A FRICA N DEV ELO PM ENT FUND

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REF. NOLANGUAGEORIGINALDISTRIBUTION

M OZ/PAAI/98/01ENGLISHENGLISHLIM ITED

CONFIDENTIA L

APPRAJSAL REPORT

R'M AID SCM .E IRRIGAH ON PROR CT

REPUBLIC OF M OZAm IOUE

Thks Repod is made available only to s'tal membeo to wh-work it a latu . Any fudher œ le>* m ust be authore d by theVictule ident for Om rations.

COUNTRY DEPARTM ENT< )1J151 REGION

OCDS .OCTOBER 1* 8

W r N r v

TABLE OF CONTENTS

Basic Data Shœ t, Currency and M = ures, List of Abbreviatiolls,List of Tables and Annexes, Project lnformation Sheet,Summary and Recommendations.

Project Matrix

PO A ODUCH ON AND BACKGROUND

1. 1 (lr1'gl-n and l4l-sto Of the Prol'K t ........................................................ 11 .2 Perfbrrnance of Si rnilar Proj ects 1- n Moznmbl' q tle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l

E AG C L SECTOR

Pagei-vvi-vii

THE PROJECT

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5. PROJEC T LE NTATION :,. h:'

5 1 Exectlting Agency . . . . . . . . . . . . . . 1 8 ' '' ,:''''j* t . :5 2 ()rgan1-7nu-on and ItfanagelAhent

................. ........................................ 1 8 'ja5.3 j'Ilon or (zcxlrdl'nau-on .............................-........................................ l 9 ('15.4 Procurement of G s, W orks and Servlces .. ....... 205.5 lmplementaton Plan and Expendlture Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 15. 6 lvlonltonng 3JIQI tlvaâuatlon .............................................................. Z J '1

1 ykudl't and Iteixlrn'noc Rm tll'rements ....................................... 23 'i,5.7 Accounz,

l5.8 Recurrent Costs 245.9 Cost Recovery and Progect Sustalnab. lllty . .. . . . . . . . .. . .. . . . . .. . . . .. . .. .. .. .. . .. . .. . .. . 24

bl

6. C CAL ECONO C STIFICATION

6. 1 17eChZ1'O21 J US2'f1Ot1'On.................................................................... 2 5

1 -' . . .6.3 Rnanclal Jusûflcatlon 266.4 Fzt. onomlc Justlflcatlon 26

CONCLUSIONS CO ATIONS

7 1 (zonclusl-ons .......................................................................... 27*

'

j

is Appminl Rem rt wnA prepared by Ms. Ratiba Snnd, (Pn'ncipal Agronomist and Team I-mder,OCDS.2), and three consultnnts (lmgatlon Englneer, AgncultuY 1-.z0n0m1st and Flnanclal Analyst),following thelr' mission to M ozmmbique in July/Atlgtlst. 1998. Additikpnal inquln'es on this rem. rt shouldbe addres*.d to M r. D. Tnpathy, Mr ager, OCDS.2 (Ext. 4162) ztnd M r. E.K. Shnneldln, Manager1OCDS . 1 xt. 4 13I 5) .

1

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BASIC l)A'IAA SlIEEel'

DEMOGRAPHIC AND SOCIO-ECONOMIC INDICA'I'ORS

A. GENERALArea (Sq . Km '000)Population size (in million)Sex Ratio (100 female)Population under Gfteen years (%)Population sixty-five years and over (%)Dependency ratioUrban Population %Rural Population (%)Population Density (per km2)Population per sq. km of arable IandAdul! Lileracy rate (T01al)

- Male- Female

Labour Force Participation Rate (%) Agric.- Male- Female

GNP per inhabitant (USD)Annual growth rate of GNP (%)

B. DEMOGRAPHIC INDICATORS

Annual population growth (%)* 1 995Urban population growth rate (%) l 994Crude death rate (per 1000 populalion) 1 995Infant mortality rale (/1000 live birth) I 995Child mortality rate (/ I 000 child age l - 4) l 995Maternal mortality I'ate (/1 00.000 1 .birthl l 993Life expectancy at birth (years) - Toual l 995

- Male 1995- Female 1 995

Crude birth r'ate (per 1000 pop-) 1995Total fertility I'ate (No of children) 1995Median age 1995Population doubling tîme tyears) 1995Women of child bearing age (% of alI women) 1995Proportion of women using contraceptive (%) 1 995

C. HEALTH & NUTRITIONAL INDICATORS

Year

199719951995199519951995199319951995199519951995

1995199519961995

51' 4 , z :. l l l l ) i q l I e802I 7 . 7994 73l 003 l692226405823

Afrkul30.30566l9946392.334662 l3635 16342

5548803 .6

Camparative IndicatorsDevelo-Ping DevelopedCfpllntries Cotuytries

4487 1214lO4 9435 194.5 12.167 50.437 7463 2651 21

707562

50-359872.9

999999

23I 952 , 2

3.47 .4I 9l18l821500474448456.5182145.4

2 .951 5l071 6763052

446 .2l 7 . 324451 8

l .83 . 89 .0689 l47964

273.322.234

53

0.40 .89 .0l l162774

121.733.6l48

72

Population per physicianPopulation per nursing personsAccess to safe waterPercenuge of fully immunized childrenAverage per capita calorie intakeBabies born with birth weight<2500 gm (%)Percentage of GNP spent on healthAverage per capiu mending on health (USD)

D. EDUCATION INDICATORS

Gross enrolment ratio :- Primar'y School Tolal $993 (7() 79

- Male 1 997 60 -- Fenlale l 993 5 l 63

- Secondary School Tolal I 993 7 58- Fenhale l 993 b 21

Percenmge of GDP spem on education b l 2Average per capita spending on educalion - -

Source : - AfHcan Development Bank - Selected Statkslics on Africlkll Cotlnlries. l 998.- n e State of W orld Population 1996. UNFPA- n e World Health Report. 1997- W orld Bank Development Report, 1997- La situalion des enfants dans le lnonde/UNICEF 1997- n e W orld Health Repofl. W HO 1996- Hurnan Development Repod, UNDP 1995

19911991199519951993

199319951995

3 3 3 3 35 0003 2:.$1 6 8 0

18000

60

2328

7000170070852546

390l8O

873412

7l 41958

93

92474010

1029 l964

CIJRRENCY AND G ASURES

Currency Eqtlivalents(As at Augtlst 1998)

Currency Unit1 UA1 M t1 UA

Mozambique Metiemis (Mt)M t 15,713.2UA 0.0285766USD l .32949

W eights and M eastlres

1 Metric Ton (mt)1 Kilogram (kg)1 Meter (m)1 Kilometer (km)1 Hectare (ha)

2.2* lbs. (pounds)2.2 lbs. (pounds)3.28 ft (feet)0.62 miles2.471 acres

FISCAL YEAR

Jr uary l - December 31

LIST OF ABBREVIATIONS

' . j

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'

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'

-

1ADB African Development Bank

ADF African Development FundAW PD Annual W ork Program and BudgetCFA AgricultuM Development Training Center (Centro de Formalo AgrM a)CP1 Consumer Price IndexCSU Common Service Unit (in PROAGRI)DDAP District Directorate of Agriculture and Fisheries tDireecltl Distrital de Agrfcultura)DE Dirœ torate of R onomic AffairsDINA National Diredorate of Agriculture (DirecWo Nacional de Agrfcultura)DNER National Directomte of Rural Extension (Direcçào Nacional de Extenéo Rural)DNA Naéonal Directorate of W ater (Direclo Nacional de Agtlas)DNHA National Directomte of Agrictllture Water Resources (Dire o Nacional de Hydfulica

Agrfcola)DPAP Provincial Directorate of Agriculttlre and FisheriesEIRR Fconomic Internal Rate of ReturnFSRP Fconomic and Social Rehabilitation ProjectFAO FOY and Agriculture OrganizationFDHA Inigation Development Fund (Fundo para o Desenvolvinlento da Hyd/ulica Agrfcola)GAPI lnvestment Promoéon Bureatl (Gabinete de Promcl o de Investimentos)GCPI Centml Office for Integmted Project.s (Gabinete Central pêtra o Projectos lntegmdos)GDP Gross Domestic ProductGOM Govem ment of M ozambiqueINDER Rural Development Insétute (lnstituto Nacional de Desinvolvimento RurallINIA National Institute of Agricultural Research (lnstituto Nacitlnal de Investigaçào)MAP M inistry of Agriculture and Fishelies (M inistério da Agricultura e Pescas)MPF Ministry of Panning and Finance (Ministério da Plano e Isinancia)M t M ozambican M eticaiNGO Non-govem mental OrganizationPAEI Agriculture Policy and Implementation Strategy

PB Project BeneficiaryPC Projœt Cœ rdinatorPCU Project Co-ordination UnitP1U Provincial lmplementation UnitPM Provincial M anagerPROAGRI National Agricultural Development Program (Programa Nacional para o Desenvolvimento

Agrlrio) -SPFS Special Project for FGXI Prodtlction in Stlpport of Food Security (FAO)SSIP Small Scale Irrigation ProjectPTIP n reeYear Plan for Public InvestmentTAF Technical Assistance FundUA Unit of AccountW UA W ater Users Assœ iation

LIST OF TABLF.,S

Ntlmber

4.14.24.34.44.55.15.25.35.4

Title

Summary of Project Cost Estimates by ComponentSummary of Project Cost by Category of ExpenditureSources of FinanceCost by Comm nent and by Sotlrce of FinanceCost by Category and by Sotlrce of FinancePrœ urement AnangementsExm nditure Schedule by ComponentExm nditure Schedtlle by Sotlrce of FinanceExm nditure Schedule of ADF and TAF Components

151516161620222323

LIST OF ANNEXES

Number

Annex l .Annex 2.Annex 3.Annex 4.Armex 5.Annex 6.Annex 7Annex 8Annex 9Annex 10Annex 1 1Annex 12Annex 13

Title

Map of Mozambique: Project AreaClimatic DataScheme Lm ations and Implemenution PhasesProject lmplementation SchedtlleOrganisation ChartEnvironmental SummaryCrop lncremental ProductionFinr cial Analysisa onomic AnalysisList of Goods and ServicesTerms of Reference for Credit StudySelection Criteria for Scheme DeveloplnentTechnical Staff Training Prbgramme

No. of Pages

LIST OF ADDITIONAL ANX XES(AVAILABLE ON REQUEST)

Ntlmber

Annex A 1Annex A2Annex A3Annex A4Annex A5Armex A6Annex A7

Title

Detailed Comm nent Base Costs and ContingenciesDetailed Project Costs with ContingenciesTerms of Reference for Technical Assistance anll StudiesCrop Water Rmuirement by Farm VedelFann Development, Cropped Area and Cropping lntensityEsémated Crop Production by Farm M'gdel

Approach to Participatory Inigation Methe ology (P1M)

No. of Pages

121282121

N vS

AFRICAN DEVELOPM ENT FUND

01 BP 1387, ABIDJAN 01Te1: (225) 20-44-44Fax: (225) 20-49-02

Telex: 237 17

PROJECT INFORM ATION SHEET

Date: October 1998

The infonnaéon given hereunder is intended to provide some guidance to prosrc tive suppliers,con% ctors, consulA ts and a11 Nrsons interested in the procurement of goe s and services for projectsapproved by the Boards of Diredors of the African Development Fund (ADF). More detailedinformation and guidance should be obtained from the Exectlting Agency of the Borrower.

COUG RY

2. NAM E OF PROJECT

3. LOCATION

4. BORROW ER

5. EXECUTING AGEkCY

The Republic of M ozmmbique

Small Sfole Irrigation Project (SSIP)

M aputo, Sofala klnd Zmmbizia Provinces

The Republic of M ozambique

M inistry of Agriculture and FisheriesPraca dos Herois, M aputo, M ozambiqueAttn: Director. IIN'HATel: (258) 1-4 l 5 I 03/4151 10Fax: (258) 1-4 15 l03

The Project components are:a) Irrigation Developmentb) Agricultural -l-echnology Transferc) Direct Support to Farmersd) Management Omrationse) lnstitutional ('lapacity Building

UA 15.44 million

UA 6.65 milliollUA 8.79 milliol)

6. PROJECT DD CRIFTION

7. PROJECT COST

(i) Foreign Cost(ii) 1 .ne-'al Cost

8. SOURCM OF FINANCE

ADF LoanTAF GrantGovem mentBenesciaries

9. DATE OF APPROVAL

UA 12.43 milliollUA 1 .21 millionUA l .62 millionUA 0. l 8 millilll)

November 1998

10.

12.

lFSTIMATP STARTINGDATE OF PROJECT & DUM TION

t11. PROCUREM ENT

CONSULTANCY SERVICDREQUIRED

STAGE OF SELECTION

- :.. sq.,p:'. :.;

April l 999, for (? years

a) lrrigation eqtlipment, Vehicles and Motorcycleswill be procurecl through lntemational CompetitiveBidding (ICB);b) Civil Works, Small Farm m uipment and OfficeEquipment and Fumiture will be procured throughNational Colnpetitive Bidding (NCBI;c) Technical Assistmnce and Short-term Consultantswill be recruited through Limited Competitionbased .pn Short List using selection prtxedure ofcombining technical quality with price.

W ater Resources Development specialistInstitutional Adviserlnigation AgronldmistStudies: a) Crop Marketingb) Guidelines for Irrlgation Seheme Devûlopmentc) Rules and Regtllations for Irrigationd) Modalities for implementing the priject's Credit

Selection process will start as soon as the Boardapproves the Pnliect.

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SUM M ARY, CONCLUSION AND RECO M G NIIATIONS

BORROMX R

EXECUTING AGENCY

LOAN

: Ministry of Aglictllture and F'isheries (MAP)

: The Reptlblic of M ozambiqtlt'

2.

3.

(a) ADFTERM S

i) Duration

ii) Service Charge

Not exceeding UA l 2.43 M illion

Fifty (50) years including a grace period of 10 years.

: 0.75% m r annum on amounls disbure and outstanding.

iii) Commitment Charge : 0.5% on the undisbursed ptprtion of the lor, 120 days aftersignature of the loan Agreement.

iv) Repayment 1 % of princijal loan amount payable annually from the eleventh( l l th) year atter the signing k'f' the 1..0% Agreement through thetwentieth (20th) year and 3% per annum thereafter.

Not exceeding UA 1 .21(b) TAF Grant

4. PURPOSE OF THE LOAN

n e ADF loan and TAF grant, estimated at UA 12.43 million r d UA 1.21 million reslxctivelywill mœt the projœt's total foreign exchange cost and 73% of local costs. The Govemment will finance24.3% of the project lfxal cost, estimated at UA 1 .62 million, whicll represents 10.5 % of the projecttotal cost. n e benetkiaries will contribtlte UA 0. 1 8 million, representing 1 . 1 % of the total cost and2.7% of the 1(xa1 cost.

THE PROJECT

Obiedive

n e sector goal is to achieve a sustainable increase in househllld income and foe security in thesmallholder family sector. Spœifienlly the objective is to improve agricultural production andpre ucévity by smallholders in thrœ provinces, through: a) expansion of irrigated areas; b) increasedeftkiency of crop production; c) emmwerment of farmers, incltlding women; and d) improvedinstituéonal capacity and service delivery.

b) D- ription

To achieve the above objective, the project design consists o1' 5 main components: (a) lrrigationDevelopment', (b) Agricultural Tœhnology Transfer', (c) Direct Support to Farmers; (d) ManagementOmrations; and (e) Institutional Capacity Building. The project will lead to the development of about2,5* ha of new small-scale inigation schemes in the center and soutl) of the country. More th% 32

,(Ktons of incremental crop pre uction (vegetables, rice, maize, beans, groundnuts and sugar rmne) will beprY uci resulting from increax cropping intensities and higher yieltls. Y netkinn'es will be organizdinto fanner u sociations and tm ined to manage their own irrigation scllemes. n e institutional capacity ofGovem ment staff will be enhanced.

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6. PROJECT COST

1The total cost of the project is estilnated at UA 15.44 millitln, including contingencies, net ofl

. .duty. The foreign exchange component amounts to UA 8.79 represenling 56.9% of the total prolect cost.1The l(r

-a1 cost is estimated at UA 6.65 million. A stlmmary of the projem cost is shown in the tablebelow.

Summary of Project Cost Estimate,s by Component ;

VENTS Metimis Millih!l ' U A Million %COMPO' . ' ' l '1 'l F.E L.C 'TOTAL

.. F.E L.C TOTAL F.E '1.

t !A. lrrigation Development 56.748 2 1 . I 1 5 77,863 3.6 l l .34 4.96 72.9 .!. !

. ,yB. Agricultural Teechnology Transfer 4,729 l 2,09 l l6, 81) 0.30 0.77 1 .07 28. 1 jl Farmers 13.989 I I .54 1 25.53()1 0.89 0.73 l .62 54.8 i?C. Direct Support to1 1

D. Management Operations 20,657 28.4 I 7 49,0741. l .3 l l .8 l 3. 12 42. l .Q:jE. Institutional Ca lacit Buildino 12,507 5 ,626 l 8, l 3J11 0. 80 0.36 1 . 15 69.0 J.Total Base Cost j 108,630 78,790 l 87.42()' 6.9 l 5.0 l l l .92 58.0 :JT lPhysical Contingencies 4.352 2- I 74 6.52(,) 0.28 0. 14 0.42 66.7 j

i .JPrice Contingencies 25,088 23.563 48,65 l l .60 1.50 3. 10 51.6 ,1

Total Pro'ect Costi 138 070 104,527 242 597 8.79 6.65 15.44 56.9 t1,-; 1l '>ENDITURE jl7. SUM M -ARY OF PROJECT COST BY CATEGORY OF EX1

.

.'

jlë -- .. ë:iThe totnl prqed cost by category of expendittlre is stlmmarizetl in the table below : k

.,iSummary of Cost Estimates by Catetory of Expenditure '

CATEG4'ORTES Meticais Villipn l UA Million % .l F.E L.C 'TOTAL I F.E L.C TOTAL F.E 7':

i) l 74 0.92 .2.66 65.3 i1

. Civil Works t 27,3 14 14,5 l 6 41 ,83( . j2

. Equipment & M aterials 34,016 3.54 1 37,557 2. 16 0.23 2.39 90.6 'I3

. TA, Consultants and Studies 24,405 28,730 53, 135 l .55 l .83 3.38 45.9

4. Training ) 2,974 3,309 6.28.*4 , 0. 19 0.21 0.40 47.35. Farm Inputs and Services (Credit) 10,343 2.576 12.9 1 9 0.66 0. 16 0.82 80. 1I6. Adaptive Researcil 2,453 7,360 9,8 1 7; 0. 16 0.47 0.63 25.0

7. Govemment Stafflsalaries 0.00 I 4,36 1 14-36 I 0.00 O.9 l o.9 l 0.08. Operation & .Mai 'ntenance 7 , 125 4,397 l l ,52'2 J 0.45- û.28 0.73 6 l .SlTotal Base Cost j 108,630 78.790 l 87.42() 6.9 l 5.01 l I .92 58.0Physical Contingencides 4,352 2. l 74 6.52(, 0.28 0. 14 0.42 66.7

Price Contingericies 25,085 23,563 48,65 l 1 .60 i .5û 3. 1û 5 l .6

Total Project Cost 138,070 104,527 242,597 8.79 6.65 15.44 56.9

8. SOURCF-q' OF FINANCE

lThe project will be t'inanced from four sotlrces: the Africttn Development Fund (ADF

10=), the Jechhical lAssistance Fund (ADF/TAF grant), the Goverqlllent of Mozambique (GOM)and the Prqect Ben 'eficiaries (PBs). The loan and grant resotirces ot ADF and TAF, estimated atUA 12.43 and UA $1 .2 1 million respectively, will meet the entire tbreign exchan. ge costs (UA8

.79) and 73% of the total local cost (UA 4.85 representing 31 % ol the total prolect cost). The1 24 3% of local cost amotlnting to UA l .(,2 million, which representsGovernment will finance .

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10.5% of the total project cost. The GOM contribtltion includes staff salaries and allowances, leaseof office space, operation and mintenance for oft-ice equipment anll transport for local training.The remaining balance of local cost, amounting to UA 0. 18 million and representing 1 . 1 % of thetotal cost and 2.7% of the local cost, will be covered by the belleficiaries. lt represents thebeneficinries' free labor contribution for on-farm schelne constructitln (land leveling, digging ofwells, pipe lying), equivalent to 25% of the local cost portion of scheme construction. Theproposed financing plan is shown in the following table.

Sources of Finance (1n UA M illion)source of Finance F.E L.C TOTAL % Total

' Total Amount % (*41* Total COST CostAmount % ot

ADF 7.9 1 89.9 4.52 68. 1 12.43 80.6TAF Gmnt 0.88 l0. 1 0.33 4.9 1.21 7.8Govem ment l .62 24.3 1.62 10.5Beneficiaries - - 0. l 8 2.7 0.18 I . lTOTAL 8.79 100.00 6.65 l ()0.00 15.44 100.00

9.

The expenditure schedule for each year of the projezt is shown in the two tables below, bycomm nent and by source of finance respectively.

EXPEO ITURE SCHEDULE BY COM PONENT AND SOIJRCE OF FINANCE

Ex enditure Schedule b Com onent (UA million)COM PONENTS PY1 PY2 PY3 I'Y4 PY5 PY6 TOTALA. Irrigation Development 0. 17 0.45 1 .07 l .64 l .69 1 .46 6.48B. Agricultural Technology Transfer 0. 14 0. 13 0.33 0.29 0.29 0.25 1 .44C. Direct Support to Farmers 0.06 0.09 0.38 0.54 0.55 0.54 2. 16D. M anagement Operations 0.65 0.50 1.04 0.62 0.60 0.63 4.05E. Instimtional Ca acit Buildine 0.74 0.22 0. 15 0.08 0.07 0.05 l .31TOTAL 1.77 1.40 2.97 3.17 3.20 2.93 15.44

Ex enditure Schedtlle b Sollrce of Finance (UA million)COMPOC NTS PY l PY 2 PY 3 I'Y 4 PY 5 PY6 TOTAL

ADF 0.85 0.99 2.43 2.78 2.82 2.56 12.43TAF GRANT 0.7 l 0.20 0. l 3 0.07 0.06 0.04 l .2 lGOVERNM ENT 0.2 l 0.21 0.38 0.27 - 0.27 0.28 l .62BENEFICIARIES 0.00 0.01 0.03 0.05 0.05 0.05 0. 18TOTAL 1.77 1.40 2.97 3.17 3.20 2.93 15.44

10. IU LEM ENTATION

The project will be ilnplemented over a six-year period with l 099/2000 being Project Year 1(PY1). The implementation Schedule is shown in Annex 4.

