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Document of
The World Bank
FOR OFFICIAL USE ONLY
ReponN N.. 9048 -CM
STAFF APPRAISAL REPORT
REPUBLIC OF CAMEROON
FOOD SECURITY PROJECT
MAY 1, 1991
Agriculture OperationsOccidental and Centrel African DepartmentI hi decwment kas a retrcted dItdbton and may be uwd by ripients only in the perfonnance of
their o&icI duties Its conkets my nt otherwise be dcosed io World Bank athorization.
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CURRENCY EQUIVALENTS
Currency Unit CFAF Franc (CFAF)UStI = CFAF 260 */
WEIGHTS AND MEASURES
Metric System
ABBREVIATIONS AND ACRONYMS
APCU - Aerial Pout Control UnitCAA - Calss. Autonoms d'AmortissomentCARE - Cooperative for American Relief Everywhero, Inc.CCCE - Caisse Central- do Coopiration Economique (Franc.)CDC - Commonwealth Development CorporationCIDA - Canadian International Development AgencyCFC - Cr4dit Foncier du CamerounDEAPA - Direction des Enqu&tes Agro-economiques et d. Ia
Planification AgricoleDPA - Direction des Projets Agric)losEEC/EDF - European Economic Community/European Dev-lopment FundFAO - Food and Agriculture Organization of the U.N.FIMAC - Financement d'Investissements pour des Micro-R6alisations
Agricoles et CommunautairesIFAD - International Fund for Agricultural DevelopmentIMF - International Monetary FundMESIRES - Ministry of Higher Education and Scientific ResearchMINAGRI - Ministry of AgricultureMINASCOF - Ministry of Social Affairs and Feminine ConditionMINDIC - Ministry of Industrial Development and CommerceMINAT - Ministry of Territorial AdministrationMINEPIA - Ministry of Livestock, Fisheries and Animal IndustriesMINFI - Ministry of FinanceMINSANTE - Ministry of HealthNGO - Non-Governmental OrganizationOC - Office C6r6alierONCP3 - Office National de Commercialisation des Produits do BasePDA - Provincial Delegate for JgricultureQrs - Quantitative RestrictionsSAL - Structural Adjustment LoanSAP - Structural Adjustment ProgramSDA - Social Dimensions of AdjustmentWFP - World Food Program
FISCAL YEAR
July 1 - June 30
s/ Exchange rate at end-Dc-mber, 1990. The exchange rate of the CFA Franc is fixed at 60:1 tothe French Franc, which is a floating currency.
FOR OMCIAL USE ONLYCAMEROON
FOOD SECURITY PROJECT
STAFF APPRAISAL REPORT
TABLE OF CONTENTS
Page
DOCUMENTS CONTAINED IN PROJECT FILE ..................................... i
KEY FEATURES OF THE AGRICULTURE AND FORESTRY SECTORS .................... ii
LOAN AND PROJECT SUMMARY .............................................. iii
I. INTRODUCTION ........... . ....................... 1
Background ................................... 1
The Economy. . . ............................................... 1The Structural Adjustment Program ... 2Medium-Term Growth Prospects ........ .. 2Agricultural Performance . . . 3Agricultural Prospects and Constraints . . . 4Government Policy and Strategy ... 5
II. FOOD SECURITY POSITION AND STRATEGY .......................... 6
Food Security Position ........ . . 6Availability of Food ...... .................................... 7Regulations and Policies Influencing Food Availability ..... 9Food Accessibility ........................................... 10Food Utilization/Nutrition . .................................. 11Food Security Strategy: Past and On-Going Actions ............ 12Public Investments ........................................... 12Policy Measures . ............... *...... 13Supply Sidc Measures ....... . .............. 13Demand Side keasures . .................. 14Administrative Organization and Institutions ... 16Bank Invclvement in the Agricultural Sector ... 8....... l
III. THE PROJECT . ............ 18
Project Rationale and Objectives . . . .18Project Description . ......................................... 19Detailed Features ............................................ 20Support to Rural Community Micro-Projects ....... ...... 20Locust Control Program ....................................... 22Early Warning and Market Information System ...... 23Market Infrastructure . . ............ 23Nutrition Education . 23
This report is based on the findings of an IBRD appraisal mission inNovember 1989 led by Ms. M. Nguyen, consisting of Mr. D. Mitchnik, Ms.Saadat, Ms. Eastwood (consultant), Messrs. Thomson (adviser), D'Arbre(consultant), Dinnechin (consultant). The appraisal was completed in June,1990 by Ms. Y. Saadat (Mission Leader), L. Wardle, Messrs. K. Apara and D.Mitchnik. The project advisor has bten Mr. P. Thomson of the Food SecurityUnit. Messrs. M.J. Gillette and K. Cleaver are Country Programs Directorand Sector Division Chief, respectively.
This document has a restricted distribution and may be used by recipienits only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
tUble of Contents (gontlnuea4
Paae
IV. PROJECT COSTS AND FISANCINC ............... ...... 24
Cost Zstim&teS....................... 24Financing .......................... 2SOnlending Procedures .,................................... 25Procurement ......................... 26Disbursements ...... ........................... 28Reporting .......................... 29Accounts and Audits. .. . . ................................. 30Post-Project Incremental Recurrent Costs ............ 30
V. ORGANIZATION AND MANAGEMENT .................................. 31
PD&C Program ........................ 31Locust Control...............* .... 32Information Systems . ................................ 32Market Construction.................................. 32Nutrition .......................... 32
VI. BENEFITS AND RISKS ................. . ....... .............. . . .33
Benefits ...................... .... 33Economic Benefits ... .. .................. ..... 33Project Risks ......................... . . ... .34Environmental Impact ............................... . 34
VII. AGREEMENTS AND RECOMMENDATION .3. . ........ .. ..... 35
ANNEXES
1. Food Security Strategy2. Rural Community Micro-Projects2.1. Village Storage3. Locust Control Program4. Early Warning and Market Information SystemS. Market Infrastructure6. Nutrition Education7. Detailed Cost Tables8. Procurement Schedule9. Estimated Schedule of Loan Disbursements10.1 Otganizational Chart10.2 Implementation Schedule10.3 Bank Supervision input into Key Activities11. Economic Analysis of Micro-Projects, Village Storage, and Market
Infrastructure Components
Maps IBRD No. 22073 Food becurity Project
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CAMEROON
FOOD SECURITY PROJECT
DOCUMENTS CONTAINED IN THE PROJECT FILE
A. DOCUMENTS AND REPORTS
1. Etude Pr4liminaire & la mise en place d'un Fonds d'investissements pourdes Micro-R6alisations Agricoles et Communautaires (FIMAC), Mai 1989.Minist4t:* de l'Agriculture, Direction des Etudes et Projets.
2. Les Populations A Haut Risque Alimentaire, Octobre 1989. Etude faitepar CEGOS-IDET, Fonds Europ4en de D6veloppement.
3. L'Amdlioration do la Commurcialisation des Produits Vivriers, Dicembre1989, Sema Group Management Consultants - Fonds Europ6en deD6velo?pement - Tome 1: Le Stockage; Tome 2: La Transformation; Tome 3;Les Transports.
4. Etude de Faisabilite des Actions Visant I l'Amelioration de laComtmercialisation des Produits Vivriers au Cameroun - Besoins enInfrastructures de MarchEs - Volet III/CEGOS Etudes Conjointes SEMK-CEGOS.
5. Etude de la Commercialisation des Produits Vivriers, Juillet 1986 -5.F.S. - MIDAS. Fonds Europeen de Developpement.
6. An Assessment of Nutritional Factors Affecting Children Under 5,Pregnant and Lactating Women, Peggy Thorpe, CARE, Canada. May 1990.
7. Etude de Faisabilite d'un Projet Pilote de Stockage et de Transformationdes Produits Vivriers dans la Province de l'ExtrOme-Nord, GreniersVillageois de Mise en Marche. Mars 1990, Minist&re de l'Agriculture,DPA.
8. Etude en vue de l'Amelioration des Performances de l'UTAVA, Septembre1990, Ministare de l'Agriculture. DPA.
9. Report on the Survey of Pesticide Stocks in Cameroon, OverseasDevelopment Administration, February 1990.
10. Etablissement d'un Systbme National d'Information pour la SecuriteAlimentaire et d'Alerte Rapide, Programme de Cooperation FAO-Gouvernement, Novembre 1989.
B. WORKING PAPERS
1. Food Security, John Gray, Food Studies Grou2, Oxford. U.K., February1988.
2. Credit Foncier du Cameroun, Situation Financi&re au 30 juin 1989.3. Credit Foncier du Cameroun, Rapport d'Activite, Exercice 1988/89.4. Detailed Cost Tables.5. Protucole de Mise & Disposition d'un Equipment A un Groups.6. Note sur la Mise en Place de Financements du FIMAC (undated).
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REPUBLIC OF CAMEROON
FOOD SECURITY PROJECT
KEY FEATU ES OF THE AGRICULTURE SECTOR
1. Popula ion (1983 estimates)
Total a/ 11.2 mIillonRural as X of Total a/ d1Rural Families 1.63 million
2. conomlc Ovorviow
KP/1H.ad of Total Population (US2 1989) k/ 1016Agricultur CNP as X of Totnl 1989 C/ 27Agricultural GNP/H*ad of Rural ripu atlon (USS)S/ 434
S. Land Use #/
Lond Area (km2) 476,UArea Porennial Crops (he) ?$$,onAreo Annual Crops (h) 1,281,09
4. Developent of Production (198/6* productionevolv e or 0 wt e !ro*uct ons st i1r N a ar /
Cocoa 96Robusta Coffee 152Arabica Coffee 61Maize 261Millot and Sorghum (baseo year 1980/81) 1iRiceCroundnuto 256Yams 133Cassava 22Plantains 116Potatoos (baso year 1982/83) 132Sweet Banana 66
S. Principal Inputs
Fertilizor (metric tons) J 156,466
6. Trado (1988)Tota7 exports (CFAF billion 1989/90)(X) 6S1 (1tO)
of which Agriculture 216 (3Cocoa 66 11coffo 62 (52Timber 6jCotton 24Othor Agricuature 49
Total Imports (CFAF billion (X) 1987/08) 469 (101)
of which Food, Bevorgooe, Tobacco hAgricultural Equipmnt 92 (20)
7. Governmont Expenditures (1990-91) f/Total Investment Budget (CFAF billion) 203.4Amount of Invostomnts In Agriculturo (CFAF billion) 29.6Percontago of Investments in Agriculture (X) 14.6
i7WX~'~r Prropration Reporti/Sonk Atlaoc/Estimated
M/ Ministry of Agriculture*/ National Accounts, Ministry of Plan/ Public Investment Program, Ministry of Plan
AFIlASoptember 1996
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C.JMEROON
FOOD SECURITY PROJECT
LOAN AND PROJECT SUMMARY
Borrawers Republic of Cameroon
Beneficiaries: Ministry of Agriculture (MINAGRI)Aerial Pest Control Unit (APCU)Credit Foncier du Cameroun (CFC)Ministry of Health (MINSANTE)
Loan Amounts US$23.0 million equivalent
Terms: Standard IBRD terms, with 20 years maturity, includinga five-year grace period.
Onlendin Terms: Aerial Pest Control Unit (APCU). For the aerial locust
control program in the North and Extreme North Provinces, anamount of US$2.2 million equ.valent would be passed on toAPCU by the Government in the form of a grant to replaceobsolete equipment and provide training.
Credit Foncier du Cameroun (CFC). For the marketinfrastructure component, part of the proceeds (US$4.1million equivalent) would be on-lent from Government to CFCat an interest rate equal to the current Bank rate, plus1.252 to cover for the foreign exchange risk assumed by theGovernment with 20 years maturity, including a five-yeargrace period, and from CFC to municipalities, at an interestrate of at least 13Z, providing CFC with an adequ*a marginfor its intermediation role. Loans to municipalities wouldbe repayable over a maximum of 10 years, including a two-year grace period. An amount of US$0.5 million equiva'entwould be passed on to CFC in the form of a grant forconsultant services.
Micro-Proiecti Financina Scheme (FIMC). For the micro-projects component, part of the proceeds (US$8.5 millionequivalent) would be on-lent from Government to beneficiarygroups for (i) commercial investments, at an interest rateof not less than 15?, with a maximum repayment period of 4years, and (ii) social-type and infrastructure investmenrs,at no interest, with a maximum repayment period of 4 and 10years respectively.
Proiect: The project will create employment opportunities and raisethe purchasing power of rural groups, particularly women,improve feeding and dietary practices through a pilotnutrition education program for high risk groups (childrenunder five and pregnant and lactating women), increaseefficiency in marketing and storage of foodstuffs, and
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reduce the impact of pest attacka on food production th'oughthe strengthening of APCU Crop Protection Service.Investments proposed under the food security project aredesigned to implement part of the Government's food securitystrateg,. Other ongoing projects and projects underpreparation vt;:h include improved services andinfrastructuro to the poor in rural areas shall complete thestrategy. The proposed project includes the followinginvestment components which shall be implemented throughoutthe country, except as otherwise indicatedt
za) in all provinces financing of micro-projects to supports (i)co o rcial cash-generating group investments; (ii) non-commercial social-type investments by community groups whichare non-cash generating (e.g) food processing andtransformation equipwent: and infrastructure investmentssuch as on-farm and village storage, watering points forlivestock, fish ponds, rural tLacks. Commercial investmentsshall be subject to commercial interest rates of at least152 p.a. while non-commercial social-type investments shallbe subject to cost recovery; a pilot village food storageprogram in the Extreme North Province; and institutionalsupport to MINAGRI to assist in project implementation;
(b) locust control in the North and Extreme North Provinces;
(c) early warning for drought and other causes of foodshortfalls, and a market information system over a three-year period;
(d) construction and renovation of market infrastructure inrural and urban communes;
(e) over a three-year period, formulation of a nationalnutrition education strategy based on the development andimplementation of a pilot nutrition education program forhigh risk children and women in one department of theExtreme Northern, Eastern, and Western Provinces, and theurban slums of Douala City.
etOi* a@ rroaccu .orus
PROJECT COST SUMMARY 1/Foreign
Local Foreign Total Exchange X Total-US3 Millions----- X Beno Costs
Micro-Projoets 11.1 7.3 10.4 89.5 57.3Locust Control Program 1.1 3.9 S.0 77.3 16.6Informtion System O.6 0.7 1.3 53.7 4.1Market Infrastructure 3.S 2.4 6.0 40.6 18.6Nutrition 9.6 O.6 1.4 66.2 4.5
TOTAL BASE COSTS 17.0 1 8 32.1 46.9 16U.0
Phy*ical Contingencios 0.5 0.7 1.3 67.9 4.0Pric Contingene;i 1.2 1.2 2.4 50.9 7.4
TOTAL PROJECT COSTS 10.7 17.0 35.7 47.6 111.4(Including Taxes)
Taxes (0.4) (0.0 (9.4)
TOTAL PROJECT COSTS 10.3 17.0 $5.3(Net of Toxee)
Financina Plan
Local Foreign Total_-_-_-- (USS million) ----
Government 1.8 - 1.8Beneficiaries 3.6 - 3.6APCU 1.4 - 1.4Municipalities 1.7 - 1.7IBRD 8.9 14.1 23.0Japan 0.9 2.9 3.8World Food Program 1J - - -
Total 18.3 17.0 35.3
1/ WFP would contribute food for trainers, food for work and grain as working capital for villagestorag. construction under component (a) of project.
Estimated IBRD Disbursements
IBRD Fiscal Year
92 93 94 95 96 97 98 99----------------- (US$ million)-------------------
Annual 1.15 2.99 4.37 5.06 3.22 2.07 2.99 1.15Cumulative 1.15 4.14 8.51 13.57 16.79 18.86 21.85 23.00
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Benef its
The project will improve food distribution and thus reduco the cost of foodto consumers, increase producers' Jncome by averting loss from locustattacks, provide incentives for increasing production and consumption ofdomestically produced food. The project will also create employmentopportunities for rural groups, especially women'R groups, and increaseincome of the poor. By supporting marketing, processing and transformationactivities, the project will help reduce the time devoted by women to thesetasks, enabling them to dedicate more time to family nutrition and childcare. Finally, the project will encourage self-help initiatives,responding to community needs. The demand-driven character of group-investments is expected to be a major factor in ensuring project success.
Risks
The main risk foreseen is the complexity in project implementation andsupervision due to the multisectoral approach of the project. Concentratingthe implementation of most of the compcnents within a single Ministry,MINAGRI. and involving qualified NGOs at the field level will facilitatethe project's implementation and supervision. The ability of farmers torespect management guidelines and repayment of funds is another potentialrisk. Training of group leaders, having repayments made in revolving fundsat the local level managed by groups and their sponsors, use of grouppressure, are administrative incentives designed to reduce the risk ofassociating farmers in the implementation of the micro-projects scheme. Athird risk is related to the capacity of the financial intermediary tomanage the line of credit, the municipalities and rural councils toappraise and manage market construction projects and repay loans contractedfor such purposes. The implication of a viable financial intermediary,Cr4dit Foncier du Cameroun (CFC), in the management of the credit line tomunicipalities, and the provision of training for CFC and councils' staffwill reduce the risk attached to this component.
Economic Rate of Return Productive components: 15Z 1/
Maps IBRD No. 22073 Food Security Project
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I/The ERR represents the minimum yield for eligible micro-investmentsunder the FIMAC component, and market construction projects to befinanced by the line of credit. The economic analysis of micro-investment models shows that the minimum eligibility criteria of 15? canbe easily attained. Market projects have a firancial rate of return of182, based on the average cost of a market module and current marketuser fees.
CAMROO
FOOD SECURITY PROJECT
STAFF APPRAISAL REPORT
I. INTRODUJCTION
Background
1.1 Cameroon is a country of about 475,000 km2 with a population of about11.2 million. Extending from the Atlantic Ocean north to Lake Chad and tothe Southern tropical forest latitudes, Cameroon is one of Africa's mostdiversified countries, with varying climatic zones, altitudes, topography,hydrology, vegetation and soils. Population density is uneven with areas ofhigh density alternating with vast tracts of empty land. The pressure ofCameroon's high population growth, presently at 3.1 per annum, is a factorboth in rural land use and in the migration of youth to the cities.Agriculture, livestock, and forestry production are major potential sourcesof growth, given the favorable population/land ratio (20 per hectare), below-potential yields, and under-exploited natural resources. The mineralresource base is diversified with reserves of oil, bauxite, iron ore andnatural gas.
The Economy
1.2 After a period of robust growth from 1980 to 1985, the Cameroonianeconomy is in the midst of an economic crisis due to sharp deterioration inits terms of trade and falling oil production, exacerbated by economicmismanagement. Government intervention has been pervasive. Until recently,prices of both domestic and export crops were fixed and controlled, as wereintermediary marketing costs and profit margins. Various regulations wereimposed on internal and external trade. The proliferation of parastatals fora wide range of activities, particularly in the agricultural sector, furtherattests to the extent of public sector intervention.
1.3 Between 1985 and 1988 per capita income fell by 22 percent. Theemergence of domestic arrears and the decline in foreign assets created aliquidity crisis in the banking sector which exposed past imprudent lendingpractices, especially to public enterprises, inadequate supervision offinancial institutions, and a rigid interest rate structure. Externalcompetitiveness was eroded by a domestic inflation rate higher than that ofCameroon's trading partners, and by the appreciation of the CFAF against theU.S. dollar. Together, these factors led to a 27 percent appreciation in thereal effective exchange rate between 1985 and 1988.
1 4 Government reacted by cutting expenditures on investment and materialpurchases, thereby contributing to the ongoing slowdown of economic activity.In September 1988, the Government signed a Stand-by arrangement with the IMFto continue with the stabilization measures. The Government also prepared afar reaching ad4ustment program to complement the stabilization effort. In
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June 1989. the Aank's Executive Directors approved a US$150 millionequivalent Structural Adjustment Loan (SAL) for Cameroon to be disbursed inthree equal tranches over an l8-month period.
The Structural Adiustment Program
1.5 The SAL supports the first phase of a comprehensive multi-yearadjustment program aimed at restoring internal and external balances,reducing the domestic cost structure, and removing structural constraints togrowth. A key result of the program would be an estimated 15 percentdepreciation in the real effective exchange rate by 1995, which would helprestore Cameroon's competitiveness vis-&-vis its trade partners to the levelex3sting in 1977 (before oil revenues became important), when the currentaccount and fiscal situation were in equilibrium.
1.6 Decisions have been taken to liquidate 15 State-owned enterprises,privatize 12 and restructure about 30. The Government has cgreed toliquidate three state-owned banks and one mixed-ownership bank andestablished an institution to recover their bad loans. Performance contractshave been drawn up for the restructuring of agricultural parastatals,providing evidence of Government's announced withdrawal from productive andcoamercial activities. The Government has decided to liquidate or to divesta number of agricultural parastatals including those concerned with wheatproduction, the financial institution for agricultural credit, two riceproducing enterprises, and the food supply and seed producing enterprise.Revenue producing parastatals such as SEMRY (rice), SOCAPAL4 (palm oil), CDC(rubber, palm oil, tea), HEVECAM (rubber), and CENEEMA (agriculturalequipment), which have been retained in the public portfolio, are beingrestructured .o become self-financing. Development parastatals such asSODECAO (cocoa), SODECOTON (cotton) and MIDENO (Rural Development inNorthwest Province) are being restructured to increase efficiency and reducecosts. The Government's marketing monopoly for some food and export crops isbeing dismantled through the restructuring of SEHRY (rice) and ONCPB (exportcrop marketing board). Controls of domestic prices and trading margins weredrastically curtailed 'n June 1989 and now cover only a handful of basicconsumer goods. Although much progress has been made towards the realizationof public enterprise reform, including that of the banking sector,substantial shortfalls in go-'ernment revenue and poor internal coordinationamong ministries have deiayed its implementation, and after significantdelays the second Tranche of the SAL got released. Similarly, the IMFprogram lapsed because of revenue shortfalls. However, negotiations for asecond F,und program are about to begin.
Medium-Term Prosoects for Growth
1.7 Medium-term prospects remain weak due to the slow response expectedfrom reliance on internal adjustment measures (i.e. without any complementarychange in the nominal exchange rate). GDP growth is projected at less than2 percent per annum until 1995 and below 3 percent per annum thereafter.Growth in non-oil GDP is projected to be one percentage point higher in bothperiods, the difference reflecting the decline in the petrol.um sector. Theagriculture sector, which remains the backbone of the economy accounting for
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60 percent of the country's employment and 30 percent of its export receipts,is expected to grow between 3 and 4 percent per annum. These projectionsassume a positive growth in per capita food production, reversing the recentdeclining trend. The food sub-sector's performance is critical to that ofthe entire sector as it accounts for more than 50 percent of totalagricultural production and offers interesting export prospects toneighboring markets in Gabon and Nigeria.
Agricultural Performance
1.8 Agriculture'. performance has been modest relative to its resourcebase. During the 1960s, agriculture grew at a rate of about 5.21 p.a, machhigher than the national growth of about 1.42. Its growth rate fell to 3.41p.a. between 1970 to 1975, regained its somentum betveen 1975 and 1982, witha rate of 72 p.a., mainly due to expansion of export crops. After 1982,while the economy grew at 5.61 p.a., agriculture was almost stagnating (1.9?pa. 1982188), mostly because of slow growth of export crop production andunfavorable prices. While food crop production data varies widely, itappears that until recent years, the subsector largely kept pace withpopulation growth. Per capita food production peaked in mid-1970 and hassince declined. Area expansion largely accounted for the growth in foodcrops, although recently area-based growth has been constrained in the mainfood producing centers of the country due to land scarcity. Foodcrop yieldshave virtually stagnated, or even declined, due to inadequate research and,until recently, extension services to the majority of food growers,exacerbated by limited availability of credit, input supply and marketoutlets. The exception has been in rice production, where parastatals havebeen lavishly financed to develop irrigated rice. The livestock subsector hassuffered from a high cattle mortality rate, resulting in substantial importsof meat of about 40,000 tons a year.
1.9 The performance of exoort crops has been mixed over the past 25years. Its very good performance in the early 80s (1981/85-262 growth p.a.in current terms) was followed by an average decline of 61 p.a. between 1985and 1988. Production of conoa and arabica coffee has declined at a rate of2 to 3 percent per year. Low relative prices, which have discouragedinvestments and caused an aging of plantations, plus an agLig workforce havebeen at the root of this decline. Other export crops. c"tton, robustacoffee, palm oil, and rubber have had a better growth record. Relativelyattractive producer prices for robust, coffee and cotton have encouraged therenewal of coffee plantations and the expansion of both area and yield ofcotton., Rubber and palm oil production have increased significantly withgovernment investment in large estates. Smallholder plantations of thesecrops have not yielded good results. Forestry exports have expanded, mostlyin the form of logs. Forest resources remain substantial, but theirexploitation has not been rationalized, resulting in depletion of a fewpopular species, and the risk of the ultimate loss of the entire forestresources if a ratLonal exploitation regim is not adopted.
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Agricultural Prospects and Constraints
1.10 With its diversified resource base and high agricultural potential,Cameroon's agriculture has the capacity to feed its fast growing population,provide higher income levels in rural areas, attract more investment, andearn substantial foreign exchange for the economy.
1.11 Traditional and New ExDorts. Cameroon is physically well endowedto produce most traditional export crops. However, at current world prices,financial losses on cocoa, coffee, and cotton exports resulted in a net drainof CFAF SO billion in 1988/89 for the Government. Policies of fixingproducer prices, independent of world prices, and establishing priceschedules for every intermediate step of the marketing process for cocoa andcoffee have proven to be very inflexible and costly. The system effectivelyimposed heavy taxation on farmers when world prices were higher, while thedeficit accumulated in recent years as world prices dropped could not besustained and farmers' incomes were not protected. Under the StructuralAdjustment Program and the Bank-supported Cocoa Rehabilitation Project, theGovernment has taken steps to restore the financial equilibrium in the cocoa,coffee, and cotton sub-sectors, including reductions of intermediary costsand producer prices for 1989/90. Increased productivity is being promotedthrough an effective plant protection program, the use of high yieldingvarieties to replace old trees and other yield improving cultivation methods.
