 6.03).

5.04 ODN would rely on existing public services to execute specificproject components, but would execute by itself and/or through the use ofprivate consultants and/or governnental agencies all necessary planning andpre-investment studies for the proposed project operations and the prepara-tion of a follow-up project. During negotiations, assurances were obtainedthat each of the governmental agencies participating in the project would:(a) carry out the components of the project entrusted to it and increase andmaintain its staff during the life of the project, following the timetable inSchedule A of Annex 13, except as the Association shall otherwise agree;(b) submit to ODN for approval, no later than July 1, 1977, its investment andoperating budget for project-related activities, as well as its operatingplans for the next fiscal year's activities under the project; (c) submit, byJuly l of each following year, a report on its planned activities relating tothe project for subsequent years; and (d) submit the annual report of project-related activities carried out in the year by October 31 of each followingyear. An initial implementation schedule of project activities is given inAnnex 12, Table 3. Assurances were also obtained with regard to the improve-ment of DARNDR services by requiring the Government to undertake annualreviews, beginning not later than the end of the first project year, of:(a) the adequacy of agricultural training programs so as to ensure a nationallyadequate number of trained support staff (based mainly on the requirements ofthe regional integrated development projects) and to review their conditions

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of employment with a view to attracting and retaining qualified personnel inagriculture; and (b) the need for technical assistance to strengthen DARNDR.

5.05 Irrigation. The rehabilitation, expansion and maintenance of irri-gation facilities would be the responsibility of the Irrigation and RiverControl Service (SICR), with assistance from the regional Hyraulics Service(SHRH). Both services would be strengthened under the project to enable themto carry out the bulk of the construction works on force account, and smallcontractors would be hired to carry out specific construction tasks. Further-more, international contractors would construct the irrigation wells if theGovernment-owned drilling rig would not be available to construct them on forceaccount. SICR would also prepare the detailed program for rehabilitation/expansion works, including the technical modifications to the existing gravityirrigation systems and the design for expansion works and groundwater irriga-tion. The present staff of SICR would be reinforced by a staff of 70 persons,including assistant engineers/technicians, gate tenders, pump operators, taxcollectors and support staff (Annex 2).

5.06 Civil works would start in year 1 with the rehabilitation/expansionof the Quartier Morin irrigation district, followed by the groundwater develop-ment scheme north of Quartier Morin during year 2. The St. Raphael irrigationrehabilitation would also begin in year 2. Responsibility for operating andmaintaining the irrigation systems would rest with ODN and SICR during thedisbursement period and with SICR thereafter. During negotiations, assuranceswere obtained that the project-financed irrigation systems would be properlymaintained during the life of the project (20 years). After completion of therehabilitation/ expansion works, all operating and maintenance costs would bepaid by the beneficiaries through water charges, which would include the costsof supervisory staff, to be collected by SICR. Assurances were also obtainedfrom Government that: (a) the level of water charges would cover operationand maintenance costs and the largest possible share of the investment costsof rehabilitation/expansion works (expected to be about 50% of these costs);(b) SICR would be entrusted with the collection of these charges; and (c) thecharges would be determined in consultation with IDA after completion of therehabilitation/expansion works and in accordance with the payment capacity ofthe beneficiaries. The water charges covering operation and maintenance costswould be retained at the Cap-Haitien office of SICR to be used for necessaryworks.

5.07 Agricultural Credit. Agricultural credit would be the responsibi-lity of ODN but would be provided through the BCA, which would act as itsagent for the purpose, with the support of a special staff of 13 to befinanced under the project and employed at BCA's Regional Office at Cap-Haitienand at three field offices to be set up in the project area. The staff wouldinclude an agricultural economist, a marketing officer, three credit exten-sion officers, seven credit extension agents, and an accountant. This staff,which would be trained by, and work under the guidance of the marketing/agricultural credit specialist of ODN, would continue BCA's efforts to organ-ize small farmers into about 400 SACs over a four-year period (from 20 in the

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first year to 200 in the fourth). This staff would also prepare subloan

applications, help disburse credit as approved by ODN (which would also assure

that the farm plans are technically sound), and assist farmers in obtaining

agricultural inputs, marketing agricultural production and constructing grain

storage facilities. Subloan recoveries would be remitted to ODN to be avail-

able for relending.

5.08 Under the present statute governing SACs, 5% of the amount lent to

them is withheld by BCA as a guarantee deposit on which interest is paid and

which, in effect, would represent small farmers' contribution to project cost

in the case of project subloans. Farmers who borrow individually and are

likely to be cultivating up to 13 ha of land would, however, be required to

make a 10% cash contribution. Assurances were obtained during negotiations

that the Governnent would (a) maintain the interest rate charged by BCA on its

subloans at 9% per annum for the first two years of the project; and (b) raise,

thereafter, the cost of such loans, either by an increase in such interest rate

to 11% per annum, or by the addition thereto of a commission of 2% per annum.

Terms and conditions of project subloans are set out in Schedule A of Annex 3.

5.09 Though BCA would immediately be strengthened by the staff under the

USAID program, the employment of additional staff, and the establishment of

three field offices under the proposed IDA project, its role under the project

would be limited to that of an agency for channeling subloans and be subject

to the control of ODN, which would meet the staff and other operating costs of

BCA related to project subloans during the disbursement period. It is, how-

ever, necessary to build it up gradually into a viable credit institution to

serve the small farmers in the country generally and, in particular, those

covered by possible future rural development projects. Governanent recognizes

the importance of this goal and is reviewing the problem, with the assistance

of USAID, so as to formulate a suitable plan of action (para 2.10). Assurances

were obtained at negotiations that Governnent would furnish to IDA, within

nine months of Credit signature, or such longer period as IDA may agree,

a program for the reorganization and financial strengthening of the BCA and

implement such a program as agreed with the Association (the elements of such

a program are given in Schedule B of Annex 3).

5.10 Agricultural Trials and Seed Production. ODN would have direct

responsibility for agricultural trials and seed production (Annex 4), with

supervision carried out by the agency's agronomist. Sugarcane trials would

be carried out in collaboration with the Caldos sugar mill while other trials

and seed production would be coordinated with CRUDEM at its experimental

station and subcontracted with individual farmers. ODN and the SVA would

provide the necessary inputs and technical assistance, and an agricultural

technician on ODN's staff would manage both programs. Three man-months of

short-term consultants would be provided for specific technical probleins.

5.11 Trial plots in individual farms would be distributed throughout

the project area but seed production would be carried out only in irrigation

districts to insure adequate yields and avoid crop failures. A proposed UNDP-

financed trial and seed production center in the project area is expected to

continue these programs at the end of the project's disbursement period.

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5.12 Extension Services. The regional SVA would carry out agriculturaland livestock extension under the project (Annex 5) and actively participatein the agricultural trials and seed production activities (para 5.10). Thestaff for this service would be reinforced by three additional extensionofficers and 30 extension agents. The regional SAR would also be strengthenedby six additional agents (Annex 6) and would work in close coordination withother relevant services, in particular with ONAAC as regards functionalliteracy.

5.13 Animal Health. The regional SMV/SE would treat livestock againstintestinal parasites and carry out vaccination campaigns in the project areaagainst Hog Cholera, New Castle disease, and other potential animal diseases.Veterinary services would be free, but cost of vaccines, drugs and medicationswould be collected (Annex 7). Assurances, therefore, were obtained duringnegotiations that Government would cause the regional SMV/SE in the projectarea (a) to be responsible for the collection of the cost of vaccines, drugsand medication; (b) to determine the level of these costs and methods ofcollection thereof in agreement with the Government and after consultationwith IDA; and (c) to ensure the continued control of major endemic diseases.

5.14 Markets and Abattoir. ODN would, in collaboration with a short-term construction engineer consultant, prepare detailed plans for therehabilitation/improvement of three markets (Annex 8) and one abattoir (Annex9), provide the necessary construction materials and equipment, and supervisethe works. The bulk of work in Cap-Haitien would be carried out by municipaltechnicians and laborers to be remunerated by the municipality, while in St.Raphael, work would be done by small contractors paid by the project. Duringnegotiations, assurances were obtained from the Government that the threemarkets and the abattoir when completed would be properly organized, managedand maintained by the respective municipalities, and that market and slaugh-ter fees collected by the municipalities would be sufficient to cover themanagement and maintenance costs of the facilities.

5.15 Roads. Feeder and farm access roads (Annex 10) would be constructedby the regional office of TPTC on force account. WFP "food for work" laborforces (about 200,000 man-days) would carry out construction and maintenanceworks by hand labor whenever feasible. Design of roads, their alignmentselection, and work supervision would be done by the same service, aided bythe road construction engineer on ODN's staff. Construction of project-financed roads would start by mid-year 1, with the bulk of the works to becarried out in years 2 and 3. SEPRRN would assume maintenance responsibility.During negotiations, assurances were obtained from Government that the project-financed roads would be properly maintained during the life of the project.

5.16 Of vital importance to the project would be the construction ofan all-weather road of about 30 km from Grande Riviere du Nord to the irriga-tion district of St. Raphael (Map). This link is included in the second USAIDhighway project, signed on June 29, 1976. The first section from GrandeRiviere du Nord to Dondon (about 15 km) has already been completed and work isproceeding on the remaining section.

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5.17 Potable Water. Rural water supply facilities in the project area

(Annex 11) would be constructed and maintained by the SHRH in collaboration

with the National Agency for Rural Water Supply (COALEP). Water specialists

on ODN's staff would be available for technical assistance. SHRH, assist-

ed by ODN, would site and design both wells and small water supply systems,

supervise their construction and provide materials and equipment as well

as the assistance of two mechanics to assist with the installation, provided

the beneficiaries carried out excavation works and masonry free of charge.

During negotiations, assurances were obtained that: (a) project-financed

potable water supply systems and wells would be properly maintained during the

life of the project; and (b) their maintenance costs would be met by the

beneficiarles.

5.18 Monitoring and Evaluation. These tasks would be carried out by

the Evaluation and Control Unit wlthin the Agricultural Planning Unit of

DARNDR, which would be strengthened for this purpose by an experienced monitor-

ing and evaluation expert, and necessary support staff. The Unit would pre-

pare a summary report for the project at least once a year and other special

reports as needed. The reports would be reviewed with ODN and subsequently

made availabile to the Government, the ODN Board, the Regional Coordinating

Committee and IDA. A final summary evaluation would be prepared at the end of

project implementation. During negotiations, assurances were obtained from

the Government that it would: (a) within one year from the date of signing of

the Credit Agreement, appoint a project monitoring and evaluation expert,

acceptable to IDA, to the Evaluation and Control Unit of DARNDR and expand the

staff of this Unit in consultation with IDA; (b) require the expert, with the

assistance of Unit staff, to prepare annual reports on the progress of the

project, in accordance with terms of reference satisfactory to IDA; and

(c) within three months following the end of each project year, cause the Unit

to furnish the annual reports to the Government and IDA. In addition to

monitoring and evaluating the proposed project, the above expert would assist

the DARNDR Evaluation and Control Unit to train its staff, to develop monitor-

ing and evaluation methods for rural projects in Haiti and to expand the

Unit's activities nationwide.

Accounts and Audits

5.19 Accounts in the different regional services and the municipalities

of Cap-Haitien and St. Raphael, relevant to the implementation of the project,

would be audited annually by independent auditors satisfactory to IDA, and the

auditors' reports thereon would be sent to ODN within three months of the end

of each fiscal year. ODN, in turn, would keep separate accounts of the

various project components; have them audited by independent auditors with

qualifications, experience and terms of reference acceptable to IDA; and send

its balance sheet and profit-and-loss statement, together with the auditors'

report thereon, to IDA within four months after the end of ODN's fiscal

year. Assurances on these points were obtained at negotiations.

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Cost Recovery

5.20 Based on the farm model projections (Annex 19) and the calculationof rent and cost recovery indices (Annex 2, Table 7), about 50% of cashinvestment for the rehabilitation of the irrigation systems would be paidback by the beneficiaries over a period of 20 years, including a five-yeargrace period, through water charges collected by SICR to be transferredto the Government. Excluding this payment, ODN earnings due to the projectwould be negligible (US$25,000). Government's cash flow throughout thelife of the project would be negative (Annex 20), due to operating costs ofabout US$275,000, which Government would have to cover after the disbursementperiod. The estimated annual incremental deficit, including credit repay-ment (about US$200,000), is based on the assumption that only irrigation fees(US$3.20 per ha, or about US$15,000 per year) and income from sales of drugsand medications (about US$10,000 per year) would be collected and that noadditional project-related taxes or duties would be levied, except for exporttaxes on incremental sugar production, expected to yield about US$140,000 peryear; further, it does not take into account the increased revenues fromindirect taxes--resulting from purchases of taxed goods by project benefi-ciaries --which are difficult to quantify. During the disbursement period,ODN, in consultation with IDA, would examine the possibilities of generatingrevenues to cover part of Goverrment's deficit arising from the project.

VI. PRODUCTION, MARKETS AND PRICES, AND PROJECT BENEFITS

Production

6.01 At full development, in year 7, annual incremental production bysome 4,000 smallholders (1,800 in the rainfed area and 2,200 in the irrigateddistricts of Quartier Morin and St. Raphael) and about 100 medium-size farmerswould be some 80,000 tons of sugarcane, 1,200 tons of maize, 200 tons ofsorghum, 150 tons of rice, 470 tons of beans, 240 tons of bananas, 1,500 tonsof yams, 660 tons of manioc, 200 tons of tobacco, 720 tons of legumes, 150tons of beef, 220 tons of pork, and 240 tons of milk. In addition, the proj-ect would increase, to some extent, the production of the remaining 26,000rural families in the area through better rural animation, agriculturalextension and animal health services and availability of improved seeds.

Markets and Prices

6.02 With the exception of sugar, about 80% of which would be exported,all project-induced agricultural products would be consumed domestically.Such products, accounting for only about 1% of Haiti's total agriculturalproduction, are in strong domestic demand. Grains, bananas, rice and tubersare produced mostly for on-farm consumption (85%), the rest being sold onthe local rural market or through intermediaries in the departmental andnational capitals. Tobacco is, at present, largely consumed in the projectarea, but production of higher grade leaf for manufacturing of cigarettes for

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domestie consumption is increasing. Practically all incremental beef produc-

tion would be shipped to urban consumption centers, whereas incremental milk

and pork production would be consumed on the farm, with any surplus going to a

ready market in Cap-Haitien. The rehabilitation of the municipal markets

under the project would lead to more competitive trading, and the improvement

of about one-half of the project area's road network would facilitate and

drastically reduce the transport cost of agricultural products.

6.03 Up to some 10% of sugarcane production is expected to be consumed

on-farm, 20% transformed into a local rum ("clairin") by about 100 small

distilleries, and 70% converted into raw sugar by the Caldos sugar mill.

After the recent expansion of its capacity, the mill can process the incre-

mental production from the project. During negotiations assurances were

obtained that (a) the milling capacity in the project area would be sufficient

to process the incremental sugarcane production due to the project; and (b) a

yearly review of sugarcane processing capacity in the project area would be

carried out by Government and discussed with IDA. Transportation of sugarcane

to the mill has been traditionally carried out by independent truck drivers

who used to require overpayment from farmers in exchange for priority given to

the collection of their cane. However, this practice has ceased, following

the purchase of additional trucks by the sugar mill for sale to drivers. To

prevent recurrence of the practice, assurances were obtained from the Govern-

ment that it would establish, jointly with the sugar mill, a yearly schedule

for the cutting and collection of the sugarcane and ODN would assist in

supervising the effectiveness of these arrangements.

6.04 Agricultural prices have been steadily rising in the past five

years, but, except for the official increase to farmers in sugarcane prices

from US$5.10 to US$9.00 per ton in 1974, producers have not tended to benefit

(para 2.11). Since sugarcane is the only cash crop in the project area with

an assured market and is, at its present price level, sufficiently attractive

to farmers, and further, since sugar provides high Government revenues through

export taxation (which averaged about 15% of the export price in 1976), assur-

ances were obtained from Government during negotiations that it would

(a) periodicaliy review and exchange views with the Association on the offl-

cial producer price of sugarcane; and (b) not reduce such price without prior

consultation with IDA. Marked price declines at harvest time and in "good"

years are common because a large number of indebted farmers are obliged to

sell their grains immediately after harvest when prices are lowest and ade-

quate storage facilities are lacking. The grain storage facilities provided

under the project would improve the situation.

Project Benefits

6.05 Some 4,000 rural families would benefit from directly productive com-

ponents of the project as well as from the productive support activities and

the road component. In addition, about 26,000 rural families would profit

from better roads, improved agricultural services and the availability ofimproved seeds and would increase their subsistence consumption by 10% to

20%, and about 3,000 rural households would receive potable water supply

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which would improve general hygienic conditions and reduce widespreadintestinal diseases as well as the need to carry water over long distances.Finally, about 60,000 urban inhabitants would benefit from decreased healthhazards and more competitive trading due to the rehabilitation and improve-ment of three municipal markets and an abattoir.

6.06 Four illustrative farm model projections (Annex 19) present thefinancial benefits expected from these investments. The financial ratesof return of the models amount to 18% for rainfed and 29%, 31% and 48%,respectively, for the three irrigated farms. Assuming that 4,000 familiesshare the benefits due to the project equally, apart from improvement of theiron-farm consumption by about 30%, they would increase annual cash incomes fromagricultural and livestock activities from about US$60 to US$150 per familyper year. In addition, about 160 permanent jobs would be created during thedisbursement period and about 125 permanent jobs thereafter for continuationand maintenance of project-financed infrastructure, and up to 2 millionman-days of unskilled labor would be provided for infrastructure develop-ment in the project area under WFP's "food for work" program. Further,project investments and activities would result in fuller employment ofsmall farmers.

VII. BENEFITS AND JUSTIFICATION

Economic Rate of Return

7.01 The project would benefit a rural population with per capitaincomes ranging between US$40 and US$100 equivalent per annum. Quantifiablebenefits would take the form of incremental agricultural production (para6.01), which at full development (year 7) would be worth about US$2 millionannually in 1976 terms. In the absence of the project, the two large irriga-tion systems in the project area would continue to deteriorate, resulting ina significant decrease of present output. Other benefits that are difficultto quantify include the reduction of drought hazards by rehabilitation andexpansion of the irrigation districts; the reduction of transport costsresulting from expansion and rehabilitation of the road network; the reductionof storage losses and protection against seasonal price variations resultingfrom construction of grain storage facilities; the improvement of agriculturalservices through the creation and strengthening of regional institutions inthe Northern Department; and the possibility of implementing other ruraldevelopment projects in Haiti based on the experience acquired.

7.02 The project's economic rate of return is 14% (Annex 21). Sensitiv-ity tests show that a 25% increase in the cost of construction, vehicles andequipment, or a 10% decrease in yields, or a one-year delay of project benefitswould reduce the rate of return to about 10%. The project could thus absorbsome setbacks and still be economically viable.

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Project Risks

7.03 In addition to the difficulties inherent in organizing the newentity--ODN-- and ensuring effective coordination of the various agenciesparticipating in the project, three major risks can be identified at this stage.First, as some 30,000 ha of cultivated land would be rainfed and dependent uponclimatic conditions where a decreasing trend in precipitation has been observedin recent years (Annex 1), production projections contain an element of uncer-tainty. Second, Haiti's past record of maintaining the rural infrastructureis not good. Therefore, project-financed irrigation, roads, water supplysystems, and markets and abattoir may not be kept up as called for. Finally,there is a possibility of unsatisfactory loan collection as the group creditarrangements are still in the process of development; but the denial of freshfinancing under the project to defaulters should help minimize this risk.

VIII. AGREEMENTS REACHED AND RECOMMENDATION

8.01 During negotiations, assurances were obtained from the Governmenton the following principal points:

(a) it would (i) take all appropriate measures to determine and widelypublicize fair prices for land acquisition and for rental in thezones of the project area which will remain rainfed under theproject; (ii) prohibit land transactions in the Quartier Morinand St. Raphael irrigation districts until the irrigationrehabilitation/expansion works of the project are completedor the Government gives its prior approval; and (iii) after thecompletion of the irrigation rehabilitation/ expansion works, takeall appropriate measures to determine and widely publicize fairprices for land acquisition and for rental in the above irrigationdistricts (para 3.03);

(b) it would hire the following project senior staff: six to be inter-nationally recruited--Deputy Director, surface water irrigationspecialist, groundwater irrigation specialist, agronomist,marketing/agricultural credit specialist, and road constructionengineer--and three to be locally recruited--Director of ODN,community development officer, and chief accountant--as well asshort-term consultants, all acceptable to IDA, and would makeavailable adequate support staff within an established timeframe set out in Schedule A of Annex 13 (para 5.02);

(c) it would undertake annual reviews of: (i) the adequacy ofagricultural training programs; and (ii) the need for technicalassistance to strengthen DARNDR (para 5.04);

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(d) the level of water charges would cover operation andmaintenance costs and the largest possible share ofthe investment costs of rehabilitation/expansion works(expected to be about 50% of these costs), that SICR wouldbe entrusted with the collection of these charges, and thatthe charges would be determined in consultation with IDAafter the completion of the rehabilitation/expansion worksand in accordance with the payment capacity of the benefi-ciaries (para 5.06);

(e) the project-financed irrigation, roads, and potable watersupply systems and wells would be properly maintainedduring the life of the project (paras 5.06, 5.15 and 5.17);

(f) it would (a) maintain the interest rate charged by BCA onits subloans at 9% per annum for the first two years of theproject; and (b) raise, thereafter, the cost of such loans,either by an increase in such interest rate to 11% per annum,or by the addition thereto of a commission of 2% per annum(para 5.08);

(g) it would furnish to IDA, within nine months of credit sig-nature, or such longer period as IDA may agree, a program forthe reorganization and financial strengthening of the BCA andimplement such a program as agreed with the Association (theelements of such a program are given in Schedule A of Annex 3)(para 5.09);

(h) it would: (i) within one year from the date of signing of theCredit Agreement, appoint a project monitoring and evaluationexpert, acceptable to IDA, to the Evaluation and Control Unitof DARNDR and expand the staff of this Unit in consultationwith IDA; (ii) require the expert, with the assistance of Unitstaff, to prepare annual reports on the progress of the project,in accordance with terms of reference satisfactory to IDA; and(iii) within three months following the end of each projectyear, cause the Unit to furnish the annual reports to theGovernment and IDA (para 5.18);

(i) the milling capacity in the project area would be sufficientto process the incremental sugarcane production due to theproject and a yearly review of sugarcane processing capacityin the project area would be carried out by Government anddiscussed with IDA (para 6.03);

(j) it would establish, jointly with the sugar mill, a yearlyschedule for the cutting and collection of the sugarcaneand ODN would assist in supervising the effectiveness ofthese arrangements (para 6.03); and

- 25 -

(k) it would not reduce the official price of sugarcane

without prior consultation with IDA (para 6.04).

8.02 Conditions for credit effectiveness would be that:

(a) IDA had been informed by WFP that its ongoing "food for

work" program in Haiti, No. 2105, has been modified to

provide 200,000 man-days of unskilled labor for the first

year of the project (para 4.17); and

(b) the Director and Deputy Director of ODN had been employed

by the Government (para 5.02).

8.03 With the above assurances, the proposed project is suitable for an

IDA credit of US$10 million on standard IDA terms.

December 10, 1976

ANNEX 1Page 1

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

The Project Area

Introduction

1. The Northern Department, with an area of about 2,300 km and a

population estimated at 700,000 in 1971 (Table 1), is one of the most impor-

tant of the nine Departments into which the country is politically divided. 1/

The Department is subdivided into eight "arrondissements," which, in turn,

comprise a number of "communes." A further subdivision separates the communes

into "habitations," with the rural center of each commune being designated as

the "agglomeration" and the intervening rural areas subdivided into "sections

rurales."

2. The project area affects two arrondissements--that of Cap-Haitien

with an area of 500 km2, and Grande Riviere du Nord. All of the Cap-Haitien

arrondissement is included in the project, with particular emphasis on the

plain, representing about 75% of the area, while in Grande Riviere du Nord,

only the irrigation district of St. Raphael, with an area of 1,900 ha, is

involved.

3. The arrondissement of Cap-Haitien includes the departmental capital,

the city of Cap-Haitien, with a population estimated at about 46,000 in 1975

(Table 1), making it the second largest city after Port-au-Prince. In addi-

tion, the arrondissement has a rural population of some 145,000 persons, and

includes six communes: Cap-Haitien, Quartier Morin, Milot, Plaine du Nord,

Acul du Nord and Limonade. It comprises some 50,000 ha of productive soils,

including about 7,000 ha of sugarcane-producing lands as well as the 2,000-ha

Quartier Morin irrigation district built in the late 1950s and at present in

need of extensive rehabilitation.

4. The irrigation district of St. Raphael, with a rural population of

about 8,000 persons, is situated at the edge of the Central Plateau and

separated from the arrondissement of Cap-Haitien by the mountain front of theMassif du Nord. It was built in the early 1950s using the Bouyaha River as

a source of water. The irrigation system is at present only partially opera-

tive and in need of extensive rehabilitation. Agricultural production from

this part of the project area is sold in the Cap-Haitien and Port-au-Prince

1/ Legally, 13 departments have been established.

ANNEX 1Page 2

markets in spite of the difficult communications with the departmental capitalthrough the St. Raphael-Grande Riviere du Nord road and with Port-au-Princeby way of St. Michel de l'Atalaye.

Physiography and Soils

5. The arrondissement of Cap-Haitien occupies a large portion of theNorthern Plain. A small portion of the arrondissement, approximately 10 to15%, is covered by the foothills of the Massif du Nord and the isolated eleva-tions of the Morne du Cap, west of the city of Cap-Haitien. The irrigatedarea of St. Raphael, on the other hand, is constituted by an alluvial floodplain which extends, fan-like, as the Bouyaha River descends from the Massifinto the edge of the Central Plateau.

6. The project area comprises two different ecological zones with thearrondissement of Cap-Haitien corresponding to a sub-tropical humid forest inthe Holdridge classification and the St. Raphael irrigation district to thesub-tropical dry forest. The soils in the arrondissement are derived fromQuaternary alluviums and present well structured clays and clay loams thatare very suitable for crops. Soil texture is lighter in the vicinity of themain rivers and heavier in the poorly drained area of Plaine du Nord. Mostof the soils in this part of the project area have been classified II and IIIin a land capability survey, 1/ representing irrigable soils adequate for alarge variety of crops and requiring only moderate management and conservationpractices. In the irrigation district of St. Raphael, the soils are mainlyalluvial, corresponding to the flood plain of the Bouyaha River, but theoriginal materials are calcareous and siliceous rocks and clay schists of theMassif du Nord, resulting in deep, well drained and structured soils thatrespond well to irrigation. These soils, as in the case of the arrondisementof Cap-Haitien, have also been identified as Classes II and III in the landcapability survey.

Climate and Hydrology

7. Rainfall in the arrondissement of Cap-Haitien is usually abundantalthough unevenly distributed. Records are scarce and lack continuity butthey do indicate higher yearly precipitations in the western portion of theplain (1,988.7 mm at Plaine du Nord) than in the eastern portion (1,399.2 mmat Limonade). More recent records from the sugar mill in the region (Table 2)indicate however a gradual decrease in precipitation during the last 10-year period(2,451 mm in 1960 to 670 mm in 1975), which has caused severe reductions inyields of sugarcane and other crops. Rainy periods normally occur in the falland early winter and in May/June. Rainfall in the St. Raphael area is con-siderably lower with 855.8 mm recorded as the annual average. The period ofDecember to March is very dry and the main rainfalls occur in May and June.Average yearly temperatures in the project area range fran 26.1 0C in Cap-Haitien to 24.8 C in St. Raphael.

1/ Following the USDA Land Capability Classification.

ANNEX 1Page 3

8. From April to June, the predominating winds blow from the north-

east (trade winds), carrying warm.and humid air from the center-Atlantic

regions. The winter winds blow from the American continent (cold fronts)

bringing rain from the northwest. This is the most abundant precipitation in

the Northern Plain.

9. The arrondissement of Cap-Haitien comprises three hydrological

basins: those of the Riviere Salee, the Riviere Gallois or Haut-du-Cap,

and the Grande Riviere du Nord. The first two rivers drain the communes of

Acul du Nord, Plaine du Nord and Cap-Haitien, and obstruction and subse-

quent flooding in their lower portions has created a poorly drained area

affecting some 600 ha of productive land. The Haute du Cap River is only

10 km in length and originates within the arrondissement of Cap-Haitien.

One of its effluents is used at Grison Garde to irrigate some 50 ha.

10. The Grande Riviere du Nord, 42 km long, originates in the arrondisse-

ment of Vallieres, in the Northern Department and is the source for an irri-

gation system covering some 2,000 ha in the communes of Quartier Morin and

Milot. The St. Raphael irrigation district is in the basin of the Bouyaha

River which flows southward from the Massif du Nord.

Physical Infrastructure

11. The road network in the project area comprises about 105 km of

secondary and about 200 km of rural roads. While the main road connecting

Cap-Haitien with the capital city of Port-au-Prince is being reconstructed

under IDA Credits 478-HA and 556-HA, most of the secondary roads are in severe

need of rehabilitation. A serious lack of feeder roads further aggravates the

isolation of large areas of the arrondissement of Cap-Haitien and constitutes

a key constraint to the production and marketing of agricultural products.

12. Rural electrification is restricted to the departmental capital and

to most of the "agglomerations," with some of the plants being provided by

private groups, often religious communities.

13. Adequate supplies of drinking water are lacking in most of the rural

centers and those that do exist are in need of extensive protection and repair.

Provision of potable water constitutes one of the highest development prior-

ities for the population in the project area.

Institutions

14. A number of institutions already exist in the project area which

can serve as a basis for rural development. They are, in general, severely

understaffed and in most cases seriously limited by financial constraints,

but they constitute the basis on which any development effort must be

initiated, since they have already been involved in assisting the regional

farmers and have acquired experience and recognition, the importance of

which cannot be underestimated. Among these, the most important from the

ANNEX 1Page 4

point of view of the rural development project are the regional AgriculturalDistrict of the Department of Agriculture Natural Resources and RuralDevelopment (DARNDR); the two agricultural credit agencies, BCA and IDAI; andvarious non-governmental organizations, some of them religious while others,such as the Community Councils, represent groups of inhabitants of the areajoining to promote improvements in their localities.