PROCUREM ENT OF GOODS AND SERVICF.S

Project gGxls and services to be tinanced by the Fund will be procured according to theADF Rule,s of Procedures for Procurement of Goods and W orks or, as appropriate, Rules ofProcedure for the Use of Consultants, using the Fund's Standard Bidtling Documents. Civil worlcs,

. . 1. 1 : , . ; mv Nrv.F . > v -e 'N'r- . . rty

*

iv)

$ . ' .4

compdsing infield irrigation works, roads and bridges, will be earried out through Naéonal .hj'àiddl ing @ CBI', the location and size of the constructior) works to be undertaken are '71Comm titive

1such that they are unlikely to attmct bids from otltside Mozambitltle. Oftice equipment, officefurniture, irri.

gatil on pipes and other small farm equipment, will also be procured via NCB.Prœurement of lvehicles and water pumpijg eqtliplnent will be cttrried out under lnternationalCompetitive Bidding (ICB). Procurement ot technical assistants, consultants, NGOs' services andl

intem ational training will be undertaken through limited competitik'n, based on short list usinglselecéon ahd procedure of combining technical qtlality with prices

.

12 CONCLUSION Ar RECOM M EO ATIONS

lConclusion

lne prom sed Small-sczle Irrigation Projezt (SSIP) has a high priority in the reconstruction

d developmentl objectives of the Government of Mozambique. The SSIP will make majorIcontribution to the alleviation of poverty and to household food security of some 4,4V of theIpoorest families i'n the country. lt will increase anntlal hoklsehold income to M t 8.6 million (USD730) tkough the use of improved technology and better cropping i lltensity for high value cropsunder inigation. At maturity in PY6 the SSIP will generate an incremental annual pre uction of

l32,(* tons of various crops.

lThè poverty alleviation and household fcx)d security s% tegies of the SSIP are conceivedithin a framewol rk of full beneticiaries' participation, from the early identification of sites toW

completion of the Fhemes and to full ownership by the beneticiaries. B. y organizing the farmers intogroups and Msocihtions, SSIP will remove many of the çonstraints laced by the farmers and helpimprove smallholder productivity, income and welfare.

' . j

n e SSIP is also form ulated within the framework of the Economic Reform Program, which1 itutions

. lt will make ais being actively pursued by the GOM with support ftom the multilatttral instim sitive contribution to the economic growth of Mozambiqlle. ln parlicular it is expected to lead to

lan improvement inj the merchandise trade deficit by reducing rice antl vegetable import to a greaterextent th% the in 'crement in fertilizer and equipment imjort. lt has tlle m tential to yield additionalsugar exports. All these benests will be achieved with positive enviroll Inental impact.

The prom jed project is also in line with the institutional requirement and implementations% tegies of the National Agricultural Development Programmed ('PROAGRI), currently beingformulated by tIVIGOM and the donor community. Finj ly, the prkject is in line with ADF VI1development strat 'egy. It is therefore concluded that the SSIP is technically femqible, œ onomicallyand financially via6le and socially desirable.

tRecom m endationsiIt i

s therefgre recommended that an ADF loan not exceeding UA 12.43 million and anADF/TAF grant of UA 1.21 million be granted to the Reptlblic of 'M ozambique for the purpose of

limplementing the project as described in this appraisal report subject t() the following conditions:

A) Conditions Precedent to Entrv into Forcel

The entry' into force of the Loan Agreement shall be subjktct to the ftllfillment by theBonower of the prlovisions of Section 5.0 1 of the General Condititplls Applicable to Loans and

IGunrantee Agreements of the Fund.

. LXLL

%

;

.4*.

B) Conditions nw edent to Fi- Disbumement

n e obligations of the Fund to make the first disbtlrsement shall be conditional upon theentry into force of the L0af1 Agreement as set otlt in A above and the l'tlltillment by the Borrower ofthe following conditions.

n e Bonower shall have to the satisfaction of the Fund:

i) opened and thereafter undertaken to mainuin, on terms and conditions accepuble tothe Fund, in a repuuble bank acceptable to the Funtl. a special foreign exchangeaccount into which the proceezs of the 1..021 shall be delnosited (pnm. 5.7. 1).,

ii) omned and thereafter undertaken to maintain, on terms and conditions acceptable tothe Fund, in a reputable colnmercial bank acceptable to the Fund and that has ablunch in each of the provinces in which the Project shall be implemented, a special1H currency account into which the Project ftlnds shal l be dem sited (pnr'a. 5.7. 1).,

provided evidence of the establishment of a Project Co-tlrdination Unit (PCU) withinthe National Directorate of Agriculttlral Water Resotlrces IDNHAI to oversœ theoverall implementation of the Project, and of three Prllvincial Implementation Units(PIUs) in Maputo, Sofala and Zambezia provinces to i Inplement the Project (pnrns.5.2. 1 and 5.2.2),, and

iv) provided evidence that the National Directorate of Waler (DNA) has made rm uisiteanangement to provide adequate water deliveries, in terlns of quantity and timing fora11 seasonal crop water requirements, to the urgeted farmers downstream of the

Corumana dam (pnm. 4.5.2).

C) Undertakingsx

'

n e Borrower hereby undertakes for the benefit of the Funtl that any allcfation of land,

including land under customary tenure, for the implelnentation of the Projem shall be carried outfairly and in accordance with the laws of M ozambiqtle.

D) Other Conditions. n e Borrower shall:

make adequate annual btldgetary allocations to lneet its contfibution to the Projectcost; and

establish within three months of the entry into force of the 1.0% Agreement aProject Stœring Committee (PSC) to consider and approve the annuat work planand budge? (AW PBS) of the Project and ensure thptt they are implemented onschedule tpara. 5.2.3).

;)

r *V . f r. YF -v .. . r

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*- a v) (v = w' ., Q -' = tv = Q1 '-' . QJ u o *d -. = C1 = Q = t: = tz = - . 9J C H ,aee > Q o o ;D o (v = = o o = = >> = ux* o r Gâ (D O w. '- to ;z - ' -, t? tq = =* g 'J; î p &) = .- $Z = '= = * = E %- '-' = *-@D (D Q n o o a JJ 1J % c o .= w D = o < r.< w t: :z w. .- çz = .= .- - -. .= t: o o.)z w o .K Q w o '- : C) w = ea > w .- > wQ = c) *> o w k o k' = c = * Z3 ' ' ;: =*e o o o .- o p.x . o .. a o gj g g; c =j tz = >1 L> ..- = > > .;: m = > t.- k> = t.- . <s 'ç' o 43 o '= o %.- c Z: Z: '= z: u. $- = D.- .- . e) p x ,''x .a . .- = z x) = x o *' t.-t r: L7 Q: > t; O tv = () t: t* * w = '-- '- %'- Qz Ar: s a = e: o .. '- Ia % c. m U = x c tzO Q = x o *-$ o = m tâ = c: :: = = C* '> % = = '- :7i î .. a j = = .- o u. j z , : q o = .< . = Qo M ' L =, a . ?. .0 = . ' = =x a to w o tv . o . o c . = z. o . ..z jv o . rz a a . s w= = z = w w = . .: ..z . = .. z o uc o .- (:x. .- r; - = a.& n o ex n = = . .- .. v x tv . . u .X -0 . Q> . - O -u. œ ($ *' d J > & G> P = <* J = > - o D> g c (nm t) *) w, > .- . > o c: > o o ;Z.. Z: m m.Q = t.e = Q3 jv tM C = >? . u. v. ea oao X v t.- r ea = w C) . c) - ..2 y! ea1 w < w < = < - = o m > - ra œ o = w m = = m .. w

* * * * @ * * @ @ *Q *0 ièu'J 4/t? t: p- > c xQ m . -* o m G *1)

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.c m r u. o o . o ra(7 'y w. = '= xœ t.- m r o

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.J w = v. t? LJ 'o / u. = '- :Z? 13 a. o. o z z a. m d u uu u o

* @ * * * * * * * * * *

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. =w or : tzs g .z= a bg o- w o p.s= .w so = o = '- r .= - o :k O = r:o = o co = .u tv ta 2 ea = e o oY - w > o - a. .o 0 .=-, < Xw =m = L k ..m.=- u.*oa o z m w . o w xr .i u o - o w l m r = x . o o - o g'- . x o v m x = = = o = o x = m o = = oo n w c - o w w o o o o E =*

' r x - = r u = - o - w n z r o ot) r = .- ., g .. x'L r: o m :& > O t: 1) = D ty p *.. ql . o o = .-. * to r z: * = o tv. r. < = u m = w. .. -. .u x) o to u: ..- = u tow . .- u qz r .c çv r ro >. < = =. ue FI tà ND = Q * e; = -. = r? >. '> = O = e- O à' 'o c a) --. > = bw m . qg .= .a -. t: = ,'-w w ;Q- o o = x ç: .x :: 'a a m) m - = o v) , . * .- = c:X l *' o $Z > c , rej '- ' a = = % c % ' c: > = w. .= = o%; $Z rxl O tu = Z = ' - : > C )p. w. ;. . z? t> # u I o a;x1 .- tz = = =. (x) o = . x c a. r: .- .c .= y = m = = o= m a uu 11 ,- .2 w . -. a . 5 x o tq .- = û uO x . - . -. = c ea :2 gz c: w . -. = u. .u Q o = o o -' :) u :7 >. > . = '- '> .= 'u .- = -c7 2 = J>- tz I n .-' m . - . .I: t: T = . -. . -. =.O O t) c:l - tz u' d tv .- t/ = ' = u = > :7 w = o u 5 çu =œ O .:z o c: qz o = - = m > ..- = w = o .- = c: w c:X ** 1) = = Yo x -. za s = . si p c: g = .0 t) < = o . -. == v. := es rxl = r = (n tv . = . = , .. > > > >Sk c Gz ez ea o'- ra -.0 u >. :: r L o. .S , = s o J , = t: tu > . c .-. ; uo ç:c Q E . Q e w r - m = h u .t .d r m = o c m o o

o C .- c * * . w :: * = . = ,'C c n t) .-. o: t: >' = r = > -. >'* t: . c: m G: 'g * y) = > = = t: =. .c. = .c .Q m 'c (7 o ' SE = .2 = o v o = = m ee = >N = = 'u =

> * m. C) w. - w, = = n o X >. ' r .*r ' .r - .- ..Y a - e. . 2 X . r= v..x y . - <, >x ' - o > & wc e. ' u = cy x- . (7 f u C) 4n u. p - - u- *- tv w. Q m >$ .- ? = ... .- .a m '- e .m .- o - c taD X u o o Ch = M o = ' - = Q c: = t) ra GJ o 62 m = ; = ' -'.= .. .u o (n o c: > -R -. o o u o v) g ..:2 = m .= -. $z ç:o X c *- = C) = = ' '- w = p x .- -'ï t: p w. E * j! = o ' -'o rxj tv o o o t: vz ... = o o .. m p .. wA .- = .r o = o o ta a. ;z % * z: A o t7 tv o = .. or tv eq o .-. .. tv 9 = :g t..= tv o er

.= = .a x .m r = tv =o Q = o o r: t: Q v. w= = ' w w o = . c - ea 1 i!= C) I A o - qz If '- = & * m - .- t2 '-.j.xà qz .a c: tz. >. qz r = g = m o w a o o == tp < u. <. x w o c: trj x e. v. r c r r .k a o o ., .- o'-' = = Q cq C's o t: to rc No cz r o c o w k' = o .-, kz r çe * =re rT ** .f ..- L tz < . u. > C: tç t?r E u. co .- >. m = tv w < c >. = = eJ' ...c e: <' '= = o <' g) t= O tv = . =-. = o:z t) > = m = = .- I oa -. e: t.- o t.- c) ra o . ch .- .-' *' = *-& = - Q' o . c. o L* oJz bht > I = *1 O .2 = Kr: % > so G) (7 o o ;; o cp 'u o c . o c7 x .c < .u X' < .D = Q .* u. = Z = = :: = t)< .-- -. w. '- c)x u ly = os = (7N c & o c c .-. .m & x = t:< < o > (J .-. @; Q = .ro < o .-, 'a .-. =' .H vr l>. xr .- rzl .- m = = = (h4

.é '.- .- .. - .. .- .. .. o: ot $0 eo ro > >. w., %r.

= m wc: * =o o rd =t.- m .'= = c: == t.- o .= .-.C: o :z = r. %= > . c: = I > x -= mt) m (7 11 %- * Z:o = 'a w or . .

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. = = '- Q%. < rn y - tn .t o ..- x < . (z) .lz %c m .--- @ > -Q .- =- u -x .-. e. - ot ro >.

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o> 1: o '>t) .' .-j < >= t) * .0 C Q '*

.- r: J k' . * '-C ev =. = t: :q CJ

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= Q. <ç w r o .- = ' o--.- >N * o u = tz .r = .= %- ' X tko - 1: .- 5o x Ch tu r4 w.o t) c: .- = te< 'r' r = o r: t: '>A ez o x .- tà = =e o o < w .-, c: œ c: o > u wX - u - = ' -o o G . . c: .- '= e w= .- = o =. = t: = J =* 4: z - = = r -* * Q L* -

.- ..- O'- = o c. Q O = *1 . = o > tz qz .- qp. c'm u ut > Q N ' '* >Q Q >N... u- m >x Q &) u r .- .- A *' c O O t) O JK o .= = - r o- w > w w* Q o X e - - - - -< = = - - = 1 1 0 = 0 = = c ril Y-WW Q3 ' ** 6: * ** Q? QlD CQ PW * ** **'.1:) . .- %... 1:$ .5:: ,.: :Z () V-... c! = c: - o n (: ,n ..- w . r. =' w oe--. :1 pc: -m *** x- c: . ve < w ea .r- )yw o. t = = = . ..- u >o o . = v- o = = o ,o = c G)m 'J * (.) = m E (z) r4 (v w < . o (.7

* @ @ @ *. @

Q>=-Xt/ *c c:*r Q'-'o * -* 11> 11 :z tnt .-- o O Eo = c.o Cz

w C)* * .-' ' -'*?

o o ;< x x 1) co r =w .- = (.Jm m K c.

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=< * * tn >

%o - % tnP -

Ko % ro M: < <) oj wn n oqx. % ' . . , @G) e- . o c) cp ol%q m ->oï m =<< = -X o> * '

. .- ' &e - m --. *R î< = Nr rht r'-< V cq vn so -= >. . . . .x D o co o r.jw m=

rn = e-> & . . .A. ' o c e4

ol = *>. & >m o -

- t- % D < Iry - - c < >m o c c & &

==

.-. t'q t.n .:r <.. F-QQ m'= =*-= -=

.-.= .- = ,-x I -o rl t; tn t.o *4.- .c c .. u = c:. t .. = . - r = y) .ata m :7 = - .... .-.P o t/ .. ud . - sa = u .... ro rev cu q: * = *- .-- ra tv v. -.0 e- = = w cO r C ' *' q> ' '- h''e ' '- Oî m w. > t/ = w = = >%- .e o = tn c: eQ o = = o rv = .- = => G = '-' = :* ' -- > 'L= .-. ra = .-' t7* w. = c ra C: rc t* = = $D 1: '-.W1 = ' ' '- ' '-> = w ';2 Q ' .* = = C*r..- Q o . = o = = 7)œ o = = v) 'a C = w ..o . .- ,u* = Q' Q % Q C: Q'- O ' -.- =. .C: c. In c: = -..- .= .- t : c .= o c: 'a = . -. '=7= > E u t: = '-' :z C7 ' -' . >.' t) o t? =. o -' 17 = ta =k. = u o a. r: . -. :..a o o xk. m =, qo g =. r p = .-. o u. urn X ;: = .- '*eT *) a o .- w c: c: ra tha = =k G * = tv . Q= m t? ' = = o . -' .kS Q '- = Q*'-. * * w o o $z u = .- = ao = o o = w = = = t: . -= tv w. '= P c' 6/ c: = * $2 = -' CZ r.. ..- 17 - .- - = ao u . - o o o a. w x c: o ov) * = >. > *h ..- Q x A A -- o ts o = r . r' .- % o r '- % = D t: == = = o x o o = Q = h''e ' - = o 4 J - = wa oh .!o .- o v. - .- = r' w @: .'- .- .. 1: ;> A == = t: o = * * = ' - r - D: % 11 .= Q *E m = Q > a = O .= .- = *) Oc. = . . = < I = .= w t: = u = w >.. u =Q. t) g = = O = t.R D T n u ' - . I . w h.o '..w % o - Q k' = o = > < * c- .a A >. o x >. - I z = = w c. - t-o 1: * h* * o < ' - V o = l = œ 8.. M t- Q> o = .= G F- t: Y - - Q - - Z2 X 'Y., . (J *- . .. yao g .A = u. * g Q t: D = t: - J G> o o D.. o .. = 0

. o x .0 c wo wo .. z = A mQ o - = < r &) w .= , o .r .r tu .0 ... = u .=JD . > u . . = = .. :.a r ...- o ... o u u a x > .> t: c > ... aQ = .- .= - > o = D o o .. o o o o > p cQ p * = wo = w e= @) C) Q rl = o w = . .. Q = = - =' = = m X = > m = .- L) t) m cu t = m Q. '- LJ a. u2 F- a.* tz $4 = D19 'C f2 Q '=V ' C tkg . t = ='*'= u. n e. r.r. >. < l l 1 =, l 1 - I

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II .

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m TRODUCTION AND BACKGROUND

Origin and History of the Projed

1.1. 1 Agriculture plays a key role in Mozambique's economy. Development of the agricultural sectoris, therefore, centml to the Govemment of Mozambique (GOM) efforl to reduce poverty. Mozambique isone of the Ixàorest countries in the world with a GNp per capita of t1S$ 80. It is estimated that 69% ofthe m pulaéon live in the IMIUI aremq and abotlt 90% of this m pulation earn its living from rain-fedagriculture. Rural per capita income is estimated at US$ 50 per annum with the poorest area being as 1owas US$ 35.* m r annum. Recent droughts have adversely affected agriculture production, and maderain-fed agriculture an unreliable menns of achieving sustainable food security, particularly in view of theincremqing m pulaéon growth.

1.1.2 n e Small-scale Inigation Project (SSIP) was identified as a mtential project for Bank'sassistance in M arch 1997. It evolved from a concept paper prepared by the ADB mission based ondiscussions with the Ministry of Agriculture and Fisheries (MAP) and was designed as part of thelrrigaéon Comm nent of the National Agriculture Development Prllgram (Progmma Nacional para oDesenvolvimento Agro o, PROAGRI). The Bank commissioned tht' FAO/IC to prepare the prom sedprojœt and the prepa tion report was submitted to the GOM iI1 August 1997. The PROAGRIcomm nents were discussed and approved by the donor community 7tt the Donor PROAGRI Appraixmeeting, which took place in M ay 1998.

1.1.3 At Govemment's rm uest a Bank appraisal mission visited Mozambique in July/August 1998. n emission held discussions with the Govemment ofticials, tield staff, prospective benetkiarie,s includingwomen, fmancial intermediaries and non-governmental organizatitlns om l-ating in M ozambique. Aspecial workng group meedng was held with representaéves of donor agencies to discuss the results ofthe SSœ appraisal. n e donor represenutives had no objection to the project being implemented in 1999since it was found to be in line with the objectives and strategy of PRIIAGRI.

1 . 1.4 n is rem rt is based on the appraisal mission tsndings and agreements reached with the GOM .n e SSIP is in line wit.h the Country Strategy Paper (CSP) and with tlhe ADF-VII development strategy,which lays emphasis on poverty alleviation. It advocates a snlallholder participatory approachstrategy for income generation and improved food security. The project also supports theGovernment development objective of alleviating poverty thrkdugh the diversification of theeconomic base. If approved, it will be the first project of its kind 1t' be financed by the Bank Groupin M ozambique.

Perlbrmance of Similar Projeds in Mozambique1.2. 1 The Bank Group has not financed the development of alèy specific small-scale irrigation

scheme in Mozambique. However, it has finance,d several agriculttlral projects involving productionand processing of cash crops (cashew, tea, citrus, and stlgar cane. ), rural development, forests andwildlife conservation and livestock prodtlction.

1.2.2 The GOM has implemented a number of small-scale irrigation schemes including theChokwe, Sabe-lncomati, and U mbeluzi irrigation schemes. Varied degrees of success were achievedand the causes of failure in some project areas were attributed to the following: a) limitedexperience in inigated agriculture for the slnallholder; b) lack of extension and research support; c)lack of inputs in the rural areas; d) absence of credit facilities', e) i nadequate agricultural marketingnetwork', f) lack of farmers' participation in scheme design ktnd management', and g) noneintegration of socio-economic and cultural aspects in the development.

. q.t v, : . M( =

1.2.3. The SSIIP design has taken full cognizance of the catlses of failure of the smallholderIirrigation schemes

. lt adopts a farmer ownership and participatory approach to the whole cycle ofl

project implementation and utilization. lt provides dirrct support tk) farmers, adopts an appropriateItechnology transfer methodology and provides credit facilities to stlpport farm operations.

t2. THE AGRICUL L SECTOR

l2. 1 Salient Featuru

2. 1.1 Agriculture is the most important sector of M ozalnbiqtle's economy. M ore than 80% ofloyment in tlhe country and 90% of the rtlral. labor force are in agricultural sector. Agricultureemp

I(excluding fisheries) contributes between 25 and 38% to the GI)P, and generates about 70% of

export earnings.l It provides raw materials for about two-thirds of tbe manufacturing sector, andplays a dominatihg role in the commercial and distribution sectors.

