Language: ENGLISH Original: FRENCH

AFRICAN DEVELOPMENT BANK GROUP

MULTINATIONAL: LAKE CHAD BASIN SUSTAINABLE DEVELOPMENT PROGRAMME

(PRODEBALT)

APPRAISAL REPORT

October 2008

* Questions on this document should be referred to:

Mr. Aly ABOU-SABAA Director OSAN Ext. 2675 Mr. Ken B. JOHM Division Manager OSAN.4 Ext. 2468 Mr. M. TRAORE NRM & Environment Expert OSAN.4 Ext. 3308

SCCD:N.A.

MULTINATIONAL

PROPOSAL FOR AN ADF GRANT OF UA 30 MILLION TO FINANCE THE LAKE CHAD SUSTAINABLE DEVELOPMENT PROGRAMME (PRODEBALT)

CORRIGENDUM

1. Page vi: Implementation schedule of the programme: the activities of 2009 are carried forward by

three months. 2. Page 5 : 2.1 Components of the programme

• Protection of Lake Chad and its basin, the activity «Study and plan of optimal management of reservoirs and water supply points of the basin» is reformulated as follows: “Design and implementation of plans for optimal management of reservoirs and water bodies of the basin”

• Adaptation of production systems to climate change, Read: “Support for the establishment of

local development funds to finance basic community infrastructure and 200 micro-projects for diversification and promotion of growth-oriented sectors (Arabic gum, spirulina, etc.)”

3. Page 8 : Table 2.4 : Sources of finance: Read “Other LCBC member countries” 4. Page 9: Table 2.8: Breakdown of ADF financing by country is deleted. 5. Page 16: Point 4.1.6: The first two sentences are reformulated as follows: To receive the grant

resources, the LCBC will, in its Headquarters in Ndjamena, open a special account in a commercial bank acceptable to the Bank. Each national coordination will, in its locality and in addition to a special sub-account, open a separate account to receive the ADF resources intended to finance programme activities eligible for the Local Development Fund (LDF).

6. Page 20 : The conditions are reformulated as follows:

Conditions precedent to the first disbursement

5.2.2 The LCBC Executive Secretariat shall submit to the Bank: - Evidence of the appointment of the Regional Coordinator and Accounting Manager of

PRODEBALT; the qualifications and experience of these officials must be acceptable to the Fund.

Other Conditions

5.2.3 The Executive Secretariat and LCBC member States shall, within six (6) months following the signing of the Grant Protocol Agreement, provide evidence of: - the establishment of the new structure whose organizational chart was adopted by the last

extraordinary session of the LCBC Council of Ministers of 13 June 2008; - the appointment of National PRODEBALT Coordinators whose qualifications and experience

must be acceptable to the Fund; - the establishment of the Regional Steering Committee and the National Inter-Ministerial

Steering Committees.

TABLE OF CONTENTS

Page Equivalents, Fiscal Year, Weights and Measures, Acronyms and Abbreviations, Programme Brief, Executive Summary, Programme Matrix I – VI i-vi 1 STRATEGIC ORIENTATION AND JUSTIFICATION 1 1.1 Linkages between the Programme and the Strategy and Objectives of the LCBC and the Countries 1 1.2 Justification for Bank Intervention 3 1.3 onor Coordination 3 2. PROGRAMME DESCRIPTION 4 2.1 Program Components 5 2.2 Technical Options chosen and Alternatives Considered 5 2.3 Program Type 6 2.4 Programme Cost and Financing Arrangements 7 2.5 Project Area and Beneficiaries 9 2.6 Participatory approach for Programme Identification, Design and Implementation 9 2.7 Consideration of Bank Group’s Experience and Lessons Learnt in the Programme Design 10 2.8 Key Performance Indicators 10 3. PROGRAMME FEASIBILITY 11 3.1 Economic and Financial Performance 11 3.2 Environmental and Social Impact 11 4. IMPLEMENTATION 13 4.1 Implementation Arrangements 13 4.2 Monitoring Arrangements 18 4.3 Governance 18 4.4 Sustainability 18 4.5 Risk management 19 4.6 Knowledge Development 20 5 LEGAL FRAMEWORK 20 5.1 Legal Instrument 20 5.2 Conditions for Bank Intervention 20 5.3 Compliance with Bank Policies 20 6. RECOMMENDATION 20

No. of Pages ANNEX I: Comparative Socio-economic Indicators of the Countries 1 ANNEX II: Table of ADB Portfolio in the Countries 1 ANNEX III: Key projects financed by the Bank and other development partners 1 ANNEX IV: Map of the Programme Area 1 ANNEXES TO VOLUME II 4/5 ANNEX V: Organization Chart of the Programme. 4/5 ANNEX VI: Summary Economic Analysis of the Programme ANNEX VII: Provisional List of Goods and Services. Volume II in a separate document containing the Technical Annexes

Currency Equivalents (October 2008)

UA1 = CFAF 696.548 = USD 1.61055 = €1.06188 €1 = CFAF 655.95736

Fiscal year

1 January - 31 December

Weights and Measures

1 tonne (t) = 2204 pounds (lbs) 1 metre (m) = 3.28 feet (ft) 1 millimetre (mm) = 0.03937 inch (in) 1 kilometre (km) = 0.62 mile 1 hectare (ha) = 2.471 acres

Acronyms and abbreviations

ADB African Development bank ADF African Development Fund BGR German Institute of Geosciences and Natural Resources CAR Central African Republic CBDA Chad Basin Development Authority (Nigeria) CCD Framework Agreement on Desertification CCRP Code of conduct for responsible fishing CILSS Inter State standing committee for the fight against Drought in the Sahel CIRAD International Centre for Co-operation in Agronomic Research for Development ECOWAS Economic Community of West African States EU European Union FAB Framework agreement on Biodiversity FACC Framework agreement on Climate Change FAO United Nations Food and Agriculture Organization GEF Global Environmental Fund GEF-FGN Global Environmental Fund- Federal Government of Nigeria GTZ Gesellschaft für die Technische Zusammenarbeit (German Technical Co-operation IMWR Integrated management of Water Resources LCBC Lake Chad Basin Commission LDF Local Development Fund LI Labour -Intensive MEE Minister of the Environment and Water MINADER Ministry of Agriculture and Rural Development MINEE Ministry of Energy and Water resources MINEP Ministry of the Environment and Protection of Nature MINEPIA Ministry of Livestock, Fisheries and Animal Industries NEPAD New Partnership for Africa’s Development PRODEBALT Lake Chad Rural Development Programme PRSP Poverty Reduction Strategy Paper RAMSAR Convention on Wetlands (Convention RAMSAR) SAP Strategic Action Plan SPR/GWC Soil Protection and Restoration/ Ground Water Conservation TDA Transborder Diagnostic Analysis UNDP United Nations Development Program WB World Bank

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Programme Brief

Client Information Sheet DONORS : LCBC member countries: Cameroon, Niger, Nigeria, CAR and Chad EXECUTING AGENCY : Lake Chad Basin Commission (LCBC) Financing Plan

Source Amount (UA Million)

Instrument

ADF

30.00

Grant ADF

World Bank 6.94 Grant

GTZ 1.23 Grant

BGR 2.10 Grant

EU 3.51 Grant

IsDB 12.24 Loan

Government of Nigeria 3.05 Own resources

LCBC (Member States) 0.60 Own resources

Beneficiaries 040

TOTAL COST 60.07 Important financial information of the ADF

Grant currency

Unit of Account (UA)

Duration – Main stages (expected)

Approval of the concept note

September 2008

Approval of the project December 2008 Effectiveness February 2009 Final disbursement December 2015 Completion December 2015

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Program Summary 1.1 Project Overview: The Lake Chad Basin Sustainable Development Programme (PRODEBALT) will be implemented in the conventional basin of Lake Chad which covers a surface area of 966,955 km². It covers part of Cameroon, Niger, Nigeria, CAR and Chad. The expected outcomes of the project are the sustainable conservation of Lake Chad to ensure the economic security of the fresh water ecosystem resources, an integrated and judicious management of the basin so as to achieve sustainable development and equitable use of the natural resources for each country, while preserving its ecosystems and biodiversity. The programme will cover 6 years as from 2009, and its total cost is estimated at about UA 60.07 million. It is jointly financed by an ADF grant for an amount of UA 30 million and other donors (GTZ, BGR, European Union, World Bank, and the Islamic Development Bank). 1.2 The programme beneficiaries are the populations of the provinces, regions and States of the five countries in the Lake Chad basin. The population, which is estimated at nearly 30 million inhabitants, consists mainly of farmers, graziers and fishermen who live on the exploitation of its natural resources. The fight against various forms of land degradation and promotion of techniques of rational exploitation of the resources envisaged by the programme will lead to increased production of food crops, fish, meat, fruits and wood. This will increase the incomes of the target populations, particularly women, by 67% on average and strengthen food security. Most of the programme actions will be labour-intensive, thereby ensuring the participation of the beneficiary populations in their implementation, including co-financing and the management of micro-projects for local development. 1.3 Needs Assessment: Faced with the dramatic situation of this water body, the Heads of State of the Lake Chad Basin Commission (LCBC) in 2003 adopted the Vision 2025, appealing for international assistance to safeguard Lake Chad and ensure the sustainable development of the basin. PRODEBALT has been formulated to implement the Strategic Action Plan (SAP) prepared by the LCBC with the support of GEF/World Bank. It will facilitate collaboration between the various donors that have mobilized resources amounting to approximately UA 60 million for the programme, and to which the Bank is contributing up to 50%. 1.4 Value Added of the Bank: PRODEBALT is in conformity with the Bank’s Charter (Article 2.1 (a)-(c)) and with its policy on economic co-operation and regional integration adopted in 2000. It will strengthen the management of Lake Chad’s transborder water resources, through the Water Charter which is a legal instrument required for the implementation of the SAP. The implementation of the programme will help to improve regional consultation and co-operation as regards integrated management of the water resources, which will in the medium and long terms reduce potential sources of conflict. This unifying programme, to which several donors have adhered through supplementary funding, shows their desire to respond to the appeal made by the LCBC Heads of State for the preservation of Lake Chad within the framework of concerted intervention. The design of the programme takes into account the key recommendation from the analysis of the Bank’s portfolio in LCBC countries, namely the involvement of local organizations in the implementation of projects. 1.5 Knowledge Management: The implementation of PRODEBALT will consolidate good practices as regards: (i) natural resources management and adaptation to climate change, (ii) integrated management and sharing of water resources; and (iii) regional co-operation and integration.

