THE WORLD BANK GROUP ARCHIVES PUBLIC DISCLOSURE AUTHORIZED Folder Title: Malawi - Lilongwe Land Development Project - An Application to the International Development Association to assist in the Funding of the Second Phase - June 1970 Folder ID: 301871 Project ID: P001593 Dates: 6/1/1970 - 6/1/1970 Fonds: Records of the Africa Regional Vice Presidency ISAD Reference Code: WB IBRD/IDA AFR Digitized: 11/18/2019 To cite materials from this archival folder, please follow the following format: [Descriptive name of item], [Folder Title], Folder ID [Folder ID], ISAD(G) Reference Code [Reference Code], [Each Level Label as applicable], World Bank Group Archives, Washington, D.C., United States. The records in this folder were created or received by The World Bank in the course of its business. The records that were created by the staff of The World Bank are subject to the Bank's copyright. Please refer to http://www.worldbank.org/terms-of-use-earchives for full copyright terms of use and disclaimers M THE WORLD BANK Washington, D.C. @ International Bank for Reconstruction and Development / International Development Association or The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org PUBLIC DISCLOSURE AUTHORIZED MALAWI LILONGWE LAND DEVELOPMENT PROJECT An application to the International Development Association to assist in the funding of the second phase June 1970 Lg -uu 94 PREFACE M A L A W I LILONGJE LAND DEVELOPMENT PROJECT APPLICATION - SECOND PHASE INTRODUCTORY COMIEINT A. At the request of the Government of Malawi, a mission from P.M.D.A./A.D.S. visited Malawi late October/early November 1969 to collect data and prepare preliminary draft proposals which would form the basis of an application to I.D.A. for assistance in financing of the Second Phase. B. The Mission took into account the findings of previous missions and ap>,raised the performance of the Project at that time. The section of the Mission's report dealing with performance has been incorporated into Chapter II. C. The Mission's report having been discussed vrith all interested parties, this document has been prepared by the Project staff, under the direction of the Ministry of Agriculture, and takes into account factors and policies which were unknoim or not formulatod at the time of the Mission's visit. D. Grateful acknowledgement of the P.M.EA./A.D.S. Mi,-sion's report must be recorded, for it is only as a result of the report that preparation of this cocument has been possible by this date. JUNE 1970 C 0 N T E N T S Introductory Commont - Profaco 1. Introduction 1.0 BackXound 1.1 Suxnmary of Project Costs and Benefits 1.2 General Proposals for Phase II 1.3. Institutional Proposals for Implementation during Phase II 1.4 Crop Development Considerations 1.5 Consideration of Financial Procedures 2. Situation Rep2ort on Phase I DeveLopmqntx 2.0 Crop Development 2.1 Livestock Development 2.2 Credit and Farm Inputs 2.3 Marketing and Storage 2.4 Project Sorvices 2.5 Conclusions 3. Detailed Proposals for Phase II 3.0 General Proposals 3.1 Crop Development 3.2 Livestock Development 3.3 Marketing 3.4 Credit 3.5 Project Services 4. Project Econoniics 4.0 Project Costs 4.1 Project Benefits 4.2 Foroign Lxchange Component 4.3 Economic Analysis L IST OF ANNEXES ANNEX 1 Chart 1 Project Administration ANNEX 2 Chart 2 Administration - Staff Organization Table 1 Administration - Capital Costs Table 2 Administration - Recurrent Costs ANNEX 3 Chart 3 Animal Husbandry Staff Organization Table 1 Recurrent Costs - Animal Husbandry ANNEfEX 4 Chart 4 Conservation Section Staff Organization Table 1 Capital Costs - Conservation Table 2 Recurrent Costs - Conservation ANNEX 5 Chart 5 Credit Staff Organization Table 1 Recurrent Costs - Credit Table 2 Capital Costs for Machine Accounting Table 3 Recurrent Costs for Machino Accounting ANNEX 6 Chart 6 Extension and Training Staff Organization Table 1 Recurrent Costs - Extension and Training ANNEX 7 Chart 7 Land Allocation Staff Organization Table 1 Capital Costs - Land Allocation Table 2 Recurrent Costs - Land Alloojtion ANNEX 8 Chart 8 Surveys - Staff Organization Table 1 Capital Costs - Surveys Table 2 Recurrent Costs - Surveys ANNEX 9 Table 1 Vehicle Requirements Table 2 Capital Costs Vehicles Table 3 Recurrent Costs Vehicles Table 4 State of Vehicles Existing and to be bough by end of Phase I Table 5 Maintenance and Light Repair Bay ANNEX 10 Table 1 Toym Housing - Requirements and Capital Costs Table 2 Country Buildings - Capital Costs Table 3 Bulk Stores - Capital Costs Table 4 Building - Recurrent Costs ANNEX 11 Table 1 Population Statistics in Project Area Table 2 Level of Maize Production per 100 Holdings Table 3 Number of Plotholders Responding to Various Levels of Maize Cultivation Table 4 Summary of Area and Volume of Maize Production Table 5 Seed Maize Requirements Table 6 Maize - Gross Margin Per Acre Table 7 Groundnut Growers in High/Lou Response Categories Table 8 Summary of Groundnut Acreage and Production Table 9 Summary of Tobacco Acreage and Production Table 10 Surplus Tobacco ANNEX 12 Table 1 Herd Composition and Production Table 2 Summary of Availability of Oxen and Sales to Local Buyers and Feed Lots Table 3 Feed Lot and Fattening Budget Table 4 Total Cost of Feed Lot Fattening Table 5 Total Benefits due to Project Livestock Development Table 6 Weight of Meat Produced ANNEX 13 Dzalanyama Ranch Table 1 Herd Composition and Projection Table 2 On Ranch Investments Table 3 Ranch Income and Expenditure Table 4 Debit Service Schedule Table 5 Economic Cash Flow Plan of Ranch LIS T F ANNEXES (Continued ANNEX 14 Table 1 Sumary of Incremental Benefits to Project (Quantity) Table 2 Summary of Incremental Benefit to Project Based on Fani-gate Prices Table 3 Summary of Incremental Benefits to Project over total Project Life (quantity) Table 4 Sumary of Incremental Benefits to Project over total Project Life based on Farmgate Prices Table 5 Example Farm Budgets Non-Tobacco Growers) Table 6 Example Farm Budgets Tobacco Growers & Stall Feeders) ANNEX 15 Table 1 Crodit Requirements Table 2 Medium Term Credit - Gross Cash Flow Table 3 Gross and Credit Inputs - Fertilizer and Seed Maize Table 4 Grown and Credit Inputs - Tabacco Table 5 Summary of Financial Requirements of Credit Fund Table 6 Seasonal Credit Requirements - Groundnut Seed Table 7 Seasonal Credit Requirements - Lindane Table 8 Short Term Credit Requirements - Feed Lots Table 9 Medium Term Credit - Oxen and Implements Table 10 Medium Ten Credit - Miscellaneous Table 11 Medium Tenm Credit - Forestry Table 12 Medium Term Credit - Business Loans to Service Centres Table 13 Suiimary of Financial Requirements of Credit Fund ANNEX 16 Storage and Handling Facilities (Maize, Groundnuts and Fertilizer) ANNEX 17 Maize Competition Results 1969 ANNEX 18 Basic Data - Diversion Ditches, Waterniays and harker Lines ANNEX 18A Future Policy on Road and Borehole Maintenance ANNEX 19 Basic Data - Roads, Bridges, Dambo Crossings and Boreholes ANNEX 20 Basic Data - Transportation, Construction Machinery Oining and Operating Costs ANNEX 21 Administrative and Market Centres ANNEX 22 Re-Afforostation ANNEX 23 Table 1 Capital Cost - - Summary Table 2 Recurrent Cost - Summary Table 3 F.M.B. Loan ANNEX 24 Health Service Centres ANNEX 25 Low Input Areqs ANNEX 26 Table 1 Incremental Farm Inputs for 20 Year Project Life Table 2 Post Phase II Credit Requirements Table 3 Estimated Capital & Recurrent Costs : Years 8 - 20 Table 4 Estimated Residual Valuations ANIEX 27 Map of Project in Relation to Rest of Malawi ANNEX 28 Map- ahowing Phase I and Phase II Areas - Lou Input Area and Dzalanyama Ranch ANNEX 29 Map showing Divisions within Project ANNEX 30 Fertilizer Subsidy and Cash Flow ANNEX 31 Cost/Benefit Analysis ANNEX 32 Table 1 Foreign Exchange Component - Capital Expenditure Table 2 Foreign Exchange Component - Recurrent Expenditure Table 3 Foreign Exchange Component - F.i.B. Loan 1. INTRODUCTION 1.0 BACKGOUIED 1.0.1. In 1967, the Malawi Government requested financial assistance from the International Development Association, to enable the Govern- ment to implement the Lilongwe Land Development Project. The original project submission, which had been prepared with the assistance of the Agricultural Development Service, suggested that the project should be carried out over 12 years. However, the I.D.A. Appraisal Mission which visited Malawi in 1968 indicated that it would be more acceptable to I.D.A. if this project was developed in three distinct phases. Accordingly, a modified submission uovering the first 4-5 years (Phase I) was made and this resulted in I.D.A. Credit 113 MAI being signed on February 5th, 1968 for the sum of fT2,500,000. 1.0.2. Implementation of Phase I of the Project commenced in February 1968 and progress has been so good that Phase I is now expected to be completed by the end of March 1971, some two years ahead of schedule. 1.0.3. Various I.D.A. and P.M.E.A./A.D.S. appraisal missions have indicated that a second phase of this Project is justified and the Malawi Govern- ment now wishes to commence Phase II on 1st April, 1971. Phase II is planned to run for four years, thus continuing the project into its seventh year. 1.0.4. Details of the project area, and background papers to the Project, were set out in the Phase I submission. A summary of the activities achieved during Phase I, together with details of the activities proposed during Phase II and estimated costs are set out in Chapters 2, 3, 4 and Annexes. 1.0.5. The total cost of Phase II is estimated to be MK6,316,400 and for this the Malawi Government is requesting external finance. 1.1.1. Summary of Project Costs and Benefits Gross Costs Phase I and II (seven years) nz8.35 mn. (US $20.04 mn) Gross Benefits (Per annum at maturity(yar15) This submission based on Phase I Dlts II ME2.891 mn. Original submission based on Phase I plus II ME1.526 mn. Original submission based on Phase I only MXO.487 mn. 1.1.2. Changes Related to Previous Submissions Anticipated costs during the development phase (seven years) have rised by 34*;o. Gross benefits per annum at year 7 exceed original projection by 74 c. Gross benefits per annum at maturity exceed original projection by 89i". Time Scale : Year I is 1968/69, year 7 (gompletion of Phase II) is 1974/5, year 15 (maturity) is 1982/3. 1.2.1. General Proposals for Phase II The broad objectives of Phase I are continued by extending the activities of the Project from an area of 180,000 acre involved by the end of 1970 to 589,000 acres by 1974/5. These activities include:- (i) land use planning and conservation, (ii) survey and land allocation, (iii) extension credit and marketing services to develop the crops of tobacco, groundnuts and maize, and livestock, (iv) the organization of an efficient infrastructure of communications, water suplies and services to match the increased activities with the Project area. 1.2.2. In order to increase the benefits of the project a 161,000 acre ranch is included to the South of the Project area (Annex 13). 1.2.3. For administrative convenience, a low input area of 135,000 acres which lies between the project area and the proposed ranch has alreqdy been placed under the Project administration. 2/........ - 2 - 1.2.4. In order to provide sufficient land for the urban requirements of Lilongwe Capital City an. adjacent area has been excised from the Project boundaries. 1.2.5. In order to ensure that the farming population is fit to maintain the high standard of efficiency that the Project targets pre-suppose, it has been deemed necessary to include an element for strengthening the health facilities in the area. (Annex 24). 1.2.6. Provision is included for storage and shelling of groundnuts and maise, and also for storage of fertilizer. (Annexes 15 and 16.) 1.3. Institutional Proposals for Implementation During Phase II 1.3.1. Rural Institutions Tho whole Project area is contained within the administrative area of the Lilongwe District Council and consideration is being given to the setting up of minor local authorities of a suitable size to whom might be delegated appropriate local government services (e.g. roads and borehole maintenance - Annex 18A) and management of the service centres (paragraph 1.3.2.) 1.3.2. Development of Service Centres Service Centres are the name given in this Project to the Admini- strative and Marketing centres serving a group of villages which together constitute a Unit of project administration. To begin with, each Service Centre contains the headquarters of the Unit Extension Services and the produce market. In time, it is expected that these centres will contain the local elements of the local government, health and educational facilities, and provide a focus for the concentration of local services of artisans and trade. These should evolve in time to small market towns as described in the Indicative World Plan of F.A.O. As proposed above, the control of these will eventually fall under the local authority. Until the new local government proposals are implemented, they will be controlled by the Project Manager in consulta- tion with the District Commissioner and the Department of Town Planning. To assist with the establishment of small artisans and shop-keepers, a small element has been included in the Projects credit funding (Annex 15 1.3.3. Maintenance of Conservation Measures An element of maintenance has been built into the Project Cost. Experience has shown that following a "first return" painti-ance, little attention is necessary. However, adeauate provision is made in Soction 12 of the Malawi Government's Local Land Boards Act to oblige farmers to maintain/repair conservation works should it be necessary. 1.3.4. Land Allocation and Registration It is intended to continue with land allocation, demarcation and recording at an increased rate as a Project activity, but not at present to extend this exercise outside the Lilongwe Project. The Government, however, intends to set up registers for the registration of title capable ot serving both the Project area and other specified areas in the future. 1.3.5. Credit Organization The Malawi Government recognizes that the provision of credit is essential to development. Over the recent years a number of credit institutions have grown up to meet specific needs. The Government is now exploring ways and means of integrating these institutions into a national credit organization and has sought outside advice for this purpose. At the same time, consider.tion is also being given to a closer integration between the provision of farm inputs, the control of credit and the marketing function. The examinntion of the possibilities i. this field will tke some time, and it is expected that some two years will elapse before the necessary instruments have been effected nd such a national institutie. has c)me into being. Provision in LPhase II has therefore, been ;ado for the continuation of credit su ply and control as a project activit 3/ ............ - 3- 1.3.6. Supply of Farm Inputs Under the terms of its constitution, the Farmers Marketing Board is given the responsibility for the supply of farm requisites to farmers. The Faemors Marketing Board is currently exploring ways and means of improving the service it provides to farmers in this field. In particular, it is considering the establishment of a subsidiary organization for this purpose. However, in order to facilitate the administration of standard I.D.A. procurement procedures, all Project requirements of fertilizer have been provided for within the proposed Project funding (Annex 31 and 15). 1.4. Crop Development Considerations 1.4.1. Maize (a) Malawi's INational Maize Policy aims to produce a surplus equal to 7o of total production in an average year. This policy is designed to reduce the chance of Malawi having to import maize in a bad year. High transport costs and the likelihood that neighbouring countries have also had a bad year mean that substantial losses are then made in importing maize if domestic prices are to be kept at a reasonable level. This insurance policy has a cost in that maize surpluses actually realised in on average year can only be exporte.d at a loss (particularly as neighbouring countries are also likely to have had a good crop). (b) 75 of total production is estimated at 100,000 tons in 1970 and 150,000 in 1978, including the production from Lilongwe Phase II. (c) An examination of land potential against population growth indicates that the situation of self-sufficiency in maize is more critical in the Southern Region than in the Central Region. However the presence of a strong extension organisation in the Lilongwe project offers an opportunity for meeting this national planning requirement, and it is envisaged that the project area will produce a large quantity of maise surplus to its' own requirements (170,000 tons in 1968 if present proposals are carried out)0 (d) For project planning purposes, the actual farm-gate price has been taken as 20/- per bag (not), while the economic price, which is used in the cost benefit analysis, is therefore 17/6 per bag (net), allowing 2/6 per bag as the Lilongwe Project's share of the costs of the national insurance policy. 1.4.2. National Seeds Policy The Government is taking active steps to establish a sound seed production industry. In this, provision will be made for commercial production, and governmental inspection and certification services. Appropriate legislation is being prepared. A large measure of the Project's incremental maize production is due to the introduction of maize hybrids. Until the seed production industry is in full operation, it will be necessary to import proven hybrid maize seed. 1.4.3. Groundnuts The cropping balance on holdings within the Project requires a higher percentage of groundnuts than hitherto. In view of the labour requirements of shelling, it is envisaged that during the Phase II, it will become neceasary to purchase groundnuts in shell, and carry out decortication in a central installation. The Farmers Marketing Board have establishud the existence of a suitable machine. Provision is therefore made within the Project for such a machine and a suitable building in which to house it. (Annex 16). 1.4.4. Tobacco Production The overall national production of Western tobacco forms a substantial part of the world trade in this type. The demand is steady and relatively inelastic and estimated at 20 million lbs. woight per annum. Of this, the Project's share is 10 million lbs. There is thus only room for an expansion of 11% above the average for the last five years. 4/.......... - 4 - It is, however, intended to concentrate on the better growers and achieve higher unit yields and a considerable improvement in quality and hence price per lb. 1-4-5. Storage (a) In order to accommodate the envisaged large increases in maize and groundnuts and to make provision for the smooth flow of produce both through the groundnut decortication and down the transport corridors to the South and for export, a considerable investment in storage is envisaged. See Annex 16. (b) The Project development enrisagee fairly rapid increases in fertilizer consumption. An examination of the timing of the inuard flows of fertilizer and the outward flows of produce indicate that space in produce storage will not be available for fertilizer at the time when it is needed. Additional fertilizer storage is included in the Project (Annex 16). 1.4.6. Produce Processin, (a) Mention has already been made in paragraph 1.4.3. of a centralized groundnut decorticator. (b) The very large quantities of maize expected to be produced as the Project develops presage the need for additional maize shelling equipment. A small provision is therefore made within credit operations for maize shellers both hand and engine operated. (Annex 15, 1.4.7. Livestock Development - Beef The Government is in the process of finalising a national beef production plan which involves the raising of feeder stock under range management and then fattening on residues from arable farming. The general Project livestock policies and the Dzalanyama ranch fit within the framework of this national plan. 1.4.8. Livestock Development - Dairyin There is a small but growing demand for milk in the Lilongwe area. The market for liquid milk may be expected to increase rapidly as the new capital city expands. Production is in the hands of one estate producer and a number of village cattle owners. Present supplies are inadequate and there is so far no organised dairy marketing system. A small pilot dairy plant is being established in Lilongwe by the Department of Veterinary Servives this year, to be followed by a large dairy factory in two or three years time. New dairy legislation is being introduced which will, among other things, provide for the establishment of a Dairy Marketing Board which will have the responsibilit, for processing and marketing of milk and dairy products. Thus the livestock farmer will be ensured a market for milk as well as beef within the project area. 1-5. Financial Implications 1.5.1. The Chief Agricultural Development Office, which is a division of the Ministry of Agriculture and Natural Resources, has been directly responsible for the exercise of Ministerial control over the Project during Phase I, and its operations have been funded out of Phase I Project finance. However, this office is also responsible for exercising Ministerial control over other major agricultural development projects and although it was financed directly from the Lilongwe Land Development Project it is considered that it should now be financed separately. 1.5.2. Recovery of Costs: As a consequence of the Project, the Government will be faced with higher expenditures both to meet the loan servicing charges and to provide for the costs of additional services which will be required as a result of the development taking place. To meet these additional costs and, hopefully, to provide a surplus, it is necessary that the Project should increase the Governmentle revenues. This could b achieved by means of a direct charge on the beneficiaries of the Project or indirectly by means of taxation on the overall increase in national income resulting from the Project. 5/......... The Government has examined the various ways in which a dir;ct chargo could bu raised on the beneficiaries of the Project:- (a) A Land Tax - at the present stage of development the imposition of such a tax would interfere seriously with thu progress of land allocation and registering. (b) A Crop Cess - if applicable only within the Project area would be complicated to operate and open to evasion. A national crop coss, though proportionate, would be, in effect, a tax on income which discourages production. Therefore the Government has considered that the extra revenue required is best raised through the normal operations of the existing tax system. This has its greater emphasis on consumption rather than income taxes and its incidence, overall, is progressive on raising expenditures* It is calculated, very roughly, that at full operation, the Project (Phase I and II) might generate additional monetary national income of 2.4 million per annum, (direct income of f1.7 million times a multiplier of 1.4). This should result in an increase, overall, in Government revenues of aLout 500,000 pcr annum (assuming a marginal revenue/monetary G.D.P. ratio of 201;) the equivalent, very nearly, of the sum required to service a loan of 6 million at 7% repayable over 25 years. While such figures can at best do no more than indicate orders of magnitude, they do suggest that extra Government revenue (from the whole economy) renerated by the Lilongwe Project should be sufficient to meet a very sizable roportion of the costs of loan service and repayment. 2. SITUATION REPORT. ON PHASE I DEVELOPIENTS By the end of 1970, 180,000 acres will have been either fully or partially developed. The following paragraphs describe and discuss these developments together with their problems. 2.0. Crop Development 2.01. The principal intention of Phase 1 was to raise the yields of maize, tobacco and groundnuts, through a co-ordinated extension effort. The effects of this increased extension activity are now 'being felt, though it will be some time yet before statistically valid information'is available from the surveys that are now being carried out. However, fairly large samples of crop yields have been made and these can be said to give at least some indication of farmer response. 2.02. The response of farmers to early land preparation and planting has been good, though this does tend to fall off in the second year of project activity and then pick up again in the third year. It is virtually impossible to measure exactly this response but it has been estimated to be 80% in Year I, 50% in Year II and some 70% in Year III. This should be compared with an estimate of 20% outside the project area. 2.03. Maize From estimates,based on issues of synthetic maize seed, it would be true to say that there has been an almost complete change-over to this variety. The response to the introduction of small quantities of the local hybrid variety has been most satisfactory and the demands for more seed far exceed supply. 2.04. t was virtually impossible to obtain amounts of maize and groundnuts sold prior to the inception of the project, but records of both total and individual production are now becoming available and, though not statistically viable, certainly are sufficient to give broad indications. 2.05. Yield recrods, based on field sampling, are now available for three seasons from the old Pilot Scheme area and Unit II of the project. This yield data is based on a 20% random sample of all farmers known to have used fertilizer as compared with a similar number of farmers known to have used no fertilizer. Average Yields of Maize in Bags/Acre Season Location 1966/67 1967/68 1968/69 Unit 1 (Pilot Scheme area) Fertilized 16 14 15 Unfertilized 6 7 7 Unit 1 (Kalumba) Fertilized 15 16 22 Unfertilized 7 9 11 2.06. During the 1960/69 season an inter-village competition was organized. Entrants were selected, prior to planting, by the villagers themselvos, and all operations carried out by the farmer without extra attention being given by the extension service. The results are shown in Annex 17. 2.07. During the 1968/69 growing season an attempt was made to assess yields prior to the project taking over the area. 281 random samples were taken in Units III and IV and yields ranged from 0.53 bajs per acre to 11.0 with an overall average in Unit III of 5.5 bass per acre and in Unit IV of 7.0 bags per acre. /2... - 2 - 2.08. In respect of total maize sales figures for Unit- I and II are given below :- Total Maize Sales in Short Tons Season Market 1967/68 1968/69 Chiwesi (Unit I) 299.4 98.1 Chiwenga (unit II) 131.0 117.5 These returns from markets show an overall reduction in sales but nevertheless are less than in non-project areas. The reasons are not entirely clear but two valid reasons are given : a) The re-stocking of farmer domestic requirements after two indifferent maize years; b) An undetermined, but very considerable amount of maize sold through unauthorised channels. Despite the above the surplus disposed of through organized markets falls only slightly below the original project predictions. 2.09. Maize Storage Losses Demonstrations to reduce storage losses have proved almost 100% successful and farmers are noW' to quite a wide extent, aware of the benefits of dressing stored maize. However, supplies of the required insecticide, although ordered well in advance, were not available to farmers at the time of storage of the last season's crop and consequently much of the effects of the demonstrations have been lost. Demonstrations however continue and steps have been taken to ensure prompt delivery in the future. 2.010. Groundnuts The effects of the extension effort on groundnuts production have been saticfactory. Production has increased for two main reasons :- a) Better planting and cultivation techniques; b) The provision of seed to areas which in the past grew little or no groundnuts. Total Groundnut Sales in Short Tons Market Season 1967/68 1968/69 Chiwesi (Unit I) 44.1 235.5 Chiwenga (Unit II) 2,0 69.1 'Individual yields have also improved and samples again based An the same techniques as used for maize, show average yields of 600 lbs. per acre in contrast to 400 lbs. in those areas not affected by the project. 2.011. Tobacco Tobacco in the Lilongwe district has had a chequered history over the past four years. The area included in Phase I of the first two years of the project is not typical of the Lilongwe area as a whole, with regard to tobacco. Comments on the Northern Division fire-cured crop as a whole are therdfore more relevant. 1966/7 This year was a heavy crop of poor quality. Prices at district markets were overpaid in relafion to realization on the auction floors and Farmers Marketing Board sufferred heavy losses. /3... - 3 - 1967/8 Farmers Marketing Board introduced a pricing and grading structure more in line with world market requirements. Although the crop was reasonably heavy, this resulted in considerably reduced payouts to grooers. This acted as a disincentive to growers with regard to the future season. 1968/9 As a result of the previous season's marketing experiences, the acreagu was considerably reduced and fertilizer usage was inadequate oing to shortaga of cash. In addition, the climate further reduced production. The crop was light, but of better quality. For future regulation of the industry a quota system was introduced. Prices at the markets were relatively higher, and external demand was considerably in excess of sup ly resulting in very high auction floor prices. Part of these higher prices were passed on to the farmers as a second payment most of which was spent on fertilizer. 1969/70 Planting and fertilizer use were back to normal. Response to extension advice has b-een good. However, the rains finished early and the production will not quite reach the planned targets. Prices are expected to be encouraging and future development of the crop is expected to be satisfactory. 2.1 Livestock Development 2.1.1. There are no extensive grazing areas within the present project area and all livestock are integrated ;ith the existing arable cropping pattern of maize and groundnut production. During the wet season cattle graze non-cultivated arable .land and the drier areas of the dambos besides utilising any conserved crop residues; during the dry season after ranging over the harvested fields, they return to the dambos (broad guntly concave valley floors rith hydromorphic soils and marsh grassland). These dambos cover up to 30% of the project area and are generally under- utilized. 2.1.2. The total cattle numbers are estimated at 33,000 head or some 27,000 livestock units resulting in an overall stocking rate of 21 acres per L.U. (for full details of herd breakdown see Annex 12, Table 1). Weaning % is estimated at 51< and mortality at about 1%. Culling rates of cows and bulls are very low which results in a high number of old animals, low fertility and a higher mortality. It is estimated that there is a 13% offtake caused by abnormally high sales of young stock. The rate of growth of the project herd is very low, and there could even be a reduction of total herd numbers due to the high existing offtake in comparison to herd productivity. The offtake of cattle is normally channelled through village butchers. In 1967 only 46 head of cattle were sold officially through the Lilongwe market. This figure is one of the lowest market returns in the country. 2.1.3. During the first phase of the project a small number of farmers have been encouraged to fatten steors under a stall feed- ing system using a home mixed concentrate and crop residues. During 1968/69 season 82 steers were fattenea under stall feeding conditions resulting in an avera,je gross margin of about 12 per head and net profit of about E8 per head over an average of 140 d'iys feeding. These results are substantiated by results from the Southern Region where in 1968, 888 head were fattened resulting in an average gross margin of about 12. There is a tremendous demand in the Project area for feeder cattle, but feeders are in very short supply. Apart from fattening of stoors it would appear /4... - 4 - from trials at Colby Agricultural Institute near Lilongwe that the fattening of mature adult animals is very profitable. Colby Agricultural Institute showed that an avera:;e gross margin of E15 per head can be obtainable when feeding locally mixed concentrate rations. Further trials are currenly being carried out at Bunda Agricultural College on some 200 feeders. Due to administrative problems animals under the stall feeder scheme have to be fattened in under 140 days. The result being that some animals drop a grade through being unfinished. If these animals could be properly finished then the average return per animal could be substantially increased. 2.1.4. The project area is, in the main, adequately covered by the Veterinary Department and there is now movement to compulsory dipping. It is therefore considered that in the light of adequate export markets and an increasing local demand for meat, togrther with the anticipated increase in production of crops and bi- products within the project area, that the second - phase of the project should include a substantial effort at increasing the production of meat from within the project area. 2.2.0. Credit and Farm Inputs 2.2.1. The present credit operations fall under the central control of the Chief Agricultural Development Officer (C.A.D.0.) and administered by a Chief Credit Accountant (who also correlates the Salima Lakeshore Development Project and Chikwawa Cotton Develop- mont Project). 2.2.2. At Lilongwe to da-t 676 farmers have received credit at a total of Z2,413. No. of Borrowers Unit I 394 Unit II 282 676 State of Accounts Unit I Fully Repaid 234 Partially Delinquent 142 Totally Delinquent 18 394 Unit II Fully Repaid 195 Partially Delinqaent 73 Totally Delinquent 14 282 Advances Repayment Balance Unit I 1,311 1,080 (18%) 231 Unit II 1,102 747 (32%) 355 2,413 1,827 586 /5... - 5 - At present loans are only fur Groundnuts, Seed and Fertilizer as no Medium Term Advances yet issued (e.g., work oxen). 2.2.3. The issue of fertilizer on credit has not proceeded as quickly as anticipated for reasons discussed elsewhere, Nevertheless action has been taken to increase the quantities used through encouraging sales for cash. Fertilizer utilization is as follows :- Unit I 1967/68 season 34 tons Units I & II 1968/69 seaon 89 tons Units I & 1II 1969/70 season 63 tons (but excludes all Units III & IV 1969/70 season 204 tons ( top dressing sales) ( - ditto - ) 2.2.4. The utilization of fertilizer should be measured against a regional declino in fertilizer application brought about by lower crop prices, resistance to tobacco growing and increased fertilizer prices. Sales of fertilizer over the last three years, both within Central Region and the country as a whole are as follows :~ Crop Season Central Regioi Qountry 1966/67 5,145 tons 9,470 tons 1967/68 4,942 tons 10,805 tons 1968/69 3,344 tons 11,689 tons 1969/70 8,000 tons 16,500 tons 2.2.5. The existing credit field staff consist of a Senior Development Officer, two Development Officers and ten Develop- ment Assistants of which three are under trainirg. Credit accounting is on a manual basis which is rudimentary, operating within a "Central Development Credit Fund" (a "below the line" Government system of accounting). 