Public Disclosure Authorized Public Disclosure Authorized

Document of

The World Bank FOR OFFICIAL USE ONLY

Report No.7991-BR

STAFF APPRAISALREPORT BRAZIL

Public Disclosure Authorized

Public Disclosure Authorized

THIRD AGRICULTURALRESEARCHPROJECT

SEPTEMBER11, 1989

Country DepartmentI Latin America and the CaribbeanRegion

This documeat has a restricted distdbution and may be used by recipients only in the perfonnance of their offielit duties. Its contents may not otherwise be disclosed wihout World Bank authorization.

CURENCY EQUI 20, (As of April

-

Currency Unit US$1 00

SALENS 1989)

New Brazilian Cruzado (NCz$) NCz$l.OO 11

WEIGHTS AND MEASURES

1 meter (m) 1 kilometer (km)

1 hectare (ha) 1 square kilometer (kml) 1 cubic meter (m3) 1 kilogram (kg) 1 ton

= = = =

-

3.28 feet 0.62 miles 10,000 ml - 2.47 acres 100 hectares - 0.386 sq. miles 1.31 cubic yards or 264.2 US gallons 2.2 pounds 1,000 kg = 2,205 pounds

FISCAL YEAR

1/

Government of Brazil

m January 1 to December 31

3MBRAPA (Executing Agency)

=

January 1 to December 31

Exchange rate at time of negotiations (August 1989) was US$1.00

=

NCz$2.i0

FOR OMFFCLUSE ONLY

GLOSSARYOF ACRO/NYMS CCR

CoordenaSaode Orgamentoe Captafatde Recursos (CoordinatingUnit for the Budget and Sources of Funds

CDO

Coordenagaode DesenvolvimentoOrganizacional (CoordinatingUnit for OrganizationalDevelopment

CEA

Coordenadoriade Engenhariae Arquitetura (Coordinating Unit for Engineeringand Architecture)

CENARGEN

Centro Nacional de Recursos Gendticos e Biotecnologia (NationalResearchCenter for Genetic Resourcesand Biotechnology)

CNPA

Centro Nacional de Pesquisade Algodao (NationalCenter for Researchon Cotton)

CNPAI

Centro Nacional de Pesquisade AgriculturaIrrigada (NationalCenter for Irrigationand Drainage Research)

CNPBS

Centro Nacional de Pesquisade Biologia do Solo (formerly:UAPNPBS) (NationalCenter for Soil Biology Research)

CNPC

Centro Nacional de Pesquisade Caprinos (NationalCenter for Research on Goats)

CNPCa

Centro Nacionalde Pesquisade Cajd (NationalCenter for Research on Cashew Nut)

CNPCo

Centro Nacional de Pesquisa de Coco (NationalCenter for Coconut Research)

CNPDA

Centro Nacional de Pesquisa de Defesa da Agricultura (NationalCenter for Plant Protectionand Environmental Researzh)

CNPF

Centro Nacionalde Pesquisa de Florestas (NationalCenter for ForestryResearch)

CNPGL

Centro Nacionalde Pesquisa de Gado de Leite (NationalCenter for Researchon Dairy Cattle)

CNPHF

Centro NacionLal de Pesquisade Mandioca e Fruticultura (NationalCenter for Researchon Cassava and Fruit Crops)

CNPSD

Centro Nacionalde Pesquisa de Seringueirae Dende (now: CPAA) (NationalCenter for Researchon Rubber and Oil Palm)

CPAA

Centro de PesquisaAgroflorestalda Amazonia (ResearchCenter for Agroforestryin the Amazon)

This document has a #sticted distribution and may be used by recipients only in the prfornance of their officialduties. Its contents may not otherwise bedisclosed without World Bank authorization.

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ii

-.

Glossary of Ac.:o'nyms (Cont'd) CPATSA

Centro de Pesquisa Agropecutria do Tr6pico Semi-Arido (Research Center for Agriculture in the Semi-Arid Tropics)

CPATU

Centro de Pesquisa Agropecuaria do Tr6pico tmido (Research Center for Agriculture in the Humid Tropics)

CPI

CoordenagIo de Projetos Internacionais (formerly: part of CCR) (Coordinating Unit for Internationally-funded Projects)

CTAA

Centro Nacional de Pesquisa de Tecnologia Agroindustrial de Alimeatos (National Research Center for Agro-Industry and Food Technology)

DOC

Departamento de Or,camentoe Captaglo de Recursos (Budget Department)

DPL

Departamento de Planejamento (Planning Department)

DTC

Departamento Tdcnico Cientifico (Department of Science and Technology)

DTT

Departamento de TransferOncia de Tecnologia (Department for the Transfer of Technology)

EMBRAPA

Empresa Brasileira de Pesquisa Agropecuiria (Brazilian Agricultural Research Corporation)

EMBRATER

Empresa Brasileira de AssistOncia T4cnica e Extensgo Rural (Brazilian Technical Assistance and Rural Extension Corporation)

GPR

Gabinete do Presidente (President's Office, EHBRAPA)

IBDF

Instituto Brasileiro de Desenvolvimento Florestal (Brazilian Institute of Forestry Develorment)

IBAMA

Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renovais (National Institute for the Environment and Renewable Resources)

INCRA

Instituto Facional de Coloniza9ftoAgraria (National Institute for Colonization and Agrarian Reform)

INPA

Instituto Nacional de Pesquisa da AmazOnia (National Institute of Research for Amazonia)

PAPP/NRDP

Programa de Apoio ao Pequeno Produtor

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iii

Glossary of Accronyms (Cont'd) PAT

Piano Anual de Trabalho (AnnualOperationalPlan)

PRONAPA

ProgramaNacional de PesquisaAgropecuaria (NationalAgriculturalResearch Ptogram)

SCPA

Sistema Cooperativode PesquisaAgropecutria (CooperativeAgriculturalResearchSystem)

SEP

Secretariade Planejamento(now: )PL) (PlanningSecretariat)

SNLCS

Servigo Nacional de Levantamentoe Conserva9Aode Solos (Servicefor Soil Analysis,Mapping and Soil ConservationStudies)

SPSB

Servigo de Produgao do Sementes 3asicas (BrazilianService for the Productionof Basic Seeds)

SUDAM

do Desenvolvimentoda AmazOnia Superintendincia (Superintendence for the Developmentof Amazonia)

SUDENE

SuperintendAnciado Desenvolvimtntodo Nordpste for the Developmentof the Northeast) (Superintendence

UAPNPBS

Unidade de Apoio ao ProgramaNacional de Pesquisa de Biologiado Solo (now: CNPBS) (SupportUnit for the NationalResearch Program on Soil Biology)

UEPAE

Unidade de ExecuqAode Pesquisade Ambito Estadual (Unit for Researchat the State Level)

BRAZIL THIRD AGRICULTURALRESEARCH PROJECT STAFF APPRAISAL REPORT Table

of Contents

Page No. i ABBREVIATIONS AND ACRONYMS ................................................ LOAN AND PROJECT SUMMARY ......

.........

II.

THE AGRICULTURE SECTOR ......

..............

I.

.................

*

1 4

4 Agriculture in the Economy ......................... 4 . . . Agricultural Development Policy 5 Agricultural Research . .................................... ...................... 7 The Northeast and Amazon Regions ..... .................8 Past Bank Lending for the Agriculture Sector THE PROJECT .................

III.

.

9 Rationale for tank Involvement and Origin .................... 10 O*.............. objectives .......................................... 10 ................................... O. Project Area ............ Sumary Description .......................................... 10 12 . ................. Detailed Description 12 ............................ Generation (i) Technology 13 (ii) Research Support Programs ........................ ........16 Transfer and Dissemination .... (iii) Technology (iv) Institutional Development ........................ 16 17 (v) Project Impact Assessment and Special Studies .... 18 Project Organization and Implementation ...................... Overall Organization ..................................... 18 19 Project Planning and Reporting ........................... Contractual Arrangements ................................. 20 20 .............................. Accounts and Audits ........ Project Costs ................................................ 21 21 O*..... 0. ............... ............. Financing Plan......................... .......... 22 ....... Procurement ................... ...... 23 . .... ......................... Disbursements 25 tfiat i......... Project Benefits and Justification ................ 25 Economic Benefits .................................... 25 .......................... Fiscal Impact and Cost Recovery 25 Environmental Impact .................................... 26 Project Risks ........................................

This report is based on the findings of an appraisal mission which visited Brazil from March 27 to April 20, 1989. The mission was composed of Messrs. D.H. van der Sluijs (mission leader); R. Caminha (Agriculturalist, Consultant) and R. Etheredge (Architect, Consultant).

v

Table of Contents (continued)

Page No. IV.

AGREEMENTS REACHED AND RECOMMENDATION ........................

26

ANNEXES 1.

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2.

Tables Table 1: Table 2: Table 3:

Chart 1:

EMBRAPA Organizational Chart .......rt..

........

EHBRAPA Staff by Category and by Location EMBRAPA Staff Seconded to Other Agencies EMBRAPA: Sources and Application of Funds, 1978-1989 ........ ........................ Distribution of Research Programs by Project Region and Implementing Research Unit Distribution of Research Support Programs by ..... .... Research Unit .3. ... .

29

32 33 34

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Table 4t

-

Table 5:

-

Table 6: Budgets for State ResearchCompanies,1988-1989g 38 Table 7:

35

37

Research Programs and Staffing at Research Stations participating in the Project .39

3.

Project Components by Year..........

4.

Phased Project Cost Sunuary by Expenditure Categorys (a)by Year . * .. . (b) by Component and by Region . .

.........

41

. ..

..

42

.43

5.

. Schedule of Proposed Civil Works................ .............

44

6

Estimated Schedule of Bank Disbursements

52

7.

Documents Available in the Project File .................

...............

MAPS IBRD No. 21641 BRAZIL - Third Agricultural Research Project Location of Research Stations IBRD NO. 21642 BRAZIL - Third Agricultural Research Project Agro-Ecological Regions

53

BRAZIL THIRD AGRICULTURALRESEARCH PROJECT I. LOAN AID PROJECT SUMMARY Borrower:

FederativeRepublic of Brazil.

ExecutingAgency: Empresa Brasileirade PesquisaAgropecutria(EMBRAPA:. Amount:

US$47.0 million equivalent.

Termst

Repayable in 15 years. including5 years of grace, at the Bank's standardvariable interest rate.

Beneficiaries:

The project focusesmainly on the Northeast and Legal Amazon regions of Brazil. Together these regions cover about 752 of the total national territory,and their populationsrepresentover 401 of the national population. The target populationis representedby medium and smallho.derfarmers and livestockproducers and their families,whose combinedtotal in the project area amounts ta more than half of the country's rural. population,or some 18 million people.

Proiect Obiectivesand Description:

The proposed projectwould strengthenEMBRAPA's and state researchagencies'capacitiesto generate and disseminatetechnologywhich would contributeto sustainedagriculturaldevelopmentin two distinct agroecologicalregions,the 'legal Amazon' and the semi-arid Northeast. The projectwould provide support to fifteen comodity-oriented (e.g., cassava,beans, rice, fodder crops, small ruminants,and perennialcrops such as Brazil nut, black pepper, oilpalm, rubber, tropical fruits and forestry)and five service-oriented (biotechnology;agro-industrialand food technology; soils; irrigationand drainage;and environmental protection)researchprograms. The five project componentsare: (i) technology generation; (ii) research support programs; (iii) technologytransfer; (iv) institutional development;and (v) project impact assessmentand special studies. The project would provide fors (a) investmentcosts for the above researchprograms, includingcivil works, laboratory,experimentstation and farm equipment and supplies; (b) technical assistanceand staff training;and (c) incremental operatingcosts. The researchprogramswould be executed at three regional researchcenters (CPAs); thirteen special servicesand national commodity researchcenters (CNPs);six state-basedEMBRAPA units (UEPAEs);and nine state-ownedresearch agencies,under

-2the coordinationof EMBRAPA. Institutional strengtheningwould aim at consolidatingproceduresfor researchplanning and monitoringby and within the various units and institutionsbelongingto the national cooperati7eagriculturalresearchsystem. Project Risks:

Optimum returns to researchdepend upon the degres of coordinationbetween researchand extension at the state and field level and the feed-back receivedfrom farmers. The proposedproject would strengthenthe technology diffusion process and the linkagesbetween research, extension and the farmers. Research results can also be nullified by unfavorablepolicy decisions affecting returns to farming. However, other Bank-supported lending operationsin the sector, ranging from policybased sector lending to regional rural development (Northeastand NorthwestDevelopmentPrograms) and operationsin the irrigationsubsector,are designedas parts of a coherent strategy;these operationssupport and complementeach other and thereby, reduce this type of risk. Finally,delays and shortfallsin counterpart funding could representa major risk. Tne supportwhich agriculturalresearchenjoys at the federal and state level, together with a sound annual planning and budgetingprocess, should help to mitigate this risk.

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ESTIMATED PROJECT COSTS AND PUFICING Estimated A.

Costs

Local --

F_'L0eipn Total (US$ million)-----

Technology Generation - Amazon Region - Northeast Region - Other

12.4 11.1 0.5

9.6 11.5

0.5

22.0 22.6 0.9

Subtotal

23.9

21.6

45.5

B.

Research Support

12.5

14.0

26.5

C.

Technology Transfer - Amazon Region - Northeast Region - Other

1.0 0.9 0.3

0.5 0.5 0.1

1.5 1.4 0.4

Subtotal

2.2

1.1

3.3

Project Impact Assessment and Special Studies

1.9

1.2

3.1

Institutional Develomnent

1.9

1.7

3.6

42.4

39.7

82.1

2.0 6.5

1.3 5.9

3.3 12.4

50.9

46.9

97.81

D.

E.