(

'

'

2. 1.2 Mozambitue covers 36 million hectares of potential arable lald, out of which only 5 million areally cultivatel . ne coastal zones are the most heavily p opulated and consequently have the highestactu

ldensity of cultivated land. These areas are neither the lnost fertile nor tlle most productive

l2.2 Sta cture and Pedbrmance

l2.2.1 ln M ozambique, agricultural prodtlction is chnmcterized by two large and distinct production

1-I sedor (subsistence oriented) and th. e private sector (commercial oriented). Thesystems: the fnml y1family sedor conprises 3 million families, with ap estimated average family size of 4.8 members. Itoccupies almost 90% of the total farming area in the eùunfry, with an average of 1. 1 ha per family.iWomen play an iym rtant role in this sector. They represen't more than 60% of the rural labor force andcontribute 68% of the basic food crop production.

2.2.2 Since the peace settlement in 1992, and as a result of market l iberalization, positive result-s havelbeen achieved

. Ayricultural production has significantly improved ankl the country dependence on foodaid is virtually eliminated (FAO Crop and Food Stlpply Assessnlent Mission, 1997).' Total cerealYuction (maizel, millet, rice and sorghtlm) has experienced steady growth from 239,000 tons in 1992Pr i

to 1,4 million tonj in 1997. However, according to FAO, it is necessktry that annual production continueincremqing by 4-5% in order to meet the needs of the rapidly growîllg population and to achieve fœ dsecurity.

2.3 Constm ints to Agricultuml Developmenl

12.3. 1 As indicated earlier, the agriculttlral sector has registered ptpsitive signs of recovery in recent

lyears (pnm. 2.2.2). However, the agriculttlral prodtlction is very dttpendent on the rainfall, which is1

i nt and irregular to ensure yield stability. I:) addition , increasing populationfrequently insuffic çl .-

prusure, declininj soil fertility and traditional crogping pràqtices conti nue to limit the capacity of currentproduction systems, especially in the smallholder talnily sector, to supllly the increasing demand. Further

Idisincentives to producuon include pœ r roads, inadmtlate transfer of aapropriate technology (fragmentedl '*

'

* 1collaboration between research, extension and farmers) aqd lack ot affordable credit that still deterlmedium and long-term investments. The institutional capaqity to implement decentmlized projects andprogmms remainsl limite, at a11 levels. Regarding small-scale irrigation development the mainconskaints are th 'e lack of guidelines for irrigation development; lack of capital; lack of qualitied

l . dpersonnel-, insuffigient knowledge of opporttlnities and profitabi I ity in irrigated agriculture, anisolation of potential sites from lnarkets.

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' h.j2 42

.3.2 Govemment rœognizes these challenges and constmints and hils included strategic options, in the '?agricultural development m licy, to improve the sittlation. .t

2.4 Government Policy in the Agricllltllre Sedor

2.4.1 The policy and institutional framework of M ozambique is changing drastically from agovernment that was very centralized, with a highly controlled economy, to a government that is de-centralizing and moving to an open, market oriented economy.

2.4.2 In October 1995, the GOM approved the Agrictllttlral Pol icy and lmplementation Strategy(PAEI) to establish the middle and long term goals of the agricultural development The maineconomic policy objectives identified by PAEI are fotlr-fold: ( l ) food security, (2) sustainableeconomic growth, (3) unemployment reduction, and (4) poverty alleviation. Stemming from theseobjectives, the govemment's agricultural policy aims at the transformation of subsistence agricultureinto com mercial sector. This means that the agricultural policy aim s not only achieving self-suftkiency but also development of efscient agricultural market. 'I'hese objectives altogether wouldaccelerate the rural development. '

2.4.3 The main tools for achieving these agrictlltural objectives are: education and involvement ofruri population in management and sustainable tlse of natural resources; promotion of public andprivate investment in the fam ily sector', development of humal) resources', and incentives. Thegovernment recognizes the importance of women participation iI1 agricultural development. Theagricultural policy prioritizes the women participation in progrctlns of training, rural extension .production, and marketing.

The National Agricultural Development Program

2.4.4 The GOM designed recently a National Agricultural Development Program (PROAGRI) whichwas discussed and approved by the major multilateral and bilateral donors in M ay 1998. This five-yearprogramme which will be implemented starting l 999, seeks to embl'ace and rationalize all the M Ap's

activities and integrate all donor assistance with, as far as possible, common and joint procedures forimplementation of the components of the prograimm e. This is in order to reduce or eliminate theproliferation of difrerent processes and to increase em ciency and effkctiveness.

2.4.5 PROAGRI is to act as the umbrella framework for aIl agricultural sector development activities

under the Ministry of Agriculture and Fisheries (MAP). As a nlain instrument to implement theGovem ment policy. PROAGRI focuses on promoting economic grlpwth.' reducing poverty, improvingfood security as well as the nutritional status of the population', and expanding and diversifying crop and

livestock production for domestic and export markets, The major components of PROAGRI are: i)institutional development', ii) rural extension', iii) research', iv) agricultural production', v) livestock'.vi) forestry and wildlife', vii) irrigation', and viii) land management .

2.5 lnditutional Framework

Public Sector

2.5. 1 The M inistry of Agriculture and Fisheries (MAP) is the state institution which plans andexecutes the policies related to the land, agrictllture, livestock production, forests, wildlife,agricultural hydraulic and fisheries. The M AP is headed by a M ihister assisted by two ViceMinisters. It has nine National Directorates: Agriculttlre, Rural Extension (DNER), Livestock,Forests and Wildlife, Agricultural Water Resotlrces (DNHA). Fisheries, Agricultural Economics,Human Resources and Inspectorate-General.

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1 j4

2.5.2 There are 12 institutions under M AP incltlding National Agricultural Research lnstituteI(1N1A)

, the Agricultural Development Training Centem (CFA), National Mapping and RemoteSensing Center,j Documentation and Inforlnation Center, Technical School for Land Surveying and ;M apping and Ffsheries College. 1

l ,-12.5.3 The M AP is represented at the orovincial level bv a Provincial Directorate of Aariculture i

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and Fisheries (DPAP) and at the district level by a District Directorate of Agriculture and Fisheries j:! AP are divided into Provincial services representing each of the functional areas. 1(DDA). The DP1 '!

They are responsible for imolementation and control of programs and projects in orovinces and j! '*

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'.ultimately in districts in regular liaison with provincial and district administrations. The DPAPS

operate within Sdouble subordination lnechanism answering to the provincial authorities foradministrative and to the central MAP for technical Inatters.l2.5.4 The National Directorate of Agriculttlral Water Resources (DNHA) is responsible for1definition and execution of policies, strategies and projects for irrigation development in the rurallareas. DNHA'S total staff consise of 46 people. Five staff are Upper Level technicians (two economists,

!one lawyer, two agronomists) and six are Middle l zwel technicians ttwo hydrologists, one civil engineer,lone accountnnt, ope electrician and one on sttldy Ieave). There are il1 addition 13 Basic Lfvel staff, 221support staff and one technieml adviser funded by the Dutch Govem ment.

lNoncGovernmental Organizations (NGOs)

is2 5 5 NGOs in M ozambique have long providecl support to comtllunity organization, input supply, 'adaptive research and technology transfer and htlmanitarian aid. They have assisted the formation and

growth of smallj-scale projects and micro-enterprises, helped to Ilrotect national bio-diversity and' building at many levels from farm families to high Govemment officials. Althoughpromotezl capacity

some have not yet fully succeeded in tzanslating their ''emergency'' t(1 ''development'' interventions they ',l jare expeded to retain and intensify their roles in these areas

.

?l '.12.5.6 Most NGOs have, however, made some move in the direction of development as ogme tolief activities. lnl the past many NGOs worked otltside formal channttls, which was made relatlvely easyre

l .by the civil wu and wemk public organizations. The sittlation has now ehanged and the majurity of NGOS' ' incial levels. Most public sectorhave at least somq formal links with public services at central and pl kw

m anagers and decision-makers now appreciate that NGOs have a useftll role in development and that theyIcomplement official activiées. NGOs cover a wide rapge of activities ktnd have accumulated considerable

rience involvilng grassroots participation. Successes have been achieved in several areas, noubly inexpe1 daptive research

, farmer training, input Supplj antl (to a lesser extent) credit deliverygroup fonnation, aI - jand small-scale irrigation. Several NGOs are in a tavored positlon t(' assist zevelopment of small-sem e

l . jth theinigation, as they jre known to and appreciated by tarlners and are able to work in concert and w

approval of the public agencies.

l2.6 Imnd Tenure and Imnd Use

I2.6. 1 I >nd Tenrre: ln Mozambique land is vested in the state which regulates its use. However,nrlicle 48 of the 1990 constitution gives explicit recognition to the lalltl use rights acquired through non-lformal or customary methe s. On July 31 , l 997 the M ozambican parl iament enacted a new I >nd Tenure

1 mw (lei n. 19/97, Jin effed since January 1998) which enhances the temure security of the country's n!I-aIsmallholders. Am 'ong the modifications brotlght by the 1997 new land Iaw, one the most innovative is the1

'' it able yo acquite and holtl land use rights. According tb thisinclusion of ttI .ne--4l Community as an ent yK1 ,otol Comml unity'' is detined as a l'group of families and individuals living within a territorialAct, ! d

which seeks to safegtlard its colnmon interests through the protection of areas forlevel of a lofolity anhabitation or agricul lture, including both fallow and ctlltivated areas. Itlrests, pasture land, water sources

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and areas for expansion'' . The 1997 1aw makes it clear that there is 11o discrimination against women inacquiring land on their own rights (para. 3.6.3) and the tlse of land b)' Iofml communities is not subjectedto time limits.

2.6.2 Land Use: 36 million ha of land, which constittltes 45 percent of M ozambique total landarea of 80 million ha, has good soil for agriculttlral prodtlction. Presently, the cultivated area in thecountry is estimated at 5 million ha, of which the family sector occupies about 90 percent. Thefamily sector covers about 3 million falnilies, the majority of whom practice rain-fed andsubsistence agdculture without inputs and with low yields. The reclamation of Machongo (wetland), turning them into productive land, is gaining prolninence for thousands of farmers to whomirregular rainfall and 1ow soil fertility are major constraints for achieving food security.

2.7 Credit System in the Sector

2.7. 1 Until 1987 when the Government opted for macro economic reforms, credit management inMozambique was controlled by the Government. The Banco Popular de Desenvolvimento (BPD), agovernment owned bank, had the monopoly of credit administration and management. Thisarrangement had its own shortcomings: delays in the processing ()lr credit, low recovery rates, andlack of transparency in the delivery and management of credit. As part of the economic reformprogram , the government has undertaken a number of Gnancial reforms including liberalization ofthe credit administration and management. The BPD has been privatized in 1997 and the newprivate bank, Banco Austral, is in the process of restructuring itself and preparing its rural creditpolicy.

2.7.2 As a result of the privatization of BPD , there is no organized credit system in place to meetthe interests of smallholders. There is a government supported cretlit activity (Fundo de Apoio paraRestructuraçoa Fronomica, FARE) which utilizes proceeds from the privatization of publiccompanies to promote micro-entep rises and small-scale traders antl agro-business. This however, isa limited activity composed to available delnands. The Caixa Colllunitària de Crédito e Poupança(CCCP), which is supported by the Agence Française de Coopératitln and the Bank of Mozambique,supports capacity building initiatives by assisting in grotlp or association formation and provision ofcredit for micro-btlsiness.

2.7.3 At this point in time, there is no organized rural credit syslem in Mozambique. The privatesector that should have moved in is not well developed yet for this kind of assignment. ln the near

to medium term, as an interim measure, specif'ic projects may have to collaborate with the NGOsand Financial Institutions for rural credit adm inistration and Illanagement. It would be moreindicated to assist farmers and help them get organized to establish savings and loan institutions.

2.8 M arketing and Pricing

2.8.1 As a result of the macro-economic reforms, which have been in place since 1987, the marketingand pricing of agricultural produce has been liberalized. However, because of the inadequate capacity ofthe rural private sector in M ozambique, the Govenlment has taken (Ieliberate steps to develop privatesmall enteprises and % ders in the rul'al areas. The govemment is tltilizing funds under FARE (pnrn.2.7.2) to develop and restore traders in rtlral areas, with a view (1f improving on I'UIaI marketing,especially distribution of farm input.s and the marketing of farm prodtlce, among others. The Governmentis, however, monitoring the marketing (importation and distfibution: imd where appropriate exports) ofstaple crops to ensure fœd sœurity. Maize, rice and wheat are sonle of the major staple crops beingmonitored by the govem ment.

2.8.2 Poor infrastructure, espezially roads in the hinterland which were destroyed during the civil war.and which are not adequately maintained are affecting efticient markeling activities. This also has direct

impact on prices of commodities. The Govem ment has embarked on il sustained effort to rehabilitate theroads and storage facilities in the I-UI'aI areas, as an incentive to trade and the private sectof . In addition.

Ithe govem ment in collabomtion with locally establishe,d NGOS, especi/tlly the W orld Vision, is collecting

isseminatinl market information, incltlding prices, to assist the lt,cal people and the private sector inand d M

market n= ngements.

l2.9 Povedy in M oz>mbique

l2.9. 1 M ozambique is classified as one of the poorest cotlptlies in the world. According to the m verty

proflle conductej in 1996 and to the UNDp/World Bank assessment, 60-70% of the nlral mpulation and35% of urban m pulation live below the poverty level of USD 40 per annum. Mozambique' s social

indicators on mortall ity, morbidity and literacy are stlbsuntially worse th% the averages for sub-saharanlAfrica and the 1 m st Develo;e Countries as a whole (details in the Basic Data Sheet of this report)

.

l2.9.2. M ozmmbique's current medium-term developlnent progmm has poverty alleviation as one of itspdncipal objKti jves. The strategy adopted by the Govenllnent fo! that pulw se involves increased

lmary e ucation and basic 110 1th and investment in htlman resources. ln the agriculturalinvestments in priIsector sw cificmlly, the GOM , with donor supporl, is fully prepared to implement the PROAGRI as aI

major vehicle of tackling I'UIUI poverty.1 GArnox strm sscToR3. THE llk.ltl

t3.1 n e Sub-sector Analysis

i3. 1. 1 ln M ozambique, surface water is the main source of water used for inigation. The average

1annual nmoff is estimated at 215 billion cubic meters of which 41 % generated in the country. In the1

south of the country most of the river systems are the terminal reaclles of intem ational rivers such as

lncomati, Maputot Umbeluzi, Limmpo and Save rivers. ln the central Md northern provinces, with the' mmbezi and the Ruvuna rivers, the hydrographic basins are almost totally withinexception of the 7

, lM ozambique s borders.

3. 1.2 As many as 3million ha (9 % of the total cultivable area) are considered suitable forirrigation. About 120,000 ha (4% of potential) have been equippell for irrigation during the colonialtime, but by 1968 only 65,000 ha (54 % of the irrigated land) were operating. This was furtherreduced to 45,00j0 ha in 1990 because ot the civil war. Since th'e Peace Accord of 1992 the

proportion of thej equipped area regularly irrigated gradtlally incrjased. The actual distribution ofthe irrigated areas is about 75% in the two southern provinces ot Maputo and Gaza; 22 % in theCentral Provinces of M anica and Zambezia and only 3% in the relllaining provinces.

3. 1.3 About two thirds of the irrigated area comprise large scbenles of which 50% are sugar caneestates. The Chokwe scheme in Gaza province accounts for 34 % of the total equipped area for

irrigation and hasl 25,000 ha under gravity irrigation. With the exception of Chokwe, most of thelarge schemes ar 'e equipped with ptlmping stations froll) rivers or reservoirs. One third of theipped area is ul sed by farmer co-operatives or associations. Tltese are neither independent norequ

iautonomous >nd rely on the large-scale parent scheme for water .stlpply, maintenance of main anddary canals alnd other services.secon

l3. 1.4 Outside the large schemes, traditional small-scalç irrigatiol) is practiced in the Zona Verdeslor green belts around Maputo and other cities in the skampy areas (called mashongos) of the1southern coastal stjp where rice or vegetables are produced for urban markets. The farmers in theseareas use different small-scale irrigation systems. These include: a) traditional lifting devices insome parts of the central and northern provinces', b) gravity irrigation from perennial streams in

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Gorongoza district of Sofala province', c) hill reservoir irrigation with pumps for citrus productionaround Chimoio in Manica province', and d) small wind ptlmp schemes in Gaza and Sofalaprovinces. The SSIP strategy is to build on this local experience.

3. 1.5 Govemment Policy in the Irrigation Stlb-sector: The main obiective of the government policyis to m aximize the use of the existing irrigation schemes and prolmllte the use of inigation potential.The adopted strategies include'. rehabilitation and Illaintenance of existing schemes and improvementof management and use; completion of the irrigation schelnes already initiated', promotion of privatesector involvement', development of small scale irrigation schemes through the participation of usersin the construction, maintenance and management.

3.2 Project Area

3.2. 1 n e aremq to be covered by the SSIP are located in Maputo province (in the southern part ofMozambique), and in Sofala and Z-ambézia provinces (central part of the country). With regards todistricts the project will include Magtlde, Manica and Marracuene (in Maputo province), NhamatandaDondo and Gorongosa (in Sofala), Nicoadala, Majanga, Mopeita, Mkdrrumbal and Gurue (in D mbezia).'I'he rtlral m pulation is scattered but there are large tlrbr populations in the provincial cities of Maputo,Beil'a tsofalal and Quelimane (Z-ambézia) as well as in many of the d istrict centers within the provinces.Most of the project sites are located in areas optimally situated in lerms of access to district centers,markets and transport infmqtructures (para. 3.8.2).

Climate, Topogm phy, Soits and Vegetation

3.3. 1 n e agro-ecological zones are characterized by annual rain l'all of 400-800 mm in the south(Maputo) and of 1(K -1500 mm in the center (Sofala and Zambézia Rainfall is low and variable in thesouth but more abundant and reliable in the center (Annex 2). Despite the fact that rainy and dry seasonsare clearly marked, variability between years for the same monthly precipitation is considerable. ln everymonth dudng the rainy season there is a signiticant probability of low precipitation. Both irrigationduring the dry season and supplementary irrigation during the rainy semson are therefore required foroptimum plant growth and yield.

3.3.2 n e soils of the three provinces are predominantly medium antl fine textures ranging from loamyunds to loam r ndy clays with solne deep alluvial soils in areas that are suiuble for inigation.According to the United States Bureau of Reclalnation and Soil Classification, the suitability of the

reqions soils for irrigated agriculture range from Class I (highly stlitable) to Cla-ss IV (marginallysultable).

3.3.3 Currently, most of farmer families in the proposed project areas practke traditional subsistence-oriente agriculture on the rain-fed uplands. Some stlbsidiary and elllerging commercial agriculture ispracticed in the lowlands, mainly for vegetables and rice productioll . Sugar cane is an inigated cropgrown on large estates, eslv ially in the sotlth (Maptlto province). Maize is the main rain-fed food cropand is often inter-croplxd with groundntlt, beans or cassava. 1 mnd is scarce near the coast and alongrivers and recuperative fallow m ritxls are short. Typical yields of tht' lnain crops in 1996/1997 were inthe range 0.4-0.9 tons/ha for maize, 0.41-0.65 tons/ha for beans and l .5-1 .8 ton/ha for irrigated rice.

W ater Re-sources in the Projed Area

3.4. 1 Available data on water resources shows a good potential for irrigation development in the projectarea. ln M aputo province, surface water resources offer a significantly high potential for inigation in thelncomati river basin, with more tIIaII 69,000 ha potentially inigable from the Curumana reservoir whichhas a live storage capacity of 1,273 M m3. At present, the estimated irrigated area from the reservoir is

8

32,(%0 ha and the m tential for expansion is therefore signiticant. Allother source of inigation water inlthe lncomati ljver basin is represented by grotlnd water. Accortling to Govemment publications,

approximately 21 m3/s could be extracted between Xinavane and Mamtcuene in the middle Incomati andup to 20Fs/km 'of around water could be reaenerated in the lower lncomati. ln the Umbeluzi basin the

1 --'' '-'- .water resource offers a potential for additional irrigation development lor 3,800 ha.

l3.4.2 In Sofala province, 48,* ha regulated by the Chicamba dallè c,an be exploited along the Buzi

lriver basin. An ydditional 8,5* ha could be exploited during the dry Vmson from the Pungœ River, atributary of the Buzi River. In Zmmbezia province there is enormous potential for expanding irligationareas in the Tmm; bezi river basin which, wit,h its tribptmnes, carries over 58% of the country waterresources and prjvides a regular supply of 1 ,5*-2,000 ms/s downstream of the Cahom Bassa dam. TheChire River, a tributary of the Pmmbezi originating in I mke Niassa, is another source of very regular flow

3 lof about 200 m /s.

t3.5 Project Benefkiaries1

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3.5.1 The SSIPj urget group will be the poor smallholders ot the fal llily sector (para. 2.2. l and 2.9. 1).In the SSIP provjnces, the family sector consists of l 31 ,(G) farm fallli'lies in Maputo, 2 13,(X9 in Sofalaand 701,(K1 in 7m1 mbezia. Poverty is widely spread in these areas, esllecially in M aputo province. About

f the popullation live below the mverty level, as N r UNDP def llition.68% o

! -3.5.2 n e direct SSIP benetkiaries will total 4,* 0 farm tamilies, ()f which 1,4* will be in M aputoince, 1,4* i!n Sofala and 1,2% in Zambezia province. About 38 % of these dired benetkiaries areprov

1 f the urgeted families have exlàressed to the loeml authorities theirhouseholds headed by women. M any o

Iurgent need for inigation facilities. Accessing the beneticiaries in the llroject areas will therefore not be adiftk ult task.

Environm ental Aspects

l3.6. 1 The SSIP areas have already been farmed and yherefore the natural vegetation no longerexists. The soils of the three selected provinces for SSIP are suitttble for irrigated agriculture andtheir classification range from class 1 (highly stlitable) to class IV (marginally suitablè). The mainlproblems in the lparginally suitable areas are flood, drainage, salillity, and sodicity. Class IV soilscovers about 10% of the SSIP selected areas.

3.6.2 Due to high evaporation with low raintall and the presenctt of saline and/or sodic lacustrianand entuarine dlposits it is possible that salinity, especially in the sotlthern provinces such as1

- loss due to tlrought in the south is relativelyM aputo, may inorease. ln addition, the risk of cropl - i here the risk of crop loss ishigh compazed to the Central Provinces (Sotala and Zambez a) w

moderate to low.

