AFRICAN DEVELOPMENT FUND MAU/PAAL/2000/01 Language: English

Original: French

APPRAISAL REPORT

LIVESTOCK DEVELOPMENT AND RANGE MANAGEMENT

ISLAMIC REPUBLIC OF MAURITANIA

NB: This document contains errata or corrigenda (see Annexes)

COUNTRY DEPARTMENT OCDN NORTH REGION SEPTEMBER 2000

SCCD : N.G.

TABLE OF CONENTS

Page PROJECT BRIEF, EXECUTIVE SUMMARY, PROJECT MATRIX, CURRENCY i-ix EQUIVALENTS, LIST OF ABBREVIATIONS, LIST OF TABLES, LIST OF ANNEXES, COMPARATIVE SOCIO-ECONOMIC INDICATORS 1. ORIGIN AND PROJECT BACKGROUND 1 2. THE AGRICULTURAL SECTOR 1 2.1 Main Features 1

2.2 Natural Resources and Products 2 2.3 Land Tenure System 2 2.4 Rural Poverty 2

3. THE LIVESTOCK SUB-SECTOR 3 3.1 Importance of the Sub-Sector 3 3.2 Livestock Systems 3 3.3 Institutions of Sub-sector 4 3.4 Sub-sector Constraints 6 3.5 Government Policy and Strategy 7 3.6 Donor Interventions 7 4. THE PROJECT 8 4.1 Project Design and Rationale 8 4.2 Project Impact Area and Beneficiaries 8 4.3 Strategic Context 9 4.4 Project Objective 9 4.5 Project Description 9 4.6 Production, Marketing and Prices 13 4.7 Environmental Impact 13 4.8 Project Costs 14 4.9 Sources of Finance 15 5. PROJECT IMPLEMENTATION 16 5.1 Executing Agency 16 5.2 Institutional Provisions 18 5.3 Implementation and Supervision Schedule 19 5.4 Provisions Relating to the Procurement of Goods and Services 19 5.5 Provisions Relating to Disbursement 21 5.6 Monitoring and Evaluation 21 5.7 Financial Statements and Audit 22 5.8 Aid Coordination 22

TABLE OF CONTENTS (cont’d)

Page

6. PROJECT SUSTAINABILITY AND RISKS 22 6.1 Recurrent Costs 22 6.2 Project Sustainability 23 6.3 Major Risks and Attenuating Measures 23 7. PROJECT BENEFITS 24 7.1 Financial Analysis 24 7.2 Economic Analysis 24 7.3 Social Impact Analysis 25 7.4 Sensitivity Analysis 25 8. CONCLUSIONS AND RECOMMENDATIONS 26 8.1 Conclusions 26

8.2 Recommendations and Conditions for Loan Approval 26

This report was prepared by Messrs. A. Mahdi, Principal Financial Analyst (OCDN.2), Mission Leader, V. Jogoo, Principal Environmentalist (OESU), and two consultants (an agronomist and a livestock officer) following a mission to Mauritania from 19 June to 9 July. For further information on this project please contact them or Mr. J. Rushemeza, Acting Division Chief, OCDN.2 (Ext. 4199) and Mr. Bisi Ogunjobi, Director, OCDN (Ext. 4040).

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AFRICAN DEVELOPMENT FUND 01. BP. 1387 ABIDJAN 01

Telephone: + 225 20 20 44 44; 20 20 48 48 Fax: + 225 20 20 59 01

PROJECT BRIEF Date: 25 July 2000

The information given hereunder is intended to provide some guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods and services for projects approved by the Board of Directors of the Bank Group. More detailed information could be obtained from the Executing Agency or the Borrower. 1. COUNTRY : Mauritania 2. NAME OF PROJECT : Livestock Development and Range

Management 3. LOCATION : Seven (7) wilayas (regions), comprising:

the two Hodhs, Assaba, Brakna, Gorgol, Guidimaka and south west Trarza.

4. BORROWER : Islamic Republic of Mauritania. 5. EXECUTING AGENCY : Project Management Unit (PMU). 6. PROJECT DESCRIPTION : The project aims at improving the

productivity of livestock in Mauritania and increasing the incomes of stockbreeders. The main project components are: (A) range protection and rehabilitation; (B) livestock development; (C) support to operating structures; (D) project management.

7. PROCUREMENT : goods, services and works will be

procured in compliance with the ADF rules of procedure as follows:

i) local competition: for stock watering (wells, boreholes, over-deepening),

firebreak and cattle inoculation works;

ii) competition based on a short list: for the recruitment of consultants, for studies, works supervision, the audit and midterm review. Given the relatively low amounts involved (less than UA 100 000) advertisements will be made at national and regional levels giving non-regional consultants the possibility to take part.

Other Means of Procurement

i) prudent shopping: for vehicles and motorbikes, equipment, small agricultural implements and computer equipment;

ii

ii) direct negotiation: for training, environmental follow-up and management of

the credit programme;

iii) goods for the credit programme will be procured in compliance with business practices considered acceptable by the ADF.

General Information Notice on Procurement: the text of the general information notice on procurement (INP) will be adopted together with PMU and issued for publication in Development Business upon approval of the loan proposal by the Board of Directors.

Review Procedures: the following documents will be submitted for review and approval by the Bank prior to publication: (i) notice with specific information on procurement; (ii) bidding documents or letters of invitation to consultants; (iii) evaluation reports of bids from enterprises or suppliers or proposals from consultants with recommendations on contracts awarded; (iv) draft contracts if those in the bidding documents have been modified.

8. TOTAL PROJECT COST : UA 9.30 million i. foreign exchange cost UA 5.30 million ii. local currency cost : UA 4.00 million 9. ADF LOAN : UA 5.00 million 10. OTHER SOURCES OF FINANCE: i. OPEP : UA 2.55 million ii. Beneficiaries : UA 1.00 million iii. Government : UA 1.75 million 11. DATE OF LOAN APPROVAL : November 2000 12. PROBABLE START-UP DATE AND DURATION : April 2001, for 5 years 13. CONSULTANCY SERVICES

REQUIRED : Consultant expert in micro-finance (9 months)

14. ENVIRONMENTAL CATEGORY : The project comes under category I

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EXECUTIVE SUMMARY 1. PROJECT ORIGIN AND BACKGROUND This project originates from the Livestock Project II co-financed by AID of the World Bank, the ADF, the OPEC Fund, the National Development Fund and the Mauritanian Government between 1986 and 1998. Some of the objectives initially set out by this project were fully attained, especially the re-organisation of the rural world through the establishment of a network of pastoral cooperative associations (ACP). However, livestock development is still beset by shortcomings especially in the areas of stock watering and range management and requirements are still considerable. Accordingly, the Mauritanian Government sent an application to the Bank Group requesting funds for a project that targets specifically the two areas mentioned above. 2. PURPOSE OF THE LOAN The ADF loan of UA 5.00 million representing 54.5 % of total project cost will be used to finance 60.0% of the foreign exchange cost (UA 3.18 million) and 45.5% of the local currency cost (UA 1.82) million. 3. PROJECT OBJECTIVES The project will help meet the sectoral objectives of: (i) ensuring food security; (ii) reducing poverty; (iii) protecting and conserving natural resources and as such ensuring sustainable development. More specifically, the project aims at improving the productivity of livestock in Mauritania while increasing the incomes of stockbreeders. 4. BRIEF DESCRIPTION OF PROJECT ACHIEVEMENTS These components will enable the project attain its set objectives:

i) range protection and management; ii) livestock development; iii) support to operating structures; and iv) project management.

5. PROJECT COST Total project cost is estimated at UA 9.30 million of which UA 5.30 million (57.0% of total cost) in foreign exchange and UA 4.00 million (43.0% of total cost) in local currency. 6. SOURCES OF FINANCE The project will be financed by the African Development Fund, OPEC, the Beneficiaries and Government. The ADF resources will finance the following components: range protection and rehabilitation; support to operating structures and project management. OPEC will contribute to funds for the livestock development component whereas the beneficiaries will help implement the range protection and rehabilitation, and livestock development components. The Government will help run the Project Management Unit. The ADF’s total contribution or 54.5% of total cost will cover 60.0% of the foreign exchange cost and 45.5% of the local currency cost. 7. PROJECT IMPLEMENTATION

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Project implementation is scheduled to last five years. The executing agency will be

the Project Management Unit (PMU) under the supervision of the Livestock Directorate of the Ministry of Rural Development and the Environment (MDRE). This Unit will be run by a Coordinator assisted by an Administrative and Financial Officer and four national officers. The Coordinator will be in charge of project administration and management and will be required to coordinate, supervise and follow-up all project activities. The PMU will call upon MDRE’s specialised technical or other structures to implement some project components. 8. CONCLUSION AND RECOMMENDATIONS 8.1 This project is fully consistent with the Government’s agricultural development policy and will contribute to the development of livestock in Mauritania, improving its productivity and increasing the incomes of the cattle farmers. 8.2 In view of the objectives set by this project and the analyses summarised above, it is recommended that a loan of not more than UA 5.0 million from the ADF’s resources be granted to the Islamic Republic of Mauritania with the purpose of implementing the project as described in this appraisal report subject to the conditions stipulated in the loan agreement.

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MAURITANIA LIVESTOCK DEVELOPMENT AND RANGE

MANAGEMENT PROJECT M.C.E.P. Matrix

Hierarchy of Objectives

(HO) Objectively Verifiable

Indicators (OVI)

Means of Verification (MDV)

Assumptions/ Risks

(a) Sector Objective: the project will contribute to the following sector objectives: (i) ensure food security; (ii) reduce poverty, (iii) protect and conserve natural resources.

Increase in animal production (meat, milk and other dairy products) as indicated below. .

(i) Results of follow-up evaluation throughout project duration and impact assessments conducted under the project; (ii) statistics report of MDRE and Ministry of Economic Affairs.

(b) Project Objectives: (i) increase productivity of the Mauritanian livestock; (ii) increase the incomes of Mauritanian stockbreeders.

(i) At the end of the project, increase in the dairy production ; Cattle : from 2 to 4 l of milk/d; sheep: from 2 to 3 l of milk/d; goat: from 0.3 to 0.5 l of milk /d; camel: from 4 to 6 l of milk/d. (ii) increase in incomes from: UM 14 680 to UM 21 289 for an average livestock farm; from UM 25 550 to UM 31 370 for a cattle fattening farm and from UM 6270 to UM 7775 for a sheep fattening farm.

(i) supervision reports. (ii) follow-up evaluation results. (iii) Results of surveys conducted midterm or at the end of the project. .

Assumptions (i) no major weather hazard (as the great drought of 1973) leading to fodder or water shortage. (ii) health coverage is effective and regular. (iii) producer prices continue to be favourable.

(c) Outputs: Component A

A1. Better agricultural water management. A2 natural range land regenerated. A3 Trees and fodder shrubs planted. A4. Firebreaks installed. A5. Pastoral improvements made.

Component B B1 Credit granted to stockbreeders for various activities.

A1 sinking of 12 equipped boreholes, 45 wells and 8 ponds easily accessible to cattle before the end of the project (2006). A2 Development 4000 ha of controlled grazing areas before the end of the project (2006). A3 Planting of 400 000 trees and fodder shrubs. A4 Installation of 4000 km of firebreak. A5 Installation of 4000 ha of dikelets; marking of 2000 ha of unfarmed land; enrichment of 2000 ha of grazing land with leguminous plants. B1 Procurement of 100 units of draught farming; setting up of 10 of cottage farming units for manufacturing cattle feed; procurement of 3 drawn units; construction of 600 dairy stables and 100 peri-urban enclosed areas.

(i) Project progress reports. (ii) follow-up evaluation report. (iii) supervision reports.

Assumptions (i) beneficiaries participate fully and willingly. (ii) Selection of sites for watering points is judicious. (iii) seedlings available for tree plantation. (iv) stockbreeders ready to plant and maintain plants. (v) stock of drugs strictly managed to enable auto-renewal of fund. (vii) loan recovery rate sufficiently high to enable renewal of a revolving fund.

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B2 inoculation centres built. B3 cooperatives provided with stocks of drugs. B4 small-scale studies once animal production obtained.

Component C C1 Support given to the operating structures. C2 Support given to the MDRE structures.

Component D D1 Project Management Unit (CGP) set up. D2 CGP provided with logistic support.

B2 Construction of 80 inoculation centres; B3 Constitution of 40 stocks veterinary drugs. B4 studies carried out on disposal, processing, preservation and marketing of livestock products and by-products. C1 Creation of 10 micro pilot funds; logistic support to CAPEC, GNAASP and the ACPs. C2 (2) vehicles tax-free for the DEA and DPSE. D1 CGP established: 1 coordinator, 1 AFO, 1 technical director and 3 technical officers + support staff. D2 (12) vehicles, 14 motors, computer equipment.

(d) Activities: A1 sinking of boreholes, wells and ponds. A2 grazing control. A3 Planting of trees. A4 Firebreak. A5 Anti-erosive dikelets and other improvements. B1 Credit System. B2 inoculation centres. B3 Stocks of drugs. B4 conduct of studies. C1 Micro pilot funds and logistic support; C2 logistic support to the DEA and DPSE. D1 Establishment of the CGP. D2 Equipment for the CGP.

(i) budget allocation by expenditure category (UA million): works: UA 2.53 Equipment: UA 2.32 Services: UA 0.38 training: UA 1.17 Credit : UA 1.98 operating: UA 0.93

TOTAL: UA 9.30

(i) List of goods and services of the project. (ii) Disbursement by expenditure category. (iii) supervision and completion reports.

Assumptions (i) Full motivation of staff seconded by the MDRE in the conduct of their duties. (ii) Counterpart fund of the Mauritanian Government available in time.

