government of the republic of the seychelles

New Partnership for

Africa’s Development (NEPAD) Food and Agriculture Organization

of the United Nations Comprehensive Africa Agriculture Development Programme (CAADP)

Investment Centre Division

GOVERNMENT OF THE REPUBLIC OF THE SEYCHELLES

SUPPORT TO NEPAD–CAADP IMPLEMENTATION

TCP/SEY/2903 (I) (NEPAD Ref. 05/07 E)

Volume III of VI

BANKABLE INVESTMENT PROJECT PROFILE

Sustainable Vegetable and Fruit Production

January 2005

SEYCHELLES: Support to NEPAD–CAADP Implementation

Volume I: National Medium–Term Investment Programme (NMTIP)

Bankable Investment Project Profiles (BIPPs)

Volume II: Sustainable Pork and Poultry Production

Volume III: Sustainable Vegetable and Fruit Production

Volume IV: Agro–Processing Pilot Project

Volume V: Evaluation and Commercialisation of Underutilized Marine Resources

Volume VI: Support to Wood Exploitation and Utilization

NEPAD–CAADP BANKABLE INVESTMENT PROJECT PROFILE

Country: Seychelles

Sector of Activities: Agriculture

Proposed Project Name: Sustainable Vegetable and Fruit Production

Project Location: National

Duration of Project: 5 years

Estimated Cost: Foreign Exchange ............ US$5.7 million Local Cost........................ US$1.4 million Total ................................US$7.1 million

Suggested Financing:

Source US$ million SR million % of total

Government 1.4 7.5 19%

Financing institution(s) 5.7 31.5 81%

Beneficiaries

Private sector

Total 7.1 39.0 100%

SEYCHELLES:

NEPAD–CAADP Bankable Investment Project Profile

“Sustainable Vegetable and Fruit Production”

Table of Contents

Abbreviations........................................................................................................................................ iii

I. PROJECT BACKGROUND.......................................................................................................5 A. Project Origin ....................................................................................................................5 B. General Information..........................................................................................................5

II. PROJECT AREA.........................................................................................................................7

III. PROJECT RATIONALE..........................................................................................................10

IV. PROJECT OBJECTIVES.........................................................................................................12

V. PROJECT DESCRIPTION ......................................................................................................12 A. Development of an Agricultural Land Use Plan ...........................................................13 B. Infrastructural Development ..........................................................................................13 C. Institutional support and capacity building ..................................................................14

VI. INDICATIVE COST .................................................................................................................15

VII. PROPOSED SOURCES OF FINANCING .............................................................................15

VIII. PROJECT BENEFITS ..............................................................................................................15

IX. IMPLEMENTATION ARRANGEMENTS ............................................................................16

X. TECHNICAL ASSISTANCE REQUIREMENTS .................................................................17

XI. ISSUES AND PROPOSED ACTIONS ....................................................................................17

XII. POSSIBLE RISKS.....................................................................................................................17

NEPAD – Comprehensive Africa Agriculture Development Programme Seychelles: Investment Project Profile “Sustainable Vegetable and Fruit Production”

iii

Abbreviations

ADB African Development Bank BIPP Bankable Investment Project Profile CAADP Comprehensive Africa Agriculture Development Programme FAO Food and Agricultural Organization of the United Nations GDP Gross Domestic Product GIS Geographical Information System ICM Integrated Crop Management IPM Integrated Pest Management MENR Ministry of Environment and Natural Resources (formerly MAMR) MERP Macro–economic Reform Programme NAFP National Agricultural and Fisheries Policy 2003–2013 NEPAD New Partnership for Africa’s Development NGO Non–governmental Organization NMTIP National Medium–Term Investment Programme SMB Seychelles Marketing Board


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I. PROJECT BACKGROUND

A. Project Origin

I.1. In line with the last major agricultural project, the Integrated Agricultural Development Project funded by the African Development Bank (ADB), this sector still requires further development. Due to sanctions imposed on the government in the 1998 part of the above project components were not finalized. Much assistance was to be delivered to the project beneficiaries, mainly in the area of irrigation equipments, inputs and machineries. The past project funded development in major infrastructure such as road, irrigation and drainage to exploit the limited land resource. Such infrastructures are still required for the same agricultural zone and others.

I.2. Addressed in the National Agricultural and Fishery Policy 2003–2013 (NAFP) are seven thematic areas focus on sustainable agriculture and fisheries development to enhance food security. Precisely as shown in the policy document two of the focused areas are a) Agricultural Land and Use Optimisation and b) Arable Agricultural Production. The two mentioned domains are in line to achieve at least 80% production of arable crops, in areas where there are comparative advantage, required for local consumption.