3.6.3 Forests in Mozambique occupy 55 million ha, otlt of which 22 million ha are classified ascontaining forests with commercial value. Most of these forests comprise savannas characterized by

1ow productivity and low quality of tilnber. There is very little forest vegetation in the project-selected reas.

3.6.4 M ozambiqkue has been engaged in a comprehensive review of its environmental legislation

for the last few 1 years, gaining momentum after the Rio Con l'erence in 1992. In July 1997,Parliament enacte'd an Environmental Law. The law established a national Council for Sustainable

l ltative organ of the Cotlncil of M inisters, which also serves as a forum forDevelopment, a consu'

i tal issues.public debate on env ronmen

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Gender Analysis

3.7. 1 W omen comprise 51 % of Mozambique's population and about 85% of women live in therural areas. They represent 60% of the rural labor force, carry (ltlt 80 % of the total family farmwork and contribute 68% of staple food production. They are mostly involved in the production -and often in the locz sale - of food crops. Areas of major concerl) with respect to women includeexcessive workloads, low literacy and poor health and nutritional slatus.

3.7.2 The incidence of women headed hotlseholds in Mozambique is 20-25 per cent but it isconsidembly higher in the southern provinces dtle to lnale nligration. ln the proposed project area it isprobably as high as 30 per cent on average. ln the case of Maputo province, where male migration ispnrticularly imm rtant, it is estimated that the Nrcentage of householtls in which women are resm nsiblefor making the day-to-day dœisions relating to farm and household Inanagement is 50 m r cent. n esewomen are usually divorcœ s, widowed or unmarried. M ore th% 30% , however, are virtually singleparents due to semqonal migraéon of their husbands. Female headed households are, generally, Jo rer asthey have low labor-power, high dependency ratios, severe lack ('f productive assets and relativelysmaller farm sizes.

3.7.3 W omen have not had equal access to land, credit or extension stlpport in the past. They hold littlecontrol over the farm benetits and falnily assets. Traditionally, male l'amily lnembers have always beengiven preference in inheritance. There are now signs showing that wolllen are tnking a more active socialand political role outside their domestic responsibilities. Following the 1995 W omen Conference inG ijing, Mozambiemn women subscribe lnore and more to orgMizalions concemed with women rightsand emm werment. Under the new land tenure law bill (para. 2.6. l ), rights of women to sœure landtenure have been entrenched. This is probably the lnost signiticant achievement in support of nll-alwomen in the past dezmde. Thus women who benetit from the prom sed SSIP will be ensured security oftenure and encouraged to invest in the land and its productivity.

3.8 Infrastructure in the Project area

3.8. 1 lnfmqtructure facilities suffered a great deal during the civi l war. Currently there is a roadrehabilitation project that is being financed by several multilatelal antl bilateY donors in the country,including the ADB. n is is the Road and Coastal Shipping (ROCS) project. It is in the second phase ofimplementation.

3.8.2 ln the Maputo province where 40 percent of the project area is located, the road network isntisfactory. n e M anhica-Magude railway line traverses the area and two main a11 weather gmvel roads

connœt al1 the major roads in the project area. These are the Moaba-Boane-Maputo and Maputo-M arrncuene-M anhica-M agude road connections. The proposed smal l irrigahon schemes in the Sofalaprovince lie within the Beira-Macipanda highway corridor. They artt well connected to the main roadand railway network and close to Beira lnarket. The majority of tht' schemes are within 5 km of theBeim -Dondo-Nhamax da-GorongoM road network. The Zalnbezia province suffered more devastationfrom the war. Some of the roads are currently tlnder rehabilitation (ROCS 11). The Maputo highway tothe North pa ses through this area and affords the main communicatitlns to most parts of the province.

n e important network to the project is the Qtlelimane-Nicoadala-Alto Molocue road connection. Toimprove on accessibility, a s-kilometer road linking the prqîect area will be rehabilitated under SSIP,together with the construction of two small bridges.

3.8.3 n e majority of the benetkiary colnlnunities lack basic social infrastructure and services such asm table water, electricity, and bank facilities. Most of the colnmunities do not have pipe borne water andso have to rely on wells, springs, and streams or rivers. They do not have rural banks or credit unions.Market places, which offer outlets for the farmer's produce, are fai rly well distributed in the projectarea. Some primary schools are also within reasonable disunces in most communities.

l ( )

3.9 110 1th and Nutrition

l3.9. 1 There arje 348 health units in the SSIP areas representing 33 percent of the total at thenational level', out of which 13 hospitals, 56 health centers and 253 health posts. The number of

lsuperior personqel working for the health tlnits is 94 representilqg 20 percent of the total at thenational level. The number of beds per thousand individtlals in tht: three provinces is relatively lowcompared to the ratio for Maputo City (0.4 for Zambezia. l . l for Sofala, 1 .0 for M aputo province,

and 2.1 in Maputo City).1 have been rekorted in recent years (8535 cases in 1997). Diarrhea and3.9.2 Cholera tcases

' found to be hlgh in the cotlntry wh' ere the reported cases reach 285 thousanddysentery infectijons are

for diarrhea andt 52 thousand for dysentery in 1997 leading to de.ath of 256. The rural populationsuffers from malnutdtion due to shortage of food pver periods ot 3.7 months in average per year.As a result, half of the children are stunted and many babies are underweight at birth.

3.9.3 The SSIP is expected to increase the farmers' incolne, which would lead to a higher demandfor social development in terms of primary education and basic medical services. Consequently, theinfant mortality iill be decreased and litk expectancy will be increktsed. Diet, especially of children,I

e,d through the opportunity provided tb consume grains and vegetables with highwould be improvlnutdtional value produced at the family farm .

l4. THE PROJECT

t4. 1 Projed Approach and De-sign considerations

14. 1 1 The proposed project seeks to assist the Government to develop a small-scale irrigationlproject and the necessary supporting services. Project design is collsistent with PROAGRI principlesl

- i jty kn oe privatein that it will encourage decentralization ot planning and control , tlse exist ng capacd NGO sectolrs, and full beneficiary participatiop in sohelnes identitk ation, design andan

implementation. llntegration of activities with other componenls. of the PROAGRI, especiallyextension and research, will be essential in achieving full benefits ()t the project.14. 1.2 The project aims at optimum use of existing Government capacity in partnership with therivate sector andl NGOs. Current capacity is a limiting. factor, and for this reason, it has beenP

l . ill be largely devoted todecided that the project implementation period be six yearj. The fi I st year wIenhancing capacity through training of implemeniation personnel Ctnd farmers and to çstablishing alimited number ot schemes in the target provinces. ln this context i t is envisaged that the project willcover in the early stages the existing and potential sites in M aputt'. Sofala and Zambezia provincesthat have been identified on the basis of a set criteria as the Inost fflvorable sites for development.

l4. 1.3 The projecjt will be built on the basis of a series of models that reflect various options fortypes and sizes of tschemes to be developed. lmplementayig-n will be guided by the principles set forihe lnigation component of PROAGRI. The allocation of tunds attempts to maximize the number of

beneficinries and jachieve the highest possible impact tsp Goverllment's principal goals of foodsecurity, poverty 'alleviation and econom ic growth. A high proptlrtion of the direct beneficiaries

i .

j (jed yy women.would be female farmers, as many hotlseholds in the project area al e eal4.2 Projed Goal and Objedive!4.2. 1 The SSIP jector goal is to achieve a sustainable increase in hkpusehold income and food sœurity

in the smallholder family sector.

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4.2.2 The slxcific objœtive of the SSIP is to improve agriculture production and productivity bysmallholders in 3 provinces, through: a) expansion of the small-scale irrigation areas; b) increaseeffkiency of crop production; c) empowerment of farmers, incltlding women; and d) improvedinstituéonal capacity and service delivery.

D- dption of Project Outputs4.3.1 As a result of the implemenution of SSIP, 652 small-scale irrigation schemes covering atotal area of 2477 ha in three provinces will be established. The ntllnber of schemes by province is:for M aputo province, 309 schemes covering 903 ha', for Sofala pnlvince 163 schemes covering 674ha; and for Zambezla 180 schemes covering 900 ha. ln order tk) facilitate marketing of the farmduce, a 5- kilometer feeder road will be rehabilitated and two small 6ridges built in the Sofalapro

province. Additionally, 12 open market sheds to be used by the women for marketing and groupmeetings will be built in the provinces.

4.3.2 An increm ental production of 32.000 tons of food and cash/high value crops will be achieved atfull development. By the end of the 6-year project. I 90 farmer associations will be formed and trainedto manage their schemes em ciently.

4.3.3 As a result of the training project, the capacity and skills of thtt stafr at the central and provinciallevel will be significantly enhanced. M ore than 60 technicians and extension agents will be capable ofdesigning, managing and implementing small-scale irrigation projecl s eëciently. Two DNHA'S teammembers will have a M Sc degree in irrigation and economics.

4.4 Detailed Description of Com ponents and Activitie,s

4.4. 1 The propose SSIP comprises five complementary colllmnents namely: a) lnigationDevelopment', b) Agricultural Technology Transfer; c) Direct Support to Farmers', d) Management andOperaéons', and e) Institutional Capacity Btlilding.

A. Irrigation Development Component

4.4.2 n e small-sfmle inipation developlnent under the prqject will I'ocus initially on areâs where thereexists some capacity in im gated agrictllttlre. The development will be demand driven with the fullparticipation of the farmers in the conception, identitication, design itnd physifml implementation of theschemes. The design of the various schemes will be based on a rallge of models that reflect variousoptions for types and sizes of schemes (Annex 3) . Typical water lilking equipment or other means ofproviding water include treadle pumps for 0.75 ha plot'. wind pumps lbr l .4 ha plot; diesel pumps for jha plot, eleztric pumps designed for 100 ha stlgar cane schemes and tlle construction of a diversion weir.Altogether 197 treadle pulnps, 95 wind ptlmps, 349 diesel pumps antl 6 electric pumps will be installedin the thrœ projœt provinces Maputo, Sofala and Zalnbezia) .

4.4.3 n e provincial inigation units' staff will be trained through courses, workshops and on the jobtmining in topics stlch as soil survey, irrigation scheduling, water resotlrces survey, participatoryapproach, scheme identification and design and water management. 'l-he initial collecdon of data for theirrigaéon design with reslc t to water resources assessment and the soil survey will be contracted toconsultants Md to the National lnstitute of Agrictlltural Research (INIA), respecévely.

4.4.4 n e project will start with the construction of one scheme in each province during the first yearafter the tmining of technicians. This approach will enable the prqjttct to test and eventually adjust itsapproach (Annex 12) while at the salne time providing some practirml experience in schemeimplementation and management. The consmlction activities will continue for the project durationculrninaéng in an aggregate of 652 schemes developed and covering irrigable land of 2,477ha.

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'..' q.'.(jI4.4.5 n e civil works to be Ca-IJ'I'ie.II out will incltlde land leveling, construction of lined and unlined 'jdistribution andl dminage canals, construction of hand dug wells for agricultural and domestic water, jconstnlction of 'concrete water tnnks for water storage with rrespect to the wind pumps, constnlction of a ; j jl j

j5 km feeder road together with two small bridges. The beneficiaries will contribute 25 per cent of total ..l x '(1(:v

.,a1 cost of s 'cheme construction in labor. The design of the roêtd bridges and the large schemesiated with t$ e sugar cane development will be contracted to constlltants.assoc

t4.4.6 n e component will also test one innovative aspect of small-semle irrigaéon development for a

lmriod of two yg s. This will involve the stlpmrt for the setting up of a small enterprise in each of thethree provinces that will manaae and hire out a toul number of 40 slllall pumps to individual prY ucers

l -'''- .where permanent irligation infmstructure cannot be jus.tified. A consultnnt will be engaged to provide

guidelines for the test and an NGO recruited to screen prospective opemtors in consultation with project' T 1 hnicnl suff will also be engaged to monitor and ensure that omrators give some prioritybenetkinnes

. egto work in the SSIP areas. Thev will orovide oreliminary assessment of the impact of the mobile pumps

! '-' ' ' -on crop ptoduction. An independent evaluation ot the nerformance êtnd the contribution of the mobilel '' * , .

pumps unit to the SSIP will be carried otlt by a consultant at the end ol the two years.

1 -B. Agricultural Tezhnology Transfer

l4.4.7 Thit comm nent seeks to incremqe overall production and prklducévity of irrigated crops. Key

Ielements are development and dissemination of appropriâte technology for irrigation. Technology will beIdevelo;e in a collaborative way among producers

, extenjion services and scientists. The resemrch andlextension elemenjts of the SSIP will be intimately linked to PROAGRI. lnterventions will address aslr tsof tœ hnology 'transfer relating to: water managemçnt; inigation schexltlling; improved vnrieties; rational

l ' d environmentally friendly and sustainable practices such as the use of greenuse of external inputs, an1manure and integmted m st management techniqtles.

4.4.8 'I'he main elements of this component will be: i) lmproving prt'duction technology via support formainly adaptive resemrch and demonstration plots and on farln technology testing of crops and irri' gation

1 ' ii) Broad based farmer training inand cultural techy iques with the close participation of beneticiaries,appropdate twhn'oloav and improved cropping practices for inigated agriculture by extension staff who

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M ultiplication of seed of recommended improved varièties.

4.4.9 The SSIP will provide a total of two 4-whee1 drive vehicles and 18 motor cycles to assist theeffective implemenution of this component and will supply six sets of m uipment for communications

. $and tcmning. A total of 108 adaptive research trials. more than 1 100 (Iemonstrations plots and about 1 14I

seed multiplicatiog plots will be established tlnder special agfeement between DNHA and the researchinstitute (IM A). Tjhe farmers will participate in about 990 exchange visits or field days. Contmcts will beawarded to NGO's and slc ialized institutions for develojlnent and implementation of the componentlactivities including development and delivery of training modtlles.

lupport to FarmersC. Direztl4

.4.10 lmplementation will involve a Participatory lrrigation Manêtgement methodology. The main1 ' f tht' planning, design and managementobjective would be to secure farmers participation in a11 aspects ol

. j j )of their own schemes. This would include: (i) an intensive informatioll campaign to raise âwareness, (tion of farmejl mssœiations and reorienting existing traditional t'rganizations'. (iii) participation increa

water management design and scheme operation ', (iv.) direct' farmers' involvement in most of the labor1 - i lvelllent in lnanaginj' water fees; and, processing andworks to complete field layouts, and (v) nvol

marketing activities.

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4.4.11 Tœhnieml Assisfnnce (6 p/m) will be used in the initial stages ('f development of tmining modulesand legal aslv t.s of group formation, including land tenure issues. The Msignment will also include amarketing study and the prepnm tion of gtlidelines tbr the monitoring and evaluation of post-harvestactivities. Con% cts for subsequent implementation would then be awarded to eligible NGOs fororganization and formation of farmer associations. The SSIP will award contracts to NGOs and theprivate sector to form 190 farmers' groups and carry out training for a total of 4(* farm families. SSIPwill also fund information campaigns covering the design and printing of N sters and lemflets, awarenesscampaigns on national radio, communications units m uipped with videos r d TVs in each province.

4.4. 12 A credit system will be available to farmer groups for seasonal inputs and purchase of m st-harvest processing equipment (10 rice dehuskers). Provision of irrigation equipment (pnrn. 4.4.2) wouldbe via credit supplied in Und (pumps and equipment tlnder the Inigatitln Development comm nent).

D. M anagement Operations

4.4. 13 The SSIP will cover the cost for management operations, in the DNHA and in the provinces, andwill provide office and transport muipment to stlpport these tlnits. A Project Co-ordination Unit (PCU)will be established within the DNHA to oversee the overall implemelltation of the projœt. ln addition,thrœ Provincial lmplementation Units (P1Us) will be established in tlle three provinces. The P1Us willoperate within the Provincial Directorates of Agrictllttlre and Fisheries (DPAP).

4.4.14 n e PCU and the PIUs will be staffed with consultants. The PCU will consist of a project co-ordinator, an œ onomist, a financial controller, an accountant/credit specialist, a prx urement assistnntand two supports staff. Fach P1U will be staffed with one project manager, one agronomist, onehydrologist and one accountnnt. These SSIP team members will be comm titively rœrtlited on full timebïsis for the dumtion of the project, approved by the Bank and paid from the loan pr s. The SSIPwill also procure two vehicles for PCU, two vehicles for DNHA at tlle central level and six vehicles forthe P1Us. Provision is made for tield stlrvey m tlipment to assist tlle provincial units. Funds will beprovided for tmvel expenses inside the cotlntry to facilitate communicCttion between the provinces.

E. Institutional Capacity Buildin:

4.4.15 This component aims at enhancing the intenpal capacity and providing institutional support to theimplementing agency (DNHA) at the central level and to DPAPS at tlle provincial level. The comm nentinclude,s studies, technitml assistnnce, m tlipment, and training. Three studies will be undertaken in thefirst yemr namely', itlkules and regulation for irrigation development'' : uGuidelines for inigation schemedevelopment'' ; and Rcredit study''. Funds will also be provided for technieml &ssistnnce in the areas ofwater resources assessment/scheme design (18 p/lu), technology transfer rf irrigation r d croppingpractices (10 p/m), and direct support to farmers/participatory approacl) (6 p/m).4.4. 16 The most important activity under this component is the training of staff both at the central andprovincial levels. ln total, more tIIM 60 people will be trained in lhe areas of irrigation, technologytransfer, environmental management, participatory approaches and gellder issues. The training programwill be emrried out in accordance with the anntlal planning set by SSIP (Annex 13). Two DNHAtechnicians will receive university training (MSc degrœs) in irrigation and œonomics frominternaéonally rœ ognized universities.

4.4. 17 SSIP will also provide supm rt to eqtlip DNHA, the PCU alld the P1Us with oftke furniture,communication equipment and tield survey eqtlipment. A total of 14 computers and m ripherals, 5photocopi:rs and 6 telecopiers will be provided. Provision is Inade tlntler the project to further equip theunits with one soil and water testing kit and 4 sets of Ineteorological illstruments. Fundz will be providedfor regional and intem ational travel to enable DNHA and PCU to attend imm rtant international

conferences relevant to the project. Visits to the ADB headqtlarters cotlld also be needed.

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:?'4.4. 18 M any wgmen are involved in the marketin: ot farm nroduce in the SSIP area. ln order to help .!1 --' -

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;them, this component includes the constnlction of 12 omn Inarket slleds (4 in each of the 3 provinces) jIthat will atso be used as meeting place for women associàtions. ';!

t 'Credit Aetivities

l4.4.19 An amount of UA 2.07 million has been allocated for credit activities to facilitate projectb

f this amount, UA 1.92 million will be tltilized by the project to prœure and installimplementation.inigaéon pumps on reslxctive beneficiaries' farms (paa. 4,.4.2). This ctedit will be recovered over aperiod of 3 to 7 years dem nding on the nattlre of tlle eq. uipment prlloured . A. further UA 0.07 will bemade available to 1()* enteprises or traders in the projed area to enable them procute mobile pumps,d any other reql uired services

, to the farmers (para. 4.4.$. ln addition, UA 1.08 is allocated to assist1

ri farm inputs and post-harvest p rœessing m tlipment (pnrn. 4.4. 12). The creditbeneficiaries in prœu ng!will be made available either in e-qqh or in king d epending oh circumstances.

4.4.20 However, there is not, at present, a viable rural credit system in operation i.n Mozambique (para.2.W. ln this connection, the project has made provision for a qualithed consultmnt to conduct a detailedcredit smdy, with a view of proposing a viable credit mezhanism Ior the project. The study will beconducted at the early stage of project implementation in PY 1 . Basic areas if study i'nclude, but notlimited to, credit adminis% tion (banking facilities, interest rates, etc) and' cred it management (delivery,)

-

monitoring, recoïery, etc). The consultant will be requireè to identi ly mssible options wilh regards totype of credit, delivery mechanisms, and recovery and repayment period. He/she will make appropriaterecommendations based on comparative advantage. The role 'of commercial banks, NGOs, farmet groupSavings and

, I-OaIA schemes. and viable private instittltions are among tlle options to be considered. Terms

of reference fpr the consultnnt are presented in Annex 1 1 .t4

.5 Project Ass-umptions and Risksl4.5. 1. Due to limited gpdate information on resotlrces (water and lald), a nqmber of assumptions werelmade in the desigr of the irrigation models which need to be verifiwl in the initial stages of the projectimplementation. The inherent risk in the asstlmptions is addressetl by including in the project, apreliminary phase of natuml resource investigation (stlrveys and studies).

4.5.2. n e timelï availability of sufficient water downstrmln of tlle Corumana dam in the Maputoprovince is 'essential to avert crop failtlre in the lower Incomati river basin. The GOM would tnke the

t 'neceskary action to ensure that the National Directorate O.f Water (DNA) provides adequate water$ .

deliveries (in terms of quantity and timing for A11 seasonval crop wktter requirements) to the targeted1

farmers downstream of the Corumana dam (10% condition).1 -4.5.3. Some part j's of the selected are-as in the Sofala Cmd ZaInbezia provinces are susceptible to flooding

$ * . .during the rainy season with consm uential lisk cd crop failtlre. For a small scheme, the cost of flood1 ibitive

. The risk is addtessed by selecting theN most suitable sites andprotœ tion memqures would be proh1

adopting a cropping pattern that will not coincide with the tloods.

l4.5.4. The availabilitv of market outlets where farmers would sale their surpluses could be a

l '-' .shortcoming to the project. lt has been assumed that the growing demand and the liberalization ofproduce marketing tand subsmuent private sector involvement (section 2.8) will overcome this constraint.In addition, some ijmportant considemtions have been incltfdz in the project design to minimize this risk:(i) the selected project sites in each province have adequate infrastnlctttres (section 3.8) to accommodatetransport and marketing of the exlected incremental production, (ii) pawisions are made for a mafketingistudy and for monitoring and evaluation of post harvest activities (para. 4.4. 1 1) to inform thebenefciades and tr-aln them on marketing aspects in tarm manygèmenl (pnm. 4.4. 10).

