World Bank Document · 2016. 7. 12. · CURRENCY EOUIVALENTS Currency Unit Yemeni Dinar (YD) Yemeni Rial (YR1) YD 1 YRIs 26 -US$2.17 YRl 1 YD 0.038 US$ 0.083 US$ 1 YD 0.461 - YRls

Document of

The World Bank

FOR OFFICIAL USE ONLY

C -4? -2 o- & F_r-1': t I W:s '; ' '1 ,

Report No. 8429-YEM

STAFF APPRAISAL REPORT

REPUBLIC OF YEMEN

FOURTH FISHERIES DEVELOPMENT PROJECT

MAY 20, 1991

Agriculture Operations DivisionCountry Department IIIEurope, Middle East and North Africa Region

Ilis document has a restrcted distIbut and may be used by recdeiw only in te peroname oftheir offlicf dIes Its c_ntet may ad ohewie be dicosed w WoWdd Rak authod=aton

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CURRENCY EOUIVALENTS

Currency Unit Yemeni Dinar (YD)Yemeni Rial (YR1)

YD 1 YRIs 26 - US$2.17YRl 1 YD 0.038 US$ 0.083US$ 1 YD 0.461 - YRls 12.00

(As of April 1991)

WEIGHTS AND MEASURES

1 kilometer (km) - 0.621 miles1 square kilometer (kn2) 0.386 square miles1 Kilogram (kg) 2.205 pounds1 metric ton (mt) 0.98 long ton - 2,205 pounds

PRINCIPAL ABBREVIATIONS AND ACRONYMS USED

AFESD Arab Fund for Economic and Social DevelopmentCACB Cooperative and Agriculture Credit BankCFC Coastal Fisheries CorporationDANIDA Danish International Development AgencyEEC Commission for European CommunitiesFAO/CP Food and Agricultural Organization/World Bank

Cooperative ProgramFMDC Fisheries Manpower Development CenterGCDFR General Corporation for the Development of Fish

ResourcesGDP Gross Domestic ProductGRP Glass Reinforced PlasticGUYW General Union of Yemeni WomenICB International Competitive BiddingIDA International Development AssociationIFAD International Fund for Agricultural Development1F Ministry of FisheriesMSRRI Marine Science and Resources Research InstituteNCFM National Corporation for Fish MarketingPCEP Public Corporation for Electricity and PowerPCR Project Completion ReportPDRY People's Democratic Republic of YemenPIU Project Implementation UnitPPAR Project Performance Audit ReportPPF Project Preparation FacilityPSC Project Steering CommitteeROY Republic of YemenUNDP United Nations Development ProgrammeYAR Yemen Arab RepublicYFC Yemen Fisheries CorporationYSJO Yemeni-Soviet Joint OperationYSJV Yemeni-Soviet Joint Venture

GOVERNMENT OF THE REPUBLIC OF YEMENFISCAL YEAR

January 1 - December 31

FOR OFFICIAL USE ONLYUt=C COFS I

FOURTH FISHAEI DVEW= ET

STAFF APAISAL P

table of Contents

Chapter, .......................... aNo.

Credit and Project Summary .. . . . . . . . i-i.i

I. INTRODUCTION .1................. . .

II. THE FISHERIES SECTOR . . . . . . . . . . . . . . . . 3

A. Sector Description . . . . . . . . . . . . . . . 3B. Role in the Economy and

Sectoral Performance . . . . . . . . . . . . . 6C. Past Government Policy and Strategy . . . . . . 7D. Sectoral Institutions . . . . . . . . . . . . . 9E. Impact of Unification . . . . . . . . . . . . . 16F. IDA and Other Donor Involvement in the Sector . 16G. Future Government Policy and IDA Strategy . . . 19

III. THE PROJECT . . . . . . . . . . . . . . . . . . . . 20

A. ±eroject Concept and Objectives . . . . . . . . . 20B. Project Area . . . . . . . . . . . . . . . . . . 21C. Project Description . . . . . . . . . . . . . . 21D. Detailed Features . . . . . . . . . . . . . . . 22

IV. PROJECT COSTS AND FINANCING . . . . . . . . . . . . 28

A. Project Cost Estimates . . . . . . . . . . . . . 28B. Financing Plan .. 29C. Procurement .. 30D. Disbursements . . . . . . . . . . . . . . . . . 33

V. ORGANIZATION, MANAGEMENT AND IMPLEMENTATION . . . . 35

A. Project Implementation . . . . . . . . . . . . . 35B. Project Operations . . . . . . . . . . . . . . . 37C. Implementation Schedule . . . . . . . . . . . . 39D. Monitoring, Evaluation and Reporting . . . . . . 39E. Accounts and Audits . . . . . . . . . . . . . . 41F. Environmental Impact . . . . . . . . . . . . . . 41

This report is based on the findings of an appraisal mission to the ex-People's Democratic Republic ofYemen in November 1989, comprising Francesco Scaduto-Nendola. Financial Analyst (Leader), Gert vanSanten, Fisheries Economist (IDA); Henry Gunawardena, Fisheries Consultant (FAO/CP); Stewart Waddell,Transport Consultant; Niels Dryanne, Civil Engineer Consultant; and Cyrus Hamlin, Naval Architect (IDAconsultants); Nicholas Jarman, Institutional Specialist-, and Petra Splietboff. Huumn ResourcesSpecialist (IFAD Consultants); and post-unification discussions between the Government and Rahul Raturi.Agricultural Economist (IDA), during a mission to the Republic of Yemen in December 1990.

This document has a restricted distribution and may be used by reoipients only in the performance oftheir officiaL duties. Its contents may not otherwise be disclosed without World Bank Authorization

ChX2 P"e No.-

VI. PRODUCTION, ARMXETIN GADM RICES . . . . . . . . . . 42

A. Production . . . . . . . . . . . . . . . . . . . 42B. Marketing and Prices . . . . . . . . . . . . . . 43

VII. BENEFITS AND JUSTIFICATION . . . . . . . . . . . . . 44

A. Beneficiaries and Financial Benefits . . . . . . 44B. Economic Benefits . . . . . . . . . . . . . . . 46C. Cost Recovery . . . . . . . . . . . . . . . . . 49D. Project Risks . . . . 0 . . . . . . . . . . . . so

VII. AGREEMENTS REACHED AND RECO)IENDATION . . . . . . . 51

A. Assurances . . . . . . . . . . . . . . . . . . . 51B. Conditions . . . . . . . . . . . . . . . . . . . 53C. Recommendation . . . . . . . . . . . . . . . . . 53

TABLES IN THE

4.1 Project Costs . . . . . . . . . . . . . . . . . . . 294.2 Project Financing Plan . . . . . . . . . . . . . . . 304.3 Procurement Plan . . . . . . . . . . . . . . . . . . 314.4 Disbursement Plan . . . . . . . . . . . . . . . . . 344.5 Estimated Disbursements Schedule . . . . . . . . . . 346.1 Catch Composition .437.1 Financial Rates of Return . . . . . . . . . . . . . 457.2 Crew Income and Long-Term Debt Service Coverage . 467.3 Financial Rates of Return (Assuming 50%

Depreciation in Local Currency) . . . . . . . . . . 46

ANNS

1. The Fisheries SectorTable 1: Total Fish Landings in ex-PDRY . . . . 54Table 2: Fish Landings in ex-YAR . . . . . . . 55Table 3: Fisheries Cooperatives Production

in ex-PDRY . . . . . . . . . . . . . 56Table 4: Number of Cooperative and Private

Fishermen, Fish Landing inex-PDRY: 1988 . . . . . . . . . . . . 57

Table 5: Fish Exports from ex-PDRY: 1982-1989 58

2. National Corporation of Fish MarketingTable 1: Historical Income Statements (YD '000) 59Table 2: Historical Balance Sheets (YD '000) , 60

Wue No2

3. Cooperative and Agriculture Credit BankTable 1: Historical Income Statements (YRls 000) 61Table 2: Historical Balance Sheets (YRls '000) 62

4. Financial Results of the Cooperatives . . . . . . . 63

5. Proposed Fisheries Facilities (Summary) . . . . . . 64

6. Proposed Training Program . . . . . . . . . . . . . 65

7. Development of Women in Fishing Communities . . . . 66

8. Summary of Technical Assistance . . . . . . . . . . 69

9. Terms of Reference for Project's MainTechnical Advisers . . . . . . . . . . . . . . . . 70

10. Cost TablesTable 1: Summary Accounts - Cost Summary . . . . 75Table 2: Summary Accounts by Year . . . . . . . 77Table 3: Project Components by Year . . . . . . 78Table 4: Summary Accounts by Project Component . 79

11. Project Financing Plan . . . . . . . . . . . . . . . 80

12. Estimated Schedule of Disbursement of IDA Credit . . 81

13. Summary of Implementation Schedule . . . . . . . . . 82

14. Supervision Plan . . . . . . . . . . . . . . . . . . 84

15. Financial AnalysisTable 1: Financial Fish Prices . . . . . . . . 85Table 2: Main Assumptions for Boat Models . . . 86Table 3: Boat Model: GRP 7.6 m . . . . . . . . 87Table 4: Boat Model: GRP 9.4 m . . . . . . . . 88Table 5: Boat Model: Sambuk . . . . . . . . . . 89Table 6: Boat Model: Intermediate Technology

Vessel . . . . . . . . . . . . . . . . 90

16. Economic AnalysisTable 1: Economic Fish Prices for Traded Fish 91Table 2: Calculation of Economic Beach Landing

Prices for Fish . . . . . . . . . . . 92Table 3: Economic Calculations for

Fokum-Ras Imran Road . . . . . . . . 93Table 4: Economic Rate of Return:

Intermediate Technology Vessels . . . 94Table 5: Economic Rate of Return . . . . . . . 95

Zam No.

17. Cash Flow ProjectionsTable 1: Mukalla Cooperative . . . . . . . . . 96Table 2: Shihr Cooperative . . . . . . . . . . 97Table 3: Diss/Al Hami (including Al Qarn)

Cooperative . . . . . . . . . . . . . 98Table 4: Quaseyr (including Musainah)

Cooperative . . . . . . . . . . . . . 99Table 5: Sayhut Cooperative . . . . . . . . . . 100

18. Selected Documents and Data Available inthe Project File . . . . . . . . . . . . . . . . . 101

IBRD 22548 : Republic of Yemen - Fourth Fisheries Development Project

REPUBLIC OF YMEN

2MUM Fi_SHERIES DEVE PMRNT PROJECT

STAFF APPRAISAL REPORT

Credit and Project Summary

Borrower : Government of the Republic of Yemen (ROY)

Beneficiar : Private FishermenFishermen's CooperativesCoastal Fisheries Corporation (CFC)National Corporation for Fish Marketing (NCFM

Credit Amount SDR 9.4 million (US$13.2 million equivalent)

Terms : Standard IDA terms with 40 years maturity

IWementing Agency Ministry of Fisheries (MF)

Project Oblectivesand Description The objectives of the proposed project are to:

(i) expand fish catches and improve processing,for both local consumption and export; (ii)improve the efficiency of domestic and exportmarketing of fish; (iii) improve the assessmentand management of the fish resources in ROYwaters; and (iv) help improve the position ofwomen in fishing communities. The project wouldinclude: (a) the construction of facilities forfish handling in seven villages and a roadbetween two fishing villages to improve access;(b) the import of intermediate technoloh--vessels, construction materials for boats,outboard engines and gear, insulated andrefrigerated trucks and plastic boxes;(c) technical assistance for CFC, NCFK, theMariue Science and Re3ources Research Institute(14SRRI), cooperatives and MF; (d) thestrengthening of MSRRI's fish stock assessmentand environmental research; and (e) services towomen in fishing communities.

Benefits and Risks : Direct benefits of the project include:increased fish production and exports; lesscostly fish marketing; and increased employmentin the poorest areas of southern Yemen.Indirectly, the project would help support theGovernment's efforts to adjust the structure ofthe sector to the impact arising fromunification, and help ease the strains of theadjustment process. The estimated Aconomic rateof return is 31 percent. Cost overrun is

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unlikely because project investment costs werederived from ongoing project experience. As theexisting PIU would provide continuity forproject developments, delays in implementationwould be unlikely. Sensitivity tests show thata two-year lag in incremental net benefits wouldreduce ERR to 16 percent. The main risk of theproject would be possible delays inimplementation, and slowing down of the economicreform process, caused by uncertainties arisingfrom the revised responsibility structure withinthe Government as a result of unification of thetwo Yemen republics. However, the post-unification structure of MF shows goodcontinuity with past operations, therebyminimizing this risk. Also, MF has shown clearcommitment to the sector's adjustment process,which is proceeding well. A second riskconcerns the effectiveness of technicalassistance to improve management and financialperformance of the fisheries cooperatives: thisrisk would be minimized by ensuring that ROYselect high caliber specialists.

Costs. linnelnn and DisburaeM= nt Smma

gEtimates Proisct Costsl8Total

Foreign BaseLocal reign Total Exchange Costs- .(US$ 14) -() -- --

A. Village and Fish ProcessingFacilities 2.6 5.7 8.3 69 26

B. Transport Facilities 0.1 1.3 1.4 95 5C. Fishing Vessels and Gear 1.9 13.1 15.0 88 48D. Fish Stock Management 0.1 1.0 1.1 91 3S. Training 0.2 0.3 0.5 57 2F. Development of Women in

Fishing Communities 0.3 0.6 0.9 62 3G. Technical Assistance and

Coordination 1.2 3.2 4.4 73 14

.wotal Baseline Costs 6.4 25.2 31.6 80 100

Physical Contingencies 0.6 2.6 3.2 74 10Price Contingencies 1.0 4.0 5.0 80 16

Total Project Costs LJQ 1.i 9. 22 2

I/ Exclusive of duties and taxes. Totals may not add updue to rounding.

- its. -

Iuc innS Plan:

Percent ofFincIng Source Lg.al EQri istn l Itaca

---... (US$ M) .-....

Government 3.8 0.0 3.8 10IDA 0.8 12.4 13.2 33EEC 2.9 13.4 16.3 41IFAD 0.5. 6.O2

Total 810 39A

stiMte-d Gompletion Date: December 31, 1998

Eatimated Disbursements:

IDI. Fispal Year1993 12 1995 2 221 122k9-. S )--------------(s M)----------------------

Annual 0.4'l 1.5 2.7 2.4 2.3 2.3 1.4 0.2cumulative 0.4 1.9 4.6 7.0 9.3 11.6 13.0 13.2

1/ Project Preparation Facility Advance

Econoiec Rate of Return: 31 percent

REPUBLIC4 Q YEMSN

POURTH FISHERIES DEVELOIMENT PROJECT

STAFP APPRAISAL REPORT

I. XNTRODU=10

1.01 The proposed project was appraised in November 1989, prior tothe unification of the two Yemen republics, which took place in May 1990;the project was to assist the fisheries sector in the ex-People'sDemocratic Republic of Yemen (PDRY).' Subsequently, an IDA missionvisited tho Republic of Yemen (ROY) in December 1990, to assess thechanges wV.ich had taken place in the fisheries sector as a result ofunification and to review the project's design to ensure that it continuedto address the principal constraints of the sector. As a result of thesediscussions, some minor changes were made to the project's design and toimplementation arrangements, to better reflect the new environment inpost-unification ROY. Nevertheless, the overall concept, objectives andscale of the project remain unchanged; it would continue to focus on thesector's requirements in southern Yemen. IDA and other foreign lendershave already made substantial investments in the fisheries sector in thenorthern part of the new country, and no substantial programs areenvisaged in that area for the next few years. The International Fund forAgricultural Development (IFAD) has recently negotiated a loan thatincludes funds to import boat building materials, wooden hulls, boatengines, gear, tools, etc. for sale in northern Yemen. The proposedproject allows for some extension of activities to the north, particularlythose related to fish resource management and the marine environment.

1.02 The newly created Republic of Yemen (ROY) has an area of about537,000 km? of predominantly rugged desert, with a harsh arid climate andfew natural resources. Potentially cultivable land constitutes less than3 percent of the total area. The population is relatively sparse, notablyin the south, and estimated at about 11.5 million. The country's mainnatural resources are fish and oil reserves.

1.03 The unification of the Yemen Republics has brought together twoeconomies of different orientation. The North has proven oil and gasdeposits, tourism potential and a dynamic market system. The South alsohas proven, though modest oil reserves, large fishery resources, astrategic location and the Port of Aden. With a larger market,unification offers considerable potential gains from economies of scalefor many industries. However, unification also brings together twoeconomies that are faced with serious macro-economic imbalances, whichneed to be addressed urgently.

1.04 Before unification, the economic structure of the North wasundergoing significant changes as oil extraction increased. Agriculture,

.J/ All references to PDRY reflect the pre-unification territory of southernYemen.

however, remaired the dominant sector (24 percent of GDP), followed bygovernment services. In the South, government services were by far themost important sector (33 percent of GDP during 1987-89), followed byagriculture. In the combined setting, agriculture (growth in which isconstrained by limited arable land and a shortage of water) remains themost important sector, followed by government services.

1.05 Virtually all production in both parts of the country still goesto consumption, and gross domestic savings have been negative. At thesame time, fixed investment has been high, particularly in the South (39percent of GDP during 1987-89; in the North, it was 14 percent).Nevertheless, the fact that these levels of investment did not generategrowth is a cause for concern. With a lack of domestic savings,investments in both parts of the country were financed by externalresources, in the form of workers' remittances, grants or loans. Theprolonged period of dependence on external borrowings has created aprecarious external debt situation, with total debt outstanding as of end-1989 estimated at US$5.8 billion, or over 70 percent of GDP; an estimated15 percent was represented by short-term borrowings. With regard topublic finances, both parts of the country have experienced prolongedbudget deficits, with the combined deficit for 1989 estimated at 15percent of GDP. The cumulative effects of the continued large deficitsand their financing, largely by borrowing from the Central Bank, have ledto high inflation, an overvalued exchange rate, and balance of paymentscurrent account deficits. With a small merchandise export base andpersistent excess demand, balance of payments current account deficitshave ranged between 12 and 18 percent during 1987-89.

1.06 The imbalances, which were already being aggravated by thetransition into a unified country, have, in addition, been severelyaffected by the recent crisis in the Middle East. In the immediatefuture, the effects of the crisis will be to reduce remittances andfurther worsen the already high balance of payments deficit, as well asexacerbate the serious unemployment problem of the country. To addresssome of the problems emerging from the crisis, IDA is presently processingan Emergency Recovery Credit.

1.07 Besides oil, fisheries is perhaps the only sector in ROY withsignificant export prospects over the medium term. While data for theunified -;ountry are not presently avatlable, in ex-?DRY, the exports offish (excluding direct shipments of the foreign fleet) grew from US$6.1million in 1982 to US$18.0 million in 1989; they represented over 16percent of all exports, excluding re-exports of oil products. With acoast line extending over 2,000 km, ROY has very substantial fishresources, particularly in the Gulf of Aden. With a few exceptions, mostof these resources are underexploited and the current average annual catchof about 107,000 metric tons (mt) can be substantially increased on asustainable basis. Since several species being caught in ROY waters enjoygood international markets, the expansion of fish production is a prioritydevelopment objective for the country.

II. HflSflhkIS -ES9Tfl

A.

Fish Resources

2.01 The coastline of ROY extends for about 2,000 km, with around1,500 km in southern Yemer. along the Gulf of Aden (Map, IBRD 22548). Thewind and sea current systems are seasonal, with a strong monsoon duringMay to August. Winds and deep-sea currents cause pronounced upwellings ofcold, nutrient rich waters along the southern coast, resulting in one ofthe highest primary productivity levels in the world; however, they alsocause local sea conditions to be susceptible to frequent changes,resulting in major short-term fluctuations in the size and location offish stocks. The most productive fishery grounds are considered to bealong the eastern part of the southern coast, notably off the Hadramawtand Al Mahrah Governorates. Knowledge of biological parameters of stocksof individual fish species varies considerably. For the main commerciallyimportant exportable species of the south--lobster and cuttlefish--majorefforts have been made to assess sustainable yields; however, for mostother stocks, knowledge is limited and subject to a large margin of error.As compared to the south, overall fish resources along the northern coast-line are much smaller; at the same time, very little detailed stockassessmert has been done to estimate their actual size, except for asingle assessment of shrimp resources during the early 1980s.

2.02 The south's most valuable commercial resources are among thespecies which are available in smaller quantities, notably the £RokandDeep Sea Lobster and Cuttlefish, with annual potential yields of some 600-900 mt and 7,000-8,000 mt respectively. Lobster and cuttlefish resourcesappear heavily exploited; cuttlefish resources are currently recoveringfrom past heavy fishing efforts. It is for these commercially importantspecies and for demersal fishi that resource management efforts should befurther strengthened to avoid the uneconomic or harmful exploitation ofresources. In the north, the nature of the catches and the size ofindividual fish landed strongly indicate that resources are lightly fishedand that fishing efforts are relatively modest. A large part of thenorthern fleet has, in the past, fished seasonally in Saudi Arabianwaters.

2.03 Traditional fishing grounds extend to about 12 km seaward, butmost small-scale fishing takes place within 4 km of the shore. Fishresources close to the coast, and those surrounding sea-mountains off theHadramawt Governorate, can only be exploited by small-scale fishingvessels. Although ROY has a 200 nautical mile exclusive economic zone,most industrial fishing takes place within some 30 km of the shore, and islargely limited to the Gulf of Aden. Industrial vessels are not allowedto operate within five km of the shore, but violations are occasionallyreported.

J./ Demersal fish are those which remain close to the bottom of the seas

-4-

Fishb Productio~

2.04 Southern Yemen. The rich fish resources of the south arecurrently exploited by: boats belonging to traditior,' coastal fishermen;a fleet of about seven ageing industrial vessels owned by the YemenFisheries Corporation (YFC); four semi-industrial vessels owned by theCoaatal Fisheries Corporation (CFC); about five foreign and five localindustrial vessels operated under a recently established Yemeni-SovietJoint Venture (YSJV); and about fifteen industrial vessels from theYemeni-Soviet Joint Operation (YSJO).

2.05 During 1984-1988, total catches averaged some 85,000 mt, with apeak of 91,000 nt in 1986 (Annex 1, Table 1), compared with an average of75,000 mt for 1980-1983. Reported catch data indicate that the share offoreign vessels (the fleet of licensed vessels and those operating underjoint-venture arrangements) has decreased rapidly--from 54 percent in 1986to 41 percent in 1988--and Ls expected to continue to decline in thefuture. The share of the traditional fleet has increased from 37 percentto 52 percent over the same period. Although these trends have beenconfirmed, the officially reported data need to be approached withcaution; notably, the reported landings of licenced foreign vessels alk4private fishermen are doubtful. In terms of volume, an estimated 50-60percent of the catch consists of small pelagic species (mackerel,sardines), while the rest consists of cuttlefish, lobster, large pelagicspecies (tuna, shark, king fish) and demersal species (breams, snappers,rock cod, etc.). All fish originate from within the 200-mile economiczone; sharks have traditionally been fished off Socotra.

2.06 f9grthern Yemen. Fishing in the north is largely done throughlocally constructed traditional wooden vessels; it is estimated that 350sambuka and 1,200 houris operate in north Yemeni waters. The limited datathat are available indicate local catches of some 22,000 mt annually, orabout 20 percent of the total country's catch (Annex 1, Table 2). Themain species caught include mackerel, king fish, grouper, snappers andbream. In addition, a small trawl fishery activity for catching shrimp iscarried out near Hodeidah by converted traditional uambuks; this activityproduces some 500 mt of shrimp annually. There is no industrial fisheryoff the Red Sea coast, although following unification some vessels fromthe south have explored fishing grounds in the north.

Fishling Operations in South Yemen

2.07 In contrast to the north, public involvement in fish productionand marketing in the south has been very substantial, with only a group ofsmall-scale fishermen operating in a truly private fashion. Small-scalefishing in the south takes place from about 50 villages along the southerncoast by about 6,400 fishermen. Fishery activities are organized through13 cooperatives, which till recently owned the boats and some of the gearof their 3,500 members (Annex 1, Tables 3 and 4). Prior to unification,the cooperative fishermen delivered their entire catch to thecooperatives; the remaining non-member private fishermen owned their ownboats, and marketed some fish through the cooperatives (see paras. 2.32-2.36). The coastal fleet comprises some 2,000 craft. Almost 900 glass-reinforced plastic (GRP) boats have been constructed since 1982, when CFC

- 5 -

boat building operations started. The rest consists of old woodenvessels, many of them constructed prior to 1970, which need to be replacedwithin the next ten years. Most ',.oats, from the wooden 12-15 m nambk tothe wooden and GRP 5-7 m boUti and 6-9 m Iabadifa, are well adapted tolocal conditions and are efficient and cost-effective. Virtually allboats, except some small fortSi, are currently mechanized with outboardengines. All fishing geai outboard engines and raw materials for GRPboat construction are imported.

2.08 The locally ownei YFC industrial fleet consists of second-handfreezer trawlers of between 200 and 1,500 gross registered tons. Theoperation of the fleet has become increasingly inefficient due to weakmanagement, inappropriate vessel types and the very old age of thevessels, resulting in major and time consuming repairs. The local fleethas generally concentrated catching efforts on high value cuttlefish anddeep-sea lobster resources for export; when these resources contract, dueto natural phenomena or excess fishing pressure, the fleet switches tocatching less profitable food fish for the local market. The formerlicensed foreign fleet, YSJO vessels, and the recently established YSJVfleet all engage in high volume fisheries for small pelagic and demersalspecies. In addition, CFC recently acquired four small, modern GRPfishing vessels, of an intermediate design, which are operated on a pilotbasis to catch large pelagic fish.

2.09 Virtually the entire industrial fleet and a substantial portionof the traditional wooden vessels are at the end of their economicallyuseful life; the early models of GRP vessels are also close toreplacement. Almost all construction of new vessels in ROY is being doneat the CFC boat yard in Aden, which produces GRP boats for small-scalefishery. Construction of new wooden vessels has virtually ceased sincethe 1970s because of the lack of foreign exchange for importing of logs.No industrial vessels are being constructed in ROY, though the country hasfloating repair docks to service the industrial fleet.

Fish Marketing

2.10 With the exception of rock lobster, the entire catch of thetraditional fleet is consumed locally. Most of the fish for local humanconsumption are marketed in fresh or frozen form, while some tuna andindustrially caught mackerel are being canned for the local market.Sharks are usually dried for consumption in Hadramawt, while virtually allsardines are dried and used for animal feed and fertilizer.

2.11 Until two years ago, all fish sold locally for humanconsumption, except fish produced by private fishermen, was marketed onlyby cooperatives and by the National Corporation for Fish Marketing (NCFM).Since 1987, however, NCFM's role in retailing has declined rapidly,particularly since NCFM started to dispose of its retail operations. NCFMhad always been the only wholesale agent, selling directly to individualretailers and traders. Cooperatives marketed most of their fish close tothe place of landing, with any quantities remaining sold to NCFM or(increasingly) to private traders.

2.12 Since early 1990, and particularly since unification,significant changes have taken place in fish marketing. Private fishtraders have virtually taken over all trading, transporting and marketingof fish landed by traditional fishermen, resulting in a major reduction inNCFM's role in domestic fish marketing. Nearly all of the fish from Zhetraditional sector is now sold by auction, organized either by thecooperatives themselves or through auctioneers, and is done after thelanded catch is sorted and graded by quality/species. NCRM participatesin the auctions as one of the buyers, though in the face of rapidlyincreasing prices, the quantity of fish it buys at cooperatives has beendeclining.

2.13 Fish consumption per capita is relatively high in coastalcommunities, decreasing gradually in the hinterland, except in Hadramawt,where dried fish products, notably sharks, have traditionally beenconsumed; the consumption of fresh fish is growing fast in this area. Inthe southwestern part of the country, fish is usually consumed close towhere it is landed, or is distributed directly to nearby markets. Becausemarkets are limited east of Mukalla, relatively large quantities of fishare now being marketed to Mukalla, Hadramawt and Aden by private tradersfrom the eastern coast. In comparison to the south, per capita fishconsumption in the north is substantially lower; fish marketing in thenorth is largely limited to the coastal zone and large cities. Withunification, however, traders are increasingly buying fish in the southfor transportation to the north.

2.14 Until early 1989, producer and consumer prices of fish for humanconsumption in pre-unification south Yemen were rigidly fixed by theGovernment. Fish were classified into five groups; each group hadprescribed prices and marketing margins, regardless of quality, amount ofprocessing, actual marketing and transport costs, or demand or supply.This rigid pricing system has now been abandoned for fish produced by thetraditional sector, and marketed by private traders.

2.15 Fish produced by CFC, YFC or YSJV continues to be marketedthrough NCFM, or transshipped at sea by YSJV, without entering thecountry. Fish produced by CFC or YFC are marketed locally with NCFMperforming the role of wholesaler (food fish from YFC or YSJV), orexported (lobsters from CFC and YFC, cuttle fish from YFC and YSJV) byNCFM to Europe (mostly lobsters) and Japan (mostly cuttlefish). Smallamounts of low quality food fish have recently been exported for the firsttime by NCFM to Egypt and Saudi Arabia. Fish caught by the licensedvessels has been shipped to Egypt and the East European countries.

B. Role in the Economy and Sectoral Performance

2.16 Few data are available to accurately determine the role, growthand importance of the fisheries sector in the economy. Nevertheless, thefollowing broad patterns appear valid:

(i) Yemeni industrial and traditional fleets, and relatedprocessing and marketing operations, have demonstrated only amodest growth over the past eight years;

(ii) the role of the local industrial fleet is graduallydiminishing in value terms as a resul1t of inappropriateequipment, the wrong price incentives, weak management,increasing maintenance problems and the slow recovery ofstocks of cuttlefish, which were over-fished during the early1980s;

(iii) the share of catch by foreign licensed vessels and vessels ofthe Yemeni Soviet Joint Operation (YSJO) declined from a peakof over 50 percent in 1986, to about 38 percent in 1989(Annex 1, Table 1) and is likely to decline even further; and

(iv) the value added of industrial operations, except for highvalue species, is modest, while all inputs, except fuel andlabor, are imported; traditional fisheries create more valueadded, but also require imported inputs.

C. Past Government Policy and Strateav

2.17 In the first decade (1969-79) following independence, thestrategy of the Government of ex-PDRY for the fisheries sector was todevelop foreign and locally based industrial ventures. A large publicindustrial subsector was established in a short period of time, comprisinga fleet of deep sea fishing vessels, cold stores and fish processingplants. In addition, a substantial foreign industrial fleet was licensedto operate in PDRY waters. This process of rapid industrializationoutstripped the sector's technical and managerial manpower resources,causing the under-utilization of both the fleet and processing facilities.In addition, industrial fishing, with relatively old-fashioned technology,provided an increasingly inefficient way to capture some of PDRY's fishresources. The country's traditional fisheries subsector, which accountedfor about half of the country's fish landings and operated much moreefficiently, received only marginal support.