2.2.6. The selection of farmers for credit is based on a Grower's Rating Form which covers all growers under each unit and is compilod by Technical Assistants (Aric.) on past performances under different categories of land usage, husbandry and character. Loan applications detailing security assets offered are processed through a Village Planning Committee (elected), signed by the farmer and countersigned by the Chief and Headman (as witnesses). Upon approval by C.A.D.O. a form of authorisation to the relevant F.M.B. market for the issue of the credit inputs is completed in quadruplicate :- (a) farmer's copy, (b) issuing market, (c) Farmers Marketing Board (F.M.B.), (d) Central Development Credit Fund. A card index system is then maintained showing issues (sales) on uantity and value with the everibal repayments of the credit including interest charge of 10%) from sales of crop proceeds through markets. The collection of loan repayment continues to be processed at market level through the F.M.B. at the time of crop sales. While at present this system is working at a reasonably high standard the number of loans is at a comaparatively low level and throws little burden on the F.M.B. field officers in assisting in the loan collections and security of cash received, - F.M.B. are supported at market level by project credit field ttaff, but do not take responsibility for cash repayment which is reconciled at "head office" level by detaile.d accounting processes with Project Accounting Staff. /6... - 6 - 2.2.7. Difficulty has been experienced in establishing a really effective system of supply of farm inputs. Farmers Marketing Board are fully aware of this, and with their present organization, meet their statutory obligation by making farm inputs available. However, little positive selling takes place, and it is a tribute to the interest aroused in the farmers that so much purchase of inputs has taken place. The Farmers Marketing Board is pursuing investigations into the setting up of a subsidiary organization with a more positive "selling" approach, but irorldng within the framework of the market installa- tions. 2.3.0. Marketing and Storage 2.3.1 To date two produce markets have been erected within the project area. Those are too elaborate in design and construction. Iodifications have now been agreed upon and in future Ywill be built to reduced standards. The markets have functioned satisfactorily but the supply of inputs to farmers from these markets leaves much to be desired. 2.3.2. Up until 1970, production has not warranted the construction of additional storage facilities for the project area. However, estimates indicate that Phase II production will exceed current storage capacity. Consultations with various sectors of Government have indicated that storage in the project area will be required to even out produce movement to a steady flow through internal and external transport corridors. 2.3.3. The markets are the responsibility of the Farmers Marketing Board. Though it is envisaged that these markets will be used for credit facilities and training, in effect they are planned as the commercial hub of the unit service centres. 2.4.0. Project Services The remaining paragraphs of this section describe those project services which form the main infrastructural developments and which are vital for the overall development of the project. 2.4.1. Project Administration 2.4.1.1. It is difficult at the time of project preparation to estimate fully the nature and amount of administrative work likely to fall upon the project administration. In the drawing up of the original proposals full appreciation was not given to the work load that has fallen upon the Chief Agricultural Development Officer. This has consequently resulted in the erosion of certain posts from the project organization, the e.ost notable of which are the Chief Accountant and Senior Agricultural Administrative Officer. Another shortcoming in the original suggestions was the absence of staff to exercise adequate Stores and Vehicle control.- It has been extremely difficult to recruit Accountants and these posts have had to be taken up at the lower levels,by Executive Officers of limited accounting knowledge. 2.4.1.2. Experience has also shown that the original submission overloaded with administrative personnel the'sub-organization of the Area Development Officer (one per 100,000 acres) and that in fact one reduced administrative unit will be able to handle the needs of all such officers. 2.4.1.3. The Evaluation Unit, although in its original concept, capable of carrying out minor survey work, was not sufficiently staffed to investigate the cost of various project activities, especially the Soil Conservation Aspects, or to be able to /7... - 7 - compile other basic data required for Project Evaluation. The current survey programme will require additional staff at the analysis stago and further posts have been included to a.llow for more detailed work on costs accounting. 2.4.1.4. There have been delays in the building programme brought about by a number of factors, principally delays of orks. This has resulted in the office block not being constructed to date and thus proposals are being put forward to modify the existing office area instead. The Government has decided that as an interim measure, the main administrative office block should be built as it will be justified in the long term this is not expected to be ready for occupation before the end of 1971. As the number of out-of-toien buildings presents administrativo problems to the Ministry of Works, which results in delays, a building organization has been established within The project to cope with all building requirements, i.e. bridges, dambo crossings, housing and markets. This docision has, to a largo extent, boon brought about by the fact that portable housing is not acceptable. Preliminary costings and results indicate that buildings will be done cheaper than if construct6d by the Ministry of Works. 2.4.2. Land Allocation & Registration 2.4.2.1. Provision was made within the first phase for the survey, demarcation, re-organization and registration of land based on the four Land Acts. 2.4. ?.2. Land Allocation and Registration within Malawi is at present confined only to the Lilongwe Project. To date the boundaries of 91 family units representing some 13,000 acres of land have been defined and these units will soon be ready for registration under the Registered Land Act. The establishment of the Land Registry has been purposely delayed until such time as expert advice had been received as to its layout, staff requirements and the type of forms to be used under the Registered Land Act. It is7- plaR1ntgd that the District Registry in Lilongue wilL. be establishod by mid-1970 in order tb receive regictration from the scheme. 2.4.2.3. There is in Iialawi a comparative absence of the factors that normally bring demands for individual tenure, though land pressure is ever increasing. Understandably therefore there is still a marked degree of ignorance as to the purposes and effects of land registration. It now becomes necessary to prepare a programme of education directed to educating the public in the use of Land Boards, Registries and the maintenance of boundary features. 2.4.2.4. However, the demarcation processes so far have produced no major problems of misunderstanding and provided staff can be built up the programme can be rapidly expanded. There have becn, within the 91 family units demarcated, 13 requests for the registration of individual parcels of land. Of these requests the majority come from those having either business or residential plots, but some have come from individuals within family groups who made the request with the full approval of the head of the family. 2.4.2.5. As a result of the allocation processes so far three important points have arisen. 2.4.2.6. Firstly, in respect of village areas, which are now being defined. These areas under the Act become public land but are in fact occupied by members of the family units whose land is adjacent to the particular village site. During the definition process the area set aside for the village site has been compressed and villagers will move into the new site as and when existing houses collapse. Coupled with the defining of these village areas, has come a demand, from the villagers themselves, for a simple village layout plan in order that houses may be built to some systematic layout and areas set aside for community purposes. At present no control is being exercised, and whilst this has the desirable effect of releasing land for agricultural purposes the uncontrolled continuation of haphazard building within the village areas could well lead to shanty towns. An interim solution to the question of village planning is offerred within the recommendations for Phase II. 2.4.2.7. At present the responsibility for maintenance of roads, boreholes and conservation works has not been firmly - attached. During the Project life in a particular area, road and borehole maintenance rest with the Project. At the end of this period, it is accepted that responsibility will pass to Local Government Institutions. The Local Land Boards when constituted will have responsibility and adequate powers to ensure that cultiv- ators maintain and repair the structures attached to their registered land holdings. 2.4.2.8. Thirdly, during the allocation processes areas of land unsuited to arable farming but nevertheless suitable for reafforestation have come to light. These areas are to be demarcated as customary land. However, follow-up, to exploit this decision, is required to ensure a continuing supply of fuel and timber for those who have surrendered land for this purpose. 2.4.3. _tension 24.3.1. There is little doubt that extension has had a consider- able impact on those areas of the Project so far subjected to the recommended levels of staffing. This impact is demonstrated in the almost complete re-ridging of the arable areas to fit in with the new conservation layout, the accept- ance of synthetic maize seed, earlier planting and better cultivation practices, more use of fertilizer and finally in improved yields of both maize and groundnuts. 2.4.3,.2. Despite the fact that the Project has proceeded more rapidly than envisaged, staff availability has been commensurate with this progress, though the availability of Development Officers has proved a difficulty under the present methods of promotion. Ikperience has shown that one Development Officer is capable of supervising the activities within a 20,000 acre unit as against the predicted 10,000 acres, though the level of the subordinate staff should remain at the original rate. 2.4,3 .3. Experience has also shown that in order to obtain the maximum response it would be better to reverse the levels of intensity of staff, i.e., the lower level of staffing for the first two years of Project activity and the higher lev el for the subsequent three years. The reasons for this are that the activities in the initial stages are somewhat simple, e.g., re-ridging, early planting, etc., and few staff can cope with a relatively large number of farmers. It is only when individual farmers become known and the first principles established that the maximum benefit from the extension effort will be realised. 2.4.3.4. A considerable amount of the extension effort has been directed through the medium of the village committee. This has proved successful and resulted in greater co-operation and understanding from the farmers. 2.4.4. Trainng 2.4.4.1. The training programme for both farmers and staff after a slow start has now gained momentum with the recruitment of the Training Officer and the completion of the Training Centre. Basic courses of instruction have been run for Credit and Evaluation staff, and followed up by in-service training for agricultural staff as well. Formal courses have been run for village committees, but the larger emphasis has been placed on in-field farmer demonstrations and field days. Such instruction is noni supported by the Mobile Training Unit and the production of special programmes on the local wireless network. 2.4.5. Surves 2.4.5.1. The role of this section of the Project was envisaged as follows:- (i) To produce the necessary contour base maps for:- Project Plann ing, Land Demarcation. (ii) To produce the final land registration map on which land titles could be issued. 2.4.5.2. Progress of the Survey Section has been satisfactory and is outlined below:- (i) 557,000 acres of the Project area have now been covered by aerial photography at a scale of 1:25,000. (ii) 126,000 acres of contoured base maps produced at a scale of 1 : 5,000. Only recently has the photogrammetric equipment been installed. As the building of the office block in Lilongwe has not been started, this equipment has had to be installed in Blantyre though staff housing was constructed earlier in Lilongwe. The production of base maps on this new equipment will commence early in 1970, after the training of recently recruited staff. (iii) 13,000 acres covered by 1 : 10,000 photography. A pre-requisite for the compilation of the registry mapping. 2.4.6. Land Conservation and Development 2.4.6.1. Land planning and conservation has been carried out at a considerably faster rate than was initially envisaged. This has been due to good and efficient organization, the availability of base maps and the co-operation of the farmers involved. 2.4.6.2. Progress todate can be summarised as follows:- (a) area covered by base mapping 126,000 acres b area covered by aerial photography 557,000 " c area covered by detailed planning 88,500 d length of diversion ditches completed " 695 miles e length of wateriays completed 32 f length of marker ridges completed 5260 g length of roads completed 19 1 (h) number of waterways (dambo crossings) completed 17 i number of bridges completed 7 number of boreholes completed " 72 " (k) area covered by construction works 75,000 acres 2.4.6.3. The following paragraphs give a brief summary of more detailed observations recorded in Annex 18 - 21. 2.4.6.4. Diversion Ditches These have proved adequate but are prone to silting. The depth has therefore been increased to 1.75 feet. Run- off peak flows have not been as great as expected and consequently the horizontal distances between ditches can be increased fro 660' to 750'. 2.4.6.5. Roads Road standards have been increased due to Malawi Government policy. After a factual assessment roads of 36, 24 and 16 feet will be constructed according to expected usage. 2.4.6.6. Marker Lines Phase I Project proposals did not provide for marker lines. However, they are now a feature of land develop- ment and have proved extremely useful for inter-diversion ditch cultivation and have helped to reduce the run-off rate and will therefore be continued to be constructed. 2.4.6.7. Bridges The original Ministry of Works estimate of Z1,350 per bridge proved inadequate, the average cost being E3,500. This is due to improvement in standards of requirement by the Malavi Government. 2.4.6 .8. Water7ays Waterways have been constructed and grassed as opposed to the original idea of training banks. Both will be used in the future taking into account length, slope and economy. 2.4.6.9. Waterway (Dambo) Crossigs & Culverts Duo to generally good topography and sitings of roads on ridges, culvert installation has been negligible. However, Dambo crossings have been increased. For future construction purposes the two will be treated under one cost. 2.4.6.10. Boreholes Construction has been carried out by a Geological Survey team as opposed to the suggested proposal of a Project drilling team. This has been highly satisfactory with the exception of damage and puddling around the wellhead. This will be corrected in the future by the construction of well aprons and water troughs. 2.4.6.11. Buildig Construcfiion Teams Originally the M.O.W. were to build the administrativ e centres and the F.I.D. were to build the markets. This has not proved satisfactory. As a result, a building section has been formed within the Project which will build all adninistrative centres and markets at a density of one centre and market to 20,000 acres. 2.4.6.12. Transportation This has been adequate for conservation and planning but not for the extra building commitments. Transport will have to be increased to take the building section into account in any future phase of development. 2.4.6.13. Heavy ionstruction Mechinery and Wheeled Tractors Machinery and equipment has proved adequate and will only need to be increased to satisfy the requirements for the proposed increases in Project area. There have recently been serious mechanical faults in Caterpillar equipment and other makes are being investigated. 2.4.,14. Staffinga The reconstructed staffing rate has proved adequate and will only be increased to handle the proposed acceler- ated programme of development and the expansion of the building section. 2,4.6.15. Reafforestation There exists about 5,000 acres of planted forest within the Project area. With a re-emphasis on tobacco production the need for afforestation is vital. It is estimated that each family should have at least one acre of wood-fuel plantation. Account of this will be taken in Phase II development (See Annex 22). 2.5. Conclusions IT is too early to make a statistically viable assess- ment of the effects of the Project actions and this will inde4d be the case for several years to come. Nevertheless, the indications are very much evident that the Project will attain its objectives. Farmer response is good and there is a concrete evidence of increased production. Administrative problems are gradually disappearing; staff are now conversant with the intentions and purposes of the Project and the crop marketing aspects are more favour- able. The programme as a whole is ahead of schedule. It is with confidence, therefore, that the Government expects to continue the Project into a second phase. 3. PROPOSED DEVELOPMENT (PHASE II) 3.0. LAND USE 3.0.1. The Project organisation suggests, and experience todate supports the contention that it is feasible in the second four- year phase of the Project to bring 100,000 acres of land annually within the scope of Project activities. In addition, a 161,000 acre ranch can be developed and a further 57,000 acres can be given skeleton "low input" services. 3.0.2. The Project area will therefore comprise a total of 916,000 acres made up to:- 28 Development Units totalling = 589,000 acres Plus Dzalanyama Ranch = 161,000 " Low input area (Western sector) = 57,000 " Sub-total Project activity = 807,000 acres Low input area (South sector) not in Phase II - 78,000 acres Private estates within Project area - 31,000 " Total 916,000 acres 3.0.3. The pattern in the 28 Development Units can be categorised as follows:- Before Development Future (Phase II) t000 acres % t0 0 0 acres% Gross area 589 100 589 100 Under new forest - - 8 1 Non-cultivatable 174 30 198 34 Cultivatable but idle 95 16 - - Fallow 48 7 33 5 Net cultivated 272 47 350 60 3.0.4. The non cultivatable land consists of village grounds, roads, graveyards, forests and waste land. Thus on average the area of arable land per family will be 6.6 acres of which 6 acres will be under crop and the remaining .6 acres will be fallow. 3.0.5. At present 272,000 acres of arable are under cultivation and the remaining, 78,000 acres will come into cultivation with the increase in population growth and the better utilization of land. 3.0.6. With a re-assessment of internal crop requirements and potential export markets the adjustments in the cropping pattern should be as follows:- Before Development Future (Phase II) 1000 acres % '000 acres % Maize 156 49 174 45 Groundnuts 51 16 116 30 Tobacco 50 16 20 5 Minor Food Crops 15 4 38 10 Fallow/Grass 48 15 35 10 320 100 383 100 3.0.7. It was estimated in Phase I that eventually 61,5% of the total arable would be under maize. However, due to much higher response by the fanmer to new seeds and methods and to the proposed introduction of hybrid maize seed Phase II could limit the area of maize to 45%. Due to the development of a new groundnut sheller a substantial increase in land under groundnuts could be developed. 2/.. -2- 3.0.8. Although there appears to be a better demand for fire-cured tobacco than envisaged when the project commenced, 20,000,0001b appears to be a sensible gross target for Malawi at present; approximately 10,000,0001b will be produced in the Project Area (present production in Project area is approximately 9,000,0001b) The emphasis will, however, be in concentrating on the better growers increasing yields per acre from 200 lbs./acre (or less) to 500 lbs. per acre, with even more emphasis on improving quality. 3.0.9. There is, of course, in practice, no such thing as an average hold- ing but if there were the model would be (6.6 acres arable) Maize 3.0 acres Groundnuts 2.00 acres Tobacco 0.34 acres Other crops 0.66 acres Fallow grass 0.60 acres Total 6.60 acres Eventually one farmer in 40 will fatten 4 feeder steers per annum. 3.1 CROP DEVEIOPMET 3.1,0. Phase I development has already shown that farmers can substa- ntially increase their yields particularly maize, through timely planting careful weeding, better seed and the use of fertilizer. In Phase II it is considered that there will be five categories of growers depending, in the main, on their response to maize improvement. These categories, together with estimated productivity are shown below:- Yields/acre lbs.:- Growers Category Crop No Synthetic Maize Hybrid Hybrid Response Maize Maize Extension Fertilizer Low High + Level Level -.--.. _Fert. Fert. Maize 1,100 1,500 2,700 2,700 3,800 (shelled) Groundnuts 200 400 600 600 600 (shelled) N.B. With increased acreage per family more surplus per acre is available for sale. 3.1.1. Maize Justification of the above yields stand virtually as predicted in the Phase I Project report. Further justification is affected in the evaluation of the existing units which show an average of 1100 lbs. maize/acre before development, with about 1500 lbs. maize/acre when extension advice and synthetic maize was used. The average yield of synthetic maize with fertilizer was 2700 lbs. per acre for those farmers taking part in the maize competition in the 1968/69 season. These farmers were not selected on merit and can therefore be considered a reliable sample. The few farmers who grew hybrid maize averaged about 4000 lbs. per acre with variations from 2400 - 5800 lbs. per acre. It is assumed that in Phase II at full development 75% of the farmers will be growing hybrid maize at two levels of production. 40% will grow hybrid using similar inputs as for synthetic, and will average 2700 lbs. per acre; -3- whereas the other 35% will use a high level of fertilizer input and average 3,800 lbs. Research indicated average yield of 6000 - 8000 lbs. of maize per acre when using hybrids and high level fertilizer inputs. 3.1.2 Groundnuts As in Phase I, continued emphasis will be placed on the production of the Chalimbana confectionery groundnut and the average sales of surplus nuts under improved cultivation methods are esti- mated at 600 lbs. per acre. With the introduction of groundnut shellers in the second year of the Project it will be possible to increase the acreage per grower to 2 acres as the 'sore thumb' syndrome will no longer be a limiting factor. 3.1.3. Tobacco The present production of fire-cured tobacco is about 9 million lbs. from the Project area. It is proposed to bring production up to about 10 million lbs. of cured leaf. The increase in fire-cured tobacco will be brought about through the extension services who will aim particularly at improving curing and handling of the leaf. Expected sales per acre will increase from 200 lbs. per acre to 500 lbs. per acre. This in effect reduces actual acreage under tobacco. It should also be noted that the figures used exclude the amount locally consumed which is estimated at opproximately 100 lbs. per acre. 3.1.4. Seed The Government will make provision either through exist- ing Research Stations or commercial farmers to ensure adequate seed supplies of recommended varieties. However, in the initial stages arrangements have been made to import satisfactory seeds. Expected lose of crop through bad storage is expected to be reduced sub- stantially through the increase in market facilities, introduction of maize shellers and the increased use of insecticides resulting in the crop being moved out of the villages at an earlier time. 3.1.5. Marketable Surplus The net result of the effects of acreage adjustment and yield increase will be as follows:- Units Pre-Phase II After Dev. Increase Dev. due to Phase II Maize Short tons 36,400 168,900 132,500 Groundnuts " " 8,717 31,955 23,238 Tobacco it " 4,500 5,000 500 (For full details see Annex 11 and Annex 14). 3.2. LIVESTOCK DEVELOP11ENT 3.2.0. To achieve an increase in meat production and also to increase the supply of work oxen for the farmers within the Project area, the following development should take place:- 3.2.1. Through the use of an intensive livestock development team and the existing extension staff efforts will be made to increase over a period of 10 years the productivity of the Project herd by increasing the weaning percentage to 60% and reducing overall mortality to 5%. Furthermore, culling will be increased to 12% for both bulls and cows. If these measures are effected then by the 16th year of the Project there will be 9,454 work oxen plus a commercial offtake of 2,160 cull cows, 108 cull bulls, 500 young stock, 1,617 cull work oxen - all of which will be for local consumption within the Project area. This represents an increase in meat over that produced before development of 530,000 lbs. annually. Furthermoreit is estimated that 3,505 2 - 3 year old steers and heifers per annum from the Project herd can be fhttened -4- by stall feeders to supply the new capital city and other major urban areas in Malawi - any surplus can be exported to 3outh Africa Zambia or elsewhere. 3.2.2. Through the development of a 161,000 acre ranch, (in part of the Dzalanyama Forest Reserve, contiguous to the Project), to produce half-bred Fresian X Zebu feeder steers and heifers to be fattened by stall feeders within the Project. By the eighth year this ranch will produce 1,492 feeder steers, 707 feeder heifers, 654 cull cows and 15 cull bulls. The cull cows and cull bulls will be sold locally for slaughter. 3.2.3. Through an intensification of the stall feeder fattening scheme whereby the combined output of the ranch and the Project herd will result in 5,700 feeders per year (from Year 13) to be fattened annually. 3.2.4. No account has been taken of the expected increase in supply of feeders from the Northern Region. This increase could eventually rise to about 9,000 head, of which one third would be fattened with- in the Project area and two thirds would be fattened in the Southern Region. Thus any extra feeders from outside the Project area being fattened within the Project area can be looked upon as a bonus to the Project. Detailed Proposals 3.2.5. The Development of the Project Herd Over a period of years it will be feasible to increase the stocking rate from 21.0 acres per L.U. to a conservative 11 acres per L.U. resulting in a total herd of about 50,000 L.U. (see Annex 12). This could be achieved by:- 3.2.6. An Intensification of the Extension Service The Project will include a Senior Livestock Officer who will co-ordinate the various aspects of livestock development. Responsible to him will be a small develop- ment team, whose prime role will be to train, in the field, the development officers and technical assistants in all aspects of animal husbandry. Provision has also been made for a movement and marketing officer who will control the feeder/fattening scheme. Expected results will accrue through better management of cattle by the improving of 'Kholat design and use, through better feeding of cattle, and through the innoculation and drenching of cattle. It is felt that since the farmers are now much more aware of the commercial profitability of cattle that the response to the technical service will be good. The Project will also provide for 30 new dips together with the necessary veterinary staff. These efforts should result in an initial drop in offtake to 7% followed by a gradual rise to an overall commercial offtake of 13%. The average rate of herd growth over 16 years will be 2.8% per annum. In offtake calculations it has been assumed that a half of all 2 - 3 year old males will be retained as work oxen and that the remaining half will be used for bull replace- ments and as feeders for the fattening scheme. There is sufficient existing credit under Phase I available for improvement of 'Kholas' and for the fencing off of dambo grazing by those 5/.. -5- farmers who wish to practice controlled grazing. An additional 30,000 will be available as credit for the purchase of oxen. Costs for these developments are shown in Annex 12 and also Annex 14. 3.2.7. The Development of Dzalanyma Ranch In order to secure the source of nearly half (2 ,20 0 )Of the feeder requirement of the Project it is proposed to develop a ranch in the Dzalanyama Forest Reserve which is situated some 30 miles from Lilongwe. The Government proposes to start the development of this ranch in 1970, with an initial purchase of 1,000 yearlings. These yearlings will be purchased from within the Land Development Project area and will be held on the ranch for 18 months before being sold to stall feeders for finishing. The ranch will eventually be able to carry some 10,000 L.U.ts at a stocking rate of 1:15. It is economically viable with an 11% rate of return. The ranch manager will be responsible to the Project Manager during the development phases of the Project. Thereafter it could be managed as an independent commercial unit. (For full details of the ranch development and its financial estimates see Annex 13). 3.2.8. The Development of Feed-lot Fattening The Project will expand the eidsting scheme so that those farmers involved who require stall feeders will be able to fatten up to 4 feeders per annum. Eventually some 5,700 feeders produced within the Project will be fattened each year. To accomplish this the development team as mentioned in paragraph 3.2.6. will, apart from general extension train- ing, pay specific attention to the encouragement of feed-lot fattening. To co-ordinate the supply of feeders and the purchase of fat animals the Project will provide a movement and marketing officer who will be assisted by 5 livestock officers throughout the Project. Initially, the movement and marketing officer will purchase yearling, stock, presently sold to local butchers, for the ranch, where they will be reared to the fattening stage. He will also purchase feeders produced by local farmers to be re-allocated to stall feeders. To carry this out he will be equipped with cattle transporters and mobile scales. He will also be responsible for the movement of the fattned animals and the movement of them to the newly constructed Lilongwe abbatoir (anticipated slaughter capacity about 7,800 per annum). Although feeder producers will be encouraged to fatten their own animals it is foreseen that initially the Project will have to purchase the feeder, and if necessary re-allocate to the same famer. The Project provides 625,000 credit for the purchase of the feeders. (Costs of stall feeding and stall feeding budgets are shown in Annex 12). 3.2.9. This livestock development will result in an increase of 1,638 short tons of carcass beef. (From 402 short tons before development to 2,040 short tons in the twelfth year.) 3.3 MARKETING Marketing for the three major crops will be handled by the Farmers Marketing Board (F.M.B.) and the livestock will be marketed through the Cold Storage Company Limited. -6- 3.3.1. Maize The Project will sell 130,000 tons of surplus maize in the 1974/75 crop season which will increase to 170,000 tons in the 1977/78 season. A substantial part of the surplus will be used to meet the deficit in the Southern Region and in the urban areas. The rest will form part of the national iasurance reserve which is explained in section 1.4.1. 3.3.2. Groundnuts The outlook for exporting confectionery groundnuts is favourable. With the introduction of mechanical shellers an increase in groundnut acreage/production can be expected. The anticipated price of groundnuts is taken at 6d. per lb. but in allowing for shelling; costs, price to farmer has been taken (with F.M.B. agreement) at 5.25d./lb., i.e., approximately 3.5d./lb. in shell ex farmer. The Project could sell 32,000 short tons of ground- nuts. 3.3.3. Tobacco Production of tobacco will be on quota in the foreseeable future, but even more emphasis will be on quality. Price structure is becoming stabilisedand F.M.B. expect the average basic price to the grower to be 1/- per lb. with a possible second payment of up to 3d. per lb. For gross benefit purposes a figure of l/ld. per lb. has been taken. (See annex 11.) 3.3.4. Meat The Project will cause an increase of 1,638 short tons of meat resulting in a total sale of 2,040 short tons. Of this total 1,245 short tons will be fatstock fattened by the stall feeding scheme. Most of the remaining meat produced will sell through local butchers. The 1,245 tons of quality meat will be part consumed by urban populations within Malawi and any surplus to internal consumption can be exported to neighbouring Zambia which is currently importing 15,000 tons of meat per annum. The present price structure of cattle purchased in Malawi is as follows;- Grade Price S./100 lbs. Killing out % C.D.W. Choice 204/2 52 - 53 Prime A 183/4 50 Prime B 162/6 50 Standard 150/- 48 Commercial 133/4 45 3.3.5. All stock fattened in the stall feeder scheme are expected to grade either Prime A or choice. The present market price for the purchase of feeders is as followsg- 450 - 560 lb. L.W. 60/5d per 100 lb. L.W. Over 560 lb. L.W. 67/6d per 100 lb. L.W. Issue price by C.S.C. to farmers for fattening is 80/- per 100 lb. L.W. The difference represents marketing and transport costs. 