Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 16833

IMPLEMENTATION COMPLETION REPORT

REPUBLIC OF CHAD

NATIONAL LIVESTOCK PROJECT(CREDIT 1912-CD)

June 30, 1997

Agriculture Group 2Africa Region

This document has a restricted distribution and may be used by recipients only in theperformance of their official duties. Its contents may not otherwise be disclosed withoutWorld Bank authorization.

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EXCHANGE RATE

Currency Unit = CFA Franc (CFAF)US$1.00 = CFAF 277 (appraisal)US$1.00 = CFAF 319.10 (1989)US$1.00 = CFAF 269.39 (1990)US$1.00 = CFAF 283.55 (1991)US$1.00 = CFAF 263.25 (1992)US$1.00 = CFAF 288.86 (1993)US$1.00 = CFAF 536.83 (1994)US$1.00 = CFAF 512.22 (1995)US$1.00 = CFAF 512.30 (1996)

SDR 1.00 = US$1.41 (July 1988)

WEIGHTS AND MEASURES

Metric System

BORROWER'S FISCAL YEAR

January 1 - December 31

ABBREVIATIONS AND ACRONYMS

AfDB African Development BankADF African Development FundAE Auxiliaire d'Elevage (Livestock Auxiliary)AFF Abattoir Frigorifique de Farcha (Farcha Refrigerated Abattoir)ATE Adjoint Technique d'Elevage (Livestock Technician)BCPP Bovine Contagious Pleuro-PneumoniaCECP Commission d'Enquete et de Contr6le Parlementaire

(Parliamentary Survey and Control Commission)CEPREVU Cellule de Pre-Vulgarisation (Pre-Extension Unit)COP Cellule d'Organisation Pastorale (Pastoral Organization Unit)DERA Direction de l'Elevage et des Ressources Animales

(Livestock and Animal Resources Directorate)DGIS Direction Generale de la Cooperation Internationale

(Directorate General for International Cooperation (Netherlands))ENATE Ecole Nationale des Techniciens de l'Elevage

(National Livestock Techniciens School)FAC Fonds d'Aide et de Cooperation (France)GDS Groupements de Defense Sanitaire (Health Protection Groups)GIP Groupements d'Interet Pastoral (Pastoral Interest Groups)IES Improved Extension SystemLRVZ Laboratoire de Recherche Veterinaire et Zootechnique (Farcha)

(Farcha Veterinary and Animal Husbandry Laboratory)

Vice President: Jean-Louis SarbibActing Director: David Berk

Technical Manager: Joseph Baah-DwomohTask Team Leader: Francois Le Gall (Senior Livestock SpeKcialist)

FOR OFFICIAL USE ONLY

MAGAVET Magasin Gen6ral d'Approvisionnement en Produits et MaterielVeterinaires (General Veterinary Inputs and Equipment Supply Store)

MEHP Ministry of Livestock and Pastoral Water SupplyNLP National Livestock ProjectONDR Office National de Developpement Rural (National Office for Rural

Development)ONHIPV Office National de Hydraulique Pastorale et Villageoise

(Natiorial Office for Pastoral and Village Water Works)PARC Pan-African Rinderpest CampaignPCR Project Completion ReportPB/PPCB Peste Bovine/Peripneumonie Contagieuse Bovine

(Rinderpest/Contagious Bovine Peripneumonia)PEP Programme d'Ecologie Pastorale (Pastoral Ecology Program)PPP Programme Pilote Pastoral (Pastoral Pilot Program)PSAP Projet des Services Agricoles et Pastoraux

(Agricultural and Pastoral Services Project)REPIMAT R6seau d'Epid6mio-surveillance (Epidemiological Surveillance Network)ROPANAT Reseau d'Observation des Piturages Naturels du Tchad

(Chad Natural Rangelands Observation Network)SAR Staff Appraisal ReportSOTERA Societ6 Tchadienne d'Exploitation des Ressources Animaux

(Chad Animal Resources Utilization Company)SVA Systenie de Vulgarisation Amn6liore (Improved Extension System--IES)ZOP Zone cl'Organisation Pastorale (Pastoral Organization Zone)

This document has a restricted distribution and may be used by recipients only in theperformance of their official duties. Its contents may not otherwise be disclosed withoutWorld Bank authorization.

Table of Contents

PREFACE

EVALUATION SUMMARY ...................................................................... i

A. INTRODUCTION ........ ............................................................. iB. PROJECT OBJECTIVES ...................................................................... jC. IMPLEMENTATION EX:PERIENCE AND RESULTS ..................................................................... iiD. SUMMARY OF FINDINGS, FUTURE OPERATIONS AND KEY LESSONS LEARNED ............... iii

PART 1: PROJECT IMPLEMENTATION ASSESSMENT ................................................................... 1

A. INTRODUCTION ........ ............................................................. IB. PROJECT OBJECTIVES ...................................................................... 1C. ACHIEVEMENT OF PROJECT OBJECTIVES ...................................................................... 3

Policy Components ...................................................................... 3Investment Components ...................................................................... 4

D. MAJOR FACTORS AFFECTING THE PROJECT ...................................................................... 6Factors Not Generally Subject to Borrower's Control ..................................................................... 6Factors Generally Subject to the Borrower's Control ...................................................................... 7Factors Generally Subject to Implementing Agency's Control ................................... ......................7

E. PROJECT SUSTAINABILITY ...................................................................... 8F. BANK PERFORMANCE ...................................................................... 8G. BORROWER PERFORMANCE ...................................................................... 9H. PROJECT IMPACT ASSEISSMENT ...................................................................... 9I. FUTURE OPERATIONS ..................................................................... I IJ. MAJOR LESSONS LEARNED ..................................................................... 12

PART II: STATISTICAL TABLES ..................................................................... 13

TABLE 1: SUMMARY OF ASSESSMENTS .............................. 13TABLE 2: RELATED BANK LOANS/CREDITS .............................. 15TABLE 3: PROJECT TiMETABLE .............................. 15TABLE 4: LOAN/CREDIT DISB URSEMENTS -- CUMULATIVE ESTIMATED AND ACTUAL ................................ 1 6TABLE 5: KEY INDICATORS FOR PROJECT IMPLEMENTATION ............................................................ 17TABLE 6: KEY INDICATORS FOR PROJECT OPERATION ........................................... BE................................... 18TABLE 7: STUDIES INCLUDED IN PROJECT ......................................... 18TABLE BA: PROJECT COSTS ......................................... 18TABLE 8B: PROJECT FINANCING .......................................... 1 9TABLE 9: ECONOMIC COSTS AND BENEFITS ......................................... 19TABLE 10: STATUS OF LEGAL COVENANTS ......................................... 20TABLE 1 1: COMPLIANCE WITHI OPERATIONAL MANUAL STATEMENTS ....................................................... 22TABLE 12: BANK RESOURCES -- STAFF INPUTS ....................................................... 22TABLE 13: BANK RESOURCES-- MISSIONS ........................................................ 23

COMMENTS ON THE IMPLEMENTATION COMPLETION REPORT .......................................... 24

A. COMMENTS ON THE IMPLEMENTATION COMPLETION REPORT ........................................... 25B. STUDIES PRODUCED B Y THE PROJECT (SUBJECT OF ANNEX 7) .................................................... 27

NOTE ON THE SUPPORTrVE RESEARCH COMPONENT ....................................... 28

MAP: IBRD 21015

IMPLEMENTATION COMPLETION REPORT

REPUBLIC OF CHAD

NATIONAL LIVESTOCK PROJECT(CR. 1912-CD)

PREFACE

1. This is the Implementation Completion Report for the National Livestock Project in Chad forwhich an IDA credit in the amount of SDR 13.2 million (US$18.6 million equivalent) was approvedon May 31, 1988 and becamre effective on January 27, 1989.

2. The Credit was closed on December 31, 1996 following a one-year extension. The lastdisbursement took place on June 10, 1997 at which time the cumulative balance of SDR 2.8 million,representing the undisbursed amount, was canceled.