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k 4.6 Projed Cost Estimatu

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4.6. 1 n e total project cost is estimated at Mt 242,597 million, or UA 15.44 million includingcontingencies net of duty. n e foreign exchange component amounts to Mt 138,070 million or UA 8.79million representing 56.9% of total project cost. The lœal cost portion is Mt 1+ ,527 or UA 6.65million representing 43. 1 % of total cost. A summary of the cost estimate is shown in table 4. 1 below.

Table 4. 1Summar.y of Proiect Cost Estimates by Component

COMPONENTS Meticais Million 1 UA Million %F.E L.C TOTAL l F.E L.C TOTAL F.E

A. lrrigation Development 56,748 2 l . 1 15 77,863 3.61 1 .34 4.96 72.9B. Agricultural Technology Transfer 4,729 12.09 1 16,820 0.30 0.77 1.07 28. 1C. Direct Support to Farmers 13,989 l l ,54 1 25,530 0.89 0.73 l .62 54.8D. M anagement Operations 20,657 28,417 49.074 l .3l l .8 l 3. 12 42. 1E. Institutional Ca acit Buildinu 12,507 5.626 l 8.1 33 0.80 0.36 l . 15 69.0Total Base Cost 108,630 78.790 l 87.42t) 6.9 1 5.01 l l .92 58.0Physical Contingencies 4,352 2, l 74 6,526 0.28 0. 14 0.42 66.7Price Contingencies 25,088 23,563 48,65 l l .60 l .50 3. 10 5 l .6Tntal Pro'ect Cost 138 070 l04 527 242 597 8.79 6.65 15.44 56.9

4.6.2 n e cost estimates are based on the August 1998 prices, including tenders for civil worlts.

fumiture and muipment. A physical contingency of 5% is included in the project costs for al1 categoriesof exm ndimre except staff, toining and consulting services. A price contingency of 3% comm unded isapplied to a11 the foreign exchange cost, based on the projected, weighted avemge of the inflation rates innon-regional member countries (World Bank tigtlres). The same rate is applied to non-govemmentalexpenditures in local currency, as these will be disbtlrsed from the UA equivalent. For Govem mentexm nditures, forezmq inflation rates have been adopted to take accotlllt of the recent stabilizing trend inthe Meéfois, and are set at rates reducing from 5% in the first fotlr years of the project to 4% in thesubsequent ye>rs. n e cost by category of expendittlre is stlmmarize.d i 11 table 4.2 below.

Table 4.2Summar of Cost Estimates b Cate o of Ex enditure

UA Million ' %CATEGORIES Meticais Million g. y. EF

.E L.C TOTAL F.E L.C TOTAL '1. Civil W orks 27,3 14 14.516 41 ,830 1.74 0.92 2.66 65.32. Equipment & M aterials 34,0 16 3.54 l 37,557 2. 16 0.23 2.39 90.63. TA. Consultant Services and Studies 24.405 28.730 53. l 35 l .55 l .83 3.38 45.94. Training 2.974 3.309 6.283 0. 19 0.21 0.40 47.35. Farm Inputs and Services tcreditl 10,343 2.576 12,9 19 0.66- 0. 16 0.82 80. l6. Adaptive Research 2,453 7.360 9,8 l 3 0. 16 0.47 0.63 25.07. Government Staff Salaries 0.00 l 4-36 l l 4.36 l 0.00 0.9 l O.9 l 0.08. Opemtion & M aintenance 7, l25 4,397 1 1,522 0.45 0.28 0.73 61.8Total Base Cost 108,630 78.790 l 87,420 6.9 1 5.01 1 1 .92 58.0Physical Contingencies 4,352 2,. 1 74 6,526 0.28 0. 14 0.42 66.7Price Contingencies 25,088 23.563 48,65 1 1.60 1.50 3.10 51 .6

Total Project Costs 138,070 104,527 242,597 8.79 6.65 15.44 56.9

4.7 Source-s of Finance

4.7.1 The projœt will be financed from fotlr sotlrces: the African Ilevelopment Fund (ADF 10=), theTechnical Assistnnce Fund (ADF/TAF grant), the Govemment of Mtlzambique (GOM) and the ProjectG neficiaries (PBs). n e loan and grant resources of ADF and TAf''. estimated at UA 12.43 and UA1.21 million respectively, will meet the entire foreign exchange costs (UA 8.79 million) and 73% of the

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l ('j : 'j' j?total local cost (UA 4.85 million representing 3 l % of the total projed cost). The Govemment will . . j tyofinance 24

.3% of loeml costs amounting to UA 1.62 ldillion, which reptçsents 10.5 % of the total project '%cost. n e GOM contdbution includes staff salaries and allowances, lease of office space, opemtion and .î. Jtt .maintenance for office equipment and transport for local training

. The remaining balance of loeml cost, t .

amounting to U t 0. 18 million and representing l . l % of the total cost and 2.7 % of the local cost, will be' ' ' ' labor contribution for on-farm scheme )covered by the beneficimies. lt represents the beneficinnes freeld leveling, digging of wells, pipe lying), wtlivalent to 25% of the lccal cost portion of ''''construction (1anl

.

scheme construction. n e prom sed financing plan is shown. in table 4.3 below.

Table 4.3Sources of Finance

(UA Million)Source Of Finknce F.E L.C TOTAL % Total

l Amount % of Totul Amnunt % 4.3'

1* Toll COST Cost

ADF 7.9 l 89.9 4.52 ('8. l 12.43 80.6TAF Grant 0.88 I 0. l 0.33 4.9 1.21 7.8Government l .62 24.3 1.62 10.5Beneficiaries - - 0. 18 2.7 0.18 1. 1

TOTAL l 8.79 100.00 6.4/ 1(,0.00 1!.44 1*0.00

4.7.2 Tables 4.4 and 4.5 below give the respective component cost and categories cost by sourcel .

of finance. Table 4.4 shows that the TAF grant (UA 1.21 million) will finance 92% of the total costI .(UA 1.31 thillion) of the Institutional Capacity Building. (compollent E). The GOM contribution1

(UA 0. 10 million) represents 8 % of the total colùponent cost.

Table 4.4Cost Estimates by Compollent and ,by Sourcq of Finance

(UA M illionlyCOMPONENTS l ADF *AF Grant GOM :eneficiario I'OTALA lrrigation Develohment 6. 14 - 0. 16 ' 0. 1 8 6.48B. Agricultural Techkology Transfer l .07 - 0.37 - 1 .44C. Direct Support tolFarmers 2. 12 - 0.04 - 2. 16D. M anagement Opekations 3. 10 - 0.95 - 4.05

l it Buildino l .71 0.10 - l .31E. Institutional 2Ca aç

TOTAL 1 12.43 1'.21 l .62 ' 0.18 15.44

Table 4.5Cost estimates by Category and by Source (?f Finance

CATEèORIES UA MiIIi(.)k1 % j.

vovxs y).yjl ADF TAF GvT Beneficiari.s Total rj1. Civil Works j 3.45 0.03 0. 18 3.66 23.7 12. Equipment & Mat 'erials 2.9 1 0.09 - - 3.00 19.4 t)kI !''3. TA, Consultant Selwices-and Studies 3.36 0.7 l 4.07 26.4 k'

4. Training l () .00 t) . 35 - - 0.35 2 . 3 l1j5. Farm Inputs and S 'ervices (Credit) l . 15 - 1.15 7.4 '

6. Adaptive Research t 1 7 - - - I .l7 7 .6 tL?'7. Govem ment Staff Salaries 0.00 - t . 19 - 1.19 7 .7 7.

1 O 38 0.03 0.43 :.84 5.5 pji8. Operation & M aint>nance .

' TOTAL 1 12.43 i .21 1.62 0.18 15.44 10t.0 ?.

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Jlleiscation of Hnancing of Local Cos'ts by the ADF

4.7.3 The financing of local costs by the ADF is consistent witl) the ADF policies and with theBank's Country Strategy Paper. Such financing is justified by the facts that: (i) Mozambique hassince 1987 been implementing broad and far-reaching economic I'eforms, which were designed tore-orient the econom y from centrally planned and managed type 1t) a market-oriented economy. Inthe area of fiscal management, the Government has redirected public resources from subsidies andttd fense and security'' expenditures to expendittlres on social serv ices, particularly basic h0 1th and :erimary education. To improve domestic resource mobilization, the Government has rationalized the ' dP

.

tax system through simplifying the tariff structtlre and the reductiol) of tax exemption and holidays. 1The Government has also contracted a private company to manage the customs depm ment for a .

limited period, and to improve the efficiency of tax administration', (ii) the ADF resources will beused predominantly to finance foreign exchange costs of the project, with local costs tinancingrepresenting about 31 % of the total project cost', (iii) the Borrower's contribution to the project'sfinancing is 10.5 % , which is higher than the lninilnum of l 0% required under the policy; (iv) ahigh portion of the requirements for the project can be procured ltlcally, thus making local costs arelatively high proportion (43. 10%) of the total costs. These reqtlirements include particularly thetraining and technology transfer practices that will benefit a signit'icant number of the poorest farm

households in the project areas; and (v) as discussed in sections 4. l 0 and 5.9 below, the project willhave a positive impact on poverty alleviation and stlstainable develtlpment in Mozambique.

4.8 Environmental Im pads

4.8. 1 According to the Bank Group Environmental Assessment Guidelines, the SSIP falls undercategory 11 thus having some Iimited adverse environmental ilmpact that can be routinely resolvedthrough the incorporation of adequate lnitigating measures in the (lesign, The project is essentially asm all-scale irrigation developmentv which is scattered over a vefy wide geographical area where someirrigation facilities already exist. lt is perceived that some environmental degradation can occur in thesoil. water bodies, health and hydrology of the new areas, Am environmental impact assessment

checklist is provided in Annex 6, and will be used as a monitoring aid during project implementation.

4.8.2 The project will have many physical and htlman positive im pacts in the area. The major onesinclude-. (i) higher family income, more diversified agrictlltural prtlduction and better nutrition; (ii)indirect benetkial effect of irrigation on the habitat of several 1iv ing species and microorganisms',(iii) more permanent settlement in the rtlral areas', and (iv) less lalld degradation caused by shiftingcultivation.

4.8.3 No very likely negative impacts have been identitied. There ill'e some possible negative impactson hydrology in reduced flow with the use of gravity schemes and ol1 a lowered water table in groundwater schemes. There is also a slight pollution risk from misuse of Ibrtilizers and pesticides, M sks ofsalinity are present in rhost alluvial soils, especially in the south. There may be slight risks of negativeimpact on water quality and on health in the swamp areas.

4.8.4 Preventive measures are included in the design and ilmplementation aspects. Among themitigating m easures to counter possible negative impacts are regtllar soil and water sampling andanalysis to monitor changes so that potential salinity/sodicity problems can be detected in time andm anaged adequately. Another mitigating measure will be the provisitlll of water in suë cient quantity toleach salts. Technical stafr and farmers will be trained in proper irrigation water management andirrigation scheduling including awareness to related environmental htlzards. The use of agro-chemicalsw ill be carefully controlled and monitored to reduce their negative impact on the environment.

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4.9 Im pact on W omen

l4.9. 1 n e project has been dejigned to have positive impact on women in several ways. With the1

' ti the representation of the women in the mixed sex groupformation of farmers groups or associa ons,lwill give them a stronger voice in the local administration of the schemes. Provision has been made

der the project! to address the training needs of women farlners.un

i4.9.2 'I'he SSIP will ease women's labor constraints, a factor thêlt affects the ability of women to

1 - T 'omote private sector initiative, thecultivate effectivelv. bv orovidinz credit for small tarm inbuts. o pl

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.credit will be available for both individual and group activities. lndivitlual women will have access to thel . e.z The own shed marketcredit funds to qurcha-se and market agrictlltural produce .from tlz pl oject ar .

structures erectezl in stmtegic lœ ations in the provinces will facilitate the work (jf the women. As womenare also engaged in the m st hm est activities, they will l). ave access to credit for the purcàase of flx)d

Iprocessing muioment (example rice dehuskers). The project will create greater employment in crop'''' lmarketing and processing, which in turn will enable the wolnen to eanl more money and improve their

lstnndard of living and also improve the social conditions of their comlllunities.

(4. 10 Impact on Poverty Alleviation

4. 10. 1 As explained in 2.9.2, the prom sed project activities will coltlp. lement the PROAGRI objectivesl ' ion of women, on susuinableto enhance .tbe productivity of the small farmers, incltlding a large p; k'port

Ibasis. By assistina farm families in srowina irrisated food and cash crops, the project will contribute toI '-''''' - --'''' '-''-''

,efficient use of oroductive resources, food sectlrity and enhanced inctllne in the project areas, leading to'* limproved stnndard of living.

l4. 10.2 At full development, the project will generate anntlal net incilme of Mt 8.6 million (USD 750)per household as compared with the without project sittlation estimatell at Mt 1 .4 million (USD 120).

5. PROJECT IMPL TATIONl5.1 Executing Agency

5. 1.1 The M inistrv of Azriculture and Fisheries (M AP) will be the Executing Agency. SSIP willI *''

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G '''

d

'r

be implemented under the supervision of DNHA, a public illstittltion under the M AP. Thel 4) will undertake the actualProvincial Directorate of Agriculttlre and Fisheries (DPAI

implementation ) of the various activities at the provincial leve) . Supporting activities, such asresearch, traini 'ng, and extension will be implemented in collaboration with the relevant institutionsof M AP namely INIA for research, CFA for training and DNER tllr exteasion.

5.2 örganization and Management.

5.2. 1 A Projeet Co-ordination Unit (PCU) will be established within the DNHA and will beheaded by a fulll-time Project Co-ordinator (loan condition). The PCU will plan, co-ordinate and

Iimplement, monitor and evaluate the project activities. It will also ensure sound management ofl

' 11 responsibility of ensuring thatfinancial arid procurement operations. The PCU will have the ovel althe project Annjual Work Plan and Budgets (AWPBS) at provincial levels are adequately prepared' ' tion and implemenution of theand implemented. The main dtlties of PCU are therefore: i) prepal a

(AWPBSI; ii) preparation of financial reports tor MAP and ADB: iii) mazaging the SSIP foreign1 - i training Provincial staff on ADB loan administration andand local currency accounts, v)

edures; andl v) undertaking cost recovery analysis and monitill-ing. A Financial Controller. anproc IFronomist, a Procurement specialist, and an Accotlntant/credit ttxpert will assist the Project Co-ordinator.

5.2.2 For effective decentralization, three Provincial Implenlenution Units (P1Us) will beestablished in the provinces (loan condition). Each PIU will be headed by a Provincial Manager(PM) assisted by an Accountant, an Agronomist, and a Hydrologist. The PM will report directly tothe PCU. The P1Us will be responsible for management and co-ortlination between PCU and DPAPat the provincial level. Fmch P1U will be responsible for the exectltion of a1l SSIP activities at theprovincial level. Basically, the main duties of PlUs are: i) Preparation of AWPBS; ii) administrativeand technical supervision of the im plementation of AW PBS includillg procurement and disbursementactivities; (iii) supervision of contracts to private sector firms and NGOs for scheme design, groupformation, and delivery of training', and iv) organization of regular process of consultation amongrelevant public and private sector instittltions, NGOs afid representatives of the beneficiaries. AnOrganization Chart of SSIP is provided in Annex 5.

5.2.3 A Project Steering Committee (PSC) will be established within three months of the signatureof the loan agreement (loan condition) and will be chaired by the MAP. The committe,e will consistof representatives from all relevant ministries and instittltions, namely: M inistry of Environment,DNHA, National lnstitute of Agriculttlral Research (lNlA), Agl'icultural Development TrainingCenter (CFA), National Directorate of Agriculttlre (DINA), Nkttional Directorate of Extension(DNER) and National Directorate of Agrictlltural Econolnics. Tlle NGOS and representatives ofFarmer Associations may be invited to attend PSC sessions on the discretion of the PSC. The PSCwill be responsible for the approval of AW PBS. It will consider ktnd approve AW PBS and ensurethat they are implemented on schedule. The level of representation of PSC will be at least ofdirector status. The PSC will meet once every six months to review the performance of all agenciesinvolved, identify the constraints and take the appropriate action . The PCU will be the secretariatfor the PSC.

5.3 Donor Co-ordination

5.3. 1 Donor co-ordination in M ozambique has improved markttdly in recent years. The donorcom munity represented in M aputo has established a monthly meeting at the ambassadorial level.There are also technical and sector working grotlps meetings, which meet on ad hoc basis. Donorco-ordination and dialogue with the Government of Mozambique has resulted in the generation ofinvestment programs for the roads, health, education, and agriculture (PROAGRI) sectors.Currently the donor community is also working with the Goverllment to finalize a public sectorinvestment program to cover water supply and sanitation sectors. 'I-hese sector investment programshave led to the rationalization of the development assistance and has improved the Government'scapacity to manage its public sector expenditure.

and multilateral5.3.2 The ADB in recent years has intensified its co-ordinatitlll with bilateraldevelopment partners. It has pnrticipated in meetings to review some t)f the seztor investment programs.such as in health, roads, and agriculture (PROAGRI). This has enabled the Bank in identifying suitableprograms, which are co-financed with other development partners in tlle areas of hemlth, education, roadsand agriculture. ln August 1998, the ADB also participated in a Donilr Co-ordination M eeting to reviewa report on ''Donor Co-ordination in M ozambiqtle'', which dealt with M ozambique's developmentchallenges and donor assistnnce stmtegies. At this point in tilne, the findings and recommendations of themeeting are yet to be discussed with the Govem ment.

5.3.3 PROAGRI implementation will stal't in 1999. The Government and the donors have agreezl in

May 1998 on the components of the National Agrictllttlral Developlllent Project (PROAGRI), its costsand guiding principles. The aslv ts of common procedtlres, incl tlding financial management andprocurement, are still under prepnmtion by M AP with assistance froll) donors. The SSIP as designed is

, . ;

2t) !

istent with the fmmework and objectives of the PROAGRI. This wa5 discussed with vnn'ous jt.cons1 the FAO, the Wotld Bank, the UNDP, the * 1representatives of the donor communitv in Mabuto, nalté v1 '-' * ' '-' . h

EU, the USAID, the Irish Aid, DAM DA and SIDA, whè had no ohiection to SSIP being implemented Jas designed . ', *

.!

k15.4 Procurement of Gootls, W orks and Services

I5.4. 1 Procurem ent nrrnnaement.s are stlmlnari zed in Table 5. 1 below . A11 procurement of goods,

I '--'-''

'

,works, and acquisition of consulting services t'inanced. by the Bank will be in accordance with the# 1 .Bank s Rules of Procedure for Procurement (?f G//?J: and Wt?/'/c

.î or, as appropriate, Rules of iProcedurefor the Use of Consultants, using the relevant Bank Standard Bidding Documents . i

.. ..1i

. J

5.4.2 Civil W orlts: Procurement of civil works valued at less than UA 200,,0* m r contract will be 2,'iI . t.<

can'ied out under Naéonal Comx titive Biddine (NCB) orœ edures. The lœ ation and size of the j!I * '''-''' '''

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''' ' - .'i:

'

consr ction works to be undertaken in the three provinces are so scattered in remote areas that they areI j .unlikely to attmet bids from outside Mozalnbique. In ad ition. thère Ctre severai international contmctorslloemlly established who would be able to colnpete

. Eiglkezn stlch colltracts (prbcured in different years)will be awardedj for the inseld development of irrigatiop schemes antl land lekeling, with total value ofUA 3.26 millio 'n. Thrœ such contract will also be awarded for constrtlction of market sheds, construction

and rehabilitauon of roads and small bddges, valued in toul at UA 0.22 million'

Table 5.1Proctlremenf Arrttn. elùent.s

PROJECT ITEM : Il1 UA Millivn.

' '-'

IcB #c,B ( Others short List TOTALl.civil Works j ;1. 1 Infield Scheme' Development/Land Leveling 3.44(3.26) 3.44(3.26)l1.2 Market Sheds-Roads & Bridges 0.22(0.22) 0.22(0.22)

2. cxoods t2. 1 Pumps Equipment l .92( l .92) l .924 l .92)l2.2 Small Farm Equip.-pipes & Transformers 0.63(0.63) 0.63(0.63)2.3 Office équipmlnt and Fumiture 0. 10(0. 1O) 0. 10(0. 10)

$2.4 Field Survey & Meteo Equipment 0.02(0.02) 0.02(0.02)I2.5 Vehicles & M otorcycles 0.33(0.33) 0.3340.33)l3. Corksulting, Training and Ruearch Services

I 9) j3. 1 Teclmical Assistance 0.3940.39) 0.39(0.3 ?i ices (including Audit) 3.40(3.40) 3.40(3.40) 13.2 Consulting Serv j

3.3 Studies 0.28(0.28) 0.2 8(0.28).wi

3.4 Local Traininj 0. 1 2(0.-12) 0. 12(0. l2) 'i3.5 Intemational Tjraining 0.23(0.23) 0.2340.23) $. j?3.6 Adaptive Research/Extension/Field plots l . l 7(1 . l 7) l . I 7( l . 17) -!

4. Miscellaneous j , 7 ')f'4. 1 Farm Inputs 'and Services Credit 1 . 15( 1 . l5) 1 . l5( 1 . 15) ' il4.2 Government Staff Salaries 1 . 19(0.00) l . l 940.00)4 ï)4.3 Operatiqn & M aintenance 0.84(0,41) 0.8440.40.) j. e l

. . . .. . N ; ' .

. . .

% bjjTOTAL I 2.2

,!(, 2.25.),j .. . 4, .4. 0(4.;7)ij 4149(2.87) $30(4.30) 1!.44.. (13.64) .ti.2 ' . 7 1The figpres b>tweell brackets represent lhe SSIP'S A DF l()an 4)t' UA 1 2 .43 lnillilln :4 I l(l the TAF' grant ot UA 1 .21 ln i lli()n

5.4.3 Goods: Contmcts for goods valtled at more than UA 80.()00 each will be awarded under ..1lntemational Competitive Bidding (1CB) procedures

. Threz stlch çontlucts will be awarded for irrigation .y. l , , (, jp

umps (procured in different years), valued in toul at UA l .92 mi llion, and two other contracts for ' yvehicles and motorcycles, for a total of UA 0.33 million. Contracts tklr goods valued below UA 80.4K !and above UA 40.4K each will be awarded tlrider Nàtional Comlnetitive Bidding @ CB). Ten such

. tzj' .t.