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CURRENCY EQUIVALENTS

(June 200)

Currency Unit = Ouguiya (UM) US$ 1 = 236 UM 1 UM = UA 311.851

LIST OF ABBREVIATIONS

ACP Pastoral Cooperative Association AMINA African Development Fund Microfinance Initiative for Africa ADB African Development Bank BCM Central Bank of Mauritania BID Livestock Input Office BMCI Mauritanian Bank for International Commerce BNM National Bank of Mauritania CACE Agricultural Credit and Savings Cooperative CAPEC Popular Savings and Credit Fund CCEC Savings and Credit Cooperative Funds CFCB Boghe Cooperative Training Centre CGEM General Confederation of Mauritanian Workers CNARDA National Centre for Agronomic Research and Agricultural Development CNERV National Centre for Livestock and Veterinary Research DAF Administrative and Financial Directorate DEA Directorate of Livestock and Agriculture DEAR Direction of the Environment and Rural Development DPSE Directorate of Policies, Follow-up and Evaluation CSP Country Strategy Paper DRFV Directorate of Research, Training and Extension Services EMP Mobile Multi-purpose Team FAM Federation of Mauritanian Farmers FED European Development Fund FICO Oasis Investment and Credit Fund FNAEM National Federation of Farmers and Stockbreeders of Mauritania FNEM National Federation of Stockbreeders of Mauritania GIRNEM East Mauritanian National Resources Management GNAASP Group of National Agro-Sylvo-Pastoral Associations GNAP Group of National Pastoral Associations GNAM Group of National Poultry Farmers of Mauritania MDRE Ministry of Rural Development and the Environment ONS National Statistics Office OSP Socio-professional Organisation OPEC Organisation of Oil Exporting Countries ASAP Agricultural Sector Adjustment Programme

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LIST OF ABBREVIATIONS (cont’d)

PDIAM Integrated Development Programme for Irrigation PGRNP Rainfed Crop Area Natural Resources Management Programme GDP Gross Domestic Product GNP Gross National Product PROCAPEC Agency for the Promotion of Popular Savings and Credit Funds SONADER National Rural Development Authority UBT Livestock Unit UCDB Grassroots Development Coordination Unit UNCACEM National Union of Agricultural Credit and Savings Cooperatives of Mauritania

LIST OF TABLES Page

Table 4.1 Project Cost Estimate by Component 14 Table 4.2 Project Cost Estimate by Category 14 Table 4.3 Sources of Finance 15 Table 4.4 Expenditure Schedule by Component 15 Table 4.5 Expenditure Schedule by Category 16 Table 4.6 Summary of Project Cost Estimate by Category and by Source of Finance 16 Table 5.1 Provisions Relative to the Procurement of Goods, Works and Services 20

LIST OF ANNEXES Number of pages

Annex 1 Map of Project Impact Area Location 1 Annex 2 List of Bank Group Operations as at 31/08/2000 1 Annex 3 Organisation Chart of CGP 1 Annex 4 List of Goods and Services 1 Annex 5 Performance of Hydraulic Investments 1 Annex 6 Terms of Reference of the CGP Staff 1 and of the Consultant in Micro-credit 4 Annex 7 Calculation of ERR 1

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ISLAMIC REPUBLIC OF MAURITANIA LIVESTOCK DEVELOPMENT AND RANGE MANAGEMENT PROJECT

COMPARATIVE SOCIO-ECONOMIC INDICATORS

Year Mauritania Africa Developing

countries Developed

countries

Basic indicators Area ('000 Km²) 1 031 30 061 80 976 54 658Total population (millions) 1998 2.5 748.0 4 718.9 1 182.2Urban populations (% of Total) 1998 53.8 38.2 39.6 75.6Population density (to Km²) 1998 2.5 24.9 58.3 21.6GNP per capita ($ US) 1998 410 663 1 250 25 890Participation of Active Population - Total (%) 1998 46.0 43.7 … …Participation of Active Population – women (%) 1998 20.1 37.0 … …Gender-specific Human Development Index 1997 0.4 0.5 0.6 0.9Human Development Index (out of 174 countries) 1997 149 n.a. n.a. n.a.Population living with less than $1 a day (%) 1988 31.4 45.0 32.2 … Demographic Indicators Total Population Growth Rate (%) 1998 2.8 2.3 1.6 0.3Urban Population Growth Rate (%) 1998 5.0 4.3 3.1 0.6Population less than 15 years old (%) 1998 43.9 42.9 33.2 18.8Population more than 65 years old (%) 1998 3.2 3.3 19.7 26.7Dependency Ratio (%) 1998 96.3 86.9 61.7 48.8Sex Ratio (men for 100 women) 1998 98.3 99.3 103.3 94.8Female Population between 15 and 49 yrs (millions) 1998 0.6 176.2 1 213.4 296.8Life Expectancy at Birth - whole (yrs) 1998 54.7 52.7 64.0 75.4Life Expectancy at Birth - Women (yrs) 1998 56.3 53.4 65.8 79.1Crude Birth Rate (for 1000) 1998 39.4 37.7 23.8 11.0Crude Birth Rate (for 1000) 1998 12.5 13.7 8.4 10.3Infant Mortality Rate (for 1000) 1998 87.3 80.7 58.9 9.0Mortality Rate of the Under Fives (for 1000) 1998 130.6 116.1 76.2 10.4Maternal Mortality Rate (for 100000) 1996 800.0 698.0 488.0 30.0Total Fertility Rate (per woman) 1998 5.3 4.9 2.9 1.6Women on Contraception (%) 1990 4.0 … 56.0 70.0 Health and Nutrition Indicators Number of Doctors (for 100000 inhabitants) 1990-96 11 23 76 253Number of Nurses (for 100000 inhabitants) 1988-96 27 89 85 780Births Assisted by Qualified Staff (%) 1986-87 20 ... 54 99Access of Safe Water (% of Population) 1990-97 66 55 72 100Access to Health Services (% of Population) 1995 63 60 80 100Access to Hygiene Services (% of Population) 1990-97 32 45 43 100 Education Indicators Gross Enrollment Ratio (%) Primary - Total 1996 79.0 78.3 100.0 103.0 Primary - Girls 1996 74.5 71.2 93.8 103.2 Secondary - Total 1996 ... 32.7 50.4 100.3 Secondary - Girls 1996 ... 29.5 45.3 101.8Female Teaching Staff Primary Level (% of Total) 1996 ... 45.0 51.0 82.0Adult Illiteracy - Total (%) 1997 61.6 43.5 28.2 1.3Adult Illiteracy – Men (%) 1997 50.6 33.0 19.6 1.0Adult Illiteracy – Women (%) 1997 72.2 51.6 35.8 1.5Percentage of GDP allocated to Education 1995 3.4 3.5 3.9 5.9 Environmental Indicators Arable Land in % of the Total Area 1996 0.5 5.9 9.9 11.6Annual Rate of Deforestation (%) 1990-95 ... 0.7 0.4 -0.2Annual Rate of Reforestation (%) 1980-90 101.0 4.0 … …CO2 Emission per inhabitant (metric tons) 1996 1.3 1.1 2.1 12.5 Source : Compiled by the Statistics Division from ADB; ONUSIDA Databases; Live Database of the World Bank and the Population Division of the United Nations. Notes: n.a. Not Applicable ... Data Not Available Last Update: December 1999

1. ORIGIN AND PROJECT BACKGROUND 1.1 The livestock sub-sector occupies a key position in the Mauritanian economy. During 1990-1999, it contributed an average of 15% to the GDP, keeping about 70% of the rural population occupied. During that same period it grew at an average of 3.3% a year. 1.2 Given the importance of livestock and that its growth potential is still not sufficiently tapped, the Government has in the last two decades and in collaboration with several donor agencies among which the Bank Group, been exerting efforts to bolster the sub-sector. Between 1971 and 1978, a first project was financed with the assistance of the World Bank. Its overriding objectives were to improve animal health and sink or rehabilitate wells under a stock watering exercise. After this first project, a second (Livestock II), cofinanced by the ADF, AID of the World Bank, FND (National Development Fund), OPEC, the Government and beneficiaries, was set in motion in 1985 with the objective of stemming the deterioration of the grazing areas, increasing livestock productivity, making the stockbreeders more responsible in the management of the grazing areas and helping to set up Pastoral Cooperative Associations (ACP). 1.3 Some of this project’s initially set objectives were satisfactorily met. Among which, the reorganisation of the rural world through the establishment of an ACP network in particular. However, shortcomings still hinder the development of livestock development especially with regard to stock watering and range management where requirements are still felt. Consequently, the Mauritanian Government sent an application to the Bank Group for funds for a project that targets specifically the two areas mentioned above. 1.4 The Livestock Development and Range Management Project was prepared at the end of 1998 by FAO’s Investment Centre and appraised by the ADF in June 2000. This appraisal report draws on the Preparatory Report, on consultations and discussions with the Mauritanian authorities and other partners including the ACPs, various institutions and other donor agencies. The proposed project is perfectly in line with the Government’s policy and strategy for the development of the sub-sector and consistent with the Bank’s Vision which highlights poverty reduction through a harmonious development of the rural sector. 2. THE AGRICULTURAL SECTOR 2.1 Main Features 2.1.1 Mauritania is a country in the North Sahel region which stretches over 1,031 million km2

of mostly desert land (more than 75%). Of its population of approximately 2.5 million inhabitants growing annually at a rate of 2.8%, 46% live in the rural area. 2.1.2 The climatic zones reflect primarily rains that vary from north to south: saharan (0 to 100 mm) to sudano-sahelien (400 mm). Since the onset of the drought around 1973, the desertic climate has been southbound and generally, the rainfall pattern is irregular. The agroecological zones include: (i) the river Senegal valley; (ii) the rainfed farming area; (iii) the floodwater farming area; (iv) the palm groves and oases; and (v) the pastoral area.

2 2.2 Natural Resources and Products 2.2.1 Agriculture is limited by the shortage of arable land. Indeed, only about 1% of the country’s total area is cultivable. The main natural resources for farming are the River Senegal waters and valley. The valley is the main production area but is not sufficiently developed. Facilities are often faulty, irrigation out of control and farming methods not the best suited. Further, the soil is loosing its richness, credit systems are inadequate and so is input supply. 2.2.2 The primary sector’s contribution (agriculture, livestock, fishing and forest) to the GDP was estimated at 23.5% in 1998. Agricultural production features considerable fluctuations from unpredictable rainfall and accounts for local grain especially millet, sorghum, rice, as well horticultural, datepalm, dairy and fishing products. 2.3 Land Tenure System 2.3.1 The country lacks arable land but land ownership regulations are many. Disputes are frequent, sometimes violent. As a result therefore, the Government redefined its land legislation to better adapt it to local realities. Through various texts, the current legislation features a three-phase land attribution system: (i) authorisation to farm; (ii) provisional concession after 5 years of continuous development; (iii) final concession after a total of 10 years of development, convertible into a title deed once the boundaries have been set. According to the legislation in force, access to land is free and not subject to any form of discrimination. 2.3.2 This procedure is well thought out in theory but in practice leaves to be desired. The parties concerned do not go beyond the first phase because they lack information on all the steps to take. However, the information system which is being phased in makes it possible to clarify traditional rights prior to land attribution and to involve the population in the consultative commissions in an endeavour to limit land ownership disputes. In addition, each administrative entity (department, region), has commissions responsible for settling disputes. 2.4 Rural Poverty 2.4.1 The per capita income is about US$ 480 (1999-2001 CSP) and poverty remains worrying. Indeed, more than 50% of the population lives below the poverty line (UM 53.841 or US$ 263) and Mauritania is ranked 149 out of 174 countries on the human development index. Poverty is more widespread in the rural (68.1%) than in the urban (26.8%) areas. The socio-economic groups most hit by poverty are farmers and stockbreeders, and so are non-farmers beyond the river belt. 2.4.2 Women account for 50.3% of the population and traditionally they are the worst hit by poverty. However, being increasingly involved in farming they are becoming less vulnerable. Men tend to migrate to urban areas and therefore women play the lead role on the farms giving them much control over the incomes generated by the farms. In addition, many women practice market gardening which is a significant source of income when practiced in good conditions (water control, good quality of inputs, technical supervision). In urban areas, women are highly involved and even dominate (80%) the informal sector. 3. THE LIVESTOCK SUB-SECTOR

3 3.1 Importance of the Sub-Sector 3.1.1 Stockbreeding is a core activity in Mauritania, and just two decades ago stockbreeders practised extensive migratory herding. The recent droughts have led to large-scale settlement and rural exodus. Despite this change, stock farming remains the key activity of the rural sector contributing year after year to about 80% of GDP formation. During the 1990-1999 period it represented an average of around 15% of the entire GDP. 3.1.2 Estimated at 102 million hectares, the grazing areas currently accommodate a little more than 3 million tropical cattle unit (TCU) although the theoretic capacity stands at around 5 million TCU. Undergrazing is the result of a poor distribution of watering points most of which are found in the same areas causing overgrazing in these areas. A better distribution of watering points and judicious herding should help control the deterioration of grazing areas and thus increase the productivity of Mauritanian livestock. 3.1.3 With an estimated 1.1 million camels, 1.1 million cattle and over 10 million small ruminants, Mauritania produces an average of 70.000 tons of meat, part of which is exported to neighbouring countries, and 400.000 tons of dairy products derived mainly from both the migratory and sedentary herding systems. Although relatively high, these figures illustrate the low productivity of Mauritania’s livestock. Indeed, 2 litres of milk produced per day and an average weight of 250 kg per TCU could be greatly increased if constraints relating to stockfeeding and watering can be addressed. 3.1.4 Livestock by-products are not very developed; export of hides and skins (mostly of cattle) to European market accounts for only an estimated 3% of African exports, and a very small portion is used for local crafts. In this context, the Nouakchott Slaughterhouse financed under the Livestock II project will mean a better quality of skins for export and craft. 3.2 Livestock Systems 3.2.1 There are three main types of herding systems in Mauritania: i) extensive migratory; ii) semi-intensive migratory; and iii) intensive peri-urban. Extensive migratory herding features long term seasonal movements regulated by the availability of fodder. On the decline over the last two decades, this system accounts for only between 10 and 15% of the Mauritanian herd and concerns in particular camels and small ruminants (sheep/goat). Semi-intensive migratory herding is practised by tribes who own and raise cattle, sheep and goat. This system, whereby the herds move over short distances concerns 70% of the country’s cattle, has increased pressure on the natural resources around the watering points and urban centres. Intensive peri-urban herding accounts for only 10% of the cattle and involves mainly dairy and fattened herds on the outskirts of large centres. Although there is virtually no investment into the first two types of herding systems, the third has been the subject of research and rational management of economically profitable investments. 3.2.2 At varying degrees, all three systems face a series of constraints that hinder their development and limit productivity. Although some of these constraints like poor production capacity and inadequate health coverage of the herds are common to all three, others are specific to one or other system. Productivity of extensive migratory and semi-extensive herding is beset by insufficient and poor quality natural fodder and a shortage of watering points . The development of intensive peri-urban herding on the other hand is hemmed in by inadequate feed

4 supplements, high cost of imported feed and veterinary products, difficult access to credit and problems stemming from the processing, preservation and marketing of livestock products and by-products. 3.2.3 The major drought of the 70s forced most of the traditionally nomadic populations to adopt a sedentary life style. Indeed, in recent decades they have settled in villages and installed social facilities (watering points, schools, dispensaries…). Shepherds drive most of the cattle and family members stay behind with the dairy herds they use for their immediate requirements. In the process of large-scale sedentarisation in traditional grazing areas, these settlers practise activities that are new to them. There is real pressure on natural resources from competition between farmers and herdsmen for resources. In the long run, this could adversely affect cattle movement vital to traditional livestock and pasture management. 3.2.4 To address this issue the recently-adopted Mauritanian Pastoral Code stipulates as a basic principle behind natural resource management that pastoral mobility be maintained in all circumstances at both regional and national levels. The Code regulates developments that may be made in the pastoral areas. Developments shall not be undertaken if they seriously hinder access of stockbreeders to pastures. The traditional mode of cattle driving which happens to be the most rational mode of pastureland management is thus protected by the provisions of this new Code. 3.3 Institutions of the Sub-Sector 3.3.1 Directorate of Livestock and Agriculture (DEA) within the Ministry of Rural Development and the Environment (MDRE) is the institution most specifically responsible for coordinating the Government’s livestock activities. At central level, the Livestock Department comprising two divisions, one responsible for animal health and hygiene of animal products, the other for stockfeeding and herding techniques, coordinates prophylactic measures by organising inoculation campaigns once a year countrywide. The main diseases covered by the inoculation campaigns include contagious bovine pleuropneumonia, foot-and-mouth disease, rift valley fever, anthrax and black leg. The DEA can currently boast of about twelve officers including seven veterinary specialists and three animal technicians. 3.3.2 Directorate of Policies, Follow-up and Evaluation (DPSE) monitors and evaluates the Public Investment Programmes and the Consolidated Investment Budgets, collects, analyses and disseminates statistics and rural and environmental information and implements the land reform. The DPSE is adequately staffed but lacks the necessary computer hard and software for data collection and processing. 3.3.3 There are two structures involved specifically in research, training and extension. Firstly, the Directorate of Research, Training and Extension Activities (DRFV) within the MDRE, responsible for organising the agricultural and livestock research, training and extension services. It is manned by a permanent staff of 28 officers, has adequate means of transport intervening nationwide. Secondly, the National Centre for Livestock and Veterinary Research (CNERV) responsible specifically for research into the field of livestock. Established in 1973, CNERV is required to study animal pathology, carry out research into animal nutrition and organise further training courses for the technical staff of the livestock departments.

