Document of The World Bank FOR OFFICIAL USE ONLY CZ42 ZILiL 4z, Report No..8392-BD STAFF APPRAISAL REPORT BANGLADESH THIRD FISHERIES PROJECT MAY 2, 1990 Agriculture Operations Division Country Department I Asia Region This document has a resricted distdbdion and may be used by re_iemb ony In the pedfome of their offiefl dulies. Its contents may not othewise be dieosed w Wodd Ban Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
Document of
The World Bank
FOR OFFICIAL USE ONLY
CZ42 ZILiL 4z,
Report No..8392-BD
STAFF APPRAISAL REPORT
BANGLADESH
THIRD FISHERIES PROJECT
MAY 2, 1990
Agriculture Operations Division
Country Department IAsia Region
This document has a resricted distdbdion and may be used by re_iemb ony In the pedfome oftheir offiefl dulies. Its contents may not othewise be dieosed w Wodd Ban
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CURRENCY EQUIVALENTS
Currency Unit - Taka (Tk)US $ 1 = Tk 32.27 (March 1990)Tk 1 = US$ 0.03
GOVERNMENT OF BANGLADESH FISCAL YEAR
July 1 - June 30
WEIGHTS AND MEASURES
km - kilometerm u metercm = centimeterg = gramkg - kilogramton - metric tonha - hectare
sq km = square kilometer
ABBREVIATIONS AND ACRONYMS USED
ADB Asian Development BankADP Annual Development Programme of GOBBFDC Bangladesh Fisheries Development CorporationBWDB Bangladesh Water Development BoardDFO District Fisheries OfficerDOF Departtent of FisheriesERD External Resources DivisionERR Economic Rate of ReturnFRI Fisheries Research InstituteFRR Financial Rate of ReturnFY Financial YearGOB Government of BangladeshICB International Competitive BiddingLCB Local Competitive BiddingMF Ministry of FinanceMFL Ministry of Fisheries and LivestockMIWDFC Ministry of Irrigation, Water Development and Flood ControlML Ministry of LandMP Ministry of PlanningMTA Technical Assistance for DOF ManagementNFMP New Fisheries Management PolicyOCC Opportunity Cost of CapitalODA Overseas Development Administration (U.K)PD Project DirectorPLANCOM Planning CommissionPP Project Proformapy Project YearSCP Shrimp Culture ProjectSTA Technical Assistance for Technical and Social SupportTA Technical AssistanceTFP Third Fisheries ProjectUNDP United Nations Development ProgrammeWOP Without Project SituationWP With Project Situation
FOR OMCIL USE ONLY
GLOSSARY
Beel Permanent water body in floodplain, flooding with river andrainwater annually.
Baor Lake formed by an isolated meander of a river.Carp. Bighead Zooplankton feeding carp, Aristichthys nobilis.Carp, Common Bottom feeding carp, Cyprinus carpio.Carp, Silver Phytoplankton feeding carp, Hypophthalmichthys molitrix.Catla Indigenous carp, Catla catla, surface/mid-water feeding.Catfish Indigenous, predatory fish eg. Aor (mystus aor), Magur
(Clarias batrachus).Floodplain Annually flooded, low-lying area associated with rivers.Fingerlings Juvenile fish from 2 - 15 cm long.Hatchery Fish seed farm for spawning and hatching.Hatchlings Larval fish up to about 4 days old.Hilsa Indigenous, migrating fish, Hilsa ilisha, constituting the
bulk of river/estuarine catch of Bangladesh.Jalmahal Traditionally leased fishing right in Bangladesh.Mrigal Indigenous carp, Cirrhinus mrigala, bottom feeding.Nursery Pond(s) where hatchlings are grown to fingerlings.Polders Embanked low-lying land.Post Larvae Young shrimp stage used for stocking in ponds.Primary prod. Phytoplankton growth; minute, aquatic,
single celled green plants.Rohu indigenous carp, Labeo rohita, bottom/ mid-water feeder.Shrimp, coastal Marine shrimp from coastal and brackish-waters; mainly Black
Tiger Shrimp, Penaeus monodon.Shrimp, fresh-w. Macrobrachium rosenbergii.Snakehead Indigenous, predatory, swamp-dwelling fish, Shol (Channa sp.)Upazila An administrative sub-district with an elected council and
chairman with large degree of autonomy; there are 464 inBangladesh.
IThis document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
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BANGLADESHTHIRD FISHERIES PROJECT
Credit and Project Summary
Borrower The People's Republic of Bangladesh
Amount SDR 34.6 million (US$ 44.6 million equivalent)
Terms Standard IDA terms with a maturity of 40 years
Cofinanciers ODA US$ 4.3 million equivalent; UNDP US$ 4.2 million
Proiect Description The project is designed to support a sectoral developmentprocess aiming at: (a) increasing incomes, particularlyof the poor, and fish production for domestic consumptionand export, (b) -upporting the fisheries developmentprogram in the west with emphasis on private sectorparticipation; (c) accelerating the expansion of fishproduction in floodplains; and (d) strengthening sectoralinstitutions. The project has six components: (a)Floodplain Fisheries, involving the stocking of 100,000ha of floodplains; (b) Coastal Shrimp Culture, makingimprovements in public infrastructure on 13,000 ha ofpoldered land already under shrimp culture; (c) OtherFisheries, including finance packages for a variety ofUpazila and District level programs; (d) InstitutionalSupport, financing facilities and incremental operationalcosts of DOF and BWDB related to the above investments;(e) Research related to the project; and (f) TechnicalAssistance for project management, financed by ODA, andfor technical and social support, financed by UNDP.
Benefits and Risks The project will produce 42,000 tons of fish and 1800tons of exportable shrimp per year, the latterrepresenting foreign exchange earnings of about Tk 268million (US$ 8.3 million). Additional benefits of theproject include: (a) the development of managerialroutines for exploiting major floodplains; (b) arevitalized fisheries administration; (c) improvements insectoral policies; (d) further mobilization of theprivate fish seed enterprises; (e) services to specialgroups; and (f) improvements in income distribution. TheERR of the project is estimated at 312. Directbeneficiaries would number 130,000 families. The projectredresses environmental problems created by populationpressure and infrastructure works.
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The main project risks are (i) delayed or inadequateimplementation which may arise from failures inmanagement, but provision of substantial technicalassistance and reliance on the private sector reducesthese risks; (ii) lower-than-planned fish retrieval ratesin flood plains as well as disease and seasonal gluttingof fish markets; however, analysis indicates that theseare not likely to reach critical levels; and (iii)reduced public stocking, if GOB would not be able tosustain financing and recover the cost of stocking;intensive monitoring and studies, which will enable theformulation of a viable cost recovery policy, andappropriate legal undertakings minimize that risk.
Project Costs Local Foreign Total-US$ million - - - - - -
a/ Total project cost net of duties and taxes (US$ 3.9 million) is US$ 58.8million.
t iii)BANGLADESH
THIRD FISHERIES PROJECTTable of Contents
Page No.I. INTRODUCTION 1
II. FISHERIES SECTOR
A. Role in Economy. 1B. Production. 2C. Demand and Markets. 2D. Resource Potential and Development Strategy. 3E. Institutions .8F. Regulations ........... .............................. 11G. Development Activities .............................. 12H. Bank Group Involvement .............................. 12
III. THE PROJECT
A. Project Objectives and Rationale ...... .............. 14B. Project Area ........................................ 14C. Project Design . ..................................... 15D. Project Components ............. ..................... 17E. Detailed Features .............. ..................... 17F. Project Cost ........................................ 23G. Financing ........................................... 24H. Procurement ......................................... 25I. Disbursement ........................................ 28
IV. ORGANIZATION AND MANAGEMENT
A. Implementing Agencies ............................... 29B. Phasing of Processing and Implementation .... ........ 32C. Monitoring and Evaluation ........ ................... 32
A. Benefits, Beneficiaries and Employment ..... ......... 35B. Cost Recovery ........................................ 36C. Economic justification ............................... 38D. Sensitivity and Risk Analysis ........................ 39E. Environmental Impact. ............................... 40F. Effects on Women in Fisheries .......... ............. 41
VII. AGREEMENTS AND RECOMMENDATION 41
This report is based on an appraisal mission carried out in October/ November1989 and consisting of Messrs W. Roider, G. Faruq (IDA), R. Coutts (ODA) andA.B. Chowdhury, L.R. Munshi, Y. Tang (Consultants). Mr. N. Islam (DOF) alsoparticipated in the mission.
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ANNEXES 1 Key Data: Fisheries Sector and Project Area2 Major GOB Fisheries Development Projects3 Selection Criteria for Activities to be Financed by IDA4 Terms of References FRI-Research5 Terms of Referencet Technical Assistance & Training for Project
Management (ODA)6 Terms of References Technical Assistance & Training for Technical
and Social Support (UNDP)7 Summary of Project Costs8 Disbursement Schedule9 Staffing of Coordination Cell at DOF-HQ and Divisional Offices10 Implementation Schedule
14 Key Monitoring IndicatorsSelected Documents available in the Project File
Draft Procurement Documents for FingerlingsFisheries Resources and Development StrategiesFinancial Version of Cost TablesEconomic Version of Cost TablesCostab Program ListingFinancial and Economic Analysis TablesCost Recovery TablesCostben Program Listing
Chart Project Organization (Department of Fisheries)
MAP 21887 Project Area and Major Fisheries Resources
BANGLADESH
THIRD FISHERIES PROJECT
I. INTRODUCTION
1.01 The Government of Bangladesh (GOB) has requested assistance fromIDA in financing the development of fisheries in Vestern Bangladesh. IDA hasfinanced fisheries development in Bangladesh since the mid-seventies andincreasingly has provided support for aquaculture. This project incorporateslessons learnt in previous projects. It focusses on stocking floodplains withcarp, developing infrastructure for coastal shrimp culture, advancing otherfisheries activities, improving fisheries institutions, promoting fisheriesresearch and providing technical assistance and training. The need for thisassistance was first identified in 1983 when IDA carried out a review of thefisheries sector in Bangladesh. The review stressed aquaculture techniques forthe country's extensive inland fisheries resources and institutionalstrengthening of the fisheries administration (para 2.57).
1.02 In 1988 GOB, IDA and the Asian Development Bank (ADB) agreed thatfuture IDA lending would focus in future on the western part of the country andADB lending on the eastern part. Preparation of this project was undertaken byFAO/CP, which issued an identification report in July 1988 and a preparationreport in March 1989.
II. THE FISHERIES SECTOR
A. Role in Economy
2.01 With a per capita income of US$ 170, Bangladesh remains one of thepoorest countries of the world and over 702 of its population of 110 millioncontinues to live in absolute poverty. The fisheries sector is importantbecause of its contribution to income, employment, nutrition and foreignexchange earnings. The sector generates 72 of agricultural GDP and 3.5Z oftotal GDP (Annex 1). Inland fisheries contribute most to fisheries production(732 in FY88) followed by artisanal coastal fisheries (262) and industrialmarine fisheries (12). Fisheries employs about 1.5 million full-timeprofessional fishermen or 5Z of the country's labour force. The number offull-time fishermen, who ate generally landless, has increased about 32 per yearover the past 15 years. In addition, there are about 11 million part-timefishermen and women, whose numbers peak in the flood season from June throughOctober.
2.02 Traditionally fish supplies most of the animal protein in theBengali diet, particularly among the low-income groups. As the population hasgrown faster than fish production (para 2.03). per capita consumption of fishhas decreased from 11.7 kg in FY72 to 7.5 kg in FY88. Nevertheless, fishremains an integral part of the traditional diet, providing 80Z of the animalprotein in the basic meal. Export of seafood generated close to US$ 140 millionin FY88, or 112 of the country's total export earnings. Seafood exports haveincreased by about 222 a year over the past ten years and seafood now ranksthird among all export comuodities behind jute (incl. jute products) andleather. Shrimp grown in brackish-water ponds represent about 852 of theseexports. Import of fish is negligible.
B. Production
2.03 Bangladesh is a major producer of inland fish. Fish production inBangladesh declined between FY72 and FY80, from 824,000 tons to 646,000 tons(Annex 1). The decline was due to over-exploitation of fish resources and theadverse effect of flood control structures on fish habitat. It occurredprimarily in rivers and floodplains which together provide over 50Z of all fishlandings and over 70Z of the inland fish catch. Production began to pick upagain during the 1980s as a result of increased fishing in coastal artisanalfisheries and increases in fish and shrimp grown in ponds, and is presentlyestimated at 826,000 tons. Most of the fish is consumed domestically, butexport of cultured shrimp has developed quickly.
2.04 Shrimp exports of about 15,000 tons accounts for about 2.5 Z ofthe world trade. In FY87, production was estimated to be 73,000 tons of liveweight, head-on shrimp, corresponding to about 40,000 tons of processed de-headed shrimp. Wild caught fresh-water shrimp amounted for 43,000 tons andbrackish-water or marine shrimp to 30,000 tons, with about half of the latterproduced in ponds.
C. Demand and Markets
2.05 Fresh-water and iced, rather than frozen, fish are preferred bylocal consumers. Carps, the focus of this project, command relatively goodprices at about Tk 30/kg landed and around Tk 601kg retail. The domestic demandis growing fast. Due to population growth the demand for fish will increase toabout 1.1 million tons by the year 2000 and to about 1.4 million tons by theyear 2010.
2.06 Most of the sea fish produced in Bangladesh is consumed in theeastern part of the country and in the large urban centers. Most inland fish isconsumed where it is produced and only about one fourth is transported overlonger distances to the northern region or the big centers of Dhaka, Chittagongand Khulna. Fish marketing is almost exclusively in the private sector; it iscompetitive and reasonably efficient. Fish is handled fresh most of the time.For the long-distance trade icing is provided from several thousand ice-makingplants. Problems in fish hygiene are to a large extent linked to lack ofproblem awareness among the population. Fish traders are organized andsometimes reject accept improved fish landing and Llarket facilities provided bythe public sector.
2.07 Shrimp will remain the major export item in the fisheries sectorfor the foreseeable future, although there is potential to increase export offish and other seafood. Shipments to Japan represented 34X of shrimp exports inPY88; the USA and Europe purchased almost all fresh-water shrimp and their sharein exports i£ 30Z each. The werld demand for shrimp is expected to increase atabout 3 - 4! a year, according to a recent World Bank study of the Asia shrimpindustry. World marine shrimp harvest is not expected to increase, but culturedshrimp is expected to increase at a rate of about 5-7Z per year through 1993.Parm level prices for shrimp in Bangladesh and elsewhere fell sharply in July1989 due to abnormally high stocks and cautious buying by Japanese importers.Although prices are likely to remain depressed, shrimp production in Bangladeshremains profitable because production costs are low and the country hascomparative advantage in producing shrimp (para 2.17).
D. Resource Potential and Development StrategyGeneral
2.08 The country and the project area have a vast potential forincreasing fish production, particularly inland fish production fromfloodplains, rivers, ponds, lakes and the estuaries. The extent to which thepotential is developed depends largely on the speed with which aquaculture 0technology will be applied to the country's inland floodplains. The highpotential of the country's inland fisheries resources and the floodplains inparticular, consists of the vast, nutrient-rich water areas, the tropicalclimate and the natural fertility of the land. The three major rivers, theJamuna, the Ganges and the Meghna, drain large volumes of nutrient-rich run-offwater from their catchment areas. The river water is further enriched withnutrients from soil and vegetation when spreading across the deltaic plain inthe flood season (June through October). Intensive agriculture aerates andfertilizes the soil of the plain and generates vegetation for fish to feed on.Nutrient-rich water, optimal temperature and intensive light radiation combineto result in a high level of biological productivity and primary productionconsisting of aquatic micro-organisms and phytoplankton on which fish can feed.
2.09 It is important that fish stocks are adapted to make best use ofthis primary production. A high pr.-portion of species that directly convert itinto fish meat is preferred over predator fish, because with each step in thefood chain 90Z of the caloric value of the preceding level is lost. One hectareof water of average suitability produces presently about 100 kg of fish duringthe 150 days of major annual flooding. Fish food is at its peak during thisperiod and a fish stock that contains an adequate share of fish species thatfeed on plankton, could produce 500 kg/ha of fish. When the water is permanentit can produce about 800 kg/ha in this way.
Floodplain,>
2.10 The floodplains are low-lying areas which are seasonally flooded byrivers. In western Bangladesh about 30 X of the land area is flooded in therainy season. The term floodplain is used in this report to denote the deeperfloodplains that hold water relatively longer; they are the most attractive forfisheries development. During the dry season the floodplains are used foragriculture, mostly paddy cultivation, often using groundwater and surface waterpumping for irrigation. The shallow parts of the floodplains carry deep waterrice even during the flood season. Human settlement is on river levies ornatural and artificial mounds. Rural life is adjusted to the seasons; almosteverybody is a part-time fishermen in the flood season when the agriculturalwork load is low. Professional fishermen constitute a small, specialized group;they fish all year round in the floodplain and the adjacent bigger rivers. Theircatches are high when flood waters recede and fish density rises.
2 11 As indicated in para 2.09 the fisheries potential of the floodplains isunder-utilized and there is the potential to increase production to 500 kg/hathrough appropriate stock management. Actual production is below the potentialbecause the available fish food is not well utilized by existing fish stocks.Fi,h stocks are depleted and their species composition is out of balance,because the natural reproduction of fish is disturbed by over-fishing caused byhuman population pressure and poverty, and by expanding water control and roadinfrastructure which interfere with the symbiotic exchange between rivers andfloodplains. Many fish species of economic importance migrate with rising and
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receding floods between the rivers and the floodplains. Rivers constituteretreat areas for the period of low water levels. Floodplains are the food-richbreeding, nursery and growth areas. Floodplain fisheries development is,therefore, not merely concerned with the increase in fish production from thefloodplain itself but also with the improvement of the catch in rivers.
2.12 Given the continued growth of population, in the foreseeable futureit will not be possible to effectively control over-fishing and reconstitute thepreviously balanced system of high natural reproduction. This would requireslowing down and adjusting road construction and flood control facilities and islikely to conflict with the interests of other sectors.
2.13 As a viable alternative, technologies that utilize more fully theproductive potential of floodplains are now available and are already practicedin Bangladesh in some lakes (para 2.55) and small floodplains. Thesetechnologies concentrate on artificial stocking of young fish of the carp familywhich already exist in the waters of Bangladesh. The composition and densitiesof the fish population are improved and conversion of the abundant primaryproduction is made more efficient. The project described in this report hasbeen designed to apply this technology on a broader scale and to generateadditional management approaches replicable on a larger scale.
2.14 In the project area, the floodplain areas with the highestpotential are in the Chalan beel area, the Gopalganj depression and the Khulnadepression (Map 21887). These large natural depressions contain about 550,000ha of water from July to November; located in the flat middle part of thecountry, each depression is divided into several major floodplains ofsubstantial extent. An additional potential of about 50,000 ha is found in theTeesta River area, the Nawabganj District and other dispersed areas; thispotential is located in areas adjacent to hilly terrain where the fastermovement of floodwater has created smaller and deeper floodplains, that usuallyhold water from July to March; the term minor floodplains is used for them.Altogether these floodplains and associated rivers now produce about 110kilograms of fish per ha or a total of 66,000 tons of fish. Stocking asproposed under the project would result in an incremental yield of 300 kglha inthe major floodplains and 700 Kg/ha in the minor flood plains.
2.15 The development of the major floodplains in the large naturaldepressions calls for direct public sector intervention, whereas the developmentof minor floodplains can be handled by the private sector. As the size of thefloodplains increases, it becomes more difficult for investors to controlfishing and to recover investment in stocking. Initially, it appears desirablethat the public sector limit itself to stocking major floodplains with a minimumsize of 5,000 ha, while refining knowledge about limits of private and publicsector activities in floodplains. This concept has guided the design of theproject.
2.16 A long term strategy for floodplain fisheries development inBangladesh should aim to increase the production of high-potential majorfloodplains through public stocking and to develop minor floodplains throughprivate stocking. Applied to western Bangladesh, the project area, such astrategy would increase annual fish production by about 200,000 tons, valued atabout Tk 4.0 billion (US$ 124 million). The major present constraints to such astrategy are managerial and financial and these would be addressed under the
project. The technology is available and is beginning to be used by the privatesector to stock minor floodplains.
Coastal Shrimp Culture
2.17 Eighty percent of the national production and 60 X of exports ofshrimp originate in the project area (Annex 1). High profit margins haveallowed rapid expansion of brackish water shrimp culture -- an enterprise inwhich Bangladesh enjoys a large comparative advantage. This advantage is basedon a favorable climate assuring cheap natural food for shrimp as long asproduction intensity is in tune with it, extensive land areas within the tidalrange of saline water allowing low-cost water exchange and cheap labour. Shrimpculture alternates in most cases with a rice crop grown during the wet season.At present, production is of low intensity with yields averaging about 100 kg/haof exportable shrimp.
2.18 The present production of shrimp reaches only about 351 of itspotential, for two reasons. First, not all the land suitable for shrimp cultureis used for that purpose. Second, yields on land being used for shrimp cultureare low and do not make full use of the natural productivity of the environment.Yields are constrained by (a) lack of adequate water supply and drainage; (b)inadequate management; and (c) problems of access to adequate credit for on-farminvestment and operation costs. Rising cost of shrimp post-larvae may become aconstraint in the future, although hatchery-produced post-larvae shouldalleviate supply shortages. The hatchery technology is available in thecountry.
2.19 Water supply and drainage problems due to inadequate waterinfrastructure are found in poldered and non-poldered land of the shrimp culturearea. Problems are most marked on the 50,000 ha of land currently under shrimpculture within polders. In the poldered areas the previously dense network ofnatural tidal water supply and drainage channels has been interrupted. Shrimpfarmers near the polder embankment achieve adequate water exchange only bytampering with the peripheral polder embankments, which endangers the floodprotection of others. Farmers closer to the center of the polder cannot improvewater exchange. Additional water control structures are required to provideadequate water exchange for shrimp culture, while guaranteeing the safety of thepolders and respecting the requirements of agriculture. This type ofimprovement has to be provided by the public sector, as it owns and maintainsthe polder embankments. The ongoing Shrimp Culture Project (para 2.56) hastested successfully the feasibility of such improvements in one of the poldersin the project area and replication on a wider scale, incorporating theexperience gained, is possible.
2.20 Non-poldered areas, with some 30,000 ha under shrimp culture andan intact natural water exchange svstem, are dependent 'n technology adopted bythe individual farmer. The public sector role should be limited to overall waterplanning and provision of services such as research, extension and credit.
2.21 Managerial constraints pertain to limited know-how in productiontechnology and inadequate organization of small farmers. The major shortcomingsin production technology include the management of pond water and stocking, pondpreparation, fertilization, predator control, and post harvest care. Shrimpfarms with relatively higher yields encounter problems of cost and compositionof supplementary feeding and of disease prevention. Small farmers need to be
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organized into economically-sized blocks of land. Grouping them into blocks of70 to 100 ha would allow these farmers to operate shrimp culture on their own,rather than leasing their land to professional shrimp operators, and wouldimprove coordination between agricultural and fisheries activities.