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MULTINALIONAL

Lake Chad Basin Sustainable Development Programme (PRODEBALT) PROGRAMME MATRIX (Results-based)

HIERARCHIE DES OBJECTIFS RESULTATS ATTENDUS PORTEE / BENEFICIAIRES INDICATEURS DE PERFORMANCE DELAI D’EXECUTION DES OBJECTIFS CIBLES HYPOTHESES / RISKS

I. PURPOSE OF PROGRAMME Long -term Results Sustainably reduce poverty among the populations living on the resources of the Lake Chad basin

Average household incomes are sustainably increased The ecosystems of the Lake Chad watershed are restored

20% of the 30 millionsinhabitants of the Lake Chadbasin

Rate of increase of average household income Rate of replenishment of ecosystems

The average incomes of 1.5 million households have increased by 67% in 2025

Assumptions :Pursuance and consolidation of the LCBC Risks : LCBC Member countries do not honour their commitments Mitigation : Water intake from the Congo basin / Verification of fulfilment of commitments

II GOAL OF PROGRAMME Medium-term Results Improve the productivity and management of the Lake Chad basin ecosystems

2.1 The hydrological conditions of the Lake basin are improved 2.2 The productivity of farmlands, cattle and fish spawning grounds is improved

The populations of the Basin, farmers, graziers, Lake Chad fishermen and forest users, of which 50% women

2.1 The water inflows to the lake and transportof sediments from the watershed 2.2 Rate of increase in plant, animal and fishproduction 2.3 Decline in fuel wood consumption and increase in wood produced and reforestation

2.1 The water inflows to the lake will increase on average by 1 billion m3 in year 6 / and sedimentation of the lake will reduce from 210 t/km²/yr to 105 t/km²/yr in year 6

2.2 The increase rates are 19%, 12.5% et 42 % respectively for plant, animal and fish production in year 6

2.3 Fuel wood consumption decreases by 1 million de m3 and reforestation and agro-forestry increase respectively by 100% and 250% in year 6

Assumptions :Pursuance and consolidation of the LCBC Risks: Possibility of new oil exploitation sites, Overfishing due to clandestine fishing activity and inadequate commitment of LCBC States Mitigation: New dynamism in inter-State relations around common objectives / Implementation of co-management mechanisms

III ACTIVITIES / INPUTS Short-term Results 3.1 Protection of Lake Chad and its Basin 3.1.1 Soil conservation 3.1.2 Fight against the invasive species 3.1.3 Conservation of Biodiversity Cost UA 13.10 million

3.1.1 The ecosystems are rehabilitated 3.1.2 The spread of invasive species is halted 3.1.3 Biodiversity is preserved

The populations of the Basin, farmers, graziers Lake Chad fishermen and forest users, of which 50% women

3.1.1 Surface areas of dunes stabilized, ofbanks and land protected 3.1.2 Surface areas of forests and agro-forestry plantations 3.1.3 Number of endangered speciespreserved

3.1.1 Approximately 8 000 ha dunes stabilized, about 50 000 ha of banks and land protected and improved in year 6

3.1.2 About 55 390 ha of reforestation, agro-forestry plantations put in place in year 6.

3.1.2 Two endangered species (livestock and fish) preserved in year 6

Assumptions : Consolidation of peace in the region and adhesion of the populations Risks : Presence of refugees and lack of adhesion of the populations / Insecurity and obstacles to free movement of people and goods Mitigation : Resolution of the Darfur conflict and reduction of refugee displacements / Better communication with the populations

3.2 Adaptation of the Production Systems to Climate change 3.2.1 Integrated Management of Water Resources 3.2.2 Sustainable Management of Forest and pasture resources 3.2.3 Fish stock development and

3.2.1 Natural resources development and management plans (NRDMP) are implemented 3.2.2 Local development micro-projects are implemented

The populations of the Basin, farmers, graziers Lake Chad fishermen and forest users, of which 50% women

3.2.1 Number of NRDMPs prepared and implemented 3.2.2 Number of local development micro-projects implemented

3.2.3 Number of units of biogas, stoves, and containers popularized

3.2.1 50 NRDMPs are prepared and implemented in year 6

3.2.2 About 200 micro-projects for diversification of activities including the cultivation of spirulina (of which 60% for women) are financed in year 6.

3.2.3 In all, 200 units of biogas, 150000 improved hearths, 2 000 Chorkor stoves and 1,500 isothermal containers are popularized in year 6

Assumptions : Consolidation of peace in the region and adhesion of the populations Risks : Presence of refugees and lack of adhesion of the populations / Insecurity and obstacles to free movement of people and goods Mitigation: Resolution of the Darfur conflict and reduction of refugee displacements / Better communication with the populations

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HIERARCHIE DES OBJECTIFS RESULTATS ATTENDUS PORTEE / BENEFICIAIRES INDICATEURS DE PERFORMANCE DELAI D’EXECUTION DES OBJECTIFS CIBLES HYPOTHESES / RISKS

management 3.2.4 Support to Local Development Initiatives Cost UA 30.65 million 3.3 Institutional Support Cost UA 4.60 million

3.3 The Institutional capacities of the LCBC and stakeholder skills are enhanced

The populations of the Basin, farmers, graziers Lake Chad fishermen and forest users, of which 50% women

3.3.1 Number of persons trained 3.3.2 Number of instruments adopted

3.3.1 The restructuring of the LCBC is effective in year 2 and about 15.300 officers, technicians, FO leaders and populations trained.

3.3.2 The laws and regulations of the LCBC for the IWRM are adopted and applied in year 6.

Assumptions : Consolidation of peace in the region and adhesion of the populations Risks : Presence of refugees and lack of adhesion of the populations / Insecurity and obstacles to free movement of people and goods Mitigation : Resolution of the Darfur conflict and reduction of refugee displacements / Better communication with the populations

3.4 Programme Management Cost UA 5.33 million

3.4 The implementation, monitoring and technical and financial supervision of the Programme in accordance with the work plan

The populations of the Basin, farmers, graziers Lake Chad fishermen and forest users, of which 50% women

3.4.1 Conduct of the programme to completion in the periodic progress reports and the programme completion report

3.4.2 Technical and financial performance of the Programme in the monitoring and evaluation, technical and financial audit reports of the programme

3.4.1 Conduct of programme activities to completion from 2009 to 2014 with a performance level of at least 60% in 2012 at mid-term and at least 95% in 2014

3.4.2 The technical and financial performance of the Programme is deemed satisfactory

Assumptions :Regular mobilization of government counterpart funds and good coordination of development partner assistance Risks :Weak mobilization of counterpart funds and management bottlenecks Mitigation: Programme is top priority of the Government and joint supervisions.

TOTAL PROGRAMME COST : UA 60.07 MILLION

Other donors (UA million) E.U. : 3.68 Nigeria: 3.08 GTZ : 1.31 BGR : 2.01 IsDB : 12.24 WB : 6.81

LCBC : 0.6

The populations of the Basin, farmers, graziers Lake Chad fishermen and forest users, of which 50% women

Sources of information Monitoring and evaluation reports Periodic progress reports Mid-term review report Works reports and Contracts LCBC and NC reports Programme Completion Report

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PROGRAMME IMPLEMENTATION SCHEDULE

2008 2009 2010 2011 2012 2013 2014

N° ACTIVITIES 1 Negotiations 2 Approval by the Board 3 Approval of other financing 4 Signing of ADF grant 5 Signing of the other agreements 6 Authorization first disbursement 7 Preparation first annual budget 8 Organization of institutions and associations 9 Invitation to bid, protocol agreements and

contracts

10 Conduct and evaluation of studies 11 Rehabilitation and construction of buildings 12 Construction of markets, landing quays and

others

13 Procurement of equipment and materials 14 Contracts and works with nursery gardeners 15 Soil conservation, plantations and pastures 16 Clearing out and control of sand and plants 17 Small dams and sanitation 18 Implementation of the Local Development Fund 19 Support Measures (stoves, nets, hedges) 20 Implementation of environmental and social

plan

21 Mid-term review 22 Completion first phase of program 23 Completion report by HC/AVN 24 Completion Report by ADF 25 Audits

REPORT AND RECOMMENDATIONS BY THE BANK GROUP MANAGEMENT TO THE BOARD OF DIRECTORS CONCERNING A PROPOSED GRANT FOR THE

LAKE CHAD BASIN SUSTAINABLE DEVELOPMENT PROGRAMME (PRODEBALT)

Cameroon, Niger, Nigeria, Central African Republic, and Chad Management submits these reports and recommendations concerning a proposal for a grant of UA 30 million to the countries indicated above represented by the Lake Chad Basin Commission (LCBC) to contribute to the financing of the Lake Chad Basin Sustainable Development Programme (PRODEBALT). 1 STRATEGIC ORIENTATION AND JUSTIFICATION 1.1 Linkages between the programme and the strategy and objectives of LCBC and the

Countries 1.1.1 PRODEBALT is a response to the declining flows and water quality, loss of biodiversity, water erosion and silting affecting Lake Chad and its entire basin. The programme is designed to reverse the degradation trends noted. It is consistent with the Strategic Action Plan (SAP) and Vision 2025 of the LCBC for sustainable development of Lake Chad.1 The overall objective of the SAP is to contribute to poverty reduction in the Lake basin through six priority actions: (i) initiate shared management of the water resources, (ii) establish sustainable data collection networks; (iii) carry out sector actions to control water demand and fight against desertification and biodiversity loss; (iv) ensure the prevention and control of contaminants; (v) improve water ecosystems exploitation methods; and (vi) launch technical studies on the inter-basin water transfer. PRODEBALT is based on these priority actions and are fully consistent with the strategic actions defined in the national policies and environmental management plan, which aim at sustainable economic growth to reduce poverty. Furthermore, the priority given by the governments to the preparation of Vision 2025 for the development of the Lake Chad basin shows their desire to focus their interventions on the integrated management of the shared natural resources and the promotion of regional co-operation and integration. PRODEBALT is also in line with ADF guidelines on the financing of multinational operations, and Bank policy on economic co-operation and regional integration adopted in 2000. It is in conformity with the objectives of ADF XI and the strategic visions of ECCAS, ECOWAS and NEPAD. 1.1.2 PRODEBALT meets the criteria of Regional Public Good, namely:

Non-rivalry: Climate change is affecting all the countries concerned and the resilience actions (integrated management of water resources, soil and fertility conservation farming methods, preservation of the hydraulicity of the lake and ecosystems, sustainable exploitation of timber products and diversification of production) will benefit all, even if some do not take part in the Programme. Non-exclusion: The rehabilitation of Lake Chad, a common good to the entire region, as well as the protection of its basin ecosystems, and the activities of adaptation to climate change will benefit each and every inhabitant of the area. Whether or not a

1 The overall goal of Vision 2025 of Lake Chad is defined as follows: By 2025, the Lake Chad region would like Lake Chad-“Common Heritage” and the other wetlands to be preserved sustainably to ensure the economic security of the resources of the fresh water ecosystem, sustainable biodiversity and aquatic resources in the basin, which must be used equitably to satisfy the needs of the population of the basin, and thus reduce the scale of poverty.