5 3.3.4 Directorate of the Environment and Rural Development (DEAR) is in charge of pollution control, urban environment, protection of natural resources and hydrological follow-up. In addition, it is responsible for monitoring and rural planning and management (range regeneration and improvement, dikelets, etc.). 3.3.5 At regional level, the MDRE is represented in each of the 13 wilayas or regions by a Regional Delegate under the supervision of four department heads representing the central directorates (DRFV, DEA, DEAR, DAF). In addition to the department head, the livestock department must have a senior officer (veterinary specialist or animal technician/ livestock engineer) and a number of field workers (livestock assistants and nurses). Currently, only six out of the thirteen wilayas have at least one senior officer of university level, the two Hodhs are better equipped than the other regions with two officers each. 3.3.6 The Associative or Cooperative Movement: external assistance to the livestock sector is increasingly focusing on the establishment of herders associations with a view not only to facilitating relations between them and the auxilliary services at central and regional levels, but also to improving the management of pasture land and water resources indispensable to agricultural production. Under the Livestock Project II, 39 Pastoral Cooperative Associations (ACP) were set up bringing together 120 cooperatives. They have formed an association under a national banner, known as the Group of National Agro-Sylvo-Pastoral Associations (GNAASP). Although activities carried out vary from one cooperative to another, they generally relate to the management of the auto-revolving funds and small pharmacies and to the management of wells and natural resources. A major constraint to the actions of the ACP and cooperatives is the lack of material and financial means which limits their proper running and forces them to depend willy nilly on external assistance for survival. If this constraint is lifted the cooperatives and ACPs will in the long term have the potential to play an increasingly important role in managing pastoral resources and in providing inputs for livestock. 3.3.7 Agricultural Credit: although the Mauritanian banking market has surplus liquidity it cannot quite meet the demand of its customers nor satisfy the requirements of the poor. The five commercial banks in Mauritania finance almost exclusively import-export activities, are very seldom involved in agriculture and almost never in livestock activities considered too risky because of guarantee-related problems. 3.3.8 Apart from its role in industrial fishing, agricultural credit is still low key in Mauritania. In 1998, it accounted for scarcely 1% of all credit. The failure of the banking system and the lack of banking structures in the rural area is compensated by an increasing number of micro-finance institutions (MFI), in particular NGOs and mutual type structures which mobilise savings and distribute credit especially in the rural area. Among these structures are the Union Nationale des Coopératives Agricoles de Crédit et d’Epargne de Mauritanie [the National Union of Agricultural Credit and Savings Cooperatives in Mauritania] (UNCACEM) and the Caisses populaires d’épargne et de crédit [Popular Savings and Credit Fund] (CAPEC).

6 3.3.9 UNCACEM’s resources come from member subscriptions and several lines of credit granted by donor agencies ( IDA, KFW, FAD) under on-lending agreements. Its portfolio is estimated at UM 3 billion (12.5 million US dollars) and its commitments for the 1998 financial year totalled about UM 620 million including UM 473 million for the short term. The recovery rate is positive at around 90% for the short and medium terms. Initially set up to meet credit needs in the irrigated farming sub-sector, UNCACEM started diversifying its activities to cover other areas including the livestock sub-sector. UNCACEM has indeed, within the framework of the Integrated Irrigated Farming Development Programme (PDIAIM), financed by the World Bank, taken the stance to once and for all diversify its action in the irrigation sector. In particular, it has changed its procedures manual which stipulated that it was to «limit financing to irrigated rice farming», and has widened its scope of intervention to any agricultural activity that has proved profitable, including intensive herding. UNCACEM is provided with technical assistance under PDIAIM to enable it give concrete expression to its new choices. 3.3.10 The CAPEC Promoting Agency (PROCAPEC) is a network of popular funds established in the Valley and urban areas. It was established with the assistance of the Canadian International Development Institution Desjardins. However, its development has been the work of the ADF in collaboration with AMINA through the Poverty Reduction Project under which it was provided with considerable technical assistance for setting up the funds and replenishing them to grant micro-credit. Currently, the CAPECs are operating with some efficiency in the rural sector, collecting savings from members and organising credit distribution through the savings and credit funds. If they are well managed they could appropriately fill the gap left by regular bank credit institutions. 3.3.11 In traditional herding, money needs are met in part with proceeds from the sale of one or several units of the stock which is for the herdsman reserve capital and savings. This capital can also be used as «guarantee» for informal credit practised widely during lean periods. The most frequently used method consists in purchasing the required goods against a firm commitment to reimburse when cattle sale is at its most lucrative. 3.4 Sub-Sector Constraints The sub-sector faces several technical and institutional restricting forces. Technical constraints include in particular: i) uneven distribution of water causing over- or under-grazing depending on the spot; (ii) poor genetic potential of herd; iii) inadequate hygiene and medical coverage; iv) lack and high cost of veterinary products; and v) under-utilisation and development of livestock by-products. Institutional constraints include inter alia poor credit systems and MDRE’s lack of material and human means and thus, inadequate extension, research and training systems. 3.5 Government Policy and Strategy 3.5.1 The Government’s rural development strategy hinges on four main axes: i) helping to improve food security; ii) reducing poverty and improving the farmers’ incomes; iii) integrating agriculture into the national and international market; and iv) protecting and conserving natural resources.

7 3.5.2 With the prospect of a harmonious development of the livestock sub-sector, the Mauritanian Government set itself three cardinal objectives which underlie all livestock related activities. These are:

(i) development of the effective sub-sectors (milk, agro-industry, meat, hides and skins, poultry farming);

(ii) consolidating of public livestock services (animal health including prophylaxy of

animal diseases, epidemiological studies, cattle health supervision); and

(iii) management and development of range land (increased accountability of cooperative associations in the management of range land based on more or less exclusive rights).

3.6 Donor Intervention 3.6.1 Since the completion of the Livestock Project II, the livestock sub-sector has not benefited from any donor operation. The donor agencies are present in the rural development sector in general and finance activities that benefit livestock indirectly. For instance, two projects aimed at arresting the deterioration of natural resources including pastures, involve the village communities for as much as possible in the management of their land. The first is the Rainfed Crop Area Natural Resources Management Programme (PGRNP) financed by the World Bank and the second is the East Mauritanian Natural Resources Management Project (GIRNEM) financed through German cooperation. A second phase of the GIRNEM will target the development of migratory herding potential in East Mauritania. 3.6.2 Cofinanced by the World Bank, ADF, FND (National Development Fund), OPEC and the Mauritanian Government, the objectives of the Livestock Project II were to give renewed impetus to and reorganise the livestock sub-sector through specific actions: i) strengthening livestock services; ii) setting up pastoral associations; iii) creating a livestock input office; and iv) the Nouakchott slaughterhouse. Although this project introduced a network of pastoral cooperative associations (ACP) liable to serve as basis for the sub-sector’s harmonious development, it did not meet the other objectives because of poor management capacity and other institutional constraints such as: i) overly centralised management; ii) lack of autonomy in project management; and iii) frequent changes of project managers. Concerning project activities, one of the biggest drawbacks beneficiaries deplore is the little attention paid to range management and stock watering .

8 4. THE PROJECT 4.1 Project Design and Rationale 4.1.1 The project is consistent with the Government’s rural development strategy especially as it will help boost food security, reduce poverty and protect and conserve natural resources. The activities scheduled are in perfect harmony with the three objectives, and in particular the drive to improve range management which is key to livestock development in Mauritania. 4.1.2 This project’s design takes into account lessons learnt from the Livestock Project II (paragraph 3.6.2). With regard to the suggested objectives and activities, the project attaches great importance to range management and stock watering , essential to increasing Mauritania’s livestock productivity. The proposed facilities will not be imposed by the administration, but will be prompted by needs identified and expressed by the beneficiaries themselves through increased ACP participation in the decision-taking process. The project will play chiefly the role of adviser and catalyst. 4.1.3 An independent management unit will be set up to keep in check for as much as possible the administration’s interference in the project’s management. The Project Coordinator (Chief of the Management Unit) and the Administrative and Financial Officer will be recruited and not seconded from the Civil Service in order to secure genuine professionalism in the project’s management and avoid difficulties caused by frequent changes in project management. Nonetheless, the management team will be allowed more autonomy. The two functions are very sensitive and it is vital that they be allowed sufficient leeway to increase the project’s chances of success. 4.2 Project Impact Area and Beneficiaries 4.2.1 The project impact area covers seven (7) wilayas (regions) comprising the two Hodhs, Assaba, Brakna, Gorgol, Guidimaka and Trarza (see Map of Annex 1). The reasons behind the choice of these regions are several: (i) presence of at least one pastoral association; (ii) frequent stock feeding and watering problems; and (iii) degree of deterioration of natural resources. 4.2.2 Project activities will cover five very distinct impact areas: (i) the river valley and especially Trarza, where many milk producers are found; (ii) the Guidimaka region with a good arable land, forest and pasture potential; (iii) the semi-arid zone which stretches from the Atlantic Ocean (Trarza) to Hodh El Gharbi through Brakna and Assaba, a primarily pastoral region with a very fragile ecology and advanced desertification; (iv) the desert zone where farming is possible only in the oases; and (v) the coastal zone, rather desertlike with a cool climate and salty pastures used for peri-urban herding. 4.2.3 The main project beneficiaries are estimated at around 200.000 people in 32.000 families, members of 40 identified cooperatives. They own an estimated 55.000 cattle, 80.000 sheep, 38.000 goats and 15.000 camels or 70.000 TCU. This stock represents about 7% of the total in the project impact area estimated at almost one million TCU (30% of the national livestock). 4.3 Strategic Context

9 The project falls perfectly into line with the Government’s rural development policy as defined in paragraph 3.6.1, especially through its contribution to poverty reduction and its actions to protect and conserve natural resources. Furthermore, it is an answer to the specific objectives assigned the livestock sub-sector: (i) increased production of animal-related products; (ii) support to livestock structures ; (iii) beneficiary accountability in the management of their land; and iv) rural exodus control. By improving the living conditions of the farmers, the project will contribute to population settlement and thus to rural exodus control. 4.4 Project Objective The specific objective of the project is to improve the productivity of the Mauritanian livestock while increasing the stockbreeders’ incomes. 4.5 Project Description 4.5.1 To attain this objective the project will implement a series of activities around these components: A. range protection and rehabilitation;

B. livestock development;

C. support to operating structures; and

D. project management.

4.5.2 Project achievements are described below component by component: A. Range Protection and Rehabilitation 4.5.3 In order to enhance livestock productivity through wider and better natural grazing areas and watering points, through the preservation of water quality and soil fertility, and through the protection of the environment, the following inputs will be financed under the project:

(i) Stock Watering: activities under this framework will make it possible to open up new pasture land previously closed for lack of water. This will mean a more even distribution of grazing pressure over a larger expanse of land and less distances to cover for watering stock. In that regard, under the project, funds will be provided for the construction of 12 boreholes and the sinking of 45 wells equipped with manual, solar, or wind-operated pumps depending on the location of the watering point; funds will also be earmarked for deepening eight sand-filled ponds with a view to increasing the volume of water available for livestock.

10

(ii) Regeneration of Natural Range: in this context, grazing areas selected in consultation with the ACPs concerned will be prohibited so as to prevent the disappearance of the most endangered species, giving them time to regenerate naturally. 80 dromedaries will be purchased to survey the prohibited areas instead of the more costly and easily-damaged wire fence. The beneficiary cooperatives will, in collaboration with the EMPs work out the areas to protect and the terms for guarding and managing these areas.

(iii) Tree Plantation and Soil Rehabilitation: the purpose of this activity is to control

desertification and provide the animals with quality feed supplement. Under the project, seeds will be provided and technical assistance given to cooperatives interested so that they produce, plant and maintain the stands. Funds will also be provided under the project for 10 000 stands per cooperative or a total of 400 000 trees to be planted in the project impact area. Provision has also been made for ploughing the surface of abandoned soils to favour water penetration and regrowth of grass, and for enriching an area of 2.000 ha with pulses.

(iv) Firebreak: is intended to reduce heavy losses of natural fodder as a result of

bushfires; about 4 000 km of fire belts will be installed under the project.

(v) Grazing Improvements: the programme to improve the soils and natural range will comprise the construction of stone or earth dikelets to retain run-off water, decrease leaching and favour infiltration of rain water. This operation will involve a total of 4.000 ha at the rate of 100 ha per cooperative especially around the selected watering points.

(vi) Environmental Action Follow-up: a series of actions will be conducted with the

purpose of reducing the project’s negative impact. These include monitoring pastoral resources, rationally managing watering points and training stockbreeders in the techniques of environmental follow-up and management (paragraph 4.7.3). The mitigative actions identified by the environmental impact assessment will be carried out by DEAR within the framework of an agreement with the Project Management Unit (PMU). Under the project, funds will also be provided for the purchase of equipment to monitor pastures (GPS, sickles,…) and the changes in the water table (piezometres, conductivity meter, electric probe). DEAR will be provided with four (4) motorbikes to facilitate the movements of its technicians.

B. Livestock Development 4.5.4 Livestock productivity will be increased through mixed farming, more fodder reserves, better animal feed, promotion of barns, fattening of cattle-sheep and better animal health. In that perspective, the project will facilitate the award of credit to stockbreeders and cooperatives for activities likely to improve and develop animal production. The following actions have been listed as an indication:

11

(i) procurement of animal-drawn farming equipment including full units equipped with carts, ploughs, hoes, ridge plows, seed baskets, harrows, tillers;

(ii) establishment within the cooperatives, of cottage animal feed manufacturing

units, to process feed grade urea, produce urea-bran and mineral blocks;

(iii) purchase of draught units for mowing and straw bunching each comprising a tractor, mower and straw trusser;

(iv) construction of rural dairy cattle stables, peri-urban dairy cattle stables and peri-

urban holding ground for dairy camels; and

(v) promotion of small cattle and sheep fattening units.