Total Baseline Costs Physical Contingencies Price Contingencies Total Proiect Costs

Financing Plan Government IBRD

50.8

Total

-

S0.8

-

47.0

47.0

50.8

47.0

97.8

Estimated Disbursements Bank FY Annual Cumulative MaPss

19902 1991 1992 1993 1994 1995 ---------------…U$ million)--------------5.3 5.7 12.9 13.0 7.4 2.7 5.3 11.0 23.9 36.9 44.3 47.0 IBRD 21641 and 21642

1/

Includes US$5.1 million of local taxes.

2/

Includes initial deposit of US$4.0 million into the Special Accounts.

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II. THE AGRICULTURESECTOR Agriculture in the Econ-mv 2.01 Throughoutthe postwar period, until the 1980s, the economy grew at a high average annual rate of 7.1X. The agriculturalsector also performed well, achievingan average annual growth rate of about 4.4Z over the same pe-iod. However, the outputs of both the industrialand service sectors increased at much faster rates--8.52and 7.0, respectively. As a result, agriculture'sshare in GDP declinedfrom about 25Z in 1950 to 1OZ in 1980. 2.02 Agriculturalproductiongrowth prior to 1980 was led by the growth of non-traditional. exports (mainlysoybeansand citrus). Production increasescame almost entirelvfrom new land expansionas opposed to increases in yields. Productionwas particularlydynamic in the expanding frontier states of the Center-West(Goias and Mato Grosso do Sul) and parts of Minas Gerais. 2.03 In the early 1980s, toe economy slowed down, reflectingdeclines in industrialproductionand stagnationin agriculture. In addition,the expansionof the agriculLuralfrontiercame to a virtual halt, with the exceptionof areas in the North. In the last couple of years, agricultural growth has resumed. However, the ,;ources of growth appear to be changing. With the recent introductionof new varieties, made possible by technologicaladvances in agriculturalresearch,yields on traditional export crops (cotton,tobacco and coffee) and many food crcns (rice,maize and wheat) have ihcreased significantly. During the 19808, very little change occurred in the overall structureof output. By 1987, agriculture still accounted for about 10 of GDP. Its share in the labor force and total exports were 25Z and 432, respectively. AgriculturalDevelopmentPolicy 2.04 Governmentpolicieshave had a major impact on the performanceof the agriculturalsector. Probablythe most importantaction in this regard was Brazil's decision in the postwar era to embark on an importsubstitution,industrializaticnstrategy. This strategyhas been pursued through a variety of measures, includingan overvaluedcurrency, restrictivetrade policies,and from time to time, outrightbans and quotas on agriculturalexports. The effect has been to implicitlytax agriculture. Partially to compensatefor this, subsidizedrural credit was introduced,but this only created further distortionsand benefittedmainly the large producers. Recently the Governmenuhas moved to change some of these policies. The Bank has supportedthess reforms under the Credit and Marketing Reform Project (Loan 2727-BR'. With respect to rural credit, the Governmentis now moving in the directionof reducingthe availabilityof official (subsidized"credit and relying on private finance at market interestrates. A recent Bank-supportedagriculturalcredit operation,the AgriculturalCredit Project (Loan 2971-BR),is aimed at assisting the Governmentto achieve this objective.

-5policy agenda during the 19809 has been 2.05 While the Governmer.t dominated by macroeconomicstabilizationconcerns,farmers,faced with the problem of increasingproductioncosts and falling commodityprices, have begun to seek more cost-effectivetechnologiesand to intensifythe use of existing farm land and rural infrastructure. This is already evident in the country'smajor agriculturalareas in the South and Southeast. There is growing interest in irrigation,soil conservation,environmental protection, livestockdisease control,more efficientmarketing and storage and more widespread applicationof the resultsof agriculturalresearch. Moreover, recent evidenceindicatesthat the supply of unclaimed agriculturalland with economicpotential is rapidly diminishing. This fact, combinedwith the Government'srecent initiativesto withdraw part of the various fiscal incentivesthat have, to an importantextent, fueled expansion,suggest that the growth of the land frontiermay be coming t'.lis to a close. Agriculturalgrowth in the future is expected to come increasinglyfrom more land-intensiveproductionmethods. Agricultural

Research

Background. EMBRAPA was created in late 1972 as a public sector 2.06 corporationattachedto the Ministry of Agriculture,but with a large degree of financialand administrativeautonomy. Its mandate is to: (a) plan and budget for researchprograms reflectingnational and sectoral policies and priorities; (b) execute agriculturalresearchprograms leading to the generationof new technology;(c) monitor and provide technical coordinationof decentralizedresearchprograms and activitiesinvolving other federal and state-levelagenciesand universities;and (d) maintain a close working relationshipwith EMBRATER, the Brazilian agricultural extensionagency. Based on the experienceof the last 15 years, EMBRAPA cur=ently sees three major prioritiesfor the national researchsystems (i) the developmentof improvedresourceconservationand management practices at the farm level based on improvedknowledge of the nature and distributionof productiveresources,particularlythose in the semi-arid Northeast,the Amazon and the Pantanal regions; (ii) the strengtheningof state-basedagriculturalresearchagencies,which are responsiblefor adaptive research at the farm level; and (iii) an improvedflow of informationbetween research,extensionand the farming community. Organization. EMBRAPA'sheadquartersare in Brasilia. The 2.07 corporationis headed by a Presidentassistedby three ExecutiveDirectors. The Board of Directors is assisted,in turn, by three supportunits (Legal, InternalAuditing, and Public Relations)and, since its recent (July 1989) reorganization,by ten departments(Annex 1). The overall structureof from the Bank EMBRAPA which has evolved over the past 15 years with support (paras.2.17 and 2.18) has proven itself to be sound and effective. However, there now is a continuousneed for EMBRAPA to criticallyassess its future role and that of the other parts of the national research system, and determinehow each of these may best serve the farming community during the next decade. EMBRAPA is the coordinatingagency for the country's coonerative 2.08 agriculturalresearch system (SCPA)wh4 ch is responsiblefor the execution of the national agriculturalresearchprogram (PRONAPA). Besides EMBRAPA, comprisess (i) state-levelresearch companiesand the cooperative'system institutionst(ii) universities;(iii) the private sector; and (iv) some

*

forty researchinstitutesthroughoutthe world with whom EMBRAPA entertains technical cooperationagreements. Each year, meetings are held to discuss and agree on the next year's researchprioritiesand programs. These annual researchplanning and review meetings are coordinatedby EMBRAPA and are attended by researchersfrom public and private researchorganizations, private farmers and representativesfrom cooperatives,agriculturalcredit, extension and regionaldevelopmentagencies. 2.09 EMBRAPA executes its own researchprogram through a national network of research stationswhich comprises six regional centers,twentyone national centers for commodityresearch (CNP), and eight state-level research centers (UEPA.). In addition, there are fourteen semi-autonomous and three fully autonomousstate-ownedresearchcompanies. The regional research centers concentrateon and coordinateresearch on specific problems of the major agro-ecologicalregions in which they are located (the regionalResearch Center for the Humid Tropics - CPATU; the Amazon CPAA3 , the Semi-AridTropics - CPATSA; the Pantanal - CPAP; ths Cerrados CPAC; and the TemperateLowlands - CPATB) (Map IBRD 21641). At the commodity researchcenters,multidisciplinaryteams work on priority programs identifiedin the PRONAPA (para 2.08) related to agronomic problems and productionsystems for each specificcommodity. The statelevel research stations,either managed by EMBRAPA or by state-owned companies,are responsiblefor taking the findingsand technological componentsgeneratedby the regionaland national centers and incorporating these into adaptive researchprograms at the local level. Finally, in support of all of these researchprograms,EMBRAPA also operatesthe following special service centers: the Center for Genetic Resources and Biotechnology(CENARGEN);the Service for So±l Surveys and Soil Conservation(SNLCS);the Basic Seeds ProductionService (SPSB);the National ResearchCenter for Agro-Industryand Food Technology (CTAA);the National Center for Plant Protectionand EnvironmentalResearch (CNPDA); the Nat. anal Center for Irrigationand Drainage Research (CNPAI),and the National Center for Soil Biology Research (CNPBS). 2.10 Staff. As of April 1989, EMBRAPA had a total of about 8,800 employees. Of these, about 22? were higher level staff, 50? were research assistants,and 251 were administrativestaff. Seven percent of all staff were assigned to EMBRAPA headquartersat Brasilia, and the remainderwere distributedover the regions as follows: 15Z in the North, 16? in the Northeast,22Z in the Center-West,16Z in the South, and 17Z in the Southeast. Six percent of EMBRAPA staff worked within state research companies or other agencies (Annex 2, Tables 1 and 2). The position of TechnicalDirector in the state researchcompaniesis always filled by an EMBRAPA researcher. 2.11 Funding. The Government'scommitmentt.odevelopingthe agricultureand livestocksector and its recognitionof the key role played by agriculturalresearchare illustratedby the investmentsmade in research since the establishmentof EMBRAPA. EMBRAPA's first year (1974) budget (in 1986 constant dollar equivalentterms) amountedto about US$25 million. Funding increasedsteadilyto about US$300.6million by 1980 and 3/ This regionalcenter was created in July 1989 through the fusion of the former national researchcenter for rubber and oil palm (CNPSD)and the state-levelresearchunit (UERAE)at Manaus.

-7-

an estimated US$324 million for 1989 (in constant 1986 dollars). Throughoutthese years, the Governmenthas sought and obtained external funding, includingtwo Bank loans (Loan 1249-BR of US$40 million and Loan 2016-BR of US$60 million) and two loans by the Inter-AmericanDevelopment Bank (for US$66.4 million and US$70.0million, respectively). However, EMBRAPA's major source of funds is the Federal Governmentbudget and several regionaldevelopmentprograms. In oxder to support and strengthen the state-basedresearchcompanies,EMBRAPA has in the past transferred between 52 and 8Z of its resources (staff and funds) to the state enterprises (Annex 2, Table 3). 2.12 Diffusion of ResearchResults. Producers in the better endowed regions of the South, where farming is less risky than in the Northeast, often establish their own contactwith researchand extension. Hot-ever, many of the technologiesgeneratedby researchneed to be adapted and screenedthrough on-far-m tests before they can be disseminatedto resourcepoor, medium and small-scaleproducers,particularlyin the less-developed regions of the country. Farmers themselvesneed to be involvedas much as possible in this process. Formal mechanisms for coordinationbetween researchand extension,includingconsultationwith the farming community, were initiatedin 1986. At the national level it is the Coordenadoriade Opera9oes (COPER)of the national extensionagency (EMBRATER),together with EMBRAPA's TechnologyDiffusionand TransferDepartment (DTT),which is responsiblefor coordinationof joint action programs. However,major national research centers,and to a much lesser extent, some state-level entities (UEPAEs)currentlydispose of only modest resources (staff and equipment)for technologytransfer. One of the major reasons for the overallweakness of the technologydiffusion system is, that thus far, this aspect has not been recognizedas an explicit functionof the research establishment. Accordingly,a researcher'seffcorts and effectivenessin this area do not, as yet, enter into his or her professionalperformance evaluation. The above applies particularlyto the Northeast and Amazon regions of the country. The Northeast and Amazon Reaions A. The Northeast 2.13 The Northeast of Brazil is comprisedof the States of Maranhao, Piaui, Ceara, Rio Grande do Norte, Paraiba, Pernambuco,Alagoas, Sergipe, and Bahia. The region covers an area of more than 1.5 million km2 (18? of the country'stotal area) with an estimated1988 populationof 41 million (about 29? of the country'stotal), growing at 2.2Z per year. Conditions are characterizedby periodic droughts,uncertain rainfall,skewed land distribution,and limited employmentopportunities. These problems have resultedin high levels of poverty and under-employment. In 1985, about half of the region'srural population(representing45? of its total population)earned one quarter or less of the officialminimum wage (about US$60 per month). 2.14 The Northeast contributesabout one-fifth of the total value of Brazilian crop production. Irrigatedagriculturerepresentsonly a small proportionof land under cultivation,with irrigated lands mainly located along the Sao FranciscoRiver and downstreamof small dams. In additionto the challengeof devising economicallyviable productionsystems for

-8 agriculturein this region, the social pressuresgeneratedby large numbers of rural pOtO have greatly increasedthe pressures on the fragile agriculturalbase. The Bank has supporteda number of irrigationand rural developmentprojects in this region. In the current series of rural developmentprojects (the NRDP/PAPP program, supportedby ten state-based loans and one regionalland tenure improvementloan, approvedfrom FY85 to FY87), adaptive researchcomponentswere included. Most of the irrigation projects also contain specificresearchcomponents. Also, with assistance from the First and Second AgriculturalResearch projects (paras. 2.17-2.18),a Regional ResearchCenter for the Semi-AridTropics (CPATSA) was establishedin the Northeastnear Petrolina,Pernambuco,and this station was given the role of coordinatingagriculturalresearchin the region, includingthe researchcomponentsof the NRDPIPAPP program. B. The Legal Amazon 2.15 The region as defined in Law No. 5.173 of October 27, 1966, 4 Amap& comprises the States of Amazonas,Acre, rart, RondOnia,Tocantins, and Roraima; the western half of the state of Maranhgo (west of 440 W) and northern Mato Grosso (north of 160 S). Its 5.1 million km' account for about 602 of Brazil'snational territory,with an estimated1987 population of 15.5 million, (about 112 of the country'stotal). Approximately501 of the population lives in rural areas. More than 75Z of the region is comprised of the fragile,but globallyimportantecosystemof the tropical rain forest. In 1980, in responseto growing socio-economicproblems due to ever increasingmigratory flows into the Northwest agriculturalfrontier areas of Mato Grosso and RondOnia,the BrazilianGovernmentlaunchedthe NorthwestRegion IntegratedDevelopmentProgram (POLONOROESTE). The centerpieceof the program,with participationof the Bank, which also involvedthree agriculturalloans (Loans 2060-BR of US$89.9 million; 2116-BR of US$26.4 million; and 2353-BR of US$13.0 million), and a loan for a health project (Loan 2061-BR),was the completionand asphaltingof a main federalhighway (BR-364)and the constructionof feeder roads (Loan 2062-BR). Overall, the program which, inter-alia,aimed at promoting sustainablesystemsof agricultureand forest production,and improved health care, has only had a marginal effect in reversingdestructive developmentpatterns. However, in preparationfor a possible RondOnia Natural ResourceManagementproject,the Federal and RondOnia State Government'have since focusedmajor efforts on land capability classificawionand in 1988 adopted agro-ecologicalzoning as the basis for developmentplanning in RondOnia State. For the Amazon region as a whole, knowledge of the agriculturalpotentialis still inadequate,but, of the areas known to have apparentagriculturalpotential,some 19 million ha of flood plains (varzeas)are consideredthe most important for future development. Past Bank Lending for the AgricultureSector 2.16 As of September30, 1989, the Bank had made 54 loans, totalling US$4,560.8million (net of cancellations),for agriculturaland rural developmentin Brazil. These loans include: one agriculturalcredit and

41 The State of Tocantins,until recently,formed the northern part of the State of Goits and the states of Amap& and Roraima, until recently, were territories.

