Document of

The World Bank

FOR OFFICIAL USE ONLY

CA /? G4iS- 4@c

Reprt No - 5720-AU

STAFF APPRAISAL REPORT

ISLAMIC REPUBLIC OF MAURITANIA

SECOND LIVESTOCK PROJECT

January 13, 1986

Western Africa Projects DepartmentAgriculture C

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

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CURRENqCY EQUIVALENTS

Currency Unit =Ougujyas (UN)US$L0 - U' 80UK 1 mIIlion - US$ 12,500

SYS OF WEIGHTS AND MEASURES: METRC

Metric British/US Equivalents1 Meter (n) 3.28 feet1 Kilogram (kg) 2.20 pounds1 Metric ton (=t) 0.98 long tonsI Hectare (ha) 2.47 acresI KUiometer (k1) 0. 62 miles

ABBREVIATIONS AND ACRONYMS

AfDF AfricaTn Development EuldBIE Bureau des Iutrants pour RElevage

(Livestock Input Service)CBPP Contageous Bovine PleuroPneumoniaCNERV Centre National d'Elevage et de Recherche

V-trinaire (National Livestock Research Center)DNE Direction Nationale de 1l'Elevage (Livestock

Department)ENFRV Ecole Nationale de Formation et Vulgarisation

Rurale (National Training and Rural ExtensionSchool)

FAO Food and Agriculture Organization of the UnitedNations

FED Fonds Europ&en de Developpement (EuropeanDevelopment Fund)

FND Fonds National de Developpement (NationalDevelopment Fund)

IER Institut d'Economie Rurale (Rural EconomyInstitute)

MDR Ministere du Developpement Rural (Ministrv of RuralDevelopment)

OPEC Organization of Petroleum Exporting CountriesPHARMARIM Societe Mauritanienne de la Commercialisation des

Produits Pharmaceutiques (MauritanianPharmaceutical Marketing Company)

SOMECOB Societe Mauritanienne de la Commercialisation duBetail (Mauritanian Livestock Marketing Company)

SOHALIDA Societe Mauritano-libyenne pour le DeveloppementAgricole (Mauritano-Libyan Agricultural DevelopmentCompany)

SONADER Societe Nationale de Developpement Rur:'l (NationalRural Development Company)

TLU Tropical Livestock UnitUNDP United Nations Development Program

FISCAL YEAR

Government: January I - December 31

FOR OmCIL USK ONLYISLAMIC REPUBLIC OF MAURITANIA

SEOND LIVESTOCK PROJECT

TABLE OF CONTENTS

P.e

DOCUMENTS CONTAINED IN PROJECT FLE ............................... iii-iv

CREDIT AND PROJECT SUMKAR Y ........................................ v-vil

I. BACKGROUND ................................................... 1

A. Introduction ............................................ 1B. Country Characteristics ................................. IC. The Resource Base....................................... 2D. The Economic Setting ........................ 3.--......- 3E. Agricultural Sector Issues and Strategy ................. 4

UI. THE LIVESTOCK SUB-SECTOR ..................................... 6

A. Background .............................................. 6B. Production and Markets .................................. 7C. The Institutions ........................................ 8D. Livestock Projects .......................---.-........ 9

III. THE PROJECT .................................................. 10

A. Project Objectives ...................................... 10B. Summary Description ..................................... 12C. Detailed Features ....................................... 13

1. Establishment of Pastoral Cooperative Associations. 132. Systems Studies, Monitoring and Preparation

of Follow-On Projects ., 153. Distribution of Production Inputs. . ......... 164. Strengthening of Livestock Services .......... 185. Production Improvement Fund ........................ 226. The Nouakchott Abattoir ............................ 23

This report is based on the findings of an appraisal mission in October1983 which consisted of E. Nagele (Economist), 0. Bremaud, Y. Paugam,C. Marmignon, L. Anthoserre (consultants) and P.A. Sihm (LivestockSpecialist and Mission Leader). The data were updated by post appraisalmissions by Messrs. P. Sihm, E. Niagele and G.M. de Wit. The report wasedited by Michale Moriarty and processed by Estelle Lalande and JacquesBourgoin.

IThis doczuent ha. a ruticmd disftibtimonad may be used by recipient onl n fth perfornu.nc of theidr atiie duti Its mono many not odhewis be dislosd without Wold Dank autorzaton

-ji-~~~~~~~~~IW. 1COT AUD FINANCIG ....................... 23

A. Project Costs ............. 23B. Financing Pln ............ 25C. Procurement ................. 26D. Disbursen et 29E. Accounts, Audit and Reporting . .29

V. OAGANIZATION D MANAGcE,ENT . 30

A. Project Implementation and Present Status of Project 30B. Input Distribution .31C. Livestock Fund .......................................... 32D. The Pastoral Cooperative Assciations .32E. Training ........................... ,,,,,,. 33

VI. FINANCIAL RESULTS .33

VII. BENEFITS. JUSTIFICATION AND RSK .34

A. Benefts .34B. Economic Justification .................................. 35C. Risks................................................... 36

VIII.ASSURANCES AND RECOMENDATIONS .37

ANNEXES

1-1 New Trends in Pastoral Development1-2 Legal Aspects of Pastoral Cooperative Associations

2 Budget of the Directorate of Livestock and Regional LivestockServices

3-1 Systems Studies, Monitoring and Project Preparation3-2 Livestock Input Distribution Unit3-3 Strengthening of Livestock Services - Field Staff Numbers and

cost3-4 Investments in Infrastructure and Buildings3-5 Investment in Vehicles, Cold Chain and Veterinary Equipment3-6 Terms of Reference for Technical Assistance3-7 Terms of Reference of Financial Director of BIE

4-1 Estimated Disbursement Profile of IDA Credit4-2 Total Project Costs by Project Component4-3 Project Components by Year

5-1 Flowchart of Livestock Services5-2 Project Implementation Schedule

6 Projections of Revenue for the Livestock Fund and Special ImportFee

7 Economic Analysis

IBRD No. 18303: Mauritania - Veterinary Installations

£ *

ISLAMIC REPUBLIC OF NRTNI&

SECOND LIVESTOCK PROJECT

DOCUMENTS CONTAINED IN PROJECT FILE

A. Report and Studies Related to the Sector Code

1. Resource Inventory of Southwestern Mauritania: Geology,Soils, Forestry, Pasture, Remote Sensing Institute, 221.904South Dakota State Unlversity; 1982. (Al)

2 vols2. Projet RAMS, "Mission d'Etudes et d'Evaluation du Secteur

Rural et des Ressources Humaiues", Checchi and Company,Louis Berger International, Action Programs International;1979 221.904

(A2)3. "La Culture et la societe pastorale maure dans une

dynamique de diveloppement", Giancarlo Castelli Gattlnara,El Joud ould Saleck, Abmed Aidara, FAD; June 1979. 221.904

(A3)4. "L'Agropastoralisme en Mauritanie - Perspectives de

Recherche, IEMVT; 1983. 221.904sA)

B. Selected Reports and Studies Relating to the Project

1. "Renforcement du service de l'elevage et formation"' 221.904Document de travail, 0. Bremaud; 1983. (B1)

2. "Etude de l'organisation de la direction de l'elevage", 221.904Yves Paugam & Cie FIDU S.A.; 1984. (B2)

3. "Hydraulique pastorale", L. Authoserre; October 1983. 220.918

4. "Projet de financement pour un projet de developpementde 1'glevage dans le Sud-Est mauritanien - Tome II:Dossier de presentation des op6rations preconisees', 221.904SEDES; February 1981. (B4)

5. "Projet d'abattoir pour la ville de Nouakchott", 221.904Sid'ahmed ould Kenkou; August 1983. (B5)

6. "Projet pilote d'inventaire et de surveillance continuedes ecosystemes pastoraux saheliens", ISRA, Bulletin 221.904d'information No. 2; Juillet 1983. (B6)

7. "Second projet de developpement de l'elevage: Rapportde preparation", BDPA; January 1983. 129.171

C. Selected Staff Working Papers

1. Project Performance Audit Report: MauritaniaLivestock Development Project, Credit 273-MAU, OED;November 21, 1980. CR 273-MAU

-iv-

2. Livestock Development II - Training Component. 221.904D. Gooday; December 1984. (C2)

3. "Distribution des produits pharmaceutiques etbiologiques veterinaires et des aliments de betailpar le Bureau des Intrants pour l'Elevage. 221.904

(C3)4. MAD/Proposed Second Livestock Project: Legal Aspects.

Note to Files. Rudolf van Puymbroeck. July 30, 1984. (C4)

ISLAMIC REPUBLIC OF MAURITANIA

SECOND LIVESTOCK PROJECT

CREDIT AND PROJECT SUMMARY

Borrower: Government of the Islamic Republic of Mauritania.

Beneficiaries: Livestock Owners forming Pastoral CooperativeAssociations (PCA); Livestock Department (DNE); andManicipality of Nouakchott.

Credit Amount: SDR 7.2 million (US$ 7.6 million equivalent).

Terms: Standard

Relending Terms: Borrower to DRE as a grant.

Project Objectivesand Description: The proposed project seeks to slow the deterioration of

the grazing areas and to boost productivity by makinggroups of pastoralists responsible for allocatedgrazing areas, by providing better services andproduction inputs, and by increasing the knowledge oflivestock production systems essential to theformulation of a develop=ent policy and to the planningof future interventious. Main project components are:(a) a pilot component for the establishment of pastoralcooperative associations; (b) the study of livestockproduction systems, project monitoring and thepreparation of projects; (c) distribution of productioninputs for sale to livestock owners; (d) strengtheningof livestock services; (e) estabJishment of a LivestockFund and a production improvement fund; and (f)constructior of a small abattoir in Nouakchott.

Benefits ard Risks: All project beneficiaries are livestock owners whowould receive better public livestock services. Thoselivestock owners who form pastoral associations wouldbenefit from the allocation of grazing rights, thusgaining an incentive and the possibility to introduceimproved resource management. Better knowledge ofproduction systems would facilitate the adoption of acoherent livestock development policy, and the costrecovery procedures would lead to a nore efficientlivestock service; both would eventually result inbetter resource management and higher productivity.The project entails considerable risks, however. Thediminishing rainfall experienced in recent years couldprove to be part of a secular downward trend, in whichcase the livestock subsector would have to be based oncamel and goat production and on producer subsistence,as opposed to production for market. The pastoral

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associations may not proliferate and resourcemanagement may therefore not be introduced. Livestockowners, who have considerable political power, mayresist cost recovery, without which livestock serviceswould remain at their present level of operation.These risks are judged acceptable, however, given thatfailure to intervene in the subsector entails the muchhigher risk of further deterioration in the subsector'spotential and a continued decline in the rural standardof living.

Estimated Project Costs (net of identifiable taxes and duties) a/:

Local Foreign TotalSS$ million

Pastoral Cooperative Associations 0.2 1.1 1.3Systems Studies and Monitoring 0.5 1.0 1.5Distribution of Production Inputs 0.2 1.5 1.7Livestock Services:

Management 0.3 0.8 1.1Animal Health 1.0 1.3 2.3Animal Production 0.8 0.8 1.6Training 0.3 0.8 1.1

Abattoir Construction 0.2 0.8 1.0PPF Advance - 0.5 0.5

Base Costs 3.5 8.6 12.1

Physical Contingencies 0.3 0.9 1.2Price Contingencies 1.4 1.8 3.2Implementation Delay Contingencies 0.8 0.8 1.6

Total Project Cost 6.0 12.1 18.1

Proposed Financing PlanIDA 1.6 6.0 7.6AfDF 3.1 3.2 6.3OPEC - 2.0 2.0Government/Livestock Owners 1.3 0.9 2.2

TOTAL 6.0 12.1 18.1

a/ Amounts may not add up to totals due to rounding.

Estimated Disbursement:

FY87 FY88 FY89 FY90 FY91 FY92 FY93US$ million

Annual 1.7 1.3 1.4 1.3 1.1 0.6 0.2Cumulative 1.7 3.0 4.4 5.7 6.8 7.4 7.6

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Econonic Rate of Return: No rate of return has been calculated. However,the economic analysis shows that the incremental production required toobtain a satisfactory economic rate of return of no less than 10 percent iswell within the bounds of prudent expectations.

Staff Appraisal Report: No. 5720-MAU.

Map: IBRD 18303

WAPAC

January 13, 1986

ISLAMIC REPUBLIC OF MAURITANIA

SECOND LIVESTOCK PROJECT

I. BACKGROUND

A. Introduction

1.01 A First Livestock Project, financed by the Government and IDA,was implemented during 1972-78 at a cost of US$5.9 million (Credit273-14AU). The project, which was confined to the 4th, 5th and 6th regions,dealt primarily with well rebabilitation and maintenance (US$4.0 million),but also contained some animal health activities (US$1.0 million),construction of firebreaks (US$0.7 million) and consultants services(US$0.2 million). The present Project was identified in December 1979 by anRMWAIHQ mission and was prepared in 1982 by consultants in cooperation withthe Livestock Department (DNE). A Government request for funding wasreceived in June 1983 and appraisal took place in October 1983. A numberof difficult issues were identified during appraisal; these requiredGovernment decisions and slowed pro,ject processing.

1.02 Project preparation proceeded more slowly than normal in order toallow time for full understanding and acceptance of the project'sunconventional components (pactoral associations, input distribution,systems studies, and cost recovery, including the introduction of paymentfor vaccinations of cattle against Rinderpest and Contagious Pleuro-pneumonia). A fruitful dialogue between IDA and the Government on theabove subjects led to full acceptance of the proiect by relevant Governmentofficials. The onlv remaining issue - the payment for Rinderpestv-accination - was resolved when it was agreed that a law requiring paymentfor vaccinations would be passed as a condition of Board presentation (para8.01); this was then done. Firm commitment has been obtained from theAfrican Development Fund and the OPEC Fund for the necessary cofinancing ofthe project. AfDF has carried out their appraisal of the project inNovember 1985.

B. Country Characteristics

1.03 Mauritania's vast territory of over one million square kilometersis three-quarters Saharan or semi-Saharan desert. Apart from a narrow bankalong the Senegal River border in the scuth-west that sustains sedentarvcrop farming, the remainder is suitable only for extensive agro-pastoralism. More than 85% of the population inhabits that one-third ofthe country's territory located south of the 180 latitude, which cutsacross the country eastward from the capital of Nouakchott (see Map).

1.04 As recentlv as the mid-1970s, 60% of the population, chieflyMoors of Arab-Berber heritage, were engaged in migratory herding; a further20%, predominantly Black African ethnic groups, were sedentary farmersalong the Senegal River. Standards of living, though not exceptionally lowin comparison with those of neighboring countries, are among the lowest inthe world. Life expectancy at birth is 45 years, a figure that has hardly

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changed in Mauritania since independence in 1960. The literacy rate, 5% atthat time, remains less than half that of the poorest countries in Africa:less than 20Z of the Mauritanian population is literate in either of thetwo official languages, Arabic and French.

1.05 At least 30% of Mauritania's population, some 500,000 people, arepresently urban dwellers (excluding temporarv refugees from drought).Nouakchott has a population conservatively estimated at 375,000, or nearlyone-quarter of .he nation's total population. Water supply is the city'smost critica.. problem. About half of its inhabitants are housed in provi-sional shelter. As little as 60% of its labor force is regularly engagedin any form of income-earning activity, and less than one-third of thoseare salaried workers. Conditions in secondary urban centers are similar tothose in the capital.

C. The Resource Base

1.06 Given its geographic position in the Sahelo-Saharan zone,Mauritania has one of the poorest agricultural bases in West Africa; cropfarming contributed only 32 of the economy's overall output in 1984.Animal husbandry, however, contributes more than six times that share, afar higher livestock-to-crop ratio than in any other West African ccuntry.The national herd, which is currently estimated at 2.2 million tropicallivestock units (TLU) 1/, outnumbers the human population by a ratio of1:3, also a far higher ratio than elsewhere in the region.

1.07 The other pillar of the Mauritanian economy is mining. Since themines were opened in 1963, the exploitatiort of relatively high grade ironore deposits near Zouerate in the Kedia mountains in the north has been theeconomy's principal motor of growth. Mining has in the past provided asmuch as one-third of GDP and 802 of export earnings. although its role inthe economv has been severely diminished since the mid-1970s by slackdemand in industrial markets abroad.

1.08 Mauritania's coastal fisheries resources are among the richest inthe world, with favorable hydrological conditions over a vast continentalshelf providing an annual catch officially estimated at 525,000 tons in1984, comparable to that of Senegal and three-quarters that of MIorocco.These marine resources have been heavilv and almost exclusively exploitedby foreign interests for over 50 years; only in the 1980s has Mauritania,which lacks a fishing tradition, attempted to harness them and to capturetheir benefits. The table below shows the relative importance of varioussectors of the economv.

1/ For definition of a TLU, see Annex 7. See also paras 2.06 and 2.07.

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Mauritania - Structure of GDP in 1984(in percentages)

Agriculture 3.1Animal husbandry 20.0Fisheries 7.6

Mininzg 16.0Other Industry, including Fish Processing 5.3Construction, Public Works 7.1

Trade, Transportation, other Ser-rices 25.7Goverment Administration 15.2

GDP at Factor Cost 100.0

Source: Country Economic Memorandum, July 10, 1985.

D. The Economic Setting

1.09 Thus endowed with a limited, though not insignificant, resourcebase in relation to its small population, Mauritania has seen its economychange from one of rapid growth in its first decade of independence to oneof stagnation and extreme reliance on foreign resources. Since themid-1970s, it has been unable to achieve appreciable growth in per capitaincomes and today receives foreign assistance equivalent to 30Z of theeconomy's annmal output, or US$170 per capita.

t.10 The weak performance of the economy over the past ten years islargely attributable to depressed world markets for iron ore, the country'smajor source of growth up to the mid-1970s and its principal foreignexchange earner, and to the effects of repeated droughts on the ruraleconomy, which had sustained 902 of the population prior to the 1968-73Sahelian drought. While mining and livestock, the two mainstays of theeconomy, were being eroded in the 1970s, Mauritania devoted much of theample foreign resources then available to the country to the nationaliza-tion of mining operations, to ambitious projects in transport infrastruc-ture and to a few large industrial ventures which proved unviable. It alsodiverted much of its human and financial resources into a brief but costlywar in the Western Sahara.

1.11 The effects of reduced export 2arnings, drought, war and unpro-ductive investments led in 1977-79 to a financial crisis, the fall of thecountry's 18-yeaz political regime and its withdrawal from the war in theWestern Sahara. In late 1978, a new Government immediately launched animportant stabilization program which called for a major debt reschedulingand tight controls on wages and Government spending. The stabilizationprogram was followed up in 1981 by the adoption of Mauritania's IVthDevelopment Plan (1981-85), which called for continued heavy investment toensure mining capacity through the 1980s and 1990s and for gradualdiversification of the economy through development of the country'ssubstantial fisheries resources and its irrigation potential in the SenegalRiver Valley.