1.12 Market prospects for Cameroon's non-traditional exports, such as of f-season vegetables, tropical fruit, and processed products, appear promising.Cameroon has preferential access to the European Economic Community (EEC)market under the Lome Convention, which has not been exploited fully.Moreover, trade logistics such as freight capacities are favorable relativeto other competing countries. Cameroon should pursue an aggressive strat...gyto diversify into new products. The private sector rather than tneGovernment has the dynamism to develop new products. However, the privatesector will respond only in a favorable macro-economic environment.Considerable progress has been made in liberalizing trade, removing pricecontrols, and revising the investment code.
1.13 Food Subsector. Prospects for increasing food production arefavorable given Cameroon's wide range of agro-climatic resources, presentlylow yields compared to potential, growing urban population, and relativelyfree marketing system. However, inadequate marketing outlets and post-harvest facilities for storage, preservation, processing, and transportationdiscourage susteined expansion in food products. These constraints arelikely to be felt more keenly following the recent reduction in officialproducer prices for traditional export crops, which would, ceteris garibus,encourage substitution by food crops.1 Livestock is a major source ofincome for 302 of the rural population and offers immediate growth
1This is already the case in the North West Province where male farmers areshifting out of coffee into potato production as a means of securing cash income.This has depressed market prices for potato because of increased supply, with anegative impact on women's income.
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opportunities. The internal and external markets eAist given annual importsof 40,000 tons and neighboring Nigeria as a potential export market. Highmortality is a major cause of production losses. Input supply of medicines.credit and adequate extension in production and marketing are the mainconstraints to further expansion.
Government Policy and Strategy
1.14 The Government's objectives for the sector emphasize food security,promotion of exports and crops used by local industry, and an increase inrural employment and income. The Government has initiated a number ofimportant actions to create a policy environment conducive to meeting itsobjectives, reducing public sector intervention in many spheres. Thisstrategy is to be achieved through: (a) intensification of agriculture; (b)rationalization of public expenditures in ths sector to cut costs andincrease efficiency of public investments; (c) rational development of thecountry's rich natural resources, particularly in the forestry sub-sector;and (d) greater reliance on the private sector for agricultural development.
1.15 Review of an Agriculture Sector Report (Report no. 7486-CAM, March1989) by the Government and the Bank served to orient the Bank's involvementin the sector for the next three years. An agreement was reached to shiftemphasis from traditional investments in large estates and parastatals,government owned industrial plantations, and regional rural developmentprojects towards sectoral operations which would emphasize policy reforms;institution building; private sector investments and improved nationalagricultural services in research, extension, cooperative credit, forestryand animal health.
1.16 Harmonization of extension services, stronger linkages betweenextension and research, and intensification of agricultural production isbeing developed under the Bank financed National Agricultural ResearchProiect (FY88), and a National Agricultural Extension and Training Project(FY90). Reforms and institutional support to enhance a liberal marketingenvironment in the food sector, and increase the participation of the privatesector and the poor in the development process are addressed under theproposed Food Security Project (FY91). Veterinary services are beingprivatized, and institutional issues of the sub-sector being addressed underthe Bank financed Livestock Sector Development Proiect (FY89). The ForestryCode and the forestry tax regime are to be modified, as a condition ofrelease of the third tranche of the SAL, to provide a legal basis for arational exploitation of resources, for promoting agro-forestry and involvinglocal populations in the protecticn of national parks and reserves. Thesereforms are to take place in the context of a rationalized exploitation andconservation regime to be developed under the Forestry and EnvironmentProiect (FY92), under preparation. The Bank is in the process of assistingthe Government prepare an Export Promotion and Diversification Proiect(FY92), to create a favorable institutional and policy environment forprivate investments, and to diversify markets for both traditional and non-traditional agricultural and agro-industrial exports.
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1. FOOD SECURITY POSITION AND STRATEGY
Food Security Position
2.1 Food security in Cameroon is defined as access to sufficientquantities of food to ensure a healthy and active life for the entirepopulation. Essential elements of the food security strategy ares
(a) the availability of adequate food resources; and
(b) the ability of the population in all areas of the country and in a'Icircumstances to acquire sufficient quantities of food to mseetnutrition needs, and to take full advantage of available foodresources.
While Cameroon's food security position is favorable relative to many otherSub-Saharan African countries, with a high ratio of food self-sufficiency ofabout 96? 2, chronic and transitory food insecurity exists in certain areasdue to such factors ass Mi) shortfalls in production as a result ofunfavorable climatic conditions and/or untimely and insufficient pest andlocust control, especially in the northern part of the country; (Li) lowpurchasing power limiting access to food, and health and sanitary facilities;and (iii) inappropriate infant and child feeding and maternal dietarypractices due to inadequate knowledge and insufficient time, on the part ofwomen, to devote to child care responsibilities.
2.2 Food imports have risen steadily (average annual rate of growth offood imports in current terms of llS between 1979/80 and 1988/89). due toincreased domestic demand, partly caused by the low value of the dollar vis-I-vis the CFA franc. In addition, rapid economic growth which accompaniedthe expansion of petroleum production since the late 1970s contributed toincreased relative urban incomes, in turn stimulating the rate ofurbanization to about 5 to 6 percent per annum and creating a similarly rapidincrease of demand for food in urban areas. The rural sector has becomeincreasingly ill-equipped to meet this demand due to inappropriate traderegulations, an aging rural population, lack of access to credit, inadequatetransportation/distribution system, a traditional production/marketingsystem, and stagnant technology. The sector is still very largely self-sufficient in most parts of the country, with the greater part of all cropsretained on farm for self-consumption.
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2This rate is less than 100? because of total dependency on imports forwheat and frozen fish, and large amounts of rice imports, although it would havebeen about 1052, despite imports, if post-harvest losses had been fewer (132 in1986).
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Availability of Food
2.3 CroD Yields Major crop yields are low, remaining well belowresearch potential.3 Increased production, coupled with improvedproductivity of marketing is the challenge to meet the country's growingdemand. Due to recurrent droughts every four years high variability existsin the production of the northern provinces, which accounts for about 35percent of the country's area and 27 percent of the population. In addition,about 1.2 million ha are subject to locust attack which has now becomeendemic in the north, affecting 3 million rural people. The West is betterendowed with a long rainy season, although area expansion is restricted bylimited availability of cultivable land. The East and the South are mainlyforest areas, with poor infrastructure and limited market accessibility.Improving yields through better research and extension, provision for cropprotection (paras. 2.4-2.6) construction of marketing and village storageinfrastructure (paras. 2.7-2.9) would lead to increased production and foodavailability.
2.4 Locust Control. According to Government reports, insect attacks oncrops have reached endemic proportions in the North and Extreme NorthernProvinces of Cameroon, where food security is marginal due to unfavorableclimatic conditions. Traditionally, Cameroon has depended on emergencyassistance from the international community when locust attacks occur.International assistance, mostly in aerial spraying and provision of limitedamounts of pesticides, vehicles and equipment, has been sporadic anduntimely. In view of the recurrent nature of pest attacks in the North andExtreme Northern Provinces, there is a need to institutionalize anti-pestactivities to ensure effective and timely action.
2.5 The Government proposes more systematic protection through propersurveillance and training of farmers to destroy insects during their mostvulnerable stage. However, the estimated cost of providing logisticalsupport and pesticides to the Phytosanitary Units in the two NorthernProvinces is considered to be too high at a time of severe financialconstraints. The Government has requested that funds be included under thisproject examine the cost/effectiveness of the Crop Protection Service and thepossibility of village/farmer participation in this activity.
2.6 Based on the preliminary results of a diagnostic study prepared bythe Government in September 1990, it has been concluded that providingsupport to the Aerial Pest Control Unit (APCU) can be justified in that aninfusio; of funds in the form of a grant from the Government to APCU toreplace obsolete equipment, finance essential training and part of theoperating costs would enable APCU to operate in part on a self-sustainingbasis through receipts from its commercial pest control activities, andpermit APCU to continue supporting Government locust control activities inthe two Northern Provinces.
3For example, maize yield ranges from 1 to 1.5 tons per ha versuc thepotential of 3 tons per ha; sorghum and millet at 0.5 tons per ha compared to 1.5tons per ha.
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2.7 Marketins. Storage and Processing. Food marketing is highlycompetitive as proven by limited traders' margins, between 10 to 20 percent.However, large differences between producer and consumer prices (two to threetimes), and harvest and post harvest prices (3 to 4 times) reflect theshortcomings of market infrastructure, i.e. high transportation costs,restricted information to producers, limited storage capacity, large losses,and small unit volumes per transaction. Around two thirds of food sales aremade immediately after harvest typically in small volumes by women, directproducers or retailers (buyam-sellams, small local traders), who walk longdistances with head loads or use local pick-up taxis to reach open airmarkets. Sales are made directly to consumers or traders. Farmers areusually at a disadvantage because: (i) the trader is better informed; (ii)the farmer has an urgent need for cash; and (iii) any unsold produce must becarried back to the farm. Sometimes, three-sided sheds can be found inmark.t areas. in which products are protected from sun and rain, howeverthere are usually no facilities for longer-term storage or for assembly oflarger volumes of produce. Transport and handling costs are high and theneed for facilitating assembly of larger volumes and reducing unit costs isa major constraint.
2.8 Cameroon's food security system relies heavily on the private marketsfor storage, marketing, and processing. There is a concentration of foodstorage at the farm level, both for consumption and for speculation purposes.Private traders play a minor role in food storage. Official storage is alsotoo insignificant to stabilize supply and price. At the farm level, storagefor consumption purposes suffers high losses estimated between 10 to 70percent, depending on the locations and the crops. It was also observed thatabout 60 to 75 percent of the crops reserved for sales were sold within twomonths of harvest, depressing price levels in producing areas during thisperiod to about one third of the price received ly farmers outside theharvesting season. This is due to farmers' acute cash needs, inadequatestorage capacities, and high losses from existing capacities. Improvementof storage, especially village storage, will stabilize prices, reconstitutefamily stocks, and enhance revenues for farmers, while retaining grain at thevillage level during a longer period of the year instead of the massiveoutflows presently occurring shortly after harvest.
2.9 Most urban and rural market infrastructure is inadequate. Pastinvestments in market construction have been distributed disproportionately.Government has financed the construction of markets only in the major urbancenters (Yaound4 and Douala). No real effort has been made to finance theconstruftion/improvement of markets within secondary cities. The few modernmarkets, financed largely by government subsidies, are oversized andextravagant, with consequent high operating charges, resulting in rental feestoo high for most small retailers. Market construction/renovation isconsidered a priority by many urban and rural councils. At present, thereare 22 urban and 170 rural councils in Cameroon. However, with limitedfinancial resources, the Government is encouraging municipalities to raisemoney from their own sources and from commercial lenders. This policy willrequire the introduction of a cost recovery system by municipalities toservice loans and cover operating costs, including depreciation. The impactof the new policy will lead to the construction of markets in accordance with
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real needs and programmed according to financial capacities. Improved marketinfrastructure is an element in the gradual intensification of urban-rurallinkages, central to increased income and employment generation in ruralareas.
Regulations and Policies Influencing Food Availability
2.10 Trade Regulations. According to the 1989-91 General Trade Schedule,exports are classified into free and regulated categories. Exports of cocoa,coffee, cotton, forestry products, medicinal plants, food crops and animalproducts are subject to regulation for purposes of stabilization,environmental protection, protection of pharmaceutical industries and foodsecurity.
2.11 Food exporters are registered with the Ministry of IndustrialDevelopment and Commerce (MINDIC) and are required to possess a validcollection license issued by the divisional authority in the area ofcollection. The collection license pertains not only to exporters, but toany trader wishing to take produce out of a producing area. The controlledproducts are not defined and seem to be determined entirely at the Prefect'sdiscretion. Similarly, the license does not specify the amount to becollected. Since it is impossible to prove or disprove the origin ofmerchandise, a trader needs licenses from every food producing departmentthrough which he transits to assure immunity from police interference. Thecollection license reqiirement was lifted in May 1990. Elimination of thisregulation on internal trade was a key factor in reducing the distributioncosts incurred in the form of administrative harassment and rent seeking byofficials. Exporters' registration with MINDIC is still required for exportof animals, products of animal origin and fishery products. Removal ofexport authorization would contribute to export diversification and expansionof markets for local production. The removal of prior authorization onexports of animals, animal products, and fishery products, and thesimplification and decentralization of registration requirements forexporters of food products with MINDIC will be made before loan effectiveness(para. 7.2(a)).
2.12 Obtaining a transporter's license from the Ministry of Public Worksand Transport involves a time lag of between 2 to 8 months followingpresentation of an application to the Prefect (including a policy record andcertificate of moral rectitude). Upon receiving the license the transportercan begin trading only on receipt of a public transport card for hisvehicles, renewable annually at a cost of CFAF 100,000, commonly known as the"Blue Card". Such unwieldy procedures are often evaded through bribery bythose who handle food, such as small transporters, farmers using their owntrucks, and small local traders known as "buyam-sellams". The regulationspenalize most of the modern elements of the trade and the small number oftrucking companies. Policy reforms foreseen under an upcoming TransportSector Project (FY93) to streamline procedures under the transport sectorregulations would encourage large scale transport of food, lower unit costsof distribution, and therefore increase availability of foodstuffs on thelocal market at more reasonable prices.
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Food Accessibility
2.13 Credit. Farmer Grouos and Rural Financing. The current illiquidityof the banking system and the dissolution of the state-owned specializedagriculture bank, National Fund for Rural Development (FONADER), havevirtually eliminated formal sources of financing for agriculture. A newagricultural credit bank, Credit Agricole du Cameroun (CAC) was establishedin April, 1987 and plans to open four provincial centers in 1991, and theremaining five provinces to be covered the following year. Loans tosmallholders are not favored by financial intermediaries due to lack ofcollateral. The credit union movement in the anglophone part of the countryhas a successful history of rural credit and is largely self-sufficient. Thecredit unions, while slowly expanding in rural areas have encountereddifficulty in making high risk agricultural credit loans. In the past,subsidized credit has been diverted for housing and consumption purposes withlittle incentive for loan repayment. Future credit programs should respondto farmer needs, including consumption and investment loans, based on theborrower's capacity to repay.
2.14 Informal savings and credit organizations, known as Itontines oronianais' are another important source of funds for the rural population,particularly women. Tontine groups are a special feature of ruraldevelopment in Cameroon, characterized by a long history of informal farmergroups, about 2.000 country-wide, averaging between 100 and 400 per province.Group membership may comprise an extended family, clan or district, or may beestablished with a particular production, activity or focus. These farmergroups, which comprise both men and women, are potentially an effectivecontact point for dissemination of rural credit to a strata of the populationheretofore neglected. Making credit available to this sector of thepopulation for small lucrative or social-type investments in micro-projectsrelated to production, processing and marketing of agricultural products andlivestock, and small-scale infrastructure would lead to increased productionand incomes, an increase in the availability of food for auto-consumption andfor the local market, and diffusion of labor saving technologies,particularly for women, thus providing more time to devote to child-care andimproved family nutrition.
2.15 A study on financing needs of farmer groups was carried out byMINAGRI (Etude Pr6liminaire I la Hise en Place d'un Fonds d'Investissementspour des Micro-Realisations Agricoles et Communautaires (FIMAC), May, 1989).The study assessed the groups' structure, investment patterns, reasons forsuccess, and failure, and the availability of formal credit and otherfinancing in rural areas. The failure of many grass-roots initiatives isfound to be due to poor group management. Groups have little support inevaluating productive activities and managing finances. Means of sensitizinggroup members and raising their awareness is not always providedsystematically. The study found that a strong demand exists for communityinvestments, particularly among women's groups. Since these groups are poorand lack collateral or official status, their access to financing is verylimited and they have to rely on resources from NGOs, and/or from their ownsavings and borrowing. Where credit is provided by a financial intermediaryor a project authority, it was found that the administrative cost is
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prohibitively high, quite often higher than the amounts borroed. With thecurrent liquidity problem of the banking system, and its ongoing reforms, itis not feasible to develop a traditional credit program through the officialcredit circuits to support small, communai micro-projects scatteredthroughout the country.
Food Utilization/Nutrition
2 16 Nutrition Situation. The 1978 National Nutrition Surveyprovides the only readily available comprehensive data on the nutritionsituation in Cameroon. According to the survey, among children between theages of 3 months to 4 years, 17.3Z were underweight according to weight-for-age norms; 35.62 were stunted according to height-for-age norms; and 2.0Swere wasted according to weight-for-height criteria.4 While the rate ofwasting may appear low, the survey was conducted during the post-harvestseason when food supplies are at their peak. The data indicated thatmalnutrition was more prevalent in rural than in urban areas and thatsignificant regional differences exist; the Western, Eastern and North-Western Provinces showed the highest rates of malnutrition. High rates ofmaternal malnutrition, particularly in the Northern provinces, measured byarm circumference and skinfold thickness indicators were also recorded.
2.17 Since the national survey, other, more limited nutrition surveys haveshown that the prevalence of protein-energy malnutrition of high risk groups(children under the age of five years and pregnant and lactating women) hasnot improved, and in the Western, Eastern and Extreme Northern Provinces hasactually deteriorated. Infant b.rthweight statistics collected between 1982and 1988 corroborate this picture of poor nutrition in the country,indicating that 132 of births are classified as low birthweight (less than2500 g), a reflection of continuing maternal malnutrition.
2.18 In addition to protein-energy malnutrition, micronutrientdeficiencies are widespread, the most important of which are iron and iod:iedeficiencies. Iron deficiency anemia is estimated to affect 452 of childrenunder the age of five and 802 of pregnant women. Goiter, an indicator ofiodine deficiency, affects between 352 to 582 of the population in the East,and pockets of the disease also can be found in the North-Western, Center,Northern and Western Provinces.
2.19 Determinants of Malnutrition. The 1978 nutrition survey highlightedlow socio-economic status, illiteracy, overpopulation, inadequate childcare,poor infant and child feeding practices, high incidence of infection and poorutilization of health services as the major determinants of malnutrition.Additional research in Cameroon suggests that seasonal food shortages,inadequate sanitation and access to potable water, and maternal dietarypractices should be added to the list.
4 Nutrition status indicators are expressed as percent of children below -2 S.D. of the median value of the reference populLtion.
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2.20 Within the context of food security the most important of thesefactors are low socio-economic status associated with inadequate access tofood, seasonal food shortages and inappropriate infant and child feeding andmaternal dietary practices. In view of the high ratio of food self-suf f icency (96Z) in Cameroon, improving household access to and availabilityof food would require an emphasis or. improvements in food distribution andhousehold purchasing power. In combination with these efforts, nutritioneducation could play a substantial role in effecting changes in feeding anddietary practices through increasing knowledge to ensure that additionalincome and access to food would be used in ways which improve nutrition.
Food Security StrateRy: Past and On-Going Actions
2.21 Cameroon's strong emphasis on food security is reflected inGovernment's Food Security Strategy (Annex 1). The objective of the strategyis to provide sufficient quantities of food to all the population to ensurea healthy and active life. Elements essential to the strategy are theproduction of sufficient foodstuff and enabling the population to acquire it.The strategy emphasizes measures to: (i) increase food production and cropprotection, storage and transportation facilities, market availability anddistribution channels; (ii) improve access of the poorest sectors of thepopulation by raising their purchasing power through financing employment-generating activities, and improving the health and nutrition of the mostmalnourished sectors of society; and (iii) strengthen institutions throughplanning, coordination, and monitoring of the country's food situation. TheGovernment has taken a number of steps to improve the policy environment(paras. 2.23-2.24), which are designed to reduce Government intervention,encourage private sector participation, increase agricultural production, andliberalize transport and marketing. These actions are expected to go fartowards creating an enabling environment to attain the Government's foodsecurity objectives.
Public Investments
2.22 Before the present financial crisis gripped the country, officialinvestments mainly supported parastatals and estates, whose productionaccounted for about 10 percent of agricultural GDP. Research and extensionreaching traditional farmers, who contribute 90 percent of total agriculturaloutput, were largely neglected. Attempts at regulating prices and supplythrough parastatals such as the Cereal Office (Office Certalier-OC) and theFood Development Authority (Mission de developpement des cultures vivrieres-MIDEVIV) failed; MIDEVIV was neither able to procure sufficient food forcivil servants, nor assure the food security of the urban population at largeand has since been converted to a seed production parastatal, now slated forprivatization. The OC was meant to regulate the food supply and prices, andto produce millet and sorghum seeds on a commercial basis. It has not beenable to regulate the cereals market because of restrictions on commercial
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operations which, in the absence of adequate compensatory funding by theGovernment, resulted in manipulation of limited quantities of cereals.
Policy Measures
2.23 The Government has already liberalized imports except for a fewstrategic foodstuffs such as rice, sugar, and oil palm, for whichquantitative restrictions (Qrs) remain. Domestic production of theseproducts is protected under the equalization funds (Caisse de perequation),established in July 1988 in response to dumping and subsidies from surpluscountries, and the fall in the dollar vis-a-vis the CPA Franc. Under theSAL, the Government is committed to study the impact of Qrs and equalizationfunds before reaching agreement with the Bank on whether and how theseproducts should be protected.
2.24 A liberal marketing environment for foodstuffs will continue. TheGovernment intends to phase out regulations that affect internal and externaltrade. The Government will withdraw from commercial and productiveactivities, as well as stabilization of prices and supplies of grains throughstock holdings, and encourage private agents to assume these functions. Ingeneral, agricultural parastatals are to be either liquidated, privatized, orrestructured for eventual privatization under the SAL program. With respectto the Cereals Office (OC), as a first step, restrictions on commercialoperations have been lifted and management of the OC is to be permitted moreautonomy. The Government intends to limit its financing to the provision ofan initial working capital of about CFAF 300 million to allow operations atexisting capacities of 7,500 tons. The OC should continue operations as aself-financing entity, and compete with the private sector in grain purchasesand sales. It will no longer be required to hold a security stock as in thepast. Signature of a performance contract refltcting the above arrangementshas been effected as a condition of second tranche release of the SAL. Thevoid created by the reduction in OC activities will permit the private sectorto respond to the demands of the marketplace and eisure an adequate supply offoodstuffs where demand exists.
Sui,ply Side Measures
2.25 Removal of supply constraints remains a major concern in theGovernment food security strategy. Rather than financing parastatals forfood production and marketing as in the past, the Government has reorientedpublic investments towards research and extension to reach a larger number offarmers through increasing the efficiency of national systems. Emphasis isplaced 'on improving the productivity of women, the chief producers andproviders of food, in growing food crops. The ongoing extension programaddresses this issue through staff recruitment and training, and tne
S According to the FAO, price regulation is only effective if an agencyhandles at least 20Z of the available quantities. Although this figure can becontested, ,t suggests the insignificance of the amounts purchased by the OC inthe three northern provinces between 1979 and 1988, which averaged 5Z of totalgrain available.
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dissemination to groups of women of relevant messages concerning crops whichthey cultivate such *s maize and tubers. This strategy is being implementedunder the Bank-financed National Agricultural Research Project (Ln 2766 CM)and the National Agricultural Extension and Training Project (Ln 3185 CM).
2.26 Reducing livestock mortality and stemming meat imports also forms anintegral part of the supply side of the strategy. The Government hasestablished countervailirg dutiea on meat dumping, and streamlinedinvestments in the livestock subsector under the Livestock Sector Project (Ln3110 CM). Moreover, a strategy and action plan are under preparation topromote the development of fishery resources to supplement proteinconsumption and to reduce imports.
2.27 Timely availability of inputs is essential for improvingproductivity. The Government has already privatized fertilizer distribution,and intends to extend the policy to include pesticides. Measures to movetowards private distribution of pesticides and reductions in publicsubsidies, are being implemented. With the assistance of USAID, theGovernment is preparing a comprehensive program for private distribution ofthese inputs.
2.28 Improvement in food distribution is another essential element to theremoval of supply constraints. The Government is now preparing a RuralInfrastructure Project with Bank assistance aimed at expanding the feederroad network in the country to food-producing areas, and intr%Aucing simpletransport equipment to reduce the time required for food transport, actionswhich will enhance marketing opportunities, particularly for women. Underthe proposed food security project, produce collection centers will beconstructed in rural centers, and marketing facilities upgraded and expandedin important trade centers in both urban and rural areas. Village storagewill be encouraged to regulate food supply and prices, replacing graduallythe functions of the Office Cerealier. Research and extension for foodprocessing and transformation technology will be provided under the NationalAgricultural Extension and Training Project to reduce post-harvest losses,increase value-added, and reduce imports.
Demand Side Measures
2.29 The Government is increasingly aware of the imnact of demandconstraints on the immediate and long-term food security position of thecountry. Of prime concern is the deflationary strategy of stabilization withits negptive impact on the population's income and its abilLty to acquirefood, and a resulting tendency for further degradation in the nutritionalstatus of the country. In the face of reduced incomes of the most vulnerablegroups (i.e. cocoa, coffee and cotton farmers, field workers in parastatalsto be retrenched), creation of employment opportunities becomes an urgentconcern. The Social Dimensions of Adjustment Project (SDA) (Ln 3206 CM), ishelping to address this problem through various institutional and financialmeasures to facilitate the transfer of civil servants to the private sector.Both the SDA Project and the proposed food security project will supportmicro, labor intensive projects initiated by community groups in the urbanand rural areas respectively, aimed at increasing incomes of the poor.
