world bank document...currency eouivalents (october 1992) currency unit = leone (le) le 1.00 =...

Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 11766-SL

PROJECT REDESIGN AND IMPLEMENTATION REPORT

REPUBLIC OF SIERRA LEONE

AGRICULTURE SECTOR SUPPORT PROJECT(CREDIT 1501-SL)

MARCH 31, 1993

MAIN REPORT

AGRICULTURE OPERATIONSWESTERN AFRICA DEPARTMENT

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

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CURRENCY EOUIVALENTS(October 1992)

Currency Unit = Leone (Le)Le 1.00 = USSO.0019USS 1.00 = Leones 520SDR 1.00 = USS 0.71uSS 1.00 = SDR 1.40687

WEIGHTS AND MEASURES

Metric BritishfUS

I kilogram (kg) = 2.21 poundsI metric ton( t) = 2,205 poundsI hectare (ha) = 2.47 acresI meter ( m) = 3.28 feetI kilometer (kIm) = 0.625 miles27 kilograms = I bushel

Other

I bag of paddy rice = 50 kilogramI bushel of paddy rice = 60 pounds1 "three-pence pan' 3 poundsI bushel 3 'three pence pans'I kerosene tin = 0.5 bushels

FISCAL YEAR

July I - June 30


ABBREVIATIONS AND ACRONYMS

AAGP Annual Agricultural Growth PlanACRE Adaptive Crop Research and ExtensionADB African Development BankADP Agricultural Development ProjectAl Agricultural InstructorASSP Agriculture Sector Support ProjectBSL Bank of Sierra LeoneCA Chief AgriculturistCAPI Committee on Agriculture Producer IncentivesCIF Cost, Insurance, FreightCRO Chief Regional OfficerCSO Central Statistical OfficeCTC Chief Technical CoordinatorCU Coordinating ComnitteeDAF Department of Agriculture and ForestryDAFF Department of Agriculture, Forestry and FisheriesDFDEP Departrnent of Finance, Development and Economic

PlanningDFD Development Finance DepartmentDFR Department of Feeder RoadsDG Director GeneralDOW Department of WorksEEC European Economic CommunityEIADP Eastem Integrated Agricultural Development ProjectFAO Food and Agricultural OrganizationFC Financial ControllerFD Forestry DepartmentFOB Free on BoardGOSL Govemment of Sierra LeoneGTZ Gesellschaft fur Technische Zusammenarbeit (German

Technical Cooperation)IADP Integrated Agricultural Development ProjectICPC Integrated Crop-Processing CenterIDA International Development AssociationIFAD Intemational Fund for Agricultural

DevelopmentILO International Labour OrganizationIMF Intemational Monetary FundIPAM Institute for Public Administration ManagementLAWDD Land and Water Development DivisionMAF Ministry of Agriculture and ForestryMANR Ministry of Agriculture and Natural

ResourcesMANR&F Ministry of Agriculture, Natural Resources and ForestryMESD Monitoring, Evaluation and Statistics DivisionMOW Ministry of WorksMPP Model Production VillageMTR Mid-Term ReviewNARCC National Agricultural Research Coordinating CouncilNARP National Agricultural Research PlanNDB National Development BankNEC National Extension CoordinatorNGO Non-Govenmmental OrganizationNIADP Northern Integrated Agricultural Development ProjectNPRC National Provisional Ruling CouncilNRC National Research CoordinatorNUC/CTC Njala University CoUege/Certificate Training ColegeOFAR On Farm Adaptive Research

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

ABBREVIATIONS AND ACRONYMS (contd.)

PAO Principal Agricultural OfficerPCR Project Completion ReportRIC Reconstruction Import CreditRRRS Rokupr Rice Research StationSAO Senior Agricultural OfficerSDR Special Drawing RightSLPMB Sierra Leone Produce Marketing BoardSLRA Sierra Leone Roads AuthoritySMP Seed Multiplication ProjectSMS Subject Matter SpecialistTFAP Tropical Forestry Action PlanUNDP United Nations Development ProgranUNV United Nations VolunteerUSAID United States Agency for International

DevelopmentWFP World Food Program



AGRICULTURE SECTOR SUPPORT PROJECT(CREDIT 1501-SL)

PROJECT REDESIGN AND IMPLEMENTATION REPORT

Table of Contents

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

I. MACRO ECONOMIC SETTING . ............................... 2

III. THE AGRICULTURE SECTOR .................................. 4A. Overview ....................................... 4B. Sector Strategy and Performance . ........................... 7C. Agricultural Potential .................................... 8D. Constraints to Higher Output . ............................. 9E. Donor Contribution .................................... 20F. NGOs ....................................... 21G. Bank Group Operations . ................................. 22H. Short-Term Options .................................... 23

IV. THE REVISED PROJECT .................................... 24A. Project Objectives ..................................... 24B. Summary Description .................................... 25C. Detailed Features ..................................... 26D. Project Costs and Financing ............... ................ 31E. Procurement ...................................... 33F. Disbursement ...................................... 34G. Project and Special Accounts .............. ................ 35H. Audit and Reporting .................................... 35I. Project Implementation .................................... 35J. Technical Assistance, Studies and Training ...................... 44

This report is based on the finding of a joint World Bank/IFAD reappraisl mission comprising Ms. Kirnn G. B. Singb (Mirsion Leader andEconomist), Mr. Shifenaw Demsie (Highuays Engineer), Mr. K.N. Sreekantiah (Agriculuist) and Mr. A Schiffman (IFAD consultant) tbatvisited Sierna Leone in AprilUMay 1991 and a minion by Ms. Singh in December 1991 during wich agreement was reached with theGovnment of Sierm Leone on the new project design. The Government's agreement on the Amendments to the Development CreditAgreement wa obtained by a mision comprising Ms. Singh and Mr. KG.. Awunyo (Lawyer) in )uy/August 1992. Mesr. John Joyce,Sufwnda ApSAI. Gotz Scbreiber and Surjit Sigb have reviewed the redesign of the project, Messr. Asif Faiz, Thampil Panlij and AnDBblahi the new feeder reads compont, and Mesrs. Sakwe Bunyaui. Lewis Campbell, Tek Haile-Marism, Biwroop Rambocus and ShivSinrg bve commented on other components and terms of reference. Ms. Olinda Vel reviewed te procurement arrugem and togeherwith Mr. Sunil K. Bhattacbhary and Mr. R. Gopal;rishnan offered useful sugestionw. Mr. GbOzali Raheem and Ms. Marie Laoise Ab-Keeadvied on the technical aspects of the cost tables and Ms. Azn Ahmed and Ms. Qarmel McKer assisted vith the presentation aspcs andscrera support. Te report ha been cleared by the Regional Procurement Advisor, the Environmet Depatmet nd the DisburmementsDivision. Mr. John Jyoye and Mr. Edwin Lim, respectively, are tie managing Division Cbief and Department Director repoible for thsoperation.

V. PROFITABILITY, ENVIRONMENTAL FACTORS, BENEFITS AND RISKS .... 46A. Profitability ......................................... 46B. Environmental Factors .................................. 50C. Benefits ............................................ 51D. Risks .................................. 51

VI. AGREEMENTS REACHED ................................. 52

ANNEXES

Annex A - Matrix of Policy and Institutional ActionsAnnex B - Letter of Sector PolicyAnnex C - List of Input Stores, Feeder Roads, Rural Banks and Farmers' AssociationsAnnex D - Methodology for Pricing InputsAnnex E - Crop-Processing Equipment - Capitalization Schedule and Sample

AgreementAnnex F - Implementation Timetable - AnnualAnnex G - Summary Implementation Schedule - MonthlyAnnex H - Terms of ReferenceAnnex I - Organization Chart for Project ImplementationAnnex J - Summary Cost Tables

VOLUME 1I Detailed Cost Tables

SIERRA LEONEAGRICULTURE SECTOR SUPPORT PROJECT

(CREDIT 1501-SL)

1. INTRODUCTION

1.1 Since the late 1970s, Sierra Leone has endured severe economic hardship. During the fiveyear suspension in IDA disbursements, several attempts were made to improve economicmanagement. These attempts, however, proved to be futile because of the country's inability toachieve fiscal and monetary discipline. The subsequent economic deterioration has had seriousconsequences for per capita income and levels of nutrition. Over the eleven year period 1979-89, percapita income is reported to be have declined from US$250 to US$240. In recent years, however, theeconomic environment has improved considerably. The Government of Sierra Leone (GOSL) hasdemonstrated serious commitment to maintaining a market-determined exchange rate and liberalizedtrade regime, and to fostering competition in the marketing of rice, the primary staple, and coffee andcocoa, the main export crops. With macro economic distortions greatly reduced, the policyframework is now more conducive to economic efficiency and the country is better placed to resumegrowth led by private sector investment and determined by market forces. The prospects foreconomic recovery are strong provided complementary progress is made in reducing sector distortionsand strengthening sector institutions and infrastructure. Recovery may be slowed by securityconcerns in the eastern and southern regions along the border with Liberia and the continued cautiondisplayed by the private sector in undertaking new investment.

1.2 On April 15, 1992, Sierra Leone was restored to accrual status after almost five years ofsuspension of disbursements imposed on August 15, 1987. The Agriculture Sector Support Project(ASSP), appraised in June 1983, became effective in December 1984. The amount of the Credit wasSDR 25.6 million, with SDR 20.3 million financed by IDA and SDR 5.1 million cofinanced byIFAD. 1/ The primary objectives of the ASSP were institutional reforms in the then Ministry ofAgriculture and Forestry (MAF) recently renamed the Department of Agriculture and Forestry(DAF). Besides seeking the integration into the MAF of staff and activities that had earlier beenassociated with Integrated Agricultural Development Projects (lADPs), the project provided funds forthe import of key sector inputs, investments in tree crops, swamp development and the Daru (Palm)Oil Mill, extension of the IFAD-funded Magbosi project, and additional sub-projects that were to besubsequently identified. It also initiated the development of a rural banking system, action to phaseout the fertilizer subsidy and reduce over staffing and daily wage expenditures in the MAF. 2/These objectives were at the time considered to be the most urgent. Implementation of the ASSP wasinterrupted in May 1987 by the suspension of disbursements by IDA and also by cofinancier IFAD.During ASSP's brief implementation, the Development Credit Agreement was amended once, in1986, and later that year a Mid-Term Review of the project was undertaken. 31 As disbursements

1/ IDA Credit No. 1501-SL and IFAD Loan No. 152-SL.

2/ Sierra Leone. Agriculture Sector Support Project, Staff Appraisal Report No. 4833-SLdated May 25, 1984.

3/ Amendment to the Development Credit Agreement dated June 16, 1986 sought achange for the percentage of expenditures to be financed under Category (2) Schedule1, that is, vehicles and equipment, from " 100 percent of foreign expenditures and 80percent of local expenditures" to " 100 percent."

- 2 -

to the ASSP resume, the total undisbursed balances in the project SDR 13.9 million for IDA and SDR3.6 million for IFAD. On account of retrospective disbursements by IFAD, the amount of itscofinancing would be reduced to SDR 2.1 million.

1.3 Since the ASSP was first appraised, two contrasting, but significant developments have takenplace, namely, the positive change in the macro economic environment and progressive deteriorationof sector institutions and infrastructure. Three additional factors have necessitated a reordering of thedevelopment objectives of the ASSP: a stronger Bank policy toward competitive free market pricingand full cost recovery, more formal demarcation of the roles of the private and public sectors, and ashift from the IADP approach toward focussed and simple projects which are cost-effective and whichcan be sustained. Given the serious economic management and budgetary problems experienced bySierra Leone in the past, the overriding concern now is to ensure that, within the liberalized macroeconomic environment, transparency and the efficiency of resource use govern resource allocation.

1.4 While it would take far more than the limited undisbursed balance in the ASSP to achieve fullsector recovery and high growth, the project will make a modest start by helping to address theimmediate priority needs of the sector. Through the fuller use of existing technology, increasedavailability of essential inputs and crop-processing equipment, and rehabilitation of critical feederroads, the revised ASSP would promote an enabling environment for increases in marketed output andincomes in the near term. Production and marketing decisions would be taken entirely by the privatesector and close attention would be paid to reducing economic distortions and fostering a competitiveenvironment based on market efficiency.

II. MACRO ECONOMIC SETTING

2.1 With an area of 72,000 square kilometers and a population of 4 million growing at about 2.5percent per annum, Sierra Leone is bordered on the north north-west and north-east by Guinea and onthe south-east by Liberia. The country is well endowed with mineral resources such as diamonds,bauxite and rutile, resources for marine fishing, and soils and climate favourable for food and cashcrop cultivation. The economy is highly dualistic with an enclave modem mining sector thataccounts for about 10 percent of GDP and 60-70 percent of export earnings, and the agriculturesector, predominantly traditional and employer of about 65 percent of the population, that accountsfor about 30 percent of GDP and 30 to 40 percent of export earnings.

2.2 Prolonged Economic Decline. After exactly three decades of independence, much of SierraLeone's economic potential remains untapped. Its exploitation so far, largely unplanned and poorlymanaged, has contributed to the widening of income inequalities with few economic and nutritionalbenefits for the majority of the nation's inhabitants. In 1979, compared to the nation-wide average ofUS$250 per capita, the average levels of rural per capita incomes ranged between US$100-200 andare now reported to have declined further to the absolute poverty level of US$75. Real GDP growthwhich averaged almost five percent in the first decade after independence in 1961 has been unmatchedsince. During this initial period, successful diamond mining had provided substantial foreignexchange and budgetary revenues. With the passage of the 1970s, however, as alluvial mineraldeposits became rapidly depleted and the country's only iron-ore mine at Marampa closed, economicgrowth slowed considerably. By 1978, overall mineral production had declined by more than 70percent in real terms and diamond production had fallen to one-third of the 1970 level. Populationgrowth continued to grow at over two percent per annum while real GDP averaged only one percentper year. This had dire consequences for standards of living which were already low. Meanwhile,

- 3 -

exogenous factors, too, had begun to surface in the form of weakened export prices for primaryexport commodities, the peak levels of which began to level off in 1978, and in the major oil priceshocks of the 1970s. As recession deepened in the developed economies, starting around 1973,bilateral concessionary assistance showed signs of contraction. The economy, and the governmentbudget in particular, was unable to come to grips with the decline in mineral output, exports andforeign aid. To counter shrinking per capita incomes, and reduced resource flows and budgetaryrevenues, the Governrment resorted to expansionary fiscal and monetary policies without adequatesafeguards to contain inflation. Most damaging was the lack of expenditure control in the face ofsharply declining net revenue.

2.3 From 1975 onwards, the pressure on both the budget deficit and the balance of paymentsheightened as did domestic inflationary pressure. Deficit financing on a substantial scale and heavyreliance on external borrowing at high rates of interest became the norm. The country's dependanceon suppliers' credit increased and the debt service burden assumed serious proportions. By the late1970s, the prospects for growth, particularly in the short-term, had become exceedingly slim. Thedebt service ratio which had then reached 30 percent surpassed itself subsequently touching 94.9percent (including IMF and excluding arrears) in 1987/88. Sierra Leone's creditworthiness hadbecome seriously eroded. With no comprehensive policy agenda to stem the sharp financial andeconomic decline, the economy, entangled in a highly overvalued exchange rate and economicdistortions continued to forfeit economic efficiency and growth. The government's inability tomaintain the agreed to fiscal and monetary targets led to the suspension in March 1987 of the IMFstand-by arrangement of November 1986 and, with it, the Structural Adjustment Facility which hadsupplemented the stand-by.

2.4 Stabilization. The downward spiral caused by mounting payments arrears and macroeconomic imbalances continued in varying degree of severity until about three years ago when theGovernment implemented a series of far-reaching macro economic reforms. _/ Most prominentamong these were the introduction of a market-determined exchange rate in April 1990 and externaltrade liberalization. Other important reforms included the privatization of coffee and cocoamarketing, and of the import of rice, both of which had been a monopoly of the Sierra LeoneProduce Marketing Board (SLPMB), the dismantling of price and licensing controls, progress towardclearing arrears, and greater discipline in budgetary expenditures complemented by improvedmonetary management. _/ Over the four year period 1986/87 through 1990/91, average annual realGDP growth is estimated to have grown at about 2.8 percent. This was accompanied by a more thanfive-fold devaluation of the Leone from Le 34.92 to the US dollar to Le 197.85, a decrease indomestic inflation from 220 percent to 96.1 percent, a fall in the debt service ratio (inclusive of theIMF and exclusive of arrears) from 79.5 percent to 54.1 percent, and an increase in official foreignexchange reserves from 0.1 to 0.5 as measured in the equivalent of months imports. §/7/

4/ Prior to 1989, the Government's attempts at economic reform were inadequate andlacked serious commitment.

5/ See Country Strategy Note, World Bank, March 1992.

See Macroeconomic Framework, World Bank, March 1992.

-4 -

2.5 Adjustment Continued. With good progress on the structural adjustment reforms implementedso far, Sierra Leone's prospects for renewed economic growth appear encouraging except for thecontinued threat of economic disruption along the border with Liberia and its consequent adverseimpact in the country's prime coffee and cocoa growing areas. The adjustment programme,monitored by the IMF, is being supported by quick disbursing assistance from the Bank through theReconstruction Import Credit (RIC) in the amount of US$43.4 million. This is being accompanied bya resumption of project lending by IDA and, it is envisaged, also by larger donor support. Macroeconomic projections point to a growth in real GDP of about 4.6 percent per annum between 1991/92and 1993/94, average annual increases in public and private investment of the orders of 13.3 and 19.3percent respectively, and a decline in payments arrears from US$200.8 million in 1991/92 to asurplus of US$11.9 million by 1993/94.

III. THE AGRICULTURE SECTOR

A. Overview

3.1 Soils and Climate. Sierra Leone has soils and climate conducive to sustained agriculturaloutput and higher farm incomes. Topography and precipitation vary considerably. There are fourdistinct agro-climatic zones: the coastal plains, the rain forest, the transitional rain forest, and thesavannah woodlands. Levels of precipitation decrease from an average of 5,500 mm in the FreetownPeninsula to about 2,000 mm along the northern frontier. Mean monthly temperatures range from30-40 degrees in the coastal areas to 34-36 degrees inland. About 75 percent or 5.4 million ha ofSierra Leone's geographical area is arable. Of this, spread across the country, 80 percent comprisesthe relatively less fertile uplands and 20 percent fertile swamps. In the eastern and southern parts ofthe country, the rainfall, climate and soils favour the cultivation of coffee, cocoa, rubber and oilpalm; and in the north, the long dry season and the practice of shifting cultivation are more conduciveto the cultivation of grains, legumes and vegetables. Other important crops are tobacco and sugar thecultivation of which is undertaken through smallholder and outgrower schemes.

3.2 Incentives. Until recently, the policy framework, tolerant of a highly overvalued currencyand trade protection, did little to promote economic efficiency. Efforts are now being made to rectifythis situation at the sector level. In the case of coffee and cocoa, producer prices linked to therespective FOB price have theoretically been in force for more than two years, but these have notbeen realized because of the security disruption in coffee and cocoa growing areas and the aggravationof SLPMB's financial viability already compromised by over staffing and high overhead costs. In theinitial period of adjustment, following realignment of the exchange rate, output is, however, reportedto have recovered mainly through better tree husbandry and farm practices. This notwithstanding,technical and economic efficiency in the coffee and cocoa sub-sector remains low. The same may besaid of the rice sub-sector where, historically, technical and economic inefficiency have been majorfactors in its poor performance. High protection, through quantitative import restrictions, hadsheltered the domestic rice producer from foreign competition. With no urgency, therefore, on the

7/ Between 1985 and February 1991, while the nominal effective exchange rate indexfell by 97.9 percent, the real effective exchange rate index declined by only 56.5percent. Source: IMF, Department of External Trade Relations.

- 5 -

part of farmers to improve productivity, the sector lagged well behind its potential. 8/ Tradeliberalization has, for the first time, placed domestic rice producers in competition with internationalproducers. This is clearly in the interest of economic efficiency and will call for large efficiencygains from those rice ecologies in Sierra Leone which can potentially compete on the world market.These gains will inevitably take time to materialize and will require concerted policy action andinstitutional support. In particular, sub-sector policy will need to eliminate economic distortionsarising from three sources: (i) the protection to the consumer, and the exception to tradeliberalization, from the waiver of the 10 percent import tariff on rice (lifting the waiver is a conditionof Third Tranche Release); (ii) the large rice consumer subsidy to the security forces; and (iii) anyfood aid that is not fully monetized.

3.3 Over the years, no sustainable productivity and output increases have resulted from theconsiderable protection afforded to the sub-sector by a sector policy based, not only on quantitativeimport restrictions, but on parastatal domination and input and credit subsidies. Instead, sinceindependence, the level of rice imports has progressively risen - the 1991 estimate of 150,000 tons,about 30 percent of total consumption requirements and is double the average of the years 1987through 1991. If rice imports under PL480, under refugee support programmes and under war effortassistance from bilateral governments are included, the quantity of rice imported in 1991 is reportedat 1.1 million tons. 2/10/ An exception was the year 1975 when no rice was imported. Thiswas not a sign of self-sufficiency as has sometimes been argued but, reportedly, an inaccurateassessment of rice stocks and availability in the preceding year. 11/ A sharp increase in theinternational price of rice, triggered by a world wide crop failure, and anticipation of further priceincreases, had led to the import by Sierra Leone of large quantities of rice - 45,000 tons at Le 390per ton, that is, at almost three times the 1973 price. Meanwhile, in response to higher prices,demand, as was to be expected, fell sharply. It was more the apparent surplus stock situation anddepressed demand rather than increased production or productivity which created the perception, in1975, of Sierra Leone's self-sufficiency in rice.

8/ The doubling of output which occurred between 1961 and about the mid 1970s wasdue almost entirely to area expansion and little, if any, to efficiency and yieldincrease.

9/ The economic decline has led to significant reductions in levels of real income andnutrition. Per capita consumption of rice has fallen by 25 percent to less than 100 kgper capita. This is much lower than the per capita consumption of rice inneighbouring countries where the average is around 135 kg per capita - inMadagascar, as far back as 1984, the per capita consumption of rice was 175 kg inurban areas and 142 kg in rural areas.

10/ The prospects for the food situation in 1992 are bleak given the poor harvest andSierra Leone's reduced capacity to finance imports because of foreign exchangedifficulties. It is not likely at this point that the situation will improve measurably in1993.

11/ The lack of a strong data base for rice production and stocks made it difficult forSLPMB to conduct its rice operations in a logistically sound manner.

- 6 -

3.4 Institutional Capacity. The key institution for providing agricultural support services tofarmers is the Department of Agriculture and Forestry (DAF) which, until recently, was called theDepartment of Agriculture, Forestry and Fisheries (DAFF); for many years prior to this, it wasknown as the Ministry of Agriculture, Natural Resources and Forestry (MANR&F). The nationalagricultural research and training institutes, as well as the National Research Coordinating Council(NARCC), are an integral part of the DAF. The Sierra Leone Produce Marketing Board (SLPMB),the predominant parastatal in the agriculture sector, however, is institutionally under the purview ofthe Ministry of Trade. Several core professional staff in the agriculture sector institutions aretechnically well-trained and experienced, many of them having held responsibility or having had closeassociation with either Bank-funded IADPs or other donor-funded agricultural development projects(ADPs). Over the years, the rest of the staff have benefitted in some degree from trainingprogrammes, in spite of these having been poorly funded, but do now require refresher and advancedtraining. At present, the main problem in sector institutions is weak planning capacity, poor staffmorale on account of abysmally low salaries, and a dearth of budgetary funds for items other thanwages and salaries. Lack of financial and logistical support has severely curtailed even the mostcritical field operations of extension staff and, at research and training institutes, poor laboratory andclassroom facilities have brought training programmes to a near stand-still.

3.5 Planning capacity at DAF Headquarters has remained weak, especially with regard to policyand strategy formulation. This has proved to be a major setback for strengthening the quality of basicagricultural support services, designed to assist farmers to upgrade their technology, such asextension, research, and monitoring and evaluation. In the past, DAF was also faced with uncleardemarcation of responsibility and terms of reference for senior DAF staff that led to furtherbureaucratic inefficiencies. The terms of reference for individual DAF divisions and units arebecoming increasingly outdated as its institutional role evolves toward providing greater focus onproviding basic agricultural support services and away from direct involvement in production andmarketing. With the revision in the terms of reference of DAF, instances of DAF involvement incommercial activity, more appropriate for the private sector, would have little rationale. Recentexamples of such involvement, now appropriately being dealt with, include contractual agreements bythe Forestry Department with the private sector tobacco company to plant fuel wood trees for tobaccocuring and the surveillance by the Fisheries Department of Sierra Leone's territorial waters for fishingviolations. In the case of the former, the agreement has been declared null and void, and in the caseof fishing, the Government is in the process of renegotiating a joint venture agreement with a privatecompany for professional surveillance and a new Department of Marine Fishing has been establishedto handle the management of the commercial fisheries sub-sector.

3.6 As regards SLPMB, until the recent suspension of its operations stemming from Governmentinvestigations into its management, steps had been underway to restructure and streamline theparastatal. In the past, the SLPMB had not only dominated the export of coffee and cocoa and theimport of rice but also engaged in their production and processing. Under the adjustment reforms, itsrole in price-fixing, and as the sole marketeer of coffee, cocoa and rice, had been relinquished. Theoverriding objective, if and when the suspension on SLPMB operations is lifted, is to enable it tocompete effectively with the private sector in the marketing of coffee and cocoa - its operations in ricewould be limited to the procurement of rice for the security force and for essential public health andeducation institutions. Once the private sector becomes firmly established in the internal and externalmarketing of coffee and cocoa, it is envisaged that SLPMB's role would be further narrowed andconfined to providing good inspection and quality control for Sierra Leone's agricultural exports. Inthe meantime, to strengthen its competitive stance, it would be in the interest of SLPMB to hasten thedivestiture of its food and tree crop plantations, and processing and storage capacity, rather than

- 7 -

looking to their expansion. 12/ In the case of the DAF agricultural plantations and estates, effortswould be made by it to divest these or arrange for their professional management.

3.7 Institutional reforms were the predominant objective of the original ASSP. The initialproblems encountered in the implementation of these reforms have largely been resolved. One majorproblem concerned the integration of the IADPs into the line ministry and the reported conflictsbetween staff who had been affiliated with IADPs and received better remuneration and training, andtheir colleagues who, having remained in the Ministry, had not so benefitted. Through appropriatetraining and personnel policies, these conflicts have been successfully dealt with. The DAF has alsosuffered in the past from weak demarcation of areas of responsibility and personality clashes atdecision-making levels. This problem, too, is being given priority attention in the context of thenewly designed ASSP. As regards, overall institutional reform, while some organizationalstreamlining is necessary, no major overhaul of the DAF's organizational structure is necessary at thisjuncture. In fact the streamlining would help to consolidate the reforms that were initiated under theoriginal ASSP.

3.8 Infrastructure. Since feeder roads were built in Sierra Leone, lack of funding for maintenancehas been a serious problem. The Ministry of Works (MOW), recently renamed the Department ofWorks (DOW), constrained by budgetary resources, has been unable to provide the necessarymaintenance funds not only when the roads were first built but well before GOSL's financial situationassumed the serious proportions that it did. As has been the case with the civil service at large, poorfunding has weakened performance of the sizeable staff in the DOW most of whom are poorlyremunerated and motivated. As of the beginning of this year, the responsibility for roads, includingfeeder roads, has been transferred from the DOW to the Sierra Leone Roads Authority (SLRA) -feeder roads would be the responsibility of the Department of Feeder Roads within the SLRA.Meanwhile, the private sector's capacity for road rehabilitation is inadequate, although somecapability exists with it for carrying out feasibility studies and engineering design. There has beenlittle tradition and precedent in Sierra Leone for the upkeep of the road network. Almost all of the1,900 mile feeder road network was constructed during the 1970s with substantial donor funding.Geographically, 75 percent of the feeder road network was concentrated in the southern and easternregions of the country with the primary aim of enabling the evacuation of coffee and cocoa theproduction of which was then aggressively being pursued. Construction of the feeder road networkwas not as well-planned as it might have been since the location of the feeder roads was a part of thedesign of larger multi-purpose and complex agricultural development projects. Nevertheless, thedevelopment of crop extraction roads/tracks did much to open up agriculturally productive areas andspread awareness of the advantages to farmers of improved technology. This is no longer the case.The dilapidated state of the network has isolated many areas of rich agricultural potential and hasbecome a serious setback to increases in marketed output.

B. Sector Strategy and Performance

3.9 The Government's sector objectives, as stated in the First National Development Plan,1974/75-78/79, and reiterated in the draft National Development Plan of 1983/84-85/86 and the threeyear Green Revolution Plan, remain in full force. These objectives are: (i) higher agricultural

12/ The SLPMB, prior to the on-going investigation of its activities, had prepared aUS$25 million Agricultural Development Plan for which it had actively sought donorfunding.

- 8 -

productivity; (ii) self-sufficiency in staples and other products; (iii) diversified production; (iv)increased incomes and standards of living; (v) maximization of foreign exchange through exportpromotion and import substitution; (vi) increased rural employment; and (vii) improved nutrition andsoil fertility. 11/ Over the years, for the most part, the sector has performed at well below itspotential. In the first half of the 1970s, agricultural growth averaged about 1.1 percent per year inreal terms; this was followed in the second half by about by 2.2 percent per year on average. It isestimated that during the 1980s, agricultural production declined by 3.7 percent per year. Thisprogressive decline has had serious consequences for rural per capita incomes which, even in 1979,were far below the national average. As much as 65 percent of the rural population (or about 49percent of the total population) is reported, at that time, to have existed below the absolute povertylevel of US$75. Since then, levels of real income and nutrition have fallen sharply. The index ofinflation-adjusted average farm incomes, with 1973/74 as base year, had dropped to 85 by 1985/86,20 percent lower than 103 in 1963/64. In 1987, Sierra Leone ranked 29 in the index of humansuffering, a statistical measurement of differences in living conditions between countries - with anindex of 76, the country was classified in the "extreme human suffering" group of countries. 14/

3.10 Agricultural performance, disappointing as it turned out, had done little to further theobjectives in the sector. The futility of pursuing the Plan objectives within a distorted macro andsector framework, circumscribed by a grossly overvalued exchange rate, was not recognized untilrecently. The result of the distorted agricultural trade and price policy was a moving away from,rather than closer to, each of the Government's objectives. Thus, firs, agricultural productivityremains at more or less subsistence levels; second, in spite of considerable trade and price protection,rice imports have increased more than six fold from Le 496.3 million in 1986 to over Le 3,000million by the start of the new decade of the nineties, leaving the self-sufficiency objective un-attainedand aggravating the already serious malnutrition; third, even with some extent of built-in cropdiversification and food security in the subsistence farming systems that currently prevail,diversification has not developed to the degree where substitution in production and consumption can,with relative ease, respond to market signals; and finally, in terms of the sector's contribution toforeign exchange earnings, the export of coffee and cocoa declined by 40 percent and 5 percent,respectively, between 1979/80 and 1980/81. Subsequently, SLPMB's average procurement for 1983-86, totalling 5,912 tons of coffee and 9,381 tons of cocoa, is estimated for the first nine months ofthe financial year 1990/91 to have fallen to 3,600 tons and 5,500 tons, respectively - for cocoa, thisexport figure points to a drastic decline (in fact, a halving), from a peak of 11,364 tons in 1984.

C. Agricultural Potential

3.11 With its rich agricultural resource base, Sierra Leone has good potential for providingsustained increases in employment, rural incomes and food to a rapidly growing population and strongsupport to foreign exchange earnings. However, after two decades of external assistance, Sierra

13/ At the time, the IADPs were considered by the authorities as the primary vehicle forachieving the objectives. This view was supported by the Bank and the donorcommunity at large.

14/ The International Human Suffering Index, published in 1987 by a United States-basedNGO. Heading the world listing was Mozamnbique with an index of 95 - comparableindices for selected West African countries were: Ghana 87, Nigeria 80 and Liberia71. For Cote d'lvoire and Guinea the indices were 73 and 82, respectively.

- 9 -

Leone's agriculture is characterized by low yields and productivity. Farming is primarily rain-fedwith little use of fertilizer. 15/ Losses before and after harvest are significant and can exceed 35percent. About 40 percent of agricultural production is marketed which from all indications isreported now to have been further reduced. Approximately 40 percent of the rural economy ismonetized, that too, primarily on account of the export crop sub-sector that is concentrated in thesouthern and eastern parts of the country. Rice, the primary and preferred staple, is central to SierraLeone's economy and integral to the economic and social order within the rural economy. The ricesub-sector is highly sensitive to movements in the exchange rate and has strong balance of paymentsimplications. Generally accepted as a medium of exchange, rice drives the barter economy and isoften used to procure coffee and cocoa, hire labour, and purchase farm inputs and wage goods.Technical packages for substantially higher yields are available for rice and other food and cash cropsbut few subsistence farmers are able to adopt these and sustain their use because of their poor cashflow and an agricultural extension service that needs to be revived.

3.12 So far, a mere one-fifth of close to 2 million hectares favourable for rice, and less than 50percent of the area suitable for coffee and cocoa, has been cultivated. Yet to be exploited, by riceecology, is 65 percent of upland rice, 85 percent of inland valley swamps (IVS), over 90 percent ofriverain grasslands, over 95 percent of mangrove swamps, and about 97 percent of the bolilands.While yields vary by ecological zone, and within each zone, the average yield per hectare undersubsistence cultivation on upland farms is about 700 kg compared to over 1100 kg which could beattained with available improved technical packages, and on the swamps 1500 kg compared to about2100 kg. Cassava, a substitute for rice, is a good 'insurance' crop that can be stored in the ground,unharvested, for at least two years; its yield under improved technology can increase more than three-fold from the average traditional yield of three tons per hectare. In the case of sweet potato, fastgaining in popularity, a three-fold increase in yield over the average traditional yield of two tons perhectare is attainable under recommended farm practices. The yield of groundnut, also a ricesubstitute (though to a lesser extent than cassava), can increase at least three-fold from an averagetraditional yield of about 400 kg per hectare (shelled) and, for cow pea, as much as ten-fold from itstraditional average of 100 kg per hectare. In the case of tree crops, the average traditional yield forcoffee of about 200 kg per hectare can be more than doubled to about 500 kg, and for cocoa, thetraditional yield of about 200 kg per hectare can increase almost four-fold to as much as 1000 kg.The area under (naturally-growing) mangrove palm, the oil of which is preferred for cooking ethnicfood, is not known, but there is general recognition that its yield and quality are rapidly deteriorating,and that there is a need, therefore, for cultivated oil palm. The present yield of about two tons freshfruit bunch (FFB) for cultivated oil palm can, with improved practices, be increased to almost fourtons per hectare. Tapping this agronomic potential through the use of improved seed and adoption ofbetter farm practices can double the output of rice, coffee and cocoa.

D. Constraints to Higher Output

3.13 Prior to the adjustment reforms, weak agricultural performance was attributed mainly to theovervalued exchange rate, distortions in macro economic and sector policy and weak planning andimplementation capacity. While macro economic management has improved considerably in recentyears, planning and implementation capacity continue to be weak overall and at the sector levels.

15/ Under donor-funded projects, however, cultivation is based on high input/high outputtechnology requiring high management intensity, heavy operational costs and inputand credit subsidies.

- 10 -

Years of progressive economic decline have culminated in a vehement surfacing of the agriculturesector's incentive, institutional and infrastructure constraints as strong impediments to an early andsustainable supply response. To indicate areas in urgent need of funding which can offer the besthope for short term impact, which can also serve as a basis for further building and consolidation,and which can be assisted through the remaining funds in the ASSP, briefly assessed below are theconstraints to the realization of Sierra Leone's considerable agricultural potential. Given their macroeconomic implications, where appropriate, coffee, cocoa and rice will be singled out for discussion.

3.14 Both price and non-price factors mitigate against the substantial increases in marketedproduction attainable in the short-run. Intensive and extensive cultivation are both possible but eachat high cost relative to financial returns at current input/output coefficients. The cost of productionassociated with improved technology is beyond the means of the subsistence farm household. 16/At the farm level, the unremunerative farm-gate price of rice, inadequate and irregular extensionadvice and weak links with research, the scarcity and high cost of labour, insecurity of tenure, and atechnological base rendered increasingly outdated by the labour shortage, are strong impediments tocrop development, especially in the swamps. 17/18/ Ex-farm gate, the main disincentives tothe uptake of improved technology are difficult access to credit, high rates of interest (which haverecently become positive), shortages of essential inputs and agro-processing facilities, and a collapsedrural road network. Of these constraints, singled out for discussion are: (i) the price incentive; (ii)technology transfer and weak links with research; (iii) farm inputs and agro-processing facilities; and(iv) feeder roads. All of these constraints, in contrast with the other more long term issues which areoutside the purview of the ASSP, lend themselves to some solution for easing the production,marketing and nutrition constraints in the short-term.

(i) Price Incentive

3.15 Weak producer prices have constituted a major obstacle to increases in the output of coffee,cocoa and rice. 19/ Until the adjustment reform process was initiated, the SLPMB wasresponsible for setting prices for coffee and cocoa, and influencing the price of rice. For coffee and

16/ This can average seven members: the farmer, one or more wives, children and someclose relatives. In spite of the size, essential operations on the upland and swampfarm are tedious enough to fully occupy the family labour for the greater part of theyear for both food and cash crop cultivation.

17/ Except in Freetown and surrounding areas, land is held by tribal communities andChiefdoms and is granted by the Paramount Chief to village farmers under usufruct.

.1/ In inland valley swamps, there is the added problem posed by the threat of bilharziawhich has proved to be a real health hazard.

12/ According to the Bank's Mid-Term Review, dated January 1987, "the primaryconstraint to increased (rice) production has been low producer prices." SierraLeone's experience in coffee, cocoa and rice has confirmed the finding elsewhere thatwhile any cost reductions from input and credit subsidies were considered by thefarmer to be important, it was the price incentive (farmgate price) that turned out tobe the stronger determinant for higher production.

- 11 -

cocoa, the parastatal had established producer prices at about 30 percent below border bench marks;and for rice, long relied upon to achieve food self-sufficiency, the SLPMB had indirectly influencedthe retail price through manipulating rice imports and setting the wholesale price. Price determinationfor each of the crops was based upon the inefficient cost-plus pricing approach. In each instance, itappeared that a comfortable margin for the SLPMB was of foremost consideration and it is this whichappeared to have taken precedence over the need to provide an adequate and remunerative producerprice to the farmer. While, all three crops enjoyed protection through credit and input subsidies,rice, in addition, received trade protection through quantitative import restrictions, and coffee andcocoa were penalized by a grossly overvalued exchange rate. Coffee and cocoa were furtherdiscriminated against through an export tax of 35-40 percent for coffee and 35 percent for cocoa.The distorted agricultural policy was ultimately to take its toll on production, the balance ofpayments, the exchequer, and overall economic growth.