3.3.6. It should be noted that the ranch will be paid 80/- per 100 lbs. L..V for feeder stock since the feeders will be issued direct to the farmers at ranch expense. The farmers return on the feeder- ing enterprise therefore, ranges from 3 to 08.10s. per beast. -7- 3.3.7. During the development phase of the Project the purchase and distribution of feeder stock will be carried out under the direct- ions of the Project Manager through a livestock marketing officer. The Project will also organize the purchase of the fatstock and delivery to the Cold Storage Company abbatoir in Lilongwe. This abbatoir will be in operation in mid 1970 with a slaughter capacity of 7,800 head per annum. Additional refrigeration plants may be necossary at the abbatoir but at present no cost factors are available and have not, therefore, been included in the Project. 3.3.8. Storage Bulk storage facilities will be necessary to cover fertilizer inputs, storage of maize from the Project and storage of groundnuts in shell. It will also be necessary to erect a building for the mechanical sheller and provide the sheller itself. For full details see Annex 16. 3.4. CREDIT 3.4.0. Assuming that work proceeds at a rate of 100,000 acres per year, it is estimated that in fourth year of the second phase some 45% of the total holdings will receive credit assistance. The percentage build up being 5% (first year) 15Y& (second year) 25% (third year) and 45% (fourth year). Summarised below:- Years Holdings Credit Account Units 68/69 3,700 185 69/70 10,100 690 70/71 18,100 1,965 71/72 28,100 5,285 72/73 38,100 8,945 73/74 48,100 13,145 74/75 58,100 17,645 75/76 58,1oo 21,645 76/77 58,100 24,645 77/78 58,100 26,145 78/79 58,100 26,145 3.4.1. Staff Requirements To allow credit assistants to familiarise themselves with their work it is felt advisable to gradually increase a particular worker's number of accounts from 50 in the first year to a maximum of 270 accounts for any one credit assistant. The staff requirements will therefore be as shown at Annex 5. 3.4.2. Mechanization of Accounting System It is quite evident that the present manual system of account- ing will not be able to physically deal with future operations and the need for some form of mechanization is of high priority. 3.4.3. Pending investigation into the most suitable type of machine provisional capital expenditure at 3,000 per machine for three machines has been included in Annex 5- -8- 3.4.4. Medium Term Credit The Project will require medium term credit for farmer purchase of oxen and ox drawn equipment, and various other minor items, plus an element for re-afforestation by family groups. In addition credit for artisans has been included at 1,000 per Unit. This will be required for the establishment of small stores, etc., needed to stimulate development and provide a service for service-centre residents. Full details of the procedure for loan operation are not available due to complications arising from the establishment of township authorities but it has been thought to be expedient to include some initial finance at this stage. For full details see Annex 15- 3.4.5. Seasonal Term Credit The Project will require seasonal credit for farmer purchase of fertilizers, maize seed and some small items for tobacco growing. These seasonal requirements are shown in Annex 15. 3.5. PROTECT SERVICES 3.5.0. Administration and Evaluation The Project Administration is part of the Malawi Government Service, located within the Ministry of Agriculture and Natural Resources and responsible to the Secretary for Agriculture and Natural Resources through the Chief Agricultural Development Officer. This officer heads a division of the Ministry, and with his supporting staff administers the major development projects being undertaken by Government in the Agricultural Sector. 3-5-0-. The Project administrative organisation has been streamlined to cater for Project needs basing it on past experience. The needs of Transport and Stores control have been recognised and a small security unit included. This latter organisation is considered essential to prevent peculation, misuse of transport and to ensure the adequate protection of Project stores and vehicles. 3.5.0.2. It is proposed that the _valuation Unit should be slightly expanded to cater for the needs of a small statistical cost accounting unit required to cost accurately various Project activities and to ensure the collection of other data so essential to the ultimate assessment of the Project. (For details see Annex 1 and 2). 3.5.1. Extension 3.5.1.1. The fundamental changes in organisation suggested in this second phase ares- 3-5.1.2. One development officer to 20,000 acres instead of 1 g 10,000 acres, with a residual staffing rate of 1 : 40,000 acres after 5 years. However one Senior Technical Assistant will become a permanent part of each 20,000 acre unit. 3.5.1.3. A lower rate of subordinate staffing for each 20,000 acre unit for the first two years and the higher rate for the following three years, reverting at the end of the five year period to the lower level again, this to allow for farm planning/management activities resulting from the work of the Land Allocation Section. There will be a permanent residual staffing of one Technical Assistant to 4,000 acres. 3.5.1.4. One Senior Development Officer instead of a Principal Development Officer to 100,000 acres. 3.5-1.5. A reduction in Principal Development Officer administrative backing to one unit capable of supporting all five Senior Development Officers. 9/.. -9- 3.5.1.6. The introduction of a Specialist Tobacco Officer and support- ing staff. With an improving market situation, it is proposed to devote considerable attention to this crop, and over a five year period the Project should more than double production per acre and greatly increase quality. 3.5-1-7. The introduction of a small specialist unit to deal with all aspects of the seed requirements of the Project. This will involve the maize, tobacco and groundnut crops and will require liaison with outside agencies responsible for the production of seed and will ensure availability and distribution to farmers. 3-5.1.8. The introduction of a small specialised extension unit to cater for specialised training and extension, e.g., crop product ion, use of hybrids, livestock, etc. This unit will be used to reinforce the field service for short and intensive periods when some special point requires to be put over either to farmers or staff. 3-5-1.9. The introduction of a small forestry unit to encourage and speed up the planting of plantations. This will be of vital importance to the future - see Annex 22. 3.5.2. Training 3.5.2.1. The organisation has been somewhat altered, though it is suggested that the specialist officers included in the first Phase should now be excluded and replaced with a small unit to carry more intensive training to the farmers and to school children. It is proposed that no farmer training centres should be built, but that each market should have available a limited amount of equipment, e.g., benches, tables, blackboard, etc., so as to enable day courses to be run. Such courses will be backed up with the resources of the mobile training units and any necessary material from the visual aids section. 3-5.2.2. The anticipated shortage of Colby trained technical assist- ants and the proposals for upgrading technical assistants to tech- nical officer grades have necessitated an intensified staff training programme for Phase II. In the case of technical assistant training, it is proposed to recruit candidates for a three year training progranme, leading to their establishment as development assistants in the technical assistant (T.A.) grade. The first year's training will be conducted largely at the Training Centre and in nearby Units. During this period they will be of little value to the Project and extra funding has therefore been included. Thereafter, trainees will be posted to the field and their payment will be from the normal T.A. establishment. It is envisaged that recruitment will be at ten per annum and therefore total trainees in Year III will number 30. Approximately 60% of technical officer posts will be filled by upgrading from the T.A. ranks (Project and normal service). A one year course involving three months as a technical assistant with Project, three months at Bunda and six months following the duties of the T.O. post in question has been designed and approved by Government. Througholt the period candidates will undergo intensive training/supervision. In addition to these courses will be normal in-service training which, at the present, accounts for approximately 5 - 10% 10/.. -10- of an officerts working time, depending upon season. With the intensification in Project activities in the period following Land Allocation, when relatively advanced farm planning/management techniques will be employed, the need for in-service training becomes more pronounced. Experience has shown that specialist officers cannot be relied upon to conduct such training in total due to their already comprehensive field programme and a somewhat increased training unit has therefore to be incorporated into Phase II proposals. 3.5.2.3. The ox-trainin; unit has boen retained, though on a somewhat more modest scale. The need for this unit will become more apparent as the Project moves further away from Lilongwe City. (For further details see Annex 6.) 3.5.3. Land Registration and Allocation Since the inception of the Project considerable field experi- ence has been gained in the requirements of the various Land Acts. 3.5.3.2. Although the full significance of these Acts is not, as yet, understood by Project farmers, there is a distinct desire for the registration of family units, with a limited, but anticipated growing demand for individual title. Plans are already under way to increase the allocation of land next year - to 50,000 acres and by year one of the second phase it would be realistic to assume that 100,000 acres per year could be registered as family units. A reason for assuming that the rate of progress can be stepped up considerably is that as the Project moves further away from the immediate vicinity of Lilongwe City so the family units become larger and thus it requires considerably less time to bring a greater acreage on to the registry map, besides which the field staff are now considerably more experi- enced. It is anticipated however, that one team working at a considerably reduced rate will have to return to areas previously registered to carry out (if requested) the consolidation processes and bring individual parcels of land on to the register. 3.5.3.3. To meet the already existing need for rational planning of village areas, a team for this purpose has been included within the soil conservation section. Simple layout plans will be needed and these plans then laid out on the ground. 3-5.3.4. The Project area, as a whole, is short of timber both for fuel and building requirements and in the longer term this will reach critical proportions especially if tobacco growing is to be further encouraged. Family units are prepared to set aside marginal arable land for afforestation purposes and to encourage the development of such areas, a team has been included with the Extension and Training Section to supply basic advice as to cultural needs and the subsequent management of quick growing Gmelina plantations. (See Annex 6 and 22.) 3.5.3.5. The Government has considered the measures necessary for the registration of title, the establishment of a land registry and the establishment of appropriate machinery for land allocation and it has decidedz- (a) The Project will fund the erection of a suitable Land Registry Office in Lilongwe. However, all other capital and recurrent costs applicable to the Registry will be met by normal Government services under the control of the Commissioner of Lands. (b) The Project will create a fund for Demarcation/Allocation/ Recording teams each capable of handling 25,000 acres per annum, with a smaller "follow up" team able to bring indi- vidual parcels of land (on request) on to the Register. (c) /... -11- (c) The Demarcation/Allication teams will be controlled by the Senior Land Allocation Officer supported by an officer in the administrative grade who will also understudy the senior post. Additional support will be provided by the inclusion of a surveyor who will have the dual duties of training and within supervising the work accuracy of the survey assistants the Demarcation teams and also supervise the production of initial Allocation base maps. a (d) The organisation will be capable of incorporation into Section of Land Allocation under the Commissioner for Lands for work elsewhere in the country at a later date. See Annex 7. 3.5.4. Surveys 3.5.4.1. As aerial photography for the whole of the original Project area has now been completed, and the photogrammetric equipment installed, it will now be possible to meet the base map requirements, as well as a shift in emphasis to meet the needs of an expanding Land Allocation programme. No additional staff will be required, though small additions in specialised equipment will be necessary. There will, however, be a small additional area requiring aerial photography but existing staff will be able to put in the necessary ground control. 3.5-4.2. The needs of the Survey Section have also been investigated in the light of this expanded registration programme, and found to be adequate. 3.5.5. Land Resources Assessment, Land Use Planning and Conservation Works The shortcomings and problems facing this section have been described in Chapter 2. It is proposed greatly to increase emphasis on detailed forward assessment of land and soil - resources within the total Project area. By undertaking this detailed assessment and recording of available resources, it will permit the planning of the most appropriate uses for each of the many different natural land units wh.ich are found across the area. This will contribute to the properly - organised satisfaction of the need for grazing land for cattle, allocation of land for tree plantations, areas reserved primarily for water source protection, areas particularly suited to specific crop combinations, and will provide a rational basis for allocation and registration of land, and the planning of family land units. It will also continue to provide a basis for rational planning of appropriate access routes, and of any necessary major physical conservation works. 3.5.6. Low Input Areas As indicated in paragraph 3.0.3., the revised Project area includes two additional areas of 78,000 acres in the South and 57,000 acres to the Ilest. These arise because "high input" revised boundaries (in arriving at 580,000 acres) leave relatively and narrow strips of poorer quality land between such boundaries national/forest boundaries and it is administratively unfeasible for the Government's normal services to handle them during the Project period. Only the hestern area is affected during the operational obviously cannot period of the Project's second phase and this area be left in limbo. At the same time, it is felt unwise to invest into the most suit- heavily in the area pending further investigations able agronomic practices for land of this type. It is, however, carry out proposed to construct a skeleton road system in the area, acre marker ridging, place one technical assistant in each 10,000 to the portion (adding the portion for administrative purposes Aids nearest normal Project Unit) and utilize the Hobile Extension The cost of this low input has been incorporated into the Section. annexes. As a result of these measures it main sectional tables and is anticipated that there will be a minimum increase in productivity of 10%, but as present production from the area (taken in isolation) is unknown, any computation of gross benefit would be statistically -12- invalid; thus although there will be a benefit from the area, such benefit has not been included in the gross benefit tables of the Project and should be treated as a marginal bonus. For further details, see Annex 25- 3.5.7. Health Services In order to get the best results from the agricultural investments some basic preventive health services are inclueded in the project. Details are given in Annex 24. 4. ProJect Costs (Phase II Estimates) 4.0.1 Summary of total capital and Recurrent Costs arc shown in Annex 23. The total estimated Phase !I cost is 6,316,400. This cost has bec n calculated over a 4 year poriod and is made up of the follouing categories :- % of Total Capital U4'000 Phase II Costs () Project Services Administration . 32.4 Credit Administration 9.0 Vehicles 246.2 Housing and Buildings 584,1 .871.7 13.8 (ii) Development Conservation & Planning 736.6 Surveys 26.9 Land Allouation 2.3 Dzalanyama Ranch 211.3 977.1 15.5 (iii) Credit Fund Revolving 504.0 Fertilizer Subsidy 66.0 570.0 9.0 (iv) Additional Items Fertilizer Stores 148.0 Health 44.1 Re-afforestation 208.0 400.1 6.3 2818.9 44.6 Recurrent* (i) Project Services Administration 310.5 Credit Administration 136.5 Vehicle running 341.4 Housing and Building Maintenance 99.0 Animal Husbandry 88,3 Extension and Training 577.2 1552.9 24.6 (ii) Development Conservation & Planning 943.1 Surveys 108.2 Land Allocation 77.9 1129.2 17.9 (iii) Additional Items Fertilizer Storage 33.0 Health 33.4 66.4 1.0 Sub-total 2748.5 43.5 F.T B.;oan - Bulk Maizo & Groundnut Stores 605.0 Groundnut Sheller & Buildings 40,0 Markets 104.0. 749.0 11.9 Total Phase II Costs 6316.4 100.0 * Recurrent costs cover salaries, wages and minor stores. 4.0.2. Of the above cost, Project Services account for 2,424,600 (38.4%) and Credit Funds account for 570,000 (9.0%) of which 66 000 is included for fertilizer subsidy. Development (original items5 accounts for 2,106,300 (33.3%) but additional items of fertilizer stores, health and re-afforestation have been written in which total 466,500 (7.4%). Loans to F.M.B. to cover bulk Maize Stores, Ground- nut Stores, Groundnut Shellers and Markets total 749,000 (11.8%). Contingency element has been taken into account in all calculation. No contingency element has, therefore, been included in isolation, it being understood that managerial savings within one Section may be applied to unexpected situations that may arise in other sections. 4.0.3. Estimates for Year 5 onwards have been included in Annex 26, and total costs to cover recurrent expenditure, credit fund and purchases of vehicles and equipment level out at approximately E195,000 per annum. 4.1 Project Benefits 4.1.1. Taking the year 1970/71 as a base, and projecting through Phase II to the maturity of the areas developed during this Phase, the additional annual production is estimated to be Maize 133,000 short tons Groundnuts 23,233 short tons Tobacco 413 short tons Meat 1,638 short tons This additional production is valued at ME2,629,000 per annum. 4.1.2. Inclusive of Phase I achievements, surplus production at project maturity will be as follows :- Maize - 153,000 short tons Groundnuts - 25,000 " " Tobacco - 413 " Meat - 1,638 4-.1.3 This represents a total maturity benefit from project activity of CK 2,891,000 p.a. 4.1.4. Additional indirect benefits will be afforded through Soil Conservation measures, provision of an adequate supply of timber and a highly developed social and economic infrastructure. Also there will be indirect benefits resulting from the employmont of presently underemployed unskilled labor, but theae indirect benefits have not been quantified or encluded in the cost/benefit analysis. 4.1.5. The cost for the low input area has been included in the analysis but not the benefits. 4.2. Foreign Ecchango Component The foreign exchange requirements of the project from Year 1 to Year 4 are estimated at 2.7 million. The breakdown of this figure is as follows :- Capital Expenditure 1,300,029 Recurrent Expenditure 1,118,860 F.I .D. Loan E 234,200 E2,653,089 Full details are given in Annex 32. 4.3 ECONOITC ANALYSIS 4.3.1. Total incremental benefits accruing to the Project reach a value, at maturity of 2,891,000 per annum (year 15 of total project life). Istimates of on-going capital and recurrent costs at the completion of Phase II have been included in Annex 26 and are shown to drop to approximately E195,000 per annum by year 13 of the Project. Additional farm inputs reach a value of 1,182,000 by year 14 and Annual Cash flows by year 13 reach an estimated E1.5 million. 4.3.2. A cost/benefit analysis has been calculated over a 20 year Project life including Phases I, II and onward costs. This is included at annex 31. All benefits have been calculated using farmgai4e prices, and the analysis shows the project to be viable with: (a) A Net Present Value at 8% discount rato of 24.3,114,000 and a Benefit/cost Ratio of 1.22:1. (b) A Not Present Value at 12o discount rate of M.997,000 and a Benefit/cost Ratio of 1.10:1 (c) An Internal rate of return of 15% 4.3.3. Cost of the F.M.B. Loan have been excluded from the analysis as farmgate prices have been used exclusively, and the F.M.B. loan vrill be issued at commercial rates. 4.3.4. Original estimates of return to the Project (I.D.A. Report No. TO 610 A) gave an internal rate of return of 13% over a 20 year life, including Phases I, II and onward costs and 9% if development work stopped at the completion of Phase I. ANNEX 1 CHART 3 MALAWI L LONWE LAND DEVELOPMENT PRCUECT PROJECT A0INISTRATION PROJECT MAXGER DEPUTY PROJECT MANAGER Admioibtration Animal Husbandry Conservation & Credit Extension & Land Allocation Surveys Ranch Service Planning Training Centre II I Liaison Evaluation Development Land Use Planning Field-Credit Training Land Registry Survey Pblic Relations Husbandry & Layout Extension & Tobacco Land Demarcation Photography & Personnel Movement Control Maize & Cartography Marketing Construction of Groundnuts Transport Earthworks H.Q. Accounting Purchase uhanning Foro Developments & Stores Control A Purchase FField Administration Building & Bri ges Seed Distribution Accounts Disease Control Village Layout Forestry Water Supplies Marketing MALAWI AIEA 2 LILONGWE LANI DEVELOPMENT PROJECT CHART 2 STAFF QRmANiSAT ION - ADMINISTRATION PRUJCT RMGER (0) Staff Grading Number D-ErTY PROJECT MANAGER (L) S6 1 SENIOR AGRICULTURAL ADMINISTRATIVE OFFICER (1) S7 1 S9 1 Public Relations & Personnel Transport Stores & Purchases Accounts 'Evaluation PO 2 Senior Agricultural Econoist (0) 'Statistician (0) Personnel &P.R.Officer (1) Chief Accountant (09 EO/TO IV 2 Casual Laoour Voucher Vote Accounting Control Control & Payment 'Cost *Field Evaluation Other Personnel Registry Security P.R.0. 'Accounts Statistics ' Office Supplies ' Room 'Estimates 15E0 STO 1 SEQ EQ/TO I 3 '1 Personnel Transport Stores Control Officer (L) Controller (1) &Burchasing (Admin.Training) OfficVP (L) 1 E (L) 1 ED i/c (L) 1 EQ 1/c (L) 1 EQ Accts(L) 1 EQ Accts(L)1EOAccts EU/TO i/fl 11 '1 EO(L) 3 EOi/c(L) 1 EQ (L) 'Accts. Enumerators Statisticians Personnel Registry Security 'SBH1 2SLOS 1 SCO/STA 7 '1SCO(L) 2SCQ(L) 1$CO(L) ' 1SC0(L) 1SCO(L) 1SCO(L) 2 CO(L) 2 CO(L) 1 CO(L) 1 CO(L) 1 CO(L) 2 co(L) 3 CO(L) 1 CO(L) 3 CO(L) 3 CO(L) SCO/STA 51 '2CQ(L) 30 CO) (2 Clerks 28 Enumerators Central Pool KEY: (0) - OSAS ap.ointeent Copy Typists 6 / Stenographers 4 / Messengers 16 / Guards 6 / Drivers 10 / Casual Labour 5 6 (L), 3(I), 6(L), 6(L), 10(L) (1) - Intermediate a ,ointment (L) - Local appointment * This classification of staff (EQ & OA) is in line with the national classification of statistical staff. MALA.14 ANNEX 2 LILONGWE LAND DEVELOvMENT ijROJECT TABLE 1 CAITAL COSTS - OFFICE SMALL ENIPMENT EM Year 1 Year 2 Year 3 Year 4 Equipment for Head Offices Unit Cost No. Cost No. Cost No. Cost No. Cost Senior Officers' Kits 1/ Administralin - 85 5 425 - Animal Husbandry 85 4 340 1 85 - Credit 35 1 85 1 85 1 85 - Land Allocation 85 3 255 Junior Officers' Kits 1/ - Administration 60 16 960 - Animal Husbandry 60 7 420 1 1 60 60 - Conservation 60 16 960 -Credit 60 2 120 4 240 2 120 2 120 - Extension 60 10 600 - Land Allocation 60 4 240 Minor Equipment Units 2/ 7 67 469 ? 49 4 28 3 21 - Typewriter - Ordinary 55 6 330 2 110 - Long Carriage Micro Type 150 1 150 - Calculators - Small 55 10 550 - - Large 350 3 1050 - Stencil Cutter 600 1 600 - Duplicator 100 1 100 - Safes 100 4 400 Telephone Installation 20 12 240 2 40 1 20 1 20 Radio Telephone Installations 3000 PARX 285 1 285 Punch Card Machine (Evaluation) 2800 1 2800 Record Cabinets (Evaluation) 40 5 200 5 200 5 200 5 200 Miscellaneous Office Fruniture 500 500 500 200 200 Equipment for Field Offices and Operations. Unit Office Equipment (Sets) 3/ 300 5 1500 5 1500 5 1500 5 1500 Educational Kits for Market Centres 4/ 150 5 750 5 750 5 750 5 750 Equipment for Enumerators (Sets) 5/ - 15 28 420 14 210 14 210 14 210 4 1 " - initial extras 35 22 770 Tents for Evaluation Section 40 10 400 10 400 Minor Equipment for Evaluation Section 100 100 100 100 Measuring Wheels for Enumerators 20 6 120 Mobile Scies for Livestock Section 500 2 1000 1 500 Training Centre New Equipment 250 250 250 250 TOTAL 20304 4679 3923 3456 MALAWI ANNEX 2 LILONSWE LAND DEVELOPMENT PROJECT TABLE CAP ITAL COSTS - OFFICE SMALL EQUIPMENT EM. (cont.) NOTES: 1/ Basic Office Furniture : Table, Chairs, Filing Cabinet etc.. 2/ Set of Desk Equipment : Trays etc.. 3/ Consists of :- 1 Typewriter E55 1 Hand Calculator E55 2 Filing Cabinets 40 1 Junior Office Kit E60 4 Tablesi 8 Chairs) 1 Cupboard E9 1 Minor Equipment Unit f7 1 Cash Box E20 4/ Benches, Blackboards etc.. 5/ Constsis of : 1 Chair, Ranging Rods, Camdass, Scale and Bucket, Rain luage, Panga. ANNEX 2 LILONGWE LANI DEVELOPMENT PROJECT 1ABLE 2 - RECURRENT COSTS SALARIES AND OTHER COSTS EM Scale Designation Unit Cost Year 1 Year 2 Year 3 Year 4 Project Manager S6 0 3781 1 3781 3781 3781 3781 Deputy Project Manager S? L 2217 1 2217 2217 2217 2217 Senior Agricultural Administrative Officer S9 1 3668 1 36B8 3668 3688 3688 Senior Agricultural Economist P0 0 2553 1 2553 2553 2553 2553 Statistician PO 0 2553 1 2553 2553 2553 2553 Fersonnel and P.R. Officer EO/TO IV 1 2786 1 2786 2786 2786 2786 Chief Accountant EO/TO IV 0 2316 1 2316 2316 2316 2316 Senior Executive/Technical Officers EO/TO I1 2407 1 240? 2407 2407 2407 Senior Eecutive Officers EO/TOI I L 1345 2 2690 2690 2690 2690 Executive Officers EQ/TO 1/11 L 537 11 5907 5907 5907 5907 Senior Clerical Officers SCO/STA L 635 7 4445 4445 4445 4445 Clerks CO/TA L 200 23 4600 4600 4600 4600 Enumerators CO/TA L 200 28 5600 5600 5600 5600 Copy Typists Copy Typist 111 L 200 6 1200 1200 1200 1200 Stenographers Stenogra hers SSI I 1611 3 4833 4833 4833 4833 Stenographprs Stenojraphers 01 L 720 1 720 720 720 720 Messengers, Cleaners and Groundsmen 37 16 592 592 592 592 Gu3rds 43 6 258 258 258 258 Drivers 216 10 2160 2160 2160 2160 Casual Labour 5 180 180 180 180 Subsistence & Project Managers entertainment allowance 1000 1000 1000 1000 Senior Understudy vosts 6000 6000 6000 6000 Bicycle allowance for enumerators 12/yr. 28 336 336 336 336 Uniform for enumerators i E5/yr. 28 140 140 140 140 4.Q. Running 6000 6000 6000 6000 Field Offices Runninq i 120 per year 14 1680 19 22B9 24 2880 29 3480 Telephone Rental 1750 1750 1750 1750 Teleohone Bill j 250 per month 3000 3000 3000 3000 Maintainence of Field Radio and PA9X 500 500 500 500 Computer Time for Evaluation Section 500 500 500 500 Materials for Livestock Section Innoculation and Drenches 30U 60 Dipping Fluids 240 240 TOTAL 76,392 76,992 78,132 79,032 MALAWI ANNEX 3 LILONG'WE LAND DEVELOPMENT PROJECT ANIMAL HUSBANDRY ORGANISATION STAFF GRADING NO. P.O. 1 SENIOR LIVESTOCK OFFICER (0) P.O. 1 VETERINARY OFFICER (0) Movement/Market ing/ Development. HUSandry Purchasing Disease Control EO/TO IV 1 CTO Movement & Purchasing Officer(I) EO/TO III 3 3 STO Livestock Officers (I) EO/TO/I/II 2 TO Development TO Livestock Team Leader (L) Officers (L) SCO/STA 1 STA Asst.Development Officer (L) CO/TA 16 4 TA Development 4 CO Clerks (L) 2 Clerks (L) 30 TA Veterinary Assistants (L) (Pool) (CO) Assistants (L) Drivers 7 7 (Pool) Casual Labour 12 12 (L) MALAWI ANNEX 3 LILONGWE LAND DEVELOPMENT PRCJECT able I. AN IMAL HUSBANDRY RECURRENT COST SALARIES & ALLOWANCES XM Salaries: YR I YR 2 YR 3 YR 4 Post Scale Desig- Unit nation Cost Senior Livestock Officer P.O. 0 2553 1 2553 1 2553 1 2553 1 2553 Veterinary Officer P.O. 0 2553 1 2553 1 2553 1 2553 1 2553 Movement/Marketing & Purchasing Officer EO/TO IV I 2786 1 2786 1 2786 1 2786 1 2786 Livestock Officer EQ/TO III I 2407 2 4814 2 4814 3 7221 3 7221 Livestock Officer EO/TO I/II L 537 1 537 1 537 1 537 1 537 Development Team Leader EO/TO I/II L 537 1 537 1 537 1 537 1 537 Asst. Development Officer SCO/STA L 635 1 635 1 635 1 635 1 635 Development Assts. CO/TA L 200 2 400 3 600 4 800 a 800 Veterinary Assts. CO/TA L 200 - 6 1200 16 3200 30 6000 Clerks CO/TA L 200 4 800 5 1000 6 1200 6 1200 Drivers L 216 6 1296 6 1296 7 1512 7 1512 Casual Labour working with Vet. Assts, 37 6 222 12 444 12 444 Subsist ence Allowances 360 360 360 360 Bicycle Allowances (STA's & TA's) @ f12 3 36 7 84 11 132 11 132 TOTAL 17307 19177 24470 27270 StFaff Gar-Ji S.9 1 SOIL COERVATION AND PUR1316 CFFI-ER LA0 USE , PLANNING LAYOT CONSTRCTION OF EARTHWORrE BUILDINGS P.O. 2 PLANNIN OFFICER (0) CONSERVATION OFFICER (0) ET/ T I- 1 1C.T 0. (SrIoR 1C o01M SUPERVISOR PLANNING LAYOUT FARM VILLA E MAREENT PLANkM MACHINE UNI T I MACHINE UNIT 2 MACHINE MAINTENANCE EO/TO II1 6 1 STOW() 1 STO () 1 To(L) 1 o (U) 1 ST0 (1) 1 STO 1L) GRIME UNI T C 41 DL0UNIT H.Q. & I ADMINISTRATION E/TO I AND e(L) 1t 1 () 1 TO (1 1 TO(L) 1 TO(L) 10() 1W(L) 2 TO 01 SCO/STA 9 1 STA(L) 3 STA(L) 1 STA(L) 1 STA(L) 1 STA(Sar."h) Sco (L) I/c Craving Senior . 1 STO(Storeleeper) (Storeleeper) Office Leyallers hA. CO/TA 83 6 T.A 40 T.A. 6 T.A. 6 T.A. 8 T.A. (Mechanics) I Tracers liewlers Lev/Dita tay/Data leveller/Tracer Collectors Collectors 2 T.A. 2 T.A. 6 T.0. (Clerks) 3 C.O. Tracers Tracers Costing Clerks 1 C.0. 2 C.O. Clerks ClerksI CASUAL 42 42 PLANT 0ERATORS 27 VINICLE DRIVERS 9 9Am ttsm) 120 Chain 8riditng:. 300 Waterway 76 Plant ( rators 8 6 Artisans 45 Artisans 12 Artisas .)Labour Larry Assistants 28 Labow 12 Artisans Mates 9 Lebow 90 (i (bour) Cp.Men7 30 12 Labour 12 Labour 5 MKch. Assistants 12 tg 72 L 12f' fArti ,ars MALAWI LILONGWE LAND DEVELOPMENT PROJECT CAPITAL COSTS EARTHWORKS AND BUILDINGS (WJ) Existing Unit Cost Year 1 Year 2 Year 3 Year 4 End Phase I SOIL CONSERVATION EQUIPMENT New 5 17,500 4 70,000 - - D.60 Dozers - - - 1 17,500 2 35,000 2 35,000 D.60 Dozers - Replacement 12 10,000 5- 50,000 1 10,000 1 10,000 - Graders - New 30,000 - 3 30,000 4 40,000 3 Graders - Replacement - 14000 1,000 - - Towed Roller wheeled Tractors - New 11 (2 on loan) 1,200 3 3,600 -9, wheeled Tractors - Replacement - 3 3,600 8 9,600 9 (2 on loan) 150 4 600 - Ploughs Trailers 7 825 1 825 - - Power Shovel T.5 200 8,800 I 8,800 - BUILDING EqUIPMENT Cement mixer (Large) 7/5 1 500 1 500 - Cement Mixer (Fedium) 5/3)i 1 350 5 1,750 - Vibrator 350 1 350 - Water Trailers - 500 2 1,000 - Small Toole - 11000 - - WORK5HOP EQUIPWENT 250 1 250 - Compressor 650 1 0 - - Special Tools - - Mechanics Tools (Sets) 5 40 5 200 - Block and Tackle - 300 2 600 Heavy Duty Jacks - 15 5 75 - BUILDING MATERIALS 454 80 36,320 80 36,320 80 36,320 80 36,320 Boreholes - Drilling and Equipping 72 134 139 18,626*139 18,626* 80 10,720 80 10,720 Boreholes - Aprons and Troughs l pro d B .,bco .,ros!-ifng6 T 12,960 72 7212,960 72 12,60 12,960 72 ANNEX 4 (Cont.) TABLE 2 MALAWI LILONGWE !t!D DkvxLC"E'NT PROJECT CAPITAL COSTS EARTHWORKS AND BUILDINGS krh) (iCCNT.) Existing End Phase I Unit Cost Year 1 Year 2 Year,3 Iear Bridges 3,500 4 14,000 4 14,000 4 14,000 4 14,000 Survey Equipment (Sets) 30 103 16 1,648 - - Map Printer - 500 1 500 - - - Culverting - 253 60 15,180 60 15,180 60 15,180 60 15,180 TOTAL 244,034 154,586 183,780 154,180 IncludesAprons needed in Phase I ANNEX 4 TABLE 2 MALAWI LILONGWE LAND DEVELOPMENT PROJECT CAPITAL COSTS EARTHWORKS AND BUILDINGS (fM) Existing End Phase I Unit Cost Year 1 Year 2 Year Year 4 SOIL CONSERVATION EQUIPMENT D.6C Dozers - New 5 17,500 4 70,000 - - . 4.6C Dozers - Replacement - - 1 17,500 2 35,000 2 35,000 Graders - New 12 10,000 5 50,000 1 10,000 1 10,000 - Graders - Replacement - 3 30,000 4 40,000 3 30,000 Towed Roller - 1,000 1 1,000 - - wheeled Tractors - New 11 (2 on loan) 1,200 3 3,600 - - Wheeled Tractors - Replacement - 3 3,600 - 8 9,600 - Ploughs 9 (2 on loan) 150 4 600 - Trailers 7 825 1 825 - - Power Shovel T.S 200 - 8,800 1 8,800 - - BUILDING EQUIPMENT Cement Mixer (Large) 7/5 1 500 1 500 - - Cement Mixer (Nedgum) 5/3a 1 350 5 1,750 - - Vibrator - 350 1 350 - - - Water Trailers - 500 2 1,000 - - - Small Tools - 1,000 - - WORISHOP EQUIPMENT Compressor - 250 1 250 - - Special Tools 1 650 1 650 - -- Mechanics Tools (Sets) 5 40 5 200 - - Block and Tackle - 300 2 600 - - - Heavy Duty Jacks - 15 5 75 - - - BUILDING MATERIALS Boreholes - Drilling and Equipping 72 454 80 36,320 80 36,320 80 36,320 80 36,320 Boreholes - Aprons and Troughs 134 139 18,626*139 18,626* 80 10,720 80 10,720 Dambo Crossings 180 72 12,960 72 12,960 72 12,960 72 12,960 ANNEX 4 MALAWI TABLE 2 LILONGWE LAND DEVELOPMENT PROJECT RECURRENT COSTS - SALARIES AND WAGES, ALLOWANCES AND TRACTOR RUNNING COSTS Post Scale Designation Unit Cost Yea I Tear 2 Yea 3 Year 4 Soil Conservation & Planning Officer 5.9 0 3281 1 3281 3281 3281 3281 Planning Officer P.O. 0 2553 1 2553 2553 2553 2553 Conservation Officer P.O. 0 2553 1 2553 Building Supervisor 2553 2553 2553 E0/TQ/IV 1 2786 1 2786 2786 2786 2786 Senior Technical Officer E0/TO.III 1 2407 2 4814 4814 4814 1814 Senior Technical Officer EO/TO.III L 1345 4 5380 5380 5380 5380 Technical Officer Eo/TO, a/11 L 537 9 4833 Senior Technical Asaistanta SCO/STA 4833 4833 4833 L ) 635 9 5715 5715 5715 5715 Senior Clerical Officers SCO/STA L ) - - - - Technical Assistants C0/TA L 200 71 14,200 14,200 14,230 14,200 Clerks CO/TA L ;MO 9 1,800 1,800 1,800 1,800 Plant Operators CO/TA L 600 40 24,000 40 24,000 41 24,600 42 2r,200 Drivers L 216 27 5,832 5,832 5,832 5,832 Costing Clerks L 200 3 600 600 600 600 CASUAL LABOUR Building Maintenance Team Artisans * 3/- per hour (Foreman) 352 1 352 352 Artisans 0 /6d. " 352 352 " 176 7 1,232 1,232 Artisans 4 1/- 1,232 1,232 " " 117 4 468 468 468 468 Labourers 0 2/4d. per day 37 9 333 333 333 333 ...... ~e........@.../ ANNEX 4 TABLE 2 (COINT.) Post Scale Designation Unit Cost Year I Year 2 Year Year 4 BUILDING CONSTRUCTION TEAM Artisans 0 3/- per hour (Foremen) 352 3 1,056 1,056 1,056 1,056 Artisans 0 2/6d. " " (Bricklayers) 176 24 4,?24 4,224 4,224 4,224 Artisans 0 1/- " " (Carpenters) 117 12 1,404 1,404 1,404 1,404 Artisans 6 1/- " " (Painters) 117 6 7? 702 702 702 Labourers @ 3/.1." " (Carpenter Mates) 51 12 612 612 612 512 Labourers @ 2/A4.I t 37 72 2,664 Zi,664 29664 2,6(, BRIDGE BUILDING TEAM Artisans 0 2/66 Q per hour (Bricklayers) 176 6 1,056 1,056 I,056 1,056 Labourers 0 2/Ld. per day 37 28 1,036 1,036 1,036 1,036 DAMBO CROSSIN( CONSTRUCTION TEAM Artisans 0 /od. per hour 176 12 2,112 2,112 2,112 2,112 Labourers 0 1/44. per day 37 96 3,552 3,552 3,552 3,552 PLANT OPERATION AND LAYOUT Plant Opetators (2 ' machine) Assistants 0 33d. per day 51 52 2,652 52 2,652 54 2,754 56 2,856 Wheeled Trp-- 'r (1 per machine) Assiste.tts @ 2/44. per day 37 12 444 444 444 444 Lorry rrivere Assistants @ S44. per day 37 14 518 518 518 518 !,echazics Assistants 0 2/44. per day 37 5 1:85 185 185 Levellers Assistants (3 per team) 0 2/44. per day 37 120 44o 4,4o 4,440 4,1440 Casp Boys 0 2/44. per day 37 30 1,110 1,110 1,110 1,110 Labour (Waterways) * 2/44. per day 37 300 11,100 11,100 11,100 11,100 Labour Village & Fars Planning 4 2/44. per day 37 24 888 888 888 888 Guards 0 2/44. per day (365 days) 43 9 387 387 387 387 Subsistence Allowance 360 360 360 360 Field Allowances (Levellers) 0 C50 per year 44 2,200 2,200 2,200 2,200 ........ **.........../ TABLE 2 (CONT., Post Scale Designation Unit Cost Year I Year 2 Year 4 Bicycle Allowances (STA & TA) 0 12 12 9 108 108 108 108 Overalls for Plant Operators (3 sets) and Drivers (Z sets) 0 2 2 210 420 420 426 432 Dozer 0 2.54 per hour (2,000 hours per year) and Aveling Barford Shovel 5C0,0 10 50,800 50,800 50,800 50,800 Graders 2000 hours per year 0 1.4 per hour average 2800 17 47,603 10 50,400 19 53,200 19 53,200 Wheeled Tractjrj 1000 nour,;; year 0 0.5 per hour 500 12 6,000 6,000 6,000 6,000 Trailers 500 hours per year 0 W.09 per hour 45 12 540 540 540 Ploughs 500 hours per year 0 0.05 per hour 25 12 300 300 ;300 300 Vibrator 1200 hours per year 0 0.05 per hour 60 1 60 60 60 .60 Concrete Mixer (large) 1500 hours per year 0 0.075 per hour 113 2 226 226 226 226 Cement Mixer (medium) 1500 hours per year 0 0.05 per hour 75 6 450 450 450 450 Workshop running 1,000 1,000 1,000 1,000 Replacement of Building Tools 500 500 500 500 Drawing Materials 300 300 300 TOTAL:- 231,738 234,538 238,046 238,754 1wtiAJA bi.L CHART 5 LILONGWE LAND DEVELOPMENT PROJECT Credit - Staff Organisation Staff grading No. EO/TO IV I CEO CREDIT ACCOUNTANT (0) Field-Credit Extension Headquarters-Accounting and Control EO/TO 1116 2 STO Senior Credit 2 SEQ Accountants Officers (1I 1L) (21) EOtfto I/II 6 6 TO Credit Officers (L)- *0 SCO/STA 4 4 SEO Maciine Operators (L) CO/TA 104 98TA Credit Assistants (L) 6 CO Clerks/copy typists (L) Drivers 9 9 (L) .... *...............-.......... 9(L) 4ALAWII TABLE 1 LILONGWdE LAND DEVELOPMENT -ROJECT RECUR1ENT COST Salaries and Allowances EM YR1 YR 2 YR 3 YR 4 Desig- Unit Post Scale nation Cost No. No. o. No. Credit Accountant EO/TOfIV 0 2316 1 2316 1 2316 1 2316 1 2316 Senior Credit Officer EO/TO/III 1 2407 1 2407 1 2407 1 2407 1 2407 Senior Credit Officers EO/TO/III L 1345 - 1345 1 1345 1 1345 1 1345 Accountants EO/TO III I 2407 1 2407 1 2407 2 4814 2 4814 Credit Officers EO/TO I/Il L 537 3 1611 6 3222 6 3222 6 3222 Machine Operators SCO/STA L 635 2 1270 2 1270 3 1905 4 2540 Credit Aests. CO/TA L. 200 40 8000 61 12200 83 16600 98 19600 Clerks CO/TA L 200 3 600 4 800 5 1000 6 1200 Drivers L 216 5 1080 9 1944 9 1944 9 1944 Subsistance allowances 360 360 360 360 Bicycle allowances for credit assistants @s. 12/yr 40 480 61 732 83 996 98 1176 Payment to F.M.B, for services 1/ and 2/ 1000 1120 1300 14oo Total 22876 30153 38209 42224 Note 1/ Payment to F.M.B. follows reduction of SEO accountants from 4 to 2. Note 2/ Cost rises to 2000 per annum in 1977. ANNEX 5 CREDIT ACCOUNTIE CAPITAL COSTS EM TABLE 2 MECHANIZED ACCUNTIN3 Year 1 Year 2 Year 3 Year 4 TOTAL CAPITAL - MACHINE UNITS AN) ANCILLARY EQUIPMENT 3000 3000 -300 9000 TOTAL 3000 3000 3000 9000 ANNEX 5 TABLE 3 CREDIT ACCOUNTING RECURI9NT COSTS El RECURRENT Maintenance and Stationery 300 800 800 1000 2900 TOTAL 300 800 800 1000 2900 LILONGWE LAND DEVEL-OvENT PROJECT CHART 6 (TENSION AND TRAINING -STAFF ORGANISATION .aff Grading No. 1 SENIOR EXTENSION AND TRAINING OFFICER (0) Farmer Training Staff Training Tobacco Matze/Groundnuts Forestry Special Duties Development Administration 3 4 Training Officer (0) Training Officer (0) S. Tobacco Seed & Crop Officer Officer (0) 3/10 IV 1 1 CIO Administration and Vote Control (1) 2/TO I1 8 2 STO (IL Ii) 1 STO (1) 5 STO S. Duties Group D.O. 1 (11 4L) 3/TO I/Il 37 Extension Field Centres Ox Training Training Centre(s) ' Aids (i) etc(ii) ' t 1 TO(L) 1 TO Centres (1) 1TO () 1 TO 2 TO Tob. 1 TO Forester (L) 2 TO (L) S. 27 TO (L) D.O.s 1 1 TO Schools I 0 ficers (L) Duties I "L/STA 41 1 STA 1 STA (L) 5 STA (L) 27 STA (L) 1 SCO (L) I SCO Asst. O.O. 5 SCO (L) group clerks 0/TA 303 4 TA (L) 4 TA (L) 2 TA (L) 2 TA (L) 3 TA (L) 3 TA Rangers (L) 2 TA (L) 220 TA (L) 4 C0 (L) 2 CO (L) 1 10 TA Training (L) 27 CO Unit clerks () manstration 106 16 (L) 60 Dens (L) 30 Dams (L) ssengers 27 I 27 Messengers (L) uards 27 27 Guards rivers 56 56 1 asual Labour 2 2 drivers assistants i) Mobile Units Extension Aids Production, Radio Personnel Carriers i) 27 Field Centres and Schools. MALAWI LILONGWE LAND DEVELOPMENT PROJECT TABLE I EXTENSION TRAINING - STAFF ORGANISATION Recurrent Expenditure - Salaries, Wages and other costs EM POST SCALE DESIGNATION UNIT COST NO. YEAR 1 No. YEAR 2 NO. YEAR 3 NO. YEAR 4. Senior Extension Training Officer S9 0 3281 3T281~ 3281 F 3281 1 3281 Training Officer PO 0 2553 2 5106 2 5106 2 5106 2 5106 Senior Tobacco Officer PO 1 2876 1 2876 1 2876 1 2876 1 2876 Seeds and Crop Officer PO I 2876 1 2876 1 2876 1 2876 1 2876 Administrative Officer EO/TO IV 1 2786 1 2786 1 2706 1 2785 1 2786 Extension Officer (Special Duties) EQ/TO HIl I 2407 1 2407 1 2407 1 2407 1 240 Group Development Officer EO/TO 111 I 2407 1 2407 1 2407 1 2407 1 2407 Group Development Officer EO/TO III L 1345 2 2690 3 4035 4 5380 4 5380 *Training Officer (Staff Training) EO/TO 1I1 I 2407 1 2407 1 2407 1 2407 1 2407 *Training Officer (Staff Training) EQ/TO III L 1345 1 1345 1 1345 1 1345 1 1345 Technical Officers EQ/TO 1-11 L 537 Training Officer (Staff Training) 1 537 1 537 1 537 1 537 Training Officer (Farmer Training) 4 2148 4 2148 4 2148 4 2148 Tobacco Offices 1 537 1 537 1 537 1 537 Forestry 1 537 1 537 1 537 1 537 Special Duties 1 537 1 537 1 537 1 537 Units 14 7518 19 10203 24 12888 27 14499 Senior Technical Assistants SCO/STA L 635 Training 2 1270 2 1270 2 1270 2 1270 Special Duties 2 1270 4 2540 5 3175 5 3175 Units 14 8890 19 12065 24 15240 27 17145 Senior Clerical Officers SCO/STA L 635 Training and Administration 2 1270 2 1270 2 1270 2 1270 Group H.Q. 3 1905 4 2540 5 3175 5 3175 Technical Assistants CO/TA L 200 Training 10 2000 10 2000 10 2000 10 2000 Tobacco 1 00 2 400 2 400 2 400 Maize/Groundnuts 3 600 3 600 3 600 3 600 Forestry 3 600 3 600 3 600 3 600 Special Duties 2 400 2 400 2 400 2 400 Development 90 18000 140 28000 185 37000 220 44000 *Development Assistants (Training) CO/TA L 150 10 1500 10 1500 10 1500 - - Clerks CO/TA L 200 Training and Ad-Ciistration 6 1200 6 1200 6 1200 6 1200 Thi ts 14 2800 19 3800 24 PX 27 54U0 MALAWI ANNEX 6 L1tO$IGWE LAND DEVELCPMENT PROJECT TABLE 1 Cont.) EXTENSION TRAINING (cont.) POST SCALE DESIGNATION UNIT COST NO. YEAR 1 NO. YEAR 2 NO. YEAR 3 NO. YEAR 4 Demonstrators L 90 Training 4 360 8 720 12 1080 16 1440 Tobacco 20 1800 40 3600 60 5400 60 5400 Forestry 30 2700 30 2700 30 2700 30 2700 Messenger (1 per unit) L 37 14 518 19 703 24 888 27 999 Guards (1 per unit) L 43 14 602 19 817 24 1032 27 1161 Drivers L 216 40 8640 47 10152 52 11232 56 12096 Lorry Drivers assistants (2/4 day) L 37 2 74 2 74 2 74 2 74 Subsistence Allowances 360 360 360 360 360 Bicycle Allowance (STA/TA/ @ E12/annum) 12 127 1524 185 2220 236 2832 274 3288 Uniforms (TAS @ Sk each issue allows for upgrading etc..) 4 98 392 66 264 58 232 45 180 Protective clothing lorry drivers 2 sets each 0 E2 2 8 16 8 16 8 16 8 16 Running Cost T. Centre 4 E200/month 2400 2400 2400 2400 Visual Aids and Equipment @ B00/year 800 800 800 800 Rural T.Centre Msaru (residential) 9 MO/annum 640 640 640 0 Rural Training Centres (Food, matls. etc.) @ E1000/annum 1000 1000 1000 1000 Experiments/monstration Field costs 500/unit/annum for 3 years 6000 7000 75D 750 T. Costs : Bunda upgrading i 660/annum 660 660 660 660 TOTAL: 11386 136336 1531 171015 * Although there will be a total of 30 Development Asistants under training, their finance has been calculated as ten, since they will be absorbed into the TA establishment after their first year. AfiEX 7 CHART 7 FALAW I LILON6E LAID DEVELOPIENT IMECT LAW) ALLOCATION STAFF OGIAiISATIOI Staff Grado. SI Senior Land Allocation Oker (0) A.0. -inistrative flyz r (Trainae-Oe. (4 Teams) (1 Follow-up Team 1972) E.O./7.0.1It 1 Surveyor (0) E.o./T.O.lI 5 Bearcation/Allocation/ DIaarcat ion/Allocat Ion/ Recording Officer (L) I fecording Officer (1) S.C.O./S.T.A. 1 1 Tracer i/c Drawing Office (L) I T.A. 18 2 T.A. (emiarcation)(L) 2 T.A. (Survey)(L) 2 T.A. (Survey) (L) C.O. 9 1 Clerk (Field) () 1 Clerk (L) 1 Clerk (Office) () Casual Labourers 2 6 Lbo rrs 4 Lborer ANNEX 7 MALA WI TABIE IL\'w LAND EVELOP EN PIROCT LAND ALLOCAION - CAPITAL COSTS EM Unit Cost No. Year 1 Year 2 Year 3 Year 4 Temporary Field Offices 100 4 400 400 400 400 Tentage 85 8 680 - - Total 1,080 400 400 400 ANNEX LAND ALLOCATION - FCURRENT COSTS EL 2 host Scale _s;ipation Unit Cost No. Year 1 No. Year 2 No, Year 3 No. Year 4 Senior Land Allocation Officer S.9 0 3,281 1 3,281 1 3,281 1 3,281 1 3,281 Ad"inistrative Officer A.D. L 1,465 1 1,465 1 1,465 1 1,465 1 1,465 Surveyor E,0./T.O.flI 0 1,935 1 1,935 1 1,935 1 1,935 1 1,935 Demarcat ion/Al locati on Recording Officers EQ/TO/l L 537 4 2,148 5 2,685 5 2,685 5 2,685 Tracer SCO/STA L 635 1 635 1 635 1 635 1 635 Demarcation Assistants (Survey) CO/TA L 200 16 3,200 18 3,600 18 3,600 18 3,600 Clerks CO/TA L 200 8 1,600 9 1,800 9 1,800 9 1,800 Casual Labour 214 day - L 37 24 888 28 1,036 28 1,036 28 1,036 Sibsistance Allowance 250 250 250 250 Bicycle Allowance (T.A's at E12 p.a.) 12 16 192 18 216 18 216 18 216 Beaconing Materials 2,500 2,500 2,500 2,500 Drawing Office Materials 300 300 300 300 Minor Tools 100 100 100 100 18,494 19,803 19,803 19,803 MlAIMI UtMKE LW ftiEMN PiOET ANIX 8 OMWI 8 SURVES - STAF OWIs SATIOI Staff Gradig No. 91I A WRYOR (0) PO STAFF SURE (0) SIrvey ftocwawhy I t ED/O 111 2 1 STO hogramatist (0) 1 STO Catograer (0) f ED/O 1/11 5 1 t S'veycr (L) 4 TO Asst. Mtogramatists (L) 2 enior Sts-vey SIA 2 STA Senicr Cartograher SC/STA 4 Assistants (L) Assistants (1) 7 TA Survey Assistants (W 2 CD Clerks (1) 10 TA. Cartogapher Assistants 19 & (f/rA Wya a 460 casual Labour 60 MlAUMI LItNM LNDDEWELOE P JECT ANEX 0 TAE 1 - CAPITAL COSTS 01. - Strveys Year 1 Year 2 Year 3 Year 4 Equipent 4278 Arial Rtoaphy 550D 4000 411 J Triangulation and Rafly 1500 1200 1200 1200 TOTAL 11278 5200 5200 5200 UALAWI LILNGAE LAM) M[E T POJECf AwNEX 8 TABE 2 WORRNT COSTS - SAARIES RD WES AN ALLUANES 1) FIELD CSTS 0 Scale CDsignation Unit Cost Year 1 Yew 2 Year 3 NST s9 0 3281 1 3281 3281 3281 Iegional Surveyor 0 2553 1 2553 2553 2553 Staff Surveyor EV I 111 0 1935 1 1935 1935 1935 Phtogramatist EjrO111 0 1935 1 1935 1935 1935 Cartogrape r 537 ED/To I/1 L 537 1 537 537 Surveyor 2148 EQ/J I/li L 537 4 2148 2148 Asst. Photogramatist SOI/STA L 635 2 1270 1270 1270 Senior Survey Assistants SCO/STA L 835 2 1270 1270 1270 Senior Cartograr Assts. 0O/JA L 200 7 1400 1400 1400 Survey Assistants COC/A L 200 10 2O00 2000 20CO Cartoga4ar "sistants Clerks CO/tA. L 200 2 400 4W 4W Dr i varS L 216 4 864 OR ff Casual aor @ 2/4 per day fcr beaconing etc. 37 60 2o 40 1400 1480 Subsistence AQlowance 36 3 360 9 18 108 106 Bicycle Al loence (STAs and TM) @ 12/yr. rotective Clothing for [orry Drivers 2 sets each @ 2k 8 8 8 9aconing Materials 3250 W 300 Rmarking Materials 800 500 50 810 500 50 ftaraphic Materials 40 1hy 150 IRarodkction of Photograp Plotting and Drawing aterials 1150 6OC 80 28,689 26,499 26,499 LILOWE LAM IW tET NECT " VEHICLE fEQUIREPEITS TABUE LIGHT SAL O ' AD B ICI W 0 RR I E S 30 CWT PICMS 1ROTO CYCLES LA N 0 R0I ER S -. ~ ~. SR RD S.. HA. KASTIr!SV i WINA TYPE E C T TYE 5 ToN 7 TON 433 11 1 ?1 1 4 1 23 24 12131211 11 2 34 Acs -r~c - 1~ -i .j__ - ~- ~ -2 t o&l 1C* 2.-a t-- -I - Plawletgn Officer- S.* s.cO.. ComerodTIoO ff I a - IF IL 0Poatfn Off ic Coft. (Cont'd)ANNEX (Contd) TABLE L 0 R R IE S L6HT SALCA 90 PICKIS 5 TON 7 TON 30 CWT PICKUPS MOT(R CYCLES S.W.B. HARDTP S.W.B. STAMRD MA T SCORT TYPE L.W.B. HARICP L.W.B. STAMRO 3 4 1 2 3 4 23 - 12 3 1 2 3 11 3 1 2 - YEAR 1 3 4 1 2 k 3 _ 6xT~ 'MAIMNG S.E.T.O. 0- 5 3 -ri i 1 - 2- - - --- STraIning -- 2 1 1 1 2 Divisional Officers Unit OffIcers S5 214 2 1 !psc lal Duties3 Aministration LAND ALLOCATI S.L.A.O. '1 -'- I-- - 5 -~ 2 Su or SSVEY - - 3 4 L 12 0 7 14 PERSONNEL CARRIERS I" 1 MOBILE SERVICE UNIT I* ~ F CRM) (XNTROL LAND ROVER * STATION WAGON * CATTLE WAGONS (7 ton) -* ANNEX 9 TABLE 2 MALAWI LILONGWE LAND DEVELOeMENT -ROJECT CAPITAL COSTS OF VEHICLES EM Existing Unit Cost No. Year 1 No. Year 2 No. Year 3 No. Year 4 An Adm.inistrat ion L.R, L.W.B. (St. Wagon) 1 1,600 1 (R) 1,600 1 x 18,000 L.R. L.W.B. (Hard top) 2 1,300 1(R) 1,300 1 (R) 1,300 1 x 18,000 1 x 24,000 L.R. S.W.B. (Standard) - 1,050 2 2,100 1 (R) 2,100 1 x 18,000 1 x 24,000 L.R. S.W.B. (Hard top) - 1,150 1 1,150 1 (R) 1,150 1 x 24,000 Cortina Type 2 1,050 1 (R) 1,050 1 (R) 1,050 2 x 18,000 tight Cars & eickups 1 700 1 . 1 (R) 1,400 2 (R) 1,400 2 x 12,000 Animal Husbandry L.R. L.W.B. tStadard) - 1,100 1 1,100 1 (R) 1,100 1 x 24,000 L.R. L.W.B. (Hard top) - 1,300 1 1,300 1 (R) 1,300 1 x 24,000 L.R. S.W.B. (Siandard) - 1,050 1 1,050 1 (R) 1,050 1 x 36,000 Light Cars - eickups - 700 3 2,100 3 (R) 2,100 1 700 3 (R) 2,100 4 x 24,000 7 ton Lorries (Cattle) - 3,000 2 6,000 2 (R) 6,000 2 x 20,000 Conservation IR. LW8 *(Standard) 2 1,100 5 5,500 2 (R) 2,200 5 (R) 5,500 7 x 24,000 L.R. S.W.B. (Standard) 3 1,050 2 (R) 2,100 2 (R) 2,100 2 x 24,000 (1Existing not replaced) Lt.. S.W.B. (St. Wagon) 2 1,150 1 (R) 1,150 1 x 36,000 Jght Cars & Pickups 1 700 1 + 1(R) 1,400 2(R) 1,400 1 (R) 700 2 (R) 1,400 1 x 36,000 1 x 24,000 5 ton Lorries (Flats) 5 2,000 2 (R) 4,000 1 (R) 2,000 3 (R) 6,000 4 x 18,000 (1Existing not replaced) 5 ton (Mobile Workshop) - 4,000 1 4,000 1 (R)(Lorry only) 2,000 1 x 18,000 5 ton Tippers 2 2,400 1 (R) 2,4,T 1 (R) 2,400 1 (R) 2,400 2 x 18,000 7 ton Flats 2 2, 400 2 4,800 2 (R) 4,800 2 (R) 4,800 4 x 18,000 7 ton Tippers 1 2,800 3 8,400 1 (R) 2,800 3 (R) 8,400 4 x 18,000 30 cwt. Truck (versonnel) - 1,400 2 2,8021 2 (R) 2,800 2 x 18,000 Credit Light Cars & pickups 5 700 5 (R) 3,500 4 . 5 (R) 6,300 5 (R) 3,500 5 (R) 3,500 1 x 36,000 4 - 8 x 24,000 CAPITAt COSTS OF VEHICLES EM (Contd.) ANNEX 9 TABLE 2 Existing Unit Cost No. Year 1 No. Year 2 No. Year 3 No. Year 4 Annual Mileage Extension & Training Land Rover L.W.B. (Hard top) 1 1,300 1 1,300 1 (R) 1,300 1 (R) 1,3(X) 2 x 24,000 L.R. L.W.B. (Standard) 1 1,100 1 1,100 1 (R) 1,300 1 (R) 1,100 2x 24,000 L.R. S.W.B. (Hard top) - 1,150 1 1,150 1 x 12,000 Cortina Type 1 1,050 1 (R) 1,050 1 (R) 1,050 1 (R) 1,050 1 x 36,000 Light Cars A Pick-ups 16 700 11 3 (R) 9,800 7 + 2 (R) 6,300 6 - 18(R) 16,800 4 + 13 (R) 11,900 6- 10 x 24,000 21 - 34 x 12,000 5 ton Flats (tersonnel) 2 2,500 1 2,500 1 (R) 2,500 1 (R) 2,500 1 (R) 2,500 3 x 18,000 5 ton Flat 1 2,000 1 2,000 1 (R) 2,000 2x 18,000 Motor Cycles - 130 3 390 2 260 1. 3 (R) 520 2 (R) 260 3 - 6 x 12,000 Forvard Control L.R. - 1,400 1 1,400 1 (R) 1,400 1 x 24,000 Land Allocation t.R. L.W.B. (Standard) 1 1,100 3 3,300 1 5 x 12,000 Light Cars & Hickups 1 700 4 2,800 1 700 1 (R) 700 4 (R) 2,800 5 x 12,000 30 Cwt. Truck - 1,400 2 2,800 2 (R) 2,800 2 x 18,000 Cortina Type - 1,050 1 1,050 1 (R) 1,050 1 x 36,000 Surveys L.R. L.W.B, (Standard) 2 1,100 1 1 (R) 2,200 1 (R) 1,100 2 (R) 2,200 3 x 24,000 30 Cwt. Truck 1 1,400 1 (R) 1,400 1 x 18,000 Total 88,990 33,010 42,820 81,360 R - Replacement Vehicle) TABLE 3.- MALAWI LIlONGWE LAN DEVELOPMENT PROJECT ECRRENT COST - VEHICLES EM Unit Cost No. Year 1 No. Year 2 No. Year 3 No. Year 4 A04INISIRATION Land Rovers 18000 mis @ 10d mi. 750 3 2,250 3 2,250 3 2,250 3 2,250 * 24000 mls @10d mi. 1,000 3 3,000 3 3,000 3 3,000 3 3,000 Uortina - Type 18000 mis @ 7d. ml. 525 2 1,050 2 1,050 2 1,00 2 1,00 0 0 2,5 2-hAs@6.e 20 ,00 i f Cars &Pfckups 1200rls 5d.mI 300 2 600 2 600 2 600 2 800 W MAL HUSBANDRY Land Ievars 36000 mis @ 10d. ml. 1,500 1 1,500 1 1,500. 1 1,500 1 1,500 a N 24000 mis '# 1Od. ml. 1,000 2 2,000 2 2,000 2 2,000 2 2,000 Light Cars ; Hckups 24000 @ 6d. ml. wo 3 1,800 3 1,800 4 2,400 4 2,400 7-Ton lorri-t 20000 mis. @ 1s.3d. a]. 1,250 2 2,500 2 2,500 2 2,500 2 2,500 CONSERVATIO 1 Land R-oers 36000 mis. ( 10d. ml. 1,500 1 1,500 1 1,500 1 1,500 1,500 " 0 24000 mls. @16d. ml, 1,000 9 9,000 9 9,000 9 9,000 9 9,000 ght Cars &eickups 36000 mis 9 6d. ml. 900 1 900 1 900 1 900 1 900 S " 2400M mis @ 56dLm. 600 1 600 1 600 1 600 1 600 5-Ton Lorrie 18000 @ 1s.1d. mi. 975 7 6,825 7 6,825 7 6,825 7 6,825 7- Ton " 15000 8 1s.3d. ml, 1,125 8 9,000 8 9,000 8 9,000 8 9,000 30 Cwt. Trucks 18000 mis. @ 1s. ml, 900 2 1,800 2 1,800 2 1,800 2 1,800 CREDIT Light Cars & Pickups 36000 mis. I 6. ml. 900 1 900 1 900 1 900 1 900 4 1 24000 mis. 4 6d. ml, 600 4 2,400 8 4,800 8 4,800 8 4,800 EXTEWON I&1RAINMN Land Rovrs 24000 mis. @ 10d. ml. 1,000 4 4,000 4 4,000 4 4,000 4 4,000 " 12000 mis. @10d. ml. 500 1 500 1 500 1 500 1 500 Cortina Type 36000 @ 7d. al. 1,050 1 1,050 1 1,050 1 1,050 1 1,050 Light Cars S Pickups 24000 als. @ 5d. al. 600 6 3,600 8 4,800 9 5,400 10 6,000 V " 12000 mis. @ Sd. mi. 300 21 6,300 26 7,800 31 9,300 34 10,200 5- Ton Lorries 18000 mis. 9 1s. Id. rl. 975 5 4,875 5 4,875 5 4,875 5 4,875 Motor Cycles 12000 sls. 4d. ml. 20) 3 600 5 1,000 6 1,200 6 1,200 LAN ALLCATION Land Rovers 12000 mis. iOd. mi.. 500 4 2,000 5 2,500 5 2,500 5 2,500 / Cont. ANNEX 9 MALAW I TABLE 3 LILONWE LAND DEVELOPMENT PROJECT RECURRENT COST - VEHICLES (CONT.) CM Unit Cost No. Year 1 NO. Year 2 No. Year 3 No. Year 4 LAND ALLOCATION (Cont.) Cortina Type 36000 mis. @ 7d. ml. 1,050 1 1,050 1 1,050 1 1,050 1 1,050 Light Cars & Pickups 12000 mis @ 6d. al. 300 5 1,500 6 1,800 6 1,600 6 1,800 30 Cwt. Truck 18000 mis @ is. ml. 900 2 1,800 2 1,800 2 1,800 2 1,800 SIRVEYS Land Rovers 24000 mls @ 10d. ml. 1,000 3 3,000 3 3,000 3 3,000 3 3,000 30 Cwt. Truck 18000 mis @ Is. al. 900 1 900 1 900 1 900 1 900 GROSS TOTAL 78,800 85,100 88,000 89,500 NEduct Recurrent Expenditure of Maintenance & Light Repair Bay 7,841 7,841 7,841 7,841 NET TOTAL 70,959 77,259 80,159 81,659 ANNEX 9 MALAV1 TABLE 4 LILON3E LN0 DErEtLWAMET PROJECT STATE OF VEHICLES EXISTING AND TO BE BOIXT BY END P"'.i I YEHICLE GNO. ASSUMD USED BY ASS1MED MILEAGE ASS O ASSUMED RLACEENT MiLEAGE O AT END AILEAGE TOTAL REiLACEMENT &E LEAG NOV. 196 E F MILEAGE AT EN PHASE iHASE 1 ADMINISTRATION Cortina 6219 Project Manager 1F000 22000 46000 60000 Dec. 1971 L.R. Stn. Vagjn 5472 Project V. 24000 4000 36000 72000 SeO. 1972 L.A 450 ;. -zonfsist 24000 5000 37000 72000 Sept. 1972 L.R. 6451 Ag. Economist 18000 5000 29000 72000 July 1973 Escort 6222 Pool 12000 13000 29000 36000 Oct. 1971 7000 Cort ina IL Pool 18000 - 22500 60000 nay 1973 Animal Husbandry - New Sction CONSE1VTIO L.R. 6198 S.Ci.0. 36000 25000 72000 72300 Mar. 1971 1000 L.R. 6151 4aming Officer 24000 22000 54000 72000 Nc. 1971 LA. 6197 Cctservation Officer 24000 22000 54000 72000 Dec. 1971 L.R, 6065 Senior Tech. Officer 24000 31000 63000 72?W July 1971 L.R. 6150 Senior Tech. Officer 240(0 33000 5000 72000 Jun 1971 LA. 5715 Senior Tech. Officer 24000 35000 60000 60000 Oaaged in crash Dec. 1970 7000 L.R. 5546 Senior Tech. Officer 24000 60000 72000 72000 June 1970 20000 Escort 6225 Building Su.ervisor (Snr.) 36000 11000 36000 36000 Aug. 1970 23000 5 Ton Lorry 6236 18000 18500 42500 60000 Ma. 1972 - 6263 18000 14000 38000 6n00 Nay 1972 5 Ton Lorry 6117 18000 29500 53500 60000 JUIy 1971 5 Ton Lorry (T) 6237 18000 3000 27000 60000 Jan. 1973 5 Ton Lorry () 6141 18000 26000 5000 60000 Sept. 1971 5 Ton Lorry 5961 18000 39000 60000 6000 Jan. 1971 3000 5 Ton Lorry 5601 Boarded 7 Ton Lorry Vew 69/70 Replaces 5601 18000 - 195(0 60000 June 1973 - 7 Ton Lorry New 70/71 18000 - 1i5WO 60000 Oct. 1973 7 fon Lorry (T) New 70/71 18000 - i5m 60000 Oct. 1973 7 Ton Lorry New /170 18000 - 19500 60000 June 1973 CREDIT Escort NOW Senior Credit Officer 36000 - 36000 36000 Dec. 1970 12000 Escorts New 4 Credit Officers 24000 - 32000 36000 May 1971 ---. - C VECLE "a 40. ASSMED USED Of ASSMD MILEAE ASSWIED ASSUM RELLMEE NlLAGE OF A-AAL IT EM1 M "TAL w- TLO ~w Rimii U .799 Efi-O M qIEEX'{1"" EXTENSION 3 TRAINIE L.R. 673 Training Section (L.W.B.H.) 20o 400 30 72000 Sept. 1972 - L.R. 6196 Training Section (L.V.S.S.) 2400 12000 44000 72000 May '972 Cortina - 6232 S.E.T.0. 36000 10000 5000 6000) Mar. 1971 Escort 6220 Tralning Officer 24000 900 36000 3000 Jan. 1971 50 Escort 5962 Training 12000 230 36000 3000 Dec. 1970 300 Escort 6225 Seeds &Crop Officer 2000 8000 36000 36000 Jan. 1971 4000 Escort 5056 Special Duties Extension Officer 74000 1800D 360 J000 Aug. 1970 14000 Escort 5051 Special Dtties T.O. 120 2100 30 30 Feb. '971 1000 Escort 50 SpecIal Dities T.0. 12000 20000 30000 36000 mar. 1971 - Escort 5963 Divisional Officer 24000 71000 3000 36000 July 1970 17000 Vahall 6242 Divisional Office 240 7000 3VA 72000 July 1972 Not replaced Escort 600 Ult Officer 100 2300 36000 36000 Dec. 1970 3000 Escort 596 Unit Officer 1200 22000 36000 36000 Jan. 1971 2000 Escort 60m Unit Off Icer 12000 21000 3w000 36000 Feb. 1971 1000 Escorts (8) low 69/70 Unit Officers 12000 - 90 3000 Ja. 1973 5 To Lorry 6241 Seed a Crop Officer 18000 16000 400 600 My 1972 5 To Lorry new Seed &G'ep Officar 18000 - 1950 600 June 1973 - Personnel 5950 Training 18000 31000 55000 60000 ane 1971 - Personnel Now Training 18000 19500 50000 J 1913 - LAN) ALLOCAT10 Escort 8221 S.L.A.0. 360 11000 3800 3m July1970 23000 LR. 656 D..arkatioa Officer 12XD 3000 21000 72000 Jan. 1915 - L.R. L.Y.B. 61RK Surveyor 24000 lional 1000 4500 72000 1972 say - LR. LV.8. 572 Regional Surveyor 2000 23000 5000 72000 Dc. 1971 30 Ct. Truck 6235 %gional Surveyor 180 10000 30000 0000 NoV. 1972 - ANMEX TABLE MAINTENANCE AN D LIGHT REPAIR BAY. Discussion with the Mechanical Engineering Branch indicates that their resources have reached saturation point. This is due not only to an increase in Project Machinery, but also to an upward trench in other departments. It is therefore recommended that a Bay be installed in the transport section area for; - (a) Routine maintenance, (b) Repair of tyres and checking of wheel alignments, (c) Minor paint and body welding work, (d) Minor repairs, e.g. change springs, repair radiators, replace gaskets, adjust carburettors, adjust brakes. The above would effect a great saving in turn around times as the vehicles would not be waiting it's turn in line with other department's vehicles for comparatively mihor repairs. Purthermore, M.E.B. workshop space and time could be devoted to that for which it is primarily designed - the repairs of a heavier and more complicated nature. COMPOSITION. Building: - Prefabricated Steel Structure 70 x 40 With Concrete flour X 2,500 Office and stone walls E 500 3 Inspection Ramps @ f 250 E 750 Minor Tools E 500 Electric and Gas Welding 200 amp. E 215 Gas Welding E 100 Compresser and Battery charger E 100 Plumbing and Electric Light x 250 Z 4,915 STAFFING. Overall Control - Transport Officer - T.0.I/II Mechanic E 537 11 Clerks C/o x 149 1 T.A. Mechanic @ 3/- per hour E 380 6 casual " @ 1/6 " " - Z 190 p.a. 1,140 7 Mechanic Assistants @ 3/3 per day - X 70 p.a. E 490 1 Welder @ 3/- per hour - 380 p.a. E 380 X 3,076 RECURRENT COSTS. Wages 3,076 Oil. Lubricants, Grease & Service of 110 Vehicles @ Z 4 each E 440 Small Spares - 110 Vehicles @ k 25 each E 2,750 Running Expenses - Welders, water, electric light @ E 5 per day for 315 days z 1,575 TOTAL E 7,841 MALAWI ANNEX 10 LILONGWE LAND DEVELOPMENT PROJECT TABLE 1 TOWN HOUJING -REQUIREMENTS AND CAPITAL COSTS SM BH cH4 CH10 }G2Z PH2 1. HOUSING Project Supe scale and Non-Profess., Local SCO/STA CO/TA Class of house Manager Prof &ssional Expatriate and EO/TO and entitlement:- Local E/O T/O III I/II and above Year 1 2 1231 1 2 1 1234 Administration 1 4 6* 12 7 34** Animal Husbandry 2 3 1 2 1 6 8 12 14 Conservation and Planning 3 7 9 9 80 Credit 3 1 1 3 3 2 11 3 1 1 1 Extension and Training 5 7 1 1 8 9 3 2 25 1 Land Allocation 2 1 4 1 1 24 3 Surveys 1 2 5 4 19 Total 1 17 29 2 3 43 4 33 3 3 1 191 13 13 15 Existing 7 32 31 11 108 Balance required 10 - - 2 12 4 22 3 3 1 83 13 13 15 * Includes 1 house for (I) Stenographer ** Includes 5 houses for 10 enumerators LILONGWE LAND DEVELOPMENT PROJECT Table 1 (cont) TOWN HOUSING - REqUIREMENTS AND CAPITAL COSTS EM 2. OTHER BUILDING RESUIREMENTS Maintenence and Light Repair Bay 1. (See Annex 9 Table 5) Additional storage at H.Q. 1. 3. TOWN BUILDING CAPITAL COSTS LM Unit Cost Year 1 Year 2 Year 3 Year 4 Houses - BH 9900 1 9900 CH4 7480 10 74800 - OHIO 6600 - - 2 13200 30 2860 12 34320 4 11440 - - 2Z 1320 22 29040 3 3960 3 3960 1 1320 PH2 770 83 63910 13 10010 13 10010 15 11550 Maintenence and Repair Bay 4250 4250 Store (H.Q.) 500 500 3368c 216720 25410 27170 12870 ANNEX 10 TABLE 2 M A L A W I LILONGWE LAND DEVELOPMENT PROJECT COUNTRY BUILDINGS CAPITAL COSTS CM Unit Adainistrative/Market Centres (See Annex 21) ................... 83,0o 83,000 83,000 83,000 83,OOO Credit Assistants (PH2 House) . 500 (40) 5.0.0. 20,000 (21) 10,500 (22) 11,000 (16) 8,000 Field Stores ..................... 2,800* (2) 5,600 (1) 2,800 (1) 2,800 S.C.O. & Storekeepers' Houses (2 ... 1,000 (2 2,000 (1) 1000 1,000 Sub-Total:- 110,600 97,300 97,800 91,000 TEMPORARY BUILDINGS Mobile Houses for S.C.S. Staff ..... * 75 (122) 9,150 Z2jalo- 119,750 97,300 97,800 91,000 * Includes Security Fencing (4300) TABLE 3 HA L A W I LILONGWE LAND DEVELOPMENT PROJECT BULK STORES - CAPITAL COSTS M (SEE ANNEX 16) Tear I Year 2 Year 4 Fertiliser Store at Salima ............. 31,777 Fertiliser Fil tr d ........ 108,976 Maize and Groundnut Stores .............. 110,000 165,000 165,000 165,000 Groundnut Sheller Building rith wompleI- Sheller........ * . .. 40000 290,753 165,1GQ'. 165,000 165,000 ANNEX 10 TABLE 4 LILONGvE LAND DEVLOPMENT PROJECT -U L7ClUPs T C'$ ~ ' a ear Y ea 4 EU ~ILDINGD (n' &d P ' e41n e 6053 6'73 ~~ - 12 112 11250 31250 ~5 519e, 76435 ~axit~neceC.i2~ 2 per annum 1890 1890 0I~ (ermanent Zqi d-489o Buiidi~ga) (27~OOexoud irg marke ts) * 830 1830 1830 A 20% per Phae Bui1inj9 1800 1800 1800 1800 (aM -bii- - 1494o 24953 28021 31146 met by F.M.B. Markets and F.M.B. Building Recurrent Costs to be MALAWIANNE" 11 o a,, ( u Culation :,1Q : 3 in 196) jProject cru2 ,uO: acre+) ,roiect Year Phase project Pear Pha-e I 1 2 3 4 5 o of r" 100 46,500 j K C,8 52,3QO 53,900 55,50c 58,100 58,10 No of Acres developed ac . - 10,000 3 &D 101(,)( 181,00C 281,000 381,000 481,000 381,000 581,00C No of Families affected by development .. - 3,70 10,100 18,100 28,1 c) 3-',100 48,100 58,100 53,100 Increase at 3% compound per annum in year 1975/76 the optimum no. of ZaiLy holdings is reached. Thereafter sub-division with intensification will have to take place. MALA.I TABLE, 2 LILONGWE LAND DEVELOPMNT PROJECT CROP DEVELOPMENT Level of Maize Production Per 100 H}oldings s of holdings Year of ilot Development 1 2 3 4 Production/Acre in Bags No response (NR) 10 10 10 10 5.5 Synthetic and extension (SE) 80 60 30 10 7.5 Synthetic and fertilizer (31) 10 15 20 5 13.5 Hybrid and low fertilizer input (HI) - 10 25 40 13.5 Hybrid and high fertilizer input (H2) - 5 15 35 19.0 MALAlW L! ILCoviWE l4L DEVELA1ENT PRJECT CRP DEVELOWENT ANNE 11 Table 3: No. of Plot Polders (6 acre Cultivated Averago) rostonding to various levels of maize cultivation within Dveloped areaof Poject Year of Plot evelop lt 1 2 3 4 5 Total NR SE Si H! H2 4R SE Si HI I{ NR SE Si H H2 NR SE SI Hi H2 NR SE S HI NR SE S1 H1 H Phas;e 1 PIt Holders &C 401 8C + -1 640 3840 1920 - 370 111 222D - 110 11350 4940 - Yi(ar 1 1lOW 1.@ - 8W41200 48(0 40040 &C 19201603 1280 370 930 185 370 1480 12 5Z 15090 2610 388D 255 Year 2 10CO R0X 1000 - -l M IV 1500 6033 1U GO 2400 200 16CO12) 640640 2560 320 270 2240 370 165 1295 1480 3810 174107040 4605 235 yeL 3 1 ox 800 1 0( - - IJ,0 1 0bG 1500 10-09 5 10C0 30120 2500 80 80) 40) 3200 1500 1010 1010 MflO 4046 505 3535 4810 18810 10740 405 8335 Year 4 Kno 80 100 - - (00 0 6IC 15 1N 00 Uk1 10( 30(0 2(03 25W 1500 1000 I 50 #tX YO 350) 1810 1610 9R 7240 6335 5810 19810 5905 14740 1m Year5 - . - - 10c 61 1540 10(0 5(L 1000 306 2030 25X1 1500 1AW 1060 500 40M 3500 2010 2810 1405 11240 9835 5810 12810 545 18740 15335 ear . - . . +O 3000 2Cu 2600 15U 10M0 1000 50040 30 3810 3810 19)5 15240 13335 5810 7810 4405 21740 1t335 Year 7 ---- . 110X IO 515 4C0 1000 M410 4810 2419240 5810 5810 29 16835 2324M 20335 Year8 -- - - - - - - - -5 - 5810 -1 295 5810 20335 5810 232405810 2905 23240 20335 NR - ko responso (i.e. 5.5. bags of maize/acre) SE - Synthetic maize and extension only (i.e. 7.5 bags of maize/acre) Si - Synthetic maize and fertilizer (i.e. 13.5 bags of maize/acre) HI - *ybrid maize and low imput fertilizer (i.e. 13.5 bags of maize/acre) I2 - Hybrid maize and high fuput fertiltzer (i.e. 19 bags of maize/acre) LILONGWE LAND DEVELOPMENT PROJECT CROP DEVELOPMENT Summary of Area of Maize Production (acres) and Volume of Production 1970/71 Total Acres of Maize @3 Before acres/Family Development Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 20 in undeveloped Project Area 98100 72600 47400 22200 - - - - No Response 5430 8420 11430 14430 17430 17430 17430 17430 Synthetic Maize + Extension 34050 45270 52230 56430 59430 38430 23430 17430 Synthetic Maize + Fertilizer 14820 10995 13815 16215 17715 16215 13215 8715 Hybrid Maize + Low Fertilizer - 11640 21120 32220 44220 56220 65220 69720 Hybrid Maize + High Fertilizer 7965 15705 25005 350j 46005 55005 610 Total Acres 152400 156900 161700 166500 174300 174300 17 4* 3 00 174300 Production of Maize Bags (200 lbs) In undeveloped Project Area @ 5.5 bags/acre 539550 399300 260700 122100 - - - - No Response @ 5.5 Bags/acre 29865 46365 62865 79365 95865 95865 95865 95865 Synthetic Maize + Extension 7.5 bags/acre 255375 339525 391725 423225 445725 288225 175725 130725 Synthetic Maize + Fertilizer @ 13.5 bags/acre 200070 148433 186503 218903 239153 218903 178403 117653 Hybrid Maize + low imput fertilizer 13.5 bags/acre - 157140 285120 434970 596970 758970 880470 941220 Hybrid Maize + High Impt Fertilizer 19 bags/acre 151335 298395 4'5095 674595 874095 1045095 1159095 Total bags 1024860 1242098 1485308 1753658 2052308 2236058 2375558 2444558 Less Substence 13 bags/family 660400 679900 7 00 MALA#I TABLE 4 (CONT.) LILONGWE LAND DEVELOPMENT PROJECT CROP DEVELOPMENT 1970/71 Total Acres of Maize @ 3 Before acres/Family Development Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 - 20 364460 562198 784608 1032158 1297008 1480758 1620258 1689258 Surplus for Sale outside Project 56200 78500 103200 129700 1481oo 162000 186900 Surplus in Short Tons 36400 incremental Total Production 1027 1211 1351 1420 Bags '000 217 460 729 Incremental Total Production in Short Tons '000 22 46 73 103 121 135 142 Incremental Surplus in Short Tons 93 112 126 153" '000 20 42 67 7.9 9.2 10.5 11.8 12.8 13.6 14.0 Average Production/Acre Bags 6.7 subsistence requirement for family = 10.5 + 2.5 bags storage losses = 13 bags. SEED MAIZE RE"UIEMENTS TABLE 5 A E 0/7 Yr.1 Yr,2 Yr.3 Yr.4 Yr.5 yr.6 Yr.7-2C Local Mii ze (acres) 103530 81030 58830 36630 17430 17430 17430 17430 Synihetic Maize (acres) 48870 56265 56045 72645 77145 54645 36645 25145 Hybrid 'ai ze (3c, )19605 36825 57225 79725 102225 120225 130725 TOTAL 152400 156900 161700 166500 1 4300 174300 174300 174300 SHO, 9F tI MENT (Short tons) New Synthetic 1. 264 330 330 330 330 55. 58. 79 94 104 120 81 56 ReplAcement Synthltic 2. TOT AL SYNTHETIC 319 388 + 3 424 434 120 81 58 TOTAL HYBRI 216 405 629 877 1124 1322 1438 NOTES: 1. Seed rate of all varieties 22 lbs/acre (10 kilo) 2. Rahlace:,nt 20 /annum 4 New Synthrtic Seed reairement in rhase It calculated from Table cwmpil#d frovi Thble 4 assuming 'Un Jivelop-d rject Are3' and 'No Res orse' aize of local variities. Incerementai'Maize Acreage in Project Area x 22 2000 Short tons. MALAWI TABLE 6 LILONGWE LAND DEVELOPMENT PROJECT MAIZE - GROSS MARGIN PER ACRE (SHILLINGS) No. lbs. Cost/Unit Total Cost N.R. 5.E. S.1 H.1 H.2 (a) Using Super Phosphate and Sulphate of Ammonia. Synthetic Seed 2.2 2.2 2.2 Hybrid Seed 44.0 44.0 20 1.42 28.4 28.4 28.4 28.4 Fetilizer P205 Fetilizer N. 40 1.29 51.6 51.6 51.6 Fetilizer N. 60 1.29 77.4 77.4 Total Cost - Shillings 2.2 2.2 82.2 124.0 149.8 Return @ 17/6 per Bag - Shillin-s 96.25 131-25 236.25 236.25 532. Gross Margin 94.05 129.05 154.05 112.25 182.7 (b) Using Super Phosphate andC.A.N. Synthetic Seed 2.2 2.2 2.2 44.0 44.o Hybrid Seed 44 4 Fertilizer P205 20 1.42 28.4 28.4 28.4 28. Fertilizer N. 40 1.38 55.2 55.2 55.2 Fertilizer N. 60 1.38 82.8 Total Cost - Shillings 2.2 2.2 85.8 127.6 155.2 Shillings 96,25 111-25 236.25 236-25 332.5 Return @ 17/6 per bag - Gross Margin 94.05 129.05 150.45 108.65 177.3 Notes: Super Phosphate 27 per ton Sulphate of Ammonia E27 per ton C.A.N. 36 per ton Hybrid Seed 2/- per lb. Seed rate 221bs per acre TOTAL ACREAGES OF GROUNDNUTS T DIFFERENT RESPONSE LEVELS. TOTAL NO. OF GROWERS IN HIGH/LOW HESONSE C1EG00IES High Response LoW Resoonse Total Acres. 600 lb/acre 400 lbs/acre 300 lbs./acre 370 H.R. 1. 370 3330 L.R. 3330 3700 T. 1190 H.R' 2. 550 - 0 8910 L.R. 3150 - 5760 .- 1 CI00 T. 2870 H3. 2870 3. 1110 * 960 + 800 15230 L. 13420 110 2590 . 5440 . 7200 T. 18106 18100 + 1200 1000 5970 H.R. 5970 1. 1850 + 1920 + 1850 . 4480 + 6800 + 9000 22130 LR. 19320 28102 Zr1v 28100 T. 2. 2220 + 3200 . 2400 .1500 . 1000 10320 H.1 27180 -R' 359551 1480 3200 . 5600 . 8500 . 9000 T. 57150 38100 3. 2590 * 3840 . 4000 + 3000 . 1500 . 1000 15930 H.R. 31860 1110 + 2560 . 4000 . 7000 + 8500 + 9000 32170 R. 54720 962 W 48100 T, 4. 29 + 4480 . 4800 .5000 + 000 15 1000 2740 - . 45480 + I(,3 35360 L.R. 59100 11628 740 . 1920 + 32W . 5000 7000 . 8500 11620C 58100 T 5. 2960 - 5120 . 5600 . 6000 . ;C00 . IXU . 1500 29180 HR 58360 28620 LA 6220 11620 740 . 1280 . 2k00 . 400 . 5000 - 7tv0 . 8500 116200 53100 T. 31 6. 29: 512Q . 6430 . 70V0 . 15 C . 5000 . 3003 - 3fTC 1290 .1 *-. 4800 .c0> + 1 L. 222 .70 .3362 7J) 11b20 0 116200 58T . 7. 29b0 . 5120 . 6400 .8 0) + 7 + 5000 . Lc c , 0 R. 80920 4000 - 5C0 1/620 L.R. 23620 111Q 740 + 1280. 1600 . 2000 3100 11620 58100 . 0480 HY, 86960 8. 2960 + 5120 + 6400 . 8000 - 8000 . 7000 . 6000 1120 740 . 1280 . 1600 . 2000 + 2000 + 300 + 4000 14620 L.R. 17620 58100 1.116200 2960 + 5120 - 6400 . 8000 8000 + 8300 70 45450 H.R. 90960 12620 LR. 13620 1150 740 + 1280 - 1600 2000 . 2000 . 2000 - 3000 116200 5810 T. 46480 H.R. 92960 10. 2960 + 5120 . 6400 . 8000 . 8000 . 8000 . 8000 Onwards 740 + 120 * 1600 . !000 + 2000 . 2000 + 2000 11620 58100 11620 11620 11620 AMX nl. TABLE 7. (cont.) TABLE OF GROUINUT GROWERS &GROUNONUT ACREAGES AT DIFFERENT RESPONSE LEVELS. (cont.) NOTES- 1. In Phase I and Year 1 of Phase IIl acre per grower. 2. In year 2 of hasa I1acreage increases to 1.5 acres /grower. 3. Year 3 of ehase 11 and thereafter, acreages at 2. acres/grower. Increases due to arrival of groundnut sheller. 4. Assured response levels as follows:- a) High response Low response Yr.1 10% 90% Yr.2 15% 85% Yr.3 30% 70% Yr.4 50% 50% Yr.5 690 40% Yr.6 70% 30 Yr.7-20 80% 20% 10% of total growers whose production remains at 300 lbs/acre b) In addition it is assumed that in the Low response category will be contained requir.ments and home consumption. 