3. The ICR was prepared by Messrs. F. Le Gall, who visited Chad to carry out a completionmission from February 12, 1997 to March 8, 1997, with the support of M. Adamou, local consultant,and Desire Coquillat, and was reviewed by Messrs. C. de Haan, Jean Delion and Joseph Baah-Dwomoh. It is based on the project documents, interviews with Bank staff, Government officials,private persons and herders, and field trips in the country. The Borrower's representatives workedclosely with the mission, providing information and expressing views that are reflected in the aide-memoire (Appendix A). They also contributed comments to the ICR. The Borrower did not preparea separate project completion report. The report was sent to the cofinanciers who did not make anycomments.

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IMPLEMENTATION COMPLETION REPORT

REPUBLIC OF CHAD

NATIONAL LIVESTOCK PROJECT(CR. 1912-CD)

]EVALUATION SUMMARY

A. INTRODUCTION

1. Chad is a landlocked country, of which about half is suitable for farming and grazing.With an estimated per capita income of US$180.00 in 1995, Chad is ranked among the poorestcountries of the world. Agriculture, including livestock, fisheries and forestry, is the mainstay ofthe economy and contributed more than half of GDP in 1995 and provided the livelihood of 87percent of the population. The project was identified in June 1986 by an FAO/CP mission andwas initially conceived as a component of a larger Agricultural Sector Project. However, in viewof the need for further studies in the crop sector, compared with the more immediateopportunities in the livestock sector, it was decided to develop the livestock component as a free-standing project. The Pro'ject was prepared by an FAO/CP mission in October/November 1986and appraised in July 1987 by a joint World Bank, African Development Fund (AfDB), Fondsd'Aide et de Cooperation (French-FAC) and Directorate General for International Cooperation(DGIS-The Netherlands) mission.

B. PROJECT OBJECTIVES

2. The main objectives of the project were to increase national livestock production,producer incomes and Government revenues on a sustainable basis. These objectives were to beachieved through a combination of policy reforms and investments, leading to improved accessby producers to livestock health services and extension inputs.

3. The objectives of the policy reforms were to: (a) increase the degree of cost recovery forpreventive and curative animal health services rendered by the public sector; (b) liberalize andprivatize the import and distribution of livestock inputs and most veterinary services; (c) reformthe livestock export circuits and liberalize marketing and export of livestock on hoof, byabolishing the export quota system and SOTERA's control and monopoly functions, and bysimplifying the fiscal and administrative regulations affecting livestock marketing; (d) stabilizestaff recruitment by the M[inistry of Livestock and Pastoral Water Supply (MEHP) and improvestaff efficiency; and (e) define appropriate land tenure and pastoral water management policiesto achieve long-term resource conservation.

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4. The investment components were aimed at strengthening sectoral institutions andproviding them with the necessary infrastructure and operating means as follows: (a) creationand strengthening of livestock producer groups to play an expanded role in basic animal healthcare, water and resource management and the rehabilitation of approximately 100 water points;(b) improving input distribution and meat export by strengthening MAGAVET's wholesalefunctions, increasing its working capital and expanding its regional network, and providing a lineof credit to assist about 40 veterinarians and/or livestock technicians in taking up private retaildistribution and clinical animal health service, and private traders in exportiing meat or meat by-products; (c) strengthening the Farcha Laboratory to carry out producer-oriented research onrangeland conservation, integration of livestock into the farming system and the economics ofdisease control methods; (d) introducing efficient extension methods in the Livestock Serviceand retraining its staff, rehabilitating Ministry of Livestock and Pastoral Water Supply (MEBP)field facilities and providing them with basic veterinary and extension equipment andappropriate transportation; and (e) strengthening MEHPS's planning, coordination, projectmonitoring and water development capability, and building and equipping an additional officefor MEHP in N'Djamena.

C. IMPLEMENTATION EXPERIENCE AND RESUJLTS

5. The Project was able to set in motion the main reform programs that aimed atstrengthening the capacity of the MEHP and promoting the private sector. Measures were put inplace to encourage private enterprise, to stabilize the Ministry's work force, and to provideappropriate training and human resource development programs. A system of cost recovery forservices rendered by the livestock agencies, previously free of charge, was introduced and aLivestock Fund was set up to defray part of project operating costs. The monopoly held by thestate corporation supplying veterinary products (MAGAVET), was abolishedl, and the import andwholesale distribution of veterinary drugs are now handled by four private companies. Thenecessary legislation governing the privatization of veterinary medicine was enacted, and the"health mandate" principle was accepted. SOTREA's monopoly for the export of animalproducts and control of on-the-hoof stock was abolished. Procedures were simplified and theunit export taxes reduced by 12 percent. Definition of a rangelands utilization policy, based onthe transfer of certain ownership rights to users, however did not materialize.

6. The institutional strengthening component helped improve the Central Services of theMinistry of Livestock, except for the monitoring and evaluation services. Strengthening fieldservices in terms of health inspection, outreach and extension activities, was accomplished inpart by constructing, rehabilitating and equipping livestock agencies and tIraining field staff.The human resources training and management component largely met project expectations.The applied research component which was to support field level project development activitieswas only partially successful. The activities conducted in the framework of the 265 pastoralgroups (GIP), contributed to improvements both in animal health and in extension activities.

7. Major Factors Affecting the Project. Overall, the project's objectives of augmentinglivestock production and increasing farmers' income have been met. At start up, theimplementation of the project was hampered by delays in the effectiveness of the credit and alsoby: (a) the lack of effective coordination in setting up the various financing arrangements; (b)the lack of a common external aid policy regarding rangeland water works; (c) the unfavorable

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international economic situation for the export of Chad livestock (the situation improved from1994 onward); and (d) the social and political difficulties, which had severe repercussions on thecountry's entire political, economic and social life. Valuable lessons were learned in terms ofthe speed at which the implementation of the development component (extension, research,support to producer associations, and management of natural resources in pastoral areas) couldmaterialize. This led to the scaling down of the scope of these activities. Results have largelyimproved since then. The good performance of the Government had a bearing on theachievement of project objectives. These were: (i) the necessary contribution by the externalservices to certain project activities which was otherwise not readily obtainable; and (ii) theGovernment's counterpart contribution proved to be effective. Problems encountered by theimplementing agency included: a) the various reorganizations within the Ministry of Livestock;the centralization of day-to-day management procedures; b) poor utilization of the externaltraining facilities offered by the project, and c) failure to make optimum use of availabletechnical assistance.

8. Performance of the Bank and the Borrower. The Bank overestimated Chad's capacityto implement a project involving different activities of which the Ministry of Livestock until thenhad little experience because no pilot operations were previously initiated. Projectimplementation problems were however correctly identified and assessed by Bank supervisionmissions. The recommendations to correct these problems were the scaling down of the scope ofsome of the activities. In some cases important innovations were proposed and implemented,such as, improved efficiency of health services through private agents, the Pastoral PilotProgram, the Improved E]xtension System, monitoring committees, and fund export reserves.The Mid-Term Mission helped to speed up the execution of essential project activities whosestart-up had been delayed.

9. The Borrower commitment to instituting the reforms was effective throughoutimplementation, apart from rangeland policy formulation. There were weaknesses in theBorrower's capacity to plan and to coordinate, in the monitoring and evaluation of activities, andin the daily management of the project, which was excessively centralized.

10. Project Outcome. The Ministry of Livestock now possesses a rehabilitated and dulyequipped infrastructure, better trained staff, a cost recovery system with receipts paid into aLivestock Fund, and a basic legislative framework on development of the private sector capableof ensuring the sustainability of the bulk of the activities initiated by the project. The future ofprivate-sector activities vill depend in large measure on the Government's political resolve topursue implementation of the reforms that have been started and the ability of private operatorsto find markets. The pragmatic approach adopted by the project has facilitated better preparationof the herders for the possible execution, in the near future, of rangeland upgrading plans.

D. SUMMARY OF FINDINGS, FUTURE OPERATIONS AND KEY LESSONSLEARNED

11. Project Implemientation Experience, Sustainability and Future Operations. Theimpact of the project on national production has been difficult to estimate. The livestock sectorconsists of many different production systems, with significant differences in technicalcoefficients, and it was very difficult to obtain a representative sample, which would have

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provided a reliable estimate of project impact on production. But Project impact on governmentreceipts and expenditure was positive. Assessment of project accomplishments, by component,indicates that: (a) the general privatization process, herder organization, internal training andpasture pilot project aspects generated very positive results; (b) the extension activities absorbedinto the ongoing Agricultural Services Project, PSAP, can be described as promising; and (c) theimpact of the measures to strengthen the central services of MEIHP was minor or unclear. Thegeneral impact of the project is rated satisfactory.