2.22 Financing from institutional sources is limited due to the weaknessof the nationalized banks. Credit for the past expansion in shrimp culture wasmet essentially from non-institutional sources and this is expected to remainthe main source in tne near future. Financing is needed for investment inon-farm infrastructure and equipment which increases with intensification offarming activities; about Tk 6,000 (US$ 185)1per ha is required for thispurpose. Financing of a similar order is required for seasonal operation costs(para 3.14).
2.23 There is good potential for production increases in the Khulna,Shatkhira and Bagherhat districts of Western Bangladesh; production can beincreased at costs that will allow Bangladesh to remain competitive on the worldmarket. About 8,000 tons of live weight, exportable brackish-water shrimp areproduced today on the 80,000 ha of existing shrimp culture in the project areawith an average yield of 100 kgjha. By the year 2000, 37,500 tons -- over fourtimes the present level -- could be produced. To achieve this, the area undershrimp culture would have to expand to the 150,000 ha with good potential andaverage yields should rise to 250/kg ha, which is feasible.
2.24 The expansion of shrimp production into new areas should not be ledby the public sector. Public support, mainly the construction of publicinfrastructure, should occur once shrimp culture has moved into new agriculturalareas or once there is a well-documented popular demand to venture into newareas. The transition into shrimp culture is difficult for smallfarmer-landowners, with a holding size averaging below 1 ha, and forsharecroppers. The introduction of shrimp culture during the fallow period,after the rice crop, requires close coordination between agricultural andfisheries activities and often is associated with a change from subsistence tomarket orientation, which is difficult in spite of rising incomes.
2.25 A strategy for shrimp culture development in western Bangladeshshould aim to increase production to about 250 kg/ha by the end of the century.The public sector should be limited to support for water management, extensionand access to credit. Within polders showing a high benefit:cost ratio, publicwater infrastructure should be provided. Outside the polders efforts should befocussed on providing extension and access to credit (para 3.25).
Other Fisheries Resources
Rivers
2.26 The river and the floodplain environment are complementary (para2.11). Combined they produce 424,000 tons or 70t of the inland fish catch, withthe balance coming from pond culture (Annex 1). Rivers are intensively fished.The Department of Fisheries (DOF) attempts to counteract declining production inrivers by improving resource management and enforcing fisheries regulations(para 2.49), but it faces difficulties to implement this. The Department hasstarted to stock rivers on a small scale but cannot monitor results. There ispotential for pen and cage culture activities at the fringes of the rivers which
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should attract private sector interest. The project would provide support to afew river fisheries initiatives (para 3.29).
Coastal Fisheries
2.27 Coastal or artisanal marine fisheries provide 262 of the country'sfish production and the project area accounts more than half of it. Catchlevels have increased rapidly in recent years and now have exceeded thesustainable maximum. The increase is attributed to rising fish prices andincreases in fishing efficiency that has come with motorization. There is alack of services for fishermen and boats, and the market is dominated bypowerful monopolies or oligopolies. However, knowledge about the aquaticresources and their exploitation is limited. Some studies on coastal fisheriesare currently being launched with Danish aid and UNDP support. Given theseconditions, the project would provide minor support to coastal fisheries at thisstage (paras 3.29 and 3.36).
Ponds, Minor Floodplains and Lakes
2.28 Ponds have a considerable potential for increased production. Atpresent they contribute about 150,000 tons, or 18? of national fish production.There are about 1.3 million ponds in the country covering an area of 147,000 ha.The average size of ponds is about 0.1 ha. Some 60? of the ponds -- 91,000hectares -- are located in the project area, where they produce some 68,000 tonsof fish. The average yield is 750 kg/ha. Yields vary widely, with flooding inthe rainy season and water-holding capacity in the dry season stronglydetermining production levels. Ultimately ponds in the project area couldproduce around 200,000 tons per year with average yields of more than 2,000kg/ha.
2.29 Compared to the potential, the present production is low becauseof the high risk associated with flooding and drought, and because pond ownersand operators lack technical know-how. Flood and drought risk cannot beeliminated, but knowledge can be improved through extension services. Existingtechnology must be presented in a manner that is adapted to suit the financialand technical realities of farm and market conditions. Pond production modelsshould be offered which acknowledge flooding or dry-season risks and provideprofitable new possibilities such as fingerling and fresh-water shrimpproduction. The basic pond model of the project includes pond rehabilitation,double stocking, fertilizing and supplementary feeding and raises fish yields inselected ponds from 300 kg/ha to about 1620 kg/ha. In ponds which have aperennial water supply, fresh-water shrimp can be a useful subsidiary crop.
2.30 There are about 50,000 ha of minor floodplains and lakes (baors,permanent beels) in the project area, generating yields of about 200 kg/ha. Thepotential yield with double stocking is about 900 kg/ha, representing anincrement of 35,000 tons. Minor floodplains and lakes differ from ponds in thatthey operate at a larger scale and place higher demands on financing, protectionfrom poaching and organization of fishing. The public sector could help byproviding extension advice, particularly to groups of fishermen and fisherwomenand rural communities.
2.31 Aquaculture in ponds, lakes and minor floodplains share a commontechnological approach, based on stocking and managing a confined body of water.The development of these aquaculture resources is driven on the supply side by a
large informal private network of private technology and input distributors.Supported by DOF in the early stages, this network is now expanding rapidly onits own. The number of private "extension agents' is estimated at more than6,000, consisting of 300 private hatchery operators, 2,000 nursery operators and4,000 fingerling traders in the project area. Private hatcheries supply 90-952of the hatchlings used in nurseries and subsequent production stages, with 60government hatcheries providing the balance.
2.32 The expansion of private fingerling production for fish culture isconstrained mainly by effective market demand. Other constraints are found inlimited access to finance and to advanced techniques for managing hatcheries andnurseries. Training support is needed for small traders -- the illiterate andself-trained conveyors of technical messages to the fish farmers.
2.33 A public sector strategy to support aquaculture development wouldhave to adapt to these developments in the private sector hatchery and nurseryindustry. This will require a change in the DOF's established methods ofdisseminating basic aquaculture techniques and producing fish seed in the publicsector. Major efforts should be directed at disseminating more sophisticatedtechnology to the well-established pond, lake, floodplain, hatchery and nurseryoperators (para 4.08). DOF should withdraw from the seed industry and freefunds and personnel presently engaged in fish seed production for technologydissemination (para 3.34). Public effort of the fisheries administration alsoshould assist in linking fish farmers with banks and in providing access toinstitutional credit through the preparation of bankable financing plans. Atthe same time there is a need to reach the many uninformed small pond ownersthrough simple messages carried by fingerling traders (paras 3.33, 4.08).
E. InstitutionsPrivate sector
2.34 The private sector catches most of the fish and shrimp inBangladesh and produces or catches 95? of the fish seed. As indicated above(para 2.01) about 11 million part-time or subsistence fishermen are activeseasonally and about 1.5 million professional fishermen are active throughoutthe year. Most are not organized and fishing cooperatives exist in name only.Operators of the 1.3 million ponds in the country probably have strongerallegiance to agriculture than to fisheries and therefore do not manifestthemselves in fisheries groups. Relatively powerful groups engage in trade witha National Seafood Exporters Association and the several hundred big fishtraders finance and wholesale most of the hilsa and coastal fish. The fishhatchery and nursery operators and fish seed traders are important in thepromotion of aquaculture, but so far have no strong voice yet.
Public Sector
2.35 The Ministry of Fisheries and Livestock (MFL) is the major publicsector institution in the fisheries sector. For fisheries matters it contains aDepartment of Fisheries (DOF), the Fisheries Research Institute (FRI) and aBangladesh Fisheries Development Corporation (BFDC). The Upazila administrationcontains usually a fisheries office technically guided by DOF. Theadministration of the sector comprises about 5,200 persons, including some 1,200professionals, and in FY90 handled an annual budget of about Tk 840 million (US$26 million). Compared to the agricultural sector the fisheries administrationis small. It suffers from the deficiencies found also in other public services
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such as low salaries, lack of staff accountability and motivation, and poorlyformulated policies and programs. However, problems are recognized, are beingaddressed (paras 2.38, 2.53) and performance is improving (para 2.56).
2.36 MFL is responsible for policy, programming, and coordination offisheries and livestock activities. It employs about 100 professionals, 50 ofwhom work on fisheries under the leadership of a Joint Secretary. The MFLencounters problems in planning and management; planning and monitoringfacilities are undersized and under-funded. In the past, development prioritiesand GOB guidelines on private and public sector roles were not translated intoaction programs with realistic targets. Delegation of power for developmentactivities is insufficient. These problems will be addressed under the projectby creating planning and monitoring cells (paras 3.32, 3.33), technicalassistance (para 3.38), supporting a major part of the administration'sdevelopment program with well defined public and private sector roles (paras3.15) and by implementation mechanisms and conditionality stressing delegationof authority (para 4.07).
2.37 DOF is charged with implementing the policies and programs of MFL.Its duties cover the management and conservation of fish resources, developmentof aquaculture, operation of hatcheries and nurseries, enforcement ofregulations, training and dissemination of technical knowledge, formulation andexecution of development projects, quality control of exports, and collection ofstatistics. DOF operates 14 projects with an annual budget of about Tk 630million (US 19.5 million) in FY90. It has about 4,600 sanctioned posts, 4,300 ofwhich are filled. Professionals make up 282 of the staff.
2.38 The major shortcomings of DOF are in planning, projectimplementation, design of extension activities, and interagency coordination. AThese problems are based on four underlying conditions: (a) lack of a clearmandate, (b) structural weaknesses; (c) managerial constraints; and (d)insufficiently trained staff. A UNDP supported DOF Strengthening Projectresulted from this exercise and is under implementation (para 2.53).
2.39 The absence of a clear mandate for DOF allows it to continue activitieswhich are no longer required from the public sector. An example of this is theproduction of hatchlings. In the past, hatcheries and seed farms were developedin the public sector to spur aquaculture development. However, in recent yearsthe private sector has taken on fish seed production and now provides a majorshare of the national spawn and hatchling yield at lower cost than the publicsector hatcheries. The articulation of a clear mandate would result in DOFstaff to be shifted from seed production to more important activities such asproviding research, extension and training support to the private sector seedindustry. The project addresses this through conditionality (para 3.34), TAsupport (para 3.39) and financing training facilities for DOF staff (para 3.32).
2.40 The major structural problem within DOF is the dichotomy thatexists between the revenue and development activities. This dichotomy leads totwo discrete establishments operating in DOF -- the relatively large, under-funded and poorly-staffed revenue budget establishment financed by thegovernment, and the smaller, well-funded and staffed project operations fundedprimarily by donors. Interaction between the two establishments is limited. Thedevelopment projects report directly to the Director of Fisheries or theSecretary of HFL. Once a development project is completed, staff is retainedunder the revenue budget or placed in other development projects. This leads to
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staff proliferation. Other problems include a diffuse and incompleteorganization at headquarters and the lack of simple chain of command betweencentral and Upazila services. The project addresses the above problems throughits program approach that combines revenue and development budget staff (para3.07).2.41 Managerial weaknesses in DOF are linked to the organization'sdiffuse structure and weak personnel management. Lack of delegation, monitoringand evaluation and problems in procurement figure prominently (paras 2.55,2.56). These problems are addressed under the project (paras 3.32, 3.38, 4.07,4.18).
2.42 Most of the professional staff of DOF have graduate degrees in oneof the natural sciences. However very few staff are skilled in the area ofproduction, planning, economics, social science, management, finance andaccounting. The ongoing UNDP funded DOF Strengthening Project (para 2.53; Annex2) focusses on these issues and the project will support training (para 3.32).
2.43 FRI was created in 1984 as a spin-off operation from the researchfunctions of DOF and the Bangladesh Fisheries Development Corporation (BFDC).It has a staff of 250, with a mandate to carry out applied fisheries research.Its current five-year master plan focuses on pond fish and shrimp culture, whichare of direct relevance to the project. However, areas important for thefisheries development program in western Bangladesh such as floodplain andcoastal fisheries are not yet covered. FRI has stations in several areas of thecountry, but is absent from the northwest despite the importance of fisheriesresources in this region (para 2.14, Map 21887). The project will support FRI(para 3.36).
2.44 BFDC is designed to operate as a commercial enterprise in fishprocessing, production of nets and boats, trawling and operating fish markets.However, it has been unprofitable and would require substantial reforms in orderto improve its performance. It is expected that the institutional strengtheningof DOF (para 2.53, Annex 2) will help also to clarify the mandate of BFDC andlead to its reform.
2.45 Over 502 of the staff of the fisheries administration work in theUpazila fisheries offices (Annex 1). Their main task is to provide fisheriesextension. In most cases, however, they have no clear work programs and lackthe basic material means to fulfill their role. The operational budget isminimal and means of communication such as bicycles or motorbikes are absent.Development projects used to bypass them. The work situation of Upazilafisheries staff is especially frustrating for the young and eager professionalwho start their career at Upazila level. The project addresses these problemsby integrating staff of selected Upazilas into project activities and providingthem with meaningful work programs, equipment, finance for operational cost andtraining (para 3.33). The project also provides funds that allow particularlyactive officers to intensify their development activities beyond the routinelevel (para 3.29).
2.46 The MFL maintains technical links with the Ministry of Irrigation,Water Development and Flood Control (MIWDFC) and the Bangladesh WaterDevelopment Board (BWDB); the Mirnistry of Lands (ML); the Universities; theMinistry of Agriculture (MOA); and the Ministry of Local Government and RuralDevelopment and Cooperatives (MLGRDC). MIWDFC oversees the Bangladesh WaterDevelopment Board (BWDB) which will develop the polder infrastructure for the
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project's shrimp culture component. ML administers the floodplain waters thatare an important part of the project. Universities, particularly the BangladeshAgricultural University, are the sources of professional staff. MOA has commonconcerns and clients with MFL, and a closer coordination between the two wouldimprove the efficiency of services. Links with the MLGRDC exist via its role inoverseeing Upazilas and cooperatives.
2.47 MFL also maintains administrative links with entities relevant toits mandate. It has strong links with the Ministry of Planning (MP). ThePlanning Commission (PLANCOM) clears projects and budget allocations and theExternal Resources Division (ERD) coordinates aid inputs. The Ministry ofFinance (MP) provides the recurrent and development budgets and should beinterested in the institutional efficiency, expenditure, and cost recoveryaspects of the project. The Bangladesh Bank (BB) provides refinance andguidance to the financial sector, which is currently undergoing major reforms.
Non Governmental Organizations (NGOs)
2.48 NGOs are increasingly active in the fisheries sector. There areclose to 300 in the country -- about 30Z of them funded externally. The largestones active in the project area are the Bangladesh Rural Advancement Committee,Proshika and Caritas. NGOs normally practice a holistic rural and groupdevelopment approach which focuses on income generation among the poor andbuilds increasingly on the profitability of aquaculture and the availability ofunder-utilized bodies of water. NGOs can be employed advantageously in socio-economic survey and extension work for public sector projects (para 3.39); theyare especially effective in providing disadvantaged groups with assistance intraining and organization, and in facilitating their access to resources andinputs.
F. Regulations
2.49 All regulations in the fisheries sector are rendered less effectiveby problems of enforcement. The two major regulations affecting inlandfisheries are the Protection and Conservation Act of 1950 and the New FisheriesManagement Policy (NFMP) of 1986. The Protection and Conservation Act isdesigned to protect fish stocks from over-fishing, but population pressure hasmade the Act largely inoperative. The NFMP was introduced in FY87 with theobjective of strengthening equity, conservation of fish resources and costrecovery. The policy limits access to public water bodies to genuine fishermen,assuming that these fishermen are deprived of income by entrepreneurs who aresaid to fish without regard to the sustainability of production. Transferringfishing rights to fishermen is expected to lead to voluntary restraint infishing effort or to compensation by stocking. The implementation of thispolicy now occupies much of the field capacity of DOF and some Upazilas; it isbeing monitored with support by the Ford Foundation. Difficulties are beingencountered in limiting licenses to genuine fishermen, collecting fees, andpromoting a sense of collective responsibility among fishermen.
G. Development ActivitiesNational Plans
2.50 National development strategies and programs for the fisheriessector are formulated in the context of preparing the country's five-year plans.
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The Third Five Year Plan (TFYP), 1986 - 1990 foresaw a total of Tk 4 billion(US$ 140 million) of public expenditure in the fisheries sector. This amountedto 1.4Z of total plan expenditure.
2.51 Because past plans were over-optimistic, public expenditures haveachieved only about 25Z of their targets. This shortfall reflects the absenceof consistent programs and the poor implementation capacity of the fisheriesadministration. It points to the need for region-specific plans for fisheriesthat can be updated regularly. Public sector production campaigns have not beenas effective as private sector development.
2.52 Much as previous plans, the Fourth Five-Year Plan (FFmY; 1991-1995)is expected to emphasize (a) increasing fish production, consumption andnutrition derived from fish, (b) increasing employment, and (c) increasingfisheries exports. Better utilization of the floodplain resources throughstocking programs and the intensification of shrimp culture are expected tofigure prominently in the FPYP. Financial allocations to the sector may rise,as government and donors begin to recognize the development potential offisheries, particularly in floodplains. The proposed project will constitute amajor portion of the FFYP's planned fisheries sector expenditures. The plan isalso likely to reflect many of the project design concepts (para 3.06),particularly on private and public sector roles, as officials responsible forplanning in fisheries participated actively in the project's formulation andappraisal process. GOB's evolving perceptions of private and public sectorroles in fisheries already result in questions about the need for the governmentto operate hatcheries and project agreements aim in the same direction (para3.34).
Major Development Programs
2.53 Major development efforts relevant to the project include theSecond Aquaculture Development Program financed by ADB, the Shrimp CultureProject (IDA) (para 2.55), the Beel and Baor Project (IFAD), and the DOFInstitutional Strengthening Project (UNDP). The Second Aquaculture DevelopmentProgram and the Institutional Strengthening Project are of particular relevance.The Second Aquaculture Program focusses on carp and shrimp culture in variousparts of the country and floodplain stocking in eastern Bangladesh. Refinancingof credit is an important element and the program provides refinance of creditneeded mainly in the shrimp culture component of the project. The InstitutionalStrengthening Project will provides inter alia plans for the rehabilitation ofDOF training facilities which will be financed under the project. These and theother projects are described in Annex 2.
H. Bank Group Involvement
2.54 IDA support began in the mid-1970s with a fisheries sub-project ofthe Karnafuli Irrigation Project (Cr. 605-BD). The sub-project incorporatedtechnical assistance for a carp hatchery and training, and was successfullycompleted in 1982. The sub-project focused on the adverse effects on inlandfisheries from flood control, drainage, and irrigation projects and correctedthese through inclusion of aquaculture-based fishery components in the projects.
2.55 The first free-standing IDA fisheries project was the Oxbow LakesFisheries Project (Cr. 890-BD; FY79; US$ 6 million; closed on 6/30/1986). Theproject provided financing for hatchery and fingerling rearing facilities for
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six lakes. The Project Performance Audit Report (1989) states that itsuccessfully demonstrated the application of aquaculture techniques in waterbodies of around 300 ha which increased yields from 150 kglha to about 800 kg/hawithout additional feeding. The experience of that project verifies the basicconcept of floodplain stocking employed under this project. Small-scalehatcheries, also demonstrated under the Oxbow Lakes Project, were an importantspin off benefit. One weakness of the project was the insufficient delegationof tasks to the beneficiaries -- tasks involving hatchling and fingerlingsupply, stocking. lake management, and fish marketing. The project alsodisplayed DOF's weakness in project implementation and procurement functions.The principal lesson learnt was not to entrust government agencies withcommercial fishery operations or, in particular cases, plan from the outset thetransition from public sector to private sector management. These specificlessons have been incorporated in the project design; project management hasbeen reinforced by TA; fingerlings are procured from the private sector (para3.46); agreements aim at the divestment of surplus public hatcheries (para 3.34)and criteria for the selection of project activities exclude the public sectorfrom commercial operations (Annex 3).
2.56 The ongoing Shrimp Culture Project (Cr. 1651-BD; FY85; US$ 22million; closing 12131/1991) aims to improve shrimp culture within polders on7,000 ha, 5.600 ha of which are located in the eastern Cox's Bazar area, whereshrimp culture during the wet season alternates with salt pans. The other 1400ha of polder land are located in a polder in the project area and they are partof a large-scale test for improved shrimp culture in the shrimp/paddy rotation.The project also includes hatchery development, extension services, credit and atechnical assistance component financed by UNDP and executed by IDA. Itinvolves an NGO for organizing shrimp farmers. The project has developedadequate momentum and is progressing satisfactorily. Although the improvedwater infrastructure has only been in operation for one shrimp season, theproject concept appears sound; farmers are satisfied and yields have alreadyincreased from 75 to 135 kg/ha in the pilot area. BWDB performed well. DOFmanagement has been adequate and professional field staff performed well.Currently identified DOF weaknesses are in procurement, delegation ofresponsibility, monitoring and cost recovery. Development of public shrimpculture land and acquisition of private land for water supply and drainagechannels have caused delays. Hatchery development has proved difficult becauseof managerial problems in DOF and limited response from the private sector.Institutional credit for on-farm development and for hatchery development andmarketing improvement has been very limited. The TA component has proved to bevital and the NGO has been effective in promoting beneficiary participation inthe project. The lessons learnt from this project have been fully integrated inthe project design (paras 3.06).
2.57 IDA reviewed the fisheries sector in FY83 (para 1.01). The reportsummarizing the review findings drew GOB's attention to inland fisheriesdevelopment and the institutional problems of the fisheries administration (para2.38). In 1985, a report on the DOP's institutional strengthening (para 2.38)intensified IDA's dialogue with GOB on the fisheries sector. IDA review of thefisheries sector is at an advanced stage, updating and extending data collectedduring an agricultural sector review conducted in FY87. It is due forcompletion in FY90 and it stresses the need for accelerated fisheriesdevelopment. The preliminary findings of this review have been taken intoaccount in the project design.
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III. THE PROJECT
A. Proiect Obiectives and Rationale
3.01 The project is designed to support a sectoral development processaiming at: (a) increasing incomes, particularly of the poor, and fish productionfor domestic consumption and export, (b) supporting the fisheries developmentprogram in the west with emphasis on private sector participation; (c)accelerating the expansion of fish production in floodplains; and (d)strengthening sectoral institutions.
3.02 IDA involvement in the project is warranted for three reasons.First, fisheries development is a priority in the GOB's development program andin IDA's lending strategy because of its high potential for growth and povertyalleviation. Second, IDA has developed experience and a capability to assistdevelopment in the sector through projects and sector work; the time has come toaccelerate investments on a larger scale, using the experience gained from thestudies and smaller projects. Third, IDA is a major source of funding and playsan important role in mobilizing donor resources; its interest in the sector islikely to help reverse a past trend of stagnation and decline.