15. DARNDR Agricultural District. This district is staffed by oneagronomist, nine extension agents, four irrigation agents, five home econo-mists, 12 forestry agents, and two office clerks. Of these, six positions areat headquarters in the city of Cap-Haitien; five in the arrondissement ofCap-Haitien; five in the irrigation district of St. Raphael and the remaining17 scattered throughout the rest of the Northern Department. This agency,which should play an essential role in the rural development project, ischronically affected by a lack of programs and resources which allows foronly a very limited activity. Extension agents are limited in training.Except for supervising some coffee plantations and assisting the Bureauof Agricultural Credit (BCA) in transmittal of requests for agriculturalcredit, they carry out, essentially, office work.

16. Bureau of Agricultural Credit (BCA). BCA has an office in Cap-Haitien but its activities are very limited, being concerned mainly withfinancing of coffee and cacao plantations, groups of small farmers providingmutual guarantee (Agricultural Credit Societies - SACs) and, to some extent,financing sugarcane plantations. A more detailed description of BCA appearsin Annex 3.

17. Institute or Agricultural and Industrial Development (IDAI). IDAIalso has an office in Cap-Haitien and has been operating in the NorthernDepartment sinde 1969. Its agricultural financing is mainly directed tomedium-size farmers and to financing of improved maize, beans and rice(Annex 3).

18. Non-governmental Organizations. These include mainly the RuralCenter for Development of Milot (CRUDEM), managed by a Canadian religiouscongregation which has had considerable success in some rural developmentefforts in the arrondissement of Cap-Haitien, particularly in the commune ofMilot. This organization has improved 112 km of roads; installed a smallelectric plant; and constructed and operated seven schools serving 1,650students, a hospital, a mobile health unit, and a semi-industrial farm.Other religious groups located outside the project area but having a generalimpact in the region include a Mennonite congregation in Grande Riviere duNord, which has installed a plant for the manufacture of fruit preserves, andanother religious group in Limbe, which, besides operating a hospital, hasinstalled a hydroelectric plant to provide electricity to Limbe.

19. Community Councils. There are groups of rural inhabitants whoform local councils to improve conditions in their own areas, contributingto road and irrigation canal maintenance and providing in many cases a head-quarters for teaching adults to read and write and for carrying out home

ANNEX 1Page 5

economics activities. The creation of community councils has been promotedby the Rural Animation Service of DARNDR and, in many instances, by CRUDEM

and other non-governmental organizations. While sorely lacking financialresources, these councils provide important local motivation as evidenced in

St. Raphael where an impressive new church building was constructed through

Community Council efforts.

Size of Land Holdings

20. Information on land holdings in Haiti, specifically in the project

area, is partial, scattered in coverage and limited in detail. The lackof a proper cadaster and the complexity of the system for registration of land

transactions makes any attempt, short of a physical survey, to determine size

of land holdings and actual land property a time consuming and only partially

reliable exercise.

21. In an effort to determine the land distribution pattern in the

project area, the Department of Agriculture, in 1975, conducted a survey ofagricultural exploitation in the arrondissement of Cap-Haitien. 1/ Subse-

quently, at the request of the Bank, additional information was obtained onland holdings larger than 10 carreaux 2/ (12.9 ha), established as a limitfor small farmers in the context of the rural development project. Due tothe difficult access to many of the rural sections, however, this second sur-vey was limited to land holders inhabiting the agglomeration for each commune.

22. In view of the difficulty of obtaining more reliable information onthe present land tenure situation, the results of the first survey, coveringabout 70% of the project area, were extrapolated to cover 100% of each commune

and the results are presented in Table 3 for the arrondissement of Cap-Haitien

and in Table 4 for the irrigated district of St. Raphael.

23. Results of the survey conducted in the arrondissement of Cap-Haitienshow that 97.6% of land owners hold farms ranging from less than 0.5 cx

(0.65 ha) to 10 cx (12.9 ha) while only 2.4% have farms ranging from more than10 cx to more than 100 cx (129 ha). The large number of small farms isreflected in the fact that such holdings occupy 68.3% of the land comparedto the 31.7% occupied by farms larger than 10 cx. It is probable, however,that the number of smaller farmers and the land they use have been under-estimated since their farms are too small to be either noticed or remem-bered. This is particularly true in the case of the St. Raphael irrigationdistrict (Table 4) where only 558 ha out of some 1,900 ha were covered in thesurvey, representing owners living in the urban center of St. Raphael. While

1/ St. Clair and Dauphin, "Resultats de l'Enquete Sur les Exploitations

Agricoles de l'Arrondissement du Cap-Haitien," DARNDR (March 1975).

2/ A carreaux (cx) is a Haitien measurement equivalent to 1.29 ha.

ANNEX 1Page 6

it is true that some large farms are known to account for the balance of theirrigated area, a great number of farmers, mainly in the less than 0.5 cx andthe 1- to 5-cx categories, reside in the rural sections and are not includedin the survey.

24. A trend has developed recently to consolidate small holdings intolarger farms. This is brought on by the higher prices of agriculturalproducts 1/ and probably the increased demand resulting from improvement ofthe Cap-Haitien-Port-au-Prince highway which facilitates access to the marketof the capital and makes agriculture more attractive to entrepreneurs. Theresult of this trend may be a greater percentage of land in farms larger than10 cx, particularly in the 50- to 100-cx and larger than 100-cx groups, andthe corresponding reduction in percentage of area in farms smaller than 10 cx.While the trend towards consolidation so far appears to be within reasonablelimits, improvements in infrastructure resulting from the project and therenewed interest in specific crops 2/ may speed it up unless the Governmenttakes steps to prevent indiscriminate transfers of land from the smallholdersto the large farmers, particularly in the irrigated areas to be rehabilitatedand expanded under the project.

25. Improvements resulting from the rural development project, as wellas from the construction of the new highways, may also cause land rents torise for the small farm tenants, which could counterbalance project effortsto increase farm revenues. While the proportion of tenants in the arrondisse-ment of Cap-Haitien is estimated at only 8.5% of landholders (Table 5), itreaches 27.4% in the irrigation district of St. Raphael and may possibly behigher. These figures, regardless of their limited reliability, indicate thatofficial measures are needed to prevent undue increases in land rentals, atleast over the period necessary for the project to achieve its goals of in-creased production and improved marketing.

Land Use

26. About 20% of the cultivated area of the arrondissement of Cap-Haitienis used for sugarcane destined either for delivery to the large sugar mill forprocessing into export sugar or to one of the 98 distilleries producing"clairin," a local rum of high alcohol content. The sugar mill has been pro-ducing an average of 8,000 to 11,000 tons of sugar per year and is expected toincrease its production capacity after 1976 by 50% with installation of addi-tional equipment. Clairin distilleries are located in five of the communes(Quartier Morin, 46; Milot, 33; Plaine du Nord, 7; Limonade, 6; and Cap-Haitien,6). They are thought to be the most important producers of clairin in thecountry. Sugarcane production in St. Raphael is of minor magnitude being

1/ Price of sugarcane in recent years increased from US$5.10/ton to US$9.00/ton and food crops are estimated to have increased by 30% in price in thelast two years.

2/ Plans have been announced to develop 300 ha of Burley tobacco in theNorthern Plain.

ANNEX 1Page 7

restricted to on-farm consumption and limited production of syrup. Totalproduction of clairin in the project area is estimated at some 2,130,000gallons.

27. Other important crops in the area are banana (plantains), manioc,corn, yams, rice, malanga and, in the upper portions of the Plaine du Nord,coffee, and cacao.

28. In addition to the major agricultural products, there are threeessential oil extraction mills producing lime and sour orange oils for perfumeand liquor production. One of these plants is known to produce some 6,000liters of oil per year. Fruit is collected from scattered trees and there areno significant citrus plantations. In the irrigation district of St. Raphael,vegetable production has become profitable, especially onions, tomatoes andcarrots. Tobacco is also planted in both the arrondissements of Cap-Haitienand St. Raphael, but it is currently mainly for home consumption and localmarket, although production for industrial processing is increasing and isexpected to expand in the near future.

29. In the higher portions of the arrondissement of Cap-Haitien, in thefoothills of the Massif du Nord, there are five coffee processing plants threeof which produced 39,960 kg of washed coffee in 1973/74. USAID is presentlyassisting Haiti with a comprehensive program to improve coffee plantations andincrease production throughout the country.

30. Estimates by the DARNDR placed the sugarcane area in 1975 at 5,676ha, the food crop area at 19,221 ha and other crop areas at 5,289 ha (Table 6).Fallow lands, estimated at 20% in the September-December period and 31% in theApril-June period, have not been included but there is little doubt that theseoccur only in larger holdings since small farmers cannot afford to let landlie idle.

31. In comparison to crop production, livestock production is of limitedimportance. Very rough estimates indicate that there are about 20,000 cattle,50,000 pigs, 2,000 sheep, some 3,000 horses/donkeys and 200,000 to 400,000chickens. With the exception of about 10 commercial dairy farms involved inlow cost dairy production with herds numbering between 30 and 200 crossbredcows (local breed "creole" x Brown Swiss, Jersey or Holstein Friesian) andproducing up to 400 gallons of milk per day, livestock production is carriedout on a smallholder basis, with local breeds grazing on fallow and receivingcrop residues mainly from sugarcane cultivation. Smallholder milk productionwith local breeds, producing up to 600 liters of milk per cow per year, iscommon in the irrigation district of Quartier Morin, geared primarily for themarket in Cap-Haitien. The use of draft animals is known only in the irriga-tion district of St. Raphael where about 200 pairs of oxen are used. Apart frompigs, which often show signs of Rachitis, livestock is generally in good con-dition and animal health conditions are fairly satisfactory except for sporadicBlackleg outbreaks, widespread internal parasites in irrigation districts and

ANNEX 1Page 8

seasonally inundated areas, and frequent Hog Cholera and New Castle Disease(Annex 7). Nevertheless, livestock productivity is relatively low, sinceanimal health services are inadequate and feeding of concentrate and mineralsare almost unknown. Thus, calving rates are only about 60% and cattle herdofftake probably does not exceed 10% per year, with carcass weights of notmore than 125 to 140 kg. Cattle and goats are usually sold for in-town con-sumption and funeral ceremonies, but pigs are slaughtered by the smallholderproducers who consume up to two to three 30- to 50-kg pigs per year perfamily.

Family Production Units and Farm Income

32. The predominant small size of land holdings in all of Haiti, as wellas in the project area, restricts the use of hired farm labor to a limitednumber of commercial plantations. Larger sugarcane, coffee, rice and sisalfarmers in particular employ help, but mainly in the planting and harvestingseasons. Therefore, the family production unit constitutes the core ofHaitian agriculture, with a large percentage of farmers and all those at sub-sistence level depending on the efforts of each family member to achieve evena low level of livelihood.

33. The average family unit in the project area has been estimated atfive persons, of which three are adults. In spite of the already high rateof population growth, high infant mortality in the country has prevented thefamily unit from being larger. The small size of land holdings may have alsoacted as a deterrent, at least in the lover income groups, forcing familymembers to migrate, thus increasing the urban population. The primitive levelof farmiqg methods, based mainly on hoe and machete, requires the participationof the whole family in agricultural production, with women and smaller childrentaking charge of smaller chores or participating in critical phases such asharvest or serving as substitutes for absent members of the family who areworking as laborers in the region's sugarcane fields or in the rice fieldsof the Artibonite.

34. Income distribution data in Haiti are available only for theemployed population. The latest updating was in 1970 (Table 7), which indi-cates that approximately 92% of income earners in rural areas and 58% in urbanareas earned less than US$240 per year. In terms of average annual labor in-come per head of population, that is, including those who were not employed,92% of the population in rural areas made less than US$87 a year and 58% inurban areas made less than US$57. It would appear that in the rural areassome individuals at the upper limit of the US$87 income class were above thelevel of absolute poverty, at least in terms of nutritional requirements,since data on annual per capita consumption of essential goods and servicesin 1970 (Table 8) show that about US$19 on average were spent by the ruralpopulation on basic consumption items and about US$43 on food.

35. A study to determine the composition of the basket of food requiredto satisfy minimum nutritional needs based only on food items for which unitprices were available indicates that a basket containing 2,390 calories perday, the standard calorie requirement per day per person in Latin America,would have been valued at US$75 per year in 1970.

ANNEX 1Page 9

36. The analysis of this information leads to the conclusion that in1970 about 92% of the rural population and at least 58% of the urban popula-tion in Haiti, representing 85% of the entire population of the country, werebelow the level of absolute poverty. There is no indication that this situa-tion is different in the project area or has improved.

July 27, 1976

ANNEX 1Table 1

bAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

The Project Area

Population in the Northern Departmentand the Arrondissement of Cap-Haitien

(1965 and 1971)

(Thousand inhabitants)Ponulation Number

-------- 196S----------- ----------1971 ----- -o ruralTotal Urbar. Rural Total Urban Rural homes

(19=1jTotal Haiti 4334t6 57 ,2 3757,4 4314,6 879,7 3434,9

Total DeartmentTu ot 676,4 117,0 559,4 699.9 117,9 532,o

Arr. Cap Haitien 150,2 45,5 104,7 199,8 54,7 145,1Arr. Trou du Nord 74,6 18,7 55,9 69,3 14,4 54,9Arr. Grande Riviere N. 113,3 14,5 98,8 100,4 16,0 54,44rr. Vallieres 48,9 3,0 45,9 47,9 3,5 44 ,4Arr. Fort Liberte 105,0 19,1 85,9 68,9 12,9 56,0Arr. Plaisance 70,6 4,6 66,0 96,8 4,1 92,7Arr. Limbe 45,1 5,9 39,2 36,5 6,5 30,0irr. Borgne 68,7 5,7 63,o 80,3 5,8 74,5

Total ArrondissementCap Haitien 150,2 45.5 104,7 199,8 54,7 145,1 24,2

I. aeom. Cap Haitien 50,5 38,1 12,4 60,8 46,4 14,4 2,4

1. Bande du Nord (4,7)2. Haut du Cap (5,5)3. Petite Anse (2,2)

II. com. Quartier Mbrin 12,8 0,9 11,9 17,2 0,6 16,6 2,8

!4. Basse Plaine (6,2)5. Morne Pele (5,7)

III. comm. Milet 16,6 1,8 14,8 22,6 2,3 20,3 3,4

6. Bonnet a 1'Eveque (3,5)

7. Genipailler (5,1)8. Perches du Bonnet (6,2)

IV. conm. Plaine duNord 20,4 0,9 19,5 28,4 1,4 27,0 4,5

9. Basse Plaine (4,7)10. Grand Boucan (6,1)11. Bassin Diamant (1,0)12. Mbrne Rouge (7,7)

V. com. Acul du Nord 30,1 1,9 28,2 44,2 2,2 42,0 7,0

13. Baa de l'Aeul (2,6)14. Camp Louiso (5,6)15. Coupe a David (3,1)16. Grande Ravine (2,4)17. Mornet (11,1)18. Souffriere (3,4)

VI. comn. Limonade 19,8 1,9 17,9 26,6 1,8 24,8 4,1

19. Bas de l'Anse (8,9)20. Basse Plaine (4,4)21. Roucu (4.6)

Source: National Statistice Institute (IHS)National Service for Eradication of Malaria (SNEM)

July 1976

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

The Project Area

Rainfall at Caldos Sugar Mill (1960-1976)(mm)

1960 1961 1962 1963 196ù 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976

January 217.3 38.1 72.5 81.7 255.4 130.0 120.7 100.3 135.6 135.6 284.5 25.5 72.0 90.6 -0.0 o.o 10.5

February 181.1 146.8 26.0 118.9 128.2 24.2 30.7 105.0 39.9 79.9 116.1 44.1 9.3 76.6 118.4 0.0 9.3

March 557.3 130.0 1h8.6 lO0.3 23.2 80.8 89.2 49.2 16.7 65.0 98.7 61.5 198.5 79.0 51.1 h6.h 4.6

April 248.9 274.9 222.9 96.6 248.9 33.4 174.6 151-. 11.2 154.2 0.0 487.6 153.3 76.6 h6.4 0.0 116.1

May 165.3 263.8 213.6 248.0 173.7 484.8 236.8 85.5 51.1 121.9 68.5 104.5 88.2 98.7 77.8 68.5 0.0

June 234.1 43.7 134.7 89.2 192.3 80.8 116.1 157.9 213.6 108.0 81.3 45.3 106.8 55.7 38.3 55.7 30.2

July 72.5 26.9 48.3 5h.8 117.0 80.8 128.2 37.2 37.2 80.1 79.0 0.0 63.9 73.1 24.4 44.1 7.0

August 92.9 48.3 h2.7 32.5 92.9 96.6 122.6 102.2 274.9 16.3 117.3 65.0 27.9 37.2 16.3 0.0 n.a.

September 154.2 115.2 65.9 100.3 286.1 218.3 102.2 111.5 170.0 9.3 147.5 1h4.0 26.7 58.1 18.6 97.5 n.a.

October 186.7 305.6 130.0 202.5 146.8 55.7 159.8 269.4 116.1 109.1 39.5 138.2 152.1 72.0 124.2 25.5 n.a.

November 118.0 133.8 150.5 330.7 52.9 182.0 404.o 278.6 401.2 275.2 153.3 68.5 0.0 110.3 94.0 217.1 n.a.

December 222.9 1l 8 . 6 1L7.7 351.1 39.0 221.1 366.9 37.2 354.7 261.2 4.6 13.9 20.9 102.2 106.8 114.9 n.a.

Total 2451.1 1675.6 1403.4 1806.5 1741.7 1688.6 2051.7 1485.2 1862.2 1415.7 1190.0 1198.2 919.5 930.0 716.3 669.9 n.a.

July 1976

RURAL DEVELIOPHENT PROJECT là THE1 98ORT011N DEPAR13IEN1T

The Proi..t Ares

Land Tex-r in th. Arroxd8..eelft of CeP-Haiti6

For si.. CateNorie. m~~.rIilot A.lx, d. Nore Mx Plain. du Nord Liexoda., rodise(Cerreau,r) Frs . C. . Fre 7 C. 7 For, 7. Cx. 7 Form Cx. 7. Forme 7 Cx.. %7 For- 7 Cx. . Fore x. 7

Smeller thar 0.5 85 7.8 30.2 1.0 224 16.9 53.3 1.6 779 20.2 190.5 3.1 106 19.6 26.7 1.8 574 23.7 191.0 3.5 322 17.7 117.8 2.4 2,090 18.9 609.5 2.5

0.5 t. 1.0 338 31.2 242.7 7.4 443 33.4 310.0 9.4 1,225 31.7 1,548.5 24.6 245 45.3 22O~4 13.1 1.304 53.8 1,360.4 25.3 892 48.9 934.8 19.1 4.447 40.2 4,616.8 18.8

1.0 tx 5.0 519 47.9 979.2 29.9 562 42.3 1.121.0 34.2 1.590 41.1 2,402.9 38.2 135 24.9 416.8 28.5 f76 15.5 1,302.8 24.2 449 24.6 1.368.1 28.0 3,631 32.8 7,590.8 30.9

5.0 to 10.0 72 6.7 495.6 15.1 52 3.9 335.8 10.2 230 5.9 1,344.1 21.3 31 5.7 200.1 13.7 132 5.4 848.9 15.9 119 6.5 735.8 15.0 636 5.7 3.960.3 16.1

Oub-total 1,1 93.6 1,4. 53.4 1,8 96.5 1.820.1 5.5.4 3,2 98.9 5.486.0 87.2 517' 95.5 864.0 59.1 2,8 98.4 3.703.1 68.9 1.8 97.7 3.156.5 6,4.5 10.804 97.6 16777.4 68.3

10.0 te 20.0 34 3.1 448.1 13.7 31 2.3 425.8 13.0 22 .6 300.8 .4.8 16 3.0 205.8 14.1 26 1.1 561.2 10.4 22 1.2 298.2 6.1 151 1.4 2,239.9 9.1

20.0 to 50.0 32 3.0 907.8 77.7 13 1.0 507.2 15.4 16 .4 406.3 6.4 6 1.1 176.6 12.1 8 .3 266.2 4.9 il .6 362.5 7.4 86 0.8 2,626.6 10.7

50.0 to 100.0 3 0.3 170.6 5.2 - . - - 2 .1 100.0 1.6 I .2 83.0 5.7 I .1 245.5 4.6 3 .2 344.5 7.0 10 0.1 943.6 3.8

Lerger than 100.0 - . - . 3 .2 531.5 16.2 - - - - 1 .2 130.0 9.0 3 .1 601.0 11.2 5 .3 732.0 15.0 12 0.1 1,994.5 8.1

Sxh-tetal 69 6.4 1.526.5 46.6 47 3.5 1.464.5 44.6 40 1.1 807.1 12.8 24 4.5 595.4 40.0 38 1.6 1.673.9 31.1 41 2.3 1.737.2 35.5 259 -2.4 7,80±.6 -31.7

TOTAL9 1j08 100.0 3,7. 100.0 1.328 100.0 3.284.6 M ,6 100.0 6,9. 100.0 5 41 100.0 1.459.4 100.0 2,424 100.0 5.377.0 100.0 1,823 100.0 4.893.7 100.0 11.063 100.0 24.582.0 100.0

1/ Baeed on a exry xo-exi.g 68% et th. Cx,.e ef Cep Heltie..2l Ba..d on a s,.rxy xevering 70% f thOe Calmn of 011ot.3/1 B.sed ex a survey of the Ceamex e Axel du Nord (95% of Sextixe M-ret; 70% x Sectieon Grand R-vIne;

90% of Soetiex Coupe . Dh-id; 60% xf Sertie. B.. de l'Axel; 50% et Sertie., CsP Loxise, ed 60% ftSection Seeffriere).

4/ Se.ed m a esurvey x0veri.g 60% xf th. Cx.r.e f Querti«r Norix.B/ aeed em a eervy xoverimg 71% et the Cefe et Pleine de Nord.B/ R.ed xx. a rvey xemeing 68% ofth.6 Comm ef Limoide.

May 1976

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

The Project Area

Land Tenure

Farm Size Categories Arrondissement Cap Haitien St. Raphael Irrig. Dist. Total Project Area

(Carreaux) Farms 7% Cx Farms % Cx Farms % Cx

Smaller than 0.5 2,090 10.9 609.5 2.5 125 22.4 31.3 4.9 2,215 19.1 640.8 2.5

0.5 to 1.0 4,447 40.2 4,616.8 18.8 168 30.1 97.1 15.2 4,6i5 39.7 4,713.9 18.7

1.0 to 5.0 3,631 32.8 7,590.8 30.9 249 44.6 376.5 58.8 3,880 33.4 7,967.3 31.6

5.0 to 10.0 636 5.7 3,960.3 16.1 14 2.5 89.3 13.9 650 5.6 4,049.6 16.1

Sub-total 10,804 97.6 16,777.4 68.3 556 99.6 594.2 92.8 11,360 97.8 17,371.6 68.9

10.0 to 20.0 151 1.h 2,239.9 9.1 - - - - 151 1.3 2,239.9 8.9

20.0 to 50.0 86 0.8 2,626.6 10.7 2 0.4 46.0 7.2 88 .7 2,672.6 10.6

50.0 to 100.0 10 0.1 943.6 3.8 - - - - 10 .1 943.6 3.7

Larger than 100.0 12 0.1 1,994.5 8.1 - - - - 12 .1 1,994.5 7.9

Sub-total 259 2.4 7e804.6 31.7 2 0.4 46.o 7.2 261 2.2 7,850.6 31.1

TOTAL 11,063 100.0 24,582.0 100.0 558 loo.o 64o.2 100.0 il 621 100.0 jà& 22.2 100.0

1/ Includes only owners inhabiting the "agglomeration." The balance 1,342 ha of the irrigation district comprise

small farms with owners living in the rural section and larger farms with owners living in Cap-Haitien or

Port-au-Prince.

Source: DARNDR- Programing Unit

July 1976

ANNEX 1Table 5

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

The Project Area

Land Tenure Modality

(M)

Commune Owner Sharecropper Tenant Manager

Cap-Haitien 63.2 0.7 11.2 24.92/

Milot3 64.7 0.4 3.8 31.0

Acul du Nord7 88.6 5.4 3.2 2.9

Quartier Morin 90.8 0.9 8.o

Plaitie du Nord 67.7 17.9 9.1 5.31/

Limonade 76.9 2.0 16.3 4.9

Arrondissement of Cap-Haitien 75.1 6.o 8.5 lo.4

St. Riaphael Irrig. District 60.8 5.7 27.4 6.1

Total Project Area 74.4 5.9 9.8 10.7

1/ Based on 68% coverage.2/ Based on 45% coverage.3/ Based on 71% coverage.E/ Based on 60% coverage.§/ Based on landholders living in the urban center of St. Raphael.

aource: DARNDR- Programming Unit

July 1976

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

The Project Area

Land Use

Sgarcane Food Crops Others Total_x Ha 7f Cx ha __ Cx ha %_ Cx ha %

Arrondissement ofCap Haitien 4,200 5,418 17.9 -12,200 15,738 52.1 3,700 4,773 15.8 20,100 25,929 85.9

Irrigation Districtof St. Raphasi 200 258 .9 2,700 3,483 11.6 400 516 1.7 3,300 4,257 14.1

Total Project Area 4 5,676 18.8 14 900 19,221 63.7 4,100 5,289 17.5 23,1400 3-0186 100.0

Source: DARNDR

July 19, 1976

El

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTHDT

The Pro] *ct Arsa

Income Distribution Pattern of Ewloyed Population inUrban and Rural Areas

(1970)

OeUNTRY TOTAL RURAL AÀ1 URAN AES (inclu%ins Port-au-prince PORT-AU-PRâLCEAverage for

the Class Eployed LaboT Income spoloved Labor Income bWloyed Labor Incoa Pjployed Labor Ic

Incoeo Class In In In In In MiIlion In million In million(Courdes ver annum) Courdes US$ Thousand L Courdes .L Thousand L Courdes j Thousand Courd Thousand G ourde

Lowest Income

14s5 thbn 1,200 600 125 l.e46.t 86.9 748.056 55.8 1.121.5 92.0 6Tæ9 72.1 125 2 s8, o 75.1 18.4 62.5 ss.8 14.8

Médium Incom 6 000 1.200 183.9 12.8 550.501 39.4 96.7 7.9 250.9 26.8 87.o 40,4 279.4 68.5 50.5 43.6 169.0 65,8

1,00 - 3,600 2,400 480 156.8 10.9 376,272 28.0 90.8 7.4 218.0 23-3 65.9 30.6 158.3 38.8 36.5 31.5 87.6 34.63,601 - 6,ooo 4,800 960 19.4 1.3 92,952 6.9 4.5 0.4 21.7 2.3 14.8 6.9 71.2 17.5 9.5 8.2 45.7 18.16,001 8,400 7,200 1,440 5.4 0.4 39,273 2.9 0.9 0.1 6.8 0.7 4.5 2.1 35.5 8.0 3.0 2.6 21.7 8.68,401 10,800 9,600 1,920 2.3 0.2 21,804 1.6 0.5 0.0 4.4 0.5 1.8 0.8 17.4 4.2 1.5 1.3 14.0 5.5

hizb r Income 18.000 3.600 _U9 o.3 635oos 4.8 0.5 0.1 9.9 Ll 3.4 L.5 Ua 15.1 2.9 2.5 46 18.4

10,801 - 13,200 12,000 2,400 1.6 0.1 19,092 1.4 0.1 0.1 1.5 0.2 1.4 0.7 17.5 4.3 1.3 1.1 15.5 6.113,201 - i5,600 14,400 2,880 0.8 0.2 11,688 0.9 0.2 0.1 3.4 0.4 o.6 0.3 8.2 2.0 0.5 0.4 6.9 2.715,801 - 15,000 16,800 3,360 0.2 0.2 4,164 0.3 - 0.1 - - 0.2 0.1 4.1 1.0 0.2 0.2 3-7 1.518,001 - 20,400 19 200 3,840 o.6 0.2 11,556 0.9 0.1 0.1 2.0 0.2 0.5 0.2 9.6 2.3 0.4 0.4 8.6 3.420,401 - 22,800 21,600 4,320 0.2 0.2 4,980 0.4 0.1 0.1 2.6 0.3 0.1 0.0 2.4 o.6 0.1 0.0 1.3 0.522,801 snd more 24,000 4,800 0.5 0.2 11,520 0.9 - - - - 0.5 0.2 11.5 2.8 0.4 0.4 10.3 4.1

Total! 1.434.6 100.0 1.341.403 100.0 1.218.9 100.0 933.4 100.0 215.7 100.0 408.0 100.0 115.7 100.0 là?.8 100.0

Average annual income per eloy din Courdes 98 765 ,892in $ 153 -378 437

Wmber of inhabitants 2271.0 .59 911.4 sL7% of 1loysd per population (%> 33.6 36.3 23.7 21.0Labor income per oue inhabitant

in Courdes 14in $ -R 55 li

latio bltveun average inco. in thelovest and the hiSheat group 1:28 1:33 1:27

Source: IBRD Economic Mission and IH (laquete Socio-Economique, April 1970).