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2.30 Micro-Proiect Exoerience. A first phase of the micro-enterpriseinvestment program (FIMAC) was launched in August 1990, with financingprovided from the balance of an ongoing Bank Project, PSAR II (Ln. 2567 CH4)and a Japanese Grant. The program finances micro-projects managed bycommunities in eight Departments in the Extreme North, East, South and WestProvinces.6 This phase provides the logistical support required by theprogram, finances the selection and training of the central level staff, thenine FIMAC provincial coordinators, and a first group of departmentalcoordinators. Training is focussing on project evaluation/management. Thefirst phase includes financing for the start-up of about 400 micro-projects(57 infrastructure projects and 340 productive projects) over the next threeyears, including almost 40 projects in 1991. By February 1991, theprovincial commissions, the provincial level staff and a number of thedepartmental coordinators were in place. In the five other provinces, FIMACprovincial project coordinators will be preparing the set-up of thecommissions and staff to launch the program during 1992, including theat ministrative staff in the Northwest Province. All provinces will becovered by 1993. Agreement was obtained during negotiations of the proposedproject, on final operating procedures for FIMAC (paras. 3.4-3.9), which havobeen pre-tested in the field (7.1(b)). Testing of FIiAC investments willprovide a framework for identifying future micro-project investments whichenhance food security (processing, storage, marketing) at the communitylevel.
2.31 Although it is too early to evaluate the FIMAC, its administrationas well as its training component will have to be tailored to regions, giventhe enormous diversity amonE regions. Heavy emphasis should be put in thenorthern provinces and in the East compared to the rest of the country.NGOs' involvement will also have to be more E ught in remote areas than incentral areas, whereas participation of government services minimised to oneof monitoring/evaluating the Project and technical extension.
2.32 Government Nutrition Programs. Government's nutrition programs isimplemented through several ministries. Tne Ministry of Health (MINSANTE)has attempted to provide comprehensive hea&th coverage -- including healthand nutrition education, vaccination and oral rehydration therapy -- tochildren and pregnant women who attend health centers. Each provincemaintains a nutrition unit managed by a trained nutritionist. In addition toMINSANTE, the Ministry of Social Affairs and Womer. Conditions(MINASCOF)trains and equips community workers who carry out home visits. The Ministryof Agriculture (MINAGRI) through the Department of Community Development(DEVCOM) trains staff to educate the public on infant feeding, foodpreparation and weaning diets. The Ministry of Higher Education andScientific Research (MESIRES) carries out basic and applied research onnutrition. The Government also continues to support food-for-work and
6Same procedures and operating guidelines will be applied to the "VillageDevelopment Fund", a component of MIDENO's Second Phase Project in the North WestProvince. The administrative support necessary to evaluate and supervise themicro-projects financed by the MIDENO Project, will be covered by the lIMNCcomponent of the proposed Food Security Project.
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supplementary feeding programs for schools, clinics and hospitals throughdonations from the World Food Prograsm (WFP. In the face of an ever-worsening economic situation over the last three years, all of these programshave suffered severe budgetary cuts.
2.33 Despite financial problems, the Government is determined tostrengthen primary health care services. Recently, in an effort to promoteintersectoral collaboration among technical ministries involved in nua;ritionprogramming, a pilot program including nutrition and health education, foodpreparation and cooking demonstrations, nutrition surveillance, vaccination,and oral rehydration therapy through community participation was begun on apilot basis in 10 Maternity and Infant Protection Centers in Yaound(. Healthand nutrition are also being addressed under the Social Dimensions ofAdjustment (SDA) project, which intends to, inter alia, improve the budgetaryprocess, monitor nutrition status, and provide nutrition education throughthe primary school curriculum and primary health care centers.
2.34 A number of religious based missions intervene on health issues inthe northern and eastern rural areas and provide both preventive and curativehealth services through the primary and maternal child health centers. Inmost cases, nutritional diagnostic methods are well developed. Difficultiesremain in communicating messages to target groups and educating them tofollow recommended remedies.
2.35 Food aid is limited in Cameroon, largely provided by the World FoodProgram (WFP). The main activities of the WFP are development-oriertedprojects which use food supplies as a mechanism for supporting reliefactivities and social projects. While this orientation will continue,emphasis will be increasingly made on purchase of food produced locally anddistributed in the context of development-oriented activities, an approachwhich will be promoted under the Project.
Administrative Organization and Institutions
2.36 Cameroon comprises 10 Provinces managed by Provincial Delegatesrepresenting each ministry and 49 Departments where Government ministries arerepresentedt
Province No. of Departments
Extreme North 6, North 4Adamaoua 5Northwest 5Central aSouth 3Littoral 4East 4West 6Southwest 4
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2.37 Many institutions are involved in food security responsibilities,including Government ministries, local government bodies, cooperatives andnon-governmental organizations. The Ministry of Agriculture (HINAGRI)comprises seven Directorates, three of which, the Direction des ProjetsAgricoles (DPA), the Direction du Developpement Communautaire (DEVCOM), andthe Direction Agricole (DIRAGRI), are responsible for locust controlservices, and community development activities, an area in which the Ministryof Social Affairs and Feminine Condition (MINASCOF) is equally active.DEVCOM. the Ministry of Health (MINSANTE) and the Ministry of HigherEducation and Scientific Research (MESIRES) collaborate in implementinghealth and nutrition peograms. together with NGOs. -he Direction desEnquetes Agro-economiques et de la Planification Agricole (DEAPA) of MINAGRIis responsible for agricultural surveys. Each ministerial ProvincialDelegation is responsible for implementation of individual ministry workprograms and fall under the authority of the Provincial Delegates who in turnare responsible for provincial coordination activities, and who reportdirectly to the respective Ministers.
2.38 The Aerial Pest Control Unit (APCU) was established (Decree No. 85-1201 of August 30, 1985. modified by Decree No. 8811178 of September 8, 1988)as a public institution of an industrial and commercial nature endowed withlegal status and financial autonomy under the auspices of HINAGRI. APCUresponsibilities 4nclude: (i) implementing government policy regarding theaerial treatment of crops, mainly by determining the most economical andeffective methods of aerial treatment for crop and epizootic diseases; (ii)organizing national aerial crop culture campaigns against crop pests likelyto affect rural production; (iii) providing practical guidance to farmers andtraining in agricultural aviation for officials in conjunction with theMinistry responsible for civil aviation; and (iv) coordinating all theactivities for aerial protection of crops, forests and wildlife. APCU ismanaged by a coordinating board comprising: the governor of the NorthernProvince, the Director of Agriculture; provincial delegates of agricultureand chiefs of phytosanitary bases of the zones concerned; a representative ofMINFI; a representative of MINEPIA, Ministries of Defense, Transport andPublic Health. It received no subsidies from the Government during 1989/90and managed to generate sufficient income to maintain partly its operationsthrough the provision of commercial services to agro-industries.
2.39 Credit Foncier du Cameroun (CFC) is a public financial institutionresponsible for urban development and housing. Its Board of Directorscomprises representatives of the Presidency, the supervising ministry (MINFI)and the,public savings and insurance agencies. Under the management of aDirector General, there are two departmentst Finance and Operations. Itsresources, primarily based on a 32 wage tax, as well as savings' deposits,were mainly used for housing loans. CFC's financial situation remainshealthy, despite an end to government's transfer of employees' contributions.CFC is in the process of expanding its lending operations to municipalitiessupported by a two year technical assistance program with French aid (FAC) toreinforce CFC's technical and financial know-how. Under the Second UrbanProject (Ln. 2999-CM), CFC was entrusted to nanage a line of credit tofinance income-earning municipal projects.
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Bank Involvement in the Agricultural Sector
2.40 The Bank has been involved in 25 projects in Cameroon since 1967.Much of the Bank's early lending focussed on nucleus estate smallholderplantation projects. Since the mid-1970s, smallholder projects and regionalrural development projects integrating productive and infrastructurecomponents were emphasized. In 198o the Bank began to move towards sub-sector projects to address key agricultural issues identified as bottlenecksto achieving productivity growth such as research, input supply, extension,marketing and credit. The Agricultural Sector kteview identified productivityincreases as the key to agricultural growth. The Bank's future strategyincludes the following objectives: (a) maximizing food production to ensurefood security for the population and to exploit the country's comparativeadvantage in producing food for export in the region; (b) expanding exportsof traditional and non-traditional products to the extent that they can beabsorbed in the world market at reasonable prices, while improving qualityand diversifying the export base; and (c) creating opportunities for ruralemployment to reduce the income gap between urban and rural areas andstemming rural emigration. The proposed project is a key element in theGovernment's aforementioned food security strategy of supporting agriculturalproduction increases by intensifying smallholder production. 5 provingmarketing and processing, and raising women's agricultural productivity.
2.41 Lessons learnt from past projects have been incorporated in thedesign of the proposed Food Security Project: (i) use of existing public andprivate institutions for implementation rather than creating new ones; (ii)implementation shall be decentralized and mainly carried out by NGOs,farmers' groups and municipalities, limiting Government's intervention to'public good' services i.e. locust control, provision of statisticalinformation, and nutrition education; this marks a departure from previousoperations which supported Government involvement in productive andcommercial activities; (iii) with two thirds of the proposed Loan composed ofvarious credit schemes, the Project finances essentially activitiesidentified, prepared, implemented by beneficiaries and best suited to theirneeds; the highly participative nature of the Project will contribute to itsdevelopment impact; (iv) reliance on budgetary support for counterpartfinancing has been minimised, given the State's severe resource problem,nevertheless the financing plan remains very solid, with importantcontributions to be made by beneficiaries, municipalities, and APCU.
III. THE PROJECT
Proiect Rationale and Obiectives
3.1 The Government has elaborated a National Food Security Strategy(Annex 1). The implementation of priority measures articulated in the abovestrategy has already started under various projects mentioned earlier. Foodsecurity in Cameroon is consistent with growth objectives since the foodproduction subsector has high comparative advantage, and contributes toemployment and income generation. The Project will improve access to andavailability of food by creating opportunities for increasing employment and
19
incomes of the poor and by addressing food distribution constraints. Ittherefore forms an integral part of the Government's development strategy andthe Bank's lending objectives in Cameroon, which are to support growth andmobilize the participation of underprivileged groups in the economic recoveryprocess. A number of other donors are also con, erned witl food security buthave not heretofore taken action due to the lack of defined programs.Government's finalized strategy statement as well as the proposed projectwill translate priority programs into operations designed to have a sustainedimpact on the long term food security position of the country, and mobilizedonor support for a coherent investment program in the sub-sector.
3.2 The project aims at improving food security by creating employmentopportunities, raising the purchasing power of disadvantaged groups in ruralareas, especially women, to enhance their access to food, reducing the impactof locust attacks on food production through the strengthening of the APCUCrop Protection Service, increasing efficiency in marketing and storage offoodstuffs through institutional support, and improving feeding and dietarypractices through a pilot nutrition education program. Investments envisagedunder the Project in support of these objectives, when added to activitiesfinanced under several other projects (notably the SDA Project, the NationalAgricultural Research Project, the National Agricultural Extension andTraining Project, the SAL), will together enable the Government to implementits entire food security strategy.
Proiect Description
3.3 Project components, to be implemented in the entire country unlessotherwise stated, will include the followings
(a) self-help initiatives by community groups in micro-projects such asinve3tmentb in commercial cash generating activities (e.g.retailing), non-comuercial productive activities and infrastructureprojects (e.g. food processing and transformation equipment,watering points for livestock, fish ponds and rural tracks), in theentire country except for the Northwest Province, plus an emphasison village storage in the Extreme North; training; and institutionalsupport to HINAGRI in all provinces to assist 4n projectimplementation;
(b) locust control in the North and Extreme North Provinces over athree-year period;
(c) establishing an early warning combined with a market information, system over three years;
(d) construction and renovation of market -'acilities in urban and ruralcommunes;
(e) developing and implementing a pilot nutrition education program,over a three year period, for high risk groups (children under fiveyears and pregnant and lactating women) in one department in theExtreme Northern, Eastern, and Western Provinces, and the urbanslums of Douala City; and formulating a national nutrition educationstrategy;
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Detailed Features
3.4 Support to Rural Community Micro-proiects (Annex 2). Under the FIMACcomponent, financial assistance, including group credits, will be madeavailable for the implementation of micro-projects initiated by communitygroups, based on experience gained under the pilot program (para. 2.30).Financing will not exceed 60-702 of project costs submitted by groups whowill finance the balance in cash and in kind. Reimbursements would bedeposited in a local bank or post office account managed by groups'sponsoring organization (para. 3.8) (pages 5-8; Annex2). Consequently thefunds will be retained at the decentralized local level. The program'sobjective is to allow local groups to manage project works and project funds,while minimizing administrative costs and delays. Recovered funds will beused to finance future investments by the same group or other groups. Inthis mairner, management of local level rural investments related to foodsecurity needs shall be vested in groups of people, rather than inGovernment.
3.5 The community group investment approach has already been tested withsuccess on a pilot scale in Cameroon. Revolving funds, similar in concept tothe 1tontinesQ, the traditional savings, group in Cameroon, have been set-upin the Northwest province by NGOs for groups whose members make individualuses in turn and reimburse the fund. Under the Project, revolving funds forgroups will be set-up in all provinces, except in the Northwest Provincewhich already benefits from similar existing schemes.
3.6 Two kinds of financing will be made available for group investmentsunder the FIMAC componentt (i) an experimental micro-credit program forcommercial cash generating investments (e.g. retailing, manufacturing), atcommercial interest rates (not less than lS2/year), with a maximum repaymentperiod of 4 years, and a maximum loan amount of CFAF 4,000,000 (US$16,000equivalent, and (ii) financing, with cost recovery, for non-commercialsocial-type investments for improving food self-sufficiency of groups (e.g.farm tools and equipment, and infrastructure such as village storage,livestock watering points, fish ponds, rural tracks), with financing not toexceed CFAF 500,000 (US$1,900 equivalent) and a repayment period of less than4 years in the case of small equipment, and a maximum financing amount ofCPAF 6,000,000 (US$23,000 equivalent) and a repayment period of less than 10years in the case of infrastructure projects. (Chemical inputs, social andcommunications infrastructure would be excluded under the program.)
3.7 The credit component will make credit available to beneficiary groupsnot presently served by commercial banks, by making use of institutionsbetter able to reach those groups. This would be done in full consistencywith the Bank's new guidelines for financial sector operations, throughapplication of market-level interest rates: funds would be onlent by theGovernment to the borrowers at a rate equivalent to commercial-type rates inthe agriculture sector, currently at 15 percent.
3.8 The program will complement overall efforts to rehabilitate thefinancial sector which are being undertaken under the Bank-financed SAL.
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These rehabilitation efforts aim in particular at restructuring majorcommercial banks in order to restore their long-term viability and atgradually reestablishing adequate liquidity in the banking sector, therebyimproving the system's ability to finance productive investment in theeconomy. Parallel actions are aimed at improving the banking environmentthrough the restoration of the necessary financial discipline and of anefficient, competent and transparent judiciary system.
3.9 . Beneficiaries of the FIMAC component will be rural groups, averaging15 members, recognized by traditional and administrative authorities, andsponsored by an NGO or a Regional Development Agency. The group will have toform a management committee, and contribute between 30 to 402 of the projectcost in kind and cash. An agreement will be concluded between the group andits identified sponsor and the departmental coordinator of FIMAC, describingthe project and its costs, the amount of financing from FIMAC and the groupas well as the reimbursement schedule (sample agreement end-Annex2). Incomebased poverty indicators have been established to ensure that target groupswould be the beneficiaries of loans.
3.10 Reimbursement Procedures: Repayments will be deposited in asavings account in the name of the sponsor (NGO, Village DevelopmentCommittee, Area Development Company). The sponsor should be sufficientlybroad-based to cover several groups at a time. Transactions on the accountwill require two signatures from the sponsor and the departmentalcoordinator, a staff from Ministry of Agriculture. Funds can be used foranother project once all repayments for the previously financed project aremade. Funds reconstituted can be rotated among groups under the same sponsoragency. The sponsor agencies, quite often NGOs or parapublic areadevelopment companies, will be responsible for managing the rotating funds(FIMAC scheme on page 7-Annex 2). In case of a default, the provincialcommission (para. 5.3) of FIMAC will decide on the use of funds alreadydeposited. In case of non-reconstitution of funds, no further financing willbe provided to the group.7 Equipment financed by FIMAC will be reposessed andgroup collateral seized.7
3.11 Training of community leaders and participants in communityprojects will be an important element of the FIMAC program, ranging fromawareness-raising to workshop training for operation and maintenance, andfina-.al discipline and management training for group leaders. Trainingwill focus on implementation of micro-projects, and will also includespecialized technical training on production and processing activitiesfinanced by FIMAC. Training will include regular sessions, workshops, aswell as brief organized visits to technical centers. Training will becarried out by specialized training institutes, NGOs, and the field staff oftechnical ministries (MINAGRI, MINASCOF, MINEPIA) depending on the demand.
7Collective ownership of assets is uncommon among the rural poor, hence thedifficulty of introducing the concept of group collateral. Nonetheless, theongoing FIMAC program is in the process of developing procedures requiringcollective assets, when they exist, to be offered as security by participantgroups.
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Financing requests for training will be prepared and submitted by sponsors.who will select from a menu of training options made available by thedepartmental coordinator. Requests will be examined and approved by theprovincial commission. A maximum training allowance of CFAF 80,000 andsupervision allowance of CFAP 80,000 per micro-project has been included inproject costs. Groups will contribute to the financing of the training up to5OZ of total cost. On average CFAF 4,000 per trainee will be paid by groups(average group size would be 10 to 15).
3.12 It is expected that about 1700 micro-projects benefitting about 2,000groups will be implemented under the *ntire program during the next fiveyears. Progression in the number of projects will be gradual, starting with40 projects in 1990/91, in order to test the operational nature of guidelinesand identify successful activities. Two thirds of projects shall be financedin project years 4 and S. The program will constitute a transitional phasefor disadvantaged communities before they can have access to an establishedfinancial intermediary. During this period, groups will receive support tofinance investments while being trained to assume financial responsibilitiesi.e. analyzing costs, reconstituting funds.
3.13 The micro-projects in the Extreme North Province will emphasize apilot program of village storage (Annex 2.1) for about 200 groups of farers.The construction of storage facilities will be financed under the FIMACprogram. The World Food Program (WFP) will finance the purchase of smallequipment, and half of the initial stock to enable the group to start withsome working capital. Training will be provided to farmers' groups in properstorage techniques, and the management of the stock. If successful, theprogram will serve as a model to be replicated in other parts of the country.Execution of village storage component will be similar to the infrastructuremicro-projects under the FIMAC component.
3.14 Technologies for conservation and processing of food crops will beaddressed under the National Agricultural Extension and Training Project,which will carry out research and on-farm demonstrations, and providetraining to extension workers as well as to farmers on existing and newtechnologies. The financing of equipment and materials required for thispurpose will be included under the FIMAC program.
3.15 Locust Control Program (Annex 3) Support to aerial crop protectionservices in the North and Extreme North Provinces will be provided to theAPCU in the form of a grant from the Government to finance vehicles,equipme4t and training to enable APCU to provide anti-locust treatmentsthrough aerial spraying of some 652 of the area infested, and ass;st inground treatment activities. APCU shall generate sufficient funds to operateits commercial activities, provide its own operating budget and contributeabout 20Z annually to the recurrent cost of the Government's anti-locustcampaign, and the balance to be financed by government contribution to theproject. Specialized training in crop-dusting techniques will be providedfor pilots, and aircraft-maintenance and repair training for aircraftmechanics. A study will be financed under the project through MINAGRI todetermine the cost/effectiveness of the ground treatment activities of the
23
Crop Protection Service and the possibility of farmer participation in cropprotection in the two Northern Provinces.
3.16 Information System for Early Warning and Markets (Annex 4). Toreinforce Government's contingency planning capacity in face of severeshortfalls in production, as well as enhancing the transparency of markets,regular information of food markets and food situation will be provided underthis component.
3.17 Over a three year period, the project will provide technicalassistance, equipment, and training for establishing and operating an earlywarning and market information system within MINAGRI to collect, analyze, anddiffuse information related to food security. The outputs of this systemwill be:
(a) the publication and distribution to Government planners of aquarterly news bulletin by Province that will analyze the foodsupply and demand situation based on information on weather,production, input supply, prices, volume of main food crops traded,stocks, food imports and exports, and include a qualitative note onthe population in the high risk zones received from NGOs, fieldobservations from provincial delegations of MINAGRI, and fromdevelopment parastatals;
(b) a weekly radio program reporting pricing and marketing informationfrom selected market points throughout the country.
3.18 Construction/Renovation of Market Infrastructure (Annex 5). Underthe Project, a limited amount of financing (CFAF 1 billion) (US$ 4.1 millionequivalent) will be made avaiiable to the Credit Foncier du Cameroun to belent to municipalities according to criteria detailed in para. 5.8 forconstruction of market infrastructure. An amount of US$0.5 millionequivalent will be provided for training seminars for rural and urbancouncils on the new policy to finance market infrastructure by own sourcesand bank borrowirg rather than government subsidies, the criteria to beadopted for financing, project evaluation, and financial management ofmarkets. If successful, further financing could be provided under futureprojects.
3.19 Nutrition Education (Annex 6). This component of the project isdesigned to improve nutrition of high risk groups (children under five yearsand preonant and lactating women) by effecting changes in inappropriate childfeeding and maternal dietary practices, and to provide the foundation for thedevelopment of a national nutrition education strategy. Activities supportedunder the project include: research and analysis of child feeding andmaternal dietary practices; formulation of a national nutrition educationstrategy; educational materials development and testing; pilot programimplementation in several departments of the three Provinces with the highestrates of malnutrition; evaluation of the pilot program and the development ofguidelines for the expansion of nutrition education throughout the country.Staff will be trained in qualitative research techniques consisting ofcollecting qualitative data (focus group, ethnographic accounts and testing
24
within households). data analysis to identify problems and elaborate astrategy, and production of pedagogical material. Training will be providedin communication techniques to about 400 field agents in the use ofpedological materials and dissemination of messages. Training will beprovided to members of the technical coordinating committee and field staffin the design, data collection and analysis for program evaluation. Trainingwill emphasize individual counselling sessions, group discussions, andinterpersonal communication.
IV. PROJECT COSTS AND FINANCING
Cost Estimates
4.1 The cost of the Project has been estimated at CFAF 9,2087 billion(USS 15.7 million equivalent), of which CFAF 4,420 billion (US$ 17.0 millionequivalent) or 462 is foreign exchange. The estimates are based on pricesprevailing in July 1990, including US$0.4 million in taxes and duties.Physical contingencies of 10 percent have been included on all costs, exceptthe FIMAC fund and CFC line of credit. Price contingencies are based on theBank's projections of international price increases (.1,-.04,.016,.038,.040percent from 1992 to 1996). Local inflation is estimated at one percentlower in accordance with the inflation rate targeted under the SAL. Detailedcost tables are provided in Annex 7 and in the Project File.
PROJECT COST SUMMARY 1/
ForoignLocal Foroign Total Exchangs X Total------ USS Millono X Base Costs
Micro-Projects 11.1 7.3 18.4 89.6 67.3Locust Control Program 1.1 3.9 6.0 77.3 16.8Information Systeva 0.6 0.7 1.3 63.7 4.1Market Infrastructure 3.5 2.4 6.0 40.6 18.6Nutrition 0.6 0.8 1.4 66.2 4.6
TOTAL BASE COSTS 17.0 15.1 32.1 46.9 100.0
Physical Contingencies 0.6 0.7 1.3 67.9 4.0Price Contingoncies 1.2 1.2 2.4 50.9 7.4
TOTAL PROJECT COSTS 18.7 17.0 86.7 47.6 111.4(Including Taxes)
Taxos (0.4) (0.0) (0.4)
TOTAL PROJECT COSTS 18.8 17.0 36.3(Not of'Taxes)
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Financ kg
4.2 Components will be financed as follows:
Municipal-Govt. Oroups APCU *Itltilo ImR Japan Totol
Micro-Projects LU NlT3 2M. 3 -ULocust Control 1.6 1.4 2.3 5.4Information System 1.5 1.6Market Infrastructuro 1.1 4.6 6.8Nutrition 1.5 1.5
Total 1.6 8.6 1.4 1.6 238. 8. 8 5.86X 1iX 4X 6X 65X 11! 1U!x
4.3 The proposed loan will be made on standard terms vith 20 year maturityand a grace period of 5 years. Japanese co-financing is being used tofinance technical assistance, vehicles and equipment, training and operatingcosts under the FIMAC and Early Warning and Market Information Systemcomponents.
Onlending Procedures
4.4 CFC. US$4.1 million equivalent will be on-lent from the Governmentto CFC, with 20 year maturity and a grace period of 5 years, at a fixedinterest rate equal to the on-going Bank rate, plus a 1.25Z margin to coverfor the foreigr. exchange risk assumed by the Government, and from CFC tomunicipalities, at an interest rate equal to 132 or more, thus providing CFCwith an adequate margin for its intermediation role. Loans to municipalitieswill have a maximum maturity of 10 years, including a grace period of 2years. On-lending terms to municipalities are specified in a projectagreement between the Bank and CFC and in a subsidiary loan agreement forGovernment retrocession of the loan to CFC. Execution of the subsidiaryloan agreement between the Government and CFC will be a condition of loaneffectiveness (para. 7.2(c)). The municipalities way borrow up to 70Z ofproject costs which should not exceed US$ 300,000 equivalent per project withan economic rate of return of at least 15Z. Subprojects above USS 150,000equivalent will be submitted to the Bank for prior approval. An additionalamount of US$0.5 million equivalent will be passed on to CFC in the form ofa grant for training and information ac.ivities.