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1.12 Complemented by substantial foreign support, the stabilizationprogram enabled the country to enjoy three years of relative stability andgrowth from 1979-81. The improved economic performance could not besustained, however, in the face of a moderate drop in mining production in1982-83 and the droughts of 1983 and 1984. Production in the miningsector, which had been relied upon to fuel the economy's expansion in the1980s, was by 1983 only 65% of the level registered ten years earlier.Fisheries and irrigated agriculture, the alternative sources of growth towhich heavy investment had been directed, were expanding rapidly but werestill small in terms of their contribution to total output. As overallproduction of the economy faltered at the beginning of 1982, even a modestrelaxation of the 1979 austerity measures, coupled with the effects of anovervalued currency, was sufficient to boost consumption and to exceedoutput by as much as 14Z by 1984. In addition, given the heavy investmentrequirements in mining and irrigation, final demand exceeded output by anaverage of nearly 402 during 1982-84. To this exceptional resource gap areto be added the burden of an accumulated US$1.7 billion in medium- andlong-term external public debt, equivalent to over 235Z of GDP, about fivetimes the average of developing countries at similar income levels.

1.13 Mauritania's reliance on foreign resources, its severe balance ofpayments problems and the limited prospects for economic improvement in themedium term now make it imperative to reinforce the adjustments started in1979 with a far more comprehensive set of policy reforms to ensure sus-tained recovery and maximum growth. Since late 1983, Government hasundertaken a broad re-examination of public policy and institutions as wellas a number of key reforms in the institutional and policy framework(exchange rate and price policy, the banking system and the public invest-ment program) within which the economy as a whole, and the private sectorin particular, operates. The proposed project fits well into this effortsince, in addition to strengthening the technical basis of the livestocksector to the extent possible, it aims at removing price distortions and atcharging part of the cost of a public service to the beneficiaries.

E. Agricultural Sector Issues and Strategy

1.14 Agriculture's share in GDP is relatively small (para 1.06).Because of declining rainfall in recent years, Mauritania's per capitacereals production has been only about 40% of that recorded just 15 yearsearlier. Since the 1968-73 drought, dryland production, including floodrecession farming (chiefly millet and sorghum), which met half the nationalrequirement in the 1960s, has typically covered only 20-30% of consumption,though it has fluctuated widely with rainfall conditions. Irrigated riceand maize production, although tripled since the intensified irrigationeffort was launched at the beginning of the 1980s, still meets less than 5%of the country's current annual cereals needs of about 250 thousand tons.

1.15 Cereals consumption has risen faster than population in recentyears. A major factor is thought to be clxanges in consumption habits ofrural emigrants whose food requirements were formerly met largely by milkand meat. It is also likely that their former subsistence crop productionis not fully reflected in official statistics. The cereals supply/demandbalance in recent years has been as shown below.

Mauritania - Cereals Supply/Demand(thousand metric tons grain equivalent)

1978/79- 1981/82-1980/81 1982/83 1983/84

(Est.)

Domestic Production 45 41 16

Dryland: uillet, sorghum,other 42 32 7

Irrigated rice, maize 3 9 9

Commercial Imports 69 87 86

Rice 52 61 46

Flour 17 26 40

Food Aid 65 76 165

Total cereal supply/demand 179 204 267

Source: Draft Country Economic Memorandum, March 8, 1985.

1.16 Irrigation and cereals pricing policy are the two main issues inagriculture. With respect to irrigation, Government is pushing ahead withthe development of irrigable areas along the Senegal River, to compensatefor the declining output of rainfed agriculture. The emphasis untilrecently was on small perimeters, which are easier to implement than largerschemes. As the possibilities for further development of small perimetersare exhausted, the emphasis needs to be shifted to larger perimeters(1,000 ha or more). The experience of the large-scale Gorgol project(started in October 1980 with IDA assistance) indicates, however, thatprogress beyond the small-scale perimeter stage will be slow and difficult.Large-scale development in Mauritania entails high capital costs, duelargely to difficult physical conditions and poor supporting infrastructuresuch as access roads. Capital costs of irrigation infrastructure inMauritania average US$15-20,000/ha for large scale and US$2,500 for smallscale infrastructure. Large-scale duv.elopment also requires expandedfarmer training in modern irrigation techniques, which Mauritanisn insti-tutions cannot now deliver. Finally, and perhaps most significantly, thecontinuity of large-scale development is problematic until means can befound to ensure maintenance, particularly of the main canals.

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1.17 The issues concerning the cereals pricing policy arise from thefact that domestic supplies compete with cheap commercial imports and withfood aid, Which is mostly provided in grant form. Government has beenhandling these problems well, although on an ad-hoc basis rather than as aresult of a coherent policy. Food aid has been used with considerablesuccess to meet short-term objectives of delivering food to drought-stricken segments of the population. At the same time, Government hasattempted to lessen the flow of migrants to Nouakchott by directing all but15% of food aid to secondary centers and by setting retail prices in theoutlying districts at a level nearly 60% below that of commerciallyimported rice in the capital. Moreover, the Government is committed tomitigating the market displacement effects of food aid. Consumer pricesfor food aid (wheat and sorghum) were only 60% of import parity in 1984,but were raised by 502 in February 1985, which brought them almost in linewith the price of commercially imported cereals. Dependence on commercialimports and food aid must be expected to continue for a long time to come,while domestic cereals production is simultaneously being developed.

II. THE LIVESTOCK SUB-SECTOR

A. Background

2.01 Livestock production is estimated to involve 70% of the popula-tion and to produce 85% of the output of the rural sector. It accounts formore than 20Z of GDP, to which it is the largest single contributor. Animalhusbandry is, therefore, one of the two most important sectors of theeconomy, mining being the other.

2.02 Animal husbandry is only possible in the southern regions ofMauritania, located on the northern fringes of the Sahel. These are thehigher rainfall areas of the country, but even there rainfall is relativelylow and always erratic (at most 500mm/year in some of the southernmostborder areas) and recurrent droughts are even more pronounced than else-where in the Sahel. A positive aspect, however, is that grasses grownunder sparse rainfall conditions generally have a higher nutritional valuethan those in areas with more abundant rainfall. The nutritional value perweight unit of Mauritanian pastures is therefore high 2/.

2.03 The traditional nomadic lifestyle persists, but considerablechanges have taken place. Since the great Sahelian drought of 1973,precipitation has been below average. Over the last ten years, the 150 mmisohyet has moved about 100 km to the south (see Map). The 1983 and 1984droughts were particularly severe. The absence of sufficient rainfall hasupset the system: livestock, unable to find enough forage in the wet seasonpastures, now often stay year round in the dry season grazing areas wherethey used to graze for only four months, and some are even forced to

2/ Source: H. Breman and C.T. de Wit; Rangeland Productivity andExploitation on the Sahel; Science, 30 Sept. 1983.

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proceed further south across the Senegal river into Mali and Senegal. Thiscompresses the animal population into a smaller area and increases competi-tion for feed and land resources not only amongst herders, but also betweenherders and settled farmers. The result is simultaneous deterioration ofthe dry season grazing areas because of drought and overcrowding and of therainy season areas due to drought. The deterioration has been especiallysevere in the southwest (the region of Trarza, and the northern part ofBrakna). Dunes hitherto immobilized by vegetation have started to move dueto the cutting of shrubs and trees for firewood and the excessive browsingand trampling of animals. As a result, many pastoralists have reducedL,eir herds or abandoned animal husbandry altogether. Many linger with afew animals around the 72 regional Food Security Centers.

2.04 Herd ownership is also changing. Savings originating in themodern sector have traditionally been invested in livestock, where, inspite of inherent risks, they have earned more than if deposited in a bank.The construction of many public wells has shaken traditional ownership andde facto control over the grazing in the service area of public wells.Herds belonging to investors (mostly urban traders and Government offi-cials) and herded by hired personnel, increasingly roam areas that were thetraditional domain of pastoralists, thereby increasing the pressure on theland. In the absence of reliable data, the extent of absentee herdownership cannot reliably be estimated, but figures of up to 40% of thenational herd are being mentioned.

2.05 The country and its pastoralists face the challenge of managinggrazing resources in a sustainable manner without destruction of theenvironment. Regarding carrying capacities of rangelands, it may be statedin general that in years of normal rainfall (about 300-400 mm) on theskeletal soils in the east, a Tropical Livestock Unit (TLU) (Annex 7)requires 9-11 ha for year-round subsistence; on the dunes of Brakna andTrarza the figure is 20 ha, and on the clay and loam of the Southern floodplains, only 3 ha. Taking into account water resources and competitionfrom crop cultivation in the south, the country could perhaps sustain 1.5million TLU on its own feed and water resources. The domestic herd may beas large as 1.9 million TLU (paras 1.06, 2.06 and 2.07); with each droughtit diminishes as cattle die, get sold or emigrate to neighbouring Mali andSenegal and with each good rain the number of animals retained by theherders increases.

B. Production and Markets

2.06 The exact size of the national herd and its production parametersare not known. Herd monitoring is made difficult by its dispersion over avast area, including remote and inaccessible regions, as well as constantcross-border movements. Cn the basis of vaccination records and otherindicators, it is estimated that during the late 1970s and early 1980s, thenational herd amounted to some 1.2 million head of cattle, 7.5-8.0 millionsheep and goats and around 750,000 camels, together equivalent to about 2.6million TLU. Off-take rates are estimated at around 10%, 30% and 9%,respectively. Assuming average dressed weights of 120, 15 and 150 kg,these parameters imply a yearly meat production of about 60,000 metric tons(b.). If annual per capita meat consumption is estimated at 25-30 kg, thepopulation of about 1.6 million would consume around 44,000 mt, suggesting

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that most production is consumed domestically with some surplus availablefor export.

2.07 The 1983 and 1984 droughts have changed the situation drama-tically. Many cattle have died and many others have been driven to seekrefuge in Mali and Senegal. The domestic herd is presently estimated atonly 550,000 head of cattle; the numbers of sheep, goats and camels haveprobably decreased less as they withstand drought better. A tentativeestimate would place the numbers of sheep and goats at 7.0 million and thatof camels at 700,000. This would make the domestic herd equivalent to 1.9million TLU. However, taking into account the Mauritanian livestock thathas taken temporary refuge in neighboring countries, the national herdcould count some 2.2 million TLU. In any case, estimates of the size ofthe Mauritanian herd at any time contain a considerable margin of error.

2.08 The most important market is the domestic one, and is centeredaround Nouakchott, the fishing port of Nouadhibou and the mining centers.Government is concerned about the country's meat supply. Present supply isstill adequate because of ongoing destocking, but shortages are likely whenrainfall improves and restocking resumes. With continued populationincrease and the constraints on the growth of the Mauritanian livestocksector, long term prospects for domestic demand are good. A sanitaryslaughter facility for the capital is therefore needed (paras 3.07 and3.32).

2.09 Should domestic livestock production exceed domestic consumptionneeds, there would be no export problem. Mauritanian livestock would jointhe export on-the-hoof trade routes from Senegal or Mali to supply coastalcountries like Ivory Coast, Ghana, and Liberia. A major objective of theproject would therefore be to redress the present deterioration of resourceanagement and to increase productivity in the sub-sector.

C. The Institutions

2.10 The Ministry of Rural Development (MDR) is responsible foragriculture, livestock and the conservation of natural resources. Itadministers five semi-autonomous public agencies: the National Center forAnimal Husbandry and Veterinary Research (CNERV), the M'Pourie State Farm,the National School for Training and Extension (ENFVR), the National Centerfor Agricultural Research (CNRA), and the national rural developmentagency, Societe Nationale de Developpement Rural (SONADER). The last twoinstitutions deal exclusively with crop cultivation. There is also anautonomous state marketing enterprise (SOMECOB), responsibility for whi_his shared with the Ministry of Finance. MDR suffers from a shortage ofqualified national staff, at both the technical and policy making levels.French technical assistance and an IDA-financed project (Technical Assis-tance to the Rural Sector) seek to alleviate the problem.

2.11 The Livestock Department (DNE) within MDR consists of a Divisionof Animal Health, which is responsible for the field service and the annualrinderpest vaccination campaign, and a Division of Animal Production. DNEmaintains its headquarters in Nouakchott and has 11 field centers in theregional capitals plus 19 veterinary field stations. most of which arelocated in the southernmost third of the country (see Map). Each regional

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center is staffed with a senior livestock technician responsible for thesupervision of the field stations in his region and for planning andexecuting the annual vaccination campaign. However, drugs are usually notavailable for budgetary reasons, and the conditions of infrastructure, thestate of maintenance of the cold chain and vehicles, as well as staffmotivation make vaccination against the major diseases (rinderpest andpleuropneumonia) difficult. This problem is to be addressed directly bythe proposed Project. DNE's budget is given in Annex 2.

2.12 The ENFVR in Kaedi has been training veterinary field staff forover 20 years. It offers two levels of training: a three-year course forLivestock Assistants and a two-year course for Animal Health Assistants.In 1983, the school graduated 20 of the former and 7 of the latter categoryof technicians. They are all needed because, unlike other Saheliar,countries, Mauritania has not yet reached the point where the service *soverstaffed. There is agreement that the present training of animal healthassistants at the ENFVR is too theoretical and that there should be more-emphasis on such practical matters as equipment maintenance in the field,communication with livestock owners, the sale of drugs and supplies, andthe handling of money and simple accounting.

2.13 The state marketing enterprise, SOMECOB, was established in 1981with an official but unenforceable monopoly over livestock exports and theauthority to intervene in the marketplace, purchasing livestock for exportwith the secondary objective of stabilizing domestic prices. SOMECOB isalso responsible for the Kaedi Abattoir, which was constructed in 1975 asan export slaughterhouse. SOMECOB exports have been negligible for lack ofcompetitiveness, while private exports take place freely and withoutobstruction. As a result, its purchases in the domestic market and,consequently, its price support effect, have been insignificant. The KaediAbattoir is now functioning as a municipal slaughterhouse far belowcapacity.

2.14 The CNERV was established in 1973 to study animal diseases, doresearch on animal nutrition and conduct refresher courses for veterinaryfield staff. It has an annual budget of UM 10 million of which 60% is forsalaries, and its activities are restricted to those that can be carriedout in Nouakchott. The institute has a small but well-trained staff,energetic leadership and receives technical assistance from France.

D. Livestock Projects

2.15 In 1971, IDA approved a livestock development project (Cr.273-MAU, US$5.9 million), which provided for rehabilitation and construc-tion of wells, construction of firebreaks, and vaccination. It was com-pleted in 1978. The project performance audit (Sec. M80-867, Nov. 21,1980), while concluding that most goals have been achieved, noted the weakexecutive capacity of the livestock department. The audit did not considerthe rate of return (tentatively estimated at between 2-11%) to be anaccurate reflection of project impact, but instead found the most importantelements to be the reconstitution of herds after the drought, and the boostto herders' morale mostly achieved by the rehabilitation of wells.

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2.16 Another project for livestock development covering 140,000 km2 inthe south-east became operational in 1982 under an ECU 3.9 million grantfrom FED, of which 402 is to be used for rinderpest/pleuropneumoniavaccination campaigns, 10% for a revolving fund for veterinary drugs in theproject area, 27% for stockwater development, 16% for experimental fire-break construction and the remaining 7% for various experiments on pastureimprovement, small-stock production, forage production and projectmonitoring in an experimental zone of 34,000 km2. The project isprogressing slowly.

2.17 A FAC/CCCE livestock project entitled "Animation des Eleveurs duGorgol" stresses organization and the sale of inputs to livestock owners inthe Gorgol Region, and the Selibaby Rural Development Project (USAID) inthe Guidimaka Region also promotes range improvement and rural self help.These two projects are small ir. monetary terms but important in theirconcept of cooperation among settled livestock owners.

III. THE PROJECT

A. Project Objectives

3.01 The objectives of the project are to:

(a) increase the knowledge and understanding of the livestocksub-sector and introduce better resource management byestablishing pastoral cooperative associations;

(b) elaborate a development plan and prepare follow-on projectsfor the livestock sub-sector;

(c) foster institutional and structural reform, particularlywith respect to the financing of livestock services; and

(d) increase production by making improved services and produc-tion inputs available to livestock owners.

3.02 Livestock production, one of the two most important sectors ofthe economy (paras 1.06 and 2.01), faces a severe threat to its veryexistence. Its problems are threefold, namely:

(a) destruction of the environment due to drought and over-stocking;

(b) price distortions for sectoral inputs; and

(c) the technical weakness of the public livestock services andthe lack of input delivery systems.

Given the importance of the sector, the country cannot afford not to make aserious effort to arrest its decline. The project would therefore aim ataddressing these sectoral problems.

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3.03 With regard to the deterioration of the environment, the projectis based on the hypothesis that the droughts of the recent past are notmanifestations of a long term trend of declining rainfall. In any case,the country cannot wait until projections regarding future rainfall areavailable before dealing with the sector's problems. The project would bejustified even if benefits accrue over a short period (para 7.06) andpositive benefits would therefore result even if rainfall should prove tobe on a declining trend. With respect to overstocking, workable approachesto this problem have proven difficult to devise not only in Mauritania butin other Sahelian countries as well. Nevertheless, the project wouldattempt to contribute to a solution through an experiment involving groupsof pastoral livestock owners (pastoral cooperative associations) whichwould be granted the right to manage certain grazing lands themselves inthe hope and expectation that this would lead to a reduction in overgrazing(paras 3.08 and 3.09). The project would also finance the study of thisfundamental problem. If possible solutions can be defined, planning andpreparation would also be financed for follow-up projects.

3.04 The most important input pricing distortion concerns pasturelands. These are now a limited resource with an economic value, yet havetraditionally been available at no cost to all Mauritanians. This distortsthe cost of maintaining livestock and has probably contributed to theoverstocking problem. This question will be addressed in the studiesmentioned in para 3.15. Pricing distortions of other inputs have emergedin the wake of the 1973 drought as a result of the desire to give emergencyaid to the livestock sector and because of a general increase in Governmentspending (para 1.10). Livestock owners have been provided with goods andservices (vaccinations, drugs, feed, medical advice) free of charge or atheavily subsidized prices. This has further distorted the cost ofmaintaining livestock and hence contributed to overstocking problems, aswell as to a herd composition that tends to favor the more vulnerablecattle, which profit more from the inputs than other animals. The projectwould strengthen the input delivery system and institute full cost recovery(para 3.23).

3.05 The weakness of public livestock services (para 2.11) must beredressed for two reasons:

(a) the livestock services have a positive effect on herdproductivity under all but the most negative conditions, andjustify their cost through the economic value of the produc-tion increases they generate; and

(b) the inevitable changes and adaptations in the sector toarrive at a better resource management make it imperativethat Government reach livestock owners/herders and retaintheir confidence and trust; the only appropriate channel isthe field service of DNE, which needs to be technically morecompetent to fulfill this function.

3.06 The project would be implemented with an intermediate evaluationafter 2 1/2 years. It would be national in scope but duplication ofproject activities with the FED financed South-East Livestock Project wouldbe avoided (para 2.16). This concerns the experiment with the formation of

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pastoral cooperative associations, which would primarily take place in theregions of Trarza, Brakna and Gorgol (the project area of the FirstLivestock Project (Cr. 273-MAU)) and the westernmost districts of theregions of Tagant and Assaba CHoudjeria and Barkeol).