I.3. As set in its strategies government would identify agricultural plots along with suitable private sector interests to undertake crop production and would also encourage households to engage in agricultural production. To ensure sustainability in crop production, new improved technology needs to be applied amongst which are to promote improved crop varieties and t the same time conserve the biodiversity and the genetic resources of the local varieties. As it is in the best interest of the government to increase local production of fruits , vegetables spices root and tuber crops, there is also the need to further promote and support sound and environmental friendly cultural practices (IPM, ICM), technologies (fertigation, tropical green houses), and edible landscaping.

I.4. Crop production is undertaken by private entrepreneurs farming either on private land or on land lease from the government.

B. General Information

I.5. As from 1971 with the development of tourist industry profound changes occurred in the agricultural sector. A general decline in the production of traditional cash crops (copra and cinnamon) was observed. However, there was an increase in the production of food crops and livestock to response to the increasing demand for both the local and tourist population. Intensive units for production of, vegetables, livestock and fruits came into operation. Production and supply however, is still insufficient and the country still resorts to imports.

I.6. Agricultural contribution before the tourism industry took grip of the economy was 40% of the GDP. Three decades down the line agriculture’s contribution toward GDP dropped to 2.9% in 2002. In 1947 agriculture and forestry employed 80% of the working force compared to less than 7% in 2002. Even though there has been an increase in the average monthly earning of approximately 75% from 1990 to 2002, it is still much lower than in most other sectors of the economy

I.7. The economy is highly dependent upon imports. The country is however vulnerable, even with the increase in export earnings, it does not sufficiently cover the cost of import. In 1993 the deficit in the balance of trade was SR969.8m compared to SR1,045.8m in 2002, reaching a maximum of SR1,541.9m in 1999.


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I.8. For the past 10 years government expenditure has not surpassed SR2bn in any given year. With the macro–economic reform programme in mid 2003, the budget for 2004 has been reduced to SR1.23bn for allocation to different ministries and departments. Allocation to the former Ministry of Agriculture and Marine Resources (MAMR) has not surpassed SR23m accounting for less than 2% of the total government expenditure. In 2004 the above ministry merged with the Ministry of Environment, now the Ministry of Environment and Natural Resources and allocation for this ministry accounts for less than 7%, the bulk being from environment.

I.9. Agricultural production is carried out on three main islands of the Seychelles, Mahé, Praslin and La Digue. The bulk of the production is on Mahé and Praslin. Mahé is the largest of the three islands. Around 86% of the population lives on the main island, Mahé, 9% on Praslin and 4% on La Digue. Agriculture on Mahé is concentrated mainly at Anse Boileau, Val d’Endor, Port Glaud, Barbaron, La Gogue, Anse Royal and Anse Aux Pins. Whiles on Praslin the main areas are Amitié, Cap Samy and Côte d’Or. La Digue has lost its major agricultural areas to other developments.

I.10. Mahé, Praslin and La Digue account for 44.2% of the total country area but over 95% of the population live on them. The total land area of 2,060 ha of the three islands which is available for farming is small. This represents only 10.3% of the total landmass of these three islands whereas over 60% (1,236 ha) of that area constitutes zones that are protected for environmental considerations. Only an estimated 45% of the potentially cultivable land of the three islands is being cultivated. Agricultural production has become more intensive, with farmers adopting cultivation under controlled environment so call green houses. The technology was introduced in 1990 and presently there is n estimate of 15 ha of land being cultivated under these types of shade houses. The technology has had some positive impact on the production and consistency in the supply of certain vegetable type.

I.11. It is estimated that livestock contributes 45% to the total value of agricultural production, while fruits and vegetable, cash crops and others account for 55%. The possibility of import substitute lies mainly in meat production and in the production of certain fruits and vegetables that can be locally grown. As for tea, vegetables, fruits, root–crops and spices these products are not destined for exports and are totally consumed locally.

I.12. Agriculture is practiced at altitudes ranging from 5m to 260 m above sea level. Most of the coastal plateau area sandy soil, whiles at higher latitude the soils are red on more difficult to work with. The climate is tropical with two seasons, a dry south–east monsoon May–October and a moist north–east monsoon November–April. Mean annual rainfall varies from 1,600 mm to 2,800 mm falling with high intensity during the moist season, temperature ranging from 23ºC and 33ºC, average sunshine of 7 hours per day and humidity 80%, the incidence of pests and diseases is high. Rain distribution through out the year is also not uniformed, with most of it falling during the months of November and April, and occasionally having a negative impact on the land through high run–offs on the steep land and flooding on the plateau area. In the months of May and October less rain is observed whereby farmers have to irrigate the land, of which certain regions have inadequate water for that purpose. During those months temperature is high and cultivation under controlled environment may have a lot of heat stress if ventilation is not adequate. Due to low fertility of the soil and relatively high occurrence of pest and diseases farmers utilize much fertilizers and pesticides.