B. Project Area
Western Bangladesh
3.03 As explained in para 1.02 the western part of the country wasselected as project area in FY88. The physical area covers about 77,000 squarekilometers, or 62Z of the national territory (Annex 1 and Map 21887). It ishome for about 55 million people -- 50? of the national population -- andproduces about 532 of GNP. The major economic activities are crop agriculturewith associated livestock -- providing 552 of national production -- andfisheries --providing 53? of national production; the area produces about 60Zof exported shrimp.
3.04 The project area is defined in the north and west by about 900 kmot border with India, in the east by the Jamuna-Meghna River, and to the southby the Bay of Bengal. The Jamuna River obstructs communication with the centersof buying power -- Dhaka and Chittagong. However, communication will improvewith the completion in 1995 of the proposed Jamuna bridge in the northern apartof the project area and with the ongoing improvement of road and ferryconnections in the southern part. As a result, the market for fisheriesproducts of the project area can be expected to improve. The southern fringe ofthe project area comprises the Sundarbans which are closed to permanent humanhabitation because the terrain is still unstable and the area is important as anature reserve.
3.05 The project area is divided by the Ganges river into two distinctregions -- the North and the South. The North is synonymous with the RajshahiDivision. It covers 352 of the project area and contains 49t of its population.It is comparatively richer than the south because of its fertile floodplainswhich support a high level of agricultural production. The North also containsthe arid Barind Tract -- an area of about 5,700 sq km with a small populationand low incomes. The South consists of the Khulna and part of the Dhaka
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Divisions. It comprises 652 of the project area and contains 51? of itspopulation. Limited groundwater facilities and severe annual flooding allowless intensive agriculture in the South and poorer living conditions.Altogether 3 Divisions, 37 Districts and 244 Upazilas occupy the project area,
C. Project Design
3.06 The project has been designed to translate the objectives describedin para 3.01 into components which reflect the sectoral potentials andconstraints in the project area and strategies discussed in Chapter II. Theproject is conceived as the first in a series of sector-wide fisheries projectsplanned for IDA support in the western part of the country (para 1.02).
3.07 The program approach was chosen because it allowed to respond tothe need to initiate accelerated development, while simultaneously strengtheningthe fisheries institutions and making full use of the findings made in studies,pilot projects and small-scale projects. Such an approach was also consideredthe most suitable to maintain a long term perspective, focus the fisheriesadministration's development activities (para 2.50), address its core managerialissues (para 2.38) and introduce flexibility to transfer project resources fromslow activities to faster ones (para 4.12).
3.08 The project is expected to be completed by June 30, 1996 and theCredit would be closed by December 31, 1996. The project's duration of sixyears is one years less than the profile of similar projects in Bangladesh. Theshorter duration was chosen because the government had expressed its preferencefor a shorter project period. Its strong commitment to the project, visible intimely contributions during the preparation stages, raises the expectation thatthe project objectives can be achieved in time. This also has been confirmed bycritical path tests for the main components (annex 10). Finally, a follow-upproject could pick-up unaccomplished tasks, as the project is meant to be one ina series of prospective sectoral projects in the same project area.
3.09 The project has two distinct groups of components. One addressesthe production objectives and comprises three components, floodplain fisheries,coastal shrimp culture, and other fisheries. The other group, comprisinginstitutional support, research, and technical assistance and training, providessupport to the production components by focussing a critical mass of institutionbuilding, social support measures and policy improvements required to supportthe accelerated development program.
3.10 The composition of the production components follows the importanceof the various fisheries resources in the project area and their potential forrapid and sustained production increases. Floodplain fisheries receive specialattention because of their high production potential (para 2.10). Shrimpculture, a leading foreign exchange earner with potential for expansion (para2.07), calls for sustained support focussing on infrastructure development (para2.25). Other fisheries is a residual component grouping mainly the otherresources (para 3.29). The production components allow clear delimitation ofimplementation responsibilities; thus the DOF headquarters is the primeresponsible for the floodplain fisheries component, the DOF field services forthe other fisheries component and the BWDB for the shrimp culture component.
3.11 The scale of the production components was determined by theimplementation capacity of the public and private sector entities involved.
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The capacity of the private sector to produce and deliver fingerlings forstocking (para 2.31) was the limiting factor in the floodplain fisheriescomponent; the idea of the public sector producing fingerlings was abandonedearly because of its weak performance in this area (para 2.39). The capacity ofBWDB to develop infrastructure decided the scale of the shrimp culturecomponent, and the absorption capacity of the DOF field services down to theUpazila level determined the size of the other fisheries component.
3.12 The impact areas of the production activities hinge onconsiderations of size and safety of returns to project investments. The areaswith the highest resource concentration were chosen in floodplain fisheries(para 2.14) and their location in three different parts of the project area (Map21887) provides safeguards against potential local failures in management,fingerling supply or other unforseen fields. In shrimp culture the areas withthe highest resource concentration and the lowest per unit cost ofinfrastructure development have been designated or prescribed by selectioncriteria (para 3.26, Annex 3). The same criteria and the mode of attributingfunds also guide activities under the Other Fisheries component towards high andsafe returns (para 3.29).
3.13 The composition of the support components is consistent with theroles of the various GOB and donor agencies. The institutional supportcomponent provides support to DOF, the Upazila fishery offices and to BWDB; itsinternal breakdown allows the agencies to recognize easily the projectcontributions which concern them most. The research component is solely forFRI. The two technical assistance sub-components are determined by the distinctnature of the contributions from two grant aid donors, with ODA focussing on DOFmanagement support and UNDP on technical and social support.
3.14 The project does not include credit and market components.Substantial credit funds have been provided under the Second Aquaculture Projectof ADB for shrimp and fish farmers in the project area (para 2.53, Annex 2) andthese funds have not yet been utilized. Moreover, banks do not lack funds butneed well prepared loan proposals and eligible clients; this is one of thethrust areas of institutional support to the fisheries administration (para4.07). Actions to adjust the financial sector of the country, includingagricultural credit, already are being supported by IDA and include inter aliastopping the use of refinance as an instrument for subsidized credit. Againstthis background, a credit refinance component would work against the efforts tostreamline institutional credit. Instead emphasis has been placed on developingwithin DOF capacity for better collaboration with the banks. In order tosimplify design, project involvement in fish and shrimp marketing is limited toextension contacts of DOF with the trade and processors, and monitoring ofseasonal and long term market trends by project management. Moreover, ptivatesector marketing is fairly efficient (para 2.06).
3.15 Policy improvements are incorporated in the project. Under theproject long-term roles for the private and public sectors have been translatedi-ito specific task allocations. For example, the project does not financepublic sector production operations (Annex 3) and supports the closure ofexisting production operations (para 3.34). Instead the project focuses publicsector activity on extension operations complementing and improving the existinginformal private extension network (para 2.31). The project will help to limitthe size of the fisheries administration by encouraging the use of servicecontracts with private firms and by making full use of the underemployed DOF and
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Upazila staff under the revenue budget. Cost recovery which is important forthe financial sustainability of floodplain fisheries development, is addressedthrough appropriate studies (para 3.39, Annex 6) and agreements (paras 6.14,6.19, 6.20). The issue of subsidies on shrimp exports was covered duringnegotiations (para 5.06).
3.16 The scale of the support components was determined by the appraisalteam and the GOB officers closely associated with it, as being required toachieve the project objectives, taking into account support available from othersources. The biggest elements are the support to DOF and the Upazila fisheriesoffices and technical assistance and training. The TA component had to besubstantial for several reasons. First, GOB insists that most local consultantservice are financed from grant- rather then GOB or Credit funds; this increasesthe size of the technical assistance components; local services account forabout 25 Z of the project's TA cost. Second, technical assistance had to ensurethat the main areas of past DOF weaknesses in management, procurement,monitoring and delegation of authority to the field, the assistance needs of theyoung FRI and of improvements in policies were sufficiently well covered byforeign and local expertise and training. The floodplain fisheries componentcalled for particularly strong support in fingerling procurement and monitoringthe effects of stocking. Third, the equity objectives of the project alsoincreased the scale of technical assistance. Newly created service pointsaddressing the needs of an increasing number of mostly destitute women active infisheries and income distribution aspects in coastal shrimp culture andfloodplains had to be supported by expertise and substantial NGO services.
D. Prouect cemponents
3.17 The project has six components: (a) Floodplain Fisheries; (b)Coastal Shrimp Culture; (c) Other Fisheries; (d) Institutional Support; (e)Research ; and (f) Technical Assistance. Floodplain fisheries involves thestocking of 29,000 ha of major floodplains in project year two, increasing to100,000 ha in project year five and six. The coastal shrimp culture involvesimprovements in infrastructure for public water control on 13,000 ha of polderedland already under shrimp culture. Other Fisheries includes 55 finance packagesfor Upazila- and District-level programs to develop freshwater fish and shrimpponds, minor floodplains, riverine fisheries, and women's involvement infisheries. Institutional support encompasses the financing of incrementalfacilities and operating costs of DOF and BWDB. Research involves the provisionof funds to FRI to carry out applied research related to the project. TechnicalAssistance includes two packages -- one for project management and one fortechnical and social support.
E. Detailed FeaturesFloodplain Fisheries
3.18 The project will support investment in the development oftechnology for cost-effective stocking of floodplains. About 20Z of the majorfloodplain resources would be stocked with carp species fingerlings. The typeof fingerlings stocked would be silver and bighead (70Z), mrigal, catla, androhu (20Z), and common (10Z) carp -- all selected because of fast growth, earlyspawning and balanced species composition. Stocking would take place in June,with the onset of the monsoon and when the natural food supply for fish isparticularly high and the loss of fingerlings due to fishing is lowest. The
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fingerlings would be released from boats at different locations in the central,deeper parts of the plains.
3.19 Releases would be given much local publicity and would be precededby special extension campaigns to generate awareness about the negative impactof catching fingerlings and young fish. The fingerlings would be inspectedbefore and during stocking. For a few weeks immediately following the release,guards would be placed around the release areas to prevent any fishing of yetundispersed fingerlings. The volume and size of fingerlings stocked --important to reduce loss from predators -- would gradually increase over thelife of the project. In Project Year 2, 20 kg/ha would be stocked; in ProjectYear 3, 25 kg/ha and in Project Year 4 and onwards, 30 kg/ha. The weight andsize of fingerlings would increase from 7.4 g, 9.5 cm in Project Year 2 to 11 g,14 cm in Project Year 4. The progression in size of fingerlings is important toreduce mortality and will allow suppliers to adapt gradually to thc demand forlarger fingerlings.
3.20 The base cost of stocking would be Tk 45 (US$ 1.40) per kilogram ofthe 14 cm size fingerlings or Tk 1,350 (US$ 41.80) per ha as of Project Year 4.The annual base cost of this component would increase from Tk 43.5 million (US$1.4 million) in Project Year 2 to Tk 135.0 million (USS 4.2 million) in ProjectYears 5 and 6. IDA would initially finance 1OOZ of the cost (para 3.53) inorder to ensure the availability of funds at all times and confer initially aninvestment status to the stocking operations and instill supplier confidence inquick payment.
3.21 Because a timely supply of fingerlings is crucial for the successof the component, managerial routines for public stocking will be developed.The quantities of fingerlings required are substantial -- in Project Years 5 and6 about 3,000 tons of fingerlings will be needed, three to four times thepresent fingerling production of the project area. Although the existingprivate hatcheries and nurseries are capable of expanding output fast, skilledmanagement will be needed to effectively organize the supply. To ensureadequate organization, TA support would be provided to DOF and fingerlings willbe bought from a limited number of firms. After pre-qualification, supplierswill be selected on the basis of tenders and will arrange for sub-contractingwith the many small nurseries and fingerling producers (para 3.46). Draftprocurement documents have been prepared during appraisal.
3.22 Preparations for stocking would take place in Project Year 1, andactual stocking would begin in Project Year 2 on 29,000 ha. One floodplainwould be stocked in each Division in the first two years. The floodplains to bestocked initially have been selected because they are typical of the sarroundingpotential and because they are easily accessible. These floodplains include theChanda beel area in the Gopalganj depression (Dhaka Division), the poldered BSKEplain in the Khulna depression (Khulna Division) and the poldered Halti beelarea in the Chalan depression (Rajshahi Division). Intensive monitoring will becarried out in each of these floodplains over a period of three years (para4.20, Annex 6). For each of these areas a monograph depicting the main physicaland economic features has been prepared.
3.23 Stocking of these first areas will provide the technical andmanagerial experience required for expansion into adjacent areas. Since thefloodplains selected are typical of the surrounding potential, they will provide
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experience with the variety of conditions which are likely to be encountered inthe floodplains.
3.24 In Project Year 4, stocking will be expanded to other floodplains.Four floodplains are identified for this - the Boro beel (DhakalGopalgaaJ), theChenchuri polder (Khulna), the Uthrail and Hilna beels (Rajshahi) - but projectmanagement will be permitted to make its own choice as long as it employsselection criteria outlined in Annex 3. By Project Year 5, 100,000 ha will bestocked each year, out of the total major floodplain potential of 550,000 ha inwestern Bangladesh. The Dhaka Division will account for 30,000 ha, the KhulnaDivision for 30,000 ha, and the Rajshahi Division for 40,000 ha.
Coastal Shrimp Culture
3.25 This project component represents a continuation and expansion ofthe ongoing Shrimp Culture Project (para 2.56). Its purpose is to improve thewater exchange infrastructure on pcldered shrimp land to increase shrimpproduction and exports. About 13,000 ha of shrimp land have been earmarked fordevelopment. On these, 3,000 ha of detail planning and 7000 ha of generalplanning have been completed. The base cost of the component is Tk 417.3million or US$ 12.9 million. The component has been designed recognizing thatBWDB, the implementing agency for infrastructure, can accommodate a program of3.000 to 4,000 ha/year without straining its present implementation capacity.DOF will provide extension for poldered and non-polder areas and TA will supportinfrastructure planning and participant organization. Extension activities willfocus on the 13,000 ha in order to optimize returns on the infrastructureinvestment. They will complement the activities of ADB's Second AquacultureProject, which initially will refinance the on-farm credit. Extension supportwould be provided to all brackish-water shrimp areas, whether poldered or not,and would be financed from the Institutional Support and the TA components.Production of fresh-water prawns would be supported under the Other FisheriesDevelopment component.
3.26 Polders have been selected for water infrastructure improvementtaking into account both least cost of infrastructure per hectare of landcuirently under shrimp culture and production potential. A priority list ofpolders has been established using inf.rmation available from the ongoing ShrimpCulture Project. The list includes, in order of priority: Polders No. 23, 5,16, 18/19, 31, 32,and 33. Polders 23 and 5 have been selected for earlyimplementation and detailed planning has been completed. Polder 23 is locatedin the area where shrimp culture alternates with paddy cultivation. It has thelargest concentration of shrimp culture (3,700 ha) and the start there should beeasy due to early support from staff working on nearby polder 20 under theShrimp Culture Project. Polder 5 is located in an area where shrimp arecultivated during 9 months of the year and paddy cannot be cultivated any morein the remaining short period. About 1,000 ha of land have been selected forimprovement as a pilot operation for this type of shrimp culture withcomparatively higher yields.
3.27 During Project Year 1, the following activities would be carriedout in polders 23 and 5 : (a) a baseline social survey; (b) a projectparticipation agreement for the concerned population (Annex 6); and based on it(c) the selection of shrimp culture blocks for development. Civil works willbegin in Project Year 2 and be completed in Project Year 3. Detailed planningfor the other polders will begin in Project Year 2 and general planning for
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remaining 3,000 hectares will begin in Project Year 3. This planning will befunded under the TA component. During negotiations agreement was reached withGOB that the selection of polders for improvement in later years will be made byproject management and be based on the selection criteria in Annex 3.
3.28 BWDB will improve the polder embankments, build sluices and developsome footbridges needed to cross water channels. DOP will provide extensionwith the assistance of local consultants (NGOs) and expatriate experts.Extension would also be given to improve production of shrimp culture on some2,000 ha outside of polders. A project cell under the Divisional DeputyDirector for Khulna will provide DOF support, and draw on the manpower availablein the ongoing Shrimp Culture Project and in the Districts and Upazilas. Shrimpfarmers will be responsible for building or improving water distribution anddrainage systems, with organizational assistance from local consultants (NGO)and engineering assistance from BWDB. The building of sluices by BWDB will beconditional on the shrimp farmers agreeing to develop the water and drainagesystem. It is envisaged that the public sector will have to assist with theconstruction of some main channels, where farmers fail to develop an adequatesystem. For this intervention a provision of 20Z of total estimated cost ofmain water supply and drainage channels has been made. This approach differsfrom that previously adopted under the Shrimp Culture Project, where BWDB builtthe main channels. It reflects GOB's desire to lower the cost of publicinfrastructure and to minimize land acquisition.
Other Fisheries
3.29 The other fisheries component will provide localized support toprivate sector development at District and Upazila level. This will includemainly intensified study and extension services at the local level for (a) pondsand lakes, (b) minor floodplains, (c) rivers, (d) fresh water shrimp promotion,.e) assistance to underprivileged groups such as women and (f) other activitiesthat may appear important during project implementation. For planning purposes,funds for these services have been grouped into a number of packages to indicatethe variety and dispersed nature of target groups and implementing servicesinvolved. These services may include special studies, surveys, and training,temporary personnel service for extension and technical advice, fielddemonstrations and pilot operations including coverage of operating costs. Thepackages should be of particular value to the newly created Women in Fisheriescells at HQ and Division level (paras 3.32 and 3.33). These cells would promotethe increased participation of women in GOB's fisheries activities in westernBangladesh. Supported by Technical Assistance (Annex 6) they should be able toinitiate local development activities early in the project. The other fisheriespackages have been grouped under the disbursement category of study and servicecontracts. Financing for the Upazilas and DFOs will be allocated by thedivisional heads of DOF on the basis of agreed plans, which the District andUpazila officers will prepare with guidance from the divisional level. Duringnegotiations agreement was reached with GOB that only activities which conformto the selection criteria outlined in Annex 3 would be eligible for projectfinancing and that a substantial part of the funds available under thiscomponent would be used for activities related to women in fisheriesdevelopment.
3.30 A total of 55 Other Fisheries packages have been identified, at abase cost of Tk 66.0 million (US$ 2.0 million). The cost of the average packageis Tk 1.2 million (US$ 37,150). The actual cost of a package will vary with the
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type of problem addressed, the problem's importance and the state ofinformation. The estimated number of packages for ponds is 17, (Dhaka 3, Khulna6, Rajshahi 8); minor floodplains, 13 (Dhaka 3, Khulna 4, Rajshahi 6); rivers, 9(Dhaka 2, Khulna 4, Rajshahi 3); women's development, 8 (Dhaka 2, Khulna 3,Rajshahi 3); freshwater shrimp 5 (Dhaka 1, Khulna 2, Rajshahi 2);co,.stal/estuarine fisheries, 3 (Khulna 3). The packages are expected to resultin production increases on about 9,000 ha of minor floodplains and 4,500 ha ofother fisheries resources, mainly ponds.
Institutional Support
3.31 This component will support project implementation and someinstitutional improvements for DOF (para 2.37), the Upazilas (para 2.45), andBWDB (para 2.46), as required to attain sustainable development. The base costof the component is Tk 318.2 million (US$ 9.9 million). The project willfinance incremental costs of vehicles, office and field equipment, officeconstruction, building rehabilitation, operation and maintenance, and staff.The project draws primarily on staff already employed on the recurrent anddevelopment budgets. For the latter, only incremental operational costs will befinanced. In order to increase the transparency of disbursement againstincremental staff costs, agreement was reached with GOB that the submission byDOF, BWDB and FRI of a proiect related staffing plan indicating funding underthe development and the revenue budget will be a condition of disbursement.
3.32 DOF support will be divided between headquarters and the fieldservices. Headquarter support will fund the Project Coordination Cell;rehabilitation of training facilities, and equipment and operational costs ofother DOF units involved in the project. The Project Coordination Cell (para4.06) will consist of 11 professional staff working in 7 sub-cells i.e. projectmanagement, planning, monitoring and evaluation, procurement, administration andfinance, women in fisheries, and training. Detailed plans for rehabilitation oftraining facilities will be prepared under the ongoing UNDP/FAO InstitutionalStrengthening Project by March 1992. During negotiations agreement was reachedwith GOB that the plans for rehabilitation of DO? training facilities andproject related budget plans for the other DOF headquarter units would besubmitted to IDA for approval.
3.33 Strengthening the field level will include incremental costs of 24Districts and 70 Upazilas which are involved in the project and not funded fromother sources. Each of the three divisions will be allocated professional staffto cover project management, extension and training, floodplain fisheries andregulation, credit, women's development, and administration and finance. Khulnawill be strengthened by 23 staff, Rajshahi by 12 and Dhaka by 11. In Khulna 11staff will concentrate on shrimp culture. During negotiations agreement wasreached with GOB that Khulna Division extension staff from the ongoing ShrimpCulture Project (para 2.56) will be formally transferred to the project by June30,1991. The objective of this transfer is to make maximum use of existingmanpower; the transfer should pose no problems, as the main activity of theShrimp Culture Project in the project area, i.e. the development of polder 20,is finished. Staff at the district level will consist of the DFO and anadditional Subject Matter Specialist. To provide better working facilities tothe DFOs who generally use operate out of hired, frequently very inadequateoffices, during negotiations un understanding was reached with GOB that theconstruction of up to 15 selected District Fisheries Offices with a an estimatedcosts of Tk 21 million (USS 650,000) would also be financed under the project,
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without increasin8 the volume of the Credit. The Upazilas will continue to bestaffed with three junior professionals.
3.34 A major institutional improvement of DOF would be the divestment ofDOF fish seed units which have become redundant because the private sectorproduces fish seed more effectively (paras 2.31, 2.39). Such a step would freescarce financial, staff and managerial resources which the department needs foraccelerated fisheries development. During negotiations agreement was reachedwith GOB that it would establish an inter-ministerial committee on divestment ofpublic fish seed farms, under TOR and membership satisfactory to IDA, by July 1,1992, furnish the recommendations of the committee to IDA for comment, by March1. 1993, and thereafter implement the recommendations according to an agreedtime schedule. The inter-ministerial committee will comprise MF, MFL and MP asthe principal members. Supporting studies will be prepared under the STAcomponent before the committee is created to assist their deliberations (para3.39, Annex 6). The timing takes into account the implementation capacities ofMFL, DOF and STA.
3.35 Strengthening BWDB will include the purchase of vehicles and boatsand the funding of project related operation and maintenance expenses andadministrative overheads.
Research
3.36 The objective of this component is to provide research support bythe Bangladesh Fisheries Research Institute (FRI) in areas directly related toproject activities. The component does not overlap with the Second AgriculturalResearch Project (Cr. 1455 BD). Research will focus on fish food, fish diseaseand fishing gear in floodplains and on catch and effort parameters in coastalfisheries. The base cost of the component will be Tk 26.5 million (USS 0.8million), which will cover four research projects and an allocation forunforeseen research and a small field station in Western Bangladesh. Duringnegotiations agreement was reached with GOB that the field station plans of FRIwould have to be cleared by IDA. Terms of reference for the research componentfigure in Annex 4. Expert support will be provided under the TechnicalAssistance Component.