B. Summary Description

3.07 To achieve the above objectives the project would:

(a) as an experiment in social and territorial organization witha view to better management of renewable resources, assistGovernment in establishing a number of pastoral cooperativeassociations. These associations would receive rights tograzing land; this would hopefully induce them to manage andimprove their grazing and stockwater supply. Existing waterpoints would be rehabilitated, new ones would be providedwhere needed and cooperative associations would qualify forassistance from the Production Improvement Fund (see (e)below);

(b) provide the necessary resources to obtain and analyzemuch-needed information regarding livestock productionsystems, draft a national livestock development policyaddressing the sector's fundamental problems, monitor theproject and, if feasible, prepare follow-up project(s);

(c) provide technical assistance, equipment, initial start-upcosts and a revolving fund to import and sell to livestockowners the necessary veterinary drugs and vaccines, animalfeeds, feed supplements and other production inputs at fullcost;

(d) strengthen public livestock services by rehabilitatinginfrastructure, providing equipment, training staff andbuilding competence in the field of range and stockwatermanagement. To ensure adequate funding of field operationswithout increasing the burden of recurrent costs on thenational budget, costs of public livestock services would berecovered through a surcharge on production inputs (in-cluding veterinary products) to be deposited in a LivestockFund that would finance the field operations of DNE;

(e) encourage self-help among groups of pastoralists byproviding a Production Improvement Fund which would finance(on a grant basis) small rural works, firebreaks and activi-ties for which pastoral groups themselves have mobilized atleast 30% of the financing; and

(f) provide partial funding for a new abattoir for Nouakchott toserve the fast growing population of the capital and replacethe existing unhygienic slaughter facility (para 2.08).

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C. Detailed Features

1. Establishment of Pastoral Cooperative Associations

3.08 The survival of pastoral livestock production, still the basis ofthe country's economy, depends largely on improved range management and onthe willingness of pastoralists to make the required changes in theirterritorial organization. The approach which must be adopted is rotationof grazing so as to allow seeding before grazing on certain areas. Thiscannot be enforced under a commnnal grazing regime. Efforts to impose suchchanges from above have failed and the only hope of achieving thisobjective appears to be to give responsibility to livestock owners/herdersthemselves. The project would therefore promote, on an experimental basis,the establishment of a number of pastoral cooperative associations andwould supply them with inputs and support services to help them becomeofficially recognized producer groups with responsibility for their grazingresources. The Government has agreed during negotiations that only bonafide cooperative associations formed by pastoralists will benefit from theprojects's well construction and rehabilitation program. To test theacceptability of such associations to pastoralists, a special team workedduring project preparation with two potential groups tc tLe point whereassociations were ready to be established. The same team has now resumedits work with PPF financing. The appraisal mission also visited andinterviewed one of these groups twice as well as other pastoralists. Foreach association, the project would finance the repair of p to four wellsand the construction of a new well.

3.09 In an area of 130,000 km2 consisting of the three provinces ofTrarza, Brakna and Gorgol, as well as the westernmost district of theprovinces A'- Tagant and Assaba, the Project's first goal would be toestablish *;p to 15 pastoral cooperative associations. Such an associationwould lnitWally consist of 30-50 households of pastoral livestock ownerswho traditionally have grazed and migrated together. These voluntarygroups of pastoralist families would, in exchange for the commitment tomanage and improve the range, be awarded grazing rights to a well-definedarea. By interviewing neighboring groups, the establishment team wouldrecord any traditional rights of passage or grazing pertaining to apotential association's grazing area. Such rights would be described indetail and accepted by the new association on condition that the transientgrazers abide by any grazing and stockwater restrictions imposed upon themembers of the association and contribute, in cash or in kind, tomaintenance activities. The association would be assisted by DNE, whichwould provide:

(a) animal health services;

(b) stockwater and range management extension services;

(c) veterinary drugs, animal feeds and other livestock suppliesat full cost; and

(d) training for officials of the associations and for selectedmembers as veterinary lay assistants (para 3.11).

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DNE would also provide guidance on stockwater conservation and rangemanagement. Thus established and supported, it is expected that eachassociation would eventually be able to assume increased responsibility forresource management. Annex 1-1 provides more background on pastoraldevelopment and Annex 1-2 more detail regarding the legal aspects of thepastoral cooperative associations.

3.10 A team consisting of a sociologist, a livestock technician and acartographer with support personnel would help establish the pastoralassociations, a time-consuming task. The team would first approach a groupof pastoralists likely to form an association and engage in a dialogue withthem which might last, on and off, for about a year. During this period,the wells and surrounding dry season range used by the group would beidentified and a map would be drawn. The team would also try to identifyany outside groups having (or claiming to have) traditional grazing rightsin the area and reconcile and record such rights (para 3.09). Theformation of the association would entail registration with the provincialauthorities and the approval by them of the range areas to whichusufructory rights would be accorded. The project would finance:

(a) the necessary equipment (office, field and camping) for theteam;

(b) two 4X4 vehicles;

-c) all operating costs; and

(d) the cost of five man-months of one expatriate sociologist,and 600 days of per diem/year for the team members and theirdrivers.

3.11 The regional livestock service would subsequently assume the roleof liaison with the newly-formed association. It would train the veteri-nary lay assistant selected by the association in veterinary first aid andin the use of the various inputs sold by DNE. It would arrange for theofficials of the association to be trained by the Department of Coopera-tives of MDR and by ENFVR (para 3.29).

3.12 Where needed, the territories of the pastoral associations wouldbe equipped with watering points. Apart from the small interventionsmentioned in para 3.30-31 below, there would be no other stockwaterdevelopment under the project. It has been assumed th.at each of the 15associations would on average need to repair four existing shallow(20-40 m) wells. In addition, 13 new wells would be constructed to servethe 15 associations. Eight of the 13 new wells would be located in the so-called "Biseau Sec" in the provinces of Brakna and Gorgol and would be40-60 m in depth; four of these would have to be preceded by a geophysicalstudy. The work would be carried out under a contract with the Departmentof Hydrology and would be supervised by the Stockwater Section of DNE. Theproject would finance:

(a) the contract with the Department of Hydrology; and

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(b) 24 man-months of a well construction foreman (consultant)during project years 2-5, who would help the StockwaterSection in the design and supervision of the execution ofthe contract.

3.13 Pastoral cooperative associations desiring new wells or repairson existing wells would be asked to contribute OZ of the cost in cash orkind. No works would be carried out unless the pastoral cooperativeassociation requesting it had been duly established with a membership ofbona fide livestock-owning pastoralists.

3.14 Assurances were obtained during negotiations that:

(a) only bona fide cooperative associations formed bypastoralists would benefit from the well construction andmaintenance program financed by the project; and

(b) the pastoral cooperative associations, once identified andestablished, would in a timely manner be allocated grazingand stockwater rights, including the right to deny access tograzing areas that they wish to improve and to which its ownmembers have no access (para 8.01(a)).

2. Systems Studies, Monitoring and Preparation of Follow-On Projects

3.15 Detailed knowledge of livestock production systems in Mauritaniais scarce. Also, the project and especially the pilot component regardingthe establishment of pastoral cooperative associations must be closelymonitored. A team of three national professionals, under the leadership ofan international specialisL in livestock survey work and in cooperationwith the Office of Agricultural Statistics of the Ministry of RuralDevelepment and CNERi,. would provide a description of the existinglivestock production systems and the livestock sub-sector, and woulddevelop and submit for Government's consideration in PY 3 a livestockdevelopment plan as well as proposals for follow-on projects.

3.16 The team (consisting of a sociologist, an economist, a livestockspecialist and a statistician) would study a small sample of groupsselected as being representative of the various livestock productionsystems in order to identify their constraints. Livestock ownership andthe family unit would be studied in order to achieve an anderstanding ofthe microeconomy and of the linkages to other production systems. Theproject would finance:

(a) 48 man-months of an internationally recruited team leaderwith experience in monitoring and systems studies;

(b) nine man-months of international technical assistance andeight man-months of local consultancies;

(c) two 4X4 station cars and camping equipment;

(d) office furniture and equipment; and

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(e) operating costs.

3.17 At the request of DNE, CNERV would undertake five field studiesin Animal Health and Production related to and integrated with the systemsstudies being undertaken. The studies would be financed by the projectunder a contract to be negotiated between DNE and CNERV and approved byIDA. In order to improve CNERV's capabilities, the project would alsofinance equipment replacement in the amount of US$10,000 and a 40-KVgenerator for the laboratory.

3.18 The Agricultural Statistics Office of the NDR would participatein the team's work by collecting some of the data and by assisting overalldata analysis. In accordance with a contract negotiated between DNE andthe Office of Agricultural Statistics and approved by IDA, the projectwould also finance:

(a) nine man-months of a visiting international consultant overthree years;

(b) 60 man-months of local enumerators;

(c) office furniture and equipment; and

(d) operating costs.

Transport would be provided by DNE and financed under the project. Furtherdetails on the systems studies, on the monitoring and on the preparation offollow-up projects are provided in Annex 3-1.

3.19 Assurances were obtained at negotiations that:

(a) Government would arrange for CNERV and the AgriculturalStatistics Unit of the MDR to integrate their work with thatof DNE's studies team; and

(b) the studies team would be formed of professionals selectedon the basis of experience and motivation.

3. Distribution of Production Inputs

3.20 Distribution of production inputs to livestock owners hardlyexists outside of Nouakchott and some regional urban centers. Because ofthe cost and relative small turnover, private firms and individual tradersare not interested in marketing veterinary drugs, feeds and feed supple-ments outside the regional capitals. DNE, however, has a network ofstaffed and underemployed veterinary stations in the field. Until suchtime as the private sector gets involved in bringing inputs to livestockowners, the project would organize the sale of inputs from these outlets.By maintaining an adequate mark-up, the project is expected to encourageprivate sector participation in the market (para 3.22).

3.21 The project would therefore finance the establishment andstart-up of a Livestock Input Service (BIE) within DNE in Nouakchott. InPY 3, subject to a favorable mid-term review (para 5.08), the project would

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finance the expansion of BIE by creating a branch at Kiffa more central tothe main livestock producing areas. As turnover expands, operating costwould be increasingly financed from BIE's margin. Project cost, therefore,would include foreign financing of operating costs of up to 100Z, 75Z, 50Xand 25% respectively in PY 1-4 (para 4.03). By PY 5 at the latest, alloperating costs would be borne by the beneficiaries (see also paras5.02-5.04). Two revolving funds would be established with project fundsover the 5-year project period for a total base cost of UM 86 million(US$1.1 million). of which UK 30 million (US$385,000) would be used toimport veterinary drugs and biological products and UM 56 million(US$700,000) for animal feeds. The project would also finance: threeman-years of expatriate staff (commercial and financial director),equipment, a light truck and a town vehicle and part of the start up cost.

3.22 BIE would keep its operating cost to an absolute minimum and sellits products at full cost (excluding technical assistance but includingoverhead and depreciation) based an a turnover of UM 30 million for drugsand vaccines and of UK 56 million for feed (1985 prices) plus the marginfor the Livestock Fund (see below). At this level, BIE would recover itsfull cost of operation towards the end of the project. These targets maybe periodically revised. A more detailed description of BIE's objectives,operating principles and price-setting policies is given in Annex 3-2. Inaddition to full cost recovery for drugs and other inputs, a mark-up overand above BIE's cost recovery margin would be levied on the retail sales ofdrugs and other inputs to finance the field operations of the DNE to ensurethe provision of adequate services and to keep sales prices at a levelwhich would not discourage private sector entry into the market. Therevenue from the mark-up would be transferred to a Livestock Fund whichwould be overseen by a committee (para 5.05). The mark-up forrinderpest/CBPP vaccination would be set at a level allowing full costrecovery of the annual vaccination campaign and for other products at alevel covering the other operating costs of the field services of DNE butwhich shall not be less on the average than 15% of retail sales prices.The mark-up would be periodically reviewed in the light of marketconditions and probably differentiated by product. The resulting revenueswould be used against a budget approved by the Minister of RuralDevelopment primarily to finance recurrent costs of DNE field servicesincluding those of the Animal Production Division thus allowing a betterservice (vaccination, extension of advice, sale of drugs) (paras3.24-3.28). Any surplus couJ] be used to finance capital costs for fieldoperations. In order to obrain a similar revenue from drugs retailed bythe private sector, DNE would approve the importation of these inputs andissue an import license for which it would collect a special import feeamounting to 9% of the invoiced cost of the items to be imported. Thespecial import fee would be deposited in a Special Treasury Account andwould be earmarked for financing the same expense items as the LivestockFund. Project costs, therefore, would include foreign financing ofoperating costs of the Animal Health and Animal Productioz. components onthe same ueclining scale as applicable to BIE (para 3.21). The FinancialController at DNE (financed under the project) would establish disbursementand accounting procedures for the Livestock Fund and the Special TreasuryAccount and prepare its budgets. Assurances have been obtained atnegotiations that:

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(a) there would be no restriction on private domestic trade inveterinary drugs and vaccines or animal feed other thanthose pertaining to technical requirements and qualitycontrol;

(b) BIE would charge, for all veterinary drugs and vaccines andall animal feeds, full cost c.i.f. at place of sale, plus amark-up sufficient to realise cost recovery for DNE fieldactivities;

(c) the mark-up would be deposited in a Livestock Fund, theproceeds of which are to be used for field operations of DNEagainst a budget to be agreed upon by IDA (Sections 3.07,3.08 and 3.09 of DCA);

(d) an import fee of 9Z of c.i.f. costs would be instituted onall veterinary products imported through private channelsand the revenue deposited in a Special Treasury Accountearmarked for financing the same expense items as theLivestock Fund;

Ce) BIE would be authorized to control all financialtransactions and stock movements related to the sales ofdrugs, vaccines ar.d feed; and

(f) Government would not distribute drugs, vaccines and feed,including those received as foreign assistance, outside ofBIE channels.

3.23 The size and composition of the veterinary drug/vaccine anda-nimal feed market in Mauritania is not well known. It is tentativelyestimated that towards the end of the project implementation period BIEwould have captured UK 30 million of the drug/vaccine market and UM 56million 3/ of the feed market; this constitutes roughly two-thirds of themarket. It would represent an expansion of the market as well as asubstitution of inputs previously purchased abroad by herders themselves orGovernment agencies. If the above-mentioned average mark-ups can berealized, about UM 22.0 million per year in revenue would be generated onproject completion and it would be necessary to expand the BIE by creatingsales and central storage facilities as Kiffa (Annex 6).

4. Strengthening of Livestock Services

3.24 The DNE has 30 livestock regional and district veterinarystations, but lacks the financial resources to make them function properly.The project would therefore:

3/ Valued at prices delivered to veterinary stations; 1985 constantprices.

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(a) establish a system of cost recovery which would in timeassure adequate funding of the field services (para '.22);

(b) complete, rehabilitate and modify DNE's field infra-structure;

(c) upgrade the staff through refresher courses and increasedpractical training;

(d) provide additional equipment and vehicles for fieldstations; and

(e) improve DNE's financial management.

In connection with this objective of strengthening the livestock servicesmore support information is given on staff numbers and costs (Annex 3-3);on investments in infrastructure and buildings (Annex 3-4); investments invehicles, cold chain and veterinary equipment (Annex 3-5); and the draftTORs for technical assistance (Annex 3-6).

3.25 The infrastructure of the livestock field services, with theexception of five recently constructed veterinary stations, dates from thepre-independence period. It needs rehabilitation in order to serve as abasis for renewed services to livestock owners and for the distribution andsale of production inputs as shown on the project map. Of DNE's 30regional offices/veterinary stations, 25 are located in areas with highconcentrations of cattle for all or most of the year during aver_ge rain-fall years. The entire network is needed to provide adequate services tolivestock owners, to stock inputs and to house field staff, Eight addi-tional veterinary stations would be constructcd to fill the gaps in thisinfrastructure and 15 stations out of the total number would be selected toreceive a small pharmacy and space for the storage and sale of drugs andanimal feed. The project would finance:

(a) the construction of eight field stations at Keur Macene,Dar el Barka, Bababe, Mal, Boustella, Touil, Aouinatt Z'beland Boumdeid;

(b) the installation of water supply for five stations recentlyconstructed under bilateral aid from Iraq;

(c) the rehabilitation of 25 stations in various degrees ofdisrepair;

(d) the preparation, at each of about 15 selected stations, of apharmacy for drug sales and a covered storage area for feedsand feed supplements; and

(e) the repair and/or removal to a more suitable location of 40out of 57 metal vaccination crushes and the construction offour new ones.

3.26 Tae project would further provide additional equipment, namely:

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(a) one 4X4 vehicle for the construction engineer and 25 4X4vehicles (one per district and per region);

(b) one 4X4 and two 2X2 station cars for DNE Headquarters;

(c) five freezers, five refrigerators and ten ice containers forstorage and transport of biological products;

(d) basic veterinary equipment and instruments for the eight newstat-.ons and five sets of replacements (Annex 3-5, page 2);and

(e) a radio communication network consisting of a base stationand 30 stations to be selected in the regions.

A Project Coordinator/Financial Controller would be provided for fiveyears. He would be in charge of project coordination and be a financialadviser to the Livestock Director who would be project director. He wouldassist the accountant to improve administrative accounting and financialsupervision of the regional services. A construction enginei-: who wouldassist the Director of Livestock to plan, contract for and supervise thecivil works program would be provided for three years. At the end ofproject implementation, DNE would be able to proceed without the assistancefrom the financial controller.

3.27 A Range Management Section would be created in the Division ofAnimal Production within the DNE. Its t!rms of reference would be:

(a) to develop, in cooperation with the regional "FAO/UNEP PilotProject for Inventory and Monitoring of Sahelian PastoralEcology" in Dakar and in contact with the AGRIMET project inNiamey, an information service dealing with rangelandconditions, rainfall distribution and availability ofgrazing;

(b) to help the pastoral associations to plan conservation andimprovement measures and to manage their grazing land moreeffectively; and

(c) to supervise the design and construction of firebreaks bythe associations.

Four experienced livestock technicians would be trained in Senegal: two inrange livestock production and two in stockwater conservation and develop-ment. The project would finance:

(a) the training of staff in Dakar;

(b) the operating costs of the Range Management Section on adeclining scale for five years as the resources of theLivestock Fund increase; and

(c) six man-months of consultant services to establish thesection and provide on-the-job training for staff.

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3.28 A Stockwater Section would simIlarly be created in the Divisionof Animal Production and staffed by the two above-mentioned livestocktechnicians trained in stockwater conservation and development. Thissection would be responsible for support to pastoral associations, and forthe supervision of contracts made with the Department of Hydrology (paras3.12-3.13). The project would finance:

(a) the training of staff in Dakar;

(b) the operating cost of the Stockwater Section for four years,including staff per diems; and

(c) four man-months of consultant services to establish thesection and train field staff.

Assurances were obtained during negotiations that the Range Management andStockwater Sections would be operated in accordance with terms of referencesatisfactory to the Association (para 8.01 (d)). Their creation would be acondition of effectiveness.

3.29 In order to improve training of both existing and new staff ofDNE and to create facilities for the training of the officials of the newpastoral associations (para 3.11), the project would:

(a) improve the existing pre-service training program at ENTV;

(b) develop ENFV's capacity to conduct programs of in-servicetraining and up-grading for department staff;

Cc) set up training programs for the officials and relatedmembers of the pastoral associations; and

Cd) provide mass-media support for livestock extension.

The project would finance:

(a) the construction of one classroom, two offices, and a cattlecrush, minor repairs to existing facilities and the conver-sion of an office into an incubator room;

(b) furniture for the laboratory, clinic, pharmacy and theteaching block;

(c) the purchase of books and training aids, professional andaudio-visual equipment for the library and clinic;

(d) two 4X4 vehicles for studentst field visits, one 4X4 vehiclefor the mobile extension unit as well as a 40 KVA generatorand miscellaneous equipment;

Ce) two man-years of a specialist in livestock/agriculturaleducation to serve as Director of Studies for the ENFVA atKaedi to train a national to take over the post; and

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(f) 16 man-months of expatriate and 12 man-months of localconsultant services in the fields of poultry production,laboratory equipment, training, stockowner training, docu-mentation, audio-visual aids. The consultants would reportto the Director of Studies.