12. Keys Lessons Learned. The project demonstrated that, despite a difficult political,economic and social situation, installing an appropriate institutional framework helped generateprivate initiatives. In this connection, the privatization process as carried out in Chad can serveas an example for other countries with similar features. The main lessons are that:

(a) some degree of decentralization, through organization of the herders, was possible in ahighly centralized administrative setting;

(b) integrating the project into the Ministry's structural organization proved to be a soundstrategy and hence there is the need to tailor the design of projects of this kind to localcapacities;

(c) frequent changes in the project agency, lack of continuity in key posts, poor matching ofexternal training to the positions to be filled, and interference by the Ministry in projectmanagement, can hamper project implementation;

(d) there is a need to design and start up the execution and impact of monitoring activitiesvery early in the project cycle and to ensure that the beneficiaries are capable of carryingthem out;

(e) donor coordination and unity are essential and decisive to continued execution ofreforms initiated;

(f) Chad's potential for on-the-hoof exports became clearly apparent in light of thecumulative impact of liberalization of marketing circuits, simplification of exportprocedures and reduction in export taxes, and devaluation of the CFA franc, showingthat given the correct environment private traders can demonstrate dynamism andprofessionalism.

IMPLEMENTATION COMPLETION REPORT

REPUBLIC OF CHAD

NATIONAL LIVESTOCK PROJECT(CR. 1912-CD)

PART I: PROJECT IMPLEMENTATION ASSESSMENT

A. INTRODUCTION

1. Livestock raising is a major economic activity involving more than 40 percent of Chad'srural population. Its contribution is 45 percent of agricultural GDP and 35 percent ofmerchandise exports. Livestock production is one of the few sectors with an immediate growthpotential, as the necessary livestock population, husbandry skills, markets and feed resourcesexist to permit expansion.

2. Previous Bank involvement in the sector had been through two operation (Table 2). TheFirst Livestock Project (Credit 309-CD, US$2.2 million) consisted mainly of studies, wellconstruction and repair, but because of the civil war its impact was smaller than initially planned.Due to the civil war, the Second Livestock Project (Credit 783-CD, US$11.5 million) with amore comprehensive approach, including delineation of pastoral units, animal health activities,credit and Livestock Service staff training, was canceled before becoming effective. IDA's post-war agricultural lending program only addressed the emergency situation in the cotton subsector(Credit 1715-CD) and the urgent need for planning and aid coordination. The third NationalLivestock Project was appraised in July 1987 with total project costs estimated at US$37.2million, of which US$1 8.6 million was to be financed by an IDA credit, US$11.6 million by theAfrican Development Fund (ADF), US$1.3 million by the French agency Fonds d'Aide et deCooperation (FAC), US$1.8 million by the Netherlands agency Directorate General forInternational Cooperation (DGIS), US$1.5 million by MAGAVET (Magasin Generald'Approvisionnement en Produits et Mat6riels Wterinaires), US$1.0 million by the Government,and US$1.4 million by t]he producers. At time of closing of the credit US$14.6 million had beendisbursed from the IDA credit representing 78.4 percent of the SAR target.

B. PROJECT OBJECTIVES

3. The major objectives of this project were to increase national livestock production,producer incomes, and Government revenue on a sustainable basis. These objectives were to beachieved by improving the policy and institutional framework of the livestock sector in inputdelivery, extension, marketing and export, and in improving rangeland utilization and resourcemanagement.

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4. Policy Component. The policy reforms aimed to:

(a) increase the degree of cost recovery for preventive and curative animal health servicesrendered by the public sector;

(b) liberalize and privatize the import and distribution of livestock inputs and mostveterinary services;

(c) reform the livestock export circuits and liberalize marketing and exports of livestock onhoof, by abolishing the export quota system and SOTERA's control and monopolyfunctions, and by simplifying the fiscal and administrative regulations affecting livestockmarketing;

(d) stabilize staff recruitment by the Ministry of Livestock and Pastoral Water Supply(MEHP) and improve staff efficiency; and

(e) define appropriate land tenure and pastoral water management policies to achieve long-term resource conservation.

5. Development Component. Project investments were aimed at strengthening sectoralinstitutions and providing them with the necessary infrastructure and operating resources. Thecomponent included activities to:

(a) create and strengthen livestock producer groups to play an expanded role in basic animalhealth care, water and resource management and the rehabilitation of approximately 100water points;

(b) improve input distribution and meat export by: (i) strengthening MAGAVET'swholesale functions, increasing its working capital and expanding its regional network;(ii) creating a line of credit to assist about 40 veterinarians and/or livestock techniciansin taking up private retail distribution and clinical animal health services, and privatetraders in exporting meat or meat by-products;

(c) strengthen the Farcha Laboratory to carry out producer-oriented research on rangelandconservation, integrate livestock into the farming system and the economics of diseasecontrol methods;

(d) introduce efficient extension methods in the Livestock Service and retrain its staff,rehabilitate MEHP field facilities and provide them with basic veterinary and extensionequipment and appropriate transportation; and

(e) strengthen MEHP's planning, coordination, project monitoring and water developmentcapability, and build and equip an additional office for MEHP in N'Djamena.

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C. ACHIEVEMENT OF PROJECT OBJECTIVES.

6. The project was integrated into and implemented within the Ministry of Livestock(MEHP). The project had a difficult start during a period when Chad was beset by seriousmilitary and socio-political events (para. 32). Project implementation performance, however,improved after the Mid-Term Review and progress was made in achieving most of the projectobjectives, with varying degrees of success. The project closing date was extended for one year.Major achievements included implementation of a legislative and regulatory frameworkgoverning the veterinary profession (para. 4), renovation of the infrastructure for field services,setting up of pastoral groups, and development of the private sector. Though export performanceand other quantitative indicators shows that the project had a significant impact on production,the lack of data has made it difficcult to measure the exact impact on production and incomes.

Policy Components

7. Cost Recovery. A cost recovery system was instituted for services provided by thelivestock agencies, previously free of charge. A Livestock Fund was set up which made itpossible to absorb part of the project operating costs, 10 percent in 1992, then 20 percent untilthe end of the project (para. 47 ii).

8. Import and Distribution of Veterinary Drugs. By liberalizing and privatizing theimport and distribution of veterinary drugs, the project improved the delivery to herders. Themonopoly held by the state corporation MAGAVET was abolished, and the import andwholesale distribution of veterinary drugs are now handled by four private companies. In theprivatization of veterinary medicine, the objectives were achieved by refocusing the livestockagencies toward their oversight functions and of obtaining, through private enterprise, betterlivestock health coverage and a reduction in the cost to the government of these activities. Thelegislative framework governing the privatization of veterinary medicine was established. The"health mandate" principle was accepted (the Government has accepted that qualified agentstook leave without pay and participate in the vaccination campaign on a contractual basis) andthe operation implemented, through the Rinderpest/CBPP campaigns. This represents one of themajor accomplishments of the project (para. 17).

9. Reform of Export Circuits. In order to improve livestock and animal product exports,measures were taken with respect to liberalization, simplification of procedures and reduction oftaxes. The monopoly of '30TERA for the export of refrigerated meat, offal and by products andon the inspection of exports of cattle on the hoof was abolished. Export procedures weresimplified and per-head export taxation reduced by 12 percent.

10. Strengthen the AMrinistry of Livestock's Capacity While Stabilizing Its Workforce. Thiswas accomplished through the following set of measures: freezing recruitments in the civilservice and giving them incentives to move to the private sector, and upgrading human resourcesby means of an appropria[te training program. The ratio of wage costs to total operating costsimproved from 90:10 to 60:40, regarded as optimum, by the end of the project. The internaltraining activities represented a major project gain (para. 21). The external training activitiesoffered however were not effectively used (para. 23).