3.16 Both the wholesale and retail price of rice are now market determined. However, the marketitself, imperfect and encouraging of high trading margins, is such that consumer welfare is becomingincreasingly compromised and the welfare of the producer almost totally ignored. At appraisal inMay 1991, while the farmgate price of rice averaged about 33 percent of the import parity price, theretail price of imported rice was at least five times higher at Le 4,500 per bag and that ofdomestically produced rice, which enjoys a premium due to taste preference and quality, seven timeshigher at Le 6,500 per bag. In December 1991, the retail price had more than doubled to over Le10,000 but the farmgate price had remained unchanged. Some price increase was inevitable due tothe adjustment reforms, but with trade liberalization and a world market price much lowered due totechnological progress in yields, retail price increases of these orders appear excessive. 2Q/ D1/

The high margins could be justified, in some part, by the poor state of roads, rising cost of fuel andspare parts, and the entrepreneurial risk involved in doing business in an economic environment thatis yet to stabilize. However, these high margins are also the result of oligopolistic pricing given thata handful of private traders dominates rice import. Unlike past policy regimes which endorsedconsumer subsidies there is now no direct consumer subsidy on rice. Yet, economic distortionspresently do exist through the protection afforded to the consumer by the waiver of the 10 percentimport tariff on rice as well as the substantial direct consumer subsidy on rice for the security force;the cost of this latter subsidy to the government budget amounted to Le 100 million for 25,655 bagsprocured in April 1991 alone and the burden is estimated to have risen significantly since.

3.17 Policy distortions within the rice sub-sector have become aggravated with the institution of theGovernment's Public Emergency Measures, 1992. While these measures have not been directlyresorted to, they have had an indirect influence at containing the retail price of rice to Le 8200 per

20/ A temporary price increase, forecast in the Bank's commodity price forecasts of July29, 1991 compared to those of March 13, 1991, was attributed to strong demandresulting from the Middle East war and also from Eastern Europe. The latest priceforecasts dated February 10, 1993 project a negligible short-lived recovery in 1994and a significant decline, in real terms, through 2005.

21/ Until a realignment of the exchange rate, the retail price was also influenced upwardby the artificial shortage of rice created in Sierra Leone from the considerable illegalcross-border trade with Guinea.

- 12 -

bag. 22/ In addition to providing protection to the consumer, these measures have dampenedincentives to rice importers and traders by limiting their trading margin to Le 400 per bag. Theimpact on the farmgate price of rice has been adverse and the situation with respect to producerincentives in the face of expanding demand from a rapidly growing population has become serious.

3.18 In the short-term, given the scarcity of foreign exchange (exacerbated by the loss in exportearnings from coffee and cocoa due to economic disruption in tree crop growing regions borderingLiberia), there is a limit to the amount of rice consumption requirements which can be met throughimports, even with current levels of per capita consumption on the low side. 23/ 24/ There isalso a limit to the amount of food aid which can be expected beyond that necessitated by emergencycircumstances. There are, thus, within the time-frame of the short-run, few viable options other thanto encourage marketed output from domestic production by encouraging fuller use of existingimproved technology. In recent years, the farm-gate price of paddy has averaged less than 50 percentof the retail price and only about 33 percent of the border equivalent. 25/ With the institution bythe new regime of various food control measures, the producer price incentive remainsunremunerative and insufficient to enable the smaliholder to produce meaningful surpluses for themarket. The cost of land preparation and cultivation is substantial especially in the swamp riceecologies where considerable untapped potential is known to exist and in some of which Sierra Leonecould develop strong comparative advantage. Furthermore, with devaluation and high trading

22/ The NPRC Government has instituted a number of 'food control' measures throughDecrees 9 and 10 of its Public Emergency Regulations which sanction power tosuspend market forces in the requisition, distribution, storage, transport and pricing offood items.

231/ The decline in agricultural production in the coffee and cocoa growing areas borderingLiberia has been steep, although the extent of decline is difficult to ascertain. Officialestimates, placing the fall in cocoa and coffee export volume in 1991/92 at over 65percent and 35 percent, respectively, appear to be optimistic; rice production isestimated to have fallen by more than 40 percent. The decline in real terms in theinternational price of coffee and cocoa, experienced during the 1980s, has continuedthrough 1992 and has further aggravated the adverse impact on coffee and cocoaexport earnings.

24/ The food situation is reported to have deteriorated in 1992 because of below normalplantings of cereal crops on account of the civil strife and shortages of seed andfarming implements. Estimates of the numbers of persons internally displacedbecause of civil strife are placed at 257,000 and an additional 255,000 are reported tohave sought refuge in Liberia and Guinea. The index of 1992 import requirements asa percent of normal requirements is projected at 160 compared to 86 in 1991 and the1992 food aid requirements as a percent of normal requirements is projected to be ashigh as 850. See FAO Special Report on the Food Supply Situation and CropProspects in Sub-Saharan Africa, No. 4, December 1992.

25/ Prior to the suspension of disbursements, the Bank had recommended substantialincreases in the farmgate price of rice. This was at a time when input and creditsubsidies were still in force, the exchange rate grossly overvalued and theinfrastructure constraint less severe.

- 13 -

margins, the prices for imported inputs have escalated sharply and are beyond the financial reach ofthe subsistence farmer. The dismantling of producer price support, and input and credit subsidies,typical of the earlier policy regimes, and to which rice output had been responsive, albeit throughacreage rather than yield increases, has resulted in a serious squeeze on the farmer's cash flow andperpetuated his inability to undertake necessary farm investments. 26/ Beyond the short-term, thissituation is expected to improve as entry by the private sector in the procurement and marketing ofessential farm inputs increases and a competitive environment emerges. However, for increasedprivate sector investment in agricultural production and marketing, two preconditions, besideseconomic stability, are necessary: (i) sound investment proposals with high economic justification and(ii) a fully functioning and effective commercial banking network willing to finance such agriculturalinvestments.

3.19 The producer prices for food crops other than rice are also purported to be market determinedand in the case of cash crops, the situation varies. For offee and cocoa, under the adjustment reformprogramme, the SLPMB had agreed to ensure that the producer price for each crop would not fallbelow the level of 60 percent of the FOB price. 27/ However, the SLPMB has found it difficultto fulfill this requirement. Even though its monopoly in the internal marketing and export of bothcrops has been relinquished, because of its high overhead costs, the SLPMB has found it increasinglydifficult to withstand the stiff price competition from private buying agents. In the case of tobacco,the producer price is arrived at through bargaining by the tobacco company with its contract farmers.In practice, however, the tobacco company is in a strong position to exercise monopsonistic powerand does eventually exercise this prerogative. An important crop for subsistence producers, and thesecond largest single source of excise revenue, tobacco had till very recently received heavy tradeprotection through an import ban on cigarettes. 28/ Production, carried out by contract farmers,remains highly input and management intensive, and input subsidies feature prominently. In addition,the costs of storage and the transport and handling of inputs, especially fertilizer, are not recoveredfrom farmers. With the import ban on cigarettes (now lifted), there had been little incentive toimprove technical efficiency, and policy distortions due to production subsidies had compromised, andcontinue to compromise, economic efficiency. High cost producers, with production costssubstantially larger than those faced by other African producers, had been sheltered through trade anddomestic protection, and yields and quality remained low, especially the quality of flue-cured tobacco.To retain farmers, the tobacco company had to pay prices for tobacco leaf higher than the cost ofproduction, and much higher than levels that could be justified by the productivity of labour. In fact,in recent years, when the average cost of leaf per kilogramme harvested was US$1.80, the price paidto the farmer by the tobacco company was US$1.45; the comparable cost in other African countriessuch as Kenya and Ghana was about US$1 per kilogramme. Besides the economic cost of the tradeban, which has so far not been assessed, there are two additional costs (less amenable to

26/ In 1973/74, soon after initiation of the IADPs, subsidies on rice and petroleum hadaccounted for 10 percent of recurrent expenditures and had absorbed more than one-third of the revenue increase. Fertilizer and chemicals, and sprayers for tree crops,were subsidized at 50 percent and 100 percent, respectively.

27/ Producer prices for coffee and cocoa announced by the SLPMB have recentlyaveraged only about 30 percent of the FOB price.

2/ The ban on the import on cigarettes is reported to have been lifted with effect fromDecember 1991 and has been replaced by an import tariff.

- 14 -

measurement) which may also be attributed to past tobacco trade policy. One is the environmentalcost from the excessive and indiscriminate use of fuel wood for tobacco curing - on average, two tothree kilogrammes of fuel wood are used to produce one kilogramme of flue-cured tobacco, and asmuch as 100 kilogrammes to produce one kilogramme of fire-cured tobacco. The other seriouseconomic cost is, the now generally accepted, though not scientifically proven, toll on human healthfrom the consumption of tobacco. 22/

(ii) Technology Transfer

3.18 Technology transfer that had emerged as one of the few and more valuable legacies of theIADP era has, with the rapid decline of sector institutions, been rendered progressively ineffective.The gains anticipated from the transfer of technology in the form of higher yields and output have,therefore, not obtained. The result of two decades of experience with donor-funded projects in SierraLeone is that a large number of farmers have been made aware, either through actual use or trainingand demonstration, that improved technical packages can lead to substantial yield increases.However, farmers have been wary of sustained adoption not only because of the unremunerativefarm-gate price and difficult access to inputs and markets, but also because of the greatly reducedcapability of the extension service to provide advice on the use of these inputs, on good post harvestpractices and on market signals and information that could strengthen decision-making by farmers. Infact, many smallholder farmers, once active participants in IADPs, are reported to have reverted totraditional practices. It is now increasingly recognized by well established international researchinstitutes that to realize and sustain the full benefits of the agricultural research effort, an effectiveagricultural extension service is indispensable. 30/ The immediate institutional priority in SierraLeone is to restore the capacity of sector institutions to provide basic agricultural services,specifically, the effective transfer of yield-enhancing technology to farmers, the monitoring andevaluation of the results of such technology transfer, and the provision of regular and timely feedbackfrom the farmers to the agricultural research institutes for the further development of improvedtechnology.

3.19 The cumulative negative impact of the deteriorated extension service has been seriously andmost obviously felt in the inability of the DAF to implement its well-prepared unified extensionprogramme as well as its programme for on-farm demonstrations and trials. 31/ It is also evidentin the DAF's work programmes in areas other than crops. That livestock extension has suffered isreflected in the poor health and high mortality of livestock due to non-availability of drugs andvaccines, the weak management and feeding of animals, inadequate integration with crop farming, and

29/ Meanwhile, the prospects for cultivating pepper in tobacco growing areas, andprocessing it for export, are extremely good. Disseminating extension advice on thecultivation and processing of pepper would be an important role for the agriculturalextension service of the DAF.

30/ CGIAR Seminar on Rice organized by the World Bank in Washington D.C. inOctober 1991.

31/ Detailed programmes are provided in the National Agricultural Extension and TreeCrops Programmes under the Agricultural Sector Support Project. 1987-89 preparedby the Office of the Director-General, Ministry of Agriculture, Natural Resources andForestry.

- 15 -

in the inability of the Teko Livestock Training Center to make progress with its training programme.32/ For many decades now, the forestry department, through lack of funding, has been unable toeffectively manage the forest resource and promote its conservation. In 1987, the Bank's EnergyAssessment mission concluded that "high forests which once covered most of Sierra Leone had beenreduced to four percent of the land area through shifting cultivation, commercial logging and cuttingfor fuel wood." 22/ The environmental damage has been compounded by the rampant andunchecked use of the fuel wood resource for cooking, and for tobacco and fish curing. With littledeliberate reforestation to show in return, secondary growth has replaced much of the high forest.Some reforestation is being encouraged by donor funded projects identified in the Tropical ForestryAction Plan (TFAP), the implementation of which will require a strong Forestry Division. 34/The TFAP itself will need to be prioritized and followed-up with a more intensified and expandedeffort at arresting environmental degradation and promoting natural resource conservation. Asregards the Land and Water Development Division, important work on land capability assessment andland-use planning, in spite of staff having been trained to carry out soil surveys, topographicalstudies, and survey design and engineering, continues to suffer from lack of funding. Strengtheningthe LAWDD is indispensable to the judicious development and consolidation of swamps and to themuch needed multi-disciplinary approach to swamp development. In the case of fisheries, eventhough artisanal fishing along the coast has been constrained by a lack of equipment, spare parts andfuel, it has had greater success than has inland fishing. The main reason is that even thoughimproved technology for fish farming, particularly in inland valley and mangrove swamps, has beendemonstrated, further investigation is required before it can be widely disseminated. Besidesextension per se, DAF Divisions which provide support to agricultural extension have also beengreatly weakened by the scarcity of funds. Foremost among these, the Planning, Evaluation andMonitoring Services Division (PMESD), now called the Monitoring, Evaluation and StatisticsDivision (MESD), has been unable to adequately monitor and evaluate the rate of adoption ofimproved technology by farmers and, more importantly, the impact of such adoption on agriculturalproductivity and output. It has also been constrained from carrying out other basic farm budget andhousehold surveys including an Agricultural Census. The Communications Division, also, has beenunable to maintain its programme of preparing printed and audio visual extension messages designedto educate farmers in the use of improved technology and better farm husbandry.

3.20 The other and urgently sought side of technology transfer, namely, the effective and timelyfeedback from farmers through extension officers back to research, has also been weak and has heldback progress in developing and disseminating improved technology of a sort that is directly relevantto farmers needs. This is because agricultural research, due to insufficient funds, has been unable toadequately address common constraints faced by farmers in the adoption of modem technical

32/ This training center was established at Teko in 1904 in the Northern Province. Itoffers a two year course for the training of Livestock Inspectors for the LivestockDivision of the MANR&F.

33/ Sierra Leone: Issues and Options in the Energy Sector, Report of the JointUNDP/World Bank Energy Assessment Programme, October 1987, Report No. 6597-SL.

34/ Sierra Leone: TroDical Forestry Action Plan Inter-Agency Forestry Sector Review,Mission Report, UNDP/FAO, Rome 1990.

- 16 -

packages. While some of the constraints are technical in nature and relate to the design andconstruction of irrigation systems and the presence of iron-toxicity and salinity in soils, others aresocio-economic in nature and are also health-related. The fact that most modern crop packages aredemanding of labour, of serious consequence to their increased uptake and sustained adoption is theobstacle imposed by the acute shortage of farm labour and its escalating cost. Thus, while the socio-economic aspects of technology adoption, especially on farmer profitability, are becoming more andmore serious, adaptive research has been unable to deal effectively with these in the improvedtechnology that it has developed. The existing improved packages, thus, remain largely unmodifiedwith respect to these various constraints and new ones to deal with them have so far not beendeveloped. 35/ This is urgently required. Regular and effective communication with farmers, andfeedback from them to the agricultural research scientists, through the extension service, appears tobe indispensable for identifying specific priority areas for research that can lead to sustained higheryields and output, especially for rice.

3.21 The National Agricultural Research Plan (NARP), developed with GOSL and ASSP funding,has an elaborate agenda for the conduct of research in many relevant areas. 361 This agenda,however, needs to be prioritized and developed in a manner that ensures that the research developedis demand-driven and directly relevant to farmers' needs. As indicated above, the agenda also needsto incorporate research into socio-economic factors that influence, and are fundamental to, the uptakeof improved technology. The challenge is to prevent the present institutional oversight of problemsfaced by farmers in moving from a low input/output technology to an improved one and to ensuretheir active participation in the development of the technology. This can be best be done throughstrong research-extension linkages. To coordinate the effort of the agricultural research institutes andfoster linkages with extension, the National Agricultural Research Coordinating Council (NARCC),established under the original ASSP, as well as the Office of the National Extension Coordinator needto be strengthened. Recently, the NARCC was included as a line item in the budget and basic staffrecruitment is reported to have been completed. The immediate challenge for NARCC is tostrengthen institutional coordination with the DAF and with the research institutes. This would callfor the setting-up of, on farmers' fields, an effective mechanism for joint meetings (according tospecific ecologically appropriate crop calendars) between research scientists, subject matter specialistsand farmers. Such On-Farm Adaptive Research (OFAR) is considered invaluable in obtainingfeedback from farmers on the use of the technology disseminated and in furthering the effectivenessand relevance of the national research effort.

35/ Sierra Leone's experience with carrying out agricultural research, especially in rice,dates back to more than 60 years. Supported by external assistance, high-yieldingvarieties and improved practices have been developed and tested for the main foodcrops in almost all agro-climatic zones: for rice, by the Rokupr Rice Research Station(RRRS) and West Africa Rice Development Association (WARDA) and, for maize,roots and legumes by the Njala Agricultural Research Station.

36/ op cit., National Agricultural Research Plan (NARP) of Sierra Leone, February 1987.

- 17 -

(iii) Input Supply and Post-Harvest Technology

3.22 For several years now, Sierra Leone has experienced a severe shortage of essential farminputs, especially fertilizer and veterinary supplies. Needless to say, these are essential to the successof any effort to upgrade technology for increasing crop yields and arresting livestock mortality.Difficult access to these inputs is best illustrated by the highly erratic availability of fertilizer since themid-1980s due to Sierra Leone's foreign exchange difficulties. Following the depletion by 1984 ofthe 1980/81 stock of 8,000 metric tons, 10,455 tons were imported in 1985 and a further 2,800 tonsin 1987. More recently, in 1989, 450 tons were imported, and in 1990, 2,400 tons half of which wasdonated. The use of modern farm inputs as prescribed by modern technical packages is, thus,severely inhibited by the lack of availability of inputs at the time and place required, the cost of theseinputs when available, and the absence of a reliable private sector distribution mechanism, especiallyin remote rural areas. The latter may be attributed to the unsettled investment climate whichcontinues to persist and due to which the private sector has chosen to act with extreme caution.

3.23 The demand for modern farm inputs, especially fertilizer, has been tempered by exchange ratedevaluation, attempts to reduce subsidies, and high transport and distribution costs, on the one hand,and the low farm-gate price of rice, on the other. 371/ These factors have significantly discouragedthe use of inputs integral to yield-enhancing technology. In the case of fertilizer, between 1971 and1981, the price ratio between 20:20:0 fertilizer and paddy was highly discouraging of the use offertilizer; in 1970, the price of fertilizer amounted to 60 percent of the price of rice, and in 1981, itwas 120 percent higher. 38/ Some past studies have demonstrated the sensitivity of fertilizer usewith respect to price. To illustrate, when the price of 20:20:0 was raised in 1976/77 from Le 1.50per bag to Le 3.00, and for 15:15:15 from Le 3.00 to Le 6.00, fertilizer usage fell proportionatelyfrom 5,100 metric tons to 2,511 metric tons. This contrasts sharply with fertilizer use when, in thepreceding three years, the price remained constant in nominal terms and its use, promoted by highsubsidies, increased by almost 24 percent in 1974/75 and 52 percent in 1975/76. However, fertilizeruse, subsidy notwithstanding, also fell on other occasions of fertilizer price increase, as was the casein 1972, 1976 and 1979 - the fertilizer subsidy is currently above 70 percent of import parity. In thecase of coffee and cocoa, in spite of recently improved incentives (and prior to the borderdisturbances in coffee and cocoa growing areas), the demand for fertilizer and modem farm inputsremains weak. The main sources of demand for fertilizer have been, and continue to be, theMagbasse Sugar Complex, Rokel Leaf Tobacco Company and various ADPs. Fertilizer is also usedin small degree by wealthier and more progressive rice farmers and by the Seed Multiplication Unitfor use by its contract-growers.

3.24 While the production of marketed surplus is inhibited by inadequate price and non-priceincentives, the output that is harvested/recovered is reduced by high post-harvest losses. These lossesare considerable and can approach 35 percent. Improper storage at the farm level, and insufficientfacilities for storage and processing at the village level, are among the main causes for thesesignificant post-harvest losses. Since 1984, the DAF, assisted by UNDP/FAO, has implemented twophases of a project for post-harvest practices to provide facilities for and training in post-harvest

371/ The Government had agreed to eliminate the subsidy initially by January 1, 1985 andsubsequently by the 1989 cropping season. However, currency devaluation isreported to have preempted the achievement of this goal.

38/ Source: UNDP/FAO Study on Fertilizer Marketing System. Sierra Leone, dated 1982.

- 18 -

technology at the farm level. Farmers have, in the process, become well aware of the considerablereduction in crop losses that are possible through good post-harvest practices, especially for rice,cassava, corn meal, oil palm etc. In the case of rice, it has been demonstrated that the use of dryingfloors, parboiling tanks, mechanical threshers, and mobile and stationary mills can reduce post-harvestlosses from 25 percent to 10 percent. Other post-harvest related projects assisted by UNDP/FAOhave aimed at strengthening crop-protection services, improving agro-meteorology, etc. A morerecent proposal is a third phase project, prepared by the FAO, which proposes the establishment ofintegrated rural processing centers at the village level. Through greater efficiency in crop storage andprocessing, the primary aim of the project is to enlarge the availability of food for own consumptionand seed for the next season and enable a stock of harvest to be sold in the off-season when somepressure on the price invariably exists. Besides the reduction in losses of harvested output, animportant indirect result of wider dissemination of post-harvest technology is the on-farm labourrequirement that could be reduced and diverted to tasks, on-farm and off-farm, that are moreremunerative and productive for the farm family.

3.25 The translation of farmers' awareness and knowledge of improved crop and post-harvesttechnology into better yields, higher output and sustained growth is constrained by poorcreditworthiness, lack of purchasing power and difficult access to crdt especially seasonal credit.This is also a problem for traders, many of them frequently women, who require working capital forpackaging produce, renting transport and purchasing fuel and a particular problem when it comes tomarketing perishables such as vegetables and fish. It is because of these difficulties that credit fromthe informal sector, in spite of exhorbitant interest rates (frequently approximating 100 percent), andbarter exchange which is deeply ingrained in the rural economy, are resorted to. Cash shortages andproblems of dealing and storing large amounts of small denominations of currency notes coupled withthe lack of collateral, the financial risk inherent in farming, especially subsistence farming, and thefact that farm incomes are limited by the relatively small size of the marketable surplus are aspects ofrural financial sector that exert a strong restraint on the modernization of the agricultural economy.Unless rural financial intermediation is strengthened, the move out of subsistence agriculture to betteryields and incomes will be a long and tedious task.

3.26 With improved producer prices and better feeder roads, the demand for modem farm inputsand farm machinery and implements is expected to increase as is the demand for most types of creditfor agricultural investment. In response to better economic prospects engendered by the adjustmentreforms, the demand for credit by small farmers, especially farmers groups and associations, hasalready resumed. The Bank of Sierra Leone (BSL), with funding provided by the original ASSP,initiated the establishment of a rural banking system to provide loans for agricultural production andfishing. 22/ Through supplementing capital share subscription and providing training, BSL has,through its Development Finance Department (DFD), assumed a development and supervisory role inthe rural financial sector. Since 1985, eight rural banks have been formed by village inhabitants ledby promoters who are typically well-to-do individuals and politicians. There are plans to increase thenumber of rural banks to 10. Loans, primarily seasonal loans, are extended at below market rates ofinterest which, about a year ago, were around 70 percent in nominal terms and minus 50 percent inreal terms. While the high (nominal) cost of borrowing, whether from the informal or formal sector,has placed some limit on the demand for credit, the supply of funds has also been constrained by the

39/ There is also provision for loans for agribusiness, for instance, manufacturing,handicraft and construction, as well as for automobile, mechanical and electricalrepairs.

- 19 -

tight monetary policy. With continued economic recovery and adjustment, the demand and supply forthe credit should ease. As regards credit recovery, in the present circumstances, loan repayment isoften secured through direct recovery from the harvest and is reported to be good at 97 percent. Thisapparent success is attributable to the physical presence at harvest of loan officers, who, wellacquainted with the debtor's expected harvest, exercise their prerogative to collect. This is neitherefficient nor cost-effective in terms of modern banking practice. Ultimately, it is the ability of ruralbanks to mobilize resources and reach a large number of farmers in a cost-effective manner thatwould be critical to the financial viability of the rural banking system and make for the further growthand resilience of the rural economy. The capacity of the existing rural banks to perform basicbanking functions is seriously constrained by the lack of technical assistance, weak mobility and poorlogistics.

(iv) Feeder Roads

3.27 Approximately one-third of Sierra Leone's feeder road network was funded by USAID andconstructed in the 1970s and early 1980s by CARE (Cooperative American Relief Everywhere) usingheavy mechanization. The remaining two-thirds was financed by other donors with a considerableportion constructed under the Bank-funded IADPs. By 1987, about 71 percent of the feeder roadnetwork was assessed as being in poor to very poor condition and in need, therefore, of majorrehabilitation, 25 percent was assessed to be in fair condition requiring periodic maintenance, andabout four percent was considered to be in good condition requiring routine maintenance. Fourhundred miles (55 percent located in the southern and eastern regions) of the feeder road network haddeteriorated to such an extent that it received the low rating of 2.0 in the weighted condition indexindicating need for priority rehabilitation. 401 A primary reason for the present condition of thefeeder roads has been a progressive and persistent lack of funding for their maintenance. In fact,even in the IADP era, the problem of maintenance funding was so acute that CARE, a foremostbuilder of these roads in Sierra Leone, decided to cutback on new feeder road construction and divertfunds earmarked for new investment to the maintenance of feeder roads that had been thus farconstructed.

3.28 Due to the continued lack of maintenance funding, the condition of feeder roads in SierraLeone has deteriorated further and is now a major obstacle to increases in agricultural surplus,efficient marketing and distribution of agricultural output within and outside rural areas, and theavailability of wage goods in rural areas. As a consequence, the growth and development of the ruraleconomy has come close to a stand-still with both producers and consumers deprived of the benefitsof competitive pricing. The numbers of traders and middlemen that would conceivably find itprofitable to compete have been discouraged from doing so by rising transport operating andmaintenance costs triggered by the high cost of fuel and spare parts. It is the excessively high tradingmargins, inherent in oligopolistic and monopolistic pricing sanctioned by poor transport andmarketing infrastructure, rather than healthy competition, fostered by a good road network, that hasemerged as the primary determinant of input and output prices faced by farmers, particularly thoselocated in remote rural areas. In the process, the ability and the incentive for the farmer to adoptimproved technology that would make for higher yields and output remains thwarted. While it isimperative that rural roads are rehabilitated, it is equally imperative that their maintenance be

40/ The Government of Sierra Leone, Ministry of Works and Labour, Survey of theClassified Road Network and Important Feeder Roads, Draft Final Report, November1987.

- 20 -

adequately and regularly funded and carried out. This would reduce the likelihood of exhorbitantmarketing costs being passed on to the producer/farmer in the form of a poor farm-gate price andsteeply priced inputs, and to the consumer in the form of excessively priced basic consumption items.An added adverse effect of the poor feeder roads and the inordinate marketing costs is the severe limitplaced on growth multipliers stemming from production linkages within the farm and rural sectors butmore importantly from inter-sectoral consumption linkages between the rural and urban sectors.

E. Donor Contribution

3.29 In perhaps what can best be described as Sierra Leone's most difficult economic circumstance,that is, during the period of suspension of disbursements by the Bank and the inability of collapsedgovernment institutions to pursue agricultural development, it was the presence of donors whichsustained the sector. Bilateral and multilateral donors continue to play an important contributory rolein enhancing yields and output of project farmers and training counterparts in project execution andfarmers in the application of improved technology. The main projects include: the EEC fundedagricultural development projects in the Port Loko, Kambia and Koinadugu Districts; the GTZ-fundedagricultural development project at Bo-Pujehun, and a fisheries development in Kambia District; theFAO project at Moyamba promoting the cultivation of rice, vegetables and oil palm as well as thedevelopment of fisheries at Shenge and Tombo; the Rhombe Swamp Development Project funded byItalian Aid (not yet on-stream); the new IFAD financed North Central Project, an extension of theMagbosi project; the ADB funded agricultural development project at Moyamba, that at Torma Bumpromoting contract ploughing and ADB assistance to the Livestock Training Center at Teko in theNorthern Region; and the Japanese funded project at Gbontapi for promoting mechanized cultivationthrough contract ploughing. The contribution of these projects to Sierra Leone's agricultural andrural development has, so far, not been assessed by donors. An in-depth review to assess the neteconomic and financial benefits of these projects is urgently required. Efforts are also required toreduce the excessive high management and input-intensity of all these projects and eliminate inherenteconomic distortions due to input and credit subsidies which are quite common. The key question isto what extent these projects can be sustained under the present budgetary constraints and economicrealities. This learning and knowledge would be critical in the policy and institutional framework forbasic agricultural services as it continues to evolve.

3.30 In spite of substantial external assistance to the agriculture sector over the last few decades,institutional capacity building has had mixed results and, on balance, remains weak. The impact oninstitutional strengthening of donor-funded projects, including Bank-funded IADPs, has been two-fold.First, these projects drew, and continue to draw, on MANR&F staff (by secondments supplementedwith field allowances as incentives) to assist with project execution. In the process, staff have beentrained to implement projects but not to plan and manage them. Second, the practice of drawing onMANR&F/DAF staff had created parallel systems of agricultural extension and project management.The unnecessary duplication of services through the excessive concentration of projects and staff insome areas at the cost of local projects and backward areas has had little justification. Furthermore,with staff being answerable at the same time to donors and senior civil servants, a fair degree ofconfusion had emerged as to the appropriate authority in this dual system, especially on policy,technical and administrative matters. The resulting lack of control, focus, and planning has been, andcontinues to be, reflected in a number of dispersed independent projects which remain outside anysemblance of a sector strategy. A more serious shortcoming is the lack of a joint assessment bydonors of the impact on Sierra Leone's agriculture of past donor interventions and the absence ofregular donor coordination and regular joint meetings with the DAF.

- 21 -

3.31 Some donors have expressed reluctance to follow the Bank-led move away from the IADPs,the integration of the IADPs into the main stream of the agricultural institutional structure and theimplementation of agricultural development projects within an overall policy framework that does notsanction input and credit subsidies. There have been, in the past, two basic reasons for such donorattitude and resistance. One is the belief that the MANR&F lacked the capacity to plan and managesector growth and development. This has been true to some extent and is attributed, in part, to thesetback in institutional capacity building from the difficult budgetary situation and the weak moraleand motivation of staff. However, it may also be attributed to the fact that seconded MANR&F staffwere made to assist with project implementation rather than the planning and management of projects. 41/Second, many donors are of the view that without input and credit subsidies, farmers are unlikely toadopt improved technology. 42/ The net result was the perpetration of highly management andinput intensive agricultural development projects that are becoming difficult to sustain. The Bank, inthe interest of promoting economic efficiency and capacity building has reiterated its strongcommitment to ensuring that the development effort is of a substance and pattern which is free ofdistortions, one that is self-sustaining, and one that increasingly comes under the helm of sectorinstitutions, such as DAF. This view and effort is supported by cofinancier IFAD, and it is hopedwill, in the near future, gain increasing support from the donor community at large.

F. NGQs

3.32 NGOs have made an invaluable contribution to Sierra Leone's agricultural and ruraldevelopment. Even in remote geographical areas, farmers have benefitted from the agriculturalextension advice provided by DAF extension staff who are often assisted by local and internationalNGOs. In addition, farmers have been educated by NGOs on the benefits of their adopting a groupapproach for input purchase and output marketing and in the modalities of forming farmersassociations and functioning effectively as farmers groups. In the absence of a competitive and fullydeveloped private sector for marketing agricultural inputs, it is envisaged that more activeparticipation by the NGOs in the agricultural development process would continue to be sought.Given the strong awareness of NGOs of the seasonal and time-bound nature of agricultural operationsand their well recognized commitment to the economic uplift of farm families, their assistance tofarmers in channelling inputs would instil a measure of certainty with respect to the timely availabilityof input supplies. Furthermore, by facilitating cost-effective transport to local and more distantmarkets, NGO participation could provide some countervailing power and competition to privatesuppliers and traders, especially in remote geographical areas where farmers are exploited by weakfarmgate prices and forced to pay exhorbitant prices for essential farm inputs. Where farmers chooseto voluntarily group with the purpose of overcoming the constraints imposed upon their agriculturaloperations by lack of collateral and poor creditworthiness, their bargaining power, whether forpurchase of inputs or marketing of output, could be greatly enhanced.

41/ In 1986, after the Mid-Term Review, the Bank was encouraged by MANR&F'sattempt at preparing the Green Revolution Plan (GRP), its weaknessesnotwithstanding, and acknowledged MANR&F's potential and initiative in taking alead role in guiding and supporting sector development.

42/ While this may true, it is also a fact that when the producer price warrants, farmersare known to seek out improved technology and modern farm inputs.

- 22 -

3.33 Both local and international NGOs continue to work closely with DAF staff in agriculturalextension and training, particularly training in the use by men and women farmers of farm and agro-processing equipment, in monitoring yields and output, and in enhancing management skills, etc.Each NGO has advantages. Local NGOs possess working knowledge and have valuable insight intothe culture and traditions of farm households. This knowledge is indispensable to the successfuldesign and implementation of projects. 43/ With respect to project identification and appraisal, itis the international NGOs which understandably have the greater advantage. These NGOs are well-versed in procurement, implementation, and reporting, and have strong management and accountingskills. Local NGOs have yet to develop these capacities and skills and their ability to do so isconstrained by limited resources. There has been a further problem faced by local NGOs. Evenwhen formally registered, as required with the Department of Rural Development, they do not enjoymany benefits enjoyed by international NGOs, especially in respect of duty paid on essential importeditems. This differential treatment needs to be promptly and appropriately dealt with so that it doesnot become a strong dis-incentive to local NGOs continuing their important contribution to sectordevelopment.

G. Bank Group Operations

3.34 The IDA's development effort in Sierra Leone's agriculture sector has included three phasesof the Eastern IADP and two phases of the Northern IADP. These projects were area developmentprojects, complex and multi-purpose, management and input intensive, inclusive of stronginfrastructure components, and were aimed at increasing production and incomes of target groups offarmers. Their overwhelming emphasis was on rice production through swamp development andconsolidation and this was, in some degree, to the neglect of upland farming that is deeply ingrainedin the rural psyche. Because of its socio-economic implications, upland farming, too, wassubsequently promoted by the IADPs. Besides, promoting rice cultivation, tree crop developmentwas also an important objective of the IADPs. The enclave nature of these projects kept themestranged in practice from the macro economic concerns of the economy at large and economicdistortions in the sector in particular. Relative to the benefits and targets that were ultimatelyattained, the IADPs turned out to be costly in terms of their demand on professional management andorganizational skills. As a result, and in the interest of sustainability, the Bank (utilizing itsknowledge and experience with IADPs in several countries) reassessed its approach to agricultural andrural development and reversed it in favour of more simple and focussed projects. The ASSP was thefirst non-IADP project in Sierra Leone the implementation of which was interrupted by the suspensionof disbursements.

3.35 Included in the overall lessons from the IADP experience in Sierra Leone are: first, that aproject implemented in a distorted macro environment cannot succeed; second, that while an enablingmacro environment is a necessary condition for sector and project success, it is not a sufficientcondition, and that sector policy reforms are essential complementary measures for supply responseand sustained growth; third, that the chances of a project succeeding in a country environment, wherea financial crisis remains unresolved, and the budgetary situation is unsustainable, are low; four, that

43/ Instances have been reported where international NGOs, not familiar with localcustoms and traditions, imported and introduced pre-fabricated agendas and projectswhich, as it turned out, were not successful. The cost to the NGOs and to the localcommunity involved was ultimately unjustified causing apprehension and caution onthe part of the village community toward further outside interventions.

- 23 -

the danger of under-estimating the impact on the supply response of the producer price incentivecompared to non-price incentives should be guarded against; and fifth, that there is a necessity ofobtaining information from indigenous sources on the socio-economic issues surrounding theintroduction of improved technology and new methods of cultivation, particularly with respect toswamp rice. 44/ At the project level, the main lesson to be learned is that where institutional andmanagement capacity are relatively weak and undeveloped, simplicity in project design isindispensable. Ambitious projects with complex designs in a country and sector saddled with seriousmacroeconomic and financial constraints, and aggravated by limited absorptive capacity and poor ornon-existing infrastructure, are likely to meet with little success in achieving their objectives. This isparticularly true in instances where the record of macro economic management has been poor andwhere it has continued to rapidly deteriorate.

H. Short-Term Options

3.36 Possibly beyond, but at least in the short to medium term, the pressure on the agriculturalsector to provide substantially more foreign exchange resources and food, and more employmentopportunities, is likely to grow. Prior to the onset of the economic decline, in the hope of findingbetter prospects for incomes from mining, construction and trading, and from jobs in publicadministration which expanded almost three-fold in the first decade of independence, large numbers ofthe rural work force had migrated to mining areas and large towns. 45/ As the mining sub-sectorweakened so did the pull on outward migration. Now, with the economy depressed, urban life hasbeen transformed into an economic struggle accentuated by high inflation and a near collapse of mostpublic services. The lure of urban life has clearly faded for most and reverse migration back to ruralareas in some significant degree appears to be taking place. This trend of return to rural areas mayyet deepen as budgetary expenditures are further tightened and civil service staffing further curbed.In any event, whether from natural population increase or continued migration back and forth, theburden on the sub-sector to provide food and jobs is expected to increase. This burden is expected tofurther grow as and when refugees return to Sierra Leone from neighbouring Guinea. To meet thisoverall challenge, an increase in agricultural production and productivity, prompted by an effectivesector policy and strategy, and supported by strong transport and marketing infrastructure, is vital.

3.37 It should be borne in mind that the country still faces a serious resource constraint, thatinstitutional and infrastructure development are on-going processes which will require considerablelead-time even though disbursements have resumed, and that farmers are basically risk-averse andinclined to respond cautiously to the prospect of adopting new crop technology that is input-intensive.In view of this, the sector cannot in the immediate future make up for all of the considerable time lostduring years of weak economic management and the suspension of disbursements. In the short-term,

44/ See World Bank, Project Performance Audit Reports, respectively, for the IntegratedAgricultural Development Project, Credit 323-SL, dated May 27, 1978 and theIntegrated Agricultural Development Project II, Credit 568/Loan 1138-SL, dated June24, 1983; and Project Completion Reports, respectively, for the Eastern IntegratedAgricultural Development Project, Credit 1094-SL, dated December 28, 1990 and theNorthern Integrated Agricultural Development Project, Credit 1128-SL, also datedDecember 28, 1990.

45/ According to the 1963 and 1974 Census figures, the urban population growth rate was5.9 percent.

- 24 -

therefore, even though development options are obviously limited, they are not lacking. This isbecause Sierra Leone's agricultural sector has considerable technological, institutional andinfrastructure excess capacity as well as extensive experience with implementing Bank-funded projectsin the past. It also has an underlying economic strength which its community and group approachhave to offer. Thus, in the short-term, a concerted effort on three fronts could create the enablingenvironment that is urgently being sought and place the sector on a path of recovery and growth: (i)tapping in the near term Sierra Leone's existing technological capacity for attaining higher crop yields(ii) resuming institutional capacity building and strengthening mechanisms to transfer technology andmonitor its adoption; and (iii) rehabilitating the existing feeder road network. A prerequisite to thesuccessful tapping of these existing capacities would rest in strong sector policies that are reflected inproducer incentives that are conducive to higher production and sustained growth.

3.38 The Government of Sierra Leone has demonstrated a political will and commitment toinstituting and sustaining macroeconomic reforms espoused by the Bank and Fund. It has also startedto complement this effort through its commitment to important sector policy and institutional reformsthat would set the stage for an enabling environment for modern agricultural growth. However, anenvironment where the private sector holds the key to expanded investment and commercial activity,where a competitive market economy is to be responsible for ensuring efficiency in resource use, andwhere the public sector is to reorient its focus and assume the vital role of providing timely and cost-effective delivery of agricultural services remains largely undeveloped and weak. For decades now,the Bank has assisted Sierra Leone to move towards such an environment. Through the originalASSP, the institutional framework was given in-depth attention and many improvements wereintroduced and, on the policy side, efforts were made to reduce the subsidy on fertilizer with a viewto its eventual elimination. With the suspension of disbursements and acute budgetary difficulty,these policy and institutional reforms could not run their full course. It is critical that the processnow be completed.