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riparian country of the Lake takes part in the programme, it would still benefit from it. The Lake Chad Basin Commission (LCBC) has five (5) Member States: Cameroon, Niger, Nigeria, CAR and Chad. A strategic action plan (SAP) for environmental protection and sustainable development formulated in 2005 by LCBC was adopted in 2007 to implement Vision 2025. Public interest and ownership: Since the Lake Chad basin is a common good for the entire region, the actions aimed at preventing the drying–up of the lake, the recovery degraded lands and the rational exploitation of the natural resources will benefit all people in all the Member States. PRODEBALT was formulated by the LCBC and the Bank to implement the SAP with the support of at least five donors: GTZ, WB, BGR, IsDB, and EU. It will help to prevent the drying-up of the lake water, recover degraded lands, promote the sustainable exploitation of the natural resources, diversify sources of income, and create jobs in all the five LCBC Member States. Multi-country involvement: Bank operations in the Lake Chad region (Water Charter, HIV/AIDS control, and now PRODEBALT) inevitably require the involvement of all the LCBC Member States to succeed. Strategic alignment: PRODEBALT falls within the scope of the priority areas of the national poverty reduction strategies (PRSP) of the Member States, i.e. Vision 2025 of the LCBC, which lays emphasis on the sustainable conservation of Lake Chad to ensure the security of the ecosystem resources which must be used equitably to satisfy the needs of the populations of the basin. It is in line with the SAP, which is a multi-disciplinary integrated operation aimed at reversing the current ecosystem degradation trends in the Lake Chad basin and laying the groundwork for the sustainable management of natural resources. Catalytic role of the Bank and the promotion of regional integration: The concerted management of the problems related to the degradation of environmental resources will thus be better carried out by the States in a collective effort, which will positively impact on the wellbeing of the populations living in the Lake Chad basin without any possible exclusion of neighbouring areas. At the level of the LCBC region, the Bank is financing the preparation and dissemination of the Water Charter, which will guarantee equitable sharing of the water resources, as well as an HIV/AIDS control operation. All the results obtained will be used in supporting the implementation of the IWRM sensitization programme and disseminating them to the countries concerned through specialized institutions and NGOs. The absence of such an approach involves the risk of certain beneficiaries wanting to draw the maximum benefit from the common good to the detriment of the others. It is precisely to avoid such a situation that this programme will support the necessary consultation and agreement between all the beneficiaries to manage, equitably and as best as possible, the water resources not only through the Charter, but also by making well-informed decisions based on the results of studies on the rationalization of reservoirs and water supply points upstream the lake. Several donors have subscribed to the objectives of PRODEBALT and are ready to get to work on the ground to preserve the productive potential of the Lake, promote the integrated management of the water resources, and improve food security so as to reduce poverty throughout the basin. Financed to the tune of 50% by the ADF, PRODEBALT is thus the crucible where all the donor interventions will be pooled with the same objective of protecting the lake and the resources of its basin.

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1.2 Justification for Bank Involvement 1.2.1 The drastic shrinking of the surface area of Lake Chad, noted over the past decades, has led to the disruption of farmlands and a decrease in fish production. Indeed, the surface area of the lake has dropped from 25 000 to 2 500 km2 over a period of 45 years and its depth from 6 m on average to less than 3 m at present. At the current rate of recession of the water body, the Lake could disappear about twenty years from now, according to certain climate forecasts of NASA. PRODEBALT was formulated to implement the Strategic Action Plan which aims to reverse this trend. It also falls within the scope of the principles specified in Vision 2025 and more generally within the framework of the orientations of the Poverty Reduction Strategy Papers (PRSP) of the countries which aim at sustainable economic growth to reduce poverty. Its implementation requires the mobilization of significant financial resources. The Bank’s intervention is in response to the financing request sent to the ADF in 2007 by the LCBC. 1.2.2 In 2007 and under the African Water Initiative, the Bank approved the Water Charter preparation and dissemination project to allow for the equitable use of the water resources by the various users in the LCBC Member States and to prevent conflicts relating to the use of shared water resources. The Lake Chad basin sustainable development Programme is designed to promote sustainable solutions to the identified problems. It aims at mitigating the threats to the stability of the ecosystems, the rehabilitation of degraded lands and the conservation and sustainable exploitation of the biodiversity. It will also contribute, through plant cover restoration measures, to boost carbon sequestration reserves. It will address the causes of soil impoverishment through participatory protection of source heads (notably in CAR) and banks. It will provide significant world ecological benefits through biodiversity restoration and increased fuel energy capital. PRODEBALT is a response to one of the serious problems facing the existence of Lake Chad, and is currently strongly supported by donors and all stakeholders. Its implementation will help to further harmonize the complementary interventions so as to reverse the accelerated degradation trends of the natural resources which is causing impoverishment of the populations. 1.3 Donor Coordination

Importance

Sector or Sub-sector* GDP Exports Labour

[Rural sector SDR] [32%] [3%] [56%] Stakeholders – Annual Public Spending (2008-2011) **

Total LCBC Donors

[%] CFAF 22.52 billion CFAF 2.16 billion CFAF 20. 36 billion

% 10% 90% GTZ 6% BGR 9% EU 9% NIGERIA 11% Other LCBC States 2% GEF/WB/UNDP 26% ADB 37% Level of assistance coordination Existence of thematic working groups [Yes] Existence of an overall sector programme [Yes] Role of the ADB in aid coordination *** [L] * most appropriate ** Years [ yy1 to yy2 ] *** for this sector or sub-sector **** L: Leader; M: member (Non-leader): None: no role

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1.3.1 The Bank is the leading partner of the LCBC with a contribution of 37% of the 2007-2009 financing package. Considering the ecological importance of the lake, several development partners are involved in the rehabilitation of the ecosystems of the Lake Chad basin. Through financing of the study on the water Charter by the Bank, as well as the institutional study and updating of the LCBC Strategic Action Plan by the other donors, an appropriate consultation framework now exists to facilitate the coordination of the interventions under PRODEBALT implementation. Indeed, the programme brings together parallel co-financiers sharing complementary objectives, thereby implying not only close cooperation between the donors concerned, but also and above all, harmonious integration within the LCBC. 1.3.2 For the past two years, the States, the populations and donors have continued to show interest in the preservation of Lake Chad and the resources of its basin. Firstly, the interest is due to the increasingly dramatic situation of the populations living in the immediate vicinity of the lake and whose survival depends on it, and secondly, to the positive results achieved through support to the Niger river basin from partners, including the Bank, and which shows that the donor community can help the populations to change the course of events by revitalizing catchment area organizations to give impetus to salutary actions of protection of resources through the control of silting. Accordingly, they started by reinforcing the structure of the LCBC Secretariat (institutional study undertaken by the World Bank and implemented by GTZ) before engaging in various actions of integrated management of the water resources and sustainable local development in the Lake Chad basin (German Co-operation, EU, UNDP, WB, IsDB, ADB and AFD). 1.3.3 PRODEBALT was welcomed by the bilateral and multilateral donors, who are willing to work on the basis of complementarity between various interventions. This will lead to a scenario whereby the Water Charter (financed by the African Water Facility), which constitutes a legal and regulatory framework for equitable sharing of water resources, will be fully operational when the major project of transfer of water from the Oubangui will be implemented. 1.3.4 In the meantime, local development is supported by the EU, IsDB and ADB, while GTZ and the WB will continue to provide institutional support through monitoring of the resources. Moreover, the Bank will, under PRODEBALT, explore ways and means of increasing water inflows to the lake through the clearing out of the Vrick channel (Cameroon), improvement of the drainage of the irrigated zones, as well as the rational management of the water supply points and reservoirs in the region. The additional quantity of water to supply the lake in the medium-term could reach 700-900 million m3. 2 PROGRAMME DESCRIPTION The sector objective of the Programme is to sustainably reduce poverty among the populations living on the Lake Chad basin resources. More specifically, the programme aims at the rehabilitation and conservation of the productive capacities of Lake Chad basin ecosystems so as to adapt the production systems to climate change.

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2.1 Programme Components

N° Components Cost (in UA million)

Description

1 Protection of Lake Chad and its basin

13.10 � Soil conservation and soil moisture conservation over 27 000 ha and fixation of dunes over 8 000 ha

� Regeneration of grazing-land ecosystems over 23000 ha � Control of invasive aquatic plants in water bodies � Conservation of the endangered Kouri cow species � Clearing-out of the Vrick channel over 15 km � Study and plan of optimal management of reservoirs and

water supply points of the basin 2 Adaptation of

production systems to climate change

30.65 � Extension of the piezometric observation network � Sustainable management of forestry, pasture and fishery

resources : - Community forest plantations of 10 000 ha and 20

000 ha agro-forestry among farmers/graziers, - Restoration of 12000 ha classified forests, - Demarcation of 1500 km transhumance corridors

combined with 44 watering holes; - Rational exploitation of wood through indirect

actions by popularizing the use of stoves (450 000), Chorkor stoves (6000) and biogas digesters (200) on the basis of the 5 national wood supply master plans,

- Construction of 15 landing quays with the related infrastructures

� Establishment of local development funds to finance basic community infrastructure and 200 micro-projects for diversification and promotion of growth-oriented sectors (Arabic gum, spirulina, etc.)