5. Production /-cres in all cases represents surplus yield or gross yield less seed TABLE 8 SUNIARY OF GROUNWNUT ACREAGE & SURPLUS GROUfONUT PRODUCT ION Yr.6 Yr.J Yr.8 Yr.9 Yr.15-20 Yr.1 Yr.2 Yr.3 Yr.4 Yr.5 70/71 TOTAL ACRES. - - - - - 32700 24200 15800 7400 - 116200 116200 116200 116200 116200 - deloed ProjecAra1 28100 57150 96200 116200 116200 Developed Project Area 2) 18100 116200 116200 11200 116200 72950 103600 116200 116200 116200 TOTAL 50800 52300 SURPLUS PRODUCTIMN SHELLED NUTS 000Ths/ 3) 7 4740 2220 Undeveloped Projct Area0 Phase 1 70/71 7633 Phase I1 Year 1 12153 25385 23 43890 3 r1 4 Post Phase 5 56990 59510 6 6 61510 7 62710 8 63510 10 63910 61510 62710 63510 63910 46110 54414 56990 59510 17443 19413 30125 TOTAL PROD. SHELLED NUTS ('Olbs. 30755 31355 31755 31955 23055 27207 28495 29755 8722 9707 15063 TOTAL SURPLUS PRODJ. S4ELLF UTS (short tons) T ts short ( et dSURPLUSPROD. 98563411433318485 21033 19773 22033 23033 22633 23233 Incremented Prod. (short tons) - 546 g 493043 512 529 5405750 371 413 445 468 Avereage Vrod./acre 343 NOTES: le 1. cases is surplus for sal quirements i. Gross Prod less ed re home cns tion) Calculated from Annex 11 Table 7 and from Annex 11 Table 1. Incrental production in a SURPLUS YIELD OF TOBACCO IN LBS. CURED LEAF PER ACRE GROWERS ACRES GROERS ACRES PROUCT ION AVERAGE GROWERS 250 ACRES GROWERS ACRES GROWERS ACRES GROWERS 200 ACRES '000 LBS PRODUCTION /ACRES LBS. - - 150B0 45240 9048 200 Pre I)veloment 15080 45240 - - - - - - 15080 44616 9048 203 1 3/69 14040 42120 1040 2496 - - Phase 1 2 69/70 12480 37440 1560 374 1040 120 1 - - - 15080 4364 9048 222 222 4992 1560 3120 10Y0 1387 - - 15080 40699 9048 3 70/71 10400 31200 2060 2080 1040 1248 15080 37128 9048 24 7800 23400 2600 6240 230 4160 1560 1 71/72 3439 15080 36302 9974 275 2600 678 2600 5732 2080 3057 2600 2 72/73 5200 17196 15080 31220 9974 319 260 5732 2600 3821 460 6191 Phase 11 3 73/74 2600 8598 2600 678 26061 9974 383 2600 5732 2600 3821 7280 9630 15080 4 74/75 - - 260 678 3821 9880 13069 150B0 22622 9974 441 - 2600 5732 2600 5 75/76 - - - 12480 16509 15080 20330 9974 491 - - 2600 3821 Post Phase It 6.76/77 - - 15080 19948 9974 500 15080 19948 77/78 - - NOTES: quotas of 600 lbs cured leaf 1. No. of Registered growers estimatad at 520 per unit from market quotas and growers column(1)), quotas being made up from tobacco from non registered tobacco growers. 2. In practice few growers will plant as much as 3 acres of tobacco (as in x 600 (lbs. tobacco quota) yield/acre. 3. Tobacco acreage up to and including 71/72 season calculated from No. of growers tobacco quota) yield/acre. From 72/73 onwards it is assumed quota will rise to 661.38 (lbs) wn 300 kilos and acreage calculated from No. of growers x 661.38 (bs 30 lbs. (2nd year) 450 lbs (3rd year) 500 lbs. (tn year) 4. It is assumed that production in underdeeloeed area average 200 lbs. surolus/acre. Project activity will result it TABLE SHOWING INCREASE IN VALUE OF SURILUS TOBACCO PRODUCTI9N TABLE 10 Yr. I Yr. 2 Yr. 3 Yr. . 5 Yr. 6 Yr. 7 - 20 70/10 9048 9974 9974 9974 9974 9974 9974 Total Vroduction ('ooo lbs) 9048 Valu3 of Prodction (EM'000)1 Un -developed area 260 195 143 72 - - - Developed area 126 203 312 404 497 519 533 540 38 455 47, 497 519 533 540 TOTAL 386 12 69 90 111 133 147 154 Increment due to project NOTES. 1. Calculated from Annex 11 Table 9 Assumi ng a) 9efore development average price/lb cured tobacco ld. b) 1 year after start of development project activity resuts inan increase to averge price of lid /lb. c) 2 years after 3tart of development project activity resonts ir an increase to avera-e prike of 12d/lb. d) 3 years after start of development project activity results in an increasa to average price of 1/1 /lb. 2. Cost of inputs fnr tobacco areshown in Annex 15 Table 3. MALAWI ANNE 12 LILONM LAND EELOWEN PMJECT AVESTUG DEVELOTEVI T:3lo 1: HA-,rd Composition and Produc'ion year 4 year 5 Year 6 Year 7 Year 8 Yewr 9 Year 10 Year 11 Yewr 12 Year 13 Year 14 Yar 15 Ycar 16 Pnd threafter Gcforo Development Year I Year 2 Yawr 3 18OCW 180a) 18U It16o I 80co 180c 18k, 115 '2f 13V,8 -40 41 -51 --- 59 16895 17728 1 EN Wenes6180 M86 7741 7w4 8335 8957 9630 10282 ICM2 10800 10800 0804630 463) 6 4 4683 :1 30 4630 Slanes 1- r 150 1781 2m8 361 %G9 3418 3754 4074 4384 4545 4630 463C,6043 63 6043 3910 2781 3k99 31l 3396 391C, 4254 4574 4884 5045 5130 5130 5130 5130 5130 513 0 51430 Heiers 1-2 yr. 920 1335 1603 1922 2847 30 4 3247 3566 3870 4165 4318 4398 409 4393 43N6 43910 4693 Steers 2- yr. 320 3519 2503 2842 3312 3474 3722 4041 4345 4W4 4793 4873 4873 4C73 4873 4873 4873 Steers 2-3 yr. Oxers 23- yr. 4VC 41 60,11 73 9 1338 1427 1543 169 1633 99 25 5 092928 3 380 360 373 552 6 6 40 1271 13% '1466 1609 1746 1880 194 1985 1985 1985 19C5 Oxon 4-4 yrs. Oxn45ys 5 P 343 51-4 64 798 1207 1288 1393 1529 1659 1706 !!1 Ir13. a3 18ffi Oxen 5-7 yrs. 343 325 292 293 319 482 612 758 1147 1224 1323 1453 157C 1697 175 7219 343 3w 278 269 272 3W0 45S W8 720 1090 1163 1257 1380 1497 1612 1670 1702 Oxen 7-8 yrs. 997 847 747 Uo E46 kol 9CLI 900 90D 90 9& 0 0 Bull7 s . 32 1173 To-as goa 37 32"571 34M 37T% W91 43169 45913 5M59 533118 55249 56311 f73l 575" 0 570 586 13 15 25Y07 2&747 20,147 31636 R4212 36283 -404 42698 4449 45511 46231 46710 4m05 4726 j 47353 473856 Total '"Lld 27 L.U. 2 2357 4W4 7422 9493 13524 159T, 17659 18721 1941 190 226 2W41 20563 2M59 Inrta 1168 103 9w9 8x84 9011 90c, 91"C 900 900 gull9 90 991) 52aa'34 540 wO50 540 540 540 66 619 556 500 448 482 514 531 W es6 kars^1 176 167 214 192 171 188 204 219 227 232 232 232 232 232 232 232 247 249 22 19 2T3 2ZA 24 252 257 257 257 257 257 257 257 1-tffrs 1-2 yr. 3127 134 12A 135 171 150 162 178 194 238 216 220 220 220 22U 22D 220 Sefers M- yr. 392 20 19 199 174 186 262 217 - 232 240 24 24 244 24 244 24 Stdfirs 2-3 yrs. 392 342 Hfrs-3ys3232 209954 67 71 77 85 92 99 103 104 1 C4 104 10 C4 I4 99 79 Oxeri 3-4 yrs. 40 41 48 5 808 0 33 36 30 39 42 4 8 73 s876 94 9 93 99 Oxen 4 - 5 yrs. Oxen 5-6 yrs.- 36 35 25 A244 0 C 0767 96 09G 63 695 jxw. 'u -. 7 Yrs. 34 33 23 21 19 24 31 3 5 04 45 45 45 45 45 45 45 45 4 sxn7-8 yrs. 33 Sales85 2127 2160 2160 2160 2160 2160 2160 2160 2160 2160 Cull Cows 6 673 1022 1176 1364 1599 188 108- 108 IO 1 108 108 10 108 Cull MIS 69 59 70 68 67 60 93 106 10 5X50 Y3n ,e)34 50 yfr t~yr- 1 554 193 134 100 11%9 1569 1569 1569 1569 .1 414 600 711 729 1173 1251 1379 1541 1685 102 1898 1936 136 1935 1936 1936 3 yr. Hefers 23 276 256 250 256 285 435 552 684 1035 1105 1194 1311 1422 1531 1586 1617 8 yr Oens Amix 12 Table 1 (Cont'd). h l ofreYear Year 2 Year 3 Year 4 Yer 5 Year 6 Year 7 Year 8 Year 9 Year 10 Yer 11 Year 12 Year 13 Y6ar 14 Year 15 Year 16 and thereafter Technical Coefficients------ Weanere 51 a1 53 54 55 56 57 58 60 60 60 60 60 60 60 60 Mortality(alloveriyr.) 10 10 8 7 6 5 5 5 5 5 5 5 5 5 5 5 5 fVIi ng Cows 5 5 7 8 9 10 11 12 12 12 12 12 12 12 12 12 12 Culling ulls 5 5 7 8 9 10 11 12 12 12 12 12 12 12 12 12 12 Offtake 13 10 9 7 7 8 9 10 10 12 13 13 13 13 13 13 14 MALAW1 LIGLO GE LAO DEVELOPMENT PRWECT LIVEST' DEVELOfRIEJ TABLE 2: SU!ARY OF AVAILABILITY OXEN AM SALES TO LCCAL RJYEM AI#FEED LOIS tNEX 12 SALES TO LMocA MERS I SALES TO FER3 LOTS Cull cows Cull Bulls Young Stock 8 yr. Old Oxen Total Local Steers Ex Pject HeIfers Ex Prject Total Total Oxen Aviilable E 'ach Erk Ex Project x Ranch Ex Proiect Ex Project x Project Sales Ex Ranch Ex Ranch Before Development 1810 SIX) - 69 34581/ 293 4420 - - - - Year 1760 - 573 6 59 250J 27 3516 921 414 - - 1335 Year 2 1080 293 1f22 15 70 1000 256 2656 921 600 - - 1521 Year 3 2195 598 1178 15 6W 50 250 2609 1323 711 - - 2034 Year 4 284 654 1364 15 67 Sw 256 2856 800 729 - 1529 Year 5 3604 554 1599 15 80 500 285 3133 1181 1173 - - 2354 Year 6 4566 654 185 15 93 500 435 3555 1393 1251 396 - 3040 Year 7 5445 654 2127 15 106 500 552 3954 1492 1379 6a - 3479 Year 8 6315 654 2160 15 10 500 684 4121 1492 1541 707 554 4294 Year 9 7154 654 216i 15 108 500 1035 4472 1492 1685 707 1068 4952 Year 10 7740 654 2160 15 108 500 1105 4542 1492 1826 707 1348 5373 Year I 8300 554 2160 15 108 500 1194 4631 t 1492 1898 707 1493 5690 Year 12 8779 654 2160 15 108 500 1311 4748 1492 1936 707 1569 5704 Yaar 13 9119 654 2160 15 10 500 1422 4859 1492 1936 707 1569 5704 Yar 14 9330 654 2150 15 108 5C0 1531 4968 1492 1936 707 1569 5704 Year 15 9422 654 2150 15 108 500 1586 5023 1492 1936 707 1569 5704 Y.ar 16 9454 654 2160 15 108 5C0 1617 5& 4 1492 1936 767 1569 704 Year 17 9454 654 2160 15 106 500 1617 554 1492 1936 707 1569 5704 1/ 3145 young stock 313 3 year old steers. ILIGLO E LAJ DEVELONENT PIRJECT ANNEX 12 LIVESTOU( DEVEL0PMENT TABLE 3: FEE LOT FATTENING UDGET Half Bred Frisian X Zebu Ex Ruich f Wall Selected Local Zebu Ptrchase price of feecdr irachase price of feceder 22 {(5 lbs. @ S4. 80/- per 100 lb. LW.) 30 (550 lbs. @ Shs. 80/- per 100 lb. L.W.) Salc vahe of fat animal Sale vaiue of fat arninal (Grade Prime A @ nia.542 (75% choice, 25% Prime Aaverage 34.5 @ E5.19 per 100 lb. L.W. - 995 lbs) 51.6 per I0d lb. LW. 760 lb.) 12.5 Cross Margin 21.6 Cross Margin 4.0 Cost of Feed 1/ 6.0 Cost of Feeding l/ 8.5 Net Margin/fat Steer t ofF te Net Margin/fat Steer 1/ 140 days fed @10 lbs. 1/40 daysfed@7 lb. C entrates per day@ Id ld @ day per Cecentrtes per lb. Liveweight increase per lb. Liver dWincrease of 1.5 lbs. per day or 210 lbs. of 1.75 lb. per day or 245 lbs. Racornded concentrvte station. Maize meal 60 lbs. @ l.25 per lb. Shs. 7.50' Mada 180 lbs. @id. per lb. Shs. 3.750 Pidgeon pea 50 lbs. @ 3d. per lb. Shs.12.660 Salt 3 lbs. @ 2d. per lb. Shs. 0.50 293 lbs. Shs.24.410 Cost per lb - ld Plus adlib roughage and crop residues. !tAIAWI LINGWE UL A EELOP4ENT PRJECT UVESTCX E'EtDiENT ANNEX 12 Ti/LE 4 : TOTAL CWST OF FEED LOT FATTEING IN Year 1 2 3 4 5 a 7 8 9 11 12-20 Fattening Costs for Selected Zobu @ per head (Nos. in brackets). (1335) 5340 (1521) 6M (2C34) 8136 (729) 2916 (H73) 4692 (1251) 5A04 (1379) 5516 (2095) 838G (2753) 11012 (3174) 1269 (3391) 13564 (3503) 14012 Fattening Cost for Ex Ranch halfbred) (Nos. in brackets). - - - (8W) 4800 (1181) 7086 (1789)10734 (2100)12600 (2199)13194 (2199) 13194 (2199) 13194 (2199) 13194 (2199) 13194 T0TrL FEED COST 5340 6084 8136 7716 11778 15738 18116 21574 24206 25890 26758 27206 . .ra a ........... a sm . ... . .. f...... .f............. ....... .... MALAWI LILGA LE DEVELf1FDET PECT ANE 12 TABE 5 TOTAL BEFfITS MIE TO PFUECT LIVESTWO( DEVELOtNT . (Nos. in brackets) LI'VESTaO OEVELMfIENT 4 5 6 7 8 9 10 11 12 - 2) Year 1 2 3 41642 37836 49266 69090 79268 2634 85904 85904 850 Sales Ex lkalanyaa Ranch 20262 26338 Sales x Fattening Sches:- (a) Marginal incxrease in Cattle Ex 44670 44670 44670 44670 44670 n/ 11513 11513 16538 17280 25510 3W 42928 Ranch 94979 l05w 116990 120854 20700 24530 25151 40469 43160 47576 72278 (b) Sales her than ranch Cattle 2/ 14283 u (1022) 2044 (1178) 23560 (1364) 27280 (1599) 31980 (1858) 37160 rea rd:- (673)13460 a EectOthe) (2127) 42540 (2160) 432MX (2160) 43200 43200 43200 43200 (93) 2325 (105) 2550 (10) 27C0 2700 2700 2700 2700 (b) Cu Iu s 4/ (59) 1475 (70) 1750 (68) 1790 (67) 1675 (80) 2000 (2W, (435) 10875 (552) 138M (684)17100 (1035) 25875 (1105) 2 (1194) 29856 (1548) 38700 (d) Y S non fattened) 5/ (2 6 0090 (256) (5) 40 400 123428 148920 183845 222584 26216 2983 8 317242 327314 340(28 TOTAL S 67 ~8965 102916 289123 72523 98015 132940 171679 212311 247153 266337 276409 Incrwentai benef it due to Prject 7/ 16776 38160 52011 1/ MargIn on steers years 1-3 @ 12.5 per head Margin on steers year 4 onwards @ 121.6 per head Margin on heifers year 6 onwards @ E17.6 per head 2/ Valued @ 34.5 per head / 20 each 4/ f25 each / @ each / 5 each year 12.20 avrage of 1548 annually Olds @15) + (293 Cull oxen @ 2) - 1590 7/ Existing production (600 Cull Cows @ 120) + (69 bulls @25) (3145 young stock @IB) . (313 3 yr. VAWATICN OF HFOS. Dzalanysa Ranch - Bafore avelopwent - 1800 - yew 329o0-X - Increase In Valuation - E21,0X% olds @ E10) . (4540 2 to 3 yr. Olds @ E15) (1810 Oxen @ 125) Project area hard - Oafe Developnent (1200 cows @ 18) + (6180 anrs @ I) + (7060 1-2yr. + (1380 Bulls @ 0) - 471531J l0) (9271 -3yr olds @ E15) + (9454 5xe @f25) + (90 ulIs @f25) -1384315 In year 2) (1800 cows @ E18) + (10800 waners @ ) (9760 1-2 yr Olds @ Increase in valuation due to project - U2M Total increase in valuation dua to Poject - E32101) - +412785 - 733. MALAWI LLINGWE LAND DEVELORENT FRMECT DEV( OVABNEX 12 LIUVES TABLE 6: WEiGT OF KAT P[DJACE(YA iLs. 1MG) fore Cvelopment Year I Year 2 Yew 3 'afe 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Years 12 -20 E DZhLANYWA 1/ 88 179 196 196 196 196 196 245 245 245 245 cu 2/ - - 4 10 13 13 13 13 13 13 13 13 CUll Bui,3/ EX PUJECT AREA 180 2U 307 353 409 480 55? 638 648 648 54-3 648 648 Cul Cows 4/ 22 26 2t 25 3c 35 40 41 41 41 41 41 QU1 1 auns~5/ 26 47 312 T25 53 63 63 63 63 63 j3 63 53 1'unr Stock~! 581 110 104 96 94 96 107 163 207 257 J88 414 448 MuI Ox>x 7/ 507 578 773 277 446 475 524 70C 1046 1206 1289 1331 Fatted Zebu Steers 2/ - 422 522 943 1107 1 '55 115Q 1158 1159 M9 Fatted %If Fed 9/ " TOTAL 803 1147 1224 1498 1501 1957 / 45 2788 3173 3603 3789 39C6 4081 402 574 612 749 751 97 1222 1394 1587 18G2 1895 193 2040 Total in Short Tons''- 1638 172 210 347 349 577 820 992 1185 1400 1493 1551 Ircrmantal Production Short Tons - -4 t- !: n1yama shown under feed lot production. 2/ Year 1 -8 3WX lbs. C.D.W. from ar 9 375 lbs. cow. / 00 1bs. CD 4/ 300 lbs.W 5/ 375 1bs. CDW 5/ 125 lbs. CW (Includs 313 3 year old stoers @30 lbs.) 7/ 375 1s.UY 3Ols.QW 8/ / 527 1bs. -DW. MALAWI AMNEX 13 LILONGWE LAND DEVELOPMENT PROJECT LIVESTOCK DEVELOPMENT DZALANYAMA RANCH 1. INTRODUCTION The development of the Dzalanyama Ranch is an integral part of the Phase II livestock development programme and will secure the supply of nearly half the feeder requirements of the Lilongwe Land Development Project. The following paragraphs and allied tables contain details of the proposed ranch developments and an economic analysis is contained in Table 4. The Ranch is viable *ith an Internal Rate of Return of 11% and a Not Present Value of a1 88,938 discounted at 8% 2. PROJECT DESCRIPTION 2.1 The development of the land would form part of the second phase of the Lilongwe Land Development Project, but is presented as a separate Annex since (a) finance is required for the 1970/71 season and (b) although coming under overall Project management, it can be treated as an entirely self-contained unit. 2.2 The objective of the ranch is to ensure a supply of half-bred stock thus enabling an integrated livestock development programme to be included in the Phase II activities of the Project. Initially the ranch will concentrate on the supply of feeders for fattening by individual farmers within the Project but could also supply half-bred heifers for milk production at a later stage if so required. 2.3 For the investment programme as proposed, provision would be made for financing on-ranch roads and firebreaks, fencing, water supply, on- ranch animal health control facilities, farm machinery, ranch buildings, purchase of broed g stock and the procurement of weaner yearlings for rearing to feeder stage. 3. DETAILED RANCH FEATURES 3.1 The proposed ranch will be located in part of the Dzalanyama Forest Reserve which is situated to the West and South West of Lilongwe, some 30 miles from the New Capital City site and almost contiguous to the Land Development Project. Its western boundaries follow the Malawi- Mozambique border on the South and the foot of the Dzalanyama range in the North. The Dzalanyama Forest is Government land and at present managed by the Department of Forests and Game, primarily as a catchment protection area. 3.2 The ranch is 161,000 acres in extent and is presently a natural Brachystegia-Julbernadia forest reserve. It is the major catchment area for the Lilongwe River and in as much receives up to 60" of rain per annum during the wet season from November to late March. It is extremely well watered with porennial streams and has a gently rolling topography which is, in parts, lightly treed. Certain areas are more heavily afforested and may require thinning through ring barking. The area falls naturally into two parts :- (a) The South East covering 88,000 acres of which 22,000 acres are dambos and 66,000 acres are lightly forested ridges. The area is generally wet and best suited for dry season grazing. (b) The North West covering 73,000 acres with 11,000 acres of dambos and 62,000 acres of more heavily forested well defined redges suitable for wet weather summer grazing. E.70/35/16. - 2 - 3.3 Stocking in the South East Sector is estimated at 15 acres per livestock unit. In view of the importance of the North Western Sector of the ranch as a catchment area for the Lilongwe River it is considered necessary to seek expert advice before a final decision on stocking here is reached. Until this advice is forthcoming it is assumed that a stocking rate as for the South Eastern Sector can be supported. In total this will give a carrying capacity of some 10,000 livestock units without any pasture improvement except for the management of the existing veld through fire and grazing control. 3.4 It is proposed that initial development will start in the 1970/71 season with the construction of access roads, manager's house, a dip and the procurement of weaner/yearlings. Thus a supply of feeders will be available for fattening in the first year of the second phase of the Land Development Project. 3.5 The first phase of the development will commence in the South Eastern Sector of the ranch which will be divided into a series of firebroken grazing areas of 5,000 - 8,000 acres in extent, Each area will have 3 night paddocks. Apart from those large firobroken areas provision has been made for the construction of a series of fenced breeding paddocks. 3.6 The Second Phase of development covering the North Western Sector will commence as soon as advice on the preservation of the Lilongwe catch- ment area is received and will need, in part, to run concurrently with the develop ent work in the South Eastern Sector. Overall development has been phased over a 5 year period, details of which are provided in Table 2. 4. ESTIMATED COSTS 4.1 Estimated costs of the ranch are summarised below and details in Tables 2 and 3. M' 000 Foreign RANCH INVESTMENT 70/71 71/72 72/73 73/74 74/75 Total Exchange Component 1) Physical Inputs Fencing, roads, firebreaks 13.2 19.9 11.5 8.4 - 53.0 36 Water Supplies 2.6 5.7 - 4.0 4.0 16.3 5 Housing, Buildings dips 6.8 7.6 5.4 3.2 3.2 26.2 5 Machinery & Equipment 5.4 13.1 1.8 0.2 - 20.5 18 Sub-total 28.0 46.3 18.7 15.8 7.2 116.0 64 2) Livestock Native Cows/Heifers 39.6 38.2 33.2 20.5 131.1 33 Imported Bulls Horse 3) Working Capital Operating costs and ) 18.9 29.0 34.0 26.3 28.9 137.1 - immature steer purchase GRAND TOTAL 46.9 114.5 90.9 75.3 56.6 384.2 97 LESS 4) Total Sales - 20.3 26.4 41.6 37.8 126.1 Balance 46.9 94.2 64.5 33.7 18.8 258.1 E.70/35/16 -3- 4.2 Broken down by major investment categorics, 34% of costs are for livestock (excluding immature steer purchases) 30% is for physical inputs and the remaining 36% is for working capital. Annual operating balance (working capital less value of sales reaches a positive balance by year 73/74. 4.3 Cost. Estimates are based on prevailing Malawian prices and have an inbuilt 10% contingency factor. The foreign Exchange Component is EM 97,000 or 25% of the 5 year development costs. A total of JM 46,985 is requirod for the 1970/71 development work, and a total of aT 211,191 has been written in to the Estimate for Phase II of the Land Development Project to uover cash flow [defaults during those years. 5. PROCUTEENT 5.1 Procurement would follow the same lines as the procurement procedures for the Land Development Project. 5.2 All purchases of livestock would be subject to the Project Managert*s approval. There is an adequate supply of immatures within the Land Development area and brooding odws will be purchased from the Northern Region. Imported bulls would be purchased from South Africa. 6. ORGANIZATION AND 1ANAGEMENT 6.1 The ranch will be managed by a competent and qualified ranch manager experienced in Central African ranching conditions. He will be assisted by an assistant manager. 6.2 The ranch manager will be directly responsible to the Project Manager of the Lilongwe Land Development Project for all aspects of management and development. He will be responsible to the Director of the Veterinary Department for all matters concerned with animal health. 6.3 The management of the ranch will be guided by the herd to maintain the protection of the catchment. 7. MARKET PROSPECTS AND RANCH INCOME 7.1 At full development the ranch will produce 1,492 half bred feeder steers annually for fattening by local staff feeders, and it will produce a surplus of 707 half bred heifers which will either be fattened or used for milk production if the demand for milk is high and the production of milk is an economic proposition. Furthermore, there will be a sale to local butchers of 654 cull cows and 15 cull bulls annually. 7.2 Feeders after being fattened by the stall feeders will slaughtered at Lilongwe abattoir and thereafter will be sold to internal urban consumption areas or be exported into neighbouring Zambia. This total production inclusive of the production due to lttening is equivalent to an increase of 709 short tons of dressed meat per annum. 8. PRODUCTION AND INCOME OF RANCH The expected results are summarised below After full Dzalanyama Ranch Before Development After 5 years Development Total herd (head) - 11,748 14,052 Cattle Sales (head) - 1,469 2,868 Net operating income 04 - 8,941 46,395 (year 11) Herd Valuation M - 243,000 329,000 E.70/35/16 - 4- 9. BENEFITS AND JUSTIFICATION 9.1 The principal direct benefits resulting from the ranch would be an increased production of feeder steers and heifers for the contiguous fattening scheme. 9.2 The financial rate of return on the investment is 11%. In comparison to ranching elsewhere in Central Africa this rate of return can be considered as good. 9.3 The production of feeders at an economic cost would substantially bendfit those farmers involved in fattening and would made a large impact on their income. The fattened animals would in turn be sold to a market demanding higher grades of meat. Any exports would boost Malawi's foreign exchange earning capacity. 9.4 The ranch might be a source of supply of heifers for milk production. ANNEX 13 MALAWI TABLE I LILONGWE LAND DEVELOPME T PROJECT LIVESTOCK DEVELOPMEN' DZALANYAMA RANCH Herd Composition and Projection 72/73 73/74 74/75 75/76 76/77 77/78 78/79 R.L.U. 1970/71 71/72 4360 4360 4360 4360 1500 2925 3986 4360 Cows 1.0 3270 3270 3270 3270 900 1755 2591 3052 weaner Calves 1586 15 1.0 1000 1000 1436 851 1256 1480 1586 1586 steers 1-2 years 1256 148o 1586 158 436 851 1436 153 153 12years 1.0 950 1364 825 1218 Heifers Steer 2-3 years 05 950 1436 1538 1538 414 825 1218 Heifers 2-3 years 1.0 174 174 174 174 60 117 159 174 Bulls 2/ 1.0 13200 13848 14052 14052 4410 7619 10216 11748 Total Head 1000 9321 9860 10013 10013 3035 5389 6943 8284 Total R.L.U. 1000 Purchases 1000 1000 1000 Native Immatures (1 year) 1500 729 28 1500 1500 Co ws 30 37 28 28 28 28 60 54 Bulls Deaths 131 131 131 131 75 146 159 174 cows 78 92 98 98 98 98 27 53 weaners 26 38 44 48 48 48 Steers 1-2 years 50 50 72 46 44 29 29 41 25 37 43 steers 2-3 years 44 48 48 48 22 26 38 46 46 Heifers 1-2 years 12 25 37 43 Heifers 2-3 years 7 5 5 5 5 3 6 6 Bully Table 1 Cont'd. R.L.U. 1970/71 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 - 25 Yearling Mortality 5 3 3 3 3 3 2-3 Year old Mortality 3 3 3 3 3 3 3 3 Weaner Mortality 3 3 3 3 3 3 3 3 i/ Blls @ 4 % of cow herd 2/ Sales Year 1-3, Zebu, Years 4 onwards half-breds All half-bred heifers DZALANYAMA RANCH Table 2 : On Ranch Investments during Project Phases II Development Period Unit Unit 1970/71 71/72 72/73 73/74 74/75 Phase II Cost Total (a) Fencing, Road and Firebreaks Fencing Boundary 1/ mile 145 (45) 6525 (34) 4930 (30) 4350 15,805 Internal Fencing " 135 (28) 3780 (12) 1620 (11) 1485 6,885 Roads (16 ft. between drains) " 90 (41) 3690 Firebreaks (30 ft.) " 45 (150) 2250 (53) 2385 4,635 Firebreaks for existing roads (20 ft.) " 30 (17) 510 510 Bridges (Large) Nos. 3600 (1) 3600 (1) 3600 3,600 Bridges (Small) " 150 (3) 450 Dambo Crossings " 420 (11) 4620 - Night Paddocks 21 80 (10) 800 (16) 1280 (20) 1600 (20) 1600 4,480 Ring Barking and Clearing Acre 30 2000 1000 1000 4,000 Sub-total .13160 19945 11535 8435 39,915 (b) Water Supplies Dame Nos. 1000 (4) 4000 (4) 4000 8,000 Storage Tanks (50,000 gals) " 700 (1) 700 (1) 700 700 piping 1" Mile 1000 (1.5) 1500 (1.5) 1500 1,500 piping W" " 600 ( .5) 300 (3.5) 2100 2,100 Pump House Nos. 100 (1) 100 100 Take-off Weir 150 (1) 150 Water Troughs " 140 (9) 1260 1,260 Sub-total 2650 5660 4000 4000 13,660 Table 2 Cont. Unit Unit Phase II Cost 1970/71 1971/72 1972/73 1973/74 1974/75 Total (c) Housing, Buildings,Dips and Handling Yards Manager's House Nos. 6500 (1) 6500 Asst. Manager's House " 2000 (1) 2000 2,000 Headman's House 3/ 150 (1) 150 (2) 300 (4) 600 (1) 150 (2) 300 1,350 Clerk's House " 100 (1) 100 (1) 100 100 Tractor/Lorry Drivers'Houses " 100 (2) 100 (2) 200 200 Mechanic's House 100 (1 100 100 Herdman's House 4/ " 25 (20) 500 (40 1000 (48) 1200 (32) 800 (60) 1500 4,500 Ablutions " 30 (6) 180 (11 330 (12) 360 (7) 210 (13) 390 1,290 Watchtowesr 40 (15i) 600 600 Office (100 sq. ft.) " 200 (1) 200 200 Store (600 sq. zt.) " 900 1) 900 .900 Implement Shed (100 sq. ft.) " 250 700 1 250 1 250 Dips 700 (1) 7 2 1400 (2) 1400 2) 1400 4,200 Sprayrace 600 (1) 600 1) 600 1,200 Handling Yards 1000 (1 1000 (1) 1000 2,000 Stables 20 (10) 200 (10) 200 400 Sub-Total 6830 7580 5360 3160 3190 19,290 (d) Machinery & E2uipnzent Tractors Nos. 1300 (1) 1300 (2 2600 2,600 Lorry (7 tons) " 3000 (23 6000 6,000 Grader " 600 (1) 600 600 Trailer " 400 (1) 400 (1) 400 400 Gyro mower " 300 (1) 300 (1) 300 300 Plough 3 furrow 250 (1) 250 (1) 250 500 Disc Harrow " 300 (1) 300 (1) 300 600 Scales 600 () 600 (1) 600 1,200 Table 2 Cont'd. 1/ Cost of material @ E 135/mile + some clearing @ X 10 per mile - Year 1 boundary fencing includes all boundaries except for Dalanyama range, border road and major perennial rivers (i.e. Katete, Lilongwe and ]Diampwe) Year 2 Malawi, Mozambique border, Year 3 give and take fencing on perennial rivers. 2/ 14 Acres paddocks 1000 yards of fence @ Z 145 per mile = E 80 - 3 per grazing unit. 1 Headman per 1000 L.U. _4/ 2 Houses per herdsman -1 herdsman per 100 L.U. Year 4 total includes interest for year 5 and 6 (see Table 4) 6 Working Capital to cover deficit in operating cost and purchase of immature steers. RAO' WYGE &Ex-E'DIURE TABLE ? 72/73 73/74 74/75 75/76 76/77 77/78 78/79 79/80 80/81 81/82 onwards YVAR 1970/71 71/72 SALES 1/ (293) 5860 (596) 11goo (554) 1oac (654) 13000 13080 130 13080 15350 rull *ows () 216 (16) 576 (21) 756 (21) 756 756 756 756 756 756 756 Cull uls 6921) 1262 (921 20262 (1323) 29106 (800) 24000 (1181) 35430 (1393) 41790 (1492) 44760, 44760 44760 44760 44760 Steers 2-3 years (396) 13144 (0) 20672 (77) 24038 24038 24038 24038 qeif s 2-3 ya 25338 41582 37836 49266 69090 79268 82634 85904 85904 8Ii+ rMTAL SALES 20252 ueERAMIN C0TS Salaries & Wages 2800 2800 2800 2800 2800 2800 2800 2800 2800 2800 M rager 2800 1350 1350 1350 1350 1350 1350 1350 1350 1350 1350 1350 4sst. Manager - 240 (2) 480 480 480 480 480 480 480 480 480 480 480 Clerk (1) 480 480 480 480 480 480 480 48u 480 Drivers (2) 240 +) 481 480 - (1) 240 240 240 249 240 240 249 240 2 240 Mechanic (3) 270 (7) 630 (8) 720 (10) 900 900 9c3 900 900 900 900 900 HEADEN 2/ (1) 90 (10) 430 (30) i29 (54) 2322 (70) 3010 (82) 3526 (93) 3999 (i3 4257 (100) 4300 4300 4300 4300 4300 4erdsmen 3/ 129 (4 172 5) 215 (6) 258 25 258 258 258 258 258 258 23 Night Vatchmen 3/ (3) 3+4 34 (23 85 ( 1/2 (fe) 258 (8) 344 344 344 344 344 344 344 aintenance Gangs (29) 1090 100 1000 1001000 11000 o00 100 1090 1000 1000 1000 Fire Rangers 4/ 501b ~52 9~~~ 9 10682 11378 11351 12109 1252 12152 12152 12152 12152 Sub-Total uTHER COSTS (1) 925 (2) 1225 1225 1225 1225 1225 122 1225 1225 1225 1225 1225 Vehicle Running & Repairs 5/ - 182 182 182 182 182 182 182 182 182 182 182 ater Running & Repairs 6/ Tractor Running & Repairs 7! (1) 600 (3) 1f00 1800 1800 1800 1800 1800 1800 1800 1800 1800 1800 2000 2000 2000 2000 2000 2000 2IYL 2000 2000 2000 2000 Lorry Ronning & Repairs 8/ - 206 373 453 453 453 453 453 453 453 453 Pencing Maintenance 9/ - - 27' 383 446 510 510 510 510 10 510 510 Ruilding Maintenance 10/ 1i7 2777 j314 3728 3944 4005 4005 4005 4005 4005 Dipping~11/ 400 1214 2156 1062 1685 2430 2899 3262 3451 3505 5 3505 3505 3005 let. & Minerals 12/ 350 2991 353 4598 5173 5472 5557 55 5557 557 Su~ppantary Fecling 13/ 555 1T84 100 400 500 600 600 600 6W, 600 600 600 600 500 Sundries 2930 9704 13222 15623 17517 18933 19637 19837 19837 17437 19837 19A37 Sub-Total L IVESOCK PURCMSES 1 11000 11000 Iettre nitive sters (lecal)14 11030 - Cows (28) 504 (28) 5600 5600 5600 5600 5600 36W 5600 Bulls (2) 80 (3) 120 120 120 120 _ _ 120 Horses Sub-Total 11000 1100 11O00 - - 6184 5720 5720 5720 5720 5720 5720 OZALANYAMA RANCH ANNEX 13 RANCH INCOME &EXPEDITURE (cont.) TABLE 3 36968 37466 37709 37709 37709 37709 37709 18945 289%8 33997 26305 28895 TOTAL OQERATING COIST 6900 4200 950 3150 560 1800 6000 Replacement Costs 15/ 41666 38659 4l859 43309 39509 43709 18945 28958 33997 26305 28895 30.3 31pratinq &Replacement Costs 27424 40609 41775 42595 46395 42195 TOT4L ANNUAL OvERATING3 BALANCE -18945 -d6F -1659 15277 8941 5398 1/ rice ssumtibrs Cuol Cows - E20 for first 9 years. E25 thereafter Cull Bulls 36 (1200 lbs. L.W. 60/- per 1OO Tbs.) Steers 22 years 1-3 year 4 onwards E30 (550 lhs. rising to 156 lbs. L.W. 48%/0) Heifers 34 (850 lbs. L.W. @80/- per 106 lbs.) Z/ MC per annum each 3/ 43 par annup each / 50 per annum eac 5/ School trinsport E625/annum . plus Land Rover rinniq. 6/ 10 sbs ,er day or 182 per annum 7/ Tractor running 3nd repairs 4 10/- per hour 1200 hrs,annu each 9/ 24,000 miles/annum 4 1/8 per mile 9/ Materials only 2% of construction cost T0/ Materi.0s only 2% of construction cost 11/ 8 shs per L.U. per innum (using toxaphene dip) T2/ 7 she per L.U. per annum 13/ 11/6d per 1.U. for 3 months. 1/ 11 per head 15/ 82/83 onwards E3000 per annum ALA AW , -LAI TABLE 4 LIL2'6WE LAND 9EVPLDemET FR JECT UV'IT'K DEVELOrME T OZALAJNYAMA RANCH COT/8ENEF! T NALYSIS 7 1 .2 13 11 15 1 3 S 80/81 31!32 SI / 9I/6 56/87 7b, L .,4 S K ?7/1 71!72 ?/71 ?3/74 741/7 75/76 76/77 77/78 78/7q 7/S d2/33 I) i t 1 ce a t 6 3 5il 0a OW 35 i l8 j 377 3Ti03 37709 37 ?19 377'0k; i7l. 37769 17u 37> j/ 7.- i 0 U, i n." Cost2 13 8 ~5 3~? 26365 N985 3 f, b 374 i6 37 79 i7709 4330P 39509 43709 -0719 400Y9 "0709 4070 40i09 4K79 407>9 f 4079 8 413 97917 75275 607 43868 41666 389 40859 (2) SEFTS 69090 79268 82634 85904 b0904 15964 S5904 85904 85904 5904 35304 3691> 85994 8590* ) vsEEFTs u 2638 41582 37836 49266 Residual Valuation&7S 79268 82534 85904 85904 85904 85904 85904 8590* 8590, 85904 89u ;9J4 ,;09u TOTAL 2 202 6~2 338 41582 37836 4~~9206^ 69090 .42595 .46395 .42195 .45195 .45195 .45195 .45195 .45195 .45105 .Th1i5 .420195 -46985 -94156 -64570 -j3693 -18771 +5398 +27424 .40609 .41775 (3) NET CASH FLOWS 16587 15366 14236 13197 12203 11299 1G48k 79922 -5%111 -24764 -12764 3401 15988 21929 20868 1721 19857 16751 (4) DISCOUA10 CASH FL'Z S81 -434 1 -80692 Net Present Value @8% Discount Rate - EM 88,938 Internal Rate of Return - 11% TABLE 5 DZALANYMA RNCH ECONOIC CASH FLOW EM4OO Year 7 Year 8 Year 9 Year 10 Year 11 Year 12-18 Year 1 Year 2 Year 3 Year 4 Yar 5 Year 6 1970/71 26 81 56 48 28 On Ranch apital Investmani Replaceaent uf Capital 37 37 37 37 37 25 28 36 36 37 Operating Cost 15 25 30 36 4 43 39 43 40 106 8 73 56 43 40 TOTAL 4NUAL COST 41 42 38 49 69 79 83 Ravenue - 20 26 39 43 43 47 43 46 (86) (0) (31) (18) 6 19 SURPLUS OR (OEFICI) (41) Year 19 Surplus of 6,Mi0 E329.000 for vilhwtian 3f livestuc. or 075,0M total. Economic rate of return 11% over 20 years including 1970/71. MALAWI LILONGWE LAND DEVELOPMENT PROJECT LIVESTOCK DEVELOPMENT u DZALANYAMA RANCH Proposed roads House and Building H 4640 Exist ing roads Dips Proposed fencing -u-- Sprayrace SR Firebreak only ---- Headquarters Site I HQI -92 PipeinE J.L Headquarters Site 2 HQ2 H44 International boundary Site of paddock in acres 20 1200 Scarpment "T~TT Dambo grazing 00 Area to remain as forest 7320 360 Boundary between Dzalanyama West and reserve Much of forest Dzalanyama East boundary firebroken only Where fence d- IjI 7960 0 1 2 3 4 5 6 7 It ABMILESM\Q- we 7000 70 0 0 31 60 < - ~304C 20 4881 2000 7000 19 V ... 2200 - 7440-- 2960 M0 Z A M B 1 Q U E ANNEX 14 TABLE I SUMWARY OF INICEMENTAL BENEFITS (QUANTITY) Y.1 Y.2 Y.3 Y.4 Y.5 Y.6 Y.7 Y.8 Y.9 Y.10 Y.1l Y.12 - 30 a) WRtS (Short tons) MaIze 20000 42000 67000 93000 112000 126000 133000 133000 133000 133000 133000 133000 Groundouts (Shelled) 985 6341 14333 18485 19773 21033 22033 22633 3033 23233 23233 23233 Tobacco - 413 413 413 413 413 413 413 413 413 413 413 b) LIVESTOCK (Short tons) 172 210 347 349 477 820 992 1185 1400 1493 1551 1638 Meat C.D.W. TABLE 2 SUW1ARY OF INCREMENTAL BENEFiTS BAWD ON FARMATE PR[CES a) CROPS (W 00) Maize 1) 176 3-0 590 818 986 1109 1170 1170 1170 1170 1170 1170 Growdmuts 2) 43 271 627 809 865 920 964 990 low 1016 1016 1016 Toacco 3) 12 69 90 111 133 147 154 154 154 154 154 154 b) LIVESTOCK (00O) Meat 4) 17 38 52 73 98 133 172 212 247 266 276 289 TOTAL BENEFIT TO PROJECT 248 754 1359 1811 2082 2309 240 2526 2579 2606 2616 2629 NOTES : -)A *4S88shert tos r I/h per M9g 2) E43.75 per short too or 5.25d per b helled nut 3) Frm Annex 11 tibl 10 4) From Armwx 12 TABLF 3 S( ?Y VkL H, 17 68/ 5K b /70 70/71 71/2 72/7 73/?4 745 ?5/?9 75/77 77/6 7P9 7Y/D 8o/"1 s1/;2 62/83 Jnwarb a) &~ur (Short os ai 15 15i Tobacco - - -4 - .. b, LIVESTVCV i *Srt n MC4t Ci..6 - -- 177 116- TVE h AL ' 57CI 3ASE) 4E C FW RTE HIC[S K~7' 12f K1 .. 2 1 6 9 6 115j 1285 1 56 13< 134 134K 153K34 S nnt 43 7 120 -154 7!4 S8 94 q3 44 Om6 18 3 3103 Tobaco - 3 9 21 717 156 1 113 15 13 3 b) L' !V T (E at- - . 7 52 7 1 712 T~T4L 43 1s~ 21 515 12Th 1621 2072 2 2671 2721 788 28+W 26/ 19 A4NEX 14 T APLE 5 EXAMLE FWRF 31.03ETS (NON POPCC= GROWERS) Synthetir MAize Hyorid Maize + Ayrd izer ti ,g Synthetic Maize fertilizer -3W kn o Response . expa.sio iIRE " I I Mai79 3 acres 0 33 b - 0-3 n. Seedu.33 Seed 0.33 12.54 - Frtilizer ,roul~oUts 2 acrrs K.O 8.0 8.00 3.00 Too aco 1.3 acrn 2.00 5.00 5.0 MiscelI nerus 1.00 10.31 25.67 Total Costs 9. 33 (") lnc Ae .2 81.0 M~i1e T*Mrz 6j -24.36 22.50 405 - j2.61;28 2 U roundnuts 46.56 63.bb 73.31 Total Income 36.1j t26.t,. 1.32d 0rodc73 .0 -5.a Vali of nci Me 24.1g 25.67371 11.36 20.?3 CAb Inceme ANNEX 14 & STALL FEEtERS) EXAMYLE FARM 8WGETS (TOBACCO GRUWERS SYNTHETIC MAIZE HYBRID MAIZE HYBRID MAIZE SYNTHETIC MAIZE HYBRID MAIZE HYPRID MAIZE HIGH FERTILIZER HIGH F ILIZER + FERTILIZER + LOW FERTILIZER ETICLEL RI IZE . FERTILIZER . LOW FERTILIZER + TBG+LIVESTOCK LIVESTOCS +LESTK LEVEL . T-93ACCO E ._ AC0_+. i +- - + TO3ACC0 Maize 3 -acres 27.63 21.36 33.60 27.63 - 21.36 33.6 Gross marin Gro ind ints 16.06 a.cr1 16.06 24.81 24.8 24.81 Gross Margi n1.0 Tobacco 1.3 acres 5 5.43 43 5.43 Cists fertilizor 40.63 40.63 - Re turns 40.61' 3V-0 35.20 prss - 35.20 Iross Marlin 120. 00 120.00 120.Or LivCstr k r Costs urchase 24.00 24.00 24.00 -144.00 1/4.-00 14 40 Feed Total Cost 206.40 206.40 Ret Irn 62.40 62.40 .0620 Gross Marqin624 1 2; 8 1 . 37 9 3 .51 1 0 6 . 