Role of the Government

2.18 The role of the Government in the fisheries sector of ex-PDRYprior to unification had been highly dominant; it is only during the pasttwo years and more so after political unification that the private sectorhas started to play a more important role. Until recently, theGovernment's policies focussed on maintaining the industrial fisheries forexport, while small-scale fisheries were to supply the local market only.This development strategy resulted in massive investments in ports andmarketing infrastructure (an estimated US$145 raillion over the past 10years). The strategy achieved less than it set out to do because: (i) theGovernment underestimated the essential role of the market mechanism infisheries related activities, notably in catching and marketing fish;(ii) the Government underutilized the production potential and efficiencyof small-scale and intermediate technology fishing; (iii) the existingindustrial fleet became increasingly inefficient to operate and exportedsubstantial volumes of low quality, low-priced fish to the Soviet Union;and (iv) several infrastructure investments (including cold storage

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facilities and fishing ports) had a limited impact on fish production. Inaddition, the Government pursued economically inefficient institutionalarrangements and policies. Of the latter, the most important wereconflicting policy objectives, insufficient attention to the economicimpact of policies, lack of properly targeted economic incentives,excessive administrative controls over enterprises, and rigid pricing andmarketing policies. Finally, the implementation of the Government'sstrategy was constrained by the general lack of foreign exchange and theeffects of the 1986 civil disturbances in southern Yemen.

2.19 Sector Adjustment. Starting in 1986, but particularly after1987, the Government of PDRY recognized that the fishing sector wasperforming well below its potential and that better sectoral performancerequired policy adjustment, in combination with specific investment andoperational actions. Following the earlier example of the agriculturalsector, the Government decided to: (i) enhance the role of the market indirecting the production, marketing and pricing of fish, by reducing therole of NCFM and expanding the responsibilities of the cooperatives andthe private sector; (ii) focus major sectoral efforts on increasing fishproduction, particularly by the traditional sector, while developingarrangements to export more fish species for which good export marketsexist; (iii) give more managerial freedom to state-owned institutions andprovide them with clear and stronger incentives to operate in afinancially prudent manner; and (iv) reorganize and streamline theoperations of the industrial fleets and develop a strategy for theirreplacement.

2.20 The Government also decided to minimize the possible initialnegative social effects of its policy adjustment (i.e., possible increasesin consumer fish prices in Aden), and to make the adjustment processgradual. Hence, its strategy was to: (i) strengthen the economic base ofthe sector, by encouraging additional fish production, allowing theprivate sector and the cooperatives to play a more forceful role in localmarketing; (ii) revoke price guidelines for both cooperatively andprivately produced fish; and (iii) promote the rapid expansion of fishexports. At the same time, the Government's presence in fish wholesalingand exporting was to be initially maintained, because the private sectorwas not expected to immediately take over these activities. It alsowanted to maintain price directives for fish handled by NCFN in order toguarantee access to modestly priced fish to poor consumers in Aden. TheGovernment's emphasis on strengthening the performance of cooperativesreflected a strongly felt need to maintain and expand economic and socialservices in fishing villages. Finally, as a first step in reorganizingits industrial fishery, the Government decided to enhance PDRY's benefitsderived from foreign fleet operations, and entered into negotiations withthe foreign partner; this resulted in the establishment of a moreequitable joint venture arrangement, which will expire at the end of 1991.The impact of unification is detailed in Section E of this chapter.

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D. Sectgral Institutions

Ministrv of Fisheries (MF)

2.21 The Ministry of Fisheries (MF) is the principal agencyresponsible for planning and implementing national fishing policies andprojects, and for supervising the fisheries cooperatives. In addition, MFhas four corporations directly under its jurisdiction, of which three arein the south: the Yemen Fisheries Corporation (YPC), which owns andoperates the industrial fleet; the Coastal Fisheries Corporation (CFC),which is in charge of rock lobster collection and the construction ofglass reinforced plastic (GRP) boats; and NCFM, which is responsible forlocal and export marketing of fish. In addition, the General Corporationfor the Development of Fish Resources (GCDFR) is responsible for fisherydevelopment and for promoting fish marketing in northern Yemen. MF is thenational partner in both the Yemeni-Soviet Joint Operation (YSJO) and theYemeni Soviet Joint Venture (YSJV). The total number of employees at MF,including the corporations, is about 4,000, of which some 1,000 areemployed in NCFM facilities throughout the country. Fisheries researchand resource assessments are the responsibility of the Marine Science andResources Research Institute (MSRRI), while fisheries training andextension is carried out by the Fisheries Manpower Development Center(FMDC); both 6rganizations report to MF.

2.22 MF is structured along functional lines, and is relatively wellendowed with skilled high-level staff, who have been effective ininitiating and administering recent sector adjustments. MF has received,over the past three years, substantial bilateral assistance to improve itsinstitutional performance. Most of its functions rightly belong in theMinistry, with one exception: the search for new fish export markets anddecisions concerning all fish exports are currently the responsibility ofa committee in the Ministry. NCFM is officially in charge of all fishexports, including those of CFC and YFC, but the Ministry committee playsa key role at present. This arrangement was set up to maintain theresponsibility for decisions concerning export prices and other exportarrangements within the Ministry. The committee, chaired by the Minister,includes the three chairmen of the fisheries corporations in the south,high-level ministry staff and various other official members. Althoughthe arrangement has worked satisfactorily in the past, when only twocommodities were being exported, it will become increasingly cumbersomeonce exports expand and quick decisions are needed. Within the context ofthe significant changes taking place in the sector, there is a need toreview the efficacy of mech:.nisms that are presently in place, as well asto better define the manner in which MF can carry out its role andfunctions in the future.

National Corporation for Fish Marketing (NFCM)

2.23 NCFM was traditionally responsible for all marketing relatedinfrastructure in southern Yemen and handled all movement and storage offish; in addition, it is responsible for fish exports. It implemented afixed pricing system and maintained buffer stocks of frozen fish to honorthe Government's commitment to make fish readily available at affordableprices. Over the years, the role of NCFM has changed; it now wholesales

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only fish that the joint ventures, cooperatives, private sector and CFCare unwilling or unable to market. Its function of administering fixedfish prices is also weakening; since 1989, and more so after unification,the prices of privately marketed fish are being determined by the market.A more liberal policy for NCFM producer prices has recently been announcedby Presidential decree. This allows NCFM to adjust prices according tomarket conditions, species abundance and season. However, pricingdecisions still need to be cleared by MF.

2.24 Prior to 1987, NCFM ha,% a history of inefficient operations andsubstantial financial 'osses. NCFf management was weak, bureaucratic andinflexible; it had also invested in excessive, and sometimes ill-conceived, infrastructure. Furthermore, it was forced to accept fish fromindustrial producers, indifferently presented and often comprising speciesfor which no profitable market existed, at artificially high prices tocompensate for the inefficiency of the industrial fleet. Overall, NCFMhad several objectives, which could not be reconciled with cost effectiveoperations without selecting priorities. As detailed in Annex 2,Tables 1-2, NCFM experienced a deteriorating operating margin, lossesthroughout the 1980s, and a negative cash flow during most of those years.

2.25 Recognizing the problem, various actions were taken by theGovernment to improve the efficiency and institutional performance ofNCFN; a draft business plan aimed at strengthening and modifying NCFM'soperations was submitted to IDA. However, with unification and thesubsequent liberalization in fish marketing, the role of NCFM is changingmarkedly; its share in marketing the traditional sector's catch is alsorapidly declining. The present levels of its fixed asset utilization areextremely low. In the context of this changing environment, a clearstrategy for the future of NCFN has yet to be outlined; broadly, theGovernment views NCFMWs future role principally in terms of developingexport markets and exporting fish, executing wholesale functions to theextent that they cannot be handled by the private sector, and ofmaintaining limited food security. In the immediate future, the financialviability of NCFM remains a matter of considerable concern. Many of theassumptions underlying the business plan are no longer valid. MF ispresently reviewing a joint-venture proposal put forward by a Danishcompany; discussions are also being held with Yemeni investors toparticipate in the proposed joint venture operation that would essentiallyconcentrate on exports. However, given its limited experience with jointventures, and its uncertain financial situation, NCFM is in need oftechnical assistance to define its future role and to advise on the joint-venture negotiations.

Coastal Fisheries Corgoration (CFC)

2.26 CFC has traditionally concentrated on the collecting andexporting rock-lobster and, since 1982, on producing GRP vessels forsmall-scale fisheries. It is well managed, has been profitable since1986, and has become highly efficient in its operations. CFC has beenable to avoid many of the problems affecting NCFM; it has a strong,relatively independent management, and has been allowed to operate inprofitable 'niches' of the sector--lobster exports and boat building. Itsfinancial performance has been good. The core activity of CFC is

11 -

collecting rock lobster from small-scale fishermen, using annual contractswhich include sizeable incentive payments, with individual fishermen andcooperatives for delivery of raw material. The boat buildlng actlvitiesof CFC started in 1982. Designs are simple but effective; however, theoutput of the boat yard has been constrained by the limited access to rawmaterial, and demand has consistently exceeded output. CFC sells boats tocooperative fishermen for cash or with credit supplied by the World FoodProgram, administered by MP. Because credit funds wsre limited, CFC atone time sold boats to private individuals on credlt. Not well equippedto handle such a credit program, it recently discontinued the practice.

2.27 CFC's test-fishing operations of intermediate-technologyvessels, with four small imported purse seiners which require shoresupport services from NCFP, have been less successful so far. Althoughthe vessels have demonstrated that they are able to catch very substantLalquantities of fish in a relatively short period, vessel operations havefrequently been hampered by inefficient NCFM shore services (lack oftimely supplies of ice, restrictions on landing times, and landingcapacity limitations), causing extensive periods of vessel inactivity.Hence, tests should continue with the existing vessels, focussing on moreefficient shore services and financial performance in the rapidly changingprice environment prevailing at present. If the results proveunconvincing,-alternative vessels and technologies should be tested beforelarge-scale investments in these types of vessels are contemplated.Procurement of an additional four vessels under the proposed project wouldbe subject to joint IDA/EEC review during implementation, based on theperformance of the existing vessels.

Cooterative and AXriculture Credit Bank (CACB)

2.28 Prior to unification, the National Bank of Yemen was the onlybanking institution in southern Yemen authorized to undertake lending fordevelopment purposes. It, nevertheless, played a very limited role in thefisheries sector. Since unification, the Government has decided thatcredit for the agriculture and fisheries sectors of the country is to behandled by CACB, which was established in 1982 and has been the principalsource of institutional credit for the agriculture and fisheries sectorsin the north. In addition, CACB is involved in significant tradingoperations (the procurement and sale of farm machinery, irrigationequipment, marine engines, fertilizers, etc.). It presently operates outof 16 branches and 5 sub-branches in the north, and out of 3 branches thathave recently been established in the south (Aden, Abyan and Mukalla); inaddition, another branch is proposed for the Al Mahrah Governorate in thesouth.

2.29 The main financial resources of CACB are made up of paid-upcapital (YRls 224.9 million), loans from the Government (some of which areexternally financed), and noninterest bearing deposits from cooperativesin the north (YRls 60.7 million as of December 31, 1989). Short-termlendlng, mainly for fertilizer, constitutes about a quarter of CACB'slending operations; the remainder is for term loans, mainly foragricultural machinery, irrigation equipment, poultry and fisheries.interest rates on loans vary between 7-10 percent per annum, which arepresently negative in real terms. CACB financial statements (Annex 3,

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Tables 1 and 2) show that, despite relatively high trading profits and theavailability of interest-free deposits, the bank has suffered largelosses, for both 1988 and 1989, reflecting poor institutional performance.Loan recovery rates have declined dramatically from about 70 percent in1984 to below 40 percent in 1989, while loan administration costs arehigh, presently estimated at 15 percent of outstanding loans. To a largeextent, the low loan recovery rates reflect CACB's poor experience inagricultural lending in the Eastern Region, where the recovery of pastloans has been insignificant. This in turn has highlighted thedifficulties of initiating loan operations in tribal areas whereagricultural lending is not customary.

2.30 While CACB's overall loan recovery rates continue todeteriorate, available data indicate relatively better performance onloans made in the fisheries sector. Recovery rates on fisheries loansmade between 1985-90 (totalling YRls 18.3 million) were estimated ataround 65 percent as of the end of 1990. The relatively better recoveryperformance is the result of various factors including: provision of loansto fishermen based on identified needs rather than pre-determined loanpackages; use of the group guarantee system to encourage jointresponsibility; the use of credit camps for loan appraisal andsupervision, thereby also reducing transaction costs for the borrower aswell as loan-administration costs; and timely supply of equipment andmaterials financed through credit.

2.31 IDA assisted CACB in defining a strategy to improve itsperformance, as part of the recently closed Agricultural Credit Project(Cr.1308-YAR). However, as noted in the Project Completion Report (PCR),steps to strengthen the financial and operational performance of the bankwere generally not successful. The PCR notes that CACB suffered from aninadequate spread on loans, and has been unable to substantially increaseits deposit base. Recently, IFAD appraised an Agricultural CreditProject, co-financed with the Arab Fund for Economic and SocialDevelopment (AFESD), which is aimed at increasing the lending capacity ofCACB, and at improving its overall institutional capability. TheGovernment expects the project to become effective shortly.

Coogeratives

2.32 There are presently 13 cooperatives in the south. Prior tounification, full membership was available only to those fishermenoperating vessels owned by the cooperatives. In addition, there wereassociate members who sold part of their catch to the cooperatives, incontrast to truly private fishermen, who sold directly to the public.Cooperative membership had been attractive to many fishermen: it provideda guaranteed outlet for fish, since few private fish traders were activeoutside Aden and Mukalla until recently. In addition, prior to 1988,fishermen could obtain boats, gear and engines only through cooperatives.Finally, cooperatives became desirable for their extensive welfarebenefits, which include pensions, insurance for medical emergenciesabroad, credit for social purposes, health, education and other freeservices.

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2.33 The financial position of the 13 cooperatives varies (see Annex4 for a summary of performance). Only two have shown consistent profits;three have been consistent losers. In the past, the main sources of theirincome were various percentage charges on the catch sold to NCFM and amargin on fish marketed directly. All the cooperatives have receivedgrants and loans from MF. The arrears on repayments of most loans aresubstantial and not only reflect poor management, but also the perceptionthat government credit need not be repaid.

2.34 The financial problems of the cooperatives can be attributed tomany factors, some of which were outside their control: (i) inappropriatepolicies concerning fish marketing and financial arrangements for vesselmaintenance, as detailed below, have consiste3,dly given inappropriateincentives to fishermen and created a financial burden for cooperatives;(ii) the neglect of cooperative education and training, both of membershipand of management; (iii) direct control by MF, and appointment of weakdirectors and staff; (iv) overstaffing, particularly of administrativepersonnel; (v) lack of vehicles and of facilities for the temporarystorage of fish; and (vi) lack of access to credit for expandingcooperative operations. The collection of fish by NCFM at fixed pricesalso created problems. NCFM services proved unreliable, particularly inremote areas, and cooperatives often reverted to the production oftraditional products, like dried sardines and shark. Cooperativeeffectiveness was indirectly affected by lack of foreign exchange, whichhas constrained imports of boat building material, engines, gear andtrucks. But the relatively weak financial performance of the cooperativeswas mostly affected by inappropriate arrangements for maintenance andrepair of boats, and for repayment of loans for boats and gear.Cooperatives charged 20 percent of the value of the catch of cooperativevessels, regardless of the size of the catch, to cover the actual costs ofloan repayments, cooperatively performed maintenance and repair, andpossible replacement of the vessel, engine and gear. This arrangement didnot provide any incentives to cooperative fishermen to maintain theirequipment well, while it penalized good performers, who paid more andreceived less for their efforts.

2.35 The changes that have taken place recently have significantlyaltered the role of the cooperatives. The more important among theseinclude the following:

(i) ownership titles of all boats and gear, along with theobligation to maintain them, are in the process of beingtransferred to the fishermen;

(ii) cooperatives are no longer involved in tha purchase and saleof fish; instead, fish is sold by fishermen directly totraders (or to NCFM if it wishes to purchase fish), based onauctions that are organized either through auctioneers or bythe cooperatives themselves;

(ifi) direct cooperative functions are now principally of a servicenature - selling ice, providing chill stores, operatingworkshop facilities, arranging fish auctions, as well associal security and social services; and

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(iv) Governuent has initiated financial arrangements to put eachcooperative on a healthy financial footing, includingrescheduling loan repayments, writing off old debt andconverting debt into equity.

Details of measurer to be taken under (i) and (iv) were submitted to IDAduring negotiations, where agreement was reached that the Government wouldtake the necessary steps to complete the implementation of these measures.(para. 8.01(i)]. It was confirmed that ownership titles of boats arepresently in the process of being transferred. Furthermore, cooperativesare already charging a price for the services offered; in addition,fishermen now pay only 8 percent of catch value, of which 3 percent goestowards social security and 5 percent towards the cooperative servicecharge.

2.36 Despite their past financial and operational performanceproblems, some of which were caused by factors beyond their control,cooperatives clearly have an undeniably important social and economic rolein the fishing villages, and they are the only vehicle at present toprovide social support. Hence, future private sector development shouldbe pursued with commensurate parallel attention to cooperativedevelopment, in order not to jeopardize the only social 'safety net'available to fishermen and their families. Future development should,therefore, explicitly aim at strengthening the organizationaleffectiveness of cooperatives and at securing the viability of theirsocial and economic functions. Additional steps needed to further improvethe performance of the cooperatives, and for which the project wouldprovide support, include: (i) the creation of a nationwide trainingprogram for cooperative staff; (ii) improved financial management,including the separation of cooperative funds used for social purposes(health, pensions, etc.) from operational funds; and (iii) governmentencouragement for a stronger role for cooperative members in thedetermination of the operations and objectives of the cooperatives,including greater freedom of cooperative management.

The Marine Science and Rssources Research Institute (ASRMI)

2.37 Observed catch levels indicate that the expansion of mostfisheries in ROY is feasible and could be sustained by presently availableresources. However, the rational use and protection of these resourcesrepresents an important task. The tropical marine ecosystem, though richand capable of fast renewal, is delicate and can be quickly destroyed byoverfishing or pollution.

2.38 MSRRI is part of MF. It has a well-trained staff and hasbenefitted substantially from several technical assistance projects overthe past ten years. Because most assistance has ben related tooceanographic work, MSRRI has relatively limited experience with fishstock assessment and management and environmental research. It iscurrently receiving technical assistance from PAO/UNESCO for stockassessment, which is scheduled to be completed by 1992. MSRRI's mainactivities center around oceanographic research and stock assessment ofthe most valuable fish stocks, cuttle fish, lobster and some other fish.

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Cuttle fish resources are actively managed following severe over-fishingin the early 1980s. With increasing fishing efforts for rock lobster,MSRRI has created size regulations and a ban on catches of females witheggs. It is now proposing to further reduce the accidental death of suchfemales, and to increase the value of lobsters by catching them alive,through the use of traps instead of the traditional gill nets. MSRRI hasalways had major problems assessing the size of demersal stocks because noadequate records are being kept of catches by private fishermen. Itintends to develop a statistical system to provide basic catch data ofindividual species to strengthen the quality of its stock assessments. Inview of the current oil exploration in the country, and the substantialmovement of cargo vessels in the Gulf of Aden, MSRRI has initiated stepsto develop a capability in environmental research, notably in marineenvironmental protection, study of coastal habitats, and conservation ofmarine and coastal resources (of which fish is the most important). Itwill, however, need technical assistance and equipment to develop thesecapabilities.

The Role of Women

2.39 The economic and social status of rural women in ROY is governedby deep rooted attitudes, customs and traditions, which still govern rurallife. Compared to agriculture, the role of women in the fisheries sectoris rather limited. Virtually no women are involved in fishing, while onlya few are engaged in fish processing, sardine drying or tuni canning. Fewwomen are involved in fish marketing, and then only in petty trade.Because there are many migrating fishermen, women tend to remain at hometending family land holdings and livestock and carrying out householdduties. Consequently, the role of women in the family is very important,and assisting women in becoming more effective in their tasks directlyimproves the well being of their families. However, as outside employmentis considered to be a violation of prevailing customs, women are rarelyallowed to market the products they produce themselves, which explains theprevailing barter trade among women in remote villages. Programs toassist women should, therefore, focus on creating a better awareness andopenness towards the participation of women in various activities, andshould aim at gaining support from the community for such programs. Loweducational standards, a lack of basic resources, socio-culturalconstraints and numerous repetitive tasks (supplying of water, collectionof fuel wood, etc.) keep women from increasing their productiveefficiency. Women in the fishing communities generally do not perceivebasic education (literacy/numeracy) as a need. Labor saving devices andpractical vocational training are considered more desirable by women,since they render immediate results. It is, therefore, imperative totailor adult education programs to the immediate needs of women. Theseprograms should focus on vocational training (i.e., animal husbandry,small scale farming) and the creation of employment opportunities (i.e.,fish processing and marketing, sewing clothes).

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E. Impact of UnLfication

2.40 The unification of PDRY and the Yemen Arab Republic (YAR) hasalready had a significant impact on the fisheries sector in the south,particularly in terms of the liberalization of fish marketing, a reducedrole of NCFf in domestic marketing, and in the activities of cooperatives.Fish prices received by the traditional fishermen, which have been totallyliberalized, have shown a significant increase from the earlior controlledprice levels, particularly for the high value species. In addition, itappears that the former private PDRY fish merchants, who have long settledin the former YAR, are returning and redeveloping their former privatefish distribution and export operations. A further expansion of theirrole may be contingent upon the Government allowing private sectorinvestment in industrial fishing operations, which would facilitatevertically integrated industrial export operations. The Government iscurrently reviewing its policies with respect to private investments inindustrial fisheries. At the same time, the future role of NCFM alsoneeds to be reviewed. Nevertheless, as fish production along the coast ofthe former YAR of about 22,000 mt in 1988 (Annex 1, Table 2) has beenrelatively modest compared to production in PDRY, there is growingevidence that increasing quantities of fish from the south are beingmarketed in the north. In the past, fish was mainly consumed in thecoastal lowland zone, while consumption has only become important in thelarger cities in the mountains during the past ten years. The rapidexpansion of private fish trade from the south has caused producer andconsumer prices all over Yemen to increase rapidly, particularly for theprime species.

2.41 The unification has also caused private truck owners from theformer YAR to operate more extensively across the old border, therebyeasing current shortages, and creating opportunities for the privatesector to establish maintenance facilities.

2.42 Unification will likely affect CFC in two ways. It will furtherincrease demand for GRP vessels from the CFC boatyard, as fishermen fromthe former YAR (which does not yet have a GRP boatyard) will look for GRPboats to replace their wooden vessels. However, CFC may also experiencecompetition from the private sector in its highly profitable lobsterexport operations, if the Government decides to adjust the current CFCmonopoly on lobster exports. Unification has also created opportunitiesfor CFC semi-industrial vessels to expand production for species withexport or local potential.

F. IDA andOther Donor XInvolvement in the Sector

2.43 IDA has financed three fisheries projects in southern Yemen. Inaddition, IDA has financed one fisheries project in northern Yemen(Fisheries I Project, Cr. 1025-YAR), which was recently completed. Eachof the t5ree projects in southern Yemen has focussed on separate parts ofthe sector.

2.44 The First Fisheries PrgJact (Cr. 370-YDR. USS 3.5 million),which became effective in 1974, supported the construction of 100 new

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traditional boats (sambuka) and cold store facilities at Mukalla. Thecivil works component of this project was delayed and incurred substantialcost overruns, necessitating a supplementary IDA credit of US$1.6 million,which was approved in 1975. According to the Project Performance AuditReport (PPAR), the boat building component was implemented efficiently,but credit arrangements (through MF) proved inappropriate, resulting inweak repayment. The cold store initially operated at low capacity, butwith the construction of the new Mukalla port it is being fully utilized.

2.45 The Second Fisheries Prqlect (Cr 932-mi. USS 10.0 million),which became effective in 1981, financed the construction of afishery/general purpose harbor in Nisbtun, including a fish processing andstorage complex and some village facilities. The project was constructedwithin the planned implementation period, but at substantially highercosts, that were financed by the Government and two co-financiers. Theproject succeeded in creating a general purpose harbor, but the fisherycomplex remains severely underutilized. The PPAR for the project notedthat: (i) the project displayed evidence of premature lending, as nodetailed designs for the civil works were available during its earlystages; (ii) the technical design could have been improved, notably of theport and the water supply system; and (iii) because the Governmentinsisted that the complex be managed by NCFJM without assistance of anexperienced foreign management team (despite a covenant in the legalagreement to this effect), operations of the fishery complex weresubstantially below appraisal estimates. MF has recently decided thatfish can be exported directly from Nishtun and Mukalla, which wasprohibited before, and is exploring the possibility of entering into ajoint venture between NCFM and a foreign partner. The technicalassistance under the proposed project would provide advice to NCFM onfuture management arrangements for the fisheries complex.

2.46 The Third Fisheries Development Project (CX. 1274-YDR. SDR 5.4million) became effective in 1983. Recognizing the future needs fortrained manpower in the fisheries sector arising from the build-up of theindustrial fleet in the late 1970s and from fish marketing activities, theproject aims at establishing a Fisheries Manpower Development Center toprovide: pre-service training in marine engineering, navigation and fishprocessing technology; management training for government fisheriespersonnel; and a focal point for a nationwide fisheries extension service.In addition, the project includes a village fisheries development program,which provides fish receiving, engine maintenance and net repairfacilities in five fishing communities. The initial start-up of theproject was substantially delayed, due to: (i) delays in preparingdetailed design and procurement; (ii) changes in the co-financing packageafter disagreement among co-financiers about procurement procedures; and(iii) civil disturbances in PDRY. The cost overruns, resulting from moreelaborate designs, were fiaanced by one of the co-financiers. However,since then implementation has been efficient, with construction havingbeen completed within the revised time schedule. Financial management ofthe village facilities has been an issue. The cooperatives were initiallyunable to repay the increased costs of the productive facilities inaccordance with the agreed cost recovery procedures and an extendedrepayment plan had to be agreed upon. The new arrangements for boatownership and anchoring of fish will further change the financial

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situation. The technical assistance under the proposed project will beused for undertaking a detailed review on all financial issues. Allproject created facilities are now in operation.

2.47 In northern Yemen, the Fisheries DevegoDment Proiec; (Cr. 1025-YAR USS17.0 million), became effective in 1981, and financed creditfacilities to artisanal fishermen for the purchase and improvement oftraditional fishing vessels, imports of marine engines and modern vessels,and the construction of an artisanal fishing port and related facilitiesin Hodeidah, some shrimp and fish processing facilities in Khawbah, andfish service centers, fish markets and a road link to facilitatemarketing. It took much longer than expected to appoint technical expertsand staff the project implementation unit in GCDFR, the agency principallyresponsible for project execution. Consequently, implementation wasdelayed, necessitating the extension of the credit by over four years.The project succeeded in substantially strengthening the capacity of thefishing fleet, largely due to the successful credit component, and inestablishing fairly satisfactory shore-based infrastructure. In Hodeidah,in particular, the harbour and other facilities have proved to be of greatbenefit to the fishermen. The facilities in Khawbah, however, faced someproblems, partly owing to the absence of the development of shrimpfisheries in the area. DANIDA, which had co-financed the project, went onto explore possible further assistance to address the problem ofsatisfactory maintenance of the facilities constructed under the project.

2.48 The main lessons to be derived from the implementation of theseprojects are the following: (i) a clear understanding and agreement shouldbe reached on implementation schedule for key activities, procurementplans and cost estimates prior to Board presentation in order to avoiddelays in implementation start-up; (ii) more attention should be given tothe actual requirements of the people for whom the facilities are intendedand to ensure that they fully comprehend and agree to the facilities to beprovided; (iii) clear agreement should be reached, prior toimplementation, between the Government, the beneficiaries and the lenderson policy issues, like cost recovery, management agreements, fish pricingpolicies, etc.; (iv) realistic projections of fish catches, speciescomposition, prices and markets should be used during appraisal, with acritical assessment of areas of unusual risk; and (v) technical assistanceis more effective when advisors are directly involved in assistingoperations. The above lessons have been applied in the design andprocessing of the proposed project.

2.49 The above projects have been co-financed by IFAD, the Arab Fundfor Economic and Social Development (APESD), the Abu Dhabi Fund and theCommission for European Jommtnities (EEC). In addition, the DanishInternational Development Agency (DANIDA) and the Soviet Union have madesubstantial investments in the sector. DANIDA has financed many of thecold stores along the southern coast and, lately, has successfullyinitiated a technical assistance program to improve maintenance andoperations of NCFM's facilities. The Soviet Union has financed the portand related fisheries facilities in Aden and provided extensive technicalassistance to MF. Other countries that have provided assistance to thesector are Japan, China, Kuwait and Cuba.

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G. future Government 011wcX and IDA Strategr

2.50 ROY has few alternatives for development; fisheries and mineraloil deposits are the only significant resources that offer substantialpotential. Yemeni waters are among the most productive fishing grounds;present catches of some 107,000 mt are only about 25 percent of theconservatively estimated annual sustainable yield. The efficientexploitation of this resource would not only substantially assistfishermen in increasing their incomes but would also produce sufficientfish to feed the local population; it would also rapidly increase foreignexchange earnings.

2.51 The traditional fishing fleet is aging, due to the limitedconstruction of boats. It is estimated that there is an immediaterequirement of 250-300 boats of various types, with a minimum of 60-70vessels annually, to replace old vessels. Increased fish production isalso still hampered by some inadequate policies and by limited facilitiesfor handling, collection and delivery of traditionally produced fish;constraints include lack of ice, vehicles and poor communications. Thesuccessful development of the sector would require, in addition toessential physical inputs, a close monitoring of the changes currentlyunfolding in the marketing environment and further adjustments ininstitutional policies. Improving the efficiency of the cooperatives,which will need to play an important role in providing services tofishermen communities, is also crucial.

2.52 Since the unification of the two Yemeni republics, severalpolicy adjustments have already taken place; this portends well for thefuture development of the sector. The sector adjustment process currentlybeing implemented by the Government aims at the transformation of acentrally planned, and largely state-controlled, sector. The reformedsector would effectively combine private, cooperative and some state-controlled activities under the umbrella of policies which let the marketpredominantly guide production, marketing and investment decisions.

2.53 While the Government has taken major steps to achieve a moreefficient sector, the policy framework, institutional arrangements andsupport for a "safety net" in fisheries require further adjustment. IDAconsiders the basic thrust of the proposed government strategy sound andsupports most actions taken and proposed so far, while stressing thatcertain support measures should be of a temporary nature. IDA strategy isto continue its involvement in the sector, to support investment as wellas the sector adjustment process itself. With major steps having beentaken to improve the efficiency of the sector, IDA's support should aim atimproving production and strengthening marketing and exports, notably ofthe private sector, while rationalizing the role of institutions involvedin the sector. The proposed project is a hybrid of investment innecessary infrastructure for the small-scale sector, a flexible componentto enhance fish production through import of equipment and boat buildingmaterials, which can be modified if the situation so requires, and a majorinstitution building component, focussing on MF, the cooperatives, women'sdevelopment, boat design and stock assessment. Project design is flexibleon purpose, to allow for adjustments as the sector develops. The proposed

* 20 -

project appears the most efficient vehicle to support the ongoingadjustment process in the sector.

III. THE PROJECT

A. Protject Concept and Qbiectives

Project Concept

3.01 Because previous fisheries sector policies did not achieve thedesired objectives, the Government started to adjust the sectoral policyframework in 1987, focussing increasingly on the development of non-industrial fisheries, which were more efticient in exploiting coastalresources, and on expanding Yemeni fish exports. The Government alsorequested further IDA assistance in support of the traditional fishingsubsector. In response to this request, IDA carried out a review of thePDRY fisheries sector, which led to discussions with the Government onsector development policies and issues. The proposed project wasidentified by a joint IDA-FAO/CP mission in November 1987 and prepared byFAO/CP, following a December 1988 mission. The project was appraised by ajoint IDA-IFAD mission in November 1989.