� Improvement of health through the distribution of 60 000 mosquito nets and the control of HIV/AIDS and water-borne diseases

Institutional support

4.60 � Improvement of stakeholder skills (15 300 officers, technicians, leaders of farmer organizations, including 40% women)

� Building of LCBC institutional capacities, including strengthening of the Lake Basin Observatory

� Conduct of studies and research, including preparation of the erosion and silting control master plan

� Contribution to the final design of the project of transfer of the Oubangui waters to Lake Chad.

Programme management

5.33 � The project will be carried out by 1 regional coordination unit within the LCBC and 5 national coordination units supported by the LCBC and the decentralized technical services of the States

� Steering committees will be created at the regional and country levels.

2.2 Technical options adopted and Alternatives considered The two major problems highlighted by the Border Diagnostic Analysis (BDA) conducted under the GEF/World Bank project concern the exponential degradation of the productive capacities of the ecosystems of the lake and its basin, as well as the non-adaptation of

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the production systems to climate change. This results in: (i) siltation of the lake and the tributaries of the basin, (ii) decline in the productivity of farmlands, water bodies and pastures, (iii) colonization of the lake and rivers by invasive plant species, (iv) reduction in agricultural, fishery and forest production. To cope with these problems, the adopted technical options in the table above were borrowed from other experiments conducted under similar conditions, in particular the silting control programme for the Niger basin (NBA), natural resources management projects (PGRN), stockbreeding system support projects (PASEP) and the Prefecture du Lac development project (PDRPL) in Chad, and the local development support project in the Diffa region in Niger. These different operations proved to be adaptable to the social, economic and physical conditions of the PRODEBALT project area. The programme’s intervention strategy is based on the participation of beneficiary communities in the implementation of the activities. The above technical options were adopted following an analysis of several alternatives. For the regeneration of grazing-land ecosystems, the programme will use assisted active techniques instead of the passive method of prohibited grazing areas, which has its disadvantages. Invasive aquatic plants will be eliminated over a surface area of 8000 ha and using labour-intensive and non-mechanized methods so as to involve and make the beneficiaries responsible for their protection. The table below presents some of the alternatives rejected, as well as the reasons for their rejection.

Name of the

option Brief Description Reasons for Rejection

Regeneration of natural degraded ecosystems by creating extensive prohibited grazing areas

The natural ecosystems overexploited by man and livestock can be regenerated by prohibiting grazing areas and closing the areas to be regenerated to grazing and any other form of exploitation for several years. Keeping prohibited areas out of bounds requires fencing off and proper monitoring.

� The regeneration of ecosystems through prohibition is slow and requires closure of the areas for extended periods

� Its implementation by fencing and monitoring is costly,

� It puts more pressure on the ecosystems open to users.

Periodic mechanical elimination of large expanses of invasive plants in the lake

This technique consists in periodically coming back to the areas invaded by the aquatic plants and emerged areas to eliminate them mechanically. However, the land already invaded by typha is an inexhaustible production area. The invasion is worsened by reduced draught and sedimentation in the lake and rivers.

� Costly and non-sustainable technique (cf mixed results of the project to control invasive aquatic plants financed by the ADB),

� Improved management of the water resources of the rivers and the lake will control the invasion,

� Certain species, such as reeds, are used and help to control erosion of the banks.

� The programme will intervene on priority zones earlier identified and managed by beneficiaries

Management of the programme by a parallel and autonomous unit

Autonomous and parallel programme implementation unit (PIU) in LCBC to accelerate implementation of the programme

� Clear option to remain in conformity with the Paris Declaration, through the use of LCBC structures and building their capacities

2.3 Programme Type PRODEBALT is a regional programme centred on the provision of regional public goods through regional co-operation to promote concerted and sustainable management of the environment and natural resources in the Lake Chad basin.

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2.4 Programme Cost and Financing Arrangements 2.4.1 The overall programme cost is estimated at UA 60.07 million, net of taxes, which is equivalent to CFAF 41.84 billion. The programme costs will be financed by the ADF, the beneficiaries and several other donors taking part in the programme. The partners are: European Union, German Co-operation, World Bank, Islamic development Bank, the Federal Government of Nigeria and other LCBC Member States. The amount of the ADF contribution is UA 30 million, representing 49.9% of total programme cost. The contributions announced by the other technical and financial partners amount to UA 30.1 million, representing about 50.1% of the programme cost. The ADF financing covers all the components to complement financing by the EU and the IsDB for local development, the GTZ and the World Bank which provide institutional support to the LCBC, and the BGR (German Institute of the Geosciences and Natural Resources) for hydrogeologic monitoring. The ADF also finances the study on optimum management of the water resources of reservoirs and water supply points, as well as participation of the Programme in the financing of studies on the Oubangui water transfer to supplement that of the LCBC Member States. 2.4.2 The ADF financing is in the form of a grant. The choice of this type of financing is justified by the regional character of the intervention centred on public goods. The terms and conditions of the Grant were explained to the LCBC authorities, who accepted them. The Programme will be implemented net of taxes. The participating countries are responsible for all the other financial expenses that would not be covered by the Bank financing. The financing is broken down between the regional coordination and national coordination units according to the volume of activities in their charge.

Table 2.3 Cost Estimates by Component [in UA million]

Components FE LC Total % FE

1. Protection of the lake and its basin 9.17 3.93 13.11 70 2. Adaptation of production systems to

climate change 21.46 9.20 30.65 70 3. Institutional support for LCBC 3.17 1.43 4.60 69 4. Programme Management 3.73 1.60 5.33 70 Total baseline cost 37.53 16.16 53.69 70 Provision for implementation contingencies 1.87 0.80 2.68 70 Provision for price escalation 2.59 1.12 3.71 70 Total Project Cost 41.99 18.08 60.07 70

Note: The exchange rates used are indicated in the introduction to this report (page (i))

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Table 2.4 Sources of Finance [amounts in UA million]

Sources of Finance FE LC Total % Total African Development Fund 20.94 9.06 30.00 49.9 Beneficiaries 0.28 0.12 0.40 0.7 European Union 2.46 1.05 3.51 5.8 Nigeria 2.13 0.91 3.05 5.1 GTZ 0.86 0.37 1.23 2.1 BGR 1.47 0.63 2.10 3.5 Islamic Development Bank 8.57 3.67 12.24 20.4 World Bank 4.86 2.08 6.94 11.6 LCBC Members 0.42 0.18 0.60 1.0 Total 41.99 18.08 60.07 100.0 NB: The appraisal mission held consultation meetings with the GEF/World Bank project, GTZ, BGR/BMZ, the European Union and the AFD, with which it exchanged information on the various ongoing or planned activities in order to determine the points of convergence and avoid duplications within the framework of the programme. These consultations allowed for consensus on the justification of the actions envisaged and the need for harmonizing their implementation. A joint ADB/World Bank appraisal was envisaged, but the representative of the World Bank could not make the trip. It however maintains its commitment, which remains to be confirmed after the post-evaluation of the first phase of its financing which is to be completed in December 2008. IsDB has signed a loan agreement with Cameroon for the integrated development of Lake Chad. The financing of Nigeria is secured and available in the LCBC accounts. As for the German co-operation (GTZ and BGR/BMZ) and the European Union, they have confirmed the amounts of the expected financings as from 2009.

Table 2.5

Project Cost by Expenditure Category [amounts in UA million] Expenditure Categories FE LC Total % FE

Investments A. WORKS 14.49 6.21 20.70 70 B GOODS 1.31 0.53 1.84 71 C SERVICES 9.13 3.91 13.04 70 D. MISCELLANEOUS LDF 9.57 4.10 13.67 70 Sub-total 34.50 14.76 49.25 70 Recurrent costs A. STAFF 2.02 0.87 2.89 70 B OPERATING COSTS 1.01 0.54 1.55 65 Sub-total 3.03 1.40 4.44 68 Total base cost 37.53 16.16 53.69 70 Provision for implementation contingencies 1.87 0.80 2.68 70 Provision for price escalation 2.59 1.12 3.71 70 Total Project Cost 41.99 18.08 60.07 70

Table 2.6 Expenditure Schedule by Component [amounts in UA million]

COMPONENTS 2009 2010 2011 2012 2013 2014 Total 1. Protection of the lake and its basin

2.65 5.77 3.08 1.94 1.13 0.03 14.61 2. Adaptation of production systems to

climate change 6.99 9.81 10.17 3.80 2.80 0.70 34.27

3. Institutional support for LCBC 1.57 1.64 0.61 0.61 0.61 0.06 5.10 4. Programme management 1.37 0.87 0.89 0.94 0.95 1.07 6.09 TOTAL 12.58 18.09 14.76 7.29 5.49 1.85 60.07

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Table 2.7 Breakdown of ADF financing by beneficiary country / Coordination [in UA million]

Beneficiary Country/ Coordination Component

Cameroon Chad Nigeria Niger CAR LCBC TOTAL 1. Protection of the lake and its

basin 1.84 1.84 2.1 1.58 1.89 1.72 10.97 2. Adaptation of production

systems to climate change 2.33 2.23 2.21 2.29 2 0.12 11.18 3. Institutional support for

LCBC - - - - -

1.76 1.76 4. Programme Management 0.85 0.85 0.85 0.85 0.85 1.84 6.09 Program Total 5.02 4.92 5.16 4.72 4.74 5.44 30.00

Table 2.8

Breakdown of ADF financing by country [in UA million] COMPONENTS

Cameroon Chad Nigeria Niger CAR LCBC

Secretariat

Total

1. Protection of the lake and its basin 1.84 1.84 2.10 1.89 1.58 1.72 10.97 2. Adaptation to climate change

2.37 2.23 2.29 1.99 2.37 0.49 11.74 3. Institutional Support for LCBC - - - - - 1.76 1.76 4. Programme Management 0.85 0.85 0.85 0.88 0.85 1.26 5.54 Programme Total 5.05 4.92 5.24 4.76 4.79 5.23 30.00

