Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No: 24288

IMPLEMENTATION COMPLETION REPORT(IDA-27070)

ON A

CREDIT

IN THE AMOUNT OF SDR 4.6 MILLON(USS 6.8 MILLION)

TO THE

REPUBLIC OF NIGER

FOR THE

PILOT PRIVATE IRRIGATION PROJECT

June 18, 2002

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

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CURRENCY EQUIVALENTS

(Exchange Rate Effective February 15, 2002)

Currency Unit = CFA franc (CFAF)CFAF 100 = USS 0.143

USS I = 700 CFAF

FISCAL YEARJanuary I December 31

ABBREVIATIONS AND ACRONYMS

ANPIP Niger Private Irrigation Promotion AssociationDRE Directorate of Water ResourcesERR Economic Rate of ReturnFRR Financial Rate of ReturnGIE Economic Interest GroupICR Implementation Completion ReportIDA International Development AssociationINRAN Nigerien Institute for Agricultural ResearchMCPEC Savings and Credit UnionMELCD Ministry of Environment and Desertification ControlMRE Ministry of Water ResourcesNGO Non-Governmental OrganizationNPV Net Present ValuePME Small and Medium Scale EnterprisesPPIP Pilot Private Irrigation Promotion ProjectSAR Staff Appraisal ReportSDR Special Drawing RightsUSD US DollarMTR Mid-term review

Vice President: Callisto MadavoCountry Director: Antoinette M. Sayeh

Sector Manager: Joseph Baah-DwomohTask Manager: Salifou Mahaman

NIGERPILOT PRIVATE IRRIGATION

CONTENTS

Page No.1. Project Data 12. Principal Performance Ratings I3. Assessment of Development Objective and Design, and of Quality at Entry 24. Achievement of Objective and Outputs 35. Major Factors Affecting Implementation and Outcome 126. Sustainability 137. Bank and Borrower Performance 148. Lessons Leamed 169. Partner Comments 1710. Additional Information 17Annex 1. Key Performance Indicators/Log Frame Matrix 19Annex 2. Project Costs and Financing 20Annex 3. Economic Costs and Benefits 22Annex 4. Bank Inputs 24Annex 5. Ratings for Achievement of Objectives/Outputs of Components 25Annex 6. Ratings of Bank and Borrower Performance 26Annex 7. List of Supporting Documents 27

Project ID: P00 1994 Project Name * Pilot Private Irrigation

Team Leader. Mahaman Salifou TL Unit: AFTR2

ICR Tvpe Core ICR Report Date: June 18, 2002

1. Project Data

Name: Pilot Private Irrigation L/C/TF Number. IDA-27070Country/Department. NIGER Region: Africa Regional Office

Sector/subsecror: Al - Irrigation & Drainage

KEY DATESOriginal Revised/Actual

PCD: 03/02/1990 Effective: 12/19/1995 07/19/1996Appraisal: 06/17/1991 MTR: 06/30/1998 05/17/1999Approval: 04/18/1995 Closing 06/30/2000 12/31/2001

Borrowver/lmplementing Agency GOVERNMENT/NON GOVERNMENT AGENCY (ANPIP) BOARD (ONAHA)Other Partners*

STAFF Current At AppraisalVice President" Callisto E. Madavo Edward Kim JaycoxCountry Manager: Geoffrey H. Bergen Whitney FosterSector Manager: Joseph Baah-Dwomoh Salah DarghouthTeam Leader at ICR: Mahaman Salifou Sidi JammehICR Primary Author Stanislaw Manikwoski

2. Principal Performance Ratings

(HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=HighlyUnlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible)

Outcome: S

Sustainabilnty: L

Institutional Development Irmpact M

Bank Performance: S

Borrower Performance: S

QAG (if available) ICRQuality at Entry:

Project at Risk at Any Time: No

The project has not been reviewed by QAG.

3. Assessment of Development Objective and Design, and of Quality at Entry

3.1 Original Objective:The objective of the project was to assist Niger in testing and evaluating the following: (a) private sectordevelopment through local capacity-building in the irrigation sector; (b) improved low-cost technologies forsmall-scale private irrigation; (c) improved grassroots savings and credit schemes; and (d) erosion controlworks and monitoring replinishable shallow aquifers. The development impact would result fromwidespread adoption of simple, low-cost mechanized and manual irrigation techniques, building a criticalmass of local artisans trained in manufacture and repairs of irrigation technologies and the emergence ofprivate sector in irrigation development. The project focus was primarily on the poorest small irrigationfarmers, as well as selected private commercial irrigators.

This objective reflected essential priorities for rural development in Niger (les Principes Directeurs duDeveloppement Rural au Niger) at that time, as identified both by the government and in the Bank'sCountry Assistance Strategy. The objective was consistent with the government's strategy for rebuilding therural economy through poverty alleviation, restoring food security, and promoting private sectordevelopment.

3.2 Revised Objective:The objective of the project was not revised during implementation.

3 3 Original Components

a) PRIVATE PROJECT MANAGEMENT AGENCY; $1.3 MThis component aimed to build institutional and technical capacities for the promotion of the Government'sprivate sector strategy for development of small-scale irrigation, the delivery of services through contractmanagement, and the introduction of demand-driven assistance to small farmers using procedures whichensure transparency and cost-effectiveness. Based on the disappointing experience with public irnigationagencies, it was deemed necessary to establish an association of private irrigators with private legalstatus.Roles, functions, procedures and staffing of this private entity were clearly laid-out in a projectimplementation manual. This design prevented Government subjection of ANPIP to bureaucratic controlsand pressures of political patronage which could have undermined the agency's autonomy and effectiveness.

b) SMALL-SCALE MECHANIZED IRRIGATION TECHNOLOGIES; $1.8 MThis component included tests and evaluations of simple, low-cost mechanized technologies appropriate tofarmers cultivating plots of more than 0.5 ha. In addition to promoting the adoption of technologies whichalready exist on the shelves or could be easily imported from Nigeria, the component would undertakeresearch in less familiar techniques such as tubewell and washbore drilling, water distribution technologies;and rotary drilling system, motorized bailers, small submersible pumps for deeper water table applicationsand distribution system such as drip or sprinkler techniques.Implementation of this component will becontracted out by ANPIP. Dissemination of the tested technologies was to be carried out via IDA-financedAgricultural Services Project (Cr.2335-NIR).

c) IMPROVED MANUAL IRRIGATION TECHNOLOGIES; $0.8 MThe objective of this component was to test and assess manual technology packages suitable for farmscultivating plots of less than 0.5 ha. The manual technologies would include: (a) improvements to hand dugwells to increase recharge rate and construction cost, manual methods for inserting tubewells, such as handaugers, manual bailers and sludger; (b) manual water lifting technologies; (c)simple water distributiontechnologies; (d) training of local artisans to produce manual irrigation equipment. The package of servicesunder this component also included technical and training support to beneficiaries on complimentaryactivities, including development of cost-efficient techniques for crop conservation and storage,

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agro-processing, building marketing expertise and linkages; and creating capacity for maintenance andrepairs services in irrigation. Implementation of this component was to be contracted out by ANPIP.Dissemination of the tested technologies will be done through IDA-financed Agricultural Services Project(Cr.2335-NIR).

d) ENVIRONMENTAL PROTECTION; $0.3 MThe objective of this component was to monitor shallow aquifer levels, and soil and water quality in theproject zones to determine ways of safeguarding against over-exploitation of these aquifers in futureinvestments in irrigation production and to insure sustainability of the irrigated farming systems bydeveloping techniques for proper husbandry of the soil and water resources on which such are based. Themonitoring system would focus on monitoring the performance and recharge characteristics of shallowaquifers and the possible potential for causing excessive draw-down, the possibility of salinization of thesoils as a result of future irrigation under conditions of high evapotranspiration and possible contaminationof groundwater by agrochemicals. This component also includes soils and water erosion control works inthe river valley zone. The component was to be implemented by Government agencies.

e) SAVINGS AND LOAN SCHEMES; $0.9 MThis component would consist of a package of technical assistance and training services for promotion ofsavings and credit schemes in the project area. ANPIP would contract the implementation of thiscomponent to consulting firms.The contracting firm would be required to train Nigerien personnel toprepare them to take over the implementation within three years. The pilot areas were to be selected on thebasis of following criteria: economic potential, investment profitability, access to market, cooperativetraditions, institutional base, particularly existence of farmers associations and support organization.