-9export loan for US$303 milliont one agriculturalcredit loan for US$300 milliont one credit and marketing reform adjustmentloan for US$500 million: two supplementalloana for US$30.5 million under the 1983 Special Action Program; four loans for US$785.8million for agroindustries;three for US$111.5 million, for livestock,includingan animal disease control project of US$51 million; one for US$18.2 million for grain storage;two for US$100 million for agriculturalresearch;two for US$255 million for agriculturalextension;one for US$100 million for land tenure improvement; one for US$48.5 million for forestrydevelopment;one for US$195 million for the irrigationsubsector;and 34, totallingUS$1,813.3million, for various settlement,irrigation,land management and rural development projects in the Northeast,in Minas Gerais (the Southeast),Parana (the South), and in the North and Northwest. 2.17 The Bank has supportedtwo previousnational agriculturalresearch projects. The First AgriculturalRese:rch Project (Loan 1249-BR for US$40 million approved in FY76) had a total project cost of US$189 million. The project assisted the Governmentin formulatinga national researchpolicy and in establishinga national researchservice and a basic network of research infrastructure. Staff training- both long-term (degree)training and short-term fellowships - and technicalassistancemade important contributions to strengtheningthe institution. Fundin6 was also provided in support of researchprogramsdealing with farming systems and with selectedcommoditiessuch as rice, beans, maize and cassava. The project was consideredsuccessful,despite start-upproblems and Governmenthiring restrictionswhich delayed project completionby two years to June 1983. Among major lessons learned, the 1985 Project PerformanceAudit Report mentioned* (i) the need for carefully designed staff trainingand assistance programs to su.reng_;hen research program management and technical improve administrativeprocedures;and (ii) the need for greater involvementof end users, includingextension staff, in the technology generationand transfer processes. 2.18 The Second AgriculturalResearchProject (Loan 2016-BR,US$60 million, approved in PY81) had a total cost of US$110 million. Apart from providing continued support to EMBRAPA, the second project focusedmore on improvingENBRAPA's technicalcapacity for farmer-oriented, adaptive research. It also provided funding to further strengthenresearchplanning and programmingand to establishinformationand documentationservices, and researchmonitoringand evaluationsystems. Technical assistanceand staff trainingwere also importantproject components. The project was implementedon schedule;a sixth year of disbursementwas used to complete funding of foreign fellowships. A major lesson learned was that increased attentionneeded to be focussedon the Northeast and Amazon, which had benefittedmuch less than other regions from newly generatedtechnologies. A project completion report was recently issued (May 31, 1980).

III. Rationale

for

THE PROJECT

Bank Involvementand Oriain

3.01 The Bank's strategy for Brazil is to foster macro-economic stability and economicgrowth, to support efficientresourceallocation, Increased efficiencyin the public sector,and appropriatetargetingand delivery of support services,while contributingto environmental

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sustainability. The important role which technology generation and disseminationhave played in the growth and increased productivity of Brazil'sagriculturalsector is widely acknowledged.During the past decade the Bank has supportedeffortsto strengthenagriculturalresearch at the federaland state level. Under the NRDP-PAPPprogram the Bank is also supportingten state researchprograms. Based on lessonslearned,it is recognizedthat increasedattentionneeds to be focusedon the Northeast and Amazon regions. Due to theirmore complexagro-ecological and socioeconomicconditions,these regionshave thus far benefittedmuch leis than other parts of the countryfrom newly generatedtechnologies.Throughthe proposedproject,the Bank would supportBrazilianeffortsto developand disseminateenvironmentally sound agriculturalproductiontechnologywhich would contributeto sustaineddevelopmentin two of Brazil'secologically most vulnerableand eccnamicallydepressedregions. The Bank would also be assistingEMBRAPAand sAate researchagenciesin strengtheningand improving the efficiency of the SCPA, particularly in the Northeastand Legal Amazon Regions. Obiectives 3.02 The projectvou_d supportthe execution,disseminationand assessmentof the resultsu of researchprogramsdesignedto contributeto the formulationof sustatnableagriculturalproductionsystemsin two distinctagro-ecological areas, i.e., the semi-aridnortheastregionand the ecologicallyvulnerablehumid tropicsof the Amazon region. It would seek to -apitalizeon previousinvestmentsmade in researchand strengthen technologydiffusionsystems. In addition,in order to keep EMBRAPA abreastof new developments, basic ressarchin the areas of biotechnology, food technology, soil biologyand the environmentalimpact of agricultural developmentvould be furtherstrengthened.The project would also seek to increase the efficiency of the SCPA in the Northeastthroughthe adjustment of ongoing NRDP-PAPPresearch programs and the definition of appropriate procedures to consolidate these programs under the aegis of EMBRAPA. Proiect

Area (Maps IBRD 21641 and 21642)

3.03 The project area vould comprise the semi-arid tropics of the Northeast (paras. 2.13-2.14) and the humid tropics of the north and northwest referred to as the Legal Amazon (para. 2.15). The specific research programs supported by the project would have particularrelevanceto the problem faced by producers in these regions. However, the benefits derived from the improved support services, and particularly those related to institutional strengthening, would also have significant beneficial impact on the nationalcooperativerese&rchsystem as a whole. SummaryDescrintion 3.04 The project strategywould be to developproductiontechnologyand to ensure that such technology becomes available to farmersand livestock producersin a timelymanner. The projectwould h&ve the following componentss 5

5/ Costs shown are base costs; detailedcost figuresfor the various researchprogramsand centersare shown in Annexes 3 and 4 and in Staff Working Paper B 17 (Project File, Annex 7).

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(a) Developmentof new crop productiontechnologyat two regional and eight national commodity researchcenters, along with crop, livestock and forestryimprovementresearchcovering nine major crops, three minor crop groups, plus beef, dairy cattle, water buffalo, goats, and forestry,and field-testing at sixteen state-leveladaptive researchcenters (US$45.5 million, 552 of base costs); (b) Research supportprograms in the areas of (i) biotechnology; (ii) food technology; (iii) soil biology and soil management; (iv) irrigation;(v) and environmentalimpact of agricultural development,at eight researchcenters (US$26.5million, 32Z of base costs); (c) Technologytransfer,includingtesting of alternative technologytransfer systems;collaborativeefforts with private and public agriculturalextens4on services;and increaseduse of field tests and demonstrationplots (US$3.3 million, 4Z of baselinecosts); (d) Institutionaldevelopmentand strengtheningof EMBRAPA and other parts of the SCPA, including reform and unificationof managementand operationalsystems (US$3.6million, 4Z of baseline costs); and (e) Project impact assessmentand special studies, including continuedmonitoringand evaluationadopted under the second researchproject (Loan 2016-BR),and expansionof socioeconomic studies (US$3.2million, 4Z of baseline costs). 3.05 In order to carry out the above activities,the project would finance: (a) Research infrastructure,including: (i)

civil works at major locations,includingancillary buildings such as greenhouses,storagebuildings, laboratories,office buildings and some staff housing in more remote areas; and researchfarm development, for the further developmentof the cashew nut researchcenter at Fortaleza,and of the new center for irrigationand drainage researchat Parnaiba (US$19.6million); and

(ii)

machinery, furniture and equipment, mainly comprising office and laboratory furniture and equipment; and scientificjournals,periodicals,referencebooks and micro-filmequipment for library and documentation services;scientificinstruments;farm machinery and equipment,including farm animals for reproduction and researchpurposes (US$26.7million);

(b) graduate studies and trainingfellowships,comprisingdegree training for about 300 staff, and about 2,000 staffmonthsof t_ .'1 ( 5 0' 114 1;

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(c) consultantand specializedservices (US$9.1million); and (d) incrementaloperatingand maintenancecosts for research programs, equipment and facilities funded under the project (US$11.7million). In addition, some US$7.1 million of vehicles and US$2.0 million of computer equipment for research stationswould be purchasedby EMBRAPA (para. 3.32). Detailed Description (i) TechnologyGeneration 3.06 The NortheastRegion. The regionalresearchprogram would seek to: (a) study the factors that limit basic food productionand design adequatelytested productionpackages; (b) find alternativesolutionsfor marginal productionareas by selectionof suitablecrop and animal productionsystems; (c) where feasible,develop water-harvestingand supplementaryirrigationsystems; (d) in irrigatedperimeterswith adequate water supply, select high yield, high value crops such as grapes, tomatoes, melons and asparagus,enablingproducers to offset the high investmentand productioncosts associatedwith irrigatedagriculture;and (e) develop more productivelivestockproductionsystems through small ruminant (sheep/goat)selections,improvedpasture, supplementalfeeding, integrationwith cropping systems,and the rationaluse of native vegetation.

3.07 The programwould be carried out through the existingresearch station network in the Northeast. This includes: (a) six CNPs: for goats and hairless sheep (CNPC) at Sobral, Cear&; dairy cattle (CNPGL)at the Umbuzeiro sub-station,Paraiba;cotton (CNPA) at Campina Grande, Paraiba; cassava and tropical fruits (CNPMF)at Cruz das Almas, Bahia; Coconut (CNPCo)at Aracaj6, Sergipe; and Cashew (CNPCa),now being establishedat Fortaleza,Ceara; (b) one EMBRAPA-ownedstate level researchcenter: UEPAE-Teresinain Piaui; (c) eight state-ownedresearchcompanies: EPABA (Bahia);EPACE (Ceara);EMAPA (Maranhlo);EMEPA (Paraiba);IPA (Pernambuco);EMPARN (Rio Grande do Norte); EMPEASE (Sergipe);and EPEAL (Alagoas). The researchprogramwould be coordinatedand supervisedby CPATSA, EMBRAPA's regionalcenter for the semi-aridNortheast. This would of agricultural research funded under the also include coordination to providing continuedsupport for staff NRDP/PAPP program. In addition training, for strengtheningthe technologytransferprocess and for incrementaloperatingand investmentneeds, (e.g., laboratoryequipment, green houses, documentationand librarymaterials) for the above research programs, the projectwould finance the constructionof offices, laboratory and library facilitiesto further accommodatethe cashew researchprogram (CNPCa)at Fortaleza. Z.08 The Legal Amazon Region. The researchprogram would focus on: (a) natural resource inventoriesand socio-economicstudies to determine productionpotentialsand constraintsand providing the knowledge required for the preservationof genetic resourcesand endangeredspecies; (b) basic and applied agronomicresearchovrnative and exotic specieswith a view to

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develop resourcemanagementand productionsystems that are in harmony with the often fragile ecosystemsfound in the region; and (c) based on the above, the developmentof mixed farming systems,in collaborationwith local producers. Researchprograms dealingwith basic food crops (beans, cowpeas, cassava,maize, sorghum,and rice) would concentrateon production problemsmost commonly encountered,i.e., resistanceto plant diseases and pests, harvesting,drying, storage and marketing problems. Research involvingtraditionalperennial crops (Brazilnut, oil palm, rubber, black pepper, and guarana (Pauliniacupana)) would be supplementedby research on *new" crops, (e.g., cupuas6 (Theobromagrandiflorum);mangaba (Hancornia sDeciosa),mangabeira rubber),and several native palm species),including tests on their possible commercialvalue. Livestockproduction research would focus on properly-managedpasture establishmentand/or pasture improvementtrials, includingwork on convertingdegradedpasturesback into tree-crops. Studies on water buffalo, both for milk/beef production and for animal traction,would also be supported. 3.09 Environmentalmanagement is one of the major challengesin the Amazon Region. In responseto this, forestryresearchunder the overall direction of the National Center for ForestryResearch (CNPP) at Curitiba (Parana)would focus on the following four priority areas: (i) germplasm conservation(collectingand propagatinggeneticmaterial of species threatenedby extinction);(ii) managementof natural forest; (iii) silviculturalresearch;and (iv) agroforestryresearch. Coordination of the work program would be the responsibilityof the regionalcenter for AgroforestoryResearch for the Amazon (CPAA) (para. 2.09). The project would supportwork already initiated in developingand testing agroforestrytechniquesand would study promisingnative speciesand sustainedyield forest managementtechniques. Continuingstudies on the pulping quality of native tree specieswould also be supported. 3.10 Project-fundedresearchactivitieswithin the region would be coordinatedby the Research Center for the Humid Tropics (CPATU)at Bel1m (Part). Planning and technical inputs for specificcommoditieswould be provided by the respective national research programs (PNPs), through a senior researcherdesignatedby each commodity researchcenter. Specific researchprogramswould be supportedunder the proposed project at CPATU (Belem,Para); CPAA (Manaus,Amazonas);UEPAE-Macapi(Amapa);UEPAE-Boa Vista (Roraima);UEPAE-Beldm (Para);UEPAE-PortoVelho (Rond6nia);and UEPAE-Rio Branco (Acre). The project would finance upgrading of infrastructureat some of these researchcenters; incrementalneeds for strengthening technology transfer, staff training (including for staff of the Mato Grosso state research company, EMPA), and incremental laboratory equipment,documentationand library materials. (ii) Research Support Programs 3.11 The knowledge generatedby the service-orientedresearchsupport programswould be largely dictatedby user demand generatedwithin the SCPA and would have a broad impact on all the researchprogramswithin the system. Areas of investigationsupportedunder this project component includes biotechnology;agroindustrialand food technology;soils; environmentalstudies;and irrigationand drainage.