Technical Assistance and Training
3.37 The main objective of the technical assistance and training (TA)component is to strengthen DOF (para 2.37) while embarking on acceleratedfisheries development activities. The base cost of the component is Tk 224.0million (US$ 6.9 million). About 45 Z of the cost is for local services.Because of financial constraints of obtaining grant aid from donors fortechnical assistance, the component has been divided into two packages -- onefor management (MTA) and one for technical and social support (STA). Terms ofreferences for these packages are presented in Annexes 5 and 6.
3.38 The management technical assistance package, to be financed andadministered by ODA, provides for assistance in project management both at DOFheadquarters and at the divisional level. Long-term and short-term expertisefrom local and expatriate sources will be provided in project management andplanning, procurement, project monitoring, computer services, training and foran independent stocking inspection service. Training will be providedon-the-job, in-service training and overseas in the form of 24 training awards,
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mainly in management related areas. About 240 man-months of expatriateassistance and 162 man-months of local services will be required.
3.39 The support technical assistance package, to be financed by UNDPand executed by IDA, will provide expertise for technical and socio-economicstudies, services for organizing shrimp farmers and fishermen, technicaladvisory services for DOF, FRI and BWDB, and study tours. Studies and serviceswill be geared to the major project components as well as policy mattersconcerning cost recovery in floodplains and divestment of public sectorhatcheries. Monitoring of production in stocked floodplains and NGO services toshrimp farmers will receive special attention. Study tours will take 100persons to Asian countries and provide for 100 in-country training tours. Over130 man-months of expatriate assistance and 4,100 man-months of local consultantservices will be required.
Status of Project Preparation
3.40 Detailed plans have been prepared for the main investmentcomponents, floodplain fisheries and coastal shrimp culture through Project Year3. For floodplains, the areas to be stocked initially with fingerlings and thetechnical and administrative parameters of the stocking program are defined.Civil works are substantial only in the coastal shrimp culture component; theyare planned to begin in Project Year 2. Civil works for the first 3,000 ha tobe developed in Project Years 2 and 3 have been planned to the detailed designlevel.
F. Project Cost
3.41 The cost of the project is Tk 2,323.3 million (US$ 62.7 million),including physical and price contingencies (Table 3.1). Duties and taxesrepresent Tk 144.2 million (US$ 3.9 million) or 6.22 of project costs andforeign exchange Tk 578.4 million (US$ 15.8 million) or 25 Z of project costs.Detailed project costs are presented in Annex 7.
3.42 Cost estimates for the project are updated October 1989 prices.Cost estimates for civil works under the Coastal Shrimp Culture component arebased on detailed engineering designs. The costs of other components representthe actual costs of similar items. Physical contingencies account for 7.6 Z ofbase costs. The rate for fingerlings, civil works, office and laboratoryequipment, staff and operating costs is 102. No physical contingencies areapplied to transport, equipment, consultants, lump sum allocations and, incompliance with UNDP rules, the complete Support Technical Assistance component.Price contingencies based on Bank projections amount to 28.1Z of base costs.Price contingencies on foreign costs were based on projected foreign inflationrates of 4.9Z up to FY95, and 4.32 in FY96. Price contingencies on local costswere based on projected local inflation rates of 1OZ in FY90, 9Z in FY91, 82 inFY92 and 7Z thereafter. The exchange rates used between FY90 and FY96 are 32.7,33.9, 35.3, 36,4, 37.2, 38.0 and 38.7 respectively.
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Table 3.1 Project Cost Summar(Million)
Take us2 S Totel**<<---- ----- *e-v-*---*------ U foreign ease
Local Foreign Total Local Foreign Total Esohse Costs... ~~~~~~~~~~- - - - -. -. - - .... __ . ._ ._...... --- - ... __.__ -.... __....... ...__. ......_ ...
3.43 The project would be financed as shown in Table 3.2. IDA and GOBwill finance the Floodplain Fisheries, Coastal Shrimp Culture, Other Fisheries,Institutional Support and Research components. ODA would finance 100? of themanagement component of technical assistance and UNDP 1OOZ of the supportcomponent of technical assistance. The IDA Credit will be channelled by GOBthrough its annual development budget to DOF, BWDB, and FRI. DOF would handleUS$ 28.0 million (63Z), BWDB US$ 15.8 million (35Z) and FRI US$ 0.8 million (2Z)of the Credit. The approval of the Project Proformas for 1PL, covering the DOF,FRI and TA parts of the project, and for MIWDFC, covering the BWDB part of theproject, is a condition of Credit effectiveness. ODA would administer its ownfunds. UNDP funds would be channeled through IDA as the executing agency.
3.44 GOB will provide adequate budget allocations to the project inaccordance with Annex 8. It is a condition of Credit effectiveness that GOBwould include US$ 2.2 million equivalent in its FY91 Annual Development Programfor the project.
H. Procurement
3.45 The project will require the procurement of fingerlings, civilworks, equipment and vehicles, consultants' services, trainirg, and some land(table 3.3). Procurement will be handled by DOF, BWDB, FRI, ODA and IDA, as theexecuting agency for UNDP. The project Coordination Cell of DOF (paras 3.32,4.05) will include a procurement unit of two officers, assisted by an expatriateadvisor and a local assistant (para 3.38) provided under MTA. The procurementunit will prepare procurement that is handled by the Director of Fisheries andassist him in supervising and advising the Divisional PDs in their respectiveprocurements.
3.46 The supply and stocking of fingerlings represents a largeprocurement category -- Tk 738.1 million (USS 19.6 million) includingcontingencies. Procurement procedures for it are guided by three principalconsiderations: (a) for manageability, the number of contracts should not exceednine; (b) floodplains should be subdivided into lots, and bidders should be pre-qualified to minimize the risk of non-performance; and (c) the size of theindividual contract should be large enough to remain attractive to majorcontractors. Although initial contracts are not likely to be large enough toattract international contractors, ICB rules are followed during the pre-qualification stage to allow foreign participation.. Contractors will act asagents for the purchase, transport and delivery of fingerlings from many localnurseries. Because the risks and costs of long-distance transport and bordertransit of live animals are high, the fingerlings will have to be bred andraised within Bangladesh. Contractors will be pre-4ualified each year beforetendering for fingerlings.
3.47 Draft pre-qualification and tender documents have been preparedfor the first stocking at the end of Project Year 2. The main features offingerling procurement for Project Year 2 are as follows. Three lots between2,000 and 4,500 ha would be tendered for each of the three floodplains stocked.A total of nine lots would be tendered, each subject to a separate offer. Onecontract could cover a maximum of two lots. At least twelve offers, three morethan the maximum number of contracts possible, should be obtained from bona fidefirms. Contract values will range from Tk 4 million to Tk 18 million (US$
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120,000 to 560,000). The experience of the first stocking may be used to varylot and contract sizes for future stockings after consultation with IDA.
Table 3.3 Procurement Method \a
Category ICB LCB Other NA Total Cost------ US$ million----------------------
TOTAL 23.1 18.8 17.9 2.9 62.7(19.6) (15.2) (7.7) (2.1) (44.6)
\a Figures in parenthesis are the amounts to be financed by the Credit.\b Includes US$0.5 million from UNDP and US$0.3 from ODA.\c Includes US$1.6 million from UND? and US$0.5 million from ODA.\d US$3.3 million from ODA and US$2.1 million from UNDP. Includes training costs
of US$0.5 million from UNDP and US$0.4 million from ODA.\e Includes US$0.2 million from ODA.\f GOB staff and allowances.
3.48 Firms will be selected by the Director of Fisheries, using IDAguidelines for the procurement of goods and services under ICB. IDA will reviewpre-qualification and tender documents, and advertising procedures before bidsare invited. IDA will also approve bid evaluations before cor-tract award.Firms will be invited on a broad basis to participate in pre-qualification. TheDirector of Fisheries will be responsible for inspecting the quantity andquality of fingerlings stocked and for providing certification of performance toIDA so that reimbursement can be made. In order for DOF to have a field checkon stocking reports, a locally-based certification firm will be employed underthe MTA component to prepare independent reports on quantities and speciescomposition of each lot.
3.49 Civil works procurement will cost Tk 681.7 million (USS 18.3million). BWDB will construct sluices, footbridges, canals and rehabilitateembankments for Tk 663.4 million (US$ 17.9 million) under the Coastal Shrimp
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Culture component. Under the Institutional Support component DOF willrehabilitate buildings. BWDB civil works will consist mainly of small sluices.Whenever possible, BWDB would group its works into lots comprising a polder orspecific development phase. For lots estimated at more than US$ 1 million BWDBwould follow ICB. LCB will, however, be the predominant way of procurementsince (a) international companies will not be interested in bidding forcontracts where individual works are small and dispersed over areas withdifficult communication, and (b) the participatory approach in decision makingabout civil works (para 3.28) makes it difficult to prepare lots large enoughfor ICB. One new office building in Xhulna and rehabilitation of other officeswill be procured using LCB. Before bids are invited and awarded, IDA willapprove tender documents and bid evaluations for the first contract for eachtype of civil works and for any contract exceeding US$ 150,000; IDA would thusreview contracts representing about 502 of the financial volume of civil works.For all other works, bid evaluation reports and contracts will be furnished toIDA before reimbursement is sought.
3.50 Consulting services to complete detailed design under the coastalshrimp culture component will cost Tk 22.3 million (US$ 0.62 million) and willbe procured by BWDB following IDA guidelines for the use of consultants.Contracts under the financial packages of the Other Fisheries component (para3.29) amounting to Tk 107.6 million (US$ 2.9 million) will be handled by theDivisional PDs of DOF. DOF will use GOB procedures acceptable to IDA for theprocurement of local consultants. IDA will review the first five letters ofinvitation and all contracts above US$ 50,000 before contract award. UNDP fundedSTA and training services will be procured by IDA, as Executing Agency, inaccordance with World Bank guidelines. Consulting and training servicesprovided under ODA-funded technical assistance will be procured using ODAprocedures.
3.51 Equipment cost will be about Tk 151.1 million (US$ 4.3 million)covering vehicles; boats and engines; office fittings, furnishings andequipment; computers, printers, and software. Wherever possible, items would beprocured in bulk following ICB procedures. For procurement under ICB, localmanufacturers will receive a preference in bid evaluation of 15X of the CIFprice or the prevailing customs duty, whichever is lower. Items costing lessthan US$ 100,000 per contract, but not exceeding an aggregate amount of US$500,000, will be procured using LCB. Items costing less than US$ 10,000 percontract but not exceeding an aggregate amount of US$ 100,000 will be procuredafter soliciting prices from at least three independent suppliers in accordancewith procedures acceptable to IDA. Tender documents and advertising proceduresfor all ICB procurement will be reviewed by IDA before bids are invited, and bidevaluations will be approved before contracts are awarded. No equipment will beprocured under the STA component financed by UNDP and executed by IDA. ODA willapply its own procedures for procuring equipment for the MTA component.
3.52 As currently planned, land acquisition will only be required toexpand the DOF office in Khulna; land costs are estimated at Tk 2.4 million (US$0.1 million). Land acquisition might be needed as part of the infrastructureallocation in the coastal shrimp culture (para 3.27). All land acquisition isexclusively funded by GOB.
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I. Disbursement
3.53 Disbursement from the proposed IDA Credit will cover:
(a) 1002 of the expenditures for fingerling procurement through FY94and 80 thereafter;
(b) OOX of the foreign expenditure for directly imported vehicles andequipment;
(c) 1002 of the ex-factory price of equipment manufactured withinBangladesh, or 70? of local expenditures for other items procuredlocally;
(d) 100l of service and study contracts;(e) 802 of the expenditure on civil works for new construction and
rehabilitation including construction material, engineering andsupervision of construction;
(f) 902 of the cost of incremental staff costs, maintenance of civilworks and equipment and other operating costs; through FY92; 70? inFY93 and PY94; and 602 thereafter.
3.54 Full documentation will be sent to IDA in support of withdrawalapplications for items (a), (b), (c), (d) and te) above. Certified statement ofexpenditure will be required to support withdrawal applications for contractsunder (c) costing less than USS 10,000, for civil works under (d) costing lessthan US$ 50,000, and for expenditure under (f). The actual supportingdocumentation for Statement of Expenditures will be retained by DOF, FRI, andBWDB at a central location and will be made available for review by IDArepresentatives on request.
Proiect Special Account
3.55 Three Special Accounts will be opened in the Bangladesh Bank (BB)to facilitate disbursement of the Credit. The accounts will be used by DOF, BWDBand FRI. The authorized allocation for the accounts will be US$ 1.5 million forDOF, 0.8 million for BWDB, 0.1 million for FRI. The allocation represents fourmonth's expenditure requirements. The Director of Fisheries will coordinatespecial account funding for the three Divisional Deputy Directors withresponsibilities of Project Directors (para 4.07).
Accounts and Audit
3.56 DOF, FRI, and BWDB will maintain complete records of allexpenditures incurred. The accounts of these agencies are reviewed by their owninternal audit staff and audited by the Comptroller and Auditor General ofBangladesh (GAG). The CAG has a special unit which handles the financial auditsof foreign-financed projects. These audit arrangements are satisfactory to IDA.The auditor's reports for DOF, FRI, and BWDB will be sent to IDA within ninemonths of the close of each fiscal year. Separate opinions as to whether theCredit funds disbursed against statements of expenditure have been used for theintended purposes will also be made available by the CAG to IDA within ninemonths of the close of the fiscal year.
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IV. ORGANIZATION AND MANAGEMENT
A. Implementing Agencies
4.01 The Ministry of Fisheries and Livestock (MEL) wiil be the leadministry for the project. The Department of Fisheries (DOE) will be the mainimplementing agency, accompanied by the Fisheries Research Institute (FRI) andthe Bangladesh Water Development Board (BWDB). ODA will execute the ManagementTA and IDA the Support TA financed by UNDP.
4.02 MFL will oversee the policy, strategy and institutional developmentfocus of the project and will coordinate with other GOB agencies at the ministrylevel, such as MIWDFC, PLANCOM, ERD, and MF. Coordination committees at centraland at divisional level will improve coordination (para 2.38). The creation offour proiect coordinating committees, satisfactory to IDA, at the central (one)and divisional levels (three), is a condition of Credit effectiveness. MEL willensure that the approach of other projects under its purview is consistent withthat of the Third fisheries Project. MEL will be responsible for the activitiespertaining to cost recovery (para 0.13) and the divestment of redundant publicfish seed farms (para 3.34).
4.03 The Department of Fisheries (DOF) will be responsible foroverseeing the physical implementation of the project. It will also coordinatethe activities of GOB and donor agencies involved in the implementation of thisand other ongoing projects. Implementation of the project will involve thecomplete administrative chain from the Director of Fisheries via Divisional andDistrict Fisheries Offices down to the Upazila Fisheries Officer ( ProjectOrganization Chart). However, the pivotal points of project management will bethe Director of Fisheries and his Coordination Cell, and the heads of the threeDivisional Fisheries Offices.
4.04 The Director of Fisheries will have the overall responsibility butwill delegate a large degree of management authority to the PDs. The DF willretain direct responsibility for project activities which are beyond thecapacity of the PDs, viz. (a) stocking contracts under the floodplain component;(b) institution-building activities at headquarters; (c) ICB procurement ofequipment and vehicles for headquarters and Divisions; and (d) coordination ofTA inputs allocated to headquarters. The Director will provide regular supportto the Divisional Deputy Directors without infringing on their managementprerogatives. He will coordinate with the headquarters of related agencies,particularly BWDB, FRI, and private entities.
4.05 Since the Director of Fisheries is currently responsible for 13development projects, he will be assisted by an Coordination Cell headed by anofficer of the Aiditional Director rank to whom the Director of Fisheries maydelegate part of his overall and project specific responsibilities. The cellwill be responsible for preparing all project related work for the Director ofFisheries and transmitting it in some cases to subordinate parts of DOFheadquarters and field units. The cell's functions will include managementsupport, planning, monitoring and evaluation, procurement, administration andfinance, women's development and training. It will employ 11 DOP professionalsand two 2 expatriate and 3 local experts in management, procurement,monitoring/evaluation and computers, provided under the ODA financed MTA (para3.38).
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4.06 The cell will draw upon existing units at DOF headquarters as muchas possible, particularly upon those dealing with training and extension. Itwill cooperate closely with the training and organizational components of theUNDP/FAO Institutional Strengthening Project. The cell will be considered atemporary aid for the Director of Fisheries, until the Department of Fisheriesitself can be reorganized and strengthened and its functions taken over byactive DOF line units. The appointment of the head of the Coordination Cell isa condition of Credit effectiveness. Additionally agreement was reached withGOB that the cell would be staffed in accord with a plan satisfactory to IDA byOctober 31, 1990.
4.07 The Deputy Directors of the DOF Dhaka, Khulna, and RajshahiDivisions (or any other officers appointed to head such divisional offices) willbe delegated the financial and administrative powers equal to those of a ProjectDirector and will be responsible for all implementation activities in theirrespective zones of influence. The purpose of this is to combine their existingadministrative function as Division Head under the revenue budget with a highdegree of autonomy in project implementation under the development budget.Previous projects lacked sufficient field level executive authority (para 2.56).A Deputy Project Director will be placed in Faridpur to oversee in the field theproject activities in this western part of Dhaka Division and to overcome thespecific communication problems of the Dhaka Division. The Divisional DeputyDirectors will be responsible for detailed project planning, implementing andmonitoring the institutional support and other fisheries development components,the general extension work, some activities related to the major floodplains,and for coordinating TA inputs allocated to their Division. It is a conditionof Credit effectiveness that the Divisional Deputy Directors would be delegatedthe financial and administrative powers of a Project Director, and that theDeputy Project Director of Faridpur is appointed . All Divisional DeputyDirectors will emphasize involving the private sector in extension, preparingbankable fisheries credit proposals (para 2.33), encouraging women in fisheries(para 2.01), and making effective use of the other fisheries packages (para3.29). The Divisional Deputy Directors will be assisted by professioralscovering the fields of planning/monitoring, extension/training,floodplainslregulations, credit, women development, administration/finance, and,.in Khulna, shrimp culture (para 3.33). Agreement was reached with GOB that thedivisional offices will be staffed in accord with a plan satisfactory to IDA,not later than October 31, 1990.
4.08 District Fisheries Offices will play a key role the project. Thoselacking subject matter specialists will receive them. They are to provideexpert advice and training to advanced extension clients such as NGOs andoperators of nurseries and hatcheries, fingerling traders (para 2.32) andUpazila Fisheries Officers (para 2.45). The quality of these specialists isimportant and DOF will have to carefully examine candidates and provide adequatetraining (para 2.53).
4.09 The Upazila Fisheries Officers will be responsible for programmingand implementation in their areas; they will serve as the main link between thefisheries administration and the Upazila Councils, fishermen groups, andoperators of ponds and minor floodplains. Their experience will provide ideasand guidance for utilizing the various local fisheries packages (para 3.29).These officers will be encouraged to change their focus from public sectorproduction to extension activities. The funding available to them under the
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Other Fisheries component does not cover public sector production or inputsupply activities (Annex 3).
4.10 FRI will be responsible for undertaking project related researchthrough its contract personnel and for developing a field station in RajshahiDivision (Annex 4). As DOF would divest fish seed farms with pond and hatcheryfacilities also needed in a field research station, a transfer of one DOF seedfarm to FRI seems appropriate. During negotiations agreement was reached withGOB that a DOF fish seed farm in a suitable location in Raishahi Division wouldbe transferred to FRI by December 31, 1991.
4.11 BWDB will be responsible for implementing, maintaining, andoperating the civil works under the coastal shrimp culture component (para3.25). Implementation will take place within the established BWDB managementchain. In the field, the Executive Engineers of Khulna Operation andMaintenance Division II and of Satkhira Operation and Maintenance Division 2would be appointed in time as the responsible officers. In each polder underdevelopment, the Executive Engineer will be supported by one Sub-divisionalEngineer and three Section Officers for a period of four years, beginning oneyear before construction begins. To avoid the delays experienced during theShrimp Culture Project, detailed design for these civil works will be undertakenunder one contract by a BWDB-appointed design consultant for the duration of thecomponent. The appointment of the Executive Engineers of Khulna Operation andMaintenance Division II and Shatkhira Operation and Maintenance Division I asproject officers responsible for the execution of the BWDB part of the coastalshrimp culture component is a condition of Credit effectiveness.
4.12 All GOB agencies operate under the Project Proforma system.Investment and operational funds for the project will be described in theProject Proforma in a global manner, under the selection criteria for projectactivities in Annex 3. This will allow the implementing agencies moreflexibility and avoid the need to obtain time-consuming PLANCOM approval forminor revisions.
4.13 ODA will, in consultation with GOB, select a consulting firm toundertake the Management TA component (para 3.38). MTA staff will beresponsible to the Director of Fisheries and the Divisional Deputy Directors,but their administration will be coordinated by ODA's Senior Management Advisorin the Coordination Cell. For overseas training under the project, ODA willmake an allocation within its overall scholarship program administered by theBritish Council. To ensure close coordination, ODA will participate in IDAsupervision missions.
4.14 IDA is expected to be the executing agency for the UNDP-financedSupport TA (para 3.39). Since the role of the UNDP component is merely of asupporting nature and does not cover core management areas of the project, noconflict of interest will arise between IDA's roles of lender and executingagency. IDA will contract out the implementation of this component to aninternational consulting firm with experience in planning, fisheries, ruraldevelopment and Southeast Asian countries. The selected firm will be differentfrom that employed under the Management Technical Assistance component. Thefirm will enter into a cooperation agreement with a domestic consulting firmexperienced in the same areas and with a NGO for the social support activities.For this purpose IDA will provide a list of acceptable local consultants andNGOs, in consultation with GOB. The international consulting firm will operate
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out of hired premises as Dhaka, but DO? will make an office available in theProject Coordination Cell at DOF headquarters to ensure continuous contact withproject management. Assurances were obtained that GOB will provide adequateoffices for TA staff. UNDP will be invited to participate in IDA supervisionmissions.
4.15 The cofinanciers have Indicated that the effectiveness of their TAagreements will be conditional on the signing of the IDA Credit. The signing ofTA agreements between GOB and ODA and UNDP will be a condition of Crediteffectiveness.
B. Phasing of Processing and Implementation
4.16 The project is scheduled to become effective on September 1, 1990and to close on June 30, 1996.
4.17 A detailed implementation plan for the project is presented inAnnex 10. For the two main activities, floodplain fisheries and coastal shrimpculture development, a critical path analysis has been made. This analysisintegrates the major contributions from the other project components such asResearch and Technical Assistance. The project will gain the most momentumduring Project Years 2 and 3. as shown in the expenditure plans (Annex 7);floodplain stocking will dominate the pace.