3.4 Revised Components:The five original components remained the same throughout the project life. However a Monitoring andEvaluation Unit was included in the first component to ensure consistency and synergy among components.The environmental protection component was restructured under new management of ANPIP. Also fundingof components and impact indicators were revised and adjusted during the Mid-Term Review.

3.5 Quahlty at Entry:Quality at Entry was rated satisfactory, based on the strength of (a) consistency of objectives with thepriorities for rural development and poverty alleviation; (b) the project's participatory and bottom-upmethodology; (c) demonstrated capacity of the implementing agency; and (d) project design, whichaccounted for institutional constraints and risks by incorporating flexibility and by fostering ownership atthe community level. The SAR documented the project and its background well and the MOP accuratelyassessed potential political development which could contribute to project risks. However, one importantshortcoming was the lack of agreed monitoring indicators.

4. Achievement of Objective and Outputs

4.1 Outcome/achievement of objective:This section describes the overall outcomes of the project and those of each of its five components. Theyare compared to the SAR requirements and the amendments introduced as a follow-up to the MTR mission.The outcomes are analyzed with respect to their quality, relevance and impact on beneficiaries and on thecountry.

Achievement of Global Objectives

Globally, the project outcomes are satisfactory. It achieved all of the main objectives and exceeded many ofthem. The project has shown that the national agricultural strategy to increase production through support

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to the private agricultural sector is well justified and that projects financed by public funds can besuccessfully implemented by the private sector. It effectively encouraged farmers' associations; helpedfarmers to expand irrigated lands and to increase the profitability of their plots. Most of these achievementsare sustainable and had have a strong positive impact on productivity, revenue and welfare. The PPIPevaluations and beneficiaries opinions expressed to the ICR mission suggest that after the projectcompletion, the new irrigation technologies will continue to have a positive impact on small-scale privateirrigation. Environmental Protection was the weakest component of the project; the outcomes ofenvironmental activities are significant but below SAR targets. Saving and credit schemes established bythe project are autonomously managed, used by 7,984 members, and have disbursed more than 4,000 loans.In spite of this, their sustainability is not yet fully ensured. (It should be born in mind that this is only apilot, to be followed by a full-fledged operation geared towards long-term sustainability)

It is difficult to assess project's contribution to increased production as the aim of this pilot phase was totest rather than to establish productive investments. However, it can be assumed that the project increasedfood security for small-scale rural farmers, by placing at their disposal low cost technologies that broughtabout substantial improvement in their productivity. The project introduced the treadle pump, which waspractically unknown in Niger, large-scale propagation of the tubular borehole, submerged pumps andirrigation via buried pipes. The project also allowed for better utilization of motor-pump, therebyimproving their efficiency. The PPIP made it possible for some farm-managers to have access to newirrigation technologies better adapted to Nigerien agriculture: about 1800 farm managers in the case of themanual technologies and 1227 in the case of the mechanized technologies.

Access to irrigation technologies allowed for an increase in productivity, an increase in the land areasirrigated during the dry season, and an increase in food security of the households. According to the resultsof a survey conducted by ANPIP's Monitoring and Evaluation Unit, the increase in areas cultivated was63%, in the case of the manual technologies and 24%, in the case of the mechanized technologies. Theincrease in yields of the farms monitored was around 27% for onion and 32% for sweet pepper. These twocrops cover 70% of the land areas farmed in the sites covered by the surveys. In total it is estimated that1,100 ha were additionally put in use by the promotion of both technologies Manual (500) and mechanized(600).

Table 3: Performance Indicators for development objective

Adjusted after ObjectiveMid-term achievement as

Projected in SAR evaluation Achieved at % of adjustedIndicator (03/30/1995) (05/1999) (03/31/2002) indicators

GIE trained 1,400 1,400Improved hand dug wells methods tested 27 13 13 100Manual water lifting technologies tested 12 10 10 100Water distribution technologies tested 8 7 7 100Number of new technology demonstrations 1,600 1,600 678 42Craftsmen trained in irrigation equipment 50 70 101 144production and maintenancePersons trained in saving and credit principles 2,000 382 346 91Mechanized pumping techniques tested 15 16 16 100Mechanized water distribution technologies 20 6 6 100tested _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Mechanized technology training 180 54 382 707

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Table 3: Performance indicators for impact

Adjusted after ObjectiveMid-tenn achievement as

Projected in evaluation Achieved at % of adjustedIndicator SAR (05/1999) (03/31/2002) indicators

(03/30/1995)Manual pump sales motivated by the project 600 1,000 1,103 110Established savings and credit associations 60 30 27 90Persons requesting and receiving an assistance for. Project preparation 3,100 402 1,417 352. Procurement and contract management 220 220 187 85

Obtaining tenure security 950 385 171 44Farners using tested mechanized techniques 750 750 1,427 190Farners using tested manual techniques 3,250 3,250 2,042 63

In general, sustainability of the project achievements and their extension to other regions of Niger can notyet be ensured without the following conditions: some limited technical follow-up is needed to help farmersto further adjust their agricultural practices to the project introduced technologies; the newly createdEconomic Interest Groups (GIE) do not have yet clear aims on good work plans, and they are notfinancially independent; the saving and credit schemes have only two to four years of existence which isquite a short period of time; the extension of new technologies to the other regions of Niger will requirefurther technical assistance and extension similar to the those provided by the PPIP project. All of theserequirements will be satisfied by the full-scale irrigation project Cr.362 1-NIR approved on April 8, 2002

4.2 Outputs by comnponents

Achievement of objectives by component

Project objectives were achieved through activities executed by five components: (a) Private IrrigationManagement Agency Component; (b) Small-scale Mechanized Irrigation Component; (c) Manual IrrigationComponent; (d) Environmental Protection Component; and (e) Savings and Credit Schemes Component.The components "b" and "c" were designed to provide farmers with locally tested and adapted drillingequipment, water pumps and improved water distribution technologies. The component "e" was to promoteviable financial services for farmers and train them in savings and credit union principles. The Component"d" was to develop capacities for assessing the impact of irrigation on land and water resources, andfinally, the first component was to strengthen institutional capacities in support of the national strategy onsmall-scale irrigation promotion. Outcomes of these components constitute a coherent set of results thatshould stimulate and guide small-scale private irrigation promotion.

a) Private Irrigation Management Aaencv

The Private Irrigation Management Agency (ANPIP) aimed to build institutional and technical capacity forthe promotion of the Government's private sector strategy for development of small-scale irrigation, thedelivery of services through contract management and the introduction of demand-driven assistance tosmall farmers using procedures that ensure transparency and cost-effectiveness.

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Expected outputs:In order to conduct this program, the component ANPIP was delegated responsibility to: (a) carry outpromotional campaigns in support of the Government's irrigation development strategy; (b) facilitate smallfarmer's access to the legal and administrative procedures for obtaining tenure securit; (c) provideassistance, upon demand, in preparation of bankable irrigation projects and in establishing economicinterest groups (GIEs); and (d) ensure overall project implementation.

AchievementsThe component has developed an original approach to implementing the new national irrigation strategy. Itsuccessfully assisted ANPIP to grow from a small group of ten individuals gradually to 19 decentralizedcommittees constituting 13,500 fatners. The new national irrigation policy was disseminated through3,000 copies of a printed booklet and prospectus as well as radio and TV commercials. Jointly with thePermanent Secretariat for the Rural Code (Secretariat du Code Rural), the component elaboratedguidelines for land tenure security procedures. The component carried out an information campaign onsmall scale irrigation, which reached 2,000 representatives of farmers and administration and traditionalauthorities. As a follow-up of this campaign around 15,000 farmners (including 462 women) were organizedinto 1,521 economic interest groups (GIE). The project trained 2,990 GIE members in private irrigationdevelopment; group management and administration.

