Report No. 339a-JO FILE CoPY Northeast Ghor Irrigation and Rural Development Project Jordan May 10, 1974 EMENA Projects Department Not for Public Use Document of the International Development Asso(iation Thi. report was prepared tor official use oniv hy the Bank Group It may, no; he pubihshed quoted or tited without Bank Group authorizatton. The Bank (,roup do,u nout ar opt responsibility for the a(-uracy or completeness of the report. CURRENCY EQUIVALENTS US$1 = JD 0.3215 JD 1 - 1,ooo fils = US$3.11 JD 1,000 = US$3,110 JD 1000,000 = US$3,110,000 WEIGHTS A£D MEASURES 1 millimeter (mm) = 0.039 inches 1 meter (m) 2 = 3.28 feet 1 square meter (i ) = 10.76 square feet 1 cubic meter (mP) 3' = 1.31 cubic yards 1 million cubic meters (Mm 3 = 81C.7 acre feet 1 cubic meter per second (mi /sec) = 35.31 cubic feet per second 1 liter per second (1/sec) 0.035 cubic feet per second 1 kilometer (kmi) 2 0.62 miles 1 square kilometer (km ) = 0.386 square miles 1 hectare (ha) 2.47 acres = 10 dunums (dn) 10 dunums (dn) = 1.0 hectare 1 kilogram (kg) 2.205 pounds 1 metric ton (ton) = 2,205 pounds ABBREVIATIONS AGC = Agricultural Credit.Corporation AMC = Agricultural Marketing Organization FA = Farmers Association JCC = Jordan Cooperative Organization iVC = Jordan Valley Commission N?C = National Planning Council NRA = Natural ResourcesAuthority FWD Public Works Department FISCAL YEAR January 1 - December 31 NOhRT!lL.AST C4OOR IRRIGATION AMI) PUR1AL DJEVELOPMENT PROJECT Table of Contents Page No. SUA'RY AND CONCLUSIONS .................... ii I. INTRODUCTION .................................1 II. B,ACKGROUND ................................... 2 Countrv . .................. . 2 Agricultural Sector . .................... 2 III. Tti;R PROJECT AREA .. 3 Location ......... . 3 Climate ........... , .......... 3 Topography and Drainage .................... . 3 sooils .....* 4 Population ... 4 Land Tenure and Farm Size ................... . 4 Transport and Communication ................. . 5 Electricity .................................. 5 Domiestic Water Supply ..................... ... 5 Present Land Use and Yields ............ ....... 5 Agricultural Research and Extension .......... 6 IV. THE PROJECT ........ .. ... . ........... . 6 Description . . ........ ................. 6 "ain Works ..............**................ 7 Minor Works . 9 Water Demand, Supply and Quality .......*..... 11 Water Rights ..... .. .. . ... 12 Construction Schedule.. ... 12 Cost Estimates . . 13 Financing . . 15 Procurement . . ....... 15 Disbursements . ..... . 16 Land Acquisition . . . 16 Environment and Health e.. 16 This report is based on the findings of an appraisal mission which visited Jordan in September 1973 consisting of Messrs. M. Altaf Hussain, Sadiq M. Niaz, Michael Raczynski and Harry Walters (IDA). Table of Contents (Cont'd) Page No. V. ORGANIZATION AND MANAGE-ENT ................... 17 Jordan Vallev Commission . ...................... 17 Project Execution, Operation and Maintenance.. 18 Consultants ................... .. 19 Liaison and Advisory Committee ................ 19 Farmers' Association . .................... , 19 Credit ........................................ 20 Marketing . . ........ 21 Agricultural Extension, Research and Training. 22 Accounts and Audit ... .... .. ...... 22 Recovery of Project Costs ................... 22 VI. ECONOMIC EVALUATION ......................... 23 Production .. 23 Market Prospects ............................ 24 Prices ........................................ .. 25 Farmers' Income .. 26 Economic Benefits ......... O.. 26 Economic Return ............................... 27 Employment .................. 27 X'II. AGREEMENTS REACHED AND RECOMMENDATION ........ 27 Agreements Reached ..... ...................... 27 Condition for Effectiveness ............... ... 28 ANNEXES 1. Agriculture 2. Land Tenure and Farm Size 3. Description of Project Works 4. Assembly Markets and Packing and Grading Stations 5. List of Equipment and Materials 6. Organization and Consultants (Chart 8371) 7. Water Demand, Supply and Quality 8. Schedule of Construction (Chart 8379R) 9. Cost Estimates 10. Schedule of Expenditure 11. Estimated Schedule of Disbursements 12. Credit and Marketing 13. Farmgate Prices 14. Farm Budgets, Project Charges and Farmers' Income 15. Economic Rate of Return and Sensitivity Analysis _ _ _ IBRD 10746R SUMMARY AND CONCLUSIONS i. Jordan has an area of 190,000 sq. km and a population of 2.7 mil- lion, increasing at a rate of 3.3% per year. Its