IV. THE REVISED PROJECT

A. Project Objecve

4.1 The primary objective of the reallocated ASSP is to create an enabling policy and institutionalenvironment conducive to the recovery of agricultural output. This recovery would be led by theprivate sector and pursued within the framework of a free market economy. Specifically, the soughtsupply response in food and cash crops would be obtained through private sector initiative andinvestment in production, storage, processing and marketing rather than through the highly input andmanagement intensive approach by public sector institutions pursued through the IADPs. Investmentdecisions based on market signals would therefore be key, and which would, to bear fruit, requirestrong policy, institutional and infrastructure support. The Matrix of Policy and Institutional Actionsgiven in Annex A contains the policy and institutional reforms that would support the fostering of theenabling environment and it also provides a status comparison with the reforms pursued through theoriginal project and the Government's commitment to the policy reforms is stated in its Letter ofSector Policy given in Annex B. With due attention to socio-economic and environmental factors, theproject aims to assist the agriculture sector to recover, and surpass, its earlier contribution to GDP,rural incomes, nutrition, and net export earnings. Envisaged, therefore, is the intensive use of landunder cultivation through fuller utilization of existing improved technology. Given Sierra Leone'spresent weak state of agricultural development, the two most important prerequisites to expansion inmarketed surplus are: first, an increase in agricultural productivity and second, greater efficiency in

- 25 -

the storage, processing and marketing of the agricultural surpluses produced. The means whereby theproject would achieve its objective of higher production and efficient marketing are through effectivetechnology transfer and strong research-extension-farmer linkages, increased availability of essentialfarm inputs and agro-processing facilities, good feeder roads, and remunerative producer prices. Tothe extent that any one of these is excluded or lags in its performance, agriculture sector recovery andsupply response would inevitably be seriously compromised.

B. Summary Description

4.2 The project would be implemented over a period of four years. Its design allows for a quickdisbursement of project funds anticipated at more than 80 percent by the end of the third project year.The funds would be used for project activities in regions other than the eastern and southern regionswhich remain politically insecure. In addition to strengthening the policy and incentive framework,the project's objectives would be achieved through the following main components:

(a) technology transfer (US$9.1 million): this component would by increasing thecapacity of front-line extension officers to transfer technology to farmers (i) strengthenthe dissemination of existing improved technology for food and cash crop cultivation,and for post harvest technology, forestry, fishing, land and water development; (ii)reduce the high mortality rate of the national livestock herd and small ruminants; (iii)strengthen monitoring and evaluation of the technology transferred; (iv) rehabilitateselected extension training and research facilities which are severely dilapidated; (v)finance the training of Subject Matter Specialists, agricultural instructors, men andwomen farmers, and loan officers of selected rural banks; (vi) enable the conduct ofon-farm adaptive research (OFAR) trials and crop demonstrations on farmers' fieldsand ensure feedback to research scientists on the use of such technology adoption byfarmers through the extension service; and (vii) facilitate technology adoption throughalleviating the immediate bottlenecks faced by rural banks to provide seasonal creditand working capital to farmers;

(b) farm inputs and post-harvest technology (US$9.6 million): this component wouldfinance (i) the import of essential fertilizer, farm tools and implements, oil palmseedlings, and small-scale agro-processing equipment for rice, cassava, oil palm,maize and pepper; and (ii) the training, in post-harvest technology, of farmers(including women farmers), agro-processors and extension officers;

(c) feeder roads (US$7.8 million): this component would finance the rehabilitation of 530km of severely dilapidated critical feeder road links, many of which are located inremote but agriculturally productive areas. Almost 68 percent of the total length offeeder road network to be rehabilitated would be done through two replications of anon-going pilot project using labour-intensive rehabilitation methods. The employmentgeneration and food-for-work made possible through this sub-component would beimportant to farmers and farm labour during the off-season, known as the 'hungryseason', when both food and cash are scarce;

(d) research-extension linkages (US$0.4 million): to ensure that the technologytransferred to farmers is relevant to their socio-economic situation, and that thetechnology subsequently developed is demand-driven, this component would (i) fosterresearch-extension-farmer linkages through a series of crop variety trials to be

- 26 -

conducted jointly by research scientists and subject matter specialists on farmers'fields; (ii) provide for the publication of the results of these research trials; and (iii)improve coordination of the research effort between the national agricultural researchinstitutes;

(e) Coordination Unit (US$1.4 million): to strengthen the DAF's capacity to coordinateand implement the ASSP, and plan and execute agricultural development projects andprogrammes beyond the ASSP, the project would support, with appropriate technicalassistance, equipment and logistics, the establishment of a Coordination Unit withinthe DAFF.

C. Detailed Features

4.3 Technology Transfer. a severe lack of funding has reduced the capability of the agriculturalextension officers for providing even minimal agricultural extension advice and farmer training. Torestore basic agricultural extension capability in the crops, forestry, livestock, fisheries, and land andwater development sub-sectors, the project would provide for logistical and operational support andfor refresher training of front-line extension officers. With the present staff strength, at least 30,000farmers could be directly reached by the DAF extension service alone and, indirectly, approximately900,000 farm households would be made aware of the benefits of adopting and sustaining the use ofimproved technology packages. At Headquarters (HQs), DAF's capacity to monitor the uptake oftechnology transferred and evaluate its impact on productivity and output would be enhanced and itsfinancial control, audit and accounting functions would also be strengthened. The project wouldrestore field extension capability, improve the capability of the DAF to monitor and evaluate thetechnology of transfer, and strengthen the capacity within the DAF to undertake policy and strategyplanning and implementation. Existing improved technology would be introduced and promoted for:(i) raising yields and productivity in food and cash crops on upland farms and inland valley swamps(IVS); (ii) improving water control and farm management in IVS; (iii) arresting soil erosion throughencouraging tree planting and environmental conservation; (iv) promoting the financial benefits fromtree planting for fuel wood, poles and fruit; (v) enhancing inland and artisanal fishing; and (vi)reducing post-harvest losses through the demonstration and dissemination of post-harvest technology.

4.4 At the field level, agricultural extension services would be administered by Region. EachRegion is divided into 10 circles or administrative zones which cover anywhere from 1 to 4Chiefdoms, except for the Western Region which has five circles. 46/ To make field extensionpossible and effective, DAF's technical Divisions at HQs would also be strengthened. Professionaland technical operations would continue to be headed by the Director-General (DG) of the DAF whowould oversee the Agriculture Division (crops); the Forestry Division; the Livestock Division; theFisheries Division; the Land and Water Development Division (LAWDD); the Monitoring, Evaluationand Statistics Division (MESD) and the Communications Division. The Chief Agriculturist (CA)heads the Agriculture Division and is assisted by the deputy CA and an assistant CA. Each RegionalOffice is headed by a Chief Regional Officer (CRO), and staffed with Principal Agricultural Officers(PAOs), Senior Agricultural Officers (SAOs), selected Subject Matter Specialists (SMSs), officers formonitoring and evaluation, training and engineering, and agricultural and mechanical superintendents.The seven CROs report to the CA.

46/ There are seven regions: Eastern, Southern, South Western, Western, Northern,North Central, and North Western.

- 27 -

4.5 The project would finance investment and operational and maintenance costs of vehicles,field, office and laboratory eguipment and urgent civil works rehabilitation in selected agriculturaltraining and research institutes. Vehicles and motorbikes would be provided to senior officers atDAF HQs as well as at each regional office and, at the village level, bicycles would be provided tofront-line extension officers. The allocation of these vehicles, including the two mobile training vans,and motorbikes would be determined by the CA. For resuming the implementation of workprogrammes of DAF Divisions in charge of Agriculture, Forestry, Livestock, Fisheries, LAWDD andthe MESD, the project would finance relevant field and office equipment. Severe under-funding ofthese items has impeded basic day-to-day field and HQs operations. Equipment for individual DAFdivisions would consist of standard computer and office equipment as well as specialized field andlaboratory equipment: (i) for the Agriculture (Crops) Division, this equipment would consist ofsupplies and tools for field staff and survey equipment; (ii) for the Forestry Division, the equipmentwould comprise tools and equipment for nursery programmes, specialized equipment for forestmanagement, and equipment for utilization and wildlife conservation; (iii) for the Fisheries Division,the equipment would consist of assorted fishing gear; (iv) for the Livestock Division, the equipmentwould include drugs, vaccines and veterinary instruments; (v) for the Land and Water DevelopmentDivision (LAWDD), the equipment would consist of cartography, soils, agronomy, agro-meteorologyand laboratory equipment as well as equipment for studying water resources; (vi) for theCommunications Division, equipment to produce audio-visual aids for extension and farmer trainingin all types of agricultural activity would be included; and (vii) for the MESD, equipment forweighing, surveying and communications for surveys and studies would be included.

4.6 Refresher and on-going training of front-line staff would be indispensable for resumingeffective implementation of field extension services and operations. The programme for trainingextension officers has been inactive for many years because of inadequate funding and the poorcondition of training facilities. Before training can be provided, these research and training facilitieswould need to be rehabilitated. The project would finance essential rehabilitation only and, dependingon the specific research and training institute, could include urgent civil works repairs andrehabilitation of fields on which on-station experiments would be conducted. Only those facilitieswhich are directly relevant to the project objectives would be funded. Included are the MangeTraining School, the Institute of Agriculture/Certificate Training College (CTC) at Njala, the MakaliTraining Center, and training facilities at the Rokupr Rice Research Station.

4.7 Input Supply and Post-Harvest Technology. The project would ease the supply bottleneck ofimported and essential farm inputs such as fertilizer, chemicals and seed, tools and implements,veterinary drugs and vaccines, and machinery for crop-processing. The inputs would not be deliveredto a targeted group of farmers, as was the case in the IADPs, but would be made available at specificlocations for purchase by farmers of their own volition and decision (Annex C). The use of theseinputs would however be monitored and evaluated by extension officers and monitoring andevaluation officers of the DAF. The demand for these inputs, particularly in weak and uncertaineconomic and political circumstances, is difficult since few estimates of their use in the past exist.Even at the height of the IADP era, no statistics were collected on the amounts of fertilizer used onvarious crops. Subsistence farmers who have not participated in donor funded projects are known touse little fertilizer and farm chemicals. When indeed it is applied, fertilizer is used mainly for swamprice by the relatively large commercial farmers, and practically none is used for upland rice, or for

- 28 -

coffee and cocoa. It is also used for the cultivation of vegetables, which unlike upland rice (becauseof severely eroded soils), show strong response to fertilizer use. 47/

4.8 While the judicious use of fertilizer would necessarily entail crop and location-specificrecommendations, general recommendations by the Adaptive Crop Research and Extension (ACRE)Project funded by DAF/USAID suggest the use, with proper extension advice, of 20:20:0 forapplication on upland farms and urea in the swamps. The project would finance the import of 7,000tons of fertilizer in the first project year, 7,250 tons in the second project year, and 7,500 tons ineach of the last two project years. Accounting for about 50 percent of the total annual requirementbefore the suspension of disbursements, this quantity would comprise various types of fertilizer in thefollowing approximate proportions: NPK 20:20:0 (30 percent), NPK 0:20:20 (5 percent), NPK15:15:15 (20 percent), NPK 15:15:6.4 (4 percent), Urea (30 percent), SSP (4 percent), and MOP (7percent). These proportions vary slightly from the mix of fertilizer types estimated by the DAFFertilizer Unit for its fertilizer requirements prior to the suspension of disbursements. Given that nomajor technological advance or change in cropping patterns is reported to have occurred in SierraLeone since then, similar proportions may be assumed for the project period. The allocations havebeen broadly guided by: (i) levels procured in the past in economic conditions considerably morefavourable from the point of view of the individual farmer; (ii) amounts likely to be realisticallyabsorbed by the sector at present when incentives for fertilizer use are relatively weak; (iii) highercost of imported inputs because of devaluation and high marketing costs; (iv) substantially weakenedfarmer cash flow in view of the weak and stagnant farm-gate price of rice relative to production costsassociated with yield-enhancing technology; and (v) less than a fully understanding of the dynamics ofthe fertilizer sub-sector given the infancy of comprehensive fertilizer trials within the country. Notincluded in the import estimate are the fertilizer requirements of commercial and institutional entitiessuch as the Magbasse Sugar Complex, Rokel Leaf Tobacco Company and other donor funded projectssince each of these makes its own provision. Also not included are the fertilizer requirements of theDAF Divisions and NARCC for the extension demonstration and research trials that would beregularly carried out throughout the project period; these requirements have been provided for underequipment support in the technology transfer and research-extension linkages components.

4.9 The demand for seed has remained fairly constant over the last ten years for high yieldingvarieties of rice and is expected to approach about 2,000 tons per annum over the project period.Most of the improved varieties are available through the Seed Multiplication Project (SMP)established in 1976 with a grant from GTZ. The SMP has multiplied well over 30 rice seed varietiesthrough its three seed centers and approximately 4,700 contract growers. During the last year, seedand fertilizer were supplied by the SMP to its contract growers at a price with a subsidy element ofabout 25 percent and recovery was reported to be as high as 85 percent or more. Frequently, costrecovery is carried out through barter exchange with farmers selling the seed rice in exchange fornecessities such as sheet roofs, cement and bicycles. Barter transactions constitute about 25 percentof SMP's output recovery. Once released by the research institutes, the SMP multiplies, tests andcertifies the rice seed before sale to farmers and traders. Subsistence farmers are not among the mainpurchasers of seed rice, since, they, as a rule, retain about 15 to 20 kilogrammes of seed from theprevious harvest as supply for the next season; usually this rice is inferior in quality compared to thewell supervised seed production of the SMP contract-grown seed rice. Over the project period, thedemand for high yielding rice seed is likely to increase. The existing capacity of the SMP of about

47/ The application of fertilizer would be discouraged in swamps which are naturally veryfertile and where soil fertility is not reported to rapidly decline.

- 29 -

2,000 tons is considered sufficient to meet this demand. Improved planting material for coffee andseed for cocoa would continue to be supplied from DAF nurseries established with IDA funding inthe past. The revised ASSP has provided for nominal funding in the amount of US$50,000 formaintaining the existing coffee and cocoa nurseries not located in the Eastern and Southern Provincesbordering Liberia. As regards improved oil palm seedlings, the demand remains strong and theshortage continues. Provision has therefore been made for the import of 300,000 oil palm seedlingsfrom Cote d'Ivoire complete with the required polybags and wire collars. For livestock health, overUS$200,000 would be made available for the import of the most essential drugs and vaccines andveterinary instruments. A little over US$35,000 would be made available for the import of basicfarm tools and implements generally used by subsistence farmers.

4.10 To prevent losses of increases in harvested output from the uptake of improved technology,the project would fund post-harvest technology. There is considerable unmet demand for suchtechnology, particularly parboiling tanks, drying floors, rice mills, cornmeal producing equipment,facilities for preparing gari and fufu, oil palm processing facilities etc. 48l/ The project wouldprovide funds for the establishing by farmers associations of integrated crop-processing centers alongthe lines proposed by the third phase of a UNDP/FAO project for post-harvest practices at the villagelevel prepared by the FAO. Machinery and equipment for processing rice, cassava, maize, oil palm,groundnut and pepper would be made available to fifteen bona fide farmers' associations to establishthe integrated crop-processing centers across the country with technical assistance from internationallyrecruited experts and DAF extension officers (Annex C and D). The construction of these integratedcrop-processing centers would be carried out with the active participation of potential beneficiarieswho would contribute the required land, materials and labour. The cost of this component comprisingcrop-processing equipment and technical assistance amounts to over US$1.5 million. Specifically, theproject would finance, at least, five (seven) small size rice mills, five (seven) rice threshers, two(four) cassava processing units, two (four) oil palm expelling units, five (seven) oil palm kernelcrackers, two (four) maize shellers, five (seven) maize grinders, five (seven) pepper grinding unitsand one (two) sets of coffee processing machinery. Also included would be stationary and officeequipment and technical assistance for the integrated crop-processing centers. At least 500 male andfemale farmers, as members of the selected farmers associations and groups, would be directly trainedby the project and a number of DAF technical and extension staff would also be trained. The projectwould follow the current practice of full cost recovery through the capitalization by the farmers'associations of the crop-processing equipment by the end of the project period. The funds from thecapitalization would be recovered by designated officials and deposited in the Treasury.

4.11 To facilitate the delivery of seasonal credit to small farmers, the project would providelogistical support and training for six existing rural banks (Annex C). The operations of these ruralbanks are, at present, severely constrained by a lack of mobility, insufficient equipment andinadequate technical assistance. Without seasonal credit, farmers are unable to afford expenses forthe purchase of modern farm inputs required by yield-enhancing technology and for the effectivestorage, processing and marketing of output. The farmers' already poor cash flow is under furtherpressure from numerous economic and social factors that are a rural reality. Thus, after meetingsubsistence needs, the farmer, in addition to paying off debts contracted during the 'hungry season,'the costs of hiring labour for land clearing, transplanting and weeding in the planting season, he is

48/ Wide usage of parboiling tasks will also be beneficial for conservation of the fuelwood resource. At present, most parboiling of rice in villages draws heavily on fuelwood.

- 30 -

obligated to meet essential community-related expenses surrounding post-harvest festivals and covetedmembership in traditional secret societies. All these debts and obligations make an early andsubstantial demand on the harvest reaped by the farmer. At current input/output coefficients, theinvestment of time and resources to adopt and sustain improved technology, develop and consolidateswamps, bring more upland area under cultivation, consider on-farm storage and improved technologyis thus not of high priority. 49/

4.12 Feeder Roads. To reduce the isolation and exploitation of farmers in remote but highlyproductive agricultural areas, the project would finance the rehabilitation of about 530 kilometers offeeder roads. Urgent rehabilitation of selected feeder roads in the Port Loko, Tonkolili andKoinadugu districts would be undertaken. These feeder roads, identified by the DAF (during theASSP supervision missions in May and December of 1991 and in August/September 1992) are locatedin agricultural areas of high potential where food and cash crops are typically grown, and areas whereactivity in the forestry and fishing sub-sectors is expected to gain momentum. A list of these feederroads is provided in Annex C. Many of these roads had been identified and recommended forrehabilitation as far back as 1987. 5Q/ Their condition has now deteriorated further to such anextent that the evacuation of marketed production of food and cash crops for export or urban andrural domestic consumption is difficult and expensive. In view of the varied lengths of the feederroad links and their scattered locations, rehabilitation of about 360 kilometers would be rehabilitatedusing labour-intensive methods and the remaining 170 kilometers through equipment intensivemethods of rehabilitation.

4.13 The ILO component, with its emphasis on employment generation, would consist of twreplications of a pilot project used to construct the 90 km feeder road stretch from Moyamba toShenge under funding from UNCTAD and food aid from WFP. Each replica would consist of onelabour-intensive unit and one equipment-intensive unit. The labour-intensive component would makea useful contribution to the farm economy in three ways. It would: (i) help to expedite theconstruction of feeder road links considered too short and possibly unattractive for contractors usingheavy mechanization; (ii) assist unemployed labour with food-for-work in the 'hungry season' afterthe harvest has either been consumed, repaid or sold; and (iii) equipment made available under thissub-component would be used by the SLRA for training purposes. An average of bout 120 km offeeder roads can be expected to be rehabilitated by labour-intensive methods each year - about 50 kmwith the equipment-intensive replica and about 25 km with the labour-intensive replica. The projectwould finance the cost of light equipment for feeder road rehabilitation, the supervision costs andwages of the labour gangs, and operation and maintenance costs. Food rations for the labour-intensive sub-component would be provided by the World Food Progranmne (WFP) and would consistof a nutritionally balanced food basket the actual market value of which would be far higher. Overthe three year project period, total rations would amount to 450 tons of rice, 35 tons of dried fish and35 tons of cooking oil. This would provide about 90,000 food rations per year - 400 labourers (40groups of labourers with each group consisting of 10 labourers) per year working for 25 days permonth for nine months each year.

49/ When funds are available, the first priority of the farm household after meeting thefirst few obligations is most often investment in a metal sheet roof for the house.

50/ op cit. Ministry of Works and Labour, Survey of the Classified Road Network andImportant Feeder Roads.

- 31 -

4.14 Research-Extension Linkages. Project funds would be used to revive the recently establishedNational Agricultural Research Council (NARCC) to enable it to carry out its mandate of coordinatingagricultural research in Sierra Leone. The aim is to ensure that, based on feedback from farmers onthe improved technology introduced, research in future is demand-driven and directly relevant to thetechnical and socio-economic constraints faced by farmers in the use of improved technologies. Thechallenge is to obtain the active participation by farmers as end-users of the technology, in influencingand determining the agenda for agricultural research as it evolves. Specifically, the project wouldfinance activities organized by NARCC to coordinate research and obtain feedback from farmers inthe technology promoted by the agricultural extension services. These activities would include jointmeetings of research scientists with farmers and Subject Matter Specialists (SMSs) to carry out aprogramme of crop variety and agronomic research trials on farmers' fields. These OFAR trials arecrucial to the ultimate success of Sierra Leone's agricultural research effort and have been severelyneglected in the past due to lack of funding and having been accorded low priority. Starting 1989/90,funding to NARCC was to be provided through a government subvention but this has till now beennegligible. The project would enable NARCC to monitor, evaluate and coordinate the research effortof long-established research institutes in Sierra Leone for OFAR trials and related demonstrations onfarmers' fields.

4.15 To facilitate feedback from farmers on the technical packages being promoted, to use thisfeedback to modify and generate technical packages which are directly relevant to farmers needs, andto encourage the conduct and publication of research which addresses farmers' technical and socio-economic constraints, the project would assist NARCC to carry out those components of its mandatewhich have a direct bearing on strengthening research-extension-farmer linkages. Specifically,included in the funding would be regular visits, one every two months, to farmers' fields jointly withSMSs and AIs; liaison with national and international agricultural research institutes includingregional institutes; diagnostic surveys; socio-economic studies; and the preparation of periodic andannual reports providing an assessment of the results of technology adoption and directions for futureagricultural research development. The project would provide funding for materials and equipmentfor the following programme of crop variety trials to be conducted with participation by farmers onfarmers' fields: at least 965 trials for rice, 100 for maize, 310 each for cassava and sweet potato, 150for groundnut, 80 for cow pea, and a nominal number for cayenne pepper. Provision has also beenmade for financing vehicles and motorbikes for participating staff, computer and office equipment forNARCC, and operation and maintenance costs.

4.16 Coordinating Unit. To enable the DAF to coordinate and implement the ASSP and, in theprocess, to strengthen its implementation capacity also for future projects and programmes in theagriculture sector, the project would finance vehicles, office and computer equipment and technicalassistance for the Coordination Unit (CU). The CU would be established by merging the currentprocurement and financial management units of the DAF. An internationally recruited ChiefTechnical Coordinator (CTC) and Financial Controller (FC) would be retained by the CU. The CTCwould coordinate the ASSP and the FC would be responsible for all its financial aspects. Other staffof the CU would comprise a Chief Procurement Officer, a Procurement Officer, an AssistantProcurement Officer, a Senior Project Accountant, four accountants and an adequate number ofsupport staff.

D. Project Costs and Financing

4.17 The current undisbursed IDA balance in the ASSP amounting to US$19.5 million constitutes69 percent of the total cost of the project estimated at US$28.3 million. Of the total project cost,

- 32 -

US$21.4 million or 76 percent is the foreign exchange cost and almost US$7 million the local cost(Annex J). Taxes and duties amount to US$2.4 million (equivalent to Le 1.3 billion). The base costestimate, obtained at appraisal in May 1991, has been adjusted to reflect prices expected to prevail atresumption of ASSP disbursements scheduled for January 1993. Total contingencies amount to 13.9percent of total costs: physical contingencies 3.6 percent and price contingencies, calculated on basecosts plus physical contingencies and compounded annually, to 8 percent. The project cost estimate isbased on the following assumptions for domestic and international inflation for each of the fourproject years respectively: international inflation at 0.8%, 1.7%, 3.6% and 3.6%, and domesticinflation at 37%, 21 %, 10% and 10%. Compared to the appraisal exchange rate of Le 250 to the USDollar, the exchange rate expected to prevail at implementation is estimated at Le 445. Thereafter,the exchange rate in each of the project years would maintain a constant purchasing power paritybetween domestic and foreign goods. All costs are incremental. Table 1 below outlines the maincomponents and their respective costs, and Table 2 the proposed financing plan for the revised ASSP.

Table IProiect Costs Includine ContinRencies 1/

(USS Millions)

Local Foreien Total 9

Technology Transfer 3.41 5.67 9.08 32.1

Feeder Road Rehabilitation 1.69 6.13 7.82 27.6

Inputs and Agro-Processing 1.45 8.19 9.64 34.0

Research/Extension Linkages 0.25 0.12 0.37 1.3

Coordination Unit 0.10 1.31 1.41 5.0

Total 6.90 21.42 28.32 100.0

1/ Including duties and taxes in the arnount of USS2.4 milion, and contingencies amounting to US$2.9 million.

4.18 Financing. The Financing Plan shown in Table 2 below contains the contribution by theWorld Food Programme in respect of food rations for the labour gangs under the labour-intensivefeeder roads sub-component as well as funding from food aid of the United Nations Volunteers whowould be provide technical support to some of the components.

Table 2Financine Plan

Original ASSP Revised ASSPFinancier SDR Million SDR Million USD Million 1/

IDA 20.3 13.9 2/ 19.5IFAD 5.1 2.1 2/ 3.0Government 1.1 4.1 5.8Beneficiaries 0.8

Total 27.3 20.1 28.3

1/ Converted at an exchange rate of SDR 1.40687 to the US Dollar2/ Undisbursed balance

- 33 -

E. Procurement

4.19 All goods and services financed under the IDA Credit and IFAD Loan would be procured inaccordance with IDA Procurement Guidelines following the procurement arrangements shown in thetable below. Except for the feeder roads component, all other procurement will be undertaken by theASSP Coordination Unit in DAFF. The procurement for the feeder roads component would becarried out by the Sierra Leone Roads Authority for roads to be rehabilitated through ICB;equipment, estimated at US$1.1 million, required for feeder road rehabilitation using labour-intensivemethods would be procured by Equipro (in consultation with the ILO) following Bank ICB Guidelineson the Procurement of Goods and Works. The proportion of ICB in the procurement of civil worksis 98 percent, for vehicles 100 percent and for goods, equipment and materials 89 percent. TheBank's sample bidding documents will be used for procurement for ICB and LCB.

Amounts and Methods of Procurement(US$ Million)

Procurement Catezorv ICB LCB Other Total

Civil WorksIDA (2.8) (0.1) (2.9)[FAD (0.6) (0.0) (0.7)Total 3.8 0.4 4.2

Vehicles & Spare ParnsIDA (1.7) (1.7)IFAD (0.0) (0.0)Total 2.7 2.7

Goods, Equipment & MaterialsIDA (7.0) (0.7) (7.7)[FAD (1.3) (0.1) (1.4)Total 8.8 1.0 9.8

Consultancies, TechnicalAssistance, Studies & Training

IDA (3.5) (3.5)IFAD (0.8) (0.8)Tote] 6.5 6.5

Incremental Recurrent CostsIDA (3.7) (3.7)IFAD (0.2) (0.2)Total 5.1 5.1

TotalIDA (11.5) (0.8) (7.2) (19.5)IFAD (1.9) (0.1) (1.0) (3.0)Total 15.3 1.4 11.6 28.3

Note: Figures in parentheses denote amounts financed by IDA and IFAD; the remainder would befinanced by the Government

4.20 For the rehabilitation of feeder roads, three ICB civil works contracts, each valued at aboutUS$3.8 million are envisaged. Rehabilitation works, aggregating US$0.4 million, for selectedextension training institutes scattered across the country may not be attractive to foreign firms and, assuch, Local Competitive Bidding (LCB) procedures, acceptable to IDA, would be followed. IDAfinancing for LCB would be limited to US$0.1 million. LCB would follow the practice of public bid

- 34 -

opening and clearly stated evaluation criteria. The award would be made to the lowest evaluatedresponsive bidder and foreign bidders would be allowed to participate if they were to so desire. Thefirst LCB document would be reviewed by the Bank before it is released to the bidders. Thethreshold for prior review for all civil works would be US$100,000. All of the vehicles (US$2.7million) and goods. equipment and materials (US$8.8 million) would be procured under ICB. IDAGuidelines on margin of preference will apply. Other small items available locally at competitiveprices would be procured by LCB up to an aggregate amount of US$1.0 million with proposed IDAfinancing of US$0.7 million. All procurement of goods through ICB would be exempt from pre-shipment price inspection by the Government's appointed inspection agency, although it wouldcontinue to carry out the quality and quantity inspection.

4.21 Consultants for technical assistance and studies would be recruited in accordance with IDAGuidelines for the appointment of Consultants. This includes the hiring of procurement agents toundertake the procurement of agricultural inputs and crop-processing machinery valued at US$7.5million. Also envisaged is a separate services contract for delivery-to-site of these inputs andmachinery, that is, delivery to designated stores/depots and integrated crop-processing centers. Allcontracts for Consultants would be subject to prior review by IDA.

4.22 At the Project Launch Workshop, procurement training would be provided to all staff in eachimplementing agency assigned responsibility for handling procurement in the Project. Procurementplanning and action plans will be given particular emphasis. To strengthen procurement management,the revised ASSP has ensured the separation of responsibility between the Senior ProcurementOfficer, vested with the ultimate responsibility for procurement within DAF, and the FinancialController. Each officer would report independently to the internationally recruited Chief TechnicalCoordinator for the ASSP who would be located in the ASSP Coordination Unit.

F. Disbursement

4.23 The remaining IDA Credit and IFAD Loan would be disbursed over a period of four years.The project is expected to be completed by December 31, 1996 and closed by June 30, 1997. Smallcontracts not exceeding US$10,000 would be reimbursable based on the SOEs. The CoordinationUnit would maintain adequate records and accounts for disbursements against SOEs. The Terms ofReference for the Auditors of the Project would include a requirement that SOEs be verified and thata statement to this effect be included in the Annual Statement of Accounts.

Summary Disbursement Schedule(USS Millions)

CateYor-y Amount of Allocation ExDenditure FinancedIDA IFAD (perent)

Civil Works 2.9 0.6 95Vehicles 1.0 0.0 65Equipment and Materials 7.1 1.4 95Technical Assistance, Studies 3.5 0.8 65

& TrainingIncremental Recurrent Costs 5.0 0.2 70% through end December 1995

and 30% starting Januay 1996Total 19.5 3.0

- 35 -

Disbursement Schedule for IDA and IFAD(USS Millions)

CY 1993 1994 1995 1TOW Total

IDA 5.9 6.0 4.4 3.2 19.5IFAD 0.7 1.1 0.7 0.5 3.0

Tol 6.6 7.1 5. 1 3.7 22.5

G. Project and Special Accounts

4.24 Assurances have been obtained that a Special Account for the Project would be opened by theBorrower at the Bank of Sierra Leone with an authorized amount of US$800,000 to cover eligibleexpenditures for four months disbursements under the IDA Credit and in the amount of US$350,000to cover eligible expenditures for four months disbursements under the IFAD Loan. A ProjectAccount for counterpart funds, that is, the Government's contribution in local currency, would also beopened in the name of DAFF with a local commercial bank acceptable to IDA. The Government'scontribution would be reflected in the approved annual budget and would be paid into the ProjectAccount quarterly in advance. The Coordination Unit in the DAFF would be responsible formaintaining and administering the two accounts in accordance with established accounting procedures.It would prepare estimates for quarterly cash requirements for the Project based on appraisalestimates, except where amendments are necessitated by cost increases or changes in projectimplementation and agreed with IDA and IFAD. The budgets comprising these estimates would besubmitted to IDA for approval.

H. Audit and Reporting

4.25 The Government would ensure that DAF arranges for an annual audit of the Special andProject Accounts by independent auditors acceptable to IDA and that the auditor's reports besubmitted to IDA within four months of the end of each project year. It would include a separateopinion on the use of the SOEs. In addition, it would ensure that an internal audit of the twoaccounts also be carried out. The internal audits will be reflected in quarterly statements and reportsof Project expenditures which would be made available to IDA no later than the middle of thefollowing quarter. Progress on the implementation of the ASSP would be regularly reported throughQuarterly Progress Reports. These reports would be prepared by the Coordination Unit and will bemade available to IDA two weeks before the end of the following quarter. The progress reportswould also include reporting on compliance with the procurement plans and schedules for allprocurement under the project including that carried out by other implementing agencies as well as anupdated Procurement and Processing Implementation Schedule as an attachment. A Mid-TermReview (MTR) would be carried out jointly by the IDA, IFAD and DAFF, at the end of which anaction-oriented MTR Report would be prepared. At the end of the project implementation period, aProject Completion Report (PCR) would be prepared by the GOSL no later than six months beyondthe project closing date.

I. Project Implementation

4.26 The revised ASSP would be coordinated and implemented by a Coordination Unit (CU) to beestablished in the Office of the Director-General, DAF (Annexes F, G and I). The DAF would

- 36 -

implement the component for Technology Transfer and Research-Extension Linkages and would beassisted by the Bank of Sierra Leone (BSL) for the small sub-component for strengthening RuralBanks for which the BSL would have oversight responsibility. Two of the five components would beexecuted by agencies outside the DAF with the Sierra Leone Roads Authority (SLRA) - Departmentof Feeder Roads - responsible for the Feeder Roads component of which the labour-intensive feederroads sub-component would be supervised by the ILO. Each of the project components would beimplemented in close and regular coordination with the CU through a Coordinating Committee (CC)to be chaired by the Director-General, DAF. Other members of the CC would include: the DeputyFinancial Secretary and the Director of Planning (Department of Finance, Development and EconomicPlanning); the Chief Technical Coordinator for the Project; the National Extension Coordinator(NEC); the National Research Coordinator (NRC); the Chief Agriculturist, DAF; the Chiefs of theForestry, Fisheries, Livestock, Land and Water Development, and the Monitoring, Evaluation andStatistics Divisions within DAF; the Head of the Department of Feeder Roads in SLRA; the Directorof the Development Finance Department in the BSL; the two Technical Coordinators responsible forInput Supply and Agro-Processing, respectively; the Technical Coordinator responsible for the FeederRoads component; and the Rural Financial Specialist to be located in the Development FinanceDepartment of the BOSL. Implementation of each component is described below.

4.27 Technology Transfer. Implementation would take place under the technical direction andsupervision of the National Extension Coordinator (NEC) who would report to the Director-General,DAFF through the Chief Technical Coordinator (CTC) of the Coordinating Unit for the ASSP.Procurement responsibility for the technology transfer, research-extension linkages, rural banks andCU components would rest with the procurement staff in the CU. The responsibility for preparingpolicy direction and regional work plans would rest with the Department Heads at Headquarters andwith the Chief Regional Officers (CROs) for implementation. To reach a large number of farmersand quicken the pace of technology transfer, a group approach to agricultural extension andtechnology dissemination would be pursued. This approach is based on the modified training andvisit system. The agricultural extension services of the DAF would convey extension messages to menand women farmers for improved crop cultivation technology and farm practices, postharvesttechnology and practices, natural resource conservation including the planting of trees and reducingslash and burn practices, livestock health and integration of livestock with crop cultivation, andimproved fish farming in the swamps and along the coast and its integration with farm activity in theswamps and along the coast. While extension officers would encourage farmers to organizethemselves into groups and/or associations to benefit from economies of scale in credit and input andoutput marketing, they would not get involved in the actual organization of farmers into groups. Toensure that farmers not belonging to a group are also provided extension services, front line extensionstaff would interact with all farmers.

4.28 The concept of the Model Production Programme (MPP) Village, which was also introducedduring the IADPs, with clear benefit, would be encouraged. In the MPP, the extension agent resideswithin the village assigned to his care and works closely with the target group/population on variousproduction programmes often with the assistance of NGOs. The basic benefit of the group approachis its cost-effectiveness in respect of transport and field extension staffing and in maintaining a closeworking relationship with farmers. Other important benefits include the elimination of inefficiency,and practical difficulty, inherent in implementing a system that is rigid and complex for subsistencefarmers with limited time and labour resources and the fact of such a system being more conducive tothe active participation and involvement by farmers in actual planning of their crop activities based ona crop calendar prepared by the extension officers with direct input from farmers. The crop calendarwould form the basis for subsequent training of the farmers themselves. Having been drawn up with

- 37 -

input from the participating farmers, the crop calendar would also be more acceptable to farmers andwould make for ease in implementation. For the peak season, farm households would be providedwith technical assistance in all aspects of crop production, and after harvest and in the off-seasonwould receive advice on vegetable cultivation, on improved husbandry of small ruminants, and onpost-harvest technology.

4.29 At the farm level, the transfer of technology would take place through the approximately 900agricultural instructors (Al) located in villages throughout the country; about 300 of these are assignedto donor funded projects. Typically, an Al, assisted by two to four agro-technicians, can reachapproximately 500 farm families with the extension message, and cover anywhere from six to tenvillages. 51/ At any one point in time, the Al could be in direct contact with about 10 percent ofthe farm families in areas which fall under his jurisdiction. Based on the crop calendar, extensionstaff would schedule regular fortnightly visits with farmers with the day fixed well in advance andcommunicated to the farmers concerned also well in advance. Quarterly and monthly meetings, fielddays, small plot demonstrations and weekly markets would also form an integral part of the cropcalendar and the extension schedule. A programme of extension demonstrations would take place onfarmers fields and through regular field days. The National Agricultural Extension and Tree CropsProgrammes prepared under the original ASSP, with modifications, where necessary, will serve as abroad guide for the extension demonstrations to be undertaken. 52/ Given the importance of riceas the primary staple, and given the critical need for raising food output, levels of nutrition, farmincomes and foreign exchange earnings, the thrust of the demonstration programme, as outlinedbelow, appears sound. Twenty five percent of the demonstrations will focus on rice (14 percentupland farming and upland rice technology, 16 percent for inland valley swamp rice, and 5 percentfor mangrove and boliland rice); 20 percent on rice-substitutes such as cassava and sweet potato; 10percent on maize, sorghum and millet; 15 percent on agro-processing of cassava, groundnut, oil palmand coffee; and 10 percent for tree crop rehabilitation, agro-forestry, village woodlots and use ofwork oxen.

4.30 Because of the severe cash flow constraint faced by the subsistence farmer and difficult accessby him to credit, the project espouses flexibility in the design and application of technical packageswith strong emphasis on improved husbandry. This flexibility would enable farmers, in cases wherethey are unable to adopt every recommendation of a technical package, to make an initial start in theuptake of yield-enhancing technology and progressively derive higher output and income throughmodified use of the package. An essential prerequisite for such modification would be its sanctioningby agricultural research scientists prior to the dissemination by extensiOn staff of the technology inquestion. 53/ Thus, conceivably, there could be a situation or crop season when finances mightnot permit the farmer to use the exact amounts of improved seed and fertilizer prescribed by thetechnical package. In this instance, farmers, on the advice of extension staff, could use improved

51/ To upgrade the quality of extension services, it is envisaged that the post of the agro-technician will be abolished with qualifying incumbents retrained and upgraded to thelevel of agricultural instructors.

52/ op cit.

51/ Under the IADPs, some flexibility as to the use of technical packages did exist butthis was confined to soil types and to the extent to which swamp development hadtaken place.