In 2000, as a follow-up of mid-term review (MTR), the component created a monitoring and evaluationunit that, through an independent monitoring team, described project progress in quarterly reports andanalyzed its impact on beneficiaries. The component produced a CD-ROM containing the project'stechnical documents, and created a web site.

Until the MTR, ANPIP as project implementing agency managed four of the project's five components (theEnvironrmental Protection Component was executed by INRAN and Direction des Ressources en eaux);after the MTR, all five components were managed by ANPIP.

From the institutional development standpoint the project succeeded in establishing an association coveringprivate irrigation agents and professionals in related activities, from the grassroots to the national level. Theassociation represents, provides services and defends interests of small-scale irrigators. In addition, theproject succeeded in establishing an association of artisans, pump manufacturers and drillers which is alsoa member of ANPIP. The project established an executing agency which, in addition to PPIP, is presentlyexecuting two other projects funded by donors other than the World Bank. Lastly the project establishedtwo functional economic interest groups (GTE) that provides counseling support service composed of somenewly recruited young professionals (one in Niamey and the other in Maradi).

AssessmentThe component actively promoted the national policy concerning private small scale irrigation development.It strengthened the farmer's association and created more of the GIEs than targeted in the SAR. It is widelyconsidered in Niger that the association's development reflects a positive reaction of irrigating farmers tothe newly elaborated national strategy for agricultural development, especially in irrigation. TheGovernment's decision to execute the key project activities through a private agency and then to transfer allthe activities to this agency increased the prestige of the associative movement and has given the projecteven higher visibility.

The SAR requested the project to assist individual farmers in project preparation, procurement and contractmanagement, and in securing land tenure. In two of the three activities under this section the Componentobtained results inferior to the targets, even those revised by the MTR. This discrepancy originated in (a)

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an inadequate selection of output indicators in the SAR (the SAR does not justify requirements concemingthe quantity of the products to deliver, the most of the targeted quantities should have been revised duringthe MTR; even this ad-hoc revision did not reflect the implementation possibilities of the project, sincesome of the new targets were exceeded, whereas others were not attained); (b) a lower than estimatednumber of request for procurement and contracts due to the absence of rural credit, and (c) a perception bythe beneficiaries that land tenure security should be solved through traditional channels and notadministrative ones.

The Govemment's opinion, the beneficiary's conmments during visits by the ICR team, the opinion of theWorld Bank country representation, and the review of available documents all support the opinion that themanagement of the project by the agency was highly satisfactory.

b) Small-scale Mechanized Irrigation Component

The small-scale Mechanized Irrigation Component included tests and evaluations of simple, low-costmechanized technologies appropriate to farms cultivating plots of more than 0.5 ha. The component was to:(a) promote existing technologies; (b) research less common technologies (well drilling, water distribution,small motor and electrical pump introduction); and (c) build local capacities by organizing workshops andfield trips. The technologies selected and recommended by the Component were to be additionally testedand then disseminated by the agricultural extension service supported by the IDA-financed AgriculturalServices Project (Cr. 2355-NIR). After the Mid-term Review the additional testing and dissemination wastransferred to an NGO.

Expected outputsThe component sought to test 18 mechanized pumping technics, 20 mechanized water distribution technics,and organize 180 demonstration and dissemination sessions. It was expected, that at the end of the project,at least 750 farmers would have adopted the proposed mechanized technics. The Mid-term Reviewmission's recommendations decreased the number of mechanized pumping techniques to 16, reduced thewater distribution technologies tested to 6 and reduced the training sessions to 54.

AchievementsThe component organized 382 training sessions covering 4,150 participants which largely exceeded thetarget set by the SAR. The training was complemented by radio and TV information, newspaper articles,booklets and handbooks printed by the project, and demonstrations in local markets. More than 1,300farmers including 303 women, purchased the equipment and applied the recommended technologies.Among the trained craftsmen, 25 installed water distribution systems, 64 repaired motor-pumps, and 12act, as advisers to farmers in irrigation techniques and agricultural practices. Farmers, craftsmen andadvisers were all from the private sector. All the outputs exceeded the SAR targets.

In addition, the tests and experiments allowed for better knowledge of the characteristics and performanceof the motor-pumps, thereby making it possible to advise producers on their investment.

In view of the availability and the present market trends, the following makes were selected for experiment:Robin, Honda and Yamaha. On the whole, eleven (11) models of motor-pumps distributed, have been testedincluding those with horse power of between 3 and 5, using petrol, kerosene, gas oil and mixture of petroland diesel.

Two additional models (imported from China and India) were tested. They were:

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* Chinese model SSP 50-14 (mixture of petrol and diesel)* Indian model GREAVES CNVI-MK 12 (petrol).

At the end of the tests, considering their performance, it was observed that:

* The Robin Jard 35E motor-pump was well adapted to the pumping conditions observed in the field;it is also technically and economically competitive;

* The diesel motor-pump was also technically competitive, but with high investment cost: spare-partsnot easily available and costly. Its maintenance was partly mastered by local repairers;

* The petrol motor-pump showed good economic profitability, but the fuel cost fluctuatedconsiderably. Its maintenance becomes increasingly difficult after one to two years of utilization, as it ishighly sensitive to fuel quality;

* The Chinese motor-pump exhibited very low investment cost (factory price: 50,000 FCFA) makingit more easily accessible to producers, although their technical performance was poor. Its performance(consumption, productivity) could probably improve with more modifications;

* The Yamaha MT 110 motor-pump with a two-time engine (mixture) was highly regarded by someof the irrigation agents as it needed only minor maintenance despite of its high investment cost (350,000 FCFA). Its maintenance requirements which are similar to those of motorcycles is mastered by localrepairers.

Some improvements have been made by training some of the irrigation agents on the use and maintenanceof motor-pumps, notably, on regulation of the compensatory screw, frequency of maintenance operations,use of good quality fuel and lubricant in order to reduce the burdens of the irrigation agents.

AssessmentThe component's results are highly satisfactory and important for farmers who are involved in mechanizedirrigation. The large adoption of the component's recommendations suggests and that the componentcorrectly interpreted the test results and the proposed equipment and introduced adjustments correspondedto the farmers expectations. The objectives of the component were clearly stated in the SAR, and the NGOwhich implemented the component did it efficiently. The performance indicators reflect the progress inoutput implementation.

c) Improved Manual Irrigation Component

The Improved Manual Irrigation Component was designated to test and assess manual technology packagessuitable for farms cultivating plots of less than 0.5 ha. To this effect, the component was to: (a) improvehand dug wells; (b) improve manual water lifting technologies; (c) test simple water distributiontechnology; and (c) train local artisans. The component sought to include a package of technical andtraining support services in storage, conservation, processing, commercialization, maintenance and repairin the irrigation sub-sector. Particular attention was to be devoted to technologies acceptable to women.The implementation of the component was assigned to an NGO; the extension was to be carried out by theextension services of the IDA-financed Agricultural Services Project.

Expected outputsThe component was designated to test 12 water source development technologies, 27 manual water lifting

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technologies and 8 water distribution technologies. Then it was to select technologies best adapted to localconditions and train 50 craftsmen in equipment production and maintenance. One thousand and six hundreddissemination sessions were to encourage 3,250 farmers to adopt the recommended technologies andacquire 600 pumps. The Mid-term Review revised these targets downwards: the component was to test of10 water source development technologies, 13 water lifting technologies and 7 distribution technologies.On the other hand, the component was to train 70 craftsmen instead of 50, and to motivate both craftsmenand farmers so that 1,000 pumps should be made and sold. The Mid-term Review recommended totransfer the extension from the closed IDA supported project to the component.