I.13. Seychelles is categorised by having small private farmers cultivating on areas around 1 to 2.5 acres. Cultivation is mainly open field with a few farmers utilizing the technology under modified structures to shelter the crops from direct impact of heavy rainfall and from sunlight. There are approximate 586 registered farmers of which 12% are female. Most of them are exposed to good crop husbandry in the sense of having knowledge of the use of pesticides, fertilizers, herbicides, small machineries and different types of small irrigation system.


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I.14. Inputs supply for farms especially, fertilisers, pesticides, seeds and irrigation materials have been inadequate and this had led to reduction in production of certain crop type. The lack of foreign exchange to adequately import inputs, machineries and tools including spare parts, have contributed to the decline in production. As agriculture evolves with introduction of new technologies farmers have to be trained to cope with such advances. There is the need to train existing farmers and improve the existing Framers’ Training Centre to deliver adequate training.

I.15. Since the introduction of the Macro–economic Reform Programme (MERP) and the change in presidency, the country has adopted a new approached and more incentives are being considered for the productive sector of the economy. The participation of the private sector is being called for whereby the Chamber of Commerce and the Farmers Association plays a bigger role towards the development of the agricultural sector.

I.16. The ministry responsible for agriculture has further consolidated its ole as facilitator. This has been highlighted in its policy till 2013. Despite the fact that the government is encouraging the participation of the private sector in the development of agriculture, government is still the main importer of basic inputs, machineries, equipment, spare parts for farming community. Private sector is constraint due to the limitation in obtaining foreign exchange.

I.17. As a means to maintain employment and to secure to a certain degree food security, this sector will remain as an economic sector. The government has reemphasised the need to give more support to the agricultural sector to enhance its productivity as it has been seem that the sector has a lot of potential to develop and contribute more to the economy of the country.

II. PROJECT AREA

II.1. The project area comprises of agricultural development on the two main islands of the Seychelles, Mahé and Praslin. There is no distinct zone designated for agricultural development, although there are some areas which have been adopted as major agricultural areas. The main project areas will be Val Den Dor , Anse Boileau and Praslin where the farming community is important. Crop production on Mahé is being undertaken mainly on hilly area characterised with poor red soil whereas on Praslin, the major crop development activities are being undertaken on flat coastal plateau on sandy soil. Most of the farmers (60%) are on state land representing 357 registered farmers of which 9.5% are female. As for the 234 private registered farmers 14.9% are females. Recent Population Census undertaken in 2002 revealed that there are over 1,000 backyard farmers also contributing to the national agricultural production although their contribution has not been well established.

II.2. Crop production on Mahé is dominated by root and tuber crops; plantain and bananas and some fruits on red soil in the hilly area. Due to its steep topography, red soil, and limited water resources at Val Den Dor and Anse Boileau area, most farmers choice to cultivate root and tuber crops, banana and plantain and some vegetables are also cultivated. Praslin is characterised by its sandy plateaux suitable for vegetable production. A variety of vegetables are grown on Praslin such as eggplant, tomatoes, chillies, watermelon just to mention a few.

II.3. However, it is to be noted that in Seychelles, farmers have adopted a mix farming practice based on various reasons: the topography of the land and soil type; availability of water for irrigation; road access; cost of investment and market access.


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II.4. Topography, Soils and Land Use. Mahé and Praslin are granitic islands with steep and limited fertile land for crop production. Apart from a few small plateaux in the mountainous uplands, the only level ground is found on small coastal plateaux. The coralline soils along the plateaux are the best suitable soil for vegetable production. Despite its good physical properties, the chemical property of the soil is poor. Continuous application of fertiliser and manure is essential for sustained crop development. The soils of the granitic slopes are red, acidic sandy clay. These are old soil, very shallow to several meters deep, however, they are rapidly degraded by erosion after land clearing.