2.5 Project Area and Beneficiaries The programme area is located in the conventional basin of Lake Chad, which currently covers 966.955 km². The Lake Chad Basin constitutes a source of fresh water, where fishing, agricultural and grazing activities are carried out by the population of approximately 30 million inhabitants living in 21 territorial entities of the LCBC Member States. There are five climate types in the area with a varied range of isohyets, whose average annual rainfall is between 200-400 mm and 900-1400 mm/year. The impacts of climate change on the lake biotope are alarming, as this vital water body could disappear, its surface area having decreased by 90% over a 45-year period. Even though this is a closed basin located in an arid region, the Lake water shows a relatively low rate of salinity. One of the major problems of the lake water resources remains their depletion, with its current area of the lake water being less than 3,000 km 2. The basin is strategic for the entire biodiversity as it is home to 120 fish and 372 bird species. The final programme beneficiaries are the rural populations living in the basin and exploiting its natural resources (farmers, graziers, fishermen, women and young people). The living conditions and incomes of the populations of the programme area are rather precarious with significant impacts on women and youths. The programme will help to strengthen their capacities to assume responsibility for the control silting and restoration of the agro-sylvo-pastoral potential. It will also help to improve the living conditions of the most disadvantaged populations, in particular, and to diversify their sources of income. 2.6 Participatory Approach to Programme Identification, Design and Implementation The programme design is based on extensive consultations (discussions, meetings, presentation workshops) with all stakeholders who voiced their opinions and concerns during the transborder diagnostic analysis, the development of the SAP, and the preparation and appraisal of the programme. On 27 September 2008, the mission organized a presentation

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workshop in Maroua (Cameroon) comprising representatives of LCBC Member States, donors and NGOs. On the whole, about fifty sector meetings and workshops in the Member States, meetings with partners and socio-professional groups of beneficiaries have been held with the participation of approximately 150 000 people over the past two years (from 2006 to 2008). The participatory approach, which enabled stakeholders to adhere to the programme objectives and technical choices, will be continued and reinforced during implementation of the programme through training/sensitization, information and experience sharing with local communities and producer associations supervised by local NGOs having benefited from capacity building under the GEF/LCBC project. 2.7 Consideration of the Bank Group’s experience and lessons learnt in Programme

design The Bank financed the silting control programme for the River Niger Basin implemented by the Niger Basin Authority (NBA). This UA 15 million programme aims to contribute to land and water resource conservation on a participatory and sustainable basis in the Niger River Basin. At mid-term, this programme has already achieved up to 70% of its objectives, that is, 20 000 ha of dunes stabilized and alluvial land recovered. Given that the problem is similar, the approaches and methodologies implemented will be used under PRODEBALT. Also worth mentioning is the multinational project to control invasive aquatic plants in ECOWAS countries and the project of integrated control of crop diseases at the level of the LCBC. The programme’s approach to the problem is to put in place a technology transfer system based on close cooperation between beneficiary farmers, trained and supervised by a network of extension workers supported by the research institutes of the region. In addition, the Bank has an active rural portfolio of 30 projects in the LCBC Member States. The lessons learnt from the analysis of the Bank’s portfolio in the countries, include: (i) weakness accounting services of projects; (ii) ignorance of the rules and procedures of the Bank; (iii) low rate of project implementation on the ground. Having learnt the lessons from these experiences, institutional support for the LCBC Executive Secretariat, as well as capacity building for the national executing agencies was envisaged in the Programme design. 2.8 Key Performance Indicators The key performance indicators defined in the matrix are: (i) the rate of improvement of water inflows to the lake and the water balance of the wetlands through the implementation of the management plans of reservoirs and water supply points on the tributary rivers; (ii) rates of increase in plant, animal and fish production through soil and moisture conservation, regeneration of pastures, agro-forestry and control of silting; (iii) rate of reduction of the sedimentation in the lake, silting and invasion by aquatic plants; (iv) trend of the average income of households shown in the household survey reports and the annual reports of the LCBC Secretariat; (v) the rate of provision of facilities and infrastructure, and (vi) the effective involvement of NGOs and socio-professional organizations, notably women’s organizations. The Department of Planning, Monitoring and Evaluation of the LCBC Executive Secretariat, the Basin Observatory and the national services charged with monitoring the abovementioned indicators will use as trigger factors the attainment of their intermediate level at mid-term of the implementation of the Programme. To ensure the monitoring and evaluation of these indicators, internal and external monitoring and evaluation mechanisms will be established. The supervision missions of the LCBC and Ministries having oversight on natural resources management, the environment, fisheries, agriculture and rural development in each country will be carried out on the basis of the said mechanisms.

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3. PROGRAMME FEASIBILITY 3.1 Economic and Financial Performance 3.1.1 Table: Important economic and financial figures

ERR (baseline scenario) 17 % NPV at discount rate of 12% CFAF 11.32 billion

3.1.2 The calculation of the programme rates of return is based on the following assumptions: (i) evaluation of the net benefits of the programme is estimated over a 20-year period; (ii) the costs include investment costs, infrastructure operating and maintenance costs, renewal of equipment and additional variable costs of the operating system adopted; (iii) prices of agricultural produce are constant prices (excluding taxes, customs duties and price increases); and (iv) the economic prices used are financial prices for agricultural produce and shadow prices of fish at importation. 3.2 Environmental and Social Impact 3.2.1 Environment: The programme is classified in environmental and social category II. Its main activities aim at environmental rehabilitation, development of watersheds, and improvement of farming techniques. An environmental and social management plan (ESMP) has been prepared, and is included in the technical annexes. 3.2.2 For several decades, the conventional Basin has witnessed widespread degradation of its productive ecosystems and natural resources. All the five countries are affected to different extents by climate variability and human pressure which have led to considerable reduction of the surface area of the Lake from more than 25,000 km² in the 1960s to approximately 2,500 km² currently, as well as significant erosion, silting, drought and desertification. According to studies conducted by the National Aeronautics and Space Administration (NASA) on the Lake Chad as part of its system of observation of the earth, the Lake and adjacent wetlands classified as an ecological zone of global importance for biodiversity by the RAMSAR Convention, could disappear in the medium term if strong protective measures are not taken to reverse the observed trends. 3.2.3 This programme aims at environmental rehabilitation as it will contribute to the conservation of Lake Chad and the production capacities of the entire basin for sustainable development. Thus, soil conservation measures will help to limit silting and sedimentation in the lake, and will allow for the recovery of the degraded lands. The implementation of the programme will also help to rehabilitate the wetlands, which are colonized by invasive plants causing the gradual disappearance of some species in the lake and its basin. The promotion of alternative sources of domestic energy (biogas, improved stoves) and the processing of spirulina and fish oil will contribute to reverse the degradation trends by fostering the adhesion of the local populations to the policy of sustainable management of the resources which the programme is seeking to establish in the lake and its basin. Mitigation measures of potential impacts were identified and included in the ESMP, whose implementation will receive a budget appropriation of UA180, 000. The national coordination units, in collaboration with the Departments of the Environment, will monitor the environmental and social impacts of the programme activities, and will recommend, where necessary, appropriate preventive, corrective or compensatory measures.

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3.2.4 Climate Change: The drying-up of the Lake water and deterioration of the production capacity of its Basin have affected all the socio-economic activities, leading to internal exodus and increased pressure on the natural resources and conflicts between the populations. In addition to the approximately 60% decline in fish production, there has been degradation of pasturelands, leading to shortage of dry matter estimated at 46.5% in certain places in 2006, reduction in the livestock population, and threat to biodiversity. Furthermore, the climate change has resulted in reduced surface flows by 20 to 50%, the decline in groundwater level, the silting of riverbeds, the proliferation of invasive aquatic plants, which are at the same time the cause and effect of sedimentation since they grow as a result of reduced hydraulicity of streams. The effects of climate change on this biotope (Lake Chad) are alarming, as this vital water body’s existence is threatened, its surface area having shrunk by 90% in 45 years. A north-to-south retreat of the isohyets has been observed, which narrows the farmland for the major crops due to the water pressure brought out by drought. The silting and water erosion cause the gradual filling up of the lake’s expanse of water and its tributary rivers. Sedimentation affects much of the lake basin and the beds of the principal rivers, and substance deposits have reached 210 tonnes/year/km² in certain places. On a sample of 4% from the territory of the Diffa region in Niger, the surface area occupied by sand dunes increased from 70 ha to 186 000 ha between 1975 and 2003. 3.2.5 Actions aimed at the integrated management of water resources, as well as the various measures for the rehabilitation of the productive ecosystems and sustainable management of the natural resources under the PRODEBALT component “Adaptation of production systems to climate change” will help to mitigate impacts whose monitoring and anticipation will be facilitated by the establishment of the Lake Chad Basin Observatory. Adaptation measures are incorporated into the production systems, which will be supported by the programme, namely: promotion of conservation farming and agro-forestry which lay emphasis on water and soil conservation and soil fertility management activities, increase in wooded areas through afforestation and prohibition of forest exploitation, protection of farming basins against silting, promotion of alternative sources of domestic energy, regeneration and concerted management of cattle pasturelands, collective monitoring of stocks and planning of fishery activities, and diversification of production and sources of income. 3.2.6 Gender: Gender equity will be a cross-cutting concern of the programme. The national structures in charge of gender were consulted during the programme preparation and appraisal phases. The women will benefit from the improvement of the systems of conservation, processing and marketing of agricultural and fishery products (improved Chorkor stoves, isothermal containers, sheds), and thereby increase their chances of profit. They will also benefit from 40% of the training courses given in the programme, which will reinforce their self-empowerment capacities and participation in local decision-making on their activities. The programme will help to reduce the drudgery of women’s work thanks to the establishment of biogas units, improved stoves and water points. The programme will ensure that women are represented within the infrastructure management committees and steering committees. They will be the key beneficiaries of the micro-projects for diversification and improvement of incomes financed by the Local Development Funds. The programme will subsidize income-generating activities for associations of women producers of spirulina (basins equipped for spirulina production (blue algae used for pharmaceutical purposes) at the rate of CFAF 2 million /50 m² basin allowing for a production of 0.5 kg/day). These provisions and measures will have a direct impact on the women, and will help to increase their own incomes and improve their living conditions and those of their dependents, as well as their health status and that of their children.