AchievementsThe component organized the requested tests, trained 101 craftsmen instead of 60 and motivated 1,103farmers to acquire a pump. The trained craftsmen drilled 719 new wells. The farmers who adopted themanual irrigation techniques benefited from the supervision of the component' agents. The publicity wascarried out through demonstrations, radio and television broadcasts, (which became very popular),brochures, books, and technical notes. After the tests, the project propagated a whole range of approvedwater tapping, de-watering and water distribution technologies such as:

* PVC tubular borehole* Sinking wells* Foot pump "Bangladesh"* Hand pump* Depth pump* Big diameter pump "Bangladesh"* The Califomian or "Zamani" distribution system.

AssessmentThe component obtained highly satisfactory results. The project targets were exceeded. The designed andtested materials are considered by the beneficiaries to be of high quality and adapted to the local conditions.The component brought innovation in pumping and well drilling systems and proposed improved, lowercost systems. The equipment is especially suited to new market gardeners and those having small irrigatedplots. The improved pumps are produced in Niger, they are robust and adapted to the local demand; theirmaintenance is simple. Thanks to the component's innovations, the production costs of one pump wasreduced from 60 to 35 thousand FCFA.

d) Environmental Protection ComDonent

The Environment Protection Component was to monitor shallow aquifer levels, and soil and water qualityin the project zones. The monitoring was to focus on performance monitoring and recharge characteristicsof these aquifers. The component also included some soil erosion control work. Initially, the managementand implementation of the component was entrusted to INRAN and DRE. After the Mid-term Review, themanagement was transferred to ANPIP's project execution agency which implemented the activities throughan NGO in the western zone, and through the local services of the Ministry of the Environment in theeastern zone.

Expected outputsThe project was to install 61 piezometers, rehabilitate 5,000 cubic meter of ravines, stabilize 150 ha ofdunes, protect 60 ha of irrigated plots, and analyze 200 soil and 72 water samples.

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ResultsThe project installed 82 piezometers for shallow groundwater aquifer monitoring and attempted to interpretthe evolution of their levels. The results of the piezometric measurements were difficult to interpret becauseof the small number of piezometers and lack of leveling among them. Seventy-two water and 228 soilsamples were analyzed, some in considerable detail, but the results were not followed by recommendationsfor potential beneficiaries such as irrigating farmers, irrigator associations or extension services. Thepiezometers monitoring, and soil and water sampling did not provide information about the impact ofirrigation on soil and water.

Soil erosion controls covered several localities: in the western part of Niger in Tera, Say and Kollo regions;in the vicinity of Niamey; and in the east in Guidimouni, Droum (Mirriah) and Gourgia (Aguie). Progressin achieving outputs was slow until the MTR; it accelerated once the responsibility for the execution of thecomponent's activities was transferred to the ANPIP managed executing agency.

AssessmentThe results obtained are unsatisfactory. Only parts of the expected output were delivered. Water levelmeasurements in shallow aquifer did not significantly change cultivation of irrigated perimeters mainlybecause technology used for water extraction were in adequacy with the capacity of the aquiferregeneration. Water and soil analyses also did not show any negative impact of agricultural practices usedby farmers on their irrigated plots. This is because intensification is not yet fully developed in most ofproject areas. However with the scaling up the project which will encourage access to many farmers tomore en more efficient technologies and use of modem inputs there is need to continue monitoring theseaspects Some conservation structures and reforestation activities do not meet the required standards.Nevertheless, in some places, in particular in the eastern zone, the activities responded better to thetechnical requirements and the activities were executed with significant voluntary participation of localcommunities. Sustainability of these activities remained questionable

e) Savine and Credit Component

The Saving and Credit Component was to test and promote viable financial services for rural communitiesand introduce them to savings and credit union administration principles. The component was implementedby an NGO, which initiated a large scale movement of savings and loans in Niger in the 1980's.

Expected outputsThe component was to set up 60 saving and credit schemes and train 2000 individuals in banking principlesand practices. The Mid-term Review mission modified these targets to 30 schemes, 382 scheme managerstrained and 14,500 savers mobilized.

ResultsThe project successfully launched awareness campaigns and identified localities suitable for establishingthe saving and credit schemes. Despite the NGO's skill and experience, 4 to 5 information sessions insteadof 2 or 3 initially programmed were needed to mobilize the beneficiaries to create a scheme: low savingslevels among the rural population impoverished by poor harvests was the central reason of this delay. Atpresent, the component has created 27 schemes gathering 7,280 members, 27% of them are women.Totalsavings amounting to 716 million CFA is far beyond the expectations However, the small amount ofsavings mobilized (29,000 CFA per member) enables the schemes to grant only modest loans (an averageof 117,000 CFA per loan). Despite this demand for credit is high: 4,313 members have already obtainedloans. Some schemes have received funds deposited by aid projects that permit then to grant loans of morethan 500,000 CFA with repayments spread over several farming seasons. More than 350 persons have

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benefited from loans from these funds. The loan repayment rate is satisfactory. Only three schemes havemore than 200/o unpaid loans; and due to significant pressure within those communities that want the creditschemes to succeed these loans have a high likelihood of being repaid.

AssessmentThe results of the component activities are satisfactory. No project funds were deposited in the schemes;funds were provided mostly by farmers themselves and some outside donors. Presently, the credit unionsare serving the populations well: they mobilize savings and grant loans. The establishment of credit unions,elections of administrative committees, mobilization of savings and the establishment of repaymentdiscipline are perceived by the beneficiaries to be important factors in community life, promoting localinitiatives and strengthening solidarity. The schemes succeeded in introducing savings and loan principlesand administration. However, to date, only 17.6% of loans have been devoted to irrigation. Most of loanmoney is used to finance social events such as marriages as well as diverse commercial and otherproductive activities. Irrigation farmers also seek larger loans for equipment investment, and repaymentschedules adapted to seasonal cash flow in relation to crop harvest and marketing. In accordance with theSAR, the Govemment has respected the autonomy and the private character of the schemes.

4.3 Net Present Value/Economic rate of return:The project has confimned the relevance of current policy which considers the agricultural sector as thedriving force for economic growth. The project also represents a successful application of a gradualdisengagement (launched in the 1980's) of the Govemment from agricultural production organization andcontrol in favor of the private sector and farmers' organizations. In accordance with this policy, the projectadministration and implementation was entrusted to a private structure. The project's success confimns thevalidity of the new social and economic policy of Niger.

4 4 Financial rate of return:After two decades of questionable cost-effectiveness in large perimeters development schemes, thegovemment has focused on small-scale irrigation through supporting land security, producers' professionalassociations, and by facilitating their access to water and inputs. This strategy has enabled the govemmentto liberalize the prices of agricultural products, adopt laws related to rural code, clarify land systems,remove taxes on agricultural imports and exports, and introduce fiscal advantages for investors inagriculture. The project success is the immediate result of these measures.

Since the project goals were technology testing and evaluation, with local capacity building through privatesector development; the SAR did not require evaluation of its internal rate of return. However, twocomponents of the project, those of Small-scale Mechanized Irrigation and the Improved Manual Irrigationachieved results that can be expressed in financial and economic terms. Introduction of manual pumpingtechnology doubles the cultivated surface area, the economic rate of return (ERR) equals 68 percent. Themechanized irrigation multiply the cultivated surface area by four, ERR equals 66 percent.

4.5 Institutional development impact:The project strengthened the small irrigating farmers association ANPIP, the Saving and Credit UnionsMCPEC and mobilized farmers to create the economic interest groups (GIE). All these institutions operatein the private sector and are economically tied with the private irrigation development. It can be expectedthat they will continue to look for new market opportunities such as: agricultural counseling, equipmentproduction and servicing, and marketing of inputs. In the past, many of these activities were entrusted tothe Government extension services. However, the appearance of these new organizations coupled with themixed results obtained by the Government agencies responsible for extension and environmental protectionactivities will probably stimulate other projects and private sector to call more often upon

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non-governmental institutions. In this perspective, if the trend continues, the Government may be obliged toredefine the role and objectives of its own institutions concemed with private irrigation.

5. Major Factors Affecting Implementation and Outcome

S. l Factors outside the control of government or implementing agency:A project may suffer from unexpected consequences dependent on uncontrollable risks, governmentdevelopment actions and factors controlled by the project implementation agency. This chapter analyzes theeffects of these factors on the project implementation.