II.5. Land designated for agricultural development on Mahé Island is situated mainly in the South and South West region. These are the area where there is a large concentration of farmers. The area is mainly dry and hilly and the agricultural development has to be undertaken in a manner whereby there will be minimal environmental impact such as soil erosion, land slides and destruction of important animal and plant species. Whilst developing agriculture, farmers have to take into consideration the health aspect of the consumers; therefore farmers have to adopt agricultural practices that will safeguard the human health. The low lands along the coastal area are not fertile land, a considerable amount of fertilizer, manure and compost is being utilized. If not properly administered it may in due cause reach the ocean and have adverse impact on the coral development along the coastline. Low lands are prone to flooding during heavy showers.

II.6. Over the past years, most farmers were cultivating mainly root and tuber crops whereby minimal irrigation was required. Due to diversification and introduction of new technology, more farmers have shown interest in the production of vegetables. However, one limiting factor which most farmers in the hilly areas have encountered is availability of water for irrigation. The Ministry responsible for agriculture over the years have invested into facilities to irrigate more land for crop development. Reservoirs and water barrage to store water have been constructed. Irrigation scheme has been set up in 6 main agricultural areas to assist farmers on state land. However, as the farming community continues to grow, more land is being put under cultivation and the demand for water also increases. Farmers especially the younger generation are very much interested with new irrigation systems that minimize use of water. Sprinklers, drips, micro–jets, fertigation are systems well appreciated by farmers unfortunately not easily accessible

II.7. Road Access. The island of Mahé and Praslin have networks of well–maintained surfaced roads which provide access to most of the coastal area of agricultural significance. As most farm lands are situated in the hilly area, in many cases, the farms are not accessible by transport. Farmers spend a lot of money into the payment of casual labour to carry their products from the farm to the road and to carry inputs from the road to the farm. There is a need to extend access to existing farm land and new areas. Similarly, some existing roads require major renovation; due to low maintenance some have deteriorated to the extent that hired vehicle owners are reluctant to travel along them. This limits the market accessibility and farmers tend to produce less.

II.8. Cost of Investment. It is often necessary for new farmers and also some existing ones to require initial funding to start a new project or carry out farm improvement. With the high cost of construction and labour most farmers seek for loan assistance. The Development Bank of Seychelles (DBS) does assist all farmers with feasible projects. Over the past 10 years over SR13m (US$2.4m) has been disbursed to farmers for agricultural development with a lower interest rate of 8% compared to commercial lending institutions. Farmers would invest mostly in farm improvement, irrigation systems, and construction of shade house, procurement of equipments and machineries and working capital. On most vegetable farms, a farmer will employ at least one farm worker and may take on 1 casual worker to develop the land.


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II.9. Project Related Institutions. government remains a facilitator to the agricultural sector and would consolidate further its role in providing an enabling environment to enhance national agricultural production with a view to enhance the national food security. The nature of the project makes provision for other government sectors, private entrepreneurs and banking institution to contribute towards the development of the sector.

• The Planning and Training Division is responsible for putting in develop policy and programmes to sustain agricultural development.

• The Agricultural Planning Section, above its other responsibilities, is responsible for management of land designated for agricultural development and assist farmers with small loans to implement their projects.

• The Training Section has the portfolio to run the Farmers Training Centre, the only agricultural training institution in Seychelles. The entrants to the centre are young people both males and females who opt to take up a career in agriculture or any agricultural related field. Refresher courses, short specialised courses are run for farmers and the general public.

• The Crop Development and Promotion Division, through its existing structure, would endeavour to develop the appropriate technologies to improve the farming techniques to enhance production

• The Vegetable Research Section, has the mandate to conduct research on vegetable crop to improve the varieties to enhance production. It is the responsibility of this Section to conduct research to improve farming technologies for the farming community.

• The Plant Protection Section is mainly concern with the regulatory of import and export of fresh plant and plant produce. It undertakes research on pest and diseases of agricultural significance perform diagnostic test for pest and diseases and advice the farming community and the general public on pest management and control strategies.

• The Extension Section is the linking body responsible for the promotion of research technology and is the main liaison with the farming community. The Section manages the input supply to ensure that inputs are well distributed and properly utilised.

• The Development Bank of Seychelles is the major financing institution for support of projects for agricultural development. The bank assists farmers with loans for development at 9% interest rate. The DBS also assists the ministry responsible for agriculture with the management of the Agricultural Development Fund. This fund established under the Integrated Agricultural Development Project, makes available to farmers loans at a lower interest rate of 8%.

• Private sector and NGOs: The main contribution from the private sector will be from the farming community as most farmers are operating as sole traders. Nonetheless some NGOs’ such as the Farmers Association and the Val Den Dor Farmers Associations are the leading farmers grouping working together to safeguard farmers’ interest. The Ministry of Economic Planning and Employment will play a vital role in the development of the agricultural sector through the establishment of an investment bureau whereas the Ministry of Finance will ensure that there are more incentives for farmers.