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3.2.7 Social: The Programme will help to strengthen the economic capacities and improve the living conditions of vulnerable groups, as well as contribute to ender mainstreaming in the planning and implementation of the activities. It will help to enhance the performance of beneficiaries by strengthening their capacities and assisting them to be better organized into management committees for the procurement of input supplies. It will give women and youths special opportunity to benefit from its actions and ensure their representation in various local decision-making organs. The programme will establish collaboration with the LCBC multinational health system reinforcement and HIV/AIDS control project financed by the Bank. The work plan of health centres that are partners of this project will include activities for the prevention and control of malaria and other water-borne diseases. Regarding malaria, 70 000 insecticide-treated mosquito nets will be distributed in priority to pregnant women and children aged below 5 years. Hygiene and environmental health measures will accompany drinking water supply actions. 3.2.8 The actions envisaged under the programme will help to increase the net incomes of supervised operators, which will vary between CFAF 127 750 and CFAF 792 000. The programme will create 50 000 permanent jobs, and lead to good local governance as regards sustainable management of natural resources thanks to the accountability of the populations. At the economic level, actions to combat various forms of land degradation and promotion of techniques for the rational exploitation of resources will generate an additional annual production of 1.42 million �odel of foodstuff, 50 000 tonnes of fish, 10 000 tonnes of meat, 360 000 tonnes of fruit and 1.16 million m3 of wood. Furthermore, it will increase the incomes of the target populations by an average of 67%, particularly the incomes of women, and strengthen food security. Most of the programme activities will be labour-intensive, making it possible to ensure the participation of the target population in their execution and in the co-financing and management of local development micro-projects. The programme will improve the social and health conditions in the Lake basin thanks to the construction of 150 public latrines and 150 drinking water supply systems. The programme will also finance 200 micro-projects to diversify income-generating activities, as well as the distribution of insecticide-treated nets. The infrastructure and equipment on the landing quays will allow for better processing and marketing of fishery products. The programme will help to reduce conflicts between communities of farmers and graziers by introducing tested methods of pacification in the management of the grazing-land ecosystems of the basin. 3.2.9 Involuntary displacement: The programme as designed involves no involuntary displacement of populations. 4. IMPLEMENTATION 4.1 Implementation Arrangements 4.1.1 The executing agency of the programme is the LCBC Executive Secretariat which will be reinforced for this purpose by specific technical assistance (duration 3 years) made up of a sustainable development economist-planner and a specialist in water resources. A Regional Coordinator will be appointed by the LCBC Secretariat. The qualifications and experience of this Regional Coordinator, who will be placed under the supervision of the Director of Planning, Monitoring and Evaluation of projects, must be acceptable to the ADF. The personnel required for the proper implementation of the project will come from the other operational departments of the LCBC. They will include a specialist in natural resources management, a specialist in fisheries, an agro-economist in charge of monitoring and evaluation, as well as support staff. At the national level, a National Coordinator will be appointed by the country to coordinate

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activities by the technical structures, NGOs and specialized local agencies. At the level of the LCBC Executive Secretariat, a steering committee, chaired by the Executive Secretary, will be set up. At the country level, a National Inter-Ministerial Steering Committee (NISC) will be set up. Evidence of the establishment of these committees will be a grant condition. 4.1.2 The Lake Chad Basin Commission was established in 1964 by Cameroon, Nigeria, Niger and Chad for the conservation of the limited water resources, the restoration of the level of Lake Chad which is one of the greatest wetlands of Africa, the control desertification by fixing the dunes, the control of erosion, collection of data on the resources for effective management of the resources of the basin, as well as the monitoring of projects and programme implementation. In 1994, the Central African Republic was admitted into the Commission. At the institutional level, the LCBC has a Conference of the Heads of States and the Auditors Session which meet once a year to examine and approve the work programmes and budgets of the Executive Secretariat based in N’Djamena, Chad. The Commission has just been restructured under the GEF/World Bank project to facilitate the transition of the LCBC to an institution capable of producing high quality and scientifically convincing results. A new structure of the Secretariat with sufficient competences and capacities is being put in place to that end. It comprises a General Directorate of Operations, which has three technical departments – Environment and Water Resources; Planning, Monitoring and Evaluation of Projects; and Information and Surveillance – and a General Administration and Financial Department, which supervises the Department of Human Resources and the Finance and Equipment Department. In addition, there is a Basin Resources Observatory as an attached service. On the whole, about twenty positions of expert will be filled to run the new structure of the Executive Secretariat (hydrologist, hydro-geologist, wetlands ecologist, fisheries specialist, socio-economist, pastoralist, agronomist, sustainable development planner, specialist in communication system, information, training and participation, in geographical information systems and remote sensing in addition to the managers and accountants). 4.1.3 At the 12th Summit of the LCBC held on 27 March 2008 in Abuja, the Heads of State and Government reaffirmed their determination to support and reinforce the LCBC, and agreed to provide it with adequate institutional, financial and human resources to fulfil its mission appropriately. They voiced their grave concern about the environmental situation of the Lake Chad Basin, notably the receding waters of the lake, excessive deforestation, desertification, soil erosion, that have led to the loss of biodiversity and aggravation of poverty. In this regard, they decided to urge their respective Governments to coordinate, through the LCBC, their policies on investment and conservation of the ecosystems in the conventional basin of Lake Chad. They clearly affirmed the political will of the LCBC Member States to fulfil their obligations by paying their arrears and annual contributions for 2008. They urged Member States to clear their arrears of contribution to the LCBC budget. Thus Chad paid all its arrears and contribution for 2008 (approximately CFAF 800 million). The Member States contribute to the budget of the LCBC according to the following scale: Cameroon 26%; Niger 7%; Nigeria 52%; CAR 4%; Chad 11%. The 2008 Budget amounts to CFAF 2 billion 160 million broken down between the heading “development” with CFAF 1 billion 060 million which enables the LCBC to contribute to the financing of certain projects, and the heading “operating costs” with CFAF 1 billion 100 million. In addition, there is parallel financing in the form of projects of about CFAF 6 billion. In spite of the economic crisis, all the countries endeavour to pay their contributions. Such is the case in particular for the principal contributors, Nigeria, Cameroon and Chad, which seldom delay payment. In order to resolve this recurrent problem, the Executive Secretariat undertook a study for the sustainable financing of its budget otherwise than through direct contributions from the States. This study will be presented for consideration and approval at the next ordinary session of the Commission. The accounts of the LCBC are audited annually by external firms

15

and the results examined by the organs (Council of Ministers and Summit of Heads of State). Within the Executive Secretariat, there is an Administration and Finance Department of (DAF) with all the specialized divisions and services (accounting, equipment, personnel, career, etc.) and qualified personnel. The internal audit is headed by a Financial Comptroller attached to the Executive Secretary, who reports directly to the Council of Ministers. There are two ongoing Bank-financed operations at the level of the LCBC, namely the LCBC HIV/AIDS Control Initiative (UA 11.10 million) and the Lake Chad Water Charter Preparation and Dissemination Project (Euros 1 million). The two projects are going on normally. 4.1.4 The LCBC has in the past had to carry out three projects financed in co-operation with various donors: (i) MEGA-CHAD financed with Belgian bilateral resources; (ii) IPM financed by the Bank for UA 1.4 million, and (iii) HYDRO CHAD financed by the Arab Bank for Economic Development in Africa (ABEDA). Currently, there are six ongoing projects for an amount of CFAF 6 billion within the LCBC. The most recent are those financed by the GEF / the World Bank of which the first phase is near completion, the German Co-operation (GTZ and BGR projects), the ADB (HIV/AIDS project) ongoing, and the European Union which is engaged in the reinforcement of the Programme coordination organs, communication, the strengthening of the legal framework of water sharing, risk analysis, the study on the interactions between ground and surface waters, small pilot projects as well as pre-feasibility studies on river transport. Support for the reinforcement of the structures of the LCBC Secretariat is being continued by GTZ under the 2nd phase of its project (2008-2010). A Committee of Experts in Water Resources (CRE), created within the Basin Observatory will establish closer links between the LCBC Secretariat and water sector professionals in Member States. One of the major projects of the LCBC is that relating to the transfer of the River Oubangui waters. This project for the restoration of Lake Chad is aimed at diverting water from the Congo Basin to feed Lake Chad. To this end, a feasibility study financed for USD 6 million dollars by the Member States has just been launched. 4.1.5 The beneficiary countries of the grant will open special accounts in their localities in the name of the Programme in commercial banks acceptable to the Bank. Each national coordination unit will also open another separate special account to receive the ADF funds intended to finance programme activities eligible for the Local Development Fund (LDF). The disbursements will be made in accordance with the provisions of the Bank’s Disbursement Handbook. Goods, works and services financed by the Bank will be procured in accordance with the relevant Bank rules of procedure using the standard documents of the Bank. Regional and National Coordination units of the Programme will be charged with the procurement of goods/works/ service contracts, consultancy services, training courses and others as described in Annex B4. National coordination is carried out by decentralized services of the States which have acquired experience in procurement through the implementation of previous projects. The resources, capacities, expertise and experience of coordination structures are presented in detail in Chapter B3 of the technical annexes. The procurement arrangements for goods and services are detailed in Chapter B5 of the technical annexes. 4.1.6 The programme will use the services of specialized agencies and/or NGOs, private operators and consulting firms present in the area and which satisfactorily carry out similar services under other development projects. These organizations will be selected through competitive bidding on the basis of a short-list. Their activities will concern support and advisory services to village communities, analysis and local planning, local training courses, and the implementation of infrastructure works. The programme implementation structures will, with the participation of the beneficiary communities, prepare a manual for the execution of community works, which will define the terms and conditions for the award, execution and

16

management of this type of contracts. At the level of the provinces and districts, the development committees of the local and village communities will monitor the coherence of the interventions and their complementarity with those of the other donors. They will supervise labour-intensive works on the basis of agreements signed with the project and approved beforehand by the Bank. 4.1.7 The socio-professional organizations set up by the management committees will manage the infrastructures and basic equipment. The maintenance of the facilities will be financed by the charges paid by various users. The rates of the charges will be adopted by mutual agreement with the local authorities. The intervention of the national research institutions, the technical services, specialized agencies and NGOs will be on the basis of agreements, whose drafts will be subject to the prior approval of the ADF. 4.1.8 The programme accounts will be kept at the regional level by the LCBC and at the national level by coordination units, which will organize budgetary monitoring based on an integrated accounting system. To this end, the Programme will prepare an accounting and financial management manual, and put in place a computerized accounting and financial management system based on the manual. The programme accounts will be subject to the usual controls of the public administration and the Bank. The programme accounts will be audited annually by an independent firm recruited by the Regional Coordination Unit. The audit reports will be transmitted to all the partners of PRODEBALT not later than six months after the end of the audited fiscal year. Specific audit missions organized by the Bank will also be dispatched to national and regional coordination units of the programme. Procurement Arrangements The procurement arrangements are summarized in Table 4.1 below. All goods, works and services financed by the ADF will be procured in accordance with the Bank rules of procedure for the procurement of goods and works or, as the case may be, with the Bank rules of procedure for the use of consultants using the appropriate standard competitive bidding documents of the Bank. Regional and National Coordination Units of the Programme will be responsible for the procurement of goods, works, services and training.