C. Monitoring and Evaluation
4.18 Monitoring will be handled through (a) the regular, management-related monitoring, (b) specific monitoring of important aspects of the projectand (c) studies which indirectly assist in monitoring.
4.19 Management-related monitoring will be handled by a monitoring andevaluation unit set up in the Project Coordination Cell of DOF headquarters(para 4.05). This unit will consist of two DOE professional staff and a localexpert under the Management Technical Assistance component. A planning andmonitoring unit will be situated at each of the divisional offices, whereinformation technology will be introduced to facilitate data processing. EachDivisional Deputy Director will be responsible to ensure that data areadequately collated, analyzed and stored, and that some of it is transmitted toDOF headquarters Project management will have to ensure that monitoringremains simple and related to its role as a management aid.
4.20 Specific monitoring will be undertaken in order to assess theimpact of stocking on fish production, catch and the distribution of the catchin the major floodplains (Annex 6). This monitoring will also provide technicaldata to use in fine-tuning the rates, size and species composition of stocking.Specific monitoring will represent a substantial effort; it will be handledunder the Support TA component.
4.21 The studies that provide indirect assistance in monitoring theproject are included in the Research (Annex 4) and the Support TA ComponentsAnnex 6).
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V. PRODUCTION, MARKETING & PRICES
A. Production
5.01 The project will result in an increase in the production of fishand shrimp. At full development, the incremental annual fish production will be42,000 tons, valued at Tk 845 million (US$ 26 million) at October 1989 prices.The public stocking of 100,000 ha of major floodplains will yield 30,000 tons(712), and 9000 ha of minor floodplains developed by the private sector, 6,400tons (15Z) and the other fisheries -- mainly ponds -- 5,900 tons (14S). Theseproduction increases are based on incremental yield assumptions as follows: 300kglhhi in the major floodplains (para 2.14), 710 kglha in the minor floodplains(para 2.30) and 1300 kg/ha from ponds (para 2.29).
5.02 At full development, the incremental annual production ofexportable shrimp will be 1,840 tons with a pond side value of Tk 202.4 million(USS 6.3 million). The annual yields of exportable shrimp will increase by 120kg/ha from combination shrimp-paddy areas within polders (12,000 ha), by 200kg/ha from exclusive shrimp areas within polders (1,000 ha) and by 100kg/ha!year from areas outside of polders (2,000 ha).
B. Markets
5.03 Adequate demand is expected for the fish to be produced under theproject. The estimated annual incremental production of fish in the project'sfinal year (FY96) represents about 5? of present annual domestic consumption.During that period the domestic demand for fish will have grown by 182 due topopulation growth alone. Growth in supply of fish from sources outside theproject will not be sufficient to meet this increase in demand. During the1980s, fish production has increased at a rate equal to population growth, butthe major source of growth -- coastal fisheries -- is considered to have peaked.Aquaculture in ponds is the second largest source of growth; it is expanding,but not fast enough to close the gap, as it begins from a small base level. Ifsupply increases faster than population growth -- a possibility that cannot beruled out completely -- fish prices will stabilize or even fall, leading to adesirable increase in per capita consumption, particularly of lower incomegroups. The project can cope with lower fish prices (para 6.22). Fish ismarketed efficiently by the private sector, and existing arrangements will beadequate to absorb the increases in fish volume, as it builds up gradually andis spread over a wide area.
5.04 The anticipated incremental shrimp production represents a head-offweight of about 1,200 tons, which is about 5Z of the present export volume.This production will be exported on the world market, where Bangladesh iscurrently a minor supplier. No problems in marketing this shrimp areanticipated, as Bangladesh is a low-cost producer (para 2.17). Shrimp marketingfrom farm to processor does not pose problems, as there are many processors withexcess packing capacity competing for raw material. Problems of hygiene alongthe marketing chain is being addressed mainly through price premiums;processors grade shrimp at the factory gate for species, size and freshness andfix their buying price accordingly. DOF extension work would assist farmers toimprove hygiene at the pond side and during transport to the collection points.
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C. Prices
5.05 Financial and economic prices of fish, shrimp and major inputs aredetailed in Annex 11. The financial price of fish is assumed to be Tk 20 (US$0.62)/kg at the floodplain or pond site. This price is lower than the currentlyobserved landing price of about TK 25 to 30 per kilogram for carp of the samespecies to allow for a potential seasonal de.line in price.
5.06 The long-term price projections of exportable shrimp have beenestimated with particular care. The pond-side price of head-on shrimp of the21-25 per pound count is calculated to be Tk 110 (US$ 3.40) per kilogram. Thisprice is substantially lower than the prices observed over the last five yearsand represents the low level reached during the first months of FY90, when themarket collapsed. Although prices have risen again since then, the long-termoutlook is still uncertain (para 2.07); this low price has therefore been usedin the calculations. Shortly before negotiations and late in FY90, GOBannounced export incentives for FY90 that were to alleviate the financial lossesexporters incurred by the price slump of July 89 (para 2.07). IDA found thesubsidies inappropriate and during negotiations an understanding was reachedwith GOB that it will exchange views with IDA on how to respond to difficultexogenous shrimp market developments, including the treatment of shrimp exportincentives, in future.
5.07 Fingerlings are the major input in floodplain fisheries,representing 50X of total production costs (Annex 12). The price of fingerlingsafter two stocking seasons when the fingerling size would be 14 cm, is assumedto be Tk 45 (US$ 1.40) per kg at the stocking site. The price includestransport and is based on currently observed market prices and futureprojections.
5.08 Shrimp fry (post-larvae) account for close to 402 of the productioncosts in shrimp culture. The price used in the financial calculations is Tk 500per one thousand post-larvae and is based on observed recent market prices ofabout Tk 300 to 400 per thousand plus a margin for increase due to changes indemand and supply. Shrimp fry can be obtained from natural riverine sourceswhich are expected to contiraue for some time. However, the price of Tk 500 perthousand also represents a level at which commercial fry hatcheries couldoperate with a comfortable profit margin. Hatchery technology is beingintroduced under the ongoing Shrimp Culture Project.
5.09 Unit costs of putblic infrastructure construction follow currentBWDB rates.
D. Financial Analysis
5.10 Financial viability of project components was analyzed usingrepresentative models. The floodplain models indicate that, as benefits arerealized within half a year of stocking, the financial cash flow is positive andattractive to the participants, even with strict cost recovery (Annex 12, tables1 and 2). The dominant models in shrimp culture -- shrimp in rotation withpaddy inside polders -- and fish ponds display financial rates of returns on thebeneficiaries capital of about 50 Z without financing and about 902 withfinancing (Annex 12, tables 3 and 6).
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VI. BENEFITS & JUSTIFICATION
A. Benefits, Beneficiaries & Employment
6.01 The major quantifiable benefits of the project will be the annualincremental production of about 42,000 tons of fish and 1,840 tons of exportablehead-on shrimp. These benefits will result in increased net incomes tosubsistence and professional fishermen, shrimp farmers, pond owners, women,nursery and hatchery operators, and their families. The export of shrimp -willgenerate annual foreign exchange earnings of close to Tk 267.9 million (USS 8.3million) or 0.7Z of the country's total FY89 exports at full development.
6.02 Additional benefits of the project include: (a) the development ofmanagerial routines for exploiting major under-utilized floodplains; (b) arevitalized and strengthened fisheries administration; (c) improvements insectoral policies; (d) further mobilization of the private fish seedenterprises; (e) increased services to special groups; and (f) improvements inequity and income distribution.
6.03 Managerial routines will be developed to allow for low-cost productionincreases on up to 550,000 ha of under-utilized floodplain resources in westernBangladesh. This can potentially provide 25Z of national fish production. Themanagerial routines could also be applied in eastern Bangladesh.
6.04 The fisheries administration will be strengthened in several ways.First, its strategic focus will be sharpened and its program made more compact -- with more immediate and achievable targets. Second, the problems associatedwith the lack of integration of the recurrent and development budget will beresolved. Third, the motivation of field staff will be improved through morerelevant work programs, better working conditions and greater delegation ofauthority. Fourth, management capabilities will be strengthened throughimproved monitoring services. Fifth, credit will be made more accessible to thesector through more and better prepared credit dossiers. Sixth, FRI and DOFinitiatives will be integrated into a system of applied research with a commondevelopment goal. Seventh, the resources of ongoing projects will be betterused; the UNDPIFAO Institutional Strengthening Project will receive investmentsupport from the project and ADB's Second Aquaculture Project will have greateruse for its bank credit funds. Finally, it can be expected that other donorswill in future employ project implementatior. mechanisms and strategies similarto those under the project, with the effect of a more consistent DOF program.
6.05 Improvement in policies will lead to increases in governmentrevenues. Project studies and covenants address ways to improve cost recoveryand to divest unprofitable fish seed farms. Other studies will provide a betterunderstanding of resources, important for future private and public sectorinvestment planning.
6.06 Private fish seed production will be enhanced by procuringfingerlings for public stocking and by re-orienting fisheries services includingextension from public to private sector production.
6.07 More attention and services will be provided to certain needygroups such as women and fingerling traders.
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6.08 Equity will be improved through the conveyance of benefits tofishermen in the floodplains and income transfers from larger to smaller landowners and operators in shrimp culture.
6.09 Directly more than 130,000 families will benefit -- 67,000 inmajor floodplains, 15,000 in shrimp culture, and 47,000 in pond culture or otherfisheries. Indirectly the country as a whole will benefit through improvednutrition and a better trade balance.
6.10 About 702 of the population living in the area of major floodplainsdepend on fisheries for all or part of its income. The density of thispopulation averages about four per hectare of stocked area; since 100,000 hawill be stocked, about 400,000 persons or some 67,000 families will benefit fromthe major floodplain activities of the project. Of these about 376,000 would bepart-time fishermen, among them many destitute women and children. About 50X ofthe incremental production of the floodplains, 15,000 tons, will go to them.The increase in income to these people, who have negligible catch costs, will bearound Tk 720 (USS 22) per year and per person in cash or in kind; thisrepresents about 14Z of their current annual incomes of about Tk 5,000 (US$155). About 24,000 persons would be full-time fishermen; with father and sonsfrequently working together, this group may represent about 6,000 families.Full-time fishermen could increase their annual incomes by Tk 3,750 (US$ 116)per person after deducting their non-labor catch costs; this would increasetheir present incomes by 75Z. Since access to fisheries is not controlled, theincrease in income could very well be diverted into increased employment oflower-income groups in the sector. Assuming that 302 of the income potentialgoes to existing professional fishermen and 70Z goes to newcomers, the project'sfloodplain component will create 12,600 new full-time fishermen jobs.
6.11 About 15,000 families owning and operating shrimp cultureenterprises will benefit from the project. This group includes about 90,000individuals. The annual net incomes would increase by Tk 4,300 (US$ 133) perfamily. Direct opportunities for increased employment through shrimp culturewill be limited. However, the investment of profits from shrimp culture in newhome construction and trade indirectly would create many new employmentopportunities.
6.12 The 40,000 or so pond-owning families in the project will increasetheir annual net income by Tk 710 (US$ 22) per family, an increase of over 7Zover their present annual income of about Tk 10,000 (US$ 309). Part-time andprofessional fishermen in the 9.000 ha of minor floodplains would benefit aswell; the annual incremental net income of some 36,000 part-time iishermen willincrease by Tk 640 (US$ 20) per person, while that of 2000 professionalfishermen will increase by about Tk 5,100 (US$ 158) per person.
B. Cost Recovery
6.13 Recovery of public sector costs of investments and operationsfinanced under the shrimp culture and floodplain components would be essentialto ensure sustainability. Below are the cost recovery measures which would beundertaken and the institutional arrangements which would be made to facilitateperiodical assessments and adjustments.
6.14 For shrimp culture the administratively most effective way torecover cost would be through a cess on shrimp exports. However, concerns have
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been raised regarding the fairness of recovering all the costs in this way,since presently much of the shrimp production comes from sources which do notbenefit from investments in shrimp culture. Additionally, if the cess is toohigh, this could result in production disincentives. Because of suchconsiderations, the cost recovery covenant under the on-going Shrimp CultureProject (para 2.56) requires the introduction by December 31, 1990 of an annualbetterment levy of TK 1,500 (US$46) per ha of improved shrimp land or throughequivalent charges for water and a cess of 0.9Z on the FOB value of all shrimpexport. This covenant will be replicated under the project. In addition, sincethis is a new recovery instrument, its effectiveness should be assessed after ithad been enforced for a period of three years. Agreement was reached with GOBthat it would:(a) carry out a program designed to recover the full cost ofinvestment and operation and maintenance of the embankments and regulatorsconstructed or rehabilitated under the project. To this effect GOB would byDecember 31, 1990 enact legislation and take all other measures necessary to setrecovery charges which will ensure full cost recovery within a 20 year period;it would make such biennial adiustments to the charges as warranted by actualinvestment and operation and maintenance costs; and improve its collectionprocedures as necessary to ensure full payment of the recovery charges; (b)review the effectiveness of the measures introduced and submit to IDA proposalsfor improvement by September 30, 1993 ; and (c) introduce such improvements byJune 30, 1994.
6.15 For floodplains it should be possible to recover much of thestocking costs. Three major cost recovery methods are being discussed: (a) theauctioning of fishing rights; (b) specific taxes at Upazila level; and (c) feeson fishing licenses. However, it should be taken into account that most of thebeneficiaries are likely to be landless or operators of minuscule farms, whobelong to the poorest segments of the population. As indicated in para 2.01,during the flood season the number of fishermen increases to 11 million, most ofwhich fish in the floodplains.
6.16 The revival, in its old or modified form, of the traditionalmechanism of revenue collection in fisheries in Bangladesh, auctioning fishingrights at district level, has probably the greatest potential for adequate costrecovery. It still exists for floodplains, rivers and other bigger fisheryresources, but the bid process has become a method of distributing fishingrights at low rates to low-income and landless groups which include alsoprofessional fishermen. As a result, the revenue recovered at present is farless than the true auction value of fishing rights. There are also grounds tobelieve that the equity impact is rather limited, since often professionalfishermen are used by wealthy individuals for access to the cheap public fishingrights. Modifications to the auction system would be necessary to improve theconcept through safer income transfer mechanisms minimizing equity distortionsand to improve its administration to allow the bid process to be fullycompetitive and reflect the benefits that can be drawn from a particularfisheries resource.
6.17 The licensing of fishermen and respective license fees havebeen introduced under the New Fisheries Management Policy (NPMP) in 1987 (para2.49). The license system, as practiced is not geared towards aggressive costrecovery, but is more intended to limit the number of fishermen to avoid over-fishing. License fees are low and do not reflect the potential benefits to thelicense holder. As indicated (para 2.49) the NFPP is in its trial phase and is
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monitored with assistance from Ford Foundation. It is anticipated that thismonitoring will outline ways to improved recovery through licenses.
6.18 The Upazilas could represent another possibility of costrecovery. It is expected that most of the benefits from stocking thefloodplains will accrue in the surrounding of the stocking location. TheUpazilas may be required to pay the cost of stocking in part or in full. Theycould finance the cost from their budget and/or additional taxes. Thewillingness of the Upazila to pay will depend on the magnitude of the stockingbenefits. If, as anticipated, the benefits would be substantial and clearlyrelated to stocking, the Upazilas are likely to be under pressure from theirconstituencies to pay, as otherwise DOF could refuse to stock the Upazila'sfloodplains.
6.19 In order to formulate a viable cost recovery policy, themagnitude of benefits from stocking the floodplains and their locations must beclearly determined. This information is expected to be available after theresults of the first two stocking operations are known, i.e. in January 1994.During negotiations agreement was reached with GOB that it would (a) submit adraft policy paper on cost recovery in floodplains to IDA for comment bySeptember 30, 1993, which defines the means of achieving at least 202 recoveryof annual public stocking costs before July 1, 1995 and 30 Z recovery beforeJuly 1995; and (b) after taking into account IDA comments, implement the agreedpolicy by June 30, 1994.
6.20 The above cost recovery steps require backing by adequateinstitutional arrangements. The analysis of the cost recovery situation,indicates the need to have a standing high level committee for cost recovery infisheries to analyze the results of studies related to cost recovery (para 3.39,Annex 6) and formulate cost recovery policies. The Monitoring and EvaluationUnit at DOF headquarters will serve as the secretariat for the committee.During negotiations agreement was reached with GOB that an Inter-MinisterialHigh Level Committee for Cost Recovery in Fisheries (including Shrimp culture),with terms of reference and membership satisfactory to IDA, would be establishedby December 31, 1992.
C. Economic Justification
6.21 The economic rate of return (ERR) of the project is estimated at 312. The project's discounted economic benefits from the incremental productionof fish and shrimp would be Tk 3.88 billion (US$ 120.3 million) at Oct.89prices. The project's discounted costs are Tk 2.80 billion (US$ 86.9 millioa).The project's net present value is Tk 1.08 billion (USS 33.4 million). Theeconomic rate of return includes all project costs -- the investment andrecurrent costs of the directly productive components such as floodplainfisheries, coastal shrimp culture and other fisheries, and the cost of theservice components such as institutional support, research and technicalassistance. Economic costs and benefits are net of taxes and transfer elementsand corrected by using a standard conversion factor of 0.8. The overall ERR isdriven by a high rate of return of the floodplain component in which benefitsarise within a short period of time. If calculated without the costs of theproject's service components, the floodplain component's rate of return is over1002. The rate of return of the shrimp culture component is 202 and of theother fisheries component 77?. The economic rate of return calculations arepresented in Annex 13.
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D. Sensitivity and Risk Analysis
6.22 The sensitivity of the ERR to changes in the parameters andassumptions made in the economic analysis was analyzed by calculating switchingvalues for the main variables. The switching values at a discount rate of 12 2are shown in table 6.1 below. The tests and the risk discussion indicate thatonly large and, in their magnitude, unlikely changes could render the projecteconomically non-viable.
Reduction of all Benefits - 28Increase of all Costs + 39Reduction in Benefits from Floodplains - 50Reduction in Benefits from Shrimp Culture -134Reduction in Benefits from Other Fisheries -118Lag in Benefits (in years) 3
6.23 The main risks are weak project management, lower than plannedyield or prices for fish from the floodplains and lack of funds for sustainedfloodplain stocking. Risks of inefficiencies in DOF management are minimized bythe strong technical assistance component and the transfer of many of themanagerial tasks to the private sector.
6.24 Yield risks in floodplains pertain to lower than planned retrievalrates of stocked fish and mass disease. The retrieval rate has beer, cautiouslyestimated at 122, taking into account natural and human predation offingerlings. The latter will be controlled by guarding of stocking sites andcontrol of fishing gear. The retrieval rate would have to fall to 62 in orderto make the overall ERR decline below 12 2. The risk of project-induced healthrisks are minimized by low stocking denst.ies and inspection of fingerlingsuppliers. The recent outbreak of a aisease called the Ulcerative EpizooticSyndrome had only a minor effect on the species of carps which will be stockedunder this project. Although difficult to measure, the effects of ahypothetical mass disease should not lead to more loss of production than 50Zover five years of the projects lifetime of 20 years or to more than 102 ofoverall production -- an occurrence which would bring the ERR down to about 25Z.
6.25 The major price risk is seasonal glutting of markets due theconcentrated harvesting season for floodplain fish. This has been accounted forin price assumptions. If such glutting occurs adjustments are expected to bemade in production from other fish sub-sectors such as ponds, where the timingfor harvesting and marketing is more flexible and production costs are higher.However, given the high rate of population growth and the fact that theproduction increases will be gradual, such risk is remote.
6.26 Sustainability of the floodplain stocking operations would beat risk, if GOB would not be able to give continued financial support and torecover the cost of stocking; intensive monitoring and studies (para 4.20; Annex6) enable viable cost recovery policy and appropriate legal undertakings (paras6.19, 6.20) minimize that risk.
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E. Environmental Impact
6.27 The project will help to redress some of the environmental problemsthat have been created in recent years and address environmental concerns inboth floodplains fisheries and coastal shrimp culture. The project'senvironmental assessment rating is B.
6.28 The areas of environmental concern in floodplain fisheries are thediversity of fish species and health hazards associated with increased movementand densities of fish. The balance of the aquatic environment and the fishpopulation has been severely disturbed by water control measures and over-fishing. The project contributes to correcting this imbalance through stocking.The fish species selected for stocking are capable of efficiently utilizing theabundant natural food sources. Three of the six species used are indigenous tothe area and three were introduced into Bangladesh over two decades ago for pondculture purposes with no deleterious effect. The silver and bigheud carps.which represent 70? of the stocked fish, feed on plankton. Since there is moreplankton available than is needed to meet their needs, the two species are notlikely to challenge fish now in the floodplains. The project also provides forsubstantial monitoring of production and biological effects, and research thatwill lead to a better understanding of the floodplain environment (Annexes 4 and6).
6.29 The project will reduce health hazards by increasing the trade offingerlings from nurseries. The careful control of hatcheries, nurseries andstocked fish by the inspection system under the project is likely to prevent theoutbreak of disease or help to limit the impact if one does occur. The stockingdensities in floodplains are not likely to be high enough to promote disease.Although not favorable to the project, the population of predatory fish in thefloodplains is likely to increase in response to the availability of prey.Furthermore, the escape of stocked fish from the floodplains will enhance thepopulation of fish in the rivers.
6.30 The potential environmental concerns in shrimp culture couldpertain to effects on agriculture, coastal mangrove forests, and the naturalstock of shrimp. The project will intensify shrimp culture. However, the areato be developed is, except for a few hundred hectares, already under shrimpculture. In the shrimp/paddy environment, the effect of intensification will bepositive for agriculture. The improved water management infrastructure willhelp to control the intrusion of saline water into non-shrimp agriculturalareas, flush salinity in preparation for rice cultivation, and supportirrigation for paddy. The participatory approach will insure that the interestsof agriculture are balanced with those of shrimp culture. The mangrove land inthe project area is clearly demarcated as Sundarban Forest Reserve. The projectdoes not encroach on this land but improves shrimp culture in an area whereshrimp culture and paddy cultivation have been practiced for many years. Sincethe Sundarbans are a vast protected nursery ground, the development proposed inthe project is not likely to seriously deplete the stock of post-larvae shrimp.A more important limiting factor in the future is likely to be the increasedpressure on offshore adult shrimp due to commercial trawling.
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F. Effects on Women in Fisheries
6.31 The project introduces important innovations in the country'sfisheries administration, with respect to gender issues. The project createsWomen in Fisheries cells at DOF headquarters and divisions (paras 3.32, 3.33),assists these cells through TA in studies and the formulation of programs (Annex6) and provides program funding (para 3.29). The task of these cells is also toassure that extension messages and methodology, and credit are geared to theneeds of women in fisheries, whether they are spouses of professional fishermen,full- or part-time fisherwomen themselves, pond operators or collectors of fishand shrimp fry or in other ways linked to fisheries. It is difficult, at thisstage, to quantify effects of the project on women in fisheries, because thelack of precise data them does not allow the formulation of quantifiabletargets. The project will, however, enable the fisheries administration toimprove its knowledge about women in fisheries and address specific issues.