- 38 -

technology modified to suit their financial circumstances. Such modification would permit thecontinuation of the process of modernization and improvement in farm productivity, throughupgrading of technology, albeit at a slower pace. A gradual promotion of improved technologywould be preferable to a process of complete adoption followed by a complete dismissal of yieldenhancing technology as has been known to take place in Sierra Leone.

4.31 The technology extended to farmers would, for the most part, be intermediate input/outputtechnology to begin with. The impact, though limited would not be insignificant. For subsistencefarmers, which the ASSP is primarily designed to assist, the design of the technology package wouldbe simple and, more importantly, with respect to input use, flexible. To place improved technologywithin the easy financial reach of a large number of farmers, the design of the improved technicalpackages in respect of input coefficients would be variable within strict limits established by theresearch scientists of the agricultural research institutes. The cash-flow and financial obligations offarmers would determine the extent to which they would be able to implement a particular technicalpackage at any one point in time. 54/ The merit of this approach is that poor farmers would notbe excluded from participating in methods to increase yields, output and incomes and would have thefollowing options: (i) adoption of improved farm practices, such as correct spacing and weeding, withthe use of improved seed only; (ii) adoption of improved farm practices with the use of improvedseed and some fertilizer; and (iii) adoption of improved farm practices with the use of improved seedand the full prescription of fertilizer. In each case, the farmer would be made aware by the extensionofficers of the different levels of yield, output and income that could be expected from the flexibleapproach to the adoption of technical packages based on prevailing input and output prices. Becauseof the high cost of fertilizer relative to output price, and less than optimal fertilizer response in somesoil conditions, fertilizer is recommended as only one part of an improved package. As crop yieldsimprove, farmers would be able to graduate to higher and higher levels of technology the farm-gateprice permitting. The relatively better-off medium and large-scale farmers who could afford moderninputs in line with original recommendations would be advised accordingly and would benefitcommensurately from the resulting higher output. Soil and water conservation and otherenvironmental concerns would form an integral part of the extension message in each type ofagricultural extension and in all technical packages.

4.32 Programmes to transfer technology to farmers by other Divisions of the DAF that would berevived through the project are as follows. The priority for the Forestry Division, headed by theChief Conservator of Forests, would be to arrest environmental degradation and promote resourceconservation through sound management of the forest resource. The Division would regularize andintensify its efforts to disseminate appropriate extension messages to farmers on the adverse effect oncrop yields from slash and burn techniques. Further, it would emphasize the necessity to farmers ofplanting trees to arrest soil erosion and derive financial benefits from the fuel wood, fruit and woodfor poles that this planting could yield. The Tropical Forestry Action Plan (TFAP) containsnumerous projects and programmes which were identified at the TFAP Round Table held in Freetownin May 1990. In addition to its field extension work, the Forestry Division would focus onprioritizing these projects and programmes. Revision of the outdated Forest Ordinance of 1912(subsequently renamed the Forestry Act) would constitute a key task and would include the drawingup, by mid-term, of a legislative framework for setting and revising royalty rates based on market

54/ This is particularly relevant given that the response of improved rice varieties tofertilizer use has been observed, through adaptive research trials, to be significant butmoderate in all of the rice ecologies.

- 39 -

value, introducing market forces in the allocation and management of forest concessions, andpromoting competitive practices in the extraction and marketing of timber and non-timber forestproducts. The overall consideration in forest resource management would be governed by theprinciple of sustained yield management and its exploitation based on the economic value of wood.

4.33 A restored livestock extension service would be critical to enhancing the farmer's financialsecurity provided by small ruminants and, in circumstances of growing labour scarcity, by draughtpower as a substitute for labour in some ecologies. Accordingly, the Livestock Division of the DAFwould be strengthened by the project both at the field level and at HQs, and the acute supplybottleneck of essential drugs and vaccines for livestock health, it is envisaged, would also be eased.This would enable the veterinary staff to treat the livestock herd for fatal diseases and enable fieldextension staff to advise farmers on livestock health and husbandry. An important aspect of livestockextension would relate to the use of work oxen by farmers as a means of enhancing net financialreturns and releasing scarce labour resources for other urgent farm and off-farm economic activity.Livestock extension messages would also educate farmers on the advantages and means of integratinglivestock with crop cultivation in various ecologies and within various farming systems. Given theshortages and rising cost of labour, as well as the need for ecological balance, integrated farmingsystems would be placed high on the research agenda of the agricultural research institutes. TheFisheries Division of the DAF would be strengthened to provide extension advice on artisanal andswamp fishing and also on efficient methods for curing and smoking fish. An important source ofprotein, fish is in high demand but artisan fishermen and farmers are unable to fully exploit the vastresource along Sierra Leone's long coast line for lack of technical know how, fishing gear andequipment. Swamp fishing has great potential as a means of nutrition and livelihood but the pace oftapping this potential is limited by a lack of sufficiently tested application. While research into thetechnology for swamp fishing and its integration into the farming system is promoted, extension staffof the Fisheries Division would advise farmers on the technology which presently exists.

4.34 The Land and Water Development Division (LAWDD) has a key role to play in the patternand pace of development of the agricultural sector. Severe technical constraints which have hamperedswamp development in the past remain a serious challenge even today. The technical problemssurrounding water control and structures in swamps has been studied by the GOSL and donors but nocost-effective and practical solution has yet been found. Other serious problems in some of theswamp ecologies relate to the iron-toxicity and salinity in soils. The ASSP would strengthen theLAWDD and enable it, in consultation with the internationally recruited Swamp/WatershedManagement Expert, intensify its efforts to provide technical assistance to farmers cultivatingdeveloped swamps, carry out land capability assessments, undertake land-use planning, analyze thenumerous studies which currently exist within the LAWDD on swamp development, consolidation andmanagement. In this endeavour, the LAWDD would also ensure that methods of land clearing anddevelopment of swamps are not hazardous to the ecology concerned and that these methods andpractices are environmentally sound.

4.35 To support the efforts of all of the DAF Divisions and monitor and evaluate the results oftechnology transfer, implementation of the programmes of the remaining two DAF Divisions, namelythe Communications Division and the Monitoring. Evaluation and Statistics Division (MESD) wouldbe as follows. The Communications Division would produce audio-visual aids to facilitate the andpromote the dissemination to farmers of improved farming practices and technology by the variousDAF Divisions. These aids would include wall charts and posters, black and white photographs,graphic designs, audio-cassette programmes, brochures and booklets, quarterly newsletters, mobileagricultural slide and film shows, agricultural news coverage, public address systems, and banners,

- 40 -

the substance and design of which would be determined in conjunction with extension staff. It wouldbe important to obtain the ideas of extension officers for each type of agricultural extension and fromstaff at all levels, particularly front-line extension staff that are familiar with the training needs offarmers and the affinity expressed by them for particular training media. The MESD would focus itsefforts on the collection, collation and analysis of food and cash crop yields and production byecology and farm size for new and rehabilitated agricultural areas, for swamps newly developedand/or consolidated, the number of farmers in each circle that are initiated into adopting variousimproved technology packages, sustaining the use of these technical packages, reverting to traditionalpractices, fully or partially adopting the technical packages, the impact of adopted technology onproductivity, output and financial returns, the prices of farm inputs and output, and information withrespect to the labour market, rural financial market and input and output markets. It would also beresponsible for preparing farm and crop budgets, carrying out various types of household surveys andconducting the Agricultural Census. A United Nations Volunteer (UNV) agricultural statisticianwould be recruited to assist the MESD.

4.36 Rural Credit. The Bank of Sierra Leone (BSL) would be responsible for the implementationof the Rural Bank sub-component with the technical assistance of an internationally recruited RuralFinance Specialist and in association with the office of NEC in the DAF. Procurement of theequipment and consultant would be undertaken on behalf of the BSL by the DAF. The DevelopmentFinance Department (DFD) of the BSL would be responsible for ensuring that each participatingRural Bank arranges for the collection and transport of vehicles and equipment allocated to it. TheDFD would determine the allocation of vehicles and equipment based upon substantive work plansprepared in advance by and for each of the following six rural banks (RBs): Yoni Rural Bank andKunike Rural Bank (both in the Tonkolili District), Marampa and Masimera Rural Bank in the PortLoko District, Mattru Rural Bank in the Bonthe District, Bombali Rural Bank in the Bombali Districtand Sewama Rural Bank in the Kenema District - excluded are the Daru Rural Bank and the MoamaleRural Bank both of which are located in the Eastern Province and both of which remain closed onaccount of insecurity along the border with Liberia. The implementation plan for the sub-componentwould specify the particular technical assistance and transport and equipment needs for each ruralbank and provide a comprehensive logistics and work plan clearly showing the extent and type ofassistance that would be provided to individual farmers or farmers' groups including those located inrural areas that are relatively remote but within the vicinity of these rural banks. The DFD wouldensure that individual rural banks, helped with the technical assistance provided under the project,assess the potential demand for seasonal credit in the areas that are under the purview of each. Thiswould be achieved through close and regular coordination with the DAF to keep abreast on the paceof progress in agricultural production and processing on the one hand and rehabilitation of feederroads on the other. Based on this information, each rural bank would undertake the preparation ofquarterly work plans for lending and credit recovery operations in accordance with the DAF cropcalendar drawn-up for each ecological zone. Quarterly progress would be monitored by each ruralbank and any obstacles to progress promptly reported to the DFD for resolution in consultation withthe ASSP Coordination Unit and IDA. The Rural Finance Specialist (RFS) would be located withinthe DFD to assist with the implementation of the sub-component in accordance with his Terms ofReference. The main areas of technical assistance to be provided by the RFS would include anassessment of the rural financial sector and recommendations for increasing the operational efficiencyand financial viability of rural banks.

4.37 Input Supply and Agro-Processing. At this point in Sierra Leone's agricultural development,the institutional transition to privatized farm input supply is limited by weak demand and highmarketing costs. The reasons for these have already been discussed and pertain in the case of the

- 41 -

demand factor to the poor farmgate price and the high cost of imported farm inputs and labour, andin the case of marketing costs to weak feeder roads and poor storage and marketing infrastructure andfacilities. Implementation of this component would necessitate a careful and well-integrated jointeffort by the DAF and farmers' associations. Farm inputs and credit, once provided by the extensionofficer, either free of charge or at highly subsidized rates under the Bank-funded IADPs, will now, asrequired by the Government's policy, be left to the private sector. A reliable and cost-effective inputsupply and distribution mechanism would inevitably take time to develop. The pace of itsdevelopment and sustainability would be governed by the strength of the enabling environment forprivate sector investment as it evolves. Private distribution channels would be expected to multiply inthe process and to strengthen with anticipated improvements in transport and marketing infrastructureand better access to foreign exchange, credit and local currency. Elimination of input subsidies wouldbe integral to a strong enabling environment not only because of valid concerns with economicdistortions and economic inefficiency but also to provide the necessary adequate incentives for entryby private sector in the marketing of modern farm inputs. Because of these factors, and becausemuch time has already been lost, transitional arrangements for access by small farmers to the timelyavailability of inputs at prices more competitive than those now prevalent are necessary. Thesearrangements are outlined. Procurement of the inputs and agro-processing machinery and equipmentwould be undertaken through a services contract for the import and delivery-to-site based oninternational competitive bidding. Each of the two Technical Coordinator for Inputs and Agro-Processing, respectively, would be responsible for the procurement of items in their respective sub-components. In the implementation of the component, the Technical Coordinator for Inputs would besupported by technical assistance from a UNV Cooperative Trainer and an Expert in AgriculturalExtension, and the Technical Coordinator for Agro-Processing by two UNVs in mechanicalengineering.

4.38 In the case of farm inputs and aericultural tools and implements, deliveries would be made toselected DAF stores and depots, some of which were constructed with IDA assistance in the past. Aninternationally recruited Technical Coordinator for Inputs would, in consultation with the NationalExtension Coordinator, and through the NEC with the CROs, specify the dates by which the variousinputs were to be made available at particular locations/stores/depots for purchase by farmers. Thesedates would be determined with reference to the relevant crop calendar prepared each year by theNEC jointly with the Chiefs of DAF Divisions, CROs and farmers for each ecological zone. Thequantities of fertilizer imports provided for by the ASSP are well within the DAF's existing storagecapacity which is 20,000 tons. Purchases by farmers would be made from ten specified DAFstores/depots at predetermined prices ex-depot. Cost recovery from the sale of the inputs and farmtools and implements would be the responsibility of the accountants of the Department of Finance,Development and Economic Planning who would be responsible for recording and depositing therecovered sales proceeds into the Treasury. The methodology for pricing ASSP financed inputs isindicated in Annex D. All transactions would be conducted strictly on a cash basis. The use of thfarm inputs, especially fertilizer, would be closely monitored by extension officers and monitoringand evaluation offices assigned by the CA to particular circles - this monitoring would be part of theregular extension and monitoring activities of these officers and would be recorded by farm size andowner, the crop(s) that it would used for, the amounts that would be used for each crop and for eachfarm, and the yields and output that would be obtained for each crop and farm. It would be theextension officers that would advise farmers on the use of the inputs although the decision as towhether a farmer would purchase the inputs would rest with the farmers themselves and would bedetermined by market signals and expected financial profitability.

- 42 -

4.39 As regards the agro-processing sub-component, under the supervision of an internationallyrecruited Technical Coordinator, the crop processing machinery and equipment would be delivered tofifteen pre-specified locations. At each location, an integrated agro-processing center would beestablished by designated farmers' associations. The focus of the integrated processing centers wouldbe on the processing of paddy, cassava, maize, oil palm, groundnut and pepper depending on theagro-ecological zone and the major farm activity in the area concerned. The HQs of the agro-processing sub-component would be Makeni in the Bombali District with sub-offices located in theDAF's District HQs in the Port Loko District and in the Tonkolili, Koinadugu, Kenema, Bo, Kambiaand Moyamba Districts. The GOSL would, with the assistance of the DAF, select fifteen farmers'associations, to head each of the fifteen integrated crop-processing centers, from a list of forty-twofarmers' associations that had successfully participated in the two previous phases of the UNDP-funded post-harvest projects at the farm level. The criteria for the selection of the farmers'associations would be: (i) age of the farmers associations (at least seven years); (ii) stable record ofmembership (less than ten percent turnover in the last five years); (iii) good creditworthiness reflectedin past (last five years) and current financial accounts/records with a rural or commercial bank(s); (iv)sound financial management that could be upheld by up to date internal and external audits and anabsence of evidence pointing to corruption and wrong-doing since inception of the relevant farmers'association; (v) strong Association management skills coupled with democratic decision-making withinits membership; (vi) a clear absence of barriers to membership by women in the Association; and (vii)a good faith written agreement that the selected farmers' association will purchase the crop-processingmachinery and equipment at full cost four months prior to project completion. The crop-processingmachinery and equipment would be capitalized by the respective farmers' associations over the projectperiod. The methodology for the purchase if crop-processing equipment by the farmers associationsis given in Annex E along with a sample draft agreement for farmer association purchase of suchequipment.

4.40 Feeder Roads. The Sierra Leone Roads Authority (SLRA), through its Department of FeederRoads (DFR), would implement the feeder roads component. It would do so under the direction ofan internationally recruited Technical Coordinator for Feeder Roads (TCFR) who would be located inthe DFR and who would closely liaise with the Chief Technical Coordinator of the ASSP who wouldbe located in the Office of the Director-General, DAF. The TCFR would be responsible for quarterlyreporting to IDA through the DAF on the progress of the component overall through regular fieldsupervision. The ILO-supervised labour-intensive sub-component would be implemented by theGOSL sub-contracting with the ILO through the SLRA. The Chief Technical Advisor, ILO (based inFreetown) would supervise implementation of the labour-intensive sub-component with the help of aninternationally recruited Engineering Advisor, an ILO Trainer, a UNV -Procurement, two UNVs -mechanical engineering, and two UNVs - civil engineering. In the interest of domestic capacitybuilding, local consultants would be eligible to compete in the procurement for consultants services tocarry out detailed engineering and design. SLRA/DFR staff would receive training in procurementalong with staff in the DAF. To carry out the rehabilitation of 360 km for feeder roads throughlabour-intensive methods, small domestic contractors would be selected. A bidding process for theselection of domestic contractors, trained and certified by the ILO in labour-intensive feeder roadrehabilitation, would take place and the rehabilitation itself would be supervised by the ILO. Thework force for the labour-intensive sub-component, consisting of eight labour gang groups eachcomprising ten labourers, would carry out rehabilitation work on road sections situated on relativelyflat terrain requiring limited earth work and where the quality of roadside material was consideredsuitable for gravel surfacing. The international bidding for the remaining 170 km of feeder roadswould be handled by the Technical Coordinator for Feeder Roads who would be located in theDepartment of Feeder Roads in the SLRA. At the end of the project implementation period, the

-~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ -- ---

- 43 -

equipment procured for the ILO-supervised component would revert to the SLRA for provision offurther training in feeder road rehabilitation and maintenance.

4.41 Research/Extension Linkages. The National Agricultural Research Coordinating Council(NARCC) would liaise with the National Extension Coordinator and Chief Agriculturist, researchinstitutes, SMSs and farmers to coordinate regular visits, once every two months, to farmers fields totest and demonstrate technology previously tested only on-station. These adaptive research trialswould be managed by the agricultural research institutes in the first two years of the project and inthe last two years of the project by SMSs. This is because, in the many years of scarce budgetaryfunding which ultimately led to the collapse of the DAF's capacity to deliver basic agriculturalservices to farmers, the agricultural research institutes took it upon themselves to undertake thisfunction in the interest of the farmers. By the third year of the project, however, it is envisaged thatthe DAF would be in a stronger position to assume the lead role for carrying out the OFARdemonstration and trials. At this time, then, the agricultural research institutes would concede thisrole to the SMSs. All OFAR would be carried out on farmers' fields with their active participationbefore being made an integral part of the final extension message that would be disseminated byextension officers to farmers. The findings of the OFAR would first be analyzed by the scientists ofthe agricultural research institutes with input as required from the SMSs and then be made availableto the NARCC for review and publication. Based on the regular feedback provided to researchscientists in the agricultural research institutes by farmers through the extension service, agriculturalresearch would increasingly undertake to address effectively the technical, health, sociological andeconomic problems encountered by farmers in the use of the technology promoted and its sustainedadoption.

4.42 Coordination Unit. In accordance with the Amending Agreement for the Development CreditAgreement, and guided by the Implementation Schedule (Annex G), under the leadership of the ChiefTechnical Coordinator (CTC), the Coordination Unit would be responsible for the implementation andcoordination of the ASSP. This would necessitate a close monitoring of the performance and progressof the project throughout the project implementation period. For this purpose, the CU would workclosely with the Offices of the National Extension Coordinator, Chief Agriculturist and DAF technicaldivisions and liaise regularly with the Offices of the National Research Coordinator, the Director ofthe Development Finance Department of the Bank of Sierra Leone, the Head of the Department ofFeeder Roads within the Sierra Leone Roads Authority. The officials heading these offices would, inturn, work closely with the foreign and local technical assistants recruited to enhance theimplementation of the various components.

4.43 The Coordination Unit would be responsible, on an on-going basis, for:

(i) undertaking the procurement for the technology transfer, rural banks and research-extensionlinkages components and monitoring the performance of procurement for the input supply andagro-processing and feeder roads components that would be the responsibility of the respectivetechnical coordinators for input supply, agro-processing and feeder roads;

(ii) project performance reporting, and financial reporting and audit, as required and agreed, foreach component of the project; and

(iii) reporting on the proceeds from cost recovered, accompanied by evidence of deposit of theseproceeds into the Treasury, from the sale of all project financed inputs and the capitalizationof the crop-processing equipment.

- 44 -

It would also ensure, as agreed that:

(iv) by each February 15, the prices for project financed inputs, including that of fertilizer withthe agreed relevant level of subsidy, are posted at the designated DAF input stores/depots;

(v) the parity price of rice is reviewed each quarter;

(vi) the farmgate and consumer price of rice is monitored and posted; and

(vii) the producer price for coffee and cocoa is reviewed and announced.

Also, in accordance with the implementation schedule in Annex F, the CU would ensure:

(viii) the preparation, by each January 31, of an annual agricultural growth plan, jointly, by theHeads of the Technical Divisions, the NEC and CA in close consultation with theinternationally recruited Agricultural Policy Planner;

(ix) the preparation, by each January 31, of an annual, and monthly, work programme, consistentwith the annual agricultural growth plan and consisting of annual technical and operationalwork plans, and procurement plans and schedules, for: (a) the DAF, by technical division atthe headquarters level, and for each district and regional office; (b) each rural bank; (c) eachDAF store/depot from which ASSP financed inputs would be sold to farmers; and (d) each ofthe 15 farmers associations that is selected to participate in the project; and

(xi) the preparation, by each March 31, the annual recurrent and public investment budgetproposals for the DAF, by each technical division, and NARCC; and

(xii) a good understanding of the rationale, by each March 31, of annual recurrent and publicinvestment proposals for: (a) the DFD for overseeing the rural banks; and (b) the DFR in theSLRA for the maintenance and new construction of feeder roads.

At mid-term and at the end of project implementation (by project closing), the CU would ensure:

(xiii) the completion of the a Project Completion Report assessing the achievements andperformance of the project with emphasis on implementation performance and attainment ofproduction, policy, institutional and infrastructure objectives.

4.44 The CU would also monitor the progress of the Study on the Price and Trade policy Aspectsof Rice as well as the preparation of the Action Plan for the divestiture of DAF's oil palm estates(plantations and mills) and ensure their timely completion as prerequisites to policy action. Inaddition, it would ensure the timely completion of the Manpower Survey, DAF's Three Year TrainingProgramme and the revised National Agricultural Research plan (NARP).

J. Technical Assistance. Studies and Training

4.45 Given the very weak absorptive capacity of sector institutions, the project would finance 708man months of technical assistance, of which 35 percent would be local technical assistance, anessential study for the rice sub-sector and substantial in-country training for training men and womenfarmers, trainers of trainers and extension officers, staff in sector institutions and rural bank loan

- 45 -

officers and managers. As regards technical assistance, as is shown below, by component, the feederroads component accounts for 40 percent of the foreign technical assistance and the input supply andagro-processing component a little over 30 percent. Of the remainder, almost half is accounted for bytechnical assistance for project coordination and the rest for technology transfer including research-extension linkages. The fact that the technical assistance is fairly evenly spread across components is

Technical Assistance(man months)

Technologv TransferAgricultural Policy Planner 24Swamp/Watershed Management Specialist 24UN Volunteer - Agricultural Statistician 48Rural Finance Specialist 18

Input Supply and Aero-ProcessinzTechnical Coordinator for Inputs 48Technical Expert in Input Marketing 24Agricultural Extension Specialist 24Technical Coordinator for Agro-Processing 36UN Volunteers (2) - Mechanical Engineering 72

Feeder RoadsTechnical Coordinator for Feeder Roads 48Engineering Advisor,ILO 36Trainer, ILO 18UN Volunteer - Procurement 36UN Volunteers (2) - Mechanical Engineering 72UN Volunteers (2) - Civil Engineering 72

Proiect CoordinationChief Technical Coordinator, ASSP 48Financial Controller 48

indicative of the overall serious weakness in implementation capacity of sector institutions.Accordingly, almost two-thirds of the foreign technical assistance has been allocated for execution ofthe project with the proviso that on-going training for counterpart staff by technical assistancepersonnel would be a foremost consideration in the regular and rigourous performance evaluation ofthe technical assistance. See Annex H for Terms of Reference. Based on the severe setback to sectorinstitutional capacity and a private sector that has yet to firmly establish itself in roles earlier playedby the public sector, the provision for technical assistance appears to be strongly justified.

4.46 The ASSP-funded study on the Price and Trade Policy Aspects of Rice is critical because ofGovernment's concern with a food import bill that has escalated, insufficient food security, decliningreal farm incomes and increased malnutrition. Given the predominance of rice in the macro and ruraleconomy of Sierra Leone and the fact that the rice sub-sector has for decades been unable to attaintechnical and economic efficiency, and the imperative for it now, under a liberalized exchange rateand trade regime, to compete effectively as an efficient import substitute creates an urgent need for asound Government policy for rice. The study would examine the impact of the liberalized tradepolicy on producer incentives, assess its economic costs and benefits, and present various policyoptions to the Government for attaining food security while maximizing net financial returns to thefarmer and net economic benefit to the country. This would assist the Government in making the

- 46 -

necessary trade-offs at the policy level by acknowledging the economic costs, including environmentalcosts, and incorporating these trade-offs in a strategy for growth.

4.47 To ensure the effective delivery of basic agricultural services by field staff, the project wouldfinance training for all Divisions of the DAF in accordance with the long-term training programmedesigned by the Staff Development and Training Unit of DAF. The programme emphasizes thebuilding-up of a core of trained trainers in all agriculture disciplines through monthly in-servicetraining of agricultural instructors (AIs), regular training of Subject Matter Specialists (SMSs), pre-service training at the certificate and degree levels, and the training of men and women farmers andartisans. To improve the level and quality of extension advice, it is envisaged that all agro-technicians would be phased out and upgraded to agricultural instructors through intensified training.The training itself would comprise practical training with an opportunity for trainees to gain someexperience in teaching short courses under supervision. Follow-up training would include theintroduction of additional courses as needed by individual Divisions of the DAF and would be distinctfrom training in the field provided by specific Regional Offices and agricultural development projects.Over the four year implementation period, the project would make a provision for the followingtraining: 60 Subject Matter Specialists and Agricultural Instructors through regular quarterly trainingand an additional 160 through monthly training; 3,520 Agricultural Instructors through short courses;40 B.Scs and 40 M.Scs; and 4,000 farmers that would be directly trained through field daysorganized by the agricultural extension services of the DAF and many more through demonstrationeffect and cumulative impact. Assuming that each farmer follows-up with five to ten farmers, as hewould be expected to do, anywhere from 20,000 to 40,000 farmers and more would receive extensiontraining in the main areas of agricultural extension. This compares favourably with the successfulprogramme of extension advice funded by the IDA-financed Eastern IADP III which was able toreach 16,000 farmers with extension advice.

V. PROFITABILITY. ENVIRONMENTAL FACTORS. BENEFITS AND RISKS

A. Profitability

5.1 Intensive Versus Extensive Cultivation. Sierra Leone has significant unleashed potential inthe production of both food and cash crops, the full realization of which is possible only in the longerterm. This does not rule out, however, substantial increases in output which can be achieved in theshort to medium run through intensive rather than extensive cultivation. High investment costsassociated with new swamp development, and difficult access to and availability of rural credit,reduce greatly the scope for new swamp development by individual farmers. Similarly, large areaexpansion on the uplands is limited by the scarcity and high cost of labour. In the immediate short-term, therefore, production increases are most likely to emanate from inland valley swamps whichhave already been developed and consolidated and also, though to a far lesser extent, from existingupland farms. This would be achieved through fuller use of existing technology and improved cropand farm husbandry. Specifically, the technology promoted by the project is intermediate technologyconsisting of high yielding seed varieties, the use of fertilizer and manual cultivation.

5.2 The costs of farm labour and mechanization in the cultivation of rice in Sierra Leone havelong been reported to be high. 55/ Now, with exchange rate devaluation and the removal of the

55/ See supervision reports prior to the suspension of disbursements.

- 47 -

almost 100 percent subsidy on mechanization services (instituted in the 1970s), the cost of mechanizedrice cultivation has risen even further and sharply. Regardless of the rice ecology, unleashing thepotential for rice is, thus, a costly proposition, especially for the subsistence farmer. For landpreparation alone, the cost of labour and/or mechanization is almost prohibitive. The wage rate is farin excess of the minimum wage that is negotiated every two years. Even though the prevailingminimum wage is at least Le 74 per day (Le 60 about three years earlier), in practice, the farmerpays anywhere from Le 100 to Le 200 for brushing in addition to Le 100 worth of food and anotherLe 150 or so as an allowance for smoking and liquor. The number of man days for land preparationin developed inland valley swamps can easily add to 250 man days and, in the case of undevelopedinland valley swamps, to as much as 1,076 man days (approximately 400 man days for land clearingand 676 man days for earthworks). Upland soils, generally lower in fertility than swamps, havebecome less fertile through shifting cultivation and a fallow reduced from about from 12-20 years toabout seven. Poor farm cash flow, insecurity of tenure and difficult access to credit have inhibitedefforts by farmers to replenish soils. The problems to be surmounted for swamp rice cultivation arequite different from those confronted by farmers on the uplands. In the cultivation of mangroveswamp rice, the clearing of mangrove forest, particularly of the lethal and recurring 'kire kire' weedin tidal mangroves, is an essential but highly tedious and labour intensive activity which frequentlyforces the farmer to pay an exhorbitant wage for hired labour. In the case of inland valley swampric, there are several levels of sophistication to which swamp development can be pursued. For thepurpose of adopting intermediate technology on inland valley swamps, however, the minimumrelevant prerequisites would include complete de-stumping, partial levelling, and the construction ofdykes and contour bunds for partial water control. These activities require considerable amounts oflabour resources and timely technical assistance. Demanding also of labour and tractor services forland preparation are the low saucer-shaped swampy grasslands referred to as bolilands. Finally,tractor services have become essential to land preparation in the riverain grasslands found in southerncoastal areas where labour scarcity is acute and where the labour that is available labour is fullyemployed to deal with heavy weed infestation.

5.3 Technology Considerations. A number of improved technical packages and recommendedpractices exist in Sierra Leone for the main food crops. These have been formulated over the yearsfor each major food crop by the Adaptive Crop Research and Extension (Acre) Project funded byMAF/USAID and published as Crop Production Guides by MANR-USAID-NUC. As is evident fromthe section below, for rice, a number of high yielding rice seed varieties may be relevant in thecontext of more than one ecology. Some of these varieties are of short duration and others of a morelong duration. For instance, on the uplands, Rok 16 takes between 120 and 130 days to mature, Rok3 from 140 to 145 days, and Lac 23 from 125 to 135 days - most of these varieties are fairly resistantto the major rice diseases in the uplands. Similarly, for the lowlands, Rok 5 takes from 130 to 145days to mature, Rok 6 from 140 to 145 days, Rok 10 from 170 to 190 days, CP 4 from 175 to 200days, BD 2 from 130 to 150 days and Indo-China Blanc from 200 to 220 days - where iron-toxicity isa problem, Gissi 27, Suakoko S, Adny 301 and GD 28 are recommended. Fertilizer response, basedon adaptive research trials, is reported to vary substantially ranging from being very good, good, fairor poor depending upon soil conditions. Overall, the response is reported to be significant butmoderate in all of the rice ecologies.

- 48 -

5.4 The main improved seed varieties for rice by rice ecology are as follows:

Uplands Rok 3, Rok 16, Lac 23 (red), Rok 17, Rok 18, Rok 19, Rok 20Inland Valley Swamps Tos 78, Rok 12, Rok 14, Rok 3, Rok 5, Rok 6, Rok 10, CP 4, Rok 24, Rok 25, Rok

26, Rok 27, Rok 28Boliland Rok 3, Rok 5, Rok 10, CP 4, Rok 29, Rok 30Mangrove Swamps BD 2, Rok 5, Rok 10, CP 4, Rok 9, Rok 21, Rok 22, Rok 23Riverain Grassland Rok 5, Rok 3, CP 4, Rok 10, Indo-Chine BlancIrrigated Lowland Tos 78, Rok 14, Rok 6, Rok 31, Rok 32, Rok 33

Improved varieties also exist for crops other than rice. Thus, for cow pea, the most common varietycultivated in the North is the "Temne" or "Musaia" and in the South, "Tabe" or "Akara". Improvedcow pea varieties from the IITA include Improved Red (1190) which is recommended for the wet anddry season as is Improved White (4557), Improved White (3236) for the dry season and Ife Brownfor the wet and dry season. Improved cassava varieties include Rocass 1 and Nucass 1 and in thecase of maize, the recommended varieties are Western Yellow, TZSR Yellow, TZPB White (110-120days to maturity) and Poza Rica 7931 (90-95 days to maturity).

5.5 Analytical Assumptions. Given the importance of rice as a staple food, the fact of its strongmacro economic bearing, and because it is a crop on which fertilizer use is (given the appropriateincentives) most likely to be used, the profitability analysis focusses on rice cultivation in inlandvalley swamps which, as alluded to above, offer good prospects for increases in yields and output inthe short to medium term. This is not to understate the increase in productivity and output that canensue from the application of improved technology to other food and cash crops indicated in ChapterIII. The profitability analysis is based upon a comparison of the 'without' and 'with project' situationat the farm level assuming (a) no reduction in fertilizer subsidy and (b) elimination of the fertilizersubsidy. The sensitivity analysis considers the gradual elimination of the fertilizer subsidy along withchanges in other variables. Crop budgets for upland rice and inland valley swamp rice, 'with' and'without project', were prepared for intermediate levels of improved technology.

5.6 In view of the complexity of the rural labour market, an observation of the labour coefficientfor traditional and improved technology, both for upland and swamp rice (on swamps alreadydeveloped), may be noted. Invariably, the upland farm acts as the primary source of food securityfor the farm household and is given priority by the farmer in the allocation of family labour. Sincethe size of the farm household can vary a great deal between regions, locations and during differentmonths of the year, for the sake of this analysis, the assumption of the availability per hectare offamily labour at five adult members has been made. Given a farm work-week generally comprisingsix days and the crop season ranging between five and six months, the total availability of familylabour per hectare adds to approximately 720 man days per year. As much as 80 percent of thisfamily labour time is spent for work on the upland farm for cultivating rice, cassava and vegetables.There is some division of labour with the men concentrating on hunting, fishing and fencing and thewomen on collecting palm fruit and fuel wood. The remaining 20 percent of the farm household'stime, that is, 144 man days is available for swamp rice cultivation. This is approximately 65 percentof the estimated 220 man days per hectare required for swamp rice cultivation on swamps (alreadydeveloped) leaving an unfilled labour requirement of 76 man days.

5.7 The input coefficients for improved rice seed and fertilizer in the uplands and in inland valleyswamps are as follows: on the uplands (selected areas where soil degradation is not severe and can bereversed): 70 kg. of improved seed per hectare and 5 bags SSP, 3.75 bags urea and 1.5 bags MOP;and in inland valley swamps (selected swamps where the need for fertilizer has been established) 70

- 49 -

kg. of improved seed and of 2.5 bags (50 kilogrammes per bag) of 0-20-20 per hectare and half a bagof urea. With the use of improved seed, paddy yields on developed inland valley swamps canincrease by about 67 percent and on the uplands by 30 percent with the application of fertilizer.5&/ In the 'with project' scenario, the rice yield in inland valley swamps is expected to increasefrom 2.1 tons to 3.5 tons and on upland farms from 0.7 tons to 1.1 tons. A conversion rate of 67percent has been assumed for milled rice.

5.8 Results of the Profitability Analysis. The analysis shows that improved technology for ricewhen used in the inland valley swamps (developed) could lead to favourable financial returns but notnecessarily when used on the uplands where the soil degradation is severe. It may be noted,however, that economic profitability is strong and positive for the application of improved technologyboth in inland valley swamps (developed) and on the uplands. For inland valley swamps, acomparison of the 'with' and 'without project' scenarios shows that financial returns Oeones) perhectare, at the farm level, assuming the existing level of subsidy, more than double in the 'with

Financial and Economic Profitability for Rice at the Farm Level(with project and with current levels of fertilizer subsidy)

(percent change)

Inland Valley Swamps UplandsFinancial Economic Financial Economie

Leoneslhectare + 152 +77 -127 +40Leones/total labour + 94 +61 - 28 +44Leones/kilogram + 52 + 6 - 42 -12

Financial Profitability for Rice at the Farn Level(with project and with elimination of fertilizer subsidy)

(percent change)

Inland Valley Swamps UplandsFinancial F;niial

Leones/hectare -11 -111Leones/total labour - 9 - 78Lcones/kilogram -12 - 112

project' scenario, almost double when profitability is measured by returns to total labour and increaseby one and a half times when profitability is measured by returns per unit volume of output. Withelimination of the fertilizer subsidy, the financial profitability is only slightly weaker in the case ofinland valley swamps: it still shows a doubling for financial returns per hectare, a 76 percent increase

56/ That most farmers have access to improved rice seed may be attributed to years ofrice research and testing carried out by the Rokupr Rice Research Station as well asthe intensified introduction and dissemination of improved seed by Bank and donor-financed IADPs in the past. Many farmers have been able to meet their improvedseed requirements by multiplying improved seed. However, with the exception ofquality control exercised by the Seed Multiplication Project for the seed multiplied byits contract growers, quality control and formal seed certification is lacking.

- 50 -

for financial returns to total labour and a 34 percent increase in financial returns per unit volume ofoutput. The case for a gradual reduction of the fertilizer subsidy versus immediate elimination restson the current price of fertilizer relative to farm incomes the levels of which have, over more than adecade of prolonged economic decline, fallen sharply in real terms. This has prevented the urgentlysought improvement in rice yields in the inland valley swamps that fertilizer use can enable and soalso the reduction in the food import bill and malnutrition, and take-off of the subsistence farmer andthe farm economy.

5.9 Sensitivity Analysis. A sensitivity analysis was carried out for financial profitability at thefarm level for the cultivation of rice in developed inland valley swamps and the uplands with respectto changes in the paddy yield, the farmgate price of paddy and the wage rate. The results show that

Sensitivity Analysis for Rice(percent change)

yield farnmate price wage rate-10% -10% +10%

Inland Valley SwampsLeoroheshctare -92% -14% -3%Leones/total labour -11% -13% -3%Leones/kilogram - 3% -11% 0%

UvlandsLeonesJhectare -54% -54% -24%Leones/total labour -39% -37% 0%Leones/kilogran -70% -53% -24%

for inland valley swamps, the financial returns are highly sensitive to reductions in yield and aresensitive, but to a lesser extent, to the farmgate price of rice paddy. In the case of the uplands,financial profitability is adversely affected both by a reduction in yield and a reduction in the farmgateprice of rice paddy. In order that financial profitability in the uplands, as measured by leones perhectare, approaches levels that can be obtained in the inland valley swamps, the farmgate price of ricepaddy would have to increase by 35 percent and, if financial returns are measured by per unit volumeof output and by total labour, the farmgate price would need to double and increase five-fold,respectively. With the elimination of fertilizer subsidy, the returns to labour on the uplands arehighly sensitive to both a ten percent reduction in the yield and a ten percent reduction in thefarmgate price of rice, each showing a sharp fall of about 170 percent.

B. Environmental Factors

5.10 No adverse impact on the environment is expected from the revised ASSP. The cultivation ofswamps already developed and consolidated would be improved and the development of new swamps,which can have negative environmental consequences, would not be pursued. Except for fertilizer, nocrop chemicals would be financed by the ASSP. The drugs and vaccines to be imported for livestockhealth and the chemicals for the land and water development division would consist of chemicals thatare generally accepted and used. Tree planting, beyond the substantial tree crop (oil palm) cultivationenabled by the project, would be deliberately promoted by extension officers. Negativeenvironmental impact from the slash and burn techniques widely practiced on upland farms would beminimized through appropriate extension messages to farmers in particular and to the rural

- 51 -

community at large. Environmentally sound methods for feeder road rehabilitation would beemployed to prevent and combat soil erosion, ensure proper drainage, etc.