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III. PROJECT RATIONALE

III.1. With the increase in population over the past 10 years by almost 16% have had some impact on the development of agriculture. Potential land for agricultural development has been lost to housing and the development of the tourism industry. Despite the demographic factor affecting agriculture, there is an increasing demand for fresh crop produce to satisfy the local population and the tourism industry. In order to meet the demand, the country has to intensify agriculture whereby new improved technology has to be applied to generate more yield from a. farming unit.

III.2. Though Seychelles cannot be self–sufficient in crop production, there is the need to achieve the set target of at least 80% of the national requirements of fruits and vegetables where comparative advantage exists by the year 2013. The last major project, the integrated agricultural development project, did not accomplish most of its objectives due to non completion of some of it components. Nonetheless the project has managed to put in place some major infrastructures in areas of road access and irrigation to facilitate development in certain areas. Despite the construction of the barrages and night storage tanks, the project has not been able to provide the irrigation materials such as sprinklers drippers and water pumpkin that are mostly required to irrigate the farms. The vegetable cultivation under modified environment project implemented in 1994, has proven that the improved technologies can contribute to the increase in vegetable production and ensures production of the most common vegetable type through out the year. Research into higher yielding varieties is most likely to increase production.

III.3. In order to sustain the intended development, there is the need for the development and enhancement of the support services. This would imply the continuous upgrading of the skills and knowledge of the human capacity.

III.4. Agricultural production in the Seychelles has become more business oriented; more investments are being put in the sector by the farmers to improve the basic infrastructures such as road access, water for irrigation and import of input supplies, machinery for upgrading the productivity of their farms.

III.5. Consumers are much aware of the health benefits vegetables and fruits play in their daily intake of nutrients. This is being promoted by the ministry responsible for health. The ministry responsible for industry is encouraging cottage industries and small scale agro processing is seen as an avenue to be exploited and which has the potential to generate revenue and contribute significantly to the GDP. This commitment of the government has been further strengthen through the launching of the Policy on the Development of Cottage Industry.

III.6. With the development of the tourism industry, the need for more local variety of fruits and vegetables are being called for, to satisfy the demand of the clientele. Intensive crop production would utilise the controlled environment technology package, which includes efficient water and fertilizer application. Selected crop varieties and innovative cultural practices would be exploited. Efficient pests and diseases management approaches, inclusive of Integrated Pest Management (IPM), would be applied.

III.7. However, agricultural development is faced with numerous constraints and challenges. The constraints and the challenges facing the sector can be overcome provided more innovative, incentive and investment are injected into the sector.

III.8. Land. Potential land for agricultural development is constraint and land earmarked for agricultural development is being lost due to expansion of the residential area. Land for crop


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development is faced with numerous difficulties ranging from poor soil type to difficult terrain on sloppy hillside with poor infrastructure such as water for irrigation and access road. Putting in place the basic infrastructures and making available the input supply can render the under–developed farmlands more productive.

III.9. The NAFP aims at increasing crop production by 20% to attain at least 80% of the national requirements of fruits and vegetables by the year 2013, a total of 450 ha, i.e. 250 additional ha would have to be cultivated.

III.10. Rural Infrastructure, Technology and Support Services. The Integrated Agricultural Development Project, funded by the ADB, has constructed secondary road in two major agricultural areas, Praslin and Val Den Dor and water reservoirs in three agricultural regions. Despite the success of the project, most of the farmlands allocated to farmers are poorly served with water for irrigation and access road. Although the young farmers would want to invest into crop production through improved technology, many are reluctant due to poor basis infrastructures and the inconsistency in supply of inputs to sustain the production. Nonetheless, there are no doubts that crop production has enormous potential to develop, provided that the basis necessities are made available.

III.11. Putting in place the basic farm infrastructures it is expecting to bring more opportunities to the farming community and eventually bring benefit to the country. In particular:

• road access will open up new opportunities for valorising the land resources; it will provide more market accessibility and cut down on labour cost;

• irrigation facilities will encourage diversification in cropping and better water management system;

• investment in the domain of research and promotion of new technology will enhance production and will reduce land underutilisation;

• consistency in the supply of inputs will motivate farmers to produce and ensure consistence in crop supply.