5. Production Improvement Fund

3.30 A Production Improvement Fund would be established in the DNE topartly finance (on a grant basis) small rural works, interventions oractivities for which groups of livestock owners would be willing and ableto provide at least 102 of the cost in cash and 20% in cash or kind. Thefund would only be accessible to pastoral associations; exceptionally, andafter approval by IDA, other well-established groups of pastoralists mightalso have access. Assurances were obtained at negotiations that theProduction Improvement Fund would only be accessible to pastoral coopera-tive associations or, exceptionally and with the approval of IDA, to- wellestablished groups of traditional pastoralists with no access to bankcredit or other kinds of rural development funds.

3.31 The Fund would amount to UM 55 million (US$688,000) and would beused for investments not exceeding UM 2.0 million per project. The projectwould help livestock owners to design and prepare these mini-projects;after their acceptance by the Director of Livestock, they would be sub-mitted for prior IDA approval at the time of supervision. There would beno separate administrative staff for the Fund. The types of interventionsfinanced by the fund would be:

(a) infrastructure improvements such as dips, crushes andstorage for forage reserves;

Cb) equipment foi treatment of animals;

Cc) maintenance and improvement of wells;

(d) group initiatives such as primary markets, slaughter slabsor enclosures;

(e) stockwater development such as improvement to drinkinginstallations or the construction of small retention dams;

(f) demarcation of grazing areas;

(g) revolving funds for purchase, transport, storage and dis-tribution of such basic supplies as sugar, salt, tea andfoodgrains; and

(h) range and pasture improvement, including clearing, seeding,tree planting, construction of firebreaks and the introduc-tion of new forage species.

Technical supervision would be provided by five man-years of an agricul-tural engineer financed by the project. Five man-months of an expatriate

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consultancy in rural engineering would be provided during PY 1-4 for thiscomponent to assist DNE in the identification and preparation of projects.

6. The Nouakchott Abattoir

3.32 The District of Nouakchott wishes to replace the existing unsani-tary slaughterhouse with a simple but hygienic abattoir. The project wouldfinance the construction, equipment and working capital of such a structurein Nouakchott. OPEC would finance 60% of the cost and the remainder wouldbe financed by the National Development Fund (FND) (37%) and the Munici-pality of Nouakchott (3%). Total base cost would be UM 77.0 million(US$960,000), estimated on the basis of preliminary specifications drawn upby DNE. The abattoir would be operated by and for the Municipality ofNouakchott under statutes that would give the institution financial auto-nomy. Rates would be set at a sufficiently high level to obtain full costrecovery (including depreciation) and an appropriate profit. A studycomprising feasibility, technical design and the preparation of tenderdocuments is being carried out by consultants under terms of referenceapproved by IDA and is expected to be available by the middle of 1986.Assurances were obtained at negotiations that the abattoir would befinancially autonomous and would charge fees allowing full cost recovery,including depreciation.

IV. COST AND FINANCING

A. Project Costs

4.01 Total project costs, net of taxes and import duties, which wouldbe waived, but including contingencies, are estimated at UM 1,445.5million, equivalent to US$18.1 million 4/, of which 67% would be foreignexchange. The project is conceived as a 5-year project but project costsinclude a provision for a possible delay in implementation based on a7-year disbursement schedule (Annex 4-1). The implementation delaycontingency amounts to UM 128.0 million (US$ 1.6 million). Base costs havebeen set at October 1985; they were obtained by adjusting prices prevailingin February 1985 with the actual rates of increase in foreign and localcosts (5% and 12% per year respectively). Physical contingencies of 10%have been added to the cost of all goods and services, except for civilworks (15%). Price contingencies have been calculated at the followingannual rates:

4/ Exchange rate US$1=UM 80.

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Price Contingencies Used in Project Costs(in Z)

1986 1987-1992

Foreign costs 7.5 8.0Local costs 12.0 10.0

Project costs are sumarized below and detailed in Annex 4-2.Project components by year are given in Annex 4-3.

LAUR1*UA-BON LlVESmCC MD=JHPR11EC C06r SIY

(UKi HiUix) (aSs Mlllia) X TotalZ Foreign Base

Lal ForeIgn Total Ical Foreign Total E Nimi costs

A. PASIUlAL ASSCATI1 13.8 88.7 102.5 0.2 1.1 1.3 87 11B. SYST1 SrWIES, MONIT AND

PRT PREPART 41.7 77.5 119.2 0.5 1.0 1.5 65 13C. DISMRIBUrICI UIPUW 16.0 119.4 135.4 0.2 1.5 1.7 88 14D. S5IR1MNGIl OF LIVESMXK SERV=i

599T51 18.5 67.5 86.0 0.3 0.8 1.1 73 9ANIAL WALI 77.9 106.9 184.8 1.0 1.3 2.3 58 19ANDIAL PRCITICh 66.9 63.5 130.4 0.8 0.8 1.6 49 13T[RADhIN 27.5 63.2 90.7 0.3 0.8 1.1 70 9

Sub-Total STR511NI1M OF LlVQUCXSEKVIC13 190.9 301.1 492.0 2.4 3.7 6.1 61 5D

E. ABATMIOR 17.1 59.6 76.7 0.2 0.8 1.0 78 8F. PPF - 41.2 41.2 - 0.5 0.5 100 4

Tota BASLOEtXS 279.4 687.5 966.9 3.5 8.6 12.1 71 100Physical Cntigencies 20.4 72.7 93.1 0.3 0.9 1.2 78 10Price Cctingeuies 109.8 147.6 257.4 1.4 1.8 3.2 57 26hilemeatatJim Delay Contirgencxes 64.0 64.0 128.0 0.8 0.8 1.6 50 14

Total PRIBir COSTS 473.7 971.8 1,445.5 6.0 12.1 18.1 67 150- _ -_ _-__ -

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4.02 Project cost would include foreign financing of US$2.1 million ofrecurrent costs (11.0% of project cost) made necessary by budgetaryconstraints. Recurrent cost financing by external sources, however, wouldbe on a declining scale for input distribution (para 3.21) and for theAnimal Health and Animal Production components, for which recurrent costwould increasingly be financed by beneficiaries through cost recovery (para3.22). An analysis of the effect of the project on Government cash flowboth during and after the project is given in Chapter VI.

B. Financing Plan

4.03 The financing plan is summarized on page 28. IDA's participationin the project would be US$7.6 million (42.0% of project cost), 70.0% ofwhich would be foreign exchange. The African Development Fund (AfDF) hasagreed, subject to Board approval scheduled for April 1986, to contribute aloan of US$6.3 million equivalent, on terms identical to those of IDA. TheOPEC Fund has also agreed to participate, and the present financing planprovides for an OPEC loan (no interest, 1% service charge, amortization in17 years) equivalent to llS$2.0 million. The effectiveness of she IDAcredit would be subject tco effectiveness of the AfDF and OPEC financing.Together, foreign sources would finance 87.8% of total project cost;financing would be on a r.arallel basis, except for operating costs, whichAfDF and IDA would finance jointly (50% each). Financing of operatingcosts (both by AfDF and IDA) for the Animal Health and Animal Productioncomponents as well as for BIE would be on a declining sca3e, namely 100% in1986 and 1987, 75% in 1988, 50% in 1989, 25% in 1990 and none in 1991 andfollowing years. The National Development Fund (FND) 5/ would contributeUM 40 million (US500,000) and the Municipality of Nouakchott UM 3.2million (US$40,000). Beneficiaries are expected to contribute theequivalent of US$1.2 million and Gozernment about US$450,000. Together,domestic sources would finance the equivalent of US$2.2 million or 12.2% ofproject costs. IDA would lend to the Government which would pass the fundsto DNE as a grant.

4.04 IDA would finance stockwater development (except technicalassistance) for the pastoral cooperative associations, technical assistanceand consultants for management, input distribution, and all studycomponents as well as 50% of the externally financed incremental operatingcosts. Funds advanced under the PPF facility would be refinanced from theproceeds of the credit.

4.05 AfDF would finance civil works (except the slaughterhouse), allequipment and vehicles, the production improvement fund, training as wellas technical assistance for the animal health, animal production andstockwater development components. It would also cover 50% of externallyfinanced part of incremental operating costs. Supervision would as far aspossible be done jointly with IDA.

5/ FND is a national development bank which operates on commercialpzlnciples and lends on commercial terms.

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4.06 The OPEC Fund would finance 60.1% of the cost of the Nouakchottabattoir, the veterinary drug revolving fund and the externally financedportion (50% of base cost) of the revolving fund for animal feed. Theon-lending terms for OPEC funds to the Municipality of Nouakchott would beeecided between OPEC and Government on completion of the feasibility study.IDA would administer OPEC funds and would supervise the project on theirbehalf.

4.07 Government would finance the initial tranches (50% of base cost)of the revolving fund for animal feed (UM 36.2 million equal toUS$453,000). The National Development Fund has committed itself toproviding UM 40 million (US$500,000) for the construction and equipment ofthe abattoir and the District of Nouakchott will provide the abattoir'sworking capital. Beneficiaries' financial contribution will be madethrough cost recovery, the mark-up on veterinary products and other animalproduction inputs and the special import fee (see para 3.22).Beneficiaries' contributions included in the recurrent cost financing planhave been calculated on the basis of prudent estimates of the volume ofsales (Annex 6). Moreover, they have been included in the financing planwith a one-year lag, to account for administrative and other delays. Basedon these hypotheses, beneficiaries' contributions would towards the end ofproject implementation fully finance the incremental cost of field servicesplus the Animal Production Division of DNE (para 6.01). Government wouldalso continue to fund DNE at the same level (in real terms) as in 1985;assurances to that effect have been obtained at negot!ations and thesefunds are not included in project costs.

4.08 The recurrent cost financing plan does not envisage a Governmentcontribution, because of the tight budgetary situation and the already highlocal contribution. However, should the contribution by beneficiaries(para 6.01) not be adequate to finance (together with external financing)the incremental cost of field services and the Animal Production Divisionof DNE, Government would make up the difference. Assurances to that effecthave been obtained during negotiations.

C. Procurement

4.09 Stockwater development for the pastoral cooperative associationswould be carried out by the Hydrology Department of MDR under a contract tobe concluded with DNE. The Hydrology Department would use its own equip-ment and personnel to the extent available, but may also sub-contract partof the works. The proposed credit would provide necessary equipment thatis not already available and would finance materials and operating costs.The IDA-financed goods and works for this component would be grouped inhomogeneous bidding packages where feasible. The following procurementprocedures would apply: contracts of US$100,000 or more would be subject tointernational competitive bidding; contracts exceeding US$50,000 but lessthan US$100,000 would be awarded under limited international biddingprocedures acceptable to IDA; contracts under US$50,000 would be awardedaccording to local competitive procedures which are acceptable to IDA.

4.10 Consultants and technical assistance financed by IDA would beprocured in accordance with the "Guidelines for the Use of Consultants byWorld Bank Borrowers and by the World Bank as Executing Agency". Terms of

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reference and qualifications of all consultants and technical assistantsshall be subject to IDA agreement. Assurances to that effect were obtainedat negotiations.

4.11 Procurement arrangements are summarized in the table below, withthe figures in parentheses showing amounts to be financed by IDA.Miscellaneous materials (sand, gravel, cement) for stockwater development(listed under "other"), are likely to be procured in small quantities onthe basis of local competitive procedures, which have been evaluated by IDAand found acceptable. The procurement methods given in para 4.09 forstockwater development would also be used for projects financed under theProduction Improvement Fund. but since individual projects would not exceedUM 2.0 million (US$25,000), most are likely to be awarded to localentrepreneurs on the basis of local competitive procedures. The itemslisted under "N.A." concern operating costs except for scholarships awardedto staff of the veterinary school. Goods and services financed by AfDF andOPEC would bP- .. ocured in accordance with their respective rules. Since itcannot at tnis time be determined for what purposes the implementationdelay contingency will be used, it has been listed under N.A. Forexpenditures other than operating costs, the procedures described in para4.09 will apply.

Procurement Arrangements(US$ millions)

Procurement Method TotalItem to be procured ICB LCB Other N.A. Cost

Civil Works 2.5 0.1 - - 2.6Stock Water Development Cont. 0.4 - 0.1 1.0 1.5

(0.4) - (0.1) (1.0) (1.5)Equipment and Vehicles 1.5 - - - 1.5Consultants, Studies and T.A. - - 4.2 - 4.2

- - (3.0) - (3.0)Inputs 1.6 - - - 1.6Production Improvement Fund - - 0.9 - 0.9Scholarships - - - 0.4 0.4Operating Costs - - 3.3 3.3

_-_ - (1.0) (1.0)Repayment PPF - - 0.5 0.5

_-_ - (0.5) (3.5)Implementation Delay Contingency - - - 1.6 1.6

_-_ - (1.6) (1.6)

6.0 0.1 5.2 6.8 18.1

(0.4) - (3.1) (4.1) (7.6)

SECOND LIVESTOCK PROJECTFinancing Plan by Suwiary Accounts

(US 110001

MtA-MUN. or&(OF OPEC IOA NITRA*TN NOUARCHOI MIA-SEN. MIA*OOVT total Local

Aimunt I Amount I Amount I A,,ont I Amount I Amoeunt I &ncunl I Amount I For. Exch. Isueal

I. INVESTMENT costs

A. CIVIIMO RNS ' (CMI 1, 453.5 57. 9 553.6 22. 3 500.0 19.6 0. 0 0.0 2, 521. 2 14. 0 1. 285. I. 24T. 45. SIOCK WATER DEVELOPMENT [WE) 1, 470. 6 100. 0 . ... 1,470. 6 16. I 1,126.6 241. IC. EQUIPMNET Ito) 465 0.0 ..... 45.6 2.17 442.5 52. 20. VEHICLES IVHI 56. 9. 3.2 9. 5 -.. .. .96 5.5 931.0 46.61. I. A. AND CONSULTANTS IIAI 6655 I 26. 7 154. I 4. 1 2, 126. 7 65. 5 . ... 3,245.60 16.0 3, 076,4 Il6,.5F. STUDIES 1ST) - 8 52. 2100.0 . .. .. 52.2 4.71 458.2 394.0O. INPUTS (INI 1. 120. 3 69.5 .36.65 2.5 452.86261I 1, 612.6 66. 1,6510, 4 2. 4N. PROP. IMPROVEMENT fUND (P11 golo I 100.0 . . ... 06. I 5. 0 426,3 4116,60I. SCHOLARSHIPS (TEl 431. 7 100. 0 . ... 431.1 2. 4 214.5S 217.21ll. REPAIMENT PPF IPPI .515.0 100. 0 . . .. .51.0 2.92 515.0K. UNALLOCATED (UAI 113.68 5. 4 67. 9 3.6a 1,5607. 3 69.6 a 00 0.0 1, 766.0 9.9 I 666.0 600.0

Total INVESTMENT COSTS 5, 271. 3 5. 2,000. 0 13. 5 6, 571.6 44.3 500.0 2.4 36.6 0.23 452.6 2.1 14,635. 82. II. 166. 5 2.6046 5

II. RECURRENT COSTS

EQUIPMENT OPERATIO (EOI 64. 0 23, 6 8 4. 0 23.6 8 166. 0 52.68 0.0 0.0 356.0 2. 0 240.?1 115.3VEHICLE OPERATION (IVol 164.5a 26. I 164.6 26. I 302.6 47. 6 0. 0 0. 0 522.3 3. 5 425, 6 205,6LOCAL PERSONNEL ILPI 506.92 30. 9 - 508.6 30.6 . 526.5 36.2 0. 0 0.0 1,641.4 6. I - 1,6041.4MISCELLANEOUS INS) 210. 5 45.23 270.5 45.3 55.6A 9.4 0.0 0.0 566. 1 3. 3 260.2 306.5

Total RECURRENT COTS 1,026.2 31.6 . 1, 026, 2 31,6 8 . . 176. 1 36,4 0. 0 0. 0 3, 232. 4 17. 5, ,7,total Olsburganwnt 5,300.0 34,9 2,000.0 II. I 7,5$00. 0 42. I 500.0 2.68 36.5 0.2I 1,176.1I 5.5 452.6 2.5 16,016.5 100. 0 12, 1417.1 5,621.4

2221333 322l3 3233132 3133 3333113 33233 31332s oust 333233 3233 1333331 set3 f3r133 3i13 33132231 1333s 2323331233 2322223

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4.12 Contract Review. All bidding documents and contracts for IDA-financed goods and services subject to ICB and for supplies over US$100,000would be subject to prior review by IDA. Plans and specifications forgoods and works not financed by IDA would also be submitted to IDA forprior agreement.

D. Disbursement

4.13 Disbursement of the IDA credit would be against the categories ofexpenditure and within the limits shown below:

Disbursement Schedule for IDA Credit

Categories Amount % of Total(US$ million) Expenditures

(a) Civil Works a/ 1.5 100

(b) Consultants and Technical Assistance 3.0 100and Studies

(c) Incremental Operating Costs b/ 1.0 50

(d) Refinancing PPF 0.5 100

(e) Unallocated 1.6

7.6

a/ Stockwater development for Pastoral Associations.bI The disbursement percentage applies to the amounts eligible for

foreign financing, taking into account the declining scale applicableto some operating costs.

4.14 Special Accounts. In order to facilitate the pre-financing ofproject expenditure, a Special Account of US$200,000 representing about 3months of project expenditures, would be established from the proceeds ofthe IDA credit. The Special Account shall be operated under the jointsignature of the Director of Livestock and the Project Coordinator/Finan-cial Controller. Requests for reimbursement would be fully documentedexcept for operating costs (US$1.0 million), which would be reimbursedagainst Statements of Expenditure. Similarly, a SpecIal Account ofUS$200,000 would be established out of AfDF loan proceeds to pre-financeAfDB - financed project cots.

4.15 The disbursement profile adopted for the project is given inAnnex 4-1.

E. Accounts, Audit and Reporting

4.16 Accounts. DNE will establish and maintain separate projectaccounts for all project components in accordance with sound and generally

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accepted financial practices. With the technical assistance to beprovided, DNE will be able to fulfill this obligation. The ProjectCoordinator/Financial Controller would be recruited before crediteffectiveness under PPF financing.

4.17 BIE would keep its own accounts, including separate accounts foreach of the revolving funds for animal feed and veterinary drugs, themark-ups applied to the sale of these products and the transfers of fundsinto the Livestock Fund. Cost accounting would be applied to justifyprices and mark-ups. The existence of an adequate accounting system andthe recruitment of a Commercial and Financial Director and accountant forBIE would be a condition of effectiveness.

4.18 Audit. Project accounts (including those of the Input Distribu-tion Unit and the Livestock Fund) would be audited annually by independentauditors acceptable to IDA. An audit report would be submitted to IDA sixmonths after the end of DNE's fiscal year. The report will include astatement on the adequacy of the accounting systems and internal controlsand a statement as to wlether or not funds of IDA and cofinanciers havebeen used for their intended purposes. The report would also include anopinion on the Statements of Expenditure submitted for disbursement (para4.14).

4.19 Reporting. DNE would submit to IDA a semi-annual progress reportdrafted by the Systems Studies and Monitoring Team, which would monitor theentire project. The report would review project activities, includingpertinent monitoring indices, and summary project accounts. Governmentwould cause the DNE to prepare a report to serve as a basis for the interimevaluation (para 5.08), as well as a Project Completion Report within sixmonths after the project's Closing Date.