3.02 The aim of the project is to facilitate fishing operations thatvould: (i) assist the economic development of all fishermen, withparticular emphasis on those who have limited or no assets, or who areunemployed with no other source of income; (ii) strengthen the role ofcooperatives so that they effectively provide a range of physical servicesand social welfare benefits for all fishermen and their families; and(iii) provide the means for promoting women's development in the fisheriessector. The project would directly benefit around 3,500 artisanal fishingfamilies residing in the project area; of these, it in estimated thatabout a third would meet IFAD criteria and be eligible for IFAD loanproceeds.

Prolect Obiectives

3.03 The project's main objectives would be to:

(i) expand fish catches and improve processing, for both localconsumption and export;

(ii) improve the efficiency of domestic and export marketing offish, notably through investments, policy changes andadjustments in the institutional performance of cooperatives;

(iii) improve the assessment and management of the fish resourcesin ROY waters; and

(iv) help improve the position of women in fishing communities.

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B. PSojegt Axei

3.04 The project area in which specific infrastructure would beconstructed (Map, IBRD 22548) lies to the east of Mukalla, along the Gulfof Aden, up to Sayhut. The area is poor in natural resources, other thanfish, and fishing is the main livelihood of the population: fish catch inthis area is also the most abundant in the country. The fishingcommunities comprise about 3,500 fishermen operating approximately 1,200crafts, 75 percent of which are of traditional wooden construction. Theselected villages are representative of the south's traditional fishingcommunities. The criteria for their selection included: the presence ofrich coastal fishing grounds; the potential to eliminate bottlenecks thatconstrain fishing operations; the progressive attitude of the fishermen;and good access to Mukalla, the main base for operations. The coastlineat all locations is predominantly sandy, with some areas interrupted byledges of exposed rock. A distinctive feature of the coast is theexistence of an isolated shelf, about nine nautical miles off shore, inthe region of Musainah; this shelf has exceptionally rich demersal andpelagic stocks.

3.05 The project would essentially be a follow-up to the prior IDA-financed projects, to complete the earlier phases of infrastructure andinstitutional'development in the artisanal sector in the south. There areabout 50 fishing villages on the southern coast. The earlier IDA-financed projects focussed on the development of villages on the westernpart of this coast; the proposed project would finance village facilitiesin the eastern part. The project would focus on providing assistance tothe poorer sections of the fishing community, with special emphasis onimproving of the lot of women. Based on the limited informationavailable, it is clear that the average income of fishermen in the projectarea declines the farther east they are situated from Mukalla and itsurban and hinterland market opportunities.

C. Prolect ResgriRtion

3.06 The project would provide the following:

(i) the construction, furnishing and equipping of primaryfacilities for handling, preserving and distribution of fishin seven villages; and the construction of an asphalt roadbetween Fokum and Ras Imran;

(ii) the import of: intermediate technology vessels; constructionmaterials for fishing boats; outboard engines, spare partsand fishing gear; a fleet of insulated and refrigeratedtrucks; and plastic boxes;

(iii) technical assistance for CFC, NCFM, MSRRI, cooperatives, andMF;

(iv) the strengthening the MSRRI's fish stock assessment andresource management program and environmental research

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capability; and the import of materials to construct lobstertraps to reduce the depletion of this resource; and

(v) services to women in the fishing c-mmunities, including: therehabilitation of community development centers, theimplementation of adult education and vocational trainingprograms, and the creation of income earning opportunitiesfor women.

D. DetAiled Features

Village and Fisbh tocessing Facilities

3.07 Specific village facilities would be provided at sevenlocations: Mukalla, Shihr, Diss/Al Hami, Al Qarn, Quaseyr, Husainah, andSayhut. All facilities would be operated by the local cooperatives. Theproposed facilities, listed in Annex 5, would be, to a large extentstandardized, with modifications in size to suit individual locations.While the types of facilities would be similar to those included in theThird Fisheries Development Project (Cr. 1274-YDR), their specificationswould ensure that they would not be over designed, to avoid the costrecovery difficulties experienced by the cooperatives under that project.They would include: five fish receiving sheds; one ice plant and four icestores; five chilled stores; four generator houses and generators; fiveworkshops; one vehicle port; five boat repair areas; two cooperativeoffices; fresh and sea/brackish water supply; two access roads and roadsurfacing. A 15 km asphalt road between the facilities of Fokum and RasImran (built under Cr. 1274-YDR) would be constructed to facilitatetransport of fish to Aden. The village facilities are described ingreater detail below.

3.08 Fish Receiving Sheds, ranging in size between 114 r? in Diss/AlHami to 382 m2 in Musainah, would be of simple structures, consisting ofconcrete floors and foundations with light mesh reinforcement, concretecolumns with roofing of asbestos cement on steel or timber purlins andgirders. The sheds would provide accommodation for: office and toiletfacilities; and fish receiving, sorting, cleaning, gutting and icingoperations. Floors would be sloped to drainage channels.

3.09 Ice Plant and Ice Stores would be of containerized type andwould be delivered to site while only requiring connection to power andwater supply. The ice making plant (15 ton capacity) would be suitablefor continuous manufacture of dry, sub-cooled flake ice produced fromfresh water or sea water. Ice store temperature would be maintained at -5e C. The project would provide multiple independent units to produceice; consequently, the ice plant could be operated at half capacity duringperiods of low demand and would not have to be shut down completely duringmachine maintenance service.

3.10 Chilled Stores, with capacities between 5 and 20 ton each, wouldhave a design storage temperature of 0 to +2'C, at a relative humidity of95-100%, and would be able to store fish on ice.

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3.11 Generator Houses and Generators. Generator buildings, each witha floor area of approximately 60 in, would include generator rooms, fuelstores and switching panels. Generators (50 KVA and 90 KVA) would meetthe requirements of the village fisheries facilities, with some allowancefor supply to the adjoining residential coumawity.

3.12 WorkshoRs. The buildings in Al Qarn and Musainah would includea working area, an office (12 in), a resin and timber store (11 ip), awoodworking room (12 in), a parts store (16 en), a toilet (11 nY), and ageneral workshop working area. Smaller workshops would be provided inthree other villages (Mukalla, Shihr and Sayhut).

3.13 Boat Repair Areas would service the existing fleet of woodensambkas. Present arrangements for the maintenance of these vessels areprimitive, and the lack of a hard area makes hauling of the vesselsdifficult and sometimes dangerous. The repair areas would consist of hardstand areas (160 ml) of concrete, on compacted fill, located adjacent tothe workshops.

3.14 CooDerative Offices would be provided at Al Qarn and atMusainah. They would have three office rooms, a store and a toilet. Thebuildings would have a floor slab area of about 100 re.

3.15 Fresh and sea/Brackish Water Sunlies. Fresh water would bemade available for five sites. The supply to Mukalla, Shihr, Diss/Al Hamiand Sayhut would be drawn from the existing mains supply. For Musainah,water would be supplied by a bouser f;. im a well located around 20 km away.Because of thze scarcity of fresh water supplies along the coast, and toeconomize on its use, the project would provide a supplementary brackishwater supply at Al Qarn and Musainah.

3.16 Access Roads would be provided under the project to connect thevillage facilities of Al Qarn (improvements to 4.5 km of the existing 8.8km road) and Musainah (1.75 km of road) to the main road running betweenMukalla and Sayhut. These access roads would have a compacted gravelsurface. Areas developed for the village facilities and subject totraffic (totaling about 21,000 nP) would be surfaced with compacted gravelon compacted fill material.

Transport Facilities

3.17 Fish Transaort Vehicles. Funds would be provi&d for the importof sixteen 5-ton and 8-ton insulated vehicles antd six 10-con refrigeratedtrucks; these would be sold to private traders, xwho now provide the mainmarketing channel, and, if justified, to cooperatives to facilitate thetransport on ice of increased quantities of fish from the landing sites tothe markets and fish processing centers; the refrigerated trucks would beused for handling frozen fish.

3.18 Vehicle Workshons. The project would provide necessarymachinery and equipment for setting up workshop facilities, which would beestablished by any qualified operator willing to undertake the maintenanceand repair of the growing fleet of vehicles in the project area. Thetechnical and financial qualifications of prospective workshop operators

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would be assessed prior to the sale of workshop equipment. For projectcost purposes, the indicative list of items to be financed would includean engine/gearbox shop, fuel pump calibration unit, lathes, hydraulicdrills and jacks, air compressor, battery chargers, welding units, highpressure water pumps, valve grinder and miscellaneous other equipment. Itis expected that with the rapid liberalization process presently ongoingin the sector, demand for setting up such facilities by the private sectorwould be forthcoming.

Fishing Ve-ssels and Gear

3.19 The glass reinforced olastic (GRP) hfadifa is by far the mostpopular fishing boat among the inshore fishermen. This type of craft isrecommended for the replacement of the older boats (wood Ihadifa andHouri) in the country. These boats have evolved as the best adapted tolocal inshore maritime conditions. About 320 fishing vessels would beprovided under the project over a five year period: this estimate wasbased on a detailed analysis of the existing fleet and plans for moderateexpansion in selected areas. The boats provided would be mostly of twosizes: the smaller ones with an overall length of 7.6 m, a beam of 1.55 mand a draft of 0.70 m; and the larger ones with an overall length of 9.4m, a beam of 1.75 m and a draft of 0.75 m. The project would finance theimport of boat building materials. In the absence of any other GRP boatbuilding yard in the country, all boats would be constructed locally byCFC and equipped with outboard engines. The project would also include a600 me covered fiberglass construction yard to improve the productionfacilities of CFC in Aden. The repair and maintenance of the fleet wouldbe provided by the village workshops financed under the project.

3.20 SambuXs. The present fleet is very old and most of it will needto be replaced over the next ten years. Some 50 wooden sambuks, about14 m in length, would be built locally and the required wood materials, 45hp engines and fishing gear would be imported under the project.

3.21 Intermediate Technology Vessels. Up to four of these vesselswould be financed under the project, if ongoing pilot operations of CFCprove successful. These boats would operate up to a maximum of 7-8 daysper trip, as multi-purpose craft, using purse seiners, gill nets and longlines. Between October and March, they could also collect lobsters caughtby traditional fishermen, with traps, for CFC. The vessels financed underthe project would have an overall length of 18-20 m and a beam of 4-5 m,and would be equipped with a 175-200 hp engine attaining an economiccruising speed of 9-10 knots. Incorporated in the hull design are: (i) aninsulated hold of 5 m3 to carry ice; (ii) a fish hold of 20-25 i 3 ; (iii)fuel oil and water tanks; and (iv) fenders. The boats would be equippedwith sonar, echo sounders, power block and basic navigation equipment,including radio communication. If ongoing operations of existing CFCvessels show unsatisfactory results during the first two years of projectimplementation, the project might finance vessels of a different designfor continued testing.

3.22 Outboard Enpines. A total of some 2,400 outboard engines (15,25 and 45 hp) would be provided under the project for both new and

- 25 -

existing boats. Adequate supplies of the most essential spare parts wouldalso be provided to ensure uninterrupted supply of fish.

3.23 Eishtng Gir. Provision has been made for the import of fishinggear for both the new boats and the existing fleet. The fishing gearwould include netting of mesh sizes (from 2.5 to 7 inches); polyethyleneand kuralone ropes (5 to 10 mm thickness); floats; shark lines and hooks;hand lines and hooks; bait baskets; and mending twine. Provision has alsobeen made for gear replacements during the project period. Furthermore,to protect the lobster stocks, the project would promote the use oflobster traps rather than nets: 12,000 traps are included, to permit about100 boats to catch lobsters during two years of trials.

Support for Fisheries Credit Scheme

3.24 A majority of the sales of the project procured vehicles,boats, engines and gear would be done on a cash basis, or where thebeneficiary would be able to mobilize financial resources for theirpurchase without the direct support of the project. Nevertheless, thereis a small percentage of poor fishermen who would need direct creditsupport. Accordingly, in order to meet identified key social objectives,MF will establish a targeted credit scheme to assist the very poorfishermen who have limited assets and no savings. This group wouldinclude fishermen presently working as crew members on boats owned byothers; unemployed youth from the fishing community and graduates fromFMDC; employees laid off by cooperatives and from corporations of MF, noneof whom would have accumulated adequate cash resources of their own orhave the ability to independently mobilize financial resources. Thedemand for credit under the proposed scheme is estimated to totalUS$3 million equivalent, and would essentially cover the purchase ofboats, gear and engines.

3.25 Under the scheme, MF would establish a revolving fund in CACBtotalling the equivalent of US$3 million, using local currency generatedfrom the sale, on cash terms, of project procured items. While theoverall performance of CACB in the past has been poor, it is recognizedthat its experience with disbursing and recovering credit for thefisheries sector in the north has, so far, been generally satisfactory.Accordingly, it has been agreed that CACB would be responsible fordisbursing the targeted credit and managing the affairs of the revolvingfund. However, in view of the prevailing financial sector issues thatstill need to be resolved, CACB's involvement would essentially be in thenature of a trustee on behalf of HF, for managing the revolving fund, withthe operations and management of the proposed fund to be kept distinctlyseparate from the rest of CACB's operations. The terms and conditionswhich will govern the operations of the revolving fund are detailed inChapter V. To support MF in monitoring the implementation of this scheme,as well as to assist the cooperatives that would provide a channel forcredit disbursements, the project would finantce the services of aninternationally recruited fisheries cooperative/credit specialist for aperiod of 30 staff months.

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Ft e Stock _ = g2ment

3.26 FAO and UNESCO support to KSRRI is scheduled to be completed bythe middle of 1992. Under the proposed project, funds would be providedto HSRRI to continue technical assistance for monitoring and assessingfish stocks and analysis for fisheries management in the project area; inaddition, the project would provide for establishing an MSRRI unit atHodeidah, to enable survey coverage of the fish resources in the Red Seacoastal areas of northern Yemen. Technical assistance to improve thecollection of data on vessel operations and catch statistics to enhancefish resources assessment would also be financed. Finally, MSRRI wouldreceive assistance to monitor the effects on the marine environment ofongoing sea traffic, the release of pollutants, and oil drillingactivities. This component of the project would include: (i) a fieldsurvey of coastal habitats, including a faunal map; (ii) a habitat surveyof Aden harbor, including a scheme for regular monitoring; (iii) theupgrading of existing buildings for the unit at Hodeidah; and (iv) theprocurement of equipment and training of staff for marine pollutionassessment and monitoring. The project would provide funds for: 50 staffmonths of consulting services; the purchase of a small coastal researchvessel to collect samples in shallow waters; civil works; laboratoryequipment; three-wheel drive vehicles; and training.

Training

3.27 Under the project, local training would be provided to thefollowing cooperative personnel: senior and middle management;technicians; operators of various facilities; truck drivers (in fishhandling); and fishermen. About 3,100 people would be trained under theproject in courses ranging from 3 to 60 days. The categories of personnelto be trained and a list of subject matters are summarized in Annex 6.This training would be given at the Cooperative Institute in Aden, theFisheries Manpower Development Center in Aden and the individualcooperative offices. The project would also finance foreign training,including scholarships for a four-year training program of two navalarchitects; and one-month study tours for the two directors in charge ofcooperatives at MP in Aden and Mukalla, to give them exposure tocooperatives in other countries. The Government agreed to this trainingprogram during negotiations [para. 8.01(ii)].

Women's Develonment in Fishing Communities

3.28 To alleviate the social and economic constraints encountered bywomen in fishing communities in the project area, this component wouldfocus on providing assistance through: (i) adult education programs (i.e.,literacy, home economics, and primary health); (ii) vocational training(i.e., animal husbandry, farming, fish processing, accounting, andadministration); and (iii) the creation of employment opportunities (i.e.,clothing, poultry raising, fish marketing, and administrative services).Implementation of this component would be mainly by directing existingservices, available from Government ministries and internationalorganizations operating in WOY, to the fishing village communities.Facilities provided would include a building for a small clothing factoryto be run by an existing sewing cooperative, and rehabilitation or

- 27 *

construction of a total of twenty community development centers. Aninternationally recruited short-term consultant woulU ake a detailedsurvey of education and training services presently available for women.An internationally recruited extension coordinator (total of 24 staffmonths) would subsequently develop the education and training programs andcoordinate ongoing training programs available to women and make themavailable ln the fishing villages. A more detailed description of thiscomponent is shown in Annex 7.

Technical Assistance and Coordination

3.29 Technical support for MF would include the following: (i)Fisheries Sector Adviser (24 staffmonths) to assist MF in drawlng up aregulatory and legal framework for better defining and guiding MF's rolein managing and administering the fisheries sector resources of thecountry, drawing up a framework plan for future investment, and monitoringthe effects of the ongoing liberalization process and advlsing on measuresnecessary to address ldentified problems; and (ii) studies (18staffmonths) for the marine fisheries subsector with a view to identifyingand preparing a future investment program (see Annex 9 for terms ofreference).

3.30 Technical Assistance. Consulting engineers would be recruitedfor the detailed design, preparation of tender documents and constructionsupervision (153 staff months). In addition, the project would recruitconsultants to support the following components: project coordination (60staff months); fisheries cooperatives and credit (30 staff months); fishstock assessment (50 staff months); women's development (24 staff months);NCFM (18 staff months); and boat building and gear (21 staff months). Theterms of reference for the project's main technical advisors are shown inAnnex 9. During negotiations, agreement was obtained from the Governmenton terms of reference for specialist consultants [para. 8.01(iii)].

3.31 Promotional activities would include assistance to cooperatives,private fishermen and traders, and to NCFM in marketing their products.This component would be executed by MF. Funding would include: provisionof experimental fish stalls; testing, packaging and preparation ofpromotional and display materials; preparation and shipment of samplepackages; and the establishment of commercial contacts overseas.

Status of Project PreRaration

3.32 Preliminary designs of the village facilities and a road surveywere prepared during project preparation; these designs were revisedduring appraisal. IDA has assisted the Government in the preparation ofthe terms of reference and letter of invitation for the selection of anengineering firm which would undertake the detailed design and preparationof tender documents for these facilities. Draft tender documents for theprocurement of construction materials for boats, marine engines andfishing gear have been prepared by MF. IDA has approved a request fromthe Government for a Project Preparation Facility advance of US$350,000 tofinance key activities prior to project effectiveness. Terms of referencefor the technical assistance component have been outlined in Annex 9 andwere agreed during negotiations. The Government agreed, during

* 28 -

negotiations, to proceed speedily with the strengthening of the ProjectImplementation Unit (PIU), which would continue to be located in Aden,through the local recruitment by September 30, 1991, of an accountant, acivil engineer and a procurement officer [para. 8.01(iv)]. All of thefacilities would be built on either cooperative or Government-owned landand, consequently, there is no need for land acquisition. The proposedproject and fishery cooperative/credit advisors are already working underthe Third Fisheries Development Project and are expected to continue underthe proposed project.

IV. PROJECT COSTS AND FINANCING

A. Prolect Cost Estimates

4.01 The total project cost, Including physical and pricecontingencies is estimated at US$39.8 million equivalent, of which US$31.8million equivalent, or 79 percent would be in foreign exchange. Detailsof cost estimates are shown in greater detail in Annex 10, Tables 1-4.

4.02 Base costs were originally estimated as of November 1989; thesehave been updated to February 1991, based on either actual unit cost dataprovided by MF or by applying estimated price inflation factors. Costfigures for civil works for the village fish facilities and the Fokum-RasImran road are based on preliminary engineering studies and designsundertaken during June 1988 project preparation, and unit costs are basedon contracts in progress in the country, adjusted to site location. Costsof refrigeration equipment and machinery are based on C6F Aden quotationsprovided by equipment manufacturers. Prices for fishing gear, outboardengines, vehicles and other miscellaneous equipment are based on pricesquoted by the local agents. The cost of GRP fishing boats is based onproduction costs and margins of CFC, the local manufacturer. Costs ofborehole drilling investigation and testing are based on prices providedby the Public Water Corporation. The cost of technical assistance andoverseas tours is based on actual contract experience. Since theGovernment exempts import components of development projects from importduties and taxes, these have been excluded.

4.03 The following physical contingency rates have been applied tothe base costs: 15 percent for civil works; and 10 percent for equipment,machinery, vehicles, outboard engines, fishing gear, office equipment,market promotion, training, technical assistance and recurrent expenses.In estimating contingencies for future price increases, it is assumed thatchanges in future exchange rates would maintain purchasing power parity;the estimates assume an increase in local currency costs of 40 percent in1991, 30 percent in 1992, 25 percent in 1993 and 20 percent p.a.thereafter. For foreign exchange costs, the estimated average annualinternational price escalation is 3.4 percent p.a. for 1991 onwards. Thetotal cost of the project is summarized below (Table 4.1):

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Table 4.1: U =QC TO

TotalForeign Base

Local Foreign Ttal Exhange Colts- (US$ M) ...- ()-

A. Village and Fish ProcessingFacilities 2.6 5.7 8.3 69 26

B. Transport Facilities 0.1 1.3 1.4 95 5C. Fishing Vessels and Gear 1.9 13.1 15.0 88 48D. Fish Stock Management 0.1 1.0 1.1 91 3E. Training 0.2 0.3 0.5 57 2F. Development of Women in

Fishing Communities 0.3 0.6 0.9 62 3C. Technical Assistance and

Coordination 1.2 3.2 4.4 73 14

Total Baseline Costs 6.4 25.2 31.6 80 100

Physical Contingencies 0.6 2.6 3.2 74 10Price Contingencies 1.0 4.0 5.0 80 16

ITo Proialt Cs 8A 39.8 c 1o2ts6

Note: Costs are exclusive of duties and taxes. Totals may not add updue to rounding.

B. ZFia¢nci Plan

4.04 The total project cost of US$39.8 million equivalent would befinanced as follows: I.A would provide a credit of SDR 9.4 milliu&i(US$13.2 million equivalent), corresponding to 33 percent of total projectcosts; EEC would provide a grant of US$16.3 million equivalent (ECU12.11million); and IFAD a loan of SDR 5.0 million (US$6.5 million equivalent).The Government would contribute from its own resources about US$3.8million equivalent, which would cover all recurrent costs, 48 percent ofthe local costs and 10 percent of total costs.

4.05 The IDA credit would be made on standard terms (40 yearsmaturity, including 10 years of grace, at a service charge of 0.75 percenton the outstanding and disbursed balance). The Borrower of the IDA Creditwould be the Government of ROY which, through the Ministry of Fisheries,would ensure the utilization of the funds in accordance with the terms andconditions set forth in the Development Credit Agreement. The proposedfinancing plan is as follows (Table 4.2):

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table 4, 2: ROJECT FIANCING LAN

Percent ofFinancng Source J f Ege gfl ga al cgs

-^^-- (US8 M) .-...

Government 3.8 0.0 3.8 10IDA 0.8 12.4 13.2 33EEC 2.9 13.4 16.3 41IFAD Q Q 6.516

Total LAQ IN. 39.8

4.06 IFAD participated in the appraisal of the project and hasalready obtained approval of the proposed loan from its Executive Board inOctaber ltO90. EEC co-financing would be by parallel arrangements. Theforeign cost of boat engines and gear would be jointly financed by IDA andIFAD on a 55-45 basis respectively. An agreed financing plan by agencyand by component is shown in Annex 11. A condition of effectiveness ofthe IDA credit will be the effectiveness of the EEC grant and IFAD loanagreements (para 8.02(i)].

C. Progzemmsn

4.07 The procurement of all items financed under the project would becarried out by MF, through the Project Implementation Unit. As detailedin the sections below, procurement of the components to be financed by theproposed IDA credit of SDR 9.4 million (US$13.2 million equivalent) wouldbe carried out in accordance with the procedures outlined in IDA'sGuidelines for Procurement (May 1985). The IDA-financed consultants wouldbe recruited according to the World Bank's Guidelines for the Use ofConsultants (August 1981). Procurement of components cofinanced by IFAD(boat engines and fishing gear, market promotion, and development of womenin fishing communities) would also be in accordance with the proceduresoutlined in IDA's Guidelines for Procurement (May 1986); componentscofinanced by the EEC (village and fish processing facilities,intermediate technology vessels, fish stock management, and technicalassistance) would be procured in accordance with their regulations.

4.08 IDA-financed contracts and procurement arrangements are shown inTable 4.3 below, which provides a procurement plan for the proposedproject elements (figures include physical and price contingencies).

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Table 4.3: PROCUR= pL&N

Pro1ect Element. PErourement Method TotalIC other/ Nt. Cost------- (US$ million) --------

Civil Works 2.8 7.5 10.3(2.1) (2.1)

Machinery and Equipment 2.0 2.0(0.1) (0. 1)

Fishing Vessels and Gear 14.5 4.0 18.5(8.1) (8.1)

Vehicles 1.8 0.1 1.9(1.8) (1.8)

Market Promotion 0.3 0.3

Training 0.7 0.7(0.4) (0.4)

Technical Assistance 4.9 4.9(0.7) (0.7)

Operating Costs 1.2 1.2

TOTAL 19.1 19.5 1.2 39.8(12.0) (1.2) (13.2)

Note: Figures presented in parenthesis are the respective amountsfinanced by IDA. Costs include contingencies.

IDA-Financed Components

4.09 Fokut-Ras Imran_ oad. The contract for the construction of theproposed road will be awarded through international competitive bidding(ICB).

4.10 Oart oLjngd nga. The procurement of outboard engines for thelocally built small boats, including replacement engines for existingboats, would be carried out on the basis of ICB; inter All&, customerpreference would be included as a criterion for bid evaluation and awardof contract. For resale to project beneficiaries, the engines would besold in accordance with price guidelines issued by MF, which would allow areasonable profit margin and would include the obligation to stockessential spare parts.

* 32 -

4.11 Eishn g near. The procurement of fishing gear and material forlobster traps would be undertaken using ICB procedures. The fishing gearwould be sold through local traders and cooperatives who would beencouraged to establish small-scale and widely distributed tradingoperations. The actual volume and types of annual procurement of fishinggear would be ascertained by the PIU, through local advertising each year,from the prospective traders and cooperatives who would sell the impcrtedgear to the fishermen.

4.12 Transport vehicles. The procurement of both fish and passengertransport vehicles would be on the basis of ICB. Sale of vehicles forfish marketing to the traders would be done directly by the dealers of theselected make/iodel.

4.13 Laboratorv and office equipment. Costing between the equivalentof US$10,000 and US$100,000 per contract, up to an aggregate amount ofUS$0.5 million, the equipment would be procured on the basis of prudentshopping procedures. Rids for these items would be obtained from at leastthree suppliers from at least two different countries. Miscellaneousequipment costing the equivalent of less than US$10,000 per contract, upto an aggregate amount of US$0.1 million, would be procured by obtainingbids from at least three suppliers.

4.14 Training. The selection of training institutes for placingYemeni trainees would be recommended by an internationally recruitedproject adviser and would be approved by IDA. All training would belocal, except for the two naval architects, three scientists from MSRRIand the study tours for the directors of the Aden and Mukallacooperatives, which would be overseas.

4.15 Revigw of nrocuremen=. IDA would review documentation of allcontracts estimated to cost the equivalent of US$100,000 or more, prior totendering and award. Such a review would cover about 15 contracts and 88percent of total IDA financing. Other contracts would be subject toselective post-award review by IDA.

Go-financed Components

4.16 For the village fisheries development component (civil works,equipment, service facilities, commissioning and maintenance), a singlecontract would be awarded according to EEC procurement procedures. Thesingle-responsibility contract arrangement is appropriate, since it isessential that one contractor takes overall responsibility forsynchronizing civil works, equipment and electrical facilities. Theconstruction or rehabilitation of the fishing community centers (financedby IFAD), which are scattered throughout the country, would be realizedthrough force account by the Ministry of Construction up to an aggregatevalue of US$0.7 million. The fully equipped intermediate technology off-shore vessels, rigged for combination fishing for CFC, and the coastalresearch vessel for MSRRI, would be procured in accordance with EECprocurement procedures. The generic performance specifications for thesevessels would be prepared with the assistance of the naval architect andwould be subject to review by IDA, and prior approval of EEC. As in theThird Fisheries Project (Cr. 1274-YDR), the naval architect would evaluate

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the final designs proposed in the bids, and also evaluate the capabilitiesof the (small) shipyards most likely to bid for the vessels. The EEC haveconfirmed that under terms to be outlined in their project financingagreement with the Government, the intermediate technology vessels wouldbe sold to CFC through a foreign currency denominated loan which wouldcarry the commercial international interest rate.

4.17 Consultants. The employment of consultants financed by IDA andIFAD would be in accordance with the Bank Guidelines; the otherconsultants would be recruited in accordance with EEC procedures. Designengineering services are estimated at 24 staffmonths and costing anestimated US$0.36 million; construction supervision is estimated at 129staff-months, costing US$1.45 million. Other consultants required for thevarious project components total 263 staffmonths and are estimated to costUS$3.03 million. The summary of technical assistance, expressed in staffmonths and broken down by financing agency, is shown in Annex 8. Theterms of reference of the individually recruited consultants aresummarized in Annex 9.

D. Disbusements

4.18 The proposed IDA credit of SDR 9.4 million (US$13.2 millionequivalent) would be disbursed over eight years, in line with the sectorprofile for the country. Disbursements would be made in accordance withGuidelines for Withdrawal of Proceeds of IBRD Loans and IDA Credits(November 1985), and as shown in Table 4.4 below.

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Table 4.4: DISBURSEMN PLAN

X of ExpendituresCatAgory Credit Allocation to be financed

(SDR '000) --

1. Civil Works 1,400 75Z of expenditures

2. Equipment (other than 2,300 100l of foreign expenditures,outboard engines and 100l of local expendituresfishing gear), boat (ex-factory) and 85% of localbuilding materials, expenditures for other itemsand vehicle procured locally

3. Outboard Engines and 4,100 55X of foreign expenditures,Fishing Gear 55X of local expenditures

(ex-factory) and 502 of localexpenditures for other itemsprocured locally

4. Consultants' Services 500 1002 of foreign expenditures,and Training 902 of local expenditures

5. Refunding of Project 300Preparation Facility

6. Unallocated 800

Total L240

The closing date of the proposed credit would be June 30, 1999. Theestimated project completion date would be December 31, 1998. Theestimated schedule of disbursements is summarized in table 4.5 below(detailed in Annex 12).

Table 4.5: ESTIMATD DISBURSiMENTS SCULED

IDA Fiscal Yearm9 1993 m1 1222 19 1222

…...............------ …(US$ N) .....................

Annual 0.4U 1.5 2.7 2.4 2.3 2.3 1.4 0.2Cumulative 0.4 1.9 4.6 7.0 9.3 11.6 13.0 13.2

1/ PPF advance of US$350,000.

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4.19 Soecial Account: To enable MF to effectively implement theproject and to make prompt payments to contractors and consultants,agreement was reached at negotiations that a Special Account would beopened at a commercial bank chosen by the Central Bank of Yemen; IDA wouldmake an initial deposit in SDR of US$0.6 million equivalent, which isexpected to finance IDA's share of eligible expenditures over a period offour months. The account would be denominated in U.S. dollars andreplenished against withdrawal applications aggregating at leastUS$100,000 equivalent. All disbursements under the project would be madeagainst standard documentation, except for contracts below US$20,000equivalent (i.e. purchase of office and laboratory equipment, foreigntraining expenses), which would be claimed under Statements ofExpenditures (SOEs); disbursements against SOEs are estimated at about 4percent of the Credit. Agreement was also reached during negotiationsthat the Special Account and SOEs would be audited annually by anindependent auditor acceptable to IDA (para. 8.01(v)].