4.5 FIMAC. Rural community groups can borrow under FIMAC up to 75Z oftotal cost of a proposed project, with an economic rate of return of 15Zdepending on the nature of the project. The maximum amount of each financingwill be US$l,900 equivalent and US$16,000 equivalent for non-commercial andcommercial activities, respectively, and US$23,000 equivalent forinfrastructure projects. Commercial activities would be financed throughcredits at a 15Z rate of interest, with a maximum repayment period of 4years. Social and infrastructure projects would be financed, at no interest,with a maximum repayment period of 4 and 10 years respectively. Withdrawalsmade under the FIMAC component will be authorized by the Provincial Delegatesfrom the Agriculture Ministry and Provincial Controller of Finance, fordirect payments to suppliers of the project and to sponsors for training. Asavings account under the sponsor's name in the nearest bank or post office
26
vill be the depository of reimbursed funds. This account will operate underthe signatures of the sponsor and the FIMAC departmental coordinator (page 5Annex 2). Reimbursed funds will finance projects submitted by the samegroups or other groups supervised by the same sponsor. Management of theserevolving funds will resemble that of traditional savings group in thecountry. No banking establishment will be created, interest paid only oncommercial cash-generating investments, and relatively low administrativecosts incurred. The funds, which in most previous donor projects, have beenmanaged by Government to undertake infrastructure investment, or financeproductive operations with low recovery rates, will be used by local groupsto undertake investments.
4.6 APCU. For the aerial locust control program in the North and ExtremeNorth Provinces, an amount of US$2.2 million equivalent will be passed on toAPCU by the Government in the form of a grant to replace obsolete equipmentand provide staff training. Execution of a grant agreement between theGovernment and APCU will be a condition of loan effectiveness (para. 7.02(d)).
Procurement
4.7 All goods and services funded under the Bank loan will be procured inaccordance with Bank guidelines (Annex d).
27
Procurowent Arrgnaemntesg/
International Totalitems L%t LC Local Other N.A. CoS
Shoppino
Vehicloe 1.1 1.8
IquIpeent 2.0 1.2 3.1(2.0) 4 24
Rural Micro-InvostmentCrodit (fIMAC scheme) 13.0 18.6
(10.2) (19.2)
CFC LIne of Credit 4.2 1.6 6.0(8.0) (1.1) (4.1)
Technical Aseistance b/ 2.9 2.9
21 | 1
Training c/ 2.6 2.6
Operating Costs 6.1 6.1
TOTAL 3.3 6.4 15.2 2.9 6.6 85.4Bank Financing (2.9) (.4 (11.8) (1.0) r I (23.9)Japanoe Financing iO.3] (o7] (1.9] EsS CIS]
X Amountrs in round parentheses () indiaer loank financing *nd amounts square parenthee. 1 denoteJapanese financinl
pj Include aounts tor itoes financed by Japan which will be procured following Sank guideline.(Numbers may not add due to rounding).
b/ Recruitment of technical assistance will follow Sank guidelines and will be subject to priorreview by tho Bank.
c/ Training costs include oversess training for APCU staff, preparation of numrous course for localstaff, training of bendficlary groups at the village level under the micro-investmnt (FIMAC)component, training of MINSANTE staff, *aterials and training-related travel.
All contracts for vehicles, valued at a total amount of US$1.3 million, will beprocured under ICB. Contracts for equipment exceeding US$50,000 will be procuredunder ICB, while those below US$50,000 up to an aggregate of US$1.2 million willbe procured under LCB because of the relatively small value of these contracts.CFC line of credit mainly involves construction of markets scattered throughoutthe country. LCB procurement will be followed for contracts exceeding US$50,000aggregating to about US$4.2 million with Bank financing limited to US$3.0million. These will include local advertising, public bid openLng, clearlyspelled out criteria for bid evaluation and award to the lowest bidder.Procurement for small and simple contracts less than US$50,000 and aggregatingto about US$1.6 million with Bank financing limited to US$1.1 million will bebased on local shopping with a minimum of three quotations. Procurementarrangements under the rural micro-credit (FIHAC) scheme, to be relent to thebeneficiaries for tools, materials, and small equipment, each contract will beless than US$25,000, scattered throughout the country, up to an aggregate of
28
US$13.6 million will follow normal commercial practices and as a minimum will bemade on the basis of local or international shopping, with price quotationsobtained from not less than three reputable suppliers (para. d(l); d(2) page 5of 16, Annex 2), not excluding participation from foreign based suppliers.Operating costs for vehicle maintenance and fuel, travel, office expenses andmiscellaneous items for MINAGRI and MINSANTE will follow Government proceduresacceptable to the Bank. The threshold for prior review of procurement by theBank will be US$50,000 per contract.
Disbursements
4.8 The Bank loan will be disbursed over a six-and-one-half year period(Annex 9). The schedule of disbursements is based on the standard Camerooniandisbursemer - profile for agricultural projects. Operating expenditures, trainingand research, and contracts for less than US$25,000 will be disbursed againstStatements of Expenditures (SOEs). Claims for other expenditures will bereimbursed on the basis of supporting documents. Documentation of SOEs will bemade available for review by Bank supervision missions. Two special accountswill be opened in a commercial Bank in Yaoundd and managed by the Caisse Autonomed'Amortissement (CAA), each representing about four months of expenditures, asfollows: (i) special account of US$1.5 million for MINAGRI, APCU, aad MINSANTE;(ii) special account of US$500,000 for CFC. The special accounts will bereplenished by the Bank against documented expenditures and upon receipt ofwithdrawal applications. Japanese cofinancing will be disbursed first, whiledisbursement of Bank financing will commence only when Japanese funds areexhausted.
4.9 Bank financing of incremental operating costs has not been provided ona declining percentage basis over the life of the Project. Support to certaincomponents of the project, such as FIMAC, is noL expected to continue afterproject completion since the objective of the program is to bring small investorsinto the mainstream of the commercial credit system. Similarly, it is expectedthat APCU will increase its commercial activities over time and will be in aposition to make a greater contribution to government locust control activities.In addition, of the project's total recurrent costs (US$6.0 million equivalent),Bank financing amounts to 28? of total, significantly below the maximum permittedby Bank rules. Remaining costs are covered by the Government (292), agovernment agency -APCU- (23S), beneficiaries (31). and cofinancers (17Z).
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Disbursements
Percentage ofAmount Expenditures to
Categorv (US$ Million) be Financed
MINAGRISub-projects under Micro-investmentCredit (FIMAC scheme) 8.5 1002 up to 751 of esttiated sub-
project cost
Vehicles, equipment and materials 0.9 1002 of foreign expenditures8s2 of local expenditureos
Consultant Services andTraining 2.0 100X
Operating Costs 1.0 1002
CFC Line of CreditSubloans 4.1 1002 up to 702 ot estisated sub-
project coatConsultant Services & Training 0.5 1002
APCUVehicles & Equipment 2.0 1002 of foroign expenditures
852 of local expeodituyrTraining 0.2 1002
MINSANTEVehicles & Equipment 0.4 100X of foreign expenditures
852 of local *xpendiureoConsultant Services,& Training 0.6 100o
Operating Costs 0.6 1002
Unallocated 2.2
TOTAL 23.0
Revorting
4.10 Annual work programs, including training programs, and budget for eachcomponent of the project will be prepared before the start of each budget cycleby MINAGRI, MINSANTE, APCU, and transmitted by MINAGRI to the Bank, for itsreview and approval. Semi-annual progress reports will be prepared by eachimplement.ng agency assessing physical, institutional and budgetary progressagainst agreed annual programs of operations and targets. CFC's reports willinclude progress on the use of funds by councils for the construction and
30
renovation of markets. Assurances were obtained during negotiations that, notlater than November 30 1991 for the first year, and no later than June 30 of eachyear thereafter, the work programs and budgets will be forwarded to the Bank forreview and approval (para. 7.1(a)) Under the FIMAC component, operating budgetsfor provincial and departmental administration of FIMAC, will be prepared foreach province by DPA staff and consolidated into a global work program and budgetby FIMAC staff at the central level. In addition, an evaluation report ofactivities undertaken during the previous 12 months period, will be submitted tothe Bank each year by FIMAC's central level staff, along with its work programsand budgets. Approval of FIMAC's work program and budget, and satisfaction withthe progress of activities undertaken during the previous year, includingacceptable audits of provincial FIMAC accounts, and capital reconstitutionaccounts in the departments (para. 4.11), shall condition disbursements afterOctober 1 of each year (para. 7.3). A mid-term review of the FIMAC componentwill be undertaken jointly by Government and the Bank by December 31, 1994, inorder to review: implementation of group projects; status of capitalreconstitution accounts on a random basis; training of the various farmer groups;and the efficiency in the administration of small rural micro-projects.
Accounts and Audits
4.11 Each executing agency of the above-listed components (MINAGRI, MINSANTE,CFC, APCU) will maintain accounting records for Project costs, consistent withsound accounting practices which will reflect fairly, in accordance withinternational accounting principles, the financial situation of the Project.Project financial statements, operations of the special accounts, as well asannual financial statements of CFC and APCU will be audited by a qualifiedindependent firm under procedures satisfactory to the Bank. Audited accounts andreports, will be submitted to the Bank for review within six months of the endof each fiscal year. The audit will also assess as to whether goods and serviceshad been procured in accordance with procedures acceptable to the Bank, and wouldprovide an opinion on the reliability of the SOE procedures. Unsatisfactoryreporting or failure to provide accounts within 90 days of the above deadlinewill cause for reverting to disbursements on documentary evidence. In addition,in view of the numerous deeintralized accounts under the FIMAC component, six-monthly verification reports by a qualified independent accountant of provincialand departmental fcapital reconstitution) accounts, the latter on a random basis,will be required to evaluate (a) statement of expenditures authorized andsubmitted to CAA by provincial delegates of MINAGRI and MINFI, through thecentral administration of FIMAC; (b) status of reconstitution accounts, includingrepayment schedules and interest payments by beneficiary groups.
Post-Proiect Incremental Recurrent Costs
4.12 The Government's Public Investment Program has earmarked an amount ofCPA? 200 million (US$770,000 equivalent) in 1990/91, and CPAP 500 million(US$1,900,000 equivalent) a year for the following three years on projectexpenditures, totaling CPA? 1.7 billion (US$6.5 million equivalent). Inaddition, an amount of CPA? 70 million (US$270,000 equivalent) is included forAPCU activities. Annual operating costs following the project period areestimated to be CFPA 580 million per annum, oiL O.3 of Government recurrent
31
expenditures (excluding wvges and interest payments) of about CFAF 170 billionin 1989/90.
V. ORGANIZATION AND HANAGEMENT (Annex 10)
5.1 All components will be supervised by MINAGRI. The market infrastructurecomponent will be managed by CrEdit Foncier du Cameroon, in collaboration withMINAT (Ministry of Territorial Administration). the nutrition component will beimplemented by the Hinistry of Health (HINSANTE), and the locust program will beimplemented by APCU. The overall coordination of project administration will bedone by MINAGRI. MINAGRI, in cooperation with other implementing agencies, willbe responsible for preparing a general annual report, a global budget and workplan of all project components for the following year. An implementationschedule is attached (Annex 10.2).
5.2 FIHAC Program. The Direction des Projets Agricoles (DPA) of MINAGRI willbe responsible for implementing the FIDAC program. At the central level inYaoundd, staff from MINAGRI will be appointed to prepare methods and proceduresfor project selection and evaluation, train and provide technical support forexecution of project at the decentralized levels in the 9 provinces and theirdepartments, consisting of: (i) a project director; (ii) an assistant directorsupported by a long-term consultant experienced in micro-project implementation;(iii) an administrative and financial controller, assisted by an accountant; (iv)a field staff upervisor; and (v) two MINAGRI training coordinators.Administration of the project at the central level will coordinate activitieswith HINASCOF and HINEPIA, and will establish a data bank to monitor micro-project progress. Appointment of key staff at the central level, i.e. theproject director, assistiait director, administrative and financial controller,field staff supervisor, and two training coordinators, will be made prior to loaneffectiveness (7.2 (e)).
5.3 Approval of all micro-projects and management of funds will bedecentralized to the provincial level, under supervision and control of thecentral DPA/HINAGRI. In each province, a commission under the chairmanship ofthe Governor or his representative, and with participation of MINASCOF, HINEPIA,MINAGRI, HINPAT (P2.an), MINFI (Finance), and NGOs shall meet to examine andapprove micro-projects documents prepared by groups. The commission will beassisted in its deliberations by two provincial staff from MINAGRI in charge ofadministering the project, under the supervision of the Provincial Delegate ofAgriculture. In addition, provincial staff will assist in the preparation ofdocuments, monitoring of fund disbursement as well as project execution bygroups, and supervision of the training program for departmental staff andfarmers. At the departmental level, a MINAGRI staff, to be nominated as actordinator for the FIMAC component, will be the point of contact for fanwrrsgroups, NGOs, or other agencies interested ir the FIHIC program. Thedepartmental coordinator will also assist in preparing the financing documentsto be forwarded to the provincial administration statt for FIMAC and inmonitoring project execution. Financing applications will have to be preparedby sponsor agencies and processed through departmental coordinators. Theperformance of sponsor agencies in the preparatLon and follow-up of micro-
32
projects will determine the future access of their s?onsored groups to additionalfinancing. Disbursements under the FIMAC component shall be subject to Bank'ssatisfaction with progress of activities and audits of accounts during theprevious year and approval of the detailed work program and budget for thefollowing year (para. 4.10). Details of micro-projects preparation cycle, theirimplementation and the program's administration are provided in Annex 2.
5.4 Under the preparation phase of the project, 9 provincial DPA staff havereceived intensive training abroad in project management and accounting, and 5of the 45 departmental coordinators have been appointed and trained.
5.5 The pilot program for village storage will be under the supervision ofthe Provincial Delegate of Agriculture of the Extreme North Province. The FIMACcomponent will finance the construction of stores which will house on average 40tons of cereals. An agreement between the Government and WFP will be signed forthe provision of small equipment, and for the initial stock of cereals whichshall serve as working capital for the group. Extension services will provideadvice on improved storage techniques. Training will be provided to farmers'groups on stock management by NGOs in collaboration with staff from MINAGRI.
5.6 Locust Control. Aerial locust control activities in the North andExtreme North will be carried out by the Aerial Pest Control Unit (APCU), underthe supervision of MINAGRI. MINAGRI will be responsible for implementing thestudy of the Crop Protection Service of APCU.
5.7 Information System. The Direction des Enqu#tes agro-ec.nomiques et dela Planification Agricole (DEAPA) of MINAGRI will be responsible for implementingthe information system through a small coordinating unit comprised of fourexisting staff (an agro-economist, a statistician, and two research assistants),to synthesize, analyze, and publicize information related to food security. Theunit will be assisted by an early warning systems expert for two years to helpestablish the system, and short term consultants for survey design and training.A DEAPA field structure exists down to the departmental level for collectingdata. The field staff will receive reinforced training and be responsible foranalyzing data and producing a weekly radio program on pricing and marketinginformation. The four DEAPA staff responsible for coordination will be appointedprior to loan effectiveness (para. 7.2 te)).
5.8 Market Construction. Credit Foncier du Cameroon (CFC) will have overallresponsibility for the market renovation and construction component. A projectagreement, to be concluded between CFC and the Bank, will establish theconditions, for subsidiary financing of market construction planned bymunicipalities. A loan committee at CFC, including representatives from MINAT,will appraise the technical proposals submitted by municipalities, and makerecommendations to CFC Board for approval of loans. Agreement was obtainedduring negotiations regarding the criteria (size, economic return, financingplan) for market financing under this component. Training programs includedunder the market infrastructure component will be the responsibility of CFC incollaboration with MINAT.
5.9 Nutrition. The nutrition component will be a collaborative effort of theDepartment of Community Development of MINAGRI, MINSANTE and MESIRES. MINSANTE
33
will coordinate the component. An NGO with experience in the health andnutrition fields (the Cooperative for American Relief Everywhere, Inc. (Care))will finance its technical assistance to the component. Work will be carried outunder the direction of a coordinating committee made up of representatives fromeach of the ministries. The committee will meet regularly prepare action plansfor the different phases of the program, assure their execution, attend trainingsessions, report to their respective ministers on the progress of programimplementation. and finally, on completion of the program, define a nationalstrategy and action plan. A qualified national coordinator from HINSANTE willbe nominated prior to loan effectiveness (para. 7.2 (e)). The HINSANTE nationalcoordinator and a CARE technical coordinator will be responsible for assuringprogram execution, including the financial and physical management of thecomponent. As a condition of effectiveness, a contract will be executed betweenMINSANTE and an NGO, satisfactory to the Bank, establishing precisely theresponsibilities of each of the coordinators in the physical planning of thework, preparation of annual budgets, monitoring of physical implementation of theprogram and budget execution (para. 7.2(b)).
VI. BENEFITS AND RISKS
Benefits
6.1 The project will enhance food security principally by creating employmentopportunities and increasing the incomes and assets of the poor. By supportingmarketing, processing and transformation activities, the project will help reducetime spent by women in these areas, and thus enable them to spend more time onfamily and child care. As the project encourages self-help initiatives whichrespond to the needs of the community, the chances of successful implementationare heightened. Other project activities will improve food distribution andtherefere reduce the cost of food to consumers, increase incomes to producers,and provide incentives for increasing production and consumption of locallyproduced food.
Economic Rate of Return (Annex 11)
6.2 The conventional methodology applied in calculating the economic rate ofreturn for investment projects in agriculture cannot be used for a multi-component project. The project can be analyzed only as a sum of its parts, notas a single entity. Hence, an economic rate of return to the overall foodsecurity project has not been computed. The procedure adopted has therefore beento estimate, wherever possible, economic rates of return for individualcomponents. Details of individual rates are provided below.
6.3 For the most important component of micro-projects, accounting for almost70? percent of project expenditure, the choice of activities is left tobeneficiaries rendering it difficult to quantify benefits ex ante in anymeaningful fashion. However, a few models of micro-projects, such as a flourmill, chicken farm, palm oil press, have been developed (see Annex 11, pages 1-3)which show rates of return ranging from 16 to 55 percent. Benefits derive fromcreation of value-added (case of flour mill), incremental output due tomechanical extraction method rather than manually (palm oil press), and savings
34
in labor use. On this basis, it is conservatively considered that the conditionfor financing of a rate of return of at least 15 percent would be met, and thatthis level can be taken to represent the rate of return for the component.
6.4 Village storage would secure grain supply and increase both producers'and consumers' surplus, as both extremely low and exceptionally high prices areavoided. Assuming a without project situation where farmers are obliged to sellimmediately after harvest, and economic benefits consequently reflected in timedifference in net returns when grain is sold later in the season, an economicrate of return of 16 percent is obtiined. (Annex 11, pages 3-4).
6.5 Economic rates of return have not been estimated for the early warningsystem, anti-locust program, market infrastructure, and the nutrition components.While the enhanced flow of information about production and prices should helpto reduce uncertainty and enable farmers to secure more remunerative prices, themagnitude of the impact on production cannot be assessed. In the case ofmarkets, although costs could be estimated in economic terms, benefits areexceptionally difficult to quantify. These may include reduced health rLsks dueto more sanitary trading conditions, reduction in losses and, eventually, aproduction response due to greater opportunities for marketing produce. It isunclear how much the aerial treatment under the anti-locust component wouldprevent production losses, making it difficult to calculate the ERR.
Risks
6.6 Major risks associated with the project lie in the scope for diversionof funds under the micro-projects component away from target groups andactivities and lack of compliance with reconstitution obligations for FIMACfunds. The first risk is reduced by the decentralization process for approvinginvestments, by following strict criteria for group selection, and by rigorousproject analysis to ensure investment viability. The second risk shall bealleviated by implicating sponsor agencies (NG00, local area developmentcompanies) of beneficiary groups in close field supervision of the investments,group pressure for fund reconstitution, incentives for repayment (the funds staywith sponsor of several groups in similar zones), and sanctions in case of non-reconstitution of funds. Approval of applications for more financing by thesame sponsor shall be based on the sponsor's satisfactory performance.Disbursement condition under the FIMAC component will be based on satisfactoryprogress on recovery of funds, including interest charges, in the departments.
Environmental Impact
6.7 The overall environmental impact of the project is expected to beneutral. Components such as the early warning and market information system,market infrastructure and village storage will not affect the naturalenvironment. As selection of micro-projects is essentially demand-driven, thereis a risk that groups might request financing for projects likely to have anegative environmental influence (for example: chain saws for land clearance arepopular). To reduce this risk, environmental evaluation criteria are beingdeveloped under the first phase of the FIMAC program (para. 2.30) whlch will beapplied in the evaluation of future micro-projects. Similarly, non-chemical
35
methods of grain storage will be promoted, such as the use of oils and/orhermetic sealing to preserve grains. An environmental source book will be madeavailable to extension staff to assis1: in training farmers.
6.8 The component which can potentially have a negative environmental impactis the locust control program. Although the proposed project does not financepesticides, their use by APCV under the locust-control program poses a potentialenvironmental hazard. To mitigate the potential for health and/or environmentaldamage the following safeguards would be included: (i) only those pesticidesapproved by FAO would be used; (ii) application of Bank guidelines for safe useof pesticides would be followed; and (iii) the ongoing PAO training program insafe handling, which in the past has coincided with the anti-locust campaign,will continue. It was agroed during negotiations that the Government willenforce the application of Bank guidelines for pesticide procurement, applicationand handling (para. 7.1(d)). Extension staff shall notify rural populations whenaerial spraying is to occur, and advise them on avoidance measures. Withreference to safe handling of donor-financed pesticides, the sta'f of APCU andthe Plant Protection Service of MINAGRI have already received training inhandling of pesticides by international experts recruited by FAO and haveexperience in locust control campaigns.
VII. AGREEMENTS REACHED AND RECOMMENDATIONS
7.1 During negotiations, the following agreements wero obtained from theGovernmentt
a) agreed annual work plans andi budgets (para. 4.10);
b) final operating procedures for FIMAC (para. 2.30);
c) criteria for market rehabilitation and construction (para. 5.8);
d) adoption of Bank guidelines to the safe use of pesticides (para. 6.8).
7.2 Prior to effectiveness the following actions will be taken:
a) removal of prior authorization on exports of animals, animal products,and fishery products, and simplification and decentralization ofregistration requirements for exporters of food products with MINDIC(para. 2.11);
b) execution of a work agreemeiat, satisfactory to the Bank, between MINSANTEand the NGO selected to assist in project implementation (pars. 5.9);
c) a subsidiary loan agree>mnt between the Government and CrC will beexecuted (para. 4.4);
d) a grant agreement between the Government and APCU would be executed(pars. 4.6);
e) four qualified DEAPA staff will be appointed to the coordinating unit ofthe Early Warning and Market Information System (para. 5. 7); a qualifLed
36
national coordinator from MINSANTE will be appointed (para. 5.9): keyadministrative staff for FIIAC at the central level, i.e. the projectdirector, assistant director, administratur and financial controller,supervisor of field staff, and two training coordinators will beappointed (para. 5.2).
7.3 Disbursements under the FIMAC component after October 1 of each yearshall be subject to Bank's satisfaction with progress of activities and auditsof accounts during the previous year and approval of the detailed work programand budget for the following year (para. 4.10).
7.4 Recommendation. With the above assurances and conditions, the projectwould be suitable for a Bank Loan of ;23.0 million equivalent.
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REPUBLIC OF CAMEROON Peace-Work-Nation
NATIONAL FOOD SECURITY STRATEGY
I .INTRODUCTION
The Government of Cameroon defines food security as the access ofits population at all times to adequate food to lead a healthy and activelife. The Government's priority is to attain the country's food security.the main elements of which are the availability of and accessibility to food.
Cameroon has achieved a high degree of food self-sufficiency due tosustained growth in food production and increases in the country's livingstandards. Despite food self-sufficiency at the national level, elements ofthe population suffer from transitory or chronic food insecurity. Thesedeficiencies occur mainly in rural areas, and in the northern provinces ofthe country where drought and locust attacks are recurring phenomena. Foodinsecurity is also found among vulnerable groups in urban areas.
With 632 of its population in the rural sector (1986), Cameroon hasalways given priority to the modernization and development of itsagricultural sector, including the food sector. The country's satisfactorylevel of food self-sufficiency has been helped by its overall low populationdensity, fertile and diverse land resources, a traditional yet quasi liberalmarketing system. The overall positive results have disguised structuralweaknesses in the sector.
-Over the past decade, Cameroon's population growth rate hasexceeded 32 p.a. while urban growth rate of 52 p.a. Future food self-sufficiency will require significant increases in agricultural productivityto keep up with the high population growth and the decline in ruralpopulation. There have been only limited technological advances in food cropproduction in recent years, and the use of modern inputs remains limited.Although marketing of food crops is free of government intervention,distribution costs are high due to underdeveloped storage, marketing, andtransport infrastructure.
-Another problem is the existence of food insecure regions andpopulations in parts of the country. In 1990, fin4ings and recommendationsof a project to set-up an 'Evaluation and Monitoring System of Cameroon'sFood and Nutritional Status' highlighted continued nutrition problems amongsections of the population, especially among mothers and young children.In the Northern Sahelian regions of the country, pre-harvest seasons aremarked by food shortages and transitory food insecurity while recurrentdroughts every four years cause chronic insecurity. Studies have shown thatin certain rural areas, such as the Western Province, populations are at riskfrom chronic malnutrition as a result of land scarcity and high populationdensities, whereas poor eating habits, lack of nutritional education andaccess to health and childcare centers in the forest areas of the East and
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the South, causes malnutrition despite an adequate energy intake. Foodinsecurity ls found in urban areas among low income groups who lack the meansto purchase foodstuffs.
Over the last decade, food security has been an important objectiveof the Cameroon Government. The five year Plan of 1981-86 advocated anincrease in agricultural production with the objective of elimination of foodimports. Important programs were undertaken to increase production. Withthe creation of MIDEVIV and Office Cerdalier, the Government created themeans to control the marketing and distribution of food products. Under the1986-1591 Five Year Plan, the Government was to deepen its efforts byundertaking long term planning for food sub-sector.
A Long Term Food Plan (PALT) was developed in 1981 and updated in1985-86. The PALT highlighted the fact that although Cameroon enjoyed a highdegree of food self-sufficiency with 96Z of the country's needs being coveredfrom internal production, the country was, nevertheless, in a precarious foodsupply situation. This situation led to the creation of a Food and NutritionPlanning Unit within the Ministry of Plan.