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11. Land Tenure and Pastoral Water Management Policies. The formulation of arangeland utilization policy, based on the transfer of land and water rights to the herders, did notoccur. The project adopted a pragmatic approach by relying on the creation of pasture wells toinitiate the formation of pastoral interest groups (GIPs), later strengthened by extension activities(para. 13). Thus, the experience gained by the project in the pastoral organization zone (ZOP)should gradually enable the transfer of responsibility for the operation and maintenance of waterpoints to the pastoral associations and maintenance work to private artisans that could serve asthe basis for policy formulation in the future.

Investment Components

12. Producers Groups. The pastoral associations component comprised: (i) setting upherder groups and training their members; (ii) creating Chadian expertise in the areas of socialand pastoral organization, and (iii) rehabilitating about 100 water points and transferring them tothe herder groups.

13. The idea behind setting up and providing outreach services to herder groups (GIPs) wasthat they would assume responsibility for such livestock activities as basic veterinary care,procurement of veterinary inputs and drugs, and natural resource management. Of the scheduled300 GIP, 265 were set up, representing nearly 8,000 members and with about 200,000 animals.The activities carried out under the GIPs system contributed to upgrading animal health, and theGIP today provide an ideal framework for extension activities. The procedure for legalrecognition of GIP has been put in place.

14. The general purpose of the rangeland management component was to foster rationalutilization of natural resources (grazing land, water points). It was planned to test these activitiesin the Pastoral Organization Zone (ZOP), then extend them to the whole of the country. Thispolicy would lead to the transfer of wells to the GIP and over time to the drafting of a pastoralcode. This component only partially met its objectives. The activities were started very late andwere limited to a wells program (under which a total of 78 wells were transferred to GIP) plus afew improvement works around these wells. Rangeland resources management began in the lasttwo years of project implementation, with the installation of a Pastoral Pilot Program (PPP); thelatter posted very encouraging results and will be continued as part of the follow up projectPSAP.

15. Input Distribution, Clinical Health Services and Meat Export. The objective ofliberalization and privatization of the import and distribution of veterinary drugs was achieved.The Government abolished MAGAVET's drug import monopoly. The performance of theprivate companies shows that the operation was a positive move: 283 million FCFA of importsof veterinary drugs in 1995 compared with 86 million FCFA for MAGAVET in 1988. Theoperation was more difficult to evaluate at the distribution level, since the project lacked datathat could confirm better availability of the drugs to the herders (para. 28).

16. The privatization of veterinary services resulted in better coverage of livestock healthdelivery system and a 60 percent reduction in associated costs.

17. Vaccination against rinderpest (RP) and bovine contagious pleuro-pneumonia (BCPP)was formerly performed entirely by the Government and was done inefficiently. From 1994

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onward, private veterinarians have been carrying out compulsory vaccinations with theinstitution of the health mandate and financial contributions from herders. The performance ofthe private operators was superior to that of the government agents in all fields: execution of thecampaign (executed/targeted: 80 percent private compared with 30 percent public; headvaccinated per team: 100,000 private compared with 30,000 public; duration of the campaign: 4months private compared with 6 months public), serological results (>70 percent positive for theprivate compared with 50 percent positive with public), and cost (-34 percent compared withpublic). Owing to its innovative nature and its results, the operation represented a very importantcontribution. Based on these results, the "Health mandate" principle has been introducedsuccessfully in other Sahelian countries.

18. The volume of exports on the hoof has posted a steady increase and tripled from 43,542head in 1988 to 133,178; in 1995, owing in large part to the devaluation of the CFA franc in1994. These commercial operations continue to be largely dominated by the informal sector.Meat exports increased substantially and did not progress as much as expected from 79 tons in1988 to 972 tons in 1995, since the support activities especially the line of credit, were launchedvery late in the project.

19. Farcha Laboraliory. This component only partially met project expectations. TheFarcha laboratory, which continues to be Chad's main livestock research and development tool,had difficulty in going beyond the strict framework of its research responsibilities. In responseto this finding, during the Mid-Term Review, a new agency, the Pre-Extension Unit (CEPREVU)was set up to coordinate research and extension. It did not play the role expected of it. Thepurpose of identifying the basic parameters of the main production systems at the national level,as the basis for formulating livestock development policy, was not achieved.

20. Extension MetJiods and Staff Retraining. The human resources training andmanagement component satisfied project objectives as stated in the SAR.

21. The internal training program was particularly successful. The team installed displayeddynamism and an abiliity to meet the needs of the various project components (pastoralassociations, assistance to private operators, Improved Extension System (IES), applied research,and field services). Accomplishments under the program included nearly 300 refresher trainingsessions for field staff; 2,000 man-days of IES training and 5,400 man-days of training in othertopics developed by the project; the design of a journal for field agents, and the production ofreference teaching material.

22. The supervision missions identified the weakness of the project's extension system. In1992 an extension commnittee was set up, a test zone was identified, and the training and visitsystem was introduced in a form tailored to the specific context of herding in Chad, known asthe Improved Extension System (IES). Seven extension messages were disseminated under theproject, with satisfactory participation rates (averaging 75 percent) but widely varying adoptionrates ( ranging from 25 to 85 percent, according to topic). Overall, the objective was achieved,and at the end of the project, the IES was taken over by the PSAP and extended to the whole ofthe country.

23. Under the component's external training program, procedures were developed in 1992for sending candidates for training and a directory of external training agencies was prepared inJanuary 1996. The results of the external training component are less clear-cut since they were

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not always rated by reference to the real needs of the project. It managed to provide a total ofonly 125 man-months of external training (against a scheduled 1,321).

24. Some activities were started to improve human resources management. A data base wasestablished to list the skills available at the Ministry of Livestock but it covered only 55 percentof professional staff and due to this limitation it was not used. The procedures for recruitingextension agents were improved.

25. Strengthening the Ministry's field services in terms of health inspection, outreach (para.13) and extension (para. 22), was achieved in part through the construction or rehabilitation andequipping of herding infrastructures (para. 26) and the training of field agents (para. 21).

26. Refrigeration equipment for the vaccination campaigns, small veterinary equipment andmaterials, vehicles, and office furniture and equipment were purchased. At the end of theproject, construction and rehabilitation of 60 buildings in the veterinary sectors and stations ofthe Sahel Zone were being completed. The renovation and construction in 45 sectors andstations of the Soudan Zone started in October 1996.

27. Strengthening the Ministry of Livestock Central Services. This was to be achievedthrough the following measures: (i) strengthening of the Administration and Finance services;(ii) setting up of an office for cost recovery of fee-based services to be used to replenish theLivestock Funds (para. 7); (iii) actions to reduce turnover and offer refresher training to theMinistry's staff (para. 20); and (iv) construction of the headquarters building and procurement ofvehicles.

28. The objectives of the investment components were achieved, with the exception of themonitoring/evaluation function, which was not very efficient. In 1994 the M & E System wasrevised. At the end of the project, only 2 surveys were fully completed (GIP and Extension).Veterinary drugs distribution survey has been carried out but not analyzed.

D. MAJOR FACTORS AFFECTING THE PROJECT

Factors Not Generally Subject to Borrower's Control

29. Financing Arrangements. The lack of effective coordination in setting up the variousfinancing arrangements did not facilitate project start-up. While the IDA andl FAC contributionswere put in place quickly, setting up the ADF and Dutch Cooperation contributions suffereddelays. These delays had repercussions on implementation of the field services strengtheningand rangeland research components.

30. Coordination Among Donors. The lack of a common policy among the donors wasevident especially in the area of pastoral water supply. Coordination was good in all otherrespects and was particularly useful in the case of monitoring of the privatization process.

31. Economic Environment. From project start-up to 1994, the international economicsituation was unfavorable to the export of Chad livestock products. From 1994 onward, Chad'slivestock exports were revitalized under the combined impact of the devaluation of the CFA

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franc, the abolition of the European meat subsidy, the appearance of bovine spongiformencephalitis in Europe and the reduction in export taxes.

32. Socio-political Difflculties. During the project implementation period Chad was againbeset by serious military and socio-political events. These events had severe repercussions onthe country's entire political, economic and social life and also on execution of the project. Theensuing situation of insecurity was the major limiting factor on the project's field activities. Italso represented a severe constraint on private initiative.

Factors Generally Subject to the Borrower's Control

33. Assistance of other Government services to the Livestock Ministry in drafting andenacting regulations, legal recognition of the GIP, loan management and the awarding ofcontracts was not always easily obtained. This led to delays or shortcomings not alwaysattributable only to prcject management. The Government's counterpart contribution to projectfinancing however was regular.