4.5.5 A total of UM 527 million or UA 1.69 million will be provided for the identified credit structures in charge of distributing and managing the funds (see paragraphs 5.2.2 and 5.2.3 for more details). The cooperatives will be kept informed by the EMPs of the availability of credit and related practical terms. 4.5.6 In addition to these inputs for which the credit system will be used, funds will be provided under the project for the construction of 80 inoculation yards, two per cooperative. 50% of the cost of acquiring stocks of drugs one package per cooperative, will be put at the disposal of the cooperatives. The proceeds will be used to replenish an auto-revolving fund for veterinary inputs. 4.5.7 In a concern to help improve knowledge on the problems that inhibit the development of down-the-line animal production, minor studies on processing, preservation and marketing of livestock products and by-products including hides and skins will be carried out. The terms of reference of the studies will be prepared by the CGP in collaboration with the DPSE.

C. Support to Operating Structures 4.5.8 Project support will be provided to: (i) create pilot micro-funds for livestock credit in areas where there are no agricultural credit structures; (ii) improve the capacity of the Group of National Agro-Sylvo-Pastoral Associations (GNAASP) to organise, represent and intervene; (iii) build the intervention capacity of the DEA, DPSE and EMPs; accordingly, project funds will be used to finance the activities listed below. 4.5.9 Support for the Creation of Micro-Funds: under the project, 10 pilot Savings and Credit Cooperative Funds (CCEC) will be created in areas without a credit system, the two Hodhs in particular. The Micro-Funds will be provided with safes and various equipment in addition to the different lines of credit they will receive for financing income-generating activities (paragraph 5.2.5.).

12 4.5.10 Logistic Support to the CAPECs: in the form of computer equipment and office furniture to the recently-created CAPECs which are still under-equipped; through the project, they will be called upon to manage part of the micro-credit funds intended for stock breeding in peri-urban areas (see paragraphs 5.2.3-5.2.4). 4.5.11 Support to the GNAASP and ACPs: in the form of office and computer equipment. At the same time, members of the GNAASP offices and the 40 ACPs will be trained in cooperative management and organisation. At project start-up, the PMU will prepare training details (duration, curricula, topics, practical organisation) and the draft agreement to be signed with the DVRF which will be commissioned to implement the said programme (paragraph 5.2.1). 4.5.12 Support to the MDRE Structures: in order to enable the technical structures of the MDRE to work together effectively in the conduct of project activities, the DEA will be equipped with a cross-country vehicle for epidemiological monitoring and supervision and for the organisation of inoculation campaigns. The DPSE will also be provided with a cross-country vehicle and a set of computer equipment to enable it accomplish its mission of follow-up-evaluation and collection of data. D. Project Management 4.5.13 At central level, project implementation will be entrusted to the Project Management Unit (PMU) which will operate under the guidance of the DEA of the Ministry of Rural Development and the Environment (MDRE). The PMU will enjoy financial and management autonomy and will be headed by a Coordinator (veterinary specialist, animal technician, agro-economist or agronomist), assisted by the following officers seconded to the PMU by the MDRE: (i) a technical officer (animal technician or agronomist) who will be required to coordinate field activities; (ii) a rural engineer with expertise in stock watering and rural water supply; (iii) an animal technician with a long experience in pastoralism; and (iv) an agro-economist with experience in rural credit to coordinate credit activities. 4.5.14 The Coordinator will be assisted by an Administrative and Financial Officer; the two officers will be recruited through competition based on a short national and regional list in compliance with related ADF rules, and paid with project funds (paragraph 4.1.3). The qualifications and terms of reference of all PMU officers are given in Annex 5. In addition, the project will recruit support staff (accountant, secretary, drivers, etc) and defray the operating costs of the PMU (five vehicles, computer material and equipment, support staff salaries, mission allowances for all staff on mission, etc.). 4.5.15 At regional level, the MDRE will provide the project with staff to suit the needs of each wilaya: (i) a university level officer (veterinary specialist or livestock engineer); (ii) a senior livestock technician; (iii) a senior environmentalist technician. These three officers will form the mobile multi-purpose team (EMP) responsible for all contacts with the ACPs and stockbreeders. The Regional Delegations will provide the EMPs with offices. They will also be provided with a cross-country vehicle and two motors to facilitate their movements. The university level officer will play the role of team leader and regional coordinator. The qualifications and terms of references of this staff are also shown in Annex 5. 4.5.16 The services of a consultant, expert in micro-finance will be procured under the project for a maximum duration of 9 person-months. This expert will set in motion the credit system at project start-up in collaboration with the project’s agro-economist and will organise various

13 training sessions for the cooperative association members. His terms of reference are detailed in Annex 5. 4.6 Production, Marketing and Prices 4.6.1 The extra output resulting from the project in its 5th year is estimated at about 1000 tons of meat (all species combined) and 2.5 million litres of milk. These are relatively low quantities in comparison with the total production of the project impact area estimated at 17 000 tons of meat and 15 million litres of milk. Flow should therefore not raise any problems especially as there is local demand yet to be met. There are also possibilities of exporting live cattle to neighbouring countries, Senegal and Mali in particular. The marketing channels are well established: the main routes start from the production areas of the country’s south east (Hodh El Chargui, Hodh El Gharbi. Guidimagha, Assaba) to the consumer areas of the south west (Nouakchott) and north (Nouadhibou). 4.6.2 The producer prices of live cattle vary according to species and are on average: UM 300/kg for cattle and camel, UM 200/kg for sheep-goat and UM 100/kg for milk. These prices are subject to seasonal fluctuations but are generally considered as lucrative given the low rate of investment in extensive or semi-intensive herding. 4.7 Environmental Impact 4.7.1 In keeping with ADB guidelines for environmental assessment, and in view of the fact that the areas of extensive and nomadic herding are easily damaged, the project has been classified under category 1. Besides, a related in-depth environmental assessment (EIA) was conducted by the FAO’s Investment Centre Division and a summary of it was submitted to Board members for information on 11 July 2000. 4.7.2 The negative impacts could come primarily from: (i) desertification of the areas around the watering points and inoculation yards as a result of crowding of cattle in the same areas and over-grazing; and (ii) over-utilisation of water resources against their renewal capacity (lowering of the piezometric level in the wells/boreholes, mudding of the hillside dam). 4.7.3 The following very positive impacts will to a great extent outweigh those that are negative: (i) restoration of the range, increase in productivity, better long-term management of stockbreeding resources (grazing areas and watering points); (ii) better watering of cattle and opening-up of new grazing areas through with more watering points; iii) better livestock health status; (iv) better, more and safer animal production (meat and milk); (v) better food security, living conditions and less poverty in rural areas. 4.7.4 A series of accommodating measures have been worked out to attenuate the negative effects or strengthen the positive impacts. The measures planned for the physical environment are: (i) participation of beneficiaries in the definition and implementation of actions; (ii) management and maintenance of structures; (iii) monitoring of the water table through a series of piezometric measures; (iv) possible prohibition of grazing areas situated near watering points. From the human and institutional standpoints these steps will be taken: (i) preparation of plans for the occupation of land in the valley alongside a sensitisation and information campaign; (ii) demarcation of the cattle access passage to the river; and (iii) fodder crop development support.

14 4.7.5 70 million Ouguiyas has been earmarked for various measures the implementation and monitoring of which will be the responsibility of the DEAR. At regional level, the environmental technician will be required to sensitise stockbreeders and the ACPs to the problems of management and monitoring of environmental issues, and to maintain contacts with technicians of DEAR. 4.8 Project Cost 4.8.1 Project cost is estimated at UM 2.899 million, net of taxes and custom duties, or UA 9.30 million. This cost can be broken down as follows: UM 1.653 million in foreign exchange i.e UA 5.30 million (57%) and UM 1.245 million in local currency, i.e. UA 4.00 million (43%). Tables 4.1 and 4.2 below show cost breakdown by component and category.

Table 4.1 Project Cost Estimate by Component

Components In Million UM In Millions UA

L.C F.E. Total L.C. F.E. Total % F.E. A. Range Protection/Rehab.

532,964

490,874

1 023,838

1.71

1.57

3.28

48 B. Livestock Development

257,721

601,662

859,384

0.83

1.93

2.76

70 C. Support to Operating Structures

109,830

238,413

348,242

0.35

0.76

1.12

68 D. Project Management

165,669

104,711

270,380

0.53

0.34

0.87

39 Base Cost

1 066,184

1,435,660

2 501,844

3.42

4.60

8.02

57 Contingencies

100,015

134,423

234,438

0.32

0.43

0.75

57 Price Escalation

79,784

83,094

162,879

0.26

0.27

0.52

51 Total

1 245,983

1 653,178

2 899,161

4.00

5.30

9.30

57

Table 4.2

Project Cost Estimate by Category

In Million UM In Thousand UA Categories L.C. F.E. Total L.C. F.E. Total

% F.E.

Works 454,060 219,236 673,296 1.46 0.70 2.16 33 Equipment 12,285 621,001 633,286 0.04 1.99 2.03 98 Consultancy Services 35,97 68,40 104,37 0.12 0.22 0.33 66 Training 165,554 150,579 316,133 0.53 0.48 1.01 48 Credit 187,559 340,142 527,700 0.60 1.09 1.69 64 Operation 210,754 36,300 247,054 0.68 0.12 0.79 15 Base Cost 1 066,184 1 435,660 2 501,844 3.42 4.60 8.02 57 Contingencies 100,015 134,423 234,438 0.32 0.43 0.75 57 Price Escalation 79,784 83,094 162,879 0.26 0.27 0.52 51 Total 1 245,983 1 653,178 2 899,161 4.00 5.30 9.30 57

4.8.2 Prices were estimated on the basis of the unit cost for similar works carried out in Mauritania. These costs include a 10% provision for contingencies with the exception of the cost for national staff and consultancy services. The provision for price escalation on the local currency cost is 5%, representing the average anticipated inflation in Mauritania, and 2.5% on the foreign exchange cost (based on the average international inflation of the G-5 countries)1. 1 This inflation is estimated using the index for goods manufactured in the G-5 countries ( MUV Index), comprising the US, Germany, Japan, France and GB.

15 4.9 Sources of Finance 4.9.1 The project will be financed jointly by the ADF, OPEC, the Mauritanian Government and the beneficiaries as shown in table 4.3 below. The ADF loan will cover 60% of the foreign exchange cost and 45.5% of the local currency cost. The OPEC Fund will defray 35.2% of the foreign exchange cost and 17.10% of the local currency cost. The Government’s share, estimated at 8.27% of the total cost, will cover mostly national staff salaries, part of the PMU operating costs and the cost for training. The beneficiaries will take part in the development works on the grazing areas. Estimated at 9.50% of the total project cost, their contribution will be taken into account in the granting of the micro-credit funds.

Table 4.3

Sources of Finance (in million UA)

Sources F.E L.C. Total % Total ADF 3.18 1.82 5.00 54.46

OPEC 1.87 0.68 2.55 27.77

Government - 0.75 0.75 8.27

Beneficiaries 0.25 0.75 1.00 9.50

Total 5.30 4.00 9.30 100

Table 4.4 Expenditure Schedule by Component

(in million UA) Component 2001 2002 2003 2004 2005 Total A. Range Protection and Rehabilitation 0.99 0.80 0.82 0.83 0.38 3,82

B. Livestock Development 0.71 0.68 0.70 0.55 0.55 3,19

C. Support to Operating Structures 0.64 0.15 0.16 0.16 0.16 1,27

D. Project Management 0.27 0.20 0.19 0.17 0.18 1,02

Total Project Costs 2,61 1.84 1.87 1.71 1.26 9.30

Table 4.5

Expenditure Schedule by Category (in million UA)

Category 2001 2002 2003 3004 2005 Total

Works 0.59 0.53 0.54 0.56 0.31 2.53 Equipment 0.93 0.40 0.39 0.40 0.20 2.32 Consultancy Services 0.21 0.06 0.06 0.02 0.02 0.38 Training 0.25 0.22 0.23 0.23 0.24 1.17

16

Credit 0.44 0.46 0.47 0.31 0.30 1.98 Operation 0.19 0.18 0.18 0.19 0.19 0.93 Total Cost 2.61 1.84 1.87 1.71 1.26 9.30

4.9.2 The financing plan of the categories financed by the ADF is as follows:

Table 4.6 Summary of Estimated Costs by Category and by Source of Finance

Category In million UA Total

ADF OPEC GVT BEN

Works 1.01 0.92 - 0.60 2.53 Equipment 2.32 - - - 2.32 Consultancy Services 0.33 0.05 - 0.38 Training 0.82 0.34 - 1.16 Credit 1.58 - 0.40 1.98 Operation 0.52 - 0.41 0.93 Total 5.00 2.55 0.75 1.00 9.30

4.9.3 The ADF funds will cover all project categories. The ADF will defray part of the recurrent project implementation costs. The ADF’s financing of the local currency cost is justified by the nature of the project. Indeed, the project has targeted poverty reduction especially the fight against hunger and comprises high local currency costs because of the considerable use it will make of local material and labour. Moreover, the budget restrictions necessitated by the on-going macro-economic consolidation phase prevent the Government from meeting the entire local currency expenditure planned under the project.

5. PROJECT IMPLEMENTATION 5.1 Executing Agency 5.1.1 The project will be carried out by the Project Management Unit (PMU) within the Directorate of Livestock and Agriculture (DEA) of the Ministry of Rural Development and the Environment (MDRE). The MDRE will provide adequate premises that will serve as offices for the PMU. At regional level, the PMU will be represented by the mobile multi-purpose teams (EMPs) each comprising three officers. The EMPs will be housed in the regional delegations (paragraph 4.5.16). 5.1.2 The PMU will be run be a Coordinator recruited and paid by the project. He will be assisted by an Administrative and Financial Director (DAF), also recruited and paid with project funds and by a team of officers seconded to the project by the MDRE, comprising : i) a Technical Director; ii) a Rural Engineer; iii) a Livestock Engineer; iv) an Agro-economist specialised in credit (paragraphs 4.5.13 and 4.5.14). Soon after project start-up and pending the recruitment of the Coordinator and DAF, the Technical Director will assume the functions of coordinator of project activities and more specifically the duties relative to the recruitment of project officers.