- 14 3.12 Biotechnology. Research in this rapidly developingnew field of producing new plant varieties and animal breeds in the laboratory,and of changing their geneticmake-up in order to increase their resistanceto environmentaland biological stresses,would be conductedat the National Center for Genetic Resources and Biotechnology(CENARGEN),located near EMBRAPA headquarters,Brasilia. Of particularinterestunder the project would be specificwork on beans, vegetables,oil palm, nitrogen fixation, agro-industrialapplications,animal I-ealthand genetic improvement,and the cataloguingof botanical resources. The projectwould finance the constructionof three additionallaboratories(for molecular chemistry, tissue culture and DNA-recombinantresearch,respectively)and ten offices, togethertotalling some 2,500 m 2 ; and an administrativeoffice (300 m2); equipmentand furniture;about 20 staffmonthsof short-termoverseas training; sixty staffmonthsof short-termforeign consultancies;books and periodicals;and incrementaloperating costs (Staff Working Paper B-17, Annexes 6 and 7, Table 37). 3.13 Agroindustrialand Food Technology. This researchprograw would be conducted at the NationalResearch Center for Agro-Industryand Food Technology (CTAA) at Guaritiba,Rio de Janeiro. Research topics would include: developingeconomicuses for fruits and plants found in the Amazon region; improvingquality control for the productionof fresh and processed fruits and vegetables in the Northeast;analyzinglittle-known products, e.g. buffalo meat and specializedmilk products,to test consumer acceptance;testing of the oil content of black pepper to ebtablish quality control and minimum norms for drying and handling; determiningthe relative market value of native fruit species and essentialoils; and evaluating the oil yield from the latest introductionsof oilpalm hybrids. The project would finance the constructionof about 3,000 mi of laboratory,pilot plant and storage space; equipment and furniturelhigher degree training for eleven staff (6 M.Sc. and 5 Ph.D.); 63 staff months of short-termtraining; 44 staffmonthsof short-termconsultancies;books and periodicals;and incrementaloperating costs (StaffWorking Paper B-17, Annexes 6 and 7, Table 38). 3.14

Soil Biology. Soil Survey and Conservation. Soil microbiology

research is the responsibility of the National Center for Soil Biology

Research (.'NPBS) at Itagui near Rio de Janeiro. The headquartersof the Soil Survey and Conservation Service (SLNCS) are located in Rio de Janeiro, and there are regionaloffices in the project area at Belim and Recife. Researchprioritiesunder the proposed projectwould be: (a) for soil microbioloty: researchon nitrogen-fixingbacteria to reduce the need for nitrogen fertilizerson main crops; studies on green manuring and (annual)crop rotationsto maintain soil fertilityat lower cost; adaptationof specific strains of the nitrogen-fixingbacteria (Rhizobia)to specific soil conditions;and studies of the relationshipof soil microbiologyto soil structureunder irrigatedconditions;and (b) for soil survey and conservationt soil survey and mapping activitiesin the Northeastand Amazon regions to meet requirementsfor agriculturaldevelopmentand/or environmental protectionin these areas; productionof soils and agroecologicalmaps for thu major agriculturalcrops in each state andlor region; studies for the improvedmanagementof the major riverine floodplain.(varzeas)in the Amazon region.

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The project would finance: (i) for CNPBS, renovationof its existing facilitiesat Itaguai;equipment and furniture;higher degree training for six staff (5 Ph.D and 1 H.Sc.); 43 staffmonthsof short-termtraining; 86 staffmonthsof short-termconsultancies;books and periodicals;and incrementaloperating costs (StaffWorking Paper B-17, Annexes 6 and 7, Table 39); (ii) for SNLCS headquarters(at Rio de Janeiro), the constructionof a 400 m2 auditoriumand 600 ml library;higher degree (Ph.D.) training for one staff; ten staffmonthsof short-termtraining; five staffmonthsof short-termconsultancies;and incrementaloperating costs (Staff Working Paper B-17, Annexes 6 and 7, Table 40); and (iii) the strengtheningof field stationsat Recife (Northeast)and Belem (Amazon region) to meet the demand for survey work in these regions. Specifically, the project would provide for the constructionof about 1,100 mz of office, labordLory,library and storage space at Belem and 875 m2 at Recife; M.Sc. training for one researcher,2 staffmanthsof short-termstaff training, and 15 staffmonthsof short-termconsultancies,for each of the two field stations,plus some equipment,furniture,books and periodicals;and incrementaloperating costs (StaffWorking Paper B-17, Annexes 6 and 7, Tables 41 and 42). 3.15 EnvironmentalStudies. The National Center for Plant Protection and EnvironmentalResearch (CNPDA),located at Jaguarinha (nearCampinas in Slo Paulo State), would carry out a researchprogram to assist all the units within the SCPA in activitiesrelated to crop productionand protectiontechniquesand their potentialimpact on the various ecosystems. Research prioritiesunder the projectwould comprise: (a) methodological and technical guidanceand coordinationof environmentalprotectionstudies which are directly related to agriculturalproductiontechniques,avoiding duplicationof efforts and providingadequate interfacewith the programs and aims of the new National Institutefor the Environmentand Renewable Resources (InstitutoBrasileirodo Meio Ambiente e dos Recursos Naturais Renoviveis,IBAMA); (b) strengthenedresearchin the areas of toxicology, and on rates of applicationand residualeffects of agriculturalchemicals; (c) researchon natural substanceswith a potential for being used in biologicalpest/diseasecontrol; (d) establishmentof quarantinesystems and guidelinesto improve the level of protectionagainst accidentalimport of pests and diseases exotic to Brazil; and (e) developmentof methods to breed beneficialinsects for use in pest control. The project would finance about 1,940 mz of civil works (laboratories,auditorium,storage and screenhouses);equipmentand furniture;higher degree training for eighteen staff (14 Ph.D. and 4 M.Sc.); 186 staffmonthsof short-term training 'most of it in national institutio.as); five staffyearsof longterm and 37 staffmonthsof short-termconsultancies;books and periodicals; and incrementaloperatingcosts (Staff Working Paper B-17, Annexes 6 and 7, Table 43). 3.16 Irrigationand Drainage. Research on irrigationand drainage would be carried out by the NationalResearch Center for Irrigated Agriculture (CNPAI),located at Parnaiba,Piaui. Prioritiesfor the rasearchprogram under the project would be: (a) basic studies within the project area, on topics such as hydrologicalconditionsor watershed characteristics,and evaluationof irrigationand drainage requirements; (b) water and soil managementtechniques;(c) engineeringand drainage techniquesfor specificcrops and/or cropping systems; (d) the

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introduction,evaluationand selectionof specificcrop varieties suitable for irrigation;and (e) studies to determineprofitabilityand socioeconomic impact of irrigatedproductionsystems. The project would finance about 1,160 mt of civil works (laboratoryand storage space; screen houses; a water storage tank; and a small transformerhouse); equipmentand furniture;higher degree trainingfor fifteent staff (3 Ph.D. and 12 M.Sc.); twenty-fourstaffmonthsof short-termtraining);thirty-twostaffmonthsof short-termconsultancies;books and periodicals;and incrementaloperating costs (Staff Working Paper, Annexes 6 and 7, Table 44). (iii) TechnologyTransfer and Dissemination 3.17 Teams composed of researchersand extension staff specializedin communicationand audio-visualmethods would be formed or existing ones strengthenedat each of the major researchcenters in the project area. The teams would ensure that: (a) technologygeneratedby the research system is appropriateand responsiveto the conditionsand needs of the local farmers; (b) technologyis disseminatedamong extensionworkers and to farmers as soon as it becomes available;and (c) there is adequate feedbackfrom farmer to researcher. Team compositionand diffusion methodologieswould be tailoredto the needs and characteristicsof the target group and area. Methods used would consist of field demonstrations, observationplots, and on-farm tests. Trainingwould aim at upgrading the skills and knowledge of extensionworkers; also, some fifteen research personnel specializedin technologytransferwould benefit from long-term training (4 Ph.D. and 11 M.Sc.). A total of 180 staffmonths(including20 overseas)of short-termtrainingwould be provided in such topics as rural development;adaptive and participatoryresearchconcepts and methodology; and communication methods and technology. In additionto providing funds for the above training costs, the project would finance 26 staffnonthsof short-termtechnical assistance;materials,audio-visualprograms and courses;and incrementaloperatingcosts (StaffWorking Paper B-17, Annexes 6 and 7, Tables 18-36). About twenty incrementalstaff to provide each of the major researchstationswith a basic team of trained staff responsible for technologytransferwould be made availableby the Governmentthrough redeploymentof existing EIBRAPA staff. It would be a conditionof effectivenessthat the Governmentwould provide satisfactoryevidence that this minimum number of staff requiredunder the project for the technology transfer componenthad been designatedwithin the various major research units benefitting from the project. During negotiations,it was agreed that EMBRAPA thereafterwould maintain in each such researchunit adequate staff for the purposes of carryingout this specializedactivity in a satisfactory manner. (iv) InstitutionalDevelopment There is a need to strengthenstate-basedagriculturalresearch 3.18 agencieswhich, within the cooperativeresearchsystem, share the responsibilityfor a6aptive researchwith the decentralizedEMBRAPA units (UEPAE's) (para. 2.06). As a result of deficienciesin organizationand employmentconditions (i.e., pay scales, trainingopportunitiesand general benefits), state-basedresearchcompanieshave not always been able to attract highly qualified staff to fill existingpositions,and to provide staff with the training opportunitiesavailable to federal EMBRAPA staff. This has been a relativelymore serious problem in the Northern and

17_

Northeasternregions of the country where similar problems are encountered in retainingqualified staff for EMBRAPA's own decentralizedunits. EMBRAPA has, in the past, assisted state-ownedresearch companiesby secondingEMBRAPA re3earchersand administrativestaff to them (Annex 2, Table 2), and by providingtechnical assistanceand trainingopportunities. The project would support the followingactivities,coordinatedby the CoordinatingUnit for OrganizationalDevelopment (CDO) f EMBRAPA's President'soffice (GPR): ti) preparationof a diagnosticstudy of each of the decentralizedEMBRAPA units and state researchcompanies; (ii) based on a planned review of all agriculturalresearchconducted in Brazil by both the public and private sector (para. 3.19), preparationof recommendations and an action plan for restructuringand strengtheningthe national research system; (iii) trainingof professionaland administrativestaff, with a strong emphasison researchmanagement training,through seminars, in-house and formal (degreeand short-term)training;and (iv) upgrading EMBRAPA's central and decentralizedlibrarieswith referencematerials on researchmanagementand institutionaldevelopment. The projectwould finance: higher degree training for a total of about 50 M.Sc. and 15 Ph.D. 6 candidatesand about 500 staffmonthsof short-term (mostlylocal) training; ninety staffmonthsof short-termconsultancies;contract research; furniture and equipment;and books and periodicals (StaffWorking Paper B17, Annexes 6 and 7, Table 45). (v) Prolect Impact Assessmentand Special Studies 3.19 Under the Second AgriculturalResearch Project (Loan 2016-BR) a monitoring system was put in place which involvedall researchcenters and programs and which allowed for comparing and assessing implementation achievementsagainst originalproject goals and targets. Common key indicatorscovered expendituresby individualresearchprogram, staff movements, training,consultantservices,overall progress in civil works construction,materials and equipmentprocurement. In additionto continuingto support the researchmonitoring system, the present project would provide funds in support of more analyticalwork, also initiated under the previous project,which is aimed at assessing the impact of agriculturalresearchprograms. The focus in those studieswould be on specific topics, such ass farmer responsesto new technologiesand practices;the role of governmentpolicies on production;the profitability of farming and employmentin the rural areas; and a planned review of all agriculturalresearchconducted in Brazil by both the public and the private sector, includinga review and redefinition,if necessary,of overall researchpriorities. Data obtainedand insightsgained would be used as inputs for the planned in-depthreview of the project in the third year of its implementation(para. 3.25); for the preparationof the project completionreport; and in the preparationof future research programs. The above studieswould be coordinatedby EMBRAPA's Planning Department (DPL) (para. 3.23). 3.20 The project would provide funding fors three nationalM.Sc. and 3 overseasPh.D. degrees; 49 staffmonthsof local short-termand 20 staff months of short-termoverseas training;126 staffmonthsof short-term consultancies;contract researchfor a total of about US$1.6 million,which includes funds enablingEMBRAPA staff to attend annual researchplanning 6/ Seventy-fivepercent of all trainingwould involve researchersand support staff from State ResearchCompanies.