#. W.L ' i u--a -- t... .,cl .-: . 'z,r%u .:fu-. . . Lan :xa:.kaa . . . . .

contracts will be awarded. n ex consist of eight contracts for small l'itrm m uipment, amounting in totalUA 0.63 million, and two contracts for office eqtlipment and funliture, valued in toul at UA 0. 10million. Field testing and meteorological equipment, estimated to cost less than UA 30,(* per contractand not more than UA 1œ ,(X)0 in aggregate, will be procured through National Shopping.

5.4.4 Corsulting, Tm ining and Research Service-s: Proctlrement ()1* consulting services, as detailed inTable 5. 1 above, will be undertaken in accordrce with the Bank's Rtlles qf Procuremensfor //lt! Use :?/'Consultants. Procurement will be through competition on the basis o1' a short list following the selectionprocedure of combining technical quality with price. Constllting services involve the use of specializedagencie,s or Non Govemmental Organizations (NGOs) that have experience in Mozambique. Theirprocurement will be through competition on the basis of a Short List. Audit services and studies will alsobe procured through Short Listing. The training component is basically for the tœ hnicians and frontline

field staff who would be tmine at the Agriculttlral Development Training Center (CFA). n ere are asmall number of overseas courses costing UA 230,4K0. The selection of the trnining instituéon will bebased on shortlist of institutions offering the required courses and acceptnnce of the candidates by theinstituéons. The National Agricultural Research Institute (IN1A) wi 11 carry out the adaptive researchcomponent.

5.4.5 National Procedura and Regulations: M ozalnbique's national procurement laws andregulations have been reviewed and found to be acceptable.

5.4.6 Executing Agency: DNHA will be resm nsible for the prœ tlrement of goods, works, consultingand tmining services. n e resources, capacity and exm rience of this insétution are inadm uate to carryout the prœ urement. Provision of an allocation of UA 0. 18 million has been included in the procurementan-angements to engage a prœ urem ent officer. Selection and apm intnlent of the procurement officer willbe undertaken in accordance of the Bank's Rtlles of Procedures for the Use of Consultnnts.

5.4.7 Geneml Procurement Notice: The text of General Procurement Notice (GPN) will be discussedand agreed upon with the Govem ment of M ozambiqtle dtlring negotiations. It will be issued forpublication in Development Business, um n approval of the Loan Proptlsal by the Board of Directors.

5.4.8 Review Proceduru: The following dœuments are stlbject to review and approvat by the Bankbefore promulgation:

Specific Prœ urement Notices',Tender Dœ uments/Rm uest for Proposals;Tender Evaluation/Evaluation of Proposals Reports. including recommendations forcon% ct awards;Draft Conmacts if the-se have been amended from the drafts induded in the tenderInvitation documents.

5.5 lmplementation Plan and Expenditure Schedule

5.5. 1 n e project is designed to be implemented over a six-year perit'd beginning in Aplil 1999, and tobe completed by March 2*5. It is planned that the tirst year of the projed (PY1) will be devoted tostudies, organizational &slxcts, maining of key staff, farmer sensilization and tmining, survey andidentification of most suitable irrigation areas and the formation of three farmer association (one in eachof the thrœ provinces). It has been agreed that an Implementation Manual (IM) detailing the workprojœt and planned activities will be prepared by DNHA in the tirst tlum er of 1999. This will facilitatelaunching of the project in a reasonable time withotlt tlnnecessary delays.

5.5.2 n e tentative target dates are summarized below. A tentative Ilroject implementation schedule ispresented in Annex 4.

* #r r

22

Im olem entation Taœ et Dates

Item Activity Date

Board Approval November 1998l2

. General Prœ urement Notice December 1998I3

. Loan Signature January 1999l4

. 1..oal Effectiveness April 1999I

5. Mid-term Review M >y 2002!6

. ProjKt Completion March 2œ5$Pro-jœt Launching Activitio

' i f lmplemenution M antlal Jan.-M arcb 1999Preparat on oTender inviition t'tx seledion ot PCU gtaft / bikl evaiuatitm Febnmry - M ay 1999

IMaragœnent / Capacity Building9. PCU suffassume work Jtme 199910. Cre it study, Tender for short-tenn TA, and selection ot PIUs Staft July 199911. Tmlnlng of tield staft Augkkst 1999l2. Tendl er for supply of vehicles, bftice eqtlipment. June 1999

lDir:t Support to Fanners13. Contract conmlltants / NGOs tbr sensitizatilln campaigns & (.iroup Autpst 1999

lFonmationj ' .

14. Fo 'rpation and Registration ot Farmer Asstxiatitlns comlllence JanuaryztKAgricultural TK hnology Transfer

15. Starj ta, daptive research with INIA May 199916. Tralnj Tng farmers and feld staff commence July 1999

Irrigation Development17. Idendify potential irrigation areas May 1999

!l8. MobiliMtion of contractors for civil works June 1999

19. Startltraining farmers in scheme management July 199920. Sche'mas Development conunence September 1999

1 '-' .21.

Prqied Completion March 2X5l5.5.3 Annual W ork Plans and Budgets: The PIUs will be resm nsil7le for preparing the Annual W ork

1Plans and Budgez (AW PB) for each province, in accordance with tlle implemenution plr . The PIUs

! ''

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.'' '* '* '* .

will detail the activities planned, the btldgetary and human resources required, pedbrmance indicators,1

and the procurement project, including the contract package, and est i Inated costs. n e AWPBS will be1consolidated and coordinated by PCU.

Expenditure Schedule

l5.5.4 The expenditure schedules given in tables 5.2, and 5.3 hereunder have been drawn up in

laccordance with the implementation schedule and the prqiect cosl by component and by source of!finance over the project duration.

Table 5.2Expenditure Schedtfle by. Comnonent

(U A million)COM/ONENTS PY1 PY2 PY3 PY4 PY5 PY6 TOTAL

IA . lrrigation Development 0. l 7 0.45 l .07 l .64 l .69 1 .46 6.48B. Agricultural Technology Transter 0. l 4 0. 13 0.33 0.29 0.29 0.25 1 .44

lC. Direct Support to Farmers 0.06 0.09 0.38 0.54 0.55 0.54 2. 16

1D. Managemeni Operations 0.65 0.50 l .04 0.62 0.60 0.63 4.05l

E. lnstitutional Ca aqit Buildino 0.74 0.22 0. l 5 0.08 0.07 0.05 l .31TOTAL l 1 .77 l .40 2.97 3. 17 3.20 2.93 15.44

;: ' . ' .. .. ' .<. .. . 5. . - o . .

Table 5.3Ex enditure Schedule b Source of Finance UA Inillion

COMPONENTS PY 1 PY 2 PY 3 PY 4 PY 5 PY6 TOTALADF 0.86 0.99 2.43 2.78 2.82 2.56 12.43TAF GRANT 0.7 l 0.20 0. l 3 0.07 0.06 0.04 l .21GOVERNM ENT 0.20 0.21 0.38 0.27 0.27 0.28 1 .62BENEFICIARIES 0.00 O.O l 0.03 0.05 0.05 0.05 0. l 8TOTAL 1.77 l .40 2.97 3.17 3.20 2.93 15.44

5.5.5 The expenditure schedule of components financed by ADF (component A to D) and by theTAF Grant (component E) are presented in the following table:

Table 5.4Ex enditure Schedule of Com onents tinanced bv ADF and TAF UA million

COMPONENTS PY 1 PY 2 PY 3 PY 4 PY5 PY6 TOTALA. lrrigation Development 0. 1 5 0.44 1 .00 l .56 l .6 l 1 .38 6. 14B. Agricultural Teclmology Transfer 0.09 0.08 0.23 0.23 0.23 0. 19 l .07C. Direct Support to Farmers 0.06 0.09 0.37 0.53 0.54 0.53 2. 12D. M anagement Operations 0.55 0.38 0.82 0.46 0.44 0.45 3. 10E. Institutional Ca acit Buildine 0.7 1 0.20 0. 13 0.07 0.06 0.04 1 .2 1TOTAL 1.56 1.19 2.56 2.85 2.88 2.60 13.64

5.6 M onitoring and Evaluation

5.6. 1 The monitoring and evaluation of the Project's activities wi 11 be regularly carried out by thePCU (at the central level). Guidelines will be prepared by the 'l-echnical Assistance (TA) at thebeginning of the project to help PCU lnonitor and evaltlate SSIP performance. based on the mostrelevant technical and economic indicators. The PIUS will be rttsponsible for collecting a11 datarelating to: (i) yields and production by type of crops', (ii) actual financial prices observed on thelocal markets; (iii) farmers' adherence to the project, with the view' of assessing the performance ofeach type of irrigated farms.

5.6.2 The PCU will also be in charge of (i) co-ordinating the infl'rmation received from the PMU;(ii) designing and implementing a management information system of a11 project activities.Quarterly progress reports will then be prepared and subnlitted to l I)e Bank in accordance with BankGroup procedures.

5.6.3 The Bank will undertake a mid-term review during the third year of implementation with aview of assessing the project progress and identifying the major constraints to be addressed. Themid-term review will make recommendations on the action to be taken for the continuation of theproject. An environmental monitoring plan will be implelnented w'ithin the existing framework andlegislation for environmental and health protection.

Accounting, Reporting , and Allditing

5.7. 1 The PCU will maintain an accounting and control system , which are internationallyacceptable for recording and reporting al1 tinancial transactions. The GOM will open a specialforeign exchange account into which the proceeds of the loan antl grant will be deposited, and aspecial local currency account (loan condition). The GOM will enstlre that SSIP funds are not mixedwith any other Government funds. The t'inancial controller at PCU will be responsible for the designand instqllation of a computerized accotlnting and lnanagelnent inftdrlnation system (AMIS) and willtrain a1l the accountants of the PIUs. He/she will enstlre that: (i ) the accounts are maintained bycategory of expenditure, by component and by sotlrce of funding (both in Meticais and UA); and(ii) a system of internal control is ptlt in place to enstlre prompt recording of transactions, timelyproduction of accounts and reports, as well as safegtlard the project assets.

t

5.7.2 There will be a set of financial and lnanagelnent informatioll records maintained in each P1U1from which monthlv accounts and management information woultl be prepared

. Thes: records willl -' ,be integrated at the PCU s level

. A qtlarterly consolidated finallcial statement and managementill be plrepared for inclusion in the Qtlarterly Progress Report (QPR). The QPRS will bereport w I

submitted regularly to the ADB, three weeks after the end of each tltlarter.

5.7.3 The financial statements of the project will be audited anntlally by an independent audit tirm1 Fund. Provisions have been made tbr this ptlrm se. Not later than six (6) months of endacceptable to thei

of each financial year, the PCU will submit to the B& k the Audit Report for the preceding financialIn addition! to the annual tinancial statements. the auditors will also confirm that procurement rulesyear.

1 .and prtxedures hj ave been followed, and that cotlntepart funds have been advanced in accordance to theagreM work prdgram.

l5.8 Recurrent Costs

5.8. 1 The recyrrent cost expenditures dtlring project implementittion period are estimated at UA2.03 million. This amount has been incoporated i17 the project cosl . During the post implementationiod, thére wtll be two major sources of recurrent cost expendil tkres. These are expenses relatingper

to: i) irrigation,l extension, training and .research activitires of the respective Government institutions'sand ii) operatibn and maintenance of irrigation infrastrtlcture. Expenses relating to irrigation,'

ing and research activities, which are common gkhods, are estimated at Mt 4,242extension, traiqmillion (UA 27j0 thousand) annually. This amount will be met by the Government and is alreadybudgeted for. Operating and maintenance costs relating to irrigation infrastructure will be thelresponsibility of the project beneficiaries, which will be trained and organized, by the project, in a

to tnke lfull responsibility and ownership of their irrigation schemes.manner

5.9 Project Cost Recovery and Sustainability

5.9. 1 Under the proposed project, the beneficiaries will fully Ilay for a11 irrigation equipment!(pumps), farm inputs and services throtlgh the line of credit during the t'irst few years of the SSIPimplementationj, and th.rough their own cash flow thereafter. The l'inancial analysis from the incomestatementj of $e vanous farms of the project (in section 6.3) demonstrates that the projectbeneficiaries will be in a position to service the credit facility and replace the iM gation equipment.

l5.9.2 Sustminability of project activities in the post implementation period, which commences in1

d by the DNHA and provinçial staffs who have been trained to design,PY7, will be jensure

implement and jmonitor similar projects. The GOM will contintle 11 , manaje indirectly the project inthree cost cent lres: (i) extension and research activities', (ii) maintellance of equipment, vehicles andinfrastructure; (tiii) operating expenses at the provincial level. '1

.

''

.

llere will not be any significantincrease in staff salaries during this post implementation period. l Ilis can be accommodated by the

Igovernment budget without any strains on. the ctlrrent aècotlnt.

l5.9.3 Long-term sustainability will be enstlred by the beneficiêtries themselves who have beenined and asslisted to form farmer groups. This will enable thell) to manage and run their farmstra

effectively. Asla group, they will be able to provid-e themselves wijh the nècessary farm inputs andcarry out repai 'r and maintenance services. M arket tacilities, line ol credit, and guarantee funds willenable the farlmers to extend their tarln activities, and provide themselves with social andeducational inf 'rastructure

. ..- . . . . . ..., . ... . --=,z.-x....,....',.= ,.:u .= . . . . . . . xu-,x.... u. .., . . ... z. . .

!.6. TECHM CAL AND ECONOM IC JUSTIFICATION

6.1 Technical Justiscation

6. 1 . 1 The type of irrigation system selected in project design is already in use in the country andthe proposed irrigation m odels are based on it with slight motlifications, as are necessary, toimprove on efficiency. The proposed technology is simple and wi1 I be understood and implementedby the farmers without difficulty. The associated civil works is botl) simple and minimal. Similarly,spare parts and maintenance services for water lifting devices and other equipment are locallyavailable. The system is consistent with SSIP strategy of building ()11 local experience. The option ofsprinkler inigation use was discarded because of its high investmellt and running cost aggravated bythe farmers' lack of familiarity with this system .

6. 1.2 The potential of increased agricultural productivity under irrigated conditions is enormous.More efficient use of water, improved husbandry practices and application of limited quantities ofinputs such as fertilizer, pesticides and selected seeds will lead to large increases in yields in a costeffective manner and will greatly enhance the productivity of labol'. The technology packages to beadvocated will be developed in close collaboration with farmers. This will broaden their outlooksand enable them on the one hand to disselninate appropriate techllology and on the other to makebest use of it. Adaptive research carried out in a triangle of farlller-extension-research will allowfurther improvements in productivity to be achieved over time.

6. 1.3 The range of crops that will be grown by benetsciaries is based on local soil conditions,adaptability to climate and response to stlpplemental and full irrigation. The beneficiaries alreadygrow most of these crops. Under SSIP, transfer of appropriate technology, cropping intensity andinigation will combine to give greatly increased otltput. The mix of cereals and leguminous crops(beans and groundntlts) in many of the schelnes will help to maintail) fertility and soil structure.

6.2 Project Benests

6.2. 1 The project will significantly contribute to poverty alleviatit,ll by improving the focxl securitysituation and the stnndard of living of the nlral poor. Project lleneticiaries will be about 4,(X4smallholder farm families (households). With an average family sizt' of 5 pYple, the toul number ofbenetkiaries is estimated at 20,000.

6.2.2 As a result of cropping intensification and diversification, qualltitiable benefits tmn be expected incrop yield improvements. lt is estimated that, at ftlll development. there will be incremental annualpre uction of 736 tons of maize, 770 tons of beans. 8,807 tons of cabbage, 2,057 tons of onion, 73 tonsof groundnue, 7,370 tons of rice and 12,000 tons of sugar cane. Tlle total incremental value at 1998constnnt pdces will reach M t 48.8 billion at full development. The average anntlal net income per farmhousehold will rise from M t 1.4 million in PY0 to Mt 8.6 million in PY6.

6.2.3 The project, through the organization of farlners into groups and the training given to them inmaintaining and operating the irrigation infrastructtlre, wotlld instill il1 them the fœ ling of ownership. Inaddition, this would gradually shift the responsibility and cost of opentting and maintaining the irrigationfacilitie,s from the state to the fanners. There will be benetits in improved heath and better nutrition of them pulation. Private entrepreneurs and non-governlnental orgr izations are likely to establish themselvesin greater number in the community, leading to the development (,t' micro-medium sized businesses.n ese activities will result in an increase of income thtls contributing significantly to employment andm verty alleviation in the rural areas.

k

2 r 6 T . 'WM W ! 7 U 7*

26

6.2.4 Environm! ental benefit.s will be remlized from the implementation of soil and water surveys,awareness càmp 'aigns, tmining of farmers and tield agents, and appndpriate cropping patterns to reduce

l f fertility.soil erosion and loss o

6.3 Fmancial Justification1 -

6.3.1 The proj'ect Internal Financial Rate of Rettlrn (IFRR) is estimated at 14.22 % * (Annex 8).The sensitivity analysis shows that this rate of return is less sensitive to benefit streams than to

1changes in costs:l(i) Wh

en the revenues decrease by 10% due to the drop of market prices or as a consequence ofl

severe drouzht in the some oroerammed area, the rate drops to 10.46% , showing a high1 ''' . d - '-' 'sensitivity to revenues, an

l(ii) When the cost of production increase bv 10% dtle to increase in farm inputs following

I '* -'- -scarcity of imported goods and devalgation ot the M t by 5 lAercent, the FIRR drops to 10% .

6.3.2 The projected cash flows prepared from crop prodtlction ft'r each type of farm model showl es will grow from M t 327 Inillièn in PY 1 t() M t 68,341 million in PY7 andthat the total revenu

fterl Average net income per participating hotlsehold will increase from Mt 1.4 millionsteady therea î

in PY0 to M t 8.6 million in PY6. The following table sùmmarizes the net cash tlow for each of the1 ' fl t a combination of cropjingfarm models, as wj el1 as their respective FIRR. The rates of return l e ec

patterns and irrigation scheme models.

Table 6. 1Sum m of Financial Anal sis of Farm, M odels In M etiemis million

REVVNUESl oof AT FUL.L NET M ARGIN FIRRFARM M ODELS N

l farms bEVELOPMENTD1 - Maputo, Diesll pump, 5 ha 84 4.897.20 2,260.90 76.43%

1 farm 300 3,000.00 848.74 14.29 %E1- M aputo, electric pump, sugar cane1 97 7 529.05 1,41 l .58 87.02%T1 - M aputo Treadle pump, 0.75 ha l ,

l l 4 ha 25 I ,862.84 I 98.79 14. 19 %W1- Maputo Wind ump, .q

D3- Zambezia, Diesel pump, 5 ha l 80 28.260.00 15,8 1 l .73 94.54 %D3- Sofala, Diesel pllmp, 5 ha 85 I 7,000.00 l 3.973.43 520.22 %G 1 - Sofalg Gravity lirrigation schemes 20O 4.607.50 l ,900.08 39.62 %W2- Sofala W ind u'm , 0.7 ba 70 1 , l 84.48 567.83 35.69%

6.4 Fronomic Justl cation

6.4. 1 The SSIP will contribute significantly in easing the poverty burden $n the project areas. ltwill provide an opportunity for the participating families to improve the level of sufficiency in foodsproduction. In pbrticular it is expected to lead to net improvemenl in the merchandise .trade deficit

by reducing ricet and vegetable imports to a greater extent than the increment in fertilizers andequipment imports.

1 - ' the project is estimated at 1 8 % (annex 9)6.4.2 The Economic lnternal Rate ot Rettlrn (EIRR) Qti

fin a 20 year project li e.!6.4.3 W ith respect to sensitivity analysis, there are only two Illajor probabilities, which mightaffect the ptoject performance.

li) Possible drought reducing the returns from the Ilroduction activities. Sensitivity

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27

analysis shows that with even a decline of 20% of estimated production, the projectrem ains viable with an EIRR of l3% .

ii) An increase in total costs as a consequence of external factors may adversely affectthe project performance. A sensitivity analysis shows that even with a cost overrunby 20% , the project remains viable with an EIRR ot' 12 % .

6.4.4 As indicated in para. 6.4.3, the project is Inoderately sensitive to some adverse occurrencesthat may affect its viability.6.4.4 The principal assumptions employed in the economic analysis are:

7.

i) Benefits: Only incremental benefits that are quantifiable are included in the analysis.Other benefits can be derived from instittltional capacity btlilding but are not included in theanalysis. The reason is that these benefits are not qtlantisable;ii) Prices: import parity price adjtlsted to farm gate prices for maize, and rice. Sugarcane has been priced at export parity price. Other crops are priced at farm gate prices',iii) lmbor: hired labor has been priced at the ctlrrent wage rate;iv) All project costs have been included in the Econolnit. Analysis', andv) Proiect life: the economic life of the project has been assumed to be 20 years.Replacement costs of a11 inigation models schemes are iacluded over the life span of the

project. Actual operating and maintenance cost over the prqiect life has also been included.

CONCLUSIONS AND RECOM M ENDATIONS

Conclttsions

7. 1. 1 The proposed Small-sfole Irrigation Project (SSIP) has a higl) priority in the rœonstruction anddevelopment objectives of the Govemment of Mozambiqtle. The SSl 1' will make major contributions tothe alleviation of poverty and to household food sectlrity of some 4.()* of the poorest families in thecountry. lt will increase annual household income to Mt 8.6 millitln (USD 730) through the use ofimproved technology and better cropping intensity for high value crops under irrigation. At maturity inPY6 the SSIP will genemte an incremental annual production of 32,(X)() tons of various crops.

7. 1.2 n e m verty alleviation and household food sectlrity strategies (1f the SSIP are conceived within afmmework of full beneficialies' participation, from the early identification of sites to completion of theschemes and to full ownership by the beneficiaries. By organizillg the farmers into groups andassœ iations, SSIP will remove many of the constraints faced by the farmers and help improvesmallholder productivity, income and welfare.