VII. AGREEMENTS AND RECOMMENDATION
7.01 Agreements have been obtained from GOB that:
(a) Project activities not defined in detail at appraisal and changesin the project will be subject to agreed criteria (paras 3.27, 3.29and 3.24);
(b) Plans for DOF training institutes anc headquarter units and projectrelated budget plans of selected DOF units (para 3.32), and a planof FRI's research station (para 3.' ) will be submitted to IDA forapproval;
(c) Staff of the Shrimp Culture Project in Khulna Division will betransferred to the project (para 3.33);
(d) GOB will form an inter-ministerial committee on divestment ofpublic hatcheries and implement its recommendations (para 3.34);
(e) The DOF units and posts at headquarters and the divisional levelwill be staffed as per paras 4.06 and 4.07;
(f) DOF will transfer one fish seed farm in a suitable and centrallocation of western Bangladesh to FRI (para 4.10);
(g) DOF will provide adequate office space to Technical Assistancestaff (para 4.14);
(h) GOB will carry out and improve cost recovery for the shrimp culturecomponent (para 6.14);
(i) GOB will draft a policy paper on cost recovery in floodplains andimplement the policy agreed with IDA (para 6.19);
(j) GOB will establish an inter-ministerial committee for cost recoveryin fisheries (para 6.20).
7.02 The following will be conditions of effectiveness:
(a) Approval of Project Proformas by GOB (para 3.43);(b) Allocation of US$ 2.2 million for the project in the FY91 ADP (para
3.44).(c) Creation of one coordinating committee at central level and of
three coordinating committees on divisional levels (para 4.02);(d) Appointment or designation of the head of the DOF Project
Coordination Cell, the Dy. Project Director Faridpur, the BWDB
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Executive Engineers and the delegation of powers of ProjectDirectors to the Divisional Deputy Directors, as per paras 4.06,4.07, and 4.11;
(e) Signing of the co-financing agreements between GOB and ODA, andbetween GOB and UNDP (para 4.15);
7.03 The submission of a staffing plan (para 3.31) will be a conditionof disbursement.
7.04 With the above conditions and agreements, the proposed projectconstitutes a suitable basis for an IDA Credit of SDR 34.6 million (USS 44.6million equivalent) on standard IDA terms with a maturity of 40 years. TheBorrower would be the People's Republic of Bangladesh.
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, PRO
Key Data PFisherlse Sector
it" Yer it Bangladesh Project Ares
Peofiufition 1098849 i llon 118 6S 8O1979-80 Mi li in 87 40 461970-71 11i llion 87 26 TO
Azm 000 Oqk- 124 6t2
90P Fisheries HilIion T. 1S09 6894 5STotel II il liont Ti 480237 288628 oSFieheries in Total 2 2.9 2.1
Admini-tration Divisions No 4 2.8 186DiOtricte No 64 S 7i87Unand 1, o 460 244 ES
FrOf lo.1l Inland 000 8i 328 38Karin* O 2 45S/Total f t 31
Ftish/Rive Price iptua 12/iui/R;ce 1978 ratio 2.6 2.2 79
19809 ratio 8.0 8.8 69Hi tla/Rice 1978 ratio 1.6 1.8 i1S
1989 ratio 8.2 8.8 108
Dom, Demand for Fish tt 2000 000 t 115 n.s n.a2010 000 t 1400 n. n.a
Fitnri¢o f eort IQ/Sh rip 1979-0 000 t 8 9 60
19087-8 000 t 18 9 601988-89 000t 416 9 871970-S0 hil lI on Tk. 470 280 591987-88 R;i #on Tk 8610 2160 591968-8 N tl ion Tk 8810 2170 87
Fish and other 1979-80 000 t 3 2 601987-88 000 t 9 4 461988-89 000 t 9 581979-80 Ill ion Tk 102 6 661987-88 htll Ion Tk 980 440 471988-89 Million Tk 910 700 77
Total 1979-80 000 t 8 S 621987-ea 000 t 24 1a 841968-89 000 t 28 14 561979-80 hi l ion Tk 872 848 601987-88 Million Tk 4540 2600 571988-49 hM I I ion Tk 4720 2870 60
- 44 -
Stem I unit Ibneladesh Project are-
Sitot MaeStf pr+i lb 126 n.c n.s- Support tl 88 n.e nne
S/Totl b 4 1e.j n, 0.5Olvisolns Otet-ten ; tX S ~ ~ ~ ~~~~~~~~4 a 24
- Suport lb1
Oiotricts- tolnt o270 70 2 26
TOTAL S4NOWPOINom2Vehicles NO .18
Total ND lb 1/Vatcheries lb 108 es elTruii;o Inatltute Nl b 4
UDj;Is Fiehr Staf_ ProieaslonlI NO 40
poort Nl 4ITotal lb S a 8
Jalmahala f(ish-ery Rimhtwh tb tOlU1 5.161 St
Irin ' T pture Floodplain. 000 he 2.00 1.478 62Rivers f/ X000 ha 1.0=1 69 69
Sundarban 000 ha It0 550 100Seatl @o0 ha 114 40 96Kaptal lake 000 ha _Sfotel OCO he 2.a4 60
Culture Fih pos" 0O0. 'e t fomt; IlIlion 1.8 4.6 48
Shrimp Dond 000 ha 94 94BAmo/osbow lake 000 ha 6 6 100S/Total 00 he 247 18 72
S/Total Inland am he 4.845 2 944 68Marine Industrial 000 ha 6.514 3.014 46
Artisana, 00 ha 5S/Total abrino 0 W4 49
Total Fisheries 000 ha 14,842 7 940 63
Hatcheres A Fieh Se"d Fara VPri vate Mo I 500 SO 80
Tota l; cOY I 62PMli I tI7 I d
Public hatcheriee t 2 1 Natural eores s o6
Fintirlioa ProductionwL r vote nursr million @O.0 426.0 64lovernmnt nurseries million Sit
Total 11 i ;on i4Fishing CraftNon mechan. Intend 000 141 49 85
Pori"e 0soS/Ttal 000 _6
Mechanized Marine (Industrial) No l2 21 40Marine (Artisanal) lb sOS/Total "a 49
Note : Untls otherwise stated. the date refer to 1987/58 and rely on bangladesh 'ureau of Statistics. The project area is on eastof the laaunc river of bangloadeh.j ~ Mission estiante.
Includes 75 prof.eaional and 210 support staff at DOV Iq under ADP. The vehiles include only those under the revenuebudgt. Under devlepxmet projects theer are 1S jeeps 16 pickup-. 1 car and 31 mtorcycles so for reported.Sourc COF. Rivers lncludes estuarie excludine Sunderts.Pish production includes shrimp capture form inland *nd mrine sources which amounted to 8,O000 t and 16,000 t respectively.20.000 t and 9.0 t tore from the project ara. With the pro4uction from culture, the total shrimp production amounted to70,000 t sith 49 000 t fr, the prjelct *resc
/ Consuption equals production.ssumsptIons: 2.4S annual growth ot population.
/Source DOF. 196687 report of 8S.Source OO.
_Asausas 260 orIng d per year.Source EPdPr. vilha l 19W6 flurSource: Oxp rt_ient of gIculture Karing. The fixh price under "bpnglodesh' is the hokte wholesale fish morkt price.Th fish price fior tUe proJect ar e th Rajehhi ton whole sale market price.
1/ The fish opric/ ric price ratioi-t result of dividing fish *holeele price/kg by the rice (mdium qunlity) wholesslepr;ce/kg in rectiv ret..
- 45 -
Annex 2Page 1
BANGLADESHTHIRD FISHERIES PROJECT
Major GOB Fisheries Development Programs
1. Major development programs relevant to TFP the Second AquacultureDevelopment Program of ADB and the DOF Institutional Strengthening Project ofUNDP/FAO; they are described below. Others are the Beel and Boars, theIntegrated Fisheries Development and the Parbatipur Projects. The ShrimpCulture Project has been described in the maintext.
2. The ADB assisted Second Aguaculture Development Program is a majorfisheries development program in the country and in the TFP project area. TheTFP plans to cover its shrimp and fish culture credit from this source in theinitial years. The ADB project focusses on carp and shrimp culture in ponds,stocking floodplains in the north eastern part of the country, the developmentof public hatcheries and the provision of extension staff and facilities inselected districts. A credit agreement overing Tk 1,400 M (US 43 M) was signedin 1987 and became effective in 1988; the project was planned to close in FY92,but will most likely be extended, as substantial project activity had not yetstarted at the time of appraising the TPP. The delay was over issues inconsultant procurement. Activities are now planned to start during the secondhalf of FY90.
3. The project includes a 27 Million USS credit component of whichADB would finance 20 million. A banking plan has been agreed upon in March 1989and the participating banks are Agrani, Rupali and BKB. The credit wouldfinance shrimp culture and carp culture. About US $ 20 million or 75Z areearmarked for medium-term credit for shrimp culture and the rest of 25? for carpculture. For shrimp culture out of the four selected districts three are withinthe TPP project area (Khulna, Shatkira, Bagerhat) and the totality of the shrimpculture area under TFP is thus covered. Credit for shrimp culture would finanpeupgrading of ponds, construction of new ponds, hatcheries, nurseries and frydealers. The eligibility criteria a wide and allow the full use of the creditfunds by TFP (total medium term credit requirement in shrimp culture of theorder of US$ 4.0). The ADB project also provides credit for carp and otheracquaculture development in 21 districts of the 37 districts in the projectarea. As the participating banks of the ADB project are also active in otherdistricts and problems of credit are not lack of funds of bank, refinance forcredit for aquaculture under TFP can be expected, subject to good extension andcredit preparation. The medium term credit requirements for other fisheriesunder TFP are of the order of US$ 2 million.
4. The Institutional Strengthening of DO? Project (UNDPIPAO)has acost of Tk 93 M (US 2.9M); the project duration is four years; the projectbecame effective in late FY89. It follows from the 1986 IDAIUNDP DOFinstitution study started (para 2.38). It aims at improving management of DOFthrough preparing an organisation cum-implementation plan, developing atraining program, supporting pond and fresh-water shrimp culture throughdemonstration and staff training and through improving selected public fish seedfarms. The project provides 225 MM of international and 261 MH of nationalconsultants. Its present closing date is June 1992, but it will most likelylast til April 1993.
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Annex 2Page 2
Fiancial links to the TFP are TFP's allocations for the rehabilitation oftraining facilities of DOP, at a level estimated by the project leader. As bothaim in their own and complementary way at institutional improvement of DOF andas the UNDPJFAO project would reach full swing before the TFP even starts, theTFP will be able to incorporate many useful proposals into its program.
5. The Beel and Boar Small Scale Fisheries Proiect is the IFADDANIDA/WFP financed successor to the IDA supported Oxbow Lakes Project. It isactive in the districts of Jessore, Jenaidha and Faridpur, all in westernBangladesh, and covers about 2,200 ha dispersed over some 35 lakes. It willencourage pond and cage culture on a limited scale. The total projectexpenditure is about Tk 310 M (US 9.5M). Project activities have just startedand are programmed to finish in FY95. There will be limited need for TFPactions in the above districts, as they are covered by this project. Therewill, however be a need of coordination between both projects via the Directorof Fisheries, the Project Director of this project and the Divisonal PD Khulna.
6. The Integrated Fisheries Development Project, financed solely byGOB, is a country-wide operation aiming to create 60 public mini-hatcheries inthe Upazilas and 7 public regional hatcheries, to stock selected floodplains andto survey all public water bodies in the country. Fifty percent of themini-hatcheries and three regional hatcheries are planned for Western Bangladesh(Barisal, Bogra, Rangpur). The project expenditure is estimated at Tk 400 M (US12.3M). It started in FY88 and its planned completion date is June 90. So farthe project has progressed slowly.
7. The Parbatipur Hatchery & Fish Seed Multiplication Project with atotal cost of about Tk.92 M (US 2.8) is supported by ODA. It planned todevelops one major public hatchery in Dinajpur and supports extension activitiesin the the districts of Dinajpur, Takurgaon and Panchagarh. It started in FY87.The project is currently under review by MFL/DOF and ODA.
- 47 -
Annex 3Page 1
BANGLADESHTHIRD FISHERIES PROJECT
Criteria for the seleccion of activities to be financed under the IDA Credit
Background
1.01 The following criteria apply to all activities to be financedunder the project. In particular they apply to activities to be financed underthe other fisheries component. The aim is to increase flexibility in projectimplementation and planning, while ensuring that institutional and sectoralpolicies and strategies are adhered to.
Criteria
1.02 An activity eligible for financing under the IDA credit would
(a) Comprise public sector support to fisheries activities of the privatesector, including NGO's;
(b) Not increase the number of permanent civil servants;
(c) Focus on the project area or have a national focus;
(d) Improve income distribution and promote small scale operations and thedisadvantaged;
(e) Be environmentally sound and sustainable;
(f) Be economically and financially viable, i.e have economic rates ofreturn of not less than 12Z and financial rates of return of not lessthan 25Z;
(g) Not duplicate other fisheries development efforts;
1.03 An explanation of each criterion follows. The initial letterrefers to the numbering of the criteria in para 1.02.
(a) Public sector support activities are defined as policy formulation,planning, infrastructure development, research, training, extension andregulatory activities in support of private sector activities infisheries production, processing and marketing as well as in fisheriesrelated input production and distribution.
Fisheries is defined as involving inland, estuarine and marinefisheries, capture as well as culture fisheries where fin fish and shellfish are produced.
Financial support activities to the private sector would only be throughcredit; it would be handled by banks and ,to a limited scale, by NGOs.
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Annex 3Page 2
Support activities with prime impact on other sectors, but with onlyindirect and limited impact on fisheries, would be excluded.
Excluded from financing would be commercial public sector production anddistribution of fish and shrimp, of seed and other fisheries inputs, ofcommercial output processing and marketing of fish and shrimp by thepublic sector. Only activities of a limited scale and number which areindispensable for research, training and extension, or of nature notpermitting adequate recovery of investment or operation costs by theprivate sector, such as in the case of stocking major flood plains,rivers or marine waters, would be eligible. The finance packages underthe 'Other Fisheries' component would thus not support production inpublic ponds or waters or fish seed farms and shrimp hatcheries, unlessthey are leased or transferred in some way to the private sector orNGOs.
Activities promoting the transfer of activities or assets from thepublic to the private sector would be eligible for financial supportunless they conflict with other criteria such as (d).
(b) The intent of the restriction on numbers of civil servants, is that theImprovement or expansion of support services would rely largely on thegreater efficiency of existing public services and the use of temporaryemployees and consultants (private sector or NGOs).
(c) Activities outside the focussed project area should be of nationalinterest and not of prime interest for other parts of the country.
(d) Support activities would be designed to promote primarily small-scaleproducers and the disadvantaged such as the landless and women.
(e) The environmental impact of the activity would be assessed by abiologist at the Project Director level; in cases of significantenvironmental impact ..here would be referral to NFL. Directives ontheconduct of environmental impact studies for sensitive areas will beprovided by IDA separately.
(f) Economic and financial viability would be checked with the usual toolsof economic rate of return analysis and financial analysis coveringfinancial sustainability at GOB budget level as well as financialviability for beneficiaries.
- 49 - ANNEX 4Page 1
BANGLADESH
Third Fisheries ProjectResearch Component
Terms of Reference
I. INTRODUCTION
The project research component's objective is to receive directresearch support from FRI, to involve the institute in the project area byengaging it in themes important to the project and to prepare thus forresearch needs which are likely to emerge in the follow-up project.
FRI current five year research master plan covers a wide range ofresearch topics and includes some which are of direct interest for theproject. Current focus is strongly towards pond fish and shrimp culture,already covering areas which are of direct consequence to the project.However, areas important for the fisheries development program in WesternBangladesh such as floodplain fisheries and coastal fisheries are not yetcovered. 'While FRI is present through its stations in other areas of thecountry it is absent from the North West (Rajshahi Division) despite theexistence of important fisheries resources and area specific problems there.
The project would assist FRI to establish a field research stationin the Rajshahi Division. As to actual research the project would focus onthree floodplain, and one coastal, fisheries themes. For floodplainsresearch, it is planned to complement the monitoring exercise under theSupport Technical Assistance (STA) component which aims at providing theessential yield, socio-economic, hydrological and landuse data. The FRIresearch would add information on parametres influencing the production suchas fish food, fish disease and fishing gear. The combined information wouldlater be utilized in production modelling studies with aim of improving theunderstanding of the fish production process in relation to basicenvironmental parametres. In coastal fisheries FRI would look at basic catchand effort parametres of inshore and estuarine fishermen.
Research themes are kept few and methodology simple. This takesinto account that FRI is young and only began to function in 1986. Care hasbeen taken not to duplicate other ongoing or planned work by the institute andto avoid influencing the structure of FRI in a way that could be incompatiblewith its future plans. Consequently, it is proposed that project research isconducted only with existing or contracted staff.
II. FISH FOOD IN PLOODPLAINS
Background Fish production in the stocked floodplains depends on theconversion of nutrients contained in flood water and soils through a chain ofphytoplankton, zooplankton, bacteria, benthos and macrophytes. An estimationof the production and conversion of these fish food sources will permit moreeffective stocking and prediction of stocking requirements and fishproduction. There is practical experience that the waters of floodplains are
- 50 -ANNEX 4
Page 2
generally rich in food sources and highly productive but there is littleunderstanding about the biological processes involved. Consequently, planningfor stocking both in terms of priority areas for stocking remains crude andthe stocking densities and species composition empirically determined. Thereis a need to create information about the basic environmental parametersinfluencing food availability in floodplains and this is conveniently done inthose floodplains which the project proposes to stock.
Oblective To create information on fish food availability in floodplains.
Scope and Timing
The basic parameters to be covered by FRI are seasonal fish foodavailability of each initially stocked floodplain in relation to water andsoil characteristics. In each floodplain sampling stations reflecting themajor sub-zones would be selected, regular samples taken and analyzed. Ineach floodplain a field team consisting of a biologist and 3 researchassistants would be stationed for a period of three years. They would operateout of hired premises in the vicinity and this would also house a simple fieldlaboratory.
For fish food, weekly samples would cover phytoplankton,zooplankton and benthos for which analysis can be done in the field lab.Every month during the flood season bacterial abundance would be analysed inrelation to phytoplankton in the Mymensingh lab or another nearby lab with ahigh speed centrifuge. A monthly sample of macrophytes would also be analyzedin the field lab. Monthly sampling of stomach contents of major carps caughtin the floodplains would be carried out and analysis undertaken in the fieldlab.
Water would also be sampled weekly at the same stations andanalyzed in the field for turbidity, temperature (top, mid, lower watercolumn), hardness, pH, anmonialnitrite levels, dissolved oxygen, carbondioxide.
Soil from the area of the sample stations would be analyzed priorto the flooding season. The sample would cover top- and sub-soil and beaccompanied by a description of the natural environment. Analysis would bemade for texture, composition, organic matter content, pH, nitrogen, carbondioxide levels and phosphates. Sampling and analysis would be done by a soillab hired by FRI.
Under the STA component provision has been made for supportingadvice and reference. Annual reports would be prepared by FRI and circulatedamong the interested parties.
Fieldwork would begin in February 1991 and continue up to February1994 and would thus cover the flood season preceding first stocking and thentwo stocked seasons.
Costs will include FWD vehicle, equipment, reagents, field baserent, boat hire and operating expenses.
Administration The task would be implemented by FRI.
Outputs Data on fish food availability that can be used in laterproduction modelling;3 annual reports;FRI involvement in floodplain research.
III. FISH DISEASE IN FLOODPLAINS
Background Little is known about the occurrence of fish disease infloodplains and its implications for large scale stocking programs. It istherefore necessary to establish a basic knowledge about the types of disease,their occurrence and effects on fish in floodplains.
Objective To obtain information on fish disease in floodplains.
Scope and timing The activity would consist of sampling fingerlings stockedand fish landed throughout the fishing season on a monthly basis and moreintensively if a disease outbreak is reported. Research would start inOctober 1990 and end in March 1994. It would be undertaken in the threefloodplains selected for initial stocking. The task would be handled by asenior fish pathologist operating out the FRI HQ at Mymensingh and wouldconcentrate on fieldwork and lab. analysis for 7 months/year and writingduring the rest of the year. FRI would report annually and the specialistwould available to project management for advice.
The STA provides for external expert advice and support to thisactivity. Costs include a FWD vehicle, equipment, reagents, boat hire andoperating expenses.
Inputs
3.5 MY 1 senior Scientific Officer3.5 MY 1 lab technician
Administration The task would be implemented by FRI.
Outputs Information on fish disease in floodplains that can be used inproduction modelling and management;Three Reports.
IV. FISHING GEAR
Background Successful stocking of floodplains will require measures to limitpredators and to protect early growth stages of stocked fingerlings fromfishing pressure eg. guarding, net mesh size restriction. There is a need toestablish a rational basis for such measures. In particular, gill nets are
- 52 - ANNEX 4
Page 4
blamed for the high mortality of small fish; the selectivity by species andsize, of this and other fishing methods, should be tested before partial orcomplete banning. Information will be required on alternative methods whichwill allow fishing to continue for other species.
Obiective To understand the impact of fishing gear on fish populations infloodplains.
Scope and timing The activity would cover the full fishing season of one ofthe first stocked floodplains. The approach would be to sample fishermens'catches for the species composition and size distribution in relation to thefishing gear employed. Costs would include equipment, travel and operationalexpenses and contingencies.
Inputs
0.75 MY; 1 Senior Scientific Officer;4 MY; 5 Research Assistants for 9 months
Administration The task would be undertaken by FRI.
Outputs A report on the selectivity of the various fishing gear infloodplains;Reduced losses of stocked fish.
V. COASTAL FISHERIES
Background Coastal fisheries are important but not well known. This lack ofknowledge hinders development under the Third Fisheries Project. It isnecessary to start collecting information whilst build-up FRI experience incoastal fisheries. A descriptive overview survey of the fisheries activitiesaround Dubla Point would serve this purpose together with information gatheredby others (DANIDA, UNDP/Sundarbans; Bay of Bengal Project). The survey wouldfocus on inshore and estuarine artisanal fisheries and concentrate on the fishlandings and the fishing craft and gear employed.
Scope and timing Two SSOs would be based in Dubla throughout the fishingseason to record landings and numbers of fishing craft, details of fishinggear and approximate estimates of the composition of the catches. Groundobservation would be supported by some aerial reconnaissance of fishingactivity. This exercise would start in October 1992 and continue for threefishing seasons to encompass variations. STA would provide advice and supportfor study design and implementation. Costs include minor equipment, travel,operating expenses and contingencies.
Inputs
4 MY; 2 Senior Scientific Officers 8 months each/ year
Administration Implemented by FRI
Output Three reports on the Dubla fisheries.