V. ORGANIZATION AND MANAGEMENT

A. Project Implementation and Present Status of Project

5.01 DNE would be responsible for project implementation. The projectwould not have a separate structure, but would be incorporated into DNE'sexisting structures of which a flowchart is shown in Annex 5-1. Eachcomponent would be executed by either the Animal Health or the AnimalProduction Division of the DNE. In the case of new activities (e.g.,systems studies and monitoring), a new section or entity would be estab-lished. The Project Coordinator/Financial Controller to be recruitedunder the project would be financial manager of the project, wouldcoordinate project implementation and would be financial adviser to theLivestock Director regarding DNE non-project financial affairs. He wouldco-sign, with the Director of Livestock, checks drawn on the SpecialAccounts (para 4.14) and would assist DNE in the preparation of withdrawalrequests. Assurances have been obtained at negotiations that:

(a) the accounts of DNE, BIE and the Livestock Fund would beaudited annually by an independent auditor acceptable toIDA;

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(b) the DNE and the ENvA would re-Introduce a vehicle inventoryand vehicle use control system; and

(c) the draft budgets of and annual work programs for DNE, BIEand Livestock Fund would be submitted to IDA for review andcomments (para 3.26).

5.02 Immediately after Board approval the search for candidates tofill key positions (project coordinator, financial controler, BIE'sCommercial and Financial Director and the ConstrLttion Engineer) willstart. They will be recruited as soon as possible after credit signatureunder PPF financing and their appointment is a condition of effectiveness(para 8.02(a)). Recruitment of other technical assistants (in particularthe Teamleader for Studies) will also be initiated after credit signature.The establishment of the Range Management and Stockwater Sections of theDivision of Animal Production was also negotiated as a condition ofeffectiveness (para 8.02(d)). Subsequent to negotiations, these have beenduly created by Government. BIE has also been established in a formsatisfactory to the association and the appropriate accounting system(required for effectiveness) will be established with the assistance ofconsultants (para 8.02(b)). Legislation setting up the Livestock Fund andintroducing the special import 'ee has been adopted (para 8.02(c)). Apartfrom cross-effectiveness conditions, the principal condition to besatisfied for IDA credit effectiveness is, therefore, the appointment ofthe key staff mentioned above. An implementation schedule is given inAnnex 5-2.

B. Input Distribution

5.03 For the import and distribution of livestock inputs, DNE willestablish an Input Distribution Unit (BIE) in Nouakchott (para 4.18). Asnoted, BIE will have financial autonomy, and will maintain separateaccounts (para 4.18). It will be headed by a Director with experience andqualifications acceptable to IDA (TOR, Annex 3-7). A suitably qualifiedMauritanian Director will be sought, but the project includes funds forinternational recruitment should such a candidate prove unavailable. Theoperating conditions for BIE (including commercial and pricing policy,disposition of merchandise, goods and equipment) are described in Annex3-2. Subject to these provisions, the Director will have wide authority inmanaging BIE.

5.04 BIE will use DNE's veterinary stations as sales outleLs. Veteri-nary staff will sell drugs and other inputs exclusively against full costpayment. The station chief will be responsible for keeping account ofstocks and cash. Periodically, but not less than once per month, a BIErepresentative will visit the station to take receipt of the money andconsolidate stocks and sales records. The BIE Director would report anydiscrepancies or uncovered Funds to DNE. The station chief will receive6.25Z of sales revenue, reduced by the stations' losses of cash or merchan-dise. Sales revenue will be applied as explained in Annex 3-2. The partcorresponding to recovered costs will be deposited in the bank account forthe revolving funds for drugs and feed.

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C. Livestock Fund

5.05 BIE would deposit revenue for the Livestock Fund in a specialbank account under the joint signature of the Director of Livestock and theFinancial Controller. Honey would be transferred to the Livestock Depart-ment to be used for agreed purposes against pe.iodic budgets prepared bythe Livestock Service, approved by the Minister of Rural Development andagreed upon by IDA. Similar procedures will apply to the Special TreasuryAccount (para 3.22).

5.06 A Supervisory Committee of BIE and the Livestock Fund would beestablished under the chairmanship of the Minister of Rural Development, orhis designate. The committee would include a representative of theMinister of Finance, a representative of the Minister of Plan and theSecretary General of the National Association of Livestock Owners. Thecommittee would oversee, but not direct, the generation of funds from thesales of inputs and their transfer to the Livestock Fund and would see thatresources from the Livestock Fund and the Special Treasury Account are usedproperly to fund field service operations of the DNE. It would approve theaccounts of the BIE and the project accounts and consider proposals for theuse of Livestock Fund proceeds prepared by the Director of Livestock forsubmission to the Minister of Rural Development.

D. The Pastoral Cooperative Associations

5.07 The approach to the creation of pastoraL cooperative associationsis described in paras 3.08-3.14. The associations would be organized inaccordance with the Law of Cooperatives of July 18, 1967. They would comeunder the responsibility of DNE and the MDR's Department of Cooperatives.The associations would be granted land use rights in accordance with theLaw on Land Ownership of June 05, 1983 and its implementing regulation ofJanuary 19, 1984. The question of access by the associatlon to "protected"or "'classified" lands would be regulated by the Forestry Code ofDecember 15, 1982 (Annex 1-2).

5.08 A mid-term review would be undertaken by Government and theresulting report submitted to IDA. The purpose of the review would be toexamine:

(a) the viability of all parts of the Project;

(b) the progress of establishment of Pastoral CooperativeAssociations and an estimate of the rate of future estab-lishment;

(c) BIE's performance and the need for construction of BIEfacilities at Kiffa; and

(d) the results of the systems studies and their possibleimplication for the Project design.

Assurances were obtained at negotiations that Government would undertake amid-term review no later than 2 1/2 years after credit effectiveness andsubmit the report to IDA within four months. The report shall provide an

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assessment of the Project's performance in accordance with key performancecriteria to be agreed upon with the Associations.

E. Training

5.09 Consultants would visit the project twice a year if needed andthe project would schedule these visits so that during a given two-weekperiod each year a seminar on all aspects of project implementation couldbe attended by senior project and ministry staff and the consultants.Professionals from the MDR and other ministries would be used as localconsultants at the ENFVR to give short courses in animal health, collectionand treatment of field data, stockwater development, environmentalprotection techniques, construction and abattoir management.

VI. FINANCIAL RESULTS

6.01 The project would not affect Government's recurrent expendituresfor the livestock sub-sector which in 1985 amounted to UM 20 million.During project implementation, beneficiaries and external assistance wouldfinance all incremental recurrent costs. Upon project completion, thefinancially autonomous BIE and the Nouakchott abattoir would beself-supporting as a result of full cost recovery. DNE's field servicesand Animal Production Division would be fully financed by beneficiariesthrough their contribution to the Livestock Fund and through the specialimport fee (para 3.22), whose revenue projections are given in Annex 6.The other components (strengthening of management, studies and stockwaterdevelopment for the pastoral associations), except training, would bediscontinued under this project upon its completion. As the followingtable shows, training after project implementation would require aboutUM 3 million per year (base cost) in incremental recurrent expenditure,which will be borne by Government. This, however, would be more thanoffset by about UM 10 million per yre-:r in savings on veterinary drugs andvaccines previously purchased by Government and distributed free of charge.Therefore, if BIE's cost recovery evolves as anticipated, the Government'scontribution to recurrent costs of the livestock sector might evendecrease. The table summarizes incremental recurrent project costs andtheir financing during and after project implementation.

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Incremental Recurrent Project Cb6ts and their Finanxnvg(mdiicks of Ut October 1985 prices)

Incremmntal Recurrent Costs 1986/87 1987/88 1988,89 1989/90 1990/91 1991/92 +

hrimal Health Cbmponent 12.0 12.0 12.0 12.0 L2.0 12.0Anima1 ProduCticia Ccmpnment 8.4 8.4 8.4 8.4 8.4 5.6Training Ccuxmat 4.6 4.5 4.5 4.5 4.5 3.0Distihiton Productim

Inputs Ccuicxent 3.7 3.7 3.7 3.7 3.7 3.7Other Cmpxonents 8.1 8.1 8.1 6.8 6.8 -Unallocated for field services - - - - - 4.4

Total 36.8 36.7 36.7 35.4 35.4 28.7

Beneficiaries - 10.5 13.8 17.2 20.4 22.0Cost reovery BIE - 0.9 1.9 2.8 3.7 3.7Goveruent - - - - - 3.0Foreign Assistance 36.8 25.3 21.0 15.4 11.3 -

Total 36.8 36.7 36.7 35.4 35.4 28.7

VII. BENEFITS, JUSTIFICATION AND RISK

A. Benefits

7.01 Project benefits are of four types:

(a) improved knowledge and understanding of the livestock s etorand the start of better resource management through thecreation of pastoral cooperative associations;

(b) elaboration of a development plan for the sector, thepreparation of follow-up proj cts;

(c) institutional and structural reform, particularly withrespect to the financing of public livestock services andthe removal of price distortions; and

(d) increased production.

7.02 Profound structural changes are needed to put the sector on asound footing. Systems studies (herd composition and ownership, herdmovements, grazing rights, and the economics of animal husbandry forvarious types of herds) would be an important project benefit. They wouldyield the basis for a policy discussion on the future of animal husbandryin Mauritania and would lead to an overall development plan for the sector.In this connection, the experience to be gained from the experiment with

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the pastoral associations is most important. The M4auritanian authoritiesattach great value to this component and it will significantly add to theknowledge of the sector and to Government and donors' ability to influenceits evolution.

7.03 Institutional reforms in the financing of public livestockservices would also result. Systematic application of full cost recoveryfor drugs, vaccines and feed, as well as services performed by the regionallivestock services, would make public livestock services less dependent onscarce budgetary resources and would therefore sustain benefits beyond theproject period. Full cost recovery is likely to bring about somestructural adjustments. Because livestock owners would have to pay thefull financial cost (though not the full economic cost since they stillwould not pay for scarce pasture resources) some marginally profitableherds may be eliminated, thus reducing stock numbers. Moreover, cattlehave benefitted most from sectoral subsidies. Vaccinations againstrinderpest and CBPP (only given to cattle) have been free and cattle ownershave probably disproportionately benefitted from free or below-cost feeddistributions. As these and other subsidies cease, the economics of cattleraising will change and animal selection will be made on the basis ofsuitability for the environment. This would favor the hardier camels,goats and sheep, thus reducing production costs.

7.04 Incremental production would be achieved through a better animalhealth coverage and emphasis in extension work on improved productiontechniques and resource management. At present, the sector is not workingat optimal efficiency. In particular, there is a discrepancy between feedresources and the size of the national herd. Other problems include lowculling rates and a possible preference for cattle over camels, goats andsheep. Improved animal health coverage would yield positive benefits evenat sub-c-timal levels of efficiency. While no firm data support the claim,these benefits may be even larger in times of drought and feed shortageswhen there are more weak animals. The discrepancy between herd size andfeed resources would therefore not justify reducing or suspendingpreventive animal health care. This is all the more true for Mauritania,which, in periods of drought, also extends animal health care toMauritanian herds in Senegal. Critical 'tements of the system (feeding,culling, pasture information, support for herds stranded by feedshortages), would also be addressed through DIRE's extension work withlivestock producers. Since there is no ready solution to the problem ofoverstocking, the project can only assist by making feed available in thefield (at full cost) to assist herders in overcoming short term problem.

B. Economic Justification

7.05 The uncertainties and risk surrounding the project make thecalculation of an economic rate of return not very meaningful. Ho-iever, itis possible to estimate what incremental production would be needed toobtain a sufficient rate of return. This has been done by taking intoaccount only the meat value of incremental production, assuming thatincremental production will result in higher off-take and not in anincrease in herd size. If the latter had been assumed, incremental milkproduction would also have been counted. It has also been assumed thatonly 50Z of the benefits would be realized in PY 1, 75Z in PY 2 and that

- 36 -

the full amount of benefits would be obtained only beginning in PY 3.Under these hypotheses and those mentioned in Annex 7. the project wouldshow an economic rate of return of more than 10%, with an incrementalproduction of about 7,600 tropical livestock units (TLU) per year due toproject activities. The incremental production would come from preventivehealth care (vaccinations), the use of curative and antiparasitic drugs andtreatments, and from the availability of feed and improved wateringfacilities. This seems an attainable goal, as it represents only 0.4% ofthe herd. A satisfactory economic rate of return therefore seemsattainable.

7.06 Sensitivity analysis has been done on the duration of projectbenefits. It shows that the project is not particularly sensitive to theduration of project benefits. While an incremental production of about7,600 TLUs will be sufficient to reach a 10% ERR, when assuming 20 years ofproject benefits, an incremental production of only about 900 TLUs morewill suffice each year should project benefits accrue only over a 10-yearperiod. An annual incremental production of 8,500 TLUs is still only 0.45%of the herd and seems quite feasible.

C. Risks

7.07 The project entails considerable risks. The formation ofpastoral associations is a pilot activity, and although examples ofprogress in similar efforts do exist elsewhere in the region (such as inNiger and Mali), it is not certain that it will succeed in Mauritania,where the socio-economic and political situation is different. The studiescomponent would provide the expected insight into the sector, but it willhave to be seen whether this will result in a viable development planand/or follow-up projects; in case of inadequate rainfall, which wouldthreaten the sector's very existence, the results of the studies andanalyses may even beocme irrelevant.

7.08 The anticipated incremental production may not be realized ifrainfall does not resume at a sufficient level. Livestock production wouldremain stagnant in that case, although output might still be higher than inthe "without project" case. If rainfall continues to diminish, animalhusbandry will become impossible and the greater part of the investmentwould be lost. Production might also be compromised by unexpectedresistance by livestock owners to the cost recovery principles underlyingthe project. In that case, activities of the livestock regional servicesmay drop below the level that would justify the project. Since somelivestock owners are politically very powerful, their resistance mightaffect Government motivation regarding the project. A special PPF wasapproved to allow the DNE to take action (repair of vaccination crushes)and to extend tc the livestock owners the idea of the project. Themid-term review (para 5.08) provides assurance that this type of potentialproblem would be dealt -with at an early stage.

7.09 Resistance to cost recovery measures would also affect thedesired institutional and structural reforms. Without cost recovery, thefield services would again become dependent on the national budget, andwould receive inadequate funding for their activities. Moreover, BIE wouldcease to exist and drug and feed distribution in the field would stop.

- 37 -

Finally, without systematic cost recovery, the distortions that keep thecost of maintaining livestock artificially low and favor cattle over sheep,goats and camels would remain.

7.10 The above risks must be assumed, however. Failure to implementthe project would mean abandoning the sector to its current downwardspiral. The destruction of the production potential of the sector wouldcause unacceptable further decline in income and in the living standards ofthe rural populations.

VIII. ASSURANCES AND RECOMENDATIONS

8.01 During negotiations, assurances were obtained on the followingpoints:

(a) Pastoral Cooperative Associations

i) only bona fide cooperative associations formed bypastoralists would benefit from the well constructionand maintenance program financed by the project; and

ii) the pastoral cooperative associations, once identifiedand established, would be allocated legally enforceablegrazing and stockwater rights, including the right todeny access to blocks of grazing which they wish toimprove and to which its own members have no access(para 3.14).

(b) Systes Studies and Monitoring

i) Government would cause the CNERV and the AgriculturalStatistics Unit of the MDR to cooperate fully with theDNE studies team; and

ii) the DNE studies team would be formed of professionalsselected for their experience and motivation (para3.19).

(c) Distribution of Production Inputs

i) there would be no restrictions on private domestictrade in veterinary drugs, vaccines or animal feeds,other than those pertaining to technical requirementsand quality control;

ii) BIE would, for all veterinary drugs and vaccines andall animal feeds, charge full cost c.i.f. at place ofsale plus a mark-up sufficient to realize cost recoveryfor DNE field activities;

iii) this would be deposited in a Livestock Fund, theproceeds of which are to be used for DNE's field

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operations, including the Division of AnimalProduction, against a budget to be agreed upon by IDA;

iv) an import fee of 9% of c.i.f. costs would be institutedon all veterinary products imported through privatechannels and the revenue deposited in a SpecialTreasury Account earmarked for financing the sameexpense items as the Livestock Fund;

v) BIE would be authorized to control all financial andstock movements related to the sales of drugs, vaccinesand feed; and

vi) Government would not distribute drugs, vaccines andfeed including those received as foreign assistanceoutside of BIE channels (paras 3.21 and 3.22).

(d) Range Management and Stockwater Sections

These sections would be operated in accordance with terms ofreference satisfactory to the Association (para 3.28).

Ce) Production Improvement Fund

The fund would only be accessible to pastoral cooperativeassociations or, exceptionally and with the approval of IDA,to well established groups of traditional pastoralists withno access to bank credit or other kinds of rural developmentfunds (para 3.30).

(f) Nouakchott Abattoir

The abattoir would be operated as a financially autonomousentity on a commercial basis and would charge fees allowingfull cost recovery, including depreciation (para 3.32).

(g) Government Financing

i) Government would continue to fund DNE at the currentlevel (para 4.07);

ii) Government would finance the difference between on theone hand the incremental operating costs of fieldservices (including the Division of Animal Production)of DNE and on the other hand the financing for theseexpenses provided by external financing plus thefinancial resources arisinp from the Livestock Fund andthe special import fee (para 4.085.

th) Technical Assistance

Assurances would be sought at negotiations that all tech-nical assistance contracts including the conditions of

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employment and terms of reference of individual consultantswould be cleared with IDA (para 4.10).

(i) Strengthening of Livestock Services

i) the accounts of DNE, BIE and Livestock Fund would beaudited annually by an independent auditor acceptableto IDA;

ii) the DNE and the ENFVA would re-introduce a vehicleinventory and vehicle use control system; and

iii) the draft budgets of and annual work programs for DNE,BIE and Livestock Fund would be submitted to IDA forinformation (para 5.01).

%'j) Hid-Term Review

Government would undertake a mid-term review no later than2 1/2 years after credit effectiveness and submit the reportto IDA within four months for its review and comments. Thereport shall contain a detailed examination of:

i) the cost viability of all parts of the Project;

ii) the progress of establishment of Pastoral CooperativeAssociations and an estimated of the rate of futureestablishment;

iii) BIE's performance and the need for construction of BIEfacilities at Kiffa; and

iv) the results of the systems studies and the implicationfor the Project design.

The report shall draw an aesessment of the Project'sperformance in accordance with key performance criteria tobe agreed upon with the Association (para 5.08).

8.02 Conditions of effectiveness would be:

(a) appointment of the Project Coordinator/Financial Controller,the Commercial and Financial Director of BIE and theConstruction Engineer (para 5.01);

(b) the establishment of BIE and the creation of an appropriateaccounting system (para 3.23);

(c) the creation of the Livestock Fund and the introduction ofthe special import fee (para 3.22);

(d) the establishment of the Range Management and StockwaterSections of the Animal Production Division of DNE (para3.28);

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(e) the AfDF Loan Agreement and the OPEC Fund Loan Agreementhave been executed and delivered and all conditions prece-dent to their effectiveness or to the right of the Borrowerto make withdrawals thereunder, except for the effectivenessof the Development Credit Agreement, have been fulfilled(para 4.03).

8.03 With the above provisions, the project constitutes a suitablebasis for an IDA development credit of US$7.6 million to the IslamicRepublic of Mauritania.