17 5.1.3 The PMU will be responsible for: (i) designing and preparing action programmes and project budgets; (ii) coordinating, supervising and monitoring all project activities; (iii) preparing and monitoring bidding documents and disbursement requests; (iv) internally monitoring-evaluating the project as described in paragraph 5.6.1; and (v) preparing financial statements, monthly project implementation reports and monthly progress reports. It will ensure that the components concerning stockbreeders and farmers-stockbreeders are implemented in line with the project’s basic concept of beneficiary accountability through their effective participation in all actions and activities that concern them directly or indirectly. 5.1.4 A Steering Committee (CNP) will be established to guide, steer and supervise project implementation. The CNP will be chaired by the Secretary General of the MDRE and will comprise the following permanent members: the Director of the DEA, the Director of Water Resources, a representative of the Ministry of Economic Affairs and two representatives of the GNAASP. The CNP may if necessary, call upon any person whose competence may be of use in the conduct of its mission. The Project Coordinator will run the Secretariat. The CNP will meet at least twice a year; at the beginning of the year to examine and approve the work programme and budget of the project, and at the end of the year to evaluate results. 5.1.5 The various activities (boreholes, wells and various pastoral developments) to be implemented under the project by the 40 ACPs will be selected in concert with the beneficiaries. At a first phase, the requirements of the herdsmen will be identified and priorities determined during regional workshops organised in each wilaya at project start-up. Proposals will then be submitted to a Regional Joint Commission comprising the Regional Delegate, EMP members and a representative from each of the ACPs of the wilaya concerned. The eligibility criteria for the financing of activities will be previously defined by the PMU; they will include parameters based on the number of beneficiaries concerned, the size of the corresponding herd and the actual capacity of the ACP to participate in the management and maintenance of the proposed activities. 5.1.6 Documents on activities that meet the selection criteria will sent to the PMU for a final decision to be taken by the National Joint Commission chaired by the Director of Livestock and Agriculture and comprising the PMU Coordinator, the Technical Director, two representative of the GNAASP and a representative of the Water Resources Directorate. In addition to the criteria mentioned earlier, the decisions will take into account the availability of funds and whether the proposed activities are consistent with national priorities, and complementary with other possible programmes. The summary of actions necessary for water resources and other improvements are given in Annex 4. 5.2 Institutional Provisions 5.2.1 The PMU will call upon various specialised structures with experience in the fields relating to the project to conduct specific activities, in particular:

(i) The Directorate of the Environment and Rural Development (DEAR): for the follow-up of environmental activities (paragraph 4.7.4) ;

(ii) The Directorate of Research, Training and Extension Activities (DRFV): for all

training activities;

18

(iii) The Directorate of Policy, Follow-up and Evaluation (DPSE): for project follow-up-evaluation (paragraph 5.6.2).

5.2.2 The services offered by the specialised structures mentioned in paragraph 5.2.1 will be subject to agreements between each of these structures and the PMU. These agreements should state clearly among others, the nature of the activities to be carried out, the staff involved and the amounts to be paid. Draft agreements will be prepared by the PMU and submitted to the ADF for approval. Micro-credit Management 5.2.3 Soon after project start-up, the consultant in micro-finance recruited by the PMU will prepare draft agreements between the project and financial intermediaries selected for micro-credit management: UNCACEM and the PROCAPEC Agency. These agreements will state exactly the types of and fees for the credit services expected as well as eligibility criteria and terms for granting credit. The draft agreements discussed between the parties concerned will be submitted to the ADF for approval, following which the agreement will be signed between the financial intermediary concerned and Project Coordinator. 5.2.4 Based on the credit requirements of each financial intermediary, a line of credit will be provided and replenished with revolving funds deposited in an account opened in the name of the MFI. Sums reimbursed into this account will be used to replenish the Revolving Credit Fund. 5.2.5 In the semi-arid primarily pastoral areas located in the valley’s north and in the Hodh regions where the living conditions of the herdsmen are the most difficult and where there are no financial intermediary structures, about ten pilot savings and credit funds will be opened in the premises of the cooperatives concerned (paragraph 4.5.10).

19 5.3 Implementation and Supervision Schedules 5.3.1 The project will be implemented over a period of five years, in keeping with the provisional schedule indicated below. A launching mission will be fielded soon after loan effectiveness. The mission will explain to the PMU, various Bank rules of procedure for the procurement of goods and services and disbursement and assist in the preparation of the annual work plan and provisional budget. The Bank will conduct supervision missions twice a year during the first three years and at least one during the last two years of the project. A midterm review will be conducted during the third year of the project to assess progress and the need for possible change to project activities. 5.3.2 The project’s provisional implementation schedule is as follows:

(i) Appraisal : June 2000 (ii) Approval : Oct-Nov 2000 (iii) Signature of Loan Agreement : January 2001 (iv) Entry into Force of Loan : April 2001 (v) Preparation, launching of BDs and

Procurement of equipment : April 2001 (vi) Launch and implementation of designs

Range Management Plan : May 2001-January 2002 (vii) Recruitment micro-credit expert : May-August 2001 (viii) Establishment of EMP : May-August 2001 (ix) Agreement with DEAR and launch

of land and agro-pastor develop. : June 2001-2003 (x) Launch and implementation of various

studies and preliminary studies : June 2001-January 2002 (xi) Agreement with DRFV and introduction

of information programme, forming of pastoral associations : July 2001-April 2005

(xii) Establishment and operation of micro-credit : starting September 2001

(xiii) Start-up of UNCACEM/CAPEC credit : starting September 2001 (xiv) Launch of BDs and implementation

new boreholes and wells : Oct. 2001-October 2003 (xv) Launch of BDs and works to

rehabilitate watering points : Oct. 2001-October 2002

5.4 Provisions Relating to the Procurement of Goods and Services 5.4.1 The provisions relating to the procurement of goods and services are summarised in table 5.1 below. All goods, works and services financed by the Bank will be procured in accordance with the Bank rules of procedure for the procurement of goods and works, or its rules of procedure for the use of consultants, as the case may be, using the Bank’s appropriate standard bidding documents.

20

Table 5.1 Provisions Relating to the Procurement of Goods, Works and Services

In million UA

Categories LC OTHERS SL

Finan. Other than

of ADF Total

Consultancy Services 0.37 (0.33) 0.37

(0.33)

Training 1.16 (0.82) 1.16

(0.82) Credit 1.98 1.98 Goods Vehicles (0.31) (0.31) Equipment (2.01) (2.01)

Works 1.21 (0.75)

0.40 (0.26) 0.92 2.53

(1.01) Miscellaneous

Operation (0.52) 0.41 0.93 (0.52)

Total

9.30 (5.00)

(…) ADF Contribution 5.4.2 The PMU will be responsible for the procurement of goods, works and services required for project implementation. The Project Coordinator and Administrative and Financial Officer will be officers conversant with procurement procedures. More importantly, they will hold working sessions at the ADB in order to learn about procedures specific to the Institution and possible changes to the rules. The launching mission to be fielded soon after project start-up will also present and explain rules of procedure for the procurement of goods and services. 5.4.3 Goods and services financed by the ADF will be procured in compliance with its rules as follows:

i) local competition: for stock watering (wells, boreholes, overdeeping of ponds)

firebreak and inoculation yard works;

ii) competition based on a short list: for the recruitment of consultants, studies, works supervision, audit and midterm review. Considering the low amounts involved (less than UA 100 000), notices will be published at national and regional levels with the possibility of non-regional consultants to take part.

Other Modes of Procurement

i) national shopping: for vehicles and motors, equipment, small agricultural and computer equipment;

ii) direct negotiation: for training, environmental follow-up and management of the credit programme;

21

iii) goods required under the credit will be procured in compliance with business practices judged acceptable by the ADF.

General Information Notice on Procurement: the general information note on procurement (GIN) will be prepared by the PMU and published in Development Business, as soon as the loan proposal is adopted by the Board of Directors.

5.4.4 Review Procedures: the following documents will be submitted for review and approval by the Bank prior to publication: (i) special information note on procurement; (ii) bidding documents or letters of invitation to consultants; (iii) evaluation report on bids from enterprises, or suppliers or consultants proposals with recommendations on contract award; (iv) draft contracts, if those included in the bidding documents have been modified. 5.5 Provisions Relating to Disbursement 5.5.1 Disbursement by the Bank will be consistent with the expenditure schedule. The PMU will open three accounts in a well-known commercial bank in compliance with ADF rules of procedure for disbursement: (i) a special account for the ADF funds to cover operation and works on force account; (ii) an account for the resources of the ten micro-funds; and (iii) an account for the Government’s counterpart funds. Disbursements for operating expenses and range development works will be made using the special account method. 5.5.2 The request for the renewal of the special account should be accompanied by a programme of activities acceptable to the ADF, and if necessary, a summarised justification of the utilisation of the previous funds. The special account will be replenished to cover current expenses for a period of about four months of project activities. Payouts on contract for civil works, vehicles, consultancy services and other equipment will be made directly to the suppliers. 5.6 Monitoring and Evaluation 5.6.1 Internal monitoring of the project will be the responsibility of the Project Management Unit. It will be required to: (i) prepare before project start-up a reference situation with a set of quantifiable indicators that will evolve over time and linked with the objectives; (ii) monitor the trend of these indicators, phase by phase, during project implementation; (iii) compare results with projections; (iv) analyse the differences between results and projections; and (v) propose, if the need arises, measures aimed at adjusting or redirecting activities to attain the set objectives. 5.6.2 Alongside internal monitoring activities, the project will seek the services of the DPSE to carry out an external evaluation of project activities on the basis of an agreement signed between the CGE and DPSE. To that end, a reference situation and indicators will established at project start-up with a view to monitoring and assessing project trend. In that regard, the DPSE will have to conduct at least once a year, an exhaustive evaluation of achievements against projections. The DPSE will also contribute to the preparation of the midterm review. Its recommendations will be validated by a workshop with representatives from the Government and ADF. 5.6.3 The PMU will prepare and submit quarterly progress reports with details on project activities and status in relation to an annual work programme drawn in agreement with the ADF. The latter will organise two supervision missions a year to assist the PMU in the judicious management of the project.

22 5.7 Financial Statements and Audit A computerised system of project management and accounts will be established before activities start. The accounts and entries of outlays will be kept in separate registers to be audited annually by external independent auditors authorised by the ADF. Provisions have been made under the project to finance the audit. In addition, the special project account and the credit component entrusted to specialised institutions will be audited separately. The project accounting and financial department will provide half-yearly financial statements reflecting project performance and financial situation. 5.8 Aid Coordination 5.8.1 Aid will be coordinated by the Ministry of Economic Affairs and Planning in consultation with the sectoral departments. The various partners involved in development meet regularly within the framework of the Consultative Group. The new mechanisms for consultation between donor agencies and the Government include: i) the annual public expenditure review to ensure consistence between macro-economic and sectoral objectives; ii) quarterly meetings of the multilateral (World Bank, UNDP, IFAD, FAO) and bilateral agencies represented in the country. The Bank Group is invited and takes part regularly in these meetings. 5.8.2 The coordination of aid within the MDRE is the responsibility of the Directorate of Policies, Follow-up and Evaluation. This recently-created Directorate is required to take part in the design of the projects financed by the various donor agencies and ensure coordination. 6. PROJECT SUSTAINABILITY AND RISKS 6.1 Recurrent Costs 6.1.1 The recurrent expenses arising from project implementation are estimated at 290 million Ouguiya (UA 0.93 million) a year. The ADF will defray part of these expenses (up to 162 million Ouguiya) except the salaries of staff seconded by the Civil Service, for whom benefits will be provided under the project to enable proper implementation of project actions. The Government’s contribution will amount to 128 million Ouguiya and will cover staff salaries and part of the overheads.

23 6.1.2 At the end of project, the Government will continue to provide services like health and inoculation coverage that are indispensable to the development of livestock. The cost for maintaining infrastructure built under the project will be defrayed by the ACPs in the context of a cost recovery policy. Estimated at 100 million Ouguiya, these maintenance expenses will to a large extent be offset by charges levied for using the watering points which will generate an estimated 500 million Ouguiya per annum (at an average of 500 Ouguiya per annum and per TCU for 1 million TCU in the project impact area). 6.2 Project Sustainability 6.2.1 The project aims at creating the conditions propitious to sustainable development of the livestock sub-sector by improving range productivity and long-term management. All project actions fall into the same time frame since they will be implemented by specialised State structures in partnership with socio-professional organisations through the beneficiary cooperatives identified. In the field of credit, the project will make use of the decentralised savings and credit mutual-type structures that have already proved themselves in the rural area. They will manage the funds recovered and ensure thereby that services (supervision of credit and financing of operations) offered the target populations continue. 6.2.2 The participatory approach adopted in the context of this project’s implementation makes it indispensable to involve beneficiaries in the management of range and infrastructure. Accordingly, routine maintenance of water supply infrastructure, and range management will be the responsibility of the pastoral associations. Each watering point will be managed by a grassroot committee which will collect the charges and programme maintenance activities. 6.2.3 Thanks to this approach the populations will gradually develop their capacity for self-management and autonomy. The PMU’s various actions aimed at sensitisation, organisation and training during project implementation will help foster this behaviour pattern in the long term.

6.3 Major Risks and Attenuation Measures 6.3.1 The effects expected of project objectives may be jeopardised by two main risks. First, bad weather of the likes of the great drought of 1973 could nullify permanently efforts undertaken in the drive to develop livestock. Second, albeit to a lesser extent, the trend of the producer prices must remain lucrative and seen as such by the herders if they are to keep the required efforts going.. 6.3.2 The following assumptions underlie and condition the success of project achievements:

(i) total and voluntary beneficiary participation; (ii) judicious choice of technically feasible watering points;

(iii) availability of seeds for tree planting;

(iv) willingness of herdsmen to plant and tend the trees; (v) strict management of animal health products to enable an auto-renewal of stock;

24

(vi) a sufficiently high rate of recovery to enable the replenishment of a revolving credit fund; and

(vii) regular maintenance of range infrastructure and establishment of a cost recovery

policy by the ACPs for the sustainability of the activities. 6.3.3 The full success of project activities will also depend on external factors such as the degree of motivation of the staff seconded to the PMU and timely availability of the Mauriatanian Government counterpart funds. 6.3.4 Although it is likely that some of these assumptions are not borne out (totally or partially) during project implementation, efforts exerted under the project to make beneficiary participation more effective, especially through ACP training sessions and EMP sensitisation visits will to a high degree attenuate the risk. Furthermore, staff motivation could be improved with incentives provided under the project (travel allowances in particular). In order to avoid possible delays in its financial contribution efforts will be made to sensitise the Mauritanian government accordingly. 7. PROJECT BENEFITS 7.1 Financial Analysis 7.1.1 The financial analysis was made using three types of average-sized agro-pastoral units representing range herding, cattle fattening and sheep fattening. Based on the accepted assumptions and parametres, the cash flow expected of a range herding unit (13 sheep and 10 goats) is estimated at UM 21 289 or an increase in earnings of 45% against the situation before the project. Concerning semi-intensive cattle fattening, investments in the form micro-credits will make it possible for small-scale cattle farmers to earn a net additional income of UM 31.370 or 23% of the expenses over a period of four months. The net income expected of a sheep fattening unit is around UM 7 775 or 24% of expenses. The various operating accounts are given as annexes of volume II of the working document. 7.2 Economic Analysis 7.2.1 From the standpoint of overall rise in value added, the impacts will be limited because the project involves only about forty cooperatives. The increase in production under the effect of the project is estimated (year 5) at 1023 tons, as follows: 631 tons of beef, 81 tons of camel meat and 310 tons of mutton and goat meat at full development. In value, the project’s additional production would represent about UM 770 million in terms of animal production, at full capacity. Regarding milk production, actions under the project aimed at improving animal feed and health should lead to an additional milk production of about 2.5 million litres. This will cover part of the domestic demand estimated at 36 million litres. Moreover, thanks to the watering points and to range regeneration, the project will contribute indirectly to an increase in the production of other herdsmen located in the impact area. According to projections, overall increase in production will be about 17 000 tons of meat and 15 million litres of milk. 7.2.2 A cost/profit economic analysis has been made for a period of 20 years. The economic rate of return was calculated based on these assumptions:

25

(i) a conversion factor of 0.8% to take into overall account custom duties and taxes, as reflected in the cost estimate;

(ii) an operating rate of 10% for the cattle population, 9% for camels, 30% for sheep,

and 40% for goats;

(iii) an additional production of meat and milk converted to financial prices;

(iv) upon completion of the project, the water supply and range facilities maintenance costs are defrayed by the beneficiaries.