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and review meetings (para- 2.08); funds for carryingout a project mid-term review (para. 3.25); and Dor preparinga project completionreport aud follow-up studies (para. 3.19). The project would also finance the purchase of some equipmentand furnituretbooks and periodicals,and incrementaloperatingcosts (Staff Working Paper B-17, Annexes 6 and 7, Table 46). Project Organizationand Implementation 3.21 Overall Organization. The project would be implementedwithin the existing EMBRAPA and SCPA organizationalstructntre (paras.2.07-2.09 and Arnex 1), and the overall responsibilities for differentaspects of project executionwould be similar to the arrangementsunder the previous two agriculturalresearchprojects. The Board of Directorsof EMBRAIAwould have the ultimate resoonsibilityfor the management of the research programs. It would oversee the collaborationamong the national commodity centers,the regionalcenters and the state-levelresearch stations,and would be responsiblefor seeing that these centers and stationsreceive the needed support from the various headquartersdepartmentsof EMBRAPA. It would also be responsiblefor decisionsabout matters directlyrelated to project implementation,such as the allocationof counterpartfunds; recruitmentand transfer of staff; and negotiatingcontractsor joint researchprogramswith other researchentities. 3.22 EMBRAPA's Budget Department (DOC), through its CoordinationUnit for Internationally-funded Projects (CPI)would be responsiblefor the overall coordinationof project-relatedactivitiesthrough a Project Coordinator. This person would be the main contactwith the Bank on all project-related day-to-day, technical, administrative and financial matters. CPIIDOC,with a fully computerized managementinformation system,would exercise its coordinatingrole through the existing regional centers within the project (CPATSAand CPATU, respectively). Under the project, in order to ensure timely project implementation,a Regional Research Coordinatorat each of the above two centers,would: (i) provide support to the researchunits within their respectiveregion in the preparationand implementationof their annual work programs (PAT); (ii) analyze, approve,and consolidatethe individualPATs; and (iii) monitor the implementationof the regionalresearchprogram. Prior to negotiations, EMBRAPAappointed within DOC a Project Coordinator with terms of references,qualifications,and experiencesatisfactoryto the Bank. EMBRAPA has also appointed,for each of the regionalresearch centers--CPATUand CPATSA--a RegionalResearchCoordinatorvith terms of reference,qualificationsand experiencesatisfactoryto the Bank. During negotiations,EMBRAPA provided assurancesthat it would create and maintain the positionsof a Project Coordinatorand two Ragional Research Coordinatorsin accordancewith terms of referenceagreed between ENBRAPA and the Bank, and thereafter,appoint to and maintain in such positions Coordinatorswith qualificationsand experiencesatistactcrvto MIBRAPP nrd the Bank.

Moreover, it was agreed that a1&agp

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coordinationwithin the cooperativeagri::u-among the aspects tn be reviewedand commentedupon during the project'& mid-term review (para. 3.25). 3.23 To support DOC in its coordinatingfunction,the followingEMBRAPA departmentswould also play a ro)' in project implementationand coordination:

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19

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(a) the Technicaland ScientificDepartment (DTC)would be responsiblefor coordinatingtechnicalaspects, for providing guidance in researchprogranming,researchmocnitoring and evaluation. including organizing annual research planning and review meetings (para. 2.08), and a-'lyzingand consolidating annual research programs; (b) the Human Resources Department(DRH) would be responsiblefor manpower developmentand project-relatedtraining; an6 (c) the TechnologyTransferDepartment (DTT)would be responsible for coordinatingand supervisingtechnology transfer and disseminationactivities. The Planning Department (DPL)would be responsiblefor project monitoring and impact assessment,and special studies.The various monitoriug and evaluationresponsibilities would be shared by a Committee under the chairmanshipof CPIIDOC and whose membershipwould include representativesof DTC, DRH. DTT, CPI/DOC,DPL and CDO/GPR. 1.24 Proiect Planningand Reporting. The Project Coordinator (para. 3.22) would obtain each year from each of the participatingState Research Agencies and from each of the above Departmentsa draft Annual Operational Plan (PAT) and budget for the coming year, consolidatethose plans and submit a draft consolidatedPAT and budget to the Bank by November 30 for its review and coument. The plans would provide detailed information concerning the activities planned by each research unit under the project (number and type of research programs; staff training; civil works construction;equipment to be procured,etc.); detailedbudgets, allocation of funds by source of funds; and implementationschedules (for civil works construction,technicalassistance,training,procurement,etc.). With regard to civil works, each PAT would contain a detailed scheduleof works proposed for the forthcomingtwo years, specifyingthe type of construction proposed; area to be constructed;proposedbid date; estimatedconstruction time; estimated total cost; and ranking of the proposedprojects in order of priority. As part of the draft consolidatedPAT, EMBRAPA would furnish to the Bank satisfactoryevidenceof ownershipor of long-termuser rights to the land where project-fundedconstructionwould be undertaken. Assurances on the above planningprocedureswere providedby EMBRAPA during negotiations. It is expected that the consolidatedbudget would be approved by the BrazilianCongressby December15 of each year. 3.25 Twice a year, DOC through the Project Coordinator,would prepare and send to the Bank progress reports on the items and activitiesoutlined in the PAT. The first report, covering the period January 1-June 30, would be sent to the Bank each year by September30. It would present project progress in a mostly quantitativeform throughkey indicators. The second report, covering the period January 1 to December 31 of each year, would be sent to the Bank annuallyby April 30 of the followingyear. The latter report, in addition to providinga quantitativeupdate of project progress during the second semester,would be more descriptiveand analyticalwith respect to the previous year's researchresults,the problems faced and solutionsprovided. Any special evaluationstudiesprepared by DPL (para. 3.23) would be provided to the Bank for review and comments. During

- 20 the third year of the project,EMBRAPA, assistedby a team of experts paid under the project,would carry out a major review of project activities, and assess project impact and overall researchprioritiesin the light of the project's objectives,targets and long-termgoals. The mid-term review would also assess organizationalaspects, includingresearchplanning and coordination;monitoring,evaluationand technologydisseminationsystems; feed-backmechanismsand the effectivenessof research-extension linkages establishedunder the project. Similarly,DOC would be responsiblefor preparing the project completionroport which would summarizethe project's performanceand evaluatethe lessons learned during its implementation. During negotiations,EMBRAPA provided assurancesthat: (a) semi-annual reports would be prepared and sent to the Bank for review with the contents and by the annual dates specifiedabove: (b) special evaluationstudies prepared by DPL would be furnishedto the Bank for review and comments; (c) EMBRAPA would arrange for a major mid-term review of project activities, impact and priorities and organizationaland institutional arrangements,by a team of internationalexperts,whose terms of reference would be presented to the Bank for approvalby March 31, 1992, and whose final report would be presented to the Bank by September30, 1992; and (d) any researchprogram and organizationalchanges recommendedin the report and agreed upon between EMBRAPA. and the Bank would be implemented thereafterby EMBRAPA. 3.26 ContractualArrangements. For the purpose of carrying out specific,project-fundedactivities,EMBRAPA would enter into contractual arrangements,on terms and conditionssatisfactoryto the Bank, with other participatingresearch-executing entities, for example,universities. Specificallyalso, EMBRAPA, for the purposes of the project,would eater into a contractualarrangementwith each of the state researchcompanies within the project area. During negotiations,EMBRAPA provided assurances that: (a) terms and conditionsfor such contractualarrangementswould include annual work plans and would set out execution guidelines,targets and procedures, including funding, reporting and monitoring arrangements; and (b) it would ensure that each of the entities would submit semi-annual progress reports to EMBRAPA for inclusionin the semi-annualreports to be sent to the Bank (para. 3.25). It would be a conditionof effectiveness that contractualarrangementsbetween EMBRAPA and the nine participating State research agencieswith terms and conditionsagreed with the Bank, would have been signed. 3.27 Accounts and Audits. Separateproject accountswould be kept by the InternationalAgreementsDivision (Divislode Convenios)of EMBRAPA's Finance Department (DFN). Its coded accountingsystem allows for the identificationat any time, of expendituresby source of funds. Decentralizedunits would send their computerizedsummariesto DFN on a weekly basis. EMBRAPA's registersand general accounts, includingthe FESA Special Account held abroad (para. 3.34), are regularlyaudited by the National Treasury (STN/MINIFAZ).Also, internalauditors (Assessoriade Auditoria Interna,AUD) in the Office of the Presidencycarry out complete financialand operationalaudits of all EMBRAPA units. These audits include evaluationsof systems and proceduresfollowed. Assuranceswere provided during negotiationsthat: (a) the SpecialAccounts and project accountswould be established,maintainedand audited annuallyin accordancewith appropriateauditingprinciplesconsistentlyapplied,by independentauditorsacceptableto the Bank; (b) with respect to withdrawals on the basis of Statementsof Expenditures(SOEs),EMBRAPA

- 21

-

would ensure that such audits contain a separateopinion by said auditors as to whether the SOEs, togetherwith the proceduresinvolved in the preparation,support the relatedwithdrawals; (c) certified copies of the audited accounts and of the auditors' reportswould be submitted to the Bank within six months of the close of each fiscal year; and td) monthly certified statementsof the CESA and FESA would be fnirnished to the Bank. Project Costs 3.28 Total project costs, includingcontingencies,are estimatedat US$97.8 million, with a foreign exchangecomponentestimated at US$ 47.0 million, or about 482 of the total project cost. Details are in Annexes 3 and 4 and in Staff Working Paper B-17. Project baseline costs have been estimated as of the da+ of negotiations(August1989) and amount to about US$82.1 million, inclu_.ing US$5.1 million equivalentin local taxes. Physical contingenciesof US$3.2 million or about 42 of the total baseline cost, have been estimatedat 102 for civil works and 52 for equipment, furniture,books, and periodicals. Price contingenciesof US$12.4 million equivalentwere included,based on estimatedinternationalinflationrates of 7.22 per annum for 1989 and 4.42 for 1990 through 1995. It is assumed that periodic local currencydevaluations,estimatedon a purchasingparity basis, would compensatefor differencesbetween projectedU.S. dollar inflation and local inflationrates. FinancingPlan 3.29 The proposedBank loan of US$47.0 million equivalentwould finance about 502 of total estimatedcosts, net of taxes, or 482 of total costs including taxes. The loan which would finance 1002 of foreign exchange costs, would be repayable over 15 years, including a five-year grace period, and would bear interestat the Bank's standard variable rate. The FederativeRepublic of Brazil would be the Borrower and the proceeds of the loan would be passed on by the Federal Governmentto EMBRAPA on a grant basis through a SubsidiaryAgreement. During negotiations,EMBRAPA provided assurancesthat it would make availableto each participating entity, funds in accordancewith the amounts and timetable specifiedin the approved annual operationalplan (PAT). Conditionsof loan effectiveness would be thats (a) the SubsidiaryAgreementhad been duly entered into between the Federal Governmentand EMBRAPA; and (b) the Governmentwould have provided evidence to the Bank that the 1990 proposed federal budget provides for the funds requiredby EMBRAPA to implementthe 1990 consolidatedPAT. To enable EMBRAPA to prepare for start-upactivities, project expenditures(for civil works; consultanciesand training; furniture and equipment;and researchprogram inputs) incurredafter April 20, 1989 to the date of signing (expectedwithin twelve months) would be eligible for retroactivefinancingup to a maximum of US$4.7 million, or 102 of the loan amount.

- 22

-

Procurement 3.30

Procurementarrangementsare sunmmarized in the followingtable: ProcurementArrangements (US$ million)

Project Element ICB Civil Works Furniture and Equipment

23.0 (10.1)

LCB

1.0 (0.5)

24.7 (12.8)

3.2 (0.4)

5.6 (5.6)

31.8 (16.1)

10.4 (5.5)

10.4 (5.5)

17.1 (10.4)

17.1 (10.4)

4.0 (0.7)

9.7 (1.5)

13.7 (2.2)

30.9 (13.4)

43.8 (23.5)

97.8 (47.0)

Training

Total

23.0 (10.1)

TOTAL

23.7 (12.3)

TechnicalAssistance

OperationalCosts

OTHER

Note: Figures in parenthesesare the respectiveamounts (including contingencies)expected to be financedby the Bank. 3.31 Because of the widely dispersednature and relativelysmall size of individualcivil works contracts,it is unlikely that foreign contractorswould be interestedin building the proposed facilities. The largest single contractwould be less than US$2.5 million. Accordingly. Local CompetitiveBidding (LCB) procedures,which are satisfactoryto the Bank, would be used for civil works construction. Interestedforeign bidders would be allowed to participate. Where constructioncontracts are expected to exceed US$750,000,plans, specifications.sod other bidding documentswould be submittedto the Bank for review prior to the Invitation to Bid being issued. Once bids have been receivedand evaluated,EMBRAPA would send the Bank a copy of the bid evaluationand their recommendation for contract award. For constructioncontractsexpected to cost between US$150,000and US$750,000,EMBRAPA would use model bidding documents that were reviewed at negotiations. Once bids are receivedand evaluated, EMBRAPA would send the Bank a small scale floor plan indicatingwhat is proposed to be built and a copy of the bid evaluationwith their recommendationas to the successfulbidder. Prior Bank review would not be required for any civil works contractsbelow US$150,000. Work by force accountwould be permitted for small works (mostlyimprovementsto existing