July 1976

HAITI

RURAL DEVELOPMENT. PROJECT IN THE NORTHERN DEPARTMENT

The Project Area

Annual Per Capita Consumnption of Essential Goods and Services(1970)

Total Consumption (in thousand Gourdes) Per Capita Consumption (in Gourdes)Of which: In urban consumption Of which: Of which:

Country Rural Urban Fort au Other Country Rural Urban Port au OtherGoods aqd Services Total Areas Areas Prince Cities Total Areas Areas Prince Cities

A. Basic consumption items: 1,513,481 1,031,885 481,603 335,885 145,723 354 308 529 611 402

Food (including coffee) 996,777-- 718,090 278,700 192,291 86,409 233 214 306 350 239Rent and fuel 268,594 146,658 121,935 90,300 31,633 63 44 134 164 87Medical care 176,401 121,999 54,401 35,707 18,693 41 37 60 65 51Clothing 71,714 45,138 26,567 17,587 8,988 17 13 29 32 25

B. Regular consunption items: 395,366 252,636 143,727 94,765 48,958 93 74 157 172 136

Lighting 34,134 20,970 13,164 9,195 3,969 8 6 14 17 ilToiletry and detergents 83,177 52,643 30,533 19,289 11,244 19 16 33 35 31Education 44,642 15,209 29,433 23,026 6,406 10 4 32 42 18Transport 55,819 31,331 25,487 17,309 8,178 13 9 28 31 23Recreation and culture 55,238 40,069 15,168 10,547 4,620 13 12 17 19 13Other 122,356 92,414 29,942 15,399 14,541 29 27 33 28 40

C. Occasional consumption items: 75,987 52,632 23,352 16,694 9,656 18 15 24 25 27

Furniture 26,104 21,074 5,029 2,529 2,499 6 6 5 5 7Luxury items 12,386 4,817 7,568 4,898 2,670 3 1 8 9 7Home repair 20,131 1l4,426 5,704 4,008 1,696 5 4 6 7 5Other 17,366 12,315 5,051 5,259 2,791 4 4 5 4 8

Consumption of necessities --

(A+B) 1 908 847 1 284 521 625 330 430,650 194,681 447 382 686 783 538Total consumption (A+B+C) 1984834 7 53 447 344 2. __ W 7iT uw _Z5

Population

Number of families 908,160 721,906 186,254 111,437 74,817Number of inhabitants 4h271 053 3 359 634 911 419 549 674 361 745Persons per family 4.70 t465 M9. i t.93 tbr

Source: IBRD Economic Mission & IHS (Enquete Socio-Economique, April 1970)July 1976

ANNEX 2Page 1

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Irrigation Rehabilitation and Expansion

Water Resources and Water Quality

1. The average annual rainfall in the Northern Plain is estimated tovary between 1,200 and 1,900 mm but a gradual decline has been noted over thepast 10 years. Distribution is very uneven, and serious flooding occurs inlow parts of the plain, made worse by insufficient natural drainage.

2. The hydrogeology of the plains has not been studied in detail, butthe potential for groundwater development is considered to be very promisingsince the water table is only 3 to 5 m below the surface, near the foothillsof the Northern Range mountains, and about 1 m below the surface at the north-ern limit of the Quartier Morin Irrigation District.

3. Surface water and groundwater are reported to be of good qualityand only some shallow wells close to the coast are known to have slightlybrackish water.

Irrigation Water Demand

4. Water requirements were determined separately for Quartier Morin andfor St. Raphael based on rainfall data for a period of 16.5 years in QuartierMorin (1960-76) and taking account the respective cropping patterns. Sugarcanedominates the cropping pattern in Quartier Morin (80%) and requires watermainly in its vegetative growth period, with only limited amounts neededduring the period of maturity. The irregularity of rainfall in the area,however, makes irrigation essential to ensure a normal growth process and asufficiently long harvesting period to achieve production goals. The rela-tively high clay content in the soils of the area, making for higher moistureretention capacities, results in relatively modest water requirements. InSt. Raphael, cropping patterns based on high water-consuming crops and con-siderable double cropping, combined with lighter textured soils and lowerwater retention capacities, result in considerably higher water requirements.The monthly irrigation water requirements are shown in Table 1.

5. Information on rainfall is limited and data on evaporation, evap-transpiration and percolation rates, used for determining demand for irriga-tion in the project area, are not available. Water requirements obtainedby using the Blaney-Criddle method for the same crops under similar soiland climatic conditions in the same general region were therefore used forcomparison purposes. Effective rainfall in the project area was estimatedto vary from 85% in the dry months to 45% in the wet months for the

ANNEX 2Page 2

St. Raphael area, and from 80% to 20% in Quartier Morin. Field irrigation

efficiency was estimated to range between 50% in Quartier Morin to 60% in

St. Raphael, with a system efficiency of about 10% in both irrigation

district.

Water Rights

4. The Irrigation and River Control Service (SICR) of the Department

of Agriculture, Natural Resources and Rural Development (DARNDR) is the only

Government agency authorized to allocate water for irrigation purposes. Since

the two irrigation districts in the project are already in operation, there isno problem with the use of the river water diverted for irrigation purposes.Groundwater irrigation development would also be controlled by SICR.

Existing Irrigation Facilities

7. Both the St. Raphael and the Quartier Morin irrigation systems havebeen desi1ned for high volume of water. The Quartier Morin main canal could

carry 4 m /second and the St. Raphael main canal, 2 m /second. The under-utilization of both systems, and especially the Quartier Morin system, has ledto very high sedimentation in the canals which would be reduced under the

project through appropriate measures prepared by consultants. The design of

existing systems would also allow a shift from the proposed cropping pattern,

with its main emphasis on sugarcane for Quartier Morin, to crops with higher

water requirements, if updated hydrological records would indicate this to be

feasible.

8. Quartier Morin Irrigation System. This system was built in the late

1950s by div5rtirg water from the Grande Rivere du Nord, with a watershed of

about 700 km and an average annual discharge of about 250 million m . The

system was originally intended to irrigate 4,000 ha of land on the west bank

of the Grande Riviere du Nord. As a result of studies carried out in 1960,

however, the area was reduced to 2,000 ha because of the limited water supply.

In any case, the system was never completed and it now 3 serves only 1,200 ha.

The average mon5 hly flow at the diversion dam is 7.8 m /sec, varying between

0.23 and 62.0 m /sec according to data gathered between 1922 and 1939. This

allows irrigation of the district under the cropping pattern assumed for the

farm models elaborated in Annex 19, without facing any irrigation water

deficits.

9. St. Raphael Irrigation System. This system is located about 35 km

south of the Quartier Morin District, near the southern limits of the North-

ern Department. It was built in the early 1950s and cammands 1,900 ha of

land in the flood plain of the Bouyaha River. Th s river, a tributary of the

Artibonite River with a watershed of about 160 km upstream of the irrigationsystem, is channeled 5hrough a diversion dam into a main canal that has a

capacity of about 2 m /sec. The average annual volume of water at the intake

of the system is about 110 million m . The average monthly flow of the

ANNEX 2Page 3

Bouyaha River varies between 0.2i and 18 m /sec according to 1923-39 data,with an overall average of 3.4 m /sec. This allows irrigation of the districtunder the assumed cropping pattern. Based on historical flow records, thereis an 85% probability of satisfying the monthly irrigation water requirementsduring the main growing seasons.

10. Groundwater Irrigation. There is no detailed information availableon the number, depth and yields of existing irrigation wells in the projectarea, but it is known that well irrigation development has been successfullycarried out by private drilling companies. A number of deep wells north ofQuartier Morin (about 30 to 35 m deep) penetrate a slightly artesian aquiferand, when equipped with pumps, can yield over 100 liters/sec.

Proposed Works

11. Quartier Morin Irrigation District. Under the project, all canalsand drains would be cleaned and repaired, siphons and distribution structureswould be rehabilitated and the dikes along the Grande Riviere du Nord would berepaired. The canal and drainage system of the district would be extended tocover an additional 800 ha. On-farm development would be carried out on about2,000 ha and would include land leveling and construction of gates, farmditches and drains.

12. St. Raphael Irrigation District. The project would rehabilitatethe canal and drainage systems as well as the distribution structures. On-farm development, including land leveling and construction of gates, farmditches and drains, would be carried out in the 1,900 ha of the district.

13. Groundwater Irrigation. The groundwater potential of the lowerplain in the Northern Department is considered to be extensive and there are,at present, only a few deep wells exploiting the aquifers. The proposedproject would be the first stage of a groundwater development program toprovide well irrigation in the region. The scope of the project was deter-mined on the basis of the need for irrigation, the existing knowledge aboutgroundwater resources, and the capacity of the project organization. Theproposed number of wells is not expected to create any danger of over-exploitation of the acquifer. However, if the groundwater development wereto be extended in the future, controls would have to be introduced toregulate this development.

14. Under the project, a total of up to 14 deep wells would be con-structed, each about 40 m deep and equipped with a pump driven by a dieselengine. Wells should yield an estimated 100 liters/second each (para 10).The canal and drainage system associated with each well would serve about70 ha. On-farm development would include land leveling and on-farm ditchesand drains. Control structures would be provided to determine the water con-sumption of each group of users (Agricultural Credit Societies - SACs) bene-fitting from a well.

ANNEX 2

Page 4

Project Implementation

15. The project would be carried out under the overall supervision

of the Organisme de Developpement du Nord (ODN) with the assistance of two

resident consultants and 18 man-months of short-term consultants (paras 23

to 26). The consultants would, together with their counterparts from SICR,

prepare the detailed work program, including the design of the groundwater

irrigation scheme, and technical modifications necessary to rehabilitate the

existing gravity irrigation systems.

16. Construction would start with the rehabilitation of the Quartier

Morin irrigation district, to be followed by the preparation of the ground-

water development during the second project year. Work on the St. Raphael

irrigation district would also begin during the second project year.

17. The civil works would, in general, be carried out by force account

under the direction of ODN. Manual labor would be used wherever feasible.

Services of small contractors would be used whenever appropriate.

18. The equipment provided under the project would be operated by ODN

under the supervision of the consultants and their counterparts. Drilling of

the up to 14 irrigation wells would either be carried out on force account,

with drilling equipment provided by the Government 1/, or be done by inter-

national contractors. All equipment would be maintained and repaired at the

workshop of the National Road Maintenance Service (SEPRRN) in Cap-Haitien.

Costs associated with the irrigation component are shown in Tables 2 to 5.

Operation and Maintenance

19. During project implementation, operation and maintenance of the

irrigation districts would be the responsibility of ODN. After the disburse-

ment period, SICR would assume overall responsibility. One irrigation engi-

neer would be responsible for both the St. Raphael district and the Quartier

Morin district, including the area irrigated by groundwater. One assistant

engineer/technician with a small staff for administrative and technical work

would be employed for each district.

20. The irrigation engineer would be responsible for the allocation of

water, the operation of the diversion dams and the water distribution system,

and overall supervision of the groundwater wells. He would, furthermore, be

responsible for maintenance works on the major distribution and drainage

canals and structures. The project would also provide vehicles and equipment

required to carry out operation and maintenance.

1/ SICR owns a modern (1975) drill rig which would be adequate for the

construction of the wells.

ANNEX 2Page 5

21. Farmers would be responsible for maintaining and operating the farm-level distribution and drainage systems, and SACs would be strengthened orreorganized to carry out the work in a cooperative way. The SACs benefittingfrom a deep irrigation well would form a water user group which would be respon-sible for the operation and maintenance of the well equipment to be run by apump operator.

Water Charges

22. At full development, all operation and maintenance costs (Table 6)would be paid by the beneficiaries through water charges. This would includethe cost of supervisory staff, labor, vehicles, repairs and fuel. Fuel andrepair of the diesel engines with which the wells are equipped would be paiddirectly by each user group. Water charges would cover a part of the invest-ment cost, which would be determined in consultation with IDA in accordancewith the payment capacity of the beneficiaries. The calculation of rent andcost recovery indices (Table 7) for three relevant farm models (Annex 19) leadsto the conclusion that about 50% of the investment cost could be recovered dur-ing the life of the project beginning after completion of the irrigation reha-bilitation/expansion works. Final water charges would be adjusted, on thebasis of data collected by the Evaluation and Control Unit of DARNDR. Whilesmall farmers would be subject to lower water charges covering only operationand maintenance costs, larger farmers would be charged progressively higherrates to recover as much of the investment cost as feasible. In the past, thewater charges (G 16 per ha per year) that were collected were transferred tothe Government in Port-au-Prince. None was channeled back to cover irrigationexpenses. However, they were not high enough to cover the cost of operationand maintenance. Under the project, only the nominal water charges (G 16) andthe investment costs recovered would be transferred to the Central Government.The remaining part of the charges would be at the disposal of ODN/SICR to coveroperating and maintenance costs.

Consultant Services

23. The project would provide the services of two resident consultantsfor irrigation development and 18 man-months of short-term consultants. Oneresident consultant would be a specialist in the design and construction ofgravity irrigation systems, and the second would be a specialist in the designand construction of deep well irrigation systems. The resident consultantswould be employed over a four-year period and assume the general responsi-bility for:

(a) detailed surveys as required for preparing quantity estimates,including topographic surveys for land leveling;

(b) modifications of the existing gravity irrigation systems,including studies to increase the water supply for theSt. Raphael district;

ANNEX 2Page 6

(c) final design of the extension of the Quartier Morin irrigationdistrict and the design of the well-irrigation system;

(d) studies of further extension of irrigation in the northernplain and the rehabilitation of the swamp near Ca,)-Haitien;

(e) construction supervision; and

(f) in-service training of local staff.

24. The short-term consultants would assist the resident consultants in

the following activities:

(a) review of the existing irrigation systems, including the design

of modifications (e.g., structural improvement to reduce sedimen-

tation in the canal system);

(b) detailed study of the groundwater resources of the Northern Plain,including determination of the location of deep wells for irriga-tion;

(c) supervision of well drilling operations; and

(d) study of the rehabilitation of the 500- to 1,000-ha swamp nearCap-Haitien, including preliminary design of a drainage systemand a proposal for agricultural and rural development.

25. One important objective of the consultants would be to strengthenthe SICR in the Northern Department so that the farmers would be assisted in

better water management, which would, in turn, facilitate the extension of

irrigation in this area.

26. The estimated schedule for the provision of consulting servicesduring the development period is as follows:

ANNEX 2Page 7

Year 1 Year 2 Year 3 Year 4 TotalConsultant --------------Man-months--------------

1. Resident Consultants

Irrigation Engineer, Gravity Systems 12 12 12 12 48Irrigation Engineer, Groundwater Systems 12 12 12 12 48

Sub-total 96

2. Short-term Consultants

Irrigation Specialist to reviewexisting systems 3 - - - 3

Design Engineer 3 1 - - 4Hydrogeologist 3 1 - - 4Drilling Specialist - 1 1 - 2Drainage Engineer (Swamp Rehabilitation) - - 2 - 2Agriculturist, Tropical Crops

(Swamp Rehabilitation) - - 1.5 - 1.5Soils Specialist (Swamp Rehabilitation) - - 0.5 - 0.5Agro-economist (Swamp Rehabilitation) - - 1 - -

Sub-total 18

Total 114

December 6, 1976

HATTI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Irrigation'Water Requirements

Months J F M A M J J A S 0 N D Total

Quartier Morin-1/

Mean Monthly Frecipitation( ( ) 1o4.1 73.8 105.9 146.9 150.0 loh.9 51.3 74.1 il4.1 139.6 169.9 157.1 1363.5Effective Precipitation (mm)J 20.8 59.1 21.2 29.4 30.2 20.9 45.8 59.3 22.8 27.9 33.9 31.4 402.7Dry morths: 80%Wet months: 20% 3/

Sugarcane Water Requirements (mm) 45.0 34.0 39.0 13.0 0.0 15.0 27.0 48.o 64.o 4o.0 30.0 32.0 387.0Sugarcane Water Requirements (1000 m3 720 550 630 210 .0 240 435 770 1025 640 480 520 6220Total Crop Water Requirements ('000 m-) 990 740 900 360 40 330 600 950 1150 700 480 620 7860

Plus: System los (l0c% 99 74 90 36 4 33 60 95 115 70 48 62 786Diversion Demand ('QOO m) 1089 814 990 396 44 363 660 1o45 1265 770 528 682 8646Diversion Demand (nm/sec) 0.42 0.32 0.38 0.15 0.02 0.14 0.25 0.40 0.50 0.30 0.20 0.26 -

Duty (1/sec/ha) 0.21 0.16 0.19 0.0 0.01 0.07 0.13 0.20 0.25 0.15 0.10 0.13 -

St. Raphael

Mean Monthly Precipitation (mm) 20 19 19 91 122 135 98 87 108 83 58 15 855Effective Precipitation 18 17 17 41 55 61 44 39 49 37 52 13 356Dry months: 90%Wet months: 45%

Total Crop Water Requirements (rnm) 732 624 539 471 236 337 616 633 370 191 277 393 5419Total Crop Water requirements ('000 m3) 2071 1756 1471 1313 595 1182 1770 1836 1112 511 820 1197 15634

Plus: System loss (i0o% 207 176 147 131 60 118 177 184 111 51 82 120 1563Diversion Demand ('900 re) 2278 1932 1618 1444 655 1300 1947 1020 .223 562 902 1317 17197Diversion Demand (m /sec) 0.88 0.75 0.62 o.56 0.25 0.50 0.7t 0.78 0.47 0.22 0.35 0.51 -Duty (1/sec/ha) 0.4 0.40 0.33 0.30 0.13 0.26 o.40 0.41 0.25 0.12 0.18 0.27 -

1/Caldos Sugar Corp. (1960 to mid-1976).7/By US Bureau of Reclamation method.5/Sugarcane.8C1% of cropping pattern.17/FAO-CP Preparation report.

_ ax~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~(

1NNEZ 2Table 2

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Irrigation Rehabilitation and Expansion

Cost of Equipment(G)

Estimated Estimated Total CostNumber Unit Cost Local Foreign Total

1. Construction

Backhoe (70 hp) i 300,000 300,000 300,000Loader 1 150,000 150,000 150,000Dump tuck (6 t) 3 60,000 18o,000 180,000Tractor (D5 or equiv.) with angle

blads and ripper 1 325,000 325,000 325,000Landplane, tractor pulled 1 100,000 100,000 100,000Grader 1 325,000 325,000 325,000Equipment and tools for nanual

labor(wheel barrows, picks,shovels, etc.) Lot 75,000 50,000 125,000

Spare parts (10%) 7,500 143,000 150,500

Sub -total 82,500 1,573,000 1,655,500

2. Engineering and Supervision

Vehieles, four-wheel drive 4 35,000 - 140,000 140,000Vehieles, pickup, standard 3 30,000 - 90,000 90,000Motorbikes 6 4,000 - 24,000 24,000Engineering nd technical

quipmentit Lot - - 50,000 50,000Spare prts (10%) - 30,400 30,400

Sub-total 334,400 334,400

3. Operation and Maintenance.2/

Dumptrucks (6 t) 2 60,000 - 120,000 120,000Vehicles, four-wheel drive 3 35,000 - 105,000 105,000Vehieles, pickup, standard 2 30,000 - 60,000 60,000Motorbikes 3 4,000 - 12,000 12,000Shop and servicing equipment

(50% of central unit cost) Lot 25,000 50,000 75,000office quipment23/ Lot 5,000 15,000 20,000

Sub -total 30,000 362,500 392,000

Total equipment 112,500 2,269,400 2,381,900

I/ Includes technical equipment for surveying, hydrological investigationsand drafting.

2/ Equipment maintained and repaired in the workshop of the National RoadMaintenance Service (SEPRRN).

3/ Includes calculators, typewriters.

July 13, 1976

HAITI

RURAL DEVELOPNENT PROJECT IN TE NRTRN DEPÀ NT

IrriRation Rehabilitation and Expausion

Staff CostJ

Annual Salary Year i Year 2 Year 3 Administration and Engineering Local Foreign Manyear Cost Manyear Cost Manyear Cost Yanyear Cost Hsnyear Cost

AoduinitrationAccouniatn 13,500 1 13,500 1 13,500 1 13,500 1 13,500 4 54,000

Seer.tary 11,800 1 11,800 1 11,800 1 11,800 1 11,800 4 47,200

' enoiiiant, short-terml/ (420,000g)E 0.75 (315,000) 0.25 (105,000) o.5 (210,000) - - 1.5 (630,000)Countezpart 21,800 1 21,800 1 21,800 1 21,800 1 21,800 4 87,200Surveyor 15,000 2 30,000 2 30,000 1 15,000 1 150ooo 6 90,OJODraftsmn 8,400 3 25,000 3 25,000 2 16,800 2 16,8oo 1o 83,600Driver 5,000 2 10,000 2 10,000 2 10,000 2 10,000 8 4O,OOO

Wo kshon-tf 8,000 1 8,000 1 8,000 1 8,000 1 8,000 4 32,000

leclanic 5,000 2 10,000 3 15,000 3 15,000 3 15,o00 il 55,000

Sub-total 130.110 135.100 111.P00 111.900 489.ooo

Construction

Irrigation engineer" (275,000) 2 (550,000) 2 (550,0(4 2 (550,00oc 2 (550,000) 8 (2,200J000)Couzfterpart 21,800 3 65,J400 3 65,400 3 65,400 3 65,400 12 261J600Aeoiutant engineer 15,000 3 45,000 3 45,000 3 45,000 3 45t 000 12 180,0D0surveyor 15,000 4 60J000 4 60,000 2 30,000 30,000 12 1 O,000Accountant (field office) 13,500 2 27,000 2 27,000 2 27,000 2 27,000 8 108,000Secretary (field office) 8a400 2 16,800 2 16,800 2 16,800 2 16,000 8 67,200Equipnent cperator 7,200 3 21,600 4 28,800 4 28,800 4 28,800 il 108,000Driver 5,00o 5 25,ooo 7 35,000 7 35,000 7 35,000 22 130,000

Sub-total 260,800 278.000 248,000 248.0<A 1,034,800

Total 390.900 413.100 359,900 1 523 800

Cost allocated to OIN(Annex 12, Table 2). f/ Cost dhared with the project's road construction component (Annex 10, Table 4).

July 13, 1976

ANNEX 2Table 4

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTNENT

Irrigation Rehabilitation and Expansion

Phasing of Expenditures

(G'000)

-------------- Year------------------Civil Works 1 2 3 4 Total

Quartier Morin 1i400 2,525 1,750 425 6,100St. Raphael _ 800 1,400 1,105 3,305Well irrigation _ 615 1,100 1,100 2,815

Buildings 120 - - - 120

Equipment 1,902 60 60 360 2,382

Compensation for land 35 45 35 10 125

Administration and supervision 4o1.6 423.8 370.4 370.4 1,566.2

Consultant services (865) (655) (760) (550) (2,830)

Total 3x858.6 4,468.8 4,715.4 3,370.4 161hL3.2

1/ Allocated to ODN(Annex 12, Table 2).

July 14, 1976

ANNEX 2

8AITI Table 5

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEFIEZ T

Irrigation Rehabilitation and Expanaion

Susnarv Cost Estistes

(G'000) _ (US*-000)Civil Worksl' Local Foreign Total Local Foreign Total

Quartier Morin

Rehabilitation of Irrigation System

Main canal 250 75 325 50 15 65Distribution system,including ninor concrete structures 250 150 400 50 30 80Drainage system 275 175 450 55 35 90On-fan developent2/ 1,050 550 1,600 210 110 320Repair on dikes long qrand Riviere do Nord 75 75 150 15 15 30

Extension of Irrieation Svstem

Completion of canal and drainage oystem 1,325 500 1,825 265 100 365Os-fars development 910 450 1.360 182 90 272

Sob-total 4,125 1,975 6.100 827 395 1,222

St. Raphael

Rehabilitation of Irrigation Systiam

Main canal 225 125 350 45 25 70Distribution system,iocloding ninor structures 275 175 450 55 35 90Drainage system 150 75 225 30 15 45On-far- develupoeît2/ 1,650 630 2,280 330 126 456

Sub-total 2,300 1.005 3,305 460 201 661

Well Irrigation

Drilling,iucluding cost uf casings, filters 160 400 560 32 80 112Psmps and engines - 420 420 - 84 84Pumphouse, stilling basin, and storage tank 25 10 35 5 2 7Distribution and drainage system,including on-fm

development2/ 1.325 475 1,800 265 95 360

Sub-total 1,510 1,305 2,815 302 261 563

uildings-/ 60 60 120 12 12 24

Eauipment

Construction 82.5 1,573.0 1,655.5 16.5 314.6 331.1Engineering and supervision - 334.5 334.5 - 66.9 66.9Operation and maintenance 30.0 362.0 392.0 6.0 72.4 78.4

Sob-total 112.5 2.269.5 2,382.0 22.5 453.9 476.4

Cospensaison for Land_./ 125 - 125 25 - 25

Administration and luservision

Administration and engineering 489.4 _ 489.4 97.9 - 97.9Construction 1,076.8 _ - _ 176.8 215.4 - 215.4

Bob-total 1.566.2 - 1.566.2 313.3 - 313.3

C3nsultsnt Services5/

Resident consultant - (2,200) (2,200) - (440) (440)Short-term consultant - (630) (630) - (126) (126)

Sob-total 2_(2830) _ (2.. 830) _ (566) (566)

Sub-'total o isnoysents 9,798.7 6.614.5 16.41 3.2.. _ ,9 6 1

.8

_ 1 322.9 ____ 3.284.27

Physical Contin&encies6

/ 1,825.0 1,441.4 3,266.4 365.0 288.3 653.3

Total 11.623.7 8,055.9 19.679.6 2.326.8 16_11.22

3.938.0

1/ Construction supervision would be carried out by ODN and SICR.2/ Includes distribution and drainage ditches at fara level and land leveling.3/ Ineludes field offices (75 mYeach)in Quartier Morin and St. Raphael (including office furniture)

and storage buildings (75 zdjeach) in both locations.4/ For land needed for conatructing additionnl canal., drains and buildings; G 5,000 per ha.5/ Allocated to ODN (Annex}2, Table 2).6/ Includea 20% for Quartier Morin and St. Raphael civil works, 30% for well irrigation works, 20% for

equipment and 50% for land compensation.

December 2, 1976

ANNEX 2Table 6

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Irrigation Rehabilitation and Expansion

Operation and Maintenance Costs after Full Developient(G)

1. Gravity Irrigation(Quartier Morin and St. Raphael Irrigation Districts)

Personnel Number Annual Cost

District engineeri/ 0.71-/ 15,260Technicians- asst. engineer 2 20,000Gate tenders 16 61,000Tax collectors 2 27,000Accountants 2 27,000Secretaries 2 16,000Drivers 4 20,000Equipment operators 2 12,000Mechanics 2 12,000Laborers 10 25,000

Sub-total 238,260

Equipment

Depreciation 2/60,00Operation and Maintenance- 6o,ooo

Materials and Supplies4/ 15,000

Total Annual Cost 363,260

Average Annual Cost/ha 90.8

2. Well Irrigation

Personnel Number Annual Cost

District engineer- 0.31/ 6,540Pump operators 14 56,000Tax collector 1 13,500Accountant 1 13,500Mechanics 2 12,000Laborers 8 20,000

Sub-total 121 ,540

Eguipment

Depreciation2/ /50,000operation and Maintenane-, 120,000

Materials and Supplies-4/ 10,000

Total Annual Cost 301,540

Average Anual Cost/ha 302

1/ District engineer for Quartier Morin charged vith supervision of a11.irrigated areas.

2/ 20% of cost of vehicles, 15% of trucks, 10% of ahop and servicing equipment.1/ Includes fuel, oil, grease, spare parts, estimated as 20% of purchase price.El Includes construction materials, office supplies.

July 13, 1976

ANNEX 2Table 7

BAITI

RURAL DEVELOPMENT PROJECT IN THE NORTE8RN DEPARIWENT

Rent and Cost Recovery-/

Fara Modela-/ Total ProjectI II IT Cost Indices

- (G) -- -- - -- (G) (G'OOO)

1. Incr ental Gross Value of Production 33,095 21,175 23,005 6,577.32. Less: Incre_ntal Production Costa 3 8,734 9,628 8,733 2,272.93. Land Rent41 135 500 500 88.54. Return on Capital5/ 1,019 250 1,307 191.35. Management Costs°- 3,310 2,118 2,301 657.96. Allowance for Risks

7 / 4,964 3,176 3,451 986.67. General Taxes8./ 180 183 230 47.88. Equals: Project Rent 14,753 5,320 6,483 2,332.39. Incremental Water Charges 9/ 5,164 1,330 3,100 804.410. Project Rent Recovery I1le,, (%) -L/ 35 25 47 - 34.511. Cost Recovery Index (%) - - - - - 53.9

12. Total Water Charges 5,324 1,490 3,100,1 836.413. Total Farm Rent 32,876 13,99(0 13,828 - -14. Farm Rent Recovery Index (%)jg2/ 36 2b 47 - 35.915. Total Cost Recovery Index - - - - 56.0

16. Farmer's Income per Capita at Full Development 13/ 1,249 660 628 - -17. Estimated Critical Consumption Level 14/ - - - - G 480

18. Estimated per Capita GDP 19801.5/ - - - - G 1,065

t/ Based on full production (Year 7) in mid-1976 terms and on three models representing different types ofirrigation investments. Previous investments in existing irrigation systeas are not considered.

2/ Farm Hodel I is a 10-ha unit in the gravity irrigation district of St. Raphael, with a cropping intensityof 135%. Project contemplates rehabilitation of existing irrigation system serving 100 units.Farm Model II is a 10-ha unit in the gravity irrigation district of Quartier Morin, with a cropping intensityof 120%. Project contemplates rehabilitation and expansion of existing irrigation system serving 100 units.Farm Model III is a 10-ha unit in an area north of Quartier Morin, with a cropping intensity of 120%. Projectcontemplates construction of a new well-irrigation system serving 50 units.

3/ Including hired labor and cost of equipment repair and replacement.4/ Assumes 9% tenants/sharecroppers in St. Raphael and 33% tenants/sharecroppers in Quartier Morin.

Land rent is assumed at G 150/ha.5/ 5% of value of land and 15% of incremental cash investments.6/ 10% of incremental gross value of production.7/ 15% of incremental gross value of production.

/ Assumes 1 bf sales f rom incrae ntal agricultural and livestock production.9/ Water charges establishéd in Years 4-20 after irrigation systems are fully operative.10/ Incremental water charges as a percent of project rent.11/ Incremental water charges as a percent of capital and O&M costs.12/ Gross water charges as a percent of project rent.T3/ Includes incremental on-farm consumption but does not include off-farm income.14/ Based on absolute poverty level of G 400 in 1975 and a 20% inflation rate.15/ Based on 4% growth of GDP per annum and 1.6% population growth per annum, in fixed 1975 terme.

December 7, 1976

ANNEX 3Page 1

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Credit to Agriculture

A. General

1. Institutional credit to the agricultural sector in Haiti is providedmainly by the Bureau of Agricultural Credit and the Institute for Agriculturaland Industrial Development. A substantial amount of non-institutional creditis provided by traders, and private moneylenders in the form of productionloans at extremely high interest rates running up to 120% per year and higher.