34. The various reorganizations of the Livestock Ministry that took place after project start-up had varying impacts on the project's internal organization and its implementation. Therewere some confusion developed between the project's operational structure and the organigramof the Ministry. The changes in responsible officials hampered smooth execution of the project.

Factors Generally Siubject to Implementing Agency's Control

35. The project management unit, which suffered from inadequate human and organizationalresources, did not give sufficient operational autonomy to the project components. There wererecurrent delays regarding procurement in the Administration. These delays, however, did nothave a major impact on field activities (animal health, pastoral group formation, etc.), whichwere implemented in the earlier phases of the project.

36. The staff dealing with planning and policy lacked experience and training in theperformance of certain tasks in new or specialist fields such as herder organization, rangelandresources management, privatization, research and development, extension, projectmonitoring/evaluation, and the conduct of surveys and studies. Insufficient advantage was takenof the external training possibilities offered by the project.

37. Problems noted in the technical assistance area included difficulty on the part of certainstaff in fitting into the agencies to which they had been assigned; utilization of this staff in wayscontrary to the assignment terms of reference; insufficiently precise definition of the position ofproject coordinator; inadequate number of medium- or long-term technical assistants in the areasof project coordination and management, privatization, reorganization of field services, researchand development and pastoral development, and failure to take proper advantage of the projectresources for the recruitment of short-term consultants.

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E. PROJECT SUSTAINABILITY

38. Chad has adopted a basic legislative framework, in the livestock area, conducive todevelopment of the private sector. While the "Health Mandate" operation represents a genuinesuccess, it remains fragile. To ensure its sustainability, continued Government support for theliberalization effort is necessary to provide the necessary regulatory framework, monitoring ofcredit operations, and training for the private agents. Several project components can beexpected to be sustained after project completion. They are: (i) the animal health deliverysystem (pharmaceutical imports, input distribution and field operation), whiclh is now in largepart entrusted to private operators, who have shown that these operations are profitable; and (ii)the livestock export trade, which has now entered new markets. For sustainability, furtherstrengthening is required for the extension and natural resource management components, whichshould be forthcoming since they are now integrated into the National Ag:ricultural ServiceProject (PSAP).

39. The Ministry of Livestock now possesses a rehabilitated and properly equippedinfrastructure, a better trained staff, and a system of cost recovery with receipts deposited into aLivestock Fund. The use made of this Fund will be decisive for the durability of the activitiesinitiated by the project.

40. The sustainability of the activities of private veterinarians is limited since the mandatedvaccinations, which are by their nature temporary and today account for nearly 95 percent oftheir turnover. The mandate of these private veterinarians can easily be extended to otheractivities (consultation, training, extension and investigation). They could be contracted to workin the case of certain projects such as, for example, those financed by FAC (the ASETO Project)and, in the near future, the European Union. The PSAP should give consideration to a similarapproach. Government role in supportting these private-sector commercial activities, should bein the following areas: tax relief, combating of fraud, control of compliance with regulations,access to credit, obtaining of visas, air freight agreements, and improvement of abattoir services.

41. The project contributed to the establishment of a pastoral organization policy throughtraining, extension and support services to GIP, a necessary precondition for the formulation of amore comprehensive rangeland management policy. The pragmatic approach adopted by theproject facilitated better preparation of the herders for the possible implementation, in the nearfuture, of rangeland upgrading plans recommended during the Bank's supervision missions. Thestrategy adopted by the PSAP with respect to support for pastoral livestock will be decisive tothe sustainability of the activities initiated by the project (especially support for the GIP and thePPP).

F. BANK PERFORMANCE

42. With respect to project identification and appraisal, the Bank showed goodunderstanding of Chad's livestock development potential and constraints and the priority-rankingof the activities to be carried out. Bank performance in preparation and appraisal was thereforesatisfactory. It somewhat overestimated, however, Chad's capacity to implement the project,especially in new fields such as privatization and rangeland management. The risk thisrepresented was all the greater in that at start-up the project lacked a sound reference base on the

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sector as well as proven skills on the part of the staff that were expected to implement it. Thetechnical assistance furnished and the training program implemented was not enough to fill thesegaps.

43. Though the project was overall fairly well supervised, the frequency of missions wasinsufficient between 1991 and 1995. However, during these first years, missions included thenecessary expertise in terms of numbers and skills. During the latter years of the project,missions were only limited to the project officer, an agricultural economist. As a result, themissions, while particularly rigorous and effective in monitoring the policy component, showedweaknesses in monitoring certain aspects of livestock for which local expertise is lacking,especially the areas of adaptive research and rangeland and natural resources managementpolicies. The project implementation problems were in general correctly identified and assessed.The recommendations in this matter were to the point and in some cases innovative (healthmandate, line of credit., CEPREVU, IES).

44. Cooperation with the other cofinancing entities did not pose any particular problem otherthan the lack of coordination in pastoral water supply. Cohesion among donors proved to beparticularly strong, and necessary, in monitoring the liberalization and privatization reforms.The Mid-Term Review mission served to refocus the project activities on the objectives asoriginally identified, to revitalize priority-rated operations and to speed up the execution ofessential project activities whose start-up had been delayed.

G. BORROWER PERFORMANCE

45. The Borrower showed genuine commitment to instituting the reforms pertaining tostabilization of staff in the Ministry of Livestock, liberalization of the import and distribution ofveterinary drugs and the export of livestock and meat, and privatization of veterinary medicine.Borrower has satisfactorily participated to project preparation all the way throughimplementation This represented a notable performance on the part of the Borrower in light ofChad's political and economic situation at project start-up.

46. This political will was less resolute in the case of implementation of the accompanyingmeasures necessary to support these reforms. The pastoral code was never adopted and privateexercise of the veterinary profession was hindered, in the field, by the opposition of certain staffto the privatization process. There were also weaknesses in the Borrower's capacity to plan andto coordinate, in the monitoring and evaluation of activities, and in the daily management of theproject, which was excessively centralized.

H. PROJECT IMPACT ASSESSMENT

47. The initial appraisal report had stressed two major points: (i) the impact of the projecton national production as a result of the activities and reforms to be implemented under it; and(ii) its impact on government receipts and expenditures consequent on the better balance betweensalary and recurrent costs:

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(a) Project justification could not be determined by calculating the rate of economicreturn. The approach taken in the ICR was to analyze several supplementaryproduction objectives. An attempt to determine incremental production based ondata collected by the mission did not succeed. In too many cases data werelacking, insufficiently precise or even contradictory from one source to another.

(b) The impact on government receipts and expenditures, easier to assess, waspositive. At the end of the project, salary expenditure was in better balance withthe Ministry of Livestock's operating budget; receipts paid into the LivestockFund had reached a cumulative total of nearly CFAF 1 billion, and export taxeshad yielded the Finance Ministry significant revenue (CFAF933 million incustoms duties in 1994).

48. Assessment of project accomplishments, by component. This assessment, difficult to putin figures, indicates that: (a) the general privatization process, herder organization, internaltraining and the pilot pastoral program can be rated as very positive; (b) the extension activities,now absorbed into the PSAP, can be described as promising; (c) the impact of the measures tostrengthen the Central Services of the Ministry (in terms of administratilve and financialmanagement capacity, sectoral analysis and livestock development policy, institution of a systemof monitoring/evaluation of livestock activities) can be rated as minor or unclear; and(d) regarding pastoral development, a major accomplishment of the project was the setting up ofthe GIP, even though the objective was not achieved in the case of participatory management ofrangeland resources. While this participatory management had been rightly perceived asessential, its implementation was difficult owing to its novel nature and to lowv local capacity.Since then, experience with participatory development activities has accumulated within theregion, and major progress has been accomplished in the area of pastoral ecology of the arid andsemi-arid zones.

49. The general impact of the project can be rated as satisfactory for the following reasons:

(a) With respect to policy, Chad now possesses a legislative and regulatory frameworkgoverning the veterinary profession, in both the public and private sectors. Structureshave been put in place to ensure consultation and although these committees continue tobe largely dominated by public agencies, they are instruments available to herders whohave to make them operational.