09 1 03 .5 7 B * Gr o ss Ma rgin, Tntal qross Margin/growear ?.991.0 6.00 6.00 6.00 Miscellaneous Expenditure 75.37 87.61 96..7 P'it 72.89 15.50 15.50 1s5,U :).50 Less value homie can.umeo roducer 15.50 15.50 72.11 80.59 83.07 q5.31 Cash Incume 57.39 59.87 ANNEX 15 M A L A W I TABLE 1 Medium term credit - Livestock and equipment LILONGiJE LAND DEVELOPTENT PROJIICT (Rounding) CREDIT REQUIRQJUEMTS Total Work Medium Credit Medium Credit Medium Credit Medium Sub-Total Add 10% Oxen Available Oxen(0) Cart (CM) Im-pleents (E) Credit(M) (a) Total (m) Before Development 1810 - (10 ) - - Year 1 1760 5280(10F) 4400 2200 11,880 1188 13,068 Year 2 186.0 1500 1250 625 3,375 337 3,712 Year 3 2195 5040 4200 2100 11,340 1134 12,474 Year 4 2684 7350 6100 3050 16,500 1650 18,150 Year 5 3604 13800 11500 5750 31,050 3105 34,155 Year 6 4566 14430 12000 6000 32,430 3243 35,673 Year 7 5445 13200 11000 5500 29,700 2970 32,670 Year 8 6315 13050 10900 5450 29,400 2940 32,340 Year 9 7154 12600 10500 5250 28,350 2835 31,185 Year 10 7740 8790 7300 3650 19,740 1974 21,714 Year 11 8300 8400 7000 3500 18,900 1890 20,790 Year 12 8779 7200 6000 3000 16,200 1620 17,820 Year 13 9119 5100 4250 2125 11,475 1147 12,622 Year 14 9330 3160 2640 1320 7,120 712 7,832 Year 15 9422 1380 1150 575 3,105 310 3,415 Year 16 9454 480 400 200 1,080 108 1,188 Year 17 9.454 - - - - - - Note:- Assume 50% of oxen require credit @ E30 per oxen. Value of cart 50 1 cart per 2 oxen (on credit) Value of Implements Z 25 per 2 oxen. MERM TEA cRE , M 4LGW b 5-Y I TABLE 2 PRINC. INTEREST CAPITlL PRINC. INTEREST CAPITAL PRINC. INTEREST CAPITAL - 120,790 5673 p.a. / 72.96 2 E 2934.53 ~/S p.a. -M52IL.3 0/s 3 11 Year 3543.78 1663.20 1724C.22 I Yer 2227.52 1045.44 10840.48 6 Year 60.69 2853.84 29592.31 3827.29 1379.69 13418.93 2 Year 2405.73 867.23 8434.75 7 Y6,ar 6567.15 23Wd8 23025.16 12 Year 674.78 5636.57 8 Year ?092.52 1842.31 15932.64 13 Year 4133.47 1073.51 9285.46 3 Year 2598.18 286.04 466.92 330.53 9 Year 7659.92 1274.61 8272.72 14 Year 4464.15 742.83 4821.31 4 Year 3030.53 242.40 IG Year 8272.72 661.81 - 15 Year 482.31 385.67 5 Year - - 1308. - 3296.77 35673. - 8999.65 20790. - 5244.90 E3712 - E 929.69 p.a. 32670 - EB162.41 p.a. 1W2 - E4463.13 p.a. 29.96 3079.27 7 Year 558.81 2613.60 27101.19 12 Year 3037.53 1425.60 14782.47 2 Yaar 632.73 246.34 2395.92 8 Year 6014.32 2158.32 21086.87 13 Year 3280.54 1182.59 115G1.93 3 Year &3.35 191.67 1657.90 9 Year 6495.47 1686.94 14591.40 14 Year 3542.98 920.15 795.95 4 Year 738.02 132.63 G .64 10 Yar 7015.10 1167.31 7576.30 15 Year 3826.42 636.71 4132.53 5 Year 797.06 860.84 68.65 - 1i Year 7576.30 6C6.11 - 16 Year 4132.53 330.60 6 Year - 3712. - 9.45 32670. - 8242.05 17820.- 4495.65 f12474 - C3124.19 p.a. 32340 - M.9976 p.3. E12622 - C3161.26 p.a. f026.7 997.92 Year 132.73 5512.66 2587.20 26827.44 13 Year 2151.50 iOW.76 1070.50 3Yea 627.81 8C51.35 9 Year 5953.57 2146.19 20873.87 14 Year 2323.62 837.64 8146.88 4 Year 2296.39 64.10 5571.2 10 Year 6429.86 1669.90 14444.01 15 Year 2509.e1 651.75 5637.31 5 Yaw 2480.00 2678.49 445.70 2892.77 11 Year 694.24 1155.52 7499.77 16 Year 2710.28 450.98 2927.09 6 year 7 Year 2892.77 231.42 - 12 Year 7499.77 599.99 - 17 Year 2927.09 Z34,7 12474. - 3146.95 32340. - 8150.80 12622.- 3184.63 E18150 @ %545.78 p.o. 31185 - 7810.48 p.a. 732 - C1961.57 p.a. 393.78 1452.00 1556.22 9 Year 5315.86 2494.80 25869.14 14 Year 1335.01 626.56 6496.99 4 Year 3341.19 1204.5 11715.03 10 Year 5740.95 2069.53 20128.19 15 Year 1441.82 519.75 5055.17 5 Year 360.58 937.20 8106.45 11 Yer 62CO.23 1610.25 13927.96 16 Year 1557.16 44.41 3498.01 a Year 3897.27 648.51 429.18 12 Year 6696.25 114.23 7231.71 17 Year 1681.73 279.84 1016.28 7 Year 8 Year 4209.10 336.60 - 13 Y-r 7231.71 578.77 - 18 Year 1616.29 145.29 - 18150. - 4578.90 - 31185. - 7867.58 - 7832. - 1975.85 - 34155 @ M554.34 21714 - 438.41 E1188 - 297.54 p.a. 5821.94 2732.40 28333.06 10 Year 3701.29 1737.12 18012.71 15 Year 202.50 95.64 985.50 5 Yor 6287.70 2266.64 22045.36 11 Year 3997.40 1441.01 14015.31 16 Year 218.70 78.84 766.80 6 Year 7 Year 679.72 1763.62 15254.64 12 Year 4317.19 1121.22 98.12 17 Year 236.20 51.34 530.60 7333.97 1220.37 7920.67 13 Year 4662.57 775.84 5035.55 18 Year 255.10 42.44 275.50 8 Year 3 Year 7920,67 633.67 - 14 Year 5035.55 402.06 - 19 Year 275.50 22.04 - 34155. - 8616.70 - 211.- 5478.05 1188. - 299.70 - TABLE OF GRUBS A%) C ET INPiTS OF FERTILIZER A0 SEED .. AIZE ABLE~ 3 1. GROSS INWUTS 1) (EMO000 rounded) 70/71 Yr.1 Yr. 2 Yr.3 Yr.4 Yr.5 Yr.6 Yr.7 a) FertiIizer .. (No response - ~ (S.E. - Project Area (S.I. 62 46 58 68 74 68 55 36 (H.I - 4q 88 135 185 235 273 291 H.2. - 44 87 139 197 256 306 339 Sub-total Fertilizer Cost 62 139 233 342 456 559 634 666 b) Seed (No response 1 1 1 2 2 2 2 2 (S.E. 4 5 6 6 7 4 3 2 Project Area (S.I. 2 1 2 2 2 2 1 1 (H. - 26 46 71 97 124 153 (H.2 18 35 55 78 101 121 134 Sub-total Seed Cost 7 51 90 136 186 233 270 292 Total Maize Inputs 69 190 323 478 642 792 904 958 2. CREDIT IWiUTS (000 rounded) Fertilizer 2) 31 70 117 171 228 280 317 333 New Synthetic Seed 3) 3 3 3 3 3 Hybrid Seed 4) - 22 41 63 88 113 132 144 Total Credit 34 95 161 231 319 393 449 477 1. GROSS IWUTS FERiLlZER S.E. - Synthetic Maize + Extensian (no fertilizer) S1, . Synthetic Maize + fertilizer 383.6/- or E4.18 per acre (see Table 6) H.I. Hybrid Maize . low fertilizer level 483.6/- or 4.18 per Acre (a a H.2. iybrid Maize + high fertilizer level @111.2/- or 5.56 per acre R (' I ') SEED No response , 2.2/- per acre or E0.11 (V V N) S.E. - Synthetic Maize + extension 4 2.2/- per acre or Eo.11 ( ' H.I. . Hybrid aize + low fertilizer J 44/- or E2.2 per acre (a V U) H.2. - Hytrid Maize . high fertilizer 44/- or E2.2 per acre (i) All Cro% acreages aken from Annex 11 table 4 2. At 50% of gross inputs at any one time 3. From Annex 11 table 5 4. At 594 of gross inuts at any on time ANNEX 15 GROSS AM) CREDIT INPUTS OF FERTILIZER : TOACCO EM. Unit Year of Credit Input 3 Total Total Input Total Inputs Total Inputs Year No. New No. new growers 1 2 3 b al Tota Cash/credit Cash Iu Units Cash/credit a b a b a b a b a b Credit C r CM - 585 2925 2445 12227 9782 70/71 9 40 585 2925 - - 5135 3804 21464 17660 585 3510 - - - 910 1 5 2600 325 1625 5162 32060 26898 585 4-95 - - 1235 7670 5 2600 325 1625 325 1950 2 10530 6521 405 37494 325 1950 325 2275 585 4680 1560 352600 325 1625 7280 1300 13130 5434 54883 49449 5 2032 165 35 1950 325 2275 325, 4 4 5260 32 125 32 50307 2275 325 9880 975 -14105 14755 4076 2717 58959 61676 54883 5 6 - - - - -- 325 1950 - 325 325 12480 650 6 - - - 325 1500 325 1500 1359 63034 61675 7 - - - - . - 15080 - 150 . 63034 63034 -520 NOTES: on a once only basis 12.5% by total growers/annum for 4 years. No growers/unit 1 E Assume 50% of growers already use fertilizer. Credit given to remainder fertilizer cash/credit 2. A - numbir of credit growers b) total number growers using 3. All growers apply fertilizer to one acre as C.A.N. and single superphosphate. Therefor input/grower shillings - 201b P20 @ 1.42 shillings/unit - 28.4 40 lb N @1.38 shillings/unit . 55.2 TOTAL 83.6 credit given ,reviously 4. Assume all Phase Igrowers commence 1970/71 season since only very limited 5.; Assume 15080 total growers. ANNEX 15 SUMMARY OF FINANCIAL REQUIREMENTS OF CREDIT FUN (f0OO) (To COVER SEED AND FERT'LIZER TABLE 5 CARRYOVER ON CREDIT SALE, FERTIULZER SUBSIDY ON CREDIT AND CASH SALES, AND 0D ALLOW FOR OF STOCKS AND CASH FLOWDEFICIENCES (11) (12) (13) (14) (15) (16) (4) (5) (6) (7) () () (10) (1) () (3) INCREMENTAL CREDIT FUND REQUIREMENT CASH SALES TOTAL CASH FLOW CASH I'UT TOTAL REPAYMENTS CREDIT SALES CREDIT IWUT Subsidy Revolving Subsidy Revolving Subsisdy Deficiencies Frtilizer Total Inputs Crodit Cash Revolving Seed Fertilizer Total Seed 41 77 - 27 25 11 5 14 30 25 22 70/71 3 33 36 - 41 110 209 25 90 58 16 13 20 71 36 97 1 25 74 99 22 88 351 83 169 69 14 16 16 85 30 193 2 44 122 166 41 144 185 271 515 152 271 92 - 20 - 112 - 286 3 66 178 244 63 20 689 244 365 80 - 19 99 - 384 4 91 233 324 88 277 365 845 324 448 73 - 17 - 90 - 438 5 113 284 397 113 335 48 960 397 506 55 - 489 792 6 132 320 452 132 376 50 1017 452 539 26 - 32 - 486 7 144 334 478 144 395 539 477 144 396 540 1017 478 540 (1) - - - (1 - 457 8 144 333 9 144 333 477 144 396 540 - 1017 477 540 - -432 1. Columns (1) - (7) from Annex 15 tables 3 &4 31- per year from 1970 onwards. 70/71 -((column (2) x 66.67%) Column (1))deayed 1 year 2. Column (8) Assumes 100% credit repayment but reflects a grad'ial phasing out of fertilizer subsidy at the rate of 2 ((Column (2) x 88.89%) + Column (1)) delayed 1 year 3 onwards ((Column (2) + Column (1)) delayed 1 year 3. Column (9) As above, calculated from : Column (5) . reducing factor . column (4) 4. Column (12) fund to allow for 20% non-sale of cash sale inputs in any one yedr. will preceed receipt of repaythents in the same financial year. (16). Repayments in coluirns (8l) and (9) do ncA reflacf %;ash flow position as pu~rchase of inputs by eroject in any one year as it is assumed that the deficit can be covered from overall Project 5. Coitn iill therefore need to be found to cover such cash flow deficits. this has not been included in the credit funo Addition funds funds. Fund req.Ired to cover this defecit in any one year given in column (16) A 115 MALAWI TABLE. 6 LILONGWE LAND DEVELCPYENT PROJECT SEASONAL CREIT REIR ENTS G OUT'D;Y .Ln order to e-,cu o f to of mo -in,,ieti* of geu en+ Jee, intended to open cr dit fpcilities require grown p tr 00,,0W acres, 25% of seed inputs will that cf the toal acreage .f gro.nd.uts for 'ed operate as a growsn It is for one yezr an; one farmer. The fund will therefore credit, Credit .cilities will only be available to new issuev, maie each year tiior revolving fund, repyqments being 70/71 2 3 4 8,000 10,000 10,000 10,000 10,000 No. of ne.- growers 1.C 1.5 2.0 2.0 No. of acres groundnuta/grower 1.0 10,9C ) 15,000 20,000 20,000 Total groundnut acreage/100,OOO nev acres 8,000 1. 0 120 120 120 120 Seed Rate lbs/acre 600 900 1,200 1,200 (short tons) 480 Total Seed re 'irement 40 60 80 80 '- lb. (WM '000) 32 Total Seed cost at 15 20 20 Credit fund requirement (25%) (EM '000) 8 10 8 2 5 5 - Increment in Credit Fund 14ALAWI TABLE 7 LILONGWE LAND DEVELOPMENT PROJECT SEASONAL CREDIT REQU2REMENTS - LINDANE It is assimed that each credit rec. int will re- 4 a 3tandard issue o .indane at the time of issue of other techniq"4F and a reduction in grain losses. Issues seasonal credit inputs, in order to encourage iaproved atorage will, therefore, be directly related to number of credit accc'rnts. No. of ;z3it Increment Credit Accounts Requiremenw k4) Credit Fund 70/71 1965 1965 1965 1 5285 5285 3320 2 8945 8945 3660 3 13145 13145 4200 4 17645 17645 4500 5 21645 21645 4000 6 24645 24645 3000 7 26145 2'.45 1500 1) ANNEX 15 SHORT TERM CREDIT REUIHREMENTS - FEED LOTS TABLE 8 Years. 70/71 1 2 3 4 5 6 7 8 9 10 11 12 Ex-Project Herd (Steers 2-3 yrs. 313 414 600 711 729 1173 1251 1379 1541 1685 1826 188 1936 (Heifers 2-3 yrs. 554 1068 1348 1493 1569 Ex-Ozalanyama Ranch (Steers 2-3 yrs. 921 921 1323 800 1181 1393 1492 1492 1492 1492 1492 1492 (Heifers 2-3 yrs. 396 605 707 707 707 707 707 TOTAL 313 1335 1521 2034 1529 2354 3040 3479 4294 4952 5373 5590 5704 Toial Zebus 313 1335 1521 1632 729 1173 1251 1379 2095 2753 3174 3391 3505 Total J-breds 402 800 1181 1789 2100 2199 2199 2199 2199 2199 Total Purchase Price Zebus 6886 29370 33462 35904 16038 25806 27522 30338 46090 60566 60826 74602 77110 J-bred 1284 25600 37792 57248 67200 70368 7036B 70368 70368 70368 TTAL 86 29370 33462 48768 41638 63598 84770 97538 116458 130934 140196 144970 147478 Lcan Requirement 14685 16731 24384 2C819 31799 42385 48769 58229 65467 7098 72485 73739 jnrrt_,nt it, Law Fund 14685 246 7653 - 7415 10586 6384 9460 7238 4631 2387 1254 1) Extracted from Table 2 Annex 12 2) Assumes a purchase price of 80s. per 100 lbs live vuight at average weight of 750 lbs plus a 2 surcharge per head to cover price differentials for animals over 560 lbs live weight at issue. RMW'A L~j TABLE 9 MEDIUM TERX CREDIT REQUIREMENTS - OXEN AND ALLIED IMPLEMENTS (1) (2) (3) (4) (5) (6) Increment in Year Work Oxen Carte Implement$ Total Repayments Loan Fund 70/71 5 4 2 11. - 11 2 2 1 4 2 2 3 5 4 2 11 3 8 4 7 6 3 16 5 11 5 14 12 6 32 9 23 6 14 12 6 32 15 17 7 13 11 6 30 10 not**. Columns (1) - (4) From Annex 15 Table I Assume 5 year re-payment. ANNEX 15 MEDIUM TERM CREDIT REQUIlEMENTS - MISCELLANEOUS TABLE 10 (1) FENCING. (a) Issued on Crtdit to Planned Family Units for fencing of Rhodes rass paddocks. Fund reqoired to cover t any one time 100 miles fencing at W0/mIle (wire only). - E8,000. (b) ssued on Credit to Family Urits for fencing for DaM6os. Fund required to cover at any one tim: 50 miles of fencing at 120/mil. (wire, posts, lhbmjr) - EtLl0. f ) Hand oedtd at 1/village 7t 60 villages/unit at flh/sheller. Revolving Fund repayvle over one year to cover 300 villages per 100,000 annual acres in addition to a ropcrtion of Phasu I villages (who have not yet received this beneFit). (135 per year). .7. Total fund reluiretent at any one time - 435 x 10 - E4,350. (b) bower Driver Sheilers. Estimated 1 per unit or 5 per 100, iiO annual acres in adoi tio to a proportion of rhase I units (2per year). Cost at 300 per sheller repayable over 5 years. Fund REt-4YMENTS Total Fund Required Requiremont 1 2 3 4 Total Incremunt in Loan Fund (including Hand Shel !rs) Repayment 1 2100 2100 6450 2 2100 420 420 1680 1680 3 2100 420 420 840 1260 1260 4 2100 420 420 420 1260 840 840 5 420 420 420 420 1680 (1680) (J30) 6 L120 420 420 420 1680 (155) (1680) 7 420 420 420 1260 (1260) (1260) 8 420 420 840 ( 840) ( 840) 9 420 420 (420) (420) (I I) IMtRlVE0 STORES AIC BUIL0INGS Ar estimated E3,0Oc at any one time to cover credit requirements for improved stores and buildings. Bracketed figures reflect negative Increwent to loan fund. TABLE II MEDIUM TERM CREDIT RX&UIREMENTS - FORESTRY Year Credit Requirement Credit Repayments Total Repayment Incremental -- 4 Credit Fund 70/71 1 9,800 9,800 2 3,500 1960 1960 1,540 3 3,500 1960 ?00 2660 840 4 3,500 1960 700 700 3360 140 5 - 1960 700 700 700 4060 (4060) 6 - I960 700 700 700 4060 (4060) 7 - 700 700 700 2100 (2100) 8 - 700 700 1400 (1400) 9 700 700 (700) .ot*. Assumed cost of 28/- to plant 1 acre @ 500 farmers/unit = 700/unit. Phase I units to be covered in. Year I of Phase II and repayments to be made over five years. ME, DIUM TEM CREDIT EEQUMMNTS BUSISS LO,2TS TO SERVICE CENTRES M ANNEX 15 TABLE 12 No.Units Amount Returned by Unit groups Incremental Credit Issued Yr.1 group Yr.2 group Yr.3 group Yr.4 group Yr.5 group Total Returns Credit Fund Year 1 9 9000 - - 9000 Year 2 5 5000 2250 - 2250 2750 Year 3 5 5000 2250 1250 - 3500 4 1500 Year 5 5000 2250 1250 1250 - 4750 Year 5 5 250 5000 2250 1250 1250 1250 - 6000 (1000) Year 6 - - - 1250 1250 1250 1250 5000 (5000) Year 7 - - - - 1250 1250 1250 3750 Year 8- 3750 - - - 1250 1250 2500 2500 Year 9 - - - - 1250 1250 1250 NOTES: 1. Assume 1000/unit issued in Year 2 and repayable over 4 years. Interest 8% not included, covers bad debt/ servicing element. 2. Phase 1 Units to receive in year 1 Phase II. ANNEX 15 MALAWI TABLE 13 LILONGWE LAND DEVELOPMENT PROJECT SUMMARY OF FINANCIAL REQUIREMENTS OF CREDIT FUND Increment Required in Fund (EM '000) 70/71 1 2 3 4 Total JRevolving Credit Fund Seasonal Credit (a) Maize and Tobacco 30 71 85 112 99 397 (b) Groundnut Seed 8 2 5 5 - 20 (c) Lindane 2 4 4 5 18 Sub Total 40 76 94 121 104 435 Short Term Credit Feedlots - 15 2 8 - 25 Medium Term Credit (a) Work Oxen and Allied Implements - 11 2 8 11 32 (b) Others (i) Fencing - 14 - - - 14 (ii) Maize Shellers - 6 2 1 1 10 (iii) Improved Stores - 3 - - - 3 (c) Forestry - 10 2 1 - 13 (d) Business Loans - 9 3 2 - 14 Non-Recoverable Fertilizer Subsidy 25 36 30 - - 91 TOTAL 65 180 135 141 116 637 ANNEX 16 MALAWI LILONGWE LAND DEVELOPMENT PROJECT STORAGE AND HANDLING FACILITIES FOR MAIZE, GROUNDNUTS AND FERTILIZER MAIZE AND GROUNDNUT STORAGE To cater for Project output the F.M.B. need to increase considerably their storage capacity. They propose to erect in 10,000 ton modules each costing 55,000. Allowing for outflow the F..B. calculate that they will require:- 1m In 1971 2 modules costing 110,000 In 1972 3 modules costing 165,000 In 1973 3 modules costing 165,000 In 1974 3 modules costing 165,000 605,000* In 1975 2 modules costing 110,000 In 1976 2 modules costing 110,000 220,000** * Phase II period rqt. * After Phase II financial period (This amount is to be covered by interest and repayments from F.M.B. from loans on stores, markets etc.) GROUNDNUT SHELLING FACILITIES To cater for groundnut shelling the F.M.B. need to instal:- 1 (a) Machinery costing 20,000 (b) Building costing 20,000 Total 40,000 iKALAUaT TJLCNG '7 LCID Z1V7TLTE;T PROJECT UTLK FETILIZR T G ATU TIL 23 UNIT: 1.* .3JZCT:VV To ml.ake readily available approxi!.atcly 90 t ns per an um of iertilizer to 2q Project Unit Centres. (Ajproximately 25000 tons) 2* WR CURMENT By International Tender to be delivered in manageable conzignments to a rail head from May onwards preferably in weatherproof bag5. 3. 2AILHEAD Salima (66 miles from Liloanwe) would appear to be more suitable than Balakd (124 miles) as..,uming that an adequate storage.area could be made availsble adJacent to the sidings. 4. PATLHE2APaTCRA (L) 2emoval from Docks To avoid h'eav. demurrage charges at the .ort of entry, it would be necessary tc have the total conSignment of 25,000 tons shipped in 5 x 5000 ton lots. This Would still involve L-alawi Railways in railing 500 tons daily from either Beira or Nacala to Zalima, this allowing 10 days at the dockside a:suming tha rail facilities 2re adeQ'ate tj prit immediate collection. (ii) Storae requirements at railhead Tt is assumied that 2D1 or 5,000 tor. of fortilizcr could be transferred straidht fron trucks to lorries for removl tc the Iroject Ltores, and that covered storagE would b'e requircd for 10 or 2,500 tons, the balance of 17,500 tons to be store on iplinths pending removal. here fore storage requirments are:- Capital. Costs (a) Coverea store - 2,50C tons . auming that non-muchanical mans of he.ntdling are to be used, a ximunP height of stera, u be 11 feet. A ton of fertiliver ocvupe. a proxioat&1y 45 cu. f(et. Therefore 2,500 ton- ;tackud to 10 ft height would require i,250 s!. ft. floor space. Allow 11,71 to provi.e office :.nd aocess:- p q.ft. -r cost of :tore = 0 1$, 5? ioncrete apron; - 94k ft. -x 1 ft. 4in_ 'thick z ;,I,- 'U. l -o _6 Totzl 0 (b) -linth - 17,000 t Ae requiired if ,tac-ed to 10 ft. 7 0..fL. 4iins. thick coricretc 1C 'u, ya 9,722 Concrete Apron; - 1070 x iCft 2: 4 ins thick QX10 cu.yd , (c) Surrounds - Approach s (d) Fcnc-Li 3 acrc site 1 per y:rd oh-in link fenc 4g r 560 (e) Roller3 To facilitate handling 2n 15ft. rolleri e'-30 600 (f) IisceLaneouG Iters Scales, sack barrowzs etc. 2,000 (S) Eou.ing for -tores 2upervisor 1,0 (U) tu;Sing for 2 clerks 11,00 TOTAL CAPITAL COaTS 34,377 Recurrent Costs 'tore& 2upervisor 460 2 Clerks @ a 149 29F Cffloading (7,200 man-aays a /k) E 2 Loading Lorr ea ($j400 man-dayo) 03 YizcllAneous, watchmtv etc., 160 /per da for 1% day7 90 Capataou 4 p iscclareous stcres (sscks, .:trir. etc.) 1 CC Maint-inanca --f buildi-r ': 100 To be done by contractorL. -cturr. trips to be used to take produce from the markets to railhead. iN 5JECT 6. B G It is estimated >' or 12&CC tars of fertilizer wi12 be :;old prior to the riinz (i... late 0cober), -md that the maxirum Inount of fertilizer in store at any tim "ill be 75%' (i.e. 25W on plinths). It is assuried t.at +he zea onal nature of the arhetirn Officer's dutie would piermit him to supiwe P'roject xtorage. There are three main p-osibilities. A. nulk Ztorat-e in Jilonge AS F.'.P. stores in lilongwe are generally fully occupied ith groundnuts, tobacco, maise and fertilizer for unpredictable periods, it i con iderEd vrudent to ensure that aurplus sto' Ae tQ full requirement, is available. Conts would be as follows;= ,Epitalcois (a) Covered Ltore 12,500 toni (>0Q(1) 3tored to 10 ft. w;ith apron and office 81,5)6 (b) Plinth 6,270 tom, (25%) 3,472 (c) Surrou250 (J) Fencing 3 acre site I F 1 per yard chain link fencing 6 (e) Rollers 20 Z 30 each 6oo (f) Miscellaneous Items 2,000 (g) Housing for 2 clerks 1,000 4O, each (h) 11,200Minor Holding utores 28 W TOTAL CAPITAI COSTS 100,618 Recurrent ,osta As for Rniihead Store " 2,658 Add cost of offloading at 28 Units 2,000 T':TAL "UNT 00T5 4,658 B. Five Central Projec 2tores (each 1andline 5000 on; p.a.) Capital ^D.ts (a) Covered Store (2,500 tons) 2,500 tons Q.; 45 cu. !t per ton 10 ft height of stack would require 12,000 sq.ft of floor cpace 0 1.45 per sq.ft. ccst E 17,400 (b) Apron for store 300' x 10' x 4" 3 7C (c) Plinth plus 140' '10' x 4" apron 713 nd 75urrounds 75 ANNX 16 CONTINUED (e) Fencing (11 acres) 2 350 (f) Rollers 5 @ 30 each 150 (g) Miscellaneous Items 500 (h) Housing for Clerk 500 Total capital costs for 1 centre E 20,058 S " " " 5 " E 100,290 Add: 23 Minor holding stores @ e400 each E 9,200 F 109,490 Recurrent Costs 1 Stores Clerk E 149 Labour: offloading 3 tons per day, 1,667 working days @ 2/4 f 195 : reloading 156 : Miscellaneous 80 Capitao 208 days @ 4/6 48 Miscellaneous stores 50 Maintenance 40 Total recurrent cost for 1 central store 718 " " " " 5 " " 3,590 Add: Labour offloading at 23 centres F 1,600 TOTAL F 5,190 C. Storage at each Unit - (900 tons throughout each year) Capital Costs (a) Covered Store - 2,025 sq. ft. of floor space @ Z 1.5 per sq. ft. (450 tons) E 3,038 (b) Apron 50' x 10' x 4" thick E 62 (c) Plinth 1,012 sq. ft. of floor space at 4" thick with 10' apron (225 tons) f 156 (d) Fencing i acre 136 (e) Rollers 3 @ 30 90 (f) Miscellaneous 80 (g) Housing 1 Clerk C 500 Total Capital Cost for 1 Unit f 4,062 " " 28 Units E 113,736 Recurrent Costs 1 Stores Clerk 149 Offloading lorries 350 m. days E 41 Miscellaneous Labour 80 Miscellaneous Stores C 30 Maintenance E 20 Total recurrent cost/unit. E 320 " " for 28 Units E 8,960 7. SUMMARY OF COT Capital 12ecurrent Railhead Stores 34,377 ,658 If Bulk Stores - ilongwe 100,618 ,658 If 5 oentres 109,490 5,190 :?28 Unitz 11,7366 Recurrent handling costs (Calculated frorm above) 2.13/- -er ton at Railhead 3.73/- " iloncwe Pulk 4.15/f- " " " 5 Centres .2 "l Uit S (It is assumed that transport costs from railhead to units vould be about equal in all 3 systems) 8. CCNCLUZIONS In view of the absolute need to have fertilizer at the Units at the optimum time, it is considered preferable to have this delivered direct from the railhead if other factors are equal. The storage of fertilizer in Lilongw, and'at central. post involv .s the introduction of a second contractor (or extra froject transport) and double handling -with losses occuring as a result of damaGed sacks. Most of the fertilizer still has to be passed through the unit centres involving Unit Clerks who have rot been costed but could amount to capital costs of 500. per urit for housing and recurrent costs in excesz of 149 per unit if ex.isting unit i ersonnel proved unable to cope with the flow of fertilizer and asociated accounting. It would therofore a>ear ne.essary to have the fertilizer delivered direct to the railhead to all 2F TTits. The expenditure being:- Capital Recurrent ailhe.ad . 34}73 2,658 Unit Storare 11-,736 9,960 Handling Costs:- Railhead 2.13/- per ton Unit Stores 7.17/- per ton (Transport not includea) LI LONGWE LAND DEVELOPMENT PROJECT MAIZE COMPETITION RESULTS FROM ONE ACRE FIELD - JUNE 1969 UNIT I Variety Treatment Received Conservation Measures Remarks Name of Farmer Village Section Weight per acre Weight per acre No. of bags in Cobs in Grain 200 lbs each per acre Aelkari and Bingo S/A.20.20.0 Conserved Outstanding Farmer Katantha 1 7768 lbs 5437,6 lbs 27.1 D. Chipera 2098.6 10.4 Asikari The garden not well weeded V.H. Mitengo Mitengo " 2998 " " S/A.20.20.0 Average Farmer Chiweza 4087 " 2860.9 14.3 B. Kapindi 1974.0 9.3 " - It G. Kudzala Chakwanila 2820 9 " 13.4 it S/A.20.20.0 I Gonthi Kachala 3845 " 269l;5 " 16.4 it it G. Chizula Karoola 4708 1 3295.6 3220 " 2254.0 11.2 it R. Itifele Kaphiri 6.3 Local Poor Farmer J. Njoka Choyo 1815 1 1270.5 ASIKAR 15.2 Bingo S/A.20.20.0 Conserved Good Farmer Jeke Ngozo Nkhukwa 11 4346 lbs 3042.2 lbs i 3194 " 2235.8 1 11.1 Asikarl it 11 H It Mesa Mtavu Msenda Local " It If H Msampha Kayabwa 3453 i 2417.1 12.0 2667.0 13.3 Asikari it If I 11 L. McIota Chilowa 381L " H 2019.5 1 10.0 Loca I H Poorly Consd. Average Farmer J.B. Katantha Malaka I 2885 I Manure Conserved Good Farm Buluzi 4586 3210.2 " 16.0 *M. Chimbuzi S/A.20.20.0 Conserved i If V.H. Manondo Manondo i 4378 i 3064.6 1 15,3 Asikari 3973 2781.1 1 13.1 11 11 i J. Chapata Mkula 29.9 Bingo S/A.20.20.0 Conserved Outstanding Farmer **V.H. Chalendewa Chalendewa IYl 8556 lbs 5989.2 Lbs 11 it Average Farmer Kanyoni " 5786 I 4060.2 1 20.2 H L. Chimutu 11 3621.1 1 18.0 As!karl B. Chapata Chapata il 3673 21,8 Asikari S/A.20.20.0 Conserved Outstanding Farmer *Y. Tendu Ngomzo IV 6249 lbs 4374.3 lbs 18.3 Partly Consd. Average Farmer Yohane Khundu 5239 " 3667.3 " 19.4 It i Conserved Msanyama Kalumbi I 5706 1 3994.2 " "1 2517.9 "1 12.5 Local if Jasam Jeke Mbusa 3597 20.3 Bingo and Local If 11 If of S. Chatha Msampha H 5800 11 406).U " 3076.5 15.3 Asikari ii i H 11 S. Kanowa M'Njo " 4395 H " 2485.7 lbs 12.4 Local Conserved Average Farmer "/A.20.20.0 P. Kolomoni Gulule V 3551 lbs 2965.2 " 14.8 i"1 "1 s it IF J. Kaphamtengo Mwase 11 4236 11 21.0 Asikarl "1 "1 er Outstanding Farmer *G. Mtande Chipwatall " 6012 " 4208.4 "1 5599 " 3919.3 " 19.) If Well Conserved Above Average J. Jasi Mphindw i 12.3 Local I i Conserved Average W. Mkalla Mlinga " 3530 247i.0 Maize Ccmpetition (Cont'd) Weiphtrr acre Weight per acre Nc. cf bags cf Section IGiper0 Variety Treatment Received Ccnservation Measures Remarks Name FaWmer Name Village o Fesimr Vilage Setion nC.~bsin Grain cs 200 lbs eech per acre___________________________ Johan Gubu Chagogo VI 2507 lbs 1754.9 lbs 8.2 Asikari S/A.20.20.0 Poorly Conserved The section not well conserved Amos! Jafielo Chikungu " 2804 " 1962.8 lbs 9.8 Cnserved Well Conserved I. Kanyamula ChImutu i 1923 " 1346.1 " 6.2 Local " Poorly Ccnserved 2034 " 1423.8 7.1 Asikari - -"" V.H. Mitanc'a Mitanda H *8. Kamcila Msana 4514 " 3159.8 " 15.2 S/A.20.20.0 Partly Conserved 3387 lbs 2370.9 lbs 11.8 Asikari S/A.20.20.0 Conserved Average *Kasuzumila Chimutu VII Chabuka Chinguwu " 1608 1 1125.6 1 5.6 Local - - - Below Average P. Thomu Chadza " 3087 2160.9 " 10.8 Asikarl & Local - - Conserved Average Farmer J. Sikelh Tsabango V1'll 3605 " 2523.5 lbs 12.1 Asikarl S/A.20.20., Conserved Average Farmer *D.Kavala Mtsinji " 524( 3668.0 " 18.3 S/A. Manure Above Average A. Mlongoti Mtambira 3858 2700.6 " 13.0 I S/A Average Farmer Y, Yesaya Karonga 4240 2968.0 " 14.8 i S/A.20.20.0 " Average Farmer NOTE: - Shelling % 70% - 42 Villages entered for competition - 21 villages withdrew. *Winners per Section **Winner in the Section and in the whole unit Field days have been held In the Unit on the results of fertilizer with all people of the vi llage plus V.P.E. office bearers and village heads from other villages per Section present, who harvested and saw the cobs being weighed. Results have been most impressive and the demand for fertilizer next season Is likely to be high. The total attendance at the above maize harvest was 681 excluding children. N.B. The plot was paced and checked with a 10 ft. chain. MwiA ANNEX 17 LI LO&e.2 LAND DiVLCPMENT PROJECT - O UNI T 2 - MAIZE COMPETITION PtSULT - m-a Weigit No. of 200 Posi tion Remarks Date Ccb Weight Shelling % Grain lbs. Weigh', Section Winners in The Unit Field Operations Name v- I IIge Variety F3ArIti_ ze' r_ lbs Bags/Are. 75 4025 22,92 (2138) . Ljanga ade O.Ttl 9/5/69 6i10 0.L~ans Kiacf 'Ikri ?~A2O2Q 73% 30A 7 70 2454.9 12.27 .2f 20 85% 12/5/69 F. Jp : Chi Ska L-CI 5. 2 78% 15/5/69 1606 70 1122.2 J ab s h's s a Lw al / . 20:2 0 :0 ECh wa. l F -h--aL>al-A20 2: c,,26 V.H.Kunthu1, 3 15/5/69 504 3052.8 .2/202C 712/3% 2 V. H .;,unithu Iu Kr thu iu 2 - -. 5+002 66 4692 7C 3284.4 6.62 0bA+20:/2d 20 ZS 60% 22/5/69 ,1.Chimbewa Ihimb"aa Asikari 200 K'lj. aa lr 2 +32 - 65% 21/5/69 4354 7C 30478 15.24 tliaj Asikari 200 ibs/SA+200/20: 20 - 5 K. Na;,ari 27/0 7!9 70 2257,2 2 11,13 45% 23//9 72 aYun t.-! A kari 2(0 KbS/SA+200/20 20 /2 2 Cr 2 7 c 14 5 1 .8 7 .2 5 n j iua Bi~ia i C dd a 2-----+2---2 - - -- C. Sandalau 2 - C 7 70 4232.9 2.16 tI Wca 5/'.a,2' .200 Gdan Op. '/59 3 6 u3 rI G5S2 75 3811.5 19.06 3 EC nK n N nc i' S/A.32C200 Gdn 2./5/69 69 32 5; 7 248 5 .7 12 .43 64% 25/ 5/ . nk I z A .^5 20 .0 12.20 54% 22/5/69 5,93 71 2450.0 K Cb.-aa AvAi 1A,20:20 SDK qj a Cirdmwe LK; KaA 2i:2 .i 5r% 4/0/69 313r 70 2!74.2 10.87 Nil I ~ lNi I Nil NilN- Nil Nil NilNilN, - 4 Nc Cmpe- tc-s NII N NI I N . - 11.24 Benes! Kachinga 13 13/5/69 '2 70 2248.4 5 ees !achiga kng 5/A22iJ.2- 5 Benesi Kachinga MkangiS/A+2020: 12/5/69 1626 70 1138.2 5.69 V.H. Chiwala ki,.sa Asikar! S/A+20:20:0 S/A.20:20:L Garden Operations K. Chikhungu 16 6 K. Chikhungu Mputen! Asikari 70 1861.3 9.30 23/5/69 2659 74% cr 74/5A.V 22/5/69 2580 70 1806 9.03 A. Mbinga Mazengela Asikari S/A.20:20:0 68% or 64/54.7 60% or 6 A.V. 17/5/69 1485 70 1039.5 5.20 D. Kuwale Mguwata I Asikarl S/A.20:20:0 Unit 2 (Conttd) ANNEX 17 Weight of No of 200 Section Name Village Variety Fertilizers Field Operations Date Cob Weight Shelling % Grain lbs.Weight Section Winners Position lbs Bags/Acre. in the Unit 7 K.Ngtanjc Chphyse Asikari S/A.20.20:O @ 150 lbs. 23/5/69 4626 71 3284.46 16.42 K. Ng'anjc 5 V.H. Mb ingwa I Mbingwa I AsI karl S/A.20:20:0 @ 150 lbs. 44 . 731% 19/5/69 4520 72 5254.40 16.27 60 F. January Mllmbo Local Organic Manure S/A 150 lbs. 20:20: 2 2 3556 70 2489.20 12.44 60 150 lbs. V.H.MangadzI Mazire Asikari S/A @ 150 lbs. 35 - 584% 16/5/69 3464 70 2424.80 12.12 20:20: 150 lbs. 60 F. MkwapatlIa Mchanche Local S.A.20:20 @ 150 lbs. - 58t1 20/5/69 2236 70 1765.20 8.82 60 ,..:18 LILCON 4 ;2 LAND &2N:V Ot:2T P2CKJCT EACIC DTA - DlVR 4 I> DlTC'ZU, JATYE.R~ AND~!AI\KI: 42 LIN Diversion Ditches 1. The original applicat.ion for Phase; 1 u-ed the bjaic assumption that therL iould be some 210 miles per 25,000 acres and that the constructed depth of the V type diversion ditch woild be 1." feet, with an avera> distancc ,f 660 feut horizontal, istance between th m. In Block ITI (23,000 acres ap-roximately) the factual milage was resulting in machine 190 niles. There has teen a tendency to silting maintenance. Machine maintenance cannot be economically carried out, an. iversitcn ditch depths were increased to 1.75 ftot. 2. A -hysical_ check of thc depths and cross sections of various diversion ditche, was carried out with the following results:- (a) Tsabango Pilot s;cheme (W) This 6chemc was installed in 1965/66 and some 9,500 acres were treated for oil conservation, with small "" ditches at a vertical intcrval of 7' + 2 x 2. These ditches arc still in existanco and show signs of maintenance by farmer.a, which is probably the result of intenre extension work in th area. Average cross-sectional sizes vary considerably but an aver'ae to,, wih of 3 feet and u depth of 10 inches wa6 general. Breakages have occurrcd , uarticularly where the banks have not been planted to grass, and where the standard of farmin has been poor; but the overall picture is a successful one, and will contirue- to he, providin thst a very high level of extensi on is kap-Pt up. (ii) :n the actual number of motor grader cuts, there is little differenc> per land unit' betaecr the less frcuIcnt large ditches. and th cre nure;ous oral1 "1V ditche6. (iii2 The increased cost of. small ditches i; in the greater area to be cleared, And the fact that it is inadvisable to run them to a greater lerEgth than 1,5C0 feet. Th necesaitatus the construction of numerou. artificial drainagewayz, with the accormanying problemz of thc cost of'zuch drainagcwayz and their upkeep, and the 2ocial one, of taking up traz ts of arable land for this purcose. They arc, further, much more e:-on to breakages. (iv) The problem of di.tancc between drain gewys does not sIow to clearly at Tsabango where The country is steeper than is Lp gencr:l over tbe rhole area. in the case of 1argc div..rsion ditchcs the banks are u ed as roads for cro: removQ . They also provide clear an r,.1ulas 2ivisiens Cor lad con olidati n and the mrjor .utlets for farm planninc- wrks carriec out tetween them. (b) Lhase I iversien *itechex. (i) A Cield lnspection provide-d the followin- information: Divcraion _itches of Zross .ection, after one iex, depthe sf 1. ft season' s hIeavyr rain: Total depth Pank to Channel 1.5 ft. Top :idth 19.s ft. Cro. Section 14.5 sq. ft. !version ditohs cf max. T.otal depth Fank to Chanael 1.25 ft. epth of I.5 fi. (clearc. Top width 14.0 ft. 'efor the last seajc'n) Crosxs ection .75 ft. iver.sion ditche6 of max. Total depth -anlk Lo Chanrel C.73 ft. aepth 1.5 ft. (uncleared Top width 14.c ft. ftcr the last season) Cross Section 5.25sq.ft. (ii) A diversion ditch of 1.5 ft. ill wpth contain the run off from 30 acres maxinium catchment, but since the ratio of sinkage in the construcbed bank ic higher and the tendency to silting greater, to effect an economy, it would be preferable to maintain ditches at an overall dupth of 1.75 ft. and increase the average horizontal interval to 750 ft., and the maximum catchment area contained, to 100 acres. There is no confirmed scientific data available on peak run off, but past experience, under heavy rainfall conditions, has shown that, providing ridginC is carried out, and well aligned, a safe run off factor is:- up to 40 acres catcbment ........ 0.5 Cusec per .acre 40 to 60 " ". . 60 to 107 " 0.3 For this run off the follo;inG tible is retommended:- Acres 2un Off Depth of Ditch (in ft.) iMaximum Capacity 20 10 Cusecz 1.5 25.2 40 20 ' 1.5 25.2 60 2 " 1.75 36.-75 30 27 1.75 36.75 100 33 2.75 36.75 The high factor of maximum capacity when constructed is to ensure a safety factor for subsequent sinkage. (iii) By increasing the horizontal interval as opposed to reducing depth, a saving will be, effected in the amount of cleaning to be carried out, and also to a 1ks:ser extent, the cost of layout and construction, thereby of fecting an economy. (c) Application for Phase IT In view of the foregoinE. the folloving is recommended for application purposes in Phase II:- (a) That the actual milage used in BlockIII, Phase I, 190 miles - be used as a basis, and be reduced to 176 miles per 25,000 acres in view of the increase in average horizontal distances. (b) That the horizontal distance is increased to 750 ft. (c) That the ratio of Diversion Pitcbes be: 1.75 ft maximum depth 141 miles 1.50 ft. maximum depth 35 miles These figures will, of coursc, vary with land conformation and slope to a certain extent. Pelow are shown actual Phase I and revi;ed estirmates for Phase TI (Calculated on Block III) (d) Cost of Construction for existing Development. (23,000 acres of which 16,000 is available) EM Graders 4092 hours @ k1,3 per hour 5,320 Wheel tractors 166 " E .5 " 83 Bull Dozers 1753 " @ L2.3 " 4.032 9,435 Cost per mile L 49.7 Cost per arable acre L 0,6 The above cost per mile includes all depths of diversion ditches. Basic assumptions for Phase II have been based on the above, but the horizontal interval between dirches has been increased from 660' to 750' and the variable running cost of machinery: - 36 Tractors raised from E2.3 to Z 2.54 per hour Motor Graders " " E1.3 to X 1.4 " " Wheeled Tractors remain at 10/- per hour. (e) Cost of Construction for Proposed Develpjpmet. Diversion Ditch 1.75 Depth Motor Grader 23 hours @ Z 1.4 X 32.2 D6 Bulldoser 10 hours @ E 2.54 X 25.4 Wheeled Tractor 1 hmnr @ X 0.5 Z 0.5 58.1 Diversion Ditch 1.5 depth Motor Grader 16 hours atL 1.4 22.4 D6 Buildoser 9 hours @ Z 2.54 E 22.86 Wheeled Tractor 1 hours @ E 0,5 Z 0,5 E 45.76 Total mileage per 25,000 acres Diversion Ditch 1.75 depth 141 miles at E 58,1 - 9 8,192.1 1.50 " 35 " " 45.76 - Z 1,591.6 Total for 25,000 acres Z 9,783.7 Cost per arable acre: - She. 12/3d Total cost of Diversion Ditches for 100,000 acre block 39,135 WATERWAYS. 