WAPACJanuary 13, 1986

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ANNEX 1-1

Page 1 of 6

ISLAMIC REPUBLIC OF MAURITANIA

SECOND LIVESTOCK PROJECT

NEW TRENDS IN PASTORAL DEVELOPMENT

A. Introduction

1. The approach to pastoral development has undergone considerablechange since the 1970s, mainly because earlier projects, geared pre-dominantly to top-down technical change, did not produce the desiredresults. Attention shifted towards new strategies; several books haveappeared, workshops have been held, and the International Livestock Centerfor Africa (ILCA) has undertaken an interdisciplinary study on threeselected Maasai Group Ranches in Kenya, the results of which are soon to bepublished. The general consensus so far is that: (a) developmentinterventions can achieve little without the participation of pastoralists;and (b) the key to productivity is better resource management by thelivestock owners themselves. Interventions today consist mainly ofinvestments to improve the quality of pastoral life: human and animalhealth, stockwater conservation and development, and training for betterresource management.

2. The potential for improving range productivity is limited. Thetechnology developed in Australia and the United States is veryenergy-intensive and at present inappropriate for traditional livestockproduction systems in Africa. Stock numbers must therefore be brought intoline with the carrying capacity of the range, which is being reduced byexpanding crop cultivation and decreasing rainfall. Better management ofrenewable resources on the communal rangelands represents a challenge.Some measure of social and territorial organization must be instituted andthe responsibility of pastoral groups for their traditional grazing areasrecognized. Pastoral. development has therefore become concerned with thehuman resources and the idea of producer group participation has graduallytaken center stage.

3. With the focus of development efforts moving from Government tothe livestock production system itself, the design of a project requiresprior knowledge of the priorities of those systems. If such knowledge isscarce, part of a first project may be devoted to a study of the system.Such a project would include a 3-year study of the sector, particularly theeconomics of the production system. It might also include provision ofinfrastructure, inputs, animal health/services, and staff training. Arelat±icship of trust must be created between those doing the study and thepastoralists, so that the latter can be intimately involved in the projectdesign.

4. Inputs for animal health and production need to be made availableto those livestock owners who desire them. They would consist ofveterinary drugs and vaccines, animal feeds and feed supplements.Veterinary drugs used to be free in Mauritania and in many other Sahelian

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ANNEX 1-1Page 2 of 6

countries and hence tended to be scarce as pressure on the national budgetincreased. Import and distribution networks need to be reorganized.Domestic distribution should preferably be done by the private sector underthe supervision of the Livestock Department. Where this is not possible,an interim solution must be found by involving the public sector untillivestock owners are sufficiently organized to take over. Wheneverfeasible, imports should also be handled by the private sector. However,there are cases where, for reasons of quality control and technicalconsiderations, Government wishes this to be done by a public agency. Ifthis can be well organized (and satisfactory examples of this exist), thisshould also be acceptable.

5. Most Governments have a livestock department, generally in theEinistry of Agriculture or Rural Development. These were set up prior toindependence as regulatory services concerned only with animal health andtaxation. National livestock services in the future must be different.While it is true that preventive vaccination against major epidemics willstill be required, this should no longer be the only or even main activityof the department. Nor can the attitude of the extension agents continueto be that of the regulator who orders the livestock owners around. Thenew role of the livestock department and its agents will have to be that ofa collaborative advisory service whose operations are made possible by thecontributions of livestock owners and whose main occupation will be toadvise on the rehabilitation and maintenance of renewable resources such asrangelands and stock water, to inform the livestock owners about marketopportunities and to facilitate the transfer of animals and other productsto internal or external markets. To achieve this, all staff will have tobe retrained and gradually reoriented. Moreover, a much stricter technicalmanagement of the department will be required to keep costs to a minimum.

6. Training is important both for agents of the livestock departmentand for livestock owners. This concerns not only training of new staff ofthe department but also re-training of all in-service staff. Training oflivestock owners is required to make them understand the new approach ofthe service, including the fact that in one way or another they are goingto cover the cost of all operations ex_.ept personnel salaries. Wheregrouping of pastoralists into Pastoral Associazions is achieved (seebelow), training of the officials of these associations will be necessary.Finally, livestock technicians will have to be trained in the management ofrenewable resources for animal production (grazing and stock water) inorder to be able to advise the associations.

B. Pastoral Associations

7. The concept of the Pastoral Association (P.A.) is that groups ofpastoralists who normally live and move together should formalize thisinterdependency by the creation of a legal association that can act for thegroup in matters of credit and input procurement, and negotiate with otherP.A.'s and political/technical agencies of Government. The establishmentof the association would be undertaken by a team (sociologist, livestockspecialist and cartographer). The grazing lands of the group would be

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ANNEX 1-1Page 3 of 6

identified, and the traditional rights of access by any third party wouldbe recorded. Usufruct rights would then be allocated, subject to therespect of the rights of third parties, in exchange for a commitment tomanage the grazing land in accordance with sound practices and the adviceof the Regional Livestock Servi.ce, which would have the responsibility forextension and monitoring. Any third parties contesting the allocation orwishing to register its rights to use the area would have to apply to thelocal authorities. Once the group has been officially registered with thelocal authorities, it would be eligible for credit or technical assistancefor stockwater development, i.e., extension advice, repair of existingwells or the construction of new ones.

8. The principle with respect to credit could be that the associa-tion would first have to demonstrate its commitment by depositing a certainamount (possibly 25% of the estimated cost of the investment). In the caseof a very large investment, e.g., a deep-well/storage well complex, thedeep well could be subsidized by Government, and the storage well financedon credit once the downpayment had been deposited. For smnllerinvestments, a Production Improvement Fund may be established which wouldsubsidize small rural works or firebreaks on condition that the groupprovides a significant part of the cost in cash or kind.

9. The goal would be to create associations incorporating 400-500families (8-10,000 head of livestock) to facilitate administration. It isnot certain that such large groups would be easy to form, however. Thelarger units would probably be more effective in representing thepastoralists at the local and the national level, but they could only beformed after both officials and members had benefited from extensivetraining. On the other hand, larger groups may be more subject to internalrivalries. Only experience will show what is the optimal size. Acompromise might be the formation of several smaller associations (30-50families) which are then consolidated into one large, registered andofficially recognized association.

10. The group approach is facilitated by the fact that many Govern-ments are now moving towards decentralization, with rural producer groupsnow encouraged to take responsibility for their own affairs. In sedentaryagriculture, this has led to greater importance oc village groups, whichhave responsibility for input distribution, credit and sometimes marketingof their production. This change of attitude is partly due to nationalbudgetary pressures.

11. As far as resource management goes, the risks associated withpastoral associations are that the allocated grazing areas may beoverstocked by the associations and might suffer degradation. In theory, agroup that is not respecting the contract could be evicted, but this wouldnot be so easy in practice. There is also a social risk involved, in thattraders and politically influential people might form associations inbetter areas and around wells, thereby discriminating against the smalllivestock owners. Finally, there is the risk that the credit may not berepaid once the stockwater has been provided. Traditional pastoralists are

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ANNEX 1-1Page 4 of 6

generally known as reliable debtors in their own environment, but they maynot be able to handle institutional credit the same way.

12. The World Bank is presently involved in financing two projectsinvolving pastoral groups: one in Niger (Projet Elevage Ceutre-Est Cr.885-NI of March 1979) and one in Mali (Operation de l'Elevage Mopti (ODEM)Cu. 538-MLI of May 1985). Nearly a hundred groups have been formed underthe Niger project (Groupes Mutualistes Pastorales (GMP)). Each groupconsists of 30-50 families who work together and often have the same chief.Five pastoral centers have been constructed to serve as outposts for thetechnicians from the Livestock, Human Health and Adult Literacy Servicesand for seconded officials from the Cooperative Service (UNCC). Unfortu-nately, the severe drought of 1983-84 has delayed the start up of thecenters.

13. In Mali, a major study was carried out by tne InternationalLivestock Center for Africa (ILCA) under contract to the ODEM project inthe Niger Delta. The project is now engaged in the formation of the firstassociations, an activity to be continued under the follow-on Mopti AreaDevelopment Project. In an early experiment, an association was formedaround a borehole fitted with a solar pump and a contract was drawn up.For six months the arrar.&ement worked very well until the pump ceased tofunction, thus preventing the full experience from being gained. Theassociations would primarily be developed by the Mopti Area DevelopmentProject in two locations on about one 1 million hectares of grazing landwhich were underutilized because of the absence of stock water. Theformation of associations wvuld therefore be paired with stockwaterdevelopment and the allocation of dry season grazing. In Niger, on theother hand, all GMPs are based on existing traditional groups and theGovernment has not yet made a decision on the subject of allocation ofusufruct rights; consequently, stockwater development has yet to take placethere.

14. The dynamics of change in the livestock sector should not beunderrated. Ownership of livestock, and especially of cattle, is shiftingfrom the traditional pastoralists to the cultivators who used to be theirclient/customers (or even former slaves) and to the modern absentee owner,who might get a higher yield from livestock than from a bank and alsoobtain great satisfaction and prestige from being a cattle owner. Onemight even eventually envisage a much diminished pastoral populationentrenched in the uncultivatable arid and semi-arid zones and surviving thedry season either by grazing crop residues or actually importing feed orby-products from the agro-industries. At the same time, the mono-culturefarmer would have become a mixed farmer, rotating fodder ane cereal cropsin order to maintain his livestock production for consumption and surplussale. The absentee owner may disappear for several reasons: (a) it wouldbecome harder to find free grazing or wells which were not appropriated bya group; (b) investment possibilities would become more attractive thanowning cattle; and (c) Government policies would actively discourage thisform of capital shelter in order to protect renewable resources and therural producer.

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ANNEX 1-1Page 5 of 6

15. In summary, therefore, the pastoral association is the logicalalternative at this stage, if we discard high-energy solutions as toocostly. However appealing and logical, however, it is not a provenintervention and may not materialize, especially if it is not fullyunderstood or accepted by politicians. But it coincides with a drasticchange in government policy from centralization to village and groupself-management and with the appearance of well-trained nationalprofessionals with sufficient insight and motivation to implement theconcept. Finally, after a decade of low rainfall, pastoralists realizethat isolation and inactivity do not get them anywhere. They seem to beready to try anything that promises to improve their situation. Therefore,the concept of pastoral associations should be tried but it should beclosely guided to avoid failure due to sidministrative weakness rather thanto any intrinsic weakness of the concept.

C. Establishment of Pastoral Associations under the Project

16. This component was given high priority in the preparation docu-ment and it may eventually become the most important component in pastoraldevelopment in Mauritania. The appraisal mission agreed with Governmenthowever, that there were too many inponderables regarding the pastoral andagro-pastoral production syst-s and that an experimental LppjLach would bemore prudent.

17. The cattle herds of Mauritania are owned by three main groups:(a) traditional Maure pastoralists; (b) Maure traders and Governmentofficials who, since the great drought in 1972, have increasingly tended topurchase cattle from traditional producers and have established large "newherds" often herded by the former owner who has become a salaried herdsman;and (c) the traditional Peul agro-pastoralists (Fulbe diesi et Fulbe wale)who, although they have been in the country a long time, have notraditional rights to land but are instead purchasing access to land fromthe Maures. It is not certain who owns the largest part of the nationalherd, but indications are that tihe traditional Maure pastoralists own asmall percentage perhaps as low as 20% and that the two other groups sharethe rest about equally.

18. Production system studies will bring improved understanding ofwhat is going on. The low-cost traditional system of production isthreatened with extinction. Whatever new system emerges will almostcertainly have higher costs. Such a s7stem is also unlikely to be theresult of a natural "free market adjustment", since political forces areclearly at work in the sector. The establishment of pastoral associationsmay therefore -be the only means by which the traditional pastoralistsystems can survive to some extent - by organizing into self-sustaininggroups u-cufruct rights to their traditional grazing lands, collectiveresponsibility for their own economy including the improvement of theirgrazing lands, and access to credit that would restore cattle ownership toviable households in the associations and thus maintain the viability ofthe group in the face of competition.

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ANNMK 1-1Page 6 of 6

19. The establishment of pastoral associations demands thoroughpreparation consisting of a detailed socio-economic survey of the area,pasture inventory, and assessmenu-, 3 ol stockwater points and traditionalrights. The survey team establishes contact with other pastoral groups inthe area and starts a dialogue with- them, culminating in the generalassembly which formally establishes the association. The survey andestablishment are carried out by an interdisciplinary team of Nauritanianprofessionals (a sociologist, a pastor4ist and a cartographer) assisted bya consultant in anthropology and econ o cs.

20. Experience so far shows that the first groups to be identifiednormally consist of 30-50 families and their livestock. It would probablytake ten such groups to form an association of the desired size. Each ofthese ten pastoral groups should be formally established and given trainingin the new role, as well as the opportunity to handle a small revolvingfund for bas.ic supplies (tea, sugar and grain) before their consolidationinto an association is attempted.

21. Once the association is established, responsibility for itsday-to-day servicing is transferred to the nearest regional livestockcenter which requests from the department the necessary extension service(pasture mmnagement, stockwater development and housing) and assists withthe provision of veterinary drugs and an-mal production inputs for sale.

22. Each group will employ an agent selected from the group itself.This agent will receive basic trailing in veterinary first aid from theveterinary station and will become the contact between the group and thenearest regional center. Onche the association is formed, its needs interms of pasture management-.rnd stockwater development will be assessedthrough joint visits by the stockwater and range management officers fromthe animal production division. The animAl production officer would visitto advise on the use of minerals, feeds and feed supplements. The associa-tion could buy inputs directly from BIE and would receive a commission onsales to be used mainly for paying the agent, but also to establish acommon fund for maintenance of wells and other structures.

UAPAC

August 1985

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ANNEX 1-2page 1 of 3

ISLAMIC REPUtBLIC OF MAURITANIA

SECOND LIVESTOCK PROJECT

LEGAL ASPECTS OF PASTORAL COOPERATIVE ASSOCIATIONS

A. Introduction. A legal expert of the World Bank visited Mauritania13-19 July 1984 and reviewed the legal aspects of the project. Hisfindings are summarized below.

B. Legal Texts. The local Project Team (Direction de l'Elevage,Ministare du Developpement Rural) opted in favor of the cooperative form oforganization. The Law on Cooperatives (Loi No. 67.171 du 18 juillet 1967portant statut de la Cooperation) and its Regulations (D&cret No. 67.265 du4 novembre 1967) provide an appropriate basis for the execution of theProject. The following legal texts have been filed with the legal library:

(a) Ordonnance No. 83.127 du 5 juin 1983 portant r6organisationfonciere et domaniale;

(b) Decret No. 84.009 du 19 janvier 1984 portant application del'Ordonnance du 5 juin 1983;

(c) Ordonnance No. 82.171 portant Code Forestier;

(d) Loi No. 64.098 du 9 juin 1964 relative aux associations;

(e) Loi No. 73.157 modifiant la loi No. 64.098 du 9 juin 1964relative aux associations;

(f) Decret No. 48-76 du 3 mai 1976 fixant les attributions duministre du developpemenr Rural et l'organisation del'administration centrale de son departement;

(g) Loi No. 67.171 du 18 juillet 1967 portant sta ut de lacooperation; and

(h) Decret No. 67.265 du 4 novembre 1967 en application de laloi No. 67.171.

C. Special Features

1. Especially attractive features are:

(a) the 'groupement pre-cooperatif" during the initial period ofat least two years, during which simplified accounting andfinancial information procedures are applicable and specialorganizational assistance is provided by the Ministry ofRural Development ('MRD");

(b) continued availability of assistance by the cooperativeservice of the MRD;

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ANNEX 1-2page 2 of 3

(c) existence of the cooperative credit system; and

(d) exoneration of taxes and administrative charges.

One important aspect is that cooperatives come under the supervision of theMRD, the Ministry responsible for the Project, while Associations comeunder r.e authority of the Ministry of Interior. The NDR has developed acomplete list of prototype documents (that can be adapted to particularpur7oses) for use by prospective cooperators to create and establish acooperative.

2. The second key aspect of the Project is that the cooperativeswill be given preferential rights to their grazing lands in return for theobligation to maintain and develop these lands. The preparation documentproposed to accomplish this through the grant of land use rights ("droitsd'usage"). A new law on land ownership was enacted (Ord. No. 83.127 du 3juin 1983 portant reorganisation fonci6re et domaniale), as well as imple-menting Regulations (Decret No. 84.009 du 19 janvier 1984). The principalfeature of these texts is that they abolish all traditional forms of landownership (based variously on tribal, ethnic and social factors) and opt infavor of Islamic law ("Charia"). The texts translate some key (but vague)principles of the Charia in more or less specific terms, the unt result ofwhich, and this result is very clearly stated, is that all vacant andundeveloped lands belong to the State.

3. Much of the Ordonnance and Decret are devoted to the implementa-tion of the abolition of traditional forms of ownership (through "indivi-dualization" of lands held formerly by local chiefs or notables and used bythe community) and to the manner of transfer of ownership of State lands.For the Project, the principal features are:

(a) that the great variety of traditional forms of ownership nolonger constitutes an obstacle, as most of these lands nowbelong to the State;

(b) in instances where traditional ownership was acquired inaccordance with the criteria of the Ordonnance and Decret,and therefore legally protected (Decret, Art. 2), thenormally obligatory individualization can be avoided throughformation of a cooperative (Decret, Art. 21); and

(c) the Government can deal with its own lands as it sees fitand the possibility of leasing them is expressly recognized(!Mcret, Art. 23).

Consequently, most of the land rights to be given to pastoral cooperativesunder the Project will be in the form of leases, which can specify allnecessary conditions for proper management and development of the lands andall third-party rights (e.g., access of others under drought conditions).

4. Another important piece of land legislation is the Forestry Code.The Forestry Code (Ord. No. 82.171 du 15 decembre 1982 portant Code

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ANNEX 1-2page 3 of 3

Forestier) is unusually broad in application: it applies not only totraditional forests, but also to "formations veggtales" that yield certainmaterials such as bark or tannin (Art. 2), and to all places where landclearing is prohibited, which include Inter alia hillsides, banks ofrivers, degraded fields near water wells and, generally, all "perimentres deprotection" and "perimetres de reboisement" (Arts. 3, 4, 11, 15). The Coderecognizes certain land use rights, including the use of land for grazingby animals (Art. 24-3). These rights are circumscribed in various ways,depending on whether the lands fall under the "doinaine prote_g" (Arts. 29,30) or the "domaine classe" (Arts. 31 through 37). Vacant "forests","forests" that have not been exploited and maintained for five years,"forets class6es" and "perimetres de reboisement 'classes"' are declared tobe owned by the State (Art. 1). In this respect, the Forestry Code is theforerunner of the Land Reform Law (para 2 supra). Its interest for theProject is obvious: even though it contains some very restrictive provi-sions, which could conceivably be turned against the Project (e.g. in the"domaine classe" grazing may be allowed but without the possibility for theherders to pitch their tents there - Art. 32, and no land use rights areallowed in the "perizmtres de reboisement" - Art. 35), on Government-ownedlands and in the "domaine protege", priority rights can be accorded. Themanner in which this is to be accomplished is through application of theLand Reform Law on all lands that under the Forestry Code belong to theState or through specific acts of "reglementation forestie-e" (which couldbe 'arretes" of the Governor of the region concerne d or of the Minister ofRural Development) for lands in the "domaine protiEg".