V. ORGANIZATION. NARAGEMENT AND INPLENENTATION

A. Prolect Implementation

5.01 Project implementation would be the responsibility of theMinistry of Fisheries (HF): the executing agency within HF would be theProject Implementation Unit (PIU) based in Aden, and attached to MF'sPlanning Di4sion, which is headed by an Assistant Deputy Minister. MFhas recently appointed a Project Director. The PIU was established in1974 and, since then, has developed into a capable and efficientorganization, having gained considerable experience in handling three IDA-financed projects. Its accounting and management staff is competent andfamiliar with all necessary requirements and procedures. Its presentstaff of 12 includes an expatriate coordinator and a fisheries creditadviser. The fisheries cooperatives would also play an important roleduring project implementation. Agreement has been reached with Governmenton the various measures which need to be taken, some of which have alreadybeen initiated, in order to re-structure the activities of thecooperatives and to put them on a firm financial footing (paras. 2.35 and7.13). The project would provide extensive training (para. 3.27) toimprove their management capabilities.

5.02 MF presently oversees, guides and coordinates implementation ofexisting projects though a committee, which includes representatives fromMF, NCFM, CFC and MSRRI. Assurances were obtained during negotiationsthat this committee would continue to operate during the projectimplementation period, that it would also include a representative fromCACB, and that it would ensure inter-agency coordination for the proposedproject (para. 8.01(vi)].

5.03 During the construction period of the project, the functions andresponsibilities of the PIU would consist mainly of: coordination andsupervision of construction of civil works, and the procurement andinstallation of equipment. The PIU would be responsible for theprocurement of boats, engines, fishing gear and other equipment. In view

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of the new arrangements for the sale of outboard engines and fishing gearto fishermen (paras. 4.10-4.11), the PIU would closely monitor theeffectiveness of these arrangements in cooperation with CFC and thecooperative division of MF. It is envisaged that MF, through the PIU,would support GACB in assessing applications for credit from fishermenunder the targeted fisheries credit scheme (particularly in terms ofmeeting eligibility criteria), and in ensuring that they subsequently meettheir financial obligations. PIU would also coordinate the activities ofthe adult education, vocational training and women's developmentcomponent. PIU would, furthermore, arrange for training of cooperativestaff and fishermen, at the Cooperative Institute and the FisheriesManpower Development Center in Aden (Annex 6). In addition, the PIU wouldbe responsible for: maintaining all project accounts; progress reportingto IDA, other financing institutions and other Government departments; andarranging for auditing of all project accounts.

5.04 Since the tasks of PIU would increase considerably from thoseunder the previous fisheries projects, the international recruitment of anexpatriate project adviser would be of major importance for projectimplementation; his/her appointment would be subject to approval by allfinarncing agencies. During negotiations, the Government assured IDA thatthe contract of the present internationally recruited project adviser forthe Third Fisheries Development Project would be extended, so as to enablehim to provide assistance in the preparatory steps for implementation ofthe proposed project (para. 8.0l(vii)]. In addition, the local staff ofthe existing PIU would be strengthened with the recruitment of a civilengineer, an accountant, and a procurement officer; the recruitment ofthis additional staff is essential for a rapid start-up of projectimplementation and should be undertaken within the next few months.Furthermore, to ensure continued assistance to the cooperatives, and forimplementing the credit scheme under the project, assurances were obtainedduring negotiations that the contract of the present internationallyrecruited fisheries cooperative/credit expert assigned to the PIU would beextended [para. 8.01(vii)]; he would be assisted by three staff fromeither the cooperative or planning divisions of the MF, one of which wouldbe a woman who would also focus on designing and implementing a creditscheme for women.

5.05 PIU's responsibility for the implementation of the developmentprogram for women in the fisheries sector would be carried out through theinternational recruitment of an extension coordinator who, together with alocal counterpart, would mainly concentrate on channeling to the fishingvillages in the project area some of the existing internationally andnationally funded extension programs available in ROY. A task force,consisting of representatives from the different ministries, institutions,the General Union of Yemeni Women (GUYW) and technical assistance projectswould be established to facilitate institutional support for the program.A woman extension worker would be locally recruited to implement theprogram in the Hadramawt Governorate; additional extension workers wouldbe recruited for the other governorates as the program evolvessuccessfully. A female instructor or link worker would be recruited, on apart time basis, in each village: her main task would be the organizationand implementation of the non-formal adult education program and the

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facilitation of the vocational training and employment program. The linkworkers would receive training and support from the extension workers.

5.06 A firm of consulting engineers would be retained by MF andattached to the PIU to carry out any additional engineeringinvestigations; prepare detailed designs, tender and contract documentsfor the project village facilities; and assist the Government in bidevaluation and the selection of contractors. The engineering firm wouldalso be engaged to supervise the construction, installation, commissioningand start-up of project facilities. The consulting engineers supervisingconstruction would certify bills of quantities and payments tocontractors, as well as commissioning and transfer of completedfacilities.

B. Project Operations

Village Fisheries Facilities

5.07 A difficulty experienced under the Third Fisheries DevelopmentProject was the lack of full comprehension by the fisheries cooperativesof the types of village facilities proposed and their cost recoveryimplications. To avoid a recurrence of this in the proposed project, theengineering design consultants would prepare small scale models of theproposed facilities and investment cost estimates which would be reviewedby the fisheries cooperatives. The Government would also obtain thecooperatives' written agreement to proceed with the proposed investmentsprior to the tendering of the construction contract. Assurances to thiseffect were obtained from the Government during negotiations[para. 8.01(viii)].

5.08 The cooperatives would take possession of the shore facilitiesonce they have been 'nstalled. The participating cooperatives wouldrecruit the necessary technicians to operate and maintain these facilitiesand equipment; training for these technicians would be provided for underthe project. With the changes that have recently taken place,cooperatives would essentially be involved in arranging auctions for thesale of fish catch directly to traders, and in providing key services tothe fishing community. The cooperatives would receive training under theproject to improve their overall performance. Furthermore, they wouldreceive guidance from the proposed fisheries cooperative/credit adviser tobe financed under the project.

Fisheries Credit Scheme

5.09 The proposed fisheries credit scheme, with important socialobjectives, is aimed at providing financial assistance to a target groupof fishermen (para. 5.10) who would, in all probability, not have readyaccess to credit even if there were no distortions prevailing in thefinancial sector. The scheme is proposed on an exceptional basis, despitethe obvious distortions affecting the financial sector. At present thereis no other way to reach the largest beneficiaries with financialassistance. The terms and conditions that will govern the operations ofthe credit scheme are detailed below.

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5.10 Targnt GrgR. The proposed target groups would include thefollowing categories of fishermen: (i) members of the fishing communitypresently working as crew members on boats owned by others; (ii) educated,unemployed youth from the fishing community, and graduates from FMDC; and(iiL) personnel laid off from work by cooperatives and MF corporations.The guiding criteria in identifying caitable candidates for assistanceunder the scheme would be the absence of any asset ownership or savings,with the beneficiaries coming from the poorest segment of the fishingcommunity seeking employment in the sector.

5.11 Revolving Fun. MF will establish a revolving fund forproviding credit to the target group, which would be managed on its behalfby CACB, and for which CACB would receive a management fee. Based on anassessment carried out by MF, the total funds needed would total theequivalent of US$3 million; these would come from the local currencyproceeds from the cash sale of project-procured fishing equipment, boatsand vehicles. The lending program under the scheme would be administeredthrough the existing branches of CACB in southern Yemen, as well asthrough the proposed branch in the Al-Mahrah Governorate. MF, jointlywith CACB, has already prepared an indicative credit plan (physical andfinancial), which has been reviewed by IDA and is acceptable.

5.12 Since the scheme is aimed at assisting the poorest segment ofthe fishing community, eligible Jtems to be financed under the schemewould include: small fishing boats; fishing nets and other fishing gear;and 15-25 HP outboard engines. Under the scheme, security for the loanwould be from: (i) hypothecation of assets purchased from the loan; and(Li) guarantee from a minimum of two fishermen or group guarantee. Asborrower's contribution, a minimum of 10 percent of the cost of theinvestment would be expected. The period of loan regayment would be fixeddepending upon the repayment capacity of the borrower and the value of theloan, with a maximum of 60 months.

5.13 Rate of Interest. In line with the prevailing cabinetresolutions, the rate of interest on the above loans would be 7 percentp.a.; any future upward adjustment in GACB interest rates would also beapplicable to loans granted under the proposed scheme. While this rate ofinterest is presently negative in real terms, no substantial adjustment ofthese rates appears imminent. During negotiations it was agreed withGovernment that, in order to make transparent the financial subsidiesinvolved by pursuing existing interest rate policies, MF will annuallyreimburse the fund through its budget, the loss suffered by the fund inreal terms, quantified each year by applying the difference between thenominal interest rate and the rate of inflation (as measured by an indexacceptable to IDA) in percentage terms on the total amount disbursed andoutstanding.

5.14 Processing of Loan Agplications. CACB will use its normallending procedures for fisheries credit developed during theimplementation of the earlier IDA project (Credit 1025-YAR); in doing so,it will coordinate its activities with the PIU and the respectivecooperative. For processing applications, CACB loan officers willundertake field visits to the villages on pre-appointed days to obtainloan applications from eligible fishermen. Assistance would be sought

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from the cooperatives and other local sources for ascertainingeligibility. To the extent possible, loan processing would be done on agroup basis. Once sanctioned, the loan amount will be directly disbursedto the boat, engine or gear supplier after receiving the contribution fromthe borrower. Post-sanction supervision of the loans up to the time offull recovery would be carried out by CACB's loan officers. The PIU willbe responsible for monitoring the overall scheme.

5.15 Accounting and RepggtInU. Each CACB branch involved in thescheme would maintain accounts, using acceptable accounting procedures,which would be kept separate from the accounts of the rest of its lendingoperations. CACB shall submit a quarterly report to IDA and to MF on thenumber and geographical distribution of loans processed, disbursementsmade from each branch, and the recovery performance of the loans grantedunder the project.

5.16 The overall terms and conditione for the operations of thespecial targeted credit scheme, as set out above, were agreed withGovernment during negotiations. These will form part of the Special FundAgreement which the MF will enter into with CACB, and the execution ofwhich will be a condition of credit effectiveness [para. 8.02(ii)].

C. Iolemtatio Schedul

5.17 The project would be implemented over a period of seven years.The project's implementation schedule is shown in Annex 13. Under thisplan, the construction of facilities would be completed in Year 6; amaintenance period of one year has been allowed after completion ofconstruction. Introduction of boats would start in Year 2 and continuetill Year 6. Given its importance, most of the training of cooperativestaff and fishermen would be carried out during the first four years, butsome refresher courses would be carried out throughout the project period.

D. Monitoring. Evaluation and RepoMtlnj

Monitoring and Evaluation

5.18 The PIU would have overall responsibility for monitoring,evaluation and reporting. Monitoring and evaluation would focus onproject inputs and outputs, and on policy and institutional changes in thefisheries sector.

5.19 Project Inputs requiring monitoring and evaluation wouldinclude: civil works, procurement, staffing, training, boats constructedand sold, and fisheries credit. The PIU would be assisted by: theengineering consultants in the monitoring of civil construction andprocurement; CFC in the reporting of boat construction activities; andCACB in the follow-up of utilization of the targeted fisheries credit.

5.20 Project Outputs to be monitored, and which would provide thebasis for subsequent project evaluation, would include: quantity of fishcaught and marketed from each of the cooperatives in the project area, by

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species; t,e financial situation of the fishing cooperatives; quantitiesand species of fish caught and costs and earnings of the existing CFCvessels and the vessels to be financed under the project; the boatbuilding program of CFC; progress made in the assessment of fish resourcesand monitoring of sea pollution; and human resource development in thefishing communities, notably the cooperative training program and thedevelopment of women component. The information for the monitoring andevaluation of the project outputs would be supplied regularly to the PIUby MF's cooperative department, NCFM, CFC, MSRRI and CACB.

5.21 The foreign lenders would supervise implementation of thecomponents which they finance; to the extent possible, IDA wouldcoordinate the overall supervision of the project by organizing jointreview missions with the other financiers. A tentative projectsupervision plan for IDA is shown in Annex 14: it would require a total ofabout 120 staff-weeks of supervision. There would be two supervisionmissions per year, and the supervision specialties required at variousstages of project implementation would be: a procurement specialist,fisheries specialists, a naval architect, an institutional specialist, afinancial analyst, a credit specialist, a civil engineer, a refrigerationspecialist, and a women-in-development specialist.

5.22 Policy and Institutional Changes monitored would include:progress made in defining a role and strategy for NCFM's futureoperations, and improvements in its operating autonomy, efficiency andoverall financial performance; progress in provision of credit to women infishing communities; and progress in the financial restructuring,operating efficiency and financial performance of the fisheriescooperatives.

^20orting ReXsairemLents

5.23 PIU would be responsible for submitting to both IDA and theother financiers semi-annual progress reports on the project, focussed onagreed key indicators, not later than two months following the end of eachreporting period. An interim review of all project activities would beconducted jointly by MF, IDA and other co-financiers about two years afterproject initiation. For this review, MF would prepare a detailed reportand submit it to IDA not later than June 30, 1994. This review would takestock of progress and constraints and, if necessary, adjust components,objectives and fund allocations. The review would also make suggestionsconcerning the remainder of the work program and any further adjustmentsthat might be desirable in the context of the recent unification ofYemen. Furthermore, not later than six months after the credit closingdate, HF would furnish to IDA a Project Completion Report. The completionreport would, inter alia, include: an analysis of the execution andpreliminary operations of the project; the benefits derived from it; theperformance of project management and IDA in fulfilling their respectiveobligations under the Credit Agreement; and the accomplishments of theproposed project in relation to its stated objectives. Assurances wereobtained from the Government at negotiations in respect to the abovementioned reporting requirements [para. 8.01(ix)].

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E. Apgagts and Audits

5.24 All organizations involved in project implementation would besubject to the expenditure control procedures of the Government of ROY,which are considered satisfactory. Project accounts would be maintainedseparately, and in readily identifiable form, by the PIU, thecooperatives, CFC, and MSRRI. Project accounts would be consolidated bythe PIU to reflect, in accordance with sound accounting practices, theoperations, resources and expenditures related to the project.Furthermore, CFC would submit to IDA yearly audited reports of theirconsolidated financial statements. At negotiations, assurances wereobtained from Government and MF on the above accounting procedures, andthat: (a) unaudited reports of CFC and the project would be submitted toIDA and separately to the other financiers of the project, not later thanthree months after the end of each fiscal year (December 31); (b) anindependent auditor, satisfactory to IDA, would be appointed to undertakeannual audits of the accounts of CFC and the project; (c) certified copiesof the audited accounts of CFC and the project, as well as the SpecialAccount and Statements of Expenditures for each fiscal year audited, andof the auditor's report would be furnished to IDA and to the otherfinanciers of the project, not later than nine months after the end ofeach fiscal year; and (d) the auditor's report would be of such scope andin such detail as IDA shall reasonably request, including, inter alia, astatement that the funds advanced by IDA for the Special Account anddisbursed against SOEs had been used for the purposes for which they wereprovided [Para. 8.01(x)].

F. Environmental Imoact

5.25 The proposed project has been placed in environmental screeningcategory B, consistent with the provisions of Operational Directive 4.00,Annex A, and did not require preparation of an environmental assessment.Proposed developments in the fishing villages would not have any majordetrimental effects on the environment. There are no harmful substancesreleased into the marine environment and other legitimate users of themarine environment would not be affected. Sites and layouts have beenchosen to minimize any environmental dangers. However, during thedetailed design stage of the project, the following environmental aspectswould be reviewed for incorporation in the design:

(i) any waste oil from boats and engine rooms would be collectedand incinerated;

(ii) exhaust fumes from diesel generators would be collected by amanifold and ejected into the atmosphere at a suitable heightvia a chimney;

(iii) noise from engine rooms at the ice and cold store plantswould be suppressed by baffle walls; and

(iv) hazardous waste like old batteries, paints, oil rags, etc.,particularly at Mukalla and Musainah, would be collected andtransported to a disposal site.

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5.26 As a result of investments in the village fisheries facilitiesand in additional boats, the project would generate higher fish landingswhich, in turn, would produce more refuse, such as, fish heads and guts,which are normally left on the shore. The untreated refuse pollutes theair of the surroundings and brings about maggot and fly infestation.Under the project, arrangements would be made to collect the refuse inbins and transport it to suitable areas for burial.

5.27 The increased fish production anticipated under the projectwould not cause excessive exploitation of the fish resources. Theseresources have been studied under a variety of technical assistanceprograms, including recent assessments by UNESCO and FAO. These studiesindicate that the fish resources affected by the project are not heavilyexploited. However, tropical marine ecosystems, although rich and fast onturnover, are delicate and can quickly be destroyed, unless carefullymonitored. Under the project, provisions have been made for NSRRI tomonitor very closely catch and fishing effort data over the life of theproject and to recommend management measures if such a situation arises.Specifically, the project would actively promote the use of lobster traps,which catch lobsters alive and facilitate release of gravid females, toreplace the use of gillnets, which kill lobsters indiscriminately. Theuse of live lobsters would also improve product quality, and enable CFC toobtain higher prices.

5.28 The above mentioned measures would be taken into account in thedesign of the village facilities and the operating procedures for theprotection of the environment would be monitored by MSRRI, in conjunctionwith the Government's environment committee. Assurances were obtainedfrom the Government at negotiations that the above measures to protect theenvironment would be complied with [para. 8.01(xi)].

VI. PRODUCTO. .NRRETING. AND PRICES

A. Production

6.01 The project would increase fish production from traditionalfisheries in southern Yemen through a series of interrelated improvementsaffecting fish catch levels, preservation, marketing and export. Withoutthe project, fish landings from traditional fisheries would decrease fromtheir present level of about 23,000 mt to about 18,000 mt in Year 7: thisdecrease is due to the projected deterioration of the existing fleet (onaverage fishing boats are over 25 years old). In addition, the GRP boatsbuilt in the early 1980s were of relatively low quality, and, hence, oflow efficiency, and would also gradually withdraw from operations. Theproposed project would increase production from the projected withoutproject level of 18,000 mt to 29,000 mt, or by about 11,000 mt by Year 7.This increase would be the result of the project's impact on: (i) improvedefficiency of the existing fleet; (ii) improved design of the boats builtby CFC; and (iii) the additional 1,200 mt of fish which would be landedannually by the four semi-industrial CFC vessels, to be procured under theproject. Catch rates for small boats are based on current levels of

* 43 *

production of existing boats under similar conditions and for larger boatsen results from pilot operations.

6.02 Previous price guidelines and marketing constraints have notonly limited the volume of fish landings by cooperative fishermen, buthave also adversely affected the composition of the awerage catch. Amajor proportion of the catch has been constituted of low grade fish, suchas sardines. These do not pose a preservation problem, since they aresun-dried and sold as camel feed or fertilizer. The lack of preservationand of transport facilities has so far not allowed a significant change inthe average fish catch composition. Consequently, fishermen have beenlargely unable to benefit from the price premiums paid for fresh fish.The proposed project investments in handling, storage and marketingfacilities would: (i) favor a shift in domestic marketing from frozen toiced fresh fish, which commands a price premium; and (ii) induce fishermento exploit higher value species, as indicated below.

Table 6.1: CATCH COMPOSITION

Future/Category of Fish Without Proiect With Proiect

(Percent) (Percent)

Super Grade 9 12Category I 8 11Category II 15 17Category III 5 12Lobsters 2 2Sharks 16 20Sardines 45 26

Total 100 100

As a result of the expected change in the catch composition, the averagevalue of the fish catch is expected to increase by 22 percent. Thisincrease is considered feasible, given the expected improvements inmarketing capacity and the recent increases An private sector prices insouthern Yemen for high grade fish (see para. 6.06).

B. Marketing and Prices

6.03 It is projected that most of the increase in the fish catchwould be sold in the domestic market. Under the recently liberalizedpolicies, some cooperatives may continue to purchase fish, while otherswill shift primarily to providing auction facilities and ice. In eithercase, fish availability in domestic local markets is expected to continueto increase.

6.04 In the absence of reliable household consumption data, anestimate cannot be made of present total domestic fish consumption. Alongthe coast, people depend on fish as their main source of animal protein;

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however, even there supplies are sometimes inadequate, as demonstrated bythe occasional shortages in Aden and other major coastal consumptioncenters. Dried and canned fish are traditionally consumed in the interiortowns of the Hadramawt Governorate. A recent study by NCFH suggests thatin Seiyun, the major town in the Hadremawt area, only 25 percent ofcurrent demand for fresh fish is presently satisfied. As in many placesin southern Yemen, relatively few fish retAil outlets exist, and it issafe to assume that potential demand could be substantially above presenteffective demand. Demand in northern Yemen is concentrated along thecoast and the major cities. Prior to unification, consumption wasmoderate to low, reflecting limited infrastructure and low production inthe former YAR waters. Since unification, fish trade and distribution innorth Yemen has reportedly increased substantially, contributing to majorincreases in prod'acer and consumer prices int the south. The recentliberalization of price and marketing controls has also contributed toincreased producer prices in the south.

6.05 In the past southern Yemen's exports of frozen fish have mainlybeen directed to Egypt and Saudi Arabia. With the proposed project,exports of higher value species, frozen and fresh, may be extended toEurope and the Gulf States. Highly priced shark fins will continue to beexported to Hong Kong. Lobster and cuttle fish will continue to beexported to Europe and Japan. However, the volume of exports will becritically dependent on the level of private investments in fish exports.

6.06 Assumptions on prices received by fishermen under the projectare shown in Annex 15, Table 1. Because of the recent liberalization andadjustments in the sector in southern Yemen, fish prices have increasedsubstantially from those previously faced by cooperatives. However,benefits accruing to the sector as a result of these policy changes havebeen incorporated into project analysis, with analyses (both with andwithout project scenarios) having been carried out using projected post-liberalization price levels.

VII. BENEFITS AND JUSTIFICATIOI

A. Beneficiaries and Flnancial Beneflts

7.01 Beneficiaries. With an estimated annual per capita income ofabout US$220 (nearly a third of the national average for the unifiedcountry), the artisanal fishermen belong to the country's poorerpopulation. About 3,500 fishermen, or more than fifty percent of theestimated 6,400 fishermen in southern Yemen, would directly benefit fromthe project. Depending on their location and size of fishing vessel,their incomes are estimated to increase by between 60 percent and 100percent. In addition, as a result of the project, approximately 2,100fishermen would enjoy access to new boats and/or engines and fishing gear.Furthermore, a significant number of the country's population wouldbenefit from a larger and more reliable supply of fish--including agreater percentage of fresh fish.

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7.02 Under the targeted credit scheme to be established by MP, fundswould be available for the poorer elements of the fishing population topurchase boats, engines and gear. The cooperatives, CACB and MF willensure that these items reach the poorest fishermen. IFAD and IDA wouldreview the success in reaching this target group by periodically examiningsample data collected by the PIU in the course of monitoring creditoperations.

7.03 Financial Benefits. Financial analysis has been -,arried out forthe different types of boats and vessels proposed under the project. Toestimate the impact of the project on fishermen's income, four activitymodels were prepared. The main assumptions underlying these models areshown in Annex 15, Table 2. The results are summarized below (Annex 15,Tables 3-6).

Table 7.1: FINANCIAL RATES OF RETURN

Financial Rates of Retn (X)Base Catch or Sales Investment

boat Type Case Prices Down 10Q Cgsts- UlO

GRP 7.6 meters 46 19 36GRp 9.4 meters 44 19 33Sambuk 56 42 47Intermediate Technology 24 16 19

7.04 The sensitivity of financial rates of return for alternate boattypes is mainly caused by the particular share system utilized on theboats which gives tbi crew a percentage of the catch value after otheroperating costs have been deducted; and the fact that operating marginsincrease rapidly after a certain level of production has been reached.Although financial rates of return vary substantially among boat types,the various types of vessels are complementary. In order to ef& v. -elyexploit fish which cannot be caught by small scale boats, the countryrequires intermediate technology vessels which are more efficient than theindustrial vessels currently operating in southern Yemen.

7.05 The financial analyses also indicates that the projected long-term debt service coverage ratio is satisfactory for each type of boat orvessel, and remains well above one during the years of highest debtrepayment. The average income per crew member is satisfactory in allcases. It becomes substantial for the crew on the intermediate technologyvessel, as shown below.

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Table 7.2: CREW INCOME AND LONG-TERM DEBT SERVICE COVERAGE

Average LowestYearly Income Long-Term Debt

Boat 3^p per Crew Member Service Coverage Ratio(YD)

GRP 7.6 meters 784 1.4GRP 9.4 meters 764 1.3Sambuk 687 1.8Intermediate Technology 1,805 2.4

7.06 Analysis has also been carried out to estimate the impact of adepreciation in the value of the local currency. If the Yemeni Rial wereto depreciate by 50 percent vis-a-vis the US dollar, the financial ratesof return (FRRs) for the different boats and vessels would remain atacceptable levels, as shown below.

Table 7.3: FINAIAL RATES OF RETURN(Assuming 50% Depreciation in Local Currency)

Beat imp FRR(%)

GRP 7.6 meters 19GRP 9.4 meters 13Sambuk 31Intermediate Technology 16

B. EconoMic Benefits

7.07 The project's primary economic benefit would be incremental fishlandings, estimated to reach some 11,000 mt/year at full development(para. 6.01). The incremental fish production indicated above takes intoaccount the fish production foregone if there were to be no project. Thisis justified, since at present about one-half of the sanbuks, almost 40percent of wooden khadifas and 20 percent of the wooden hourls operatingin southern Yemen are old, inefficient and in need of replacement.Substantial boat replacement has to date been constrained due to lack ofavailable foreign exchange.

7.08 Increased flsh production would lead to more abundant fishsupplies for the domestic market, resulting in lower imports of meat andconsequent savings in foreign exchange. It is assumed that some 750-1,250 mt of additional fresh fish would be exported annually, generatinggross foreign exchange earnings estimated between US$0.5 million andUS$1.0 million per year at full development. An additional importantbenefit would be an increase in the value of lobster exports gained fromthe processing of live lobsters caught in lobster traps rather than deadlobsters caught in nets. The new processing method would permit export ofthe entlre lobster inotead of only the tail, with an estimated increase inexport value of US$0.5 million per year. Reduction of losses suffered

- 47 -

from spoilage and damage would generate further benefits. The facilitiesprovided under the project would permit improvad and more well-organizedfish collection and delivery to the main processing and consumer centers.Benefits would also accrue to CFC in terms of increased business for boatbuilding. Furthermore, consumption of fresh fish would increase in areaswhere supplies are low at present. Increased fish supply would help tosatisfy the nutritional needs of the poorer section of the population, asfish is the cheapest available source of protein in the country.

7.09 Some of the above benefits, in particular from the social andnutritional effects of the project, have not been quantified and aretherefore not incorporated in economic rate of return (ERR) calculations.In calculating the ERR, the following assumptions were made:

(i) Standard Conversion Factor (SCF). An SCF of 0.67 hat bzeenused to convert local financial costs of nontraded items intoborder price terms, in order to reflect the prevailingdistortions in the economy.

(ii) Investment Costs. The imnvestment cost of all projecteomponents (expressed in border price terms), other than thewomen development component whose direct economic benefits aredifficult to quantify, were included in the overall projectERR calculation. These include the investment costs of theFokum-Ras Imran road component, which would complementfacilities and operations already introduced under the IDA-supported Fisheries Is and III projects (Crs. 932- and 1274-YDR).

(iii) Prices. Prior to liberalization, prices for fish in southernYemen were determined by 'grades' rather than by individualfish species. While individual market prices now exist aswell, prices by grade are used for analysis purposes, as mostpricing continues to be done on this basis. For fresh fish,which includes super grade fish and category I, II, III fish,shark fins and lobster, the economic prices are based on FOBAden export prices of selected species for which exportmarkets exist. For sharks and sardines, which are nottradable, current financial prices adjusted by the SCF of 0.67have been used as economic prices. Details on the value offish prices in economic terms are given in Annex 16, Table 1.For some species with export potential, it is uncertain inwhich grade they belong. Therefore, to determine economicprices, about four species from each grade (Super, I, II andIII) have been selected, for which demand exists in majormarkets in Europe, the Middle East or Asia. Prices quoted forfrozen fish in those markets have been reduced by 15 percent,to reflect the lack of experience in ROY in supplying thoseareas, and averaged for each grade. For lobster and sharkfins, estimates of economic beach landing prices have beenbased on current FOB Aden prices. Estimated costs have beendeducted as relevant, for sea transport and insurance, harborhandling in Aden, freezing, storage and cleaning, and local

- 48 -

transport and icing, to arrive at an economic price for fishlanded on the beach (see Annex 16, Table 2).

(iv) Oparating Costs. Operating costs were derived by aggregatingthe operating costs of village facilities and new equipmentfrom each of the five cooperatives.

(v) labor. It is estimated that, with the project, laborrequirements would not change significantly over the presentsituation. The economic value of labor has been assumed atYD 2.85 per fishing day. Fisheries in ROY are traditional, inthe sense that there is limited economic mobility, except foryoung men, who used to seek work in the Gulf states, wherewage rates were much higher. Some fishermen work part timefor agriculture, where seasonal wage rates go up toYD 5.0/day, while others, particularly in the villages in theeast, can only work in certain fishing activities with wagerates of YD 2.5 to 3.0. Although wage rates on CFC vesselsare much higher and reflect a progressive incentive system, noother company currently employs such a system. Wage rates infisheries in northern Yemen are about YD 5.0-7.0 per day.Nevertheless, with the events in the Gulf causing a majormigration of Yemenis back to ROY, unemployment is high, andwage rates, in absolute terms, have declined. A shadow wagerate of YD 4.25/day has been assumed for all fishingoperations; this has been adjusted by the SCF of 0.67. Boatmaintenance and construction costs have been adjustedaccordingly.

7.10 Separate ERRs have been estimated for both the road (Annex 16,Table 3) and intermediate technology vessel (Annex 16, Table 4)components. They are 13 percent and 15 percent, respectively. Finally,based on the above assumptions, the overall ERR for the project isestimated at 31 percent over a 20-year period of analysis (Annex 16,Table 5).

7.11 Setsitivity analyvis carried out generates the following ERRvalues for deviatic'as from baseline project performance:

Base value 31XNet Incremental benefits down 20X 211Investment costs up 201 23XNet Incremental benefits lagging two years 16X

The ERR is sensitive to a reduction in catches or prices. A 20 percentdrop in catch value results in an ERR of 21 percent. For the overall ERRto drop to 12 percent, incremental project benefits (through lower pricesor catches) would need to drop by about 20 percent and total investmentcosts increase by about 30 percent. The likelihood of any of thesescenarios actually materializing, and thereby threatening the overallviabilLty of the proposed project, is extremely low. The analysis assumesconservative catch levels--given that available fish resources in the Gulfof Aden are presently under-exploited, and that overall efficiency of thefishing fleet would be significantly Improved under the project. It is

- 49 -

likely that catch levels projected in the analysis would actually besurpassed.