1. In the application for Phase I a 10 % factor was odded to the hourage on Diversion Ditches to enable Traiinng eks to be contructed. The Training Banks define and control '-ater rays. 2. It was found more satisfactory in pra tice, to construct grass waterways. However, this is an expensive p- opess and the average factual cost was some Z 350 per 750' waterw y. 3. For the purpose of application in Pha e II a density of 1 waterway for 1,500 acres has been taken, at a cost o: r 61.40, exclusive of labour which is the major cost (with labour - L 13:). 4. Wnere long, gently siopiAA waLe.L ways are encountered, training banks must still ue used, and the type of waterway used must be decided by tne Planning Officer depending on individual conditions. 5. UOST OF CONSTRUCTION FOR PROPOSED DEVELOPMENT Eacn waterway produces its own problem; however, in the light of experience the following is a typical waterway:- Length - 759 yards Marking wheeled tractor 2 hours 1 - - Qiearing D6 9 hours ( 2.54 Z 22.86 Shaping Grader 3 hours @ Z1.4 f 12.60 Pegs E 20 Seeding - Katumbora grass 5 Total requirement for 100,000 acres @ 61.46 z 4,425 Marker Lines 1. Marker Lines, are quide lines laid out on a level contour between the diversion ditches. These lines act as master lines on which the farmer can base his normal ridging. 2. No provision was made in Phase I application for the marking out of such lines. It was presumed that farmers would ridge up in the normal course of cultivation practise. This was in fact the case, but it has been found that the laying out of master lines after the construction of diversion ditches saves the farmer much work in re- aligning his ridges where they do not conform, and also much unnecessary run-off and silting into the newly constructed diversion ditch. The relatively small increase in cost is more than justified by the improved standard of cultivation and it is therefore recommended that the Marker Line Teams evolved in Phase I, be continued, and made provision for, in Phase II. 3. Cost of Construction for Proposed Development Original provision: Nil. Cost per acre based on available facts. Tractor and ancillary equipment:- 14 miles per day at 10/- per hour. Average working time 9 hours per day = t 4.5s 1 Mile Marker Ridge covers 10 acres. Therefore acreage per day = 140 acres. Cost per acre = 0.7s Cost per acre exclusive of labour and transport:- Tractor Cost 0.7 - Pegs 8 at Yad per acre 0,3 = 1/- per acre total. Total Cost per acre = 1/- Total cost per 100.000 acres = Y5,000 ANNEX 18A M A L A xr I LILON0kE LAID DEWLOITPET PROJCT FUTURE POLICY ON ROAD _A1D BORIOLE1 HAINTE1ANCE As additional roads and boreholes are added to the district network, it becomes necessary to set out clearly the policy for their maintenance. Such policy must accord with that inforce for previously existing facilities and must be instituted in time to ensure that there is ..o deterioration, due to lack of maintenance. At the present time there are two types of existing roads within the Project area (i) District Roads which are accepted by the inistry of Works as classified for a Road Grant on a mileage basis (ii) Minor Roads maintained without grant by the District Council oz by the inhabitants at large as self-help projects. Some of these roads may fall into disuse in the light of new roads created as part of the Project. In future the Lilongwe District Council will remain the principal highway authority responsible for road maintenance, "classification" of certain roads by subject to the Ministry of Works as ranking for grant and it is recommended that Ring and Secondary roads - those of 36 ft. width and above be selected on a basis of usage after three years for classification. Classifiod roads should remain the responsibility of the District Council. The remaining roads, of two types - "Feoder Roads" and "Village Roads" 24 ft. or less, would, under existing arrangements, fail to be maintained by the Dsitrict Council though in the event of the introduction of minor local authorities (Para. 1.3.1. of this submission refers) it may be thought desirable for the District Council to delegate this function to such authorities. The introduction of a considerable number of new roads in a relatively confined area will place a considerable burden of cost on the local authority - major or minor - and consideration will be given to the introduction of a special rate to meet such cost, It is suggested that a locally recruited Road Foreman be established to carry out works in the area of each minor local authority under the overall direction of the District Council Works Supervisor. It is proposed that in the initial stages funds be made available from Scheme Financing for 3 years and thereafter raised from local contribution. For an average sized Minor Local Authority of 100,00 extent, the suggested scale of funding for maintenance acres is:- Feeder Roads - 16 miles @ 10 per mile 160 Village Roads - 154 miles 0 E5 por mile 920 Bridge and dambo crossing repairs E200 Supervision, Overheads and Contingencies 280 01,560 Borehole maintenance 100 @ 15 1,500 C3, 060 On the basis of 10,000 families, this would equate to a "maintenance rate" of 6/2d. per householder. ANIEX 18A CONTINTED Funding: - 18 miles at 5 per mile 90 Contingency and Meetings 30 z 120 Initial Tools and Equipment (non recurrent) C 50 It is suggested that a locally recruited Road Supervisor be established to sit on Parish Council meetings and coordinate all non-M.0.W. Road Works. It is suggested that in the initial stages funds be made available from Scheme financing for 3 years and thereafter raised from local contribution. 4. The foregoing assumes an annual recurrent expenditure of 1,360. On the basis of 10,000 families for 100,000 acre Parish, a "Road Rate" of 4/6 per householder per annum would recover expenditure. S. d. Recurrent Expenditure - Labour and Materials 2 8 Salary - Road Supervisor 1 6 Contingencies - 4 4 6 Actual acreages cover from 1i acres to 30 acres per householder and councils should adjust reteability accordingly. LILONGWE LAND DRYRLOPRENT PRAME-T BASIC DATA: FQAD - BRDGS, DMA0 CROSSI5GS AND 30OOL RDADS 16 feet wide roads would 1. The basic assumption for Phase I was that to serve 25,000 acres. be constructed and that 25 miles -would be adequate length of read required During Phase I, both the standard and the length was was increased. In Block III (23,168 acres) the total road 24 feet wide, with a distribution 52.7 miles and road widths were 36 and of approximately 50% to 50%. The overall average cost was t 104.2 per mile as opposed to the projected cost of t 42 per mile. Block III - Actual (overall acreage -'23,168) Total road length - 52.7 miles COST PER ILE ALL WIDTHS:-W (Tractor running costs) oaly. 9 a S Cost 120 Grader - 46 hours at 1: 6 : 04. 60 0 : 0 Tractor D 6 - 18.8 hurs " t 2; 6 : 04. 43 0 : 0 - 2.2 Z0 0 : 04 1 2 00 % Wheel Tractor 104 : 2 % 0 with no smaller sises. The above is 50% 361 wide and 50% 241 wide and The increased standards are the outcome of Government policy, for District are in fact necessary, if these roads are to be considered Council take-over. pr*- With this object in view, various areas have been tentatively for Phase II:- planned and the following eale evolved Ring and sc-coudary roads ...... 360 wine ditch to ditch unsurfaced. Feeder roa- -. 2.... wide , I, Village litk .. 16 wide , .O.W. but are adequate to The above will not meet the -,tandards of facilitate crop movement which is their primary object. 1 UagplicatiL 9- as! acOstL Nw CSU ). Cost ger juile Phase Amthra6E 361 120 Grader ...... 56 hours 0 14 I.RA D6 Tractor . . 2. 22 2.54 Wheel Tractor ..... 2.5 " 9 .5 Total cost per ile..... 135.53 4" wd rA 6. Cat. :ader .. 40 hours 0 1.4 56.0 157 " " 9 2.54 39. D6 Tractor ........ Wheel Tractor ,... 1.9 " " .5 96.83 Cat. LEtats 33 hours 0 t 1.A4. 13.1 " i 2.54 33.27 D6 Tractor....**..* -A Wheel Tractor *.... 1.6 " 0 .5 80.27 -Z- been allowed per 25,000 Based on the actual figures 56 miles has an apportionent acres, and a re-appraisal of roads has enabled follows:- 138.53 *...**** t 2,987 36' roads ..... 22 miles e t 96.83 .. 0...9. 241 roads ..... 16 miles 0 161 roads *.... 18 miles 0 80.27 ........ 25,000 Total cost (exclusive of owner cost) per acres..... 5,976 *... t..... 23,904 Total cost per 100,000 acres ..... 2. ROAD MAINTEA.E and will continue to The problem of road maintenance has arisen, as a definite policy increase, as the scheme progresses, until such time is laid down by the Malawi Government. maintenance, and the provision For this reason, a minimal factor for in Phase Il. has been allowed of motor graders to carry it out, to be covered at any one time It is calculated that the maximum area is 400,000 acres. the in time will be used for construction (fttA*The balance of working machines whe DsalaWaasa ranch and low input areas and as replacement Normal working time has, construction machines are out of action. financial tables. therefore, been allowed in the 30 BRI.DGES I was based on the estimate The original application for Phase 1,350 per bridge Their estimate was applied by the Ministry of Works. and they undertook to construct them. The density was based on 1 per different. 25,000 acres. The actual construction was very to t 4,700 in price and density Bridge costs ranged from t 3,000 dropped to 1 in 17,600 acres. The Ministry of Works was also unable commitonts. The reasons for to construct some of thee due to other increased costs and number are as follows:- may be upgraded, and it is hoped (a) The bridges are on roads that a local authority. It has therefore eventually taken ever by to increase standards from a been the policy of the Government higher standard altogether minimum for market produce transport to a with the inclusion of footways and safety rails, which, combined with for much of the increase rapidly increasing construction costs accounts that the M.0.W. under-estimated the in price, though it is conceivable amount of wing walling required. area, (b) The first phase was more broken than in general over the accounts for the increase in density* This will not be and are shallower where in general, rivers the case in Phase II, and more dispersed. is recommended for Phase II- Due to the foregoing, the following per 25,000 acres. (a) That density be calculated in 1 bridge be taken at:- (b) That an average actual cost of bridging I Bridge . costs t 3,500 ............ /- Construction Costs for Proposed Development. Actual -5 bridges in 88,000 acres - 1: 17,600 Projected - 1 bridge in 25,000 acres. Extra bridging necessary in first phase due to topography. Basic assUmption (on M.O.W. Estimate) L 1,350 Actual L 4,500 Future Projection 1 per 25,000 acres costed at 100 per running foot, overall average length 35' E 3,500 Future projection 4 per 100,000 acres 14,000 4. DAMBO (WATERWAT), CROSSINGS AND CULVERTING. In the original application for Phase I, 25 culverts at a cost of 40 per culvert, and 10 dambo crossings @ X 400 were estimated. In practice, much of the projected culverting was increased to dambo crossing standard, resulting in an increase in dcnsity of dambo crossings and dropping culverting to a negligible amount. Actual performance was: - Dambo cross density 1 per 1,400 acres. Cost C 420 Culverting Nil It was noted that some of the crossings had difficult approaches to be and in Phase II provision has been made to enable contract scrapers temporarily hired, to contend with such places. For purposes o'f Phase II development, the actual density of 1 per of labour and 1,400 acres is retained, at a calculated cost, exclusive transport but inclusive earth works, of E 420 per dambo crossing. Cost of Construction for Proposed Development 1 per 2,500 acres at L 400 Projected Actual 1 per 1,400 " " X 420 Costs: Materials L 180 Earthworks to approaches 2,400 cU yds. 0 2/- per cu.yd. L 240 E 420 Future projection requirement for 100,000 acres 71 crossings @ X 420 30,000 5. CULVERTING. In the next phase, due to numerous connections with main and existin roads, culverting will become an important factor. Calculated on actual planning, these will amount to 15 per 25,000 acres. Cost of Culvert: - 14 30" concrete culvert rings @ X 2 L 28 Concrete 30cu. yds, mass concrete at X 7.10. 0 . 225 Total (excluding labour and trasport) L 253 Total cost per 25,000 acres - allow L 3,800 Total cost per 100,000 acres (60 culverts @ E 253) 15,180 4- 6, 021. The original applisation for Phase I emrisaged the setting up of of a special drilling unit. This has not been necessary as the Ministry siting of boreholeS Works has been able to carry out the program*. The improvement in the has been very successful, and has led to a mesrable time that, wasen in particular, can spend an their farm. The original requiremest was i per 1,60 scres, In Phase I# has increased to due to conveniene ad .vailability of sites, this denzity reCoemetded in is I ini ,330 aes, In vies of the advantages derived, it The Ohase II that this density be firther inxreased to I in 1,280 scres. mile a three quawter reason for this is that it will ensure a borehole within of travel the inequalities radius of a farmer's holding, ad torn to minimise that must exist due to suitable siting and water availability. led to No ciourete aprons have bee constructed and this has has osused mad, puwdling dantage to well-heads, at preseat not serious.. and wastage. In Phase Il, it is and erosim, adjanent to the wells, and to water aprm around oa4h welo-head and proposed to construct a 20' x 20' oanwete lead ohanelling to a drinkine tr:Agh for samall stook, and to a washing area for the wll-users. Provision has also been made to modify the existing well-heads in this way also. The original projected cost was C 480 per borehole. The actual actual cost plas 9 134. 8. Od average cost was E 453.10. Od. In Phase II, the Od per borehole. per apron unit has been allowed, totalling E 587.18. This is detailed belowt Actual - constructed .72 (vithout apron ) and troughs An 453.10. 0 Average price per ocapleted uni Cozstruaticu of extra concrete apron 20' x 20' Sand I3 tons 0 25/- p.t. (including transport) 16,18. 0 10,10. 0 Bala"* 7 tans @ 30/-u 2.t. cement 2 tons @ 20/. per ot. 45. 0. 0 Reinforcing 4 B.R'., sheets 40 - 8. 0. 0 2. 0. 0 Conarete mixer 4 ways 0 10/- per doW Nails and shuttering etc. 34. 0. 0 Brickv.rk 12 sq rds., troughing 0 X 110. 0 per sq. yd. 18. 0. 0 134. 8. 0 Corison I t 480 per borehole projected figure Actual L 453.10. Od per borehole Average a.1al density I per 1,330 acres Projected req'Vemuit i per 1,670 amres FPture requiromoL 1 pew 1,280 acres (based an radiuo of - mile) 20 Boreholes per 25,000 acres 0 Z 587.18. Ga 1i,758. 0. 0 15,85 0. 0 Aprons for existing 118 boreholes 118 0 Z 134. 8. 0 Total cost per 100,000 aores inclusive of extra apons 62,882. 0, 0 ANNEX 20 LILONGWE LAND DEVELOPMENT PROJECT BASIC DATA - TRANSPORTATION, CONSTRUCTION MACHINERY AND OWNING AND OPERATION COSTS FOR CONSERVATION & PLANNING UNITS TRANSPORTATION 1. The existing light transport of seven Land Rovers, and heavy transport of six 5-ton lorries has been adequate for Conservation and Planning in Phase I. However, the necessity to form a building unit has caused a shortage of transport and a slowing down of the building programme. It has, therefore, been necessary to augment the transport in view of the addition of the building teams, the increase in acreage to be covered and the extra staff required. Some extra transport should be purchased towards the end of Phase I and the final figures for Phase II will be:- 8 x 7 ton Lorries ............ Building Section 1 x 5 ton Lorries (including service unit)*..... Conservation and Planning 2 Light Lorries ............... Conservation and Planning 10 Land Rovers................. Distributed as required to Senior Staff 2 Light Cars . Distributed as required to Senior Staff 2. The division of lorries should be flexible and they should be diverted as and when bottlenecks occur in either building or conser- vation work. In view of the extra construction machinery, a mobile servicing unit should be purchased for Phase II to contend with the extra field work entailed. HEAVY CONSTRUCTION MACHINERY MOTOR GRADERS 3. The total number of motor graders at the end of Phase I will be 12. Their actual performance of an average of 2,000 hours per machine is remarkable, and this hourage should be retained for Phase II. The actual total work load demanded for work in Phase II is slightly less than the 2,000 hours potential of each machine, in order to allow for unforoeeable delays and breakdowns. This could well be very necessary, as new replacement Caterpillar 120 machines have all broken down in under 2,000 hours with transmission failure and cylinder head trouble. This is being investigated, as is the possibility of purchasing alternative makes of motor graders. 4. In phase II it is proposed that the final figure will be a total of 19 machines - 15 for constructional work and 4 for the maintenance of roads previously constructed. Due to the addition of a 57,000 acre low input area, and the construction of Dzalanyana Ranch roads and firebreaks, maintenance units will be diverted to that work as required. BULLD07.ERS 5. The comments on hourage are as for Motor Graders, but it is con- sidered that Phase I was slightly under machined in respect of bulldosers. The same comments on breakdowns to newer equipment, unfortunately, also ANNEX 20 (Cont.) '2- apply, and whereas alternative motor graders are comparatively easy to obtain, this is not the case with the bulldosers. The final total of bulildosers in Phase I is 5. This will be increased to 9 in Phase II in order to ease the lead on the existing 5 and to contend with the increased acreage proposed. There is an urgent need for a rubber tyred shovel for dambe crossings and loading sand and aggregate. Variable costs will be as for Caterpillar D6 Bulldesers (Noes- The existing D7 and Shovel average out as 2 D6 Bulldosers.) WHINLUD TRACTORS AND AUXILLIARY EQUIP ENT 6. The present total of 10 units for Phase I has cope easily with all commitments and will be increased by only two units to a total of 12 in Phase II, to contend with the increased acreage. CURRENT OWNING AND OPERATING COSTS OF MACHINERY AND EQUIPMENT. CATERPILLAR 120 MOTOR GRADER. Tyres : 1300 x 24 x 10 ply Delivery Price 9087 500 Tyre Price Net Value for depreciation 8,887 Depreciation period/hours - 10,000 OwningCost per hour Depreciat ion: Nett depreciation valUe - 8,88 = 0,888 Depreciation 10,000 CAPITAL INVESTNENT Insurance - 0.6 7 Int er est - 6 % Annual Rate. Est imat ed annual usage- 2,000 hours. Tractor x Delivered Price 0.02 x 9387 = 0.187 1000 1000 Total owning cost per hour 1,075 Operating. cost per hour = 0,618 (i) Fuel: Consumption x cost 3.7 gals x 3/3id (ii) Lubricanrts. Engine: 0.02 gals x 12/7d =10,013 Transmission: 0.02 gals x 12/7d =t0,013 Final Drive: 0.01 gals x 12/74. ,t0006 Grease: - 0.08 lbs ,per hour @ 2/- per lb -E 008 = 0,040 ( iii)F-ilt ers: 009 - z 009 3 Every 250 hours @ 15/- each =X (iv) Tes: Replcement cost = 500 E .250 Estimated life~ 2000 (v) Repairs: Factor x Delivered Price _ 05_x 9387 = 460 1000- 1000 Total Operating Cost per hour 1,377 1.4 ) ___ ___ ___ ___ ___ __-(Allow 2,658 Total Owning and Operating Cost per hour OWNING AND OPERATING COSTS. VC6 fitted with F14,997 Machine Delivered Price Nett Value for Depreciation 14,997 Depreciation Period - Hours - 10,000 OWNING COSTS.. Depreciation: Nett Depreciation Value 2A4*997 9 1,499 Depreciation Period 10,000 CAPIT AL IINESTMElfr' Annual Rates: Insurance .6 Interest .6 % Estimated Annual Usage: 2,000 hours. Factor x Delivered Price 02x 14997- . 0,300 1,000 1,000 TOTAL OPENING COST PER HOUR. E1179 OPERATING COST PER HOUR. (i)Fue Consumption x cost 5 gals x 3/3.id 0,835 (ii) Lubricants. Engine: .03 x 12/7d - E 0,019 Transmission: .02 x 12/7d - 0,013 Final Drive: .01 x 12/7d - 0,006 Hydraulic: .02 x 12/7d - 0.013 ... 0,051 Filters: 3 Every 125 hours @ 15/-d each .... 0,018 (iii) Repairs 09 2 11500 .... 1 1,575 1000 SPECIAL ITEMS Tips - Z 18.10.Od - 600 hours .... 0,031 Shanks3 - Z 129.0.0 - 500 " --- E. 0,026 Total Operating Costs per Hour E " 2,536 Total Owning and Operating Costs per Hour .... E 4,097 8. Transportation Costs. In the light of actual experience in Phase I, the following transporto.tion costings have been evolved for Phase II : - annum (1) All vehicles are based on a mileage of 15,000 miles per acres. and not on a gross mileage per -type of vehicle for 10,000 (2) Variable Costs for miles are: - (i) Land Rover all types I/- per mile (ii) 5 ton Lorries (Diesel) - 1/3 per mile (iii) 7 ton Lorries " - 1/6 per mile ANNEX 21 MALAWI LILONGWE LAND DEVELOPMENT PROJECT Bin C as ru iv Sectio Administrativt and Market Centres l. In Pha' I it was recoamended, with the agreement of the MI istry o "orks, that all major construction such as bridges, house bu -ding tc. should be contracted out to the Ministry of Works. Rowe* -, due t other commitments the Ministry o- Works were unable to carr: out the 1p gramme required. It also becam) apparent that the rapid 6 elopment o markets was essantial, and this Tas undertaken by the Farm( a' M.rketing Co-Operative of Malawi, b-t construction has proven low, oa' r elaborate and exersive. 2, A further problem has ocenrred in that in the original oject a lication provision was rad, for large number of temporL houses tc be purchased, and moved as requi ed. This did not meet rith the al royal of Malawi Government, whose policy is to build permanent at tctures. 3. As a result the alredy over-bur ened Senior ConservatJ in and PL ating Officer was forced to engage 4a a direct labour cc Struction pri j-amme, which he did very successfully. Nevertheless, t was fr at netPssary to engage a Site Engineer/Building SuperviL v and V a a conztruction unit, Th'is will be regularised in Phs e II and t i armation of te&. is apptded herewith:- (C In overall charGe - 1 Site Engineer/Building S evisor (b . 1 Cler: ) I Foreman ) 11 Artisans ) General Work e, Pi ject H.Q. 2 Labourers ) 3 Costing Clerks) (c) 3 Bul agtr3Puctioa Groups ~each cosjd of: 1oFoean ) I Artisans )Houe Building 4 Artisans' ) Matss * Aarket Building z4 Lab urers } 2 Paint rs ) (d) 1 cod-agsed oft 1 Finior Foremat 6 artians 25 Lbourere (e) Dambo Water ) and Culvert Teams 8 Team. cach oomposed of:- 1 IBricklayer 12 Le rers (with 4 Bricklayers extra to support wb a needed) ANNEX 21 CONTINUED -2- 4. Transportation is at present pooled with other Conservation and Planning Transport, but towards the end of Phase I and the beginning of Phase II transport should be increased to provide a self-contained transport unit composed of:- 3 x 7 ten Flat Lorries 4 x 7 ton Flippers 2 L.W.B. Land Rover* for Senior Officers This is essential, as peak periods occur causing bottlenecks, the particularly the case when collecting bricks prior to the onset of rains. Administration and Market Centreas 5. The original application for Phase I envisaged:- Market Centres built by the Farmers' Marketing Board and Administration Centres constructed of Prefabrica- ted Housing which would be transferred from site to site as development progressed. 6. In the case of Market Centres the F.M.B. have proved too slow and too expensive in their construction programme and Government building policy precluded the erection of prefabricated houses. 7. There is not, therefore, any data in the Phase I Application on which to base the Application for Phase II, or sufficient actual data in the Phase I programse so far to use as a comparison. For the basic assumptions the Phase II Application, costing assessments have been taken in the field, on the administration centres in the process of construction. A density of I Centre per 20,000 acres has been retained - as in Phase I. gpitil. Develo sent Costs for Adinistrative and Market Centres 8. Density -1 centre per 20,000 Acres. rM 2 Houses Mod 30 for Development Officer & Market Master ....... Prefabricated on concrete plinth with G.C.1. roof two Bedrooms, 1 Dining-room, 1 Lounge, B/Room, Toilet & Kitchen, @ Pounds M 2000 each. 4,000 8 Houses PH Type, semi-detached, for Technical Assistants. Brick with G.C.I. Roof. Two Bedrooms, 1 Living room with external Kitchen, !hower and Toilet, @ Pounds M 1.000 per . .. 4,000 1 House PH type detached for veterinary assistant 750 1 House Type 2Z for Junior Office". Brick with G.CI. Roof, three Bedrooms, 1 Living room, Kitchen, Shower and Toilet @ Pounds M 1,000 each ................. 1,000 8 Temporary Houses for Minor Employees. Mud and Timber with Cement Planter, Grass Rorf and Metal Windows. 3 Rooms, External Toilet @ Z M 100 each.............. 800 1 Office Block. Brick with G.C.I. roof. 3 Offices, Reception & Meeting Rooms............................ 1,200 ..... e........../ -3- I Market Block Main Building Prefabricated Metal Frame & G.C.I. with Brick walling for Office and Shops. 70' x 40' Steel Framework, G.C.T. Roofing and Cladding., .............. ...........- ... ~**... 2,000 Brick Walling .. *...9.......... -9 8.9..... 999.09..*. 280 Concrete - 64 cu.yds. @ Pounds M10 per cu.yd.......... 640 Office and Shop Walling and Fittings.............e.. 1,500 Store Compound Fencing ... 9....9 o.. 09.8.... 80 4,500 Admin. Centre Fencing, Office Furniture and Equipment .. 9....8. 9 9.99...99... .99* ... 500 Site Clearance *...........99.9.9.89 .99.90....99G9 *.. 150 Cattle Dip with collecting and draining yards, dip store and roof.......4.9....00.. 99...0....*..*99 Total Cost for 20,000 acre Block ..................... X17,900 (These figures are exclusive of Labour and Transport.) Total cost per 100,000 Acre Unit ..... Z............... 89,500 * There are four existing markets available in Phase 2. Therefore, for purposes of financial tables the total figure can be reduced by 1 Market Unit and Market Master's House. A sum of 6,500 per 100,000 acre unit. Therefore total cost per 100,000 acre unit will be 89,500 less 6,500 L83,000. - e-e--e-m e-e-- - - Annex 22 MALIAWI LILONGWE LAND DEVELOPMENT PROJECT RE-AFFORESTATIOR 1. Timber supply assumes greater importance in Phase II due to an improvement in the tobacco marketing situation. Since the tobacco demand is largely of the Dark Fired type, lack of fuel could be a serious stumbling block to expanded production in the future. Added to the foregoing is the rapid denudation of the existing supplies by the increasing population, and the fact that, as the Capital comes into being, extra fuel will be required to supply it. In summary, it is considered that within 20 years all existing indigenous firewood in the Project area will be virtually eliminated. 2. As land consolidation and planning comes into being, an area of landiadjacent to village land will be set aside as Customary Land. It is hoped that, with the impetus of Forestry Extension Staff, these areas will be planted to trees on a Village Communal basis, and the protection and allocation of the resulting timber be carried out in this basis also. 3. This must be supplemented by house holder plantings in the vicinity of a grower's holding and, should the pace of planting be insufficient, by mechanization. It is accepted that in the 4 year growing period to the first thinnings, that indigenous timber will be used. The oalculated requirements are based as follows: - (i ) A family (irrespective of size) requires a minimum of 8 cubic yards -f timber and fuel per annum. * (ii ) Family 4ensity is taken at 1 family per 10 acres. (iii) The overall area of Phase I and II is 589,000 acres. (iv ) That the overall quota of cured tobacco leaf will be 10,000,000 lbs per annum for the whole scheme. (v ) That 100 lbs of cured leaf requires 1.5 cubio yds of fuel to cure it, (vi ) That the maximum average yield of Gmelina Tree Plantation be 22 cubic yards per annumover a period of 20 years. The demand therefore, per 100,0XU Acres per annum is: - (a) Family Domestic Demand: - 10,000 families and 8 oub. yds. 80,000 on.yds. (b) Fuel for Curing: - 2,000,000 lbs tobacco X 1.5 cu.yds. 30.000 cuade 100 318 110,000 ou.yds e Facts obtained from Forest Department Survey. 4. Therefore, the planting requirement, based on 22 ou.yds. per acre average is 5000 acres per 100,000 acres. (1000 acres per 20 000 Acre Development Unit). The above amounts to acre per family. 5. An assumption is made that 50 % will be family planted and 50 % communal hand planted. The Planting Costs are: - (1 ) 50 Acre Block using hand clearing and hole digging. Hand clearing and cleaning @ 1. acre 1 s. d. per day @ 2/4 per man day 25 117-00.00 Hole digging @ 60 holes per day 20 sq.ft, per hole @ 2/4 per man-day 210.00.00 Seed @ 1 lb per acre @ 1/9 per lb. 3.15.00 Polythene Tubing @ 2/4 per day 31.10.00 Weeding 108 man-days @ 2/4 per day 12.10. 00 Fertilizer 20/20 @ 25 lbs per acre 33.07.00 Fencing & Firebreaks 1i miles @ 1OO per mile 125.00.00 533. 2.00 Cost per acre k 10. 7. Od (ii ) Family Planting (1 acre) Clearing and cleaning (value E 2. 6. 8 own labour) NIL Tree hole digging (Value E 4. 5. 0 own labour) Seed @ 1/9 per lb per acre 0. 1. 9 Polythene Tubing 0.13. 0 Fertilizer 0.13. 4 Total cost per acre 1. 8. 1 6. On the above basis, the required input necessary over both Phase I and Phase II will be: - (i ) Total acreage required for re-afforestation on 589,000 acres (To nearest 1,000 acres) : - 29,000 acres. (ii ) Communal planting (suggested as a long term credit recoverable as a sales cess): - EM s. d. 14,500 acres @ K 10. 7. 0 per acre (To nearest E 1,OOO) 150,000. 0. 0 (iii) Family planting (suggested as a medium term credit, 14,500 acres @ Z 1. 8. 1 per acre 20,000. 0. 0 (iv ) Total cost exclusive of Forestry supervision and transport (already included in other annexes 170,000. 0. 0 (v ) Additional Recurrent Cost in policing and firewatching amounts to one man per year per 50 acre block or, Z 1 per acre, per annum. (vi ) For simplicity in bringing the foregoing into the financial scales, the Project Unit Basis is being used , viz: - (a) A Unit requires 500 acres by Z 1.8.0 in credit (see (iii) above) totalling 700 per Unit in credit. (b) A Unit requires 500 acres in 50 acre blocks @ 10.7.0 per acre plus X 4 per acre recurrent over 4 years which is 500 acres X 14.7.0, totalling Z 7,175 per Unit. 7. It is suggested that the E 7,175 per Unit (f 208,000 overall within the Project), must be recovered by a small cess on the tobacco crop. Half a penny per pound cess equals L 20,830 per annum, or full repayment over ten years, (excluding the interest element). ANNEX 23 MALAWI TABLE 1 LILONGWE LAND DEVELOPMENT PROJECT SIIM1ARY OF CAPITAL COSTS (PROJECT) - E'O00s ITEM PROJECT YEAR TOTAL GRAND TOTAL A (Previous items) 1 2 3 4 Administration 20.3 4.7 3.9 3.5 32.4 Conservation A Planning 244.0 154.6 183.8 154.2 736.6 Credit 3.0 3.0 3.0 9.0 Land Allocation 1.1 .4 .4 .4 2.3 Surveys 11.3 5.2 5.2 5.2 26.9 Vehicles 89.0 33.0 42.8 81.4 246.2 Housing/Buildings (Project) 310.5 96.7 99.0 77.9 584.1 Ozalanyama Ranch 94.2 64.6 33.7 18.8 211.3 Credit (Revolving Fund) 144.0 105.0 140.0 115.0 504.0 Credit (Fertilizer Subsidy) 36.0. 30.0 - 66.0. Total 'A" Items 953.4 497.2 508.8 459.4 2418.8 8. (Additional Items) Fertilizer Stores 62.8 28.4 28.4 28.4 148.0 Re-afforestation 57.4 50.2 50.2 50.2 28.0 Health 13.2 9.6 17.3 4.0 44.1 Total 'B" Items 133.4 88.2 95.9 82.6 400.1 Total *A" and 48" Items 1086.8 58$.4 604.7 542.0 2818.9 2818.9 SUMMARY OF RECURRENT COSTS (PROJECT) - EM'O0s C. (Previous Items) Administration 76.4 77.0 78.1 79.0 310.5 Animal Husbandry 17.3 19.2 24.5 27.3 88.3 Conservation & Planning 231.7 234.5 238.1 238.8 943.1 Credit Adinistration 22.9 30.2 38.2 42.3 133.6 Credit (Machinery) .3 .8 .- 1.0 2.9 Land Allocation 18.5 19.8 19.8 19.8 77.9 Surveys 28.7 26.5 26.5 26.5 108.2, Extension and Training 110.4 136.3 159.5 171.0 577.2 Vehicles 78.8 85.1 88.0 89.5 341.4 RuiTdings (Maintenance) 14.9 25.0 28.0 31.1 99.0 Total OC"jtems 599.9 654.4 701.5 726.3 2682.1 0. (Additional Items) 1i 7 hI MALAWI ANNEX 23 LAND DEVELOPMENT PROJECT TABLE SMARY OF RECURRENT COSTS (PROJECT) 0'000s (cont.) ITEM PROJE CT YEAR TOTAL GRANO TOTAL 1 2 3 4 Fertilizer Storage 4.9 7.1 9.4 11.6 33.0 Total 000 Items 8.6 11.3 20.9 25.6 66.4 Total 'C' and "DO Items 6m.5 665.7 722.4 751.9 2748.5 2748.5 5. F.M.B. Loan Bulk Maize (Groundnut Stores) 110.0 165.0 165.0 165.0 605.0 Groundnut Sheller &Building 40.0 - - - 40.0 Markets 26.0 26.0 26.0 26.0 1N.0 Total F.M.B. 176.0 1910 191.0 191.0 749.0 749.0 GRAND TOTAL (PHASE I1) 6316.4 ------------------ ------------- ------------------------------------------------------------ --- ------ --------- ---------------- NOTES: - 1. "Additional Items' are those not considered in the tMEA/ADS Mission Report 2. The contingency element has been taken into account in all calculations and therefore has not been shown In isolation, it being understood that managerial savings within one section may be transferred to other sections In the event of unexpected situations arising. 3. Funds for ranch cover capital costs and annual operating balance. ANNEX 24 TEX D3LOMEI? OF WSLTR CETRE SRiCEB IN TE AS, OF T3M LILONGv LAAND !M ifld E PROJ1T. (PREPARED BY 14INISTRY OF HEALTH) Introduction nature It has been generally accepted that major Agricultural Projects of this schems, and that such integrated development should should be planned as integrated pay particular cover not only the development of physical resources but should also resources; the intention being to derive the attention to the development of human aspect of the scheme. To this end it maximum possible benefit from the agricultural is essential that a carefully planned programme of 4mprovement of health measures, as part of the overall project; both curative and preventive, should be inoorporated may bQ enabled to make the greatest so that the people living in the project area deriving the possible contribution to the success of the project, thereby themselves maximum benefit from it. mainly to theiest of 2, The project area is some 500,000 acres in ext nt, and lies and main trading centre of Lilongwe Town, which is the Administrative Headqua-ters construction at .t present under the Central Region. The new capital of Malawi is 250,000 people- Lilongwe. The total population of the project are% is approximately each unit, containing Under the pro ject the whole area is divided into 43 units; and and trading centres. some 10,000 persons, will be developed around small townships whole project qrea into Fbr health planning purposes it is proposed to divide the five main sections, each dealing with a population of approximately 50,000. A recent survey carried out in a typical district o4 Ralawi showed that 30% 3. or severe malnutri- of children under 6 years of age were suffering from modera' as .n, gh as 62%. These tion. Between the ages of 12 and 13 months the figure was After o0nutrition as a are among the highest figures so far reported in Africa. "'darrhoea", direct and indirect cause of death and disease in childhood come and measles. Adults suffer from malaria, a variety malaria, respiratory infections, from leprosy, tuberculosis of worm infestations, especially bilharzia, as well as The infant mortality rate is and the varied consequences of injuries and burns. 