C. Benefits

5.11 The project would improve the incentive framework for rice, reduce mortality rates in thelivestock sub-sector, reduce post harvest losses and marketing costs, enhance the capability of theDAF to provide basic agricultural services to farmers, plan and monitor sector strategy, strengthenbudgetary planning and management, expedite the privatization of its oil palm assets, and ensure fullcost-recovery of inputs and agro-processing equipment. The labour-intensive sub-component forfeeder road rehabilitation would provide food and rural employment in the post harvest months whenfood and income are scarce. Supported by important policy reforms, the redesigned project wouldlead to substantial output, income and nutritional benefits. By the end of the four yearimplementation period, rice output is expected to increase by more than 55 percent per year.Additional benefits from new oil palm planting would, given the gestation period, emerge moretowards the end of the project period and would continue well into the long term. The averageforeign exchange savings from reduced rice imports are estimated, in 1992 US Dollars, at aboutUS$43 million per annum and incremental earnings from the expected seven-fold increase in palmkernel production of at least US$2 million. Financial returns to farmers are also expected to increasesubstantially: for inland valley swamp rice, financial returns to total labour would rise by more than65 percent initially and are expected to increase further in each successive project year provided thepolicy and incentive framework is conducive to the farmer and is maintained. Given that the primaryfocus of the project is on the creation of an enabling environment for private sector decisions andproduction in the agriculture sector, an overall economic rate of return (ERR) is not applicable - theERR for the feeder roads component is at least 15 percent. The prospects for the project beingsuccessfully sustained are strong given its considerable emphasis on training a large number of subjectmatter specialists, front-line extension officers, men and women farmers, managers and loan officersof rural banks, and university degree students in agriculture.

D. Risks

5.12 An overall risk to the project is that Government may not stay the course of the adjustmentprogramme, that the security problem along the border with Liberia may persist and that the on-goingcivil strife may drag on. While the project cannot address this overall country risk directly, an efforthas been made to ensure that the timing of ASSP actions is synchronized with that of the macroeconomic and structural adjustment reforms. The risk from economic disruption in the principalcoffee and cocoa producing areas in the Eastern and Southern Regions bordering Liberia has beenminimized by limiting project activities to areas outside the geographical purview of these borderdisturbances until normalcy is established. The main project-specific risk is that farmers mayconsider it unprofitable and unfeasible to adopt improved technology or sustain its use because ofweak rural financial institutions and because of the void created by the public sector relinquishing itsrole in the import and distribution of modern farm inputs - overcoming both the weakness and voidwill inevitably take time. In the meantime, the risk from the absence of dependable private sectormarketing channels has been addressed through providing for contract services and technicalassistance, and that of inability of subsistence farmers to obtain credit from rural banks, technical andlogistical support for strengthening selected rural banks has been included. The transition tocompetitive pricing and private sector marketing would be further reinforced through a deliberate andcareful review and design of extension messages that would encourage farmers to group together and

- 52 -

derive economies of scale in the procurement of inputs, marketing of output and in the securing ofcredit.

VI. AGREEMENTS REACHED

6.1 Agreements have been reached with the Government on the new design of the project and themajor policy and institutional actions that would be required and that are being sought. These actionsare key to the successful fulfillment of the objectives that would be pursued under the project. Statedbelow are the main actions to which agreement with the Government has been reached:

A. Policy Actions:

(i) phased elimination of the subsidy on fertilizer with no more than 60 percent subsidyon landed cost ex-depot effective February 15, 1993, no more than 40 percenteffective February 15, 1994, no more than 20 percent effective February 15, 1995,and zero subsidy effective February 15, 1996 and agreement that the fertilizer pricewould be announced no later than February 15 each year after prior review andagreement with IDA;

(ii) the implementation and maintenance of an organization and staffing plan for DAFagreed to with IDA;

(iii) implementation, by October 1993, of an appropriate price and trade policy frameworkfor rice based on the recommendations of the Study on the Price and Trade PolicyAspects of Rice;

(iv) preparation of an action plan by August 15, 1993, for the divestiture of DAF's oilpalm plantations and mills;

(v) agreement with IDA, annually, on the pricing for farm tools and implements, oil palmseedlings, and polybags and wire collars for these seedlings, and on user charges forthe agro-processing equipment; and

(vi) a review each April of the prices of coffee and cocoa and their announcement no laterthan each end May; prices would not be less than 60 percent of the FOB price.

B. Institutional and Other Actions:

(i) revision of the DAF Manpower Survey and the preparation by October 31, 1993 of aThree Year Training Programme for DAF staff, to be updated annually by each endJanuary;

(ii) a revision of the Agricultural Research Plan by January 31, 1994;

(iii) the consumer and producer price of rice would be regularly monitored by the DAFthrough its MESD and posted at the village level - the wholesale and retail price ofrice at the main urban and local consumption centers would be monitored everyfortnight and posted at the village level with no more than a two week lag and the

- 53 -

farmgate price of rice would be similarly monitored in the main rice ecologies inselected areas of inland valley swamps, mangrove swamps, riverain swamps andbolilands and would be similarly posted;

(iv) the following would be made available to IDA (a) no later than each end January,technical work plans including procurement and implementation design and schedulesfor each DAF Division and Unit and for each component of the revised ASSP, andfor the feeder roads component, DOW/SLRA technical work plans which willincorporate environmental mitigation measures; (b) no later than each end March,proposals, by each DAF Division and Unit, for the recurrent budget and PublicInvestment Programme prior to submission to the DFDEP; and

(v) a Mid-Term Review would be carried out no later than December 1, 1994 and, tofacilitate the mid-term review, a progress report on project execution would beprepared no later than September 31, 1994; and

(vi) a Project (Implementation) Completion Report would be prepared within six monthsof project closing.

C. Actions for Project Start:

(i) formal- submission to IDA of the annual audit reports for the project years before thesuspension of disbursements;

(ii) conclusion of formal implementation arrangements between the DAF and the SLRAfor the feeder roads component, and between the DAF and the BOSL for thecomponent on rural banks;

(iii) agreement upon the Terms of Reference for the technical assistance positions, theStudy on the Price and Trade Policy Aspects of Rice, and Action Plan for theprivatization of DAF's oil palm plantations and mills;

(iv) identification of procurement and accounting staff for the Coordinating Unit andcounterpart staff for the input and agro-processing component;

(v) agreement upon the membership of the Coordinating Committee for the ASSP and forthe Committee for Agricultural Producer Incentives; and

(vi) agreement upon the feeder road links to be rehabilitated, the DAF stores to be utilizedfor the sale of ASSP financed inputs, the list of farmers associations from whichfifteen would be selected to establish and operate the rural integrated processingcenters, and the rural banks to be assisted.

AF4AGNovember 1992

- 54 - ANNEX A

SIERRA LEONE

AGRICULTURE SECTOR SUPPORT PROJECT

MATRIX OF POLICY AND INSTITUTIONAL ACTIONS

Action Under Oriainal ASSP Current Status of Action Action Under Revised ASSP

Institutional Develooment

reorganization of the MANR achieved although problems assurances have been given that the DAF will(recently renamed Department with management functions and maintain an organizational structure andof Agriculture and Forestry, decentralizationwere reported staffing plan agreed to with IDA as a ProjectDAF); at the time; start-up action; in particular, these changes

focus on the separation of the technical andacdninistrative functions at DAF and on measuresto strengthen the effectiveness ofdecentralized decision-making;

reaLigrunent of staff within IADP staff absorption into the revisions to the Manpower Survey, reflectingMANR; MANR was accomplished and a changes since 1987, will be made and

manpower survey prepared; implemented by DAF, no later than July 31,1993, after consultation with IDA;

integration of IADPs into IDA-funded IADPs were using the new organizational structure in theMANR; integrated into the MANR but DAF, the ASSP will enhance the pLanning,

other donor-funded projects coordination and implementation capacity forhave not so far been agricultural development plans, programmes andintegrated; projects for the sector as a whole, beyond the

ASSP, including the gradual total integrationof ail IADPs;

privatization of Daru Oil Palm as had been agreed, the an Action Plan, including a fresh evaluation ofConpany (DOPC); National Oil Palm Company the oil palm asset comprising the oil palm

(NOPC), a joint venture plantations and mills at Daru and Gambia-company, was formed to take Mattru, will be prepared by June 30, 1993 forover the operations of DOPC. the divestiture of the two oil palm estates inSubsequent efforts to whole or in part;privatize the company and/orpursue professional managementhave not succeeded;

Oterationat I wrovements

fifty percent reduction in only 12 percent reduction in staff reductions recommended by the forthcomingreal terms of daily wage real terms was achieved by exercise on civil service reform (an agreedexpenditures within MANR; Mid-Term Review; reform under the Reconstruction Import Credit)

will be assured through the work plans andbudgetary proposals, as agreed with IDA, willbe reviewed each end March;

establishing within MANR a the Unit was set up and a the training and evaluation process will beStaff Development and Training draft evaluation system was compLeted and refined through the regularUnit and a personnel drawn-up; assessment of the work plans of the Staffevaluation system; Development and Training Unit in accordance

with the organization and staffing structureagreed with the IDA;

completion of a National approved by MANR; revision, by no later than July 31, 1993, ofAgricultural Training the Manpower Survey, to assess theProgramme; availability, within DAFF, of professional,

manageriaL and technicaL skills in relation tothe skills-mix required for sector growth anddevelopment; and, based upon this revisedManpower Survey, the preparation of a ThreeYear Training Programme to be updated each endJanuary;

- 55 - ANNEX A

SIERRA LEONE



Action Under Original ASSP Current Status of Action Action Under Revised ASSP

Operational Imrovements(contd.)

strengthen research and accomplished, although funding National Agricultural Research Plan to beextension through the remains a problem; revised for strategy and focus no later thanpreparation of a National January 31, 1994 after proposals for itsAgricuLtural Research Policy revision are submitted to IDA no later thanand Plan (NARPP) and the September 30, 1993; and as agreed with the IDAestablishment of a NationaL on start-up actions for the Project, theAgricultural Research National Extension Coordinator has been locatedCoordinating Council (NARCC) in the Office of the Director-General, DAFF andand the posts of the National the minimal staffing of NARCC has also beenResearch Coordinator and the accomplished as a Project start-up actionN a t i ona l Extension before the resumption of disbursements;Coordinator;

strengthen planning, except for a draft report for the main operational divisions of DAFF will bemonitoring and evaluation regional work pLans other provided logistical support and technicalservices through preparation objectives were not completed; assistance as required to enable the transferof work plans by region and of technology to farmers based on technical andannual operational plans, operational work plans for the Headquarters andidentification of projects in Regional Offices to be agreed with IDA;line with sector policy forpublic investment programme, po licy issues will be assessed by the Office ofpreparation of a policy issues the Director-General, DAFF in whose office thepaper, and preparation of a agricultural policy planner will be located;design and format for monthly this Office will also address matters withand quarterly reporting respect to the identification and coordinationsystems by region; of projects;

as agreed with the IDA on the organizationalstructure, the Monitoring, Evaluation andStatistics Division (MESD) wi ll be strengthenedunder the ASSP and its work progra_m and thedesign of the reporting questionnaires andformats will be reviewed in detail each endJanuary along with the work plans of each DAFFdivision and unit;

for water resources accomplished; however, at some as agreed with the IDA, as a start-up action,development, the establishment stage, the IDU was placed the IDU has been restored to the LWDD;of an Irrigation and Drainage within the Agriculture (Crops)Unit (IDU) in the Land and Division with no serious the LWDD would receive technical and logisticalWater Resources Development rationale; support through the ASSP; its current technicalDivision (LAWDD); and advisory services to farmers will be

subject to an initial detailed review withtechnical assistance provided under the ASSP,no later than January 31, 1993, and subsequentregular reviews of technical work plans for theMAFF divisions and units;

Aaricultural Pricing. Taxationan w^des

formalization of an Inter- accomplished; however, the Terms of Reference for the Committee, nowMinisterial Conmiittee on problems with setting the renamed the Committee on Agricultural ProducerAgricultural Pricing; producer price for coffee and Incentives (CAPI), have been redrafted and

cocoa in a liberalized agreed with the IDA to reflect the economic andexchange rate and trade regime institutional circumstances of a liberalizedare reported, and those for exchange rate and trade regime;rice at farmgate have proved,to be unremunerative; the policy impact of price and trade policy in

the coffee, cocoa and rice sub-sectors will beassessed by this Committee and technicalassistance for formulating policy proposals (insupport of the liberalized prices) on producerprice incentives for coffee, cocoa and rice

- 56 - ANNEX A

SIERRA LEONE



Action Under Original ASSP Current Status of Action Action Under Revised ASSP

will be provided by the AgricuLturat PolicyPlanner to be based in the DG's Office as hasbeen agreed with the IDA;

Asricultural Pricina. Taxationand Subsidies (contd.)

phasing out of all input some progress was made on the elimination of fertilizer subsidy throughsubsidies, incLuding reduction of input subsidies a scheduLe for phased reduction: no more thanfertilizer subsidy which was including fertilizer but this 60X subsidy effective February 15, 1993, noto be reduced to 10 percent by has not been maintained nor more than 40 percent subsidy effective FebruaryJune 30, 1987; consultation have further reductions been 15, 1994, no more than 20 percent effectivewith IDA prior to announcing pursued; February 15, 1995 and zero subsidy effectivefertilizer price; February 15, 1996; as agreed, IDA will be

consulted on the price of fertilizer prior toits posted announcement each February 15;

establishment of Pricing and accomplished through the the ASSP will monitor and enforce the agreementMarketing Section in MANR in establishment of the Pricing reached between the Goverrnment and the IDA onSeptember 1984 for and Marketing Section within the adjustment programme and the Reconstructionrecomnendation and review of PEMSD of MANR; Import Credit for maintaining coffee and cocoaagricultural prices (including prices at levels not less than 60 percent offloor prices), study on the the prevailing FOB price; these prices will beliberalization of export revised annually each June and as my bemarketing, and privatization necessitated by major developnents on theof rice imports; world;

for rice, a Rice Policy will be iwplemented byOctober 31, 1993 taking into account therecommendations of the Study on the Price andTrade Policy Aspects of Rice to be funded bythe ASSP and completed by April 30, 1993;

the consumer and producer price of rice will bemonitored and published monthly by the MESD asfollows: the wholesale and retail price will becollected every fortnight at the main urban andlocal consumption centers and will be posted atthe village level with no more than a two weeklag; and in selected areas in the main riceecologies.

Feeder Rod

(none) (none) about 530 km of feeder roads in agriculturallyproductive areas will be rehabilitated, 68percent through labour-intensive methods ofproduction; this will enhance esployment andincomes in the 'hungry season;' an agreementbetween the DAF and the Sierra Leone RoadsAuthority (SLRA)/International LabourOrganization (ILO) (which will supervise theioplementation of the labour-intensiverehabilitation) has been drawn up as a start-upaction and is acceptable to IDA;

Rural Banks

Bank of Sierra Leone (BSL) to accomplished; eight rural the ASSP will provide logistical and technicalestablish a pilot rural bank banks established (of which support to six rural banks which are fullyat Mile 91, and contribute 50 two are temporarily closed due operational and which have been agreed to withpercent of the initial capital to the disturbances along the IDA; two newly opened rural banks have beenof each new rural bank to border with Liberia) and two substituted for the two located In the troubledprovide Le 600,000 interest- are under construction; eastern province bordering Liberia which remainfree loans for 10 years after temporarily closed; an agreement, acceptable toconcurrence with IDA; the IDA, between the DAF and the Bank of Sierra

- 57 - ANNEX A

SIERRA LEONE



Action Under Oriainal ASSP Current Status of Action Action Under Revised ASSP

Leone has been concluded as a Project start-upaction;

Inut SUPDlV and Aaro-Processii.

(none) (none) agro-processing equipment Located at fifteenIntegrated Crop Processing Centers wiLL be madeavailable to fifteen bona fide farmers'associations to be selected by the DAFF,satisfactory to IDA and IFAD from an existinglist of 40 farmers' associations (these hadparticipated in the two earlier UNDP/FAOprojects on post-harvest technology practices);agreement with the IDA on the methodology fordetermining user charges and capitalization ofthe crop-processing equipment by theparticipating farmers' associations has beenreached as a Project start-up action;

inputs financed by the ASSP will be moved to,stored at and sold from DAFF stores/depots,agreed with the IDA; agreement on themethodology for pricing the farm inputs, thatis, fertilizer, improved planting material foroil palm seedlings and polybags and wirescollars for these seedlings, and tools and farmimplements has also been reached with the IDAas a Project start-up action;

Research-Extemin Linkages

(none) (none) the ASSP will finance on-farm adaptive research(OFAR) and provide for reguLar feedback fromfarmers to agricultural research institutesthrough the Subject Matter Specialists (SMSs)of DAFF; a series of agronomic and crop varietytrials will be carried out on farmers, fieldsin the presence of farmers, research scientistsand SMSs; the results of OFAR will be evaluatedby the agricultural research institutes and theNational Agricultural Research CoordinatingCouncil (NARCC) will document and publish theresults as input into an agenda for theimprovement and development of technicalpackages taking into account technical,economic and social problems encountered byfarmers;

Coordination Unit for the ASSP

(none) (none) the ASSP will finance the establishment withinthe Office of the Director-General of DAF aCoordination Unit (CU), headed by a ChiefTechnical Coordinator; other staff will includea Financial Controller, a Chief ProcurementOfficer, a Procurement Officer, an AssistantProcurement Officer, four accountants andsupport staff; the CU will conduct Itsoperations through a Coordinating Committee themembership of which has been agreed with IDA.After Project completion the CU will continueas the Agricultural Policy Planning Unit forthe DAF.

- 58 -AHNNX B


DEPARTMENT OF FINANCE,DEVELOPMENT & ECONOMIC

PLANNINGSECRETARIAT BUILDINGGEORGE STREETFREETOWNSIERRA LEONE

November 17, 1992

Mr. Edwin LimDirectorWestern Africa DepartmentInternational Bank for

Reconstruction and Development1818 H Street N.W.Washington D.C. 20433

Dear Mr. Lim,

Agriculture Sector SupEort Project(Credit 1501-SL) - Letter of Sector Policy

This is to request your approval for Amendments to the Development CreditAgreement of April 18, 1984, for the Agriculture Sector Support Project (ASSP), Credit1501-SL. The Amendments, already discussed with the Bank mission, concern majorchanges in the description of the ASSP necessitated by a severe deterioration of theagriculture sector. The undisbursed balance in the Project is of the order of SDR17.5million of which SDR13.9 million are IDA and SDR3.6 million IFAD resources.

As you are aware, the prolonged economic decline experienced by Sierra Leonehas had serious adverse effects on all sectors of our economy. The agriculture sector hasbeen particularly vulnerable and has not been able to make the meaningful contribution

- 59 -

ANNEX B

to the country's growth that it is strongly capable of. Compared to a decade ago, whenthe ASSP was first appraised, conditions in the sector have deteriorated drastically.These have required a close review of sector priorities. In the interim, agriculturaloutput has declined by more than 3.5 percent per annum on average. The Government'sobjectives for the agriculture sector, however, remain the same and, because of thegrowing economic hardship of our people, the commitment to achieving these objectivesis now firmer than ever. Raising rural incomes, increasing agricultural production, andalleviating malnutrition are the objectives to which we refer and to which our agriculturaldevelopment effort will be directed. The revised ASSP would be instrumental inrestoring our efforts to achieving these urgently sought objectives. The Governmentrequests, therefore, a reallocation of the undisbursed balance to what we believe are thesector's immediate priorities. Your approval of the requested Amendments andreallocation of the Credit, would, in our view, lead to the urgently needed recovery ofthe sector and of agricultural growth.

Sierra Leone is blessed with abundant natural resources and a people willing towork hard to develop these resources for the benefit of their families and their country.Nowhere is this more true than in the case of the agriculture sector. Our farmersstruggle resolutely to improve their standards of living but are unable to do so. Ruralincomes in real terms have declined sharply and levels of nutrition have becomedangerously low. The average rural per capita income is now less than the poverty levelof US$75 and the per capita consumption of rice has fallen to less than 100 kg comparedto about 125 kg per capita in more prosperous times, and more than 135 kg per capitain many regional countries. The sharp decline in the people's standard of living is acause for anguish to the Government of Sierra Leone for its people and also a matter ofdeep concern for their future. Meeting the increasing demand for food and expectationsfor higher standards of living, without burdening, further, the balance of payments, isvery possible if farm incomes and marketed production are increased. By the activeparticipation in economic activity of the poorest of our society, most of whom dependon agriculture for their livelihood, output, rural incomes and calorie intake can beenhanced, food imports reduced, and agricultural exports increased.

The impact on agricultural incentives of the macroeconomic policies pursued inthe past has proved to be adverse and deep-seated. With the economic realities ofunsustainable expenditures in the face of declining budgetary revenues, and shrinkingforeign exchange reserves, the need for new policies had become only too clear. It wasthis recognition which led us to adopt, with your advice, an economic reform programmewhich, we are proud to say, we have been able to sustain for more than two years now.The improved terms of trade and economic incentives that have resulted from thisprogramme, particularly from the realigned exchange rate, are, as expected, being

- 60 -ANNEX B

transmitted to the agriculture sector. However, it is the inability of our farmers to availthemselves of these improved incentives, which continues to hold back sector recoveryand growth. Progress which had been made through the IDA-funded IntegratedAgricultural Development Projects (IADPs) in raising crop yields received a serioussetback, for all practical purposes, during the suspension of ASSP disbursements. Whathas endured is the technical knowledge which our farmers and agricultural officers gainedfrom the education, training, and demonstration effect enabled initially by the IADPs andlater by the ASSP until its suspension. Even though, with the passage of time, thisknowledge has become diluted, it remains valuable. It can now be put to good use, andfurther improved upon, but not without a carefully designed investment and policyinitiative, an intiative that would meet the pressing constraints to higher farmproductivity, efficient crop-processing and marketing, and cost-effective delivery ofinstitutional agricultural support services. It is these constraints, Mr. Director, whichthe Amendments to the Development Credit Agreement seek to address.

In the short-term, Sierra Leone's options for agricultural growth are obviouslylimited but not entirely absent. These options rest in the yield-enhancing technologywhich can be disseminated, in agricultural institutions which can be improved and in thefeeder road infrastructure that can be rehabilitated. The means of tapping these options,however, do not exist, and it is these that constitute our immediate constraints. As withmost of our institutions, those in the agriculture sector have been greatly weakened bythe acute and prolonged budgetary crisis from which Sierra Leone is starting to emerge.Thus, besides the agricultural research and training institutes, the Department ofAgriculture, Forestry and Fisheries (DAFF) has been affected to the extent that it is nowwithout adequate funding unable either to convey the improved technology to farmers orto improve technical packages through adaptive research. Many of our farmers who, inthe past, had adopted new and improved methods of production have been forced toreturn to traditional agricultural practices. Crop yields have fallen to subsistence levelswith devastating impact on sector growth and rural standards of living. In a similar vein,the acute foreign exchange crisis has prevented the import of essential inputs such asfertilizer, improved planting material, agro-processing machinery, and basic farm toolsand implements. Not only are potential crop yields not realized but the limited outputis reduced further by high post-harvest losses. Furthermore, the reduced import ofessential veterinary supplies, especially drugs and vaccines has accelerated the mortalityrates of our livestock. Meanwhile, the poor delivery of rural credit has left farmerswithout financial recourse for upgrading technology and the severe deterioration of ruralroads has left them without efficient means for marketing any surplus output. Finally,the producer price of Sierra Leone's predominant staple rice remains weak, and currentfinancial returns argue against the farmer incurring the cost of adopting yield-enhancingtechnology and marketing the output. Overcoming these obstacles is fundamental to

- 61 -ANEX B

raising agricultural productivity and marketed output, which, if not done in the nearfuture, will result in irreparable damage to the agriculture sector.

In view of the above, we request, that the undisbursed funds in the ASSP bereallocated in a manner that would ease these constraints in the immediate future. Inaddition to the close attention for strengthening agricultural policy planning andinstitutional capacity, a three-pronged approach is envisaged by the ASSP: first, toprovide farmers with relevant technical know-how for tapping the agronomic potentialusing existing yield-enhancing technology; second, to overcome shortages of inputsintegral to the application of this improved technology, and reduce postharvest losses;and third, to rehabilitate feeder roads especially in remote but agriculturally productiveareas. The revised ASSP has five components: technology transfer (US$9.1 million),agricultural inputs and post-harvest technology (US$9.6 million), feeder roadrehabilitation (US$7.8 million, research-extension linkages (US$0.4 million), and theCoordination Unit (US$1.4 million). These components have been carefully designedand agreed upon. The dollar equivalent cost of the redesigned ASSP is US$28.3 millioninclusive of duties and taxes and physical and price contingencies. The Government ofSierra Leone's contribution amounts to about 11 percent of total costs; this is in additionto duties and taxes which would account for almost 8 percent.

The IDA Credit would finance 69 percent of the total cost and the IFAD Loanalmost 17 percent; the World Food Programme would provide about US$300,000 as itscontribution. Foreign exchange costs, as a proportion of the base cost estimate are 76percent, and investment costs 83 percent. Technical assistance, including local technicalassistance, constitutes about 17 percent of total project costs and is earmarked for criticalareas - apart from facilitating implementation of the ASSP, the technical assistance isdesigned to strengthen agricultural policy and planning capacity, and swamp andwatershed management, two areas in urgent need of attention.

Before touching upon the fundamental policy and institutional changes whichwould be implemented through the ASSP, and which would foster the enablingenvironment for sustained agricultural growth, the Project would yield considerablebenefits for our balance of payments. Incremental paddy output is estimated to rise bymore than 65 percent per year. With benefits from reduced post harvest losses andimproved recovery rates from efficient small-scale milling, this would translate into 50percent of annual imports of rice averaged for the last two years. Significant investment,employment and income gains to the rural economy are also expected from strongmultiplier effects which would be generated by the resurgence of the rice economy.Similar, production and trade benefits would result from the new oil palm plantings.However, because of the long gestation period, these benefits would be realized only

- 62 -ANNEX B

after Project completion but would then extend well into the future. The average foreignexchange savings from reduced rice imports are estimated, in 1992 US Dollars, at aboutUS$43 million per annum and incremental earnings from the expected seven-fold increasein palm kernel production of at least US$2 million. As regards, coffee and cocoa, weare hopeful that once security is fully restored in the tree-crop growing areas along theborder with Liberia, production will recover and so also will the contribution to ourexport earnings. Besides the improved nutrition levels that the higher rice and palm oiloutput would enable, the enhanced crop yields and marketable surplus resulting from theuse of fertilizer would permit substantial increases in farm incomes. At current productand factor prices, financial returns per hectare and financial returns to total labour in ricecultivation in existing inland valley swamps are initially estimated to double, and thoseper unit of output to increase by almost 50 percent. Provided incentives to ricecultivation are favourable, these financial returns could subsequently strengthen evenmore. With further improvements in technology expected from the stepped-up adaptiveresearch effort, higher farm incomes from the cultivation of other crops such asgroundnut, tobacco, cassava, sweet potato, and vegetables are also anticipated.

Apart from promoting technical and operational efficiency in the sector, we wouldlike to draw your attention, Mr. Director, to the policy framework within which therevised ASSP would be implemented and the economic efficiency gains that would beensured. It is our firm endeavour that our economic policy, designed to increaseeconomic efficiency and expedite the transition to a market-led economy, is reinforcedat the sector level. Accordingly, we would like to assure you of our commitment toadopt border pricing and full cost recovery for all ASSP-financed inputs and crop-processing machinery. We would like to remove the fertilizer subsidy as early aspossible to enable a rapid transition to competitive pricing and the efficient use of thisessential and relatively high cost ingredient for technology improvement. However, theGovernment cannot but be sensitive to the exigencies of our farmers, especiallysubsistence farmers, who require a strong initial incentive to reinstate their use offertilizer at a time when production and marketing costs are high. We have thereforeadopted the following schedule for the phased elimination of the subsidy: no more than60 percent, no more than 40 percent, no more than 20 percent, and zero percent effectiveFebruary 15, 1993, 1994, 1995 and 1996, respectively. This schedule would permit astrengthening of the enabling environment for increased agricultural production expectedfrom the rehabilitation of feeder roads and improved access to credit, and allow theprivate sector the required time and opportunity to enter into the commercial import anddistribution of fertilizer.

In addition to the financial benefits, significant economic gains are anticipatedfrom the rice subsector. To enable us to weigh policy options for rice, a Study on the

- 63 -ANNEX B

Price and Trade Policy Aspects of Rice is included in the revised ASSP. Based on thefindings, the study will provide an assessment of the costs and benefits of each policyoption. This will enable the Govemment to formulate a Rice Policy that will address itsconcems for food security and sustainable rice production. For the first time, oureconomic policy for rice will be based on a comprehensive review and overview of thesubsector. The policy will focus on the incentives for rice cultivation that will be calledfor beyond the short term, and beyond the month to month concerns of providing SierraLeone's population with its staple food needs. It will thereby establish the policyframework for technical, economic and environmental efficiency in the rice subsectorwithout which the sector will not be able to compete effectively on the world market nowthat our trade and exchange rate regime has been liberalized. Our past policies topromote rice cultivation, especially in the swamps, where most of our future prospectsrest, have not brought about the results that had been sought. We are hopeful that oncethe new policy is formulated, we will be able to address issues in the rice subsectortaking into account all aspects of our economic and social fabric and the well-being ofboth our farmers and consumers.

Monitoring incentives for the adoption of improved technology, especially forrice, as well as the impact of this adoption, will be critical to the success of ouragricultural development initiatives. We would like to assure you that monitoring andevaluation, and the development of a strong data base, will be at the core of ouragricultural planning and policy analysis. Accordingly, and because rice is apredominant staple and producer crop, we intend to monitor the wholesale, retail andfarmgate price of rice at key locations in our country on a regular basis. These marketprice indicators will go a long way in filling the current vacuum in market intelligencewhich is indispensable to sound investment decision-making not only for rice but also forclose substitutes and other food and cash crops. For this purpose, close attention willbe given to the formats and questionnaires that will be used for monitoring andevaluation. In the case of coffee and cocoa, as you know, we are committed, under themacroeconomic reform programme, to ensuring that the price paid for these crops toproducers by buying agents of the Sierra Leone Produce Marketing Board (SLPMB) willnot fall below 60 percent of the FOB price. Once the security situation along the borderwith Liberia is resolved, we are confident that the improved incentives and restoredagricultural services will manifest themselves in higher growth.

With respect to the divestiture of the DAFF's oil palm estates, we have agreedto prepare an Action Plan for the privatization of the oil palm plantations and mills atDaru and Gambia-Mattru. Our attempts in the past to privatize the asset, which was alsosought under the original ASSP, have not succeeded for a variety of reasons. We wouldnow like to undertake the preparation of the Action Plan, in a systematic manner, and

- 64 -ANNEX B

would like, in the interest of the asset which continues to deteriorate rapidly, for thisexercise to be initiated as early as possible. Technical assistance for a fresh evaluationof the asset and for the drawing up of an Action Plan (for the divestiture of the asseteither in part or in full), once the evaluation is completed has been provided for in therevised ASSP.

On institutional capacity, we would like to assure you, Mr. Director, that we arecontinuing to build upon the organizational changes that had been instituted under theoriginal ASSP. In addition to strengthening our agricultural policy planning and analysiscapacity, we envisage improvement in two principal areas. First, we would like todelineate the professional and technical functions of the DAFF from administrativematters which affect it. This functional separation will enable the DAFF to focus onstrengthening the delivery of basic agricultural services without day to day interruptionsin operational work. Our less than satisfactory experience in the past dictates suchseparation of responsibility to be a priority if our farmers are to be provided with qualitysupport services in a manner that is cost-effective. Second, we would like to ensureeffective decentralized decision-making by requiring Regional Offices to report to theDirector-General, DAFF through the Chief Regional Officers and the Divisional Headsrather than to administrative heads through non-technical channels. We would also liketo assure you of our commitment to streamlining the DAFF staff structure and toreducing its daily wage expenditures in the interest of operational and budgetaryefficiency. This would be achieved without jeopardizing the ability of DAFF to deliverthe higher growth objective that is expected of it, and by ensuring consistency with thecivil service reform exercise currently being carried out under the Reconstruction ImportCredit. In the coming months, therefore, our officers will work closely with your staff.In addition, and concurrently, the DAFF will revise the terms of reference for its variousoperational divisions, and assess the managerial, professional and technical manpowerand training needs that would be required to deliver and sustain higher agriculturalgrowth in the coming years. The revised ASSP has already provided for a strongemphasis on training not only agricultural extension officers but also farmers, farmers'groups, agro-processors, rural bank managers and loan officers, accountants, statisticiansand computer technologists. Training of domestic contractors in road rehabilitation andmaintenance will also be strengthened with the equipment procured for the labour-intensive feeder roads component.

To strengthen budgetary planning, control and management, we would like todraw your attention to the implementation procedures set out in the ASSP. These aredesigned to link, through operational and technical work plans, the crop calendar for eachecological zone with the annual budget cycle. Furthermore, budgetary proposals wouldrelate to a comprehensive assessment of agricultural performance in the previous year

- 65 -ANNEX B

and strategy for the next. The institutional streamlining proposed for the DAFF wouldnot only be conducive to operational and budgetary planning but more importantly toensuring accountability both at Headquarters and at the Regional Offices. Funding willno longer be sanctioned for input and credit supply and distribution but instead costs willbe fully recovered from the sale of ASSP-financed inputs and machinery and depositeddirectly into the Treasury Main Account. With respect to sector policy, as it continuesto evolve, we would like to assure you, Mr. Director, of close and careful monitoringof the extension messages that would be conveyed to farmers. Thus, besides, thedissemination of improved technology, these messages will be used to educate farmerson issues which are considered indispensable to sustainable agriculture. Among others,the extension messages will focus on protection and conservation of the soil andenvironment, elimination of subsidies and price liberalization, market intelligence, andgroup approaches to procuring inputs, marketing output and gaining access to credit.

In closing, Mr. Director, we would like to reaffirm that the Government'scommitment to the macroeconomic and stabilization programme is strong and abiding.With our sustained efforts at reform, which are beginning to bear fruit, we shall see afurther deceleration in the rate of inflation and further strengthening and maintenance ofpositive real rates of interest. We would like, furthermore, to express our appreciationof the Bank's decision to keep Credit 1501-SL open and to support the reallocation ofundisbursed funds for objectives which would arrest the decline of the sector and makefor sustained growth in agricultural output, incomes and export earnings. I take thisopportunity to assure you that we will do everything we can to make up for the time lostduring the suspension of ASSP disbursements and ensure that the ASSP objectives arefully realized.

Yours sincerely,

(signed)

J. S. A. FunnaSecretary of State forFinance, Development & Economic

Planning

- 66 -

ANNEX c

List of Input Stores. Feeder Roads. Rural Bank and Farmers' Associations

Input Stores 1/

Town District

1. Makeni (Headquarters) Bombali2. Magburaka Tonkolili3. Bafodia Koinadugu4. Blama Kenema5. Bo Bo6. Rhombe Port Loko7. Katonga Port Loko8. Kambia Kambia9. Kamakwie Bombali10. Taiama Moyamba

Feeder Road Links

miles

1. Makote-Batkanu 402. Kabala-Mongo 743. Kabala-Bafodia 324. Lunsar-Masimera-Mile 91 305. Foradugu-Gbinti-Port Loko 466. Mile 91-Rochain Malal-Mara 187. Yonibana-Masugbe 128. Barmoi-Kantaia 209. Joru-Lalehun 1910. Mange-Mambol 1811. Barmoi-Mabanda 1512. Mabanda-Maboto 613. Sumbuya-Sabuya 1814. Sumbuya-Banguria 1815. Kaifuna-Mabala 13

1/ Currently owned by the Department of Agriculture and Forestry.

- 67 -

ANNEX C

Feeder Road Links (contd.)

miles

16. Kaitiri-Yana 2117. Karina-Pendembu 1818. Gbin-Kagberi 619. Musaia-Dogoloya 620. Falaba-Manankon 1821. Benikoro-Didiya 622. Sandikoro-Sirekude 2723. Barmoi-Makaranke 2724. Tombo-Waterloo 12

Rural Banks

District

1. Yori Rural Bank Tonkolili2. Kunike Rural Bank Tonkolili3. Marampa and Masimera Rural Bank Port Loko4. Mattru Rural Bank Bonthe5. Bombali Rural Bank Bombali6. Sewama Rural Bank Kenema

- 68 -

ANNEX C

Farmers Associations 2/

District Village

1. Tuma Faso Bombali Makeni lol2. Mabonkani Bombali Mabonkani3. Thonkonba Bombali Thonkonba4. Kalangba Bombali Kalangba5. Machinka Bombali Machinka6. Tamaranneh Bombali Masongbo7. Rodinneh Bombali Manknehbana8. Tabai Bombali Mabarai9. Konsho Bombali Konsho10. Mabunth Bombali Mabunth11. Tambiama Bombali Tambima12. Ndowahun Bombali Mahin13. Bathlol Portloko Melekuray14. Temesu Portloko Gbombana15. Mapown Portloko Mapown16. Tamaraneh Portloko Gbomsamba17. Katonga Portloko Katonga18. Kontawalla Portloko Kontawalla19. Manise Portloko Manace20. Rhombe Portloko Rhombe21. Rowollow Kambia Rowollow22. Gbinle Kambia Gbinle23. Gbonkumaria Kambia Gbonkumaria24. Makalie Kambia Makalie

1/ This list includes farmers' associations that participated in the two previous UNDP-funded projects on postharvest practices executed by the FAO and will form the basisfor the selection of the farmers' associations that could participate in the agro-processing component of the revised Agriculture Sector Support Project.

- 69 -

ANNEX C

Farmers Associations (contd.)

District Village

25. Bamoi Bamoi Bamoi26. Kagberay Bamoi Kagberay27. Masimera Bamoi Masimera28. Kamba Bamoi Kamba29. Gbama Dev. Bo Gbama30. Ngiegboiya/Baiegboiya Bo Ngiegboiya31. Konima Bo Konima32. Bayama Bo Bayama33. Pelewahun Bo Pelewahun34. Niagolehun Bo Nigolehun35. Fanima Bo Fanima36. Gbotima Moyamba Gbappi37. Kpetima Moyamba Kpetima38. Taninahun Moyamba Taninahun39. Manjehun Moyamba Manjehun40. Naligoloma Moyamba Gbonjema41. Gbotima II Moyamba Matagelema42. Moemoh Moyamba Moemoh

2/ Marketing and Credit Association

AF4AGNovember 1992

- 70 -

ANNEX D

Methodology for Pricing Inputs and Crop-Processing Equipment 1/

Financial Import Parity Price =

FOB price at port of exportplus freight to Freetownplus insuranceplus cost of unloading at Freetown (port)equals CIF price Freetownmultiply by the official exchange rateadd import tariffs/dutiesadd local port chargesadd local transport and marketing cost to relevant market 2/equals market pricededuct transport and marketing cost from project 3/deduct local handling and storage costs at project 3/

1/ The price of fertilizer inclusive of agreed level of subsidy.2/ The market nearest the input stores or integrated crop-processing center.3/ The input store or integrated crop-processing center.