C. Cost Recove2r

7.12 Cost recovery arrangements for the proposed project would bealong the same lines as those agreed to with the Government under theThird Fisheries Development Project (Cr. 1274-YDR). The investmentsproposed for the five cooperatives are justified on the basis of increasedfish production, which directly benefits traditional fishermen in southernYemen. Investments which will eliminate the constraints that presentlylimit fish landings and composition, like chill rooms, ice plants, etc.are directly accountable for the projected increases in the fishermen'sincome. Consequently, costs of such investments should be recovered fromthose who directly benefit from them. Initial appraisal of this project,prior to unification, indicated that cooperatives would be able togenerate sufficient income to cover debt service requirements. The recentliberalization in fish marketing practices has, however, substantiallyaltered the role of cooperatives (see Chapter II) and affected the mannerin which they would now generate cash flow. Cash flow projections for thefive cooperatives that would benefit from the investments in the proposedvillage facilities have been prepared (Annex 17, Tables 1-5), using thefollowing assumptions: (i) 70 percent of the total fish catch would flowthrough the cooperatives, on which they would levy a fixed charge (3percent of fish value for social security and a 5 percent service charge -see para. 2.35); and (ii) revenues generated from services provided

(auction floors, ice, cold and chill stores, workshops, etc.), based onclearly defined fee schedules, would equal at least 3 percent of the valueof the fish catch flowing through the cooperatives. Based on theseassumptions, the analysis shows that four of the five cooperatives wouldbe able to generate sufficient funds to meet the estimated cost recoveryobligations. Diss/Al Hami is the only cooperative that would be unable tofully meet the cost recovery payments, as estimated in the analysis. Thisis prircipally the result of very high administrative overhead costs forits present and projected level of operations. A condition of crediteffectiveness would be the adoption of a financial restructuring plan forthe cooperatives that would include a reduction in administrativeoverheads.

7.13 It is clear that cooperatives serve valuable functions in thelocal communities (para. 2.36). It is thus important that they befinancially viable and sustainable over the long run, with net revenuesthat are adequate to ensure debt service coverage by each cooperative.The Government has already submitted a plan for the financialrestructuring of the cooperatives. Given the changes that have occurredin the sector over the past few months, it is necessary that the plan bereviewed and appropriate measures introduced. These are: (i) a reductionin the administrative expenses of the cooperatives; and (ii) establishmentof an adequate and viable fee schedule on the basis of which cooperativeswould levy charges for services provided (such as auction floor, ice, coldstores, repair facilities, services, etc.). Ratification by theGovernment of a restructuring plan for fisheries cooperatives,satisfactory to IDA, which includes both a reduction in cooperatives'

- so 5

administrative expenses and institution of an agreed fee schedule forservices provided by cooperatives, would be a condition of crediteffectiveness [para 8.02 (iii)I.

7.14 Assuming that administrative costs of the cooperatives arereduced and the scheduled service fees are lmplemented, analysis showsthat the costs of directly productive investment facilities can berecovered by the cooperatives. In some of the villages, certainimprovements and additions to the fisheries related infrastructure, suchas causeways, access roads, etc., need to be made to assure full benefitfrom the investment. No quantifiable benefits can be directly attributedto such infrastructure improvements. The costs involved, however, wouldbe recovered indirectly through the incremental tax revenues generated bythe project.

7.15 The direct recovery of project costs from the cooperatives wouldbe organized as follows. Once the MP general contractor has erected thefacilities, bank accour.ts of the beneficiary cooperatives would be debitedwith an amount equivalent to the costs of these facilities. Thecooperatives would then be required to authorize the bank to automaticallydeduct monthly debt service installments from their current account. Overa ten-year period, includlng one-year grace, the entire amount would berecovered, with interest equivalent to the long-term interest rate forlending to fisheries. Assurances were obtained during negotiations that acost recovery scheme would be made mandatory for the participatingbeneficiaries and that any future interest rate adjustments resulting,inter alia, from a joint Government-IDA review of the interest ratestructure would be applied to this project [para. 8.01(xii)I.

D. froje1a RLUak

7.16 Unification of the Two Yemen RepublIcs. The recent unificationof the two Yemen Republics and the resulting reorganization of variousinstitutions could slow down project implementation. However, theexistence of the PIU with many years of experience in supporting theimplementation of IDA projects should minimize this risk.

7.17 Sector Adljutment Process. The process of economic reform insouthern Yemen--price liberalization, increased private sectorinvolvement, credit expansion and focus on efficiency of sectoraloperations--may be slowed down by the political and social difficultiesexperienced in transition. However, it is already clear that tbGovernment has become increasingly willing to adjust, and that unificationhas significantly accelerated the process of liberalization of thefisheries sector.

7.18 Technical Assistance. An important risk concerns theoffectiveness of tochnical assistance in improving the management andfinancial performance of fisherios cooperatives. This risk would beminimized by ensuring that ROY selects high caliber specialists, and thatpoorly performing individuals be replaced quickly. Southern Yemen has agood record in handling technical assistance and has been assertive inhandling ineffective technical assistance personnel.

- 51 -

7.19 Delays in Project ImRlementation. Delays in construction andInadequate staffing could result in project cost overruns and shortages infunding. To reduce these risks, the project would provide for substantialtechnical assistance, both during construction and the initial phase ofthe facility's operations. IDA has provided to the Government a ProjectPreparation Facility advance of US$350,000 to meet pro-project start-upexpenses.

7.20 Onerating Efficiegny of Fisheries Cooperstives. The arrears onthe cooperatives' portfolio are substantial and perhaps not fullysupported by valuable assets. There are indications that many of thesearrears are symptons of more fundamental operating and managementproblems. Furthermore, all cooperatives were set up with limited equityand were mostly debt financed. IDA has requested the Government to takethe steps necessary to (i) recapitalize and (ii) improve the operatingefficiency of the cooperatives, in order to make them eligible for loansunder the project. Recent sector liberalizations that may substantiallyaffect cooperative cash flows accentuate the need for ameliorating theoperating efficiency of cooperatives. The Government has proposed a plan,acceptable to IDA, for the financial improvement of the fisheriescooperatives, but there may be delays in its actual implementation.Government ratification of this plan would be a condition of crediteffectiveness [para. 8.02(iii)J.

VIII. £gNR U&Q MANDIL UQMDNDATION

A. Aancesa

8.01 During negotiations, the following assurances were obtained fromthe Government:

(i) Details of arrangements to adjust the role of thecooperatives and measures to be taken to implement (a) owningof new boats, nets and engines by individual cooperativefishermen, (b) purchase by fishermen of their existingcooperative fishing boats through a hire-purchase scheme, and(c) financial arrangements for each cooperative to be put ona healthy financial footing, would be finalized and executedwith IDA approval (para. 2.35);

(ii) Government agreement to the detailed training program (para.3.27);

(iii) Government agreement on the terms of reference for specialistconsultants (para. 3.30);

(iv) The PIU would continue to be located in Aden and would bestrengthened through the local recruitment, by September 30,1991, of an accountant, a civil engineer and a procurementofficer (para. 3.32);

- 52 -

(v) The Special Account for project operations would be openedand maintained on terms and conditions satisfactory to IDA,and that the Special Account and SOEs would be auditedannually by an independent auditor acceptable to IDA(para. 4.19);

(vi) The existing interagency coordination committee under MFoverseeing the implementation of existing projects wouldcontinue to operate during the project period, and that itwould also include a representative from CACB for theproposed project (para. 5.02);

(vii) The contracts of the present project adviser and fisheriescooperative/credit expert recruited under the ongoingFisheries III project would be extended, and they would beassigned to the PIJ (para. 5.04);

(viii) Prior to the tendering of the construction contract,agreement would be obtained from the fisheries cooperativeson the village facilities to be financed under the projectand on their cost recovery arrangements (para. 5.07);

(ix) Semi-annual progress reports would be submitted by PIU to IDAnot later than two months following the end of each reportingperiod. For the interim review, MF would prepare a detailedreport and submit it to IDA not later than June 30, 1994.The Project Completion Report would be submitted to IDA notlater than six months after the credit closing date(para. 5.23);

(x) The accounting and audit procedures stipulated in para. 5.24would be followed, notably: (a) unaudited reports of CFC andthe project would be submitted to IDA not later than threemonths after the end of each fiscal year (December 31),(b) audited financial statement for CFC and the project fromindependent auditors would be submitted to IDA not later thannine months after the end of the fiscal year. Audits wouldinclude the Special Account and Statements of Expenditures(para. 5.24);

(xi) Government to ensure compliance with measures to protect theenvironment, as indicated in paras. 5.25-5.28; and

(xii) The Borrower shall ensure that the village facilities,including equipment and plastic boxes, shall be madeavailable to the participating fisheries cooperatives underarrangements satisfactory to IDA. These arrangoments wouldinclude the repayment of the cost of the above mentionedfacilities by these beneficiaries to the Borrower over aperiod of ten years, including one-year grace, and with thelong-term interest rate for lending to fisheries (presently7.0 percent p.a.). Any future interest rate adjustmentsresulting inter alia, from a joint Government-IDA review of

. 53 -

the interest rate structure would be applied to this projectas well (para. 7.15).

S. Condltions

8.02 Prior to IDA Credit effectiveness, the following would berequired:

(i) Effectiveness of formal grant/loan agreements for the projectrespectively with EEC and IFAD (para. 4.06);

(ii) Execution of a Special Fund Agreement between MF and CACB,satisfactory to IDA, outlining the obligations andresponsibilities of the relevant institutions, and the termsand conditions for the proposed Targeted Credit Scheme(para. 5.16); and

(iii) Government ratification of restructuring plan for fisheriescooperatives, including reduction in their administrativeexpenses and the institution of an agreed fee schedule forthe productive services now being provided to fishermen andtraders, by cooperatives, satisfactory to IDA (paras. 7.13and 7.20).

C. Rscommendat&U

8.03 Subject to the conditions set out above being met, the proposedproject would be suitable for an IDA Credit of SDRs 9.4 million (US$13.2million equivalent) on standard terms with 40 years maturity. TheBorrower would be the Government of the Republic of Yemen.

* 54 -

Table 1

EPUBLIC OF YIEMENFMOI= FPSHKRIES DEVELOPMENT PROJMCT

Total Eish landings in ex-PDRY

1984 1965 1986 198? 1988 1989.... .... . .... .... . .... ..... ..... ..... ..

Nunber of Vossets.............

Cooperatives 915 848 794 851 84a" 84Sovfet/PORY Joint Venture 9 9 14 IS 15 6Coastal Fishing Corporation (CFC) 134 136 140 140 140 140Licenced Vessels 5 S 5 5 5 sYeweni Fish Corporation 13 12 12 10 10 SPrivate Fishen 1_J 88 788 78 1,1SO 1,1SO 1,1SO

Fish Landings (Tons)

Cooperatives 22,766 24,290 19,5S7 26,9fO 28,107 29,596Soviet/PORY Joint Venture 3,191 3,612 S,160 4,406 2,210 3,083Coastal Fishing Corporation tCFC) 1.058 1,424 1,378 1,500 1,575 1,397Lfcenced Vessels 36,587 33,297 43,557 35,936 29,292 27,993Yemeni Fish Corporation 5,S2S 7,495 6,5d4 5,700 4,390 4,109Private Fishermn Ij 15,000 1S,000 1S,000 15,000 11,400 15,000

, ................. ... .......... ....... ........... ....... ........... .......

Total Production 84,127 85,118 91,216 69,492 76,974 81,178

Fish Landings (2)

cooperatives 27 29 21 30 37 36SovietiPORY Joint Venture 4 4 6 S 3 4Coastal Fishing Corporation (CFC) 1 2 2 2 2 2Licenced Vessels 43 39 48 40 38 34Ymmeni Fish Corporation 7 9 7 6 6 SPrivate Fishermen 1/ 18 18 16 17 1S 18

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

Total Production 100 100 100 100 100 100

fish Landings/Vessel (Tons)...........................

Cooperatives 25 29 25 32 33 35Soviet/PokY Joint venture 355 401 369 294 147 514Coastal Fishing Corporation (CFC) 8 10 10 11 11 10Licenced Vessels 7,317 6, 69 8,711 7,18? 5,858 5,599Ye eni Fish Corporation 425 625 547 570 439 822Private Fishrimen t/ 19 19 19 13 10 13

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

1/ Estimte.

Source: Ninistry of Fish Wealth

FILE MNE: TOTLANlI03/29/91

REPUBLIC OF YEMENFOURTH FISHERIES DEVELOPMENT PROJECT

Fish Landings in ex-YAR(Mt)

Species 1983 1984 1985 1986 1987 1988

Freshwater fishes nei Osteichthyes 0 0 0 0 0 0Indian halibut Psettodes erumei 339 329 223 223FSea Catfishes nei Ariidae 79 57 548 486 486FDemersai Percomporphs nei Perciformes 1956 2840 1890 1543 2330 2330FGroupers Seabasses nei Serranidae 951 550 1239 811 974 974FSnappers Jobfishes nae Lubandae 678 903 876 849 849FThreadfin monocie dwartbreams Nemipteridae 380 1286 1336 936 936FGrunts Sweetlips etc. nei Naemulidae 168 153 39 39F

(-Pomadasyidae)Emperors(-Scavengers) Lethrinidae 1902 1759 2268 2454 3008 3008FBarracudas Sphyraena spp 519 1173 1386 1052 1245 124SFMullets nei Mugllidae 193 440 42 416 118 118FPelagic percomorphs nei Perciformes 43 183 966 570 362 362FJack and horse mackerels nei Trachurus spp 1227 672 1365 1424 823 823FJack Cravalles nei Caranx spp 973 476 420 920 175 175FClupeoids nei Clupeodel 3013 - - - - -Narrow barred Spanish Mackerei Scomberomorus 2788 3115 2351 2673 2782 2273

commersonKawakawa Euthynnus affinins 272 366 378 438 301 272Longrail tuna Thunnus tonggol 724 678 840 307 420 414Indlan mackerei Rastrelliger 3094 4214 2246 4829 5848 5848F

KangurtaSkates and rys.nei Rajlformes 19 126 - -Sharks rays. skates etc. Elasmobranchu 779 448 1281 1030 973 973FPenaeus shrimps nei Penaeus spp 17 239 320 432 361 361F

Total 18939 18170 18532 22241 22253 21709F

F - ForecastSource: FAO

>'"

_ _~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

- 56 *

Table 3REPJ!LTC

'OTURTH 7TSHzIK DDELPIf'?4 1OI=

Zimb.r{es C~ogperattvel Zroduction Ani gx.PDR.Y

Name of Cooperative 1983 1984 1985 ¶986 I98? 1988................... .......... ..... ........ .... .... . .... ........ ..... ..... ..... ..

. ...... ........ Tonm ......... '.'

Aden Gulf 1,861 1,395 1,if. 983 902 762

Socotra 432 665 S23 853 621 1,001

Ras Al Ara 1,185 981 1,749 782 1.009 SOS

SIuqre 520 494 631 421 559 924

A t 8andar 329 298 292 17n 204 435

Sir ALl 1,012 1,490 1,746 1,814 2,127 1.439

Mukatta 1,854 1,674 1,669 1,829 1,86S 1,697

Shihr 7,079 7,81S 8,S32 5,665 8,500 7,092

Diss/Al Hii 1,200 1,260 941 1,420 2,783 2,412

Queseyr 1,973 1,933 2,067 2,060 2,672 2,566

Sayhut 806 1,622 1,290 644 1,573 1,374

Qishin 907 829 1,S84 1,110 1,461 1,318

Al Gheida 1,996 2,310 1,771 1,804 2,676 6,582

Total 21,154 22,766 24,290 19,5S7 26,952 28,107an** 02*2 .$-t-.- n|w-x *"*-.

Notes: (1) Ooes not fnclude private fishermen's prodaction.(2) Drop in 1986 due to temporary civil disturbnces.(3) Oreakdown of production by cooperatives is not wailabto for 1989 nd 1990.

Total production by the cooperatives for 1989 Is estimated at 296400 tons,wnd at 27300 tons for 1990.

Source: Ministry of Fish Wealth

FILE ANME: COOPPROD03/29/91

* 57 *

Table 4

POURS1I FtSEtSD VE ,« 6

vommw;xa _IPK mo c'Wumber ge gpgreati3M and PrIVae. Ltah$riuan

Fish Landis PDRY i-

mumber of Fisherman Istimted Fish Landings (tns)................, ....... 0............ ...........................

Coop. Coop.Governorace Cooperative Fishfing Vitlages eme"ers Privsta Total mbers Private TotWl

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

t. AO.. Adbn ¢ulf Se rS/fokum Z87 881 1,168 762 3,100 3.8UZImran/Ras IwanKawe

Socotra l/ Hadifba 114 114 1,001 1,001Katlansie

St. LANIJ Ras At Ara Kher Umeira 268 21 289 505 70 5t7

ItIl ABYAN Shoura Sheikh Abdulta 183 45 228 924 340 1,264Ansahatamaquatin

Ahwar MaqutAin Zogir 85 85 435 435(At Bandar) Masan Setaid

-/. SNASWAR Sir Atl Azqa/Nawra 236 29 265 1,439 170 1,609Getbed/libetaAtnechne/AtaynCuata/B*tthaf

V. NADRAMAUT NuIcL&a Surun/Rukeb 247 500 747 1,69? 2,251 3,908Shuhelv

Shihr Shihr 450 m 1,222 .C92 3,360 10,452

Of s/AL Nami Al Hamu/Al Gam 349 191 540 2,412 456 2.84

uasesyr Reida 369 224 593 2,566 786 3.352Muse inah

VI. AL KUAMMA Ssehut Algarbi a/atr 280 SO 360 1,374 225 1,599Shargi a/Runut

Olshin Litbu/Maklb 279 279 1,318 1,318Maswe1un

Al Gheidr N 1SNhtwuTwtu 36 111 473 6,5S2 600 7.182Narut/ahaififNoak/YerubNarse/AL faidamiAL FatkOnw*ut

TOTAL 3,511 2,854 ,5 28,10? 11,358 .465

1J f ogratory fishermen landing fish In Gov rnorates IV, V and Vt.Source: Ninistry of Fish Wedt%h for Cooperative Sector; nfSsion estiates f.'r private sector.

fILE WAMEs LANOStAT03/31/91

* 56 .

Tabu S!KITleC 0 VUI

0~~~~~~~~~V~~1 n_vihmTMSC

1962 1913 1986 198 18 17 1966 19"*... ... .. . ...C *e .e.. .... C... ... e C....

............... ... ..... .... ................... ...... .... ..... .... o ...... .... ...... .... .. ...,,,. ---- CC ***** *-*-*-'''''

Cuttt*fsh 1.655 1,397 2."0 3,956 4.192 1,7r 1,7'" 29Sqwid 465 43 270 32 6 '4? 32Deep See I.str 4 66 2 116M 136 3 1V 71Rock Lobser 60 116 10 221 270 313 m 154shrilp 242 44 34 236 29 24 6 216Shark l1s 105 5 33 5 40 64 7 31se cucumber 2 2 a 5 6 SOther fPth 1.206 672 1,13 1,032 946 2.605 1,494 1,613Cwad fIsh 7 14 370

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

TtotL 3,981 2,65 *,UO 5638 5,." 5576 3.,62 5,440

Cuttef sh 3,3206 a.l9 4.4? 7,462 Slam1 2.n9 3.652 10,55Sqid 29 3 167 20 7 166 39 25Owp S LobsIer 27n 525 206 414 410 931 663 659Rock Lotbstr 688 1.419 1,262 2,696 3,62 5.141 4.004 2,64Shrfop 278 s5 644 25 73 954 "5 1235Shark fIn 1t,02 449 260 "0 340 1,065 1,096 5Jrse CuAsr t t 13 0 1s 35 46 43Other Fish 219 116 2,412 167 230 5s0 34 69Csd flsh 0 0 0 a 0 15 26 1,619

......._....................... ..... .......... .... .......... ....... .......... ....... .......... .......

TotaL 6,076 5.578 9,438 11,431 10.513 11.436 10,64 16.056---0A-- M- ma mmm"M se- wsm -

....... '-'-*'''''.''''''''''....... U$W T ............. ...............

Cuttt*fIsh 1,7 1,696 1,5M 1,94 1,207 1,601 2.14 3.571Spid 63 860 619 6 67 1,204 71

eo See Lobste 5,970 6,105 6.436 3,0 2 3,983 6.795 9.2URock tdLte 11,"6 12,233 11,670 12,206 13,610 16,415 14,50? 17,429Shcri 1,149 1,267 1,M 1,06? 2,793 3.614 6,35 S,716Sr fis 10,495 5,164 7.69 6,17 9,000 12,97 15, 6 18.935Se COwtr 5,50O 6,500 7.500 7,000 7.46? $,o0Othsr fsh 1n 20 2,074 142 243 19 25? 42Cww fshI 2,143 *1,6 4,37

....... ;. ... ....... .... ....... ...... .* .....

AVer ,526 1,96 1,"0 2.0a 1,92 2,0 2.613 3,319

.............. ... ... .................e

Surces fnlestay of Fish WaWb

ft Ns WA: ITATI03/31/91

- 59 -

Table 1

REPUBLIC OF MENFOU= F! SERIES DEVELPMENT PROEC

Nationial Corigorati2n for Fish Marketinit

Historical Income Statements(YD ?.000)

Year: 1981 1982 1983 1984 1985 1986 1987 1988 1989.... .... . .... .... . .... ..... .... . .... .... .... . .... .... ...... ................... ..

Quantity of Fish Sold (Tons) 8,882 8,42? 8,170 7,490 8,754 8.161 9,525 9.926 8,661

Fish Sates 5,409 6,343 6,103 6,n1 6,681 6,966 10,356 8,890 6.503Other Income 405 180 ¶8S 342 '1,148 291 216 271 233

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

Totat Income 5,814 6,523 6,268 7,063 7,829 7,277 10,572 9,161 6,736,.......... ....... ........... ....... ........... ....... ........... ....... ........... ... .................. ... ........... .

Cost of Fish Sold 3,599 3,914 3,812 4,97S 4,985 5,758 7,829 6,371 4,22S

Trade Margin 2,215 2,609 2,476 2,088 2.844 1,S19 2,743 2,790 2.511

Operating Expenses

Personnel Costs 988 1.001 1,049 982 1,005 939 988 1,216 886Generat & Ackinistrative Expenses 625 724 606 662 781 879 1,070 706 77SPurchase Costs 143 176 215 202 243 263 293 284 233Sates & Distribution Expenses 98 76 71 82 66Sales Discounts 164 198 192 289 340 242 525 1uaste, Spoilege 54 13 4 439 288Other Expenses 11 3 38 1,205 125 96 96 92

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

Total Operating Expenses 2,077 2,199 2,140 2,275 3,640 2,448 2,972 2,742 2,274

Previous Year's Income 5 2 71 6 85Previous Year's Expenses 278 37 102 36 14

,.......... ....... ........... ....... ........... ....... ........... ....... .......... ...................... ...............

Cash FLoW (135) 410 301 (218) (826) (943) (229) 133 237

Depreciation 667 731 602 535 653 739 884 871 900....... .......... ....... ........... ....... ........... ....... ........... ..... ...... ...... ... .................. ...

Income (Loss) Before Taxes (802) (321) (301) (753) (1,479) (1,682) (1,113) (738) (663)33umn V=jM swa ma uns,s sUzaa= un suum naU"Us 0=U = u sa aun*== usuagau

.---------------------------- YD/Ton .............

Average Sates Price 609 753 747 897 763 856 1,087 896 751Average Cost of Sates 405 464 467 664 569 706 822 642 488

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

Gross margin 204 288 280 233 194 1S0 265 254 263

Operating Expenses 234 261 262 304 416 300 312 276 263Depreciation 75 8? 74 71 75 91 93 88 104

Income (Loss) 8efore Taxes (90) (38) (37) (101) (169) (206) (117) (74) (77)

FILE NANE: NCFM105/20/91

- 60 -

AMNEX2Table 2

REPUMLIC OF X=4EFOURT FISHERIES MEEOPMEN PROJEC

Naional Ggorgation for Hsh IMarketinu

Historical Balance Sheets(YD '000)

Year: 19l5 19 1967 98 190,..... ._. .... .... ..... ....

ASSETS

Cumnt Assets.............. ...............

Cash ad Sewrities 35 49 75 2i sswk AccoUnts 16 122 508 242 392Acc4mts ReceIvabte 1,31S 1.2l 1821 1,089 1.123Nfsellteos Acconts Recivable 33 9? 111other Recelvabtes 1,09 a4 T41 107 104Accrued Receivables Goods in Transit 174 205 U84 654 642Materilts 855 758 767 1,171 1,113fish Inventory 551 5S2 567 738 932

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

Totat Current Assets 176 3,908 4,779 4,29? 4,S99..... : ....... ....... ....... .......

Fixed A8ses............

gros fixed Assets 9,876 10,028 14,623 15.277 15,292

Less: Acctmuated DepWeciation 3,017 3,579 4,028 4,942 5,83=........................ .......... ....... ............

Not fixed Assts 6,859 6,449 10.595 10,335 9,46

Total Asets 11,03 1tO,357 1534 14,62 14,05

LIABILITIES AD EQUITY,......................

Current Liablities,...................

Asuets Payanbe 2,73 2,909 3,825 2,317 1,837rt-term Lt a8s 697 1,069 1,1S3 1,46 1,89

oeposits/uareantees I BeDigcwts/1oeution Staf Satlries 20 1BCOt Accourns P*abte 15? s8 5S4 665 749Accrwd Accuwts Pyable 35S 295

.. * ........ ....... ....................... ..........

total Cret Liabiitfs 3,942 4,830 5,60 4,446 4,478......... .. ........... .......... ....... .......... .......

Equity

Capitat ad Reserves 11,320 1,447 16,756 18,326 18,326R1etined Earninp (4,22?) (5,9"0) (7,012) (8,136) (6,748)

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

otl Equty 7093 5,477 9.744 10,168 9.578...... ....... ....... .......... ....... .....................

Toul Libftitn nd E ty 11,0I5 10,3S? 15.37 14,634 14,06

Current Ratio 1.1 0.8 0.8 1.0 1.0lack Rtio 0.7 0.5 0.6 0.4 0.4

Acoenws Reeivable (Days) 79 7? 64 30 32Acsot Payablate(a 238 o) 209 171 223

Fish lawentry too") 40 35 26 43 81

FIL I: os/W91

- 61 *

Table 1REPUL O

M= FIj&t5BE-

Coogaratin and Agriculeure CrAdit BankHistorical tngm Seatm=na

(YR1s 'I000)

1985 196 19T8 1988 1989

.. *... ~ ~ ~ ~ ~ ~ ~ ~ ~ .. .. ... ... ..

SanIcing 54,756 63,046 88831 7.321 L,396Tradfig t,54 7,530 654 ,.668 8,424

Total tncom 72,296 70,576 89.485 80,989 72,820........ ~ ~ ~ ~ ~ ~ ~ ~ .. ; .... . ;; WiEipet noms

aanking 40,n7 52.669 61,192 67,031 ?1,761trading 2,M In 269 6.992 1,763

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

total 5xPmes 43,016 52,8L4 61,461 74,023 73,524

Prof ftCLoss) B*for* Provisions........................

Banking 14,032 10.37? 27,639 5,290 (7.365)Trairng 15,24S 7.355 385 1,676 6,661

Total Prof it Bft Prov iOons 29,280 ii;n 28.024 6,96 (704)

Provisions..........

Doubtul Accounts 9.947 20,061 7,802 0Oporecitfan 2,153 3,518 3.633 3,4?8Other 2.677 689 689 689

Total Provisinm 19,18 1 24,268 12,124 4,16

N*t tincom (LOSS) 10,096 2,.55 3.736 (5,1s5) (4,871)

FILS VWME: CACt3

*62AM= Tabl* 2

REPIILc OFPOUfTh !RUER DVKIIWEqT PRoJrc?

Cooareta i= Au =teuTur Cr1eAi13*

(ills '000)

As of ofter 31S 1985 196 1967 198 1989.... .... ......... ....

AISSETS

Cub In land and at Sank 129.150 254,202 255.677 24,820 184,368

LOI an Advances..................

wrt-tter Loan 40,11? 41,996 49.7, 52,336 S3,635edhulmtwre Loao 307,013 331.949 310.289 312.669 330.,

Long-ta LoM 4 12.017 14.005 t5,000 20,9-8Loans to Coaaewtivs 4,947 2,300 11.321 12,168 7,64Ote Advanues 3.713 3,431 2.766 2,031

Toutl Loan 352,121 39 ',97 3U,.974 394,93 415,004Less: Ptovtsiam 33,486 43,42 63,493 71,295 71,m

.... ......... ..... -*..... ....... .......... .......

tet Loom *nd AdvawaS 3186,35 348,545 325,481 323,6LC 343,709

GtU R oivsblee 58,286 J,On 101.819 121.641 125,59intentorite 25,350 5.1a3 3,63 66,58 51.054investments 24,523 24,507 24.507 24,507 27.975fixed Assts 9,692 25,160 2V,796 26.153 25.479Projects tndert ptelematatian 2.4L7 2,403 1.534 3.406 5,2656faremd LaTpsa" 354 1,379 690 266

Totat Assets 598,437 747,073 741,866 811,409 763,574

UZASILITS AND MStrl_..................................

Depoits

Curr.tt Accouts 21,M0 120,784 30,432 37.72 51,516Current Accounts of CsOWatt ves 89,502 52,484 113,105 145,319 91.275Sav4ing Accounts 585 623 5so 32S 330

Totat De"osits 111,967 17,891 144,245 183.368 143,121

Acxwints and giltt Pavabte 41,072 46,72 40,672 63.92t 109,250Current Natwities of oreung 0 0 3,951 4,"6 0,147Psmwiu I duities 7,045 538 1.451 2.410 1,744Oth PrfvsIas 0 0 0 5,219 6,7M

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

Local Loa 9l,75 173,43 1U¶9O 156,075 100,000foesn Loan 114,784 118,755 129,56 149,315 163,745Governt f frwi*L Svpwt 3.943 1S,432 20,64 47,58? 12.21.?

Os ....... .......... * ......... ..... .....-..-

Total l toe "m 217,48 3,60 333,391 35,97 25,991Loss C41et Nestrtt 3,f5l 4,96 8,147

... .... ....... ...... ... ...* .......

Tot Nt 1e rorws 217,488 307,0 329,140 347.961 287.8

Tott LiIftfes 377,57 52.21 519,759 07,900 3,661

Wtty

o" Captlt 1W,802 19,802 196,0 198,602 a,hlV*a bves 9,490 9.40 9,"8 9,66 9,1afed Earns 12.575 10,060 13,439 (5,19) (10,030)

.. ... ..... ....... 0 ....... 0 .... ...

Toalt Wity 2 ,? 216,35 t22,1? s,5 4,712

Tofta Lfabi11ftf5 VW W ty 5" t43 747,073 741,64 811,409 743.574

Comtf t Lfabtitfe 7,830 26,75 5,250 8,73 36,

FIL VMIIS CA S3

-63 4

REPUBLIC OF YEMEN

FOURTM El1RR DEELPMnT PROJECT

Financial Results of geh CooiperativeA

Financial Ratios 2_/gstimated Cash Flow 1J Prof it (LOSS) ...

................................ ,..,...-....-....................... C urrent Quick LT Debt/

1986 1987 t988 1989 t1 1987 1988 1989 Ratio Ratio tquity....~~~~~- - .... . .... .... . ..... ....... .... ..... .... ........ ... ........ ... ... .................. ...