Long delays from preparation to effectiveness were due to political and social unrest experienced in Nigerduring its initial experience with restored democracy between 1990 and 1996. During that time there wasconstant turnover among the Government's interlocutors with the Bank. And given the innovative approachof the project, there was an understandable unwillingness on the part of the Government to engage in therisks conceivably embedded in this project.

The irrigation sector is, in principle, protected from climatic hazards - the key factor of uncertainty and riskin Niger's agriculture. However, abundance of rains and expansion of rainfed crops can reduce the demandfor irrigation. Irrigated agriculture also depends on the fluctuation of regional market prices for vegetables.For example, good rains combined with low onion and rice prices recorded in 1992, 1993 and 2000 in theinternational market had a negative impact on the profitability of irrigated plots in Niger

5.2 Factors generally subject to government control:Project execution was not hindered by Government actions. On the contrary, the initiative given by theGovernment to the irrigating farmers association, and its confidence in the implementing agencycontributed significantly to the success of the project. The Government disbursed its funds with some delayand incompletely (at June 30, 2001 only 0.29 out of 0.7 million of counterpart funds were disbursed) whichhad some impact on project administration, however this did not cause major delays in execution. Duringthe project's life, Government financial resources were very limited which constrained to the public. TheGovernment was unable to respond to new demands created by the project, namely in extension,agricultural advice, facilitation of input accessibility, price and market information and, most of all, in ruralcredit availability. To overcome these shortcomings, the Government transferred all activities to the ANPIPproject management. It also placed the rural micro-financing under its tutelage with MCPEC, a privaterural saving and credit association. Also project operations were facilitated and strengthened by the newnational surface water and irrigation management strategy and by the clear definition of the role ofirrigation in the national economy

5.3 Factors generally subject to implementing agency control:The PPIP implementation agency - ANPIP has fulfilled all of its obligations. It has installed all thenecessary tools and procedures to ensure that financial and administrative management is carried out inaccordance with the regulations of the Govemment and the Bank. The agency has produced an inventory ofequipment, vehicles, consumables and furniture. Procurement procedures have been respected, competentpersonnel have been hired, and the recruitment procedures were transparently followed. The agency followsand supervises the project components through quarterly progress reports, through a specialized PPIPdivisions, and quarterly meetings. In addition, on a monthly basis, the director general and the heads ofdepartments visit a given area in order to assess progress made in implementation. Upon closing of theextension project which was intend to carry out training and dissemination of technologies, ANPIPencouraged private sector to fill the gap. Two GIEs constituted by young graduate were able to advisefarmers on the procurement and use of new technologies.

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On a regular basis, the agency submits activity programs and estimated budget to the Government and theBank. Quarterly and yearly reports were prepared in a comprehensive and regular way. To ensure a projectcompletion in conformity with Niger's and the Bank's regulations, the agency has already requested theservices of a legal expert.

5.4 Costs andfinancing:Taking into consideration the pilot character of the project, the final USD costs (6.6 million USD) are veryclose to the SAR estimate (6.8 million USD) in spite of a 18 months extension of the project. At no timewas there any problem experienced with the flow of disbursement.

6. Sustainability

6.1 Rationale for ststainabiliy rating:Most of the project's outputs are sustainable because irrigation activities are traditionally practiced byfarmners long time ago.Value added of the project was just to ease hard labor, reduce cost and increaseprofitability. Technologies introduced by the project are simple, low cost and reproducible because mostcan be manufactured by local artisans. Niger has the most shallow aquifer abundance in west Africa andcapacity of promoted technologies would be tapping only a small portion of water resource available.Institutional frame work established by the project promoted farmers ownership and empowerment indecision making process without Government intervention which will reduce uncertainty. Credit andsavings schemes have become popular, they are mobilizing more en more savings for irrigationdevelopment which may lead to a healthy rural credit system. All related irrigation activities are private andmarket oriented and no subsidy mechanism is involved. Recurrent food shortages due mainly to drought inNiger is a powerful incentive for farmers to continue irrigation to insure food security and povertyreduction. Given the success of the promoted technologies and a relative easy access to them, it is assumedthat farmers may not go back to hand fetching of water to increase their income and improve their welfare.

However, six points relevant to sustainability of these achievements call for attention:

* Sensitization and training of GIE needs to be pursued after the completion of the project, since themajority (72 percent) consider the organization only as an entry point for obtaining credit;

* Despite the craftsmen's training and equipment availability, the sustainability of the improvedirrigation technologies is not totally guaranteed. The difficulties in managing an irrigated gardenare many and the inexperienced gardeners continue to request assistance in pump maintenance,agricultural techniques, crop protection, conservation and commercialization methods.

* For the time being, farmers do not have easy access to credit for inputs or equipment purchasethere is no agricultural Bank nor any form of subsidy. The smooth running of all the credit unionsis not guaranteed following the completion of the project. Experience shows that almost 1/2 of thecredit unions established in Niger continue to exist after their founding project expires while theremaining half disappear. Therefore, before the newly extended credit unions system reachesmaturity, farmers access to credit should be assured through other means, for example via"matching grants".

* Wind and water erosion controls (which have been initiated by the project) cover areas outside ofthe valleys exploited by the market gardeners. These areas usually belong to owners who take nointerest in irrigation and may be reluctant to replace their traditional farming methods which have

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led to the present state of degradation. Combined with the temporary nature of the executed works,this fact casts doubt on the sustainability of the activities financed under the EnvironmentalProtection Component.

* Ensuring ongoing progress in new irrigation technologies calls for continued testing andmodification of equipment and methods suited to Niger's changing conditions and informingfarmers about these new developments.

* Irrigated crops are less exposed to climatic hazards than rainfed ones. However, since investmentin irrigation is costly, the farmer's tolerance to risk is low. Nigerien farrners are not yet protectedagainst risks, therefore expected extension of the irrigation may be an opportunity to launch anationwide consultative process regarding the introduction of insurance schemes in agriculture.

6.2 Transition arrangement to regular operations:The project was envisaged as a pilot phase of a longer-term investment program to realize the full potentialof technologies developed, systems and skills created. Commitments both from the Bank and theGovernment of additional funding have been made and the second phase is nearing implementation.

7. Bank and Borrower Performance

Bank7. 1 Lending-PCD to appraisal was delayed from 1990 to 1995 for two main reasons: (a) long internal debate aboutwhether or not to agree on an IDA Line of Credit, which was in the original project design in order tofinance the irrigation development component; and (b) protracted negotiations, first with thenewly-established SONIBANK (which we planned to use as financial intermediary) and then CAREIntemational--an NGO- (which had agreed to serve as implementing agency of the line of credit for amanagement fee). Both were abandoned because of a management decision to cancel the IDA line ofcredit. the project team decided to redesign the project, focusing on testing and disseminating simple, lowcost smallholders irrigation technologies and institution-building, rather than abandon the project. Theproject's success may in large part be attributed to this narrowed focus and its innovative institutionaldesign.

7.2 Supervision:The Bank has reviewed and approved all the project's tendering and consultant hiring decisions. It hasexamined and approved the administrative and financial management procedures as well as proceduralmanuals. The project received 15 supervision missions, at an average of more than two per year because ofits pilot nature. A Mid-term Review was carried out in May 1999. Funds were replenished with anacceptable 2 to 3 weeks delay. Non-objection requests were received with some delay during the first threeyears and, some of them were never addressed; following the appointment of a project manager based inNiamey, the project requests were addressed promptly.

7 3 Overall Bank performance:The Bank's overall performance was satisfactory in lending activities, comprehensive teams were fieldedwith many members maintained throughout supervision. Supervision missions included the requiredexpertise, and local staff continuously monitored project activities. One of the most positive aspect is thatTask Team Leadership was decentralized to the field in order to minimize project activity delays.Preparation of the second phase was advanced in order to minimize the transition period between the pilotphase and the investment one.