(b) In terms of physical assets, field services infrastructure has been renovated andequipped, throughout the country, with cold storage facilities and diagnostic materials.The construction of the headquarters at N'Djamena has made it possible to bring thecentral management and operational agencies under one roof. Concerning the GIP, 78wells have been built for them (with 42 more to come soon) and agreements werereached with the beneficiaries to share the costs in the maintenance of the wells and intaking environmental protection measures.

(c) On the technical side, the project accomplished major tasks with respect to setting up ofthe herder groups and in-country training of field agents. It also contributed tointroduction of the PSAP in the livestock sector, particularly in regard to supervisoryservices to the GIP (training of auxiliaries) and the improved extension system (IES).Through the "health mandate" operation the project resulted in improved rinderpest

- 1i -

vaccination coverage preventing the country from dramatic losses caused by outbreaksin the region. It has also led to the setting up of a pilot operation (PPP) cited as a bestpractice for participatory rangeland resources management. This will provide a basis forthe preparation of a more comprehensive, nationwide program.

(d) At the institutional level, the project highlighted the weakness of the Ministry ofLivestock in terms of planning, and monitoring/evaluation of its operations. It alsodemonstrated the ability of the herder groups to organize themselves and to manage theirresources.

50. On social and environmental aspects and private-sector development the project: helpedupgrade the social conditions of the farmer-herders through the setting up of Pastoral InterestGroups (GIP) and the related organizational, training, extension and investment activities. It alsofostered increased attention to environmental considerations, by promoting the setting up of: (i)a data base for PEP and watering points; (ii) an information network to monitor rangelands(ROPANAT); (iii) a pilot pastoral program (PPP), with the resulting regeneration of rangelandresources; (iv) the execution of certain improvement activities (firebreaks, nurseries); and (v)greater awareness among agents and herders of environmental hazards (woodcutting,overgrazing, etc.) and of the potential for rangeland protection (windbreaks) and regeneration(PPP, pastoral resources management). The project also promoted development of the privatesector, in two ways: (i) through the privatization of veterinary medicine; this process is nowsolidly underway and is helping to upgrade the herders' living conditions through improvedavailability--and quality--of the care and advice provided; and (ii) through the herders' capacityto organize themselves and take over responsibility for public-sector activities.

I. FUTURE OPERATIONS

51 A number of activities are being continued under the PSAP, such as consolidation of thework started by the G][P, and continuation of the auxiliary and extension agent refresher trainingprograms, particularly in aspects of pastoral resources management, which have so far beenlimited to a few test zones as part of a pilot operation (PPP). Activities that need follow-up andGovernment continued support include the liberalization reforms, in the areas of (i) developmentof private veterinary medicine, observance of regulations, support for and control of "healthmandate" activities, monitoring of credit operations, and further training of private agents;(ii) livestock product marketing; and (iii) judicious expansion of the veterinary drug import anddistribution companies; These would be followed up under the PSAP.

52. In light of the current situation and the experience gained in implementing the project, anumber of factors would need to be taken into account in future livestock operations: (a) theMinistry's capacity to implement, monitor and evaluate sectoral development operations;(b) clarification of the respective roles of the public and private sectors, and definition of theprinciples governing collaboration between them for development of the livestock sector.In orderto start any future project it would be important to have: It would also be essential to have animproved sectoral analysis, with updating of the sectoral data base (herd numbers, productivityof the main production systems, marketing circuits, national production) and better factoring oftranshumant herding and drought into the planning activity of the Livestock Ministry;

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53. Rangeland Resources Management Program. Such a program could be envisagedprovided the following prior measures were taken: (i) analysis of the impact of the previousprojects; (ii) consolidation of the liberalization reforms and the herder organization measures;and (iii) execution of studies and surveys to firm up the main lines of sectoral policy. Thenatural resources management (NRM) dimension could be taken into account in a possible PSAPsupport program. This also assumes the possession, at the end of the PPP, of adequate data to beable to formulate an operational strategy for rangeland resources management.

J. MAJOR LESSONS LEARNED

54. The project demonstrated that, despite a difficult political, economic and social situation,installing an appropriate institutional framework helped generate private initiatives. In thisconnection, the privatization process as carried out in Chad can serve as an example for othercountries with similar features. The main lessons are that:

(a) some degree of decentralization, through organization of the herders, was possible in ahighly centralized administrative setting;

(b) integrating the project into the Ministry's structural organization proved to be a soundstrategy and hence there is the need to tailor the design of projects of this kind to localcapacities;

(c) frequent changes in the project agency, lack of continuity in key posts, poor matching ofexternal training to the positions to be filled, and interference by the Ministry in projectmanagement, can hamper project implementation;

(d) there is a need to design and start up the execution and impact of monitoring activitiesvery early in the project cycle and to ensure that the beneficiaries are capable of carryingthem out;

(e) donor coordination and unity are essential and decisive to continued execution ofreforms initiated;

(f) Chad's potential for on-the-hoof exports became clearly apparent in light of thecumulative impact of liberalization of marketing circuits, simplification of exportprocedures and reduction in export taxes, and devaluation of the CFA franc, showingthat given the correct environment private traders can demonstrate dynamism andprofessionalism.

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Part II: Statistical Tables

Table 1: Summary of Assessments

A. Achievement of Obiectives Substantial Partial Neeidble Not applicableFT) (777 (V

Macro Policies flSector Policies Ea O IIIFinancial Objectives O II El 0

Institutional Development O EE

Physical Objectives E] E ElPoverty Reduction fl El El

Gender Issues Dl E El

Other Social Objectives E 1 E E

Environmental Objectives 0 El El

Public Sector Management EPrivate Sector Development El El E

Other (specify) El El El

B. Proiect Sustainability Likelv Unlikely Uncertain

___j (1/) (/) (a/) I

____ El El

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Table 1: Summary of Assessments (cont'd)

Hi2hlvC. Bank Performance satisfactory Satisfactory Deficient

(/) (/) (/) I

Identification I La

Preparation Assistance

Appraisal O E

Supervision El El

HighlyD. Borrower Performance satisfactorv Satisfactory Deficient

(V) (/) (/)

Preparation L E

Implementation O

Covenant Compliance OI

Operation (if applicable) O L [J

Highlv HiehlvE. Assessment of Outcome satisfactory Satisfactory Unsatisfactorv unsatisfactory

(LI (L) LI) (/) I

z~~~~ m aEO

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7able 2: Related Bank Loans/Credits

LoanCreditTitle Purpose Year of Approval Status

Preceding Operations

1. Cr. 309-CD Livestock Sec.Dev. 1972 Completed

2. Cr. 783-CD Livestock Sec.Dev.II 1978 Canceled

3. Cr. 1775-CD Agricultural 1987 CompletedRehabilitation

Following operations

1. Cr. 26850-CD Agricultural and Pastoral 1995 OngoingServices

Table 3: Project Timetable

Steps in Project Cycle Date Planned Date Actual/Latest Estimate

Identification June 1986 June 1986

Preparation October 1986 November 1986

Appraisal January 1987 July 1987

Negotiations July 1987 January 12-15, 1988

Letter of Development Policy (ilf applicable) - January 14, 1988

Board Presentation December 1987 May 31, 1988

Signing January 1988 July 5, 1988

Effectiveness July 1988 January 27, 1989

Midterm review (if applicable) April-May 1993

Project Completion June 30, 1995 June 30, 1996

Loan Closing December31, 1995 December31, 19

- 16 -

Table 4: Loan/Credit Disbursements -- Cumulative Estimated and Actual(US$ million)

Year Appraisal Estimate Actual Disbursements Cumulative Actual as % ofCumulative Cumulative Cumulative Estimate

FY 88 1.7 0.0 0.0FY 89 4.3 1.9 44.18FY 90 7.6 4.0 52.63FY 91 11.5 6.3 54.78FY 92 14.7 9.0 61.22FY 93 17.1 11.0 64.70FY 94 18.6 12.2 65.59FY 95 18.6 13.7 73.65FY 96 18.6 14.3 76.88FY 97 18.6 14.6 78.49

Date offinal disbursement: June 10, 1997. Undisbursed balance: SRD 2.8 million (US$4.0 million)