Coopwatives ............ YO #ODQ ............ ............. o ' ............LocatedIn Project Area:

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

Mukalla 40.5 39.5 60.0 59.0 3.1 (11.0) 8.2 24.S 1.4 0.8 0.0

Shfhr 51.3 89.2 132.8 88.1 14.1 39.7 78.5 23.5 2.4 1.5 0.2

Diss/Al Mai 48.0 103.8 71.6 4.8 58.7 36.5 1.9 1.3 10.2

Ouas.r 61.3 8S.2 171.0 140.4 (4.2) 25.7 102.1 S9.S 3.2 2.0 0.5

saybut 13.8 38.6 2.8 67.8 (5.7) 16.0 (19.7) 11.4 1.2 1.0 2.5

cooperativeslocated in Restof the Country:

Al Sande (3.1) 15.7 14.2 (6.8) 12.0 8.6 0.5 0.3 0.0

Al GCidha 56.3 14.7 41.S 23.0 (17.9) 7.5 1.0 0.6 0.0

Sir Alf 18.0 29.3 2.4 13.9 24.7 (1.2) 2.? 2.2 0.4

Gulf of Aden 8.5 10.5 62.4 (37.8) (33.1) (42.1) 2.3 1.7 0.2

Ras Al Arm N/A N/A N/A (2.6) (0.3) (0.6) 3.6 2.8 0.0

Of sn (8.8) 2.4 3.7 (22.6) (8.7) (6.?) 0.5 0.4 0.0

Socotre 23.5 (20.2) 47.0 8.8 (32.1) (28.7) 1.1 1.0 1.1

Sbuqr 12.2 (1.4) 16.8 15.4 (¶.t1) (9.3) 5.6 4.6 1.2 1.0 M"e. Eq.

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

TOTAL 217.2 393.1 631.6 (57.9) 51.4 144.8

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

IJ Cah ftow 8 Profit (Lo") # Oeprefatf on. Deprecfation Includes onl' boats, eVines end gears.Deprecfatfon for bufldfngs and vehicles, a relatively smller cost, s not roWted as a erate espn. item.

2J For virtuatly all th coopatives, ratios aer based on 1968 finmnct accounts.

Sam: Ministry of Ffsh lith

FILE KMEs COOPSUI

03/29/9t

- 64 -

EMR= FSIRISDRRONN PROJCTW

Proposod F eria Factiftaa t Sumiasy)

Unit ofMeasure- Oiss/

Location: ment Mukalta Shihr At Rami Al CGrn Guaseyr Musainah Sayhut Aden

CIVIL WORKS...............

Fish teceiving Shed m2 200 225 114 1S0 S32Cooperative Office .2 106 100Engine Uorkshop m2 40 25 110 110 25Boat Repair Area m2 160 120 160 160 160Vehicle Shade m2 207Staff mousing '2 110Access Road Ka 4.5 1/ 1.75Surfacing .2 4,800Fencing s 370

enerator House X X X XElectrical Installation X X X X X XFresh Water Supply X X X X XSea Water Supply X XSewerage X X X X X XFish Market Rehabilitation XRousing for Fishermen Unit 6 3JSoat Repair Facilities

and Workshop XFiberglass Con-struction Yard CCFC) . 600

EGUMPMENT

lee Plant Tons 15Ice Store Tons 5 5 30 10Chilt Store Tons 5 10 5 5 20Generator KVA 2x50 Xo 2_ x 90 X2_

............... 4..............................

IJ t nrovamnt Is only for 4.5 K, stutfng trfm Al ent towads ew min Wukallt-Ss$w nredtotal lenth of this road to about .8 Kmu.

2J Capacfty to be determined by am conutants.

3/ Six hewing blocs, each for about 65 fltterwn.

FILE Ms VILISMI

04/01/91

RUgLgC OF YEKE1NFOURTH FISHERIES DEVEWPIEN PRJC

Proposed Training Program

No. of No. ofNber No. of Cote Trile toCos.of Coope People/ No. of owing During wbere Courses Duratloncore Course ContenA ratives Cooperatfve Trainees ProJect ProJect Vould be Given DaysTraining for Coopetative ................................ ..... . ... ....... .. -.-.-.-.. ........

... ... _..........

1. InItial Training...............

Senior _ agmnt coop. Orgmnization & atnagpent 13 2 26 2 52 Coop. Institute, Adbn 30Stat. *nd Plan. OffiCe"s Statistics nd Pmnning Acounts 13 2 26 2 52 Coqp. institute, Aden 60Accounts Office# Accounting 13 2 26 2 52 Coop. Institute. Aden 60Cooperative II trs Principles of Cooperation & Credit S0 50 30 1,500 Locnt Coop. office 72. Refresher Curses

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

Drivers Fish Nandhrig and Trasnport 10 10 13 130 Local Coop. Office 3Stt. t,nd Plan. Off1cers Statistics tnd olaming Ae'tt 13 2 26 2 52 Coop. Institute, Adn 14Accouts Officers Accounting 13 2 26 2 S2 Coop. Institute, den 14Training for PocessIng

Facilitfes Staff:.......................

1. Initiat Training...............

lef riggratimn Nech i-es Refrigeratfon 20 20 1 20 fMSC Aden 30Vebicle tendbfnes Rotor Vehicle Repairs 20 20 1 20 FDtC, Aden 30farine Engine sehanica I6oard and Outboard Eng.Repefrs 20 20 1 20 FNDC, Aden 30Cold tes supervisors fieb Nandling and Storag 10 10 1 10 fDC, Aden 30Skippsrs, fidham. Post-barvest Care of Cotch 50 S0 20 1,000 Louct Coop. Office 32. Refnrea Coses

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

Orives Fisb handinlg end Trasport 10 10 6 60 Local Coop. Off ice 2Refetion e ics Refritin 20 20 1 20 fROC, Aden 3Vehiceo N11_niCs Ro to r V ehicle Repairs 20 20 1 20 MC, Ade 3lrin Enbwin 0echwfcs Ished and t Eng.1epeis 20 20 1 20 VISC, Aden .3Cold Row S*ervisors fish Ndling ad Storgte 10 10 1 10 fISC, Aden 3Trainine of l Achitects Training In Navat Architecture 2 2 1 2 Naval Architecture 4 yrs.......................... S Schools AbroadNM Scientists Iraining In mlrin resource _sessment 3 3 3 3 Schools Abroad I vest................

Stud Tows Cooperatives in Other Countries 2 2 1 2 Relevnt Countries 1 sonth

TOTAL 92 309

FILE NAI: TRtAINING

03/2091/

* 66 -

AMU7Page 1 of 3

RK?UJI=C OF YEMENFOUw uII ; IMUY D UmEN PROmICT

Develonment o omen in Fishing Communities

Kev Issues

1. To alleviate the social, cultural and economic constraintsencountered by women in ROY, the Government's existing development plansand programs should be expanded and adjusted in their design andimplementation, to enable women to become self reliant participants in thedevelopment process. Furthermore, it is important to involve theconcerned ministries and institutions, training agencies and women'sorganizations throughout the planning and implementation of the program;without this involvement, the proposed program could suffer from lack oftechnical assistance and institutional support.

2. The low educational standards of women in ROY's fishingcommunities have a negative effect on information transfer and acceptanceof new technologies. Women in ROY's fishing communities, however, do notperceive basic education (literacy) as a basic need. Labor saving devicesand practical vocational training are considered more desirable, sincethey render immediate results. Hence, to obtain a substantialparticipation of women in the proposed program, it is imperative to tailoradult education courses to women's immediate needs.

3. Social and educational programs targeted at women in fishingcommunities should be flexible in time and location. Women are oftenunable to attend courses outside their home villages, not only because ofsocio-cultural constraints against traveling outside their communities,but also duc. to their commitment to agricultural and household duties,which cannot be left unattended. Hence, community development centers orschools seem to be acceptable and sultable locations for women's meetings.

PROPOSED WOMEN' S DEVELOPMEN PROGRAM

Objective

4. The main objective of the program would be to improve thepotentlal of women in fishing villages in the Hadrasawt Governorate, toenable them to participate in the overall development of their community.

Scone of the Program

S. The pr9gram's objective would be achieved through theimplementation of a comprehenslve, needs orionted program. The programwould be carried out in additLon to and in cooperation with exlstlngextenilon activities and ongoLng programs, ln tho fields of: fisheriesdevelopment, child care, primary health, home economics, home industries,animal husbandry and farming.

* 67 -

ANNZ 7Pasge 2 of 3

Outli1n of th Progrm

6. The program would consist of:

(a) A functional literacy/numeracy and non-formal adulteducatlon program:

(i) literacy/numeracy;(iL) child care, primary health, home economics;($ii) basics of fish processlng, farming, animal husbandry;(iv) social topics (analysis of problems, needs,

priorities, activities)

(b) Vocational training:(i) fish processing (fish filleting, packing, storage,)and

marketing;(ii) animal husbandry;(iii) farming;(iv) small scale enterprises/marketlng;(v) clothing production;(vi) administrative services;

(c) Rehabilitation/construction of community developmentcenters;

(d) Pilot credit scheme for women.

Dfetailed Description of the Program

7. The main aim of the program is to uplift the educational level ofrural women and to create opportunlties for women to acquire the necessaryknowledge and skills. The existing communities development centers in thevillages would be improved and some new facilities constructed. Theinstructors, selected preferably from the villages, would receiveorientation training to: develop need oriented curricula; improve theirteaching skills; acquaint them with a participatory approach in thecourses; and organize the community development centers.

8. Assistance would also be provided to the expansion of the sewingcooperative of Mukalla, which was established in 1974. Membership in thecooperative is principally open to women, whether they prefer to work athome or in the cooperative's two shops. Under the proposed program,improvements would be made to the cooperatlve's facilities and sewingmachines would be imported to help create employment opportunities forwomen ln the project area. The management of the cooperative is alsowilling to open branches in the Hadramawt governorate.

9. The proposed program would also encourage women's participation inflsh processing. There is a lack of skills and knowledge within thefLsheries cooperatives and the NatLonal Corporation for Fish Marketing(NCF)) on matters such as: fLsh handling, processing, quality control,

* 68 -

ANEX 7Page 3 of 3

packaging. Training of women in fish processing skills, through pilotactivities in the fishing villages, would improve the fish processing andmarketing capacity of the fisheries cooperatives.

10. Income earning activities for women would require in most instancessome initial start-up capital. A pilot credit program for women would beintroduced by the CACB, from its own resources. The pilot credit would be

introduced by CACB with the help of the Credit Adviser, assisted by afemale National Extension Coordinator, both attached to the ProjectImplementation Unit (PIU). The loans to women would be mainly channeledthrough the fisheries cooperatives and guaranteed by the Ministry ofFisheries. L ans to women not belonging to the fisheries cooperativeswould be secured through group guarantees. Sessions would be organized byCACB, with the assistance of PIU, in fishing villages to acquaint women onthe nature of credit available and the responsibilities of the borrowersof such credit. Training would also be provided by the Credit Advisor tothe female extension workers of the PIU on: loan processing; credit riskassessment; and loan collection.

- 69 -AUL

Suimarv oe fo, eal ongtaeane.

total tWA tFA tiC......... * ...... ............. ........ .............

--......... *6vS:affi : . h.-. . '.'''

INItSTRY OF FISHERIES......... ............... .....

fisheries Sector Advisor 24 24Marine Fisheries Consultants 18 18

Subtotal 42 42SUPPOlT FOR FISHERY COOtPtATIVES/CEOtT.......................................

fisheries Cooperative/Credit Expert 30 30

FISH STOCK MANAGEMENT.....................

Stock Assessmnet Specialist so 30Consultants 12 12Envirorewntal Scientists 8 a

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

SubtOtat 50 so4£VELOPYFNT OF WOMEN IN FtSHERltS..............................

Expatrfate Coordinator 24 24

PROJECT OESIGN, TECHNICAL ASSISTANCE

Project Coordinator 60 12 48Navat Archftect: Soat Design 12 12Navel Architect: goat Procurement 3 3Fishing Gear Consultant 6 6ConsuLting Engineers: Design 24 24Consulting Enginers: Contr. Supe¶. 129 129NCfP: Mnagement Advisor 18 18Auditors for NCFM, CFC and PIU 18 18

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

Subtotal 270 30 240

TOTAL 416 60 24 332

FILE MAKE: TECHASSI

03/31/91

- 70 -ANEX 9

Page 1 of 5

FOURTH FIS6RIKS =I&P2NENT nPR=JXCT

Terms of Reference for Project's MULn Tecbnical Advisers

Project Adviser (6Q staffmonths

(1) Monitor the construction of civil works and the procurement andinstallation of equipment.

(2) Coordinate the procurement of material for building boats,engines, fishing gear, trucks and other equipment, incooperation with Coastal Fisheries Corporation (CFC), and theMinistry of Fisheries (MF).

(3) Together with the fisheries cooperative/credit consultant,monitor closely the selling arrangements agreed to with regardto sale of outboard engines and fishing gear to fishermen.

(4) Supervise the work of the fisheries credit consultant in: (i)the assessment of applications for credit from fishermen; and(ii) in ensuring that they subsequently meet their financialobligatiens.

(5) Oversee PIU's work in the coordination of the activities of theadult education, vocational training and women developmentcomponent.

(6) Supervise the implementation of the training program proposedunder the project.

(7) Supervise: (i) the maintenance of the project's accounts; (ii)the preparation of progress reports to IDA , other financinginstitutions and relevant Government departments; (iii) arrangefor auditing of all project accounts.

Flsheries Coogerative/Credit Consultant (30 staffmonthbs

(1) Review the financial accounts and operations of eachcooperative and prepare a detailed restructuring plan,including projected cash flows, with a view to ensuringfinancially sound operations.

(2) Within the context of the above, review the bases used indetermining the prices for the services (such as sale of ice,cold store space, chilled store space, workshop services,anchor fees, etc.) which the cooperatives offer, and for whichfishermen/traders pay a price. Make necessary recommendations,

- 71 -

Page 2 of 5

to ensure that prices charged fully cover operating andoverhead costs and provide the cooperatives with a reasonablemargin.

(3) Analyze and make proposals on how CACB, MF, individualfisheries cooperatives, private fishermen and women engaged inthe fisheries sector would work together to ensure partnershipand more active coordination in fishery lending.

(4) Advise and assist MF and CACB in preparing the detailed termsand conditions and guidelines for operations of the proposedfishery credit scheme, in the form of a loan manual, thatspecifies in detail, among other things, the loan application,appraisal, approval, disbursement supervision and collectionprocedures.

(5) Monitor the implementation of the proposed fisheries creditscheme.

(6) Assist the Project Adviser in supervising the implementation ofthe training program for cooperatives.

Management Adviser (INCFM) (18 staffmonthsb

(1) Assist NCPL in revising their business plan and operatingschedules, taking account of the changes which have taken placein the sector, and in initiating its implementation andsubsequent monitoring. In this context, review existingplanning and martagement information systems, suggestimprovements and design reports for management's use.

(2) Analyze and advise NCFW management on proposals for jointventure and joint marketing arrangements.

Women Develogent. Extension Coordinator (PEl) (24 staffmonths)

(1) Guide, coordinate and facilitate the implementation of thewomen development program in the fisheries village communities,in close cooperation with the national extension coordinatorand the different parties involved.

(2) Provide training and support to the national extensioncoordinator and to the extension workers in: (i) the collectionof baseline data; and (ii) establishment of monitoring andevaluation system for the women development program.

(3) Assist the national extension coordinator and the extensionworkers in the organization of the training and support of thelink workers and of the vocational training program.

(4) Upgrade the curricula for adult education, in close cooperationwith the different parties involved.

- 72 -NNEX9

Page 3 of 5

Boat Procurement Short-term Consultant ( 3 staffmonthbs

(1) Review technical and economic performance of existing CFCintermediate technology vessels.

(2) Evaluate the suitability of present intermediate technologyboat design of CFC owned vessels in the changing technical andeconomic environment in Republic of Yemen (ROY).

(3) Assist CFC in preparing tender documents and genericperformance specifications for procurement of intermediatetechnology vessels.

Naval Architect for GRP Boats (12 staffmonths)

(1) Review existing design of boats built by CFC and their use, aswell as the boat construction process.

(2) In close cooperation with CFC, suggest improvements to thepresent designs and production methods, including the costeffectiveness of the production process.

(3) Evaluate the performance of the improved designs after theirintroduction.

Fisheries Resource Assessment and Management S2ecialist (30 staffmonths)

(1) Guide and coordinate MSRRI in the collection and interpretationof data needed for the assessment of the state of exploitationof fish stocks in ROY.

(2) Assess the need for measures to manage exploitation of specificfish stocks, analyze which management measures would be mostappropriate and assess the likely implications of such measuresin terms of biological, economic and social aspects.

(3) Prepare detailed training manuals which specify stockassessment methods relevant to ROY, which would help staff ofMSRRI applying those techniques in the future.

(4) Assist management of MSRRI in annually updating its assessmentof the state of exploitation of fish stocks.

(5) Help MSRRI identify computer programmes which could help inmaking fish resource assessments, and train staff of MSRRI inthe use of these programmes.

Fisheries Statistician ( 12 staffmonths)

(1) Advise MSRRI in what way it should collect fish catch andfishing effort data from traditional and industrial fisheries

- 73 -ANE

Page 4 of 5

in ROY, relevant for the assessment of the state ofexploitation of fish stocks.

(2) Advise MSRRI and MF what method should be used to estimate fishcatches and vessel operations, and how such data should beprocessed.

(3) Specify what data should be collected, and prepare all forms,manuals and guidelines necessary for the continuous collection,processing and publication of data by staff of NF and MSRRI.

(4) Assist MSRRI in obtaining computer programmes for processing ofdata, and train staff of MSRRI in the use of these programmes.

Marine Scientist (8 staffmonths)

(1) prepare a qualitative ecological description of the coastalhabitats of ROY, including Perim and Socotra, extending fromthe upper shore to 10 m depth.

(2) Prepare an ecological classification of the types of marinehabitat, and a coastal map showing the locations of each site.

(3) Prepare a detailed ecological description of proselected sites,which would include a sketch plan and sufficient quantitativeand distributional data to allow subsequent re-survey toidentify change.

(4) List the location of sites with special interest to beconsidered for protection within the National Plan forManagement of the Coastal Zone.

Fisheries Sector Adviser for HF (24 manmonthsa

(1) Analyze the traditional and industrial fishing operations, fishmarketing, sector support services and fishery policies, andassist MF to develop a sector development strategy for the1990's. Assist MF in the preparation of annual developmentplans to implement the above strategy.

(2) Assist MF in putting into effect a program for monitoring theeffects of the ongoing liberalization process, and advise onmeasures necessary to address identified problems.

(3) Assist MF in reaching a consensus on further adjustment offishery sector policies, notably concerning industrial fishing,fish imports, and the future role of NCFR.

(4) Assist MF in strengthening fisheries resource managementpolicies and their implementation.

- 74 -ANNM9

Page 5 of 5

(5) Analyze and make proposals for the future role of MP, andassist in designing and implementing institutional adjustment.

(6) Develop a clearly defined training program for medium and toplevel managers of MF.

Consultants for greparing Investment Program for-the Industrial FisheriesSector (l8 manmgnths)

(1) Assess, with the Fisheries Sector Adviser, the future role ofthe industrial fishing sub-sector, taking into account existingjoint-venture arrangements, and the nature of currentindustrial fishing and processing operations, marketrequirements, and resource constraints.

(2) With MSRRI determine the nattre of the fish resource managementsystems likely to prevail i. the future.

(3) Assess the iRterest of private parties to invest in the sub-sector, their experience in industrial fishing, capitalresources and overseas marketing contacts.

(4) Review the current availability in the country to handle largerfishing vessels, maintenance and supply arrangements, and portentry and departure regulations.

(5) Assess the availability of foreign exchange and procedures forfinancing construction or acquisition of foreign vessels, andassess whether current procedures are adequate to provide suchfinancial service.

(6) Determine whether the Government should remain involved inindustrial fishing operations, and if so, how currentarrangements should be adjusted to achieve efficientoperations.

(7) Develop an investment program for the industrial sector, whichwould detail the participation of the private and publlc sectorin the inlvestment program, the public support for the program,including financial, credit and resource management policies,and the need for and nature of future foreign assistance.

REPUBLIC OF YEMENFOUtTH FISHERIES DEV PMENT PROJECT

Summary Accounts - Cost Summary

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

I total & total2 foreign Base e Ira se ba

1ocal oreign total fuchange Costs tocal Ifoisn lotal ltctang Costsss:X::s:ns: *tts:n:nn :ntz::::sn:: 2::S::::: 22:2:2 : e::::s::::: :s:;,4t:f:::s::sSs:5:S:; ::sss::5: 5fl55fl

1. iuSsiElm costs

._.,...........

c ativas ?87.3n6.2 7 . 443. 3n. 4 2.230. 681.6 65 IS 1. 70. SW6. 9 3. t30. 92. 8 4 8 734. 7.7 6S IS

tSMRR 17.085.0 3S. 386.8 52.471 8 67 0 31.760S. 76.760.9 113.UI2.6 6S 0

tisbing C_mnlItes 110.081.0 113.023.2 273. 104. 2 St 2 238.187 4 245.169.6 483.917.0 St 2

CIC 80.400.0 85.t86.1 166.18t. t S2 1 174.403 S 116.081.0 360.490. 4 S2 t... ------- ------- -------- -------................. .. .. .. .... .. ........ .... ..... I... ........ ..... ...... ....... .

Sub-total MIeIt OUNS "4.89?.2 t.677.511 4 2.672.443.6 63 IS 2.1# .111.5 3.638.940 2 51797,051.1 63 is

8. 30O8 CIWSIIRCIIOU 313.41S. 3 690.132.4 1,034.441.1 6S t 810.662.2 1.498133510 2.38.97.2 62 7

torasti¶es 23.811.4 482.724 S 106.,35.9 95 3 1. 61. 6 1.0417124.6 .o,i8.t76.3 95 3

Otlh fquitent 11.025.2 184 101.3 191.132. 94 t 23191S.8 M9.361. S 423.260.9 94 t t

.. __. .... ... _. __..... _....... ......... _..__. ......... .__. __.._. ... ............. ... _____. ... ._. _.... ._. . ___......... ._. _. ...... .......

st4-total LoVtPUINI 34.836.6 65ti6831.8 701,668.4 95 S 71.167.4 1.446,469.1 t.S22.05r.2 95 S

0. ...1.51 U'

for "arbtlltng 30,284.0 613.942.4 644.226.4 9f 4 65,697.0 1.331,762.3 1.M.41S4.3 9S 4

11stis, ScIenoe 991.6 20.102.s 21.094.1 91 0 2, 11.0 43.,6.4 45.751.4 95 0

othetr Vehicles 3,966.4 80.410.2 84.378.6 9S t .603.9 114.421.S 183.029.4 95 I

................ ............ ................... ........... . .. ........ ...... ...... ... ,..... ..... ...... .,..... .. ......... , .,,,,_......

St&-total VItRiCtS 35.242.0 114.455.1 149697 I n s 76.446.9 1.549.194.2 1.621.241.1 95 S-

t. tishing Vessels nd Gsars

Uoats 423.S07.0 671.81t.3 1,101.324.3 62 8 918.610.3 I.470.319.6 2.388.99i.a 62 t

tqisms 91.346.0 1.973.4tt.1 2.010,624.S 91 14 211 162.6 4,260,864.1 4,492.02t.2 95 14 -.

thasigq f"rs 181.372.9 1.966.820.5 2.1 2.193.4 9I Is 402, 110.5 4.266.421.9 4.668.532.3 91 5I

Inteidlto tlack. Vessels 67.000.0 1,358.2t9.t 1. 42 279.7 95 tO 14S.336.2 2.946.376.8 3.091.7113.0 91 10

toastal Isaercb vessel 2.010.0 40. 7484 42,718. 91 0 4.360. I o. 391. 3 9. 751. 4 9S 0...................... ....... .... ...... .................. . ........... ....... ....... ....... . . .............. ..... ....... .. .. ......... .......................

Su-16total1 isIing Vessels and Gears 771.231.9 tILOt. 144. 4 6.792.380.3 9 47 1.6S1.639.1 13.052.314.1 14.734,013.8 89 47

I. "*Uw1ells6 PIlI ION 98. 614.0 98, 64.0 100 I 214.000.0 214, "0.0 too I

6. 78itItIG PROGRltS.. ~~....................

Cooperattesa-intiaI Itrsintg 61.037.0 61 03t.0 - 0 3240t.3 132.401.3 0

Coeeralis-fIaresbr Courses 34, 11.6 - 4.558 6 - 0 74,964.4 - 14,964.4 0

trainIgq Naval Architects - 114.381.4 114.381.4 100 I 24111 S.9 248. ..9 to00 I

tratning in Marine Sciene 3.216.0 28.023.15 31.239.5 90 0 6,976. 1 60.188 .4 67. 764.1 90 0........... .... ........ ............ ......... ....... .... .... ... . ....... .... ..... ....... . ..... ... .... ....

Sub-total tIlAIlCN PIOGRIII S 98.11.6 142404.9 241.216.1 S9 2 214.341.9 308.904 3 123.246.2 S9 2

U. ItWalCAt ASSISiSlI 201.206.t 1.1V.27I. I 1.8t6.481.2 89 12 436.4SS. 3.S03.860.S 3.940.306.3 89 12

lotat INVISINEXI COStS .S13.939.6 ll.623.049.2 14. 136.988.8 82 97 S.453.231.3 2. 212 688.0 30.661.919.3 62 97 'd 1

hytela contingelc is 218.091.1 1.164t 2t4.6 1422.36S.S 82 10 559.810.5 tS25.54t.S 3.081.392.0 U2 10 03

Pres tontiongenies 4. 192,01 2 22. 632. 324. 5 27.224,381.? 83 18t 829 22ti 0 4.044.t4t.S 4.833.9S7.1 83 iS ° 0

tetal IlCIUOIUG CCUIlIU PIICES .t 364.086.9 35.419.046.4 42,783.736.3 83 294 6.842.30t.8 31.182.911.1 38.621.278.9 82 122 __- . .... . . __ _ .......... 5s*s:Xssts: s:sss:sss*:s ssas2*:SS*3s: u5s2:a55:5 :sss ass:s5z ::ssWszssssas s,:ss:sssassT asts:, s::sSea s0 C)

0 0

REP-UBLIC OF YEMEFURTH FISR DEVEL,OPMENT PROJECT

SUM111ary Accounts - Cost Summary (contd.)

II. Ios iit costs"I SAtS

Ink StUt 243.853.2* 243.083.2 2 528.965.? - 28.9S5.? 2

SW-toat SImitS 243.851.s2, 243. 653. 2 - 2 S28. 9S. 7 58 9S5.t - 2

IL anol"UtSEiS 16.4110 176.411.0 - 1 302.6.2 - 382.670.3 -

._................. ....... .... ........... ............ ............... ......... ....... ........... ... ... ...... ......... ... ..... .... ..... ... . ...

lat 91ttUiN l tIISiS 420.t64.2 420.264.2 * 911.636.0 911.636.0 3

yIb l Cota iIupmci 42.026.4 42.026.4 0 91. 163.6 91. 163. 6 0

friCa toiaStein 9M3.62a. - 953.628 - 1 163. 613.3 163.613.3 - I

total KUtisUM S tilwauttits 1. 41S.918SM I 1. 41s.91ta1 16 1.16S.412.9 . .l66.4t2.9 - 4

blet "sMilo SoStS 2.934.203.0 tt. 673.049? 14.S5?.253 0 80 tOO 6.3F4.8t 13 25.212. '8. 011 $?1".555.4 tO 100

4lqts1 t wt4er_ 200. M1.1 1. 164.,M4.6S 1. 4.39. I Be 10 S5.0 14. 2.%25.54t.5 3. M75.56 B0 tO

Ut kg t ti I iss 5. 54S.685.3 22. 6".324.5 28. 118 009.0 60 194 992.639.3 4.044.141. 5.031S,500. is 16

* ... ....... .......... ................ ...... ......... ............ ........... ............... ... ............... .......... .............. ..

.tot PRJEc; t4SIS S 080.000.6 3 .9 S48.4 44. 1 65. 0 60 304 8 00.720. 131.762.911 I 39.191.691.8 60 12622*4usslass t%:t$tzsttXtt 94212tettett :MS22138 X*t S*lf ItSasatt:: ::S:s: %3:t:a*324:X t8**2VV0 823:*:2

I~

ftf6 IS. 11 If: t'3 °

00 .W 0

ea ma lowIs"

11366,' la6.2)4'lt#1162 3101's4.4446008M SI'm1 4019181 Ii *u.* VU'i ''s ,'ar gMI 11141110$31's 458248 eve $1111 Isam PM.621288 S* *120 6628*0 2141se 4645as **#sit02 48 6 .*'86*2 4 .0.. 829.444 2o* 4'8810298 08622 * 00 868.i u

sinesit44 22832681142 4166 11'pS *'0049 2128 412442,0 ll 12400'16'4 SW62' lit~ 612 '0 aug ergo s g smmu

610 on -91Si l 640In4 KI 0301 CA 6125 282 Ite6 -10 401i 48t1 £421 2'11 4gig 6l06 "mm 16211411

6 Ws II$ W$ 9, 414 2,44 Al'a li 0'91t 'o iI - - Vol Is aloem.q Am*4 bq

m in sum Is

8 2428~ ~~~~ ~ --- ---- ---- ------ ----------------- - 08 ------------- ------- ---- -06-----assq-----Is '2 it 'e.s *£0 KScot422 ,1 1"1 48661 - S'46 6's - 22,05 21541 eve S Ise Is- 9 S's"'06 ns4 W1111111311

61600 . 11 22l4 2140 4211 220 9'84 *'851 - 2'8S44 t 41461 0 0 16` 8664 922 53258186656,00 114 91 I's ft it '11 el"1 0,121 Ol I1060 6 lit 0 6*8653p4 *8-MS-0M

owl c w wi~ swami

It85- 032 16 566 S120 66 0'4 61160'4I lu's4 42 2422 0633. 2408 0410 V420 uS 41 2410110I1C416 I 111 - - L'S9 2204 262 206 0U'41 8216I Gu- U' ' ' 848 I24 I 412 6188i 02 8WMI3 *2I

114SAS t'l9s G Itel4 m I64 266401 ' ISN't1 - 1149 8 'goItCal2 4168 31014 Wits

unsP- tem uSa4 'aS'13410 - 'S .' -'l 43634 20' 'K 4'4'`S1 t . - 0'Is9K si I2 416I2'S9S slows '2elV

is ~ ~ *664 '1 ' 14 Os' Os214 661 '3*

eti' 01 -,3 1001 0041 SO '1626*11 4'tg912 *'SJ 445 -n 68 VW3s

2928 - - ' ' 2128 ' - 1428 * ' . . 4434 - - 862~~~~~$33" 40,641 24081 4442'8 4404S 'S0'2 I62' 60091o IM - 6260s 4,0'2' 414'S 4121'Sli '04' . 2065)*3 *03

... .. .. .. ... ........ ..... .. ... . ... .. ... .. ..... ..... ..... .... . . ... . ...I's 1144 10' Slit 6al I'S I go VT" Ct fill O's Pskezassm

333330 33 33333333 333 333333331141OS o3u3t83*333333 *33 3*3333 33333 3*1*33 $333IM333$33

5680 4 6 CH 0419 5 86808t £ ,6M2' 8 iiu

O'M oloo ! 'IO tig"O YIUIh

REPnTLI OF YEMEFOURTH FISWERIES DEVELPMT PROJECT

Project Components by Year

toats lnclud" tst > mi's

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

I 2 3 4 5 I 7 total: 22:f 2t :::textal :s%92vvrS9g l:::* :rtitst:t*2: wSss tal: t::agotto 2*21t2tr:St

A. Vtitx inS tlStt tUlSSIS 1MCIlIIIES 2. 70.463.0 3.046.009. 1 2.132.393.8 2392.949.8 336. 14.S - 10.111.964.1

IL 11i1tNS t511 111-3 194.164.1 t40.023,9 13S. 5G.6 360. 293.9 231. 32.6 - 2.002. ? 3

t IISltl0 VtSStIS AS 6E1- 2.069.06615 3.M 2.774. t 4.305.0D 0 5.359 253.0 .333.315. 3 857.404.? 22.7, 6 116 8

0. 1i1s3 55016 U86LI1 t. 63 0 280.030 A 53.882 S 2M9523. 4 * - 1.- 43..0 .