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Borrower7.4 Preparation:The Borrower's performance in lending is assessed as satisfactory. Project preparation was undertaken by alocal multidisciplinary working group established by the Government in 1990. This group participatedactively in the design and preparation of this project and was assisted by a FAO/CP team in writing theproject final preparation report. This report is based on various surveys and project preparation workingpapers prepared by the local group.The Government and the Bank jointly prepared a project in April 1992,which would have included a line of credit, estimated at 75 percent of the IDA credit, to finance on-farminvestments. Following the elimination of the IDA line of credit, in August 1993, due to the prevailingunfavorable macroeconomic and financial sector enviromnent, the Government and the Bank redesigned theproject in November,1993 to focus on building the technical and institutional capacity that would permitsustainable private sector investment in irrigation subsector. There was close cooperation at the time ofpreparation between the Government and the Bank, and the leadership and vision provided by the maincounterpait in the ministries of Planning, Finance and Rural Development ensured that the project thatdeveloped was appropriate to Niger's needs. Farmer organizations, various NGOs and representatives fromall the counterpart agencies were involved in the preparation despite profound political unrest at the time.Between appraisal to effectiveness, the Government delayed payment of its counterpart contribution,because of the deteriorating public finance situation of the country.

7.5 Government implementation performance:The Governmnent of the Republic of Niger assigned implementation of the project to a specialized NGO(ANPIP)Alt participated in all the project's supervision missions organized by the World Bank.Recognizing the unsatisfactory performance of extension and environment protection activities, theGovernment conferred their implementation to ANPIP as executing agency. However the Government wasunable to contribute fully to project financing, and follow-up of the project by its specialized agencies washindered by lack of funds. Given the positive development impact of the project ( efficient use oftechnologies leading to an expansion in cultivated area and increase of farm income) the Governmentrequested and obtained an extension of the closing date from June 30, 2000 to December 31, 2001. Theextension permitted a successful completion of the innovations in technology transfer and institutionbuilding as well as helping create conditions for sustainability. Taking to scale successful interventionsneed to consider the time required to build additional capacity to ensure appropriate follow up and qualityin the delivery of the interventions. Too much too soon leads to serious operational drawbacks.

7.6 Implementing Agency:The implementing Agency's performance is assessed highly satisfactory due to outstanding achievements ofproject objectives, successful experience and lessons learned under pilot project, its efforts to explicitlydefine potential trade-offs between objectives, its efforts to bring up some donors on board, quality of auditeffective and efficient communication system developed and it's success in keeping good workingrelationship with Government and the Bank as well as others institutions and farmer associations.

7.7 Overall Borrower performance:The overall performance of the Government during the project implementation is assessed as satisfactory.The Government did not interfere in the management of project funds and respected its commitment forproviding most of the counterpart funding. However many of the Govemment's representatives wereunenthusiastic about project management by private entities. Consequently, follow-up on project activitiesand technical support from Government agencies were lacking during the first three years of the project.The Government became very supportive of the project only when the technologies were developed andenthusiasm arose from farmers all over the country for this new approach.

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8. Lessons Learned

The management of this important project, and its numerous technical achievements provide an opportunityto draw several lessons that will help in designing and executing similar projects. This section groups themin six points presented in the order of the project' components.

* Implementation of the PPIP demonstrated that a private structure such as ANPIP can be acompetent and efficient manager of a development project financed with public resources and that Niger'sprivate sector has the skills and capabilities to successfully organize and manage complex ruraldevelopment programs providing the Government willingness to play its facilitating role.

* The project experience shows that small scale mechanized and improved manual irrigation in Nigerare an efficient tools for increasing food security, profitability and incomes and poverty reduction in ruralareas.

* Well targeted publicity can play a decisive role in technologies promotion and a steady increase intheir adoption by farmers even among population with a low literacy rate.

* The improved or newly introduced technologies and the saving and credit unions were introducedby the project exclusively using free market, private sector driven initiatives. The project raised awareness,trained and demonstrated, but investment in equipment production, its purchasing and installation, savingand credit mobilization (with exception of five schemes that received small trust fund from other donors)were ensured by farmers. The adoption rate and the use of the new technologies and new organizationalskills represents the success of a genuine, market driven trend even when public extension services are notfully operational.

* One of PPIP's greatest contributions to development impact was through its flexibility, recognizingthat promoting private approach in rural development is a slow and complex process. Constant adjustmentswere necessary throughout the five years and half of project activity. The first 2 years were spent inpreaching the approach, sensitizing, training and organizing. the third and fourth year actions started takenup and by the fifth year results showed up. The project was designed for four years but implementationtook five year and half to get significant results. Therefore the Bank should focus more on an agreed-toprocess that can respond to changing situations.

* Progressive adoption rate of technologies is a guarantee for sustainability; for example from handfetching to treadles pump up to mechanized pumping. It is important not to short-circuit the naturalprogression in technologies adoption. A rational expansion of farm size is based not only on land, labor andcapital availability but also on the know how.

* A focus on outcome and output indicators is critical, especially in a pilot project activities. TheBank's current requirement to include these as a central aspect of any project is very useful as highlightedby the retrofitting within this project during the Mid-Term Review. Having this at the start of the projectwould have helped to re-focus activities when circumstances changed.

* Because two parallel structures (private and public) were considered, project design should haveinclude an agreed exit strategy with a step-wise plan of action which delineates clear benchmarks during allstages of project implementation to ensure a gradual transfer of acquired capacity to mainstreaminstitutions or a phasing out of mainstream institutions if project-created structures are to prevail at projectcompletion.

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9. Partner Comments

(a) Borrower/implementing agency:PPIP has been a successful agricultural development project because of its innovative approaches andspecifically designed strategies for increasing food security and rural income. It has also been effective atestablishing successful private sector-government partnership and for providing the foundation forlong-terrn sustainability. Most of the targets were achieved. Only a few, such as numbers of demonstrationsand numbers of farmers requesting and obtaining land tenure security services are low compared toappraisal estimates of 42 and 44 % respectively.

PPIP implementation resulted in the effective establishment of a farmers association (ANPIP) embracingprivate irrigation agents and professionals in related activities. It has also permitted the establishment of thecountry's first operational project execution agency for private irrigation. Well-adapted technologies arebeing propagated in a self-sustaining manner. This sub-contracting approach plus a well designed andeffective communications campaign greatly contributed to project success.

Constraints encountered included a lack of support from public extension services to participate indemonstrations of the technologies because of their limited resources, the absence of rural credit, and welldeveloped input supply sector.

A subsequent project (PIP2) was formulated and will be implemented on the basis of PPIP. To this end, itshould upgrade and amplify the gains of PPIP and remove the constraints observed during itsimplementation.

(b) Cofinanciers:Not applicable

(c) Other partners (NGOs/private sector):Out-contracting via the private sector was highly appreciated because more flexible and rewarding than viathe public sector. PPIP gave great opportunity for certain national as well as some international NGOs toreinforce their capacity and demonstrate their efficiency in irrigation development.

10. Additional Information

A. Future Operations

The project has enabled private irrigating farmers in five areas of Niger to increase their production andincomes. This experience needs to be made sustainable and deserves to be extended to other areas of thecountry. Without such actions, impact of the project will be limited and full return on will also be limited.Therefore a second phase of the project has been designed and approved by the Board on March 19, 2002.The following points were taken into account for the future operation to succeed and be fully sustainable.

* As envisaged by the SAR, the project contributed to strengthening the private irrigator'sassociation. This contribution was one of the most important financial resources for the association'soperation. Since the project ended in 2001 it is important for ANPIP to continue developing services andactivities that will attract financing for their operations. This may, for example, consist of offering to itsmembers such paid services as mediation in social conflicts, solving land tenure disputes or legalprotection, or offering to the Government its skills in organizing community action aimed at controlling soilerosion, and aquifer overexploitation.

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* Further extension of the introduced technologies needs to be supported by a parallel development ofspecialized services, markets, and extension agencies. The irrigating farmers and their association maypromote creation and expansion of these institutions. The Government may provide training and technicalassistance. The project's experience shows that the new irrigation technology introduction should besupported by intensive training, demonstrations and technical assistance, since poorly installed and/orimproperly used irrigation equipment would cause a decrease in an irrigator's revenue and subsequentreturn to the traditional less efficient but more familiar technologies.