III.12. Human Resource Development. Agriculture in Seychelles is regarded as a business entity and an economic sector which has the potential to develop. For the sustainability of the intended developments, the human capacity of the support and technical staff of the agricultural sector needs to be upgraded. Better facilities for the operation of the support services would also be required. More training to farmers in the domain of crop husbandry and farm business management will help the farmers to be more confident and that will reduce the dependency of the farmers on to the human resource of the ministry. The farmers will be able to collect and record their own production data and make a cost analysis of their business.

III.13. Past projects have attempted to address the shortcomings in human resource capacity building through short term training and workshops for both farmers and support staff. However, as the technology evolves, there is a need for continuous upgrading of the level of technical staff and train food producers to be self reliance so as to ensure continuity in the development of the sector.


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IV. PROJECT OBJECTIVES

IV.1. The overall objective of the project is to increase production of fruits and vegetables so that by the end of the planned period, 2013, at least 80% of the fruits and vegetables consumed would be produced locally so as to reduce importation of the crop where comparative advantage exist, to save foreign exchange and as a result increase in gross domestic production and to enhance the food security.

IV.2. The project will have a number of specific objectives to respond to the need of the targeted groups which will comprise of the farmer, backyard growers and support staff, as follows:

• to improve on the present irrigation scheme for more effective and efficient management of water for irrigation;

• to put in place and maintain road access to farmland;

• to improve on farming technology and practices through research;

• to increase production by making available to the producers a consistent supply of farm inputs;1

• to strengthen the institutional capacity to ensure economic growth in the sector.

IV.3. An increase in crop production is expecting to contribute to the foreign exchange savings. For instance if 10 ha of land are grown under tomatoes, it is expected that 600 tonnes of tomatoes would be grown in one cycle if one plant yields 1.5 kg. This would translate into the saving of approximately SR50m worth of foreign exchange if 1kg of tomatoes is sold at SR10. Similarly if 10 ha of land are grown under capsicum, the country will produce roughly 400 tonnes of capsicum. If each kg is sold at SR15, a saving of approximately SR50m is anticipated.

V. PROJECT DESCRIPTION

V.1. The project would run over a period of 5 years and it would comprise of various components and its implementation period would be in phases. It is expected that the project will address a number of cross cutting issues which will benefit not only the faming community but bring about opportunity for further development of the district where the project is to be implemented. The project is targeting to cultivate an additional 450 ha of land to increase crop production to attain at least 80% of crop produce consume locally. It is expected that an additional 100 ha of land will be developed under shade houses which implies that the same area will be put under irrigation. The technology of shade house has proven to be effective and can allow the farmer to produce vegetables throughout the year. An additional 100 ha shall be devoted to vegetable production on open field, including the cultivation of traditional vegetable crops and 250 ha shall be devoted to root and tuber crops, fruits and spices.

V.2. The project components will consist of three main domains which are interlinked.

1 Includes fertilizers, pesticides, seeds, irrigation materials and small farm equipment.


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A. Development of an Agricultural Land Use Plan

V.3. Land has been identified as one of the limiting factors for the development of agriculture. Following the reform of the agricultural policy in the early 90s, whereby the role of the ministry responsible for agriculture shifted from that of production to a facilitator, the state farms and the cooperatives were closed down to allow more private intervention in production. Along that, government offered to old, non productive farmers the possibility to purchase the existing house on the land for their private dwelling. As a result, farm land were subdivided and redistributed to potential developers. However, the various land subdivision and the sales of house plot brought about some other difficulties. Deficiencies have been identified in the survey works conducted, which gave rise to shortcomings in the redistribution of plots and encroachment by other sectors. Many farmers are presently farming on state land that is yet to be surveyed .Underutilised land are yet to be surveyed for redistribution to promoters , demarcation of road access in certain areas are yet to be effected.

V.4. The NAFP has adopted a series of strategies to ensure that land designated for agricultural development are protected and are exploited to its optimal capacity. The project component will therefore ensure that a national exercise is undertaken to identify all land resource designated for agricultural development2 and alongside develop a land use plan for a sustainable agricultural development. A Geographical Information System (GIS) for a database on agriculture shall be developed and updated when required. Further land assessment shall be conducted to ensure that land with potential for crop development shall be valorised. State land with potential for agricultural development shall be surveyed and subsequently leased to potential developers. The project will also cater for not only the technical expertise in land planning and GIS, but also small equipment such as GPS for the identification of beacons and training of personnel to manage the information system and for land planners.

B. Infrastructural Development

V.5. Local production of crop has the potential to develop provided the required level of support is given. Crop production for the year 2003 was estimated at 4,250 tonnes, reflecting an increase by 15% as compared to the year 2002. Crop import for the year 2003 was at 3,612 tonnes, reflecting an increase of 3% as compared to the year 2002. With the promotion of modernised technologies such as: cultivation under shade houses; the concept of fertigation and simple hydroponics, potential exist for increase in crop production, especially vegetable production.