30 and 50 percent of all children reckoned to be about 160 per thousant; and between die beford reaching the age of 5. Health prolejs! Mission Hospitals, two Government 4. The project area is at present served by four is at present very Rural Hospitals and two Government Rural Health Units. There preventive work carried out in the rural areas, nevertheless the Ministry little emphasis on such now placing an increasing of Health and Community Development is to it the Vinistry work in rural areas. Within the limitation of funds available in the Southern on a small soe has been preparing plans to embark, initially health units, construction of Region, on a proaramm4 r, i.iabilitation of existing proper staff tl! provision of better facilities and equipment to those health measures, (NCR work, unite, a greater emphasis by those units on preventive of additional staff wheore health and nutrition problems, etc.) 1h1 provision training "f existing staff necessary for these units, and the trainir, a-d refresher : #ura__principal aor aim of in preventive work and in new teohni of true rural such a programme in ' ic" ovolution o,. -xi ing dispensaries into she health oertres, and to improve the supervisory etr- - The pilot Preventive Health ProLjLSt. the Mnistry in 1968, to effect 5. To this end a pilot project was undertaken by improvemenits on the lines suggested in pars,~ above - to exiv sing health units in a selected area (The Lower Shire River Valley). The ascieveo'ients, difficulties, b.- ve recently been summed Up problems and conclusions arising out of that project Heal a Pro ject. Since the conclu- and evaluated in a Report on the Pilot Preventive project, it is of interest Sion of that Report is very relevant to this particulv Report- *It s abundantly clear that the here to quote the final paragraph of that o preventive health to the pilot project has provided the much needed emphasis oc arned the training and rural health unit, and has also given to the staff ac dingly the intention that role. It is encouragement necessary for their new rh Ministry of Health will every future development plan now being prepared by in the programme." From this it be based on the ideas and experiencv gained will be apparent that the proposals made in this sLmis .on for the development of health centre services in the area of the LilongVL Land ievelopent Project do not has start from nothing - they are the logical extengizu, of the development which already been started in the pilot pro ject. -2- Future Plans for Improvement. Devel- 6. Following upon the Pilot Project the Ministry of Health and Comunity opment has already put forward, as an interim measure, a short two ea'r project for the development of health centre services in the Southern Region; pending oun- sideration of a major long term 15 year Development Programme for the whole country. This long term programme envisages a very Large increase in the number of Health Units available in rural ar1 s, with the intention of providing one such io a unit for every 10,000 people (s olposed to the present position where there unit for every 20,000 persons). This plan would of course require massive capital complete. In addition ezpenditure to implement and would take at least 15 years to a very greatly increased teourrent budget would be required to meet the additional recurrent expenditure that would result. Froposed Interim PoEML of 7. As mentioned above a proposed two year interim project for the development health centre services in the Southern Region has already been put forward. That of the peripheral health project is concerned with the upgrading and improving units in the area. As part of that project it is proposed to re-designate existing E are the proper health centre peripheral units as DI,F.G and H units. Units D and and sub-centre which it is hoped to create, Unit F is the normal existing dispensarZ Unit 0 is the existing District Council Maternity Unit and Unit H is the proposed mobile aid post. More detailed descriptions of these units are given below. be a fully a) Unit D. (The Community Health Centre) This it is envisaged will devet'ehealth centre which will not only provide a wide range of community staffed services, but will also supervise the smaller centres nearby. It should be Nurses (two of whom should by a Clinical Officer, a Medical Assistant, 4 Enrolled be enrolled midwives), one Health Inspector, one Community Development Assistant, a driver and four servants (one of whom should be female). The main role of the Clinical Officer will be to supervise the work of one to five "-ype sub-centres, together with District Council maternity units and any mobile clinic that may be Community Health Centre will have its own attached to the health centre. The possible. It will also have its own vehicle and drivir to make this supervision about 20 general beds. The main purpose of maternity unit of 12 beds, as well as to supervise the the Health Inspector, who will be attached to the unit, will be Health Assistants in neighbouring E type sub centres. The Community Development workers of nearby sub centres. Assistant will Mkevise supervise the home-oraft is designed . (The Health Sub-Centre with Maternity Unit) This unit than b) M scale the D limited to provide a wide range of health services on a more one or two It will have type health centres, and has no supervisory function. health services provide general beds and about twelve maternity beds, and will for about 10,000 people. that will be given o) Unit P. (Existing Dispensaries) This is the designation a Medical Assistant and a to the common existing dispensary, staffed only by dressings and simple hospital servant. At present most of these can only offer child welfare clinics medication, although as increasing number are now running on one day a week. will be given d) Unit G. (District Council Maternity Units). This designation which they build in the to existing District Gounogs Units and to any new Units built in close future. Wherever possible however such new units should be association with an F type unit, to enable it to be then upgraded to an E type uvit of the kind described above. a room, borrowed for e) nit. (The obile Clinic Post). This will merely be can run a mobile clinic the purpose, where a visiting team from a D type unit for the once a week. A simple covered waiting area may have to be constructed for the construction of purpose in local materials. L100 has been estimated waiting areas of this kind. A homeoraft warker, posted to the village in and make the necessary arrange- question, could help with the running of the clinic ments for it. Methods b which ealth Units will be improved. in the following 8. Rural health units (existing dispensaries) will be improved way: will undergo a) The staff from each unit to be upgraded or improved refresher training. l phasis in training will be on health education, maternA aA child care, nutrition and immunisation. b) The Ministry of Health and Community Developont will increase the nmbers of auxiliary staff at t.he centres to be upgraded. Additional staff required will include Enrolled Nurses, Health Assistants, idwives, Community Development Assistants and Home- craft Workers. c) Additional buildings and staff houses will be added to the exist- ing units where necessary. Self help will be enocouraged as far as possible particularly in the form of staff housing. d) All units to be up-graded or improved will be proved with adequate equipment. a Develojpment cf Health Centres i. Lilongwe Laud Project Development 9. It is accordingly proposed that any development of health centre services in the area of the Lilongwe Land Del.elopment Project shall be along the general lines of the inistry's policy as outlined in paragraphs 7 and 8 above, so as to fit in with the existing dsvelopmrnt project in the southern Region and with the long- term development programme env17aged for the whole country. The target which has been proposed for rural health sc'vioes in general is one 2 type health unit for every 10,000 population, with one daor co+eie (D typ) for every 50,000. For this particular d(evlopment area, therefore, what would ideally be required are five major centres (D), eaoh with four sub-centres (E type) i.e. one sub- oentre to eadh pro je4t unit. At present this area is very poorly served with existing rural health units, in comparison with some other parts of the ceatry. To construct a new E type sub-centre for each project unit would not be practicable, since the resultant recurrent costs would be far too high for the inistry to meet. Similarly the establishment of five y type health centres would not be feasible because of the high recurrent costs that would then arise. 2etails of such Dovlop nt. 10. What is proposed therefore is that an existing health unit is chosen from each of the five main sections to act as a D centre. In one section this is a ission Hospital and in another section there is in fact no existing health unit at all so that a complete new health unit will have to be established. These health units although acting as D type centres will, in some oiroumstanods, have only the basic facilities and ltaffinr of an E type sub-oentre, although they will be provided with some additional staff and facilities in order to carry out mobile Ainic services. I this connotion it is envisaged that, in each of the five sections the main atatio health centre wili undertake ,obile clinic services at all other priject unit centres in its -. ea. These will be carried out once or twice weekly depending on the size of the section and the facilities of the main hea th centre. These clinics wil provide general out-patient services, under-fi es child alini s, anto -nata olinic. :health talks, nutrition demonstra- tions, ii nnisation proeramnes and other preventive services. The one Mission Hospital vhich ie to aC as a D type major centre will be specifically asked to run such obile ol nios to i .11 it cntre. For the sake of uniformity no charges i -old f mLs for ervices t the unit centres, and this will involve a fixed graet bein naci available to the lission concerned to cover the additional recurrent costn involved in -rrying out these mobile clinics. Mobile Cii i_ Centrea 11. It it3 proposed that a building (costing approx. L600) be available single at all the project unit centre to be used once or twice a week for holding olinics. This building should be directly adjacent to the comunity hall, which can be sao used on this day for health talks and child clinics, thus increasing the facilities at the unit on this particular day. It is also proposed that special homecraft workers be based at these units as the only resident staff. A low grade house costing approx. E200 (local style with tin roof) should be available for her. Her job would be to undertake nutriton ednoation ahd home craft training at the centres, holding classes in these 4ubjects. She would pay special attention to mothers witd malnourished children, and would visit them in their homes. She would assist in elinics - partioulaa.y at the under-fives Yinio, and specially in the nutritin demonstrations. Lite would also be re nsible for caring for a small demonstration vegetable garden and the chickew kept ' the centre. In addition she should be able to administer occasional first aid trec "neut when needed. She would be under the day to day supervision of the Unit Develipment Officer at the unit oentre, but her work would be directed by the health . Frofeoaional supervision would be from the DeVartment of Community Development. -4 'atablihmcnt of five main secti:onz an:c pecific health Development in each. 12. A,- already mentioned it i intendied thAt the pioject area shail be divided, for the of he ltii lanuing, into five main euctions, each dealing 1 ith a Copation of 5U,000. These five sdctions, together with the 50proximtely specific devels ment of health facilities in each, are described below: a) 2ectioniNo. i. South This section includes units .4, 23,25, nd 6e low iniut area to o, the south of the whole roject area. in unit 24, there are tWo existing he;-lth units, .:itundu tural Hospital (Govt.) -nd Alale Mi,:sion ost.ital. Thc latter is ituted come distance from a )roject unit centre although it is substantial hosoitl. Mitundu, which is at a unit centre, is proposed for improvu:ient to functi .n as the main unit of the section, althoagb it is proposed to retain its cla.sific tion as an . unit (i.e. no increnme in inpatient accommiodation is proposed). Its outpati:nt facilities only s4ould be improved. It shouid be sapicd with a land- rover to undertake mobile work A, the unit cen-.res 23, (Mkwinda), 25 (simon) ind 4 (Dickson). Thee sould be undertaken twice weekly. Additional staff at Mitundu will be required to undertake this, consist- inC of a hedical Asistant and Lnrolled Uurse (Midwife) or conmunity nurse for whom housing will be required. A homecraft worker should also be emytoyed locally to assiot at ;itundu; and a driver will also be required. Both of thLe .ill also require housing. Three clinic buildings will be needed at the mobilu centres 23, 25 and 4 together with three houses for hoecraft workcrs. b) Section No. 2 Central This area of this which is 1 rger than the others comprises %cotion Units 9,8,6,1,2,3, and 5. Units 9 and 2 are already provided for. In Unit 9 is located _Cbit eLzo, a Govt. Uni-i, sittuatei not at tin. utit centre but at the agricultural station; and Malingunde, a Mission centre is located in Unit 3. These health units will provi e health faciiities for their project unit areas only. Likuni Mission Hospital lies at the ed' e of tii-s area, to the east, and it is proposed t1it this hos,.ital be asked to provide the :iobiie services at units 3,6,1,2, aid 5. A vehicle Sould be needed and a grant towards the recurrent costs of transport, sorviceL nd .ru, s would need to be ipde 2: that free 'qervices can be provIded al tte unit centres. Five buildings would be roquireo. for the mobili cli.ic centres, 3nd five staff houses for the homecraft workers. Clinics should be visited once weekly. Also a small SAM (1500) Wuld be regqired for iproveents to Mzalingunde to bring it up to the standard of a "od L unit. This !ection compri.es Units 29,28,O0,7 -ad 10. The only existing heAti; unit in t,. area i Chilcka (a Govt. :.ientary) A unit 29. Just oa.side the project area to the vest 5 ilee from Chiloka is {o 'ital with -Ood in-1pAticnt facilities. jission Kanitete It i. trere- fore rooced th t Chiloka be upj:raded tG a full uait, and be provided with [he dditIlonal 1tAf1 n frciLties to oar out the mobile work. This i iinvolve c tenins d improvemente to t-e ,u4-pat.ent dispensary build.ing, amointing to s me O, ; the c, osAruction of a maternity unit 2,o0h rd additional st3ff 3,200 (total c.ital at -ong '6,2u0). The additionail staff needil fur Chileka wouJ.d comprise a second Medical Asistant, i nnrolled Purse, 2 Midwives, 1 Health Assistant, .ad a homecraft worKer, driver -ind a lard attoniant. Four mobile clinics would be held ieeklt 'it units 28,30,7 nd i for which buildin _'should be made availAble. sour hUmecz ft orkero hould be ,oted to e nit centres in addit ion ,o Je one at Chileka. d) Section No.4. Norta West This eotion includes units p7,26,14,12,11 and 21. 11:isting health facilities in the aroa are KabuduJa Rural HosLital (Govt.) at unit 27, and a hospital at Nambuna in unit 21. This leaves units :6,14, hission 12 and 11 without facilities. Kabudula is at prosent a ;ood D health centre iith ezxelient o:lities. The only addii.onal requirement is an estended covered waiting area for the out-patient department. To provide mobile services it requires a vehicle and 2 additional staff, i.e. a MiAtJl Asistant and ,nrolied 1.Aidwise (or Uokmuii-ty Nurse); tol;ether with a driver. AIsO the necescary houeing. A houre for a hoaiecraft wurker Lould also be - rovided at the centre. In Jdition mobile clinic buildin wi - be required at the four unit cenires, n-mely 2c,14,12 -nd 11, together with 4 homecra.ft workers nd their ho usi nrg. e) Section. . North .ast. This Section omofrises units 17,13,16,15, 22 and 20. There are no existing facilities in tis area. It is therefore proposed that a new unit be built at Pngwantwa (Unit 17) with mobiln facilities to cover tlie other 5 unit centres. Inpatient faciiities are availa- ble at Lilongwe General Hosital approximately 12 miles away. A map sheling the whole project area, the five sections and their dep.endent units is attached to this submission. Siip2rvision of Project. 13. Overall supervision of the project, and hospital referral faoiLities, will be provided by Lilngwe General Hos.ital which, although not in the project area, will be of easy accesb to all health units. As the project advcnoez a special Senior Medical Officer, with p-ublic health qualificitions, should be based in Lilongve to provide ove all supervision of all health dcvelopfnent programmes in the Central Region including the Lilongwe Land 1)evelopment !roject. Phasing of the Programme. 14. The health pro ramme should be phased to corresp;ond with the u ricultural project phasing. A; the agricultural project is already underway in Section No. 2 and part of Section No.1, it is proposed that in the first year these two areat be initially ieveloed; and that thereafter development should progress to zections 3,4 and 5. The establishment of the main centre and its building improvements should precede the building of iht dependent unit centres. The whole project will be p.ihased over a four year period. Financial Require; ents. 15. Details of the necessary funds th.t would be required to implement this project are set out in a separate attachment to thio submission. Requirements for Annex 24) FINANCIAL REQUIRE0ENTS FOR HEALTH FACILITIES (Finan ial C A P I T A L RECURRENT 1971/72 1972/73 1973/74 1974/75 1971/72 1972/73 1973/74 1974/75 SECTION I 1.Capital a Building improvements to Mitundu Out-Patient Department 2000 . - - b Staff Housing (2 TA Grade 0 500 each & 2 Low Grade @ E250 each) 1500 - - - c 3 Clinic buildings at Units 23, 25 and 4 together with Homecraft workers' houses 0 800 per unit 2400 - - - (d) Vehicle 1400 - --. TOTAL 7300 - - 2.Recurreht a Vehicles runninj' costs 500 500 500 500 b 3 Homecraft workers @ E75 each 225 225 225 225 (c Additional staffing (Medical Assistant, enrolled nurse, driver) 850 850 850 850 (d) Additional druq 200 200 200 200 TOTAL -1775 1775 1775 1775 SECTION 2 1.Capital (a) Improvements to Halingunde 500 - - - (b) 5 Clinin centres and housing for homecraft workers @ 800 per unit 4000 - - (c) Vehicles 14o _ - - - TOTAL 5900 - - - 2.Recurrent a Additional drugs and services (Grant to Likuni) 1000 1000 1000 1000 b Vehide running costs 500 500 500 500 c Homecraft workers 3 75 375 375 TOTAL 1875 1875 1875 1875 -2- C A P I T A L R E C U PL R ~ F T 1971/72 1972/73 1973/74 1974/73 1971/72 1972/73 1973/74 1974/75 SECTION 3 1. Capital. (a) Improvements to Chileka Out-Patient Department, Maternity n 6200 - and staff housing (b) 4 Clinic Buildings and homecraft housing at 800 per unit - - 3200 - c Vehicles ._- - 1400 TOTAL - 6200 4600 2. Recurrent (a) Staffing at Chileka (i) 1 Midvrife, 1 enrolled nurse, 1 W7ard Attendant - 570 570 570 (ii) Mobile Team (1 Medical Assistant, 1 enrolled nursedriver) - - 750 750 (b) Additional drugs ( 150 per clinic) - - 600 600 (c Vehicle running costs - - 500 500 (d 5 Homecraft Workers -- 375 375 TOTAL 570 2795 2795 SECTION 4 1. Capital a Improvements to Kabudula Out-Patient Department - 500 - - b Staff Housing - 1500 - - c 4 Clinic Bu$ldings and Homecraft Workers houses @ 800 per unit - - 3200 - d Vehicles - 1400 1 - I TOTAL - 3400 3200 - -3- CA P I T A L R E C U R R 2 N T 1971/72 1972/73 1973/74 1974/75 1971/72 1972/73 1973/74 1974/75 SECTION 4- Cont'd 2. Recurrent (a) Additional Staffing at Kabudula (Medical Assistant E350, enrolled nurse 250, driver 150) - - 750 750 (b Additional drugs(E150 per clinic) - - 600 600 c Vehicle running costs - - 500 500 d 5 Homecraft workers - 375- 3 31 TOTAL - - 2225 2225 SECTION 5 1. Capital a New E Unit at Mngwangwa and housing (basic) - - 8000 - Additional Staff Housing for IVMobile Clinic Staff - - 1500 - c 5 Clinic Buildings and Homecraft workerst houses @ 800 per Unit - - - 4000 TOTAL - - 9500 4000 2. Recurrent a) Cost of normal unit (Staff and drugs etc.) - - 2800 2800 b) Additional Staffing - -- - 850 c) Additional drugs - - - 750 d Vehicle running costs - - - 500 e Homecraft orkers 450 TOTAL - - 2800 5350 SU:U Y Section 1 7300 - - - 1775 1775 1775 1775 Section 2 5900 - - - 1875 1875 18;5 18 5 Section 3 - 6200 1600 - - 570 2 2 5 Section 4 - 3400 200 - . - 225 2 25 Section 5 - 1 - 9500 4000 - - 2800 5350 GRAND TOTAL 13200 9600 17300 4000 3650 4220 11470 14020 MALAWI--LILONGWE LAND DEVELOPMENT PROJECT HEALTH AREA 14EALTH AREA No.5 No. 4 (NORTH EAST) (NORTH WEST) ANlmbumal UNIT No.26-... UNIT No.21 UNIT No.20 UNIT No. 22 UNIT No. 14 G N UNIT No. 27- Kabuduia UNIT No.15 UNIT No.17 HEALTH AREA UNIT No.11 ... o. 2 .UNIT No.12 . (CENTR AL) .00, IT No. 13 UNIT No. I 11 T N o. 28 F* LILON GWE - - UNIT NO UNIT 8 Chitedze CAPITAL CITY UNIT No. 29 "NTN. UNIT No. Nam itate Lk -UNI No. 7 HEALTH AREA Chileka No. 3 (SOUTH WES!T) NIT No.6 UNIT No.2 UN IT No. 30 UNIT No.5 0 2 4 6 BMiles 0 :Malingunde -&=---==3[]UNIT 'No. 23 SCALE UNIT No.3 L7:: Mlate ENEG D: 0 Mitundu UNIT No. 4 e UNITNo. 24 ~XISTING: M ission - -- - ---- Govenmen Government-------- _ -UNIT No. 25 HEALTH AREA -No. I PLANNED Pl.ANED :(SOUT H) Mobile Centres - - New Static Units - - BOUNDARIES: Project L Health Areas - - Untt- SHOWING EXISTING AREAS HEALTH OSED Z LTH FACILITIES AND PLANNED NEW HEALTH FACILT IES. Ml 7STRY OF HEALTH AND COMMUNITY DEVELOPMENT: MARCH 1970- LILONGWE LA) D-VIWPMNT PROJECT LOW INPUT ARIAS Due to the physical conformation of the scheme, certain areas outside the actual limit of the scheme's boundaries will be more conveniently administered by the scheme extension staff. For this reason, they will be designated "Low Input Areas" as they obviously cannot be left in limbo. These areas are two in number. The first area lies on the south western flank of the scheme, and will be included in Phase II. It's area is 57,400 acres (without estates.) The second area lies to the south and will be included in a later phase. It's area is 78,400 (without estates). WISTERN AREA The existing housing of extension staff will be sufficient for Project Extension Work. A skeleton road system will be improved. 65 miles of roads will be needed. Since this is a skeletal access system all will be of 24' width. Provision has been made for them in the Financial Annex by calculating full annual hourage on the maintenance graders. This will cover both bulldozer and motor grader contingencies. Dambo crossings are minimal and can be financed from the overall financial structure. No mechanical conservation works are envisaged other than marker ridges by light tractors to assist farmers realigning their crop ridges. The expenditure will be saved and can be contained within overall scheme finances. INCREMENTAL F4RM iUUTS FOR 20 GAR PROJECT LIFE. TABLE 1 68/69 69/70 70/71 71/72 72/73 73/74 74/75 75/76 76/77 77/78 78/79 79/80 80/81 81/82 82/83 83/84 84/85 85/86 86/87 87/88 Pre. Project 1 2 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 (1) Maize (Non-roject 15 15 13 11 8 5 2 - - - Seed (Project 11 3 7 51 90 136 186 233 270 292 292 292 292 2929 22 292 292 292 292 992 - - - - - - - - - - - - - (Non-Project - - - - - F, ,tilizer 2? 66 139 23i 342 459 gI9 634 666 656 666 666 666 666 666 666 616 666 666 (Project 1 2 15 21 38 84 193 328 480 642 792 904 958 958 958 958 958 98 958 958 958 958 Total Seed & Fertilizer - 6 23 69 183 313 465 627 777 889 943 943 943 943 943 943 943 943 943 943 943 Increm nt (2) Groundnuts 120 123 127 131 182 259 291 291 291 291 291 291 291 291 291 21 291 291 291 2Q1 ^)1 Total Acreige *6fd per 1b. 3 7 11 62 139 171 171 171 171 171 171 171 171 171 171 171 171 171 11 171 I ncre-ent (3) rokacco 22 16 11 5 - - - - - - - - - - 22 22 - (Non-vroject Fertilizer 32 55 59 62 63 63 63 53 63 63 53 63 63 63 63 (Project - - - 12 21 h4 22 22 22 28 33 37 44 55 59 52 63 63 63 63 63 63 63 63 63 63 63 (Tota1 Increment - - - 6 11 15 22 33 37 40 41 41 41 41 41 41 41 41 41 41 41 (4) Livestock (Inclusive of cafle - 5 6 8. 8 12 16 18 22 24 26 27 21 27 27 27 27 d1 urchased from Ranch - 4 - - - 64 4 - - - - - - - (5) Forestry - - - Total Increment 0 9 30 86 267' 477 670 843 1001 1116 1173 1177 1179 1181 1182 1182 1182 1132 1182 1182 1182 ANEX 26 POST PHASE If CREDIT RE14UIREMENTS TALE 2 Year 5 6 7 8 9 10 11 12 13 14 15 16 17 Credit: Maize & Tobacco 90 67 32 - - - - - - - - - Gr-undiuts -20 - - - - - - - - Lindane 4 3 2 - - - - - - - Feed lots 7 11 6 9 7 5 2 1 - -- - Work oxen & Allied Crops 24 18 12 6 1 -10 -9 -10 -12 -12 -12 -10 -7 Fencing - - - - - Shellers -6 -2 -1 -1 - - - - Stores - - - - - Forestry -t -4 -2 -1 -1 - - - 3usiness Lnans -1 -5 -4 -3 -1 - - - - - - - TOTAL 94 88 45 10 6 -5 -7 -9 -12 -12 -12 -10 -7 ANNEX 26 TABLE 3 ESTIMATED CAPITAL &REOJRRENT COSTS : VEARS 8 - 20 WW000 YEAR 75/76 76/77 77/78 78/9 79/80 80/81 81/82 ~82/83 83/84 84/85 85/86 86/87 87/88 AOMINISTRATION Salaries &Stores 60.0 40.0 24.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 ANIMAL HUS9A0?Y Salaries 27 27 27 27 14 14 14 14 14 14 14 14 14 CREDIT Salaries &Stores 42 42 42 30 20 12 12 12 12 12 12 12 12 EXTENSION & TRAINING3 Total 163 155 139 123 93 93 93 93 93 93 93 93 93 LAID ALLOCATION Salaries & Stores 20 20 20 SURVEYS Salaries 13 13 13 Stores 5 5 5 VEHICLES Expenses &Depreciation 89 74 69 55 55 55 55 55 55 55 55 55 55 8UILDINGS 26 21 16 16 16 16 16 16 16 16 16 16 16 Maintenance 0 DTl3?I1 94 88 45 10 -5 -7 -9 -12 42 -12 -1 -7 TOTAL 539 485 400 273 216 197 195- 193 190 190 190 192 195 ANNEX 26 TABLE 4 ESTI1ATED RESIDJAL VAWATIONS 71172 72/73 73/74 74/75 75176 76/77 77/78 78/79 79/80 8 481 81/82 82/83 83/84 84/85 85/86 86/87 87/98 EM000 Market Centres 107 Town Houses 136 60 176 Construction Works Plant 5 8 7 152 Vehicles 3 2 4 8 27 12 10 20 Credit Fund 712 Ranch 375 TOTAL 3 7 12 15 315 12 10 60 1859 ANNEX 27 A NOR RN ' 4 G G \O 0 "C au G 0 - oe~ ~. MA LAW I- S *A &VN - orm awom a mePAW . - s...s.. swna. A RI A ..... *.a .,s~w a~as..- MALAMI L.ONGWE LAN DEVELOP6ENT PROJCT PHA SE 11 WEXS PHASE ~ u~s. maaaaas*VMSiinNT AM~k ............ AMA, paaretgagggAp ANNEX 29 MALAWI LILONGWE LAND DEVELOPMENT PROJECT PART Of DIVISION DIVISIONLOI CA TA 845 e DIVISION DIV. I DIVISION Cotm 4J7 ~**~- EVEOPMNT RE ODARY. .. ArIO*AL. BOUNDARY. "S" xuma CApItA1. MiY sUNA80 .----..--- PROJKECT BO UNDA RY. -------- PHASE BOUNDARY. RIVERS. MAIN ROADJI. -- DIVISIONAL BOUNZAntES. -- -- DEVEL.OPMENT AREA BOUNDARY. .--- -.. RANCH AREA BOUNDARY. I a (10. ANNEX 30 MALA'I LILONGWJE LkrTD DEVJLOPMLNT P "OJhCT FE:TILIZER SUBSIDY AND C. H FLOI ON FETILIZ!ER GROSS PUR CHAS /ALES SUBSIDY As a result of bilateral aid to Malawi the Malawi Government has been able to arrange for fertilizer sales at a subsidised price. It is Government policy that the percentage of subsidy shall be reduced over the next few years;- 1970 - 33.33% subsidy approx. 1971 - 22.22% subsidy approx. 1972 - 11.11% subsidy approx. 1973 - no subsidy The funds available to Malawi to cover the above arrangement cannot be applied to the Project, nevertheless sales of fertilizer whether on cash or credit basis must obviously be at the same rates to Project farmers as to farmers elsewhere. Thus it has been necessary to build into the Project funding an element to cover further subsidy during 1971 and 1972 selling seasons (see Annex 15) PURCHASE .F FERTILIZER AND CASH FLO' Purchases of fertilizer for credit purposes must by by international tender whilst at present other supply sources (for cash sales) are restricted under the bilateral agreements (see above). This system obviously creates difficulties in procurement and difficulties in standardising the types of fertilizer input throughout the Project areas To overcome the problem it is proposed that all fertilizer, whether for cash sales or credit be purchased from the Projects revolving credit fund - however it is unrealistic to increase the credit fund by the full amount of anticipated cash sales (monies being "iout" for a few months only) Thus the fertilizer element of the credit fund has been calculated on the basis of total credit requirement plus 20% cash sales requirement (to allow for any stocks carryover between years) and it is proposed that the other 80% cash sale requirements will be temporarily placed in the credit fund each year via transfer from unspent amounts in other vote heads - such amounts being credited back to the respective vote heads as actual sales take place - the timing of cash sales within a financial year (April to March) should make this proposal feasable in cash flow terms, but needs to be thoroughly understood by all account personnel involved. LI LONGWE LAND DEVELOPMENT PROJECT ANNEX 31 COST/BENEFIT ANALYSiS Table I 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 (1) COSTS (M1000) I 2 3 4 Project Capital & Recurrent 388 693 942 1601 1187 1293 1275 539 485 400 273 216 197 195 193 190 190 190 192 195 Ranch - - 47 114 91 75 57 44 42 39 41 43 40 44 41 41 41 41 41 41 Sub-total 388 693 969 1715 1278 1368 1332 583 527 439 314 259 237 239 234 231 231 231 233 233 Additional Farm Inputs 9 30 86 267 477 670 843 1001 1116 1173 1177 1179 1181 1182 1182 1182 1182 1182 1182 1182 TOTAL COSTS 397 723 1075 1982 1755 2038 2175 1584 1643 1612 1491 1438 1418 1421 1416 1413 1413 1413 1415 1418 (2) BENEFITS (EM'000) Crop Development 43 134 261 493 978 1569 1999 2246 2438 2549 2576 2593 2602 2602 2602 2602 2602 2602 2602 2602 Livestock Develcpment - - - 17 38 52 73 98 133 172 212 247 266 276 289 289 289 289 289 289 Sub-total 43 134 261 510 1016 1621 2072 2344 2571 2721 2788 2840 2868 2878 2891 2891 2891 2891 2891 2891 Residual Valuations - - - 3 7 12 15 315 12 10 60 - - - - - - - - 1850 TOTAL BENEFITS 43 134 261 513 1023 1633 2087 2659 2583 2731 2848 2840 2868 2878 2891 2891 2891 2891 2891 4750 (3) CASH FLOWS -354 -589 -814 -1469 -732 -405 -88 1075 940 1119 1357 1402 1450 1457 1475 1478 1478 1478 1476 3332 (4) DISCOUNTED CASH FLOWS (a) 8% Interest Rate Factor .925 .857 .793 .735 .680 .630 .583 .540 .500 .463 .428 .397 .367 .340 .315 .292 .270 .25G .232 .214 Product -328 -505 -646 -1080 -498 -255 -51 581 470 518 581 557 554 495 465 432 399 370 342 713 (b) 12% Interest Rate Factor .892 .79'7 .711 .635 .567 .506 .452 .403 .360 .321 .287 .256 .229 .204 .182 .163 .f45 .130 .116 .104 Prcduct -316 -469 -579 '933 -415 -205 -40 433 338 359 389 359 332 297 268 241 214 192 171 347 Net present value @ 8% Interest - V 309,200 * Cost element exclude F.M.B. loan as benefits have been calculated Net present value @ 12% interest- 04 983,000 using farmgate prices and F.M.B. loan issued at commercial rates. Internal rate of return - 15% Benefit/Cost Ratio @ 8% Interest 1.22:1 Benefit/Cost Ratio @ 12% " 1:10:1 LILONGWE LAUD DEVELOPIENT PROJECT (PHASE II)JANE / 32 ESTlIIATED IEPORT COIVFI'TT CAPITAL EPENDITURE Table 1 FORE3JIGN COMPONENT L 0 C A L T OT A L 1 2 3 4 1 2 -3 4 1 2 3 4 Administration 18271 4211 3531 3110 2033 468 392 346 20304 4679 3923 3456 Conservation & Planning 165410 88351 113166 88006 78624 66235 70614 66174 244034 154568 183780 154180 Credit 2550 2550 - 2550 450 450 - 450 3000 3000 - 3000 Land Allocation 732 120 120 120 348 280 280 280 1080 400 400 400 Surveys 10240 4680 4680 4680 1138 520 520 520 11378 5200 5200 5200 Vehicles 75645 28050 36434 69156 13345 4794 6427 12204 88990 33000 42861 81360 Housing/Buildings 93141 29013 29691 23361 217329 67697 69279 54509 310470 96710 98970 77870 Credit (Revolvinc 7und & Fertilizer Subsidy 90000 67500 70500 58000 90000 67500 70500 58000 180000 135000 141000 116000 Fertilizer Stores 18840 8520 8520 8520 43960 19880 19880 19880 628001 28400 28400 28400 Re-afforestation 11480 10040 10040 10040 45920 40160 40160 40160 57400 50200 50200 50200 Health 7920 5760 10380 2400 5280 3840 6920 1600 13200 9600 17300 4000 TOT.AL* 494229 243795 287062 269943 498427 271980 284972 254123 992656 520775 572034 524066 SUBMARY YEAR FOREIGN LOCAL T 0TAL 1 494',229 498,427 992,656 2 248,795 271,980 520,775 3 287,o62 284;972 572;034 4 269,943 254,123 .524,066 TOTAL 1,300,029 1,309,502 2,609,531 *Does not include Dzalanyama Ranch. (See paragraph 4.1 in Annex 13) LILONGE LAND DEVEL JTq PROJILCT ANEX 32 RECURRwNT EXPEflITURS Table 2 FOREIGN CONTONETNT L 0 C A L T 0 T A L Year 1 2 3 4 1 2 3 4 1 2 3 4 Administration 19156 19456 Animal Husbandry 19942 20812 57236 57536 58190 58220 10299 12706 12706 12706 7008 6471 76392 76992 78132 79032 11764 14564 17307 19177 24470 27270 Conservation and Planning 105180 109967 112347 112347 126558 124571 1256 126407 231738 234538 238046 238754 Credit Administration 4723 4723 7130 7130 18153 25430 310 35194 Credit (Machinery) 22876 3453 380 234 225 680 680 850 45 120 120 150 300 800 800 1000 Land Allocation 7816 7816 7816 7816 10678 11987 11987 11987 18494 19803 19803 19803 Surveys 15464 14159 14159 14159 13225 12340 12340 12340 28689 26499 Extension and Training 26499 26499 28276 28576 28726 28726 82110 107760 130805 142289 110386 136336 159531 171015 Vehicles and Light Repair 62667 68022 70487 71762 16133 17078 17513 17738 78800 85100 88000 89500 Buildings (Maintanance) 4482 7486 8406 9344 10458 17467 19615 21802 14940 24953 28021 31146 Health 1685 1685 5015 6 5 1965 2535 6455 13405 3650 4220 Fertilizer Storage 11470 14020 1470 2130 2820 3480 3430 4970 6580 8120 4900 7100 9400 11600 261473 27740 290234 289747 346999 38265 432147 462216 60847?- 665671 722381 751963 SUIAARY Year Forein Local TQtal 1 261,473 346,999 608,472 2 277;406 388,265 665,671 3 290;234 432,147 722,381 4 289,747 462,216 751,963 TOTAL 1,118,860 1,629,627 2,748,487 AIEX 32 Table 3 LILONGWE LAND DEVELORENT PROJECT Estimated Imrort Content F.M.B. LOAN F 0 R E I G N L 0 CA L T 0 T A L 1 2 3 4 1 2 3 4 1 2 3 4 Bulk Maize Store 33,000 50,000 50,000 50,000 77,000 115,000 115,000 115,000 110,000 165,000 165,000 165,000 Groundnut Sheller 20,000 - - 2 and Building 20,000 - - - 4,000 - . Markets 7,800 7,800 7,800 7,800 18,200 18,200 18,200 18,200 26,000 26,000 26,000 26,000 60,800 57,800 57,800 00 115,200 133,200 133,200 133,200 176,000 191,000 191,000 191,000 SUILKARY Year Foreign Local Total 1 60,800 115,200 176 2 57,800 133,200 191 3 57,800 133,200 191 4 57,800 133,200 191 TOTAL 234,200 514,800 749,000 t4