The Structural Adjustment Program adopted in recent years has had,and will continue to have some negative impact on the country's foodsecurity. Reduction in producer prices of major export crops, such ascoffee. cocoa and cotton will diminish the purchasing power of farmers andtheir ability to acquire food. The SAL will also have a negative impact onemployment in urban areas with negative repercussions on vulnerable groupsand their food security status. The Government is determined to addressthese risks and has therefore defined a comprehensive food security strategy.
II.Government's Food Security Strate&v
The Government has a three-pronged approach to Food Security in thefollowing areass (1) measures to increase supply, including improvements inthe marketing and distribution infrastructure as well as processing andtransformation facilities; (2) measures to increase demand and enhance thepurchasing power of lower income groups through investments in productive andemployment generating actlvities, as well as nutrition programs targeted athigh risk groups; and (3) strengthening of the planning and coordinationcapacities of ministries through better information collection anddissemination.
2.1 Incentives to Increase SuDDly
Agricultural Intensificationt The Government's policy is to modernizefoodcrop production through investments in research, extension and trainingof rural populations. The objective is to improve the yields of yam,sorghum, millet, cocoyams, plantains and various legumes and fruit trees.The Government has created a national extension and agricultural trainingservice, reinforcing the field services in extension. The training componentwill emphasize, aong others, programs which target female farmers andrespond to their needs in now technologies designed to reduce their workload,
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including household workload, and to disseminate improved food transformationand processing equipment. Government's role in production will be one ofgradual divestiture from production activities and encouraging of privatesector operations in this domain. The policy also supports the reform in thefertilizer and pesticide sub-sectors.
Marketing and Distribution of Food Products: The Government is intent onending its interventions in the distribution and trade of food products. TheGovernment is no longer fixing consumer prices and has eliminated QRs onexpurts of food crops, including livestock and fisheries products. Legalmeasures have been taken to ease food transportation and road circulation oftraders (reduction in official road blocks, abolishment of purchasing permitsrequired by the Ministry of Commerce for local foodstuffs, removal ofcollection permits issued by prefectoral authorities for food crop exports).
The Government is thus promoting a Dolicy environment conducive toprivate sector operations (private agents, farmers' groups, NGOs) in thedistribution, marketing, transport, storage conservation, transformation offood products. In its effort to further pursue trade liberalization measuresinitiated under the SAL, the Government intends to streamline remainingregulations affecting the food sector by eliminating prior authorizations forexports of livestock and fishery products, and decentralizing registration oftraders at the prefectoral level. Procedures to obtain transport permitshave also been simplified to increase volume of transportation.
The Government intends to improve all aspects of rural infrastructureneeded to ease product marketing: rural markets, rural transportation, feederroads, training of farmers in appropriate technology to handle, package andstore crops, as well as financing of micro-enterprises in the food sector.Given women's unique role in the production and marketing of food crops, theGovernment has designed programs to specifically address their needs, such asdirecting credit and rural financing facilities to women's groups.
In light of reduced government subsidies, construction of marketinfrastructure will be entrusted increasingly to municipalities, whose ownfinancial resources need to be complemented by financing from conmercialsources, such as commercial bank loans. In order to increase theconstruction and maintenance of market infrastructure, particularly insecondary cities, and facilitate access to bank financing, the Government hasintroduced revisions in the existing budgetary and administrative proceduresof municipalities, to allow the municipalities to provide adequate guarantiesto lending institutions.
The impact of new feeder roads in promoting the food security of thecountry is undeniable and is the object of a new project under preparation.Technologies to conservG and store harvests, including those aimed atreducing post harvest losses, are fairly well known in Cameroon. Governmentintends to continue research programs in this field and promote thedissemination of improved technologies under the National Extension andNational Research Projects.
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The Government attaches special importance to stabilizing the supply offood crops. Efforts, which are underway to enhance information available onprices and markets, will encourage the flow of goods and lead to anequilibrium between food deficit and food surplus regions. In addition, ithas been decided to involve farmers in storage facilities in order tostabilize their supplies. A pilot storage scheme, designed to reduce post-harvest loss, is underway in the Northwest and Western provinces. Anotherwill be tested in the Extreme North and eventually extended to other regions.These efforts are further proof of Government's intention to withdraw infavor of the private sector and, in this case, of village groups.
The Government advocates regulating food imports through tariffprotection to compensate for the dumping and subsidy policy of exportingcountries rice, edible oil, and meat. The policy is meant to protect localproducers and provide incentives to encourage them to remain in the business.An equalization fund has been created to use revenues from import tariffs tosubsidize local producers. This fund has not yet met its objectives and arevision of its operation is in demand.
2.2 Actions on the Demand side
Actions to increase the demand for food are related to creation ofemployment, increase in the purchasing power of rural and urban population,and improvement of nutrition status of vulnerable groups. The following areactions designed to achieve the above-stated goalt
Micro-Investments to increase rural incomes: Measures to increasethe purchasing power of the population is another key component ofGovernment's strategy of eliminating transitory food insecurity. TheGovernment has decided to finance micro-investments of community groups inrural areas (FIMAC). This fund will finance small scale rural projectsidentified and managed by rural communities which have an employment andincome objective. In a similar fashion, the Community Development Program(PRODEC) of the SDA project will be financing communal micro-projects inurban areas to help lower income groups finance social infrastructures andgenerate additional revenues.
National Employment Fund, envisaged under the SDA project, aims atassisting the reinsertion of unemployed workers in the economy.
, Nutritional Education, under the Food Security project, aims atimproving the nutritional status of high risk groups (children under 5,pregnant and lactating women) and develop a national nutrition educationstrategy.
Government's strategy on nutrition is integral to its health sectorstrategy. This strategy emphasizes Primary Health Care relative to thecostly curative treatments provided by hospitals. This strategy is partlysupported by the Social Dimensions of Adjustment project, prepared with thecollaboration of the Bank. Under this project, the primary health carecenters are to be equipped and restocked, and their recurrent costs,
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resulting from their resumed operations, will be equally financed. Thesecenters will, among others, monitor infant and pre-school children's growthin order to trace malnourished cases as well as organize culinarydemonstrations on nutritious meals enriched with locally produced crops.
The Government is aware of the importance of the private sector,including NGOs, in the health sector. These organizations are often wellstructured and managed and are an efficient means of intervention in thefield. It is recognized that financial support to these entities forspecific programs in health and nutrition at the grassroots level, incooperation with health centers, is another way of overcoming theinadequacies detected in this sector.
2.3 Planning. Information and Coordination Measures
Information Systems for planninas The Government is aware of theneed to systematically collect and analyze data on foodcrops, nutrition, andfood security for effective planning of the sector. A good database onfoodcrop production by region already exists, but little is available onmarketing and consumption. The Government is undertaking a permanenthousehold consumption survey, to have a precise knowledge on the dietary andspending habits of all sectors of the population, and to monitor changes overtime.
Information on Marketing of Food Crops: In order to improve themarketing of food crops, it is necessary to provide regular and periodicinformation on prices and the state of markets, consumers, transporters andlocal groups. Under this program, information on producer and consumerprices, sales volume in markets, rainfall, availability of inputs, state ofroads in rural areas will be transmitted regularly and in a timely mannerthrough the mass media.
Early Warnin_ System: The government has decided to develop anearly warning system, providing timely information to public policy makersregarding the state of food and nutrition of populations at risk, as well asforecasts on available food crops. As a by-product of the above informationgathering system, and using the existing information (weather, food stocks)an early warning system will be set up in order to alert the Government ontime about negative circumstances at hand and helping to prompt appropriatemeasures.
, The National Committee in Charge of Food and Nutrition (CONAN):The Government recognizes the multiplicity of causes behind malnutrition andfood insecurity and the need for a multidisciplinary approach to tackle them.The Government has therefore decided to have a multisectoral working group,composed of technical ministries, and public agencies concerned with FoodSecurity. An inter-ministerial committee, CONAN, is envisaged for thispurpose. CONAN will have a consultative role and is in charge of assistingthe Government in formulating its policy in food and nutrition andidentifying means to carry it out. The objective of CONAN is to enhancecoordination between various partners implicated in this sector and to helpput in place a multisectoral strategy.
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REPUBLIC OF CAMEROON
FOOD SECURITY PROJECT
RURAL COMMUNITY MICRO-PROJECTS(Financement d'Investissesment de micro-rialisations agricoles et
communautaires - FIMAC)X. Background
A large number of informal rural groups, especially women farmers groups,operate in the agricultural sector, make a substantial contribution to the foodsecurity of the country.1 The majority of these groups is deprived of financialsupport needed to enhance productivity, reduce post-harvest losses, and ingeneral increase agricultural production. Based on the preparation study, it wasfound that significant demand exists for small tools and equipment in the sector.Lack of experience in managing finances is pervasive among rural groups. Women'sgroups are particularly weak in the physical and financial management of smallinveatments.
Formal financial intermediaries have been unable to provide micro-cred4tsin rural areas in a cost-effective way. An example in the North-West provinceshows that the cost of recovery is 2802 the amount of credit, despite the area'sfavorable factors such as high population density, strong community spirit, andeffective extension system. The financial sector is undergoing deep reforms.The former rural financial institution, FONADER, has been liquidated. A newinstitution "Credit Agricole du Cameroun" (CAC) recently opened its first branchin Yaound6, with four provincial branches planned in 1991, and the rest of thecountry to be covered a year later. CAC's branches will be based in theprovincial capitals, with a minimum of staff. Credit will be provided againstfinancial guaranties, and groups dispersed in rural areas are not expected to bethe beneficiaries of CAC credit, given the high cost of administration andrecovery.
To ensure the full participation of rural groups in attaining the foodsecurity objective, a transitional program of technical and financial assistanceis designed to improve group capacity in appraising and implementing micro-investments, and reconstituting the financial capital invested under the project.During the transitional program, groups will be trained and made financiallyresponsible to be able to access formal financial institutions in a later stage.NGOs have succeeded in Cameroon to organize responsible informal groups in ruralareas.
1 *Les Groupes Agricoles au Cameroon". Etude preliminaire a la mise en placed'un Fonds d'Investissement pour des Micro-Realisations Agricoles etCommunautaires, Direction des Etudes et Projets, Ministire de l'Agriculture, Mai1989.
II. lbjectiv_
FIMAC will comprise two kinds of financings
A. Financial assistance to self-help micro-projects of marginal groupsto increase their food security status.
This includes group investments in small equipment and infrastructure whichcontribute principally to communities' foot self-sufficinc_y. A parallelobjective of this component is to improve the financial and technical manaaementcapaciCV ' _rural aroups. This will be done through ($) significant financialand labL - contribution from beneficiary groups, much more than what is presentlyrequired under similar projects in Cameroon, (ii) training sessions for groupsin project management provided by the project staff, professional traininginstitutes, and NGOs, (iii) obligation to reconstitute the financial capital inan account managed externally to the group structure (see sub. para. d onreconstitution procedures), with the risk of repossession in the case of non-compliance.
B. Pilot Program of Decentralized Micro-Credits for comercial groupprojects.
This includes provision of credit for commercial micro-projects with thepurpose of increasing communities' monetary revenues. This program will be doneon an experimental basis only in areas where NGOs already intervening in creditdelivery operations are willing to participate. Training on credit managementwill be provided to beneficiary groups, directly through the project staff orindirectly through the NGOs.
III. Description.
The FIMAC component will finance investments made by marginal groupsintended to improve primarily communities' food self-sufficiency and cash income.Significant cash and labor contribution is required on the part of groups. Anagreement will be made with the beneficiary group, indicating the group'sobligations, as well as the financing and procurement procedures of goods andservices required for the micro-project in question. The agreement will includea repossession clause, as well as a rejection clause for future financing (sampleagreement attached).
FIMAC will also finance tL..iining sessions for group leaders, the project'sfield staff, as well as staff of NGOs who sponsor the groups.
A. Investments.
1. Selection of Groups.
a. Identification of Marginal Groups
Financing will be only made available to marginal groups. Groups will have tofill out a questionnaire on the status of their village and their members before
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submitting an application for financial assistance. A copy of the questionnaireis attached to the annex.
b. Location of Groups
Financing will not be made available to groups located in or close to urbanareas, as well as the North West Province, given the presence of similarprograms. Only marginal areas, satisfying specific criteria included in theabove questionnaire, will be eligible for financing.
c. Size of Groups
Group size should not exceed 20 members. In the case of infrastructure projects,benefitting an entire village, a larger group, such as the existing Developmentvillage committees, is also eligible for financing.
d. Etatus of Groups
Groups should be recognized by traditional and administrative authorities. Onlygroups sponsored and supervised by intermediary agencies, such as NG0s or localdevelopment companies, are eligible.
e. Groups' Capacity
(1) Past Experience of sroups: Beneficiaries shouldprovide proof of having had at least one year ef group production. Availablefinancing will not exceed three times the turnover of the preceding year.Groups' past experience should be rated as successful by the sponsor, with theexception for proven cases of failure due to factors beyond control.
(2) Group Contribution: Groups should demonstrate theircapacity by providing significant initial contribution. Group contributionrepresent the access cost to FIMAC funding. Contributions incl.ude:
* Contribution in kind at least equal to 302 of th-^ total projectcost.
* Contribution in cash varies according to the type of investment:
_ cash provision equal to 252 of the amount made availableAl under FIMAC for small tools and equipment for commercial
and non-commercial projects.
- cash provision equal to 20? of the amount provided underFIMAC for infrastructure projects.
Cash contributions will be used fort
* 102 will finance investments, based on suppliers' invoicesalready approved by the provincial commission (see para. D (2) onOrganization and Management at the Provincial Level).
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102, in the case of small equipment, and S in the case ofinfrastructure projects, will be used for capital reconstitution.This sum will be deposited in an account, according to proceduresdescribed in para. d (1) (a) on reconstitution procedEures.
52 will be used towards the working capital to operate andmaintain investments under the project.
2. FIMAC Financing Terms
The maximum available financing under FIMAC will be CFA?4,000,0000 (USS 16,000 equivalent) per commercial project 2, andCFAF 500,000 (US$1,900 equivalent) per non-comercial project, withrepayment period le-s than 4 years in both cases. Financing ofcommercial projects will be charged an interest rate not less than15Z p.a.
The maximum FIMAC funding will be CFAF 6,000,000 (USS 23,000equivalent) per infrastructure project, with repayment period of notmore than 10 years.
3. Type of Proiects
a. Investments
FIHAC will only finance investments msant to improve communities' food self-sufficiency and on a pilot basis, monetary income under the micro-credit schemet
- small farm tools and equipment, with an average FIHACfinancing amount of CFAF 300,000 (USS 1,100 equivalent), and not toexceed CFAF 500,000 (USS 1,900 equivalent). These includes smallequipment for community fields, processing equipment for food andlivestock products, tools and equipment for livestock pzoduction,fisheries, and beekeeping. Similarly, small tools and equipmentwill be financed through credits, for an average size of CPAF2,000,000 (US$7,700 equivalent) and not to exceed CPWA 4,000,000(US$16,000 equivalent).
* - small-scale infrastructure projects with an average FDMCfinancing amount of CFAF 5,000,000, (US$19,000 equivalent) not toexceed CPA? 6,000,000 (USS 23,000 equivalent). These include:construction of village storage, small slaughter-houses, vaccinatinnstations, rural tracks, fish ponds, livestock watering points, smalldigs and irrigation networks, drainage of low-land areas.
2Com.mercial projects are cash generating ectivities and non-commercialprojects are food self-sufficiency enhancing activities.
Page 5 of 20
b. Profitability Criteria
Departmental coordinators will appraise projects and their profitability,based on standard indicators for each type of investment established by staff atcentral and provincial levels. The analysis will indicate the extent to whichbenefits of the project accrue to beneficiaries' self-consumption. Projects willhave to have a minimum 152 financial or economic rate of return, inzluding thecost of capital reconstitution.
c. Activities not to be financed.
FIMAC will not finance activities already financed by other projects.Social infrastructure projects are equally excluded- These include, chemicalinputs, health centers, electrification projects, schools, roads, water pipes.
d. Disbursement of Funds and Procurement of Goods
(1) From the central level (Yaounde) to provinces
A special account for MINAGRI will be opened in a commercial bank inYaound&, and project accounts in provincial branches of the same comercial bankor of its correspondent banks in the nine provinces involved. Signatories forprovincial project accounts will be the provincial financial controller of theHinistry of Finance and the agricultural delegate, in his capacity as thesecretary of the provincial FIMAC commission (para. D.2). Withdrawals fromprovincial project accounts will be made after Caisse Autonome d'Amortissement(CMA) authorizes transfer of funds from the special account to such accounts,upon receipt of approved statement of expenditures from provincial delegatesthrough FIHAC administration in Yaounde (para. A.2.d.(2) below). Statement ofexpenditures will be supported by documented evidence, including pro-formainvoices from the selected supplier (para. A.2.d.(2) below).
(2) From provinces to groups
FIMAC will be essentially financing tools and equipment for micro-projects,as well as part of the training and supervision cost of groups by sponsors4 Inpractice, this will permit most disbursements directly to suppliers, against pro-forma invoices. Three Pro-forma invoices for goods from three differentsuppliers will be attached to the project application form submitted by thegroups to provincial commissions. The provincial project administrator (DPAstaff) will justify a recommended supplier to the provincial commission, basedon Bank procurement guidelines for prudent shopping. The project applicationwill also contain the sponsor's bill for supervision and 502 of the traininacost. Upon approval, statement of expenditures with documented evidence will beprepared and signed by the provincial delegates of HINAGRI and HINFI and sent toCAA for funds through DPA. The provincial project administrator will orderpayments, signed by the agricultural delegate, to supplier(s) and the sponsoringNCO, the latter as an advance for the training that will be provided, afternotification on fund transfers by provincial bank. Payments will be made inperson by the provincial project administrator to suppliers in the department,accompanied by a representative of the group and the sponsor. Upon receipt of
Page 6 of 20
equipment, the departmental coordinator will sign an agreement with the group,stating group obligations in using the received material. Full payment for thetraining and supervision of sponsors will be made after completion of thetraining session by the sponsor, and upon receipt by the provincial commissionof invoices, certified by the departmental coordinator.
e. Reconstitution/Repayment Proceduires.
Based on existing experience in Cameroon, it is envisaged to have thereconstituted capital (or repaid capital with interest in the case of credits)rotate among groups, through a local organization external to the project, withenforcement power over groups. The local organization may be an association ofgroups, a working village development committee, an NGO, or a development agencysufficiently broad-based to cover several groups at a time. Departmentalcoordinators and provincial project administrators are to verify and confirmbefore-hand the capacity of the local organization (e.g. NGO) to enforce andfollow-up groups' reconstitution obligations. The identified organization willbe a party to the agreement signed by the group. The agreement will include theobligations of the local organization to enforce the reimbursement schedule underthe capital reconstitution clause, and to rotate the reconstituted capital amongdifferent groups (attached sample agreement).
(1) Procedures include:
(a) Opening of a savi.tgs account by the localorganization in which the reconstituted funds will be deposited. The accountwill be operated on the basis of two signatures by the departmental coordinatorof the FIMAC and the representative of the local organization.
(b) Use of reconstituted capital: Funds cannot beused unless fully reconstituted. In the case of non-reconstitutiot, equipmentfinanced by the FIMAC will be repossessed. In the case of an incompletereconstitution, or 6;ssolution of the local organization in charge of enforcingthe reconstitution clause, provincial commissions of the project are solelyauthorized to decide on the use of funds already recovered, and equipmentrepossessed.
(c) In the case of a complete recovery, the localorganization can propose the allocation of funds to another project, for the samegroup or another group, after approval of the new project is obtained from thedepartmental coordinator, who will allow the release of funds. Obligation tocapital reconstitution, as well as other obligations of the group are maintained,as per the agreement. In the case of no new investment proposals for thereconstituted funds, or rejection of investment poposals by the departmentalcnordinators, provincial commlssions may recuperate the funds for reallocationto other areas.
(d) Control over the reconstituted capitals Thedepartmental coordinator will follow the capital re constitution accounts in hisdepartment and will submit regular status reports to the provincial commission.
ANNEX 2Pag 7 of 2 *
FTllAC SCWChart ons
rlow of Funds: Disbursements Administration(First Cycle)
Central Level Special Account(Yaound*) In Bak A
C&iLes Autaone dAfortiLs6s*nt gO
pareuleial Level co te Account LD protmenlCo
Foko of da?nk A
aA.a&au.ainnaa (Second c cse)ru~
Depacrtmental Level SppnoCs SaDeprnmntgLTraining eby spenerJ lCoe tLnstor
receiptff from* spnsrone opltin of trinngveifedb te eprtena
co...t.. ri.n.. d..a..........in p in ........................n t m I Cista
,.......................................................................
|b
iep,sotenol Level epongee ivngsA-eount lf LocalS aklPoot Officec
Suppl ira 1 D,partM atlfdi s alatng by Speonss s Coordin tor
jloum cycle__
videntcel (eot oppllrotloa. Invluding prifid .ad Laprov ted b differe antsupp3llre for cia dmelt pn t notic fo tLweLe l cal bant on transf oftrcalnse onr ersolspie prs ldad pa smet noser wLto bsponso ti be pbed aLcedbrVAeLpt ared Kpense once egete ets o .f trst v tofl t by the deparo etrleecodalntor. Sc L&lag *and s*pcrrlsl * pe f*pFlieatLesnoat to ezeed CIA16o,0.eoot* wS0 oe quLv caet.
ilew *1f @g
- Approval feinture of wLteprmena Ico oribnsorn ta CsA po n pplicat c forfuno wrtudscasec wnth rbstieo t pf oecp_tssi srup'srted ab u emeu t4ewLdencee (copy of pco-form Laveces) verItLcd and apprervd by ZWI a=U nd
KINFl preflaeiel dclegatrc. Upon notlee Ices the local bank on tcancfac offunds mde Ir o the central CAA acceewt to pr v heilt poJect account.purcehaseorders to *upplSeco and por eat *rdec t o sp ascec WILL be Issued byNttACK2 end h"": delegates
21 Appeevcl o 4natucro*t Dcpactmn u l eecodinator and sponsor.
*t Cceupl cas e^b onttcbutlon to projects bl ¢eoup | reimbursements.
Page 8 of 20
8. Training and Supervision
Training will focus on preparation and implementation of micro-projects,and will also include specialized technical training on production and processingactivities financed by the FIMAC. Training will include regular sessionsworkshops, as well as short organized visits to technical centers. Training willbe carried out by specialized training institutes, NGOs, and the field staff oftechnical ministries (MINAGRI, 4INASCOF, MESIRES) depending on demand. Financingrequests for training will be prepared and submitted by sponsors, who will beinformed out of a menu of training options made available to them by thedepartmental coordinator. Financing requests will be accompanied with statementof projected expenses and documented evidence of expenditures, in accordance withFIMAC procedures. Requests will be examined and approved by the provincialcommission. A maximum training allowance of CFAF 80,000 per micro-project hasbeen included in the project costs. Groups will contribute to the costs of thetraining up to 50Z of the total cost. As an indication, on average, CFAF 4,000per trainee will be paid by groups in regular sessions of a one-week period(average group size 10 to 15 members). The project will also finance thesupervision cost for groups, which shall not exceed CFAF 80,000 per micro-project.
C. Organization and Management
1. At the Natictnal Level% The Ministry of Agriculture, through itaA3gricultural Project' Division (Division des Projets Agricoles-DPA) will be theexecuting agency of FIMAC component. At the national level, the administrationof FIMAC will involve:
Direction and Institutional support: ensuring the coordination of thecomponent among ministries and NGOs, directing the activities of staff atthe national, provincial and departmental levels, and supporting theorganization and operation of provincial commissions.
Management: managing project staff at all levels, controlling theiroperating expenses, making funds available to provincial projectadministiators, and controlling financing made available to groups. Staffat the national level will make ex-post controls on capital reconstitutionand repayment obligations of groups. Information gathered on beneficiarygroups, including financial assistance provided to groups. will becentralized in a computerized data bank for purposes of continuousmonitoring.
Supervision of vrovincial project administrators (analysts) anddepartmental coordinators: supervising of field staff in their activitiesof finalizing project documents -submitted by groups and- evaluation ofapplications, and follow-up of project execution and capital recovery.
Information. Sensitization, and Trainin.s organizing on a regular basisinformation and training sessions for field staff as well as staff of NGOsin charge of supervising groups; examining existing training sessions forgroups and making recommendations to provincial commissions on the most
Page 9 of 20
appropriate training programs; supervising work of provincial units' traLners.
Project administration at the national level will comprise:
1 Project Director-the Head of the DPA
1 assistant Director: an agro-economist from the DPA, supportedby 1 long-term consultant on micro-projects.
1 administrator and financial controllers a long term consultantin charge of administrative and financial management, supported by1 accountant from HIMAGRI or from outside the ministry.
1 manager in charge of supervising the provincial projectadministrators (analysts) and the departmental coordinators: stafffrom DPA
2 managers in charge of supervising and organizing the trainingcomponent: staff from MINAGRI
2 secretaries and 3 drivers: staff from MINAGRI
2. At the Provincial Level.
Decisions on Financing of proiects: A provincial commission, chaired bythe Governor or his representative, and comprised of provincial delegatesfrom MINAGRI, Ministry of Women's Affairs, Ministry of Livestock, Ministryof Plan, Ministry of Finance, representatives of NGOs and financialintermediaries active in the province. The secretarial tasks of thecommission will be assumed by the delegate from the Ministry ofAgriculture, assisted by the field project administrators. Thecomission's role will be to evaluate and approve applications forfinancing of micro-projects and training sessions. In the event approvalis granted on applications which do not conform to FIM&C guidelines,administrators at the central level may cancel such decisions.