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Table 5: Key Indicators for Project Implementatfon

Indicators Estlmated Actual

Key Indicators in DCA: Schedule 4

POLICY COMPONENT

Animal Health Services- Liberalization of distribution of veterinary drugs December 1990 April 1988- Liberalizationof imports/distributionof veterinary drugs December 1990 December 1990- Annual sales of veterinary drugs (CFAF) 278 283 (in 1995)- Private veterinarians established 40 27 (in 1996)- Average number of animals ivaccinatedby each private veterinarian 5,000 33,000

(Rinderpest)

Export of Livestock Products- Liberalizationof livestock products exports na April 1988- Establishment of a line of credit to fund meat exports na January 1995- Annual additional meat exports funded by the line of credit (tons) 1,000 na

DEVELOPMENT COMPONENT

PastoralAssociation (PA) ZDevelopment- Number of PA created 450 265- Number of auxiliaries trained 300 479- Number of wells rehabilitated 100 78a/- Management of pilot pastoral perimeters na 3

Extension Services- Number of Districts covered 6 2- Number of contact groups (CG) na 1,110- Number of extension themes na 7- Numbers of pastoralists in CG na 24,000

Adoption Rates Of Extension Themes- Animal health na 20-85%

- Animal production na 12-45%

a' plus 42 under execution

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Table 6: Key Indicators for Project Operation

No key indicators were established at appraisal or subsequently

Table 7: Studies Included in Project

No specific study was planned in the appraisal report

Table 8A: Project Costs

Appraisal Estimate (US$M) Actual/LatestEsdmate(US$M)

Item Local 1 Foreign Total Local Foreign TotalCosts I Costs Costs Costs

Civil Works 5.70 - 5.70 5.79 8.30 14.09

Vehicle and Equipment 0.50 8.20 8.70 2.85 7.10 9.95

Technical Assistance - 5.40 5.40 0.87 5.94 6.81

Training and Studies - 2.70 2.70 1.23 0.25 1.48

Drugs - 3.90 3.90 1.54 - 1.54

Operating Costs - 8.10 8.10 9.07 - 9.07

Subloans - 2.00 2.00 - 1.64 1.64

PPF - 0.70 0.70 0.08 - -

Total Project Cost 6.20 31.00 37.20 21.43 23.30 44.73

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Table 8B: Project Financing

Appraisal Estimate (US$M) Actual/LatestEstimate(US$ ..

Source Local | Foreign | Total Local | Foreign Total

Costs Costs Costs Costs

IDA 6.50 12.10 18.60 11.15 3.35 14.50

AfBD (ADF) 2.80 8.80 11.60 9.02 17.02 26.04a/

FAC 0.20 1.10 1.30 - 1.33 1.33w

DGIS 10.20 1.60 1.80 0.20 1.60 1.80

Domestic contribution 2.40 1.50 3.90 1.06 - 1.06

(a) MAGAVET 0.50 1.00 1.50 nd nd nd

(b) Government 1.00 - 1.00 nd nd nd

(c) Producers 0.90 0.50 1.40 nd nd nd

TOTAL 12.10 25.10 37.20 21.43 23.30 44.73

Table 9: Economic Costs and Benefits

No economic rate of return (ERR) was calculated in the SAR or at completion because of the paucity of data on thesector and the institution building nature of the product.

a/ estimates

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Table 10: Status of Legal Covenants

Credit Covenant Present Original Description of CommentsAgreemt type status fulfillment covenant

Section date

3.06 (a) 2 C Open/maintaina bank account in the name of MEHP None(Livestock Funds) and deposit therin, the revenuesfrom MEHP's charges for livestock related services

30.3 (b) 4 C Use the funds in said account to cover MEHP's non Nonesalary expenditures

3.04 C 07/01/88 Magavet to rationalize its distributionsystem and sell Magavet was privatized in 1994veterinary products at competitive prices taking intoaccount their real costs

3.05 (a) 6 CP Prepare pastoral land use policy, including transfer of Due to the complexities of issuesuse of water points and range lands to pastoral involved, implementationhas beenassociations. carried out carefully through a

pilot operation in selected villagesusing a Holistic ResourceManagement model

3.05 (b) 6 CD 12/01/90 Take necessary actions to apply said policy None

3.06 (a) 12 C Permit MEHP's livestock agents to provide animal Nonehealth care privately including the possibility to take upto 2 years of leave without pay

3 .06 (b) 12 C Maintain during the first 5 years of the project, the Nonenumber of MEPH's staff at the level of January 1, 1991

3.07 (a) 12 CD 01/01/91 Set eligibility criteria for the selection of companies Nonewhich will import veterinary drugs

3.07 (b) 11 CD 01/01/91 Abolish Magavet's monopoly on imports of veterinary Nonedrugs

3.08 (a) 12 C Establish a pastoral organizationunit within the MEHP Noneto provide technical/organizationalassistance in theestablishmentof the pastoral organizations

3.08 (b) 12 NC Employ a livestock specialist to head said unit Head of the unit was not atechnical specialist

3.09 5 C Recruitment of a Project Coordinator to assist the NoneDirector General of the MEHP

3.10 (a) 3 CD Establish a committee chaired by the Director General Noneof the MEHP to supervise the credit fund provided bythe project

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Table 10: Status of Legal Covenants (cont'd)

Secion Covenant Present Original Description of Commentstype status fulfillt ent covenant

date

3.10 (b) 3 CD Relend the proceeds of the credit fund to a commercial A NGO was appointed to managebank under a subsidiary loan agreement to be entered the line of credit.into between the Borrower and said commercialbank

4.01 (a) 1 C Borrower to maintain or cause to be maintained records Noneand accounts adequate to reflect in accordance withsound accounting practices the operations, resources andexpenditures in respect of the project

4.01 (b) 1 CD Annuals audits of project's records and accounts, by Audit 1996 was not received onindependent auditors, transmission of audits reports no June 30, 1997later than six months after the end of each FY

4.02 2 CD Adjust annually the charges applicable to non- Nonecompulsory vaccinations and clinical interventionsmadeby the MEHP, to meet the full costs of theseinterventions

4.03 11 C Maintain Government's budgetary allocation to NoneMEHP's operating expenditure at least at the level ofFCFA 40 million per year

4.04 2 CD 05/01/90 Establish a mechanism for the recovery of recurrent cost Cost recovery was introduced inof compulsory vaccinations 94 at CFAF 25 per vaccine, and

was increased by CFAF 25 eachfollowing year

Covenant Types:

1. = Accounts/audits 8. = Indigenous people2. = Financial performance/revenue generation from 9. = Monitoring, review, and reporting

beneficiaries 10. = Project implementation not covered by categories 1-93. = Flow and utilization of project funds 11. = Sectoral or cross-sectoral budgetary or other4. = Counterpart fuinding resource allocation5. = Management aspects of the prciject or executing 12. = Sectoral or cross-sectoral policy/

agency regulatory/institutional action6. = Environmental covenants 13. = Other7. = Involuntary resettlement

Present Status:

C = covenant complied withCD = complied with after delayCP = complied with partiallyNC = not complied withNYD = not yet due

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Table 11: Compliance with Operational Manual Statements

Statement Number and Title Describe and comment on lack of compliance

Not applicable.

Table 12: Bank Resources - Staff Inputs

Stage of ActualProject Cycle

Weeks US$('000)

Preparation to Appraisal 26.80 52.30

Appraisal 35.50 78.80

Negotiations through Board Approval 11.80 29.20

Supervision 148.30 439.60

Completion 5.00 1.90

TOTAL 227.40 601.90

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Table 13: Bank Resources -- Missions

Stage of Project Month/ Number Days in Specialized Implemen- Develop- Types ofCycle Year of Field Staff Skills tation ment Problems

Persons Represented Status Objectives

Through Appraisal 87 nd nd

Appraisal through 87/88 nd ndBoard Approval .