AF4AGNovember 1992

- 71 -

ANNEX E

Capitalization of the Crop-Processing Equipment 1/

Procedures

Qualifying farmers' associations would be able to purchase the crop-processing equipmentover the ASSP project implementation period. This cost of this equipment would be fullyrecovered by the Project. The following steps and procedures would be involved in thepurchase by farmers' associations of the equipment:

(a) signing of an agreement (sample attached) by the selected farmer association and theDepartment of Agriculture and Forestry (DAF);

(b) the agreement would be accompanied by a commercial bank cheque from the farmers'association in the equivalent of no less than ten percent of the landed cost of theequipment four months prior to the arrival of the equipment;

(c) this cheque and all subsequent cheques would be made out to the Accountant General;

(d) the members of the participating farmers' association would, once the cheque has beenprocessed, and on the advice of the DAF, proceed to prepare for the construction ofthe Integrated Crop Processing Center (ICPC). The ICPC would consist of a shed tolocate a rice mill or if other equipment is to be purchased a shed to house suchequipment. Land, labour and materials for the construction of the shed(s) would beprovided by the farmers' association concerned and construction would be carried outunder the direct supervision of the technical assistance to be provided under theProject;

(e) on completion of the ICPC, to the satisfaction of the Project, the farmers' associationwould make a down payment equivalent to no less than twenty percent of the cost ofthe said equipment;

(f) the remainder of the cost of the equipment would be recovered as follows: in each ofthe first and second years after the first harvest, thirty percent of the cost of theequipment ex-ICPC plus depreciation for the first year and the second year, asrelevant and, in the third year, ten percent plus depreciation;

(g) in the event that three months prior to the completion of Project implmentation, thefarmers' association is unable to purchase the said equipment, such equipment wouldbe sold to the highest bidder through a public bidding process.

1/ User charges to Farmer Association members, for milling/processing agriculturalproduce, would be based upon the operating cost of the equipment (labour and fuel)plus the cost of maintenance (servicing and repair). A reasonable trading marginwould be allowed to be charged to non-members.

- 72 -

ANNEX E

Capitalization of the Crop-Processing Eguipment 1/

Sample Agreement

1. We, Farmers' Association (name), located at (village name) in District (name),hereby, enter into an Agreement with the Department of Agriculture and Forestry toestablish and operate an Integrated Crop-Processing Center, hereafter referred to asICPC, and that we further agree that until the crop-processing equipment (specify)shall be fully amortized by the said Farmers' Association over a three year period notto later than three months prior to the end of the Project period, the equipment shallremain the property of the Government of Sierra Leone.

2. Once the said equipment is fully amortized by the said Farmers' Association, a formallegal transfer of the same said equipment shall be made in the name of the Farmers'Association named in (1) above.

3. The Farmers' Association, named in (i) above, agrees to abide by the amortization/payment schedule laid out in the Procedures for Capitalization.

4. The Farmers' Association, named in (1) above, further agrees to:

(a) undertake the construction of the ICPC using its own land, labour andmaterials;

(b) operate and maintain the crop-processing equipment in question in accordancewith procedures established by the Project;

(c) maintain detailed financial records on the:

(i) operating costs;

(ii) maintenance and repair costs;

(iii) milling/processing rates per unit of output charged to each member ofthe Farmers' Association and each non-member;

(iv) total monthly costs incurred and revenues generated from theoperations of the ICPC - these expenses and revenues shall berecorded separately for different crops; and

(v) financial contribution by each member of the said Farmers'Association toward amortization of the said equipment.

AF4AGNovember 1992

- 73 -

ANNEX F

PAGE I OF 6


(CREDIT 1501-SL)

ANNUAL IMPLEMENTATION SCHEDULE

ACTIONS T BE TAKEN BY WHOM BY WHN

1993

A. INSITnlMONAL1. REVIEW OF DAF STAFF REDUCTIONS WITH IDA 1/ DAF A/ MAY 12. REVIEW OF DAP TORS WITH IDA DAF A/ MAY 303. MEETINGS OF COORDINATION COMblTTEE MEMBERS APRIL 30 B/4. MEETINGS OF CAPI 2/ MEMBERS

5. COUNTERPART STAFF (INPUTS/AGRO) IN PLACE 3/ DAF/DFDEP APRIL 156. SELECTION OF 15 FARMERS' ASSOCIATIONS

DAF/TA MAY 30B. PRICING AND SUBSEDIS

1. ANNOUNCE PRICES OF ASSP FINANCED INPUTS DAF A/ MAY I2. PHASED REDUCTION OF FERTIUZER SUBSIDY 4/ DAF A/ MAY I3. ANNOUNCEMENT OF FERnIUZER PRICE DAF Al MAY I4. REVIEW OF PARITY PRICE FOR RICE DAF Al JUNE 155. POST MONITORED CONSUMER RICE PRICE 5/ DAF - MESD APRIL 30 Bl6. POST MONITORED PRODUCER RICE PRICE 6/ DAF - MESD APRIL 30 Bl7. REVIEW FOB PRICE FOR COFFEE & COCOA BEANS DAF Al APRIL 30S. ANNOUNCE PRODUCER PRICE COFFEE & COCOA 7/

DAF/SLPMB Al MAY 15C. RICE PRICB AND TRADE TARIFF POUCY1. COMPLETION OF STUDY ON RICE POUCY DAF/TA SEPT. 152. REVIEW FINDINGS/OPTIONS OF RICE STUDY GOSLIIDA NOV. 30

D. PRIVATEZATiON1. COMPLETE VALUATION OF DAF OIL PALM ASSET 9/ DAF/TA AUGUST152. ACTION PLAN FOR PRIVATIZING OIL PALM ASSET 10/ DAF/TA OCTOBER31

E. BUDGETARY PROVISON, COST RBCOVERY AND AUDIT1. QUARTERLY ADVANCE BY DFDEP TO DAF AND SLRA DFDEP APRIL 302. DEPOSIT IN TREASURY OF COSTS RECOVERED 11/12/ DFDEP JUNE 15 B/3. COMPLETION INTERNAL AUDIT GOSL DECEMBER314. COMPLETION EXTERNAL AUDIT AUDIT FIRM DECEMBER31

F. ANNUAL GROWIII. BUDGBTARY AND WORK PLANS 13/1. PRELIUMNARY DRAFT ANNUAL GROWIH PLAN DAF/TA DECEMBER 152. PROPOSED ANNUAL TECHNICAL WORK PLANS 14/ DAF OCTOBER313. IDA REVIEW OF WORK PLANS WITH CU CU/IDA MAY 14. DRAFT BUDOET PROPOSALS DAF MAY 15. FINAL PROCUREMENT PLANS AND SCHEDULES DAF/SLRA MAY 156. DEUVERY PLANS/SCHEDULES FOR FARM INPUTS DAF/TA APRIL307. DEUVERY SCHEDULES/CROP-PROCESSING MACHINERY DAFITA JUNE 15

G. TRAMNO AND RESEARCH

1. COMPLETE DAF MANPOWER SURVEY DAF JUNE 302. PREPARE 3 YEAR DAF TRAINING PROGRAMME DAF A/ OCTOBER313. PROPOSALS BY NARCC TO REVISE NARP 151 NARCC/AGRIC. INSTTS SEPTEMBER 30

H. PROJECT PERFORMANCE

1. QUARTERLY REVIEW DAF/SLRAIBSL/TA JUNEIOCTOBER END2. ANNUAL PROJECT PERFORMANCE REVIEW 16/ CU NOVEMBER I

NOTE: THE FOOTNOTE NUMBERING IN EACH INDMDUAL IMPLEMENTA1ION SCHEDULE IS NOT NECESSARILY CONSECUTIVE.

- 74 -

ANNEX F

PAGE 2 OF 6


(CREDIT 1501-SL)


ACnONS TO BE TAKEN BY WHOM BY WHEN

1994

A. INSITULMONAL1. REVIEW OF DAF STAFF REDUCTIONS WITH IDA II DAF A/ MAY I

2. REVIEW OF DAF TORS WITH IDA DAF A/ MAY 30

3. MEETINGS OF COORDINATION COMMITTEE MEMBERS JANUARY 15 B/

4. MEETINGS OF CAPI 2/ MEMBERS JANUARY I Cl

B. PRICING AND SUBSIDIESL. ANNOUNCE PRICES OF ASSP FINANCED INPUTS DAF A/ FEBRUARY 152. PHASED REDUCTION OF FERTILIZER SUBSIDY 41 DAF A/ FEBRUARY 153. ANNOUNCEMENT OF FERTIUZER PRICE DAF Al FEBRUARY 154. REVIEW OF PARITY PRICE FOR RICE DAF Al JANUARY 155. POST MONITORED CONSUMER RICE PRICE 51 DAF - MESD JANUARY 15 B/6. POST MONITORED PRODUCER RICE PRICE 6/ DAF - MESD JANUARY 15 B/

7. REVIEW FOB PRICE FOR COFFEE & COCOA BEANS DAF A/ APRIL 308. ANNOUNCE PRODUCER PRICE COFFEE & COCOA 7/ DAFISLPMB At MAY 15

C. RICE PRICE AND TRADE TAREFF POUCY1. IMPLEMENTATION OF RICE POLICY 8/ GOSL JANUARY31

D. PRIVATIZATON

I. ACTION PLAN FOR PRIVATIZING OIL PALM ASSET 1O/ DAF/TA JANUARY 15 C/

E. BUDGETARY PROVISION, COST RECOVERY AND AUDIT

I. QUARTERLY ADVANCE BY DFDEP TO DAF AND SLRA DFDEP JANUARY 15 Cl2. DEPOSIT IN TREASURY OF COSTS RECOVERED 11/12/ DFDEP JANUARY 30 Bt

3. COMPLETION INTERNAL AUDIT GOSL DECEMBER31

4. COMPLETION EXTERNAL AUDIT AUDIT FIRM DECEMBER31

5. PREVIOUS YEAR'S AUDIT REPORTS TO IDA DAF APRIL 30

F. ANNUAL GROWIH. BUDGETARY AND WORK PLANS 13/I. FINAL DRAFT ANNUAL GROWrH PLAN DAF/TA JANUARY312. PROPOSED ANNUAL TECHNICAL WORK PLANS 14/ DAF JANUARY 31 31

3. IDA REVIEW OF WORK PLANS WITH CU CU/IDA MAY I

4. DRAFT BUDGET PROPOSALS DAF MARCH 315. FINAL PROCUREMENT PLANS AND SCHEDULES DAF/SLRA MARCH 31

6. DEUVERY PLANSISCHEDULES FOR FARM INPUTS DAF/TA FEBRUARY 28

7. DEUVERY SCHEDULES/CROP-PROCESSING MACHINERY DAF/TA JUNE 15

G. TRANING AND RESEARCH1. UPDATE 3 YEAR TRAINING PROGRAMME DAF A/

2. COMPLETE NATIONAL AGRIC. RESEARCH PLAN NARCC/AGRIC. INSTITS JANUARY31

H. PROJECT PERFORMANCE1. QUARTERLY REVIEW DAF/SLRA/BSLITA JANUARY I Cl

2. ANNUAL PROJECT PERFORMANCE REVIEW 16/ CU MARCH 313. PROGRESS REPORT FOR MID-TERM REVIEW CU/TA JULY 31

4. MID-TERM REVIEW DAFF/SLRA/IDA SEPTEMBER I

NOTE: THE FOOTNOTE NUMBERING IN EACH INDIVIDUAL IMPLEMENTATION SCHEDULE IS NOT NECESSARILY CONSECUTIVE

- 75 -

ANNEX F

PAGE 3 OF 6


(CREDIT 1501-SL)



1995

A. INSTrUIIONAL

I. REVIEW OF DAF STAFF REDUCTIONS WITH IDA 1I DAF A/ MAY 12. REVIEW OF DAF TORS WITH IDA DAF Al MAY 303. MEETINGS OF COORDINATION COMMITTEE MEMBERS JANUARY 15 Bl4. MEETINGS OF CAPE 2/ MEMBERS JANUARY I Cl

B. PRICING AND SUBSIIES1. ANNOUNCE PRICES OF ASSP FINANCED INPUTS DAF A/ FEBRUARY 152. PHASED REDUCTION OF FERTILIZER SUBSIDY 4/ DAF Al FEBRUARY 153. ANNOUNCEMENT OF FERTILIZER PRICE DAF Al FEBRUARY 154. REVIEW OF PARITY PRICE FOR RICE DAP Al JANUARY 155. POST MONITORED CONSUMER RICE PRICE 5/ DAF - MESD JANUARY 15 Bl6. POST MONITORED PRODUCER RICE PRICE 6/ DAF - MESD JANUARY 15 B/7. REVIEW FOB PRICE FOR COFFEE & COCOA BEANS DAF A/ APRIL 30B. ANNOUNCE PRODUCER PRICE COFFEE & COCOA 7/ DAF/SLPMB Al MAY 15

C. RICE PRICE AND TRADE TARIFF POUCY1. MONITORING NEW RICE POLICY 8/ CAPI/GOSL JANUARY 31 Ct

D. PRIVATIZA1ON

1. ACTION PLAN FOR PRIVATIZING OIL PALM ASSET 10/ DAFITA JANUARY 15 C/

E. BUDCETARY PROVISION, COST RBCOVERY AND AUDIT1. QUARTERLY ADVANCE BY DFDEP TO DAF AND SLRA DFDEP JANUARY 15 C/2. DEPOSIT IN TREASURY OF COSTS RECOVERED 11/12/ DFDEP JANUARY 30 B/3. COMPLETION INTERNAL AUDIT GOSL DECEMBER314. COMPLETION EXTERNAL AUDIT AUDIT FIRM DECEMBER315. PREVIOUS YEAR'S AUDIT REPORTS TO IDA DAF APRIL 30

F. ANNUAL GROWIH. BUDGETARY AND WORK PLANS 13/

1. FINAL DRAFT ANNUAL GROWrH PLAN DAF/TA JANUARY312. PROPOSED ANNUAL TECHNICAL WORK PLANS 14/ DAF JANUARY 31 313. IDA REVIEW OF WORK PLANS WITH CU CU/IDA MAY I4. DRAFT BUDGET PROPOSALS DAF MARCH 315. FINAL PROCUREMENT PLANS AND SCHEDULES DAF/SLRA MARCH 316. DELIVERY PLANS/SCHEDULES FOR FARM INPUTS DAF/TA FEBRUARY 2S7. DELIVERY SCHEDULES/CROP-PROCESSING MACHINERY DAFtTA JUNE 15

G. TRAINING AND RESEARCHI. UPDATE 3 YEAR TRAINING PROGRAMME DAF Al2. COMPLETE NATIONALAGRIC. RESEARCH PLAN NARCCIAGRIC. INSTITS JANUARY 31

H. PROJECT PERFORMANCEI. QUARTERLY REVIEW DAF/SLRA/BSLTA JANUARY 1 Cl2. ANNUAL PROJECT PERFORMANCE REVIEW 16/ CU MARCH 31

NOTE: THE FOOTNOTE NUMBERING IN EACH INDIVIDUAL IMPLEMENTATION SCHEDULE IS NOT NECESSARILY CONSECUTIVE.

- 76 -

ANNEX F

PAGE 4 OF 6

SIERRA LEONE


(CREDIT 1501-SL)


ACnIONS TO BE TAKEN BY WHOU BY WJHEN

1996

A. INSTITUnONAL1. REVIEW OF DAF STAFF REDUCTIONS WITH IDA 1/ DAF A/ MAY 1


3. MEETINGS OF COORDINATION COMMYITTEE MEMBERS JANUARY 15 B/

4. MEETINGS OF CAPI 2/ MEMBERS JANUARY I C/

B. PRICING AND SUBSIDIES

1. ANNOUNCE PRICES OF ASSP FINANCED INPUTS DAF A/ FEBRUARY 15

2. ELIMINATION OF FERTILIZER SUBSIDY 41 DAF A/ FEBRUARY 15

3. ANNOUNCEMENT OF FERTILIZER PRICE DAF A/ FEBRUARY 15

4. REVIEW OF PARITY PRICE FOR RICE DAF Al JANUARY 15

5. POST MONITORED CONSUMER RICE PRICE 5/ DAF - MESD JANUARY 15 B/

6. POST MONITORED PRODUCER RICE PRICE 6/ DAF - MESD JANUARY 15 B/

7. REVIEW FOB PRICE FOR COFFEE & COCOA BEANS DAF Al APRIL 30

8. ANNOUNCE PRODUCER PRICE COFFEE & COCOA 7/ DAF/SLPMB A/ MAY IS

C. RICE PRICE AND TRADE TARFF POLICY1. IMPLEMENTATION OF RICE POLICY B/ GOSIJCAPI JANUARY 13 Cl

D. PRIVATIZAlIONi. ACTION PLAN FOR PRIVA1IZING OIL PALM ASSET 10/ DAF/TA JANUARY 15 C/

E. BUDGETARY PROVISION, COST RECOVERY AND AUDIT

1. QUARTERLY ADVANCE BY DFDEP TO DAF AND SLRA DFDEP JANUARY 15 Cl

2. DEPOSIT IN TREASURY OF COSTS RECOVERED 11/12/ DFDEP JANUARY 30 Bl

3. COMPLETION INTERNAL AUDIT GOSL DECEMBER31


S. PREVIOUS YEAR'S AUDIT REPORTS TO IDA DAF APRIL 30

F. ANNUAL GROWIH, BUDGEIARY AND WORK PLANS 131

1. FINAL DRAFT ANNUAL GROWTH PLAN DAF/TA JANUARY31

2. PROPOSED ANNUAL TECHNICAL WORK PLANS 14/ DAF JANUARY3131

3. IDA REVIEW OF WORK PLANS WITH CU CU/IDA MAY I

4. DRAFT BUDGET PROPOSALS DAF MARCH 31

5. FINAL PROCUREMENT PLANS AND SCHEDULES DAF/SLRA MARCH 31

6. DELIVERY PLANS/SCHEDULES FOR FARM INPUTS DAF/TA FEBRUARY 21

7. DELIVERY SCHEDULES/CROP.PROCESSING MACHINERY DAF/TA JUNE 15

G. TRAINING AND RESEARCH

1. UPDATE 3 YEAR TRAINING PROGRAMME DAF A/

2. COMPLETE NATIONAL AGRIC. RESEARCH PLAN NARCC/AGRIC. INSTITS JANUARY31

H. PROJECT PERFORMANCE

I. QUARTERLY REVIEW DAF/SLRAIBSIJTA JANUARY I Cl

2. ANNUAL PROJECT PERFORMANCE REVIEW 16/ CU MARCH 31


- 77 -

ANNEX F

PAGE 5 OF 6


(CREDIT 1501-SL



1997

A. INSTMMIONAL

1. REVIEW OF DAF STAFF REDUCnONS WITH IDA 1/ DAF A/ MAY I


3. MEETINGS OF COORDINATION COMMITTEE MEMBERS JANUARY 15 B/

4. MEETINGS OF CAPI 2/ MEMBERS JANUARY I Cl

B. PRICING AND SUBSlDEES

1. ANNOUNCE PRICES OF ASSP FINANCED INPUTS DAF A/ FEBRUARY 15

2. PHASED REDUCTION OF FERTLIZER SUBSIDY 4/ DAF A/ FEBRUARY 15

3. ANNOUNCEMENT OF FERTILIZER PRICE DAF A/ FEBRUARY 15

4. REVIEW OF PARITY PRICE FOR RICE DAF A/ JANUARY 15

5. POST MONITORED CONSUMER RICE PRICE 5/ DAF - MESD JANUARY 15 B/

6. POST MONITORED PRODUCER RICE PRICE 6/ DAF - MESD JANUARY 15 B/

7. REVIEW FOB PRICE FOR COFFEE & COCOA BEANS DAF A/ APRIL 30

S. ANNOUNCE PRODUCER PRICE COFFEE & COCOA 7/ DAF/SLPMB A/ MAY IS

C. RICE PRICE AND TRADE TARIFF POUCY

I. IMPLEMENTATION OF RICE POLUCY 8/ CAPI JANUARY 15 C/

D. PRIVATlZATION1. ACTION PLAN FOR PRIVATIZING OIL PALM ASSET 10/ DAF/TA JANUARY I5 Cl

E. BUDGErARY PROVISION, COST RECOVERY AND AUDIT

1. QUARTERLY ADVANCE BY DFDEP TO DAF AND SLRA DFDEP JANUARY 15 Cl

2. DEPOSIT IN TREASURY OF COSTS RECOVERED 11/12/ DFDEP JANUARY30 B/

3. COMPLETION INTERNAL AUDIT GOSL DECEMBER 31


5. PREVIOUS YEAR'S AUDIT REPORTS TO IDA DAF APRIL 30

F. ANNUAL GROWIH, BUDGETARY AND WORK PLANS 13/1. FINAL DRAFT ANNUAL GROWTH PLAN DAF/TA JANUARY 31

2. PROPOSED ANNUAL TECHNICAL WORK PLANS 14/ DAF JANUARY3131

3. IDA REVIEW OF WORK PLANS WITH CU CU/IDA MAY 1

4. DRAFT BUDGET PROPOSALS DAF MARCH 31

5. FINAL PROCUREMENT PLANS AND SCHEDULES DAF/SLRA MARCH 31

6. DELIVERY PLANS/SCHEDULES FOR FARM INPUTS DAF/TA FEBRUARY 28

7. DELIVERY SCHEDULES/CROP-PROCESSING MACHINERY DAF/TA JUNE 15

G. TRAINING AND RESEARCH

1. UPDATE 3 YEAR TRAINING PROGRAMME DAF I/ JANUARY31

H. PROJECT PERI0RUANCE1. QUARTERLY REVIEW DAF/SLRA/BSL/TA JANUARY I C/

2. ANNUAL PROJECT PERFORMANCE REVIEW 16/ CU MARCH 31

3. PROJECT COMPLETION REPORT GOSL APRIL I


- 78 -ANNEX FPAGE 6 OF 6


(CREDIT 1501-SL)


Nan3Os m nTTE ANNUAL IPLEMENTATION SCHEDULES F)R 1993, 1994, 1995, 1996 AND 1997.

1/ DEPARTMENT OF AGRICULTURE AND FORESTRY (DAF).

2V COMMITTEE ON AGRICULTURE PRODUCER INCENTIVES.3/ INCLUDES TEN ACCOUNTANTS TO BE PROVIDED BY THE DFDEP TO MAN THE TEN DAF INPUT STORES/DEPOTS.

4/ NO MORE THAN 60, 40 AND 20 PERCENT OF IMPORT PARITY IN MARCH 1993 AND FEBRUARY 1994 AND 1995, RESPEC'IVELY.

5/ WHOLESALE AND RETAIL PRICE AT MAIN URBAN AND SELECTED LOCAL MARKETS TO BE POSTED AT VILLAGE LEVEL

6/ FORTNIGHTLY, THE FARM-GATE PRICE OF RICE IN SELECTED AREAS OF ALL RICE ECOLOGIES.

7/ TO BE NO LOWER THAN 60 PERCENT OF FOB PRICE.1/ RICE POIICY RESULTING FROM REVIEW OF FINDINGS AND OPInONS REFLECTED IN STUDY.9/ THE OIL PAUL ASSET INCLUDES THE PLANTATIONS AND MILLS AT DARU AND GAMBIA-MATrRU.

10/ IN WHOLE OR IN PART.11/ COSTS RECOVERED FROM THE SALE OF ASSP-FINANCED INPUTS AT THE TEN DESIGNATED DAF INPUT STORES/DEPOTS.12/ ON A CONTINUOUS BASIS - DEPOSIT TO TREASURY TO BE MADE IMMEDIATELY ON RECOVERY OF COSTS.13/ OPERATIONAL WORK PLANS, BUDGETS, PROCUREMENT ACTION PLANS AND IMPLEMENTATION SCHEDULES.14/ BY EACH DAF DMSION AND FOR EACH PROJECT COMPONENT WHETHER IMPLEMENTED BY BSL, SLRAIILO OR DAF.15/ NATIONAL AGRICULTURAL RESEARCH COORDINATING COUNCIL AND NATIONAL AGRICULTURAL RESEARCH PLAN.

16/ A REVIEW OF TEN MONTHS IN THE INrrIAL PROIECT YEAR.17/ NO LATER THAN JUNE 30, 1997.

A/ EACH MONTH THEREAFTER.B/ EVERY FORTNIGHT THEREAFTER.

C/ EVERY QUARTER THEREAFTER.

AF4AGNovember 1992

SIERRA LEONE

AGRICULTURE SECTOR SUPPORT PROCECT(CREDIT 1501-SI)

SUMMARY IMPLEMENTATION SCHEDULE

1993 1994 1995 1996 1997

ACTIONS A MIJ |J |AIS IO|NDI |JTFTM|A M |IJ[AIS IO|N|DI FJ TFTMTA7M|J J IAIS IO|N D I FTMTATMTJ J AS ION|D F MA

A. INsinITMIONAL

I. REVIEW OF DAF STAFF REDUCTIONS WITHIDA UI B

2. REVIEW OF DAC TORS WITH IDA E E E E3.MhEETINGS OF COORDINATION COM[MITTEE EMMMMMMMM MMMMMMMMMMMM MMMMMMMMMMMM MMMMMMMMMMMM MMMMMM

4. MIEEnNGSOFCAPI2/ B B B B B B B B B B B B B B B B B

S. COUNTERPART STAFF (INPUTS/AGRO) IN PLACE 3/ M

6. SELECTION OF 15 FARMERS' ASSOCIATIONS E

B. PRICING AND SUBSIDIES

I. ANNOUNCE PRICES OF ASSP FINANCED INPUTS B M P M M

2. PHASED REDUCTION OF FERIIJZER SUBSIDY 4/ B M dM3. ELIMNATION OF FERTILIZER SUBSIDY M MM4. ANNOUNCEMENT OF FERTIUZER PRICE B M MS. REVIEWOFPARrTYPRICEFORRICE M E M E M E dM E M E | M E |M E M E6. POST MONrORED CONSUMER RICE PRICE 5/ EMMMMMMMM mmMMMMMMMMMMM M MMMMMMMMMMMM MMMMMMMMMMMM MMMMMM7. POST MONITORED PRODUCER RICE PRICE 6/ EMMMMMMMM I MMMM[M MmMmMm- MMMMMMMMMMMM: MMMMMMMMMMMM MMMMMM

S. REVIEW FOB PRICE FOR COFFEE & COCOA BEANS E E E E E

9. ANNOUNCE PRODUCER PRICE COFFEE & COCOA 7/ M Pd M dM M

C. RICE PRICE AND TRLADE TARIFF POLICY

1. COMPLETION OF STUDY ON RICE POLICY MP2. REVIEW FINDINGS/OPTIONS OF RICE POLICY STUDY E Z

3. IMLDEENTATION OF RICE POUCY S/ E

D. PRIVATIZATION

1. COPETE VALUATION OF DAF OIL PALM ASSEr 9/ Pd2. ACnON PLAN FOR PRIVATZING OIL PALM ASSET 10/ E

NOTE TIHE BEGINNING, MIDDLE AND END OF THE MON TH, BY WHICH ACTIONS ARE TO BE COMPLETED, ARE DENOTE BY ThE LETTERS NB Pd' AND 'E. RESPECnVELY.


(CREDIT 1501-SL)


1993 1994 1995 1996 1997

ACnONS ~~~~~~~~~~~A M_ _J _ AS 0 TA MJ J A F M NT D1 |ID J J A S O N D |J|F|FM|FA|MTI Jl |AIS|JO|N|DIJ|||||ACTIONSN DFT- F FF Am

E. BUDGErARY PROVISION, COST RECOVERY & AUDIT

I QUARTERLYADVANCEBYDFDEPTODAFANDSLRA B B B B B B B B B B B B B B B B B2. DEPOSIT IN TREASURY OF COSTS RECOVERED I1/12/ MMMMMMM MMMMMMMMMMMM MMMMMMMMMMMM MMMMMMMMMMMM MMMMMM3. COMPLETON INTERNAL AUDIT E E E E4. COMPLETION EXTERNAL AUDIT E E E E5. ANNUAL EXTERNAL AUDIT REPORT TO IDA E E E E

F. ANNUAL GROWTH, BUDGETARY & WORK PLANSI3/ I3

0o1. PRELDIINARY DRAFT ANNUAL GROWIH PLAN M M M M I2. FINAL DRAFT ANNUAL GROWITH PLAN E E E E |3. PROPOSED ANNUAL TECHNICAL WORK PLANS 14/ E E E E E4. IDA REVIEW OF WORK PLANS Wnli CU B B B B B5. DRAFT BUDGET PROPOSALS B E E E E6. FINAL PROCUREMENT PLANS AND SCHEDULES M E E E E7. PLANS & SCHEDULES FOR FARM INPUTS DELIVERY E E E E ES. SCHEDULES FOR DELIVERY OF AGRO-EQUIPMENT M M M M M

G. TRAINIG AND RESEARCH

1. COIMPIET DAF MANPOWER SURVEY E2. PREPARE 3 YEAR DAF ITRAINING PROGRAMME E3. UPDATE 3 YEAR TRAING PROGRAMME EE I I I4. PROPOSALS BY NARCC TO REVISE NARP 15/ E5. COMPLETION NATL AGRIC. RESEARCH PLAN EX

NOTE THE BEGINNNG, MIDDLE AND END OF THE MONTH, BY WHICH ACTIONS ARE TO BE COMPLETED. ARE DENOTE BY THE LETTERS 'B'. M' AND 'E. RESPECTVELY.


(CREDIT 1501-SI)


1993 1994 1995 1996 1997

ACnONS A ~~~~~~~~MI _J _A IS O ND F T-MTA MJ _1 _ AS IO T _ FJF rM A FM _ |OND 11-F |F|M| I|J JA|SIO|N|D|| |FMATM|I]-ACTIONS AMJSNTD JMMJ N JFMAM AISJONID TEAMIT SON ETmAM

H. PROTECT PERFORMANCE

1. QUARTERLYBREVIEW E B B B B B B B B B B B B B B2. ANNUAL PROJECT PERFORMANCE REVIEW 16/ B E EEE3. PROGRESS REPIR FOR MID-TERM REVIEW E4. MID-TERM REVIEW BI 5. PROJECT COMPLETION REPORT 17/

NOTE. THE BEGINNING. MIDDLE AND END OF THE MON TH. BY WHICH ACTIONS ARE TO) BE COMPLETED, ARE DENOT-E BY IHE LErrERS 'B3. 'M AND 'E * RESPECTIVELY.

1/ DEPARTMENT OF AGRICULTURE AND FORESTRY (D AF).2/ COMMITTEE ON AGRICULTURE PRODUCER INCENTI VES.3/ INCLUDES TEN ACCOUNTANTS TO BE PROVIDED B Y THE DEPARTMENT OF FINANCE, DEVELOPMENT AND ECONOMIC PLANNING TO MAN TIE TEN DAF INPUT STORESIDEPOTS.4/ SUBSIDY NO GREATER THAN 60 PERCENT, 40 PERCENT AND 20 PERCENT OF IMPORT PARITY IN MARCH 1993 AND FEBRUARY 1994 AND 1995.5/ FORT-IGHTLY. WHOLESALE AND RETAJL PRICE AT MAIN URBAN AND SELECTED LOCAL MARKETS TO BE POSTED AT VMIAGE LEVEL WITH NO MORE THAN A TWIO WEEK LAG.6/ FORTNIGHTLY, THE FARM-GATE PRICE OF RICE IN SELECTED AREAS OF IVS. MANGROVE SWAMPS. RIVERAIN SWAMPS, BOUILANDS AND UPLANDS.7/ TO BE NO LOWER THAN 60 PERCENT OF FOB PRICES/ RICE POUCY RESULTING FROM REVIEW OF FINDIN GS AND OPnONS REFLECTED IN STUDY.9/ THE OIL PALM ASSET INCLUDES IRE PLANTATIONS AND MILLS AT DARU AND GAMBIA-MATTRU.10/ IN WHOIE OR IN PART.11/ COSTS RECOVERED FROM THE SALE OF ASSP-FINA NCED INPUTS AT THE TEN DESIGNATED DAF INPUT STORES/DEPOTS.12/ ON A CONTINUOUS BASIS - DEPOSIT TO TREASURY TO BE MADE IMMEDIATELY ON RECOVERY OF COSTS.13/ CONSISTING OF OPERATIONAL WORK PLANS. BUD GETS. PROCUREMENT ACTION PLANS AND SCHEDULE, AND IMLEMENTATION SCHEDULES.14/ BY EACH DAF DIVION AND FOR EACH PROJECT C OMPONENT WHEIHER IMPLEMENTED BY BSL. SLRA/ILO OR DAF.A15/ NATIONAL AGRICULTURAL RESEARCH COORDINATING COUNCIL (NARCC) AND NATIONAL AGRICULTURAL RESEARCH PLAN (NARP).16/ A REVIEW OF TEN MONTHS IN THE INIIAL PROJEC T YEAh x17/ NO LATER IRAN JUNE 30. 1997.

AF4AGNov_ar 1992

- 82 - Annex H

Sierra LeoneAgriculture Sector Support Project

(Credit 1501-SL)

Terms of Reference for the Chief Technical Coordinator for the ASSP

Location: Department of Agriculture and Forestry (DAF), Coordination Unit.

Per io2d: 48 man months

Oualifications: Advanced Degree in Public or Business Administration orInstitutional/Organizational Development with at least 10 years fieldexperience in the management of agriculture and rural developmentprojects. It is preferable that seven of the ten years experience shouldhave been obtained in a developing country. Must be able to read,write and speak English fluently.

Responsibilities: The Chief Technical Coordinator for the ASSP (CTC) will reportdirectly to the Director-General (DG) of DAF in whose office theASSP Coordination Unit (CU) is to be located. His mainresponsibility will be the coordination and implementation of theAgriculture Sector Support Project (ASSP). He will work closelywith the DAF Division Chiefs and Chief Regional Officers as well askey relevant officials in all of the other implementing agencies for theASSP. He will also coordinate the technical assistance inputs of allforeign and local technical assistance assigned to the Project and inconsultation with the Director-General oversee the preparation andreview of the work plans of the technical assistance team.Specifically, the Chief Technical Coordinator will:

(a) ensure that all project components are executed in accordancewith the project timetable indicated in the ASSP ProjectRedesign and Implementation Report (PRAIR). For thispurpose, the CTC will draw up quarterly work plans for theactivities of the Coordinating Unit, six months in advance, anddevelop with the Chiefs of the DAF Divisions quarterly workplans also six months in advance;

(b) identify and promptly resolve, in consultation with theDirector-General and his officials, other ASSP implementingagencies and IDA, as the case may be, any bottlenecks andimpediments to the smooth implementation of the ASSP andany factors that may obstruct the achievement of its objectives;

(c) oversee the work of the Financial Controller and ChiefProcurement Officer to ensure that accounting andprocurement are undertaken in a timely manner, that soundinternational accounting practices are applied and that the

- 83 - Annex H

Bank's Guidelines on the Selection of Consultants andProcurement of Goods and Services are meticulously followed;

(d) oversee the operation and reporting of the Project and SpecialAccounts, and monitor counterpart funding and IFAD co-financing;

(e) coordinate the ASSP through close liaison with: (i) theTechnical Coordinator for Feeder Roads, located in the FeederRoads Department (DFR) of the Sierra Leone Roads Authority(SLRA) and the Chief Technical Advisor, ILO for the feederroads component; (ii) the Technical Coordinator for FarmInputs and the Technical Coordinator for Agro-Processing forthe Input Supply and Agro-Processing Component; and (iii)the Rural Finance Specialist located in the DevelopmentFinance Department (DFD) of the Bank of Sierra Leone (BSL)for the technical and logistical support to selected rural banks;

(f) consult closely with the National Extension Coordinator andthe National Research Coordinator for implementing theTechnology Transfer and Reseach-Extension LinkagesComponents;

(g) as required, and on behalf of the Director-General, monitoragricultural development initiatives of other donors andbringing to the attention of the Director-General and IDA anysubstantive variance with the Bank's near term sector strategyas enunciated in the ASSP, particularly with respect to itspolicy and institutional aspects;

(h) work with the Chiefs of the Crops, Forestry, Fisheries,Livestock and Land and Water Development Divisions andwith the Chiefs of the Monitoring, Evaluation and StatisticsDivision and the Communications Division on their quarterlywork programmes and budgets with the ultimate objective of:(i) increasing the adoption rates by farmers of the technologytransferred; (ii) improving impact assessments on crop yieldsand farm incomes as a result of the technology adopted; and(iii) promoting the sustained use of the technology transferred;

(i) monitor and report on ASSP implementation through thepreparation of quarterly progress reports for each componentand sub-component and for each DAF technical division andregional office, identify bottlenecks, and propose andimplement measures for strengthening implementation;

(j) identify gaps in the managerial skills within the DAF that maybe regarded as impediments to the strengthening ofmanagement capacity in the DAF and sector institutions;

- 84 - Annex H

(k) ensure compliance with the Bank's reporting requirements asspecified in the Bank's Project Redesign and ImplementationReport; and

(I) ensure that Sierra Leoneans are fully involved in all aspects ofASSP decisions and implementation and that local counterpartsare fully trained in key aspects of project coordination andimplementation.

At the end of his assignment with the ASSP, the Chief TechnicalCoordinator will prepare a report reviewing the performance andimplementation of the project/component/sub-component or area ofspecialization and based upon his experience make recommendationsor express thoughts for strengthening the general area of activity withwhich he was involved, for example, challenges and constraints in thecoordination and management of agricultural projects in Sierra Leone.

AF4AGNovember 1992

- 85 - Annex H


(Credit 1501-SL)

Terms of Reference for the Financial Controller

Location: Department of Agriculture and Forestry (DAF), Coordination Unit forthe ASSP.

Period: 48 man months.

Oualifications: Advanced Degree in Accounting (ACCA or its equivalent) with atleast 10 years experience in working with a Government agency in adeveloping country, preferably in Africa. Fluency in English.

Responsibilities: the Financial Controller will report directly to the Chief TechnicalCoordinator for the Agriculture Sector Support Project (ASSP) for allASSP-related finances, and to the Director-General of DAF for allother financial and budgetary matters. He will liase closely with theAccountant General and the Auditor General for matters relating to theGovernment's accounting regulations and acceptable commercialstandards and will be in overall authority for the DAF accounts andfinancial staff located in the Coordination Unit. Specific tasks willinclude but will not be limited to:

(a) ensuring that ASSP accounts in each implementing agency forthe ASSP are maintained in a form acceptable to IDA byworking closely with relevant Divisions of the DAF and withthe Bank of Sierra Leone (Development Finance Department),the Sierra Leone Roads Authority (Department of FeederRoads), the Technical Coordinator, Farm Inputs and theTechnical Coordinator, Agro-Processing;

(b) supervising the operation of the ASSP Project and SpecialAccounts and counterpart funding;

(c) ensuring that all ASSP Project and Special Accounts areproperly maintained in a manner that will facilitate internaland external audit;

(d) reviewing contract documentation and disbursement requests toIDA and IFAD to ensure that the material is in accord withthe legal, accounting and procurement requirements of IDAand IFAD;

(e) ensuring that the annual capital and recurrent actual andproposed budgets of the DAF, DFR in SLRA and the DFD in

- 86 - Annex H

the Bank of Sierra Leone are consistent with the objectives ofthe ASSP;

(f) providing technical support to administrative sections ofregional offices in the preparation of annual recurrent andcapital budgets;

(g) guiding counterpart staff in implementing improvements to theexisting accounting systems at headquarters and at regionallevels - this would include, improving and regularizingaccounting returns and reporting systems for each region; and

(h) bringing to the prompt attention of the Chief TechnicalCoordinator for the ASSP any problems with respect toaccounting and budgetary problems encountered in any of theASSP-components and suggesting practical recommendationsfor early resolution.