B. The Bureau of Agricultural Credit (BCA)

2. BCA, which was established in September 1963 within the Departmentof Agriculture, Natural Resources and Rural Development (DARNDR), is definedby its statute as a public service institute enjoying financial autonomy andjuridical status. Its main purpose is to supply production and term loansto small farmers operating within Government agricultural plans to increaseagricultural production and to enhance economic and social living standards.

Organization and Management

3. BCA has a Board of Directors appointed by the Government and repre-senting the Departments of Agriculture, Commerce and Industry, and Finance;the Central Bank (BNRH); and the Institute for Agricultural and IndustrialDevelopment (IDAI). The State Secretary and the Director-General of theDepartment of Agriculture are by statute the President and Vice-President ofBCA's Board, while its Secretary is the General Manager of BCA. The latteris endowed by the statute with all the prerogatives of a chief executive of apublic bank. BCA headquarters are at Damien, within DARNDR. Main operationaldepartments are Finance, Administration, Technical and Auditing, supported bythe Legal and the Studies and Research Departments.

4. As of June 1976, BCA had a network of nine regional offices and ninebranch offices, the latter established according to operational needs withinthe geographical framework of the regional offices. The regional office ofCap-Haitien is Jocated in the general area of the project and has two branchoffices: Granie Riviere du Nord and Pilate-Plaisance. Although the BCAoffice network is scattered country-wide, its operational efficiency is ham-pered by a variety of problems such as lack of communication and coordination

ANNEX 3Page 2

of geographical and sectorial intervention between and among regional offices;

lack of coordination of geographical and sectorial intervention between BCAand IDAI; scarcity of qualified personnel to appraise subloans and extend

credit assistance; low level of salaries; and the need for delegation of power

for loan approval, streamlined procedures, proper acounting and auditing, and

an efficient loan recovery system. Special attention is being focussed on

organizing small farmers in groups (SAC's) so as to strengthen their financial

and marketing position and on recruiting and training qualified personnel toassist small farmers in credit and commercial operations. BCA staff has

increased since 1974 from 27 to 50, about half of whom are technicians and

half are administrative and general services personnel. This staff is insuf-ficient for its increased activities. However, USAID programs provide for

support to BCA through the employment of three consultants and 27 extensionists,and under the project, the regional office in Cap-Haitien would be strengthened

(Table 1) by an agricultural economist, a marketing officer, three credit exten-sion officers, one accountant and seven credit extension agents. In addition,

one secretary and two drivers would be provided. Three local offices would be

established in Quartier Morin, Plaine du Nord and St. Raphael to facilitate the

availability of credit services and technical assistance in those areas.

Lending Policies

5. The scale of BCA's lending operation is limited. The loans advanced

in 1975 amounted to US$165,000 and were mainly made up of short-term loans for

crop production (Table 2). Almost all loans are extended to SAC's which BCA

helps organize. Individual loans are extended to particularly enterprisingand efficient small farmers. Average size of loans to SAC's is about US$200and to individual farmers, about US$90. A limited amount of medium- and

long-term credit is extended for small irrigation works, land improvement, and

agricultural machinery. In December 1976, the rate of interest charged by BCAwas increased from 8% to 9%. Compared to around 15% at commercial banks, this

rate is negative in real terms, considering the about 18% rate of inflation in1975, which, however, is expected to decline sharply over the medium term.Portfolio arrears, most of which are uncollectible, are not precisely deter-

mined, but are estimated to be about 40%. Since most loan beneficiaries donot have and, consequently, cannot pledge, land titles to receive credit, the

normal penalty in case of defaults is refusal by BCA to extend further creditto them. It is not possible at present to determine the real value of the BCAloan portfolio without a detailed analysis to ascertain the irrecoverabledebts; such analysis would be undertaken as part of the proposed reorganizationof BCA (para 4). *A consolidated balance sheet is shown in Table 3.

Financial Structure

6. BCA is authorized by law to hold sight deposits to discount its

portfolio with the Central Bank and issue credit certificates to raise funds,but all this produces only about 3% of its financial resources. Most ofBCA's lending is financed by budgetary allocations, and by USAID funds underthe small farmer coffee scheme. Government allocations cover about 85% of

administrative expenses (Table 4). BCA's financial position is weak, both in

ANNEX 3Page 3

terms of the arrears in its loan portfolio and its continuing operationallosses. However, Government is reviewing, with technical and financialassistance by USAID, the question of reorganizing BCA so as to develop it.

Accounts and Auditing

7. Accounts are poorly compiled and kept and they do not provide accept-able information on the current portfolio position, the level of arrears, thenumber of beneficiaries, or sizes of property. There is no external audit.USAID, however, is actively assisting BCA to establish an efficient accountingsystem and to arrange for external auditing.

C. The Institute for Agricultural and Industrial Development (IDAI)

8. IDAI is an autonomous Government institution established in 1961 tohelp spur the country's agricultural and industrial development. The Law ofJune 1973, which reorganized the institute, specifies that agriculture, includ-ing forestry, fisheries and livestock, industry and tourism, are IDAI priorityinvestment sectors and that its main functions are to help individuals orcorporations to increase output and to produce import substitution goods andservices. To pursue such an aim, IDAI is authorized to either invest directlyin enterprises and development projects or to extend short- and long-termloans.

Organization and Management

9. A Board of Directors, composed of the State Secretaries of Agricul-ture, Natural Resources and Rural Development; Finance and Economic Affairs;and Commerce and Industry and of the Director General of the National Councilfor Planning and Development (CONADEP) and the Director-General of the CentralBank (BNRH), is responsible for policy issues and lending programs. IDAI'sadministration is in the hands of a general manager and deputy general managernominated by the President of the Republic and assisted in their lendingdecisions by a Credit Committee to which are also appointed the controller andthe credit manager of the Institute.

10. IDAI has headquarters in Port-au-Prince and operates through a net-work of five regional offices staffed by a large group of agricultural andindustrial extensionists. As of December 1975, IDAI personnel numbered 440,about 50% of whom were technicians and the rest administrative and generalservice personnel. The institution organizes training facilities for itsagricultural staff and offers more than competitive salaries and a varietyof fringe benefits.

Lending Policies and Financial Resources

11. Although the bulk of IDAI's funds is invested in industry (Table 5),a substantial amount (42% in 1975) is used to finance agricultural production.Supervised credit to agriculture, which had increased from about US$71,000 in

ANNEX 3Page 4

1970 to US$284,000 in 1974, has again almost doubled (US$428,000) in 1975,mainly due to IDB funds and technical assistance. Production loans weremainly for cotton (65%) to farmers owning more than 5 ha, with the rest (35%)going to finance grains. Due to extremely high operational costs, the presentrate of interest (9%) for both short- and long-term lending is not sufficientto cover administrative expenditures. The level of arrears, though decreasing,still averaged about 22% of agricultural lending in 1975.

12. As indicated by the balance sheet (Table 6), the bulk of IDAI'sfinancial resources has recently been supplied by IDB's short- and long-termlending and by deposits from insurance companies on which IDAI is required topay an interest rate of only 2.5%, and by Government allocations (Table 7).

13. Auditing is performed by an IDAI officer appointed under recommen-dation of the Central Bank. Occasionally, external auditing is carried out byinternational auditors.

December 2, 1976

ANNfX 3

Table I

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTHENT

BCA - Strengthening of Regional office in Cap-Haitien

Investment *nd Operating CGuts

(G)

------------------------------------ Project Year-------------------------------------------------

1 2 3 4 5-20Unit Cout No. Cont No. Cont. No. Cont No. Cost No. Coat

A. Inveatuent

Buidings

Offices at Cap-BaitiStore et Cap-HaitieJT - - -

Pield Offices3/ 10,000 3 30,000Elaboration of construction plans - - -

and superviion of construction vork/ - - 3,000

Office furniture - - 10.000

Sub-total 43.000

Vehicles and Equipsent

Four-wheel drive vehic1e-/ 30,000 1 30,000

Four-wheel drive vehiclet 20,000 1 20,000

Lorry - 7 ton7/ -Motorbike8/ 4,000 10 40,000Calculator 500 5 2,500Typenriter 1,200 5 6,000Miscellaneous equipient - - 5.000

Sub-total 103.500

Total Investment Costs 146,500

B. Oneratina CoGts

Salaries 9/

Agricultsral Credit/Marketing Specialist --

Agricultural Econonist 21,800 1 21,800 1 21,800 1 21,800 1 21,800 1 21,800

Marketing Officer 21,800 - - 1 21,800 1 21,800 1 21,800 1 21,800

Credit Extension Officer 13,500 3 40,500 3 40,500 3 40,500 3 40,500 3 40,500

Accountant 13,500 1 13,500 1 13,500 1 13,500 1 13,500 1 13,500

Credit Extension Agent 10,000 5 50,000 7 70,000 7 70,000 7 70,000 4 40,000

Secret-ry 8,400 1 8,400 1 8,400 1 8,400 1 8,400 1 8,400

Driver 5.000 2 10.000 2 10.000 2 10.000 2 10.000 2 10.000

Sub-total 144.200 186.000 186.000 186.000 156.000

Maintenance of Buildinga _- 1.950 1.950 1.950 1.950

Running Costs of Vehicles

Fnur-wheel drive vehicle44/ 9,000 1 9,000 1 9,000 1 9,000 1 9,000 0.5 4,500

Four-wheej 9 rive vehicle- 6,000 1 6,000 1 6,000 1 6,000 I 6,000 0.5 3,000Motorbike- 900 10 9.000 10 9,000 10 9.000 10 9.000 7 6.300

Sub-total 24,000 24.00000 ,000 24.000 13.800

Replacement

Vehicle 15/ 20,000 - - - - - - 1 20,000 - -

Motorbike 4.000 - - - - - - 7 28.000

Sub- total 48.000

Other Expenses

Office expenses - 7,500 7,500 - 7,500 - 7,500 - 3,000

Return flight tickets Cap-Haitien/Port-au-Prince 200 5 1,000 5 1,000 5 1,000 5 1,000 3 600

Deily Allîwances for Port-au-Princei 16/17 100 15 1,500 15 1,500 15 1,500 15 1,500 10 1,000Training of credit extension personnel- - - 35,000 - 15,000 - 15,000 - - -Miscellaneous - 5000 - 5.000 -5000 -5000 - 2.000

Sub-total 50,000 300000 30.000 15.000 6.600

Total Operating Costs 218.000 241,950 241.950 274.95, 178,350

il Will be provided by BCA,2/ Will 2 be provided by BCA and ODN.3/ 40 n at G

250/ 2, located at Quartier Morin, Plaine du Nord, and St. Raphael.

4/ 107. of construction costs.5/ Long-wheel bice - pickup.6/ Short-wheel base - Isucuor equivalent.7/ Will be made available by ODN.8/ 100 cc otorbikes.9/ Includes family, nedical, leave, retirement and other allowences.10/ Will be provided by ODN (Annex 12, Table 2).

11/ 5% of construction coste beginning year following construction.12/ 15,000 km per year at G 0.6 per k., for fuel, lubricants, spare parts, repair and insurance.13/ 15,000 km per year at G 0.4 per km, for fuel, lubricants, spare parts, repair and insurance.14/ G 900 per year, for fuel, lubricants, spare parts, repair and insurance.15/ Ose Isuza or equivalent.16/ G 100 per day for senior staff.17/ Two two-week neinars per year in agricultural credit for BCA's Regionnl Office staff; courses will be

given by ODN staff reinforced by relevant apecialiste fron Port-au-Prince; includes general seminar coatsas well as travel and living cost allovances and fees (if epplicable) for Port-au-Prince specialist.

JulY 2. 1976

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

BCA - Use of Funds(.US)

-------------- Year----------------Items 1970 1971 1972 1973 1974 1975

Food crops 10,859 10,065 16,518 11,078 8,413 28,626Rice 2,134 500 - - 9,329 9,215Potatoes 4,356 2,351 2,170 1,353 731 1,319Vegetables 750 12,873 22,589 - - -Banana 400 - 650 - 820 -Groundnuts 3,695 5,710 3,800 9,700 23,605 5,410Coffee 23,957 4,000 22,000 19,685 5,000 96,313Sugarcane - - - - 120 -Livestock 10,725 8,418 13,434 12,880 25,650 23,774Animal plowing - - - - - -Equipment - - 80 - - 789Irrigation - - - - 74,464

Tota 56,876 43,997 81,161 54.696 148.921 164.657

Source: BCA

O 91July 9, 1976

ANNEX 3Table 3

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

BCA - Consolidated Balance Sheet(US$)

…------------- Years-----------------Assets 1972 1973 1974 1975

Cash and banks 74,927 79,934 92,436 117,529

Loans-/ 653,699 636,858 642,188 783,395

Others 127,114 75,074 48,336 7,360

Real estate and equipment 36,000 32,000 28,000 46,993

Accrued losses 191,239 191,518 198,159 207,103

Total 1,082,979 1,015,384 1,009,119 1,162,380

Liabilities

Sight deposits 105,795 40,797 41,098 88,404

USAID funds 744,806 744,806 769,841 794,961

Government loans 65,801 65,801 65,801 24,566

Government grants andcapital2 / 166,577 163,980 132,379 254,449

Total 1,082,979 1,015.384 1,009,119 1,162,380

1/ Including 1.3% of provisions or bad loans.2/ Capital US$5,000

October 8, 1976

ANNEX 3

HAITI Table 4

RURAL DEVELOPMET FRJECT IN THE NORTHERN DEPARTMENT

BCA - Income Statement(US$)

---------------- Years…--------------

Items: 1972 1973 1974 1975

Income

Governnent allocations 41,580 35 ,6 40 35,640 41,855Interest and commissions 7,872 6,481 8,334 6,663Others 659 1,020 1,953 1,523

Total 50.111 43,141 45,927 50,041

Ecpenditures

Administrative costs 46,164 45,782 50,871 55,886

Maintenance 4,226 4,000 4,000 4,000

Total 50o390 49,782 54,871 59,886

Operational Losses 279 6,641 8,944 9,845

July 7, 1976

HAITI

RURAL DEVELOPMNET PROJECT IN THE NCRTHERN DEPARTMENT

IDAI - Use of Fundsç~ u5~P

Agriculture 1971 1972 1973 1971 1975

Cormorations, cooperatives 129,931 174,669 259e995 284,024 427e7O7

-ndividuals - 24e869 14,542 28,392 94,186

Agro-industries 593,283 401.192 127,831 19.503 61B,900

Sub-total 723,214 600,730 402,368 331,919 11140.793

Industry

Corporations 591,h36 h09,835 233,622 127,603 279,942

National Equipment Society (SEN)./ 180,000 254,016 652,210 897,687436

Sub-total 771,436 663,851 885,832 1,025,290 1,606,378

Total 1,494,650 1,264,581 1,288,200 1,357.209 2.747,171

1/ Owned by IDAI.

July 12, 1976

ANNEX 3Table 6

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

IDAI - Balance Shest (June 30, 1975)(US$)

-----------------------------Year-----------_________-____Assets 1971 1972 1973 1974 1975

Current Assets

Cash and banks 741,981 927,319 733,335 1,386,992 613,796Current loans 1,019,744 1,154,085 1,302,472 1,575,106 2,156,107Other credits 77,462 122,441 350,609 97,742 17,439Interest receivable 63.789 50.792 105,106 48.160 175,795

Sub-total 1,902,976 2,254,637 2,491,522 3,059,840 2,963,137

Long-term Assets

Stocks 113,901 167,625 140,153 206,946 489,867Investment holdings 2,317,811 2,475,843 2,109,329 1,974,949 2,671,645Long-term loans 374,684 290,130 301,347 253,936 378,825Real estate 526.133 523.343 701,984 659,906 695,740

Sub-total 3,332.529 3,456,941 3,252,813 3,095,737 4,236,077

Other Assets

Insurance 37,401 49,711 82,791 142,863 60,446Other holdings 153,219 203,938 258,120 701.112 630,65

Sub-total 190.620 253,649 340.911 843,975 691,100

Total Assets 5.426.125 5.965.227 6,085,276 6,999.552 7,890,314

Liabilities

Current Liabilities

IDB short-term lending 156,109 162,416 168,971 175,805 182,907Interest payable 15,430 19,496 20,262 22,672 30,242Other debts 38,197 84,034 72,801 76.803 45,512

Sub-total 209,736 265.946 262.034 275.280 258,661

Long-term Liabilities

Insurance companies 315,000 300,000 300,000 300,000 360,000Pension fund 153,220 203,927 258,067 332,652 407,194OPDG current account - - - 368,460 223,460IDB long-term lending 1.498,674 1.546.885 1.534,140 1,596,830 2,133,882

Sub-total 1,966.894 2,050.812 2.092,207 2,597,942 3,124.536

Capital and Reserves 3,249.495 3,648,469 3,731,028 4,126,230 4,507,117

Total Liabilities 5.426,125 5,965.227 6.085,2696, 7.890.314

July 12, 1976

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

IDAI - Income Statement (June 30, 1971-1975)(US$)

------------------------------------- Year------------------_____.Income 1971 1972 1973 1974 1975

Government allocations 1,408,732 1,521,693 1,888,379 2,167,157 2,072,325Interest 155,008 165,129 151,301 153,728 254,041Dividends 43,289 45,299 - - -Others 16,622 15,21 48,319 37,551 68,538

Sub-total 1,623,651 1,747,331 2,087,999 2,35&436 2,394,904

Expenditures

Administrative 202,630 255,041 294,202 328,639 330,663Financial 73,512 80,203 86,626 89,572 93,687Provisions for doubtful loans 30,000 - - - -Development costs 754,012 960,934 1,162,315 1,119,303 1,106,049Depreciation 286,000 45,580 395,513 341,400 470,000

Sub-total 1,346,154 1,341,758 1,938,o56 1,878,914 2,000,399

Net Disposable Income 277,497 405,573 149,343 479,522 394,505

July 12, 1976

ANNEX 3Schedule APage 1

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

SCHEDULE A

Lending and Operating Policies and Procedures of BCA in Respect of

the Agricultural Credit Component of the Project

The Bureau of Agricultural Credit (BCA) would follow the policies

and procedures set forth in this Schedule in carrying out the agricultural

credit component of the project as the agent of ODN (paras 2.09, 2.10, 4.04,

5.07, 5.08 and 5.09 of the main text).

A. Purpose

The BCA regional office of Cap-Haitien would make short-term loans

to eligible individual farmers and Agricultural Credit Societies (SACs) for

expenditures related to agricultural and livestock production, such as fertili-

zers, pesticides, seeds and livestock medications, and medium-term loans to

purchase draft oxen, yokes, plows, sprayers, pumps and other production-related

implements as well as to construct simple grain storage facilities for shared

use of SAC members or by individual farmers.

B. Eligibility

In order to be eligible to receive a loan, a farmer would be (a) a

member of a SAC, or (b) an individual farmer cultivating up to 10 ha in the

irrigated districts and up to 15 ha in the rainfed area. In both cases a

farmer would meet all criteria established in the BCA statutes or as would be

reasonably established from time to time by BCA and the Organisme de Developpe-

ment du Nord (ODN).

C. Terms and Conditions

1. All loans would bear an interest rate of 9% per annum for the first

two years of the project, and 11% per annum thereafter, on the principal amount

of the credit withdrawn and outstanding from time to time, or on the total

amount of the loan.

2. SACs would not be required to contribute to their project costs, but,

under the present statutes governing SACs, 5% of the amount lent to them would

be withheld by BCA as a guarantee deposit on which an interest rate equal to

the onlending rate would be paid.

3. Individual farmers would be required to contribute at least 10% to

the total cost of the inputs financed under their short-term loans or of the

total investments under their medium-term loans.

ANNEX 3Schedule APage 2

4. Short-term loans would be repaid in periods of up to one year.

5. Medium-term loans would be repaid in equal installments overperiods of up to five years, including two years of grace, the exact periodbeing determined in each case on the basis of the cash flow forecasts.

6. SACs would guarantee collectively the repayment of loans grantedto their individual members. Normally, fresh loans would not be granted toany farmer who is in default on an earlier loan.

D. Procedures

1. Individual applications of SAC-members for short-term loans wouldbe consolidated at the SAC level; applications for medium-term loans forgroup-owned equipment or grain storage facilities would also originate at theSAC level. BCA's credit extension agents would review each loan application,including the individual SAC-member's farm plans and budgets, financingrequirements, repayment ability, debts and family needs, and the technicalrecommendations of the Agricultural Extension Service (SVA). The consolidatedSAC applications, with comments and recommendations on the basis of suchreview, would be submitted to ODN through the corresponding BCA office forapproval within two weeks.

2. Short-term loans would be disbursed, to the extent possible, inkind; that is, in the form of fertilizer, pesticides, seeds, livestockmedication, and the like.

E. Supervision

1. BCA's credit extension agents would be responsible for the super-vision of loans, including the verification of the end use of credits and thecollection of repayments from the individual farmers and from SAC membersthrough the SACs.

2. Agricultural Extension Service's (SVA) agents would regularly visitborrowers to ensure that farmers and SACs effectively carry out farm and cropdevelopment and comply with the technical provisions of their respective loanagreements with BCA.

December 2, 1976

ANNEX 3

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

SCHEDULE B

Points to be covered in the Program of Reorganization of BCA:

1. an anlysis of BCA's arrears and a plan for collecting,restructuring or writing off its uncollectible loanswithin an agreed date;

2. augmenting its capital through Government financialcontribution;

3. establishment of a satisfactory accounting systemand external audit;

4. further training of staff and improvement of theiremoluments;

5. progressive adoption of sound lending policies andprocedures; and

6. formulation of a five-year development program, aimedat gradually making BCA an efficient and viable insti-tution, through an expansion of its lending program,improved loan recovery, and a review of lendingterms.

December 2, 1976

ANNEX 4Page 1

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Agricultural Trials and Seed Production

Introduction

1. Agricultural development of the Northern Department requires improve-ment in crop varieties presently cultivated as well as in agricultural tech-niques. Because of the particular situation in the region, these improvementsmust be based on investigations conducted in areas with similar soil andclimatic conditions and field trials in the region itself. This is parti-cularly true for sugarcane where presently cultivated varieties are adapted tosoil and drainage conditions but are low-yielding in sugar content; but it isalso applicable to the other crops commonly grown in the region -- maize,beans, sorghum, tobacco, and the like -- in which significant yield increaseshave been obtained with selected varieties and improved management in neigh-boring countries.

2. The potential of the region for producing crops such as oil-bearingseeds to substitute for imported edible oils and fats, which constitute about40% of agricultural imports, should not be overlooked. The development of theeastern portion of the Northern Plain for production of dairy products, anotherimportant agricultural import, should be evaluated, with particular attentionto the production of suitable pastures adapted to regional conditions.

3. In the absence of a strong research center at the Department ofAgriculture, Natural Resources and Rural Development (DARNDR) in Damien thatcould develop a regional experimental station with close ties to the nationalcenter, a different approach has been taken under the project, namely, tostrengthen local efforts in agricultural trials, while maintaining ties withthe Department's central research station, and to involve farmers themselvesin the trials through the Regional Extension Service. This approach isexpected to reduce the time necessary to adopt agricultural practices suitablefor implementation at the farm level.

4. A similar approach is proposed for the production of selected seed,a task which is essential to the improvement of present varieties and theintroduction of new ones with better characteristics. Thus, Organisme deDeveloppement du Nord (ODN) would (a) assist the sugar mill in the productionand multiplication of proven varieties of cane which are adapted to regionalconditions and potentially higher in yields, both in weight and sugar content,and (b) provide support to the Rural Development Center of Milot (CRUDEM)for production of improved seeds of other crops. Simultaneously, contractswould be made with individual farmers to produce the recommended improved seedunder close supervision by ODN. The resulting seed would be purchased by ODNfor distribution to project farmers, particularly those receiving credit from

ANNEX 4Page 2

the Bureau of Agricultural Credit (BCA), on condition that Extension Serviceand ODN recommendations would be strictly followed in the production, harvestand processing of the improved seed.

Agricultural Trials

5. The activities in agricultural trials would include applied researchand participation in the demonstration efforts to be carried out by the Exten-sion Service. These activities would be under the supervision of the ODNagronomist and the direct management of an agricultural technician who wouldcarry on after the project ended, thus providing continuity to the trialsprogram. The agronomist and agricultural technician would work in closecoordination with the Caldos sugar mill and with CRUDEM, providing technicalassistance when necessary and logistic and financial support for the project-oriented trials being conducted by the two institutions.

6. One month of consultant time per annum would be provided (Table 1)to support agricultural trials and seed production activities as needed fororganization and planning, and to address specific technical problems. Theseconsultants would be contracted by ODN in agreement with the participatinginstitutions.

7. Arrangements for establishment of trial plots in individual farmswould be made by the Extension Service, with ODN providing the necessaryinputs for the trials (fertilizers, seed, herbicides, pesticides and such).Trials would also be under the supervision of the ODN agronomist and theagricultural technicians, with the close participation of agricultural exten-sion agents and, in the demonstration phases, of rural "animation" agents.

8. In addition to existing trial plots at the sugar mill and at CRUDEM,the program contemplates the establishment of a number of plots throughoutthe project area. These plots would be scattered so that the maximum numberof representative conditions for the project area were experienced. TheAgricultural Extension Service, with assistance from the agronomist fromODN, would design a program of trials, including adequate size and locationof trial plots to include as many representative conditions of the areaas possible.

9. Equipment provided for land preparation, planting and harvesting andlaboratory and processing facilities, as well as small implements and tools(Table 1), would be available for both the agricultural trial and seed produc-tion activities under a work program devised by the ODN agronomist and theagricultural technician, in consultation with Caldos and CRUDEM officials fortheir respective plots, and with the Extension Service and farmers for indi-vidual trial plots and seed production areas. Soil testing facilities wouldbe available for farmers participating in the trials and seed producing pro-grams and for other project farmers at the request of the Extension Service.

ANNEX 4Page 3

10. No provision has been made for continuation of the agriculturaltrials program beyond project year 4 since by that date it is expected thata UNDP-financed agricultural experimentation program managed by DARNDR,with support from FAO, would be fully operative. This program would be on aregional basis and would expand and apply the resuIts of the present programto regions similar to the project area throughout the Northern Department. Itwould also initiate trials for the drier, heavier soil areas of the easternNorthern Plain.

Improved Seed Production

ll. The improved seed production activities are closely tied to theagricultural trials and, like them, are under the supervision of the ODN agro-nomist and management of the agricultural technician. The Extension Serviceparticipates by identifying farmers willing to take part in the program andby providing technical assistance in the production of the improved seed.

12. It is expected that the program could eventually produce certifiedseed, but for now, the objective would be to produce the necessary amount ofselected and treated seed to improve yields in the major crops of the area,mainly maize, beans, sorghum and peanuts. In the case of sugarcane, the mainfocus of the program would be the multiplication of seed cane of selectedvarieties resulting from the agricultural trials being conducted at the sugarmill. In due time, the trials conducted to identify potential new crops forthe area, particularly oil producing crops, would also require seed productionfor introduction of these crops into the region's cropping pattern.

13. Equipment for proper land preparation, planting and harvesting, trans-port, and seed processing, as well as the necessary inputs, seed, fertilizers,herbicides and pesticides, would be provided by ODN ta the participatingfarmers, and technical assistance and supervision would be supplied to insurethat improved seed was produced according the technical instructions providedto the farmer. The resulting seed crop would be purchased by ODN at pricesrepresenting a reasonable incentive to the farmer, and surpluses not meetingthe required specifications for improved seed would be the property of thefarmer for consumption or sale in the local market. The produced improvedseed would be distributed by ODN to farmers in the project area at pricescorresponding to production costs, including packaging. Improved grain seedwould be packaged in 60-lb sisal sacks, while smaller seed for vegetables andtobacco and the like would be packaged in 1-lb paper bags. Seeds would beprocessed by ODN and treated to prevent deterioration or insect and rodentattack before distribution to farmers.

14. In the case of multiplication of sugarcane stock or production ofseed by either the sugar mill or CRUDEM, adequate arrangements would be madebetween ODN and the participating institution to adjust the price of seedto the corresponding production cost for ODN.

ANNEX 4Page 4

15. The program contemplates the production of improved seed followinga program to be established by ODN with assistance from the Extension Service.After year 5, the proposed UNDP-financed project for agricultural trials andseed production is expected to be operational and would concentrate on produc-tion of improved varieties and introduction of new crops.

16. ODN's soll testing facilities would be available to farmers parti-cipating in the seed production program, and storage facilities created underthe project would be available for stocking improved seed, if necessary. Itshould be stressed that purchase of seed resulting from the program by ODNis subject to following strict production instructions from the programmanagement and the Extension Service.

17. In addition to improved grain seed, the program would undertake theintroduction of improved plantains, yams, and manioc varieties with higheryields. Grain seed should be produced in years 1 to 3 and improved tuberand plantain varieties in year 4. Introduction of new cane varieties shouldbe considered only after satisfactory results have been obtained in theexperimental plots of the sugar mill, followed by careful testing in thefield to prove their higher yields in both cane and sugar. Once such avariety had been identified and tested, the "animation" and extension agentswould undertake to convince farmers, by means of demonstrations and tests, toreplant deteriorating fields of the present varieties with the new ones.

18. Experimental plots for agricultural trials would be distributed inboth the irrigated and non-irrigated areas of the project, but seed produc-tion would be developed only in irrigated areas in order to insure adequateharvests and to avoid possible crop failures due to lack of precipitation.

October 6, 1976

ANIŒI 4Table 1

b'^lTI

RURAL DEVELPElNT PROJECT IN THE NORTIIRN DPARTlENT

Agricultural Trials and Seed Productio.