5. The overall conclusion on the matters discussed above is that theexisting legislation and reglementation provide a workable legal frameworkfor the execution of the Project. The specifics of the organization ofpastoralists and the manner and conditions in which lands will be put attheir disposal will have to be determined in each case on the basis of thedetailed investigation ("engufte") of local conditions that will be carriedout under the Project for each potential group of beneficiaries. In theevent supplemental regulatory texts should be required in individualinstances, they can be prepared by the services of the MRD in cooperationwith other competent authorities (as is already current practice). In anycase, each specific instance of pastoral grouping and the conveyance ofattendant rights to Government-owned lands will, in view of the vast areasconcerned, and the importance for the population involved, be the basis ofa report made by the Minister of MRD. Consequently, there is no need tohave texts prepared as conditions of negotiations or effectiveness. In theproposed PPF request, the legal assistance component can therefore safelybe eliminated.

UAPAC

August 1985

- 50 -

ANNEX 2

ISLAMIC REPUBLIC OF MURITANIA

SECOND LIVESTOCK DEVELOPMENT PROJECT

BIF[iGET OF THE DIRECTORATE OF LIVESTOCK ANDREGIONAL LIVESTOCK SERVICES

(millions of UM)

1984 1985

Directorate of Livestock

Vaccines/Drugs 10.0 9.0Materials for field trips 0.1 0.1Gasoline/oil 0.9 1.3Commtnications 0.1 0.1Paper, forms 0.3 0.2Travel 0.1 0.1Vehicle maintenance 0.9 1.3Miscellaneous 0.1 0.1

12.5 12.2

Regional Livestock Stations

Gasoline and oil 2.5 2.6Water and electricity 0.3 0.2Communications 0.1 0.1Paper, forms 0.3 0.3Materials for field trips 0.2 0.2Travel 2.0 1.6Vehicle maintenance 2.5 2.4

7.9 7.4

TOTAL 20.4 19,6

Source: Directorate of Livestock

WAPAC

August 1985

- 51 -

ANNEX 3-1page 1 of 2

ISLAMIC REPUBLIC OF MAURITANIA

SECOND LIVESTOCK PROJECT

SYSTEMS STUDIES, MONITORING AND PROJECT PREPARATION

1. Although this is the second IDA-financed livestock project (fiveother past or ongoing projects of a similar nature were financed by otherdonors) we know very little about the micro-economics of livestock produc-tion in Maurit-.nia. The DNE would correct this situation by planning andexecuting a multidisciplinary study of existing livestock productionsystems and by formulating a livestock development strategy to be submittedto Governmeut for approval. It would subsequently plan follow-on inter-ventions in the subsector for financing by international donors.

2. The systems study would be carried out in five locations selectedfor being representative of:

(a) camel production;

(b) predominantly small-scock production (two sites); and

Cc) predominantly cattle production (two sites).

In each site the team would carry out a household survey with regard toproperty, income, gifts, loans, links to other groups and emergencystrategy. In each of the five locations the CNERV would carry out simulta-neously with the above household surveys, surveys of:

(a) viral diseases in small ruminants;

(b) mortality in young stock;

(c) the use of supplementary feeding in the dry season; and

(d) herd structures in cattle and small stock.

In addition, CNERV would at the request of DNE carry out a minimum of twoserological surveys to ascertain the effective immunity against Rinderpestand Pleuropneumonia following the annual vaccination campaign. At the sametime CNERV carry out spot checks for infectious abortions, and otherdiseases.

3. The Office of Agricultural Statistics of the Ministry of RuralDevelopment (CT/MDR) would be associated with a data collection andanalysis in accordance with a contract to be established with the DNE. Theproject would finance international technical assistance in the form of thevisits of one or more consultants from the International Livestock Centerfor Africa (ILCA) which has considerable experience in the planning,execution and analysis of livestock systems studies.

-52'-

ANNEX 3-1page 2 of 2

4. The team would be headed by an international livestock specialistwith experience in systems monitoring. He would coordinate all planningand execution of the work and would, together with the Mauritanian consul-tant in agricultural economics, be responsible for the formulation of alivestock development strategy proposal and the design of follow-onprojects.

5. In addition, the team would establish the key indicators forproject execution in agreement with the supervision mission and carry outquarterly monitoring of project implementation. In the process ofassembling this information, the team would draft the quarterly progressreport of the DNE and submit it to the Director of DNE for his approval andsubmission to the NDR and IDA.

6. The timetable for submission of the output would be:

(a) description of livestock production systems by the end ofproject year 3;

(b) livestock development strategy paper to Government sixmonths later; and

(c) follow-up interventions six months after that.

WAPAC

August 1985

- 53 -

ANNEX 3-2page 1 of 4

ISTAMIC REPUBLIC OF MAURITANIA

SECOND LrVESTOCK PROJECT

LIVESTOCK INPUT DISTRIBUTION UNIT(Bureau des Intrants pour l'Elevage (BIE))

Objective

1. BIE will offer livestock inputs for sale (drugs, vaccines, feedand selected other inputs). It will do so on a commercial basis, i.e., itwill recover the full cost of its products, including allowances forinflation and indirect costs (for example depreciation). The methodologyfor fixing its prices is explained in paras 6-7 below.

2. BIE will not have a trading monopoly. The private sector hasfull freedom to import and offer for sale the same or similar products tothose offered by BIE, subject only to conditions relating to qualitycontrol and technical aspects of the merchandise. However, Government willrefrain from distributing the same or similar products as offered by BIEeither against payment or free of charge. Government will channel allexternal assistance in kind of BIE-type products or in cash for thepurchase of such products through BIE, which may refund to Government thecounterpart value net of its expenses.

Autonomy

3. BIE is autonomous in the conduct of its business and in all itsfinancial affairs. Its supervisory ministry (Minist&re de Tutelle) is theMinistry of Rural Development. It will be managed by a Commercial andFinancial Director (for terms of reference see Annex 3-7). He will havefull autonomy in all aspects of the conduct of BIE's business, includingprice policy, financial affairs and personnel management.

4. A Supervisory Committee would oversee BIE activities (para 5.06of the SAR). It would normally meet only once a year to approve theaccounts and the annual report. Under exceptional circumstances, however,it may meet more frequently to discuss specific aspects of BIE operations.The Supervisory Committee has no authority, hovever, to change the princi-ples of BIE operations, in particular regarding the fixing of its salesprices, its commercial policy and the application of its financial andother resources.

Operating Principles

5. These are explained in paras 3.20-3.23 of the SAR. Of particularimportance are:

(a) the strict separation of kIE's accounts from those of anyother entity;

(b) the systematic application of cost accounting;

- 54 -

ANNEX 3-2page 2 of 4

(c) the separate and up-to-date administration of each of thetwo revolving funds (veterinary products and feed);

(d) the timely deposit of the DNE margins in the Livestock Fund;

(e) the correct setting of sales prices; and

(f) the control of field transactions and the timely recupera-tion of sales proceeds.

Price Setting

6. Prices will be set to fully recover the replacement value of themerchandise in question. This implies that the price will contain aprovision for inflation plus a provision for exchange rate fluctuations ifneeded, plus a provision for unforeseen expenses. Adequate provisions forlosses at all levels of the distribution chain will be included. Inaddition, the retail sales price will include a margin to compensate DNEfor its services in accordance with para 5.04 of the SAR. A schematicpresentation of the composition of retail prices for veterinary productsand for feed is attached.

7. The autonomy of BIE includes retail price setting for itsproducts. Prices determined by BIE in accordance with the provisions ofthe project documents (SAR and working papers) or legal documents (creditagreement) are not subject to approval by any other Government entity, norhas any such entity the authority to change them.

Livestock Fund

8. BIE has no responsibility for the management of the LivestockFund. Its responsibility ends with the timely dei.osit of the DNE marginscontained in the retail prices.

- 55 -

ANNEX 3-2page 3 of 4

MAURITANIA

SECOND LIVESTOCK PROJECT

SCHEMATIC PRESENTATION OF THE COMPOSITION OF VETERINARY DRUG RETAIL PRICES

Item Z of c.i.f. Destinationprice after sale

(estimate)

Price c.i.f. central warehouse 100 veterinary drugrevolving fund

Storage and maintenance cost atcentral warehouse

Losses during storage veterinary drugrevolving fund

15

Transport costs to veterinary stations

Losses during transport

Price delivered veterinary station 115

Margin for inflation, exchange ratesfluctuations and unforeseen 10 veterinary drug

revolving fund

Margin for risks/losses andremuneration of veterinarystation personnel 9.9 chief

veterinarystation

Margin for activities of veterinary stations 23.8 livestockdevelopmentfund

Retail salee price 158.7

a/ Equals 6.25 percent of retail sales price.b/ Equals 15 percent of retail sales price.

WAPACAugust 1985

- 56 -

ANNE 3-2page of 4

MAURITANIA

SECOND LIVESTOCK PROJECT

SCHEMATIC PRESENTATION OF THE CONPOSITION OF ANIMAL FEED RETAIL PRICES

Item Z of c.i.f Destinationprice after

(estimate) sale

Price c.i.f. Mauritania 100

Transit costs 10

Transport costs to veterinarystations 20

feedrevolvingfund

Losses during transit andtransport 7

Price delivered veterinary station 137 feedrevolving

Margin for inflation, exchange risks fundand unforeseen 10

Margin for risks/losses and remuneration chiefof veterinary station personnel 11.7 veterinary

station

Margin for activities veterinary livestockstations 28.0 development

fund

Retail sales price 186.7

a/ Equals 6.25 percent of retail sales priceb/ Equals 15 percent of retail sales price.

WAPAC

August 1985

- 57 -

ANNEX 3-3

ISLAMIC REPUBLIC OF MAURITANIA

SECOND LIVESTOCK PROJECT

STRENGTHENING OF LIVESTOCK SERVICES

FIELD STAFF NUMBERS AND COST a/

(cost in tooo UN; October 1983 prices)

BCategories A Project years

SE

0 1 2 3 4 5 Totals1986/87 1987/88 1988/89 1989/90 1990/91

Nb Nb Cost Nb Cost Nb Cost Nb Cost Nb Cost Costs

Veterinarians 0 1 832 1 832 1 832 1 832 1 832 4160

Engineers 0 2 827 2 827 2 827 2 827 2 827 4135

Assistants 18 13 3995 13 3995 15 4610 17 5224 17 5224 23048

Vaccinators 8 16 3452 16 3452 18 3882 20 4314 20 4314 19414

Secretaries 2 3 821 3 821 3 821 3 821 3 821 4105

Drivers 12 16 3117 16 3117 18 3507 20 3896 20 3896 17533

Manual labor 32 16 1001 16 1001 18 1127 20 1252 20 1252 5633

14045 14045 15606 17166 17166 78028ss== =c= e==e-=

Source: Working Paper, 0. Bremaud (file 221.904 BI), October 1983.

a/ Does not include headquarters staff.

WAPAC

August 1985

ISLAMIC REPUBLIC OF MAURITANIA

SECOND LIVESTOCK PROJECT

INVESTHENTS IN INFRASTRUCTURE AND BUILDINGS

(Costs in 1,000 UM; October 1983 prices)

NATURE OF WORKS TO BE DONE

Place construction addition adaptation modernization dam/well Total

yr Cost yr Cost yr Cost yr Cost yr Cost Cost

A. SOUTH-WEST

Rosso 1 625 1 30 1 1000 1655Mederdra 1 625 1 30 1 500 1155 1R'Kiz 1 625 1 20 1 900 1545 "Boutilimit 2 625 1 30 1 500 1155 X

Keurmacene 4 3150 3150 1

Bogne 1 30 2 1200 1230Aleg 2 625 1 20 2 500 1145Magta Lakjar 2 625 1 20 645Dar El Barka 4 3150 3150Bababe 5 3150 3150Mal 5 3150 3150

Kaedi 2 30 2 1500 1530Mounguel 3 625 2 20 2 900 1545M'Bout 3 625 2 20 3 600 1245Maghama 3 625 2 20 3 600 1245

Moudjeria 4 625 2 20 3 500 1145 Barkeol 4 625 2 20 2 900 1545 m

SUB-TOTAL SOUTH-WEST 12600 6875 310 6900 2700 29385 oN"

B. SOUTH-EAST

Kiffa 2 35 3 1500 1535Kankossa 2 35 3 500 535Boumdeit 2 35 5 300 335Guerdu 2 750 2 35 785

Aloun El Atrouss 1 40 1 1500 1540Tamchakftt 5 750 1 40 5 300 1090Tintane 3 40 40Kobeini 3 40 40

Nema 3 45 3 1500 1545Timbedgha 3 45 3 500 545Bacikounou 3 800 3 45 3 300 1145AmourJ 3 750 3 45 795 >Oualata 4 45 45Djigueni 4 45 45Adel Bagaou 4 45 45

Selibabi 4 45 5 500 545Ould Yenge .fed. 4 35 35

SUB-TOTAL SOUTH-EAST 3050 695 6900 10645

TOTAL 12600 9925 1005 13800 2700 40030Z==3= am== no= wom - - *w-*--

Source: Working Paper, 0. Bremaud (file 221.904 Bi)

WAPAC

August 1985

ISLAMIC REPUBLIC OF MAURITANIA

SECOND LIVESTOCK PROJECT

INVESTMENT IN VEHICLES, COLD CIAIN AND VETERINARY EQUIPMENT a/(Cost in 1,000 UM; October 1983 prices)

PROJECT YEARS

Categories and place 1 2 3 4 5 Total1986/87 1987/88 1988/89 1989/90 1990/91

Nb Cost Nb Cost Nb Cost Nb Cost Nb Cost Costs

VEHICLES

Regional inspection, mobile teams 3 781 3 781 3 781 3 781 3 781 3905

Pastoral centers 13 3383 13 3383 15 3904 17 4424 17 4424 19518

Reserve 3 781 3 781 3 781 3 781 3 781 3905

S/Total vehicles 19 4945 19 4945 21 5466 23 5986 23 5986 27328 °

COLD CHAIN

Regional inspections - lot A 3 396 3 396 3 396 3 396 3 396 1980

Pastoral centers - lot B 13 429 15 495 15 495 17 569 17 569 2557

Mobile teams - lot C 16 182 18 205 18 205 20 228 20 228 1048

S/Total cold chain 1007 1096 1096 1193 1193 5585

VETERINARY EQUIPMENT

Regional inspections - lot 1 3 65 3 65 3 65 3 65 3 65 325

Pastoral centers - lot 2 13 105 15 122 15 122 17 139 17 139 627

Mobile teams - lot 3 16 48 18 54 18 54 20 60 20 60 276 ° lJ

S/Total veterinary equipment 218 241 241 264 264 1228

Source: Working Paper, 0. Bremaud (file 221.904 B1)a/ For details of "lot 1-3" and "lot A-C" see page 2.

ANNEX 3-5-61- Page 2 of 2

NATERU3L TECHNIQW UNITES

Lot I Lot 2 Lot 3

Inspection Centre EquipesRfgionale Pastora1. mobiles

Caec.teurjRechaud petrole 2 1

Jerricans 6 2 1

Filtres 20 litres 2 1

Balance Roberval I

Tr6buchet 1 1

R&cipients pour sterilisation 4 2

Botte coton 1

Plateaux 2 1

Seringues automatiques 5 2 1

Seringues 20cc 5 2 1

Aiguilles 45-15-10 Bte 12 6 2 1

Aiguilles 40-10-15 Bte 12 10 4 2

Aiguilles Reverdin 2 1 1

Manches bistouri 6 2 1

Lames bistouri 50 10 5

Ciseaux droits 2 1 1

Ciseaux courbes 3 2 1

Sondes cannelees 2 1 1

Pinces de Kocher 5 2 1

Pinces a castrer GA 1 1 1

Pinces a castrer PA 1 1 1

Pinces a marquer 2 1 1

Thermoimetres 2 1 1

Flacons plastiques 200 cc 10 2 1

Flacons plastiques 50 cc 10 2 1

lot A.: 2 cong_ateurs, 2 r_friggrateurs, 3 containers (3 lots A) -

lot B: 1 congelateur, 1 r'frigerateur, 2 containers (17 lots B) -lot C: 1 congelateur transportable, l container (20 lots C) -renouvellement de 16 lots C en annie 4

- 62 -

ANNEX 3-6page 1 of 4

ISLAMIC REPUBLIC OF MAURITANIA

SECOND LIVESTOCK PROJECT

TERMS OF REFERENCE

A. Terms of Reference of Project Coordinator/Financial Controller atDNE.

1. The expert would be responsible for:

(a) coordinating project implementation in accordance with theagreements reached at negotiations, and in legal documentsand Staff Appraisal Report;

(b) establishing, in cooperation with the accountant secondedfrom the Ministry of Finance, the budget preparation proce-dure for the DNE as well as a budget accounting system formonitoring operational expenditures;

(c) training the DNE accountant in the preparation of withdrawalapplications and procurement of goods and services under theprocedures of the respective financing agencies;

*d) proposing, in agreement with the Director of Livestock andthe Heads of the Animal Production and the Animal HealthDivisions, modifications to project implementation asrequired; and

*e) co-signing with the Director General of DNE all checks drawnon the special account.

2. The expert should have at least five years of professionalexperience and should have worked extensively in West Africa. He should befluent in French and English and proficient in the writing of English.

B. Draft Terms of Reference of the Construction Engineer.

1. The expert wou'ld be responsible for:

(a) preparation of work plans and tender documents for all civilworks for DNE and BIE in accordance with IDA guidelines andadvising the Director General of DNE in procedures regardinginternational and local competitive bidding;

(b) designing and supervising the construction of the eight newVeterinary Field Stations;

(c) supervising execution of civil works contracts except wellconstruction, which would be supervised by the StockwaterSpecialist and the Well Construction Foreman; and

- 63 -

ANNEX 3-6page 2 of 4

(d) establishing a DNE property inventory making it possible tomonitor the maintenance of buildings, vehicles and equipmentas ull as adequate property control.

2. The expert would have a minimum of five years of professionalexperience and selection criteria would emphasize practical experienceunder field conditions elsewhere in West Africa. He must be fluent inspoken and written French and have at least a working knowledge of spokenEnglish.

3. A total of 3 man-years of work is estimated, but whereas thefirst year is expected to be full-time, it is possible that the supervisionperiod could profitably be split into several shorter or longer periods ofconsultancy.

C. Draft Terms of Reference of the Rural Engineer.

1. The consultant would be responsible for:

(a) assisting and training the Production Improvement Officer inthe development and preparation of projects for financing bythe Production Improvement Fund in close collaboratio± withthe interested groups of pastoralists; and

(b) supt. -ing the execution of approved projects as well asthe pa-cicipation of the pastoralists, recommending thecancellation of projects where such participation is notforthcoming.

2. The consultant must have considerable experience in sMall ruralconstructions in West Africa and a proven ability to work with ruralpopulations, and must be fluent in written and spoken French.

D. Draft Terms of Reference of the Stockwater Specialist.

1. The consultant would be responsible for:

(a) assisting and training the two stockwater officers assigne.to the Stockwater Section by the Animal Production Divisionin field work and collaboration with pastoral groups;

(b) assisting and training the stockwater officers in draftingthe contract with the Water Affairs Department for theconstruction of wells for the Pastoral Cooperative Associa-tions; and

(c) assisting and training the stockwater officers in super-vising, with the assistance of the Well ConstructionForeman, the execution of the contract as well as themandated contribution of the pastoral associations.

- 64 -

ANNEX 3-6page 3- of 4

2. The consultant must have a degree in Water Supply Engineering andseveral years of practical experience, preferably in West Africa, and mustbe fluent in spoken and written French.

E. Draft Terms of Reference of the Range Management Specialist.

1. The consultant would be responsible for:

(a) assisting and training the Range Management Officer of DNEin his task of advising the pastoral cooperative associa-tions and groups in the preservation of their grazing areas;

(b) assisting the pastoralists in designing projects forfinancing under the Production Improvement Fund; and

(c) being an information resource for the DNE, the SystemsStudies and Monitoring Team and the Pastoral AssociationEstablishment Team.