7.2.3 Based on these assumptions, the ERR is 16%, which is acceptable for a project of this nature that offers several social facilities. 7.3 Social Impact Analysis 7.3.1 The project’s target population comprises 6 400 farmers grouped into 40 cooperatives. According to the mode of operation and on the basis of an average family of five, 32 000 families could be directly concerned. The 40 cooperatives were chosen from 390 cooperatives totalling 60.000 members or a population estimated at 450 000, that is to say nearly 34% of the population of Mauritania. In all, 90 000 families will be concerned by the project (including 58.000 indirectly). 7.3.2 Furthermore, the project will contribute to modifying considerably the life styles of the people concerned. Indeed, the herdsmen and agro-herdsmen relieved of the daily chore of scouting about for water will have more time for other activities likely to increase their incomes and improve their living conditions. 7.4 Sensitivity Analysis A sensitivity analysis has been conducted with a view to determining the project’s rate of return against the possible shift in the assumptions made on cost and profit. Thus, a production increase of 15% will mean a one point increase in the ERR (from 16 to 17%). However, an increase of around 15% in the investments reduces the ERR to 14%.

26 8. CONCLUSIONS AND RECOMMENDATIONS 8.1 Conclusions 8.1.1 Mauritania’s agricultural sector is highly dependent on the vagaries of the weather and numerous socio-economic constraints. Accordingly, to ensure food security, reduce poverty and conserve natural resources for sustainable development and promote the integration of agriculture into the national and international markets, the Government directed its attention to livestock development and range management with a view to improving cattle productivity and increasing the incomes of those who earn a living from stockbreeding. 8.1.2 This project is consistent with the Government’s agricultural policy and will contribute to the harmonious development of the livestock sub-sector. 8.2 Recommendations and Conditions for Loan Approval Given the project’s objectives and on the basis of the above analyses, it is recommended that a loan of not more than UA 5.0 million from the ADF resources be granted to the Islamic Republic of Mauritania with the purpose of implementing the project as it is described in this appraisal report, subject to the following specific conditions: A) Conditions precedent to the entry into force of the loan:

Entry into force of the loan shall be subject to the fulfilment by the Borrower of the conditions under the provisions of Section 5.01 of the General Conditions.

B) Conditions precedent to first disbursement:

(i) provide the Fund with evidence of the creation of the Project Management Unit (paragraph 5.1.1);

(ii) provide the Fund with evidence of the opening of three accounts in the name

of the PMU into which funds for the operating costs, micro-fund activities and the Government’s counterpart will be paid (paragraph 5.5.1);

(iii) provide the Fund with evidence that the PMU has been given adequate

premises for its offices in Nouakchott and the EMPs in the Regional Delegations (paragraph 5.1.1);

(iv) provide the ADF with evidence that the PMU has been staffed with a

technical officer (agronomist or animal technician) a rural engineer and an agro-economist with experience in rural credit. The CVs of these officers shall be submitted to the ADF for prior approval (paragraph 4.5.13);

(v) provide the ADF with evidence of the creation of a National Project

Steering Committee responsible for directing and coordinating all project activities and comprising the following designated members: Secretary

27

General of MDRE (Chairman); Director of the DEA; Director of Water Resources; a representative of the Ministry of Economic Affairs; and two representatives from GNAASP (paragraph 5.1.4);

(vi) provide the ADF with evidence of the creation of a Regional Joint

Commission (comprising the Regional Delegate, EMP members, a representative of each cooperative of the region) and a National Joint Commission chaired by the Director of Livestock and Agriculture and made up of the PMU Coordinator, the Technical Officer, two GNAASP representatives and one of the Directorate of Water Resources (paragraph 5.1.5-5.1.6);

(vii) provide the ADF with evidence that OPEC has signed the loan agreement or

that it has undertaken to take part in the project’s financing plan (paragraph 4.9.1).

C) Other Conditions :

The Borrower shall furthermore:

(i) send to the ADF not later than six months after entry into force of the loan,

the agreements between the PMU on the one hand and each of the operating structures of the MDRE (DRFV, DEAR and DPSE) on the other, the drafts of which shall have been previously approved by the ADF (paragraphs 5.2.1-5.2.2);

(ii) provide, not later than six months after entry into force of the loan, the on-

lending agreements between the PMU on the one hand, and each of the MFIs (UNCACEM, PROCAPEC) on the other; the terms and conditions of which shall be previously approved by the ADF (paragraph 5.2.3).

ANNEX 1

ISLAMIC REPUBLIC OF MAURITANIA LIVESTOCK DEVELOPMENT AND RANGE MANAGEMENT PROJECT

MAP OF PROJECT IMPACT AREA

This map has been drawn exclusively for the use of the readers of the report to which it is attached. The names used and the borders shown do not imply on the part of the Bank Group and its members any judgement concerning the legal status of a territory or any approval or acceptance of these borders.

ANNE

P R O J E C T G R O S S C A N C E L - N E T D IS B . % A P P R O V . S IG N A - E F F E C T IV E C L O S IN G O B S E R V A T IO N S

L O A N L A T IO N L O A N D IS B . T U R E1 . A G R IC U L T U R ES tu d y o f 1 4 d am s in th e T ag an t reg io n (A D F ) 0 .1 7 0 .0 0 0 .1 7 0 .1 7 1 0 0 .0 0 1 6 /0 1 /7 4 0 4 /1 0 /1 9 7 4 3 1 /1 2 /7 6 2 8 /0 2 /7 9 C o m p le ted B o g h é P lain D ev elo p m en t (A D F ) 3 .9 6 0 .0 0 3 .9 6 3 .9 6 1 0 0 .0 0 2 6 /1 1 /7 4 1 8 /1 2 /7 4 3 1 /1 2 /7 6 3 1 /1 2 /9 0 C o m p le ted , P C R av ailab leC o n stru ctio n o f 3 2 sh ed s fo r g ra in sto rag e (A D F ) 6 .4 5 0 .8 5 5 .6 0 5 .6 0 8 6 .8 2 2 2 /1 1 /7 8 1 6 /0 5 /7 9 2 6 /0 7 /8 2 3 1 /1 2 /8 4 C o m p le ted , P C R av ailab leB o g h é P lain d ev elo p m en t sp p l (A D F ) 2 .5 5 0 .0 1 2 .5 4 2 .5 4 9 9 .6 1 1 1 /1 1 /1 9 8 2 2 4 /0 3 /8 3 3 1 /1 2 /8 3 3 1 /1 2 /9 0 C o m p le ted , P C R av ailab leL iv esto ck d ev elo p m en t (A D F ) 7 .4 1 0 .0 0 7 .4 1 6 .9 3 9 3 .5 2 1 8 /0 6 /8 6 1 6 /0 2 /8 7 0 9 /0 4 /1 9 8 7 3 1 /0 6 /9 9 C o m p le tedO p en in g u p an d d ev . o f m ed iu m -sized irrig atio n areas (A D F ) 1 0 .2 7 0 .0 0 1 0 .2 7 9 .5 4 9 2 .8 9 2 6 /0 6 /8 7 1 5 /0 2 /8 8 3 0 /0 3 /8 9 1 2 /3 1 /2 0 0 0 O n g in gA rtisan al F ish eries (A D F ) 5 .2 7 0 .0 0 5 .2 7 5 .1 5 9 7 .7 2 2 2 /0 6 /8 8 3 1 /0 8 /8 9 2 7 /0 6 /9 0 1 2 /3 1 /1 9 9 9 C o m p le tedS u p p o rt fo r th e fish eries sec to r (A D F )* 1 0 .1 3 0 .0 0 1 0 .1 3 1 .9 2 1 8 .9 5 0 1 /0 9 /1 9 9 3 2 8 /1 0 /9 3 0 8 /1 1 /1 9 9 4 1 2 /3 1 /2 0 0 1 O n g in gA H A d e B rak n a S tu d y (T A F ) 0 .7 9 0 .0 0 0 .7 9 0 .0 7 8 .8 6 2 0 /1 1 /9 7 2 7 /0 1 /9 8 0 3 /1 0 /1 9 9 9 3 1 /1 2 /0 0 A t sta rt-u p stag eA rtisan al F ish eries, p h ase 2 5 .0 0 0 .0 0 5 .0 0 0 .0 0 0 .0 0 1 2 /1 3 /9 9 0 1 /1 1 /2 0 0 0 0 3 /1 0 /1 9 9 9 3 1 /1 2 /2 0 4 A t sta rt-u p stag eT O T A L 5 2 .0 0 0 .8 6 5 1 .1 4 3 5 .8 8 7 0 .1 6 %

2 T R A N S P O R TT ran sm ag reb ian (A D F ) 8 .9 0 0 .0 0 8 .9 0 7 .7 8 8 7 .4 2 0 9 /1 1 /1 9 9 6 1 0 /0 3 /1 9 9 6 3 1 /1 2 /0 0T o ta l 8 .9 0 0 .0 0 8 .9 0 7 .7 8 8 7 .4 2 %

3 . P U B L IC U T IL IT IE ST eleco m m u n ica tio n d ev elo p m en t (A D B ) 0 .8 5 0 .0 0 0 .8 5 0 .8 5 1 0 0 .0 0 1 7 /0 5 /7 3 3 1 /1 2 /7 3 3 1 /1 2 /8 7 3 1 /1 2 /8 7 C o m p le tedN o u ak ch o tt W ater S u p p ly an d S an ita tio n (A D F ) 3 .3 2 0 .0 0 3 .3 2 3 .3 2 1 0 0 .0 0 1 0 /0 5 /1 9 7 4 0 4 /0 6 /1 9 7 4 3 0 /0 9 /7 6 3 1 /1 2 /8 1 C o m p le tedT eleco m m u n ica tio n s d ev elo p m en t su p p l. (A D F ) 0 .8 0 0 .0 0 0 .7 5 0 .8 0 1 0 0 .0 0 1 4 /1 0 /7 5 1 9 /0 2 /7 6 3 1 /1 2 /7 6 3 1 /1 2 /7 8 C o m p le tedN o u ak ch o tt W ater S u p p ly an d S an ita tio n S u p p l. (A D F ) 0 .8 3 0 .0 3 0 .8 0 0 .7 5 9 0 .3 6 2 6 /1 1 /7 6 2 1 /0 1 /7 7 3 0 /0 9 /7 8 3 1 /1 2 /8 1 C o m p le tedN o u ak ch o tt E lec trical C en tre (A D B ) 1 4 .8 6 0 .0 2 1 4 .8 4 1 4 .8 4 9 9 .8 7 1 2 /2 1 /1 9 8 2 2 4 /0 3 /8 3 0 9 /0 5 /1 9 8 6 3 1 /1 2 /8 9 C o m p le ted , P C R av ailab leS o u th -E ast R u ra l W ater S u p p ly (A D B ) 7 .7 7 0 .0 0 7 .7 7 5 .5 1 7 0 .9 1 2 1 /1 2 /8 2 2 4 /0 3 /8 3 0 9 /0 5 /1 9 8 6 1 2 /3 1 /2 0 0 0 O n g in g R eh ab ilita tio n o f N o u ak ch o tt W ater S u p p ly an d S an ita tio n (A D F ) 6 .9 4 0 .0 0 6 .9 4 6 .7 2 9 6 .8 3 1 2 /1 2 /1 9 8 5 3 0 /0 4 /8 6 3 0 /0 3 /8 9 3 1 /1 2 /9 7 C o m p le tedC o n stu c tio n 3 6 b o reh o les (A D F ) 3 .0 4 0 .1 2 2 .9 2 2 .9 2 9 6 .0 5 2 8 /0 2 /7 8 0 5 /0 4 /1 9 7 8 0 3 /1 2 /1 9 7 8 3 1 /1 2 /8 6 C o m p le ted , P C R av ailab leS u p p ly o f D W S to 1 0 cap ita ls (T A F ) 2 .0 0 0 .0 0 2 .0 0 1 .5 0 7 5 .0 0 0 2 /0 5 /1 9 9 1 1 2 /0 5 /1 9 9 2 1 2 /0 5 /1 9 9 1 3 1 /1 2 /9 7 C o m p le ted eT o ta l 4 0 .4 1 0 .1 7 4 0 .2 4 3 7 .2 1 9 2 .4 7 %