Investment and Operating Coata(G)

Unit Cost Number Pyl PY2 PY3 PY4 Total Cost

Inve s tment

Four-wheel drive vehicle- 30,000 1 30,000 30,000Tractor (70 hp) 43,500 1 43,500 43,500Di c plow 5,700 1 5,700 5,700Disc harrow 5,000 1 5,000 5,000Leveling H'arrow 6,800 1 6,800 6,800Fertilizer spreader 3,600 1 3,600 3,600Seed drill 12,900 1 12,900 12,900Cultivator/ridger 2,000 1 2,000 2,000Trailer (5 ton) 14,300 1 14,300 14,300Knapsack sprayers 300 2 600 600Weighing scale 2/ 2,000 1 2,000 2,000Soil testing equipment- 3/ - 5,000 5,000Seed processing equipment- - 6,000 6,000Small implements andtooîŽ/ 9 9,000

Sub-Total 146,400 146,400

Physical contingency (20%) 29,280 29,280

Total Investment Costs 175,680

PY1 PY2 PY3 PY4 Total Cost

Operating Costs

Technical Supervision

Agricultural Technicia3, 13,500 1 13,500 13,500 13,500 13,500 54,000Short-term consultants-

Labor

Foreman 5,000 1 5,000 5,000 5,000 5,000 20,000Driver/mechantc 6,500 1 6,500 6,500 6,500 6,500 26,000Laborer/guard- 7/ 2,700 1 2,700 8,100 8,100 13,500 32,400Temporary laborers- C 6/man-day 540 1,080 1,440 ?,520 5,580

Inputs8/ Unit Cost Units

Fertilizers 1,500 ton 2,250 4,500 6,750 9,000 22,500ChemicalsFungicides 60 gallons 750 1,500 2,250 3,000 7,500Insecticides 32 400 800 1,200 1,600 4,000Pesticides 30 375 750 1,125 1,500 3,750Lnboratory chemicals 500 1,000 1,000 1,500 4,000Improved seeds 500 1,000 1,500 ',000 5,000

MaterialsPaper bags 100 1,000 100 200 200 400 900Sisal bags 250 100 250 500 500 1,000 2,250Miscellaneous Materials 500 1,000 1,000 3,000 5,500

Operation and bintenanceof equipment2 8,150 16,300 21,450 32.600 78.500

Sub-total 42,015 61,730 71,515 96,620 271,880

Physical contingency (20%) 8,403 12,346 14.303 19 324 54.376

Total Operating Coets 50418 74076 85. 818 115 944 326 256

I/ Long base pickup truck.2/ Includes portable field testing set and sampling augers.3/ Includes seed cisaner and batch seed dresser.4/ Includes hoes, spades, axes, and such.5/ Included in ODN - Headquarters costs (Annex 12, Table 2).6/ Based on one laborer/guard per trial plot (one plot in year 1, three plots in years 2 and 3, five plots in year 4).7/ Based on same trial plot distribution as 6/.8/ Assumes same trial plot distribution and seed productian on 3 ha in year 1, 6 ha in year 2, 9 ha in year 3and 12 ha in year 4.9/ Assumes G 0.6 per km of four-wheel drive vehirle; G 9.00 per t-:actor hour; and 10% of

investment cost for non-autootive equipmenc-

July 8, 1976

hAITI ANEX

VUA DEVELOPHIIT PBROJICT IN TEE NORTEN DEPARTIN

Regional Agricultural Extension Service

Investuent and Operatina Coste(G)

-- _-------------------------------Project Yea- --------------------------- --

Unit I 2 3 4 5-20Cont Jo Co Nt No. Coat No. Coat No. Cost No. Cost

Invest_nt

Buildints

Offices at CI-Haitieni-/Field officesz/ 10,000 3 30,000Storage spacey/ 10,000 3 30,000Elaboration of construction plans qd

supervision of construction works_ - - 6,000Office furniture - - 10.000

Sub-total 76.000

Vehicles and Epuipment

Four-vheel drive vehicle4/ 30,000 1 30,000Four-whee6 drive vehicle-/ 20,000 3 60,000Motorbike-/ 4, 000 30 120,000Calculator 500 3 1,500Miscellaneous equipsent - - 5.000

Sub-totai 216. 500

Total Investnent Costs 292.500

Ooerating Costs

Salaries7/

Extension officse' 13,500 3 40,500 3 40,500 3 40,500 3 40,500 1 13,500Extension agent- 10,000 20 200,000 30 300,000 30 300,000 30 300,000 10 100,000Secretary 8.400 1 8400 1 8,400 1 8400 1 8,400 1 8.400

Sub-totel 278&900 348,900 348.900 348,900 121,900

10/Maintenance of Buildings- - - - 3,800 - 3.800 3,800 o000

Running Costs of Vehicles

11/ 1,0Four-wheel drive vehicle- 12,000 1 12,000 1 12,000 1 12,000 1 12,000 1 12,000Four-wheel drive vehicl.l

2/ 8,000 3 24,000 3 24,000 3 24,000 3 24,000 1 8,000

MotorbikeW3

/ 900 30 27.000 30 27.000 30 27.000 30 27.000 10 9,000

Sub-total 63.000 63,000 63.000 63.000 29,000

Reolacement of Vebicles

Foour-wheel drive vehicll4

/ - - - - - - 2 50,000 -

Motorbike 4.000 - - - - - - 10 4000o --

S;b-total 90.000

Other Expenses

Office expenses _ _ 5,000 _ 5,000 _ 5,000 _ 5,000 - 2,000Return flight tickets Cap-Haitien/Port- - - - -

au-Prince 200 5 1,000 5 1,000 5 1.000 5 1,000 2 400Daily allovance for Port-au-Prince15/ 16/ 100 15 1,500 15 1,500 15 1,500 15 1,500 5 500Training of agricultural extension personn1l- - - 110,000 - 10,000 - 10,000' - - - _Miscellaneous - - 5,000 - 5.000 - 53000 - 5.000 - 2,000

Sub-total 122.500 22,500 22,500 12,500 4,900

Total OperatinR Coets 434A00 438.2_ 438200 518.200 159.00

1/ Alre dy availabl2.2/ 40 * *t G 250/m 2 located at Quartier Morin, Plaine du Mord and St. Laphael.

50 s 2

*t G 200/m located at Quartier Morin, Plaim du Nord and St. Raphal.3/ 102 of construction costs.4/ Long-wheel bas - pickup.5/ Short-wseel base - Isuzu or equivalent,6/ 100 cc notorbike.7/ Includes family, medical, leave, retirement and other allovances.8/ One for Plaine du Nord, one for Quartier Morin and one for St. Raphael.9/ Ten agents for irrigated and twenty agents for rainfed agriculture.10/ 5. of construction costs beginning with year folloving conatructiOn.11/ 20,000 ka per year at G 0.6 per ka, for fuel, lubricts, spare parts, repair and insurance.12/ 20,0eo km per year at G 0.4 per lm, for fuel, lubricats, *pars parts, repait and insurance.13/ C 900 per year, for fuel, lubricants, spire parts, repair aod imeurance.14/ Que Iong-wheel base - pickup and mne short-wleel base - I_su or equivalent.

G/ G 100 per day for senior staff.16/ For (a) in-service training of ExtenienAgstt ta ba ptovided by OD staff, rainfrord

by relavant pp*cialiets from Port-au-PriFA mclads gmaralauSar os. issa astramal amd living cont allowance snad fée (if salicable) for Port-mi-?ria apecslista); d(-) training of the three Exteion Offic rs in Hliti and/or rd a *gricultural sshject_ttsr spcialiest one for grain production, ont for _uprceae production ad on forVetable Md tobacco production.

October 8, 1976

NAITI 6

RU DEVELOPMENT PROJECT IN THE NORTRERN DEPARTHEST

Regional Rural Animation Service

Investmant and Operatina Costa(G)

-------------------------------------- Pro3ect Year--------------------- ---------------Unit 1 2 3 4 5-20Colt No. Coat No. Colt No. Coat No. Colt No. Coet

A. Investeent

Buildings

Offices at Cap-Haitie_ -/Field officea_/ 5,000 3 15,000Elaboration of construction plans and

supervision of construction vorks3/ 1,500Office furniture - - 5,000

Sub-total 21.500

Vehicles and Equipment

Four-uheel drive vehicle _/ 20,000 1 20,000Motorbike5/ 4,000 8 32,000Calculator 500 1 500Typevriter 1,200 1 1,200Hectogr*ph 2,500 - 2,500Camera - - 2,000Mavie projector - - 2,000Miscellaneous equipmsent - - 5.000

Sub-total 65,200

Total Investmnt Costs 86.7

B. Operatint Costa

Salarie e=6

Animtion agents2

/ 10,000 5 50,0°° 6 60,000 6 60,000 6 60,000 3 30,000Secretary 8 400 a S.400 1 8.400 1 8.400 1 8.400 1 8.400

Sub-total - - 58,400 - 68.400 - 68.400 68.400 38.400

Maintenance of luildings _ - - - 1.100 - 1.100 - 1.100 - 1.100

Running Cbots of Vehicles

Eour-wheel rive vehicle/ 8,000 1 8,000 1 8,000 1 8,000 1 8,000 0.5 4,000Motorbik 1

20 900 8 7.200 8 7,200 8 7.200 8 7.200 6 5.400

Sub-total 15,200 15,200 15,200 15.200 9.400

Replacemnent of Motorbikes 4.Oo - - - - - - 6 24.000 - -

Other Expenses

Office expenses - - 2,500 - 2,500 - 2,500 - 2,500 - 1,000Return flight tickets Cap-Raitien/Port-

au-Prince 200 2 400 2 400 2 400 2 400 1 200Daily allovance for Port-au-Prince.l/ 100 6 600 6 600 6 600 6 600 3 300Films, including development conts 12/ - - 1.000 - 2,500 - 2,500 - 1,O00 - 1,000Trainiog of rural animation personnel- - - 15,0 00 - 20000 - 5,000 -5 000Minceilaneous _ _ 2;000 -2.000 2 2 000 2 1 000 00

Sub-total 21S-A 13.000 13.000 6.500 3,500

Total Operating Coats 95.100 97.700 97,700 115.200 _ 52400

1/ Already available.2/ 20 m

2et G 250/m

2loated et Quartier Morin, Plaine du Iford and St. Raphael.

3/ 107, of construction costs.4/ Short-wheel base - Isu.u or equivalent.5/ 100 cc motorbikes.6/ Includes f_ily, medical, leave, retiremnt ad other allovances.7/ Of which four would be responsible' for rural animation, one for each handicraft and home economics promotion.8/ 5% of construction coats beginning vith year following construction.9/ 20,000 km per year et G 0.4 per km, for fuel, lubricants, spare parts, repair and insurance.10/ G 900 per year, for fuel, lubricants, epare parts, repair and insurance.11/ G 100 per day for senior staff.12/ For in-service training to be provided by ODN staff, reinforced by. relevant specialists from

Port-au-Prince (includes living coat allovancce and fees (if applicablei for Puri-au-Prince staff).

July 6, 1976

ANNEX 7

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Regional Animal Health Service

Investment and Operating Costs

(G)

- -------------------------- Project Year---________________

Unit i 2 3 4 5-20

Cost No. Cost No. Cost No. Cost No. Cost No. Cost

A. Investment

Field -ffices 10,000 2 20,000Elaboration of ^onstruction plans a99

su,Pervision of construction works- 2,000

Furniture 5.000

Sub-total 27.000

Vehicles and Equipment

Motorbike,3/ 4,000 3 12,000

Refrigerator-/ 1,500 2 3,000

Insulated container2' 500 3 1,500

Veterinary kit6/ 2,500

Sub-total 19,000

rotal Investment Costs 46,000

B. Operating Costs

Veterinary Assistant- / 10,000 2 20,000 2 20,000 2 20,000 2 20,000 2 20,000

Maintenance of build9ngs - - - - 1,350 - 1,350 - 1,350 - 1,350

Motorbike allowance- 900 3 2,700 3 2,700 3 2,700 3 2,700 3 2,700

Reolacement of Motorbikes 4,000 - - - - - - 3 12.000 - -

Vaccines:Hog cholera 3 3,000 9,000 5,000 15,000 6,000 18,000 7,000 21,000 7,000 21,000

New castle disease 0.12 5,000 600 8,000 960 10,000 1,200 15,000 1,800 15,000 1,800

Liver flukelC/ 6 1,000 6,000 1,500 9,000 2,000 12,000 2,500 15,000 2,500 15,000

Helminth-L/ 3 8,000 24,000 10,000 30,000 15,000 45,000 15,000 45,000 15,000 a5,000

Diverse vaccines - - 3,000 - 5,000 - 5,000 - 5,000 - 5,000

Drugs and medi,aments - - 3,000 - 5,000 - 5,000 _ 5,000 - 5,000

Administration _ - 500 - 500 - 500 - 500 - 500

Total Operating Costs 68.800 89,510 110.750 129,350 117,350

I/ 40 m at G 250/m located at Plaine du Nord and St. Raphael.

2/ 10% of construction costs.3/ 100 cc motorbikes for Milot, Plaine du Nord and St. Raphael.

4,' For Plaine du Nord and St. Raphael.5/ For Milot, Plaine du Nord and St. Raphael.

6/ For Plaine du Nord and St. Raphael.

7/ Includes family, medical, leave, retirement and other allowances.

8/ 57% of construction costs,beginning with year following construction.

9/ G 900 per year, for fuel, lubricants, spare parts, repair and insurance.

10/ Three treatments per year.Il, Two treatments per year.

July 6, 1976

ANNEX 8HAITI Table 1

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Municipal Markets

Costs of Materials and Equipment for Rehabilitating 1/and Improving the Two Municipal Markets of Cap-Haitien-

(G)

Proiect Year lUnit Cost No. Cost

A. Central Market

Corrugated iron for roofing 100/m2 500 m2 50,000Toilets2/ - 40,000Cold storage room3/ 4 25 m2 50,000Improvement of butcher shops4/ 1,000 10 10,000Display tables.5/ 125/m 720 m2 90,000Improvement of water supp1y../ -.- 30,000Drainage_7/ 20/m 1,000 m 20,000Miscellaneous construction materials8/ - - 50,000Elaboration of rehab>litation plan and

work supervision- 34,000Physical contingencies (207%) - - 75,000

Sub-total 449,000

B. Abattoir Market

Design of marketiQ/ - - 25,000Work execution - - 200,000

Sub-total 225,000

Total 674,000

1/ Works would be carried out by municipal technicians and laborers.2/ For 2ehabilitation2and expansion of the existing toilet facilities.3/ 25 m at G 1,000/m (includes insulation, insulated door, light) plus

cost and installation of cold storage equipment (3 tons) at G 25,000.4/ Includes one washing basin, one marbie slab, and general improvements of

floors, walls, including mosquito screens, and such per butcher shop.5/ To be constructed of reinforced concrete at G 125 per running m (1 m wide).6/ For water pipes, faucets and one water pump.7/ To rehabilitate existing drainage facility.8/ Cement, sand, reinforced bars, paint, and such.9/ 107. of costs of materials and equipment.10/ Includes water supply, sanit-ry installations, drainage, paved walk-ways

design and alignment of vending stalls, fencing, and such.

July 8, 1976

ANNEX 8Table 2

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Improvement of the Municipal Market of St. Raphael

(G)

Project Year 2

Unit Cost No. Cost

Water supply - 17,500

Pavement of market area, including 2adequate drainage 15/m 2,000 30,000

Sub-total 47,500

Physical Contingencies (25%) - - 11,900

Design of Market - 10,000

Total 69,400

1/ Extension of existing water supply system (G 5,000), including constructionof a 5-m3 elevated tank (G 12, 500).

July 8, 1976

ANNEX 9

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Municipal Abattoir - Costs of Materials and EquipmienA/(G)

Proiect Year 1Unit Cost No. Costs

22Corrugated iron for roofing 100/m 450 m2 45,000Brick wall, 1.2 m high 80/m2 100 m2 8,000Mosquito screens 30/m2 500 m 15,000Toilet and washing basin 1 2,500Storage room for tools and miscellaneous equipment 1 800Knocking crush 1 1,500Hand winch 2,500 1 2,500Two concrete tables and two concrete asins - - 4,000Miscellaneous construction materials-- - 7,500Miscellaneous slaughter equipment and tools3/ - 7,500Fencing t/ 50/m 300m 15,000Gate 1 500Paddocks5/ 1,500 2 3 2 4,500Manure pit 20/m 25 m 500Repair of covered sewerage ditch 60/m 200 12,000Compensation for replacingvending stalls 6 500 15 7,500Elaboration of rehabilitation plan and work supervision-/ - - 13,400

Sub-total 147.700

Physical contingencies (20%) 29,500

Total Costs 177,200

1/ Rehabilitation works vould be carried out by municipal technicians and laborers.2/ Cement, sand, reinforcement bars, faucets, waterpipes, paint, and such.3/ Includes hammer, two carts, metal trays, various tools, and such.4/ InclYdes reinforced concrete posts every 4 m, wire-net and two barbed wire-strings.5/ 50 m each.6/ 107% of costs of materials and equipment.

July 8, 1976

ANNEX 10Page 1

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Road Construction and Maintenance

The National Road Network

1. Haiti's road network outside the urban centers comprises about

3,400 km, of which 430 km, or about 13%, have an asphalt or cobblestone sur-

face, the remainder being gravel or earth, with earth more predominant. The

network is largely adequate in extent, but its condition is in general very

unsatisfactory due to a nearly total neglect of maintenance for many years.

Composition and condition of the network in the project area is fairly close

to the national average.

2. Responsibility for road construction and maintenance, both urban and

rural, rests with the Department of Public Works, Transport and Communication

(TPTC). The Department has a supervision service for construction of larger

projects and a force account equipment fleet and staff, which, in practice, is

occupied only with urban street construction and maintenance. Maintenance of

the extra-urban road network is delegated to an autonomous service of the

Departments, the permanent service for maintenance of the national road network

(SEPRRN 1), established in 1972 with assistance from USAID.

3. The physical deterioration of the extra-urban network has progressed

so far that ordinary and periodic maintenance activities are largely meaning-

less. Consequently, SEPRRN's efforts have been directed to rehabilitation of

key links in the network, while the network as a whole until late 1975 received

scant attention. Recently, however, district offices have been established in

Cap-Haitien, Hinche, and Les Cayes, functioning as centers for mobile units

maintaining drainage works and structures.

4. The Bank has assisted Haiti in financing four highway projects, of

which the last two comprise construction of the Port-au-Prince to Cap-Haitien

road to two-lane, paved standards. That road will provide all-weather

connection between the project area and the capital and is expected to be

completed by the end of 1976.

The Road Network of the Project Area

5. In the project area, the main network comprises about 105 km, of

which 20 km are paved. The length of the motorable feeder road network is

estimated at about 200 km. Some roads in the area, such as the Cap-Haitien

1/ Service d'entretien permanent du reseau routier national.

ANNEX 10Page 2

to Trou du Nord highway were previously either paved or had cobblestone orgravel surfaces, of which virtually nothing remains to date. Presently,feeder roads in the area are frequentIy unpassable in the rainy season.

6. TPTC forces in the project area do not carry out any work outsidethe town of Cap-Haitien, limiting itself to street maintenance work. Theirequipment is in complete disrepair, the maintenance yard is equipped withonly a few hand tools, and spare parts stock is non-existent. Operationalequipment is limited to two trucks and one jeep for the district engineer.SEPRRN, on the other hand, has an equipment yard of ample size, as yet under-utilized, and in need of cleaning out and refurbishment. An ongoing USAIDsponsored road maintenance program will finance modernizing of the CapHaitian SEPRRN workshop as well as the procurement of tools and maintenanceequipment.

7. The only road construction activity undertaken in the area inrecent years has been carried out by the Rural Development Center of Milot(CRUDEM), organized by a Canadian religious order and supported by Canada'stechnical assistance agency (CIDA). CRUDEM has a limited equipment pool andmost work is done by hand. An average of 10 km of feeder roads has been up-graded annually to all-weather standards, totalling 75 km in the Plaine duNord area. Work quality is uneven and the road elevation above surroundingareas is generally insufficient, but the overall result is acceptable in viewof CRUDEM's limited construction capacity. Maintenance of the completed roadsis being done mostly by hand, assisted by CRUDEM's single grader. Construc-tion is expected to continue during the coming years at the present rate,providing a useful supplement to the road construction that would be done underthe project.

The Project: Construction of 66.5 km of Feeder Roads and about 27 km ofFarm Access Roads

8. With respect to transport infrastructure, the project area containstwo distinct regions: the lowlands of the Plaine du Nord and the high plateausouth of St. Raphael. The lowlands would have relatively easy access to Cap-Haitien and its agro-industrial plants, provided that all-weather feeder roadswere constructed to connect to the main highways of the region. The St. Raphaelplateau is served by only one access road. Feeder roads in the St. RaphaelPlateau are relatively satisfactory, although primitive, due to the greaterpermeability of the plateau soils (some of which are of volcanic origin) andconsequent lesser dependence on drainaged structures and ditches.

9. To sustain the movement of agricultural produce envisaged in theproject area, it is estimated that 180 km of feeder roads and 60 km of all-weather primary/secondary roads would be required. Of this, only about 75 kmof feeder roads, built by CRUDEM, and about 20 km of paved road from Cap-Haitien to Milot (and, later in 1976, the 20 km of main road from Cap-Haitiento Limbe) would be satisfactory to meet the immediate needs of the project.

ANNEX 10Page 3

10. The transport requirements of the project are, therefore, in

descending order of priority:

(a) an all-weather link from the existing paved road,

Cap-Haitien-Grande Riviere du Nord, to St. Raphael (30 km);

(b) a network comprising about 53.5 km of feeder roads in the

lowlands of the Plaine du Nord; and

(c) feeder roads (13 km) and access roads (27 km) to the

hydraulic works in the St. Raphael Plateau.

The link from Grande Riviere du Nord to St. Raphael is included in a second

USAID highway project, signed on June 29, 1976, comprising a US$5 million loan

and a Government contribution of US$1.6 million for rehabilitating 940 km of

roads to all-weather feeder road standards. The first section from Grande

Riviere du Nord to Dondon (about 15 km) has already been completed and work

is proceeding on the remaining section. The links to be financed under the

project cover points (b) and (c) above and are listed in Table 1.

Design

11. There are no generally established road standards in Haiti; most

design in recent years is derived from French and US practice. With assis-

tance from USAID, the TPTC has, however, developed standards for feeder

roads, and design for them under the project (Table 2) would adhere to such

guidelines. The TPTC Cap-Haitien Regional Service, aided by a technical

assistant recruited under the project, would do the design work. Access roads

to farms and dam sites would be simple cleared tracks, 4 m wide with a suitable

cover (about 15 cm thick) but little or no earthworks.

Construction

12. There are no contractors in the area capable of undertaking the

project works, and overseas firms are unlikely to be interested due to the

small size of the project. Construction of feeder roads and access roads to

farms and dam sites would therefore be done by the TPTC Regional Service in

Cap-Haitien on force account. Its manpower and equipment facilities are

presently very limited, and, although construction is envisaged to be carried

out by hand labor wherever feasible (for ditches, off-shoot drains and calverts),

additional equipment and technical assistance would be required to cope with

clearing and earthworks. The necessary equipment and a limited amount of work-

shop tools for equipment maintenance would be purchased under the project

(Table 3). Costs and phasing of expenditures are in Tables 4 and 5.

Construction Supervision

13. Supervision of all construction work would be done by the TPTC

Regional Service under the guidance of a technical assistant provided under

the project (para 15).

ANNEX 10Page 4

Maintenance

14. SEPRRN would be responsible for maintenance of all roads constructedunder the project. The SEPRRN Regional Service is presently being established(para 6) and operations in the area have begun. Average maintenance cost ofthe feeder roads is tentatively estimated at US$600 per km annually, withtotal maintenance costs for all the roads constructed under the projectexpected to be about $35,000 per annum. Maintenance costs for all roads inthe project area would be about $150,000 annually. In the intermediateperiod, until SEPRRN is fully operational, CRUDEM would continue to maintainthe feeder roads they construct.

Technical Assistance and Consulting Services

15. To implement road design, construction and supervision, the TPTCwould require an estimated four man-years of technical assistance to carryout feeder road alignment selection and to direct TPTC construction work inthe field. This assistance would be provided by an expert who would trainthe TPTC district staff in feeder road construction. Ample need for furtherfeeder road construction outside the project area but within the Cap-HaitienTPTC district would remain after project completion to warrant the retentionin the region of equipment and engineering talent acquired under the project.

October 6, 1976

ANNEX 10Table l

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Road Construction and Maintenance

Nam.e and Length of Roads to be Constructed

Length

Feeder Roads km

Acul du Nord-Cagnette 3.2

Acul du Nord-Duty 5.8

Acul du Nord-Plaine du Nord 5.0

Plaine du Nord-Morne Rouge 3.2

Plaine du Nord-Grison Garde 7.2

Grison Garde-Robillard 3.7

Robillard-Haut du Cap 13.0

Quartier Morin-Ca Douche 8.0

Limonade-Fourrier 4.4

St. Raphael towards Pignon 13.0

Sub-total 66.5

Access Roads to Dam Sites 7.0

Farm Access Roads 20.0

Total 93-5

Source: FAO/CP Project Preparation Report and missionestimates, April 1976.

July 12, 1976

ANNEX 10Table 2

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Road Construction and Maintenance

Proposed Feeder Road Standards

Flat Hilly/Mountainous

Width of carriageway h m 4 m

Width of shoulders 0.5 m none

Maximum gradient 8% 12%

Minimum horizontal curve radius 60 m 30 m

Passing sight distances not considered

Surface material improved earth gravel orriver gravel

Design axle load 9 t 9 t

July 12, 1976

ANNEX 10Table 3

HAITI

RURAL DEVELOPMET PROJECT IN THE NORTHERN DEPARTMENT

Road Construction and Maintenance

Cost of Ecluipment Fleet for Feeder Road Construction

Cost(G)

1 Bulldozer,140 hp 300,000

1 Grader,120 hp 225,000

1 'ater truck 90,000

1 Steel roller 40o,000

1 Hand compactor 5,000

1 Concrete mixer 50,000

1 Loader 150,000

5 Dump trucks 5°0,°00

h Liaison vehicles 130,000

Sub- total 1,490,000

Spare parts,20% 300,000

Workshop tools 60,000

Total 1,850,000

July 12, 1976

AÂEI 10Table 4

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Road Construction and Maintenance

Cost per km Feeder Road

Units Unit Cost Total CostWorks Component Unit per km (G) (G)

Recanstruction of subgrade m2 5,200 1.10 5,720

Excavate,haul and place selectedmateriau / m 2,700 10.75 29,025

Clearing _ - 500

Constructicn and rectificatianof ditches m 2,500 6.oo 15,000

Paved fards m2 120 5.0 600

Culverts no. 1.h 4.500 6.300

57,545

rounded: 57,600

1/ 50% light ripping, average haul 12 km.

Note: Excluding equipment depreciation.

July 12, 1976

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTH3RN DEPARTMENT

Road Construction and Maintenance

Summary Coats and PhasinD of Expenditures(G'OOO)

Construction Cost ---------------------resr------------------------- Foreign1 2 3 4 5-20 1/ Total Loeal Foreign Exchange

Four-m feeder road (66.5 km) 380 1,150 1.530 770 3,830 1,532 2,298 60Farm access road (20 km) - ¶00 100 - 200 60 140 70

Dam sites access road (7 trm) - - 70 - 70 20 50 70

Road construction and maintenanceequipment 1,850 - - - 1,850 - 1,850 100

Physical contingencies2/ 299 375 510 231 1.415 566 849 60

Sub-total 2.529 1.625 2-210 1001 7, I- 2,178 5,187 70

Compensation for Land 3/ 25 25 10 60 60 - -

Road Maintenance - 18 70 140 (175) 228 182 46 20

Pnysical contingencies (10%) - 2 7 14 ( 18) 23 17 6 25

Sub-total - 20 77 154 (193) 251 199 52 21

Total 2,529 1,670 2,312 1,165 (193) 7,676 2,437 5,239 68

1/ Consultant's services are allocated to ODN (Annex 12, Table 2).2/ 30% on civil works and 10% on equipment.3/ For land needed for road construction; G 5,000 per ha.

June 14, 1976

ANNEX 11Page 1

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Potable Water Supply

Existing Potable Water Supply

1. While 55% of the urban population of Haiti was served by publicpotable water systems in 1973, only 2.3% of the rural population had suchservice. In the Northern Department, the City of Cap-Haitien is served bya potable water system (groundwater development) which reaches less than1,000 of the more than 5,000 houses of the city, and the service was reducedduring the last few years, mainly because of the financial deficit of theRegional Hydraulic Service. There are only two public systems in the ruralarea of the Northern Department, one in Milot serving about 5,000 persons theother in St. Raphael, providing water through two public faucets to about 50households. The majority of the population obtains drinking water fromshallow, hand-dug, open wells, from rivers and a few springs in the foothills.The wells, with a water table about 1.50 to 2.00 m below ground level (about2.00 to 2.50 m during the dry season), are unprotected and mostly contaminated,resulting in widespread intestinal diseases. Only a few wells that were builtby missionaries are well protected and equipped with hand pumps.

Proposed Expanded Potable Water Supply

2. The project would provide for the construction of up to 400 hand-dugwells and up to five small potable water system to improve general hygienicconditions and to reduce widespread intestinal diseases substantially. Inaddition, the present need to carry water over large distances would be elimi-nated for about 3,000 households.

3. Wells would be 2- to 10-m deep with a 1-m diameter. Reinforcedconcrete rings or brick walls would be used for their lining and they would bedisinfected, protected with reinforced concrete covers and equipped with handpumps. The small systems would include spring catchments, a small concretewater reservoir, and plastic pipes leading to three to five standpipes. About20 persons would benefit from each well, while each small system would servean estimated 2,500 persons. As a result, a total of about 20,000 personswould be provided with potable water, as shown below:

Total Number ofNumber Persons Served

Small Systems 5 12,500

Shallow wells 400 8,000

20,500

ANNEX 11Page 2

4. While the wells would be built primarily to serve the populationwith adequate drinking water, the project management would make all effortsto encourage use of the wells for irrigating gardens and small plots in theimmediate neighborhood of the dwellings. Various ways of exploiting thegroundwater resource such as hand and small gasoline pumps and simple waterwheels would be experimented with.