SuDport to sponsorjng asencios and trainers: at the provincial level, andunder the authority of the provincial delegate of Agriculture, theadministration of the project will comprise:
1 project administrator (analyst) in charge of:
- managing provincial level administration tasks for FIMAC;- controlling operating expenses at the provincial level and those of
the departmental coordinators, under the close supervision ofnational level staff;
- supervising the departmental coordinators, especially in theirproject preparation tasks;
- making financing available to projects approved by the provincialcommission and providing the financial control over disbursed funds;
- following-up on the performance of groups which have been financed,including their reconstitution and repayment obligations. Thisinformation will be regularly communicated to national leveladministration.
and 1 trainer from MINAGRI in charge of:
- providing regular information programs for field staff and stafffrom NGOs in charge of supervising groups;
- making detailed evaluation of training sessions and makingrecomendations to provincial commissions on the appropriatetraining programs.
3. At the Departmental Level: A departmental coordinator will beappointed on a full time basis from among the local staff of MIKAGRI. Thecoordinator will be working under the authority of the Departmental Delegate ofMIIIARI, and the supervision control of the provincial and nationaladministration staff. Departmental coordinators will assist the sponsoringagencies in preparing applications. They will follow-up on fund disbursements,capital reconstitution and repayment schedules, and group performance. They willco-sign on transactions to be made out of the reconstitution account, and mayauthorize sponsors to re-use reconstituted funds according to FIMKC guidelines.
D. Implementation.
The program will finance on a gradual basis micro-projects in 4provinces during the first year of the project, and in the 9 provinces as of thesecond year of the project. The overall financing available for this componentwill be distributed as followst
- t55 of funds will be allocated to small equipment and tools formicro-projects -not to exceed a maximum amount of funding of CFAP500,000 per project, designed to increase groups' food self-sufficiency- and micro-credits for commercial cash-generatingactivities -not to exceed maximum loan amount of CPAF 4,000,000.
- 302 of funds will be allocated to infrastructure projects, not toexceed a maximum FIMAC funding of CFAP 6,000,000 per project.
- 152 of funds will be allocated to training expenses of beneficiarygroups.
FIMAC funds will be dLstributed among provinces according to the size oftheir agricultural population. The following table shows the number of projectsin all categories over tho 5 years life time of the project.
Page 11 of 20
NUMBER of PROJECTS
PYl PY2 PY3 PY4 PY5 TOTAL
Small tools andEquipment 99 244 330 493 605 1771
InfrastructureProjects 8 18 20 25 25 96
Total 107 262 350 518 630 1867
Al
Page 12 of 20
Zadleatere on Standrd of Living of Areoa and Communitie
Base Criteria points (out of 20) X Coofflcionts a.............................................................A. Area Sltuation:
A.1 Dostance from a small town (more than 66ff inhabitants): 1- loss then 6 Kms: ................................... 20- betwoen C and 10 km.: .............................. 16- between 10 and 20 kms: . ............................ 10- betwoen 26 and 30 kmos: ............... 6- more than 30 kme: ...................... 0
A.2 Distance froe a large town (more then 20,000 inhabitants) with publi * ervieo (schools, helthservices, mrkot ceonters): 1- less than 20 km: . . ............... 20- between 20 and 40 kme: . .................... 16- betwoen 40 and 60 kos: .. 0........... t- betwven 6O and O0 kes: . .................. 6- more than 80 ks: ...................... 0
A.3 Access to closost small town: 1- paved road: ........................................ 20- decent road, possable all yoer round: .............. 16- road passable in dry season: ....................... 10- road with difficult passage even in dry season:.....S- no driveway: ........................................ 0
A.4 Water Supply in villag: 1-water obtaind from water fountains: .............................. 20- water obtainod from wells (boreholoo): ............................ 16- water obtained from springs, with sufficient flow *al year round:.10- water obtained from springs, with Insufficient flow: ............... C- poor water supply:.................................................
A.5 Electricity and Telephone Avalanbility In village: 1- Avallablo electric and telophone lnoo: ............ 20- Available electric or telephone lines: ............. 16- Available eloectricity from private generators: ..... 10- no electricity, availablo telephone lines at 10 km*:S- no electricity and no telephone lines at 10 kmo:....0
A.8 Housing: 1- 50X (or more) of housoo In concrete and iron sheet roof: . .............. ....... 20- 5OX (or more) of houos with different construction materials and Iron sheet roof:.1C- 30 to 40X of houses with different construction material* and iron sheet roof: ..... 10- 10 to 20X of houses with different construction materials and Iron shoet root: ......C- 90 to 1OOX of houses with precarious materials and no Iron shoot roof: . .0
A.7 Schools and Health Centers: I-primary schooling and hoalth center (with nurse): ...............................4111-primary schooling and hosith enter without nurse: .................................1 i(Incomplete primary schooling and hesith center with nurse)- incomploto schooling and health ceonter with no nurse: .............................. 10- incomplet schooling and no hoeith center: .......................................... a- no schooling and no health ceonter: ..... ..01111
A.S Number of Cars: 1- more than 10 ears (or pick-ups) per 100t Inhab.:...20- betven S and 10 cors per 1f inhab.: ............. 16- between 0 and C cars per 1000 inhab.: .............. 10- no cars In village, available cars at - 10 kms: ..... 6- no care in villago or at 10 kas of village: ......... 0
A.9 Facilities availablo In village, small markot centers (shops, bars): 1- more than 10 trading centers per 100O inhab.: ...... 20- botwoen 5 and 10 eonters per 1M inhab.: .......... 16- between 0 and 6 centers per 166 inhab.: ........... 10
Pap 13 of 20
- no conter tn village, available center at 1f knot ... 6- no cnter In vliloge, no center at 10 knos .......... 0
A.10 Number of radios: 1- moro then 30 radios per 1090 inhab ............... 29- btween 20 and 38 nadloo per 119 inhab.: .......... 15- betwoon 10 and 20 radios per 1000 Inhnb.: .......... 19- between C and 10 radios per 1W inhab.: ............ C- less than 5 radios per 1 0 inhab.: ................. o
A.1l Isolation of villge (preosnce of an extension agent In villagO)s- presence of a high level agritultural extension: ................. 20- pro nce ofa exten s ionaoent: ......... ........................ is- prosonce of an extension agent at 10 km* of villago: ............. 10- prosence of an extension agent at 20 kma of village: ..............- proeonco of an extension agent at more than 20 km of village: .... 0
A.12 Extent of cosh crop production (indicator to be adapted to the provinl, depending en the kIndof crop): 2- more thsn .... kgo of .... per 1M inhab.: ............. 20- between. kgs and .... kgs .... per 1kp inhnb.:.... 1- betwoon ...... kgo and .... kge....pr 1W" inhab.:.... 10- betwen.. kgs and .... kgs .... per 1W Inhab.: .....- lose than ...... kgo and .... kg .... per 1 Inhab.: ....
A.18 Extent of seondary cash crop production: 2- more then .... kgo of .... pero I0 nhab.: . ............ 20- betwoen. kg* and .... kgs.... per 1W inhab.:.... 15- between ...... kg* and .... kgs .... per 1M inhnb.: ....1- between ...... kgc and .... kgs .... per I Inhab.: 6- less then ...... kgo and .... kg .... per IO00 nhab.: ....0
A.14 Incom level of area (estimate of collected taxes per number of Inhabitant; to be adpted tothe province): 2- more than ..... F d collected per lO00 Inhb.: ....... 20- betwo-n. and .... F d per 10W Inhab.: ........... 16- between. and .... F d per 1 inhab.: ........... 10- betwen . and .... F d per 1W inhob.: ............ C- l*es then .... F d collected per 1OW inhab.:.. 0
A.16 External Assistance fro development projects covoring entire village In poest fivo years(subsidies for construction of schools, helth centers, social centers, bridges, roads, shope,cooperativoe, markots, electrification): 1= 4 projects or more, financed In post 6 years: .. 20- S projects financod In past C years ..... is- 2 pro4ects finonced In post 6 yearos .1... I- 1 project financed In past 5 years ... 6- no dovolopment project in past 6 years: ... 0
A.16 External financial assistance on development projects covering sections of locol population Intho post five years (number of loans or financial assistance for income-generating activitite): I- 10 projects per 1M inhob or more In post 5 years: .... 20- 7 to 9 projeets per 1M9 inhob or more In post 6 years:1- 4 to 6 projecto per 100 Inhob or more In post 5 years:19- 2 to 5 projects per 100 inhab or more In past 6 yeare:.5- 0 to 1 project per 1M inhob or more In post S years:..0
Final Points for Area: . (out of 4e polntc) . ...........
Indicativo Interpretation- betwoen 8I1 and 400 pointe: well-off are relativo to the provinee- betwen 200 and 890 points: relatively poor or"- between 199 and 200 points: fairly poor area- loss than 106 points. : very poor area
Indicators on Standard of Living of Group Members
Page 14 of 20
love Critorla points (out of 20) X Coofficionts a......................................................... *....... ...........................
3.1 Lose of Employment In the pest two yoers (proof of employment provided through copy of wagestub) 5- lose than 10X of members have lost employment In last 2 years: ..... 20- 10 to 20X of members lost employment in 2 years: ................... Is- 20 to aox of members lost employment In 2 years: . . ................. is- U9 to 40X of members lost employment In 2 years: . . ................. 6- more than SOX members lost employment In 2 yoars: .................9
8.2 Level of Fmale Participation In Group: 4- 9X of feale: ........................................... 20-9 to 19 of female: ..................................... 16- S9 to eox of female: .... 10- O to 991 of feal: .... 6- more than 90X of female:. 0
1.1 Levol of Youth Participation In Group:- OX of youth : .. 20- a to 391 of youth: . . 15- So to 691 of youth: . .9. t- 6 to 90% of youth: . .. 6- mor then 90X of youth: . .. 0
0.4 Members principal occupation (X of members with only agriculture Income agriculture, livestock,fisheries): &- 16 to 201 have agriculture and non-agriculture income:_20- 19 to 16X have agriculture and non-agriculture Incomo:..16- S to 10e have agriculture and non-agriculture income: ...1- 1 to SX have agriculture and non-agriculture income: . 6- 1099 have only agriculture incoe: .0Note: If more than 29X of mebrs have agriculture and non-agriculture iecom, the group Is .o loneroligible for FIMAC financing.
8.6 Avorago annual tax payments by members, relative to vii lage averaog In the Province (oavraeoo. ... F/year/family. (This average should be specifled by Provinco, after surveying villa1gs.Members' tax lovel will be determined froe following quostions): 2- 16 to 29X of members pay more than average: . . 2- 10 to 16X of members pay more than average: .15- 6 to IOX of members pay more than average: .1- i to 6X of members pay more than averag: . 6- 19OX of members pay lose than avorage: .Note: If more then 29X of memers pay more than averago the group to no longsr eligble for FIdACfinancing.
8.6 Education lovol of members relative to the provincial average to be deftned. ( This lovel in tobe determined after surveying end exprososd in a simpleWay.): 2- 15 to 20X of mmbers above avera: .....................a. 20- 19 to 15X of members above average: .....................a .- 6 to 1OX of members bov average: .....................v . f- 1 to SX of mmbers above average: ...................... 6- 1OOX of embers below average: . ..........................9
B.? Level of external assistance givon to group (total in cash and kind)t I- more then 6,000,000 CFA: ................................ 20- between 2,eoo,000 and 4,000,000 CFA: .................... 16- betwoen 600,900 and 29000,000 CFA: ...................... 19- lose then 599,000 CFA: ................................. 6- no external asistance: ..................................
FINAL POINTS: ......... (out of 200 points) ........................................................ .....
Indicative Interprotation:
- between 15 and 20: members aro well-off relative to the province
rage i3 or zu
- betwoon 10 and 16s relativoly poor area- between 6 snd 10 : fairly poor orse- lose then 6: very poor orea
Total Grade (out of 60e) for Aroa and GrouD Mombor*=A+A
Indicative Interpretation:
- between 460 and oo: area and group memboro aro woll-off rolative to the province- between 300 and 460: relatively poor area- between 160 and 300 : fairly poor area- less than 1S0: very poor aroe
Page 16 of 20
FZMAC SchemeAgrlculture Projectu DIVISION (CIPA)
ministry of A;rlculturs
AGREEMENT FOR PROVISION OF EQUIPMENT TO OROUPo UNDER SrWRT TERM MICRO-PROJECT
Groups
*ub-dl triet:District:Province:
Appilcation Number
Date and Sgnsturo of Agroement
KTWEEN: The FIMAC project, horoinofter eel lod IFIMAC, roprosented by tho Provincial Deleatefrom Ministry of Agriculturo In .........Province, acting as Division ChiefAgrlculturo Projecto Division In Ministry of Agriculture, Director of FIMAC on theone hnad.
AND the group ...........in villag . sub-district. departmnt.revineo.. .... bhersinaftor callod tho 'group, roprocsnted by Its President and
Tr ouror,on the other hand,
AND tho sponsoringegoe*0y of the roup,............ *...*..............., locatedat ........ , horoinfter called the "sponsor", representod by............on the other hand,
the parties hereto aoree as follows
ARTICLE 1: Provlglon *n SNtn t der ML r FIMAC Famac will provide the group the equipmnt, describedIn artile Ja. under conditionso*tatd in the prosent agremnt. The equipment shall remain theproperty of FIMAC until such time as *ll conditions of the present agreemnt are mt.
AMTICLE 2t Accotonce by tho rouD The group acknowledgos recelpt of the equipment, described Inarticl 8, ando ogre" to its proper uso as dofinod per conditions Included In this agreement.
ARTICLE 8: Dcscriptlon end Value of Eculaments Equipment financod end provided by FIMAC includ(type. specificatione, brand, seriol nuber, purchose price)...............................................................................................
........................................................
.................................... *.............................................................
................................
Total volue of the equipment ios.... AtTICLE 4: Conditions for use of soulepnt by the grouD The group commlts Itself to use andmaintain sold equipment under Its control; the group designates a mein user of the eqvipment, andone or two operators. It Is strictly forbidden to: use the equipmnt without the permission froe
the Prosident of the group.- use the equipment without paying a user fee
(to be determined by the group) to the group'saccount.
- use the equIpmnt In the absence of one of I tdesignated operators.
ARTICLE S: Reortina and Accounting The group io to maintain simple written records and statemetof all expenses and receIpts roeulting from the use of the equipment. The group Is to submit thoerecords to Its sponsor or FIMAC administrators for their control.
ARTICLE 6: Reconstitution and Repsyment of copital financed by FIMAC
so: Prlncigti. The group is obligated to reconstitute the entire volue of the equipment,dofilnd In article S, with lntorest whenover applicable, according to thoschedule defined In paragraph Sc.
Gb: CaDital Reconstitution/RoapYment Account The group Is obligoted to reconstitute capitolin thc *vings account of (nome account number, nom of Institution, addreos):
....................... :.....................................................................................-
.........................................................
................................................................................. *................
.........................................................Said account io already opened under the signature of (nam and function)
and the departmental coordinator of FIMAC who io currently (name).......................................................................
Gc: Reconstitutlon/Ropoexynt Schedule The group hos already made a deposit In the saidaccount. The account hoo proesntly a credit balance of(amount) ............... .FCFA.
The group will make payments according to the following installment plan for the entire valuo of the
*qulp t recelveds
Dposlt Ordero Duo Date Amount Cuulativo Amount
(Initial depositin account) ^ ..........
-Second Installment ......... .. .. ........ .-Third Installment ......... ........... ...........-Fourth tstI leont ...................... ................-Fifth tnstallment ........ ..... . ..-Sixth Installment ..................... ...............-Seventh Inw. II Bet .......... . . . ... ..-41ghth Inot tlent . ......... .......... . . . ..... ... ... ..-Ninth tetl lloent .......... ........... .................-Tenth tnstalleont ..... . . ...... ... ..........
TOTAL VALUE TO KE RECOSTITUTED: ... ........
The group will repay tho above entiro amount through regular lnot.lloont. Interest earned ondeposlto will accrue to the occount, but will not be deducted froe amunt to be reconatituted.
ad. O.n.itq from lnterost earned on the account. tnteret earned on the account wiII beretai n I th *ccount. Tho group shll not b nofit froe lnterest erd o th accontuntil such tioe as :- reconstitution Is ceoploted, - or In the eas of a traeofer,equpment l repoosesed.
If the roup do not rospect the above ropsyment schedule s,a IInterest earnd on the account willb rots ned and used towards psymnte of Installmonts, with no rights for tho group.
ARTICLE 7: Procedures osrinot Doelnouency7.: - if the group do" not keo use of tho equipent according to cooditions
article 4,- or If the group does not mi*ntain *dequate records for use of
quipment, as per article 5,- or If the group does not make paymente on installmont, as per article
a,
FIMAC shell use following proceduroe
7b: Evaluation of the caos with the sponsor FIMAC will oend an agont to evaluate thesituation with a representative of the sponsor. The group*s records and finances willbe jointly exaoined. Solutions will be proposed to rectify the situation. Upon return,the FIMAC agent shall make a report, Including proposed solutions and the possibilityof reposo"selng the equipment, also lndicating:- a proposal for transfor of equipment to a second group- a fair assessment o tho seltvae value of the equipment- a statement on the reconstitution account, indlcating amunts already pald and tnteretearned.
The FItAC agent sholl s nd the report to the Provincial Delegate of MItNARI through the DA stafftn tho province for study by the provincial comission. Itf judged necesary the representative ofthe sponsor would mke a- separate report to the provincial comission.
7C: Dthetuin to ftwooss th e u nt Based on the report, the provincial comlssion meydecid to withdrew and trenofor theoquipment to a second group. Under suchci rcuostance, paymets made will be rotained to complete reconstitution. The ceondgroup will continue payment. on Intal lmente. However, If reconetituted *oounte exceedthe quipment depreciation amount, the provincial comission *oy decide to reimbursthe firet group for part of tho reconstituted amount.
7d: The srouDos s'reement to repossession The group shall not object In any way to therposeoesion of the equipment and its transfer to another group In the case ofdelinquency.
ARTICLE B: Garanntees the rouD The group sgrOse to provide the following property belonging toth group *I ollat ra( diond, construction, vehicle he4vy equipment):
- in cae of delinquency and non-respoct of the repsymnt schedule, defined In paragraph
Page 19 of 20
Se, and It value of seized equipment doos not compensate for the outstanding instal lmntpaymnts, the group authorizes seizure and sale of following goods by FIMAC to sake upfor the balance:
.................................................................................................
.........................................................
.................................................................................................
ARTICLE 9: Limits on the Group's Liabilities In the case of delinquency, FIMAC can only interveneln the following arenas
- It con repossess the equipment defined In artiele 3- It can *.sei and well property defined as collateral In artiele 9
It cannot under any circumstance:- force the group to pay for instilIments from any sourc of Ince other thanthat derived from fees collected from the us. of equipment;
- seize any individual property of members;- force individual members to pay for due installmenta;- asize any property of the group, other than those defined in artleloS.
ARTICLE 10: Uso of Reconatituted Capital1Oa: Control FIMAC dologates tho responsibility to us. the reconstituted capital with the
dopart-ental coordinator as long as said capital is to be used under the control of thesame sponsor. Th. departmntal coordinator represents th- provincial delegat ofAgriculture and the Chief of the Agriculture Projects Division (DPA), In hi aeopecityas dIrector of FIMAC, for the tasks of control and use of capital re..onatltutlon.
lOb: Reallocation of Capital Reconstituted capital can be used to finaneo another micro-proj-ct by a different group in accordance with FIMAC guidelines. The sponsor shouldpresent an application for another group to the Zhief DEVCOM In the department. Thechief will notify and authorize the departmental coordinotor for rellocation of fundsto another group, supervaed by th- same sponsor.Another agreemnt, In sccordnco; with FIMAC guidelines, will be made with the secondgroup.
The proesnt agreement will be signed by the Departmental Sectlon Chlo of Comunity DevelopmentDEVCOM, representing FIMAC.
10c: Case of Absence of Other E.iible GrouDC In tho event that tho Section Chief of DEVCOMdeems that no othor group superviaed by the sponsor are eligible for financing, he thallnotify the provincial commission. This authority io solely authorized to withdraw fundsfrom the sponsor's reconstitution account for reallocation purposes to other groupssupervised by different sponsors.
ARTICLE 11: Sponsor's Resoonsibilities The sponsor io obligated to:- assist th- group in the proper usage of the equlpment- ensure that maintenance for the equipment is provided and the group's control overIts usage is adequate and conforms with article 4
- *asiot the group in maintaining records- assist the group to make sufficient monetary provisions for payment of
inatallmnts- monitor that lnstallmnts are pald according to schedule
- inform Departmental Section Chief of DEVCOM of any missed paymente or non-respect ofarticles of present agreement or any difficulty in the proper exploitation of equipmntor reconstitution of capital.
Location .... ......
Date
Provincial Delegate President of Group Sponsorof Agriculture (nam, first name, IRead and approved) (noa of sponsor, nam of
representative)
Two Members of Group's Committee(name, first name, *Road and approved')
VILLAGE STORAGE
Description
1. In accordance with Government policy to disengage from commercial anddirectly productive activities, it is proposed to encourage the establishment ofgrain stores managed by groups of producers in villages. The project wouldfinance a pilot program in the Extreme North province for 200 groups of 15 - 20members. Average capacity of the stores would be 40 tons.
2. In addition to support provided through the FIMHC program forconstruction of the store, the groups would receive rations and equipment fromUFP as -oell as an initial stock of 20 tons of grain which would serve as workingcapital. It is envisaged that the groups would gradually build up theiroperations to handle 40 tons. Extension services would provide assistance onstorage techniques while the groups would receive training in stock managementfrom NGOs in collaboration with staff from the Community Development Directorateof MINAGRI.
3. The component has been proposed on a pilot scale because of themanagement difficulties inherent in communal storage operations. Precautionstaken to minimize the risk of failure include:the attention given to training a*ndthe prospects for close follow-up by involved NGOs as well as location of thepilot program in the Far North, where farmers have the greatest incentive toundertake such operations to assure their food supply.
Costs
4. Total costs of the component, including contingencies, amount to CFAF825 million (about USS 2 million) of which over 402 would be for grain to befinanced in kind by WFP.
Organization and Management
5. The Provincial Delegate for Agriculture in the Extreme North wouldbe responsible for supervising the program, which would be carried out accordingto procedures established for FIMAC projects. An agreement would be signed withWPP with respect to the assistance to be provided by them which would becoordinatea by the local WFP Committee. Extension and training would be providedas described above.
REPUBLIC OF CAMEROON
FOOD SECURITY PROJECT
Pest Control Program
1. Background. More than 1,200,000 hectares of crops in Cameroon arethreatened by locusts. Although, in an international context, the country isnot considered in the front line for locust attacks, the problem is becomingendemic in the two most northerly Provinces where about 702 of the threatenedarea is located. In the absence of appropriate prevention and controlmasures, there is potential for 202 to 702 of crops losses in an area wherefood security is marginal due to climatic factors. Over the past 5 yearsonly about 25Z of the area infected has been treated.
2. The Government has established a structure for combatting locustswhich includes inter alia an early warning system in the north of thecountry. However, Government services suffer from a lack of means to carryout effective campaigns and is usually obliged to fall back on appeals foremergency assistance from overseas. Despite international efforts toorganize locust control at the regional level (ECLO-FAO, ECOFORCE-France),response is inadequate. To date the Government has relied on groundtreatment by the local plant protection brigades of the Ministry ofAgriculture, and aerial spraying by the Aerial Protection Control Unit (APCU)located in the North. Due to the current financial constraints, both theplant protection brigades and APCU suffer from a lack of logistical support,obsolete vehicles and equipment, and in the case of the former, forced staffreductions severely limits Government's capacity to undertake groundtreatments.
3. While FAO has been active in the annual program, providing assistancein treatment and training, Cameroon's anti-locust program needs a moresystematic approach in order to avoid the wholesale destruction of cropswhich occurs when preventive measures are neglected. The rural population inthreatened areas needs more training to undertake preventive and remedialmeasures. While the intervention capacity of local plant protection brigadesneeds to be enhanced, the projected cost (US$ 6.0 million equivalent) ofupgrading the service was considered too costly at this time. As the APCUcovers some 652 of the area treated, against about 352 by the plantprotection brigades, the Government opted for financing aerial treatments asthe most economic man* of addressing the problem in the short-term. Theprojected income statoment for APCU for FY92 (expected to remain at similarlevels thereafter), demonstrates APCU's capacity to generate rovenuessufficient to replace equipment and provide operating costs to cover itscommercial activitLes, leaving a not profit which can be used to defrayGovernment's recurrent cost of anti-locust activities representing about 201of the totals
(CFAF)
IncomeGovernment (Anti-locust campaign) 160,000.000
(Village Treatments) 25 000,000Commercial Activities 175000000
360,000,000ExpensesFuel 74,300,000Spare Parts 13,500,000Aircraft Servicing 31,200.000Insurance 30.000,000Other Overhead 96,000,000Depreciation 90.6 50000
235,650,000
Net Profit 124,350,000
4. Obiective. The objective of the medium-term program would be toassist the Government formulate a sustainable crop protection strategy,drawing on minimum support from the public sector and involving as such aspossible local communities in preventive and protective measures. Theoptimal strategy would be to provide the utmost protection to plants whenthey are most vulnerabLe to attack and to destroy the maximum amount oflocusts vhen they are most defenseless (although provision should also bemade for emergency treatment of unpredictable attacks by adult swarms).
J. Description. Under the proposed project a study will be done toevaluate the Crop Protection Services of the Agriculture Ministry, especiallyits phytosanitary brigades in the region, define the level of participationwhich could be expected from the local population as well as the logisticalneeds against locust attack in the northern Provinces. Based on the study,the Bank would assist the Government in mobilizing and coordinating donors'assistance (materials and equipment for HINAGRI and farmers, chemical inputs)for this program.
6. As more than half the treatment is done by air when the interventioncapacity of ground forces are surpassed, the project would support APCU inboth survey and treatment flights, through the provision of new transport andz.-pairs to existing aircraft, equipment and spare parts, training andoperating costs. A recent study undertaken by the Ministry of Agricultureprojects that APCU can generate sufficient funds through its comercialactivities to replace equipment and cover operating costs, and contribute 20Zto the recurrent cost of the Government's anti-locust program in the North.Two cropduster aircraft at a cost of about US$300,000 each are included under
Page 3 of 3
the proposed project, as purchase is more economical than leasing.