7. 1.3 n e SSIP is also formulated within the fm mework of the F-cllnomic Reform Proglum , which isbeing actively pursued by the GOM with stlpport from the multilateral institutions. It will make a posiévecontribution to the economic growth of M ozambiqtle. ln partictllar it is expeded to lead to animprovement in the merchandise trade deficit by reducing rice and vegetable imm rt to a greater extentth% the increment in fertilizer and m tlipment import. It has the Ilotential to yield additional sugarexpolls. A1l these benetits will be achievetl with positive environmenntl impact.

7. 1.4 The proposed project is also in line with the institutional rm uirement rd implemenutions% tegies of the National Agricultural Development Projxt (PROAI.; ltI), currently being formulate bythe GOM and the donor community. Finally, the prqiect is in line with ADF V11 development strategy.It is concluded that the SSIP is technically feasible, econolnically klnd financially viable and sociallydesipble

k

mt =M *U

28

7.2 Recomm endatiors

I7.2.1 It is therefore recommended that an ADF 1oan not excettding UA 12.43 million and anADF/TAF grant of UA 1 .21 m illion be aranted to the Renublic ot M ozambique for the purpose of

I -'''''' e

'

.

implementing the project as described in this appraisal report, stlbject 1(1 the following conditions:- jA) Conditi 'ons Preedent to Entry into Force

lThe entry into force of the 1.0a11 Agrezment shall be stlbject to the fulfillment by the Borrower of

the provisions o? Section 5.01 of the General Conditions Applicable to Loans and Gunmntœ Agreementsof the Fund.

B) Conditions Precedent to FIIS't Disbu>ement

1The obligations of the Fund to make the first disbtlrsement shall be conditional upon the entryinto force of th8 Iwor Agreement as set otlt in A above and the l'tklti llment by the Borrower of thefollowing conditk ons.

l ..The Borrower shall have to the satisfaction ot the Fund:Ii)

opened and thereafter undertaken to maintain, on terlpls and coùditions accepuble to theFùnd, in a repuuble bank acceptable to the Ftlnd, a special foreign exchange account into

which the proceeds of the 1.0a11 shall be demsited (para. 5.7. 1),I .

ii) omned and thereafter undertaken to mainuin, on ternls and conditions acceptable to theFtmd, in a reputable commercial bank acceptable to the Fund and that has a branch in eachl

of the provinces in which the Project shall be implelnented, a slxcial lofml currencylcount into which the Project ftlnds sllall be demsited (pnrn. 5.7. l );acI

iii) provided evidence of the establishment of a Project Ctp-ordination Unit (PCU) within theNational Diredorate of Agricultural W ater Resources (DNHA) to overe the overalllilpplementation of the Project, and of three Provincial lmplementation Units (PIUs) inMaputo, Sofala and Zmmbezia provinces to implement the Project (pnrzu. 5.2. 1 and562.2)., andl

-iv) provided evidence that the National Directorate of Water (DNA) has made rmuisitelanangement to provide adequate water deliveries, in terms of quantity and timing for a11Iseasonal crop water requirements, to the targeted farlllers downstream of the Corumanaldam (para

. 4.5.2).lUndertakings

1 . -n e Borrower hereby underukes tor the benetit of the Ftlnd tllat any allocation of land, includinglland under customary tenure

, for the implementation of the Projecl shall be carried out fairly and inaccordance with the laws of M ozambique.

D) Other Conditiorts. The Borrower shall:

1i) mj ake admuate annual btldgetary allocations to meet its contribution to the Projed cost',and

ii) rstablish within three months ot the entl'y into force of the 1..03.:1 Agreement a ProjectSteering Committee (PSC) to consider gnd approve l he annual work plan and budgetsI(A> Bs) of the Project and ensure that they are implelllented on schedule (para. 5.2.3).

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MOZAMBIQUESmall-scale lrriaation Proiect

Location of Proiect Provinces

'Mq;r 7 *PK rJ YUR-F;RWPGXMF-- Y

di . : '.(1. .*

k;' : ';. . 1. .pa

lk-. .jrANNEX 2 tè. ,

'jMOZAMBIQUE 1

. -- v .pSMALL SCALE IRRIGATION PROJEI

CLIMATIC DATA FOR REPRESENTATIVE PROJECT AREA SITESi1

a) Umbeluzi Asricola (Boane. Maouto Prtlvince; 320 23' E Llnslitude. 25* 58* S Ltttitude; 12m altitude ':1:#

M onth 5 lParameter Jan yeb M ar Apr M ay

.lun JuI Aug sep oct Nov Dec , '.' '

. V:

Rainfall (mm) 1 27 l I 9 69 60 l 7 18 1 8 14 34 55 7 1 79 clt .

.

.h'Memn temperature 26.6 26.5 25.6 23.6 20.5 18 17.8 19.8 21.7 23.6 24.6 26.2 ' . .'

i ''i i'id ''%''''Relative humidity 67 69 70 70 69 72 69 64 64 64 64 67

l z .Potential eva 'potransiration tntml l 66 l 39 122 l 00 8 1 60 69 98 123 139 15l 16j 5 ' ïa. ' '

Fai 681 rnm 'Yearly Total n: j

' j

i' I2' E lohtpitude. 19'' l6' S Latitude; 57m. Altitude .1b) Nhamatanda (Nhamatanda. Sofala Province; 34 .

1 J= .#

t s,j (,nth i jyParameter Jan yeb M al. Apr M ay Jun JuI Aug sep oct Nov Dec )

. , 1''I'

I 6 15 9 1'7 7 35 89 847 1Rainfall (mm) j 175 I 7 l 109 44Mdun temperat

jure 27.8 27.4 26.6 25.4 22.9 2 l .() 20.6 22.2 24.2 26.5 27.0 26.9 ' m .1rR

elative humidity ( %) 72 76 72 73 67 69 72 70 66 63 66 7 l *1l .! ' '' lljjPotential :vapjltransiration (mm) 167 142 l45 l20 l 0 l 83 84 1 15 146 183 174 l58 . .

c. ' . -

N' p!jY

early total ratn: 847 rnm ' ,'# 1ck!; L-

'' ' ' t' ' itude; 51m Altitude ' 2c) Mopeia (Mopeia, Zambezia Province; 34 52 E Lllngitude, 17 59 S Iaaatj 1- .

't) - - -. ..- . .. ..51 Onth

- . ..--.j : '.'

,1

Parameter pan yeb M jtr Apr May J.uI) Jul Aug Sep Oct Nov Dec jl .:1.I . -

-

34 18 8 22 79 166 1Rainfall (mm) j 207 I 83 18O 67 38 41 jM ean temperafure.tc) 25 27.9 27 .0 2.5.9 23.6 22.() 21.4 22.9 25. 1 27.3 2:.2 2S. 1 'lz

1 'h '' .Relative humidity ( %) 77 78 79 77 75 8() 80 7'5 69 68 73 76IPotentiai çvapqtranspiration (mm) 16 1 I 39 l 38 l 14 92 74 8 l 1 l 0 144 l 87 l 80 l66 ,.-. ... . . :

.

t,-. ..

.yy.(jj1,Yearly total raln: 1043 mm ,

.

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Mozambique - Small Scale Irrigation Project. 'r', '?:k)(,List of identified small-scale irrieation areas and Phased Development.

MAPW O PROY CE.Site / Scheme Model Location Size Water Source Parent Type of Irrigation (*)

District (ha) Pro-ectChinanbane / D 1-5ha. M agude 200 Uanetze River SW -Diesel pump- furrowsChicumbijane/ D1-5ha. Moamba 120 lncolnati River SW-Diesel pump- furrows25 Setembro. / Dl-sha. Boane 100 Umbeluzi River SW -Diesel pump- tkrrowsM aguiguane / E1-100ha. M agude. 300 lncomati River SW -Electric pump- furrows . J. jMarracuene / W1-1 .4ha. M arracuene 35 Ground water Ltlwer GW -W ind pump - watering '

(Machongo-area) lncomati. hose ..' =.1M anhica / T1-0

.75ha. M anhica. 148 Ground water Ltlwer GW --rreadle pump- watering ' J(Machons'o area) Inttomati. hose

TOTAL. 9o3 r-SOFALA PROVG CE

Site / Scheme Model Location Size W ater Source Parent Type of Irrigation (*)District (ha) Pro'ect

M ufu-Masseque/D3- Nhamatanda 300 Mtlda River. Lllwer L4 lwer Pungoe SW - Diesel pump- furrows5ha. - PungoeChibabava / D3-5ha Chibabava 125 Btlzi River - SW - Diesel pump -furrowsM andruze / W 2-0.7ha. Dondo. 49 Ponds Lower Ptkngoe Lllwer Pungoe SW - W ind pump- tkrrows.Niaoranga / G 1-25ha. Gorongoza. 200 Pungoe M iddle SW - Gravity canals furrows

River.tbranch) PtknooeTOTAL 674

ZAM BEZIA PROVINCESite / Scheme Model Location Size Water Source I'arent Type ol' lrrigation (*)

District (ha) Pro'ectTcke-Tcke. / D3-5ha. Nicoadala 200 Licuari River. SW -Diesel pump -basinsNante / D3-5ha Magapja da 150 Licungo Rivel' SW-Diesel pump -basins.

CostaChire Valley. / D3-5ha. M opeia. 500 Lowerzambezia Lllwer SW -Diesel pump- basins.

Zalnbezia 'Nauela / D3-5ha. Alto M oloctle River. SW -Diesel pump- basins.

M olocue. 'TOTAL 900

(*) Note: SW = Surface Water GW = Ground Water

Proiect Phasins and Irrication Developmenl.bv Province.

hlodel Total Area ha. Pro'itt Yaus

T e sla uto Sofala Zambezia PYl PY2 PY3 l PY4 - PY5 PY6YPD1 420 - - 5 10 30 125 125 l25E1 300 l00 - 100 100 -T1 148 7.5 18.8 35.3 42.8 43.5NVl 35 - - 7 14 14 -D3 425 10 45 120 l20 l25D3 - 900 10 l25 255 255 250#/2 49 - 7 7 10.5 10.5 14Gl 200 50 50 50 50 -

Tot< 903 674 900 15 l95 283 7l0 717 557D1,E1,T1,W 1,D3,W 2,G 1 are types of irrigation scheme models descrilled above

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r = m j w m- %FANNEX 5

MOZAMBIOUESmall-scale Irrization PrqiectOrsanizmtion Chltrt of the SSIP

,...'m ''h .w.. ...'' N..

....- P RO AGR l '-....

ç: ,2F''-..- Common Se rvices Uni! ...-'''

''<>-.....w. . .. ....A .* .

Extersbn Natonal*---- DirK torate

of Rural '(lerxnzp-t-s.b Extensbn Nat onal DirectoratePlds of Agricultural W ater

Natonal Resourœ sOFTT* ---- lnsitute of

AgiculturalAdayive Research PC UResearch

AgricuturalTrainingssff T*/7--I.a lng centre

Prov incial Prov in cia l Prov h cialAgricu Itural Ag icultura I Ag ricu lturalDepadment Department Department

Ma to '

PlU PlUPlU

i iPrnvim kl Provircàl Provirc bl Provircàl Provirrbl ProvirrblIrrigaion Unit Ext&sbn Irrigaton Unit Extœsbn Irrigaton œit Extœsbn

r:e rvè e Sem è e Se rvk e

NGOGO private sectœ NGO avate sectœRivate sectœCentradors/ Contfactors/ Contractors/Sum l+rs S uw liers Sum lbls

G roup formation, trai ning scheme construction, supply

Identif , desig n, co struct, nage. .' ' ' . : ' '

.i'tFarm ers Associations and Farm Househo'ld s

k

r b..,-ANN EX 6Page l/2

Mozambique - Small Scale Irrigation PrttiedENVIRONM ENTAL IM PACT ASSESSM ENT

l-lntroduction: The project's objectives are t(3 contribute to twerall ecomhmic growth and poverty alleviationthrough the achievement of a sustainable increease in hlltlsehold income alxl fbod security in the small holder andfnmily sectors via greater and more efïscient agricultural productilln by expanded use of small scale inigation. Theproject is classed as Category 11 by ADB and has nl't been the object tlt- a particular Environmental lmpactAssessment.

z-llydrolon : There are some possible negative ilnpacts ()n hydnllogy in a l'educed tlow of surface waters â' nd afall in the water table in some ground water aquifers. Because the scale l 'f the project is small and individualschemes widely scattered these risks are considered t() be l'ninilnal .

3.pollution-only limite quantities of fertilizers axl non-residual pesticidees will be used by the SSIP. The risk ofpolluting surface and ground waters is considered t() be very slight.

4-soits.slight risks of salinity are present in Inost alluvial soils especially in the south mainly because of highevapo-lnnqpiration with low rainfall and the presence ()f saline and/or sotlic lacustrian and e'stuarine deposits.There is also a slight risk Of some saline drainage water escaping thlm the st'llemes.

5.F.2.010> and Biœdiversity.lt is anticipated that the area t() be irrigated wil l increase under the project but noneof this is likely to be virgin Iand. AIl has almlpst certainiy been cultivated in the recent past and there is n() dangerto any native species of fauna or tlora from ctlltivatikln. The gntiect will ()l'k)m()te Iimite use of p%ticide,s withshort residual periods. Any deleterious effects are likely t() be (lffset by the Illllre diversitied cnlpping patterns andthe use of organic farming techniques such as green mantlring.K.lrrigation is Iikely to have some benetscial effects ('n many Iiving orgallisms including aquatic and terrestrialannual and perennial plants, soil and air micrllqlrganisms, tssh, amphibia, al'thropoda, small mza mmals and birds.Parlx of the areas selecti as initial irrigation sites or an ('n majllr migratol'y bird tlyways and these will providevaluable fee ing and resting sitees for Atkotropical and Palaearctic avifatlna.

7.stKi- nomio. No adverse impacts are expected tltle to ptlpulation Snovement or migration. Indeed, theSSIP may well have a positive impact on minilnizing migration. SSIP'S activities will result in higher incomees, animprovement in the role of women and empklwerment tlf producers thrtlugh their involvement in identitscation.design and implementation a'ld management (1t- schemes.

8.H% lth.A positive impact will be the better nutrition restllting f'lR'lm increklsed production of a broader range ofCI-OPS.

g-lmbalance:.pests and weeds should be redtlced thrllugh the use t)f limitetl quantities of pesticides and the wideruse of good husbandry practices.

lo-M itigation and M onitoring of Environmental M easuro:.preventive measures are included in the design andimplementation aspecB. Among the mitigating measures proptlsed tt) cotlllter possible negative impacts are sllilnnalysis to monitor changees so that potential salinity/slltlicity pl-tpblems citn be detected in time and Inanagedadequately. Another mitigating measure will be the prllvisilln tlt' irrigatilln water in sutlscient quantities to leachsalts. Technical staff and fanners will be trained in irrigatitln water managelllent and irrigation scheduling and canbe expecti to act as an ''emrly warning system'' for envirtlnmental hetz- ards . The use of pesticides and fenil izerswill be carefully monitored to avoid health pnlblems, iimit pollutilln and enstll'e correct application rates.

.' . -4

xN$; 6q. . o ' l ';T . > 2 . . ' . F !

ANNEX 6E nvironlllental Iln .'àct Assessment t.rheckli. st Page 2/2

Positive Positivc No impact Negative Negative No Commentsànpacl impact likely impaknt impact ' judgzment

possibte possibte very tikely possible atpreaent

IHydrology .1 . 1 . Low flow regime X1 '*' .

i 2.Fl0* regime x' 'i .3.opemuonofdam No flamk

i .4.Fall of water uqble XI .

i .s.Rise of water uable , xI

Pollution 1. 1 .solutz dispersion X1 - ..j '.z.-fbxic subsumces Xl

#.3.()rganic pollution x .1

(Eï.zl.Anaerobic effects X .1ï.5.G:us emissiorus x1

soih 3l. 1 .soii salinity x3l.2.sou propertira x3t3.sa!ine sroundwatrr x1 *''' .3L4.saline dminage xij '3 s

.saline intrusion XI

sediments 4! 1 .t-ocal erosion xI . .

4lz.Hinterland effect1 .4l3.River morphology xl4.14. cldannel regime x(

4l.sedimentauon x '4.16.E.st.1 erosion X

Ecology 5.11 , J'roject lands Xs.k.water btxlies xI

s,à.sourrrotmding areas x1

s,k.valleys & sitore.s xIs.à.weuands & plains xl

5.ë.Rare speciea xt5.#, .zknirrual migcation x1

5.à.Namra1 industc xIj 'Socio-eco 6. . Population clzangtt X . Il - '.

1nomic 6.1.lncome & alnenily X .l ' i

'

.

6.j.Htun= Iniaruuon y1 '''' .

6.ï. Reaetuement xl .j , '6. .Women s role Xl .

d Minority groups x6. .l6,f .site.s of valur X16.8, Regional efrocts x

j 'j '

6.9.User involvmnent Xi .

6.lb.Rez=uon x -ï .

Healtb ' 7, ltwater & saniuauon x1

7.zlllabiution xlj '7

.3 H ealua se rvices Xj '7.4 Sutrition XI .

j ' '7.5 Relocation effect XI

'y.t,lf-pisease ecology xl t7. 7.lDisease lAosts X 'I

7.8.iDisMme control X '7,9.jther Nazartls X

lmbalance 8. 1 .je-sts & weeds X8,2.lAnànal disenqe X

8 3 hquatic weeds X 1x

'

8.4.Ltructuml uamage xI8. 5. Ailnal bnbalImcos X l

. I ij, .Number of cros.ses l 5 .! .36 7 j

Mk1X =k *11< X>

X

& & o c c & * o o & & o & & & & & & & o c && D c & & * xr & & & & No & C = & c c & c c &n rH o & c = * >' >' P' r/ <h c & r- c c o c o c DM - o & & % % * * % - x & & < & c < < 0 & &> < - - o - < * * % < < * 01 1 *, x m ol ol c rN - + > o 1 + % - Y > > m - - * - < ,vAkl;l .. .. . . I .. . j ' .

> - rq - ko =

o & & & & < oq & & * c & & & & & & & & & & & && & o o & < (> eq 04 - o o1 & & % o o o & c & & &< 04 & <) o - o: <? Ko < P- - & & ra n c Ko % Ko o & =* * A > & & > * % - = * c * oI olc > c1 m & & &c & > % & - Y * % m + , > 01 1 r m c < - > & &G - G - c ' M M 1 * - - - < N - * .v.. .. . . 1 ' 'tm

cq .. m .> .-=

>- & & & & o % n o o 04 œ & & & * c o o o o & & DU o D & & & o <) * * ro % Y & & < c & %r. c & & c &< eq & & & c: % rg r% QN < e N5 < - & & ol c & o c D- en - o A & % ol cs en < * Nr .%r ,< en .%r rq = < . Kr ? c m . . r .1 eq < Pv * & 1 rq - o .- < ' x r- ' % rv <, -. < cs > I'X> to - c * 04 ' &1 = c ' ec enX x Mt .. . .W 2 > * '- œZ x =0 =P Z< 1D >X M & & & & C % c & & % > % & & > & & & c & & c &x = 0 * & * & c * > > < > * & 0 > c o & c & & & D* r G o r o r - > > m m G m clc r & o <. o o c om - * < Ao r% & rq * cv n r- Ko '- m; *1 > = - > .. & c &o Q rn *- % 04 c >' * .- ' Qs rx1 ot 01 eq < rq kc < lo- o rn ' rx eo .- o; 01< M m ., -.u >. > ** = == <= >< XX XX ex & & & & & * 0 * * > 0 * * & * & & c & & c &'

- o o o o o < - < < & 0 * -.-.* c c o 'o o & Dœ m > * & < o < * > > > M & = = & <.& x c c c oD c mr Nr qo r- o .- o. xr .- m -. -. eo eo -. wn o C. .r.& Z rn .- o o% ol ' ' ' = p. ol < v.1>. - eq m oi -.m > '' -= -.X < =X Dy1 KO ZX <

o o o o c o m o o o o o c c) o c7 o o o o c &o D CD o ' %' Krt >' ' ' ' ' . . ' ' ' ' ' 'A - o m = m ' m o c c o c C C C o & c Do .. .. .. .. f & n qo to & qrj oPw - < 04 - - en en tr: o % <j> O - œ O1

.. -Q. l

=- c= cX = x= X <= e- + =

= < o ' 'o - -cr v r *< œQ * % % f >= %

. = .=o o l = = >m r m lX - = =X Q X e ' L'ra

.= to o>. > o o o 2= *- o = = o x> x -, x = = = l == x Q = z:rr = o = = w r: = = 7: % > M =' .m - = * R tp w. = .) = v v k w = > -3 = 2 Sbe o - l r - w e o - o c c e o m c x > 'r x c Q A o . 'rQ v r m o u o x c o o r l v c m o o- M

,o r = ' u < =I . m . ... , x . . o m , .. o ..x . u rö = . o I ? . o I Q? ' rz .c.l - i o o c - z - i o r r w o c n w m .z a w m .'z - = w cX =0 o o u) (/ y- X = (a o o >- .z = o 'a o a x c o a x ' w - .z = oc =

= = = = = = =c M m m - o cr * M e c o om c N > m o oM r c m o G cN - x o e =

* G G -

N m < < * o =X e - - - o or V e e c o oc G > o - o oO r o m - N cG N e o e =

< r ' < < - v < < < o o> > < - % > * - - = = =< * -- & = o * e & > = =< .. *I < = M c N o o o oo - x m - m o o m w o o- & - < < x = > =

* G * G

> o m o o - c m m e o o> % > ' ' - - + * < * 0* M > < < - * o - * o o.. .. .. (-hl th-v .< .. .h .. .. .. .h* *- = rq - < G X e- M tm =- C> @' *' G < m - % eq o= % œj oj o. oj x == - * - - -

A * > < < % * > > * & == M < .' .' > - & M * = => & % = GI - * M M * = =# . . %r' O 1 @

'

@

'

. . . @ e .<.> c + c - w > x < = =.- n ,. .. - o. w- o o4 < == CN > .- 0. x ON =&& .. . ..- G x

' o o o r X m o o o o o* = > o m - - x * x = =<> * c > e > = - - o =CN .. .. uo .. .. * .h > .v .v