53 - ANNEX 4Page 5
VI. UNFORESEEN RESEARCH
During the implementation of the project additional themes forresearch may become important eg. fingerling production and transport, shrimpbroodstock and post larval abundance and fish supply/demand. As of PY4, US$50,000/year will be allocated for this unforeseen research. FRI wouldidentify and plan these studies according to priorities in consultation withproject management.
VII. RESEARCH STATION
In PY2 and PY3 The sum of USS 150,000 vill be allocated in each PY2 andPY3 allocation for development of the research station in the WesternBangladesh. FRI will be responsible for producing the plans for thisdevelopment.
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Annex 5Page 1
BANGLADESHThird Fisheries Project
ODA Technical Assistancefor Project ManagementTerms of Reference
I. INTRODUCTION
1.1 The Third Fisheries Project is a large project with a variety ofobjectives and innovative features both technically and administratively. TheManagement of the Department of Fisheries (DOF) continues to be weak,particularly in program and project management, and is in need of support. Tofurnish this support, ODA would provide management-orientated technicalassistance (MTA) via an experienced consulting company which would hireexpatriate and local staff.
1.2 The MTA would focus on advising DOF in the implementation andmanagement of the project according to the schedule and conditions laid down inthe IDA Credit agreement. It would provide management-specific training inorder to ensure a smooth takeover of management duties by DOF at projecttermination.
1.3 MTA would be deployed in management at DOF headquarters andDivisions, at critical decision-making points for the project. A core of long-term advisors would provide continuity in training and short-term local whileforeign consultants would assist with specific technical and managerialproblems.
1.4 The consulting firm would bp selected by ODA, London, inconsultation with GOB. It would then select and manage its own expatriate andlocal manpower. It would also appoint a locally based firm to certify thedelivery of fingerlings and would be responsible for seeing that the local firmsatisfactorily fulfilled its obligations.
1.5 In addition to its responsibilities to the counterpartorganization DOF, the consulting firm would report to ODA. ODA would providefunds for project vehicles, equipment, operation and maintenance costs, localstaff and local expenditures. ODA would participate in the regular supervisionmissions of IDA. Furnished offices would be provided for the firm within DOFheadquarters and at the Divisions.
II. DOF HEADQUARTERS
2.1 General
The Third Fisheries Project will be implemented by the DOF under theoverall responsibility of the Director of Fisheries, who will have directresponsibility for executing the floodplain stocking program. The Director ofFisheries will be assisted in this task by an Coordination Cell containing
- 55 -Annex 5
Page 2
eleven DOF officers and one senior officer. TA would be provided by 2expatriate long-term advisers (86 mm) and 3 local long-term advisers (132 mm)over a period of 5 years. The expatriates would include a senior projectmanagement advisor, who would also serve as the team leader for the executingconsulting firm, and a procurement advisor. Local consultants would includespecialists in monitoring/evaluation, computer services, and procurement. Theteam leader would have the flexibility to call upon an allocation of 20 mm ofshort-term expatriate consultants and 30 mm of short-term local consultants overthe five-year period of invclvement in the project. Two special areas havealready been identified: (i) training and advising the DOF fingerling supplyinspectors in Project Year 1, and (ii) participating in the project preparationmission in Project Year 5. Any remaining short-term man-months would be used toresolve previously unidentified technical oL management problems. The ODA-appointed consulting group would subcontract a reputable local inspection andcertification firm to provide independent certification of the fingerling supplyunder the floodplain component of the project.
2.2 Senior Project Management Advisor
Background All project decisions will be prepared for the Director of Fisheriesat the Project Coordination Cell. The cell would have to maintain permanentcontact and collaboration with other DOF headquarter units -- particularlytraining, planning, extension, and administration. The cell has been conceivedto eventually be phased out and integrated into the new DOF headquarters afterit is reinforced through the UNDP/FAO Strengthening Project.
Scope and Timing
The senior project MTA manager would be required to spend 52 man-months ofresidential service in Bangladesh over a period of 5 years beginning inSeptember 1990. The manager would assist and advise the head of theCoordination Cell and simultaneously head the MTA team. In his or her advisorycapacity to DOF, the manager would advise on all project matters, focussing onorganization and management issues, including policies, planning of strategies,monitoring and evaluation, management and training of DOF and TA staff,accounting, and floodplain stocking. As team leader, the manager wouldcoordinate and represent at the central level other long-term and short-termconsultants within the ODA contract, report on team matters and project progressto the parent firm. As a side function the manager would advise British Councilon the selection of candidates to receive project-related TC training awards andassist in coordinating official requests for overseas training.
Profile
The MTA manager should be between 40 and 55 years of age and have considerableexperience at the management or project director level, both in public andprivate sector operations; have more than 10 years experience in developingcountries; possess exceptionally good planning, personnel and financialmanagerial skills; have the ability to operate under difficult conditions withdiplomacy and tact yet show firmness and resolve on issues critical to projectsuccess.
Experience in and understanding of fisheries and aquaculture development andtheir management would be an advantage, but a strong inclination to comprehend,
- 56 -Annex 5
Page 3
debate and resolve the special technical problems involved is essential. Theability to clearly define priorities and objectives is also important.
2.3 Procurement
Background The procurement of goods and services has always been a majorproblem in past fisheries projects, and the success of the Third FisheriesProject will depend on efficient procurement. The large scale procurement offingerlings is especially critical because it is a core component of floodplainfisheries and is a novel undertaking in Bangladesh. It is therefore essentialthat good technical advice be readily available for DOF procurement staff.Procurement advice is especially needed in the early stages of the project whenthe first lots of fingerlings and the bulk of the equipment are being procured.Long-term MTA would be provided by an expatriate procurement advisor and a localprocurement assistant. They would work in the Coordination Cell and assist thetwo DOF headquarters staff and the d'visional project directors. Sheat-term MTAwould be provided for two special functions which are associated with successfulprocurement: (i) the training and advising of DOF fingerling supply inspectorsand (ii) an independent fingerling supply certification system.
2.3.1 Expatriate Procurement Advisor
Scope and Timing The expatriate procurement advisor would spend a total of 34man-months of residential service over a three-year span commencing in September1990, the expected starting month of the project. He or she would advise on allaspects of DOF project procurement according to World Bank and GOB guidelines.which training counterpart staff on the job. Items to be procured include carpfingerlings and stocking services, civil works, consulting services, andequipment. In addition to advising on procurement, the advisor would also signoff on tender documents, selection protocols and contracts that have to bereferred to IDA.
Profile The advisor should be 35-55 years of age and have at least 8 years ofexperience in designing and handling major procurement operations in developingcountries; experience in fish culture would be an advantage. He or she shouldhave: a dynamic approach to problem solving and be able to exercise considerableresolve in difficult situations; a good grasp of public sector and donor agencyprocurement procedures but have the ability to generate ideas and propose waysto overcome bureaucratic bottlenecks; an ability to communicate decisions firmlyyet tactfully; some linguistic ability, as he would be required to learn someBengali; willingness to train and supervise local staff and consultants.
2.3.2 Local Procurement Assistant
Scope and Timin8 The local procurement assistant would be required for a totalof 51 man-months of service over a four-year span commencing in September 1990.The assistant would report to the Procurement Advisor and assist in all aspectsof project procurement, especially with advice on local practice and conditions.The assistant would be capable of training, orienting, and supervising others.He or she would have to travel extensively and maintain communications at thelocal level.
Profile The assistant should be 35-55 years of age and have at least 8 years ofexperience in procurement for industry and development projects in Bangladesh.
- 57 -Annex 5Page 4
Some experience in fish culture would be an advantage. He or she should bedynamic and have a good grasp of public sector and donor agency procurementprocedures.
2.3.3 Training Specialist for Fingerling Stocking Inspectors
Scope and Timing The local specialist for training fingerling stockinginspectors would be required for 2 man-months during March and April 1991. Heor she would report to the Procurement Adviser and assist: in designing a DOFfingerling inspection system for the DOF and training DOF fingerling inspectors.Training would cover the estimation of quantities, sampling for fingerling size,species composition, vitality, and freedom from disease. He or she wouldconcentrate on instilling a rigorous working method and reporting system withthe inspectors. Ultimately this person would report to project management onthe suitability of individual inspectors for the task.
Profile The training specialist should have at least 8 years of experience indealing with carp farming in Bangladesh, with both the private and publicsectors. He or she should be familiar with carp hatchery and nursery operationsand very experienced in the transport and distribution of carp fingerlings. Heor she should be assertive, dynamic, thorough and practical in approaching thetask.
2.3.4 Stocking Certification
Scope and Timing A locally based firm would be subcontracted to provideinspection and certification services for the fingerling quantities deliveredand stocked by contractors in floodplains. The firm would be retained on thebasis of a percentage of the stocking contract, amotinting to about 0.5Z offingerling stocking costs. The services would be required for about 2 weeks peryear, between June 15 and July 1, depending on the onset of the flood season,for 3 years. The purpose of the system is to provide independent certificationof the quantities delivered in order to validate contractors' claims for paymentand to provide a countercheck to DOF's fingerling inspection system during itsformative years. The firm would provide certification and reports to projectmanagement at DOF headquarters; these documents would be made available to IDAand project evaluation missions on request.
Profile A reputable, internationally-recognized local inspection andcertification firm, such as those employed in export and insurance, wouldundertake the task. For ease of administration, the firm would be sub-contracted by the MTA Consultant, who would advise ODA and IDA on the choice ofappointment.
2.4 Monitoring
Background Monitoring and reporting has been a problem in past fisheriesprojects. DOF lacks these skills because project staff have been absorbed inimplementation tasks. Because the Third Fisheries Project emphasizesmonitoring, MTA in the form of a long-term monitoring specialist is required tosystematically introduce the proper working methods and skills. These skillsare already available in Bangladesh but public sector remuneration dissuadesskilled professionals from entering public service. The MTA temporarilyacquires them for DOF through consulting services.
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2.4.1 Local Monitoring and Evaluation Assistant
Scope and Timing The local monitoring and evaluation assistant would begin workin October 1990 and continue working for 51 man-months over 5 years. He or shewould be responsible to the Senior Project Management Advisor and would advisecell in all matters concerning monitoring and reporting. Working in closecooperation with the computer specialist, the assistant would help to set upthe PC and database system to monitor production and project performance atheadquarters and in the Divisions. He or she would help to establish a systemfor monitoring project performance through physical and financial targets,provide feedback on project monitoring and evaluation procedures to the DOF, andorganize regular in-service training for DOF staff on monitoring, statisticaland computing techniques.
Profile The monitoring and evaluation assistant should be between 30-40 yearsof age, have previous experience and proven ability in the monitoring andevaluation of development projects at the management level, in project planningand in monitoring small-scale rural operations in developing countries. He/sheshould have knowledge of PC computer systems and databases, analysis of data,basic statistical techniques and report generation, and should be able totransmit statistical information in a clear manner. He or she should be capableof training, guiding and supervising staff and be willing to travel extensivelyin rural areas.
2.5 Computing
Background DOF is in the process of installing PC-based work station services.The project will procure and install a number of compatible units. The use ofsuch equipment is limited at present by a general lack of computer know-howamong DOF staff. Staff will have to be trained and equipment installed andserviced; this calls for technical back-up.
2.5.1 Local Computer Advisor
Scope and Timing MTA would provide a total of 30 man-months for the services ofa local computer specialist over a five-year span commencing in January 1991.The specialist would report to the Senior Project Management Advisor and wouldassist DOF in installing, making operational and maintaining the PC computersystem for project purposes; training, orienting and supervising project and DOFpersonnel in computer use; and advising on appropriate software packages, thedesign and installation of the project monitoring database system, and computersuppliers and service agents.
Profile He/she should be 30-40 years of age; have at least 5 years of experiencein PC computers, word processing, spreadsheet, database, accounting and othermanagement software; have a dynamic approach and show initiative in problemsolving.
III. DIVISIONAL DOF OFFICES
Background DOF's Divisional Deputy Directors will directly manage a largeportion of the project's field operations. Currently the divisional offices aresmall and lack management manpower and skills. Although manpower will be
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increased, management skills will remain scarce unless MTA support is provided.Each of the three Divisions will receive one expatriate management advisor.
3.1 Divisional Management Advisors
Scope and Timing Each of the three advisors will be retained for 45 man-monthsover a five-year span, commencing in January 1991. The advisors would bepermanently based in Faridpur, Khulna and Rajshahi, where they would providecore management assistance. They would be the counterparts of the projectdirectors and assist in planning, organization, management, monitoring, andreporting of all divisional project activities. They would pay particularattention to the inspection and certification system for fingerling stocking;planning and coordinating the protection of stocked areas; planning anddeveloping an active extension and credit program for fisheries, supporting theactivities of the short-term consultants in the field and proposing candidatesfor ODA training.
Profile The advisors should be 35-45 years of age and have at least 8 years ofexperience in managing projects in developing countries. Experience infisheries, extension and credit would be a considerable advantage. They shouldbe dynamic and be able to cope with difficult work and living conditions, have agood grasp of financial management and project accounting procedures; be able togenerate and communicate ideas and set clear priorities, use computers andtrain, orientate and supervise staff.
IV. OVERSEAS TRAINING
Background The shortage of management skills in the fisheries sector hasalready been noted. To achieve the long-term institutional strengthening of DOF,in-service training activities of the MTA should be supplemented by trainingawards outside of the country. These awards would be reserved for those projectstaff with the prospect of entering the management stream of DOF and thosealready involved in management.
Scope and Timing. A total of 24 training awards would be issued in the form oftechnical cooperation scholarships to Britain or approved institutes in otherdeveloping countries. These awards would be given out at a rate of six per yearover a period of four years, beginning in Project Year 2. Most of these awardsare expected to be used for management-orientated training courses of shortduration. The awards would be administered through the British Council inDhaka.
Annex 6
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BANGLADESH
Third Fisheries ProjectTechnical Assistance and Training
for Project Support(UNDP/IDA)
Terms of Reference
I. INTRODUCTION
1.1 According to COB, technical assistance (TA) is to be used forfinancing the importation of expertise not available in the country and toprovide for services to be procured from foreign and domestic consultants. Thisannex describes the technical assistance in Project Support (STA) to be financedby UNDP and executed by IDA. The component is complementary to the technicalassistance in Project Management (MTA) which is Zinanced and executed by ODA.Because neither of the likely TA sources could finance all of the technicalassistance required under the Third Fisheries Project (TFP), two distinctcomponents have been defined to be financed from different sources.
1.2 The STA component concentrates on providing study and planningsupport to the project and on field activities with social dimension. The STAcomponent addresses specific fields of project activity as follows:
(a) Floodplain Fisheries(b) Coastal Shrimp Culture(c) Other Fisheries(d) Research(e) Sector Policies(f) Training
1.3 The sub-component is expected to be executed IDA. IDA, in turn,would contract out implementation to a reputable international consulting firmwith experience in planning, fisheries and rural development; it should haveexperience in south east asian countries where experience in a wide range offisheries activities is abundant. The selected firm would be distinct from thatemployed under the MTA. An association of the firm with others havingparticular expertise would be welcome. At the outset the firm would enter intoa cooperation agreement with a reputable domestic consultant firm withexperience in the same areas and with a reputable NGO for the social supportactivities; a list of acceptable local associates and NGOs would be provided byIDA in consultation with GOB. Selection of the Consultant (international firm)would hinge strongly on the quality of associates and senior international andlocal experts offered. The firm would operate out of hired premises in Dhaka,but an office would also be made available to it in the project advisory cell atDOF headquarters to ensure full contact with project management.
1.4 Below follow descriptions and terms of reference for each area andactivity. Background, objectives, scope and timing, inputs, administration andoutputs are given. Specific and detailed terms of reference, particularly thoseof individual consultants would be drawn up by the Consultant in consultationwith IDA.
1.5 For planning purpose, the cost per man-month (mm) of internationaland local personnel includes all costs associated with the consulting personnel
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such as salaries, social costs, firm's overhead, fee or profit, and overseasallowances, and reimbursable items such as international travel, subsistence,and other allowances. The estimated cost per mm for a foreign expert is US$10,500 (Tk 240,000); for a local expert it is Tk 40,000. Other cost items suchas local transport and office costs, including comunuication, editing, andproduction of reports (50 copies each) are costed at a pro rata basis per mm.These costs are estimated at 152 of the mm cost for international consultants,and at 402 for local consultants. Costs have been estimated in this way toavoid the usual over-investment in equipment and vehicles, and to give theconsultant maximum flexibility. The cost of other personnel has been estimatedseparately, using current local rates. All costs are detailed in the projectfile. The susmmary costs given below include price contingencies but excludephysical contingencies.
II. FLOODPLAIN FISHERIES
2.1 General
Activities under this heading support the TYP's core floodplainfisheries component. The activities comprise ti) monitoring the effect ofstocking on fish catches and income distribution (ii) carrying out detailplanning studies, (iii) providing assistance to organize fishermen, and (iv)improving the exchange of ideas through workshops. The inputs for STAcoordination and management also figure under this heading, because floodplainsattract most of the STA inputs.
2.2 Monitoring of Production
Background The stocking of rivers and floodplains is a recent activity inBangladesh. Although production parameters are fairly well understood they havenot yet been verified in the field, and it will be difficult to carry outcontinued stocking on a substantial scale without credible evidence of itsimpact on production and incomes. An efficient monitoring system is needed toprovide this data. A monitoring system also will provide information requiredto modify stocking rates, sizes, species composition, and management measures in '.order to obtain optimum yields. It will provide information with which toassess the efficiency of cost recovery mechanisms and the impact on fishingcatches and incomes. In order to be impartial and to concentrate fully oncorrect data collection, monitoring of this type should be done by units outsidethe agency which is implementing the stocking program. For ease of management,monitoring must be as simple as possible and must focus on a few essentialelements. These elements include the total catch of fish before and after thestart of stocking activities, the size and composition of species, and a break-down between part-time and full-time fishermen, and between holders of fishingrights holders (lessees, licensees). A description also is needed of thephysical characteristics of the respective floodplains in terms of water areaand depth, and land use. These data would complement the data gathered underthe FRI research component.
Objectives To create sufficient data on the effects of floodplain stocking topermit an evaluation of its financial and economic viability.
Scope and Timing An intensive monitoring system would be installed in each ofthe three floodplains selected for initial stocking. These systems would remainin place for three years, commencing in the year prior to stocking, which would
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serve as the baseline year. After the three years extensive monitoring could becontinued by the Fisheries Resources Survey System.
The intensive monitoring system would comprise a core team and asupplementary team. The core team would collect and summarize data on catchesfrom a representative sample of fishermen observed and interviewed on a regularbasis. he small supplementary team would conduct additional specific studies,for example, in selected villages and fish markets inside and outside of thefloodplains.
An initial study lasting 5 months would serve to collect theinformation needed to draw up a representative sample of fisherman by type ofgear used and full or part-time activity. At the same time, the study wouldcollect data on basic social indicators to use in later social impact studies.The study would be able to use the monographs prepared for project appraisal oneach of the floodplains. The following minimum parameters would be monitoredfor each fisherman sampled: daily catch, location of catch (jalmahals, etc.),catch/effort by type and size of gear, composition of fish species and size(weight) -- particularly for major carps. Total landings will be inferred byextrapolation of individual catches within the statistical confidence limits ofthe sample.
The data also will permit an assessment of the social impact ofstocking, as the sample will include both full-time and part-time of fishermen.
The core team in each floodplain also would report regularly onwater coverage and depth, land use, rainfall, temperature, and any other obviousmacro-environmental conditions, such as the occurrence of pesticide andfertilizer use, in relation to estimated catch. To cover this monitoringelement, the Consultant would have to provide geographic expertise. Early on,the Consultant would establish contacts with BWDB on water-related matters andwith BMS for meteorological data.
The data would have to be promptly analyzed and reported to projectmanagement at DOF headquarters, the Divisional offices, and FRI. A preliminary '.
analysis of the data and a technical report on each floodplain should be madeavailable to DOF project management within 6 weeks of the end of the particularfloodplain fishing season. The final report on each floodplain should bepresented within 12 weeks of the end of the fishing season. All data should bestored on computer from the outset to ensure that they are accessible topotential users. The existing computers in DOF and FRI should be examined todetermine this compatibility for the purpose.
The initial study to set up the sample framework would begin inNovember 1990 and would last five months. Intensive monitoring in each of the 3floodplains would begin in April 1991 and continue through April 1994. Thesupplementary team would work over the same period.
InPuts
Cost: US$ 542,600
Manpower requirements:
Initial study (5 months):
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3 man-months for foreign expertise in social and fisheries surveywork;
5 man-months for a local expert with a similar background;3 man-months for a local specialist ingeography/surveying/cartography;15 man-months for field team leaders;225 man-months for enumerators.
(The teams would work for the full 5 months either in the field orin trainir.g, since they would form the core of later monitoringteams).
Core team (3 years):
6 man-months for foreign expertise in social and fisheries surveywork;36 man-months for local monitoring/coordination expertise;12 man-months for local specialist in geography;9 man-months for local computer expertise (3 man-months/year);
216 man-months for local field team leaders;1,080 man-months for enumerators;
(There would be three teams each with 1 team leader and 5enumerators to cover 100 fishermen in sample in each floodplain)
Supplementary team (3 years):
18 man-months for local expert in what area? (6 man-months/year)54 man-months for enumerators (18 mm/year)
Administration The task would be carried out by the Consultant within theterms of its contract with IDA.
Outputs Data to support a socio-economic evaluation of floodplain stocking;A better managed stocking program under the project;
A Computer-based data system for monitoring of floodplainproduction;A Well documented description of the physical floodplainenvironment.
2.3. Planning
Background. The floodplain component of the project is considered a dynamicprocess in which public stocking will expand from 30,000 ha in Project Year 2 to100,000 ha in Project Year 6. The initial floodplains -- Chanda, Halti, andBSKB beels -- have been surveyed. However, others remain to be selected andplanned. This study will provide support to DOF in surveying and studying areasfor development later in the project.
Obiective To assist DOF in the selection and detailed planning of floodplainstocking by surveying and reporting on the physical and socio-economic characteristics of selected floodplain areas with specificreference to their suitability for stocking.
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Scope and Timing The selection of floodplains to be developed would be made onthe basis of information available from existing maps, reports prepared in 1989,and work done by the FRSS. The planning task would involve: collecting andcounter-checking existing information on hydrology and topography, in thedesignated floodplain areas in order to create maps that show the monthly waterareas; analyzing and reporting on the socio-economic characteristics of thearea; collating existing information on the population, activity, and currentcatches of fishermen; reporting on special features of the area which mightaffect fisheries development, such as agricultural characteristics anddevelopment plans; and presenting the draft and final reports with supportingmaps, charts, and data according to schedule. The study team would work inclose collaboration with project management, and project management would reviewthe team's detailed terms of reference. The work will involve examininginformation available at the Dhaka, Dlistrict, and Upazila levels, andinterviewing fishermen and others in the area. Field level work would notexceed 4 weeks per floodplain. The study would begin in November 1992 and wouldbe completed in April 1995. Altogether 5 studies would be prepared in eachstudy season, running from November to April.