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Table 4.1 Procurement Arrangements (in UA million)

Pr Programme Categories RICB LCB SL Other

methods Other

Donors Total A. Works 1 Civil Engineering - 5,00 - 0,18 - 5,18 (0,49) (0,18) (0,67) 2. Rehabilitation of buildings - 0,08 - - - 0,08 (0,08) (0,08) 3. Fishing infrastructure - 2,16 - - - 2,16 (2,16) (2,16) 4. Livestock support infrastructure - 1,03 - - - 1,03 (1,03) (1,02) 5. Planting and afforestation - - - 6,96 - 6,96 (4,21) (4,21) 6. Soil development and protection - - - 8,30 - 8,30 (8,30) (8,30)B. Goods B Goods 1. Vehicles - 0,56 - - - 0,56 (0,56) (0,56) 2. Demonstration / extension equipment - 0,67 - - - 0,67 (0,67) (0,67) 3. Office furniture, computer and office automation equipment - 0,09 - - - 0,09 (0,09) (0,09) 5. Technical equipment 0,32 - - - 0,32 (0,32) (0,32) 5. Piezometer 0,12 - - - 0,12 (0,12) (0,12) 6. Animals - - - 0,13 - 0,13 (0,13) (0,13)C. Services C Services 1. Technical aid - - 5,99 - - 5,99 (0,56) (0,56) 2. Studies - - 5,68 - - 5,68 (2,03) (2,03) 3. Audit - - 0,18 - - 0,18 (0,18) (0,18) 4. Technical guidance / Contractual Service provider - - 0,46 - - 0,46 (0,46) (0,46) 5. Training - - 0,26 - - 0,26 (0,26) (0,26)

6. Technical departments for implementation of the

components - - - 0,45 - 0,45 (0,45) (0,45) 7. Services of individual consultants - - 2,04 - - 2,04 (2,04) (2,04)

D. Miscellaneous D. Miscellaneous

1. Local Development Fund - - - 13,43 - 13,43 (2,03) (2,03) 2. Credit - - - 1,62 1,62E. Personnel E Personnel 1. Allowances - - - 1,37 - 1,37 (1,37) (1,37)

F. Operating expenses F Operating expenses - - 1,68 - 1,68

- (1,68) (1,68) TOTAL 0,12 10,18 14,61 33,55 - 60,07 (0,12) (5,66) (5,52) (18,69) - (30,00)

Note – “Others” refers to: contracts with community participation, - directly negotiated contract or State-controlled contract, Request for quotes from local suppliers, request for candidatures for the recruitment of personnel. - the figures in brackets concern the amounts financed by the ADF.

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4.2 Monitoring Arrangements 4.2.1 Internal monitoring and evaluation will be carried out by the LCBC Executive Secretariat through the Department of Planning, Monitoring and Implementation of Projects, the national coordinators, and the monitoring and evaluation specialist. They will define simple specific indicators of a technical and organizational nature for the entire program, using the indicators featuring in the matrix as a benchmark. The programme will also undergo external monitoring and evaluation annually by the supervisory Ministries of the Countries and the Basin Observatory which, for this purpose, will benefit from the reinforcement of the piezometric monitoring network and technical assistance for monitoring and analysis of the data and �odeling of the hydrological systems in the Lake basin. 4.2.2 The LCBC Executive Secretariat and the national coordinators will prepare quarterly progress reports, programmes and annual reports, annual budgets, as well as their implementation reports. The various partners intervening as technical operators in the implementation of various aspects of the programme will send periodic reports to the national coordinators. In addition, the Environment Departments will provide half-yearly environmental monitoring reports. Joint supervision and mid-term review missions in the 3rd year of the programme will be carried out by the Bank and the other partners in order to make the necessary adjustments for achievement of the objectives. The programme will be also supervised periodically (1.5 times per year) by joint missions of the ADF and other co-financiers, and will be closely monitored by the Bank offices in Cameroon, Nigeria and Chad. The LCBC Secretariat and national coordination units will prepare quarterly progress reports, programme and annual reports, annual budgets, as well as their implementation reports. At the end of the programme, the Governments and LCBC will prepare a completion report. 4.3 Governance PRODEBALT will be implemented with the assumption of the consolidation of socio-political stability and democracy, the promotion of good governance and the fight against corruption in the countries. It will be implemented according to provisions of the Water Charter under preparation with the support of the African Water Facility and the principles of management and good governance for sustainable development of the basin defined in various agreements. At the level of the LCBC, the new organizational chart has instituted various organs which contribute to good governance; namely the Basin Observatory, the offices of the Financial Comptroller and the Legal Adviser, the Consultative Committee of donors, and the stakeholders’ committee. Furthermore, the various studies relating to the water resources of the basin, envisaged or ongoing, will provide greater insights into the dynamics of the resource, and will thus facilitate consensus on water sharing methods, all of which will contribute to mitigate the risks of conflict in the area. The institutional procurement framework will improve with the envisaged recruitment of an accounting manager in each coordination unit to ensure compliance with procurement rules and procedures. The involvement of beneficiaries in decision-making at the level of committees, groupings and communities in the preparation of development and management plans will foster good local governance. 4.4 Sustainability 4.4.1 The Lake Chad Basin Sustainable Development Programme stems from the desire of the LCBC Member States and the donor community to implement Vision 2025 and the strategic Action Plan (SAP) of the LCBC. The Member States have entirely financed studies on the transfer of part of the water from the Oubangui River to Lake Chad for 6 million dollars.

19

PRODEBALT will contribute to poverty reduction, environmental protection of the Lake, sustainable management of natural resources, as well as the strengthening of regional co-operation and integration. The beneficiaries will participate directly in the development and validation of the framework management plans for fisheries, forests and pasturelands, through their management and monitoring committees. The sustainability of the programme also depends on the participation of beneficiaries in the financing of the community infrastructure (landing quays, water points, etc), and development works (soil conservation, fruit and forest plantations, etc). The beneficiaries will also take part in financing the maintenance of the socio-economic infrastructure and their operation through the operators management committees put in place. The simplicity of the infrastructures envisaged and the building of the capacities of producer associations and the decentralized technical services also contribute to fostering the sustainability of the investments. 4.4.2 The overall recurrent costs are estimated at UA 1.86 million per year in year 6, of which UA 0.75 million financed by the ADF; UA 0.77 million by the Governments and beneficiaries and UA 0.34 million by the other co-financiers. The costs include the maintenance of the infrastructure, equipment and vehicles. The programme coordination staff will not entail recurrent expenses as they will be appointed mainly by the Administrations or will be recruited according to contracts of specified duration not exceeding the programme duration. At the end of the programme, the beneficiaries, through the management committees, will finance the maintenance of the socio-community infrastructure, while the maintenance costs of equipment and buildings will be borne by the Governments. The recurrent costs after the end of the programme, estimated at UA 0.37 million annually per country, will be easily borne by the respective national budgets. 4.5 Risk Management 4.5.1 In the short term, climatic hazards that could occur at any time during the implementation phase could aggravate the vulnerability of the ecosystems. The Programme envisages a component whose activities are aimed at adapting the production systems to climate change. Oil exploration activities in the Lake basin could in the long term generate risks of pollution. In this regard, various studies on the analysis of the quality of ground and surface water in the basin will help to improve monitoring and prevent any risks of pollution. Furthermore, the risk of exhaustion of the fishery resources due to illicit fishing will be mitigated by the putting in place of a framework plan for the management of fisheries envisaged by the Programme. The preparation of fishery statistics will help to monitor the trends of fishery resources. The structures and details of implementation of the Programme activities were designed in such manner as to foster the participation of the beneficiaries. 4.5.2 In the medium term, the various foreseeable risks during the phase of ownership by the beneficiaries concern the prevailing insecurity in the area, the obstacles to free movement of people and goods, the presence of refugees, the climatic hazards, and the lack of regional co-operation and adhesion of the populations. The efforts of the international community to resolve the Darfur crisis could lead to the reintegration of refugees and pacify the Lake area. There are also other risks related to bad administrative and political governance that could occur in the various countries concerned. Political problems of governance can affect the political commitment of Member States to the LCBC. The mitigation of this risk depends on strengthening of dialogue with Member States by the Bank during resource programming (PRSP) and project supervision missions.

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4.6 Knowledge Development Activities relating to training and enhancement of the organizational capacities of the communities will be undertaken while ensuring that they involve women as a priority. The programme has included the preparation of the water erosion and silting master plan and a regional fisheries management framework plan. The various water resources analysis and monitoring studies will provide insights into the hydrological system of the Lake basin, and will help to improve information on the interactions between ground water and surface water. The observatory created within the LCBC will contribute to the collection, analysis and dissemination of vital scientific data likely to contribute to decision-making on the Lake basin.

5. LEGAL FRAMEWORK 5.1 Legal instrument The legal framework of the PRODEBALT will be the grant protocol agreement between the ADF and the Lake Chad Basin Commission (LCBC) comprising Cameroon, Niger, Nigeria, Central African Republic and Chad. The documents thus signed to the satisfaction of the parties will include the usual terms and conditions.

5.2 Conditions for Bank intervention

5.2.1 The condition for effectiveness is the signing of the protocol agreement between the ADF and the LCBC comprising Cameroon, Niger, Nigeria, the Central African Republic and Chad. 5.2.2 As a condition precedent to the first disbursement of the funds, the Executive Secretariat and the Member States of the LCBC shall provide to the Bank:

- evidence of the establishment of the new structure whose organizational chart was adopted by the last extraordinary session of the LCBC Council of Ministers, at least through the recruitment of the Directors of departments and services of the Executive Secretariat;

- evidence of the appointment of the Regional Coordinator and National

Coordinators of PRODEBALT. The qualifications and experience of these officials must be acceptable to the Fund.

5.2.3 As other condition, the Executive Secretariat and the Member States of the LCBC shall provide evidence of the establishment of the Regional Steering Committee and the National Inter-Ministerial Steering Committees. 5.3 Compliance with Bank policies

(X) the programme complies with all the applicable rules of the Bank. (X) the programme complies with all the other applicable policies.

6. RECOMMENDATION Management recommends that the Board of Directors should approve the proposal for a grant of UA 30 million to the LCBC comprising Cameroon, Niger, Nigeria, Central African Republic and Chad, to finance the Lake Chad Basin Sustainable Development Programme in accordance with the conditions specified in this report.