2. The consultant must have a degree in Range Management and prac-tical experience in working w:th pastoral groups, preferably in WestAfrica. He must be fluent in spoken French and have a working knowledge ofEnglish.

F. Draft Terms of Reference of Teamleader, Systems Studies and MonitoringTeam.

1. The expert would be responsible for:

(a) planning and coordination of the studies and the monitoringprogram in collaboration with the Director of CNERV and theAgricultural Statistics Office of the MDR;

(b) recruitment of the national team of professionals andselection of the international and local consultants and thedrafting of their terms of reference;

(c) training of the study team in system study procedures, datacollection and analysis and the monitoring of projectimplementation and impact;

(d) guiding and participating in the report writing of the teamand the preparation of policy papers and projects; and

(e) training one of the team members to take over his functionsas teamleader.

2. The expert must have a degree in agricultural economics, veteri-nary science or animal production and field experience in the study oflivestock production systems and monitoring, preferably in West Africa. Hemust be fluent in spoken and written French and have a working knowledge ofEnglish.

- 65 -

ANNEX 3-6page 4 of 4

G. Draft Terms of Reference of the Well Construction Foreman.

1. The consultant in close collaboration with the StockwaterSpecialist would be responsible for:

(a) assisting and training the Stockwater Officer as "chef detravaux" for the well construction program for pastoralcooperative associations, as well as for pastoral groupsfinanced by the Production Improvement Fund;

(b) representing the DNE in supervising the execution of thecontract with the Water Affairs Department;

(c) being the subject matter specialist for well constructionand as such assist the Stockwater Section in cooperationwith the pastoralists to identify the need for and theextent and feasability of repair to a well; and

(d) providing training in well maintenance for the associationsand other pastoral groups.

2. The consultant should have considerable practical experience ofvell construction in Africa and be prepared to spend long periods in thefield under camp conditions. He should be fluent in French.

H. Detailed Terms of Reference for the Director of Studies and forshort-term consultants for the training program at the ENFVA are foundin the working document (Project File No. 221.904 (C2)).

I. Draft Terms of Reference for the Commercial and Financial Director ofBIE are found in Annex 5-2.

- 66 -

ANNEX 3-7page 1 of 2

MAURITANIA

SECOND LIVESTOCK PROJECT

TERMS OF REFERENCE

1. Function: Commercial and Financial Director of the "Bureau desIntrants pour 1' Elevage" (BIE).

2. Duration: three years, with possible extension to five years.

3. Immediate Supervisor: Director of Livestock.

4. Duties:

(a) The Director will be responsible for the overall managementof BIE, including all commercial and financial affairs inaccordance with the provisions of the IDA credit agreement.In this he will have a great deal of autonomy.

(b) In general, the Director will see to it that BIE conductsits business according to the description given in theproject documents (SAR and working papers) and the legaldocuments (credit agreement). In case of contradictoryprovisions, the legal documents will prevail.

(c) Specifically, the Director will be responsible for:i) commercial policy: determining supply sources on the

basis of comparison of conditions, quality and suita-bility of products; quantities to be stocked at retailoutlets; location of retail outlets; promotionalactivities; monitoring of sales volumes against projec-tions; etc.;

ii) price setting: determination of prices of individualproducts to allow recovery of full cost plus a marginfor DNE activities (see SAR); redetermination of pricesafter arrival of each shipment of new supplies;

iii) cost control: assuring that BIE's business is con-ducted as efficiently as possible at the lowest cost;

iv) financial management: control and supervision of allfinancial streams relating to BIE, in particular salesreceipts at fields stations and the Livestock Fund;

v) administration: control and supervision of the entireadministration with particular emphasis on the adminis-tration of stocks (including field stocks) and theapplication of cost accounting; maintaining separateand up-to-date accounts for BIE, including separateaccounts for each of the two revolving funds, as wellas the Livestock Fund enabling an immediate determina-tion of their status;

- 67 -

ANNEX 3-7page 2 of 2

vi) reporting: production of monthly profit and lossaccounts and balance sheets including a statement onthe status of the two revolving funds and the LivestockFund; publication of bi-annual progress reports and afull annual report; and

vii) other: personnel management; ensuring the proper useof equipment and materials; on-the-job training ofpersonnel as needed; all other normal aspects of theconduct of a commercial enterprise.

5. Qualifications: To be evaluated on the basis of education and pastactivities and performance. An advanced degree in an appropriatediscipline is expected.

6. Experience: Three years minimum in a relevant field in Africarequired.

7. Age: Minimum 30 years.

8. Lanunage: Fluency in French. Knowledge of Arabic and/or Englishwould be an advantage.

9. Duty Station: Nouakchott, Mauritania.

10. Entry on Duty: Not later than July 1986.

ISLAMIC REPUBLIC OF MAURITANIA

SECOND LIVESTOCK PROJECT

ESTIMATED DISBURSEMENT PROFILE

(US* million) SECOND LIVESTOCK PROJECT

Estimated Disbursement

IDA FY QVARTER BY QUARTER CUMULATIVE

1987 Ia 08 0.8 8

I I I 0.3 30OIV 0.4 13

1988 I 0.3 2.0 -11 0.3 2.3 °

III 0.3 2.6 8,IV 0.4 3,0 6

1989 1 0.4 3.4 7II 0.3 7III 0.1 .0 5 5IV 0.4 4.4 7

1990 11 0.4 4.8 a ,II ~~~~~~0.3 5. 'n4 F

I 0Y3 5.8 PIV 0.3 5.7 /4

1992 I 0.2 7.0 21I 0,2 7.21III 0_ IV 0.N 7.4 1 /

1993 I 0.1 7.5II 0.1~~~~Ol 7.6

____________________________________________________FY87 'FY8'8 'FY89 'FY90 FY91 IFY92 FY93

8/ sumes credit effectiveness in August 1986. Includes refinancinR of PPF Profile k.JVS$ ,500,000) and Initial d or auiD)Prjc

b/ 'a surm ro aue dapodi arfnc'!Nluont(US rehit types combined,date 9 a1

WAPAC

November 1985

MAURITANIASECOND LIVESTOCK PROJECT

Summary Account by Pro ect Component(UN '000i

SYSTEMSSTUDIES STRENSTHENING OF LIVESTOCK SERVICES

MONITORING ANDPASToRAL PROJECT DISTRIBUSION ANIMAL ANIMAL

ASSOCIATIONM PRIPARATION INPITS MANAGEMENT HEALTH PRODUCTION TRAINING ABATTOIR PPF TOTAL

I. INVESTCENT OOSTSY1L WRK CW) - * - 70,801.6 * 4,013.6 39,851.1 * 134,666.3

B. STOCKWATER DEVELOPHENT (WE) 85,987.8 - - - - - - - 85,987.8C. EQUIZPHE (EQ) - 4,684.5 717.5 8,328.0 6,123.2 4,164.0 7,026.3 - - 31 043.4D, VEHICLES (VH) - 3,745.8 2,709.6 4,120.4 24,347.7 11,237.4 7,317.5 5,520.0 - 568996.4E. T.A. AND CONSULTANTS (TA) 16,481.5 41,141.4 23,006.3 39,851.2 23,4.1,3 17,480.4 24,868.8 9,131.0 - 195,371.7F. STUDIES (ST) - 50,784.1 * - - - - - 50,764.10. INPUTS (IN) - 90,428.2 - - - * 2,212.0 * 92,640.2He PROD. ItMROVEMENT FUND (PI) * * - - 55,289.7 - - . 55,289.7l. SCHOLARHIPS (TR) - - * - 24,984.1 - - 24,984.1J. REPAYMENT PPF (PP) - - - - - 41,200.0 41,200.0K. UNALLOCATED (UA) - - * 15,120.0 * * - - - 15,120.0

Total INVESTMENT COSTS 102,469.3 100,355.7 116,861.6 167,419.5 124.683.8 88,171.5 68,210.1 76,714.1 41,200.0 786,065.6

II. RECURRENT COSTSzQULrmf mMENr sRAiuN tEO) - - - 18,774.0 - 477.8 - * 19,251.8VEHICLE OPERATION (VO) 2,086.0 3,622.5 1,877.4 20,338.5 6,258.0 - * - 34,182.4LOCAL PERSONNEL (LP) - 15,543.9 11,877.0 13,041.0 19,845.0 34,770.8 678.4 - - 95,756.1MISCEUANEOUS (MA) 1,201.8 3,030,5 3,657.5 1,202.0 1,202.0 21,372.4 - - 31,646.1

Total RECURRENT COSTS 18,831.7 18,530.0 18,575.9 60,159.5 42,230.8 22,528.6 - - 180,856.4Total BASELINE COSTS 102,469.3 119,187.4 135,391.6 85,995.4 184,843.3 130,402.2 90,738.7 76,714.1 41,200.0 966,942.0

PhysLeal Contingencies 10,246.9 10,763.0 17,241.4 6,476.6 22,361.8 4,615.4 10,650.5 10,774.6 - 93,130.1Price ContLngencLes 28,482.3 29,000.9 32,669.8 19,495.0 63,348.2 40,410.4 23,182.2 20,620.1 - 257,408.3Implementation Delay Cont. * - - 120,000.0 - - - - - 120,000.0

Total PROJECT COSTS 141,198.5 158,951.2 185,502.8 239,967.1 270,553.3 175,428.0 124,571.5 108,106.7 41,200.0 1,445,480.9

Forelgn Exchange 120,588.5 100,646.3 162,914.3 149,689.7 148,616.3 82,353.7 83,712.4 82,046.5 41,200.0 971,767.6

WAPACNovember# 1985I

00

- 71) - ANNEX 4-3

rMRTANIA

SECOND LIVESTOCK PROJECT

Project(Compnents by Year

TotalBase Costs (US$

86/87 87/88 88/89 89/90 90/91 Million)9 _- _ _ =z- __

A. PASTORAL ASSOCIATIONS 29.3 15.6 17.8 17.8 22.0 102.5 1.3B. SYSTEMS STUDIES, MONITORING

AND PROJECT PREPARATION 42.5 19.9 34.0 17.7 5.2 119.2 1.5C. DISTRIBUTION INPUTS 46.7 26.2 26.0 18.3 18.3 135.4 1.7D. STRENGTHENING OF

LIVESTOCK SERVICES

MANAGEMENT 38.2 11.5 11.5 11.5 13.2 86.0 1.1ANIMAL HEALTH 26.5 36.9 54.6 41.4 25.5 184.8 2.3ANIMAL PRODUCTION 32.4 26.8 23.0 23.0 25.1 130.4 1.6TRAINING 19.1 35.6 17.7 12.4 5.9 90.7 1.1

Sub-Total STRENGTheNl OFLIVESTOCK SERVICES 116.3 110.8 106.8 88.3 69.8 492.0 6.1

E. ABATTOIR - 26.6 47.8 2.2 - 76.7 1.0F. PPF 41.2 - - - - 41.2 0.5

Total BASELINE COSTS 275.9 199.0 232.5 146.3 115.2 966.9 12.1Physical Contingencies 22.8 20.7 24.4 14.4 1G.8 93.1 1.2Price Contingencies 18.9 38.7 70.5 63.5 65.7 257.4 3.2Implementation Delay Cont. 128.0 - - - - 128.0 1.6

Total PROJECT COSTS 445.6 258.4 327.4 222.3 191.8 1,445.5 18.1

Foreign Exchange 316.2 176.0 229.9 133.4 116.3 971.8 12.1

WAPACNovember, 1985.

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- 72 -

ANNE 5-2

SEOND u M PnM

Implemntation Schedule. w10r ACtiviies (PM-Y6)

Proect Yer n o FT I Pr 2 nZ 3 Fi 4 Prn 5 .Year l965-8S 19W8F1 1987-86 l!68-69 1969- 1990-91Qugeer 1 IvIn m wu unI 1 mivuII muvIIn nivirz mnrviII

CREDIT PROCSSDIC CM

bard .1 _

Nea tiate Ie Section:

Stock tte r n.2m.T. _ mSctosRural gneer 1

Tee Leader (Economist) Suvey SpeciallitcowV Contract _AG. Stat Contract -Survey Report draft ffn fPolicy ReportProject Preparati SMid-Term Review

INPU DISIBUTOIIO1

BIE EstablishmentBIE OperationsLivestock Fund

Lvsol SERVICCCivil works Contract P BconstrtionComtruction Edcnuto

Director of StudiesTlnir lg DirectorGonult nts v

Civil works _}relp aid cons trllctlon Trrg yI _

?mAUC REW'ILIC OF 14t1IANIA

-Em 1J Vr

PiW:l =IS OF REU R KaHEM LIWlSIVOC F (LF) l AM SPM7A I lrm FE(adLUIcM of cupdyas unleu othernlm irdicated; 1985 cautmnt prices PI)

1986/87 1987/88 1988/89 1989/90 1990/91

ad later

Ramiue frc vaccinstinm aMinot rirderpest mwl ClP

tAiber of vwcLnaetis (X 1000) 200 250 300 300 380

Margin above the full cost ex-veterlnary station(IM per dse) 20 20 20 20 20

Reveue for LF 4.0 5.0 6,0 6.0 6.0

RPieu frmc the sale of vaterinan drss wd vaccines otherthan vaccines against rinderpent mid CP

Total value at cost prices, veterinary statiacs 8.4 14.0 19.6 25.2 30.0

Id. of vaccines against rirderpeat ad CBIP b/ 2.0 2.5 3.0 3.5 4.0

Value of sales other than tle aint rIlrerpest wdCOPP 6.4 11.5 16.6 21.7 26.0

Margin for [Y equals 15Z of turrever or 18Z of the costprice ex-veterinary statics 1.1 2.0 2.9 3.8 4.6

Rvauie frou the sale of aiiul feed

Value of males at cost price ex-veterinary staticr 22.4 30.8 39.2 52.1 56.0

Margin for IF equals 15Z of turnrer or 111of cost prices ex-veterinazy station 4.0 5.4 6.9, 9.2 10.0

Raevem fran Mspela Ijprt fee ~~ Private setor lqprts (c.l.f. cost) 15.0 15.0 15.0 15.0 15.0Special Import fee 92 1.4 1.4 1.4 1.4 1.4

Total rever'e for tF fran aUl smrces 10.5 13.8 17.2 20.4 22.0

a/ crtant prices are to be converted accordfiE to an inax (19865100) of the folriwl% caoitimo aOil and ganolin 0.35Operatlm and mintenace of vehicl 0.30Field trip allueces 0.25Office offpies (wU water, electricity, comidation) 0.10

TWOD1Th nwentE will be adjusted anwally. If, for exmple, the 1906 lux woad be 108, the mrgin for the LF lwltxlsd an the price forrinderpeat ad CEW vaccines wuld be 1.08 x LI 20 [ t1122.

iAsaa a cost price of UN 10/dose.

ANNEX 774 Page 1 of 2

ISLAMIC REPUBLIC OF MAURITANIA

SECOND LIVESTOCK PROJECT

ECONOMIC ANALYSIS

(millions of UN in constant 1985 prices, unless otherwise indicated)

A. ECONOMIC COSTS

1 2 3 4 5 6 andfollowing years

Management 22.1 11.5 11.5 11.5 13.2 -Animal Health 26.5 36.9 54.6 41.4 28.5 20.0Animal Production 32.4 26.8 23.0 23.0 25.1 8.0Training 19.1 35.6 17.7 12.4 5.9 4.0Input Distributiondrugs and feed 30.8 44.8 58.8 72.8 86.8 90.0other expenses 14.6 11.6 11.4 3.7 3.7 3.7

TOTAL ECONOMIC COSTS 145.5 167.2 177.0 164.8 163.2 125.7

The above table is based on the hypothesis that foreign financing will be disbursedduring the 5 year period covered by the cost tables. If it is assumed thatdisbursements will take longer (for instance as given in the profile of Annex 4-3),the results of the analysis will not change as in that case it will also have to beassumed that benefits would accrue at a proportionately slower rate.

B. BENEFITS

One tropical livestock unit (TLU) equals one head of cattle of 300 kg. In an averageherd this equals about: 1 camel

0.73 head of cattle0.12 sheep or goat

The following parameters have been used:1. dressing percentage (incl. offalls) 55%2. meat price (carcass) UM 135/kg3. duration of project benefits of alternatively 10 and 20 years4. rate of realization of incremental production as follows:

25 percent in PY 1, 50 percent in PY 2, 75 percent in PY 3 and 100percent in PY 4 and thereafter.

Under these assumptions the gross benefit streams are as follows:

Incremental 1 2 3 4 5 6 andProd. (TLUs/year) following years

7000 39.0 78.1 117.1 156.1 156.1 156.18000 44.6 89.2 .:33.8 178.4 178.4 178.49000 50.2 100.4 150.5 200.7 200.7 200.710000 55.8 111.5 167.3 223.0 223.0 223.0

75 - ANNEX 7Page 2 of 2-

C. ECONOMIC RATES OF RETURN (ERR)

The above figures give rise to the following ERRs, which would be realized at thegiven level of incremental troduction.

Incremental ERR (in Z/year)Prod. (TLTJs/year) project duration

10 years 20 years7000 - 9 58000 5 149000 17 2310000 28 33

For example, the cost/benefit streams in case of an incremental production of 8000TLUs/year and benefits over 20 years (giving a 14% ERR) would be as follows:

1 2 3 4 5 6-20

Benefits 44.6 89.2 133.8 178.4 178.4 178.4Economic costs 145.5 167.2 177.0 164.8 163.2 125.7

Net Benefits -100.9 -78.0 -43.2 13.6 15.2 52.7

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IBRD 183038

MAURITANIASECOND LIVESTOCK DEVELOPMENT PROJECT

DEUXItME PROJET D' ELVAGEVETERINARY INSTALLATIONS:

tAR iNF~~~~~~~~~~~~~~~~~MRASTRUCTURES VSTERINAIRES'-tAR~~~~~~~~~~~~~~~~~~~C HEABOUARTERtSDRWECT1ON GEMM41.

* REGIONAL OFFSEfiUREAU RL,G

VETENARY STATIONSPOSTE bI1EIRfE/ CRLSHES FOR VACCINATICIN

ARC DE VACCWAT1KOIV/ ~~~~~~~~~~~~~~~~~~~~~~PROPOSEO VETERINARY STATINS

P05 POSTETERB4RE PlPSFLIRVESTOCX DEVELOPMENT PROJECT ISOUTH.EASTI

ORQJET D- ELEVAGE SLI - EST -IEXPERIAENTAL PROJECT AREA

-'ZONE EXPERIMEArAL rNU PROETPAVED ROADROUTE GOUDIORNEE

1 A G A N T - -TE rjQuLwvNRE EENcUV'OU NLATERITE I EARTM ROADSROUTE EN TERRE/ LA TERFrETRAILS

I~~~~~PS/ -z ICDJA -- -- T,ch,gi - IS RTS 11949- 1974 in mn

T- h. ISOHYETES ( W9 - 19;d) en mm

- 'I~~ ~ s f . ISOIWETS 11968 -1974) in mm-SON'VETES (E96 - t91'4) an mm

- - REGIONAL AND OEPARTMENTAL BOUNDARIESROAI1fRE fOEGIO1JAL OU AEPR EETALE

INTERNATIONAL SOUNOARIES/ \ j FRON1TlRE UITEDWA7OVAnoE

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JANUARIY 1986