* Further expansion of irrigation and the anticipated increase in crop productivity will modify thepresent balance among input supply, production, and market demand, and it will create new needs inpost-harvest crop conservation and marketing skills. These anticipated changes should be assessed, andaction taken to ensure the adequate balance between increased demand for services and their availability tofarmers. The private irrigation association, the Government or development projects can be at the origin ofthese initiatives.

* The farmers, their associations, and the Government should follow the evolution of shallowaquifers, monitor water and soil quality and combat soil erosion. The aquifer monitoring should inform theGovernment about water availability for irrigation, and soil and water quality analysis should help farmersto adjust irrigation techniques and fertilizer applications to the prevailing soil and water conditions. Finally,erosion control should preserve the productive potential of the irrigated lands. This systematic and complexfollow-up was initiated by the project, but it still needs to be improved and it should be continued on aregular basis.

e The PPIP experience shows that development of private irrigation requires both investment andproduction credit. Currently, only short term credit is available through the private savings and creditunions. It is therefore essential to ensure further development of rural credits unions and help them to offercredits adjusted to the long term specific needs of small irrigating farmers.

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Annex 1. Key Performance Indicators/Log Frame Matrix

Outcome I Impact Indicators:IndicatorlMatrix Projected In last PSR ActuaULatest Estimate

-Smaliholders technoogy improvement The techndogy promotion benefited 3,469 The techndogy promotion benefited 3,469smaliholders farmers through increase smaliholders farmers through increase productvityproductivity and in,ome. Cost of technology and income. Cost of technology reduced to onereduced to one thkd. area cultivated using third. area cultivated using manual andmanual and mechanical has increased about mechanical has increased about three-foldthree-fold compared to the without project compared to the without project scenario Locatscenario Local capacity for manufacturing capacity for manufacturing technology is in placetechnology is in place.

Understanding and managing savings Saving and credi schemes establshed by the Saving and credlt schemes established by theand credi schemes- project are autonomously managed, used by project are autonomously managed, used by 7.984

7,984 members, and have disbursed more than members, and have disbursed more than 4,0004,000 loans capacity to manage scheme i in loans capacity to manage scheme i In place andplace and understanding credt principle by understanding aedRt prindple by farTners hasfarmers has increased significantly. increased significantly.

-Management of public resources ANPIP's development reflects a positive ANPIP's development reflects a positive reactionfunded project by private entity reaction of irrigating farmers to the newly of irrigating farmers to the newly elaborated

elaborated natonal strategy for agricultural nabonal sbtategy for agricultural developmentdevelopment, especialy in irngabon The especially In irrigabon The Governmenfs decisionGovemmenrfs decision to execute the key to execute the key project activities through aproject actMibes through a pivate agency and private agency and then to transfer all the actvitiesthen to transfer all the acdvities to this agency to this agency increased the prestige of theincreased the prestige of the associative associative movement and has given the projectmovement and has given the project even even higher visibility ANPIP's capacity forhigher visibility. ANPIPs capadty for mondonng monitoring and evaluabtng project performanceand evaluating project performance and and development impact has improveddevelopment impact has improved significantly significantly.

Output Indicators:

Indicator/Matrix Projected in last PSR Actuai/Latest Estimate-Number of beneflicaries trained in 100 local atisans to be trained in manufacture 101 local artisans trained in manufacture ofmanufacture of small-scale manual of small-scale irrigabon equipment small-scale irrigation equipmentirrigation equipment increased(to bechecked aganst targets in contractwth ATi, the implementng NGO).

Adoption by the target benefidaries More than 3,469 farmers including 103 women More than 3,469 farmers including 103 women(as measured by the quantifiable purchased the equipment and applied the purchased the equipment and applied thetargets agreed with AFRVP, the recommended technologies. Area cultivated recommended technobgies. Area cultivated usingcontractng NGO) of R&D results on using manual and mechanical pumps has manual and mechanical pumps has increasedmechanized small-scale imgaton increased about three-fold compared to the about three-fold compared to the without projecttechniques. without projed scenario scenario.

Number of savings and loan schemes 27 savings and loan schemes established, 382 27 savings and loan schemes establshed, 382to be created realized(to be agreed in scheme managers trained, 2000 individuals scheme managers trained. 2000 individualsthe oontract with the implementing trained, 14,500 savers mobilized and 716 trained, 14,500 savers mobilized and 716 millionNGO) million CFA of saving. CFA of saving.

-ANPIP's capabilites to manage the The project successfufly assisted ANPIP to The project successfully assisted ANPIP to growproject is enhanced grow from a small group of 10 gradually to 19 from a small group of 10 gradually to 19

decentralized committees which reached 2,990 decentralized committees which reached 2,990representatives of farmers and administrative representatives of farmerns and administratve andand traditional authorities. Around 15,304 traditonal authorities. Around 15,304 farmersfarmers including 5262 women were organized including 5262 women were organized into 1,521into 1,521 economic interest groups (GIE) econorric interest groups (GIE). ANPIP's capaatyANPIP's capacity for monitoring and evaluation for monitoring and evaluation projectprojed implementaton performance and implementation performance and developmentdevelopment impact has improved significantly. impact has improved significandy.

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Annex 2. Project Costs and Financing

Project Cost by Component (in US$ million equivalent)Appraisal Actual/Latest Percentage ofEstimate Estimate Appraisal

ProJect Cost By Component US$ million US$ millionPrivate Project Management Agency (ANPIP) 1.30 2.18 167Small-scale mechanized irrigation 1.80 1.04 58Improve manuel irrigation 0.80 1.22 153Environmental protection 0.30 0.26 87Saving and credit chemes 0.90 0.63 70PPF Refinancing 0.70 0.70 100Studies and audits 0.70 0.30 0.43

Total Baseline Cost 6.50 6.33

Price Contingencies 0.30 0.30Total Project Costs 6.80 6.63

Total Financing Required 6.80 6.63

Project Costs by Procureme nt Arrangements (Appraisal Estimate) (US$ million equivalent)

Procurement MethodExpenditure Category ICB NCB Other N.B.F. Total Cost

1. Works 0.00 0.00 0.00 0.00 0.00(0.00) (0.00) (0.00) (0.00) (0.00)

2. Goods 0.40 0.00 0.00 0.00 0.40(0.00) (0.00) (0.00) (0.00) (0.00)

3. Services 4.00 1.10 0.00 0.00 5.10(0.00) (0.00) (0.00) (0.00) (0.00)

4. Operations cost 0.00 1.00 0.00 0.30 1.30(0.00) (0.00) (0.00) (0.00) (0.00)

5. Miscellaneous 0.00 0.00 0.00 0.00(0.00) (0.00) (0.00) (0.00) (0.00)

6. Miscellaneous 0.00 0.00 0.00 0.00 0.00(0.00) (0.00) (0.00) (0.00) (0.00)

Total 4.40 2.10 0.00 0.30 6.80(0.00) (0.00) (0.00) (0.00) (0.00)

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Project Costs by Procurement Arrangements (Actual/Latest Estimate) (US$ million equival nt)Procurement Method

Expenditure Category ICB NCB M thol2 N.B.F. Total CostNCB Other______

1. Works 0.00 0.00 0.00 0.00 0.00(0.00) (0.00) (0.00) (0.00) (0.00)

2. Goods 0.00 0.40 0.00 0.00 0.40(0.00) (0.00) (0.00) (0.00) (0.00)

3. Services 2.53 2.70 0.00 0.00 5.23

(0.00) (0.00) (0.00) (0.00) (0.00)4. Operations cost 0.00 1.00 0.00 0.00 1.00

(0.00) (0.00) (0.00) (0.00) (0.00)

5. Miscellaneous 0.00 0.00 0.00 0.00 0.00(0.00) (0.00) (0.00) (0.00) (0.00)

6. Miscellaneous 0.00 0.00 0.00 0.00 0.00(0.00) (0.00) (0.00) (0.00) (0.00)

Total 2.53 4.10 0.00 0.00 6.63

_ _ _ (0.00) (0.00) (0.00) (0.00) (0.00)

"Figures in parenthesis are the amounts to be financed by the Bank Loan. All costs include contingencies.

lncludes civil works and goods to be procured through national shopping, consulting services, services of contracted staffof the project management office, training, technical assistance services, and incremental operating costs related to (i)managing the project, and (ii) re-lending project funds to local government units.