4 . IN D U S T R IE S A N D B A N K S G u elb s Iro n O re (A D B ) 5 .0 0 0 .0 0 5 .0 0 5 .0 0 1 0 0 .0 0 2 1 /1 1 /7 8 2 1 /1 2 /7 8 3 1 /1 2 /8 0 3 0 /0 6 /8 4 C o m p le ted G u elb s Iro n O re II (A D B ) 5 .0 0 0 .0 0 5 .0 0 5 .0 0 1 0 0 .0 0 2 3 /0 1 /7 9 1 5 /0 2 /8 0 3 1 /1 2 /8 0 3 0 /0 6 /8 4 C o m p le tedL in e o f C red it to U B D (fo rm er F N D ) (A D F ) 3 .6 8 0 .2 1 3 .4 7 3 .4 7 1 0 0 .0 0 1 8 /0 3 /8 6 3 0 /0 4 /8 6 2 4 /0 8 /8 7 3 0 /0 6 /9 6 C o m p le ted , P C R av ailab leS N IM R eh ab ilita tio n P ro g ram m e (A D F ) 1 2 .0 2 0 .0 2 1 2 .0 1 2 .0 1 0 0 .0 0 2 2 /0 6 /8 8 1 3 /0 1 /8 9 0 3 /0 4 /1 9 8 9 3 1 /1 2 /9 4 C o m p le ted , P C R av ailab leM 'H ao u d at Iro n E x p lo ita tio n (A D B ) 4 6 .8 1 1 .8 4 5 .0 1 4 5 .1 9 1 0 0 .0 0 1 7 /1 2 /9 0 0 8 /0 2 /1 9 9 1 2 1 /0 5 /9 1 3 0 /0 6 /9 6 C o m p le ted , P C R av ailab leT o ta l 7 2 .5 1 2 .0 3 7 0 .4 8 7 0 .4 8 1 0 0 .0 0 %5 . S O C IA LE x ten sio n o f H elah S ch o o l (A D F ) 1 .2 0 0 .0 3 1 .1 6 1 .1 6 9 6 .6 7 2 7 /0 2 /7 6 2 2 /0 3 /7 6 3 1 /1 2 /7 6 3 1 /1 2 /9 4 C o m p le tedT ra in in g C en tre fo r T each ers o f G en ra l E d u catio n C o lleg es (A D F ) 5 .5 3 0 .0 0 5 .5 3 5 .1 5 9 3 .1 3 3 0 /0 4 /8 1 2 5 /0 5 /8 1 1 4 /0 2 /8 2 3 0 /0 6 /9 9 C o m p le tedS tu d y o n th e H ealth S ec to r (A D F ) 1 .2 3 0 .0 1 1 .2 2 1 .2 2 9 9 .1 9 1 3 /0 2 /8 5 2 6 /0 7 /8 5 3 1 /1 2 /8 7 3 1 /1 2 /9 3 C o m p le tedR estru c tu rin g o f th e E d u catio n S ecto r (A D F ) 1 2 .7 3 0 .0 0 1 2 .7 3 1 1 .7 1 9 1 .9 9 1 0 /0 7 /1 9 8 9 3 1 /0 8 /8 9 3 1 /0 3 /9 0 3 0 /0 6 /9 9 C o m p le tedS u p p o rt fo r D S A (T A F ) 0 .7 0 0 .0 0 0 .7 0 0 .7 0 1 0 0 .0 0 1 6 /0 3 /9 1 0 9 /0 5 /1 9 9 1 0 5 /0 6 /1 9 9 1 3 0 /0 6 /9 6 C o m p le tedIm p ro v em en t o f P rim ary H ealth C are (A D F ) 9 .2 1 0 9 .2 1 4 .9 5 5 3 .7 5 2 3 /0 3 /9 2 2 9 /0 1 /9 3 2 5 /0 8 /9 3 3 1 /1 2 /9 8 O n g in g M icro -en trep rise (A D F ) 3 .2 3 0 .0 0 3 .2 3 0 .7 0 2 1 .6 7 1 1 /0 5 /1 9 9 7 1 8 /1 1 /9 7 0 8 /1 0 /1 9 9 8 3 1 /1 2 /0 4 O n g in gH ealth S ec to r S u p p o rt P ro g ram m e 1 0 .1 1 1 0 .1 1 0 0 0 3 /0 7 /1 9 9 9 1 1 /0 1 /2 0 0 0 5 /0 2 /2 0 0 0 1 2 /3 1 /2 0 0 4 A t lau n ch in g stag e S u p p o rt fo r D ev elo p m en t o f E d u catio n S y stem 5 .9 2 0 .0 0 5 .9 2 0 .0 0 0 0 6 /3 0 /1 9 9 9 0 9 /0 4 /1 9 9 9 1 2 /3 1 /2 0 0 4 A t lau n ch in g stag e T o ta l 4 9 .8 6 0 .0 4 4 9 .8 2 2 4 .5 9 4 9 .3 8 %

M U L T IS E C T O R S tru ctu ra l A d ju stm en t P ro g ram m e (A D F ) 1 3 .8 2 0 .0 0 1 3 .8 2 1 3 .8 2 1 0 0 .0 0 2 8 /0 8 /9 1 0 3 /1 2 /1 9 9 1 2 6 /1 2 /9 1 1 3 /1 2 /9 2 C o m p le ted , P C R av ailab leP u b lic R eso u rces M an ag em en t P ro g ram m e (A D F ) 7 .8 0 0 .0 0 7 .8 0 7 .8 1 0 0 .0 0 1 7 /1 2 /9 6 2 0 /1 2 /9 6 2 7 /0 2 /9 7 3 1 /1 2 /0 0 O n g in gS u p p lem en tary F in an cin g M ech an ism fo r 1 9 9 8 2 .1 8 0 .0 0 2 .1 8 2 .1 8 1 0 0 .0 0 1 5 /1 2 /9 8 1 3 /1 /9 9 1 2 /1 5 /1 9 9 9 3 1 /1 2 /0 0 C o m p le ted S u p p lem en tary F in an cin g M ech an ism fo r 1 9 9 9 2 .0 0 0 .0 0 0 .0 0 2 .0 0 1 0 0 .0 0 1 1 /2 6 /1 9 9 9 1 2 /1 5 /1 9 9 9 1 2 /2 1 /1 9 9 9 3 1 /1 2 /0 0 0 C o m p le tedM u ltisec to r In stitu tio n a l S u p p o rt 1 .0 5 0 .0 0 0 .0 0 0 .0 0 - T O T A L 2 6 .8 5 0 .0 0 2 5 .8 0 2 5 .8 0 1 0 0 .0 0

G ra n d to ta l 2 5 0 .5 3 3 .1 0 2 4 6 .3 8 2 0 1 , 4 5 8 1 .7 6 %

M A U R IT A N IAL IS T O F B A N K G R O U P O P E R A T IO N S

(A m o u n ts in U A 3 1 /0 8 /2 0 0 0 )

ANNEX 3

ISLAMIC REPUBLIC OF MAURITANIA LIVESTOCK DEVELOPMENT AND RANGE MANAGEMENT PROJECT

ORGANIZATION CHART

--------------------------------------------------------------- * Steering Committee comprising: General Secretariat (SG), Directorate of Livestock and Agriculture (DEA), Project Management Unit

(CG), Directorate of Water Resources (DH) and Group of National Agro-Sylvo-Pastoral Association (GNAASP).

Administration Accounts

Administrativeand FinancialDepartment

StockWatering

AnimalAgriculture

MobileMultipurpose

Team

TechnicalDepartment

ProgrammeManagement Unit

Directorate ofLivestock and Agriculture

Steering Committee*

ISLAMIC REPUBLIC OF MAURITANIA AnnexLIVESOCK DEVELOPMENT AND RANGE MANAGEMENT PROECT

List of Goods and Services(UA million)

LocADF OPEC BEN GOVT Total (Exc

Amount % Amount % Amount % Amount % Amount % F.E. Tax

I. Investment costs A. WORKS

Ponds 0.24 80.0 - - 0.06 20.0 0.00 - 0.30 3.2 - 0Range regeneration and improvement 0.45 50.8 - - 0.44 49.2 0.00 - 0.89 9.6 - 0Drilling 0.28 80.0 - - 0.07 20.0 0.00 - 0.35 3.7 - 0Various construction 0.04 3.6 0.92 92.8 0.04 3.6 - - 1.00 10.7 0.82 0

Sub-Total WORKS 1.00 39.7 0.92 36.5 0.60 23.8 0.00 - 2.53 27.2 0.82 1B. GOODS

Vehicles 0.31 100.0 - - - - - - 0.31 3.3 0.31Equipment 2.00 100.0 - - - - - - 2.00 21.5 1.96 0Various Goods 0.01 100.0 - - - - - - 0.01 0.1 0.01

Sub-total GOODS 2.32 100.0 - - - - - - 2.32 25.0 2.28 0C. SERVICES

Studies 0.16 77.5 0.05 22.5 - - 0.00 - 0.20 2.2 0.10 0Technical Assistance 0.11 100.0 - - - - 0.00 - 0.11 1.2 0.10 0Credit - - 1.58 80.0 0.40 20.0 0.00 - 1.98 21.3 1.26 0Training 0.83 71.0 - - - - 0.34 29.0 1.17 12.6 0.55 0Technical and Financial Audit 0.06 100.0 - - - - - - 0.06 0.6 0.05 0

Sub-Total SERVICES 1.16 32.9 1.63 46.2 0.40 11.2 0.34 9.6 3.52 37.9 2.07 1Total Investment Costs 4.48 53.6 2.55 30.5 1.00 11.9 0.34 4.0 8.37 90.0 5.17 3II. Recurrent Costs

A. Salaries - - - - - - 0.07 100.0 0.07 0.7 - 0B. Travelling Allowance 0.29 72.0 - - - - 0.11 28.0 0.40 4.3 - 0C. Operation Vehicles and Equipment 0.19 100.0 - - - - - - 0.19 2.0 0.11 0D. Overheads 0.04 14.1 - - - - 0.23 85.9 0.27 2.9 0.03 0

Total Recurrent Costs 0.51 55.6 - - - - 0.41 44.4 0.93 10.0 0.13 0Total Disbursement 5.00 53.8 2.55 27.4 1.00 10.7 0.75 8.1 9.30 100.0 5.30 4

ANNEX 5

ISLAMIC REPUBLIC OF MAURITANIA

LIVESTOCK DEVELOPMENT AND RANGE MANAGEMENT PROJECT

WATER RESOURCES INVESTMENTS INPUTS

Actions Prepared by Result Decision by 1.Information – sensitisation of the ACPs

EMP ACP are starting to prepare their requirements

ACP

2.Regional Workshops PMU Team, EMP

ACP requirements expressed

ACP

3.Wrap-up of proposal review – requirements based in the conclusions of the workshops

EMP Proposals-requirements summarised for the CPR

EMP

4.Submission of proposals to CPR

EMP Provisional list of water supply investments

CPR

5. Information of the ACPs EMP CPR decisions explained to the ACPs

EMP

6.Submission of the provisional list to CPN

CGP Final list of investments CPN

7.Information of the ACPs EMP CPN decisions explained to the ACPs

EMP

8.Surveys on the land regulations. EMP, ACP Administration Certification

ACP

9. Preparation of TOR for studies and BDs

CGP TOR studies and BDs prepared.

CGP

10.Shopping CGP Recruitment of consulting firms

CGP - FAD

11.Competition for enterprises CGP Recruitment of enterprises

CGP - FAD

12.Works implementation and supervision

Enterprises Offices

Works carried out

Abbreviation: ACP : Pastoral Cooperative Association EMP : Mobile Multi-Purpose Team PMU : Project Management Unit CPR : Regional Joint Commission CPN : National Joint Commission TOD : Term of Reference BDs : Bidding Documents

ANNEX 6 Page 1 of 4

ISLAMIC REPUBLIC OF MAURITANIA

LIVESTOCK DEVELOPMENT AND RANGE MANAGEMENT PROJECT

TERMS OF REFERENCE OF THE STAFF OF THE PROJECT MANAGEMENT UNIT 1) Project Coordinator: Experience The coordinator shall be an agro-economist, an agronomist or an animal technician by profession. He/she must have at least ten years of professional experience including at least five in rural development projects. He must have thorough knowledge of donor rules of procedure for procurement and master information technology. Description of Duties He/she shall be responsible for coordination, management, inspection and supervision of all project activities. Accordingly he/she shall be required to:

- manage, organise and supervise the entire PMU staff including the EMPs in the Regional Directorates, and make sure that the PMU duties are efficiently carried out;

- prepare a detailed implementation schedule for project components;

- establish coordination with other Directorates of the MDR involved in project

implementation;

- prepare agendas and run the secretariat of the National Steering Committee;

- prepare the terms of reference of the consultants, organise and manage their programmes and those of the national consultants;

- prepare periodically project progress reports; - organise the preparation of bidding documents, the evaluation of bids and the award of

the related contracts; and - ensure sound implementation of all project activities in line with accepted norms and

indicators. 2) Administrative and Financial Officer: Experience The administrative and financial officer shall hold a post-graduate level (finance, management, economy) training and at least five years of experience in agriculture or other fields considered equivalent.

ANNEX 6 Page 2 of 4

Description of Duties

The administrative and financial officer shall be responsible for managing the project’s administrative affairs and budget. In particular, he/she shall be required to design and implement the accounting and budget control system and take care of disbursement matters with donor agencies. He/she shall also contribute to the introduction of the credit system in collaboration with the entire team and in particular with the credit institutions concerned. He/she shall be in charge of preparing the project management report in collaboration with the various officers. Lastly, he/she shall help prepare bidding documents in collaboration with the technical team. 3) Technical Officer: Experience

He/she shall have 10 years experience in agricultural development projects and must be a veterinary specialist or agronomist – animal technician (livestock engineer) by profession.

Description of Duties He/shall be responsible for the coordination and technical monitoring of activities relating to

stock watering, land regeneration and development, livestock development, training of EMPs and cooperative organisations 4) Rural Engineer:

Experience

He/she shall have 10 years experience including at least 5 in the sinking of wells and

boreholes.

Description of Duties

He/she shall be responsible for preparing the terms of reference for the studies and corresponding BDs, and in collaboration with the consulting firms for the supervision of all works (boreholes, wells, ponds, firebreaks, etc..) to be carried out under the project or on force account.

5) Agricultural Engineer:

Experience

He/she shall have 10 years experience including at least 5 in agrostology and pastoralism. He/she shall in addition, have experience in cooperative organisations and associations.

ANNEX 6 Page 3 of 4

Description of Duties

He/she shall be responsible for the coordination and monitoring of actions aimed at better

protection, rehabilitation and rational utilisation of range (prohibited grazing, rotation, grazing capacity, selection of plant species) areas. 6) Agro-Economist:

Experience He/she shall have 10 years experience including at least 5 in micro-credit.

Description of Duties

He/she shall be responsible for preparing documents for establishment and management of micro-credit, for the training of EMPs and for the members designate of the Pastoral Associations. He/she shall also be required, with the official credit institutions for the coordination, technical monitoring and management of micro-funds. 7) Mobile Multi-Purpose Team:

A mobile multi-purpose team (EMP) comprising a livestock engineer, an animal health technician and a senior environmental technician will be set up in each of the 7 Wilayas involved in the project. This team will be attached to the PMU and its main tasks shall be to:

- inform the cooperatives about the project: objectives, method of operation, beneficiary participation;

- prepare regional workshops where the priorities of the cooperative will be discussed, as well

as general assemblies in each cooperative in order to inform them of the objectives and date of the workshop, and assist the cooperatives in appointing representatives to this workshop;

- have information sent from the cooperatives to the project unit: periodic reports on project

progress and problems encountered in the implementation of components in the region;

- spearhead the participatory consultation process within the cooperatives in the search for consensus on choice of investments, location and beneficiary participation;

- provide the cooperatives with technical support in the conduct of their duties under the

project: shingle spits, nurseries, tree plantations and fodder shrubs, prohibited grazing, management of stock of drugs;

- ensure coordination in the field with other projects in the impact area;;

ANNEXE 6 Page 4 of 4

- inform the regional delegate of the MDRE and the territorial administration of the project and

its progress.