L 1it861336 llt.9811 114.418. 7 6.678.3 120.837. S 31. 1974 20.697.65 531.810 ai

1. 41Yt1tt1 3t1 Ito flsNtS fllS lilts - tO.li. St .5t658.a 410.251.3 2t. t30.8 32.632.7 47.861.3 I.M16 2.5

6. 90n1 86I5 . t iicm,cA 8Assisi581 . WUnl i3AfiU 105. 28?. 1 1.01.432.1 9. 149. 701.? 7 13. ItS.0 915.434.1 1 83. 155. 3160. 019.2 S.fA1.26 1.9..... ........... ........... ....... ........... ............... ........... ............... ........... ............... ............... ............. .

bId UWdICI 11UtS 91S.212 2 6.661.901.t 9. 831.191.36.801.634 5 9,080.I) 7 1.631.353.3 S125. 3". 2 44. it99.s5. 0tsn:zn:t st3i.flst%: :tnS$t.zsts ,..hmnh:gg tscssss.2#: u:.ztt:.t*t SS*atI:*:Su IR*It:ShhZtS

b 25. t9t It: t9

I~~~~~~~~~~~~~~~~~

totals Includetq Cont i gocls$JutS

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

I 2 3 4 5 6 t totalDSSStg*ttts . R .....*tst :.S:S.ss 2t.t*tt.t: z*tt.T.y*s %St::... :tu. .2.,,w.cr2s

3.470.934.1 3.114.526.7 1.868.116.0 t.8t6.570.29221 5. 1 t501 t7.82- 235.305.? 490.122.0 648.IS. 3 273.511.? t 3.425. -S t.9.4186.3- 2. S01. 894. 2 M. 1t9. 2 3.793. 656. 4 4. O9. 290. 1 4. 144.813.3 464. 400.35 gt 9t3.0. 7

1 "I.S1 3281 St.4 59t.01S.9 23S.0865. - -. 319.505.5169 520.3 135 M.9 It2. S2. 9 t06. 460 4 23. U6. 13. 545.5 58M1. O6 7

. 123.011.9 35.097.9 351,434.9 16.059.8 21.356.5 27.040.3 1.114.021.31011.S53.9 .724t.19.O2 . It75.5tO.2 ILf453.8 695.010.9 4471.es.2 203.434.6 S.502.492.5.............. ........ .......... .... ..... ....... ........... ......... ... .. ... ,............... ... ....... ....... . . ..... ...._

1.3t5.96S.8 6.03.509.9 10.05t.342.8 1.760.030.4 6.894.611.0 4.99,261. 5 t14.U4. 3 39,191.691.8ttSS.R3DltR I::sg2asss2 $a$t*2882t2"32V 3s2t12u2t2 hsWltl2st Z83*22t 222 *22I%$tS *Xs *2tmtgt

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

,,__

.~~~~~~~~~~~~~~~~~~

I.1

REPBLIC OP YEMlENMIURM FIURUES DEVRLOPKW1 PROJEC

Sammary Accounts by ?roj act Componexnt(YD I000)

ruso r,srn66 Df~~~~~~~~~VtIOFzNI 1i . IscilICAt C.ignIPeoasssbo 13a8601 wssuss asp tug stag. S uossiraus ISSISlhOUt ........

IMCIItIlIts 11101SIIES 09 MAU69KNI TRAINING 0 MlSSUS lilts 1*ttUO total I um..t**f.. f......... .... ff *tllf .#.4alftall...tf~.. ttsz o St

A. camt uNs

C4w.5sw 2.v"? 2.230.? IS 0 334. 6NMI3 . 2. 2.S IS. 0 3.9

51gh14 Comuities 22. I 223. I S. 0 33.9S426 . . 166.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~It2 69. 0 24.9

Mbt-hea l 025 mm3 I.3. 166 2 92.9S 223. 5 2.612.4 Is. 0 400.9

SL.m 0StCW500I s.064.4 . -1.064 4 10.0 108.4

C61.s55ha S06, S So. S to. s0. I

olbu 1qa5pmtm I2.0a i3n.' 24 4 29. 3 "S9. I 0.0 Is9

Mt-loul 196101 106.9 * 5.8 - 32.6 24.4 29. 3 T05.2 I 0.0 10.2

for 0g8454 644.2 s 44.2 50.0 64.4

baSi s 1.6mg 21.1 - -21. 0.0 0.otkw fthiolft ~ ~ ~ ~ ~ ~ ~ - 12.3 21 I SI.* 64.4 0.0 0,0

"-fate$ VMCIfs 2- 44.2- ).1 52.3 21.1 Si.* 142.? 8,6 64.4

1. Pishime s 0n*g sd Ose

9et10 1.I6l.3 .- ,01.3 0.0 0.0

&Vagms . .010.6I. 2.010.6 10.0 20 I "t

Ink$"q GM$ 2. 592.2 2. 192. 2 0. 0 219S. 2

lat Ka te. 11mif Ilane - 429. 3 -1.429.3 10.0 142.9S------ mbasS - 42.8 42.0 0.0 0.0

Is-ush) FIsATV1"ems mo Ge 6149.6 42.8 6,19.M. G. 3 S64.08

WINmSTON maim. U -9.? 98., 10.0 9.9

bepralus-Iiftla Trafftisg GI6.0650 56. A, SIpa s 5g-111slme 40110twn 346 34.6 50., 3.9

Inol,tea bmu15mgls IM44 114.4 50.4 11.4

lsula, 11WHOu 1.54mg.- 31.2 - 31.2 10.0 &.I

9*104,1111luaus NIISSES It312 21.0 . 245.2 to 0 24.3IL SIUSCOIt misSS - 253.6 502.6 1,900.1 5,16.81 50.0 t 65.

Iml t) whIsIUU UOIS 3. 601.? 661.5 691.0ss 493.9 222.2 ill.? 5,6S"..I 54,i3.0 t50.0422.4

U4M 64695 . - . . ~~~~ ~ ~~~~~~ ~~~~~~~~~~~~~~~~~~~~32,5 255.3 243,9 50.0 24.4

11*-61oe sullIES - .6 211.3 243.9: to.0 24.4

IL 0101 SiIUSE1 .1 , S.0 560. 4 316. 50.0 511.6

Total 01000155 COMT S.0 32.6 3 191 14420.32 50.0 42.0

lout1 "atilt1 406TS 3,601.1 061.1 6,190.8 510.9 2. 0 2.20914 1 54.953 It10.1546C44

ubsil gaS bap "g4 4"S.I 06.? 189.6. 48.4 25.0 49.4 200. 4 1,464.4 0.0 0.0 _

PikeCmtisip.ois 6.484.6 5.219 4 15.355.6 604.? 266.01 213.5 3.406.2 20l8, I*0,11 2.5211,6

lout5 pluma 081051 5010 2. 002. 6 22,65.5I I.243.I 935.01 5,0.fe.3 9,661.2 44. M9.1I 9.0 3.001 2.. .t*........ .. 0C. ..... I...C......... ... #.. . .......... S.. *.3 en

losip b*ANP 110.1 5,96. 2. 51. 0 5. Is.2 29.61 69.5I 2,82M.0 35.419.6 9.0 2.093.?

RUPU8LIC OF TIMFUM I FISHSIERTES DEVLOPMUN PROJECT

Prolect FinanMtin Plan (USS milltln) I/

total ao Oct costt_nwmt/spedituro Catewoy tocal FerValn total FICtIER IDA ItA [EC COAt. tOItA

A. witt,.e & Fish Prj.acilitlesII Civil IMke 2.5 4.3 6.8 EEC 6.S 0.3 o .0Ii Equlpmet 0.1 1.3 1.4 EEC I.4 1.4

{lii 8odcmstntlee 1.0 1.8 2.8 IDA 2.1 0.? 2.8Ssstael 3.5 7.S 11.0 2.1 t.9 0.9 11.0

. Inr_mt fecilitlee IDAIs Efqa1ht for IbAhop 0.0 0.0 0.0 0.0 0.0 0.0ill Veicles for ROketing 0.1 . 1.8 1.7 0.1 1.8

SMtolsI 0.1 1.7 1.8 1.? 0.1 l.a

C. fisbla Vesses d BeerI) muets 1.1 1.7 2.8 IA 1.7 . 1A1 2.8

II) tElngin 0.3 S.S 5.8 IDA/lfA0 3.1 2.6 0.0 S5.iIG) fisi Leer 0.S S.4 s.9 IDA/EFAD 3.3 2.7 0.0 S.9Iv) Int. Tom*. Vetsels 0.2 3.8 4.0 (EC l.8 0.2 4.0

skhtotat 2.0 tt.S I8.S 8.1 5.1 3.8 1.3 1.S

O. fish sttel m1__ FECii civil bet 0.0 0.1 0.1 0.1 0.0 0.1

III Eq.IpoMtlVhIclee 0.0 0.4 0.4 0.4 0.41 1) Vessl Iw -I 0.0 0.1 0.1 ).I 0.1IV) relal 0.0 0.1 0.1 0.1 0.1Vs fohicl As"etmBe 0.0 O.S 0.6 0.6 0.6 c

Xttelt 0.1 1.2 1.3 1.3 * 0.0 1.1

is VsAIles 0.0 0.0 0.0 0.0 0.0 0.011) Training Cet* 0.3 0.3 0.6 0.4 0.2 0.0

*hmMett 0.3 0.3 0.6 0.4 0.2 0.6

f. 1es h Zim 0.0 , 0.3 0.3 IfM 0.3 0.3

I) Clvit a 0.3 0.3 0.6 0.5 0.1 0.6Il) EqdaltIVehleles 0.0 0.1 0.1 0.1 0.1

off) twiticsl Asi ts 0.0 0.3 0.3 O0. 0.3stlote 0.3 0.7 1.0 0.9 0.1 1.0

U. 0t Tedhnel Aseletee , CSIt uginerl *bS . 0.4 1.4 1.8 1.8 1.8ii) IorAUieers 0.1 1.8 1.9 O 0.4 1.S 1.9i;;; bdlifokdwis not. 0.0 0.3 0.3 0.3 0.3

Sbsotal 0.5 3.S 4.0 0.r 3.3 4.0

1. Ptojct codldttion IOAI) Ea. ipmt 0.0 0.1 0.1 0.1 0.0 0.1ii=eICles 0.0 0.1 0.1 D. I 0.0 0.1

%ftahts.A 0.0 0.2 0.1 0.2 0.0 0.2

J. saweeat Costs 1.2 0.0 1.2 GOVT. 1.2 1.2 -

lotot PrIoeect Costs 0.0 31.8 39.8 13.2 6.S 16.3 3.0 39.8

t/ Totals msy dt u tu de to rounding.1mo: AUmds less thee USSO,000 are sho as 0.0

- 81 -

REPUELIG OFVKNW6Qj= FIS1 ZE~S DEVKL6PHKN? P19.1C?

&gLMn&ea. Schedule of RthiUgsemati gf rDA Cradit

Prof I toIDA Fiscat 0During ............Year and Semster . Seter CJat;ve Southern YemenEndfngs Of sbusmrnts Oisbursements Project Agrfculturo..,......................... ., ...... w...... . ............. ......... . ........ ......... ...............

*US Millio ....... ........... - ..............

1992 Decembe 31. 1991 0.0 0.0 0.0 0.0June 30, 1992 0.4 1_J 0.4 3.0 1.0

1993

Oecember 3t, 1992 0.3 0.7 5.3 4.0June 30, 1993 1.2 1.9 14.4 9.0

1994

December 31, 1993 1.4 3.3 25.0 15.0June 30, 1994 1.3 4.6 34.8 21.0

1995

Oeceaber 31, 1994 1.3 5.9 4. 29.0June 30, 1995 1.1 7.0 S3.0 39.0

1996

Decembe 31, 1995 1.1 8.1 61.4 48.0June 30, 1996 1.2 9.3 70.5 57.0

1997

0ec@mbr 31, 1996 1.2 10.5 79.S 66.0June 30. 199? 1.1 11.6 87.9 74.0

19"

Oecember 31, 1997 1.0 12.6 95.5 84.0June s0, 1998 0.4 13.0 98.5 91.0

19"

Oecembo 31, 1998 0.2 13.2 100.0 ff.0June 30, 19"9 0.0 13.2 100.0 98.0

Closing Det*$ Dme4r 31, 1998

101 ProJect PtWmetf V.fl w

04/02/91

AR!WIC 07 AMR

Summay of Implemntation Schedule................................ ................................. ............ ......................... ,.... ,,,........................

1Tw 11 1992 1993 199 1S 199 19eti-0 tY ............ ............ ............ ............ ............ ............ ............ ............er r I2 I 3 4 1 2 3 4 1 2 3 4 t 2 3 4 1 2 3 4 1 2 3 4 i 2 3 4 i a 3 4...................... ................. ............ ............ .......... ............ ............ ............ ............ ............

1. IVA CUIT AI .

2. On OF AM APgMU PCEtf*

3. PROJECT USILIZAIMEtsitlzo of IE Stoff

P_w. Off lee "ip. & V*bl t.s

4. 5185 !IEIRNS VTAh TSPswu.tomn of TO , Short Listsdtotest of cuwultaits Pr_. of Oesgns a Tdo EDo"

S. 8031. SPM938 me. C1SRTAUTEPrsctlan of TO & SMrt ListSetectils of t uututbmtimu 8i.rI.m ***" b***** ~*****_ b**** _ **-***

Ct%IL Ct 9 FM VILLAK FACIIIIES STuuhrlms of Cootn.tra 0CtratorwlIl:tut oIbhtiSWIhilfl,:Civfi Works wimswJ s latoft. of Eip *

muswlb_hwns 8twt-su of Fcl.sbWt: Civift or"

6_t IMtotttion of lSWPuijam85)55_: 3ti rtt of It lltlesDiIA imi: Civil iL*.Sw''.55s*oAt Rid: trtaw. of EePl tbIs/At UNOS Start-up of PeelS.Al eam Civil *_,At 0Wm lintltien of pulmt *Al gO Stw t of fPcltitiesm*stUe civil wb _llb:, Ileteltation of EePWAt111tal: Strt-up of facilitiesObib" Civit VW4s'5*,

**Shihi Imttllstimn of EWpmtShibors strtt-u of fvcltitIes

7. - RA law amDPo_r. of onion NW Tod" SeesTuuhrie of tamret ".t *5.5 fCmeractor "Uelh atm __ed Centnetiain_tn bIntnw Peelediod

........... , ,. ......................... ,............. ............

- 83 -

ANNBl 13Psge 2 of 2

* _ *-. *4

,'* , S i a

. 2 . ~* * | S

!1g ,.§,^,~~*S * ! lS }s!

X -, l ' . it 1 2ii il-i|,ig,. . . 4 dt Y a a

NVlddfS t1_ Wil

4s911apds uclaa S&qw 'amappJe Jssu 1.s«lepds ljps:oP 's'"p@ Suass utwvaul /1

O'QZ 0 9t 0'02 0'l1 O'S O1LL 0-1 rolt O'S& l

.. ................................ . ............................................................................ I_.........

0't% OI Ol weS Ol 0t Olt Olt Olt 0-2 lllP ..... ..... . ..... ..... . ...... ............................................ ..

0-6 Ol 0lt Ol 012 0CIL Ole 96/1 (d) UoISsbgIMJO'S 0I 0l 0al 06(10 41W6U0 J@I1t 66

.................................................................................................................... I..........

O.t Ot 012 0I 0IL O'Z 0l 0l 0l 1S0s4P1 S e6..... ...... ..... ..... . ...... ............................................ ..

0l1 lt OtOltZ Olt01I0L 0lt 96/10 UOI1SIAJ5df5 £6

.................................................... ............................................................................................. _

01 0 0-2 Olt Olt 0 0l Ol 0l Olt Z 401-1S 96I.. ... . .. ..... ....... ..... ...................... ....... ..........

Olt 0't 0 I 6WO uo@5$AjsdfsO's 02 01 01 Ol OOt 0o. 'Z6/10 UoSIAJdns 96

012 0le Olt Olt OILOI 012 01 01 33LS 5

,.. ..... .... ..... ..... ..... ..... .....

0lt 012 01. 56/10 WOISIAJadnI011 01 Ol 01 00 01. t 0I0 £6/ uoiwIAjadlnS 96

, ......... I............. ..... ........ ..... ........ ..... ..... ........ ..... ........ ..... ........ ..... ........ .....

o06 0O 01 Ol 0l0 Olt O1 Olt 1WZOL#S 6

0o O 0OIL 0I0 £60 ' uosIAJdns06Z O1 Olt Ot 0lt 01t 00 0-/20 0'O£ J6nS S6..... ....... ..... .................... ..... ........ ..... ........ ..... ........ ..... ........ ..... ........ ..... ........ ..... I

0't 0'1 0'7 .7 07t iew qs

019& 012 01l O OIL 012 01Z O1 Olt Iso3 *f l So,..... ... ..... ..... ..... ..... ..... ..... .

019 O'e Ot Ot 0t 16/00 *.4 lAJu OdsJ,.. ..... ......... ..... ........ ..... ........ ..... ......... ..... ........ ..... ........ ..... ........ ................. I

0'69 Ot lt 0'20 0'L;l OltZl Olt 1940-C0 QAlJovs oz o Ole 0'1 Ol 0t Olt f6/LO wysDI dAJ 7O

'ol 0'2 Olt O'Z 0'8 0' O-tl0-2 O le-Z61 pU S 0l aJ S £o, ... ........................................................................................................... I

u' St Ole Olt 0'47 Olt 1w1°1 qnS Zo..... ...... . ..... ........ ..... . ....... . . ... s... ..O's O's Olt Olt Ol Z zt 9"44P3 'JM*Oid

f*J°d OZIp863 Zo

pI3 R p"I3 Z6

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

3uRc"ooloord u*13*jsfd d zod" Gui"pnj*uj 's49} n l uo;191AdntPM MI" ft") 1 r

ut,l uo;ss*adrS

JIU6 mNlzOI(_ 93IM1317N1U=

E3NIL 10 SlK16

* 85 .

Table 1RPALIC OF UKI

Wtt! SE1 !TDaTh BtIfltEar MdPCT

(YD/ct)

I I W~~~~~~ ~ ~~ITHOU WITHFish Catgoey UXhsViWo POJCT PROCT

PRClts 1/ Wlen PtC11.................... ...... *...... ...... ...........

$C"r Go,0 1,000 1,000 1.000Cateoory I 600 450 450Catetgry it 300 300 300catgory It I 75 X 75shr (Frosh) * 0 M0 300

|5harks (Gutted) r oo 450 . .450 .Sharks (fins) 3, " , .00 3.0,

iLd0"ters 1,000 1.000 I I00tSriane - S51. 50

I/ It fs usimud that "Ont rices ore srt1fhalttV high, given the il. diete effectsof liteortitioA, partiplefly with regrd to th high guds of fish.

Sources Ministry of fish waLth

FtI NAME: P?IAUPIS02/21/91 15:09

- 86 -

Table 2

Asuzmen for mm Ndgls

IntermediateGRU Ga? Technology

7.6 Mearm ,2.4 t" Sdllc Vessel

Landings (Tons/Year) 28 38 47 292

DtribUtion of Landings (1)Super Grade 12.0 14.0 4.3 6.0Category I 10.0 12.0 6.4 23.0Category ll 19.4 18.0 10.6 69.0Category III 16.0 15.0 0.0 1.0Sharks (Fresh) 8.0 18.0 12.8 1.0Sharks (Gutted) 3.S 3.0 63.8Sharks (Fins) 1.0 0.5 2.1Lobsters 1.0 0.0 0.0Sardines 29.1 19.5 0.0

Total Qf l10 100 0

Fish Sales P aices (YDepnSuper Grade 1000 1000 1000 1000Category I 450 450 450 450Category Il 300 300 300 300Category III 75 75 75 75Sharks (Fresh) 300 300 300 300Sharks (Gutted) 450 450 450 450Sharks (Fins) 3000 3000 3000 3000Lobsters 1000 1000 1000 1000Sardines So 50 S0 50

Lobster Transport Benfit (YD/Ton) 1150

Governent Tax () 10 10 10Cooperativ Service Charge

(X of Sale) S 5 SCooperative Social Security

Cargo (I of sales) 3 3 3Maintenance and laspai as % of* testment ecst .10 10 10 8Sar. of lneou to at Crew () 50 60 40 1S

Iquity (1) 20 20 20 40Los (S) 80 80 80 60

interet Rate (M) 7 7 7 7Tem (years) 8 8 8 10

us%sus1svIs.v1esu15t

* 6UU-t 1Table 3

twa e01 tVOIIWYR FIRiIlTRES DEVELO W P0J!6T

WIrN PQ0JIC?U............ ...... Bost Itodol 0IIP 7 -

........................ ;...............................................

nSA: 1 2 3 4 S 6 r, 8 9 10 11 *2* - - -- ~~~~.......... .....................

Lndinp (onlt/ Yetr) 2.0 5.0 25.0 W.0 50 .0 25.0 2.0 25.0 2.0 25.0 25.3*talt Sates Revewe 9,226 9,226 9.226 9.,6 6 9,226 9,26 9.226 9,226 9,226 9,226 9,226

oPeZrting costs (TO)

FueT : zt.btranta 4.460 4.650 4.60 4,680 4,650 4,4 4,6 4,660 4,680 4,650 4,660 4,680ovtrtwsnt tax 92 92 923 93 92 92 92 92 923 9 923 98

coo tisve Serice Cherg 461 461 "I 46 46 461 46 41 41 461 1 461Coopratfiv's ociat Security Charso 277 277 m7 27 V7 27 VT V7 27 2m 277Nainteemnce aR pile m7 2 2 27 2 272 272m an 27 m 272

or 166 1,568 1,541 1,545 1.66 1a I, 1,5 1.6 5 t ,5" 1.56 1,4S8 1,4 1,4S6

Total oerating costa 8,161 5,181 5,181 $.I81 6,151 5,181 5,1U 5,1J 1 t 511 5,151 5,151

C"h Ftow fre operation 1.04S 1,04.5 1,045 1,045 1,045 1,01S 1,045 1,04S 1,04S 1.04S 1t,05 1,0S.................................................. ..................................

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

out 1,533nirnea 677 67 677 677

Sr 513 513 S13 S13,................. .......................... ;................ ......................

Totanvst s 2, 0 0 1190 0 0a1190 0 0 1,90 0 Q

Set Cah Floe (1,676) 1,045 1,045 (145) 1,04S 1,04S5 145) 1."S 1.045 (04) 1.05 1,0M5,....................................................................................

pi W fat late of ReStu 46

tocom for Distribution (bef ore lao) 2.613 2,613 2,613 2,613 2,613 2.613 2,613 2.613 2,613 2,613 2,613 2,613

Uware for Sat Cr 1,56 1,5 ,5 1,566 1,6 1,5I m5 1.565 1,56I 1,8 1565 1,54V *ae for oat Owe 1,045 1,045 1,045 1.04 1,045 1.0 1.04 .4,5 1,045 1,045 1,O45 1.045

Caw C seition:oat 0Omer ICra 2

.AWr* tmoo per Crmw Ne 74 7 754 74 74 74 74 7 74 7 7

Finwlnifng

545 0 0 5 0 0 O S 52 0 235

SeI SevCe Covrg

1moon to I"%t 0ebefor Oat Sevice 1,065 1,045 1,04S1 1,05 10S 1,05 ,5 ,045 1.45 1,,0455 1,04S 1,045

Oibt Sevice 31 531 531 7a 7 2 464 464 2 4a 4 232.......................................................................

£nsw to Seat amerotter Odt leice 514 514 514 2 n 513 5W 551 513 51 51 513

Debt Sevice CoWre Ratio 2.0 2.0 2.0 1.4 1.4 4.5 2.3 2.3 4.5 2L 2.3 4.5

FILE EMS MM"02 9 09:0

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

* 87.*aN1 TAl0 3

YPR: 1 2 3 4~~~~~~~~um 5P6 7 S 9 0 C ¶

A.t

WITtZ JlA l............ 7.. A

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

nu: 1 2 s * s * r o 9 lO~~~~~~~~~~~ a 12................................... ;.................................

lndIngp (Toa Year) 253.0 2.0 230 25.0 2.0 2.0 20.0 25.0 25.0 .0 25.3toW Satl Revenule 9,226 9,22U 9,22 9 9,22U 9,226 9,226 9,226 9,226 9.226 9,226 9,224

Opretirn Costs (YO)...................

tugt I Ubtrtconts 4,4 4.610 4,61 4,60 4,46, 4.40 4,410 4,410 4,0 4.,40 4,680 4,680Covewt tea 923 923 9 92 9o 923 93 93 923 923 923 923Cooperative Service Charge 461 461 " 4 461 4"1 46 41 41 461 461 461Cooperative's Sciat sSecurity Charge 2? 27m 2r 2rr 27 m m7 2 277 2m 2 277 27WaInft .e s an emp2r 22r 27 272 27 a 27 27 i7 2 27 2n 272 272Labor 1.4 1,55" 1,545 1.55 1.56 1.556 1.1 1.54 1,5S 1,565 15 1,545

Total Operating Costs 5.1 8,18t 511 3.5l 5151 8,151 1,151 8,151 5,t11 8.181 5,151 5,151 8,181

Cub flow frau Operations 1,045 1 5 ,05 104m 1,045 1,045 1,045 1,045 1,045 1,045 1,045 1,04S....................................................................................

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

- at 1.533nglewa 677 67? 677 6?7-er 513 13 513 513

,................... ....................... ......................Totlt tnVestot 2.723 0 01,19 0 01,190 0 0 1.10 0 0

et: Cash Ftow 1,675) 1.045 1,041 (145) 1.4S 1,04S C14s) 1,045 1,045 (145) 1,04 1,0451

fiaemntot ltate of Iteturn 462

I ean, for Distribution' (before labor) 2.613 2.613 2.613 2,613 2,613 2,613 2.613 2,613 2,613 2,613 2,613 2,613

"~are for gost Crew 1.565 1I5" 1,545 1.54 1,56.5 1,545 -1,565IJ 1.551,4 1,565 1.568 1,545share for Soot Owne 1.045 1,045 1,04 1,045 1,045 1,045 1.04 1,045 1,045 1,045 1.045 1.045

cme Caipasition:-

raww 2to o Cwmd

finmnirig

guity 545 0 0 us 0 023s 0 0 238 0 0Lwa 21i5 0 0093 0 0 952 0 0 952 0 0

oabt Servfee Coverag

tam to See: Ommerbetfor Odea Service 1,04) 1.05 ,451.4 1,04 5 1,04 5 1,0 45i' 1,0 4 105 1,045 1.045 1.045 1,045

Debt Servi ce 531 537 531 76 74 82 464 464 2 464 46 232.......................*.... ....... *fl..............

Flia Rtt Oet R*mw

aft Debt $ Clrc 514 51 514 22 2513 21 6M13 5 ,t 5 513 551 Sol 513

Dewt Serve Cowsg fatio 2.0 2.0 2.0 1.4 1.4 4.5 2.3 IS 4.5 2.3 2.3 4.5

02/69 09:01 t.......... ...

* 88 *

Table 4

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

2RP1MLT^;_ 9.b Th

(YD)

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

YtAR: 1 2 3 4 5 6 t 6 9 10 11 12~~~~~~~~~~;. .*; .... T...... ;. .. i ....................

tl"ngs (Tonsl / ar) 3.0 3.0 38.0 3.0 38.0 .0 .0 38.0 38.0 .0 38.0 8.0Total Sales Revenue 13,35? 13,35? 13,35? 13,35? 13,35 1335 13,3 13,337 13,357 13,35 13,357 13,357

rFating Costs (YO)

Fuel & LubrfctS 6,240 6 240 6,240 6.240 6.V40 6,240 6,340 6,340 6,240 6,240 6,240 6,240Govermet Tom 1,336 1,336 1,336 1,336 1.336 t ,336 1,536 1,336 1,336 1,336 1,336 1,336Coqparstive service Charge 066 "66 "A8 66 668 661 668 668 468 6AS 668 6StCooperatives Socil S ecrity Charge 401 401 401 401 401 401 401 401 401 401 401 401maintenancoe aRepair 345 345 345 345 345 345 345 34S 34 3 5 345 345Labor 3,058 3,058 3,058 3,056 3,058 3,058 3,058 3.058 3.058 3.058 .S056 3,058

Tott poeratir-g Costs 13.047 12,04? 13,04? 12,04? 13,047 13,04? 12,04? 13,04? 13,04? 12,047 13.04? 12,04?

Cash FLOw from Operatio4 1,310 1,310 1,310 1,310 1,310 1,310 1,310 1,310 1,310 1,310 1,310 1,310,....................................................................................

Itnvegtuunta.............

soot 1,?Engie 834 634 34 834Geer 834 34 83 834

,....................................................................................

Totat Investmts 3,4S 0 a 1,6 0 @1,68 0 0 1,166 0 0

Net Camh Flow (,135) 1,310 1,310 (358) 1,310 t,310 (358) 1.310 1,310 (358) 1,310 1,310

financiai Rate of Return 44X

Incoae for Distribution(before Labor) 4,36 4,36 8 4,368 4*,38 4,36 438 4,438 4,386 4.368 4,36 4,368

Shere for 80at Crew 3.,0 3 3,01 3,05 3,058 3,08 3.058 t,05 3,058 3,0 31,058 3,0 3,08Shae for oe:t Or 1,310 1,310 1,310 1,310 1,310 1,310 1,310 1,30 1,3o1 1,310 1,310 1,310

Crow Cepoaltf on:Best Owr ICrew 4

Average, I pe Crew hr 7 74 7667 766 76 7 764 766 76" 76 7

Financing

go1 ty 669 0 0 334 0 0 334 0 0 334 0 0Lown 2,75 0 0 1,334 0 1,334 a 0 1,334 0 0

Oebt service Covrag.....................

Irc to Uat OwnebeforeODebt Service 1,310 1,310 1,310 1,310 1,310 1,310 1,310 1,310 1,310 1,310 1,310 1,310

Debt trvfce n67 63 672 9a "I 35 61 461 35 661 651 35....................................................................................

Incas to Soot ineraie Owt Srwvice 638 68U 4UI 313 313 95 660 660 96 660 68O 35

Oet Sewvice Cowsrage Ratio 1.9 1.9 1.9 1.3 1.3 4.0 2.0 2.0 4.0 2.0 3.0 4.0

FILE NAKt /p9VMV

02//91 09t IS...........................................