7. Costs. The total cost of the component, including contingencies,would be CFAF 1297 million (approximately USS 5.4 million) as follows:
Bank Govt. APCU Total
Vehicles & Equipment 2.11 2.11Training 0.20 0.20Operating Costs 1.76 1.37 3.14
Total 2.31 1.76 1.37 5.44
8. Orianization and Manasement. APCU would carry out survey andtreatment flights as requested by the Plant Protection Service, supported bythe FAO annual training program. MINAGRI would be responsible forundertaking the a study to determine the cost/effectiveness of the CropProtection Service and the possibility of farmer participation in cropprotection (the cost of which is included under the MINAGRI components int hesummary table in Annex 7, p. 2).
9. Benefits. The Locust Control Program would significantly improvefood security in one of the most vulnerable regions of Cameroon by reducingthe risk of crop destruction by locust swarms. Preventive action and timelytreatment will result in protection against losses.
REPUBLIC OF CAMEROON
FOOD SECURITY PROJECT
Early Warning and Market Information System
Description
1. The information system would need to provide for the collection,analysis, summary and diffusion of data on variables considered relevant tothe monitoring of food security and markets. At present, certain of thesedata are collected unsystematically by various Government services.Processing is neither timely, nor directed to the requirements of specificend-users. Under the project, relevant activities wo-uld be streamlined andcoordinated by a single Government department.
The information to be provided would include:
- forecasts of foodcrop harvests and precise indication of surplus anddeficit areas;
- regular reports on important provincial markets (prices of basicfoodstuffs, sources of supply of local produce, presence of importsand/or produce destined for export, volumes traded and merchants'stocks, qualitative information on supply and demand); and
- reports on the food security situation in high risk areas.
Specifically, the output of the information system would be:
- quarterly bulletins and an annual report to be prepared by thecentral unit for diffusion to Government planners. These wouldcomprise:
- an analysis of the cropping season based on agrometeorologicalindicators (rainfall and its distribution in relation to cropsplanted) and production indicators (state of crop development,areas sown, availability of inputs, projected yields);
- an analysis of a sample of agricultural markets with respect toprices, volumes traded, stocks, exports and imports;
- a qualitative note on high-risk areas (particularly the North andoutskirts of urban areas) with respect to the nutritional statusof the population.
- regular weekly or bi-weekly radio programs at the provincial levelcovering agricultural markets. These would include information on
prices, stocks and volumes traded in each market.
2. The project would support the establishment and operation of theinformation system over a period of three years. Specifically the supportwould take the form of:
- technical assistance consisting of a Chief Technical Advisor withexperience of Early Warning Systems, who would help to set up thesystem over a period of two years, and specialized consultancies asrequired;
- equipment for carrying out the necessary surveys including anallowance for renewal of existing vehicles and their operatingexpenses, office equipment and expenses related to the questionnairesand radio broadcasts; and
- training of enumerators and MIHAGRI personnel
3. It is envisaged that by the third year local personnel would be ableto take full responsLbility for operation of the Early Warning and HarketInformation System and no further technical assistance would be required.However, budgetary provision would be required after the third year to permitcontinuation of operations.
Costs
4. Total costs of the component, including contingencies, amount to CFAF344 million (approximately US $ 1.3 million).
Oraani:ation and Hanaiement
5. Effective organization and management is crucial to the success ofthe Early Warning and Irformation System. The objective would be to makebetter use of available resources by relying on existing statistical servicesto collect, process and diffuse the Information required under the newsystem. At present these services are inefficient owing to:
- the absence of an overall strategy defining information required andthe use to which it would be put and allocating responsibilLties tothe different services;
- lack of communication between different ministries and even betweenservices withln the same ministry, aggravated by the absence of anycoordinating structure, leading to duplication of activities;
- shortage of qualifLed staff, particularly vith respect to evaluationof nutritional issues; and
- inadequate and/or inappropriate data processing facilitLes.
6. Following review of the various statestLcal services, lt isrecomuanded that the Direction de la Planification Agricole (DEAPA) ofMINAGRI be put in charge of the Early Warning and Market Information Systemand manage the Central Coordinating Unit. The DEAPA in already responsiblefor producing information on agricultural production and producer prices andhas enumerators in the field throughout the country as well as qualifiedstaff capable of processing and anslyzing the data collected. 1,
7. in addition to the production data already collected, DEAPA wouldobtain information on agricultural markets using its field personnel andensure the provision of specifLc data from other sources as required. TheMeteorological Service would supply climatic and rainfall data, the ministryof Industry and Commrce (MINDIC) trade and stock data, and otherorganizations, such as the parastatal development agencies and mOos,information on nutritional aspects. All data from other sources would beforwarded to the Central Coordinating Unit at DEAPA for processing, synthesisand subsequent diffusion.
S. The Coordinating Unit would be staffed with four existing personnelnamely, an agricultural economist, a statisticLan and two resoarchassistants. The technical advisor and consultants would work with this tern.The Unit would establish the work plans of the different entities involved inthe Information System and ensure respect of deadlines for delivery andpublicatLon of data. It would be responsible for supervising operations.
93 With guidance from the Central Coordinating Unit, field personnelwould be responsible fort
- collecting basic data (agricultural production, market information,qualitative assessments of the food sltuation);
- making a brief commentary and forwarding both by telex to theCoordinating Unit at regular intervals; and
- producing radio programs to transmit market information. These wouldbriefly announce prLce trends of major products and comment on themarkets (sources of supply, number of traders, volumes traded,stocks...). The programs would be produced at the provincial leveland would require some local capacity for data analysis and programpresentation.
11 DEAPA has benefitted from substantial assLstance from USAID under theAgricultural Hanagement and Planning Project (AMP), which is due tt) be xatendedto cover information on the livestock sector. Primary reliance on DEWPA Impliesthat additional expenditure necessary to operate the Informtion System will beminimized.
Page 1 of 2
REPUBLIC OF CAMEROON
FOOD SECURITY PROJECT
Market Infrastructure
1. The Government's new policy of delegating to municipalities theresponsibility for providing market infrastructure, from their own resources orfrom commercial loans which they would then repay from proceeds collected frommarket users, highlights the need both for economical but functional structuresand for access to credit for the construction of market infrastructure. Thiscomponent has been designed to respond to that need.
2. The project would provide a credit line of CFAF 1 billion to financemarket structures. While this falls significantly short of demand, it should besufficient to finance between 30-40 markets. This would provide a usefulsupplement to funds available for income-earning municipal projects under theSecond Urban Project. Funding would also be provided for informingmunicipalities of the opportunities available and for assisting them both in thepreparation of requests for financing and in supervising construction works.
Costs
3. Total cost of the component, including contingencies, woul' be CFAFCFAF 1.5 billion (about US $ 5.8 million) of which 30Z would be the contributionof the municipalities themselves in the form of cash as well as site access andservices. Sub-projects will not exceed USS 300,000 per project, with Bank'sprior approval required on sub-projects beyond US$150,000. An amount of USS 0.4million will be provided for training.
organization and Management
4. The project would follow the institutional arrangements adopted underthe Second Urban Project for financing municipal projects, channelling the fundsthrough the Credit Foncier do Cameroun (CFC). CFC is mandated to promotehousing, and funding of municipal projects is considered a natural extension ofthis mandate. The CFC is deemed the most appropriate institution to undertakethis role as commercial banks are neither in a position nor willing to lend tocommunes, while the agency specialized in municipal finance (FEICOM) has noexperience of providing credit as opposed to grants and is, in any case,considered not adequately staffed and experienced and unable to function as aviable financial institution.
5. Although CFC would have overall responsibility for the component,representatives of the Ministry of Territorial Administration (MINAT) wouldparticipate with CFC in the technical evaluation of sub-projects. CFC's loanCommittee would make the financial and economic evaluation of sub-projects, andmake recommendations to the Board of CFC with respect to approval of financing.Specific responsibilities for project approval would be as followst
CFC
- management of the line of credit; and
_ assessment and final decision as to eligibility for fu.ding inaccordance with CFC loan regulations and with the specific criteriaestablished for financing market infrastructure projects (seebelow).
MINAT:
- decision as to compliance of request for funding with administrativeregulations; and
- participation in assessment of eligibility for funding.
6. Funds would be on-lent from Government to CFC at an interest rate atleast equal to the Bank lending rate, which would then be passed on to themunicipalities with a margin, to be determined by CFC, for a period of eightyears. The foreign exchange risk will be assumed by the Government. Sub-projects above US$150,000 would be sent to IBRD for prior approval.
Conditions for Financing Market Irfrastructure Proiects
7. In order to meet the objective of economical development of marketinfrastructure it is important to establish a generally applicable framework,describing the conditions to benefit from foreign financing. This would include:
- the cost range acceptable for financing, not to exceed US$ 300,000;
- viability criteria, such as a minimum economic rate of return of 15z;
- definition of municipalities' responsibility for provision of site access,water and (where applicable) electricity, their role in management,maintenance.
- financial forecasts of municipalities' expenditures and receipts, theirfinancing plan, including norms with respect to constitution of initialworking capital, and constitution of municipalities' budget, incorporatingprovisions for debt service payments;
8. Loan agreements to be signed between CFC and the borrowingmunicipalities will incorporate the above information, as well as thedisbursement, procurement, and repayment procedures, and the right andobligations of both parties.
Page 1 of 4
REPUBLIC OF CAMEROON
FOOD SECURITY PROJECT
Nutrition Education Pilot Component
Backaround and Sumarv
1. Malnutrition is a significant problem in Cameroon; one which meritsattention under a food security intervention, if the food security effortis to have the desired development effect -- i.e., improved laborproductivity, declines in disease vulnerability and infant and childmortality, and improvements in children's ability to learn. Rates ofmalnutrition have not been adequately monitored in the country, thereforeup-to-date statistics are not available. A national survey conducted in1978 showed rates of chronic malnutrition, as measured by height-for-ageranging from 202 to 30X. In the decade that followed that survey.indications have been that malnutrition has not only not improved, but thatin many areas it has deteriorated further.
2. Within the context of food security the most important determinantsof malnutrition are low socio-economic status associated with inadequateaccess to food, seasonal food shortages and inappropriate infant and childfeeding and maternal dietary practices. In view of the high ratio of foodself-sufficiency (96?) in Cameroon, improving household access to andavailability of food would require an emphasis on improvements in fooddistribution and household purchasing power. Nutrition education has arole to play in effecting changes in feeding and dietary practices.
3. The nutrition component of the project is designed to broaden thedevelopment impact of the micro-projects component by effecting changes inpractices to ensure that increased income and access to food will be usedin ways which improve nutrition. Even though no formal link has yet beenestablished with the micro-investment component of the proposed FoodSecurity Project, an effort would be made during implementation to targetsame beneficiary groups, particularly women's groups, under bothcomponents. Activities supported under the project include: in-depthqualitative research and analysis of child feeding and maternal dietarypractices; formulation of an education strategy; materials development andtesting; training of the technical ministries field staff in the aboveactivities; pilot program implementation in several departments of thethree provinces with the highest rates of malnutrition; and evaluation ofthe pilot program.
4. Linking nutrition education to efforts to improve purchasing powershould serve to broaden the effect of either intervention -- micro-projectsor nutrition education -- introduced on its own, and may be a more cost-effective approach to meeting development objectives. Providing educationto organized groups targeted for income-generating purposes could act as anincentive for group participation and cohesion. The nutrition education
Page 2 of 4
intervention would benefit from the delivery structure already in place forthe micro-projects.
5. Secondarily, the nutrition component, through the qualitativeresearch and strategy formulation activities, will provide the foundationfor the development of a national nutrition education strategy and programfor high risk groups (children under five years and pregnant and lactatingwomen). The project will support the development of guidelines for theexpansion of nutrition education throughout the country.
Detailed DescriDtion of Activities
6. Proaram Desian. Cameroon has demonstrated capacity in thedevelopment and implementation of effective nutrition education programs.A pilot nutrition education project implemented in the Extreme NorthernProvince by CARE/Cameroon in collaboration with the Ministry ofAgriculture's Department of Community Development and the Ministry ofHigher Education and Scientific Research was successful in developing aneffective strategy of nutrition education for illiterate, hard-to-reachpopulations. Moreover, within the Africa region, effective methods forlinking education to interventions designed to increase incomes and foodavailability are underway. Building on this capacity and experience thefollowing steps will be undertaken to design a nutrition education programto link to the micro-projects activities:
o Qualitative research. - To supplement available information,emphasizing maternal dietary practices, and to take into account regionalvariations in behavior, the project will undertake qualitative research.In-depth household interviews and observation, household trials of newbehaviors, focus group discussions, and analysis will be carried out underthe direction of the coordinating committee. Technical assistance will beprovided by CARE/Cameroon based upon their prior in-depth experience withthis type of research.
o Formulation of education strategy, materials development andtesting. - The results of the research phase of the project will lead tospecific recc-mendations for the design of an appropriate educationprogram. Benavior change objectives will be established and acommunication strategy developed. This entails deciding on media,materials and an implementation plan. The provincial and departmentalFIMAC (micro-projects program of the Food Security Project), involvingstaff from the Division of Agricultural Projects (DPA) and the Departmentof Coumunity Development of the Ministry of Agriculture will be responsiblefor coordinating the strategy formulation with the micro-projectscomponent. ESIRES, MINSANTE, MINASCOF, CARE and other NCOs involved inthe implementation of nutrition-related activities will collaborate andprovide technical assistance. Locally available artists and materialsproductions groups, within the ministries or from the private sector, willbe involved in materials development and production activities.
o Training. - Staff will be trained in the qualitative researchconsisting of collecting qualitative data (focus group, ethnographic
Page 3 of 4
accounts and testing within households), data analysis to identify problemsand elaborate a strategy, and production of pedagogical material; Trainingwill be provided on communication technics to about 400 field agents in theuse of the pedgogical material and dissemination of messages. Emphasiswill be put on individual councelling sessions, group discussions,andinterpersonal communication; Training will be given to members of thetechnical coordinating committee and field staff in the design, datacollection and analysis for program evaluation.
7. Implementation. Following the development and testing of materials,program implementation will begin with the training of the field workers.Extension workers of the DEVCOM of MINAGRI and rural animators fromMINASCOF, involved in the coordination of the micro-projects, as well asadditional MINSANTE or MINASCOF field workers will deliver nutritioneducation. Initially, the program will be launched in several departmentsof the Extreme North, the Eastern and Western Provinces. Supervision andin-process monitoring will be incorporated into the implementation plan.
8. Evaluation. Before launching the education activities, a baselinestudy will be conducted to examine mother's knowledge, attitudes andpractices and nutrition status of the high risk population (children underfive years and pregnant and lactating women) and a comparison group.Following one to two years of program implementation, a repeat survey willmeasure changes in participants' knowledge, attitudes and practices relatedto the program's messages and nutrition status.
Program Expansion
9. The pilot nutrition program supported under this project is intendedto provide the basis for developing a strategy for a national nutritioneducation program. Most of the education programs' costs are start-upcosts involved in research, strategy formulation, and materialsdevelopment, testing and production, and on-job training of field stat:.To sustain and expand the education effort launched under this project, animplementation plan for the phased introduction of a national program toadditional departments and provinces, and through additional channels, willbe produced by the technical coordinating committee.
Organization and Management
10. The nutrition component will be a collaborative effort of theDivision of Family and Mental Health of MINSANTE, Department of CommunityDevelopment of MINAGRI, rural animators of MINASCOF, and MESIRES. MINSANTEwill coordinate the project. The NGO selected to assist in projectimplementation will provide substantial technical assi3tance. Work willbe done under the direction of a coordinating committee made up ofrepresentatives from each of the ministries. Additional personnelincluding artists, communication experts, trainers, field supervisors foreach of the three provinces, field-level investigators for researchactivities and field-level implementation personnel to deliver theeducation will work under the direction of the program manager.
Page 4 of 4
11. A technical coordination g -,; r ;ill be established comprising therepresentatives of all the technical ainistries concerned. The group willmeet regularly to prepare action plans for the different phases of theprogram. assure their execution, attend training sessions, report to theirrespective ministers on the progress of program implementation and finally,on completion of the program, define a national strategy and action plan.
12. A MINSANTE national coordinator and the NGO technical coordinatorwould be responsible for assuring program execution, including thefinancial and physical management of the project. A contract betweenMINSANTE and the NGO will establish precisely the responsibilities of eachof the coordinators in the physical planning of the work, preparation ofannual budgets, monitoring of physical implementation of the program andbudget execution. The NGO will make available experts and personnelcorresponding to the tasks to be carried out for necessary logistical andadministrativea support for program management.
13. A supervisor would be assigned to each zone responsible for analysisnf data collected, establish a specific strategy for the zone, andsdpervise the work of the lanimateurs'.
Implementation Schedule
PROJECT YEAR PRE-PROJECT PY1 PY2 PYS PY4
Actvitios (Quart.r) 1 2 3 4 1 2 J4 1 2 J 4 1 2 3 4 1 2 3 4
Impl* ntation Plan x x
Personnel recruitment x
Qualitative Research xxxxxxxxxxxx
Strategy formulation x
MateraJs D-v A Testing xxx
Ba*eline Implementation x
Training xxxxxxxxxxxxxxxxxxxxxxxxxx
Program Implemntation xxaxxxxxxxxxxxxx
Evaluation xxx
CmamrooeFood Security ProgrmProject Cost Summery
CFAF US3 S Total--- ----------- - -------- -------------------- ------ X Foreign Base
Local Foreign Total Local Foreign Total Exchane Coets
A. Micro-Projecte1. Suopprt Services 304.4 591.7 966.1 1.4 2.3 3.7 01.9 11.52. Projocte 1992.9 1272.9 3265.3 7.7 4.9 12.6 39.0 39.2S. Traitnig 530.5 24.5 566.6 2.9 0.1 2.1 4.4 6.7
Sub-Total 26#7.8 1839.1 4776.9 11.1 7.3 16.4 39.5 67.3B. Locust Control 294.2 1002.6 1296.8 1.1 3.9 5.0 77.3 16.6C. lforstioa Syate 169.3 134.6 343.9 0.6 *.7 1.3 63.7 4.1D. Market Infrastructuro 926.t 636.6 1566.0 3.6 2.4 6.9 4U.6 16.6E. Nutritio 163.0 20 .9 371.8 0.6 0.8 1.4 56.2 4.5
Totsl BASELINE COSTS 4424.3 3915.1 8339.3 17.9 16.1 32.1 48.9 109.9Physical Contingenciee 139.2 191.4 330.6 0.6 0.7 1.3 57.9 4.0Price Contingencies 803.2 313.7 616.9 1.2 1.2 2.4 50.9 7.4
Total PJE"CTS COSTS 466.7 4428.1 9.6 16.7 17.0 36.7 47.6 111.4
Value Scaled by 10.0 - 1/31/1991 13:53
.4.4.i. @6.4Q~5 0000. (4066".46 @004
s~~~ - - - - -. - - - - - -- - - -- - -
~~~Su a , _ o _j a oooo _ w"f
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. lt~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~S
i ..10 .. _
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S!*geS 3I:22 1 1 SI223 l 3 I
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Is 233 : a . i
I"S t: A; jA^a;l ~I ... 8 .__ 6________ .. ___
CAMEROON
FOOD SECURITY PROJECT
Amounts and Methods of Procurement
(USS 1Millions)--------------------------------------------- __--________________________________-
Component ICS LCB Oth-r N.A. TOTAL
PART I: MINAGRI
A. FIMAC
(1) Support Servies : sVehicles 1.8 : : : 1.6
0.69: : : 6.69 :: 6.34 : : 6.84 os
Equipment : : 6.43 s s : 6.4S0.22: 0 22:.6.20: :2 : .26:..
Technical Assisttnc- s 1.84 1.34* : : 6.85: s 6.85:.
: : * ~449 : .49 *
Operating Costs : 1.94 : 1.94: : : : 1.11: 1.112
0.65: 0.65:..
Training Materials : 4: : 2.141.56:l" 1.66:.6.58: : 68.5:.
Subtotal 1aa3 0.48 3.48 1.94 U.936.69 0.22 2.41 1.11 4.43 *0.84 6.26 1.67 6.65 2.32 cc
(2) Rural Investoent CreditsCommecial : : : 6.80: : 6.06
9.66: : .66:.Non-Comercial : 0.9 s 8.9 :
- : : i~~~~.11 : 6.11:
Infrastructure . : s 3.17 : 3.17 :2.32: : 2.32:.
Village Storage s s s s s
Civil Works 1.2 1.236.n2 : .92 t
Equipmnt s.31 s s *.81 :s.23 : : 6.28 t s
Subtotal 1.J9 1l.591l.17 16.17
FIMAC TOTAL 1.93 9,48 17.67 1.94 2.523.69 6.22 12.58 1.11 14.66 6.34 8.26 1.67 * .65 2.32 cc
D. Inforatton System
Equipmnt 0 s 6.4: : : .43* 6.4 : : 6 4@ *-
Technical Assistance : 0: 449 .0490.49 : 0.49:..
Training : : 6.18 : 6.136.13: 6.13:.*
Op.ortlng Doste s .7 : 6.57* . . 6~~~~~~~.37: 6 .37 o
Subtotal 6.43 6.67 0.37 1.526.49 6.67 0.37 1.52 *s
PART 1I: APCU
A. Locust Control
Vehicles : .15: : : : .15:0.15: : : : 0.15:.
Equ_ipmt 1.96 : : : : 1.96: 1.96 : s : 1. 9 :
Training s s s 9.26 f 6.206:t : S 6§.26: : 6.206:
Operating Costs : : s 3.14 s 5.14
Subtotal 2.11 6.26 3.14 6.442.11 6.20 2.81 e
PART lII: CFC
A. Line ot Credit
Subloans : 4.25 s 1.6 : : 5.33: 2.:99 1.1 : 4.6 :
Technical Assistance 8 s 6.49 : 0 .49a 6.40: 6.49 : .
Subtotal 4.25 2.0 08.322.69 1.59 4.57 o
PART IV: MINSANTE
A. Nutrition
vehicles s 6.14 s s s s .14 :s 6.14 a s s 9.14 a *
Equipment 0 s 6.22 0 s 6.22 :s a 6 5.22 s s 6.22 : .
Technical Assistance s s t 9.5 S S O.55 S
S S S 6.55 Sa 0.55:S
Troining a s s O U a 98.3s t t ~~~~~.93 s t .09s
Operattin Cost a. S: .59 s 6.50a a a a ~~~~~~6.59 a 6.9:
Subtotal 0.14 .22 6o.u *.9 1.546.14 0.22 6.53 .6.9 1.54 *
TOTAL S.2" 5.41 26.90 5.05 35.54
Of which sank 2.94 3.42 15.C4 1.32 25.62 e
Of which Japan 6.54 0.74 1.74 1.62 5.4 o4
REPUBLIC OF CAMEROON
FOOD SECURITY PROJECT
DISBURSEMENT ESTIMATE
Bank Fiscal Standard 6.5-YearYears & Semesters Estimates Disbursement Profile
(US$'000) CUS$'000)
Cumula-Semester tiv Cumulative S
1992 I 0.46 0.46 2 0.46 2II 0.69 1.15 5 1.15 5
1993 I 0.92 2.07 9 2.07 9IS 2.07 4.14 18 4.14 18
1994 I 1.61 5.75 25 5.75 25II 2.76 8.51 37 8.51 37
1995 I 2.99 11.50 50 11.50 50II 2.07 13.57 59 13.57 59
1996 I 1.84 15.41 67 16.10 70YI 1.38 16.79 73 18.40 s0
1997 x 0.92 17.71 77 19.78 861I 1.15 18.86 82 21.39 93
1998 x 1.61 20.47 89 23.00 100II 1.38 21.85 95
1999 I 1.15 23.00 100
DISURSEMENTS PROFILE
l'] X4.
4 13
|~~ b', * * * *- **e
REPUBLIC Of CANROOK
FOOD SKCURITY PUOJICT
Organizational Chart
of Agr a. clg ef bh ir d C
Ir.gw. U e I -o % .C. nPt)
*fWA P U! AI 4 T.i I
- I~~~~~~~~~~~~~~~~~~~~~~~~~~~~hftl.m F~~~~~ dZw,.e ,em. ".l. dee l N...IIai r.IT..Ic.i.s.I
lou~ ~~1 W. *°..~Cmulin lre (F3C) Nilfte~~~~~~~~~~~twma
st ff1 r_.wAA
I ftraw &l atu If. J mS*.~~~~~~~~~fr * eu emi
CAMEROON
FOOD SECURITY PROJECT
ImDlementation Schedule
AgencyTask Completion Date Responsible
Apoointment ofStaff and Lona Term consultant
1.Selection of long-term DEAPA-MINAGRIconsultant for the Early Warningand Market Information System. August 1991
2.Carrying out of StudyFormulating of Strategy
- Prepare Terms of Reference September 1991 DPA-MINAGRIfor the study on crop protectionservices of t'NAGRI- Signing of contract for carrying November 1991 DPA-MINAGRIthe above study- Formulate strategy on crop September 1992 DPA-MINAGRI
3. Crop Protection- Organize meeting with interested October 1992 DPA-MINAGRIdonors in supporting reformsin the phytosanitary operations ofMINAGRI
4. Training- Establish training needs November 1991 CFCof staff from municipalities MINAT
-Identify Training Institution January 1992 MINATand organize sessions
5. Annual Work Plan, ReDortingand MonitorinR and Evaluation
- Prepare detailed Annual WorkPlans and Budget for each year September 30, 1991 DEAPA,DPA-MINAGRI
and June 30 thereafter APCU-HINAGRIMINSANTECFC
- Semi-annual ProgressReports June 30 and December 31 DEAPA, DPA-MINAGRI
each year APCU-HINAGRIMINSANTECFC
- establish and maintain DEAPA, DPA-MINAGRIrecords and accounts on various APCU-HINAGRIcomponents MINSANTE
CFC
- have records *nd accounts December 31 every year DEAPA, DPA-MINAGRIindependently audited, plus a second audit APCU-MTNAGRI,with a certified copy of FIMHC by May 31 MINSANTEsent to IXRD each year CFC
- mid-term evaluation of FIMACcomponent December 31, 1994 DPA-MINAGRI
REPUBLIC OP CAMEROON
FOOD SECURITY PROJECT
Supervision Input into Key Activities
Borrower's Contribution to Supervision.