The livestock engineer (animal technician) shall the position of manager of each. In addition to the duties specified above for the EMP, he/she shall be responsible for managing the team and means at its disposal (vehicles, computer equipment, advance fund). 8) Consultant Specialised in Micro-Credit:

He/she shall be recruited on the basis of a short list for a period of nine months (in two or three tranches) and will be required to:

- work out the method (the identification criteria and preliminary surveys in particular) for the establishment of about ten pilot Savings and Credit Funds within the cooperatives located in areas without MFI structures;

- prepare information and sensitisation campaigns on the award of credit in the project impact area with the support of the EMPs;

- prepare accounting and financial plans for the Savings and Credit Funds to be set up and the

procedures manual for granting microcredit;

- prepare draft on-lending agreements to be signed with the MFI structures identified (UNCACEM, PROCAPEC) to manage credit;

- prepare in collaboration with the MFI structures an annual indicative programme of the credit

requirements of the associations;

- support Fund members in the structure of their groups especially in the establishment of management institutions; and

- define a technical assistance and monitoring programme for Fund management activities.

ANNE

ISLAMIC REPUBLIC OF MAURITANIA

LIVESTOCK DEVELOPMENT AND RANGE MANAGEMENT PROJECT

DETAILED PROJECT COST

1 . B E E F

Y e a r 1 Y e a r 2 Y e a r 3 Y e a r 4 Y e a r 5 Y e a r 6 Y e a r 7 Y e a r 8 Y e a r 9 Y e a r 1 0 Y e a r 1 1 Y e a r 1 2 Y e a r 1 3 Y e a r 1 4 Y e a r 1 5 Y e a r 1 6

N u m b e r o f h e a d s a fte r p ro je c t 5 9 7 9 6 0 6 2 6 1 7 0 6 5 6 6 7 0 1 4 7 2 2 8 7 4 0 2 7 6 2 6 7 6 6 8 7 7 5 4 7 8 8 1 7 9 9 9 8 0 6 1 8 1 0 5 8 2 2 7 8 3 3 2N u m b e r o f h e a d s b e fo re p ro je c t 5 9 6 9 6 0 4 5 6 1 3 5 6 4 6 7 6 7 2 1 6 7 3 8 6 7 2 2 6 7 3 8 6 6 4 0 6 5 3 4 6 5 0 1 6 4 1 1 6 2 3 0 6 0 5 0 5 9 2 9 5 7 5 7B a la n c e s 1 0 1 7 3 5 9 9 2 9 3 4 9 0 6 8 0 8 8 8 1 0 2 8 1 2 2 0 1 3 8 0 1 5 8 8 1 8 3 1 2 0 5 5 2 2 9 8 2 5 7 5A d d . p ro d u c tio n in to n s 2 4 8 2 2 6 4 1 0 8 1 5 0 1 9 5 2 2 6 2 6 8 3 0 4 3 4 9 4 0 3 4 5 2 5 0 6 5 6 7

A d d . V a lu e in U M 1 0 0 0 9 0 6 6 0 1 1 2 2 2 3 1 0 6 5 3 4 1 9 3 3 8 1 5 5 3 7 0 4 4 8 8 0 5 8 6 0 8 6 7 8 4 8 8 0 5 2 0 9 1 0 8 0 1 0 4 8 0 8 1 2 0 8 4 6 1 3 5 6 3 0 1 5 1 6 6 8 1 6 9 9 5 0

2 .C A M E L M E A T

N u m b e r o f h e a d s s o ld a fte r p ro je c t 1 3 8 6 1 3 9 4 1 4 3 6 1 5 9 0 1 5 9 4 1 6 0 0 1 6 0 4 1 6 0 9 1 6 1 7 1 6 1 9 1 6 2 1 1 6 2 4 1 6 2 8 1 6 3 1 1 6 3 5 1 6 4 0N u m b e r o f h e a d s s o ld b e fo re p ro je c t 1 3 8 6 1 3 9 1 1 4 0 4 1 3 8 2 1 4 3 1 1 4 2 8 1 4 1 8 1 4 3 1 1 3 4 0 1 2 4 0 1 2 0 1 1 1 4 5 1 0 3 0 1 0 0 7 1 0 0 0 9 9 8B a la n c e s 0 3 3 2 2 0 8 1 6 3 1 7 2 1 8 6 1 7 8 2 7 7 3 7 9 4 2 0 4 7 9 5 9 8 6 2 4 6 3 5 6 4 2A d d . p ro d u c tio n in to n s 0 1 7 4 6 3 6 3 8 4 1 3 9 6 1 8 3 9 2 1 0 5 1 3 2 1 3 7 1 4 0 1 4 1

A d d . v a lu e in U M 1 0 0 0 9 0 0 1 9 8 2 1 1 2 1 3 7 2 8 1 0 7 5 8 1 1 3 5 2 1 2 2 7 6 1 1 7 4 8 1 8 2 8 2 2 5 0 1 4 2 7 7 2 0 3 1 6 1 4 3 9 4 6 8 4 1 1 8 4 4 1 9 1 0 4 2 3 7 2

3 .M U T T O N -G O A T M E A TS ta rt. P o p : 1 5 5 9 9 5

N u m b e r o f h e a d s s o ld a fte r p ro je c t 2 9 6 7 1 3 2 6 3 4 3 0 9 7 7 3 2 1 5 9 3 3 8 6 7 3 3 4 6 4 3 4 9 8 0 3 7 1 8 8 4 0 3 7 0 4 1 0 1 2 4 2 7 2 8 4 5 8 9 4 4 7 6 9 9 5 1 0 3 4 5 5 9 6 5 6 0 2 2 9N u m b e r o f h e a d s s o ld b e fo re p ro je c t 2 7 3 7 6 3 0 1 6 3 2 6 9 8 6 2 8 6 2 8 2 9 9 2 0 2 5 6 8 4 2 6 8 8 2 2 7 6 7 4 3 1 4 1 2 2 4 8 8 0 2 6 7 1 2 2 7 3 7 8 2 3 4 6 7 2 4 4 6 8 2 5 2 4 6 2 1 7 5 1B a la n c e s 2 2 9 5 2 4 7 1 3 9 9 1 3 5 3 1 3 9 4 7 7 7 8 0 8 0 9 8 9 5 1 4 8 9 5 8 1 6 1 3 2 1 6 0 1 6 1 8 5 1 6 2 4 2 3 2 2 6 5 6 6 3 0 7 1 9 3 8 4 7 8A d d . p ro d u c tio n in to n s 6 9 7 4 1 2 0 1 0 6 1 1 8 2 3 3 2 4 3 2 8 5 2 6 9 4 8 4 4 8 0 5 5 5 7 2 7 7 9 7 9 2 2 1 1 5 4

A d d . v a lu e in U M 1 0 0 0 9 0 1 3 7 7 0 1 4 8 2 6 2 3 9 4 6 2 1 1 8 6 2 3 6 8 2 4 6 6 8 0 4 8 5 8 8 5 7 0 8 4 5 3 7 4 8 9 6 7 9 2 9 6 0 9 6 1 1 1 0 9 6 1 4 5 3 9 2 1 5 9 3 9 6 1 8 4 3 1 4 2 3 0 8 6 8

M IL K 1 .E x t. H e rd o f S h e e p /G o a ls

M ilk p ro d u c tio n a fte r p ro je c t (to n s ) 1 9 5 5 1 6 9 4 1 3 5 8 1 7 1 3 1 6 7 2 1 5 5 1 1 6 8 7 1 6 9 6 1 6 9 0 1 6 3 7 1 8 4 0 1 8 5 3 1 6 8 5 1 8 4 4 1 8 2 1 1 6 6 9M ilk p ro d u c tio n b e fo re p ro je c t ( to n s ) 1 8 1 8 1 7 2 1 1 3 7 1 1 6 2 4 1 5 5 8 1 2 8 1 1 4 2 3 1 4 2 6 1 3 8 5 1 1 7 9 1 3 3 3 1 3 2 2 1 1 2 9 1 2 1 7 1 2 3 5 1 0 6 5

A d d . P ro d u c tio n v a lu e (U A 1 0 0 0 ) 9 0 1 2 2 9 5 -2 4 3 8 -1 1 0 2 8 0 4 4 1 0 2 8 4 2 4 3 4 5 2 3 7 4 3 2 4 3 1 8 2 7 4 1 2 4 1 2 5 1 4 5 6 8 3 4 7 7 7 2 5 0 0 4 0 5 6 4 7 1 5 2 7 1 3 5 4 3 4 0

2 . E x t. H e rd o f S h e e p /G o a ts

M ilk p ro d u c tio n a fte r p ro je c t (to n s ) 1 1 6 3 1 3 5 5 1 2 3 6 1 1 2 2 1 2 5 3 1 2 3 6 1 2 2 9 1 3 7 1 1 4 5 4 1 4 2 9 1 5 2 6 1 6 3 3 1 8 2 5 1 9 0 4 1 9 8 4 2 2 7 9M ilk p ro d u c tio n b e fo re p ro je c t ( to n s ) 1 0 3 1 1 2 1 9 1 0 9 6 9 2 8 1 0 6 5 1 0 2 5 8 2 3 9 8 0 1 0 2 6 1 0 0 9 8 2 5 9 5 9 9 4 0 7 5 3 9 2 4 8 6 5

A d d . P ro d u c tio n v a lu e (U A 1 0 0 0 ) 9 0 1 1 9 3 3 1 2 2 7 1 1 2 5 9 4 1 7 4 5 2 1 6 9 6 2 1 8 9 9 4 3 6 5 4 7 3 5 1 7 3 3 8 5 8 3 3 7 7 9 1 6 3 0 8 0 6 0 7 3 3 7 9 6 8 1 1 0 3 5 6 6 9 5 4 6 5 1 2 7 2 4 1

3 .T ro u p e a u la itie r d u T ra rz a

A d d . p ro d u c tio n 7 5 1 5 0 2 2 5 3 7 5 5 2 5 6 0 0 6 7 5 7 5 0 7 5 0 7 5 0 7 5 0 7 5 0 7 5 0 7 5 0 7 5 0 7 5 0A d d . P ro d u c tio n v a lu e (U A 1 0 0 0 ) 9 0 6 7 5 0 1 3 5 0 0 2 0 2 5 0 3 3 7 5 0 4 7 2 5 0 5 4 0 0 0 6 0 7 5 0 6 7 5 0 0 6 7 5 0 0 6 7 5 0 0 6 7 5 0 0 6 7 5 0 0 6 7 5 0 0 6 7 5 0 0 6 7 5 0 0 6 7 5 0 0

T O T A L A D D . V A L U E U M 4 5 4 0 8 3 9 4 7 9 6 0 1 1 0 1 0 0 6 9 3 1 2 8 2 7 4 3 1 0 7 4 0 2 2 6 7 8 4 2 5 4 4 3 1 2 7 3 3 7 4 3 4 8 8 6 8 3 9 1 1 5 9 4 2 3 5 2 2 5 0 2 9 2 7 5 6 3 7 4 7 5 9 3 5 7 1 6 9 2 2 7 1

P R O J E C T C O S T S (0 .8 fc ) 0 .8 5 1 9 4 5 1 4 4 5 2 6 7 3 3 1 0 3 3 2 3 4 6 7 1 5 0 6 2 8 5 0 6 2 8 5 0 6 2 8 5 0 6 2 8 5 0 6 2 8 5 0 6 2 8 5 0 6 2 8 5 0 6 2 8 5 0 6 2 8 5 0 6 2 8 5 0 6 2 8 5 0 6 2 82 4 7 4 2 1 2 0 1 5 7 6 1 1 1 7 2 4 1 2 4 1 2 4 1 2 4 1 2 4 1 2 4 1 2 4 1 2 4 1 2 4 1 2 4 1 2 4 1 2 4 1

B A L A N C E -4 7 4 0 4 3 -4 0 5 7 8 8 -2 7 0 9 2 3 -1 3 3 9 7 8 7 7 6 4 6 2 6 0 1 1 3 1 7 6 1 5 6 2 0 3 8 0 3 2 2 2 7 4 6 2 9 8 2 4 0 3 4 0 5 3 2 3 7 2 8 9 5 4 5 2 2 9 9 5 1 3 1 2 0 5 4 2 9 4 3 6 4 1 6 4 3

IR R 1 6 %

R e tu r n E co n o m ic R a te o f

Annex

MAURITANIA: LIVESTOCK DEVELOPMENT AND RANGE MANAGEMENT PROJECT

CORRIGENDUM TO THE APPRAISAL REPORT

Paragraphs 5.4.1 to 5.4.3 have been modified as follows: 5.4.1 The provisions relating to the procurement of goods and services are summarized in table 5.1 below. All goods, works and services financed by the Bank will be procured in accordance with the Bank rules of procedure for the procurement of goods and works, or its rules of procedure for the use of consultants, as the case may be, using the Bank’s appropriate standard bidding documents.

Table 5.1 Provisions relating to the Procurement of Goods, Works and Services

In UA Million

Categories LC IC OTHERS SL Finan. Other

than of ADF Total

Consultancy services 0.38 (0.33)

0.38 (0.33)

Training 1.16 (0.82) 1.16

(0.82) Credit 1.98 1.98 Goods

Vehicles 0.31 (0.31) 0.31

(0.31)

Equipment 1.46 (1.46) 0.55

(0.55) 2.01 (2.01)

Works 0.35 (0.35)

1.57 (0.66) 0.61 2.53

(1.01) Miscellaneous

Operation 0.52 (0.52) O.41 0.93

(0.52) Total

2.12 (2.12)

1.57 (0.66)

2.23 (1.89)

0.38 (0.33) 3.00 9.30

(5.00)

IC = International competition LC = Local competition Others = Direct negotiation and national shopping SL = Short list ( ) = ADF financing * Funding by OPEC, the Government and beneficiaries, using procedures that differ from those of the ADF. 5.4.2 The PMU will be responsible for the procurement of goods, works and services required for project implementation. The Project Coordinator and the Administrative and Financial Officer will be conversant with procurement procedures. More importantly, they will hold working sessions at the ADB in order to learn about procedures specific to the Institution and possible changes to the rules. The launching mission to be fielded soon after project start-up will also present and explain rules of procedure for the procurement of goods and services. 5.4.3 Goods and services financed by the ADF will be procured in compliance with its rules as follows:

2

Civil Engineering Works i) Local competition for construction of cattle inoculation centres, firebreaks and over-deepening of ponds. Each contract shall not exceed UA 150 000; Goods i) International competition for the procurement of equipment and works on wells and boreholes, and supply of vehicles and motor-cycles; ii) Local shopping for small agricultural equipment and computer hardware not exceeding UA 50 000.

Services i) Service contracts for recruiting consultants, conducting studies, monitoring works, auditing the project and carrying out the mid-term review will be awarded based on a short list; ii) Services in connection with training, environmental monitoring and follow-up will be negotiated directly with the Directorate of Research, Training and Extension Services (DRFV), the Directorate of Environment and Rural Development (DEAR) and the Directorate of Policies, Follow-Up and Evaluation (DPSE), respectively, all of which have the necessary experience and equipment to conduct such operations. The framework agreements stating the missions, budget and procurement methods throughout the project duration will cover the funding of consultancy services and related operating expenses in accordance with Bank rules of procedures.

Credit Goods and works under credit will be procured in compliance with business practices judged acceptable by the ADF.