. '' ro o. xk % m No ok * = tn =t- rn ck tn o. 0. ol o CN ='- rn ol e- * - o =

% ml< < - > G < < X o o> - % % & - * > > G o &- <J œ * > m - c o x c oX - & c - o r c G - V o

c c o o c o e o o oe . . . . x x o o o'm U & & & x - o m -- G < m

z

ce&=

= Qe- Q= M

==PQ cQ= <

> Ze a)l

=1 = x= -, x w4: . a c x œ e (.)> tkn v' = >t; (z) = t. = = c M o - = K.. g uM , x = m o r (.) .- j = o - o =. x .g r: m .a o a a = .x m w xcz t'q w = w x .. = - w -.. =

'N e *D = L) (:7 t7 = ve = = Ch w' * x -çnw e R

*

X

ZZ<

o & & c & c & c & D & X c D & & D X œ & & œ œ V c& c D & O c c c & & c O c & c & O & % c œ m m N c& & D & & c & œ % * m X & & & > & r N G N c D &. ..... . - .. .. .. .. .. .. .. .. .. .. .. . .. .. .. V*& & c o & & & c * & N & % & - & * % c > > c * & m

% c & v O * c N * % = X. c.& o c % & o & * * - % -o a o o * c & * % & O a O c O œ % & O N . X - O . oœ N & c œ & & N % - * % X % O & > o X > N * œ c a >> O c a & œ & & * % m N & c N & o * œ - % X O N N Oœ % o * * a & c m & c c c c c * > & % O c * * * a'o'

V X N R X N V R X œ = & - m œ > & N œ V N N Na v & > 0 * X O X AX >* *

& & c & & & & & & & & X & & & & & œ X 'o & * X = %c o o c c c c c r & & > c o c * X N N c c = v I. =c o m o o o c N r * a V D > D % O > O kœ A % * . <c & & & & & & X & - N N % N œ X % % c lœ a > & - Xc c O % & & & e % œ V > % œ m v X X & ;& & * * .G! O> & o X & c * & - - > œ & % c V m c A ëX > O N œ '& c . a & C N c > œ & * % N - I- c m * % % c & ' N* & o m c - & & % > % m c c % > & - N o a c > * d7 *> % & O X % & c * % X X * c c % l< V X = % n r c (N o'

œ W 6 W W G & V =' '& V W *'K W <'< ='- V W C' mf75 (4œ T(D=

c & & & & & & * & & & % & c & X * D & & c O & = %c & c & & c & m X & & N O X & X % N r & N X X cl *c & a * & o & & X X * X % e e v c - c * œ X X . 3& & X % & c c % X c % % c % & N & X o G & & N m oc o = & & & œ % X & c X œ N % & & m c N c = c = &œ D N N c & c œ V m v X V c v r c m œ c m r c cas x'œ c X N X & & m r & N c X % X & & r & c V X c - %

% X c X > & c * O X c % O c c * & O & N œ c % - mr *> c & m = % % V r X & m c D œ % & a % c & N G W g o'

m & - = m > > %Xto v4r'A I

&Nr

c c & & c & & & & c & N a & & r & % c & & & & e &c c o c c c o c c c c œ - c o N V c o c c c o d &o c c c o c o r - X % X X N m - N œ * & N n - . %G cf rd cd & &' 6 trf < m' & v' ts G r6 d r; kri =' < cf u7 (V = 4 -cpc c & c & & X œ N m * & & m X & - X V a R c O Gl XN * c A & c N % X c * c * * X N - c N N - * c = o'% & N D & c X X X = O œ œ m V & c N c & œ N X .< ce œ & O N & & c X N * N X X œ c & c r œ & % œ X %. G& c X & & % X X a a N & & X % & > & c e & % c Ee)X . . - . . . . . . . - - - . . >œ m = % a œ & m = - c c c c w o

= .< or:, covr 4 W

c & & & & o & & c c & X & & & & & & c c & & & 'r Vc & c c o c o c c & X o c c N N N c c œ o kcl e& G œ o c o N c c % & q X & X N = c N c % . '& & % & & CD >. v' (Q (N X) (D u7 < (D * F) ln Ir m X kf) cC & N

. CD (D o >. tn P< m v & c uD 17 (D * W) >. V & tN 17% 1D (D. 1% c tn v' 01 * tD c) c) A * o % % v' * %. œ. t7. ..-

a = * % c * * N O * * c & c D % & œ c X & ' -œ % N N % = * c c N c e m 4- * N œ œ c N X $3h -> . O % m = . - N & = m c o c * œ - '- t. <'a. v- ol &' xr

< Nl-. C:I0t) jTeyfNJ

& & c o o & & c & & c & & & & o & c o c & o & f& œ& c o & & N & N & A X X - <o o c c œ c œ % * X c c . o

o o & o o to * rhw (N (D tn u7 K' c) -(z o o & & (m v- ch c cn e3 tn u7 > (D =

e7 co o v- eq to m c o c o o l'1 -x . . . . - . . . w - . w % *.- tp o >. to ot * F) tn . * u< % t'q to m V to V tn to * to '.. .0X U R O O R R U U * W*-

, tfn o> > ' *x ko &.L

. . , . .F- k., tD Nu r.L c? e?

= - ww-q, tç). ea ' Ix=

(v (7 - (n(r I I ul I :7q)X % E % X Z' '

.- 1= >' m o m- cj . - n . . &-c7 -c5 œ u -q5 * F-= Y = E m = E ul= = o = o œ o œ œ* 1 o x = (r r x = (D .f= n

. o a: q; u) r to u-Q a. &- N o (z) * o (0 o om (u =1 O :z: 0) o U) x >- r) (u (7) (u & >' (J- = = = c (7 >.z c; 'c c c; 22< tl tn v. c o (v v w u X o (u X q *J *rt >.- %n' o = :I: =' -(o 'z = x- œ = 1: to -(u a ' œ -œ *'e *

- S. 6. = *- . . ko mu- . = . r œm . . m

'- .0 m Um -=. E Xm f= -m E E @) œ '.' ' k'J w'o < -a5 uo - - (u %u o œ .w -cî m g =< w = (v > . (D > . (p y - a= x = = (n > E = >- = 'o (u > c *, <x < 0. F

.n = c tq o o (s F.n c c pq o .9. s z *G o E o q) 5 .9 o o F.A x . n. q) == -15 g? .e E .Q ..Q a u o . E ..- (r) 0. c q) > x< to 'a = = Y tm c E u- = (u = -c5 = % tD c E x = c .g ua9 (v o E o = :z: f7 = s o E o = tll tll o œE

. o o . G .a u u m o c) o . ..u u G o w- g .0 y s-o .q2 = < w. (r o . q) c ko p u x (u o . o c a2 - ku F- g = o ; r x (o N 9 = o ; % s L. y < *t -m o o '- A .-. = u2 o' o 'a Z .-. = . c w- < =* o O ..- o .-. .

s .a o ..w o ..0 - œ '-- .% .s =tU =) m , o .Q *.œ = ..- Y = .o .% > m = ..- = = m .% tu (u o .-0 w . G ..- c N <* G = c

. Q (7 r o. D n. n. x ..- w- c. (u >, cn = œ .q -o o. n. g o .- w- o 0. g x c . w (a> o (v (v w- o o x m (r (u tr .- o o r: E u.X 5 X O @) (y) O 5 O 5 5 O O (z) c) O ' . * (7 O XI x N

ru (/) - w > rx g) tc = g p o G .c <* l , , ' t: o , , d , , ''@ * o o +> I l m l l a - 1 m ) I a - o > . z* = m > X X m o G = m = O O = o u E m Y Y > O' -œ c œ - 7 D c o 7 - o o œ - 7 c c o 7 - o x œx x l o <

rt

X - o '- '- rn Cn eq 'm rx en c% rq po c% c' =. = A rq cn= m oh -+x to eo =t - . x = .- rx n x cs - r- so rn = - o.o s é toto E p'co rqrq x j P'x g cxcx xrm p p g oxox xm g ; , roro y m cxcx y rnrn==

m I ' ' 'x- @ =<

>. F-m M M o o o r r r w w w w w c w w w w w= - >

1 $ Ow o - ow Mo Mo oG co co co Go Go co co cc oc co co co coQt m

mZ

o - o c o o c c c c c c a o o c o

R - * c x c do x x x x x x x x x x x x x x

@)F- *>=- rn v .. rq = rq r- r- r- >. >. > o. >. >. r- t- o. o. P'm -= ' o *# N > - = m NJ m kr m ka m qo m uo m = m =F .e (x ' ..o =. t n .+ rx -. -. -. -. -. - -. -. - -. -. .- -. -.é R '- O v> % c > > > > > > > > > >> > > >Rm kIm=

Dm O e:>-4 IZ =-X t.w = tn =r 'e 'e c < : m c% I m < '# rN = l o m -t rq .+ I :3 < '+L& '-o u? =to < = vn * = UQ rn c ; q r% %.T r = D rn rx l < rn D en rq%*'

-> o = v7 to 'e (*7 '+ - c A rx ru '- c x rx l rq .+ c x t'q* O q: + to c 'Rr * rm c c '- ('q t'- P' c '- t'q r' P' 'x '- rq P'O * w c rx rq .e en ro .% .- -. .- .- .- .- .- .- .- .- I - .- .-t)

=X u)'bn m r

D w. 2 -= m .- rà r: -ct o o ..- m * * > ('< 'e x rn x cs rx %r3 rn (x) ox w 'o =% = ox r-'-'- ' = I JS -@) & * 'e m > en '- >' o =s rn '- D' c = rn rn r' c =%t? ee o m m CN &4 tm o% '> = r- lo vr D' * r- 'o 'e >' = '- Krl '* t'-,Y -x O r-- m t o - < t o m c7N lxl G> '-. l o ' o =) oq '-. 4 r .. I o o ON ''- trtuz ' m r- %> mq mq 'e 'rr '+ In rq t'q rn r.n rn r/ cq ro r% rn - r'q en rnQXa <D2 1 =c O c0 '= u z . 0 0 & > > > * > > > > > > > > > > >S = - > c = > = w = w = = = w w = = = = = == z F-' = o m r'q -rt m rx Io yrj Io 'r, ka tmj Io .a ,a ,r. trï yrj szo $rï qo(z? o (-) .-' t'n 'o

- 'g C)= (Dc/l CJ Q)

OX c* Rn ro s w x o .o > = = = = r = = = = = = = = = =m o e G > % - o x x x x x x x x x x x x x x xu o r >.=F O

*

O G c v - x rw l r > to v = > 'r m = > <A c - > w o o x a w o o x o wz o o x a w= *- * * = > 'o x x *œ o o x - v o x >l c o x >- * - * * & - - -

5=

.2.t' U: r w -. rx r.n en rn rn rm ro rn r,n (*7 er. en ro r.n r,n r.nQA% %uJ r- r- r- t'- p' rx r- t'- e. r- r- ('< p' rw rw= = x lo ro x oq ;tS2

(7 N::I I ;-) ç;-h 1/eh ' T-l 1:*1 1:-1 1:-: ::e1 I#eï t ;* . t'-l 1:*1 :/-1 l/-ï t'-ïY c * w G tm M x x x x x x x x x x x x x x xa m - > .m =R o

(a = ,-.X tM >. o .- cx rn vr br. um o. x cs c& O

m - - & > .o = > x > - - - - - - - - - - >= X w > >. >. > >' > >' > > >' > > > > > > > >' > >'mm m m m m m m m m m m m m m m m m m m m

Ro*

u

r = v C

9

ANNEX 10

M ozambique

Small Scale lrrigation Project' 1(

lndicative List of Good# and Servictts ?'

î(LOGS)

. :-' .1

CATEGURY OF EXPENDITURE UA Milliqn u''

M.E i éenesciaria TOTAI- ;I xop TAF .q cd ,l 'A

-civil W orksA.1 lnfield Scheme Development/lmnd Leveling 3.26 1 0. 18 3.44

I 1A.2 Market Slteds-Roads & Bridges 0. l 9 0.03 i! 0.22

liB. Equioment ). 'K 1 :B. 1 Pumps Equiqment l .92 11 l .92l

iB.2 Small Farm Equip.-pipes & Transformers 0.63 2 0.63l !1B

.3 Office Equipment and Fumiture 0.03 0.07 11 0. 10

B.4 Field Survey )& Meteo Equipment 0.02 Il 0.02B 5 Vehicles & M otorcycles 0.33 11 0.33

l i!C. TA and Consultant Servico j1

istance 0.39 ,1 0.39c.1 Technical Assl including Audit) 3.36 0.04 11 3

.40C.2 Consulting Services ( (jilD

. Studia j0.28 î 0.281i

'jE. Training ;0

. l 2 p 0. l 2E.4 Local Training EtE 5 International Training 0.23 it 0.23

17 .F. Adaptive Research/Extension/Field plots - ,1 . j yl

. l / LI l .(111

G. Farm Inputs and Servico Credit l . l 5 il l . 15l ' !iH. Government Staff Salarie I

:1j 1 . l 9 1 . 1 9i!1

. Operation & Maintenance 1i 0.38 , 0.03 jj 0.43 0.84

'rOTAI- l 12.43 1.21 '1! 1.62 0.18 15.44

. . z'..-.. .w....-..- -. .. .c2w.-:p s . ... ....-.-.....-zl;...w.K..-.o..-..z.-

4,ANN EX 11

sloz-ambieueSmall Scale Irrigation Project

Terms of Reference ftlr Consultant Servit'es(Credit System Study)

Title

Duration

Duty Station

W orkine lancuaze English and gtxld command of Porttlguese required

Qualification and ExperienceA degre in Finance or agricultucal economics with at least 1 O years tlf experielltle. pretzrably in SouthemAfrica or in newly liberalizM economitxs, in tkrm activities btldgeting and credit acl ivities.

Dutio and Raponsibilities:

Banking and Rtlral Credit Specialist

3 (three) lmonths (PY l )

Maputo (with in-country travel)

The consultant will work under the direct supervision ()f the Program Coordinitl ion Unit of SSIP and will be requiredto:

Review all existing barlking rules and regulations. with a special emphasis on the rural creditlegislation ;

(ii) Review the SSIP ohjectives in terlns of credit (credit in kinkl tbr the equipment and credit in cashfor the seasonal inputs) and assess the t'easibility of the propllsal made during appraisal ;

(iii) Be acquainted with the newly tbrmed &' rmers* groups rulkts and regulations with the view ot'making sure that the farmers uan adherc t() the credit system l Ildividually or as a group ',

Take a census of tbe traders in the prqject sites in (lrder to assess their capacity and willingness ofmainuining minimum stocks of spare parts for the pumps. :tnd to be able to deliver fanm inputsbefore the agricultural activities start',

(v) Discuss with the Central Bank of Mozambique (BOM) and thk: Ministry of Planning and Finance onsubject like rate of interest. discounted rate afxeptable tt, agricultural projects, guarantee andcollateral, etc. , alI in Iine with the banking regulations. Tht: Inodalities of distributing the interestcollected from the loans among different parties (cretlit instittltion, BOM, and Farmers'Associations will be discussed with the (lbiective of creatillg a Special Guarantee Fund tbr theprogram beneticiaries. This will give theln the pllssibility t() k:xpand their activities',

Assess the management and the adetltlacy ()f existing Gtlvqll'nment-s Funds objectives within theprqject rationale and constraints (specially Funds tlnder the 5.1 inistry ()f Agriculture and Fisheries.and the M inistry of Planing and Finance) '-

Assess the performance of the existing NGOs specialized il1 credit management with the view of. *

selecting the most appropriate instittltions to fultill the SSIP :$I)d the tarmers' ne-ls.

At the end of the tasks describcl above, the expert will prolxse diftzrent altemativtbs/scenarios that will respond to the SSIPneyvlq. Bnqez'l on comparative advantage analysis of these seenarios, the constlltallt will make a propoml as to the bestsolution for mxnaging and diqxnsing crMit tbr SSIP. and will propose the most appropriate institutionsts) to undertakethese activities.

n e Expert would also prepare the Protocol of Agreement ()r Contract. as requi l'e'd. between:

. the PCU and the Credit lnstitution,

. the PCU and the traders willing to work closely with the prttieet tbr de1 ivering t'ta rm inputs and keeping spareparts ;

. the farmers' associations and the traders',* the farmers' associations and the Credit institution.

U r

A X 12M ozambique

Small-s e lnigation Project

Sugg ed Screening and Selection Criteria for Scheme DevelopmentI

Se uence lof Criterirl I() l)e ctlllsitiercd' Conditionql i jgl fbr nextinitiation/plann 1Ii

mplemenotion steps skup1 tYes/No)1 ,1

. Farmers request Fanners perceptions of sct3pc and nattlre of devcld,lpment YesType of cropping pattern ellvisaged by farlners YesFarmers' assessment of market potential , yields :llld prices YesWater users upstrêum and downstrealn. ctlnsulted NoPossible land acquisition alld resettlelrellt reqtlirclnent consiklttred YesM inimum soil depth 1 ln NoSoils not too sandy nor t('.3f., stflny YesFarlners asvare o f' SS I P apprl'tttoh t('., :1 ssl.lt' iatio Ias . rcgistra t i(')l'l : t I'ld pa r'tici pation N oProposed scllelne not largcr tllal) xx 11:1 Itlependil'l.g ( hn lnsltlt;l 1 'rllptlsed l N ()

2. Prefeasibility Initial Environlnental Asscsslnent vlllllplutcd Yus' W ritten agreelnent by assiaciation tll:tt tllcy agrt;c tl 1 registratil 'I) , will tttlntrilnute Iabor Ycs

(or cash equivalent) to receive matching grant allkl akleept Ott' M eostsProxilnity to stlitable rtlad cfnllfirlnkctl YesAdequacy of perennial water stltlrces tltpllfirlned YesSuitability of soils and lnicrflrelief uthnfirlned . YesOutline design/cost estimates sllow direot cost' < US S xxxx/hla îdepends on model) YesCrop yields based on zone estilnates l-t'alr siluilar sttllelnes; priccs on local intelligence NoCrop lnodels/budgets indicate net rcttlrll > US S xxx/lla Itlel',ctllds on modell YesN o-objection letter froln Il'lttal resitlellts No

3. Feasibility study Fanners agree to recolnlllclltllttifllls (pl' Prcl-easil3i Iily study YusAssociation rcgistered and () I'l-icers aplpllillted YcsCadastral mapping and Iand Ilutluisitiilll I'lan. prel7ll rcd YcsEnvironmental Impact Asscsslntznt alld AcvLitTl11 PI:ll1 colnplctc. t YesTopographic and soils surveys ct'llllpleted YcsAdequacy of perennial watcr sotlrces ct'.)l) sryned YesLand suitability conforlnetl NoPrelilninary designs and t-ftst estilnates prepared witll farlner Ih:trticipation in design YesDire-ct costs remain withill cost ceilillg (lf US $ xxxx/ha Idepk'llds on lnodel) YesCrop yields based on acttlal for silnilar scllelnes; prices on lnil rket assessment YesCrop/farm models/budgets indicate lpet rettlrn > tJS S xxx/ll:l (depends on modell YesSecond no-objection letter rrtlln lottal rcsidellts NoAssociation agrees to rekttllnlnelldatil'll'ls 01- Feasilnility sttldy ( 11 Icltlding E1A) N(1

4. Subproject Association bylaws finalizctl . lnelnbcrsllip alld fces dcfined . I hLlllk actloul'lt opened YcsLocally available lnateri:tls stockpiletl l3y assthcial ilhll YesDetailed design and ctlst cstilnatc klrclnll rud YesInvestlment costs remain within t-ast t'eiling (,1- US S xxxx/l:a I klcpcnds (:1: lnodell YtrsLabor schedtlles preparcd ltlltl agrcetl 17y assotti:ll is )l) YesEnvironlnental Action Plall ilrplclrelltetl No

5. Construction and Mobilizntion of resources lAy provkncirt! irrigatii'lll tll3it/contrak'lt'.trs/association YesTraining of association ofl-it-ers iI1 Infltlkkeeping alld adlninistl':ltion YesO&M manual prepared NoTraining of association offieers in scllellltl O&M YesMonitoring of costs incltltling labllr No

6. Monitoring and Bookkeeping and accoulltsAdequacy o f banked funds 1'(.41- replrtttclllellt and rcln:t irAdequacy of O&M

k .. . . ' ' .. J h%. W 1; .x.. ..' r..' . 'J1.z...':18F.xi.. .rà. . . .. . .....J' ' ï:tk.L'adW''.'l Y'K''''' . '. =. *1w2 : ... 1 . .

rk ANNEX 13M ozambique

Small-scale lrrigation Project

Consolidated Technical Staff Tm ining Pnpgramme

Component and Type of cotlrse Course Prqject year and number of participantsduratilln(weeks)

1 2 3 4 5 6

Agricultural Technology TransferParticipatory Inigation M anagementa' l 8 18 18Improved crop production practiceso l 8 18 18

On farm trials methodology 12

Gender issues l 2

M ass communicationsW ater management techniquesa'

Irrigation DevelopmentAgricultural and environmental aspects of irrigationW ater resources assessment

Scheme identification, design and costing

M anagement Operations

Project Managelnent (DNHA headquarterslh'Management training (Provincial units)Participatory approaches to development (Prllvincial) l 9

Notes: a) At the Training Centre (CFA). lncltldes refresher/tklllow up t'( ,ursesb) At specialised regional instittltion (such as Instittlte ('f Develllpment Management in Swaziland)

9

k

Annex

REPUBLIC OF MOZAMBIQUESmall-Scale IrriPat.ion Proiect.

ADDENDUM

4.7 Sources of Finance

Paragraph 4.7.4 is added to provide the latest information about ADF-VII allocation and thecurrent balance for Mozambique.

ADF-VII Count.ry Allocat.ion and Remaining Balance

4.7.4 The country ADF-VII allocation for Mozambique is UA 88.65 million, whichcomprises a TAF allocation of UA 6.98 million and an allocation of UA 81.67 millionfor projects. As of 31 October 1998, the balance stands at UA 3.55 million for TAFand UA 20.62 million for project lending. The proposed loan of UA 12.43 million andproposed grant of 1.21 million for the Small-Scale Irrigation project will reduce thebalance for project lendin,0 to UA 8.19 million and the TAF balance to UA 2.34million.