Execution of Works

5. Organisme de Developpement du Nord (ODN) would be responsible forthe preparation and supervision of project works, in cooperation with SHRH 1/and COALEP 2/. The Rural Animation Service would promote the project amongthe rural population. SHRH and COALEP would be in charge of implementationworks, assisted by ODN, which would provide vehicles, construction materialsand pumps, determine the exact location of the wells, supervise their con-struction and be responsible for their disinfection, and install the pumps.The same agencies would design the small systems and be responsible for theirconstruction, for which the project would supply the necessary materials.While the beneficiaries would contribute labor for excavation and other workthat can be carried out by unskilled labor, SHRH and COALEP would providetechnicians and skilled construction workers.

Operation and Maintenance

6. The beneficiaries would be responsible for operation and maintenanceof the water supply systems. However, because of their lack of experience theywould have to rely on outside assistance for maintenance of the systems. Theonly organizations in the Northern Department with experience in maintainingwells and potable water systems are SHRH in Cap-Haitien and the Rural DevelopmentCenter of Milot (CRUDEM).

7. The project would therefore strengthen SHRH in Cap-Haitien throughthe provision of vehicles and equipment (Table 1) and two trained mechanicsduring project execution to allow them to carry out the necessary maintenanceand repair of the small systems and the wells. SHRH would also carry outroutine checks of the sanitary conditions of the wells and of their state ofrepair. A fee, to be determined by SHRH, COALEP and ODN, would be charged forthese services.

1/ Service Hydraulique de la Republique d'Haiti, which is building watersupply systems in towns.

2/ Cooperative pour l'Alimentation en Eau de la Population Rurale, theGovernment agency charged with building rural water supply systems.

ANNEX 11Page 3

Sewage Disposal

8. Sewerage systems do not exist in the rural areas of the NorthernDepartment, but a US$6 million project of IDB 1/ is underway which providesfor the construction of small water supply systems and latrines in variousparts of the country. Since more than 1,000 latrines are to be built inNorthern Haiti, the project does not include a sewage disposal component.The project management, however, would cooperate closely with the IDB projectto assure that latrines were built according to adequate hygienic standards.

October 6, 1976

1/ "Proyecto de Regionalizacion de Salud," for which the World Health Organi-zation (WHO) is executing agency (1975-1980).

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Potable Water Supply

Investment and Maintenance Costs(G)

---------------------------------- Project Year---------------------------i 2 3 4 Total

Unit Cost Cost No. Cost No. Cost No. CTSt No. Cost

A. Shallow Wells-/

Lining and cover2/ 600 - - 200 120,000 200 120,000 - - 400 240,000Hand pump 450 - 200 90,000 200 90,000 - - 400 180,000

Supervision and disinfection of well 100 - - 200 20,000 200 20.000 - - 400 4.0,000

Sub- total 230,000 230,000 460,000

1/ 3/B. Small Potable Water Systems 25,000 - - 2 50.000 3 75,000 - - 5 125.000

C. General Construction Costs

Equipment

Four-wheel drive vehicle-/ 30,000 2 60,000 - - - - - - 2 60,000Portable pump 2,500 5 12,500 5 12,500 - - - - 10 25,000Tools, workshop equipment and spare parts - - 10,000 - 5,000 - - - - - 15,000

Sub-total 82.500 17.500 100.000

Salaries

Mechanic 5,000 - - 2 10,000 2 10,000 2 10,000 - 30,000Driver 5,000 2 10.000 2 10.000 2 10,000 2 10.000 - 40.000

Sub- total 10,000 20,000 20,000 20,000 70.000

Running Costs

Vehicles and pumps - - 10,000 - 17,000 - 17,000 - 10,000 - 54,000Miscellaneous - 10.000 - 15,000 15,000 - 10.000 - 50.000

Sub-total 20.000 32.000 32,000 20.000 104.000

r_ Maintenance-!/

Physical contingencie6 - - 22,500 - 74,900 - 78,900 - 8.000 - 184.300

Total 135,000 424,400 435,900 48.000 1.043.300

I/ Excavation work to be carried out free of charge by beneficiaries. >2/ One-m-wide reinforced prefabricated concrete ringsfcr brick walls with reinforced concrete cover.3/ Includes catchment of springs, small concrete reservoir, plastic pipes to village and three to four hydrants. a x

L/ Long-wheel base pickup.5/ To be carried out by SHRH-Cap-Haitien, starting PY5; G 40,000 per year for salaries of two

mechanics/drivers, and related transport costs, spare parts, and such.6/ 20% of shallow wells, equipment, salaries and running costs, and 30% of small water supply systems.

July 8, 1976

ANNEX 12Table 1

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Organisme de Developpement du Nord (ODN) - Headquarters

Investment Costs(G)

Project lear

Unit Cost No. Co0t

Buildings and Construction

Offices,-/ 125,000 1 125,000Staff house4/ 75,O00 8 600,000Staff house/ 60,000 1 60,000Storej/ 37,500 1 37,500Elaboration of construction plans,bidding documents and supervision ofconstruction works_- 123,400

Furniture for offices and houses6/ - 197,500

Sub-total 1,143,400

Vehicles and Equipment

Staff cari 8/ 34,000 1 34,000Four-wheel drive vehicle- 35,000 1 35,000Four-wheel drive vehicle_/ 30,000 1 30,000Four-wheel drive vehicle 10/ 20,000 1 20,000Lorry - 7 tons 50,000 1 50,000Motorbike 1 1' 4,000 2 8,000Calculator 500 5 2,500Typewriter 1,200 6 7,200Photocopy machine 3,000 1 3,000Miscellaneous equinment 15,000

Sub-total 204, 700

Total Investment Costs 1 ,348,100

T7 250 m2at G 500/m22for 10 offices, one meeting room and toilets.2/ 150 m2 at G 500/m for project senior staff.3/ 120 m2 at G 500/m2 for project medium-level staff.4/ 150 m2 at G 250/m2.7/ 15% of construction costs.7/ G 25,000 for offices; G 20,000 per senior staff house; and G 12,500 per

medium-level staff house.7/ Peugeot 504 station wagon or equivalent.É/ Long-wheel base - station wagon.9/ Long-wheel base - pickup.10/ Short-wheel base - Isuzu or equivalent.11/ 100 cc.

July 2, 1976

hAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT ANNEX 12Table 2

Organisme de Developpement du Nord (ODN) - Headguarters

Operating Costs(G)

--------------------------------------------------- Years- -------------------------------------I 2 3 4 5-20

Unit Cost No. Cost No. Cost o Coat No. Cost No. CostSalaries

Director 32,000 1 32,000 1 32,000 1 32,000 1 32,000 1 32,000Deputy director

2/ 300,000 1 300,000 1 300,000 1 300,000 1 300,000 1 25,000

Irrigation specialist2/ 275,000 1 275,000 1 275,000 1 275,000 1 275,000 1 21,800Groundwater specialist-/ 275,000 1 275,000 1 275,000 1 275,000 1 275,000Agronomist2/ 275,000 1 275,000 1 275,000 1 275,000 1 275,000 1 21,600Credit/m.rketing specialisti/ 275,000 1 275,000 1 275,000 1 275,000 1 275,000 -Road construction engineer 2.1 275,000 1 275,000 1 275,000 1 275,000 l 275,000Comm-unty deveiopment spccialist i 21,800 1 21,800 1 21,800 1 21,800 1 21,800 1 21,800Chief accountant-/ 18,500 1 1&,500 1 18,500 1 18,500 1 18,500 1 18,501JAccoontanti/ il 13,500 1 13,500 1 13,500 1 13,500 1 13,500 -Secretary (bilisg-l and shorthand)- 11,800 2 23,600 2 23,600 2 23,600 2 23,600 1 11,800'Secretar 1< 8,400 4 33,600 4 33,600 4 33,600 4 33,600 4 33,60î.Mechansc-. 5,000 1 5,000 1 5,000 1 5,000 1 5,000 - -Driveri/ 5,000 5 25,000 5 25,000 5 25,000 5 25,000 3 15,000Storekeepe.

4I 5,000 1 5 000 1 5,000 I 5,000 1 5,000 1 5,000

Mes enger- 3,800 1 3,800 1 3.800 1 3 800 1 3,800 1 3.80t

Sub-total 1.856,800 1.856.800 I P56,800 1.856,800 _°10°O0

Consultats for Project Implementatioand Preparation of a Second-PhasePro ject_

Irrigation drainage specialsts4/ 35,000 9 315,000 3 105,000 6 210,000 - - - --

Road construction engineer5. 35,000 2 70,000 7 70,000 2 70,000 - - -

Sugacvcne specialists6/ 35,000 - - 1 35,000 1 35,000 1. 35,000Others 35.000 1 .5,000 2 70,000 3 105.000 __ 2_ 70,000 _

Sob-to'ta1 - 12 420.000 p 280.000 12 420,000 3 105.000

Maintenance

Buildings and constructions7/ - - - - 57,200 - 57,200_ 57.200 - 57.200

Running Costs of Vehicles

Staff car8/ 8,000 1 8,000 1 8,000 1 8,000 1 8,000 1 8,000Four-whnel drive vehicle9/ 9,000 2 18,000 2 18,000 2 18,000 2 18,000 1 9,000Four-wheel drive vehicle'-L/ 6,000 1 6,000 1 6,000 1 6,000 1 6,000 1 6,000Lorrv - 7 ton 1l/ 15,000 1 15,000 1 15,000 1 15,000 1 15,000 -Motorbikel2/ 900 2 1.800 2 1,800 2 1.800 2 1.800 1 900

Sob-total - - 48,800 - 48,800 - 48 800__ - 48,800 - 23.900

Replacernent

VehI le 1i3/ - - - - - - - 1 35,000Motovoîke - - --- 1 4000 - __

Slb-total __39.000

Other Expenses

Office ospe-ses - - 15,000 - 15,000 - 15,000 - 15,000 - 5,000Return flight tickets (Cap-

Haitien/Port-au-Prince) 200 20 4,000 20 4,000 20 4,000 20 4,000 5 1,000Daily allowances for Port-au-Prince- 153 60 9,000 60 9,000 60 9,000 60 9,000 15 2,250Renting of otaff housesIL/ 2,500 60 150,000 - - - - - - - -

Electricity and sater - - 10,000 - 30,000 - 30,000 - 30,000 - 20,000Auditing - - 15,000 - 25,000 - 25,000 - 25,000 - 10,000Training of project staff abroad- / 50,000 - 1 50,000 2 100,000 1 50,000 -Miscellaneous - - 20 .0 - 20.000 - 20,000 - 20,000 - 5,000

Sub-total 223.000 153.000__ 203,000 153.000 43,_50

Total Ooerating Costs 2,548,600 2,395,800 2,585,800 2,259.800 334.450

1/ Includes family, medical, leave, retirement and other allowances.2/ Includes cost of international air travel, and f amily, aedical, leave, retirement and other allowances.3/ G 35,000 per month; includes international air travel, subsistence and fee./ See Annex 2.

5/ See Annex 10.6/ See Annex 4.7/ 5°. of conscruction costs beginning year following construction.8/ 20,000 km per year at G 0.4 per km, for fuel, lubricants, apare parts, repair and insurance.9/ 15,000 km per year at G 0.6 per km for fuel, lubricants, spare parts, repair and insurance.10/ 15,000 km per year at G 0.4 pet km, for fuel, lubricants, spare parts, repair and insurance.11/ 15,000 km per year at G 1.00 per km for fuel, lubricants, spare parts, repair and insurance.12/ G 900 per year for fuel, lubricants, spare parts, repair and insurance.13/ One long -wheel base - station wagon.14/ G 150 per day for senior staff.15/ G 2,500 per month.16/ One-year fellowship for Haitian OON - staff in agricultural economics agricultural credit,

irrigation and other project-related subjects, which includes living allowances, transport andtuition costs.

July 2, 1976

RAITI

RDdAL DEVELOPlfdNI PRQJECT IN TIE NORTdIRRUI DEPARTMRNi AOiNEX 12

Organism de Deneîorre'uent du Nsrd CODN) - Oradsuarte

Initial Perlent Iei etaeien SohedoIr

gespoibi … … … … … ……----------_-_-__ Months _____ -------------------------------------HAit Pue initier Authoritv 1 2 3 4 5 6 7 8 9 10 il 22 13 14 15

Pro roit Adminietrarior

Appoint ODN Diretor DARNDR *Recruit and appoint ODN D Di " ODN -----------Recroted eppoine rgsideo-sn-Itasts. ODNse-------Recrois nd ppoint ODR' retion eaff ODN ---Etpiy sot-t nouitat ------------Rent d quip officeoed eid tff daelli . ODN ----------P-------------------l--------- -------Oreparr ad iVite bide 0cr office b.ildinge and

staff bouses, vaRioles snd encipeent; rogiostaIC bid., diacoce cam, obtait IDA -pprei svdpl-c ot, csodr ODN -------- _----_------------_----------------_----------------------_-----_---___---------------_______--

Acluirs er f_o strc--ur-----is--e--Prepgpeeandcerep outcteainingcrseaeinoegrcicutorsi DRD ________________r______________

credit, rotent ion *nd rurai antirtior ODN/DARNDR ------ --Costeruce offi-e buildingt and -eatf toges coN

ecrsitad appoint f SICR ---------------------------Ertabi it înfji odfiore 02CR ------ -Carry outoadacerai asd tapagraphic -ur.eY.; prapate

deeign and teohrieal apecificaeions SICR/SURH/ODN ---------------------------------------- ------------------------------ ------------Prepere.asd invite bids f-o ahicli.. eqoipe..t and

corsarruccie sageeRgial eIlisaee lU bide,di-cuse tberme abesin COu appran anA piegoders SICR/ODN --- --

Acquire "lan fo srutu DARNDR -------------------------------- --------------------------------------- ---------------------------------- ------ ~-Carry eue civi1 sorbe sartetig in the Quartier Marie SICR/WPP/ODN ------------------------------------------------------------------------------------

Arrange ig ...enane fscilit,ie for nebit andaqoipIent SEPREN ----------l---------i------------

Acricuitrcel Credit

Recruit atd appoint -aff BCA/ODRTrain steff BCA/ODNEsteblish field offices .nd ordre -nrki.o and

Cranopore tacilitio- BCA/ODN -------------------------------------------Oriasize SACs îod miitOe farn plan preperetior and

lendîsg iCARNOOtCPrepare progra- farrergaianior of BCA -A- -R/C- - - ----------

Tri.ls agd lEnroord Seed Pre etiot

Prepere Aetailedplae andorder e- uipe-n- ODN _ _ _ _ Cer 0y out tri.le ced . md d prsductin ODNi/SVA/CRUDRM/

CO1dse, fertars --------------------- --------- ---------------

itansieon termicre

Racruir and appoint s-ff SAR/SVA/ODN ----------------------- _------Trien setff SAR/SVA/ODN -etablimh field a.iNA he asd order osrkit n d SAR/SVA/ODN anA---------------

Protide -.eo. ion anI rurel anicaaiont serciee SAR/SVA/ODN ------- -------------------------------------------

AciNAl Reaith

Rerruie APd appaisr staff SNV/$E/ODN-Ratablisb field off ice end order uarkisg *d

reesepert factiietei SMV5R/SE/OOE -- ---------Providr animal brair MrVla 06vSE/OD

Merkene aod Aba-rsir

Prepare plna and bids asd plac- coMtnaceas/rdere Nunioipalitier/ODN ------------------------------------------

Uerry aie civil voreke Mluicbpeîiriea/RON___-___________________________

Recrnir tad ppint rtff TPTC/ODN -----------------------------Per.par drslgr, egîbsisel epecificcrtrm -mcd aligeaat

of rsade ced bea.is kDA pprang TPTC/ODN-Praparae d iscite bide fer nebiolge, "q"îp-st -nd

constrtio sien atri enalueeiC bide, d., TPTC/ODN ---d-e---

ARquer, I;nd e arrures TPTC ------------------------------------------CUrrp sut oivil gorkb OPTCAWP/ON -------Arrangr riaisecenie tetilicias for ocmi ses endsequirreno

rqsipmrit SEFRkS

LPot.bl. W.te

eiecrslsd eppeist -saff ShRH/ODN ---DOgarNine .sestios of velie and .aIl bare- eupply

e enrsa a Id prepar- terbeCoal sprcificariose SHRd/UCALEP/ODNOrder oguicies, eqoipresen esd rangtrucfisn n teri-ls SHRH/ODNCarry O.k clvii sirka SHRH/ODN

tlosioinoecand tEaluatian

Recrîit eed appoins etaff ced arranfe fer efficeAnd orceep-et facilitire DARNDR -----

1/ Coerm bhe sais iniil projecot - eotiv ef te br cerrird sut after BeardpresentatRos snd ass ig proecIt efleatiseme fine mnthe hbereafter.

12!,O/76

ANNEX 13Page 1

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Appointment of Project Staff and Qualifications for Project Senior Staff

Director

1. A Haitian national, experienced in agricultural economics and/or

agricultural production, or a production specialist with formal training in

agronomy would head the Organisme de Developpement du Nord (ODN). Experi-

ence as a senior manager, some of it in Haiti, is also necessary. He must

command respect and have an understanding of the rural population of Haiti

and should be conversant in English to facilitate his exchange with the

international staff and consultants. He would be required to direct, with

the assistance of his deputy, an interdisciplinary team of Haitian and expat-

riate staff; to discuss and establish liaison with Governnent agencies and

international organizations; to assume responsibility for issuing quarterly

and annual reports; to discuss progress of the project with the Project

Board and with the Regional Coordinating Committee; and to be responsible

for a US$3 million annual budget.

Deputy Director

2. The Deputy Director should be a graduate in agriculture, capable

of providing technical and administrative support to the Director, and,

when necessary, of assuming full responsiblity for the work of an inter-

disciplinary development team. He should have at least 10 years' experience

in agriculture in tropical/sub-tropical areas. Previous responsbility for

development programs, including agricultural extension, credit and training,

would be highly desirable. He should be conversant in French and English.

In addition to bearing over-all management responsibility for coordinating

project components, he would also be responsible for orienting extension

activities in the project area, in close coordination with the regional Agri-

cultural Extension Service (SVA) of the Department of Agriculture, Natural

Resources and Rural Development (DARNDR), and assist the Director in the

preparation of a follow-up project.

Surface Water Irrigation Specialist

3. The surface water irrigation specialist should be a graduate in

agricultural or civil engineering, specialized in surface water irrigation.

He should have at least five years' experience in the design and construction

of gravity irrigation systems and in the training of farmers in water manage-

ment. Part of his experience should be in developing countries in tropical

or sub-tropical areas and in projects dealing with small farmers. He should

be conversant in French. He would be required to provide technical advice

and assistance to the regional Irrigation and River Control Service (SICR)

ANNEX 13Page 2

and participate in all activities pertaining to the surface irrigation compo-nent of the project, including detailed surveys required for preparingquantity estimates; topographic surveys for land leveling; modification ofthe existing gravity systems; final design of the extension of the QuartierMorin irrigation district; and construction supervision and in-servicetraining of local staff. In addition, he would participate in studies offurther extension of irrigation in the Northern Department and the rehabili-tation-of the swamp area near Cap-Haitien.

Groundwater Irrigation Specialist

4. The groundwater irrigation specialist should be a graduate inagricultural or civil engineering, specialized in groundwater development.He should have at least five years' experience in the design and constructionof deep-well irrigation systems and in the training of farmers in watermanagement. Part of his experience should be in developing countries intropical or sub-tropical areas and in projects dealing with small farmers.He should be conversant in French. He would provide technical advice andassistance to the SICR and the regional Hydraulics Service (SHRH) in matterspertaining to groundwater irrigation and participate in detailed surveysrequired for preparing quantity estimates; design of the well-irrigationsystem at Quartier Morin; construction and supervision of well-irrigationsystems; and in-service training of local staff related to groundwater irriga-tion. In addition, he would participate in studies related to extension ofwell irrigation and water supply throughout the project area and in therehabilitation of the swamp area near Cap-Haitien.

Agronomist

5. The agronomist should be a graduate in agronomy with at least fiveyears' experience in tropical and sub-tropical irrigated and rainfed crops,especially the food crops common to the project area. He should be familiarwith agricultural trials, seed production and training of extension agents.Part of his experience should be in developing countries and in projectsdealing with small farmers. He should be conversant in French. He would berequired to provide professional advice and assistance in all matters per-taining to agricultural production, concentrating in identifying researchneeds, carrying out programs of field trials and establishing liaison withother research workers in the country. He would actively participate in theprogram for improved seed production and provide technical instruction toextension staff during training programs.

Marketing/Agricultural Credit Specialist

6. The marketing/agricultural credit specialist should be a graduatein economic sciences or agricultural economics, with at least five years'experience in marketing of tropical or sub-tropical agricultural products andin extending agricultural credit, preferably to small farmers in developing

ANNEX 13Page 3

countries. He should be conversant in French. He would work in close co-

ordination with the regional office of the Bureau of Agricultural Credit (BCA)to advise, train and and assist its staff in the management of the agricul-

tural credit program and actively participate in efforts to introduce,improve and expand agricultural credit throughout the project area. In addi-

tion, he would participate in studies of marketing constraints to agricul-tural products in the project area and recommend changes in cropping patternsin response to variations of demand.

Road Construction Engineer

7. The road construction engineer should be a graduate in highway or civil

engineering with at least 10 years' experience in construction and maintenanceof roads and highways, preferably under tropical and sub-tropical conditions.

He should be conversant in French. The scope of his work would essentiallyencompass construction and maintenance of farm access and feeder roads onforce account and provision of technical advice to the regional Public Works

Service.

Community Development Officer

8. The community development officer should be a graduate in a socialscience or in education or a professional with at least five years' experienceas a rural extension officer. The essential requirement would be ability tocollect and interpret socioeconomic data related to the rural population andto communicate with small farmers in discussions of the various project

components. Knowledge of the theory and practice of teaching functionalliteracy would be desirable. He should be prepared to undertake long periods

of field work, and should be conversant in French and preferably in Creole. He

would participate in interdisciplinary surveys, collect census data, evaluate

social organizations and attitudes and collaborate with the project's Monitor-ing and Evaluation Unit in evaluation of key indicators selected for the

project. He would provide liaison with the Agricultural Extension and RuralAnimation Services and with Community Councils in the project area.

Chief Accountant

9. The chief accountant should be a graduate in accountancy, preferablya Certified Accountant, with at least five years' experience in program andbudget, payroll and general accountancy of a medium to large size enter-prise. He should be conversant in French. He would prepare reports on the

financial status of the project to be submitted to the Director of ODN, theProject Board and the Regional Coordinating Committee and comply with thefinancial reporting requirements and procedures of the Haitian Government and

of IDA.

October 6, 1976

ANNEX 13

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Appointment of Project Staff and Qualifications for Senior Staff

Schedule A

Timeframe for the Appointment of Project Staff and Number Requiredt,

Statua at End ofEffective Date July 1, 1977 July 1, 1978 Disbursement Period

ODNI/-Director 1 1Deputy Director 1 1Irrigation Specialist 1 1Groundwater Specialist 1Agronomist 1 1Credit/Marketing Specialist 1Road Construction Specialist 1Community Development Specialist 1 1Chief Accountant 1 1Accountant 1Agricultural Technician 1Support Staff 4 13 10

Sub-total 6 22 16

SICR/3

Irrigation Engineer 4 1Assistant Engineer 3 2Surveyor 6Accountant 3 3Water Charge Collector 3Support Staff 19 4 60

Sub-total 35 4 69

BCA-Agricultural Economist 1 1Marketing Officer 1 1Credit Extension Officer 3 3Accountant i 1Credii Extension Agent 5 2 4Support Staff 3 3

Sub-total 14 2 13

SVA&Extension Officer 3 1Extension Ment 20 10 10Support Staff 1 1

Sub-total 24 10 12

SAR/6Animation Agent 5 1 3Support Staff 1 1

Sub-total 6 1 4

Veterinary Assistant 2 2

TPTC/8Support Staff 15 5 6

SHRH/9Support Staff 2 4 3

Total 6 120 26 125

I/ The number of staff shown for the period teginning July 1, 1978,is in addition to the number of staff shown for July 1, 1977 andfor the effective date. The number of staff shown at the end ofthe diabursement Period is an estimate of the staff necessaryto maintain the required level of services in the project area.

2/ Annex 12, Table 2.3/ Annex 2, Table 3 and Table 6.4/ Annex 3, Table 1.5/ Annex 5.6/ Annex 6./ Annex 7.

8/ Annex 10.9/ Annex 11.

December 2, 1976

ANNEX 14Page 1

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Project Monitoring and Evaluation

Objectives

1. Project monitoring and evaluation would be carried out by the

Evaluation and Control Unit within the Agricultural Planning Unit of the

Department of Agriculture, Natural Resources and Rural Development (DARNDR),

which would produce feedback information for decision-making by both the

Project Board, the "Organisme de Developpement du Nord" (ODN) and the Regional

Coordinating Committee (Chart). The Unit's main responsibilities would be to:

(a) determine the key indicators reflecting the impact of the

project on the quality of rural life in the project area;

(b) measure the effectiveness and efficiency of project activities

in achieving the objectives of the project in its first phase;

(c) submit proposals to project management on ways to make neces-

sary adjustments to project goals and assumptions involved

in the project's design;

(d) provide the ODN and the Project Board with an independent

evaluation of the physical, social and financial progress of

the project and an identification of major project constraints;

and

(e) assess the extent to which the project could be expanded to

other parts of the Northern Department or replicated else-

where in Haiti.

Monitoring and Evaluation Responsibility

2. Under the project, the Evaluation and Control Unit of DARNDR would

be strengthened by a resident consultant with experience in project monitoring

and evaluation, supported by a staff of about five (Table 1). He would be

assisted by regional Government staff in the data collection necessary. The

qualifications of the specialist would be subject to Government approval in

consultation with IDA. The Unit would prepare a summary analysis report on

the project at least once each year, plus such other special reports to ODN

and/or the Project Board as needed. The summary report would be reviewed with

the project management and subsequently be made available to Government and

IDA, as well as to the Project Board and the Regional Coordinating Committee.

At the end of project implementation, the Unit would prepare a final summary

ANNEX 14Page 2

project evaluation, including specific recommendations for the second phaserural development project. In addition to monitoring and evaluating the pro-posed project, the above resident consultant would assist the DARNDR Evalua-tion and Control Unit to train its staff, to develop monitoring and evaluationmethods for rural projects in Haiti and to expand the Unit's activitiesnationwide.

3. On-going evaluation during project disbursement should aim atproducing revised projections of project effects and impact. Ex-post evalua-tions, scheduled after project disbursement, should aim at social and econo-mic assessment of all project effects and ultimate project impact, includingan assessment of the original objectives. In this way, both on-going andex-post evaluations would influence future planning of rural developmentprojects.

Project Key Indicators

4. The following indicators, which focus on the most crucial factorscontributing to the success of the project, would be observed in.the monitor-ing process:

(a) changes in incomes of participants, particularly members ofthe Agricultural Credit Societies (SACs);

(b) changes in volume and value of production arising from improvedagricultural practices as a result of extension efforts andfrom double cropping resulting from application of gravityand well irrigation;

(c) stabilization of prices for agricultural products resultingfrom improved storage facilities;

(d) changes in economic and social indicators such as patternsof consumption and spending, participation in education andhealth prôgrams, acceptance and implementation of extensionrecommendations, and other measures of human vell-being inthe project area;

(e) changes in land tenure and land use;

(f) improvement in rural cooperation through increased numbers ofSACs or other grouping of farmers;

(g) improvements in health conditions through provision of watersupplies;

(h) increased mobility of people and farm products resultingfrom an improved road network in the project area; and

(i) increased support by the project area population of a follow-uprural development project.

ANNEX 14Page 3

5. Precise types of measurements to be made and methods of data collec-tion and analyses would be developed by the DARNDR Evaluation and Control Unit.Some of the data needed would be generated by ODN records and other data wouldbe collected by the Unit from direct surveys conducted by is staff or frompublic and private agencies operating in the project area or in other parts ofthe country. During year 1, the Unit would prepare detailed terms of referenceand a timetable for completion of the monitoring and evaluation task, whichwould be reviewed by the ODN and the Project Board and submitted to IDAfor approval no later than one year after the signing of the Credit. Table 1gives estimated costs as to the strengthening of the DARNDR Evaluation andControl Unit.

Project Design Summary

6. A "Project Design Summary and Evaluation Framework" is shown inTable 2. The vertical organization of the chart presents the hierarchy ofobjectives and characterizes the project as a set of linked hypothesis,fostering the analytical sorting of evidence that will be required for thepurpose of evaluation. Futhermore, for each level in the hierarchy of objec-tives, indicators have been specified that will allow actual results to bemeasured. Similarly, for each hierarchy of objectives, specific mechanismsare identified through which accomplishment of project objectives can beverified. The fourth colunn in Table 2 lists some critical assumptions,some of which are project risks, affecting the success or failure of theproject components. These assumptions can influence the extent to whichproject objectives would be achieved.

December 6, 1976

HAITI

RURAL DEVELOPMENT PROJECT IN TUE NORTHERN DEPARTNENT

Costs of Project Monitoring and Evaluation

(G)

---------------------------------------Project Year------------------------------------------Unit 1 2 3 4 5-8Cost No. Cost No. Cost No. Cost No. Cost No. Cost

Investment

Vehicles and Equipment

Four-wheel drive vehiclel/ 20,000 - - 1 20,000Calculator 500 - - 2 1,000Typewriter 1,200 - - 2 2,400Office furniture - - - - 7,500Miscellaneous equipment - - - - 2,500

Total Investment Costs 33.400

Operating Costs

Salaries

Head of unit 275,000 - - 1 275,000 1 275,000 1 275,000 1 21,800Agricultural Œconomist - - - 1 21,800 1 21,800 1 21,800 - -Sociologist - - - 1 21,800 1 21,800 1 21,800 1 21,800Secretary - - - 1 8,400 1 8,400 1 8,400 1 8,400Driver - - - _ 5000 1 5.000 1 5.000 1 5.000

Sub-total 332,000 332.000 332,000 57,000

Other Expenses

Offices,21-Running costs of vehicle3/ 8,000 - - 1 8,000 1 8,000 1 8,000 1 8,000Office expenses - - - - 6,000 - 6,000 - 6,000 - 3,000Return flight ticket3 Cap-Haitien/Port-

au-Prince 200 - i il 2,200 il 2,200 il 2,200 9 1,800Daily allowances for Cap-Haicien - - - - 20,000 - 20,000 - 20,000 - 14,500Miscellaneous - - - - 5,000 - 5,000 - 5,000 - 2.500

Sub-total 41,200 41,200 41,200 29,800

Total Operating Costs 373,200 373,200 373,200 86,800

1/ Short-wheel base - Isuzu or equivalent.2/ Will be provided by DARNDR. _3/ 20,000 km per year at G 0.4 per km, for fuel. lubricanta,

spare parts, repair and insurance.