- 23 facilities). The aggragatevalue of such works would not exceed US$1.0 million equivalent. Total civil works procurementunder the project is estimated at US$24.7 million. 3.32 Where possible, goods to be procuredwould be grouped into contracts amounting to more than US$250,000to be awarded through InternationalCompetitiveBidding (ICB) following the Bank's Guidelinesfor procurement. These would include the purchase of farm and laboratory equipment. Such procurementwould amount to an estimated total of US$23.0 million. Contracts for goods below US$250,000would be procured through LCB proceduressatisfactoryto the Bank. The aggregatedvalue of such contractswould amount to an estimatedUS$7.2 million. Books and periodicals,up to a total of US$5.6 million, would be procured through direct purchase from the publishers. Vehicles, computersand electronic equipmentmanufacturedin Brazil and requiredby the project are reserved procurementitems and would not be financedunder the proposed loan. Their estimatedcost, of US$7.1 million for vehicles, and US$2.0 million for computerequipment,has been excluded from the total project cost. During negotiations,EMBRADA provided assurancesthat these items would be procuredwith its own resources,in a timely manner. 3.33 Contracts for goods for more than US$250,000,and the first two contracts below US$250,000for goods, and for civil works for more than US$750,000would be subject to prior Bank review of bidding documents,bid evaluations,award proposals and final contracts. In total, Bank prior review would cover about 522 of the aggregatevalue of contracts for goods and civil works financedunder the project. Fellowships.trainingprograms and consultancyservices involvingBrazilianuniversities,institutions, consultingfirms, both foreign and Brazilian,and individualconsultants would be administereddirectlyby EMBRAPA. All consultantservices, totalling 934 months, would be procured in accordancewith the Bank's "Guidelinesfor the Use of Consultants.' During negotiations,EMBRAPA provided assurancesthat the above procurementarrangementswould be followed. Disbursements 3.34 In order to reduce the intervalduring which the Governmentwould finance the Bank's share of project costs with its own resources,a Special Account in U.S. dollarswould be establishedin the Central Bank to cover local currency expenditures. The amount deposited in this Special Account (CESA) could be increasedor decreasedby the Bank as requiredfor project execution,but would not exceed US$2.0 million. EMBRAPA would be entitled to make periodicwithdrawalsfrom the SpecialAccount at the exchangerate applicableon the day upon which each payment for eligible local expendituresis made. Foreign exchangeexpendituresincurredwould be made from a second Special Account (FESA) which would be establishedby EMBRAPA in a commercialbank abroad acceptableto the Bank, with an initial deposit also of US$2.0 million. The Bank would replenishboth SpecialAccounts for the amount of withdrawalson account of eligible expendituresat the request of the Federal Government. The proceedsof the Bank loan would be disbursed against the followingcategories,as indicatedbelow:

- 24 -

Category

Allocationof Loan Amount (US$ million)

Percentageof Total Expendituresto be Financed

(1) Civil Works

11.8

502 of total civil works

(2) Equipment & Furniture (Includesbooks and livestock)

14.0

100? of foreign and 15? of local expenditures

(3) TechnicalAssistance

4.8

100? of forwign expenditures

(4) Training

9.4

100? of foreign expenditures

(5) IncrementalOperatingCosts

2.0

25Z of incrementalcosts up to an amount of US$0.8 million, 202 up to an aggregateamount of US$1.9 million, and 4? thereafter

(6) Unallocated

5.0

Total

47.0

Disbureementsfor contractsnot exceedingUS$150,000,force account and operatingexpensesnot made under contract,would be made against Statementsof Expenditures(SOEs)prepared by the various executing agencies and certifiedby the Project Coordinator. Supporting documentationwould not be submittedto the Bank, but would be available for inspectionby the Bank during project supervisionmissions. 3.35 A five-yeardisbursementperiod is planned. The two previous Bank-financedagriculturalresearchprojectswere disbursedin 7 and 6 years, respectively(paras.2.17 and 2.18). In the latter case, the sixth year was needed primarily to complete disbursementsfor foreign fellowships. Since appraisal,significantchanges in EMBRAPA'smanagement and management structurehave been introducedand EMBRAPA has moved quickly to set in motion needed arrangementsfor procurementand implementation. During negotiations,the Bank reviewedwith EHBRAPA the draft operational plan (PAT) for the first twelve months and civil works proposals for the first two years of the project. The PAT (para. 3.24) provides detailed plans for all project-relatedactivities. Civil works constructionunder the project would be subject to more rigorousand systematicforward planning, and supervisionduring constructionwould be strengthenedunder the overall coordinationof a national coordinatorwithin EMBRAPA's CoordinatingUnit for Architectureand Engineering (CEA) and much of the civil works procurementwould be based on model bidding documents whose format and content has already been agreed to between the Bank and EI4RAPA (para. 3.31). For these reasons,and because the proposed lending operation is relatively small, project implementationand disbursementsare not expected to exceed five years (Loan and Projec_. Summary and Annex 6).

- 25 -

Proiect Benefits and Justification 3.36 Economic Benefits. The beneficialeconomic impact of farmerfocussed agriculturalresearchprogramsexecutedby a well-organizedand adequatelyfunded researchorganizationis amply demonstratedin the case of Brazil. From a relativelypoorly staffed and organizedinstitutionin 1972 when it was created,EMBRAPA today is recognizedworldwide as a respectedresearch organizationwith well-trainedstaff. A 1983 OEDreport,7 reporting on the outcome of a review of the Bank's experiencein supportingagriculturalresearch and extension through a sample of 128 projects in ten countries,reportedfavorably on the Brazilian case. Other studieshave demonstratedthat economicreturns to agriculturalresearch are generallyhigh, particularlywhere the current level of technologyis relativelylow, as is the case in Brazil'sNortheasternand Legal Amazon regions. Project impact studies carried out by EMBRAPA under the recently completed Second AgriculturalResearch Project (Loan 2016-BR) suggest economic rates of return to newly generated and adopted technologiesof between 40S and 43S. 3.37 Fiscal Imvact and Cost Recovery. Although returns to investments in agriculturalresearch are generallydifficult to quantify,past investmentshave made significantcontributionsto the country's expanding agriculturalproduction (para. 3.36). Accordingly,the economic activities generatedby the proposedproject are expected to provide the states in the Northeasternand Amazon regions of Brazil with much-neededadditional fiscal revenues generatedby the federal tax on the circulationof goods (ICM) that would apply to the incrementalmarketableprotuctionand which would be retained by the respectiveState Treasuries. In addition,by improvingthe SCPA's administrationand coordinationin the Northeast,the proposed project would contributeto increasedpublic sector efficiencyand improvedfiscal managementin the long run. 3.38 EnvironmentalImpact. Major researchprograms funded under the project have been designed in recognitionof the importanceof protecting the country's natural resourcesand of preservingthe world's genetic resources (paras.3.06-3.16). Work initiatedunder the previousBanksupported researchprojects to develop economicallyviable farming systems that are compatiblewith the ecosystemwould continueto be supported. This would include crop researchdealingwith biologicalpest control and integratedpest management;agro-forestry;land and genetic resource inventories;and biotechnologyresearchaimed at developingin crop species tolerance to adverse natural conditions,including insect and disease tolerance and resistance;establishinggene banks; and increasingthe efficiencyof major crops in their utilizationof phosphorusand nitrogen. Consequently,theproject would make a significantcontributionto furthering the scientificknowledge required for improvednatural resource and environmentalprotectionwithin the context of sustainedagricultural development.

7/ OperationsEvaluationDepartmentReport No. 4604s The World Bank. StrengtheningAgriculturalResearch and Extension. The World Bank Experience. September1, 1983.

- 26 -

3.39 Proiect Risks. Optimum returns to researchdepend upon the degree of coordinationbetween researchand extension at the state and field level and the feed-back received from farmers. The proposedproject would strengthenthe technologydiffusionprocess and the linkagesbetween research, extension and the farmers. Research results can also be nullified by unfavorablepolicy decisionsaffecting returns to farming. However, other Bank-supportedlendingoperationsin the sector, ranging from policy-basedsector lending to regionalrural development(NRDP and Northwest DevelopmentProgram),and operationsin the irrigationsubsector, are designed as parts of a coherent strategyand effectivelyreduce this type of risk. Finally, delays and shortfallsin counterpartfunding from the Federal Governmentcould representa major risk. The supportwhich agriculturalresearch enjoys at the Federal and State level, togetherwith a sound annual planning and budgetingprocess, should help to mitigate this risk. IV. 4.01

AGREEMENTS REACHED AND RECOMMENDATION

During negotiations,

EMBRAPA provided

assurances

that

it would:

(a)

maintain within each of the major research units adequate staff for the purposes of carrying out the technology transfer under the project;

(bI

and two create and maintain the positions of a Project Coordinator Regional Research Coordinatorsin accordance with terms of reference agreed to between EMBRAPA and the Bank and thereafter appoint to and maintain in such positions Coordinatorswith qualificationsand experiencesatisfactoryto EMBRAPA and the Bank (para. 3.22);

(c) submit a draft consolidatedAnnual OperationalPlan (PAT) of the scope outlinedin para. 3.24, and a proposedbudget to the Bank for its review and comment by November30 of each year (para 3.24); (d) furnish to the Bank, as part of the Annual OperationalPlan (PAT), satisfactoryevidenceof ownershipor long-termuser rights to the land where project-fundedconstructionwould take place (para. 3.24); (e) prepare and send to the Bank for review semi-annualprogress reporta with the contentsand by the dates specified in para. 3.25; (f) send special evaluationstudiesprepared by DPL to the Bank for its review and comment (para. 3.25); (g) during the third year of the project and assistedby a team of experts, it would arrange for a mid-term review of project activities, project impact and priorities;organizationalaspects, including research planning and coordination; monitoring, evaluation and technologydisseminationsystems,and the

-

27 -

effectivenessof feed-backmechanismsestablishedunder the project; it would present the team's terms of referenceto tha Bank for approvalby March 31, 1992; it would present the team's report no later than September30, 1992, and program adjustments rrconmendedin the report and agreed upon between EMBRAPA and the Bank would be implementedthereafterby EMBRAPA (para. 3.25); (h) cause participatingentities to prepare and submit to EHBRAPA semi-annualprogress reports (para. 3.26); Mi) contractualarrangementsentered into between EMBRAPA and other participatingresearch-executing entitieswould be on terms and conditionssatisfactoryto the Bank; terms and conditionsfor contractualarrangementswith State researchcompanieswould include annual work plans and would set out executionguidelines, targets and procedures,including funding,reportingand monitoring arrangements;the semi-annualprogress reports prepared by each of the entitieswould be includedin EMBRAPA's semi-annual progress reports to be sent to the Bank (para. 3.26); (j) make available to each project-executingagency, funds in accordancewith the amounts and timetable specifiedin the approved annual plan (PAT) (para. 3.29); (k) procurementprocedureswould be as specifiedin paras. 3.30-3.33; and (1) ENBRAPA would provide assurancesthat vehicles and computer equipment required by the project would be procured in a timely manner (para 3.32). 4.02 During negotiations,the Federal Governmentand EMBRAPAprovided assurancesthats (i) the Special Accounts and the project accountswould be established,maintainedand audited annually in accordancewith appropriateauditingprinciplesby independentauditorsacceptableto the Bank; (ii) terms of reference for the auditorswould include the requirementthat the auditorsprovide a separateopinion as to whether the SOEs, togetherwith the proceduresinvolved in the preparation,support the related withdrawals;and (iii) certified copies of the auditors' report would be submittedto the Bank within six months of the end of each fiscal year (para. 3.27); and (iv) monthly certifiedstatementsof the CESA and FESA would be furnishedto the Bank (para. 3.27(d)). 4.03 Conditionsof loan effectivenesswould be that: (a) the minimum number of twenty staff requiredfor the technologytransfercomponenthas been assignedwithin the various major researchunits benefittingfrom the project 'para. 3.17); (b) contractualarrangementsbetween EMBRAPA and participatingstate researchagencies,with terms and conditionsagreed with the Bank, would have been signed (para 3.26); (c) the Subsidiary Agreement between the FederaL Governmentand EMBRAPA has been duly entered into (para. 3.29); and (d) the Governmentwould have provided evidenceto the Bank that the 1990 proposed federal budget provides for the funds requiredby EMBRAPA to implementthe 1990 consolidatedresearchprogram funded under the project (para. 3.29).

;

- 28 -

4.04 Subject to the above agreementsand conditions,the proposed project would be suitable for a Bank loan of US$47.0 million equivalent with a term of 15 years, includinga 5-year grace period.