Project Financing by C mponent (in US$ million equivalent)Percentage of Appraisal

Component Appraisal Estimate Actual/Latest Estimate

IDA Govt. CoF. IDA Govt. CoF. IDA Govt. CoF.

Vehicles, equipment & 0.40 0.32 80.0materialsConsultant services, 4.50 3.91 86.9training, studies & auditsIncrem. operations costs 0.50 0.70 0.26 0.22 52.0 31.4

PPF 634 NIR 0.70 0.51 72.9

Unallocated 0.70 0.0

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Annex 3. Economic Costs and Benefits

Since the project goals were technology testing and evaluation, and local capacity building through privatesector development, the SAR did not require evaluation of its internal rate of return. However, twocomponents of the project, those of Small-scale Mechanized Irrigation and the Improved Manual Irrigationachieved results that can be expressed in financial and economic terms. Introduction of manual pumpingtechnology doubles the cultivated surface area, the economic rate of return (ERR) equals 68 percent. Themechanized irrigation multiply the cultivated surface area by four; ERR equals 66 percent.

Among the most significant indicators permitting to appraise the impact of the project on increase inincome, the following elements can be cited:

* according to a survey conducted on some of the irrigation agents, acquisition of a foot pump makesit possible to increase the land area previously cultivated by about three times;

* the net income multiplied by 2.56 from F.CFA 11 6,000 to F.CFA 297,000 for the manualtechnologies (mainly the foot pump);

* monitoring of irrigation agents using some mechanized technologies, showed that the net margin ofthe latter is, on average, F.CFA 628,440 with a standard difference of F.CFA 307,775, a minimum ofF.CFA 188,085 and a maximum of F.CFA 1,054,883;

* the economic profitability is around 104% for the mechanized technologies and 217 percent for themanual technologies.

Table 1. Economic and fiscal performances (in '000 FCFA) of mechanized irrigation farmn of 0,9 hectare (ERR =68 %, actualization rate = 10 %)

Category Farmer Collectivity National Government World Economymarket market

RevenuesMarket 1 831 1 831 (I 831) 1 831Exportations en CFA 219 219 (219) 239Exportations en Naira 266 266 (266) 266Total 2 316 2 316 (I 831) (485) 2 336

CostsFamily work (373) (373) (373)Local costs (156) (156) 156 (156)Importations from the (674) (675) 13 80 581 (582)Naira zoneOther importations (303) (303) 76 36 190 (292)Costs for the project (333) (333)Total (2506) (1 840) 245 (217) 771 (I 403)Net 810 477 (I 587) (217) 288 934

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Table 11. Economic and fiscal perfomiances (in '000 FCFA) of manual pump irrigation -farm of 0,2 hectare (ERR =66 %, actualization rate = 10 %)

Category Farmer Collectivity National Government World Economymarket market

RevenuesMarket 360 360 (360) 360Exportations en CFA 8 8 (8) 8Exportations en Naira 63 63 (63) 63Total 431 432 (360) (71) . 432

CostsFamily work (22) (22) (21)Local costs (127) (127) 127 (127)Importations from the (57) (58) I 7 50 (52)Naira zoneOther Importations (81) (81) 20 10 51 (77)Costs for the project (185) i (185)Total (287) (473) 148 (168) 101 (278)Net 144 (41) (212) (168) 30 154

The savings and credit schemes, in spite of their inadequate resources, cover the poorest, providing themwith adequate means to develop some income-generating activities susceptible of helping them to come outof the poverty circle. The project made it possible for 5,473 persons to receive some small loansamounting to F.CFA 638,692,102 (from own funds).

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Annex 4. Bank Inputs

(a) Missions:Stage of Project Cycle No. of Persons and Specialty Performance Rating

(e.g. 2 Economists, I FMS, etc.) Implementation DevelopmentMonth/Year Count Specialty Progress Objective

Identification/PreparationMarch 3-23, 1990 6 ECON, AG, S S

HYDRO-GEOLOGISTJune 16-25 1990 5 ECON, IRRIGATION S SJuly-August 1993 S SOctober 27 to 2 ECON S SNovember 12, 1993

Appraisal/NegotiationDec. 11- 13, 1994 1 ECON S S

S S

SupervisionJune 17-23, 1996 2 ECON, AG S SOct. 23-29 1996 2 ECON, AG S SMarch 24-29 1997 4 ECON, AG, PROC S SJune 28- July. 1, 2 ECON, AG S S1997Oct. 6-17, 1997 6 ECON, AG S SFeb.2-13, 1998 4 ECON, AG S SJan. 6-15, 1999 3 ECON, AG HS SMay 17-June 4 7 ECON, AG HS S1999Janv. 31-Feb. 12, 6 ECON, AG., FIN. HS S2000Janv. 15-26 2001 5 ECON, AG., FIN HS S

HS S

ICRJune 25-July 25 6 ECON. AG., FIN PROC HS S2001March 13-26 2002 2 AG. HS S

(b) Staff:

Stage of Project Cycle Actual/Latest EstimateNo. Staff weeks US$ ('000)

Identification/Preparation 388Appraisal/Negotiation 120Supervision 309ICR 26Total 842

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Annex 5. Ratings for Achievement of Objectives/Outputs of Components(H=High, SU=Substantial, M=Modest, N=Negligible, NA=Not Applicable)

RatingO Macro policies O H OSU*M O N ONAOI Sector Policies O H * SU O M O N O NAOi Physical O H * SU O M O N O NAEL Financial OH *SUOM ON ONA3i Institutional Development 0 H * SU 0 M 0 N 0 NAO Environmental O H OSU * M ON O NA

SocialLi Poverty Reduction * H O SU O M 0 N 0 NAOi Gender 0 H- *SUOM O N O NAO Other (Please specify) O H OSUOM O N * NA

O Private sector development * H O SU O M 0 N 0 NAO Public sector management 0 H 0 SU 0 M O N * NAL Other (Please specify) 0 H O SU O M 0 N * NA

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Annex 6. Ratings of Bank and Borrower Performance

(HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HU=Highly Unsatisfactory)

6.1 Bankperformance Rating

O Lending OHS OS OLU OHUO Supervision OHS OS OU O HUO Overall OHS OS OU O HU

6.2 Borrowerperformance Rating

O Preparation OHS OS OU O HUO Government implementation performance O HS * S O U 0 HUO Implementation agency performance O HS O S 0 U 0 HUO Overall OHS OS O U O HU

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Annex 7. List of Supporting Documents

Table 14: List of Supporting Documents

* ANPIP 1998. Etude sur la protection juridique du foncier rurale et de son utilisation commee1lment de garantie bancaire. 43 pp plus annexes.

* ANPIP 1999. Evaluation a mi-parcours du <<Projet pilote de promotion de l'irrigation priv6e >* ANPIP 2000. Diagnostic socio-economique de l'irrigation privee. 46 pp plus annexes.* ANPIP 2000. Statuts et reglement interieur. 31 pp.* ANPIP 2001. Rapport d'achevement du projet PPIP. 71 pp.* ANPIP Rapports annuels d'activites.* ANPIP. 1997. Contrat de consultation pour prestation des services passe entre ANPIP et MCPEC.

31 pp plus annexes.* La Banque mondiale 1994. Rapport d'evaluation . Projet pilote de promotion de l'irrigation priv6e

117 pp.* L'accord de credit de developpement du 24 Juillet 1995.* Le document de la strategie nationale d'irfigation et de la collecte des eaux de ruissellement Fevrier

2001.* Les diff6rents aide-memoires de missions de supervision de 1997 a 2002.

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IMAGING

Report No.: 24288Type: . CR