Inputs
Cost: US$ 97,9000
Manpower requirements:
45 man-months for local experts;
Administration The task would be carried out by the Consultant within theterms of its contract with IDA.
Outputs Well planned expansion of public stocking in floodplains;
Detailed planning studies for 15 floodplains.
2.4 Organization of Fishermen
Background The floodplain stocking program under TFP will present greatlyimproved opportunities in terms of larger catches and increased income offishermen, who are usually the poorest amongst the population. To availthemselves of these opportunities the fishermen will require assistance andadvice in technical and socio-economic matters. Technical advice would arisefrom the work of the UPOs, whilst fishermen organization for social improvement(share in catch, access to fishing rights, access to credit, access to extensionadvice, bargaining power on the fish market, etc.) would have to be done byspecialized NGO services. The major floodplains are big entities covering alarge area and population and it would be unrealistic to expect completecoverage by NGO services within the project period; it is therefore proposed tobegin working in limited, representative areas as a basis for gaining experiencefor future expansion.
Objective To improve, in a pilot area, the fisherman's share of the benefitscreated by floodplain stocking.
Scope and Timing One NGO would be selected by the Consultant. This NGO wouldplace a small team in one of the three floodplains after the initial surveyresults are in from the production monitoring exercise. Waiting for these
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results will help the NGO to select its relevant areas of operation. The teamwill consist of a field supervisor, 5 field social workers, and 25 link workers.The team will be installed in April 1992 and will work throughout the projectperiod; it also is assumed that the will continue to work under the follow-upproject. The NGO would operate in the traditional manner, focussing onorganizing, motivating, training, and supporting the fishermen in a variety ofarea through revolving fund credit and other means. The NGO's terms ofreference would emphasize fisheries. The NGO would keep field diaries andprepare biannual reports of its activities and plans. A local sociologist wouldvisit the NGO twice a year to review its progress.
Inputs
Cost: USS 149,300
Manpower requirements:
5 man-months for a local sociologist27 man-months for a coordinator57 man-months for Field supervisors255 man-months for Field social workers
1,1275 man-months for Link workers
Administration The NGO service will be a subcontract of the Consultant'scontract with IDA; the accompanying sociology expertise will be supplied by theConsultant under its contract with IDA.
Outputs Improved share of the poor in benefits from floodplain stocking;Improved participation of fishermen in fisheries management;Better understanding of fishermen and fisher women for improvedproject planning.
2.5 Floodplain Fisheries Workshops
Background A primary objective of the project is to increase fish productionthrough the public and private stocking of floodplains. Although the massproduction of fish seed is now well established in Bangladesh, the concept ofannually renewing fish stocks in natural waters is relatively new and itsmanagement has yet to be developed through the project. During the project twoworkshops would be arranged at a central location so that public and privateagents involved in floodplain fisheries could meet to discuss the technical andsocio-economic aspects of the activity.
Obiective To provide a forum for discussion and consensus on all aspects offloodplain fisheries development in Bangladesh.
Scope and Timing The task would be to plan, orgpnize, and run two workshops onfloodplain stocking and management for uplto 60 local participants inBangladesh, in April 1993 and in April 1995; to assist in previewing, selecting,and editing papers to be presented; and to assist in preparing and publishingthe workshop proceedings. Funds would be provided to organize and run theconference, for publicity, materials and services, transport, accommodation andsubsistence of delegates, editing and publishing a workshop report, and to bringin international keynote speakers with experience in floodplains and large scalestocking. Donor organizations interested in supporting fisheries developmentwould be invited to send representatives as observers. The papers from the
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workshop would be published in a report not later than 6 months after themeeting. Each workshop would take place over a three-day period.
Inputs
Cost: US$ 42,000
This includes US$ 20,000 for operating funds for Workshop of60 participants (travel, subsistence of participants,materials, hire of equipment, reproduction of papers,publication of report).
Manpower requirements:
1 man-months for Foreign specialists (keynote speakers)2 man-months for Local consultant (conference organization
specialist)
Administration FRI would be responsible for selecting, reserving, andpreparing the venue. A local consultant specializing in conference organizationand public relations would be appointed by the Consultant to assist inorganizing the workshop. Two foreign floodplains specialists appointed by theConsultant would act as keynote speakers and assist in running the sessions.
Outputs Improving understanding of floodplain stocking and management issues inBangladesh and strengthened relationships between public and privateparties in the sector. Two workshop reports documenting theachievements of the floodplain program.
Recommendations and guidelines for future projects.
2.6 STA Coordination and Management
Background The STA program is large and involves substantial amount ofmanpower. To manage this large program the Consultant will have to maintain aforeign ( team leader) and a local coordinator (assistant) in permanent liaisonwith project management and counterpart organizations. They would have toprepare and supervise the implementation of contracts under the SAT. Thecoordinators initially would be full-time in the country; their mm allocation dtails off towards the end of the project period.
Objective A strong presence in the country to ensure efficient management ofthe STA component.
Input
Cost; US$ 721,900
Manpower requirement:
51 man-months Foreign Coordinator51 man-months Local Coordinator
Administration STA-management and coordination would be handled by theConsultant under the terms of the contract with IDA.
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Output A well coordinated and efficiently run STA component.
III. COASTAL SHRIMP CULTURE
3.1 General
The development of the coastal shrimp culture is the second mostimportant component of the project. In western Bangladesh this improvementrepresents a continuation and expansion of the activities of the Shrimp CultureProject (IDA Cr 1651 BD, UNDPIBGD/85/020). Infrastructure development would beimplemented by BWDB and technical extension services would be provided by DOF.The technical assistance offered would complement ongoing activities with (i)support for organizing shrimp farmers; (ii) detailed planning studies; and (iii)technical expertise in shrimp culture technology.
3.2 Organization of Shrimp Farmers
Background: In the ongoing Shrimp Culture Project, local consultants (NG0s)have proven indispensable in organizing shrimp farmer groups to supportdevelopment and project objectives. In western Bangladesh these organizingefforts have been limited to one polder (Polder 20, 20/1) covering 1.500 ha witha planned project completion date of June 1991. The project proposes expandinginfrastructure improvements and extension to another 13,000 ha of polderedshrimp culture. The development approach chosen differs from the previous onein that public infrastructure development would be limited to large-scale watercontrol works, while the shrimp farmers themselves would construct and managethe water distribution network. This change will call for a greater effort inorganizing shrimp farmers to participate in the project and cooperate amongthemselves.
Objective To improve the use of extension and infrastructure provided by thepublic sector, reduce public sector infrastructure investment perunit of land, and improve income the distribution effects of theproject on 13,000 ha.
Scope and Timing The first task of the local consultant (NGO) would be to takea social baseline survey of the areas chosen for development and to identify andorganize shrimp farmers and other groups. The NGO then would stimulate andorganize a documented majority vote of the concerned farmers, in favor ofproject activities, committing them to the development of water supply anddrainage channels and block boundary dikes of a certain standard within a givenperiod of time. The next task would be a continuous process of motivating andtraining the groups to increase this cohesion, participation in projectactivities, interest in shrimp culture, receptivity to extension messages, andgeneral socio-economic development. Themes of special importance would includereducing dependency on exploiting forces, coordinating the timing of paddy andshrimp operations, and transmitting implementation problems and suggestions tothe DOF extension service and BWDB. Activities would begin in Project Year 1and in each particular area they would be phased one year prior to constructionwork; initially the activities would be intensive, and after S years they wouldgradually be reduced. The local consultant would work in parallel with the DOFextension service, but both would coordinate closely at the field and divisionallevel. The local consultant (NGO) would submit biannual progress reports to theConsultant and project management. A back-stopping service, recordingexperiences and suggesting improvements, would accompany the NGO activities andalso report biannually.
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Inputs
Cost: US$ 648,800
Manpower requirementss
69 man-months for a senior field coordinator301 man-months for field supervisors (1 per 5 field social workers)1,494 man-months for field social workers (1 per 5 link workers)7,747 man-months for Link workers (1 per block of 100 ha)
Local Back-stopping services:
48 man-months for a senior local consultant120 man-months for research officers
Administration The service of the local consultant (NGO) will be a subcontractunder the Consultant's contract with IDA; the Consultant would name the localconsultant -- most likely a major NGO well known by IDA. The back-stoppingservices would be provided by a reputable local consultant or recognized localresearch institute in the field of social science, under subcontract with theConsultant.
Outputs The organization of about 13,000 shrimp farmers on 13,000 ha ofshrimp culture in polders;The effective use of extension and infrastructure from the publicsector;
Reduced public sector infrastructure investment per unit of land;Improved income distribution effects from the project.
3.3 Detailed Planning Studies
Background General planning for the areas to be served with improved waterinfrastructure was carried out on 10,000 ha, before project appraisal. Detailedplanning also has been completed for the first 3,000 ha to be developed inpolders 5 and 23. Still remaining to be completed are general planning for3,000 ha and detailed planning for 10,000 ha.
Obiective To carry out general planning studies for 3,000 ha anddetailed planning studies for 10,000 ha, in preparation fordeveloping shrimp culture infrastructure in these areas.
Scope and Timing General planning includes estimating the water requirements ofshrimp farms, examining the topography and hydrography of the area, preparingbase maps (scale 4' : 1 mile), identifying subareas, and preparing costestimates and detailed model engineering plans for the water infrastructure.The detailed planning includes engineering surveys for the water controlstructures including spot checks on topography, installation of gauges, andpreparation of detailed maps for use in engineering (scale 16' : 1 mile); thepreparation of detailed engineering designs for the water control infrastructureof model farms and outline designs for the water control infrastructureelsewhere, selected subsoil investigations, and a tentative land acquisitionplan.
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Administration The task would be implemented by the local associate of theConsultant or it would be subcontracted to another local firm. The studies andsurveys would be carried out by reputable local consultants experienced shrimpculture engineering, who would work on call, at the discretion of projectmanagement.
Inputs
Cost: US$ 263,000 (based on a per ha rate)
outputs A technically well-planned development of water infrastructure and acorrespondingly efficient investment program for an incremental13,000 ha of shrimp culture.
3.4 Shrimp Culture .echnolosy
Background
Although Bangladesh has a local pool of technical experience inshrimp culture from previous projects, the country can still benefit from thetechnological improvements and innovations that have been made in similarenvironments in other countries. The extension activities of the project willrequire a regular injection of technological support from experienced sources.
Obiective To provide the private sector and DOF extension agents in theproject area with technical advice to improve the shrimp.
Scope and timinx Within its contract, the Consultant would be able to hireshort-term expertise, preferably from Southeast Asia to restore specifictechnical problems that arise during project implementation and disseminateknowledge on advance in shrimp culture technology from the region. Areas inwhich advice may be needed include: disease, hatchery operations, nutrition,harvesting, and marketing. Advice would be needed as of Project Year 2 andwould be made available through Project Year 6.
Inputs
Cost: USS 284,200
Manpower requirements:
15 man-months for foreign consultants25 man-months for local consultants
Administration Project management would request from the Consultant short-termtechnical assistance in specific areas, when needed.
Outputs A technologically progressive program of shrimp culture development.
IV. OTHER FISHERIES
4.1 General
The project provides for the development of a variety of otherfisheries resources and activities. Resources cover primarily freshwater fish
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and shrimp ponds, minor floodplains, rivets, and coastal fisheries. Activitiesinclude the promotion of women in fisheries. The STA activities included underthis heading are: (i) minor floodplain development; (ii) women in fisheries;and (iii) general technical support.
4.2 Minor floodplain development
Background The major thrust of the project is to support public stockingprograms in major floodplains. However, the stocking of smaller areas such asminor floodplains would contribute to inland fish production and may well bewithin the investment and practical capabilities of private individuals andgroups of fishermen. Studies are needed to define the limits of thesecapabilities with respect to the size of floodplain and factors affectingsocial organization. The studies would need to suggest socially acceptable waysof organizing in order to achieve economically sustainable stocking andharvesting.
Objective To determine the possibilities for and limits to privatesector development of floodplains and identify promotablesystems for achieving private sector stocking.
Scope and Timing This study will assemble the positive and negative experiencesof private individuals and groups practicing the stocking of minor floodplains,analyze them, and attempt to fashion a management approach that is likely towork best under typical minor floodplain conditions. The initial phase wouldinvolve assembling known cases of stocking of floodplains, beels, and lakes bythe private sector. Depending on the number of cases, some or all of them wouldbe visited in order to extract a basic set of information related to history,fisheries, managerial patterns, and problems. This information would be used todevelop typical patterns which later would be refined through more thorough casestudies.
The study would result in proposals for the respective roles of thepublic and private sector in floodplain development. The study leaders wouldwork closely with project management and would draw on the experience availablein the Upazilas. The study would start in November 1992 and be completed inJuly 1993.
Inputs
Cost: USS 106,200
Manpower requirements:
5 man-months for an expatriate rural sociologist;8 man-months for a local rural sociologist;5 man-months for a local fisheries expert;
20 man-months for a research assistant.
Administration The study would be undertaken by the Consultant within the Termsof its contract with IDA.
Output A better definition of public and private sector roles in floodplaindevelopment and resulting improvement in the floodplain and otherfisheries component program of the project.
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4.3 Women in Fisheries
Background A preliminary study undertaken before project appraisal indicatesthat women. particularly poor women, frequently are involved in activities atthe margin of fisheries and, to an increasing degree, directly in fish cultureand fishing operations. Further studies are required to determine the role ofwomen in fisheries activities and ways of encouraging them to participate inmore fully the sector. For example, their roles would be increased by providingguidance to the 'women in fisheries* staff deployed under the project in theDivisions and by applying finance packages provided under the Other Fisheriesproject component.
Objective To carry out a study to develop operational plans for includingwomen in the fisheries activities of the project.
Scooe and Timing 'Women in fisheries' staff would be deployed right from thestart of the project. The best time to assist them would be after a 12-monthperiod of familiarization with the task and the project area. At this pointinitial action programs or concepts for programs might have evolved. The studyteam would intervene and provide conceptual support. The core study team of twowould visit each of the Divisions for about 3 weeks to assimilate existingplans, programs, and situations while developing plans, in close collaborationwith project staff, for feasible 'women in fisheries' programs. These programswould be gradually refined through specific case studies and would result inspecific operating plan for each Division for the duration of the project.Background information on fisheries, extension, credit, and technical issueswould be acquired through frequent contact with relevant project staff.Inputs
Cost: US$ 84,000
Manpower requirements:
5 man-months for a foreign expert in programming developmentfor rural women;
5 man-months for a local expert in programming development women;18 man-months for research assistants.
Administration The Study would be undertaken by the Consultant within the termsof its contract with IDA.
Output Better access for women to services offered by DOF and the project;An improved implementation program for the "Women in Fisheries"activities of the project.
4.4 General Technical Support
Background The component covering Other Fisheries Development activities ofthe project represents a wide range of activities which cannot be fully planned.yet. It therefore is necessary to make a lump sum allocation for general STAtechnical support.
Inputs
Cost: US$ 221,900
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Manpower requirementst
12 man-months for a foreign consultant;20 man-months for a local consultant
Administration The Consultant would carry out these activities on demand fromproject management within the terms of the Consultants' contract with IDA.
V. RESEARCH
Background The project provides financing for FRI to conduct research onfloodplain fisheries and coastal fisheries. Because FRI is a young institutionand has not experience in these areas, STA is required in order to guideresearch. Research on floodplain topics should be directed to creating morebalanced stocking programs. FRI research would add to the knowledge developedfrom the monitoring activities of the project and identify areas in need of morescientific investigation. Thus, FRI would concentrate on monitoring theavailability of fish food, the incidence of fish diseases, the selectivity offishing gear, the stocking of host species, and the modelling of catches infloodplains. For coastal fisheries, FRI would produce a catch effort study.
Objective To guide FRI research programs under the project.
Scope and Timing The timing of the STA inputs will depend on the implementationof FRI's project research program. Generally, inputs would consist of expertsupport for the design of a particular study and for use as a reference sourceof methodological y and scientific advice during the execution and write up.
Inputs
Cost: US$ 289,600
Manpower requirements:
20 man-months for foreign consultants
Administration The specialized manpower would be provided by the Consultantunder terms of its contract with IDA.
Outputs A well planned and executed project research program of FRI.
VI. SECTOR POLICIES
6.1 General
This group of activities concentrates on policy and strategydevelopment at the national level, with particular reference to the projectarea. The activities includes (i) a study on cost recovery in floodplainswhich will serve as an input to the policy-making process of GOB, which iscovered by a timed covenant under the IDA Credit; (ii) a study on the divestmentof public hatcheries and fish seed farms, which also is covenanted; and (iii)the preparation of a fisheries master plan, which is to serve as input for thenext five-year planning exercise and set the framework for a follow-up project.
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6.2 Cost Recovery in Floodplain.
Background The project proposes to demonstrate the technical and economicviability of stocking floodplains on a large scale with carp fingerlings inorder to augment the natural production of fish , which has been depleted byover-exploitation and flood control practices. Because the latter factorscannot be controlled over the medium term, the exercise aims to sustain fishproduction by annual stocking. In the major floodplains, an annual recurringcost of about Tk 1,350/ha would be incurred by the public sector. The twoexisting cost recovery mechanisms are the tendering of fishing rights and thelicensing of professional fishermen. They involve several different governmentdepartments. As currently practiced, neither mechanism is very effective inreserving a large portion of public sector costs. The fiscal, and equity, andproduction must be consolidated and translated into viable activities. A studyof options available to the Government for exercising adequate cost recover- isneeded in order to make the public stocking of floodplains financiallysustainable.
Obiective To study strategies for improving the Government's cost recovery ofinvestments in fisheries, particularly in floodplains. The studywould serve as an input to the Government's decision making processon cost recovery in floodplains, covenanted under the IDA Credit.
Scope and Timing The study would review the effectiveness of existing costrecovery mechanisms and propose alternative strategies and costed implementationprograms to achieve clearly defined production, cost recovery, and socialobjectives. The review should cover the auctioning of fishing rights andquotas, licensing of fishermen and gear, taxation of inputs and outputs, thepossibilities of area-specific approaches, and the impact of these measures onpopulation groups, the GOB's administration and budget, and the economy. Thework would involve reviewing existing documentation, particularly that of theongoing New Fisheries Management Policy sponsored by the Ford Foundation, andfield inspecting various measures in practice. It also would involve examiningthe administrative and legal factors. The study team would work closely withthe MFL/DOF, ML, MLG&RD, BVDB. Forestry Department, and the Upazilas and closelyliaise with NGOs on social aspects. The study work would begin in January 1993,when the results of the first stocking become available, and would be completedwithin 8 months. The leader of the study team would be avaiLable as a resourceperson for the GOB committee on cost recovery covenanted under the IDA Creditduring the 12-month period leading up to the release of a policy statement.
Inputs
Cost: USS 127,000
Manpower requirements:
6 man-months for an expatriate fisheries economist withexperience in fisheries management. He would work for 5months on the study and would be available for up to 1 monthfor consultations.
8 man-months for local experts in fisheries management andlegalladministrative matters.
Administration The study would be carried out by the Consultant within theterms of its contract with IDA.
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Outputs Strategies for improving cost recovery in fisheries;Improved GOB policies for cost recovery in fisheries.
6.3. Public Fish Seed Farms
Background The release of a policy statement on the divestment of public fishseed farms is the subject of a timid covenant under the IDA Credit. There are103 public hatcheries operated by DOF in the project area; however, only 60 ofthem are in service, producing 1.5 tons of hatchlings. There also are 300private hatcheries in the project area, producing 16.5 tons. Many of the publichatcheries are redundant, and most run well below capacity. The publichatcheries incur an annual financial loss estimated at TX 100 million. Some arenon-functional for technical reasons; others operate below design capacity foradministrative reasons. A study is required to assist MPL/DOF prepare a policyfor divesting itself of surplus capacity and avoiding the construction ofadditional capacity.
Obiective To assist GOB with a study proposing a rational program ofalternatives for divesting of plus hatchery capacity.
Scope and Timing The study would and evaluate the physical and financialperformance of public and private fish and shrimp hatcheries. giving Particularreference to western Bangladesh. Scheduled options would be prepared forMFL/DOF to divest itself of surplus hatchery capacity and re-orientate itspolicy towards private fish and shrimp seed production. The study would involvereviewing existing documentation at DOP and other levels and incorporating theexperiences of other projects involved in public hatcheries. Proposals shouldconsider the effects of divestment on administration (particularly DOF),staffing, extension, GOB revenues, and the economy. The study team would workin close collaboration with project management, MFL/DOF, and MF. The 6-monthstudy would begin in January 1992, and the report would be available in July1992. This timing would allow the study team to observe the hatchery industryduring its seasonal operation period.
The team leader of the study would be available (1 mm) forconsultations with the GOB committee drafting the policy statement over thefollowing 12-month period.
Inputs
Cost: US$ 140,600
Manpower requirements:
7 man-months for expatriate consultants; a senior economistexperienced in divestment of public assets and a consultant infish farm management;
18 man-months for local consultants in fish farming, the legalsystem, public administration, and finance.
Administration The study would be carried out by the Consultant within theterms of its contract with IDA.
Output A better division of functions between the public and privatesectors in fish and shrimp seed production;
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A study proposing a rational program of alternatives for divestingof surplus hatchery capacity.
VII. TRAINING
Background As a rule, staff at the working level in Government organizationsin Bangladesh have had little exposure to the experience and methods of thisinternational counterparts, either in this professional specialties or inmanagement functions. Opportunities for travel and exchange of ideas within thecountry also are limited. This relative isolation of government staff limitstheir vision and ability to place working situations in proper perspective.Because study trips and overseas training are at a premium, they can be usedeffectively to motivate staff. It therefore is essential that a certain numberof well-prepared study tours be financed under the STA component.
Objective To improve the professional awareness of 200 key persons involved infisheries development in the project area.
Scope and timing Study tours and training experiencing lasting 4-6 weeksshould be arranged in a variety of countries. The topics addressed shouldinclude shrimp and fish culture, shrimp hatchery development, credit, low costaquaculture engineering, and extension. The consultants would have to prepare adetailed training plan within the first 9 months of the project for approval byIDA. The plan would be reviewed after 2 years. The experiences most relevantto Bangladesh generally can be found in South and Southeast Asia, wherefisheries operate in a similar tropical environment. However, tours tocountries outside of the region would not be completely excluded provided aparticular experience could be found then. Local study tours to points ofinterest also should be arranged. Those eligible to participate would includemale and female officers of the participating agencies and services, and theprivate sector. About 30Z of the tours should be reserved for the privatesector. Care should be taken to exclude individuals who already haveexperienced. This type of training and therefore would not be as likely toshare this knowledge with others.
Inputs
Cost: US$ 466,700
Manpower requirements:
2 man-months for a foreign consultant to prepare and revisetraining plan;
4 man-months for a local consultant for the same purpose;100 Overseas study tours100 Local training tours.
Administration The program would be handled by the Consultant within itscontract with IDA.
Outputs 100 overseas experiences;100 local experiences.