December 2, 1976

hAIT I

RURAL DEVELOPMEhT PROJECT IN THE NORThENiS DEPARTMENT

Prajeet Desigu Sse-ry -ed Evalution Pracessork

KIflaRchT OP OBJECTIVES OBJECTIVELI VERIFIPBLE INDICATSMCProject Lnpact fesurn oA Àohieeent of Praiset lact Zeneficiartes M MERAiS OF VHAIPICATIOni cuTîCA ASSUhPT1oDSTo ifprovo troditiosel ugrirultoral production jr 30,00 rural furilies of uhith 907i ere le abolute poverty Ojcivesth. projeot urea oed raise living standards of tch (i.o. e bolet VS$87 pr oupit pst yo) etsrural population through a cn. prlehenssvn effort.- 1,001 urbue failles or 1 f th. projer t o th. qiai ty of rural lif r double *ipping8 au 85% of Quartier Morin

Praleot Effeots Coditions Indiostinu Aohievese-t af Pro1ct Effectu in projest are. rera *nd 70% of St. Raphal aec.1. Increcce ugriultural productioe -rd cake it Coeeumptiee - 30,000 rural failies uould bA ubls te incresee

inca vuleerable te future drougbt. Uheir subuutueca consunption by 10 te 30%.2. Redus utarabg losses sud provide possibility income - Annual oc.. iromes frotu egrieulturel acd livestock jeot ectiviries ij achieving proet objer- on 1,000 h..

fer -ismtrs to sal uhen prions are higher cttivities for 6,000 fueilire uould inors.se fra US$60 ti (2) Impiementanise of serei *ch_ ouid sub-Cnet dirnctly farer ba-.teu). US$150 pst ficlly. 3 ,e2)reeul eprIopsealsra ap ta taiysti- fb saiit -hruolud sed

3. Itressbs.o. n-ptin. Eup1oyet - Poiudler -eplay t of esi fnact; te cu ke npc-a aay d tjesteet t prejet o prodactile ethr eh. seid farmere cns4. Providenons Poometitiroe recAdin aud euibelliyo- 2.k.m..a adetcee-dtpetothfkirlnd l ;t dts -

he ft h-zrd 2of illi. 240 .y tou ofil. la.c 7 o ftb. o bj00i- anda ofupt.. lo rtedi.tb. artad -nd utraget

meet ni toues. ~~~~~~~~170 permanet jobs during diebersemet pnnld; us.betvccdasptsa n rdcel ocsaic e rele

7,F-iitt C x-so ndill nat fIghe,15tn et theef,20tonb o pok tiond 24do f iff As« xtn owhc rtetcnbeepn.d*h olti. Buidin to ffectiv

..Ceper trans.port for ugietrlinputs ued 120 permanet jobstratr.atialdfcuts.Blin sEoiaceoutput, Frdu.ti.. - 1. y- 6 -... l i.tr-ot.1 prd.~ti.. .. uld be 4. Pruvidn iedspaudet eVeIucti- physicel, hesion -esId requits tien byond the dis.-

6. lapreve g-eral hygienoi cssditione, rmd.cc 27,000 tees oU sugca...no 340 tees ni mains; 7f tee.. for u-raba; ced.idnsd ii suje pro jsctcathetin.j..tbr. tp~d

u.isrsd ietctea dîn..asses dcrease if tons ai ri.e; 120 tan oU beans; tif tons ai bananas; 500 tonsh-Ith busads. of pea; 240 tees of manioc; 75 tons ni tobuco..; 300 teen ni Markceting, resdit ccd graine tnrageF7.Pairasepi oncdimlntto o euna 55 tan. ni beof; 220 one ai p-rk; ced 240 too nfi ik. 5. A...e.ss etent te hbiob prajact a.v be eapasded ehasse. meulA 1ed te fetvother rural dnvelopeunt projaots. Ail incremersl praduction corth US$L militn . n..ally i 1976 te other parts fithe Nsrthere Depart-eot an price stubilieati-n le prsject crea *nd

terme. eleher e in Raiti te eigifitcet is Irnses le f-rmers' tncoee

Pro1ect Outeuts Magnitud' of OntCd -f1 1Irrigated ara. aith se-fart developent. 1.1 2,000 ha in Qanrtier M ni ad 1ut00 ht i St Rsphael Stîffien (3) Clietlc randitione oc 30,000 be ef r-infed1 2Deep - llQ 1r2 14 da 0p welb le S. R n C.suutt laond, it dacreasie trend in preeipitetin.21. Sheptmlle 1.2ts 14 Assp t.1suils..2.1 Sbort-ter- marketing credite. 2.1 Additional tee te four -abth' etarge nf gr.ina. Agricultural cneo iet2.2 Mediim-tere ievttnt eredit for simple greai 2.2 3- t 4-ton containers on endium-sised fon; 50-tee secînlegiet 57,000 sclhulders ced 3U medie-sise

uterage taclîîs. iaag inr salecttîve ge...p. aIf l0 ACs, Reglinu1 Gnvereest Staff fermer -Iud.d trbngb iprs-d s..ed produc-

2.3 Mediu -teo isestet crsdit for farn ieprvomeeta. 3.1 in ddition to eristing rtri; plats, On trial plots orld Co nt ed vn r Piancna eren snd rr; -tdt, inc-..s. pradun tien.3.1 Ieproved seed prsduction *nd upplied research and be esablished, cdding up te 3 hb; producti ni of peo vd cIvt *nd Fin n,d

participati.n ln dastration sffortt s..d on 12 ha. onî sîoo Poad=tis a rec inle 24$000 rural Ili..3.2-4 Impromsd agriculcured ced vetsiarp corvicesa 3.2 One emistsio ugent for 200 farnte.h Esips $9 mai P uaniB 0u.4. Improev t nf municipal crkta *n3 cid plete 3.3 Ove rural animation agent for eve c.o.. .... Otheon

renevation if abattoir building. . 53.5 and feedr rous in Plaine du Nord; 13 kv of feeder Tetal $231,000, anor 3% nf prjee5. zp ... ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~nt befars neieece Af tee yecr 5 -et fa-rer mold be chie temrvsed e est ruaded ec6ering r4ads and 27 e ef f iv adasr i. Or. Raphp yl. predure thrIr s-e icprntvd s*cds.

6 iebanurmeet pnd. 6. 400 bnd-dug sell ced fi-e sl outre spply U ybtes Monitoring Officer muld ba fieceed by UNDP.b. Rorslpetbe Ratev dur u rpply. (5)(6) Maintenance nf rural itestructur.7-1 Ornavice. de Dev_loppevt de Nord.

7.2 Monitoring *nd ivaluntîse lait.7.2 Mu.i__ri_g_-d_Unir (7) Caliber nf prnject eca.gameat *nd regi-eal

Pro.met Inouts/Activites uantity f IPtgce taff, epeclly qulity f rurl1.1 Rhabil1itation ni irigatisi sysia. I. àess 2, Tables1- Ohurt-ter. eitee mcd faluc1eia Zta...aion.

1.2 Ext neies ef irrigation end draingSe cvanl systss. 2. Annx 3, Table 4 iede esinly objectiv 1, 2, ad 3,1.3 On-fen devebuplcet. 3. enae 4,_, 6, and 7 y d sihlt-tru reeg org f 4.1.4 Ceettutise 5f desp ails. 4. A.sser 9 e 2. Provision ef oredit. 35. Aner lU, Tebîrs 1-3 .e-nnMvtniacdUauto3.1 AgrIcultors1 trials and s.ed prsduoti. 6. A_ 1Lo-ts Monitoring andll3.2 Esicfarcemeet of cgrniulturtl s-tenion services 7. Anne.- 12, 13 au 14 coulA iaolude aiely bjcotives 4 ad 5.3.3 Reiniercemeet of rural sni_ti carmines.3.4 SttrngthsmiLg sf regiosl Vetrlnery p rvice.4. Rehabilitation end improveneet nf mueicipe1 markets

and abattoir.5. Constructis af rosds.6, Csetruetion ai rural potable mater cupply systeca7.1 Plamleg, cosrdination, upervision cnd cdmisistra-

tien f preject icpiectction.7.2 Monitoring snd cvaluation.

1/ Th. rural developsten project'a stivities cu-

plemeet niarts in dducatison and health i thApreojet acre and tAs imipat nf thr projeot nuetbA evalontid glebslly.

ANX 1I

b&ITI

RURAL DEvEL0PMENT pRojOCT IN THE IORTElR DEPARMEN

ssu-r7 of Proclet CoCO.

7. of CoOst2---'0------------ ------------- 5'0------------ be f-r Foreis.

Local Fereign Tot-l Loc-l ForeUr TotaI Coeti,,gel LEchag

1. Aito

Q-artier M-ori 4,125 1,975 6,100 S25.0 395.0 1,220.0 32St. R phsel 2,300 1,005 3,305 460.0 201.0 661.0 30We11 irrigatioc 1,510 1,305 2,815 302.0 261.0 363.0 46Ocildi.gs 60 60 120 12.0 12.0 24.0 50Vehicle. nd .q.sp_t 112 2,270 2,382 22.4 454.0 476.4 95LC'd co peaOion 125 - 125 25.0 - 25.0Scierie. 1.566 - 1.566 313.2 - 313.2

Sob-tota1 9.798 6.613 1.959.6 1.323.0 3.282.6 36 40

2. A9gricît.r-1 Credit

S.ildi.ge 21 22 43 4.2 4.4 8.6 50Vebicla. cnd cq.ip-.t 5 99 104 1.0 19.8 20.8S.îeri.e 722 - 722 144.4 _ 144.4Roceing coc. t f vehicle. 29 115 144 5.8 23.0 28.8 80otùer capecees md .i,teeaece 55 56 111 11.0 11.2 22.2 50Mediuo-t-r credit 100 2,900 3,00f 20.0 580.0 600.0 97Pr.dcction credit . 1,000 1,000 - 200.0 200.0 100

S.b-t.ta1 932 4"192 5,124 186.4 683.4 1.024.8 il 82

3. Trials -d Seed

V.6hc1ec ced eqcip-et 7 139 146 1.4 27.8 29.2 95operctie co.ts 150 122 272 30.0 24.4 54.4 45

S.b-tot.1 157 261 418 31.4 52.2 63.6 1 62

4. E.ten-ion Services

Ocidieg. 49 49 98 9.8 9.8 19.6 . 50V hicles nd eq.ipoet 14 268 282 2.8 53.6 56.4 959î1or-cs 1,670 - 1,670 334.0 - 334.0Runcicg co... of c*hic1el 85 342 427 17.0 65.4 85.4 60oth0 r espe.ses ... . oîteearce 69 69 138 13.8 13.8 27.6 50

S0b-total 1,887 728 2,615 377.4 145.6 523.0 6 28

5. Acieci Oeaîth

Bsildisge 13 14 27 2.6 2.B 5.4 50Vehicle, .ed eqsipcect 1 16 19 0.2 3.6 3.8 95Saîcries 80 - 80 - 16.0 -Roceicg cost. cf vchic.le 5 18 23 1.0 3.6 4.6 B0Vaccices ccd _dîccticce 14 275 289 2.8 55 57.8 95Hther_epensessd . aieteca,,c_ 3 3 6 0.6 0.6 1.2 50

Ssb-total 116 328 444 23.2 65.6 88.8 1 74

6. Mahketo ccd Abattoir

cap-b'aitiec - Contr-1

M-rk-t 75 299 374 15 59.8 74.8 80- Abott.ir Marbet 67 158 225 13.4 31.6 45.0 70

St. Raphcel - Musicip.1 Morket 17 41 58 3.4 8.2 11.6 70CaP-Heities - Abattoir 30 118 148 6.0 23.6 29.6 80

s.b-tot.l 189 616 805 37.8 123.2 161.0 2 77

7. Roods

C .. cot tieo 1,986 4,462 5,950 297.6 892.4 1,190 75Lsdc .epceioc 60 - 60 12 - 12

Mai,ton nce 182 46 228 36.4 9.2 45.6 20

S1b-total 1,730 4,508 6,238 346.0 901.6 1.247.6 14 72

B. Pot-ble Water 258 601 859 51.6 120.2 171.8 2 70

9. Proicit Ad sicistraticc

Ocildicge 571 572 1,143 114.2 114.4 228.6 50V.hicle.. cd eq.ipcnt 5710 195 205 2.0 39.0 41.0 95Sal_rie. 727 6,700 7,427 145.4 1,340.0 1,485.4 90Co.clct-nt. - 1,225 1,225 - 245.0 245.0 100Rsosicg coste cf vohiclos 47 187 234 9.4 37.4 46.8 ô0other ccpccces nd t,ictessce 306 596 904 61.2 119.6 18008 50

S.b-tot.l 1,661 9,477 118136 332.2 1.695.4 2.227.6 25 85

10. project Monitringc

Vehiclce ccd eqcipccct 2 31 33 0.4 6.2 6,6 95Salaries 199 797 996 39.8 159.4 199.2 80oth0 r c.pe.es 62 62 124 12.4 12.4 24.8 50

Scb-tt.l 263 590 1,153 52.6 178.0 230.6 2 78

Total B..0 Cost 16,991 28,216 45,207 3,3962 5,643.2 9,041.4 100 62

Phyciccl co-tlicgcces 2,523 2.566 5,089 504.6 513.2 1,017.6 Il 50pricc.coccicoeccis 6,594 10.950 17,544 1,318.8 2,190.0 3,508.8 39 62

S.b-tot.l 9,117 13,516 22,633 1,823.4 2,703.2 4,526.6 50 -

Tot-l Prclcct Coost 26,108 41,732 67.840 5,221.6 8,346.4 13,568.0 _ 61

Octob-r 1, 1976

ANNEX 16

P9ITI

RURAL D IVEVLPHENT PURfCT TI THE NDRTHERN DePAIUI

Pro1nct Co Pha.ing

1-_Y_a -3 4 Total

1. rrgio

Quartier llorin 1,400 2,525 1,750 425 6,100

St. R.phb l - 800 1,400 1,105 3,305a.11 irrig.tion - 615 1,100 1,100 2,815

BJildinOs 120 - - - 120Vehi.l1O *nd equip_nt 1,902 60 60 360 2,382

Land noMpenatioo 35 45 35 10 125Salaries 402 424 370 370 1.566

Sub-total 3,859 4.469 4,715 3,370 16,413

2. Agriculteraî Credit

Buildings 43 - - 43Vehicles nd equip_nt 104 - - - 104Salaries 164 186 186 186 722Rueing roste o2 vehiolea 24 24 24 72 144Other expenees And intenance 30 32 32 17 111Mediv--tem cr-dit 86 461 920 1,533 3,000Production oredit 68 432 500 _ 1,000

Sub-total 519 1.135 1,662 1,80H 5,124

3. Trial. end Seed

V.hicles end equip-.t 146 - - - 146

Operating co.tO 42 62 71 97 272

Sub-total 188 62 71 97 418

4. Extension Service

Boîldi.g. 98 - - - 98Vehicles end oq.ipment 282 - - - 282Salaries 417 418 417 418 1,670

RuinoIn .. ste oE v-hicle 78 78 78 193 427

Other xpon.e. and ,intenonce 34 40 40 24 138

sub-total 909 536 535 635 2,615

5. Aniîl health

B.ildi.g. 27 - - 27

Vehicle. snd oquip.ent 19 - - 19Ssl1rieo 20 20 20 20 80

Bunning -oste et vohicles 3 3 3 14 23

Vaccines *nd ,edicetion 45 65 86 93 289Other expenses and mitent noe 1 2 2 1 6

Sub-to.cl 115 90 Ili 128 444

6. Markets end Abattoir

Cap-Raition - Central Miorkoot 374 _ 374

- Abattoir Nlsrket 225 - - - 225St. Raphael-unicipal Menr - 58 - 58Cap-Raitien - Abattoir 148 - - - 148

Sub-total 747 58 - _ 805

7. Roada

Construction 2,230 1,250 1,700 770 5,950Ltnd co pensatinn 25 25 10 60

Maintenenre - IH _ 70 140 22H

Sub-total 2,230 1.293 1,795 920 62238

8. Pgtabl Water 113 349 357 40 859

9. Proient Adainittration

B.ildings 1.143 - - - 1,143Vehi.les ad eq.ipent 205 - - - 205

Salaries 1857 1,856 1,857 1,857 7,427Conssltants 420 280 420 105 1,225Ruming .o.t. of vehi.les 49 49 48 88 234

Other expen.e. and naintenanc. 224 210 260 210 904

Sub-tot.1 3.898 2,395 2,585 2,260 11.138

10. Proje.t Nonitoring

Vehicle- nd eq.ip.,nt - 33 - - 33

Salaries - 332 332 332 996

Other -p-.ses. 41 42 41 124

Sub-total - 406 374 373 1.153

Total Base Cnet 12,578 10.793 12,205 9 631 45,207

Physical contingencies 1,140 1,361 1,601 987 5089

Price contingencies 2 Â1 S 7 4.915 5.282 16.464

S.b-total 3.611 5.157 6.516 6,269 21.553

Total Proie.t Coste 16.189 1S.950 18.721 15,900 66,760

Decosber 3, 1976

AUN 17

bAITI

RURAL DEVZLOPhENT PROJ8CT INi THE IIOTH1RN DEPARTNIIfT

VlorldGovre.nt Feod Prear.. IDA Total

1. Irrigati

Quartier Mor-n 305 2,500 3.295 6,100

StiR ph_l 165 1,500 1,640 3,305

9.11i îrrîgtîoa 4 0 2,174 2,815

Buildinp 6 114 120Vabirls and equipoent 119 2,263 2,382

d enaion 125 125Salaries 1.566 1,566

S.b-t.ta1 2,427 4,500 9.486 16.413

2. AericuîtOtCl Cuadit

Buildings 2 41 43Vehi.les sud equip-ut S 99 104

Salaries 722 - 722Runoing roits of -ahi.les 7 137 144

Othar p eusees sd seintenre 51/ 106 111Msdi î-tefl credit 100- 2,900 3.000

Production credit 1,000 1,000

Sub-t.tal 841 4,283 5_124

3. Triels snd Saed

'ahirlea s d equipx nt 7 139 146

Oparatins coatc 13 259 272

Sub-total 20 398 418

4. EEt.nlisu Sre"icas

Buildinga 5 93 98Vehicles *rd equipaent 14 268 282

Saîsrlea 1,670 - 1,670Sem.in.g -ots of vehicle- 21 406 427Other eppe.se. *nd aintence 7 131 138

S.b-t.t.l 1,717 898 2.615

5. Anial He-lth

Building, 2 25 27Vehi.les sud equipuont I 18 19Salaries 80 . 80

R.uning .osts of vehielea 1 22 23

Verrines sd aadiretion 14 275 289

Othar . .penss. sd aainîm, nce I 5 6

S.b-to.tl 99 345 444

6. M-rket sud Absttiir

Cap-Hsitieu - Central MerkSt 18 356 374

- Abattoir Yerkat il 214 225

St. Raphael - Manicipal lrket 3 35 58Cap-H.itien - Abattoir 8 140 148

S.b-t.tal 40 765 805

7. Roada

Conatruetisu 300 450 5,200 5,950L-nd conp.n.stin 60 - _ 60

Malutenaurs 11 50 167 228

S.b-tota1 371 500 5,367 6,238

8. Potabla WVter 43 816 859

9. Prolect Ad iuiatration

Buildi.g. 57 1,086 1,143Vehirle sud eq.ip.ent 10 19S 205

S laries 727 6,700 7,427Co... 1tant. I 1.225 1,225Running resut f -hicI- 11 223 234Other axpense. .nd sinierarre 45 859 904

S.b-t.t.l' 8S0 10,288 11 .138

10. Proieri Monitoring

Vehirles sud eqeipue-t 2 31 33Salaris 171 825 996Oth-r oapersea 6 118 124

Sub-t.t.l 179 974 1,153

Totl Bas. C.at 6,587 5S000 33,620 45,207

Phy.iral rontingancies 816 - 4273 5.089Price ro.tingenrias 2.456 1.901 12.107 16.464

Sob-total 3,272 1 901 16.380 21.553

Total Pre.elt Ceets s 8c8 6.901 50,000 66.760

Total ProeIt Coat (US$) 1,972 1,380 10,000 13.352

Perren.tge cf Tot-l Coet 14.8 10.3 74.9 100 0

V Inc lude- contribrtiena of mediun- si so ferara te Agricultur1 credit.

De.a.ber 3, 1976

ANNEX 18

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Estimated Schedule of Disbursement

(US$'000)

IDA Fiscal Year, Disbursement Cumulative Disbursement

End of Quarter per Quarter at End of Quarter

1978

September 30, 1977 400 400

December 31, 1977 600 1,000

March 31, 1978 700 1,700

June 30, 1978 700 2,400

1979

September 30, 1978 600 3,000

December 31, 1978 600 3,600

March 31, 1979 600 4,200

June 30, 1979 600 4,800

1980

September 30, 1979 700 5,500

December 31, 1979 700 6,200

March 31, 1980 700 6,900

June 30, 1981 700 7,600

1981

September 30, 1980 600 8,200

December 31, 1980 600 8,800

March 31, 1981 600 9,400

June 30, 1981 600 10,000

October 1. 1976

Page 1

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Farm Models

1. Farm models are representative of the three main agricultural con-ditions in the project area, namely, (a) an irrigated unit at an altitudeof about 400 m in the lower rainfall (average 850 mm per annum) area ofSt. Raphael; (b) two irrigated units, one from surface water and one fromwells, at an altitude of about 15 m in the higher rainfall (average 1,300 mmper annum) area of Quartier Morin; and (c) a rainfed unit in the non-irrigatedarea of the Western Northern Plain.

2. The size of the irrigated units in St. Raphael and Quartier Morinareas was established at 10 ha, which is closely related to the size estab-lished by the Bureau of Agricultural Credit (BCA) for an Agricultural CreditSociety (SAC), which is 5 to 10 carreaux. These units are assuméd to be oper-ated individually by the members of the SAC, but each farm model represents,a productive unit. For the rainfed area, a 15-ha size has been establishedin order to achieve a unit of similar production level without the benefit ofirrigation.

3. For each of the units, seven families have been assumed, this num-ber constituting the minimal number of members for a SAC. Since the unit istreated as a whole in the model, no attempt has been made to distribute sizesamong the seven operators. Each family has been assigned an average of fivemembers, which is consistent with national and regional averages (Annex 1).

4. The selection of crops for the models is based on the actual cropsand crop varieties grown in each area, since the project does not foreseeintroduction of new crops until the agricultural trial program would even-tually recommend, together with the Organisme de Developpement du Nord (ODN)marketing specialist, new crops and/or varieties. In the area of St. Raphael,sugarcane is grown mainly for on-farm consumption, with limited amounts beingutilized for syrup; but, since the latter is normally grown by the processor,it was not introduced as a cash crop in the model. Other crops grown in thearea, including maize, beans, bananas, yams, manioc, tobacco and rice aremainly for on-farm consumption, except for vegetables (mainly onions, tomatoesand carrots), which are sold in Cap-Haitien and Port-au-Prince. In QuartierMorin, sugarcane dominates the cropping pattern, with an assured market in theCaldos sugar mill. Additional crops such as maize, beans and yams are grownmainly for on-farm consumption. In the rainfed areas, sugarcane also plays animportant role although the distance from the sugar mill prevents economicprocessing for export. A large part is consumed on the farm and surpluses are

ANNEX 19Page 2

sold to numerous small distilleries or mills for the manufacture of alcohol("clairin") or of block sugar ("rapadou"). In this area, tobacco is becomingan important cash crop due to extension efforts of the national tobaccomanufacturers.

5. Present yields used for the farm model projections are based onaverage rainfall conditions and were established after discussions withfarmers.and community councils in representative locations of the projectarea. They were further supported by local Agricultural Extension Servicestaff and agricultural agents from the sugar mill.

6. Incremental yields were established through correlation with con-servative yields in the Dominican Republic and Jamaica, under comparableconditions of soils and rainfall and assuming an improved level of manage-ment. Such yields are possible for Haitian farmers to achieve during thefour-year disbursements period with the improvements provided by the proj-ect. In the St. Raphael and Quartier Morin areas, yields are the result ofimproved agricultural management practices through intensive extensionefforts, increased farm inputs and double cropping of some of.the good cropsthrough rehabilitation and expansion of the irrigation systems. Incrementsin sugarcane yields are not substantially larger in the irrigated than inthe rainfed areas because of the low yielding sugarcane variety presentlycultivated and because sugarcane is a full-year crop and rainfall in thearea is not so much insufficient as irregularly distributed. Therefore,the improved irrigation system at Quartier Morin would assure regular pro-duction (on which the local sugar mill depends) and guarantee what has beenestimated as a relatively modest yield increase until results from thetrials at the Caldos sugar mill allow the introduction of varieties withsignificantly higher yields and sugar content.

7. Extensive use of fertilizers and pesticides can be recommendedonly once their economic use has been successfully tested and demonstratedby ODN. The yields assumed for the farm models are therefore, mainly based onthe expected effects of (a) strengthening the Agricultural Extension Service(SVA) and the Rural Animation Service (SAR); (b) the recognized ability of theHaitian farmer to absorb and apply new agricultural practices; (c) the avail-ability of improved seed; and (d) short-term credit for small farmers to covercosts of some fertilizer, pesticides, improved seeds, livestock medication,and such, as well as medium-term credit to purchase draft oxen, yokes, plows,sprayers, irrigation pumps and the like. In relation to actual yields in theDominican Republic and Haiti under similar conditions and level of improvedmanagement, the assumed yield increases can be considered as rather conser-vative.

8. Projected incremental livestock production is based on (a) in-creased output of crop residues as a result of expected incremental agri-cultural production due to the project, with crop residues from sugarcane,grain and vegetable cultivation preponderantly benefitting cattle raising;(b) the introduction of efficient animal health services expected to benefit

ANNEX 19Page 3

mainly pork and poultry production; and (c) improved animal husbandry prac-tices to be extended by the agents of the Animal Health and AgriculturalExtension Services.

9. On-farm consumption at subsistence level is extremely low in Haiti,since even in the smaller farms (average 0.5 ha) a small amount of agricul-tural production is being reserved for sale or barter. The on-farm consump-tion, therefore, has been assumed to amount to about 85% of production duringthe first three years of the project and to level off thereafter.

10. Farmgate prices for agricultural products and investment andoperating costs reflect mid-harvest 1976 prices. Labor cost has been off-setby on-farm consumption, except for the Quartier Morin irrigation districtwhere additional labor is required during harvest of sugarcane. The legalsalary rate of G 6.00 per day (US$1.20) was applied for compensating addi-tional laborers.

October 6, 1976

HAITI

RURAL DEVELOPMENT PROJECT 1N TBE NOR TI8i DEPARTMENT

Farm Models1/

Model 1: 10-ha Farm Unit in the Irrigated Area of St. Raphael

Production and Production Value

(G)

Crop Production2 Hectareas. Yielda ton/ha Before ---------------- Year----------------

______Production2/ Unit Years 1-4 Years 1-4 Development 1 3- 4-20

4/ -- _ _ _

Sugarcane Tons 1.0 1.0 1.0 1.0 35 35 40 50 35.0 35.0 40.0 50.0 50.0

Maize " 1.2 1.2 1.2 2.4 1.5 1.5 2.0 3.0 1.8 1.8 2.4 3.6 7.2

Beans " 1.2 1.2 1.2 1.8 1.0 1.0 1.5 2.0 1.2 1.2 1.8 2.4 3.6

Bananas " 1.2 1.2 1.2 1.2 3.0 3.0 4.0 5.0 3.6 3.6 4.8 6.0 6.0

Yams " 1.0 1.0 1.0 1.5 4.0 4.0 5.0 6.0 4.0 4.0 5.0 6.0 9.0

Manioc " 1.0 1.0 1.0 1.0 4.0 4.0 4.5 5.0 4.0 4.0 4.5 5.0 5.0

Tobacco 1.2 1.2 1.2 1.2 .4 .4 .5 .6 .5 .5 .6 .8 .8

Rice " 1.0 1.0 1.0 1.0 1.5 1.5 2.0 3.0 1.5 1.5 2.0 3.0 3.0

Legumes5/ " 1.2 1.2 1.2 2.4 4.0 4.0 4.5 5.0 4.8 4.8 5.4 6.0 12.0

Livestock Production

Catt6

g- kg liveweight 175 175 200 400 400

Pigs- kg liveweight 350 500 600 700 700

Value of Crop Production Farmugatt Prices-

Maize 1.3 2,340 2,340 3,120 4,680 9,360

Beans 3.0 3,600 3,600 5,400 7,200 10,800

Bananas 0.5 1,800 1,800 2,400 3,000 3,000

Yams 1.0 4,000 4,000 5,000 6,000 9,000

Manioc 1.0 4,000 4,000 4,500 5,000 6,000

Tobacco 3.0 1,500 1,500 1,800 2,400 2,400

Rice 9/ 3.0 4,500 4,500 6,000 9,000 9,000

Legumes- 0.5 2,400 2,400 2,700 3,000 6.000

Sub-total 24,140 24,140 30,920 40,28D 55,560

Value of Animal Production Prices

10/ (G/kg)Beefsj/ 4.0 350 350 400 800 800

Pork- 5.0 1,225 1,750 2,100 2,450 2,450

Sub-total 1,575 2.100 2.500 3.250 3.250

Total Value of Production 25,715 26.240 3 43530 5

12/2575 224 3340581

Less: On-farm Consumption 21,858 22,304 28,407 36,50 36,950

Total Cash Sales 3 857 3.936 5,013 6,580 21,860

1/ Operated by seven families (average farm size = 1.45 ha) with five members each.