V.6. To support these initiatives, government shall have to create a conducive environment for the developers to operate. It is the commitment of government as stipulated in the NAFP to provide the basis infrastructure for the development of agriculture but at the same time it is the responsibility of the land developer to improve their on farm structures such farm water storage facilities farm road, on farm drains , dwelling facilities just to mention a few.

V.7. The project is expecting to address the following:

• Basic farm infrastructures have to be put in place such as motor–able access roads to facilitate market accessibility. The sub component of the project will benefit mainly farmers of the Anse Boileau area whereby an estimate of 10 farmers will benefit. Improvement shall be made on the existing road at Hermitage Anse Boileau to facilitate an estimate of 15 existing farmers.

2 Inclusive of livestock and arable development.


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• Irrigation facilities shall be improved in some areas whereas in other areas, there will be the need for future development. Water storage reservoirs and barrages shall be constructed and extension of water pipes shall be extended to ensure that the additional land that will be put under cultivation would benefit from irrigation water. Irrigation projects have been put up in most of the farming communities; however, the system requires continuous maintenance and the project will cater for the basis materials for the construction and technical support. The construction of 2 water barrages and laying of pipes at Val Den Dor would be required and this will benefit a community of a little more than 10 farmers.

C. Institutional support and capacity building

V.8. The Ministry of Environment and Natural Resources (MENR) through its administrative structure will put in place mechanisms to support the development of the sector. The services provided by the MENR through its functional sections, needs to be further strengthened and continuously upgraded.

V.9. Institutional Support:

• Support for research in integrated crop management and integrated pest management is required. The research will provide more concrete information on new technologies and approach to crop production. Upgrading of the research farm through the procurement of research equipments, research tools shall be made available for the young researchers and technical support would be required

• Upgrading of the soil and plant pathology laboratory to support the research initiatives and to respond to the need of the farming community.

• More transport facilities shall be made available to the technical sections to ensure that technicians have the means to visit the farming community on a regular basis for advice and collection of data.

• Procurement of inputs supply such as small farm machineries, irrigation materials, fertilizer, pesticide, seeds.

• Upgrading of the training facilities at the Farmer Training Centre for more advance training. This would imply the extension of the classroom facilities and procurement of teaching aids to facilitate training.

• Support to the existing credit facilities under the Agricultural Development Fund to enable more farmers to benefit from a loan to improve their production capacity.

V.10. Capacity Building:

• Training for the technical staff, long term and short term training, local and overseas training in the domain of agronomy, plant pathology, entomology, agro economics and land planning.

• Workshops and seminars for farming community and support staff in collection of on farm data, pesticides and fertilizer application and land assessment and environmental impact.

• Short courses in irrigation and rural development.


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VI. INDICATIVE COST

VI.1. The project cost is estimated at about SR39m, equivalent to US$7.1m, as shown below.

Project Cost Summary per Component Component Foreign

(US$ million) Local

(US$ million) Total

(US$ million) % Foreign % Local % Total

base costs Irrigation 0.770 0.330 1.100 70% 30% 18% Equipments 0.640 0.160 0.800 80% 20% 13% Road Access 0.700 0.300 1.000 70% 30% 16% Human Resource Development 0.180 0.020 0.200 90% 10% 3% Credit 1.620 0.180 1.800 90% 10% 29% Farm Inputs 0.810 0.090 0.900 90% 10% 15% Crop Development 0.259 0.111 0.370 70% 30% 6% Total baseline cost 4.979 1.191 6.170 100% Physical contingencies 0.498 0.119 0.617 10% Price contingencies 0.249 0.060 0.309 5% Total project cost 5.726 1.370 7.096 81% 19% 115%

VII. PROPOSED SOURCES OF FINANCING

VII.1. Seychelles is a net importing country and most of the agricultural inputs are imported. External funding will have to be sought through loans from international banking institutions. Funds could be raised through bilateral and multilateral cooperation. The contribution of Seychelles will be limited to the payment of salary of the existing staff, provision of office space and some logistic support.

VII.2. It is difficult at this point to establish the definite role of each partner although it is expected that some form of contribution will come from the private sector including the farmers themselves.

VII.3. Assistance for funding from the international agencies would be directed towards the procurement of input supplies from overseas suppliers, finance the construction roads and irrigation facilities and purchase of irrigation materials, cost for technical advisors and expertise, of for the successful implementation of the project.