At the end of his assignment with the ASSP, the Financial Controllerwill prepare a report reviewing the performance and implementationof the project/component/sub-component or area of specialization andbased upon his experience make recommendations or express thoughtsfor strengthening the general area of activity with which he wasinvolved, for example, the challenges and constraints in financial andbudgetary accounting and control in Sierra Leone.

AF4AGNovember 1992

- 87 - Annex H


(Credit 1501-SL)

Terms of Reference for the Agricultural Policy Planner

Location: Department of Agriculture, Forestry and Fisheries (DAF).

Period: 48 man months

Oualifications: Advanced Degree in Economics with specialization in economicdevelopment planning and at least 10 years experience in a developingcountry in agricultural policy planning and analysis. Fluency inEnglish and good communication and writing skills.

Responsibilities: The Agricultural Policy Planner (APP) will report directly to theDirector-General (DG) of DAF. His overall task will be to advise theDG on agricultural policy, agricultural growth performance andprospects, and oversee the formulation of an annual agriculturalgrowth plan as required by the Agricultural Sector Support Project(ASSP). The APP will work closely with the National ExtensionCoordinator, National Research Coordinator, Chief Agriculturist,Division Chiefs of the Agriculture, Forestry, Fisheries, Livestock,Land and Water Development, Monitoring, Evaluation and Statistics,and Communications Divisions and will attend all meetings of theStanding Committee of the DAF. Specific tasks will include:

(a) growth analysis, marketing and price policy analysis,institutional policy analysis, strategy formulation, andidentification and formulation of programmes for agriculturaldevelopment based on economically sound criteria;

(b) assessing, each year, aggregate policy and growth performanceof the agricultural sector within the context of the macroeconomic adjustment reform programme;

(c) identifying specific factors, by each sub-sector, responsible forstrong and poor growth, as the case may be, taking intoaccount the impact on yields and output of individual food andcash crops, artisanal fish catch along the coast and in inlandswamps, fuel wood and charcoal output, and the change in thelivestock herd and number of small ruminants;

(d) analyzing constraints to higher agricultural output andproductivity with specific attention to price and non-priceincentives in agriculture - constraints in respect of technology,credit, delivery of basic agricultural services, and transport,

- 88 - Annex H

storage and marketing infrastructure will be singled out fordiscussion;

(e) assessing the impact on agricultural growth of (i) theprevailing domestic trade and exchange rate policy regime; (ii)the international market for traded goods; (iii) the domesticrural labour market; (iv) trends in private investment inagricultural production, processing and marketing; (v)operation of the rural financial market; (vi) bilateral andmultilateral food aid delivered, distributed and monetized; and(vi) environmental practices in the agriculture sector by themain ecological zones;

(f) assessing the implications of growth performance in the year,for the availability of food and levels of nutrition, farmerprofitability, trends in marketed output, imports and exports,and the balance of payments;

(g) formulating an annual agricultural growth plan (AAGP) basedon agricultural policies and priorities designed to maximizegrowth, productivity and farm incomes and reduce policy andeconomic distortions. The priorities will be clearly definedand will be decided taking into account intra-sectoral andinter-sectoral trade-offs required to achieve the targetedgrowth. The sub-sector strategies for the year will reflectthese priorities and will form the basis for work plans forDAF Divisions for the year; and

(h) training local counterpart staff in all of the above tasks.

At the end of his assignment with the ASSP, the Agricultural PolicyPlanner will prepare a report reviewing the performance andimplementation of the project/component/sub-component or area ofspecialization and based upon his experience make recommendationsor express thoughts for strengthening the general area of activity withwhich he was involved, for example, challenges and constraints inagricultural policy planning in Sierra Leone.

AF4AGNovember 1992

- 89 - Annex H


(Credit 1501-SL)

Terms of Reference for the Swamp and Watershed Management Expert

Location: Department of Agriculture and Forestry (DAF), Land and WaterDevelopment Division (LAWDD).


Oualifications: First Degree from a University with a well recognized school ofAgricultural Engineering or Irrigation Technology, and a MastersDegree in Hydrology, Irrigation Economy, Irrigation Science orrelated fields. The Expert should have at least ten years practicalexperience in irrigation with emphasis on swamp irrigation and smallfarmer systems, and in the management of catchments and swamps.Of this experience, a minimum of five years in countries with agro-climatic conditions similar to Sierra Leone would be desirable.Experience with rice production agronomic requirements would bepreferred.

Responsibilities: The primary objectives of the swamp and watershed managementexpert (SWME) are to assist the DAF to develop an internal capacityto design and install environmentally sustainable, practical, low costand technically efficient field-level practices in swamp improvementand management for rice and other crop production systems and in sodoing assist farmers to increase productivity. The SWME will reportto the Chief of the Land and Water Development Division of DAF.The SWME will be required to travel widely within the country andwork with the field staff of LAWDD sections of regional offices. Hewill experiment with swamp water management techniques with aview to improving those already in use by farmers and advise onoverall catchment management to enable the maintenance of anoptional water cycle and minimum soil and water loss. Specific taskswill include, but will not be limited to:

(a) assisting LAWDD staff of the DAF with the identification ofswamp areas for improvement/consolidation, the preparationof plans, technical designs and specifications, and costestimates for implementation;

(b) training counterpart and support staff in the design, fieldconstruction and maintenance of low cost swamp irrigation,flood control and drainage distribution systems;

(c) training staff and farmers in techniques for the properoperation and maintenance of systems;

- 90 - Annex H

(d) supervising the selection and establishment of demonstrationplots at representative sites and working closely with the ChiefAgriculturist, National Extension Coordinator, agronomistsand Subject Matter Specialists in the DAF in the developmentof programs to demonstrate labor-efficient water andcatchment management, crop management, tillage andharvesting techniques to farmers;

(e) reviewing water and catchment management practices givingregard to available local information and previous technicalstudies maintained by the LAWDD, and identifying means ofimproving these practices through field levelling, improvedtillage and seed bed preparation, and through minimizing thelabor input where the labour market so requires;

(f) reviewing water supply and water use patterns, and monitoringdata to assist the Swamp Irrigation Users Groups orAssociations make decisions with respect to water usepractices and water conservation taking into account laboravailability and competing demands for labour;

(g) reviewing the techniques currently used for the management ofirrigated crops in different agro-ecological zones and devisingmeans of improving on these in a manner that wouldcontribute positively to the farmers' welfare. These practiceswill take into account labor scarcity, and the need to maximizelabor efficiency, group/participatory management of theirrigation systems, and cost recovery measures;

(h) reviewing with soil scientists and agronomists of DAF, theNational Agricultural Research Council (NARCC), RokuprRice Research Station (RRRS), and the University of Njala(NUC), Agricultural Training College, the soil analytical data.Particular emphasis will be placed upon the nutrient andmicro-nutrient status of the soils for establishing fertilizerrequirement based on the real, rather than the perceived, needsof the crops. The SWME will also assist in training staff andfarmers to recognize the symptoms of soil salinity and/orsodicity and iron toxicity from analytical data and fieldobservations and to advise on appropriate remedial actions;

(i) training local counterpart staff in performing all of the abovetasks.

At the end of his assignment with the ASSP, the Swamp andWatershed Management Expert will prepare a report reviewing theperformance and implementation of the project/component/sub-

- 91 - Annex H

component or area of specialization and based upon his experiencemake recommendations or express thoughts for strengthening thegeneral area of activity with which he was involved, for example, thechallenges in constraints in swamp development and consolidation andwatershed management in Sierra Leone.

November 1992

- 92 - Annex H


(Credit 1501-SL)

Terms of Reference for the Rural Finance Specialist

Location: Bank of Sierra Leone (BSL), Office of the Director, DevelopmentFinance Department.


Oualifications: Advanced Degree in Business, Agricultural Economics or relateddiscipline with at least seven years operational experience in banking.Five of the seven years experience should have been obtained in adeveloping country in a rural setting with experience in a managementposition.

Responsibilities: the Rural Finance Specialist will work directly with the Director,Development Finance Department of BSL, to implement the ASSP'scomponent for strengthening rural banks. Specific tasks will includebut will not be limited to:

(a) reviewing the existing financing modalities of the rural sectorand recommend measures for improvement;

(b) reviewing the operations of rural banks and determiningmethods and efficiency measures for improving savingsmobilization, credit delivery and financial control;

(c) developing a monitoring system for rural finance operations inthe formal and informal sectors;

(d) establishing a methodology for assessing and reviewing thedemand for seasonal, medium and long-term loans by type ofagricultural activity;

(e) establishing a system to monitor funds extended to rural banksby the National Development Bank (NDB) under various linesof credit financed by donors including the ADB;

(f) assessing the training needs, organizing training programmesand workshops, and preparing, in consultation with the BSL,training manuals for rural bank managers and loan officers;

(g) liaising closely with the Office of the National ExtensionCoordinator in the Department of Agriculture, Forestry andFisheries (DAF) for assessing the credit needs of individuals

- 93 - Annex H

and group farmers with a view to facilitating group lending byrural banks;

(h) training local counterpart staff in carrying out all of the abovetasks; and

(i) bringing to the prompt attention of the Chief TechnicalCoordinator for the ASSP any problems with respect to theimplementation of ASSP-financed logistical, technical andtraining support to the participating rural banks and suggestingpractical recommendations for early resolution.

At the end of his assignment with the ASSP, the Rural FinanceSpecialist will prepare a report reviewing the performance andimplementation of the project/component/sub-component or area ofspecialization and based upon his experience make recommendationsor express thoughts for strengthening the general area of activity withwhich he was involved, for example, challenges and constraints inrural/agricultural credit institutions in Sierra Leone.

AF4AGNovember 1992

- 94 - Annex H


(Credit 1501-SL)

Terms of Reference for the Technical Coordinator for Farm Inputs

Location: Department of Agriculture and Forestry (DAF) RegionalHeadquarters, Makeni.


Oualifications: Post-Graduate Degree in Agricultural Technology and at least 7 to 10years experience in crop technology, input handling, and training offarm leaders, preferably in West Africa. Experience in organizingfarmers groups and associations and providing training to them in thepurchase of inputs and marketing of output would be desirable.

Responsibilities: The primary objectives of the Technical Coordinator's (TC's)assignment are to assist with the implementation of the input supplysub-component of the overall Input Supply and Agro-Processingcomponent of the Agriculture Sector Support project (ASSP). Inparticular, the Technical Coordinator will ensure that the ASSP-financed inputs are physically available at designated DAF storesand/or depots by a particular date to be determined with reference to aspecified crop calendar previously finalized with the NationalExtension Coordinator and the Chief Agriculturist, DAFF. The TCwill report to the Chief Technical Coordinator of the ASSP, who willbe located within the Office of the Director-General, DAF and willliaise closely with the DAF counterpart staff and the TechnicalCoordinator for Agro-Processing. The TC will be required to travelwidely within the country and ensure that fertilizer and oil palmseedlings are made available for the timely purchase by farmers. Hewill be responsible for:

(a) assessing the demand for specific farm inputs for thegeographical area to be served by each designated inputstore/depot;

(b) logistics and planning, in particular, preparing auiplyschedules for ensuring the timely availability of stocks in eachdesignated DAF store/depot;

(c) preparing a detailed work plan for and the implementation ofthe input supply sub-component including procurement actionplans and schedules and ensuring consistency at all times withthe input supply sub-component and the relevant crop calendar- the detailed work plan will contain assessments of quantitiesof each of the inputs required for each crop season at each of

- 95 - Annex H

the ten selected input stores/depots and the dates by whichthese supplies should be delivered to the respective locations;

(d) preparing Guidelines for Input Supply and Storage for staff ateach input store/depot for carrying out the detailed work plansdrawn-up for it;

(e) ensuring that adequate quantities of farm inputs are in facttransported and stocked at the selected DAF inputstores/depots, and that these are appropriately stored;

(f) ensuring that staff of each of the ten selected inputstores/depots (i) maintain regular up-to-date detailed records ofall inputs stocked and supplied to farmers (ii) comprehensiverecords of sale transactions for all inputs sold at the designatedinput stores/depots and (iii) work closely with the extensionofficers and monitoring and evaluation officers assigned to theadministrative circle in which each input store/depot is locatedto monitor the use of the ASSP-financed inputs purchased atthese stores;

(g) maintaining liaison with each of the ten input stores/depots onan on-going basis as well as holding quarterly joint meetingswith them to monitor the progress of the input supply sub-component;

(h) sensitizing farmers to the need for farm level storage andcorrect storage practices especially for fertilizer;

(i) supervising the work of the Technical Expert in InputMarketing and the Expert in Agricultural Extension;

(j) training and educating farmers and counterpart staff in inputmarketing and storage; and

(k) bringing to the prompt attention of the Chief TechnicalCoordinator for the ASSP any major problems with respect tothe provision and sale of ASSP-financed inputs at the tenstores/depots and suggesting practical recommendations forearly resolution.

Tasks (a), (b), (c) and (d) will be carried out with the assistance of theExpert in Agricultural Extension and task (i) with the assistance of theUnited Nations Volunteer in Cooperative Training.

At the end of his assignment with the ASSP, the TechnicalCoordinator will prepare a report reviewing the performance andimplementation of the project/component/sub-component or area of

- 96 - Annex H

specialization and based upon his experience make recommendationsor express thoughts for strengthening the general area of activity withwhich he was involved, for example, challenges and constraints inmarketing and input supply in Sierra Leone.

AF4AGNovember 1992

- 97 - Annex H


(Credit 1501-SL)

Terms of Reference for the Technical Coordinator for Agro-Processing 1/

Location: Department of Agriculture and Forestry (DAF) Regional Headquarters,Makeni


Oualifications: Post-Graduate Degree in Agricultural Technology/Engineering andMechanical Engineering with specialization in food crop processing. Atleast ten years experience in post-harvest technology at the farm andvillage level is required, preferably in West Africa. Experience intraining farmers' associations and groups to establish and operate crop-processing centers will be highly desirable.

Responsibilities: The primary objective of the technical assistance is to assist the DAF toimplement the agro-processing sub-component of the larger input supplyand agro-processing component of the Agriculture Sector Support Project(ASSP). The Technical Coordinator will collaborate with DAFcounterpart staff and two United Nations Volunteers (UNVs) to carry outhis responsibilities. His main responsibility will be to ensure that fifteenintegrated rural crop-processing centers are established by selectedfarmers' associations, that they are operated in an efficient manner, andthat costs of the crop-processing machinery and equipment is properlymaintained by the farmers' association and fully recovered by the ASSPfour months prior to project completion. The TC will report to the ChiefTechnical Coordinator of the ASSP, who will be located within the Officeof the Director-General, DAF and will liaise closely with the DAFcounterpart staff and the Technical Coordinator for Farm Inputs. The TCwill be required to travel widely within the country. Specifically, he willbe responsible for:

(a) preparing a detailed work plan for the implementation of the agro-processing sub-component ensuring at all times consistency withthe input supply sub-component and with the crop calendarsrelevant to specific ecological zones;

(b) selecting fifteen farmers' associations (from a list of 42 farmers'associations that had participated in two post-harvest technologyprojects prepared by the FAO and funded by the UNDP) based onthe criteria established by the ASSP for qualifying farmers'associations for participation in the agro-processing sub-component;

- 98 - Annex H

(c) preparing an action-plan for the establishment by the selectedfarmers' associations of each of the fifteen selected integratedcrop-processing centers (ICPC);

(d) preparing an action-bound time-table with (a) drawings and layoutplans for the construction of each ICPC and (b) an amortizationplan for the capitalization of the crop-processing machinery andequipment;

(e) ensuring that each of the requirements in the action-bound time-table are fully understood by the members of each participatingfarmers' association and accepted by them;

(f) drawing-up specifications for the machinery and equipment that isto be procured and ensuring that this machinery and equipment isappropriate for the ecology within which the particular ICPC islocated;

(g) ensuring full cost recovery of the crop-processing machinery andequipment by assisting, as far as possible, members of theparticipating farmers' associations to act in compliance with theamortization plan;

(h) conducting training courses/workshops/seminars for the membersof the farmers' associations, DAF counterpart staff and technicians(i) in the operation, maintenance and management of the integratedcrop-processing centers, especially the machinery and equipment;and (ii) to strengthen the basic organization and functioning of thefarmers' associations;

(i) based on the Bank's Guidelines for the Selection of Consultants,arranging for a services contract to procure, in accordance withthe Bank's International Competitive Bidding procedures, the crop-processing machinery and equipment and vehicles for the sub-component;

(j) supervising the work of the two UN Volunteers who would assistthe fifteen selected farmers' associations to establish, operate andmaintain the ICPCs especially the machinery and equipment;

(k) training local counterpart staff in performing all of the abovetasks;

(I) preparing a completion report four months prior to the projectclosing date; and

(m) bringing to the prompt attention of the Chief TechnicalCoordinator for the ASSP any major problems with respect to theestablishment, operation and cost-recovery at the participating

- 99 - Annex H

ICPCs and suggesting practical recommendations for earlyresolution.

At the end of his assignment with the ASSP, the Technical Coordinatorwill prepare a report reviewing the performance and implementation of theproject/component/sub-component or area of specialization and based uponhis experience make recommendations or express thoughts forstrengthening the general area of activity with which he was involved, forexample, challenges and constraints in post-harvest processing andmarketing in Sierra Leone.

1/ The basic terms of reference for the agro-processing component, made availableby the FAO Office in Freetown, have been amended slightly.

AF4AGNovember 1992

-100 - Annex H


(Credit 1501-SL)

Terms of Reference for the Technical Coordinator for Feeder Roads

Location: Sierra Leone Roads Authority (SLRA), the Department of Feeder Roads(DFR).


Qualifications: Post-Graduate Degree in Civil Engineering with at least 15 years post-qualification experience including five years experience in managingprojects in road construction and management and five in feeder/rural roadconstruction and supervision, preferably in Africa. Fluency in English.

Responsibilities: The Technical Coordinator for Feeder Roads (TCFF) will oversee theimplementation of the Feeder Roads component of the Agriculture SectorSupport Project (ASSP) including the labour-intensive sub-component.The latter will be supervised by the ILO under the direction of the ChiefTechnical Advisor, ILO, based in Freetown, Sierra Leone. Overallcoordination and implementation of the Project will rest with the ASSPCoordination Unit. This will be established in the Department ofAgriculture and Forestry (DAF) within the Office of the Director-GeneralDAF and will be headed by a Chief Technical Coordinator for the ASSP.The TCFF will report directly to the Director, Department of FeederRoads, Sierra Leone Roads Authority (SLRA). Specifically, the TCFFwill:

(a) prepare annual work programmes and assist the Director, DFR inthe preparation of procurement documents for works, services andgoods to be procured under the ICB sub-component - procurementfor the labour-intensive sub-component will be undertaken by theILO and the TCFF and Director, DFR will be kept fully andregularly informed of this procurement;

(b) liaise with the Chief Technical Advisor, ILO for following theimplementation and progress with work plans for the labour-intensive sub-component to enable regular quarterly reporting ofthe sub-component;

(c) ensure strict adherence to technical specifications throughmonitoring the quality of construction at rehabilitation sites;

(d) maintain correct up-to-date records of all financial transactions andcommitments made under the feeder roads component;

- 101 - Annex H

(e) monitor overall progress of the feeder roads component (both ICBand labour-intensive) through preparation of monthly and quarterlyprogress reports assessing physical, procurement and institutionalachievements under each of the two sub-components and thesubmission of these to the Chief Technical Coordinator of theASSP Coordination Unit in DAF;

(f) ensure that sound environmental procedures and controls areapplied;

(g) train local counterpart staff in performing all of the above tasks;

(h) at the end of the project period, prepare and submit a ProjectCompletion Report assessing the extent to which project physicaland institutional objectives were attained, an analysis of actualversus projected benefits, and implementation performance; and

(i) bringing to the prompt attention of the Chief TechnicalCoordinator for the ASSP any major problems with respect to theequipment-intensive or labour-intensive feeder road sub-components and suggesting practical recommendations for earlyresolution.

At the end of his assignment with the ASSP, the Technical Coordinatorwill prepare a report reviewing the performance and implementation of theproject/component/sub-component or area of specialization and based uponhis experience make recommendations or express thoughts forstrengthening the general area of activity with which he was involved, forexample, challenges and constraints in feeder road rehabilitation in SierraLeone.

AF4AGNovember 1992

- 102 - Annex H


(Credit 1501-SL)

Terms of Reference for the United Nations Volunteer in Statistics

Location: Department of Agriculture and Forestry (DAF) - the Monitoring,Evaluation and Statistics Division (MESD).


Oualifications: University Degree in Statistics, Economics or Agricultural Economics. Atleast four to five years practical experience with data collection andcomputerized data base storage and processing of agricultural statistics andcrop forecasting is required. Fluency in English.

Responsibilities: the UNV will work directly with the Chief of the Monitoring, Evaluationand Statistics Division to establish a comprehensive statistical data base formonitoring key growth and structural variables in the agricultural sector.Specifically, the UNV will set-up a computer data base system forrecording and up-dating statistical information with respect to:

(a) time series agricultural data at the most dis-aggregated district orcircle level on production costs, yields and acreage by individualcrops in the main ecologies and regions of the country; in asimilar manner, data will also be recorded for the forestry,artisanal fisheries and livestock (including small ruminants) sub-sectors;

(b) the size and ownership of (i) food crop, cash crop and tree cropfarms; (ii) forest farms and concessions; (iii) fish farms; and (iv)livestock farms; and where integrated farming systems prevail, thenumber and types of agricultural activities and production yieldsby each activity;

(c) for each circle, the number of farms (by farm size, ownership andlevel of technology use) where yield-enhancing technology is beingdisseminated by the agricultural extension services of the DAF andthe resulting annual change in yields;

(d) weekly agricultural price statistics at the farmgate, retail andwholesale levels for all food and cash crops including tree crops;

(e) monthly transportation costs by region/district for each crop, forforest products including fuel wood and charcoal, for fish and forlivestock and small ruminants;

- 103 - Annex H

(f) weekly prices, in the main local markets, of agricultural inputs,farm tools and implements, and mechanization services;

(g) by farm size and agricultural activity in each month of the year,the number of agricultural/farm labourers (by age and sex)employed, the duration for which employed each month, and thedaily wage (excluding and including food);

(h) crop and farm budgets for each farming activity;

(i) by type of agricultural activity, the levels and changes inindebtedness of farmers, the size and terms of the loans (frominformal and formal sectors) and the period over which the loan isactually repaid or anticipated to be repaid;

(j) income, consumption and investment expenditure by farmhousehold with key characteristics of each farm householdrecorded (that is, location, size and activity(s) of the farmhousehold); and

The UNV will also train local counterpart staff in establishing andmaintaining a computer data base for all of the above and in providingtechnical assistance with guiding M&E staff in the design of suitablequestionnaires/surveys for data collection and analysis. He/she will alsobring to the prompt attention of the Chief Technical Coordinator of theASSP, any major problems encountered in establishing and operating thestatistical data base.

At the end of his assignment with the ASSP, the UNV will prepare a reportreviewing the performance and implementation of the project/component/sub-component or area of specialization and based upon his experience makerecommendations or express thoughts for strengthening the general area of activitywith which he was involved, for example, challenges and constraints in theestablishment and operation of agricultural data base systems in Sierra Leone.

AF4AGNovember 1992

- 104 - Annex H


(Credit 1501-SL)

Terms of Referencefor a

Technical Expert in Input Marketing

Location: Makeni, Headquarters of the Input Supply and Agro-ProcessingComponent of the Agriculture Sector Support Project (ASSP).


Oualifications: Post-graduate degree in Agricultural Technology and Marketing and atleast 7 to 10 years field experience in crop technology, input handling,and training of farm leaders, preferably in West Africa. Experience inadvising farmers and farmers' organizations and associations at the villagelevel in input purchase and marketing will be useful. Fluency in Englishand good communications skills.

Responsibilities: The primary objectives of the assignment are to assist the TechnicalCoordinator for Farm Inputs in implementing the input supply sub-component of the Input Supply and Agro-Processing component of theAgriculture Sector Support project (ASSP). In particular, the assignmentrequires that all ASSP-financed inputs are made available at designatedDAF stores/depots by a specified date determined by the operational cropcalendar finalized each year with the Extension Coordinator and ChiefAgriculturist, DAF as well as with the relevant Chief Regional Officers.The Technical Expert will report to the Technical Coordinator for FarmInputs and liaise closely with the DAF counterpart staff and the technicalassistance team for the Agro-Processing sub-component. The TechnicalExpert will be required to travel widely within the country and ensure thatfertilizer and oil palm seedlings are placed within the timely reach offarmers. Specific tasks will include:

(a) preparation of a detailed annual and quarterly overallimplementation work plan and work plans for each of theindividual ten stores/depots;

(b) ensuring that each of the specified ten DAF stores/depots areadequately supplied with ASSP-financed farm inputs and that theinputs are appropriately stored; this would require regular periodicassessments of demand for ASSP-financed inputs for thegeographical area served by each selected DAF store

(c) logistics planning, in particular, preparing supply schedules toensure the timely availability of stocks in each designated DAFstore/depot based on a predetermined crop calendar;

- 105 - Annex H

(d) ensuring the maintenance of regular and up-to-date records ofinputs stocked and sold to farmers for each of the tenstores/depots;

(e) maintaining close liaison between the input supply stores/depotsand sensitizing famers to farm level storage;

(f) apprising extension staff of DAF of the key factors in the cost-effective storage, transport and marketing of inputs with the solepurpose of enabling the extension officers to regularly disseminateadvice to farmers (private sector) rather than the DAF (publicsector) marketing inputs;

(g) preparation of Guidelines to train farmers in input handling andstorage, particularly with respect to factors related to climate andtemperature in the handling and marketing of farm inputs,especially fertilizer;

(h) working with farmers and sensitizing them to the advantages ofgrouping together to benefit from economies of scale in thepurchase of inputs and in the marketing of inputs;

(i) training farmers in the technical, logistical and accounting aspectsin input purchase and marketing;

(i) bringing to the prompt attention of the Technical Coordinator forFarm Inputs any problems with the delivery, storage and sale ofASSP-financed inputs at the ten DAF stores/depots andsuggestions for early resolution

(k) at the end of his assignment with the ASSP, the technicalcoordinator/expert/specialist will prepare a report reviewing theperformance and implementation of the project component/sub-component and making recommendations for strengthening thegeneral area of activity with which he was involved, for example,marketing and input supply systems within the country.

At the end of his assignment with the ASSP, the Technical Expert willprepare a report reviewing the performance and implementation of theproject/component/sub-component or area of specialization and based uponhis experience make recommendations or express thoughts forstrengthening the general area of activity with which he was involved, forexample, challenges and constraints in private sector input marketing inSierra Leone.

AF4AG\November 1992

- 106 - Annex H


(Credit 1501-SL)

Terms of Referencefor an

Agricultural Extension Specialist

Location: Makeni, Headquarters of the Input Supply sub-component.


Oualifications: Degree in Agriculture with specialized kmowledge of crop production inthe tropics with at least seven to ten years experience in practicalagricultural extension training including the training and visit (T&V)method. Experience in training members of farmers' associations andcooperatives and management training would be desirable.

Responsibilities: The primary objective of the assignment is to assist the TechnicalCoordinator for Farm Inputs to implement the input supply sub-componentof the larger Input Supply and Agro-Processing component. TheExtension Specialist will report directly to the Technical Coordinator forFarm Inputs and maintain close liaison with the National ExtensionCoordinator, Chief Agriculturist, other technical Division Chiefs of DAFFand the Chief Regional Officers. He will also maintain close liaison withthe United Nations Volunteer in Farmer Training in Post-HarvestTechnology. The Extension Specialist will:

(a) review the effectiveness of the extension systems in place in eachRegion and suggest measures for making these more cost-effective;

(b) review, in-depth, the effectiveness of linkages between extensionprogrammes, applied research and extension and farmer trainingand suggest improvements for strengthening these linkages; thereview and suggestions should be thoroughly discussed with theChiefs of Technical Divisions of the DAF, the NationalAgricultural Research Coordinating Council (NARCC), seniorscientists and officials of the Rokupr Rice Research Station(RRRS) and other agricultural research institutes, and the NjalaUniversity College (NUC);

(c) provide guidance on the substance and design of training materials(to train farmers) produced by the Communications Unit of DAFFwith a view to expanding farmers' receptivity to technicalinformation disseminated by agricultural extension officers onyield-enhancing technology and on the importance of farmers'feedback to extension officers, subject matter specialists and

- 107 - Annex H

scientists of agricultural research scientists on their experiencewith the use of this technology;

(d) work closely with the Staff Training and Development Unit toconduct periodic re-orientation and training workshops foragricultural extension officers in (i) the methods of technologydissemination to individual farmers and members of farmers'associations and (ii) designing methods for assisting grassrootsfarmers' associations and groups - both (i) and (ii) should take intoaccount variations in local culture, customs and approaches;

(e) conduct village level meetings and educate the designated groupleaders and members of farmers' associations on improved croptechnology, farm and tree husbandry, and sound environmentalpractices; and

(f) regularly apprise the National Extension Coordinator and theNational Research Coordinator of his findings concerning theperformance of the agricultural extension services and links withagricultural research and suggest recommendations for theirfurther strengthening.

At the end of his assignment with the ASSP, the Agricultural ExtensionSpecialist will prepare a report reviewing the performance andimplementation of the project/component/sub-component or area ofspecialization and based upon his experience make recommendations orexpress thoughts for strengthening the general area of activity with whichhe was involved, for example, challenges and constraints in agriculturalextension services in Sierra Leone.

AF4AGNovember 1992

- 108 - Annex H


(Credit 1501-SL)

Terms of Referencefor a

United Nations Volunteer in Farmer Training in Post-Harvest Technology

Location: Makeni, Headquarters of the Input Supply sub-component.


Oualifications: Degree in Agriculture with background in Mechanical Engineering and atleast five to seven years experience in training subsistence farmers inleast-developed countries in post-harvest technology, especially in small-scale crop processing techniques.

Responsibilities: The primary objective of the assignment is to assist the TechnicalCoordinator, Agro-Processing, to implement the agro-processingcomponent. Specifically, the United Nations Volunteer (UNV) will liaiseclosely, especially in the field, with counterpart staff of the Department ofAgriculture and Forestry. The Expert will:

(a) prepare draft layout plans and drawings for each of participatingcrop-processing centers;

(b) prepare detailed workplans for each crop-processing center, byDistrict, in accordance with the current crop calendar;

(c) sensitize farmers for the need to strengthen their associations, andassisting them in organizing their management groups;

(d) conduct village level meetings and educate the designated groupleaders and members of farmers' associations on the importance offostering viable farmers' associations where crop-processing is astated objective;

(e) provide on-the-job training to members of participating farmers'associations on the chain of post-harvest operations to village levelcrop-processing and their integration with the relevant cropcalendar;

(f) prepare the training materials for each crop-processing center;

(g) conduct training for extension workers on the operation andmanagement of the crop processing centers;

- 109 - Annex H

(h) hold regular meetings with the farmers and extension workers andbased on these meetings prepare progress notes;

(i) bring to the attention of the CTA any problems encountered in theoperation and management of the crop processing centers for earlyresolution.

At the end of his assignment with the ASSP, the UNV will prepare areport reviewing the performance and implementation of theproject/component/sub-component or area of specialization and based uponhis experience make recommendations or express thoughts forstrengthening the general area of activity with which he was involved, forexample, challenges and constraints in farmers' adoption of post-harvesttechnology in Sierra Leone.

AF4AGNovember 1992

- 110 - Annex H


(Credit 1501-SL)

Terms of Reference for the ILO Engineering Advisor I/(Feeder Roads Labour-Intensive Sub-Component)

Location: ILO, Freetown and regional locations as required.


Oualifications: The Engineering Adviser should have a University degree or equivalent inCivil Engineering, followed by at least 15 years of professionalexperience, a major part of which should have been in developingcountries, preferably including sub-saharan africa. He/She should bethoroughly familiar with labor based construction methods in connectionwith feeder roads and infrastructure. He/She should have ability to trainlocal counterpart staff, National staff and Technicians. He/She should befluent in English and be prepared to live under difficult conditions andtravel frequently within project areas.

Responsibilities: The Engineering Advisor will be in charge of the Technical AssistanceTeam supervising the implementation of the Feeder Road Component ofthe Agriculture Sector Support Project (ASSP) in Tonkolili, Port Loko,Kambia, Bombali and Koinadugu Districts of Sierra Leone. He/She willwork under the direction of the ILO Chief Technical Advisor who headsthe Technical Assistance Team supervising the Feeder Road Rehabilitationand Maintenance Program in Sierra Leone. He/She in close cooperationwith staff seconded by the Government of Sierra Leone, National staff andUNVs posted to the Project will carry out the following duties:

(a) advise and assist senior personnel seconded to the project inplanning, implementation and monitoring of the Feeder RoadRehabilitation activities;

(b) advise and assist in preparing work plans, implementation andmaterial schedules and other programs for the smoothimplementation of the project;

(c) advise and assist in preparing lists of all procurement of plant andequipment, tools, materials, both local and overseas;

(d) manage and coordinate all project inputs provided by GOSL andWorld Bank, ensuring that inputs are effectively used;

(e) prepare draft policy papers, guidelines, systems and proceduresand training materials;

- 111 - Annex H

(f) organize seminars and specific training courses, for National staff,and oversee the training carried out by UNVs;

(g) advise and assist in setting up a system for the utilization of localcontractors for feeder road rehabilitation and, thereafter, for themaintenance of the newly rehabilitated roads;

(h) liaise with all International and National staff implementing theASSP Programme including the World Food Programme.

1/ The basic terms of reference for the labour-intensive feeder roads component weremade available by the ILO Technical Advisor in Freetown.

AF4AGNovember 1992

- 112 - Annex H


(Credit 1501-SL)

Terms of Reference for UNV - Procurement Officer(Feeder Roads Labour-Intensive Sub-Component)

Location: ILO Office, Freetown and regional locations as required.


Oualifications: The UNV should preferably have a University Degree in CivilEngineering or equivalent followed by at least three years professionalexperience. He/She should have a good knowledge of English.

Responsibilities: The UNV Procurement Officer will be attached to the World Bankfinanced Feeder Road Component of the Agriculture Sector SupportProject (ASSP). The UNV will be a member of the ILO TechnicalAssistance Team stationed in Freetown, with frequent travel to the siteoffices/stores. His main responsibilities will be as follows:

(a) assist in organizing all local procurement of materials, tools andspare parts etc;

(b) assist in setting up a stores system for the selected sites and carryout training of local staff, store-keepers and others as needed;

(c) organize regular stores auditing;

(d) assist in planning material utilizations;

(e) organize a system for keeping all records of local and overseasprocurement;

(f) assist in organizing, clearing and transporting all overseasprocurement.

AF4AGNovember 1992

- 113 - Annex H


(Credit 1501-SL)

Terms of Reference for UNV - Mechanical Engineer(Feeder Roads Labour-Intensive Sub-Component)

Location: ILO, Freetwon and regional locations as required.

PMrio2d: 36 months

Oualifications: The UNV should have a University degree in mechanical engineering,followed by at least four years professional experience, part of whichshould preferably have been in developing countries. He/She should havea good knowledge of English.

Responsibilities: The UNV Civil Engineer, along with a second UNV Civil Engineer,would assist in implementing the World Bank financed Feeder Roadscomponent of the Agriculture Sector Support Program (ASSP). TheUNV will be a member of the ILO Technical Assistance Team and wouldwork under the supervision of the ILO Engineering Adviser. The UNVwould organize and supervise the site mechanical workshop to beestablished at suitable locations with the project area and would carry outthe following duties:

(a) assist in elaborating technical specifications and buildingdocuments for machinery and equipment;

(b) carry out inspections of delivered equipment, set up stores andstores management systems for all spare parts;

(c) set up a system for the maintenance of the equipment and directthe carrying out of maintenance and repair;

(d) assist in planning of equipment utilization;

(e) keep records of expenditures by equipment item;

(f) carry out training of plants and auto mechanics, store keepers andother associate staff.

AF4AGNovember 1992

- 114 - Annex H


(Credit 1501-SL)

Terms of Reference for UNV - Civil Engineer(Feeder Roads Labour-Intensive Sub-Component)

Location: ILO, Freetown and regional locations as required.

Period: 36 months

Oualifications: The UNV should have a University degree in Civil Engineering, followedby at least four years professional experience, a major part of whichshould have been in developing countries. He should have experience inlabor-based construction methods in connection with feeder roadsstructures and buildings and a good knowledge of English.

Responsibilities: The UNV Civil Engineer, along with a second UNV Civil Engineer,would assist in implementing the World Bank financed Feeder Roadscomponent of the Agriculture Sector Support Project (ASSP). The UNVwould be a member of the ILO Technical Assistance Team and wouldwork under the supervision of the ILO Engineering Adviser. Duty Stationwould be located at a suitable location, within these districts.

Each UNV would be assigned a number of sub projects (roads, culverts,bridges etc.). They would carry out their duties in close collaborationwith their counterparts, and jointly the UNVs should;

(a) carry out labor availability surveys;

(b) make detailed investigations surveys, designs and plans for eachsub project, organize and supervise works to ensure adequatequality and progress;

(c) assist is selection of roads, tracks and other structures;

(d) organize a system of careful management of project personal,inputs adequate record keeping procedures;

(e) assist local contractors in organizing of works and the mobilizationof labor;

(f) organize procedures for adequate daily and weekly site reportingand consolidate the information into monthly progress reports;

(g) make a maintenance plan for each sub-project, set uparrangements for maintenance and guide, and supervise actualimplementation of maintenance to a large extent to be carried outby petty contractors;

-115- AnnexJH

The UNVs should provide on-the-job training to their counterparts,technicians, and local contractors. Initially, the UNVs, under thedirection of the CTA, would manage the implementation of works, butgradually responsibilities should be transferred to the engineeringcounterparts. This transfer of responsibility should take place without lossin productivity or quality. It would be closely monitored.

AF4AGNovember 1992

- 116- Annex H


(Credit 1501-SL)

Terms of Reference for the ASSP Coordinating Committee

Obiective: The primary objective of the Coordinating Committee for the Agriculture SectorSupport Project (ASSP) is to monitor the overall progress in the implementationof the ASSP through regular joint meetings of all the agencies responsible forimplementing a component or sub-component of the ASSP.

Membership: Department of Agriculture and Forestry (DAF): Director-General, (Chairman),Chief Technical Coordinator for the ASSP, Technical Coordinator for FarmInputs, Technical Coordinator for Agro-Processing, Agricultural Policy Planner,Swamp and Watershed Management Expert, Technical Expert in Input Marketing,Agricultural Extension Specialist, National Extension Coordinator, ChiefAgriculturist and the Chiefs of the Forestry, Fisheries, Livestock, Land and WaterDevelopment, and Monitoring, Evaluation and Statistics Divisions; NARCC:National Research Coordinator; Department of Finance. Development andEconomic Planning (DFDEP): Deputy Financial Secretary and Director ofPlanning; Bank of Sierra Leone (BSL): Director of Development FinanceDepartment and the Rural Finance Specialist; Sierra Leone Roads Authority(SLRA): Director, Department of Feeder Roads, Chief Technical Advisor (ILO)and the Technical Coordinator for Feeder Roads financed by the ASSP.

Freauencyof Meetings: The Coordinating Committee will meet once a month for each year of the ASSP

implementation period. The duration of the Meeting will be two days. DetailedMinutes of the Meetings will be prepared by the Office of the Director-General,DAF within one week of the conclusion of each Meeting and will be circulatedimmediately thereafter to each implementing agency. A copy of the Minutes willbe also be sent to IDA and IFAD. In addition to these scheduled meetings, aMeeting of the Coordination Committee may be called by the Director-General,DAF and the Agenda on that occassion will be governed by the circumstance(s) inquestion.