2/ Double cropping for maize, beans, yams, and legumes inyear 4 when irrigation syatem is fully operative.

3/ With improved farming practices resulting from extension efforts.

4/ 107. of unit is assumed in sugarcane exclusively for human and animal on-farm consumption.

5/ Tomatoes = 0.2 ton/ha; carrots = 8 tons/ha; and onions = 3 tons/ha.

6/ Assumes two draft oxen before development and purchase of two additional draft oxen in year 1.

7/ Average liveweight 50 kg per animal.

8/ Assarmes stabilization of prices due to storage facilities and marketing credit.

9/ Average price based on tomatoes (G.50/kg), carrots (G.20/kg), and onions (G.70/kg).

10/ Dressing percentage, 507"

11/ Dressing percentage, 707.12/ Assumes 857 on-farm consuMpLion in years 1-3 and then leveling off after year 4.

ANNEX 19Table 2

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Farm Models

Model 1: 10-ha Farm Unit in the Irrigated Area of St. Rapahel-/

Investment and Operating Costs(G)

3 fore - -------------Year------------------Invctunt Dewlon»t ,1 2 3 4-20

ûtn^cqv~~~2/ ° 3 75°0

Draft OM 1.200

EGuiDmet L2. 1,000 600

Plow 1,000Cultivator 1,000Sprayer 300TOa1& 3/a 200 300Storagc raciiitieè' 1,000

tbtal Investment Costa 8,525 4.750 4,350

Operating Conte

Operation and Maintenanceof Irrigation Scheme

9OO

Labor5 /

materal 551 551 2 6 24 ve rtiliscr/ P, ,131 =

P..ticides7/ 210 420Seed-8/ 551 551 551 602 1,204

Wat.ri/ 160

Liv.utock 205 205 4b2 51d 52L&vaccines ,LO,' 22 38 414Dru& 1-1/ 30 30 30MWnralc 20 40 40Operation of drat

oxen 205 205 410 410 410

Equipment Maintenance and 166 181 196Repair L4•I

Total Operating Conta 756 756 3f264 5.642

1/ See 1/ in Model 1.

2/ Farm unit's contribution to cost of irrigation rehabilitation (50%) ta be repaidin 20 years starting in year 5.

3/ Includes hoes, spades, machetes, and the like and purchase of tools for effectiveuse of irrigation.

4/ For 3-ton on-farm grain storage container serving 10-ha unit or proportionate costof larger community storage.

5/ Family labor costs are offset by on-farm consumption (see Table 1).6/ Fertilizer, mainly for cash crops, is assumed to increase from 50% in year 2

to 100% in years 3-20.7/ Pesticides, mainly for tabacco and legumes, are assumed to increase to 100% in

year 3.8/ Improved seed for corn, beans, tobacco, and legumes in years 3 to 20.9/ Water charges based on present tax of G 16/ha/year would be introduced in

year 4 when irrigation scheme is fully operative.10/ Assumes vaccination for Hog Cholera and New Castle disease (see Annex 7).11/ Assumes drenching of draft oxen for liver flukes and helminths (see Annex 7).12/ 5% of investment cost.

June 22, 1976

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Farm Models

Model 1: 10-ha Farm Unit in the Irrigated Area of St. Raphael

Financial Pro ections

------------ ------------------------------------------------------ Year --------------------------------------------------------------------

Categtory O 1 2 3 4 5 6 7 8 9 10 il 12 13 14 15

A. CASH INFLOW

Sales 3,857 3,936 5,013 6,520 21,860 21,860 21,860 21,860 21,860 21,860 21,860 21,860 21,860 21,860 21,860 21,860

Development loanl/ - 3,525 1,000 300 - - - - - - - - - - - -

Production loan.l/ - - 2,700 2,700 - - - - - - - - - -

Previous year cash balance - 578 91A 1.379 1.450 3,480 4.210 5-795 7,380 8.965 7.550 6.135 4J720 3,305 4.885 6.470

Total Cash Inflow 3,857 8,039 9,631 10,899 23,310 25,340 26,070 27,655 29,240 30,825 29,410 27,995 26,580 25,165 26,745 28,330

B. CASH OUTFLOW

Development investment - 3,525 1,000 300 - - - - - - - - - - - -

Production costs 756 756 3,264 5,642 9,650 9,650 9,650 9,650 9,650 9,650 9,650 9,650 9,650 9,650 9,650 9,650

Medium-term

payment - 317 407 531 2,817 2,817 - - - - - - - - - _

Short-term

payment - 243 297 2,700 2,700 - - - - - - - - - -

Irrigation schemeamortization - - - - 625 625 625 625 625 625 625 625 625 625 625 625

Cash withdrawal 2,523 2.523 3.338 2,679 4,038 5,338 10.000 10.000 10.000 13.000 13.000 13.000 13.000 10,000 10,000 10.000

Total Cash Outflow 3,279 7,121 8,252 9,449 19,830 21,130 20,275 20,275 20,275 23,275 23,275 23,275 23,275 20,275 20,275 20,275

C. EXPECTED CASH BALANCEAT YEAR'S END 578 918 1,379 1,450 3,480 4,210 5,795 7,380 8,965 7,550 6,135 4,720 3,305 4,895 6,470 8,055

1/ Interest rate 9% for years 1, 2 and 11% afterwards.

tD 2XJune 22, 1976

HAITI

RURAL DEMMOPgfENT PROJECT IN TUE NORTHERN DEPARtMEHT

Farm Modela

Model 2: 10-ha Farm Unit in the Irrigated Area of Quartier Morin

Production and Production Value

<G) ---- Year------------.----2/ Hectares Yields ton/ha 8efore 3/

Crop Productionr Unit Years 1-4 Years 1-4 Development .1 2 3 4-20

Sugarcane Tons 8.0 8.0 8.0 8.0 35 35 50 60 280.0 280.0 280.0 400.0 480.0

Maize 1.0 1.0 1.0 2.0 1.5 1.5 2.0 3.0 1.5 1.5 1.5 2.0 6.0

Beans 0.5 0.5 0.5 1.0 1.0 1.0 1.5 2.0 0.5 0.5 0.5 0.8 2.0yams 0.5 0.5 0.5 1.0 4.0 4.0 4.5 5.0 2.0 2.0 2.0 2.3 5.0

4/Livestock Production

Beef (liveueight) kg (liveveight) 300 300 300 400 400

Milk kg 500 500 600 900 900

Pork-/ kg (liveveight) 350 500 500 500 500

Value of Crop Production Farugate Prices

Sugarcane ton 33.00 9,240 9,240 9,240 13,200 15,840

Maize kg 1.30 1,950 1,950 1,950 2,600 7,800

Beans kg 3.00 1,500 1,500 1,500 2,400 6,000

Yams kg 4 1.00 2,000 2,000 2,000 2,300 5,000

Total Value of Crop Production 14,690 14.690 14J90 20,500 34.640

Value of Animal Production Pricet

Beef kg 4.00 400 600 600 800 800

Milk7/ kg 0.75 375 375 450 675 675

Pork- kg 5.00 1,225 1,750 1,750 1,750 1,750

Total Value of Animal Production 2,000 2.725 2 2 2-5

Total Value of Production 16,690 17.415 17,490 23,725 37.865

Less: On-farm Consumption -/ 7,426 7,873 7,936 10,266 10,266

Total Cash Sales 9,264 9.542 9 13.459 27 599

1/ Operated by seven families (average farm site 1.45 ha) with five members each./ Double cropping for maize, beaus, and yems in year 4 when irrigation system vould be fully operative.3/ With improved farming practices reaulting from extension efforts.4/ Assumes tvo cows, two steers, one calf and seven pigs before development, and increase of one cow,

one steer and three pigs in year 2,5/ Average liveveight, 50 kg per animal.6/ Dressing percentage, 50%.7/ Dressing percentage, 707 r

8/ Assumes 10% on-farm consumption of sugarcane and 85% consumiption of all other production,leveling off after year 3.

June 22, 1976

ANNEX 19Table 5

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Farm Models

Model 2: 10-ha Farm Unit in the Irrigated Area of Quartier Morin

Investment and Operation Costs(G)

Before -------------Year---------------

Investment Development 1 2 3 4-20

Rehabilitation ofIrrigation SystemAI/ 6,950 5,213 5,212

Total Investment Costs 6,950 5,213 5,212

Operating Costs

Operation and Maintenanceof Irrigation System - - - - 900

Laboa2/ 3,594 3,594 3,666 4,434 5,220

Materials 57 357 444 6,582 7,134Ferti izers - - 338 6,076 6,752

Seed 57 57 106 106 222Water4/ - - - - 160Hand tools5/ - 300 - 400 -

Livestock - 107 153 170 170

Vaccines)/ - 22 38 38 38

Drugs-7 - 45 55 72 72

Minerals - 40 60 60 60

Equipment Repair andReplacement-•/ - - 15 15 15

Total Operating Costs 3,651 4,058 4,278 11,201 13,439

1/ Farm unit's contribution to cost of irrigation rehabilitation (50%)

to be repaid in 20 years starting in year 5.2/ Labor costs in addition to on-farm consumption (see also Table 4).

3/ Improved seed for maize and beans.4/ Water charges based on present tax of G 16/ha would be introduced in

year 4 when irrigation system is fully operative.5/ Includes hoes, spades, machetes, and the like, as well as tools for

effective use of irrigation.6/ Assumes vaccination for Hog Cholera and New Castle disease (see Annex 7).

7/ Assumes drenching of cattle for liver flukes and helminths (see Annex 7).

8/ 5% of investment cost.

June 22, 1976

hAIT I

RURAL DEVEWPHENT PROJECT IN TUE NORTHBM D lMU

Farm blodela

Model 2: 10-ha Farcm Tjnit in the Irrigated Area of Quartier Morin

Financial Projections(G)

Category O 1 2 3 4 5 6 7 8 9 10 il 12 13 14 15

A. CASH INFLOW

Sales 9,464 9,542 9,554 13,459 27,599 27,599 27,599 27,599 27,599 27,599 27,599 27,599 27,599 27,599 27,599 27,599Prevfous Year Cash Balance - 3.988 5.772 5,048 1_706 4.991 8.276 11.561 9.846 8,131 6.416 4.701 2.986 1,271 4,556 7.841

Total Cash Inflow 9.464 13.530 15.326 18.507 29e305 32,590 35.875 39.6,0 3714I5 35.730 34.015 32.300 301_Q5 25.870 3Z.._.440

E. CASH OUTPLN

Production Costa 3,651 3,758 4,278 10,801 13,444 13,444 13,444 13,444 13,444 13,444 13,444 13,444 13,444 13,444 13,444 13,444Irrigation Schenç Amorticeion - - - - 870 870 870 870 870 870 870 870 870 870 870 870Cash Vithdrawal

1' 1.825 4.000 6.000 6,000 10.000 10.000 10.000 15.000 15.00 '|OOO 15.00 15.O00 1.000 20.0 1 0 15.000

Total Cash Outflov 5.476 7.758 10.278 16.801 24.314 24.314 21.314 29.314 229.314 2014 29.314 19.314 29.314 14.314 24314 29.314

C . EXPECTED CASH BAAIINCE ATC. 'IS EID 3,988 5,772 5,048 1,706 4,991 8,276 11,561 9,846 S,131 6,,416 4.701 2,906 1,271 4,556 7,841 6h126

1/ Cash vithdravala at lesast 50% of operating costs.

June 23, 1976

ANNEX 19Table 7

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Farm Models

Model 3: 10-ha Farm Unit with Well Irrigation (Quartier Morin)-

Investment and Onerating Costs(G)

Before -------------- Year---------------

Investment De'velopment 1 2 3 >4-20

Equipmnt 300 5.752 400

Putp and engineZ/ 5,702

Pump and engine shed 650

Hand tools3/ 300 400

Total Investment Coats 300 400

Operating Costa

2p in d Mainten4noeOperation andMiteacof Irrigation Sy8tenm/ 3,100

Labor.Y' 3,594 3,594 3,666 4,434 5.220

Materials 57 57 444 6 182 7 080

Fertiizers m > 6,752

Seed6/ 57 57 106 106 222

Water i 106

Livestock 107 153 170 170

Vaccine s. l l 7Drugs9/ 45 55 72 72

Mtinerals 40 60 60 60

Equipment BPpair and4RbPlacementi0/ 1515 20

Total Operating Costs 3,651 3 58 4278 I0 1 15590

1/ See 1/in Model 2.2/ Proportionate cost of pump and engine serving 70 ha.

3 Includes hoes, spades, machetes, and such and tools for effective use of

irrigation.4/ Cost of operating irrigation system applied after full development

(year 4).5/ Family labor costs in addition to on-farm consumption.

6/ Improved seed for maize and beans.,7/ Water charges in addition to the legal tax of G 16/ha would be introduced in

year 4 when irrigation system is fully operative.

8/ Assumes vaccination for Hog Cholera and New Castle diease (see Annex 7).

9/ Assumes drenching of cattle for liver flukes and helminths (see Annex 7).

1l/ Repair and replacement of hand tools estimated at 5% of investment cost.

July 13, 1976

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Farm Models

Model 3: 10-ha Farm Unit in Pump Irrigated Areas of Quartier Morin

Financial Prolections

(G)

---------------------------------------------------------- Year------____________-_Category ° 1 2 3 4 5 6 7. 8 9 10 il 12 13 14 15

A. CASH INFLOW

Sales 1/ 9,464 9,542 9,554 13,459 27,599 27,599 27,599 27,599 27,599 27,599 27,599 27,599 27,599 27,599 27,599 27,599Development Loan - 300 5,752 400 - - - - - - - - - - - -Previous Year Cash Balance - 3.813 4.561 2.626 4.033 7.011 5.146 7.101 7.056 7.011 6.966 6.921 6.876 6,831 6,786 6j741

Total Cash Inflow 9,464 13,655 19,867 16,485 31,632 34,610 32,745 34,700 34,655 34,610 34,565 34,520 34,475 34,430 34,385 34,340

B. CASH OUTFLOW

Development Investment - 300 5,752 400 - - - - - - - - - - - -Production Costs 3,651 3,758 3,758 4,278 10,801 15,644 15,644 15,644 15,644 15,644 15,644 15,644 15,644 15,644 15,644 15,644Medium-term Repayment - 27 545 710 3,767 3,767 - - - - - - - - - -Cash Withdrawal 2,000 5.009 7,181 7,064 10,053 10,053 12.000 12,000 12.000 12.000 12.000 12,000 12,000 12,000 12,000 12.000

Total Cash Outflow 5,651 9,094 17,236 12,452 24,621 29,464 27,644 27,644 27,644 27,644 27,644 27,644 27,644 27,644 27,644 27,644

C, EXPECTED CASH BALANCEAT YEAR'S END 3,813 4,561 2,631 4,033 7,011 5,146 5,101 7,056 7,011 6,966 6,921 6,876 6,831 6,786 6,741 6,696

1/ See Table 4.

June 25, 1976 A

HAITI

RURL DEVEWPMENT PROJECT IN THE NORTHE RN DEPARTMENT

FPrm Models

Ilodel 4: 15-ha Farm Unit in the Rainfed Area of Plaine du Nord

Productien and Production Value(G)

- -Year --- - -------Hectares Yields ton/ha Before 2/

Crop Production Unit Years 1-4 Years 1-4 Development 1 2 3- 4-20

Sugarcane tons 8.0 8.0 8.0 8.0 30 35 45 55 240 240 280 360 440Tobacco 2.0 2.0 2.0 2.0 .25 0.3 0.4 0.6 .5 .5 .6 .8 1.2Manioc " 1.5 1.5 1.5 1.5 3.0 3.0 3.5 4.5 4.5 4.5 4.5 5.3 6.75Yams 1.5 1.5 1.5 1.5 3.0 3.0 3.5 4.5 4.5 4.5 4.5 5.3 6.75Sorghum 2.0 2.0 2.0 2.0 0.6 0.7 0.8 1.0 1.2 1.2 1.4 1.6 2.0

3/Livestock Production7

Beef (Liveveight) kg 140 140 260 260 260Milk S 250 250 300 500 500Pork (Liv.u.ight)'kg 350 500 500 500 500

Value of Crop Production Farmgate Prices

Sugarcane ton 33.0 7,920 7,920 9,240 11,880 14,520Tobacco kg 3.0 1,500 1,500 1,800 2,400 3,600Manioc kg 1.0 4,500 4,500 4,500 5,300 6,750Yams kg 1.0 4,500 4,500 4,500 5,300 6,750Sorghum kg 2.0 2,400 2,400 2,800 3,200 4,000

Sub-total 20,820 20,820 22,840 28,080 35,620

Value of Animal Production Prices

Beef (deadveight)Ž/ kg 4.0 280 280 520 520 520Milk kg 0.75 190 190 225 375 375Pork (deadweight)fl kg 5.0 1,225 1,750 1,750 1,750 1,750

Sub-total 1,695 2,220 2,495 2,645 2,645

Total Value of Production 2i,515 23,040 25,335 30,725 38,265

Lase: On-farm Consumptionl/ 12,073 12,519 13,253 15,406 15,406

TfleI Cash Sales 10j442 10.521 12,082 15,319 22.859

1/ oprated by seven families (average faru size, 2.15 ha) vith five members each.2/ vith improved faruing practices resulting from extension efforts.3/ Assumes one cov, one steer, one calf and seven pigs before development and purchase of two draft oxen in year 1.4/ Average liveweight, 50 kg per animal. a5/ Dressing percentage, 507.6/ Dreusing percentage, 70%.7/ Asesme 10% on-farm consumption of sugarcane and tobacco and 85% consumption of all other production, leveling

off after year 3.

June 28, 1976

ANNEX 1910

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Farm Models

Model 4: 15-ha Farm Unit in the Rainfed Area of Plaine du Nord;

Investment and Operating Costs(G)

Before ------------------ Year-----------Investment Development 1 2 3 4-20

Draft Oxen 1,200

Equipment 2,425 300

Yoke 125Plow 1,000Cultivator 1,000Spraye3y 300Tools_ 300

Total Investment Costs 3,625 300

Operating Costs

Labor-3/ 2,880 2,880 2,880 3,648 3,648

Materials 162 162 2,506 5,130 9,818

Fertilizer- 2,344 4,687 9,3755'Pesticides- - 200 200Seed6/ 162 162 162 243 243

Livestock 274 328 328 328

Vaccines7/ 22 38 38 38Drugs8/ 27 45 55 45Minerals 20 40 40 40Operation of draftoxen 205 205 205 205

Equipment Maintenance.and Repair 121 121 136

Total Operating Costs 3,042 3,316 5,835 9,227 13,930

_/ Operated by seven families (average farm size,2.15 ha) with five members each.2/ Includes hoes, spades, machetes and such.j/ Labor costs in addition to on-farm consumption (see Table 7 ).4/ Pesticides mainly for tobacco.5/ Improved seed for tobacco and sorghum.6/ Assumes vaccination for Hog Cholera and New Castle disease (see Annex 7).7/ Assumes drenching of cattle for liver flukes and helminths (see Annex 7).8/ 5% of investment cost.

June 28, 1976

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Farm Models

Model 4: 15-ha Farm Unit in the Rainfed Area of Plaine du Nord

Financial Projections

--------------------------------------------------------------------- Year -------------------------------------------------------------------

Catepory O 1 2 3 4 5 6 7 8 9 10 il 12 13 14 15

A. CASH INFLO

Sales 10,442 10,521 12,082 15,319 22,859 22,859 22,859 22,859 22,859 22,859 22,859 22,859 22,859 22,859 22,859 22,859

Development Loan - 3,625 - - - - - - - - - - - - - -

Previous Year Cash Balance - 2,400 4.170 4.982 3.939 3.835 3.731 3.660 3,589 3.518 3.447 3.376 3.305 3.234 3.163 3,092

Total Cash Inflow 10,442 16,546 16,252 20,301 26,798 26,694 26,590 26,519 26,448 26,377 26,306 26,235 26,164 26,093 26,022 25,951

B. CASH OUTFLOW

Development Investment - 3,625 - - - - - - - ? - - - - - -

Production Costs 3,042 3,316 5.835 8,927 13,930 13,930 13,930 13,930 13,930 13,930 13,930 13,930 13,930 13,930 13,930 13,930

Medium-term Repayment - 326 326 399 2.119 2,119 - - ,1 - _

Cash Withdrawal 5.000 5.109 5.101 7.036. 6.916 6.916 9.000 9.000 9,000 9.00D 9.000 9.000 9.000 9.<Q 9.000 9.000

Total Cash Outflow 8,042 12,376 1ll3jO 16,362 22,963 22,963 22,930 22,930 22,930 22, 22,930 22,9O 22,930 22,930 22,930 22,930

C. EMCTED CASa BALASCEAT YEAAS END 2,400 4,170 4,982 3,939 3,835 3,731 3,660 3,589 3,518 3,447 3,376 3,305 3,234 3,163 3,092 3,021

June 24, 1976

- ,o

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Governuent's Incremental Cash Flow from the Project-I/G'000

-------------------------------------------------------Project Year--------------------------------------------1 2 3 4 5 6 7 8 9 10 11-20

Inflow

IDA Credit2/ 10,110 9,232 10,450 8,101World Food Program Grsnt 1,364 1,208 1,372 1;056

Total Credit anrd Grants 11,474 10,440 11,822 9,157

Revenues from:

- Animal health cklrge 3/ 34 49 65 70 70 70 70 70 70 70 70- Irrigation fege

1- - - 60 75 75 75 75 75 75 75

- Water charge o/ - - - - - 197 393 590 590 590- Sub-borrrsr6 8 49 189 987 1,289 1,289 918 730 397 - -- Taxation7/ _ 200 400 600 800 800 800 800 800 800 Ran

Total Revenues 42 2QR 654 1.717 2,234 2-243 2.060 2.068 1.932 1,535 1,535

Total Inflow 11.516 10.738 12.476 10,874 2 23/4 9,243 2.060 2.068 1.932 1_.535 1.535

Outflow

Prolect Outlays 13,718 12,154 13,806 10,618 1,385 1,385 1,385 1,385 1.385 1,385 1.385

IDA Credit Service

Repayment - - - - - - - - - 947Service charge 38 110 184 254 284 286 284 284 284 284 284

Sub-total _ 1R 2R4 4 ,284 284 284 284 1.Z31

Total Outflov 13,756 12,264 13.990 10.872 1.669 1.669 1.669 1.669 1.669 1.669 2.6

Annual Deficit!/ (2,240) (1,526) (1,514) 2 565 574 391 399 263 (134) (1.081)

Cumulative (2,240) (3,766) (5,280) (5,278) (4,713) (41139) (3,748) (3,349) (3,086) (3,220) (4,301)

1/ At mid-1976 terDm.2/ Includes physical, but not price contingencies.3/ 75% of cost of vaccines, drugs and medications.4/ G 16 per ha per year.5/ 50S of investment costs of rehabilitation/expansion of irrigation

systema, over a period of 20 years, including a five-year graceperiod, and at a zero percent interest rate.

6/ Interaet rates of both production credit and medium-term loans are 9%per annum for the firet two years of the project and 11% per annumthereafter.

7/ Includes 15% export tax on augar and 1% of incremental agricultural andlivestock production, other than sugarcane, due to income and sales taxesduring the marketing process.

8/ To be met by Government.

December 3, 1976

ANNEX 21Page 1

HAITI

RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Economic Analyses

1. The economic rate of return was calculated on the basis of datashown in Table 1. The key assumptions made in transforming financial costs,prices, inputs and outputs are indicated below:

(a) Due to the high unemployment and underemployment in the country,a shadow wage equal to 50% of the current legal minimum monetarywage was applied for all incremental unskilled labor;

(b) Costs for improvement and construction of three municipal mar-kets and an abattoir, and rural water supply (3% of total costs)were excluded because of the difficulty of quantifying benefits,which are mainly of a social nature;

(c) The price of fertilizers was reduced by 38%, the amount ofGovernment subsidy on the import price. The cost of gasolineto operate vehicles was also reduced to make it equivalent tothe US gasoline price before taxes are applied;

(d) The revenue deriving from sugar exports was determined byapplying the Bank's projections on the international priceof sugar;

(e) Equipment and machinery and other imported inputs to beused under the project were costed, custom-duty-free;

(f) No shadow exchange rates have been applied as the inflationaryrate of US and Haitian economies are assumed to be similar;

(g) The grant of the World Food Program (WFP) to help financelabor cost under the project was considered to be a netbenefit to the Haitian economy, as such food is additionalto the WFP planned allocation of food; and

(h) Costs and prices other than sugar were calculated throughoutthe project at June 1976 levels.

2. On the basis of the above assumptions, the project's economic rateof return was 14%. A sensitivity analysis on potential cost benefit varia-tions has yielded the following results:

ANNEX 21Page 2

(a) A 25% increase in the cost of construction, vehicles andequipment would reduce the rate of return to 10%;

(b) A 10% decrease in yields would reduce the rate of returnto 10%;

(c) A 10% increase in the cost of construction, vehicles andequipment combined with a 10% decrease in yields would-reduce the rate of return to 9%; and

(d) A one-year delay of project benefits would reduce the rateof return to 10.5%.

December 6, 1976

BAITI

RURAL DEVELOPHENT PROJECT IN THE NORTHERN DEPARTMNNT

Economic Rate of ReturnG' 000

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

Investfnlt Cost

On-farm inveatment 1,050 2,955 2,862 1,973

Civil vorks 3,438 1,142 1,593 819

Vehicles and equipment 2.658 93 60 360

On-faerm increomntal operating coste 313 1,218 1,335 2,658 4,870 5,138 6,030 6,030 6,030 6,030

other incremntal,operating costs 2,742 2,677 2,949 2,821 842 842 842 842 842 842

Physical contingencies 1,072 628 677 473 - - - - -

Total Costa 11.273 8,713 9.476 9.104 5.712 6.872 6,872 6.872 6,S72

Benefits

Incremental production 14 352 1,525 4,158 8,915 11,118 13,034 13,034 13,034 13,034

World Food Program Grant 1,250 1,250 1,250 1,250 - - - - - -

Total Benefits .264 1.602 2,775 5.408 8.915 11.118 13.034 13.034 13.034 13.034

December 2, 1976

HAITIRURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT

Proposed Project Organization and Management

PRESIDENT OF THE REPUBLIC OF HAITI

ORGANISME DE DEVELOPPEMENT DU NORD tODN)

Chaired by the Secretary of State for Agriculture,

Naturel Remumrces and Rural Development tDARNOR)

REGIONAL COORDINATING - ODN EXECUTIVE DIRECTORATE

COMMIuTEE (Director an d Deputy)

MONITORING AND

a EVALUATION UN&T(DARNDR)

~~~~~~~~~~~~~~~~~~MktIn.g!.

Comm.nity ~~~~~~~~~~Irrigation Transport Agriutrer - -- - - - $tAgronomie.tspecieliot speclaliet Cei

. -_li < - 41 < +.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~petlo| { _ | 0 ~~~~~~~~~~~ ~ ~~~~~ ~ ~~Officer, Z1 e"

1 2----- [----------------------_.......... ........... ...................... ...... î ,, ... T........ ....... ........ - -- -

Veterifery Apriculturî lRural AduIt Irrigation Hydraulicu Rgionel _ Roe - 5z j of

and Livetoc Ext ndIon Animation Alphebetuetiun Servire Service PubIli MrienAeuu

icés si (SHRS) TPTC ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~service NI ! {~~SU'trCiV/ SW rve SAR) tONAAC) (51CR) . SHRH) Worbg ITPTC) ISEPRRN) Cred it t8CA)IUwIVISE) (BVRF

DEPARTMENT OF AGRICULTURE, NATURAL DEPARTMENT OF PUBLIC WORKS,

RESOURCES AND RURAL DEVELOPMENT TRANSPORT AND COMMUNICATIONS

: , ............. . .... ,,,................... ,,,,,,,.............. ...................... ............ ............. _..._.. ._....... w..._.._._._ ........ _._._._

Ca1dot Sugar Mill andCentre Rural de Develop- ADMINISTRATIVE/ACCOUNTING UNIT

pecent de Milot tCRUDEM)

WorMc Bank-16401 (R>

-19-SD' RURAL <M./'a>,'.- z: 0 0.0 0 :0HATI T 1 A -, `RR . TAL DEVELOPMENT PROJECTIN T,- RHE ThERN DEPARTMENT

EN~~~~~~~

'O j ;

0~~~~~~~~

Breda ''

-7 9 20 Re bs*oes rsx Limbnpd szODNHocgotr tie-

:DP/t dédoré:lét , aelntY b; $/. ODN Field Offices : : : " d :) 8.,'7 E Ce3 as d .rM="x>dn.>naMr M.. -- ricul]u Extnsion Serices .-

'. . Ay cJ G e d'; B. A X p a o o - ,;

.,st - i -SecPrdcto X 40 00 r.Wd«tDpotèn oudry -.><

2 Mniicz Abutir0 20Il,I-Isohyets ( inmillimete

`___Aie of Known Potentho fo- Well IrrigationKILOMETERS ~~~~Existing Irrigation System (Rehablîohtton & Expansion)

9~~~ 20 C.' ~~~~~ P.oriy Daia ed Aiea75i ~~~~ ~~. ODN Heodquorters

îiii,îi,i, "i ~"i''ODN Field Officesk¼,idB,,,~id is'iiiiiiiAgriculturol Extension Services

~~ ~~~ ~Rural Animation Services ALTITUDES (i. inte,es)Irrgation servicesVetenînary Services W' MM 1000 or More Main Roads

______ ~~~~~~~~Ag,icult.rol Cred,t (B.C A.)jt 800 - 1000 SecoeooryRodI eernn~~~~.iu - ~~Agr.iculurl Trials :'L 00-80Commvee B.ieore

Sugorcose Trial5 0 0 CommuneSeed Production 1111vt0~ eotsn onay'~0~ Musicipol M.rket '20-40R,vers

____ ~~~~~~~~Municipal Abbattial 0 - 200 "' Isohyets (in millimneters) j'~~'-'--0:50-~i' ~ ~ Bouedaries of Proiect Ares

Si ~~~~72- 20 72-10,