VIII. PROJECT BENEFITS

VIII.1. The agricultural sector is an economic sector with various cross cutting issues. The project is expecting to bring about growth in the sector which in return will provide support to other socioeconomic sectors. Seychelles is very concerned over its environment and a lot of efforts is being put to protect the environment. The project will take into consideration all the environmental norms and aspects to ensure a safe and clear environment.

VIII.2. It is therefore expected that the project will generate the following benefits:

• An increase in the crop products for local consumption both on Mahé and Praslin. It is expected that supply of fresh fruits and vegetables will be consistent, so as to sustain the


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demand for both the local population and the tourism industry. More land shall be irrigated and more vegetables shall be cultivated under shade house.

• More households shall be engaged in agricultural development and the conservation of genetic materials of traditional crop.

• Reductions in importation of fresh crop produce thus increase the saving of foreign exchange and reduce the risk of plant pest outbreak.

• Make available raw materials for the development of small scale agro processing industry.

• The surpluses from the farms and home gardens could be absorbed by the processing units and it would encourage more people to venture into agro processing.

• Improve marketing of agricultural produce through value added goods.

• Generate employment for both skilled and unskilled workers of both sexes.

• More people will be engaged in agricultural activities, marketing and processing of agricultural products. This will reduce the number of job seekers and reduce the social impact of employment.

• Increase the competency and self reliance of the stakeholders.

• The producers will be more confident and more alert to address the difficulties that they encounter.

• Better the livelihood of the farming community More revenue will be generated by the farmers and hence raise the income of the family and improve their livelihood.

IX. IMPLEMENTATION ARRANGEMENTS

IX.1. The Government of Seychelles, through its Ministry responsible for agriculture shall be responsible to coordinate the project. The responsibilities shall be shared by government alongside the private sector. A Project Steering Committee shall be put in place to guide the Project Coordinator during implementation.

IX.2. Government through its administrative structure will ensure that office space, support and technical staff are engaged in the project implementation. The Project Coordinator will be responsible to produce quarterly progress report on the implementation phase of the project and ensure that the project is implemented in accordance with the work programme.

IX.3. The financing agency will ensure that proper monitoring of the project is done by an independent evaluator. Supervision missions and reporting would be required.


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X. TECHNICAL ASSISTANCE REQUIREMENTS

X.1. Technical assistance would be required for most of the project components both short term and long term, as outlined below:

• Land and rural infrastructure: Engineers for civil works; Land surveyors; GIS Specialist.

• Institutional support and capacity building: Expertise in research and analysis of research data; Expertise in on–farm irrigation systems; Expertise in data collection and analysis for economic appraisal.

XI. ISSUES AND PROPOSED ACTIONS

XI.1. Land Use Plan. The land reform policy has to be implemented, a national exercise to identify all land designated for agricultural development will have to be undertaken. The exercise will provide a base line to guide agricultural development. The land database will provide adequate information for the planning of agricultural development. The geo– information systems will be a powerful tool for planning. Land with potential for cultivation shall be surveyed and lease to developers.

XI.2. Rural Infrastructures and Technology. An increase in production is anticipated and that can only be achieved if there is a proper setting. The project is set to improve on existing rural infrastructures and that will involve the building of roads and water reservoirs. The planners should take into account the environmental impact, to ensure that there is no land degradation, erosion and pollution of water sources. As for the management of water, the Project Coordinator will have to have close collaborative work with the body responsible for water management, to ensure that there is a fair share of distribution of water. MENR staff should be alert to detect the quality of the input supply and the impact of the technology applied on human health and the environment. Procedures for acquisition of input supplied should be well established to ensure relevant regulations are respected.

XI.3. Institutional Support and Capacity Building. For the successful implementation of the intended development and to increase crop production, the project has to be supported with adequate facilities and human resources. In the current situation, the sector is not properly equipped and there are deficiencies that need to be addressed. For instance, technicians in the crop development division lack the ability to properly diagnose diseases and pest and the quarantine facilities are inadequate to handle cases of new pest and diseases.

XII. POSSIBLE RISKS

XII.1. Risk associated to the project would be related to the socio–economic situation of the country:

• The major risk to the project will be related to the reform in economic policy which the Seychelles is presently undertaking. The country is going through a period of economic difficulties and the inadequate availability of foreign exchange and the government budget allocation for the sector.


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• Human resource capacity of the implementing agency as the ministry is experiencing a brain drain. The professionals are moving from the sector to other sectors of the economy.

• Inability of government to secure the necessary funding agency.

government of the republic of the seychelles

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