ANNEXE I Page 1 de 1

COMPARATIVE SOCIOECONOMIC INDICATORS Cameroon, Niger, Nigeria, Central African Republic, Chad

Year Group of Countries Africa Developing

Countries Developed Countries Basic Indicators Area ('000 Km²) 4 573 30 307 80 976 54 658 Total Population (millions) 2007 196.0 963.7 5 448.2 1 223.0 Urban Population (% of Total) 2007 37.0 39.8 43.5 74.2 Population Density (per Km²) 2007 42.9 31.8 65.7 23.0 GNI per capita (US $) 2006 639 1 071 2 000 36 487 Labour Force Participation - Total (%) 2005 40.5 42.3 45.6 54.6 Labour Force Participation - Female (%) 2005 37.6 41.1 39.7 44.9 Gender-related Development Index Value 2005 0.448 0.486 0.694 0.911 Human Develop. Index (rank among 174 countries) 2005 NA. NA. NA. NA. Popul. Living below $1a Day (% of Population) 2005 66.1 36.8 … … Demographic Indicators Population Growth Rate - Total (%) 2007 2.4 2.3 1.4 0.3 Population Growth Rate - Urban (%) 2007 3.7 3.5 2.6 0.5 Population below 15 years (%) 2007 44.0 41.0 30.2 16.7 Population of 65 years or below (%) 2007 3.1 3.5 5.6 16.4 Dependency Ratio (%) 2007 88.8 80.1 56.0 47.7 Sex Ratio (per 100 female) 2007 100.0 99.3 103.2 94.3 Female Population 15-49 years (% of total population) 2007 23.2 24.2 24.5 31.4 Life Expectancy at Birth - Total (years) 2007 48.1 54.2 65.4 76.5 Life Expectancy at Birth - Female (years) 2007 48.5 55.3 67.2 80.2 Crude Birth Rate (per 1, 000) 2007 40.3 36.1 22.4 11.1 Crude Death Rate (per 1, 000) 2007 16.3 13.2 8.3 10.4 Infant Mortality Rate (per 1,000) 2007 107.8 85.3 57.3 7.4 Child Mortality Rate (per 1,000) 2007 183.0 130.2 80.8 8.9 Total Fertility Rate (per woman) 2007 5.4 4.7 2.8 1.6 Maternal Mortality Rate (per 100, 000) 2004 1 024 723.6 450 8 Women Using Contraception (%) 2004 13.4 26.6 61.0 75.0 Health and Nutrition Indicators Physicians (per 100,000 people) 2005 21.8 39.6 78.0 287.0 Nurses (per 100,000 people) 2005 125.6 120.4 98.0 782.0 Births Attended by Trained Health Personnel (%) 2004 47.4 50.4 59.0 99.0 Access to Safe Water (% of Population) 2006 52.6 62.3 80.0 100.0 Access to Health Services (% of Population) 2004 54.2 61.7 80.0 100.0 Access to Sanitation (% of Population) 2004 51.0 45.8 50.0 100.0 Percent. Adults (aged 15-49) living with HIV/AIDS 2005 3.8 4.7 1.3 0.3 Incidence of tuberculosis (per 100,000) 2005 263.8 300.7 275.0 18.0 Child Immunization Against Tuberculosis (%) 2006 68.7 83.7 85.0 93.0 Child Immunization Against Measles (%) 2006 63.4 75.4 78.0 93.2 Underweight Children (% of children under 5 years) 2004 29.3 28.6 27.0 0.1 Daily Calorie Supply per Capita 2004 2 581 2 436 2 675 3 285 Public Expenditure on Health (as % of GDP) 2005 1.3 2.4 1.8 6.3 Education Indicators Gross Enrolment Ratio (%) Primary School - Total 2006 88.9 96.4 91.0 102.3 Primary School - Female 2005 83.7 92.1 105.0 102.0 Secondary School - Total 2006 62.1 44.5 88.0 99.5 Secondary School - Female 2004 60.7 41.8 45.8 100.8 Primary School Female Teaching Staff (% of total) 2005 45.9 47.5 51.0 82.0 Adult Illiteracy Rate - Total (%) 2007 31.6 33.3 26.6 1.2 Adult Illiteracy Rate - Male (%) 2007 25.0 25.6 19.0 0.8 Adult Illiteracy Rate - Female (%) 2007 38.0 40.8 34.2 1.6 Percentage of GDP Spent on Education 2006 … 4.5 3.9 5.9 Environmental Indicators Land Use (Arable Land as % of Total Land Area) 2005-07 25.1 6.0 9.9 11.6 Annual Rate of Deforestation (%) 2000-07 2.3 0.7 0.4 -0.2 Annual Rate of Reforestation (%) 2000-07 5.7 10.9 … … Per Capita CO2 Emissions (metric tons ) 2005-07 0.27 1.0 1.9 12.3

Source : Database of the ADB Statistics Department October 2008 World Bank WDI; ONAIDS; UNSD; WHO, UNICEF, WRI, UNDP, National Reports

Notes: NA: Not Applicable ; … : Data Not Available

ANNEXE II Page 1 de 1

Table of ADB Portfolio in the Countries Country Cameroon Niger Nigeria CAR Chad Sector Multinational (Water map, HIV/AIDS)

Amount disbursed

LCBC 13840000

Agriculture Amount approved

62000000 87454982.00 60000000 105460000

Amount disbursed

11436966.26 60428402.17 5610000 60100000

Finance & industries

Amount approved

25458416

Amount disbursed

16903100.73

Transport Amount approved

5460704.43 38406290.00 35270000

Amount disbursed

21954756.43 32750677.47 00

Water& sanitation

Amount approved

400000 15581178.00 51000000

Amount disbursed

237904.10 14850692.66 00

Energy Amount approved

20225000.00

Amount disbursed

18475563.50

Telecom Amount approved

1800000.00

Amount disbursed

1400000.00

Multisector Amount approved

3180000 302874009 4000000 3647000 22820000

Amount disbursed

316586.44 216199831.66 3030000 0 16950000

Social Amount approved

57480000 78698143.00 84740000 20730000

Amount disbursed

15276748.45 42298825.65 35940000 11870000

Environment Amount approved

1700000

Amount disbursed

1510000

Operations Amount approved

26150000

Private sector Amount approved

135000000

Amount disbursed

120000000

Amount approved

177740704.43 302874009.00 397860000 3647777 149110000

Total Amount disbursed

128513788.75 216199831.66 179930000 0 88920000

ANNEXE III Page 1 de 1

Key related Projects financed by the Bank and other Development Partners of the Countries

Projects Donor Amount (in UA million)

Remarks

Transfer of water from the Oubangui

Nigeria and LCBC member States

6.1 Study under way

Institutional Support for LCBC Transborder Diagnostic Analyses Projects control

GEF/ World Bank/UNDP

6.16 To be completed by end- December 2008 Preparation 2nd phase under way for 2010

Institutional support for LCBC and Member States Study on ground and surface water analyses. Development risks of the Chari-Logone sub-basin

European Union 3.68 Phase 1 ongoing

Institutional support for LCBC Studies on climate change scenarios during 3rd phase 2011-2013

GTZ 1.31

Analysis of ground water and modelling during the 2nd phase 2010-2013

BGR 2.01 Phase 1 ongoing

Integrated development of the Chari-Logone sub-basin

IsDB 12.24

Under way

LCBC HIV-AIDS control Initiative

ADF 10.00 Ongoing

Chad NRMP ADF 06.27 Ongoing PRODEPECHE ADF 10.00 Ongoing

ANNEXE IV Page 1 de 1

ANNEX IV

Map of the project area Site Map of the Basin in Africa

Map of the Provinces, Regions and States covered by the Basin in Cameroon, Niger, Nigeria, CAR and Chad

Legend: Boundary line between LCBC countries States, Regions and Provinces of the Conventional Basin States, Regions and Provinces outside the Basin

7. Annex III: The study on the LCBC Water Charter, which will cost UA 11.10 million, was added to the list of related projects financed by the bank and other development partners of the countries.

These modifications have been reflected in the Outcome of Negotiations and the Grant Protocol Agreement.

AFRICAN DEVELOPMENT FUND

BOARD OF DIRECTORS

Resolution N° F/[ ]/2008/[ ]

Adopted at the [ ] Meeting of the Board, on [ ] 2008

Multinational - Grant to the Lake Chad Basin Commission to finance part of the foreign currency cost and part of the local currency cost of the

Lake Chad Basin Sustainable Development Programme (PRODEBALT)

THE BOARD OF DIRECTORS, HAVING REGARD to Articles 1, 2, 11, 12, 14, 15, 16 and 26 of the Agreement Establishing the African Development Fund (the "Fund"), the ADF-11 financing guidelines provided in the Report on the Eleventh General Replenishment of the Resources of the Fund, the currently applicable ADF-11 Country Resource Allocation, and the Grant proposal contained in document ADF/BD/WP/2008/141 as well as the corrigendum thereto (collectively, the "Appraisal Report"); HAVING CONSIDERED (i) the Guidelines for the Financing of Multinational Operations adopted by the Board of Directors on 5 May 2000 and (ii) the Strategic and Operational Framework for Regional Operations approved on 7 March 2008 by the Boards of Directors of the Bank and the Fund; NOTING the availability of sufficient resources to enable the Fund to commit the amount of the Grant; DECIDES as follows: 1. To award to the Lake Chad Basin Commission, from the resources of the Fund, a Grant of an

amount not exceeding the equivalent of Thirty Million Units of Account (UA 30,000,000) to finance part of the foreign currency cost and part of the local currency cost of the Lake Chad Basin Sustainable Development Programme (PRODEBALT);

2. Approves that the financing provided pursuant to this Resolution would be a grant in support of

Regional Public Goods and would not require cost-sharing from the Performance Based Allocation of the beneficiary countries under ADF 11;

3. To authorize the President of the Fund to conclude with the Lake Chad Basin Commission a

Protocol of Agreement under the terms and conditions specified in the General Conditions Applicable to Protocols of Agreement of the Fund and in the Appraisal Report;

4. The President may cancel the Grant if the Protocol of Agreement is not signed within one hundred

and eighty (180) days from the date of approval of the Grant; and 5. This Resolution shall become effective on the date above-mentioned.