September 11, 1989

- 29-

ANNEX 1 Chart 1 Page 1 of 3

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-30-

ANNEX 1 Chart 1 Page 2 of 3

LEGEND: AIRP ASSESSORIA DE IMPRENSA E RELASOES P1OBLICAS AJU ASSESSORIA JURtDICA AUD ASSESSORIA DE AUDITORIA INTERNA CAA COORDENADORIA DE ACOMPANHAMENTO E AVALIA,AO CAE COORDENADORIA DE APOIO E EXPEDIENTE CAM COORDENADORIA DE ADHINISTRA,AO DE MATERIAIS CAP COORDENADORIA DE APOIO A PROGRAMA,AO DE PESQUISA CAR COORDENADORIA DE ADM'NISTRAQAODE RECURSOSHUMANOS CBE COORDENADOR:.A DE BEM-ESTAR CCF COORDENADORIA CONTABILE FISCAL CCI COORDENADORIA DE COOPERAq,AO INTERNACIONAL CCM COORDENADORIA DE COI4ERCIALIZAAO DE PUBLICA96ES CCP COORDENADORIA DE CONSULTASE PARECERES CCT COORDENADORIA DE CONTENCIOSO CDC COORDENADORIA DE DOCUMENTA,AO TtCNICO-CIENTfFICA CDO COORDENADORIA DE DESENVOLVIMENTO ORGANIZACIONAL CDR COORDENADORIA DE DESENVOLVIMENTO DE RECURSOSHUMANOS CDT COORDENADORIA DE DIFUSAO DE TECNOLOGIA CEA COORDENADORIA DE ENGENHARIAE ARQUITETURA CENARGEN CENTRONACIONALDE RECURSOSGENtTICOS E BIOTECNOLOGIA CFO COORDENADORIA FINANCEIRA E DE EXECUgAOORACAMENTARIA CIC COORDENADORIA DE INFORMA,AOTtCNICO-CIENTtFICA CNPA CENTRONACIONALDE PESQUISA DE ALGODAO CNPAI CENTRO NACIONAL DE PESQUISA DE AGRICULTURA IRRIGADA CNPAF CENTRO NACIONAL DE PESQUISA DE ARROZ E FEIJAO cNPCa CENTRO NACIONAL DE PESQUISA DE CAJff CNPC CENTRO NACIONAL DE PESQUISA DE CAPRINOS CNPCo CENTRO NACIONAL DE PESQUISA DE COCO CNPDA CENTRO NACIONAL DE PESQUISA DE DEFESA DA AGRICULTURA CNPF CENTRO NACIONAL DE PESQUISA DE FLORESTAS CNPFT CENTRO NACIONAL DE PESQUISA DE FRUTEIRAS DE CLIMA TEMPERADO CNPGC CENTRO NACIONAL DE PESQUISA DE GADO DE CORTE CNPGL CENTRO NACIONAL DE PESQUISA DE GADO DE LEITE CNPH CENTRO NACIONAL DE PESQUISA DE HORTALICAS CNPMF CENTRO NACIONAL DE PESQUISA DE MANDIOCA E FRUTICULTURA CNPMS CENTRO NACIONAL DE PESQUISA DE MILHO E SORGO CNPO CENTRO NACIONAL DE PESQUISA DE OVINOS CNPSo CENTRO NACIONAL DE PESQUISA DE SOJA CNPSA CENTRO NACIONAL DE PESQUISA DE SUtNOS E AVES CNPT CENTRO NACIONAL DE PESQUISA DE TRIGO CNPUV CENTRO NACIONAL DE PESQUISA DE UVA E VINHO COR COORDENADORIA DE OR,AMENTO CPAC CENTROPESQUISA AGROPECUARIA DOS CERRADOS CPAP CENTRODE PESQUISA AGROPECUARIADO PANTANAL CPATB CENTRO DE PESQUISA AGROPECUARIA DE TERRAS BAIXAS DE CLIMA TEMPERADO CPATSA CENTRO DE PESQUISA AGROPECUARIA DO TR6PICO SEMI-ARIDO CPATU CENTRO DE PESQUISA AGROPECUARIA DO TR6PICO OMIDO CPE COORDENADORIA DE PRODUCAO EDITORIAL CPG COORDENADORIA DE SERVI,OS E PRODUCAO GRAFICA CPI COORDENADORIA DE PROJETOS INTERNACIONAIS CPN COORDENADORIA DE PROJETOS NACIONAIS CPS COORDENADORIA DE PRODUCAO E SUPORTE CSC COORDENADORIA DE SISTEMAS DE COMPUTA,AO

- 31-

;

CSG CST ';TM DFN DID DIN DPU DRH DRM DTC DTT GPR NTIA SNLCS SPSB UAPDIA UAPNPSA UEPAE

ANNEX I Chart 1 Page 3 of 3

COORDENADORIA DE SERVI9OS GERAIS DA SEDE COORDENADORIA DE PRESTAgAO DE SERVICOS TtCNICOS CENTRO DE TECNOLOGIA AGROINDUSTRIAL DE ALIMENTOS DEPARTAMENTOFINANCEIRO DEPARTAMENTODE INFORMACAOE DOCUMENTAgAO DEPARTAMENTODE INFORMATICA DIVISAO DE PUBLICA96ES DIVISAO DE RECURSOS HUMANOS DTVISAO DE RECURSOS MATERIAIS DEPARTAMENTO TkCNICO-CIENTIFICO DEPARTAMENTO DE DIFUSAO E TRANSFER2NCIA DE TECNOLOGIA GABINETE DO PRESIDENTE NICLEO TECNOL6GICO PARA INFORM0TICA AGROPECUARIA SFRVICO NACIONAL DE LEVANTAMENTO E CONSERVA,AO DE SOLOS SERVI,O DE PRODUgAO DE SEMENTES BASICAS UNIDADE DE APOIO A PESQUISA E AO DESENVOLVIMENTODE INSTRUMENTACAO AGROPECUARIA UNIDADE DE APOIO AO PROGRAMA NACIONAL DE PESQUISA DE SAtiDEANIMAL UNIDADE DE EXECUgAO DE PESQUISA DE AMtITO ESTADUAL

32

-

-

ANNEX2 Table 1 sRZIL T1M AURICIUstALRESEA

RJECT

1 ERDWASTAFFBYCATEOT BYLOCATIUN /

LOCATION

C ATEGORY

Region North Northeast Center-West

Res-erchers

South

Southeast

H SwamU i.

260 (176)

279 (803)

861 (282)

294 (260)

a8o (294)

98 (146)

766 (402)

796 (674)

1,116 (746)

767 (689)

767 (681)

25 (62)

2 Secondsd /

278 (70)

Total

1,909 (1.529)

Junior (i) (BSc) Senior (ii) (MSc) Senior (ili) (Phd) Research Assistanta

Aaministratlon

Total

X Distribution

281

890

424

(171)

(816)

(816)

1,807 (086)

1,464 (1,296)

1,901 (1,344)

1,867 (1,110)

1,460 (1,276)

16.6 (19.2)

21.6 (20.0)

16.5 (16.6)

10.6 (16.9)

16.0 (12.4)

852

268

(211)

(801)

196 (9)

4,465 (8,808)

497

281

2,461

(546)

(40)

(1905)

615 (756)

700 (119)

8,628 (6,787)

7.0 (11.2)

7.0 (1.6)

100.0 (100.0)

1/ Source: EMBRAPA. Situation as 1 January81, 1989. Figuresin parenthes show the situationas of January 81, 1961. 2/ EMURAPAstaff*econdedto other agncles

(see Table 2 of Annex 2).

-

33 ANNEX2 Table 2

THI ERAA

RECEIVINOAGENCY

AGRICULTUMAL RESEAlR PROJCT STAFF SECOIE TO O0lE AOSCIES

RESEARCHERS RESEARCH ASSISTANTS ADMINISTRATION

TOTAL

NORTHEAST EMCAPA(Capixaba) EMEPA/PO(Paraiba) EIMPARN (Rio Orande/Norte) EPADA(Behl)) EPACE(C.ari) EPEAL(Alagoas) IPA (Pernambuco)

8 15 19 15 20 14 19

2 27 88 7 2 81 16

1 22 21

a

6 24 11

11 64 78 26 27 69 40

110

119

87

815

6 7 2

6 2

1 1

12 14 6

16

8

9 1

6 -1

2

17

10

0

2

10

25 17 1

16 44 -

11 23

a

52 84 4

4a

60

7

140

-

1

1

Universoltio

10

1

11

MINAGRI

41

1

40

62

Others

44

a

66

102

278

196

231

700

Subtotal NE LEGALAMAZON EMAPA(Maranhlo) EMOOPA (Golds) EUPA/MT(Mato Grosso) Subtotal

Lgal

Amazon

Si1

SOUTh EUPASC(Sta. Catarlna) IAPAR Subtotal

South

SOUTHEAST EPAMIG(MinesCorals) PESAGRO/RIO(Rio do Janolro) PI/SP (SI. Paulo) Subtotal

SE

CENTER-WEST EMPAER(Mato Grosso/Sul)

GRAM TOTAL Source:

EIMRAPA. Situationas of February1989.

.f

-

H

ibQA.IL PROJECT RESEARCH THIRDAGRICULTURAL EiBRAPA: SOURCESAND APPLICATION OF FUNDS, 197a-1989

CZ21.00 (current)

I

IINCOME SOURCES

1971

1980

198M

1SS

1 I

1,671,178,383 609,183,637 33,709,388 22,740,880 86,837,389 272,654,792 13,964,56s 19,064,390

4,698,161 414,727 454,876 937,969 770,860 866,262 165,091

……------------------

TOTAL INCOME/SOURCES

I 2,268,922

AND OTHER EXPENDITURES IINVESTMENTS

I

I 1.

I

Civil Works and Land Acquisition 12. Equipment and Other Investments 13. OperationalCosts-Salaries 14. Other Operating Expense IS. Transfers to State Companies I I TOTAL EXPENDITURES/CATEGORY

19890

_~~~~~~~~~~~~~-===G== =====-=…C_

I 1,107,645 II. Fedural Government 334,601 12. Special Projects 13.EMBRAPA Receipts (sales, etc.) 73,247 t 98,733 14. Other Contracts and Agreemnts 1t. Federal Operational I 439,948 Credits (internal) I 106,653 (external) Credits 109,096 18. Balance from Previous Year's Operation I I

1988

1987

|

I

I

--

--

83,564,464 3,898,862 ----------

8,297,716

168,024,684 50,463,804

1,608,000 346,268,460 226,543,870 --------7,063,674,726

-------------2,115,105,341

820,160,568

41,088,343,000 163,262,569,00c 1,800,000,00C 110,584,639 642,436,000 766,821,239 4,286,030,000 14,334,111,OOC 1,138,629,000 400,0O0,00t. 72,483,328

6,630,386,300

--

--

5,197,193,000

41,072,369,00C 6,639,711,00C

579,318,000

---------

__3==…===_____=_

74,878 76,892 1,021,608 409,371 446,717 ----------

I 2,028,366

1,045,410 38,079,806 306,339 37,87,0836 $,941,411 430,187,268 1,622,901 226,629,266 1,067,2 39,923,381 ------

8,003,823

-

--

-----

- --

769,706,733

-

_

436,360,813 4,036,474,000 114,360,610 94,610,463 299,138,171 4,533,551,000 23,779,829,000 999,824,011 3,?72,087,021 9,654,691,000 631,473,120 1,671,016,710 148,393,279 396,754,382 2,287,693,000 ----

-

---

-

1,888,661,473

---

-------------

6,474,368,097

-----------

44,292,239,000

I I

--------------229,so8,776,00c

62,931,949,000

-

15186,833,0OC 39,S77,664,00C j 113,671,080,00C 1 67,636,692,00t

--

1

3,637,607,00C

I

-------------

t

229,608,776,0OC-

* PREVISAOEM NCaS 1.00 Source: EMBRAPA-SEP/CCR

9b|Z i-rq In m

wt

>X

*RUL THIRDAtICILTRAL RESEARCH PROJECT DIStRIITN

OF RESEARCPROWAS BY PROJECTREGON AND 1PLMI

RESEARCH UIT1/

RESEARCN UUT

BENS MAIZ DAIRY AND AND OIL TROP. CATTLE COATSBUFFALORICE COPEAS CASSAVASORGHUM PALM RUBER FORESTRYFRUITS2 /

BLAOC COCONUTS PEPPER CAHE

CO-ON

Amatgnia Roslon CPATU

o

o

o

o

aNSD LEPABLEM

0

U. AAUS

U. PTO. VELM U. KIO BRANCO

0

o

0

0

0

0

o

o

o

o

0

0 o

o

0 o

0 o

o

o

o

o

0o

o

0

0 0

0

o

o

o

o

o

o

o

o

0

U. DA VISTA U. MACAPA

o

o

o

o

o

0

0

U

N.E. Region CPATSA

o

o

o

NWA

aCWC

0

o

CNCa

CrUL

o

Crip

U. TERESINA

o

o

o

o

0

o 0

CIFAI 1/ For acronymsused, smmGlossary of Acronyms. E/ Comprise citrus, banana, pineapple, mango, and native Aazonion species sich as guarand (Paullinia cupuagI(Theobromagrandiflorum), etc.

cupana), 00

0a,

THIRDACRICtLTURAL R£SEARM" PROJECT DISTRDBTIONOF RESEARC0 PROWAMS BY PROJECTREGtON AND IVALEMENTIN RESEA-C UNIT

RESEARCH UNIT'/

BEAMS -MAZE DAIRY AND AND OIL CATTLE COATSBUFFALORICE COVPEAS CASSAVASOROHUM PALM RBER

BLACK COCONUTS PEPPERCASHEW CC-TON

TROP.2 FORESTRY FRUITS /

N.E. Region(Cont'd) Stat.OwnedConp oies EPABA(BA)

o

o

o

°

°

o

o

EWASI (SE)

o

o

o

o

o

o

o

oc

0

0

0

0

o 0

o

0

o

o

o

o

o

o

o

o

o

o

o'

o

o

o

o

o

o

o

IEAL (AL)

o

o

EEA

o

o

IPA (PE)

o

o

EFACE(CE

o

o

EWARN

(RN)

o

0

EMAPA (MA)

o

0

(

o

0

0

0

0

0

0

0

0

0

0

0

0

0

C

0

0

0

0

0

c

0

11 For acronymsused, mm Gloemaryof Acronyms. 2/ Compris citrus,banona,pineapple, mango,and nativeAmazonion species such as guarani(Poullinis cupens), cupuagoutThobrom grandiflorum), etc.

0'I. .t

0

N1

N

-37 ANNEX2 Table 5 hAlL

1H11 AZICULIAtALhESSARO PI£JCT *IS51WZ4TIONOF fuSURCW SUPPUT FROMMR ST REKAW UNIT

RESEK103 UVPT

_EAR UNIT

kI

CENAROEN

SIO1ECULOGY

AOIIUROUSR AM FOOD lECHOLOGY

$O(IL CUUUVATIO A SOIL BIOLOGY

PROWAM

FIT PROECTIONAM D SWUlWAL IMACT

IRGATION l ORAIUGE

BASIC Sim PROOCT= 1 / o

S

0

CTAA UAPWFBS

5

°

SNLCS

5

O

SpSa!/

8

Amazon Region CPATU

o

o

o

CNPSD

o

o

o

o

U. BELEI

o

° 0

0

0

U. PTU. VELHO

0

0

U. RIO BRANCO

0

0

U. BOA VISTA

0

U. UAAPA

o

U. IANAUS

0

N.E. Reglon CPATSA

o

o

o

0

0

o

o

0

0

CNPA

CNPOC ctwca

--

CWGL CNPIIF

o

CI4PM OwAI

o

U. TERESINA LEGEND: 8 a Headquarter

o 0 0

*nd Coordinating

1/ Not funded under this projoct.