Supervision 1 11/88 2 8 L 2 2 C-F-P

Supervision2 5/89 2 7 L 2 2 M

Supervision 3 12/89 4 10 E-L 2 2 M-P

Supervision4 3/90 2 2 E

SupervisionS 6/90 3 11 E-L 3 3

Supervision6 11/90 3 5 E-L 3 3 Po

Supervision7 4/91 2 12 E-L 2 2 T-1

Supervision8 2/92 3 15 E-L-Ex 2 2 M-T-2

Supervision 9 10/92 2 7 E-Ex 2 2 T-4

Mid Term Review 5/93 4 19 E-Ex-L-F 3 2 M-T-1-3-4

Supervision 10 4/94 2 6 E-Ex 2 2 M-F-3

Supervision 11 5/95 2 15 E-Ex S S M4

Supervision 12 12/95 2 9 E-L M-4-T-1

Supervision 13 4/96 2 6 E-Ex S S

Supervision 14 12/96 2 6 E-Ex

Completion/ICR 3/97 1 21 L S S

Key to Special Staff Skills:E=Economist; Ex=Extension Specialist; F=Financial Analyst; L=Livestock Specialist;

Key to Types of Problems:LC=Legal Covenant; M=Management; P=Procurement; Po=Political; F=Funding; I=Institutional;T=Technical, I=Pastoral Development; 2=Extension; 3=Research; 4=Privatization

- 24 -

APPENDIX B

REPUBLIC OF CHAD

NATIONAL LIVESTOCK PROJECT(CR. 1912-CD)

COMMENTS ON THE IMPLEMENTATION COMPLETIONREPORT

- 25 -

REPUBLIC OF CHAD

MINISTRY OF LIVESTOCK

OFFICE OF THE DIRECTOR GENERAL

Ref: ME/DG/NLP/97

A. COMMENTS ON THE IMPLEMENTATION COMPLETION REPORT

I. General Comments

The report repeate,dly highlights the positive aspects of the setting up of the herdergroups:

- capacity of the GIPs to organize themselves, to manage their resources and totake over activities for which the public sector was previously responsible;

- strengthening of the health coverage of the herd;

- increased demand for veterinary drugs;

- developmenit of the private sector;

- upgrading of social conditions.

Moreover, the setting up of herder groups using a "pragmatic approach" is deemed to beone of the successes of the NLP, benefiting both the herders and the private sector and fulfillinga "necessary precondition for the formulation of a more comprehensive rangeland managementpolicy" (page 28, para. 88)

It is pointed out, however, and this cannot be emphasized strongly enough, setting up theherder groups, a major benefit of the NLP (page 34, para. 111 ), was feasible only thanks to closesupervision by mean of a supervisory assistance network able to provide the herders withawareness-arousing, training and outreach and leadership services. It would be premature toconclude that the herder organization phase has been completed. It is to be feared that the PSAP,with its essentially "mass extension" approach, may ignore the producers' organizationsdimension, a dimension of fundamental importance in the process of development of the privatesector, of herd health coverage, of natural resources management and of representation on theconsultative entities.

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It is accordingly important that due account be taken of the recommendation made byMr. Benor following a visit to the GIPs. He strongly advised that extension should be based onthe GIPs.

Regarding a future natural resources management project, great prudence needs to beexercised with respect to the course of execution and results of the pastoral pilot perimeters.

The report does not appear (except through the PPPs) to accord the pastoral waterworksprogram a decisive role in terms of participatory natural resources management. It would be apity to underestimate the capacity of groups that are beneficiaries of a well to revive oldagreements for water access and rangeland management.

2. Specific Comments

* Page 3, para. 10, second sentence. The project adopts a broad approach to thestart-up of rangeland management within the GIPs already set up (creation of thewells is not awaited before initiating establishment of the GIPs).

* Page 6, para. 29. It is not a matter of optimum utilization of technical assistance.The point is rather that the technical assistance recruited by the NLP did notpossess the necessary profile (for example, the monitoring/evaluation systemwas not installed by the technical assistant recruited for that purpose, theextension system was not installed by the Coordinator, and so on).

Page 7, para. 33. For its part, the PSAP, as currently oriented, does not offer anyguarantee.

Page 7, para. 36. Attention is drawn to a lack of coordination in monitoringproject execution. Only IDA, through its regular supervision missions,monitored the project properly in all its phases, defining guidelines andstrategies, which sometimes conflict with each other from one supervisionmission to another.

Page 14, para. 18. The funds deriving from compulsory vaccinations are notdeposited into the Livestock Fund but into another account which operates underthe dual signature of the Minister of Livestock and the European CommunitiesDelegate.

Page 15, para. 25. The available financing of 500 million for continuation of theoperation derives from PARC II (300 million) and the BDT (200 million). IDAis not participating.

Page 16, para. 29. Until 1994 the customs levy was 24.64 percent instead of14.64 percent. It is necessary to distinguish between taxes and fees. Beginningwith the Finance Act of May 1994, the Fund receives only fees.

Page 18, para. 35. Same comments as for page 3, para. 10.

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B. STUDIES PRODUCED BY THE PROJECT (subject of Annex 7)

It should be noted that the project did not produce any studies during the entireimplementation period. Short-term consultant missions did, however, take place in the followingfields:

- Sociology: 2 support missions (COP, DOP and LRVZ);

- Instructor training: COP support mission;

- Operating accounts: SAPROVET support mission;

- Agrostology: LTVZ support mission;

- Monitoring/evaluation: DESP support mission;

- Data processing: NLP management unit support mission;

- Preparation of plant-life training maps: PPP support mission;

- Performance evaluation of veterinary pharmacies: AOP support mission;

- Training for veterinary agents who have set up in private practice: AOP supportmission;

- Simplification of accounting procedures and management: NLP managementunit support mission;

- Evaluationi of the activities of health task assignees: AOP support mission.

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Republic of Chad

FARCHA VETERINARY AND ANIMAL HUSBANDRYRESEARCH LABORATORY

P.O. Box 43, N'Djam6na

Ref.: 14.454/97 - N'Djamina, May 6, 1997

NATIONAL LIVESTOCK PROJECT(CR 1912-CD)

IMPLEMENTATION COMPLETION REPORT

NOTE ON THE SUPPORTIVE RESEARCH COMPONENT

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I. DETERMINATION OF THE BASIC PARAMETERS OF THE MAJORPRODUCTION SYSTEMS

Chad possesses three main climatic zones, each with its specific livestock system:nomadic, transhumant and sedentary. Although the project is national in scope, this institutiondid not possess the necessary human resources to develop research activities in the Saharan, theSahelian and the Sudanian zones. It was decided in favor of the Sahelian Zone, as the livestockraising zone par excellence in Chad. The research done on the dynamics of cattle and sheep/goatherds did indeed lead to the production of technical reference material on traditional herding.These reports, followed by proposals for the design of development activities, were sent to theOffice of the National Directorate for the project. Some findings were transmitted to theCEPREVU, which existed in name only and was not able to recover the results, including somein extension (vaccination, treatment, feed, accommodation), by the Laboratory (validation).

We agree with the conclusions of the mission, which notes that the results producedcontinue to be of very local utility for development in view of the other, sometimes sharplycontrasting, situations in 'Chad. The research activities focused exclusively on the SahelianZone. The results of this work continue to be valid for that zone.

II. ECOLOGICAL AND RANGELAND RESEARCH

The work on pastoral ecology and rangeland monitoring added substantially to ourknowledge of the problems associated with rangelands utilization, maintenance of animalproduction and research on methods of integrating the different forms of agricultural production(integration of farming and stockraising).

It is true the results of this research are for the most part of the "expertise" type; theyyield a return only in the medium and long term.

It nevertheless has to be recognized that these ecological and rangeland programs haveled to the production of at data base and of skills that can be turned to account in a futurelivestock development program.

III. PRE-EXTENSION UNIT (CEPREVU)

Application of the results of this research by DOP and CEPREVU is indeed almostnonexistent. This is due first to the lack of linkage between research and extension and second tothe newness, nature and limited resources of CEPREVU, which has appeared like a nebulahovering between the Laboratory, the DOP and the NLP.

The CEPREVU was transferred in its entirety to the PSAP upon start-up in 1995.

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IV. CONCLUSION

To conclude, two questions arise:

(a) Is it possible to set up a national development program based on monitoringlimited to sedentary herds in Chad, where herding is 70 percent transhumant?

(b) Should the Laboratory's purpose be changed, to concern itself with extension (tothe detriment of the DOP)?

The report ought to be more realistic with respect to these questions.

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Report No.: 16833Type: ICR