Progress reports are to be aubmitted at the end of March and September ofeach year. Ministry of Plan vill be responsible for consolidating thereports prepared by the various project agencies. Ministry of Plain willbe responsible for submitting to the Bank a mid-term evaluation of FIMACoperations during 1992.
Reports will be submitted to supervision missions, to be scheduled aroundmid-March and mid-September.
MINPAT will be responsible for coordinating arrangements for Banksupervision missions.
Mission briefing meetings on arrival, and vrap-up meetings normallychaired by the MINPAT, with the participation of representatives fromMINAGRI, MINSANTE, MINASCOF, HINAT, CFC.
Bank's Contribution to supervision.
CY Mission's Obiectives Staffweeks
1991- II Review progress in Task Manager 4.0meeting conditions ofeffectiveness
1991- III Supervision to review Task Manager 6.0Work Plans and Budget
1992 Mid-Term Rview of Food Security Task ManagerOperations Specialists 12.0
1992-1995 Two supervision missions Task Manager 60.0reviewing progress of SpecialistsProject, Work Plans, Budget,and audits
Project Supervision missions will be combined with other tasks inCameroon.
REPUBLIC OF CAMEROON
FOOD SECURITY PROJECT
Economic Analysis
1. The varied nature of the different components of the Food SecurityProgram poses obstacles to adoption of the conventional methodology foreconomic analysis of agricultural investment projects. The program cannot beanalyzed as a single entity but only as the sum of its parts. Therefore,econouic rates of return have been estimated for the individual componentsand, on the basis of these, an assessment has been made as to the overalleconomic viability of the project.
A. Micro-Projects
2. Two characteristics affect the economic analysis of this, the majorcomponent of the Food Security Program. Firstly, as the choice of a specificinvestment is left to the beneficiaries, the benefits cannot be identified orquantified ex ante in any meaningful fashion. Secondly, in so far as theycan be identified, they consist of items that are essentially nontraded, orwhose market is strLctly circumscribed. This suggests that economlc valuecan be approximted by financial prices, particularly as prices of equipmentsupplied for use in the micro-projects are excluslve of tax, while the valueattributed to labour (CFAP 1000/day) appears to reflect its opportunity costin rural areas. The approach adopted, therefore, has been to combineeconomic and financial analysis in the review of four models considered to berepresentative of the projects eligible for financing.
3. Investment in mLcro-projects accounts for almowt SO0 of the cost ofthis component, while another 8S is taken up by training, and the balance forsupport costs. Over 702 of project financing is to be for so-calledlucrativew projects, where one of the crlteria for financing is that theestimated rate of return should be at least ISZ. The four models used serveto demonstrate that such a critorion is realistic and even, in so cases,modest, thereby suggesting that the rate of return for the component as awhole is likely to attain the 152 benchmark.
4. Despite the justifications given above, the iprecision of theapproach to economic analysis of this important component, which accounts forover 602 of project expenditure, is likely to give rise to concern. owever,it should be bourne in mind that the investment is to the benefit of grass-roots coasunities, who have few opportunities outslie agriculture forcontributing to the economy. Any increase of value-added and developoent ofproductive assets at this level is important as, In the absence of someexternal support, little could be realLeod.
Flour Mill
S. Small flour mills, which relieve the drudgery of pounding grain andrelease precious time for other activities, are one of the items mostrequested by groups of women. The model, based on purchase of a mill costingCFAF 1,350,000 and construction of a shed in which to house it, shows that aneconomic rate of return of almost 16S can be obtained when 600kg of grain aremilled each month (Table 1). This assumes that benefits take the form ofvalue added, reflected by the milling charge of CFAF 50/kg, and bran,estimated at 5S of the value of the grain milled.
6. Considering that average annual consumption of millet and sorghum inthe North, where cereals are the major component of diet, is estimated atabout 150kg/person, 600 kg/ath would cover the needs of about 50 people. Itis likely that d4mand in even a small village would be significantly greater,thereby assuring the profitabilLty of the operation.
7. Financing of 60S of investment costs amounts to CFAF 870,000, whichthe group would be in a posltion to reconstLtute in equal installments over4 ysars.
Chicken Farm
8. The chlcken farm model assumes the rearing of 500 broilers in batchesevery 3 months. Although, in theory, locally produced chLckens would competewith imported ones, this is improbable in rural areas both because of the*natural* protection offered by distance and because of taste differences.While there is inLitial investment ln a building and equipment, the majorexpenditure is the recurrent one for feed followed by the purchase of chicks.(Table 2) Assumptions include; rearing of only one batch of chickens in thefLrst year (which would in fact be sold in year 2), mortality of 302 in thefLrst full year of production (year 2) declining to 202 in year 3 and 1O0thereafter, a sales prlce of only CFAP 2,400 per bird, which is 20S belowaverage prices recorded. Even with these fairly restrictive assumptLons, tZ2teconomlc rate of return is high at 551. If one were to assume further thata whole batch of chickens was lost in each of the last 5 years of theproject, the rate of return would still exceed 40S.
9. Owing to the weight of recurrent costs, the group would requireassistance with these expenditures as well as wLth investment in the fLrstyear. It is therefore proposed that the asslstance amount to 601 of totalexpenditures in year 1. In these circumstances, receipts from sales would besufficient to permit continuation of operations to reach full development inyear 2. Reconstitution could take place over three years in three equalinstallments of CFAF 303,800 each.
Palm Oil Press
10. The model for the palm oll press is based on a press capable oftransforming up to 500 tons of Fresh Fruit Bunches (FFB) a year. As a sangle
group of farmers is unlikely to have more than So tons of its own produce toprocess, it is assumed that the group would process the FFB of other farmersin the area for a fee of CFAF 5,000/ton FFB. Conservatively, it has beenestimated that a total of 100 tons would be processed by year 3 andthereafter, but there is clearly scope to process additional produce if i- isavailable. In comparison with manual processing, extraction rates wouldincrease from 8-102 to 14-152. Oil is valued at the local price of CFWA220/kg for both economic and financial analysis as consumption of the type ofoil produced is restricted to the domestic market.
11. In economic terms, the benefits are represented by the incrementaloil produced from the same quantity of FPS (a 502 increase). Costsconsidered in the economic analysis include the investmnt in the press endthe building to house 1. as well as in supplies for operations. There wouldbe no incremental labour required, in fact labour requirements might actuallydecline in comparison with manual processing. Under these assumptions, theecon.omic rate of return over ten years would be 31Z. (Table 3a)
12. For the financial analysis, it is assumed that while group memberswould process their own FFB, hired labour would be used for processing FFB ofother farmers. The hired labour would be remunerated at CA? lo/litreprocessed. Benefits would consist of the value of the additional oilextracted from the group's own FFB plus the fees paid for other processing.Under these assumptions, the financial rate of return would be approximately182. (Table 3b) Financing through FIMAC would amount to 60Z of investmentcosts, which the group would be able to reconstitute in 4 years with fourequal installments of CFAF 502.500.
13. As two out of the three models show returns considerably in excess of152, it is not unreasonable to assume that the component as a whole will havea rate of return of at least that amount. For this to be assured, an averagerate of about 262 on the lucrative projects alone would be required.
B. Village StoraRe
14. The contribution to food security of an efficiently operated villagegrain store is clear. Grain will be available locally when required. Farmerscan benefit from the higher price offered when grain is sold later in theseason rather than immediately after harvest while, as consumers, villagerscan benefit from a more regular supply and avoidance of speculative prices inthe lean season. In economic terms, storage permits an increase in bothproducers' and consumers' surplus as, to a certain extent, benefits arecreated by substituting lower cost production in the *surplus' period forhigher cost production in the 'deficit' period, and higher valued consumptionin the 'deficit' period for lower valued consumption in the 'surplus' period.
15. The component, which is a pilot operation, concerns the establishmentof 200 stores of 40 tons capacity. In addition to assistance with theinvestment along the lines of other micro-projects, groups would also receiveassistance from the World Food Programme in the form of en initial stock of
20 tons of grain (purchased locally), equipment and rations during the periodof constructLon of the warehouse. It is assumed that over a period of 10years each group would gradually bulld up its stock to the warehouse capacityof 40 tons. Losses would be reduced over the first 4 years from 302 undertraditional conditions to 102. (Table 3a and 3b).
16. In the economic analysis, the vithout project sLtuation is assumed tobe one where farmers are obliged to sell the grain that they would otherwiseput into the grain store immediately after harvest at the prevailing lowprice of F40kg. Economic benefits are consequently reflected in thedifference between proceeds from sales, at the higher price of FSO/kg, andpurchases, net of handling costs and losses. The difference in prices hasbeen assumed to reflect producers' and consumers' surpluses. On this basis.an economic rate of return of 162 is obtained.
17. The financial profitability of the operation also rests on the mrginbetween the purchase and selling prices and the financial rate of return istherefore equivalent to the economic one. Financing is rather more complexthan under the Hicro-Projects component. External fLnancLng from the saomsources as under the micro-projects would cover 402 of lnvestment costs,while the World Food Programme would finance another 302 in the form of bothrations and equipmnt. ThLs capital would be reconstituted by the group over5 years as follows: 102 in yr2, 152 in yr3 and 252 in yrs 4-6. The WorldFood Programme would also donate the initial 20 tons of grain to provide thegroup with a revolving fund of working capital with which to carry outoperations and build up their stocks.
C. Infonmation System
18. The enhanced flow of information about production and prices broughtabout by the establishment of an information system should help to reduceuncertainty and enable producers to secure more remunerative prices. This inturn should stimulate greater production. However, it is extremely difficultto hazard a guess as to the magnitude of the impact on production.Furthermore, the proposed investment in establishing an informatioo system isin the nature of a pilot operation, which would need to be reviewed after 3years to assess its impact and the advisability of further investment.Benefits would certainly not endure in the absence of further investment as,apart from the technical assistance, which accounts for one third of thecosts of this component, the expenditure is essentially recurrent in nature.For the above reasons, benefits from the proposed pilot project have not beenquantified and no economic analysis has been carried out for this component.
D. Locust Control Program
19. The locust control program has been designed to benefit the twoprovinces of the North and the Far North. As ln the case of the informationsystem, continued impact will depend on sustained support, so the ime diatebenefits of the investment proposed in the context of the Food SecurityProgram have been compared to the actual costs over the 5 year period. In
addition to the costs contained in the component as presented, pesticides areto be added (?). In the absence of the pesticides there vould be nobenefits. Measures are included in the project to ensure the safe use of thepesticides proposed so that there should be no economic costs in the form ofnegative environmental or health effects.
20. The benefits have been estimated in terms of the grain harvest of theregion valued at import parity prices on the assumption that imports wouldcome from tlhe closest source, Nigeria. It has been assumed that treatmentwould result in the prevention of losses of 302 of the harvest in 4 of the 5years. As losses caused by locust swarms are reputed ac high as 702 of theharvest, the hypothesis adopted is conservative. Under the aboveassumptions, the economic rate of return is almost 202. (Table 5)
Z. Market Infrastructure
21. While investment in an individual market structure may be based onthe average cost of a module with aa *0.4itional 152 for access and services,no estimate has been made by the marketing specialist for the expoctedoperating costs of the market. These would have to cover inter alia:utilities, such as water and electricity, cleaning, security, generalmaintenance, insurance, personrel and management. As an approximation, ithas been assumed that annual operating costs would not exceed 202 of tota'investment. In addition, in the financial analysis, an allowance has beeLmade for depreciation over 10 years. Revenue, both to cover operating costsand to reimburse the loan, would have to come from charges to users of themarket. Current rates range from CFAF 4,000 to CFAF 12,500 a month. For thepurposes of the financial analysis, the lower rate has been assumed for the400 stalls which can be accommodated in one version of the module. On theseassumptions, the rate of return is satisfactory at 182. (Table 6) Apayback period of 8 years at 122 interest has been discussed with Goverrment,but the model shows that even reimbursement over 5 years could beaccommodated.
22. Economic analysis of this component is problematic. Whileconstruction costs can be estimated net of taxes, depreciation excluded, andoperating costs assumed the same as in financial terms, benefits aredifficult to identify, let alone quantify. New market structures are likelyto imply more sanitary conditions for trading of foodstuffs, thereby reducingrisks to health. Losses may also be limited. Greater opportunities formarketing produce at new markets might also, eventually, lead to a produtionresponse. As it is not possible, at this stage, to put a figure on thesepossible benefits ar economic rate of return has not been estimated.
Conclusions
23. On the basis of the above analysis, a composite rate of return hasbeen estimated. Excluding the Information System and Market Infrastructurecomponents, for which no rate of return can be calculated, the economic rateof return for each remaining component (which together account for over 802
of project costs) has been weighted by the share of that component incombined costs. For the Micro-Projects, the minimum expected rate of 15S hasbeen used. The resulting composite rate of return is estimated at 16?.
ANNEX 11Page 7 of 10
1*IC OF CM
FoOD saURrrY r Ea
2 3l 4 5 6lour Mil1
CFAF
;111 1380000hi. [dine 8000020
!-o41l 1480000 0 0 20000 0 0 20000 0 0 0
lt:.;,. Cost.CM I S00 800 36000 380 38000 860 88000 36000 560 34000into" nee 7200 1440 14400 14400 14400 14400 14400 14400 14400 14400
.0a800 3250 6SOO 630 60 650 6000 0 6800 6300 6500ige 600 120W 12000 12000 120o0 12000 12000 12000 120O0 12000:.ebs 1 4480 66o 60 saw Oo 8o9 Gem saw s80 6Oo
jill Sn gharge(1j 1440 2000 830000 30000 860000 8800 380000 380000 880000 360000lren(2) 5760 11520 14400 14400 14400 1440C 14400 14400 14400 14400
i-tof 1 149780 29930 74400 374400 374400 374400 374400 874400 874400 374400
ph Flow -1334890 2X0620 308800 2MM 80 306 3 0 2685 15500 30 550o 308800
0 .S7302
A Financing
OAC Contribution (3) 870000,iaed Cashi Flow -484690 230820 305500 283500 3050 50 26500 3050 305500 805500ont t.tution 217500 2173W0 217800 217500
lance romeining -496480 13120 0800 8300 0800 305500 285500 805500 30550 30550
Lo (1) FSO a 60o0ka/wA a 12 atFu.w (2 af value of grain mi l1d.jz, ( S) f investment casts.
REPUBLIC OF CAIROON
Tabl63
1 2 3 4 icken Fer 10 9 1CFAf
feaitment11i1ding 500000
uipamnt 300000 300000 300000i-total 000000 0 0 0 0 0 00000 0 0 0
pwating Costs:h i ek ' 150000 800000 800000 600000 gooo 600000 0 0 oooo 00000 600000 600000
!so (2) 504000 2016000 2016000 2018000 201600 20180 2018000 9016000 2016000 2016000nt nta,ry 50000 200000 200000 200000 200000 200000 200000 200000 200000 200000
'erfonne iSO10 80000 60000 60000 60000 6 � 800 60 60ietribution 0 70000 80000 90000 90000 90000 90000 90000 90000 90000
i-total C 719000 2046000 2956000 2966000 20 0 29660 2966000 2968000 29600 266000
:eipta (3) 0 3360000 3840000 4320000 4320000 4320000 4320000 4320000 4320000 4320000
oh Flow -1519000 414000 84000 1054000 154000 1354C00 1054000 13S4000 1354000 13540
0.54716
'b financing
OAC contribution (4) 911400id cas" flow -607600 414000 864000 1054000 1354000 1354000 1054000 1354000 1354000 l354000
m-Ot;tut;in 30360 303800 303600ance re ining -607600 UOk 5U0200 750200 1354000 1354000 1054000 1354000 1354000 1354000
l 1) 500 b i rds raInd every 3 months. 1 batch only In yrl sold in yr2.(2) 6k fed per bird, 6300/0k seck.(8) Birs mold for P2400/each. Nortality: 301 yr2. 201 ye3* 101 tlhreafter.
We (4) FIUC aotribution 60S of total costa in yr 1.
ANNEX 11Page 8 of 10
f000 5mr!Ty NKl_wCT
Table *a
1 _ P2lPs I Press EcoIa.ri An I woot 2 S 4 5 § ~ ~ ~~7 9 10
CFAF
Pre" 80000000uilding 310000
6gb-al 1138000 0 0 0 a 0 0 0 0 0
0 Nmupls I8 0000 80000 80000 80000 80000 50000 50000 800 0000 500
Sub-toteI 8000 8000 800 00000 000 80000 8000 800 000 800
Sonef Ige (1) 880000 88800 1100000 11000 1100000 110000 110011000100000oo 110000 11000Oir" oil *ateeeted (2) g10 3780 8000o 8000 3000 8 00 8000 8000 8000 8000
Ca"l Fl e -910004 7800000 000 oloo 106000 1060000 106000 1080000 1060000 1060000 1080000
18 0.315776
Note ( Vlud at PT0Olitr.eNobte (213 Incrseme,tl. Extraction rate 156 compared sigs 106 mawsl ls.
Table 3b
1 2 3 a itn~p 9 10CFAP
InvestasetFrae,s 8000000Oillding 880000
Sub-total 3350000 0 0 0 0 0 0 0 0 0
Operating Coost0£ & e upp lie 8 0000 80000 50000 800 00 0000 50000 80000 10000 800000 A N4 labour (1) 0 37500 7800 7500 7500 7800 7500 7800 7800 75000
Sub-tote I 800 680 12500 12500 125000 12800 128000 1250.0 125000 12500
Recei pts (2) 880000 67500 000 800000 8O= 00000 600000 800000 600000 800000 800000Ton* FF8 processed s0 78 100 100 100 100 100 100 100 tooLi tromei Il eatrotod 7800 11250 15000 1800 15000 18000 15000 15000 15000 18000
Cook Flow -9180000) 87500 67800 87500 67500 67500000 00M 67500 875000 675000
im ~~~~~0. 177073
With Financing
FDIIAC Contribution (3) 2010000Revl ad Cash Flow -84000 56780 67800 67800 67500 678000 67800 67500 67800 67800Reconstitution s02s0o s02s00 502500 102500 0 0 0 0 0Balmnce Reemining 4840000 65000 172500 172500 17250 67500 67500 675000 675000 67500
Note I1 nIeena abo,r for prmooasiny ot*era' FPJ remnerated at FLO perglitre processed.Noe()In.resenta 07l valued at P220/lir,for groupla'sown ..- (50t), chrg fP0/Iortes'F.
NDoe (3)0 of inveeteent Costa.
ANNEX 11Page 9 of 10
NWIC OF CO
rm ssairr Pa0Jafal
Tabl * 4a
1 2 3ilmi Str ISla l Econ;mi An-lYfsis 10PCPA'
Greet p4ireaed4 (t) 20 22 24 2a 28 so 32 S 37 40re. Gld (t) 0 20 22 2 2 26 30 32 36 37
CFAF 000Invetment
Store 1400So'1IS 200SeMk 120 12 12 12 12 132 24 24 30 30Various 100 too
Sub-total S10 12 12 12 12 232 24 24 30 30
OpereX n Ca.toperai C2) 800 264 216 1" 160 1o 1 210 222 240Trtment (3) 20 22 24 2# 26 30 32 38 37 40Guard 0o 6o so so 6o so 6o 0o so 60Wanag_awt (4) 120 120 120 120 120 120 120 120 120 120
SA-%otl S0 42 420 362 374 300 404 42S 439 460
Tot I Co"t 2220 478 412 874 SW 22 428 449 4§ 00
Senof Itosurpive realized (8) 0 n2 soo SW 0O 1040 1120 l1so 1320 1360
Cook Flow -2100 242 3" so 872 418 892 711 2&1 870
i; 0. 16293
Iot 1) Store of 40 tons capacity. Started off eith onation of 20 tons of grain from W- .Note 2 Valued at P/ke 26 of purheaea yr 1, I11 yr 2. 15 yr 3. s10 thereafter.Note Treatment eo-t AiOO@,ton atored.Note 4) Paynt fr ook-k t_Nte (5) Prodyjcer aurplus vued at differec between purchases at P40/kg and Sales at FP6/kg.
.r 1.eO
Table 4b
1 2 Io am r M 3onrc Anal4 aim 9 10
CFAF
Grain purchaae (t) 20 22 24 26 28 30 32 34 37 40rain gold (t) 0 20 22 24 26 28 30 32 34 37
CPAF 000Invoest.nt
Store 1400kaolea 200Sachs 12 12 12 12 12 132 24 24 30 30various 100 100
Sub-total 1I0 12 12 12 it 232 24 24 30 80
erting Cost.Gratin purcths (2) P.s. 66 96 1040 10 1200 16 1360 1420 60coTrest ent (3) 20 22 24 28 26 30 32 34 37 40Guard 60 so so 60 g0 60 60 60 60 so"nae t (4) 120 120 120 120 120 120 120 120 120 120
=ai5) 800 264 216 1SS 16 1tO 12 204 222 240Sub-total 800 1348 1320 1402 1496 1590 184 1776 1919 2060
Tot I Coete 2820 1358 1392 1414 180 It12 170S 1602 1949 2090
ftecip,t4 (a) 0 160O 1760 1920 2060 2240 2400 2560 2?2 2960
Cebu Floe -2310 242 368 33. $72 416 692 788 771 870
VW6 0.161760
With FinaningFDIACIIClP (7) 1400Revised Cma Flow -920 242 3"8 G0 57 416 692 788 771 670Reeati tutien 140 210 o0 880 SO0balance R-emining -920 102 1 18 222 a 692 788 771 870
NO ) Store of 40 tons acity. tarterd off with donation of 20 tena of groin from WFf.Note Grain purchasd at 40k.Ntef 3 Tr-toent eato FloGoC(n stored.Net ) Payet for bk-kep n eNote Valued at F6O/ k M f purchaa In ,I. 205 yr2. 160 yr,3 IOU yro 4-10.No"t a Gr;in sold at fT/hg.Not. ) FV4C 405 of otero. WF 305 (in rations) es -all as other investment.
D0 o SF1fTV PRooC
Ecopoaic Anal valp
Table SA. Locust Program
lnere. Incre. Net ODicount rreent worthCost. Benef Is Benefits Factor Coate Benefits
121CfAF H;11. CFAf Hill.
1 15t9.2 3416.6 1630.4 0.693 1410.225 32.B002 1305.3 0 -1305.3 0.707 1040.324 03 1285.7 3418.6 2132.9 0.712 915.4154 2434.0434 1387.3 0 -1307.3 0.634 2.3220 05 120.7 3418.6 2132.9 0.667 726.0919 1930.346
4977.262 Coats years I - 5.7425.199 ibnefits yars 1 - S.1.491617 0/C ratio.
11898.2 Total value crop preductie, 200CO00 ha.
3418.36 Crop value 3012279.04 Crop value 2011139.82 Cr. value 101
Alternative benefit strcc_ Diecounted
2 1139.S2 2279.04 3418.54 2279.04 1017.591 2088.102 3062. 74 2085.1822 1189.52 0 2279.04 2279.04 900.1974 0 1016.894 1018.3943 1139.62 2279.04 3418.56 22Y9.04 811.S382 1622.676 2434.014 1422.6764 1139.52 0 2279.04 2279.04 724.7347 0 1449.469 1449.4495 1139.82 2279.04 3410.56 2279.04 644.1076 1M.218 1938.82 1292.21S
0.02S348 B/C ratio. S years 1OS.0.994533 I/C ratio. 3 years 20S.2.147954 S/C ratio, 2 years 101, 3 years 305.1.650607 B/C rctio. 5 ycars 20S.
RLU0LIC OF CAMOON
FOOD SECumrTY PROJECT
Table 6?4 t 2rnkt ifrastructur-; Finsrcial Anma.weia,
CFAF MIt;11 ion
Investmant Coats
Structure 30.00Accsa aerviem, 4.50
Sub-total 34.80 0.00 0.00 O.OD 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs
Market op.ratione(1) 0.00 6.90 6.90 6.90 6.90 6.90 6. 90 6.90 0.90 6.90Dopreci;t.ion(2) 8.48 8.45 3.45 3.45 3.45 3.48 S 94 3.45 8.45 8.45
Sub-total 3.45 10.35 10.55 10.35 10.35 10.85 10.35 10.35 10.35 10.35
Revenue(S) 0.00 19.20 19.20 19.20 19.20 19.20 19.20 19.20 19.20 19.20
Cash Floe -37.95 6.8 0.65 8.85 8.68 *.05 0.65 8.88 0.85 6.85
IRR 0.18
With Financ;nq(4)
Lon 30.00Repayment. 0.00 0.32 8.32 8.32 6.32 *.32 0.00 0.00 0.00 0.00
Realee Cash Flow -7.95 0.53 0.53 0.63 0.58 0.53 0.05 *.05 0.65 0.65
With Financing(S)
Loan 30.00Repayments 0.00 6.04 6.04 6.04 6.04 6.04 0.04 6.04 6.04 0.00
Revi;d Caeh Flow -7.95 2.81 2.81 2.81 2.01 2.01 2.81 2.01 2.01 0.85
Note (1) 201 investment coots.N (2) Straight line ever to years.Not (3 400 a CFAf 4.000/3th.Mat1s (4) Repayment over S years. 121 interest.Nt( Reyment ever 8 ye, 121 interest.
A rch 4. 199
MAL I ETRA FIA 27
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CAMEROON ISLOMATER 29-ST ;}~ O10 2 4 6
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