Unit of the Program.

0 o

0

10-MAY-89

*BZA

7H120 A10L1IX*AL

REGIC

MR8JELr

COMANIE

OLIDOTIL FOR STATEREAV

~ ~ ~ ~~ iee.ii199. ~ s~~~~~~~~~~~.s 5TADO EWPA Pemoal Caaaioe I.g*4tiatg2

-

AP -

Pommel

-

Zn.om3,wto4

- Cuat.eioe OVAX - Poe - Cua94io - Invoetimmtos ESAt P_mm1 Cuo94s0' I.w.at;mtee

-

~

~

ls

FONTES

DE

FINANCIANENTO

BiWA

PAW

TrAL

ouimu

tRA

70,574

X 9 8 9 *

11

1PRE8AS *

E

10,601

0 134.000 0

1.773,m94 6s3,26s 275,981

840.861

80,000

15.000

423a76s 351.314 58,762

0 50,000 0

0

26,65u

0

52.6e3

180.000

1,713,264

46,685 16.000 28.000

0 0 0

2,800 .682% 31.068

0 0

1.227,261 Z1,978 254.058

ss6.2s6 7.470 0

22.728 89,419 25.981

25.96 2S,i2 17,457

219.511

260,76s

72,954

34,682

12.U9S

601.084 11

525.600

217,720 1.798 0

166l,86 64.782 7,467

7.085 28.014 11.658

0 34,246 436

0 12.095 0

441.291 ji 157.8851 1 19,726 II

497.400 27.800 10.400

o40.240

143.394

0

40.876

148,662

756.160 II

1,215,950

416,24e8 11,000 1,000

1,6S4 97.S62 12,178

0 0 0

4,6Y0 34 476 1.60o

112 S0 14S,500

414.614 11 1,1M6.SW0 is,150 148.068 11 15,060 178.478

1.220,446

9s,872

0

140.000

1,090,S34

1.102.146 62,000 56.100

86.62 84,998 6,018

0 0 0

3,200 101,700 26,000

597,178 277.611 215,548

162,147

44,945

5,207

719,706 11

57,000

54.694 938479 13,974

0 42.351 2.594

0 4.866 224

441,238 1 250,895 11 27.478 11

8S7,000 0 0

0

0 0 0

1,220.209 li m.20SS9i

49.796 59,240 7,774

2,164 7,841 2,621

6t0.000 600.00o 250,000

344,i28

116.612

38,41

2.881.354

900.726

1 AI..790

7.456

TOTAL

I14.000

II

1.168,52 5,25244 28,56

OUTRAS

0

TA40

1.407,148

12,0i8

8WA

j1

I! SO.2=0 II II

1,015.378

j5 II

2,549,658

,5 If

3,061.217

5,

2 79".100 1,711,468 268. 17 S28,204 I 1 2,000 311,866 I I

II

692873 92,770 80,220

PROPRIA

PAPP 1.,00,000

0

120,000

1.698.270

5,160.642

0 0 0

2.400 87.600 80.000

1,015.450 405,070 274,750

8,s92,305 190.604 s2e.e93

26,000

179,000

2,992,949

-

1,118,949

1.111,000

306,s82

- P_1mel - Cues..; - lavtiment

165,021 1.404 89o S

261,606

EPA8A

70P,729

213,451

401,801

6,024

628

1,409,143

i

- ;OMMe - Cuato;Do - Irvustimnto.

629,901 S7,84 20, 97

118s,36 78.295 16.791

111,662 686202 101,587

2,097 2,909 28

lo 486 69

1.062.28MI 207,711 139,404

2,62,126 11. 1,897.9 445,9t5 II

866,006 39.379,994 679,646 I5,696 130,8001 874,.28 31.600

EPACE

66,u128

226.45

1U0.456

0

0

1.036.529

11 3.144.612

- Poem"l - CusS.. - Ift_o*Si

684,240 29.8.6 10.000

130,817 67,723 28,395

46,262 43.137 311,S7

0 0 0

0 0 0

117.005

254,6e9

84,320

.5.44

00t.

EAL.

18.0oo

6.S6 BU.00S"26.864 96,892

124.355 119,817 22,182

20o.s2

4,496010

1.

0

266,358

EWSAM

94,778 0.196

2,456.624

981,949 13,66 26,234

s78.006 420,410 109.664

748,006 40,484.456

0 82,000 97.000

0 26,000 0

2,066,986 673,096 2s2.898

5.426 45,709,60

26,69e

0 42,616,126 2.239.196 5.426 6e2.263 0

0 0

909,343

412.,92

0

0

4,366.847

21, 819 j 2,513.322 6811290 1347:75 11 0 69.452 11

620.a43 16 1000 28,000

0 114,.20 298.172

0 0 0

0 0 0

3,123,666 906,510 226,172

1,608

463.316 j1

9s2.996

305,00r-

0 1,6o0 0

331.890 II 96,6 87 as.269

921.526 0 0

6s0,9s9

21526"

7.200

2,226

1,444.047

0 7.200 0 o8.

0 2.826 0

1.205.521 16s.S94 132

117,005 0 0

181.244 64,923 86472

23,141 24,412 26,767

2.12

180,000 90.000 80,co000

eVLfSE

2S.365

16,507

24,444

,56s6

0

6.86211

e00.000

59,000

221 199

50.000

o

Pose"1 - cu";es. - Itw#ewlimaent7

10.402 7,19s 5,768

0 9,107 6.400

4,726 8.231 11,487

749 4,687

0 0 0

15.907 29,170 11

606,000 136,000

0 ,129 26,671

110.280 60.969

0 0 Woo.0

0 0

778.733

107.116

1.590,610

6,964,160

100,000 7,116

67.065 314,657 1.206,918

4,015,372 1,626.37 1,422.461

1.082,605

62,542,967

- P_e1 - Ca; aes - Invm4timntes

-

rPA -

P.4l CueS.ia Ie,..t;_m.nSa.0

TOTAL PESSOAL TOTALCO6TE0S TOTAL M43TIMI7T6

T0 T A *

- Es Cst 1.000.00 Es W.Et"z 1.00

0 5,5t44 0

lSO

26,806 1

1,251,379

7M2,9sl

40>3.042

167,4!50

eo.0oo

61.259

74S 107 s37,844

288,603 166049 6o89

14,0o9 101,480 71,939

6,8a3 26,955 4,222

6,290 6,2a8 48.731

527,s38

26,057

605,844

7,472,566

I14,69.477

399,076

297,961

3109,62

2.0S9.688

11 2.01,126

5,212,91 244.222 2,725 5.579,840

1.101,537 807,412 131.061 2,040,030

286,041 1,212.64

1,514.000

10.000

65.66

3.241.a22

980.892 1i 2.972.947 268.375 400,56 11 0 =33,842 1

959,879 267,662 34,31t 5,213,779

110.000

s,9 1 s8S5628 172,129

44,320 367,33

411,003 1.327,824

995.172 It 10,527,891

1.219,851

_

____

2,9=2.212

1.280,199

71n,2o 304,29 210,671

0

5,200

41,848.006

_- - _-__-l_-______

w 1D

--

814,328

9U,459

462.358

270.49

1,420.452

11e,674

1,760.668

1 18.175.961

6.606.679

46,700,670

437,697

,799.632

Saute.

8.325,673 4.053.001 74,919,64

ClSEw,

BIWPA.

4

.29

-39

Uiemm. Prerm

w. Obeffis

-

ANNEX2 Table 7 Page 1 of 2

1

at Reearcli Utim

Ffttlalmtlm ie one ProImotI

.0; Km

GRIW OMMI"IONOF MAR

tWM O STlATWI

AOiRflII H

MI~~Atltl

CPATU

Tle Iiid

ULCATI

ATW RE3EAROD 3 t

PDJKT

A

PM0 NiS

MOAL

#

SUPPT

27

267

90

442

9

4

46

170

WNVS

TIRtWI STAFF

Troelee

Regiownl Canter for Agricultural RMaeach in tth liid Tropte.

Golda. PA

a)Evaluation of the natural and

soclo-ecanomie resourcee of the areas b) Study of methodsto apply reource. to *Gicultura

S

50

S

25U

c) Lvei1opaani. of forming

system basedon *) and b) above4) Spal *o haI* on: bufflo, rice. cope , cea . miso. oipolm. rubber, black peppr, andtropical fruitsin farming CMPSD2/ Wationt l Canterfor Rubber an OilIPlm Reaearch

onaue.AN a) Crop productior reaerchon rubber and otl palm: b) Broaderinterest In pernmial an tree-crop speciesfor Amcgn Ia.

IEPAC-PA State Rearch Center

Salda. PA

a) Adaptive reearch on forming ayeoem beaud on: b) Dairycattle, buffalo, rIeC. coapae,caeavamica, ollpal. tropical frult. and blaekpeppbr.

8

22

10

106

So

177

UEPAE-A4 StateReaarch Canter

Hwau", AN a) Adaptive reaarehon farming m including:

1

18

9

11i

29

168

-

17

11

t7

27

142

10

1

62

28

109

-

16

7

22

11

S6

-

J

18

25

11

59

10

40

2

248

92

428

7

24

9

78

57

175

b) Bufl.rice. baanajcoampeaa caminava.mize, tropical fruit.

and blea pepper. UEPAES-R StateResearch Center

Pto. VIbeo, a) Adaptivereaerchon farming t eyetem for the agricultural frontier based upon: b) Dairy cattle. buffalo, rice. beanei/coepoeae neace, tropical

UEAE-AC Stte Rehrc Canter

fruit., and paatures. Rio brsnco, a) Adapti.e reearch on farmine AC meytem for tho grieu ltural frontier bma"d upon: b) Dairycattle, rice,boons/ coepoeamie, rubber tropical fruitt, black PepePPr, and pOaturea.

UEPAT-It Territorlml RaaearchStatil.

B-a Vista. ap

a) Adaptivererch

on production Program for the region baaed uplon:

b) Pastures. rubber, tropical fruIto. UIEAT-AP Territoriel Rreeereh Station

batpjd AP a) Adaptlva researcht n production Program for th

b) Ric, m_I

frul Ie

idRl)EAST:sei-Arid CPATSA

beane/coepoea, cameva. rubber, and tropical

Tromic-

Reional Canter for Agricultural ReatarchIn the Seal-Arld

region beed

Petrolfna, PE

Tropics

a As for CPATU above; b Amfor CPAiUabove: c) Deelopmnt of forming system b=aadon ) and b) ebove andf includinc the fol eoing crops/

d) Ooat.and sheep,rice (irrigated). beans/copmap, coa.r ioeI eorghum tropical fruU6it.a,irig. Vegtabi e, and wood production. OPA

National Reaerch Center for Cotten

Campina Orantd.

a) Crop production research on

Fe

cotton (nnual and tree cotton5. ttional ab) comdity reaerch

OCC

National Remeereh Centerfor Sets

Subral, CE

Animl production research for g*oand relatedposturework

4

15

S

79

s8

142

CNa

Iutional Reearch Canter for Cmea

Forteleca, CE

Crop production and induotrial (by-product) reearch on cashiewnuts..

7

17

2

8

14

48

OCN

Nabional Research Center for Coconut

AreaciJ. SE

2

24

2

a8

as

148

OarL

Ntional Research Cent.. to,Dairy

Col. Pehac. i

Crop production and industrial (by-product) research on coconut. and *a-ocistd crps. Dairy production for both dairyanddual purpose breeds.

2t

as

8

255

82

408

Oki

Cattle

A~inhmlr,9

-40

iave*ch

P

Thl d Sffin

m

-

ANEX2 Table 7 Page 2 of 2

ALTUUL

AL iSt at Reasonhb Sa t

Priletlmm

bRIMF OSRIPTIrliN OF 4AJONR PROJMT-REATED RESEARCHPROWAWS

ACRONYM

NME OF STATION

PCNPW

Nationst R*search Center fir Cawsva and Frultcrops

Cruz das Al-a, bA

*)

National Research Center for Irrigated AgrIculture Agriculture

Pornarba, PI

a) Research on irrigation and draneage *y-tem* and techniques for the range of conditions found in agriculture the training of research/

State Unit Research Center

Teresina, a) Adaptive

CNPAI

UEPAE-PI

LOCATION

PhD

Production system. research or caemve and fruitcrop(pineapple, banana, cit , mango).

~~~and extenslon staff in thle

b) Dairycattle,

MS

85

VWPMl

ct,

iTLMICAL SUPPORT

AlMJNISTPATION

TOTAL STAFF

-

48

8

131

70

249

2

18

7

64

45

135

4

19

3

69

39

134

16

23

tt

38

42

130

12

13

13

26

26

95

10

7

1

34

14

66

12

44

12

58

55

178

16

29

3

10

17

7S

area.

research on f!rming yey in the area using the following crope/1Ivestoc,x

PI

In

rice, beans/ maizeo/sorchum

cosPeas, cmsve. and cotton. C84AR08I

G Af To8d

.

.

)

t._

:

G~~~Curir'3

01*N

Q

)

_.

rR

85 # i

o

/~~P

HIR

/

/

**_

F.D.ATRNAOACAIA

~~~~~~~~~~RAIL 4.jKfCHlReCETR

_ 5

A4-p*S-.NOTOWN Grn,-t

ES

~ ~ ~~~~~~~~~~~~~~~~~~~~ a SV ; :: ,' 6 wa ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~PQ .~~~~~

.

{ ¢n soHLE w_\.

1iN

A

Cruzd r

R PA~0TA NZ do G04AS l

.

_1

b

,'

AU

>

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