Purpos: To examine (a) the obstacles encountered in ASSP implementation during themonth or six weeks (b) obstacles resolved during this period and (c) obstacles thatare yet to be resolved (including those being resolved at the time of the Meeting).

Agenda: The Quarterly Work Plans prepared by each ASSP implementing agency ordepartment will form the basis of the Agenda for each Meeting. Copies of theQuarterly Work Plans will be made available to each implementing agency ordepartment two weeks prior to the meeting. At each Meeting, the CoordinatingCommittee will be given a detailed report on the progress with implementing eachASSP component and sub-component. Briefly, the Meeting will focus on:

(a) reporting on the overall implementation for the period under review by theChief Technical Coordinator (CTC) for the ASSP. In respect of the sub-

- 117 - Annex H

components, reporting responsibility will be as follows: for (i) the ruralbanks sub-component, the Director of the Development FinanceDepartment of the BSL; (ii) the feeder roads component, Director of theDepartment of Feeder Roads, SLRA; (iii) the input supply and agro-processing component, the Technical Coordinator for Farm Inputs and theTechnical Coordinator for Agro-Processing, respectively; (iv) the researchextension linkages component, the National Research Coordinator,NARCC; (v) the technology transfer component, the National ExtensionCoordinator (NEC) and the Chiefs of the Crops, Forestry, Fisheries,Livestock, Land and Water Development, Monitoring, Evaluation andStatistics and the Communications Divisions.

(b) identification of specific issues, by sub-component, responsible for any lagin the achievement of the Quarterly Work Plans of the relevant componentof the ASSP, will relate to:

(i) procurement of goods and services and selection of consultants;

(ii) delivery of vehicles, equipment and supplies to the reportingagency or to the required store or site;

(iii) Proiect and Special Accounts;

(iv) counterpart funding;

(v) sale and record of inputs sold to farmers at each of the ten DAFstores/depots;

(vi) use and operation. maintenance and purchase of the arsprocessing equipment provided to each of the fifteen farmers'associations;

(vii) rehabilitation of the training institutes and feeder roads;

(viii) assistance to and performance of selected rural banks;

(ix) performance of the technical assistance;

(x) progress with the training programme for extension officers,farmers, agro-processors, graduates, and rural bank managers andloan officers;

(xi) intra-Department coordination in the preparation and execution ofwork plans;

(xii) inter-Departmental cooperation;

(xiii) matters concerning IDA and IFAD;

- 118 - Annex H

(xiv) participation and performance of intended beneficiaries - farmers,farmers' organizations and agro-processors;

(c) proposed corrective action and the date by which it must be completed;

(d) follow-up on the proposed corrective action to be taken by theimplementing agency concerned through close monitoring and assessmentof the actions agreed upon at the Meeting;

(e) evaluation and recording by each implementing agency of the status andresults of the follow-up with which it is entrusted and reporting on this atthe next scheduled Meeting of the Coordinating Committee;

(f) discussion and recording of any exogenous factors impinging on projectimplementation such as the macro economic situation, climatic factors,labour market issues, credit, international commodity prices, etc.

No: To strengthen implementation of each ASSP component, and to facilitate thediscussion/conduct of the Meetings of the Coordinating Committee, it is advised that eachASSP implementing agency/department conduct, as necessary, internal meetings along thelines discussed above. In this regard, meetings such as those conducted by the StandingCommittee of DAF could prove useful.

AF4AGNovember 1992

- 119 - Annex H

Sierra LeoneAgriculture Sector Support Proiect

(Credit 1501-SL)

Terms of ReferenceCommittee on Agriculture Producer Incentives

Objective: The primary objective of the Committee on Agriculture Producer Incentives(CAPI) will be to assess (i) the impact of producer incentives, particularlyproducer prices, on the production of the main food and cash crops and (ii) themacro economic implications of these incentives.

Rationale: With exchange rate and trade liberalization, and transition to a market economy,the role of the parastatals and public sector institutions in pricing and marketinghas been relinquished. Yet, for purposes of food security, budgetary planning andbalance of payments impact, the response of agricultural production to changingfactor and product prices will be critical. The conventional economic policy toolsunder trade liberalization will now become relevant and will supercede theinefficient cost-plus pricing and trade restrictions frequently encountered in a moreclosed and controlled regime. To enable the technical and economic efficiencycalled for by a liberalized open economy, domestic producers would need to workwithin the framework of producer prices that do not deviate very much fromborder prices. Until recently, the Sierra Leone Produce Marketing Board(SLPMB) had been charged with assuring adequate incentives to coffee and cocoaproducers. With the future of the SLPMB uncertain, a mechanism is required tomonitor these prices for key food and cash crops.

MembershiD: Department of Agriculture and Forestry; Department of Finance, Developmentand Economic Planning; Bank of Sierra Leone: Department of Trade; andDepartment of Industries and State Enterprises.

Frequencyof Meetings: Once every quarter and as deemed necessary.

Purpose: To guauge the adequacy of producer incentives for the main food and cash andexport crops with a view to assessing their policy implications especially for thebalance of payments, levels of nutrition and subsidies and trade tariffs.

Agenda: Based on agricultural data for the quarter, collected and analyzed by the DAF(MESD) and circulated by the Office of the Director-General, two weeks inadvance, to the members of the Committee, the Committee will assess the policyimplications of the demand and supply situation for the main food and cash cropsand make recommendations. Detailed Minutes of the CAPI will be prepared andcirculated by the Office of the Director-General to Committee members, and toIDA and IFAD, within one week of the conclusion of the meeting and a copy ofthe statistical data will be filed with the Minutes. To enable a comprehensive andsubstantive discussion based on quarterly trends, by commodity and region,provision by DAF (MESD) of the following data will be mandatory:

- 120 - Annex H

(a) data on production, stocks, imports, supply and availability relative todemand, and import bill of:

(i) rice (and close substitutes such as cassava and sweet potato);

(ii) palm oil;and

(iii) tobacco;

(b) data on the production, stocks, exports and export earnings of coffee,cocoa, palm kernel, ginger and pepper;

(c) detailed data on marketing, storage and production costs (with any taxes,tariffs and subsidies separately shown) for each of the above crops;

(d) data on retail and wholesale consumer prices (overall and at selectedregional and local locations of the main food crops; and

(e) data on the farm gate and market prices relative to border prices for eachof the above crops with the exception of roots and tubers.

AF4AGNovember 1992

- 121 - Annex H

Sierra LeoneA2riculture Sector Support Project

(Credit 1501-SL)

Terms of ReferenceStudy on the Trade and Price Policy Aspects of Rice

Objective and Rationale

1. The main objective of the study is to assist the Government of Sierra Leone informulating a price and trade policy for rice. The study will develop trade and price policyoptions in the rice subsector through comprehensive assessments of the economic costs andbenefits of each option. The rationale for the study is the Government's growing concern withthe high and rising rice import bill, inaccess by consumers to rice, inadequate food security,declining real farm incomes and increased malnutrition. These concerns have raised seriousquestions as to the effectiveness of past policies from which neither producers, consumers nor theexchequer appear to have benefitted. Now, under a liberalized exchange rate and trade regime, itis imperative for the subsector to compete effectively as an import substitute. Urgently called foris a rice policy which promotes an appropriate policy and incentive framework relevant to thenew macro-economic regime and which is at the same time pertinent and responsive to thecountry's concern with food security.

2. The study will assess (a) Sierra Leone's overall potential for rice cultivation; (b) theextent to which this potential can be efficiently tapped in the short, medium and long termrespectively; and (c) the price and trade policy recommendations necessary for exploiting thispotential in an economically efficient manner and on a sustained basis. The study will focus onthe implications for producer prices and levels of economic efficiency of alternative levels ofimport tariff on rice. The period of analysis will cover the three years which can be consideredas being the most representative of the last seven.

MethodO1°8Y

3. Analyses will be carried out to identify distortions, assess comparative advantage, evaluatefinancial and economic profitability, and examine the production response of rice to income andprice change. Specifically, the study will:

(a) assess the nominal and effective protection coefficients at key points in themarketing chain including farmgate, rural market and wholesale market for 1987,1989 and 1992 respectively. For 1992, the effective protection analysis willinclude a scenario analysis for fertilizer policy at the following levels of subsidy:73 percent, 60 percent, 50 percent, 35 percent and 15 percent.

(b) examine Sierra Leone's comparative advantage in rice cultivation through aDomestic Resource Cost (DRC) analysis for each rice ecology under alternativetechnologies with and without mechanization. The main rice ecologies to bestudied are inland valley swamps (IVS), mangrove swamps, riverrain swamps,

- 122 - Annex H

bolilands, and upland farms. For each of these ecologies, traditional andimproved technologies currently available will be considered. Mechanizationoptions will include work oxen, power tillers and tractors depending upon thespecific rice ecology and technology in question. For rice cultivation in theswamps, for each swamp rice ecology the analysis will distinguish between newswamp cultivation and swamps already developed. The DRC exercise will includea sensitivity analysis on the exchange rate, border price, rice yield, wage rate,discount rate and transportation cost.

(c) estimate financial and economic profitablity for each rice ecology under traditionaland improved technology with and without mechanization and at different levels offertilizer subsidy.

(d) conduct a sensitivity analysis on the price and income elasticities of demand andsupply for rice, and elasticities of substitution between rice and cassava and/orsweet potatoe using existing elasticities in economies comparable to Sierra Leone.

C. OUtDUi

4. The study will provide an assessment of: (i) the magnitude of annual rice consumptionrequirements in the short to medium term which can be met through efficient production fromexisting swamps based on the DRC analysis; and (ii) the implications for the balance of paymentsof closing the gap. Based on the findings, the Study will formulate the main elements of a Priceand Trade Policy for Rice which has as is primary objective: (a) economic efficiency; and (b)incomes and employment. For any departure from economic efficiency, as may for instance becalled for by a policy which pursues the latter objective, both the economic cost and cost to thebudget will be clearly identified and quantified.

AF4AGNovember 1992

- 123 - Annex H

Sierra LeoneA2riculture Sector Support Project

(Credit 1501-SL)

Terms of ReferenceAction Plan for the Privatization of DAFF's Oil Palm Assets

Objective and Rationale

1. The main objective of the technical assistance is to assist the Department of Agricultureand Forestry (DAF) to prepare an Action Plan for the early privatization of its oil palm estate(plantations and mills) at Daru and Gambia-Mattru. Privatization of the assets, an objective of theoriginal ASSP, was interrupted by the suspension of IDA disbursements. One of the reportedproblems with the initial effort made at the time was dissatisfaction by the Government of theresults of the valuation. Important to the indigeneous diet, red (palm) oil has balance of paymentsimplications, a good potential for developing into an efficient import substitute and for providingemployment opportunities, and other important multiplier effects in the rural economy. Therational for early privatization is to (a) eliminate the burden on the public sector budget onaccount of the asset which is also rapidly deteriorating and (b) secure, for the asset, ownershipcommitted to the professional management and operation of the plantations and mills, and oncewhich can, without subsidies and protection, enable it to mazimize yields, capacity utilizaton andfavourable returns to investment.

2. The Consultant will prepare an Action Plan which shall (a) consist of an outsideindependent evaluation of the oil palm assets, disaggregated by each plantation and mill; and (b)consider alternative modes of privatization/marketing the asset in full or in part. The Action Planwill comprise the following:

(a) Valuation which will be carried out by a professional valuation expert and a fair marketvalue (FMV) determined. This will be used to establish a range of values of the assetwithin which offerings and negotiations will be conducted - the "highest and best use"valuation will specify the upper range and the estimated liquidation value the lower range;and

(b) Privatization/Marketing Methods and Strategy which will discuss marketing objectives andthe means for achieving these objectives. Besides the objective of obtaining a fair price(not necessarily the maximum price) for the asset, the objective of ascertaining the natureof the ownership, its financial resources and management capability, and access by it totechnology and markets will be critical to the long-term financial and economic viabilityof the enterprise and ultimate success of the privatization.

Methodology

3. The prerequisites and the methodology for the valuation to be followed by the Consultant:

(a) preparatory work will precede the valuation exercise and will consist of:

- 124 - Annex H

(i) the preparation of accurate financial statements by an outside auditor inaccordance with generally accepted accounting standards. After verification ofreceivables, inventories and other assets, the financial statements may need somerestatement and the financial income statements and balance sheets somereconstruction; and

(ii) a legal audit to verify ownership title, identify pending legal claims, and clarifythe extent and nature of any other hidden and/or contingent liabilites;

(b) the valuation will be guided, once the preparatory work specified in 3 (a) above is carriedout, by the following methodolgies for valuation:

(i) the use of the market valuation approach for the valuation of real estate andbuildings which lend themselves to comparison with other transactions forproperties similarly located

(ii) the use of a liquidation value basis and an income valuation basis for the oil palmplantations, specialized machinery and equipment, since these, under themanagement of the new ownership, are expected to generate future incomestreams; and

(c) the Action Plan for privatization itself will consider the following privatization/marketingmethods:

(i) public offering - a number of desirable features can be built into the offering suchas providing an upper limit to share ownership by any single shareholder, specialterms for employees, and incentives to hold the investment rather than cashing itout;

(ii) public tenders - competitive bids on divestitures or service contracts are commonin the initiation of a sales process to privatize. Because of its transparency, theopen bid process is preferable to one where buyers are identified in advance anddirect negotiations held. The preparation and design of the request for bids willbe critical to ensuring that concerns of the Government are adequately addressed.To facilitate comparability and screen out less creditworthy competitors, bids willnormally be requested on an all cash basis;

(iii) direct negotiation - to provide for final direct negotiations (based on requests forsealed bids in a public tender) for various terms, conditions and warranties to gointo the final contract rather than for negotiations over the actual price, thoughnegotiations on price can be included. Provision will also need to be made forunsolicitated bids which are expected once a privatization programme getsunderway as well as bids which might have been directly solicitated. For directnegotiation to succeed, an external impartial review mechanism would be requiredtransparency.

- 125 - Annex H

-QU

4. The Consultant will prepare an action plan specifying in detail the steps that theGovernrent of Sierra Leone would need to take in privatizing its oil palm plantations and mills atDaru and Gambia-Mattru. All supporting documentation including the valuation should beincluded as an Appendix to the Action Plan.

AF4AGNovember 1992

126 -

ANNEX I


(CREDIT 1501-SL)

ORGANIZATION CHARTFOR

PROJECT COORDINATION AND IMPLEMENTATON(by implementing agency and senior staff responsibility)

IMPLEMENTING AGENCY(DAFF)

IMPLEMENTATION UNIT(Office of the Director-General)

* Director-General of DAFF

ASSP COORDINATING UNIT **

* Chief Technical Coordinator(ASSP)

FinanciaL ControLlerChief Procurement OfficerNational Extension Coordinator

F~~~~~~~~~~~~~~~~~

TECHNOLOGY TRANSFER AND INPUTS AND AGRO-PROCESSING FEDElRADSRESEARCH EXTENSION LINKAGES (DAFF COUNTERPARTS) (SLRA)

(DAFF) (FARMERS ORGANIZATIONS)(TECHNICAL ASSISTANCE)

* Chief Agriculturist * Technical Coordinator (Inputs) * Head, Dept. Feeder Roads* DAFF Division Chiefs * Technical Coordinator (Agro- * TechnicaL CoordinatorChief Regional Officers (Processing) (Feeder Roads)

* NationaL Extn. Coordinator

RURAL BANKS LABOUR INTENSIVE PILOT(BSL) (110)

* Dir., Dev. Finance Dept. * Chief Technical Advisor* Rural Finance Specialist (ILO)

Note:

( ) denotes institutionaL responsibility.

* denotes meombership in the ASSP Coordination Committee; in addition, the membership of the CoordinatingCoamittee will include the Deputy FinanciaL Secretary and the Director of Planning (Department of Finance,Development and Economic Planning) and the National Research Coordinator (Natlonal Agricultural ResearchCoordinating Council).

** denotes other staff in the Coordinating Unit, namely, a Chief Procurement Officer, a Procurement Officer, anAssistant Procurement Officer, a Senior Project Accountant, four accountants and support staff.


CREDIT 1501-SLProject Cost Sueeary

Leone US Doltar X Total------------------------------------------- ------------------------------------ XForeign 8aseLocal Foreign Total Local Foreign Totat Exchange CostsA . TECHNOLOGY TRANSFER 1U47429090.2 2831523164.1 4278952254.3 2832871.6 5395882.7 8228754.3 66.2 32.4O . FEEDER ROADS 639189057.1 2936260850.1 3575449907.2 1290543.8 5585321.4 6875865.2 82.1 27.1C INPUTS 4 AGRO-PROCESSING 500569379.2 3994226265.9 4494795645.1 1245670.7 7398167.1 8643837.8 88.9 34.1 1D . RESEARCH EXTENSION LINKS 87003381.8 57494195.2 144497577.0 172367.2 105512.7 277880.0 39.8 1.1E . ASSP COORDINATION UNIT 40962297.7 658679453.0 699641750.7 83848.9 1261616.0 1345464.9 94.1 5.3Total BASELINE COSTS 2715153206.0 10478183928.0 13193337134.0 5625302.2 19746499.9 25371802.2 77.8 100.0Physical Contirgencies 61149638.4 409437866.6 470587505.0 117595.5 787380.5 904976.0 87.0 3.6Price Contingencies 814794067.3 247556525.1 1062350592.4 1163057.9 879924.0 2042981.9 43.1 8.1

Total PROJECTS COSTS 3591096911.4 11135178320.0 14726275231.0 6905955.6 21413804.5 28319760.1 75.6 111.6

3/30/1993 22:48

z,


CREDIT 1501-SLSumwary Account by Project Component

Leone

INPUITS & RESEARCH ASSPTECHNOLOGY AGRO-PROCESSI EXTENSION COORDINATIONTRANSFER FEEDER ROADS HG LINKS IHIT

r==sra======ssssasasssss= ==========w===zs==w==r===== ======

1. INVESTMENT COSTS

A. BUILDINGS & CIVIL UWRKS 156615153.9 1768000000.0 0.0 0.0 0.0S. VEHICLES 1150592040.0 72651571.2 58572800.0 9584640.0 30883840.0C. EQUIPMENT AND SUPPLIES 546929939.6 523240400.1 3444042672.5 27546671.4 16175078.4D. TECHNICAL ASSISTANCE 535147800.0 598045500.0 694412160.0 44850000.0 599040000.0E. TRAINING 355992000.0 0.0 34612500.0 40799200.0 0.0

Total INVESTMENT COSTS 2745276933.5 2961937471.3 4231640132.4 122780511.4 646098918.4

II. RECURRENT COSTS co

A. CIVIL UWRKS O&N 0.0 0.0 0.0 0.0 29176145.3B. VEHICLE O0 1191852017.2 68201662.5 54985216.0 8530329.6 0.0C. EQUIPMENT 0LM 341823304.2 3053107M7.5 198170296.7 12436736.0 11916687.0D. OTHER OPERATING COSTS 0.0 140400000.0 10000000.0 0.0 12450000.0E. SALARIES AND ALLOWANCES 0.0 99600000.0 0.0 750000.0 0.0

Total RECURRENT COSTS 1533675321.4 613512435.9 263155512.7 21717065.6 53542832.3

Total BASELINE COSTS 4278952254.8 3575449907.2 4494795645.1 144497577.0 699641750.7Physical Contineencies 100537614.4 206594596.6 159245780.6 1856565.6 2352945.9Price Contingencies 340034957.8 285190289.5 358506174.6 45794935.8 32824234.8

Total PROJECT COSTS 4719524827.0 4067234795.3 5012547600.3 192149078.3 734818931.4=s-s=t=======s=ussssuflus aatssssss3=3=lzs===fl=fl3sssssssssssfllf3f.z===s=

Taxes 983226029.5 156293215.7 88167741.1 13923449.4 28101579.4Foreign Exchange 2948698263.3 3186286822.9 4256799269.1 60223691.3 683170273.9

3/30/1993 22:48


CREDIT 1501-SLSumary Account by Project Component

Leone

Physical PriceContingencies Contirnencies

Total S AmoKnt X Amount

1. INVESTMENT COSTS

A. BUILDINGS 4 CIVIL WORKS 1924615153.9 10.0 192461515.4 2.4 46939723.7

B. VEHICLES 1322284891.2 5.0 66114244.6 0.6 8231500.3

C. EQUIPMENT AND SUPPLIES 4557934761.9 4.7 212011745.1 7.2 328608589.9

D. TECHNICAL ASSISTANCE 2471495460.0 0.0 0.0 10.0 247893289.0

E. TRAINING 431403700.0 0.0 0.0 58.3 251446014.6

Total INVESTMENT COSTS 1070M3967.0 4.4 470587505.0 8.2 883119117.5

11. RECURRENT COSTS

A. CIVIL WORKS OIN 29176145.3 0.0 0.0 8.8 2567582.7

B. VEHICLE 08. 1323569225.2 0.0 0.0 4.2 55780167.8C. EQUIPMIENT O&M 869657797.3 0.0 0.0 6.5 56377895.2

D. OTHER OPERATING COSTS 162850000.0 0.0 0.0 10.0 16238769.8

E. SALARIES AND ALLOWANCES 100350000.0 0.0 0.0 48.1 48267059.4

Total RECURRENT COSTS 2485603167.9 0.0 0.0 7.2 179231475.0

Total BASELINE COSTS 13193337135.0 3.6 470587505.0 8.1 1062350592.5Physical Contingencies 470587505.0Price Contingencies 1062350592.5 1.9 20040929.6

Total PROJECT COSTS 14726275232.0 3.3 490628434.6 7.2 1062350592.4

Taxes 1269712015.1 2.7 33853992.0Foreign Exchange 11135178320.0 3.7 417396405.7

3/30/1993 22:48


CREDIT 1501-SLStnmery Accounts by Year

Totals Including ContingenciesLeone

1993 1994 1995 1996 Totat

1. INVESTMENT COSTS

A. BUILDINGS & CIVIL UORKS 186994946.6 1977021446.4 0.0 0.0 2164016393.0B. VEHICLES 1375288080.3 21342555.7 0.0 0.0 1396630636.0C. EQUIPMENT AND SUPPLIES 2563637216.0 809317573.0 842873905.8 882726402.0 5098555096.8D. TECHNICAL ASSISTANCE 994489681.0 808380420.6 602429904.5 314088742.9 2719388748.9E. TRAINING 118286579.9 147672181.5 182953778.1 233937175.1 682849714.6

Total INVESTMENT COSTS 5238696503.8 3763734177.3 1628257588.4 1430752320.0 12061440589.0… s======gss=gS== s==========Stsst=====r=== == 0

11. RECURRENT COSTS

A. CIVIL WORKS O&N 7446861.4 7754415.6 8087674.3 8454776.7 31743728.0B. VEHICLE O&N 329247425.5 339283875.3 348938178.4 361879913.8 1379349393.0C. EDUIPHENT O&I 242402946.9 253193368.9 265765492.3 164673884.6 926035692.6D. OTHER OPERATING COSTS 53640818.7 56078067.3 58616103.4 10753780.4 179088769.8E. SALARIES AND ALLOUANCES 39654975.0 50675244.7 58047334.5 239505.1 148617059.4

Totat RECURRENT COSTS 672393027.5 706984971.9 739454782.9 546001860.6 2664834642.9

Total PROJECT COSTS 5911089530.8 4470719149.1 2367712371.2 1976754180.6 14726275231.030 9 2=======s=2=333=.u=sz=z=s=48===s=====mtssus=sus=====s=3======t

3/30/1993 22:48


CREDIT 1501-SLSumary Accounts by Year

Totals Including ContingenciesUS Dollar

1993 1994 1995 1996 Total

1. INVESTMENT COSTS

A. BUILDINGS & CIVIL WORKS 359605.7 3801964.3 0.0 0.0 4161570.0

B. VEHICLES 2644784.8 41043.4 0.0 0.0 2685828.1

C. E)UIPHENT AND SUPPLIES 4930071.6 1556379.9 1620911.4 1697550.8 9804913.6

D. TECHNICAL ASSISTANCE 1912480.2 1554577.7 1158519.0 604016.8 5229593.7

E. TRAINING 227474.2 283985.0 351834.2 449879.2 1313172.5

Total INVESTMENT COSTS 10074416.4 7237950.3 3131264.6 275144.8 23195078.1t====r2r-S2-==-2S* U SUSssSSWssSSStSWSS===SS=ssstS===== (A

11. RECURRENT COSTS

A. CIVIL WORKS OIN 14320.9 14912.3 15553.2 16259.2 61045.6

B. VEHICLE DIN 633168.1 652469.0 671035.0 695922.9 2652595.0

C. EQUIPNENT DIN 466159.5 486910.3 511087.5 316680.5 1780837.9D. OTHER OPERATING COSTS 103155.4 107842.4 112723.3 20680.3 344401.5

E. SALARIES AND ALLOUANCES 76259.6 97452.4 111629.5 460.6 285802.0

Total RECURRENT COSTS 1293063.5 1359586.5 1422028.4 1050003.6 5124682.0===z===SSSS SZUUU=----UU rMMUSZlSrS* WuSSSXuSSZus*sSmfSS====2==S=flu

Total PROJECT COSTS 11367479.9 8597536.8 4553293.0 3801450.3 28319760.1act= ====:fls= sgsstzsssstssnstsstsusmssssswxumssflsm.snas.ut=s .====s==fl

3/30/1993 22:48

x-

SIERRA LEONEAGRICJLTURE SECTOR SUPPORT PROJECT

CREDIT 1501-SLLeone

Sunmary Accounts by Year

Base Costs Foreign Exchange

1993 1994 1995 1996 Total X Amout===z==rslsa.2flt==========r=========z=======-====z=z=s=============2====== ======:==tt==ss===========:====

I. INVESTMENT COSTS

A. BUILDINGS & CIVIL WORKS 156615153.9 1768000000.0 0.0 0.0 1924615153.9 95.7 1841394380.8B. VEHICLES 1303962951.2 18321940.0 0.0 0.0 1322284891.2 65.1 860841246.7C. EQUIPMENT AND SUPPLIES 2409697169.5 718532660.4 714852465.9 714852465.9 4557934761.8 86.4 3939014684.0D. TECHNICAL ASSISTANCE 964337880.0 737968080.0 503166000.0 266023500.0 2471495460.0 83.7 2067414960.0E. TRAINING 100593025.0 99228025.0 107168425.0 124414225.0 431403700.0 4.9 21299200.0

Total INVESTMENT COSTS 4935206179.5 3342050705.4 1325186890.9 1105290190.9 10707M73967.0 81.5 8729964471.4

II. RECURRENT COSTS

F. CIVIL UORKS 0& 7294036.3 7294036.3 7294036.3 7294036.3 29176145.3 n7.1 22483435.5G. VEHICLE O&M 327319528.0 332083232.4 332083232.4 332083232.4 1323569225.2 70.2 929483303.6H. EQUIPMENT OUH 23868675.4 241519120.7 244247089.9 145204801.3 869657797.3 75.4 655852718.2I. OTHER OPERATING COSTS 52412500.0 52412500.0 52412500.0 5612500.0 162850000.0 86.2 140400000.0J. SALARIES AND ALLOWANCES 33450000.0 33450000.0 33325000.0 125000.0 100350000.0 0.0 0.0

Total RECURRENT COSTS 659162849.8 666758889.5 669361858.6 490319570.0 2485603167.9 70.3 1748219457.3

Total BASELINE COSTS 5594369028.9 4008809594.9 1994548749.6 1595609761.0 13193337134.0 79.4 10478183928.0Physical Contingencies 185459528.4 213642730.0 35742623.3 35742623.3 470587505.0 87.0 409437866.6Price Contingencies 131260973.5 248266824.2 337420998.4 345401796.3 1062350592.4 23.3 247556525.1

Total PROJECT COSTS 5911089530.8 4470719149.1 2367712371.2 1976754180.6 14726275231.0 75.6 11135178320.0==-z------------------sss-----st----=ass=s==sssss vvmz=zmms=zzzzmsss==Z======w

Taxes 824014893.9 150654690.2 155741308.3 139301122.7 1269712015.1 0.0 0.0Foreign Exchange 4399618885.1 3783966973.6 1597878419.7 1353714041.9 11135178320.0 100.0 11135178320.0

3/30/1993 22:49


CREDIT 1501-SLS_ary Accoumts Cost Stmary

Leone US Dollar X Total--------------------------------------------- ------------------------------------ X Foreign Base

Local Foreign Total Local Foreign Total Exchange Costs-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ........ .............. ... .... ...

1. INVESTMENT COSTS

A. BUILDINGS & CIVIL WORKS 83220M.1 1841394380.8 192615153.9 165650.6 3535532.3 3701183.0 95.7 14.6B. VEHICLES 461443644.5 860841246.7 132228891.2 888360.4 1654495.1 2542855.6 65.1 10.0C. EQUIPMENT AND SUPPLIES 618920077.8 3939014684.0 4557934761.8 1464138.6 7301120.6 8765259.2 86.4 34.5D. TECHNICAL ASSISTANCE 404080500.0 2067414960.0 2471495460.0 795248.3 3957627.6 4752875.9 83.7 18.7E. TRAINING 410104500.0 21299200.0 431403700.0 790392.5 39230.0 8296Z2.5 4.9 3.3

Total INVESTMENT COSTS 1977769495.4 8729964471.4 1070M3967.0 4103790.4 16488005.7 20591796.1 81.5 81.2

11. RECURRENT COSTS

A. CIVIL WORKS 0U1 6692709.8 22483435.5 29176145.3 16832.4 39275.6 56108.0 77.1 0.2S. VEHICLE 0& 394085921.6 929483303.6 1323569225.2 776262.7 1769062.7 2545325.4 70.2 10.0C. EQUIPMENT OZ 213805079.2 655852718.2 869657797.3 492262.8 1180156.0 1672418.8 75.4 6.6D. OTHER OPERATING COSTS 22450000.0 140400000.0 162850000.0 43173.1 270000.0 313173.1 86.2 1.2E. SALARIES AND ALLOWANCES 100350000.0 0.0 100350000.0 192980.8 0.0 192980.8 0.0 0.8

Total RECURRENT COSTS 737383710.6 1748219457.3 245603167.9 1521511.8 3258494.3 4780006.1 70.3 18.8

Total BASELINE COSTS 2715153206.0 10478183928.0 13193337134.0 5625302.2 19746499.9 25371802.2 77.8 100.0Physical Contirgencies 61149638.4 409437866.6 470587505.0 117595.5 787380.5 904976.0 87.0 3.6Price Contingencies 814794067.3 247556525.1 1062350592.4 1163057.9 879924.0 2042981.9 43.1 8.1

Total PROJECTS COSTS 3591096911.4 11135178320.0 14726275231.0 6905955.6 21413804.5 28319760.1 75.6 111.6.~~~~~~~~~~~~~~... ..... .=~Zz Z=z====zmwXvZZZ

3/30/1993 22:49

x-.


CREDIT 1501-SLProjects Components by Year

Totals Including ContingenciesLeone

1993 1994 1995 1996 Total…--======== =-=__=.sr============s==…============ = =

A. TECHNOLOGY TRANSFER 2697344944.4 763272166.9 595353260.6 663554454.5 4719524826.1B. FEEDER ROADS 1126946591.7 2414780655.5 466374820.2 59132727.9 4067234795.3C. INPUTS & AGRO-PROCESSING 1817803572.2 1083452020.0 1086938795.5 1024353212.7 5012547600.3D. RESEARCH EXTENSION LINKS 56841804.0 40827195.9 45318440.4 49161638.0 192149078.3E. ASSP COORDINATION UNIT 212152618.6 168387110.7 173727054.6 180552147.5 734818931.4

Total PROJECTS COSTS 5911089530.8 4470719149.1 2367712371.2 1976754180.6 14726275231.03========2=2=============

3/30/1993 22:49


CREDIT 1501-SLProjects Conponents by Year

TotaLs Including ContingenciesUS Dollar

1993 1994 1995 1996 Total

A. TECHNOLOGY TRANSFER 518n7201.8 1467831.1 1144910.1 1276066.3 9076009.3B. FEEDER ROADS 2167205.0 4643809.0 896874.7 113716.8 7821605.4C. INPUTS & AGRO-PROCESSING 3495776.1 2083561.6 2090266.9 1969910.0 9639514.6D. RESEARCH EXTENSION LINKS 109311.2 78513.8 87150.8 94541.6 369517.5E. ASSP COORDINATION UNIT 407985.8 323821.4 334090.5 347215.7 1413113.3

Total PROJECTS COSTS 11367479.9 8597536.8 4553293.0 3801450.3 28319760.1========3/30/1993-22:49

3/30/1993 22:49


CREDIT 1501-SLLeone

Project Cowponents by Year

Base Costs Total

1993 1994 1995 1996 Leone USDotlar= == = re====================== == === == = = ===============

A. TECHNOLOGY TRANSFER 2548203987.5 702862995.9 504073518.3 523811752.6 4278952254.3 8228754.3B. FEEDER ROADS 1058768144.7 2126566173.4 352566173.4 37549415.6 3575449907.2 6875865.2C. INPUTS & AGRO-PROCESSING 1727100278.1 984918390.7 943336488.2 839440488.2 4494795645.1 8643837.8D. RESEARCH EXTENSION LINKS 51974873.0 30799953.8 30799234.7 30923515.5 144497577.0 277880.0E. ASSP COORDINATION UMIT 208321745.5 163662081.1 163773335.1 163884589.1 699641750.7 1345464.9

Total BASELINE COSTS 5594369028.9 4008809594.9 1994548749.6 1595609761.0 13193337134.0 25371802.2Physical Contingencies 185459528.4 213642730.0 35742623.3 35742623.3 470587505.0 904976.0Price Contingencies 131260973.5 248266824.2 337420998.4 345401796.3 1062350592.4 2042981.9

Total PROJECT COSTS 5911089530.8 4470719149.1 2367712371.2 1976754180.6 14726275231.0 28319760.1========z================ ===

Taxes 824014893.9 150654690.2 155741308.3 139301122.7 1269712015.1 2441753.9Foreign Exchange 4399618885.1 3783966973.6 1597878419.7 1353714041.9 11135178320.0 21413804.5

3/30/1993 22:49

SIERRA LEONEAGRICUCLTURE SECTOR SUPPORT PROJECT

CREDIT 1501-SLFinancing Plan by Disbursemmnt Category

US Dot tar

IDA IFAD GOSL Govermanmt Total Local--------------------------------------------------------------------------------------------------- For. (Exct. DutiesAiDnt X Amount X Amount X Amount X Anoit X Exch. Taxes) & Tax.

=--=z= .... = ...................... ssa............... .. =............ sS -=====-== ..... == t======z============ ==.=.==.==.

A. CIVIL WlRS 3212253.5 77.2 688559.7 16.5 0.0 0.0 260756.6 6.3 4161570.0 14.7 3957842.7 149786.4 53940.8 1B. VEHICLES 1745568.4 65.0 12312.9 0.5 0.0 0.0 927946.6 34.5 2685828.1 9.5 1745568.4 18607.8 921651.9C. EGUIPHENT 7683836.9 78.4 1540595.6 15.7 0.0 0.0 580481.1 5.9 9804913.6 34.6 8122372.0 1339991.0 342550.6D. TECHNICAL ASSISTANCE 3480490.4 53.2 672866.6 10.3 0.0 0.0 2389409.2 36.5 6542766.3 23.1 4113806.3 2428960.0 0.0 w-E. O01 COSTS 3431470.0 67.0 216106.6 4.2 0.0 0.0 1477105.4 28.8 5124682.0 18.1 3474215.0 526856.4 1123610.6

Total Disbursement 19553619.4 69.0 313044 .5 11.1 0.0 0.0 5635699.2 19.9 28319760.1 100.0 21413804.5 4464201.7 2441753.9=za=g========r======s=t=sts=====zzz=====- ....... ==== =z======= ............ ====== ..... =================

3/30/1993 22:49

zt>1x


CREDIT 1501-SLFinancing Plan by Project Coonents

US Dot tar

IDA IFAD GOSL Coverrant Total Local---------------------------------------------------------------------------------------------------- For. (ExcF. Duties

Amount t Amnt X Amount X Aomt a Amont X Exch. Taxes) Tax.

A. TECHNOLOGY TRANSFER 5467481.5 60.2 360394.2 4.0 0.0 0.0 3248133.6 35.8 9076009.3 32.0 5670573.6 1514616.4 1890819.3B. FEEDER ROADS 5187223.1 66.3 1012359.1 12.9 0.0 0.0 1622023.1 20.7 7821605.4 27.6 6127474.7 1393566.8 300563.9C. INIPUTS & AGRO-PROCESSING 7666296.3 79.5 1532106.7 15.9 0.0 0.0 441111.6 4.6 9639514.6 34.0 8186152.4 1283808.8 169553.3D. RESEARCH EXTENSION LINKS 115814.8 31.3 26792.3 7.3 0.0 0.0 226910.4 61.4 369517.5 1.3 115814.8 226926.8 26775.9E. ASSP COORDINATION UNIT 1116803.7 79.0 198789.1 14.1 0.0 0.0 97520.6 6.9 1413113.3 5.0 1313789.0 45282.8 54041.5

Total Disbursement 19553619.4 69.0 3130441.5 11.1 0.0 0.0 5635699.2 19.9 28319760.1 100.0 21413804.5 4464201.7 2441753.9…=============saasa==S=saa==aaaaaa=aaa=aa==f=taaa====== aaaaaaaaaa== = aaaa===raa=z=a ===================…

3/30/1993 22:49

0c

I

SIERRA LEONEAGRICULTURE SECTOR SUWPORT PROJECT

CREDIT 1501-SLDisbursement by Financier by Semester

US Dollar

IDA IFAD GOSL Government Total

Ammt Amount Amount A.KKnt Amot

Semester

1 1979128.1 159389.7 0.0 900383.5 3038901.32 3923838.2 529056.4 0.0 1230845.3 5683739.93 2923394.9 501478.3 0.0 839561.7 4264434.94 3145851.3 596026.0 0.0 556891.0 4298768.45 2966642.7 562937.3 0.0 615783.0 4145363.06 1452314.6 235826.0 0.0 588505.9 2276646.57 1224313.8 197822.2 0.0 440269.5 1862405.58 1254805.5 204312.2 0.0 441607.4 1900725.29 683330.2 143593.3 0.0 21851.9 848775.4

10 0.0 0.0 0.0 0.0 0.0

TOTAL 19553619.4 3130441.5 0.0 5635699.2 28319760.1

3/30/1993 22:49

L4


CREDIT 1501-SLFinancing Plan by Foreign Exchange / Local / Taxes

US Dollar

IDA IFAD GOSL Government Totat

Amount Amount Amount Aotint Amount======2 = 2========r===:=========t=zfl==ft==u=zfls..53

I Foreign 18696406.3 2637576.5 0.0 79821.7 21413804.5

11 Local (Exci. Taxes) 857213.0 492865.0 0.0 3114123.7 4464201.7

III Taxes 0.0 0.0 0.0 2441753.9 2441753.9 1

Total Project 19553619.4 3130441.5 0.0 5635699.2 28319760.1========== …s== ==~=S======2==t=2US

3/30/1993 22:49

x-.

world bank document...currency eouivalents (october 1992) currency unit = leone (le) le 1.00 =...

Documents