* 69 *

Table *

vIle PROJECT 1A 1Lan Uaa

(I)

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

YsM: t 2 3 *6 7 8 9 10 11 *2...... .............................. ............

Larifts (Tom e) 4? 4 47 4? 4 47 4? 47 47 47 7 4?Total Uae lv"w 23,129 2.1i9 3329 2n,129 2,129 25,1t9 23,129 n,129 2n,129 non29 n1,t2 23,12

Oeratiqn Costs (TO)...................

not S Lri@ants 9 4,992 4,99 4,99 4,992 4,991 4,92 4,° 9 2 4,99 4,99 4,992 4.992oot tr 2.313 2,313 2,313 2,313 2,313 2,313 2,313 2,313 2,313 2,313 2,313 2,313

Cooperatiwe tervice Charge 1,156 1,15 l,6 1. 1,16 11t6 1,156 1 ,6 1 ,156 1,156 1156 1, 16 1,156Neintonas nAd Repair 1,4 1,954 1,954 I,954 1,954 1,954 1,956 1t4 19S4 1,9S4 1.954 1,95Cooprativ*es social Secuity Charge 694 694 694 694 694 644 64 694 694 694 69 6%9Labor 4,66 45,806 4,60t 4,806 4,66t 4,606 4,606 4,606 4.SW 4.606 4,606 4,60

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

rotat oerating costs 15,917 15,917 15,917 15,91? 15,91? 1S,917 15.917 15.91 1n,91? 15,91? 1S,917 15,91?

Csh Ptow fIr Operations r1,u2 7,212 7.212 7,212 7,212 7,212 7,212 7,212 7,212 7,212 r,212 7,u 2......... .............................................................................

irvestments

Beet 12,196Enrines 6,271 6,371fe 1,004 1,069 1,069 1,069

.;.... ........ ..... W........ ................... .............. _

Total Investwts 19,536 0 0 1,069 0 0 1,069 0 0 7,360 0 0

"et Cash Flow (13324) 7,212 t,212 6,143 7,3212 7,12 6,143 7,132 ?,12t (131 7,212 .1213

FfnavisL Rate of R*turn ;S

trna foer Oistribwtlon(bofore Lbor) 12,020 12,020 12,020 12,020 12,020 13,020 12,020 13,020 12.00 13,00 12,08 12,020

uWr for Boat Cre" 4,66 4,606 46,06 4,806 4,606 4,606 *,06 4.606 4,606 4606 4.m 4.506here for *at er 7,212 7,212 ?,2t2 7 1212 7 1312 7,312 7,212 7,212 7,212 7,212 7,212 7.r12

Crew C4position:Soet 0e Icrew ?

Average tmo Wp erw mur ti eUr 667 67 667 ? 6 6 637 466 637 6W7 667 "67 6G7

financIng

quity 3,90 0 0 214 0 0 214 a @1,46 0 0Loon 15,629 0 0 855 0 0 W3 0 0 $,67 0 0

Debt eice Covera.....................

mom to SNot eierbeof 3a svc .12 7 Ot2 ? 212 tnO1 tall rtt1 7.n2 7,2nt 7,n2 r n12 mll ?2t22

after Oebt Semvice 3.400 3,410 t,'40 3,192 3,193 7,085 67,M 6,M99 7,00 5,51 57 5,70

Debt Service co_e age*tl@ 1.9 1.9 1.9 1.6 1.6 34.6 17.3 17.3 34.6 4.4 4.4 5.0

PILEI UWs $AlIM"0226/91 0W:S

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

* 90 '

Tab" 6

............ YD)

I.... .... ;;; ....ss** o¢ vv ^* *h * 66ss @* e ** v^*v *... .........VIM: t 3 3 5 6 7 r 8 0 lO tt 2

Lanfrns (?s/ Yeor) 192 292 392 292 9 29 m2 2 2 292 29* 2Lobster TrafCport croft/year) 50 50 50 so so 50 so so so so la

total Stes Reveo 1 ,66.65 16,65 166,56 1t.6 16,456 16.6 6 146.656 146,66 "AS66 16.6156 16,656Lowter Team. enef It CYo/Ton) 1.15 ISO I5 1t150 1.150 1,150 O 1150 1.150 1150 1.150 1.150 1.15t 1,150

operating Coss (Y0)...... se.*.*........

Putt & Lricants 26.130 26.130 26.130 26.130 26,130 26.130 26,130 26,130 26,130 26,130 26.130 26.130Ic* 7,500 r,5s0 7,500 7.5OO 7,50.0 7,50 ,s0o 7.500 7.5 7,5o0 7r,500 7,50Salaries 5,000 5.000 5.000 5.000 'S.00 5.00 5 000 5,0 5.000 S.0 S 5,000Social Altowaces 3,000 3,00 3.000 3,000 3.000 3.000 3.000 3.000 3,000 3.00 3,000 3,000VeeL$s Iwrc 2,000 2,000 2.000 2,000 a0 3,000 2.00 000 3, 000 3.000 *. 000 0 ,000Overheads 7,50 ?,50O o0 7.so ?:soo 7,500 ?.S0o 7.500 7,00 ?7.50i ?.0oo 7,Soonaiftesfe an Ssisf 28.506 25.506 2.506 2.506 28s506 2",506 26.0 2.50" 3.506 28.506 2.506 28,506Labw Inenives 13,053 13,053 13,053 13,053 13.05 13.053 13,053 13.053 13,053 13,053 13,03 13.053

....... .i.;;.... .... ................. .......... ..... .......... .... W ....... ...... ........ .... ........ ..... ........ ..... ........ ..... ........ ......

total Owating Costs 92,639 96, , 92.669 92,69 n6, "I9 9 9 92.639,93.689 92,- 92.6

Cash Flow from OatfS n,96 n73.9 n3.9 13,9" 75,966 3139 73,95 73.9" n,965 Mm n3,9 n73,9Invetnts.............

Seta, Unines, Gear 356,30Total~~~~~~~~~ ~ ~~~~~~~~~~... ........ . ........ ........... ....... .......... ....... ....... a... ....... a...... ....... 4 .......... ....... ........... ....... ...................... ...... ... ...... ...Tatalmvosists 35,320 0 0 0 0 0 0 0 0 0 0 0

Net COa l (282.352 6 M = n,98 3. 73.9 n, 73.90 73,95 MM n, MM96 n9.9 ns.9Finencial tate of Raturn 24

I for 0fstrlbition(bfore Lo) 87,021 07,02 87,01 67,1 6702 37021 87,021 87,021 87,031 87,021 5702 67.021

Sh* for Sost Crew 13,053 13,053 1,053 1303 13.OS0 13.053 13.053 13,03 13.03 13,013 13.053 13.053Sha for Sat Oww 73.9 73.90 75.90 73.95 73.90 73.9 73.906 73.90 73.96 73.90 73.90 73.960

crew caps1tion:Cewt 10

crew ihae 1/ l8 1n 0 1,6105 I 1* 8 1.855 1.o 1605 1,805 1,0= 1,005 1,= 105 1,05

~~~~~4.26X 0 0 0 0 0 0 0 0 0 0 0

Oat tav@ Covrg.....................

I an to Seat oawebeftOd SoboSevies 3.90 73.9" ?S,%0 1396 73,to 73,90 73.90 73,90 73.90 n,.o0 73.90 736,"

edit Service 30.930 30,439 30,439 30,63 9 30,649 30,439 30.63 304.43 30t,4M 0 01er to Sea or. ....... ...... ... 0 0 .. ....... .afterO d NW Serwio 43.53 63,52 4 3.3 63.56 43.5, 43,53,$U 4s.m 43,m 63*Si 73.96, n3960

0D Se1vice Cowva Ratio 3.4 2.4 2.4 2.4 2.4 2.4 2.4 3.A 2.4 1.4

1/ CBatAated as Satarie pus Labor tZnuiwS divided bY mr Of crM _nIS.

MI ESAIN IMTTIUU

0000. ................

* 91. .

Table 1nMIIpC or KIK

POtfTH IT S V! SA DEVE .OP!4KET PROJPCT

for Traded Fiph

I --- - -- --- --- - T- COSTS TO eOVeI ECONOMICfISH FROM P OY PRICES

l l ~~~~~~~~~~~~MARltET PRIC8 TO WRltJ MhRIET......[CATEGCRY SPECIES/EXPORTA8LE (Frozen) CUSS/ton) (Table 2) US WSton YO/ton

Yellow tin Tuna USs 1,075 (France)Supergrade Grey MuLlet USS, 1,800 (UK)

Spanish Mackeret USS 2,000 (Qatar)......................... ......................... *

Average US# 1,625 USS 280 1345 620......................... ......................... ............... ......... ........

Emperor US$ 720 (Spain)First Grade tonito USS no. (Spain)

Jack Mackerel US, 8S0 (Egypt)Grouper IUSS 1,200 (Portugal)

......................... .........................Average I US 8 USS 280 600 276

l .~~~.............. ...... :.....I-;...... ...... ;........ ........ ,, -........Sols USS 750 (France)

Sailfish USS 975 (USA)Second Grade Barracuda USS 8SO (France)

Rainboi rurwwr US$ 78M (Srngapore)......................... .........................

Averag USS 840 USS 280 560 258{ ~~~~............."T........... ......................... ............ ... ........... ...... ...... .

Rock Cod US$ 450 (Spain)jThird Grade Ray USS 350 (France)

Croaker US$ 550 (China)

Average US$ 450 USS 2801 170 781t 0Avrg US 40 #.................... 20..... ............... 10...........7Shark Fins Euro -arket USS 30,000 US# 8,000 22.000 10,142

......................... ............. ................... ........ ?!.........!... ......... ... ...... .Lobster Euro-Market USS 15,000 USS 2,000 13,000 5,993

Economic Fish Pgriem fir, Won-Traded Fish~

LOCAL PRICE COWVERSION PRICECATEGORY (Y0/ton) FACTOR |(Y0/ton). . .........Shark:

fresh 300 .67 201Gutted 450 .67 302

Sardines .67 34

FILE OANE: ECFISHRV04/02/91 17:23

* 92 -

bNZL16Table 2

REPUBLIC OF YEMENFOURTH FISHERIES DEVELOPMENTR gRJECT

Calculation of Economic Beach Landing Prices for Fish

SuDer. First. Second and Thigd Grades

Projected World Market Price (See Table 1) US$ X(Average, US$/ton, for frozen products)

Ocean Freight and Insurance US$ 90

F.Q.B. Aden US$ X-90

Port Charges, Aden US$ 20

Freezing and Storage, Aden US$ 100

Transport to Acten US$ 40

Receptor and Icing US$ 30

Total ROY Costs US$ 1

Beach Landing Price US$ X-280

Lobster and Shark Fins

Shark Fins (All calculations per ton):Whole, F.O.B. Aden US$ 30,000Collection, Drying 1/, Transport from Beach US$ 8°.Q°°

Beach Landing Price (wet weight) US$ 22.000

Lobster (All calculations per ton):Whole, F.O.B. Aden US$ 15,000Colleetion, Freezing, Transport from Beach US$ 2.00Q0

Beach Landing Price US$ 13.0CO

;.,' Includes weight lost in drying.

ANNEX 16Table3

* a,_ .

a' -I. ~.

X ~~~ , i 0^t-gsssss1

AS~~~ N

ig - X~~0

gij ' !5* ', 8l85s8, 5|128:

* .

,5$t, I4IWIUI f -II *om

aa t ati at *12 *, int *3 at ta at sunP(3.6 "UNs* LUiZ~~ ~~~S it t s a _ i it t is1"Was" pu

O~~~~~~~~~~~~~~~~ O5' Ouq uub suu** *su*"l

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

torns. oIIilsU§ " t ~~~~~~~~~............

...... ... ,.... ...... ....... .,. .. ,..., ..... ..... ... ,.... .. ,,.....,, ....... ... .,,,,,,..,.,|

2 It et 63 A J s *2 nz I (U_. S SU W140 ILL UL ILL IL U!t U2 1*t t2 IL! IL ILL ia )1 J~*

....... ....... ....... ....... ....... ....... ....... ...... ...................... .U U 9 wi 92 Zs U U wu ni "u t1-amb-p OW U1 1 3| *e ng g1 *W mmjsm e1 t 1--i$n5 21 Z8 21 ZR 25 21 21 2 21 -in"W PILI II tl LI fl LI II {L LI LI L i^1 ot 3t 01 3s 01 3s 3s 0 01 3s b'

262 262 26 26 26 26 262 262 26 26 2 (-Oe /Ml3J 1S21 II 01 6 I * * S 9 £ 2 £

51211Oww AV

=nMO 43 IbNO_. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ jW' .U~4~3. ~IWDIFOU- iuwTUR 5~I1UBIQ* 1WUL~~~~~~~~~o au ;PJfLU&mUU

wmrn E1MKHRR DSVVL,imTnm=3R

8goo.e RaUe of Return

lest 1 2 3 4 5 6 7 a 9 10 11 12 13 14 is 16 If Is 19 20...... ........ ...... ......... ...... ......... ...... ......... ...... ......... .. ...... ...... ........ .......-... ...... ......... ...... ......... ...... ........ .. -............ ............ ..... ...... ..........

_Urlls (U '066)..................

euwf. rtam moatt 1 307 2,0U 2,402 2,422 2,17? 1.633 `1461 1,341 1,211 1.076 94S 945 94s 945 945 945 94S 95 94s

Fmb.U- to loran d 10? 135 U12 184 206 227 243 263 261 299 316 K34 35s 372 0 46 429 46* ~~~~~ ~~~.

.. ...... a... .......... ... ...... . ... ...

toutl m fIt 0 3 2,1n 2,37 2.5 2,361 1 69 1.6 1,S4 1,474 1,357 1,24 1,2$A 1,279 1,296 1,317 1,3 1,353 1,374 1,391............ ..... ............ ..... ............ ..... ...... ........... ........ ...... ........ ...... ........ ...... ........ ...... ........ ...... ........ ...... ........ ...... ........ ...... ...... ...... ......

tm lla PSt i11a ta 11.........................

blwtsmc ofviiop uaeilltlos 2 27 70 90 93 9 96 96 96 96 96 96 97 97 9 96 99 9 99

amu f6qd 9g lei 19 129 130 130 130 130 130 130 130 130 130 130 130 130 130 130

loS qoiw as 0 2 12S 7 199 222 223 226 226 226 226 22 22 2 227 228 6 229 229 229............ ..... ............ ..... ............ ........ ........... ...... ........ ..... ...... ...... ........ ...... ........ ...... ........ ...... ........ ...... ........ ...... ........ ...... ...... ...... ......

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

wills" aeiitios S5551.3 I676 3631 9 0 0 67 0 0 S 0 30 5? 0 0 la 329

ob. * a"oa u 7561 2w6 60 60 6 0 40 60 216 0 40 60 60 60 60 60 G0 60 60

ituamt fualltiss 1no 262 256 15 'A 4fUS LSAo 1muom_ 51S U2 234 99Irolas 6 5o )4 9 6 3Tet AssIt. a Cood 420 499 449 22 2S 136 S4

Iot.13. at_ t t.299196257I 2971 1. 769 367 116 .0 127 216 0 6 60 340 117 60 65 40 70 389,........ .................. .................. ........ ........ ........... ........ ...... ........ ...... ........ ...... ........ ...... ........ ...... ........ ...... ........ ...... ........ ...... ...... ...... ......

mi uuuit fno .12991.320 (251) 962 1.616 1m 1496 1,402 1,231 1,032 1.131 953 95 712 952 1.029 1.042 1,064 1.07S m............ smm uuu uss. assau... au as. .53.am,.£333 333 85353582 528 £3333332 sum U&Smsana ugg

ECOUIWIC "toor OKim 312

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

1/ lnr_mtt Project oit* tfrofm Sbts a totat ewt comb benf Its of the boat fleet In souther 0 (foint PA) with the poject - witheut the project.

fet casr brtits of twe bat fleet n satl revew - prating costs - investments in boats egines and ear.

fIlu SPis gum9103/04/91 IsBI

RIuPulJtC OF Y1MENhI FtSINEUES O ELOI PROJECT

Cash Flow Pro lations: Kukalla C&qRjAtUe 1/(YD '000)

1 2 3 * 5 4 7 9 II 13 IS 37 19 20

(I) ied (S) Sege 21 14? 147 150 154 "5a 361 160 SS 15S t55 1SS 155 lSS 15SN" tres o ragIon 3I 4? 4? 49 S0 51 S2 S2 50 S0 50 50 50 SO 50

(2) lQeretim St...............

uwet sesulep 4? 4? 49 50 5t 52 52 50 S0 50 S0 S0 50 S0ask* Vilag fcilltle 2 2 2 2 2 2 3 3 3 3IS am qplpmt ? a a a S a a S a a

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

tow qmatgt cests 1U5 33 33 136 S4 I50 149 I" 146 14 14g 149 149 149

4) tC Pico tfem q rtla59 59 62 62 63 62 S? SY 5? 56 56 56 56

(4) iw Iat Cat

tlied Summed.: Cli i*. (Ped Vatitl.) 43 43flied imet.s fAim. o EmOrj e 29fied It.s SoI1_Mt 54 54 f4

1t1 I__t O O O S t 0 0 43 3 0 0 0 0

ff et C" ePtu)-44 5 5 42 24 (64 63 62 2 5? 5i a 56 56 56...................... ....... .......... ... .... , ....... .......... ....... .......... ....... .......... ....... .......... ....... ......... ....... ...... ... ...... ... ................ . ..*... ... ..... ...

. *5* ..._t t I I I I I 1 2. 4 34 3 3 a 0 N

C) UL 1ftf wke o__o ftto 0J110l 11I W.} .- 0 lt6* 1.B0 lU11.O 2J l.t l.t 1.7 t.A 6.r .....................................

1/ Ow ult t_le am mubd fum thi inhale. as the era Mot retafned as trewmby toe -owe bl e trmfwnd to h Iawbmt toee pa Y. 4s.

2/ t a m " m h Md t full atch f 1m tr* te cospenelve. vemme fr both th socist all itry .dSt 8ra1. Sargew pet 2.35) we atited an a t .7ofM futl catch value.

SI It is _ed tht Ido too wbeA. to be estlle d wiltt r_dt In nvem etuivmlaot to 32 of 70M of fult catth value.

flu 110110111 Ms

Owl" 46s2* I

imUIrrl FtsuuhIR DISVEWIDI FIJCT

Cash flow Ptojo1etitoa Ehihe fgssoattVO I/

on. t (ID '000)

...... ......... *.....................................................................................................................................................

lOU: 1 2 3 * 5 1 7 9 tl 1i IS 1 19 20

(1) fMSmw tap U32i 1u4 US 141 143 14 I" I" 138 138 138 138 138 - 138 3Ot rew frIn sP-l zo 3I a St2 53 S4 54 5S S4 52 S2 S2 S2 S2 S2 52........................

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

slat s_ t S 53 S 53 S4 54 Ss S4 5 52 S 2 52 S 2 52kiM W Vitl lesiSlIt I I I A I I I 1 IguamIqAfmm 16 16 16 16 16 16 t6 16 16ea_ nf n n n n n n n n n n n n n

6". A m on" 15 I2n 12 IV 145 1n 14? 142 1t42 142 142 142 142

3 )Cmb Utl v. 9_ oE sms is l t n 56 54 47 47 47 4? 4? 47 47.................

44 sI -I Cast............... .

Plad 1.g clvii 1 (Fred fesll.) 32 SIfl. sInt.s $Al1.a. d40a 21IbM 11.s Godmml SS

lo s aszumM t 0 O 0 0 32 9 0 0 5 0 0 0 0 S

(st 006 ftW 431-44) a 6? is 30 (39) 54 4? 4 4? 47 4? 4? 2...................... ....... .......................... ....... .......... ....... .......... ....... .......... ....... .......... ....... .......... ....... .............. ........................... ....... ...........

(6 l_U 0t swwl I I 1 1 6 *5 25 24 24 24 20 0 0 *

chL uthrvl.sCewapsU.(SM(6) *6.4 45.0 06.6 4.9 12.5 2.2 2.1 1.9 1.9 1.9 2.4.................. *...............

b _ lbs coel_me b* kwm O . lb s srn wa e mtCs ars.14).

V it bssinid _bM a o lbs "S* flowS ltse l_ ew co_p lrs. 4_vawe trf botb lhe 33 Social sew4ty an53 bevIes g (as pw 2.35) wre e*gts_d m a ba et Mf N1B catcs vow.

36 It Is _usd Ib lb fee A ts be 11i _d will rU m in ee _v "e valt to 32 of e ot hAIl cadt valve.

Flu Ml t mmt

5119 1:5 I

EFJLc or iI

vlim mmmm Cash Pla Pr~~~o1octi n Ding/Al Newt ITwtel. Al Oaru 1111kielmve I/(ID 000)

smt 1 2 3 4 S 6 7 9 11 13 1S I? 19 20

t1) 11d (E COMO2/ 81 V 93 100 105 10t S l0 107 10 10? 10? 107 10? 10? fer 3/ 30 32 35 36 39 40 41 39 35 33 33 Si 2J 2n

........ ......... *

2) qsti Cast......................

Sato llss t 30 32 35 36 39 40 41 S9 3S 33 33 31 28 27f Iist fcilitie I 4 4 4 4 4 4 4 4 4 4 4id sm 20 21 21 21 21 21 21 21 21 21ol_ehssA 7i is is 7678 76 is 7s is 78 78 78 is 78

Tots qipretir. Cests 1 110 1 119 141 143 143 141 013 136 136 134 131 1SO

(3) Crltfofrom "at lmw 3 8 14 to 4 5 6 4 4 4 4 4 4 4.........................

(4) t t Cast

Utasi Ismet., CivIl Ihibs (Oed. tait.) s eSFxed I_t.s Jk<l. of u. S0.#Sla I_t.s Euiu U2 to 10

Tats lawasmmagast 00 0 0 0 0 0 1 0

S) 0s tab flew0)*(4) (11) (25) 4 5 6 (6) 4 4 4 4 (6) 4....... ........... ......... .................. ....... .......... ....... .......... ....... .......... ....... .......... ....... .......... ....... .......... ....... ...... ... . ...... ..... .... ...... ... ...

to towntai ltSsevice 2 a a a a 2 5 7 St 5 Sr St 2 0 0

(7) L Dt srko h ae as (3/6) 4/ 1.1 3.2 5.6 7.6 1.5 2.1 0.1 0.1 0.1 0.1 0.1 2.6.....................................

V Sesemu ton Wr rnlub ter this el_ysie. as they we Mt retlaed a rmsby the eosstw Iva trantsfered to toe Swarn (see paso 7.14).

2 It is as_md tWt M1 of th futt ctoe fluA through the coative. Stveme from both thew 3X socxelt sm ty wi52 Sevic Charg (ss pwn 2.35) are sti_ti an a bsen of 70 full catch valut.

V It is _atm tdot the fee sdmse to be etaidwd wilt rsult In ravems opIvatent to 32 of 70X ' full catch wlue.4/ Ibb amlysis d_m lnility of the coaperotiw, mab present sasqztins, to uset debt seice obligeien. this is

pinclpelly 6 to bich overhed costs d ich re oA of line with te scale of protlon. b ppopd osedrstr_stualu #plw, ratlficatli of which is a coditlao of credit effectlvenss, wiii uilem thi Issue.m

flua _s "U_w

WVUQR EIIN UR bRvaNnmU

us"u "on" CA2h VIeW Preiae%$2=! WmaSew (tea. Musa1nahl fMoeerstt V/

a-w (TOD '0)

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

16 ,,,,,,!,,,,,,2,,,,,,S,.,,.S,,.,,.s,,,.,,*,,,1 2 3 4 £ 6 7 9 I1 13 IS 1? 20

MI fi (on ues 2II MR 474 446 420 31 MG 340 308 36 305 306 3 06 3

wsom frmt_rt1um31 74 116 161 15 146 136 128 116 116 16 11t6 116 116 116

so"it l 4s a4 40 40 1

40 40 * a

,.................... ..

42) toebt t- sts

ksIstmmw1t~ 14 1S6 1? 1S? 14U 136 128 116 116 116 116 116 116 116

lbAvtUhg Isliee 3 1 1 10 10 10 13 13 t1 16 16 14 14

go am GOOPMA 56 56 S6 S6 56 56 56 56 S6 56 56 56

OWN%"& d4 54 S4 5S4 54 4 54 54 S4 54 54 54 S4 S4

few *ewsl cuw IN 3 3 2731 263 254 243 234 234 23 23? 23? 23? 237

13) tub flow tfe spest1as 14 41 330 329 3n 293 26 20 230 30 227 22? 2 22?

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

z } l _ unt

I

............... lItd huem.2 Civil Vts (fed. rusiL) 33 333

find 1_t.t AlltWia of F 94 a

Isleluestinusctes 3 9 0 0 0 a 0 0 0 00 0 0

5 Rt Ceth n a") V4A (31n 3V 31 M 25 230 230 210 22? 22? 22? 22r

(6) tLmit am SW"" I 7 7 7 to W 165 a0e r r 0 41 41 0 0

(1n Uf Svo_ Q1 zos eV. stti s/ 204 5r. XI* 4SX .9 l-t l.6 1.1 1.1 1.1 SAf S.Av

.. *...................................

1/ ss are ltuu lene this salyss, taews we no retaed r s

Am a&& sIs b* reut er to dw Smen*e tse Wu 7.14).

at itisaaummd t _ St the full esock fiee d*'im die .est (us. Seemxs frew boto. 31 soc ilt sulsd

is sservk Oa ( am pre .)LM ws estiuted an buer of Y0U full esteb waive.

St It Is -eed th #so f dueA. to be tAllAed mitt tedt In reveNe equvent to 3 of 70 of full catchb vue.

4, *semdatiem rt r o* 40 1 NOe-us ssAmed srsmp esooaM of 2 dws, wtith a er of V00.5 per dn. put fiidtnl.

fite No t

aOMk

66/ 1t2519166:55

EPIJBLIC OF YEMFORhn FiSHERis DFVRLPN ,QW! =

Cash nlow Pgactions Savtt s Cooerative 1/

Vilepe _ (YD I 00O)

.E.R..1 2 3 4 5 6 7 9 1t 1 3 1S 17 19 20

(1) fixedS) 0 Cares 2/ 49 51 55 61 6 71 2 71 TI 71 n 1 n n t 7n

tens I 18 19 21 23 a5 27 2n 26 24 23 22 20 a 17

.........

(2) Operating costs...............

Social Sawitv 18 19 21 23 25 27 27 26 24 23 22 20 is 17

fisnt Villa" facilitis 0 0 1 1 1 1 1 1 1 1 1 1 1 1

* sintanu e Sek Eq npast 8a 8 8 8 a 8 a a a a a 8

o0verhe 38 38 S8 38 38 38 38 38 38 38 38 38 38 36

Total opersting Cots S6 S? 6 70 2 14 74 is 12 0 69 67 6S 6

(3) Cash ftem frm pst§ien 11 12 8 13 19 24 25 24 24 24 R 24 24 24

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

(4) Irtsnt Cast a

...............O

Fised lwst.s Civitl {h (Prd. Vsfol.) 38 38fixud lnest.: AIloctlen of lna. 19fixeud tawast.: EqipdpaM 41 3 3

tot tInvstmnt cst 0 38 0 0 0 0 3 03 0 0

(s5 ) t eashFlte( M)) I4 ^ (26) (90 Is 24 25 21 24 24 21 24 24 24

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

(6) Lowtekbt Service 1 I I 1 22 22 22 21 21 21 0 0 0 0

(7) LT Debt service Cmwsg Ratio (3)1(6) 13.8 1S.7 10.0 17.1 0.9 1.1 1.1 1.1 1.1 1.M 51.2 S1.2........ ......................

I/ oswnmat taxes ae ectuied fra this analsis, as they re not retained as uby th coeperst iwo but tranfeorrd to the Goverment (see par 7.14).

2/ It Is asami t"St M of th futs tchem1 thmom the cooperative. Rewma from both the 31 Social Secwity ad

St Sevice chal (see pa 2.315) ar estimted on a base of 7M futl cattA vale.

3/ It is assued tOat te fee sbeo*eA to be estebliAd will result in revems eaptvaent to 31 of ?QS of fuut catch value.

VIE iE: _s 1W13 090

* 101 e

ANEEX 18

REPUBLIC OF YEMEN

Selected Documents Available in the Project File

1. Working Paper: Number of Cooperative and Private Fishing Boats inPDRY - 1988Estimated per Capita Fish Consumption

2. Working Paper: Project Preparation Report by FAO/CP, March 9, 1989

3. Working Paper: Assistance to the Development ot the ArtisanalFisheries Sector, by MacAlister Elliott andPartners, November 1988 (TCP/PDY/8852-lDDCB).

4. Working Paper: Vessel Consultant's Report, by Cyrus Hamlin, N.A.,December 12, 1989

S. Working Paper: Short Term Consultancy Service for Civil Works, byNiels E.A. Bryanne, Porteonsult ConsultingEngineers, February 1990

6. Working Paper: Land Transport Appraisal Report, by StewartWaddell, Halcrow Fox and Associates, December 1989

7. Working Paper: Contribution of the IFAD Women/Fisheries Consultant:to the Fourth Fisheries Development Project, byP.C. Spliethoff, International Agrarisch Centrum,December 1989

8. Working Paper: Consultant Anmex, IFAD Institution/FisheriesConsultant, by Nicholas Janman, December 12, 1989

9. Working Paper: Pro4ect Cost Estimates

10. Working Paper: Financial Statements of Fisheries Cooperatives1986-88

11. Working Paper: Projected Cash Flows for Fisheries Cooperatives

12. Working Paper: Financial and Economic Projections for DifferentBoat Models

13. Working Paper: Project Economic Analysis

IBRD 22548

45- LOCATION oF VILLAGE FACIlITIES

48 ~~~~~~~~~~~~~~~~~~~~~~~~~~CURRENT PROJECT

REPUBLIC OF YEMEN m0 SLJIvIoWPRUSKI l

-~ ~ ~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~h- GOVER * NTORATE CAPITALSFOURTH FISHERIES DEVELOPMENT PROJECT NO,oe,e ® OOERNORATE CAPITALS

P, SRTS

ToZol. n -$ PRI.SARY ROADS\ Thorno f _ SECONDARY ROADS

TRACKS

S h j ._ - ) __ VWADIS

GOVERNORATE BOUNDARIES

' , INTERNATIONAL BOUNDARIES

Z,eeokh .- a v

| 4 ) > 1 < \ - / | G"wA - N Gh F -

Gh..f ThTf / hee e, h '" peee by

Safi, ~~~~~~~~~~~~~~~~~~~~~~~~~~~fe te ei etV-. 9-

B~~~~~~~~~~~~~~~ils <fiha t Xbz[of n- 1

i=~~~~~~~~~f -Ti-l. o 2,5 ,S , 1,00, t50~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Nehv Z. e,eknan eete.e,eo~fe,te

< \Qt Ror./U-hn Rrn Imror 1llz . /~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~tten~Itteee he SR, dn

AJIoi<Jl Moh.d4 Ai ; , - he lnteeei j tr-

RED SEA A,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~e hA 'o i ,etiei nte

Q-to~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~a'ef h'FE/ aeeadte

T, ~~~~~~~~~~~~~~~~~GULF OF ADEN

Ah-,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~2

a-PI'~~~~~~~~~~~~~~~~~~~~~~~~~~~~~MRH49