agriculture accounts for about one-fifth of GDP and is the largest production sector in the economy, providing one-half of exports and employment for one-third of the labor force. Despite this, agricultural commodities mainly zereals, meat, fruit and vege- tables are imported annually to meet the nationi's needs, and the agricultural trade deficit is currently over US$62 million. ii. Irrigation is necessary to increase agricultural production; both land and water resources are available for its expansion. At present only 25,000 hectares, or less than 10% of the 350,000 hectares cultivated, are irrigated, but by value their produce accounts for 70% of the agricultural production. The national Development Plan (1973-75), and within its frame- work the three year Development Plan for the Jordan Valley, emphasizes the development of irrigation to increase production, narrow income distribution margins and provide the rural development facilities. The proposed North- east Ghor Irrigation and Rural Development Project would contribute to the realization of these objectives. The Government of Jordan has requested an IDA credit to help finance the project. iii. Bank Group lending to Jordan since it began in 1961 consists of 8 credits totalling US$40.3 million (net of cancellations); two for agricul- ture, three for water supply, one for highways, one for education and one for power. Except for the latest water supply and the power projects, on which it is too early to report, the implementation of projects and disbursements have been generally satisfactory. iv. The project would develop 7,700 hectares of which about 86% is already gravity irrigated. The currently unirrigated 14% (1,040 hectares) together with 1,720 hectares of the currently irrigated area would be pro- vided with gravity-powered sprinkler irrigation. The project would also provide facilities in the form of domestic water supply, health, education, communications and community development to benefit the project population of 25,000 persons. To serve 2,760 ha by sprinkler irrigation, the project works would include two small diversion weirs, 55 km of primary and secondary pipe- lines and a distribution network.< To improve production on the existing gravity irrigated area, the project would provide land leveling of about 3,000 ha and tile drainage of about 520 ha. In addition the project would include 30 km of farm roads, seasonal and medium-term credits, two assembly markets and community development facilities consisting of construction of treated water supply facilities for 10 villages, of three health centers aad expansion of an existing one, 150 schoolrooms for preparatory and primary classes, a vocational training center, 10 community centers and improvement of a 60 km of roads. v. The project would be executed by the already established Jordan Valley Commission (JVC) with the help of relevant government agenci-es. The irrigation works (43% of project cost) would be constructed with the assist- ance of the Natural Resources Authority (NRA), the agency responsible for - ii - irrigation. A consultant firm would assist JVC and NRA in the design and construct:,.on supervision of all irrigation works, which would be constructed under one international contract. Specialist assistance in marketing, grading and accounting would be provided to ensure efficient marketing of produce. vi. Total project cost is estimated at US$17.4 million, of which the foreign exchange would be US$9.1 nillion (52%). An IDA credit of US$7.5 million would finance 82% of the foreign exchange requirement. Government would finance the foreign exchange gap of US$1.6 million and 92% of local costs (US$7.6 million equivalent) either under bilateral assistance arrange- ments or with its own resources. The remaining 8% of local costs (US$0.66 million), representing 20% of farm development costs, would be contributed by project farmers. Construction would be started in 1974 and completed by 1978. The cost of the project, excluding contingencies, that cotild be tendered, would be US$13.5 million, of which works, equipment, supplies and services costing about US$8.9 million (66%) would be procured following international competitive bidding. The remaining works, of small magnitude and scattered over tine and location, would be executed following local competitive bidding. vii. At full development in 1983, the project would increase annual pro- duction of main crops: citrus by 13,000 tons, bananas by 2,500 tons, vegetables by 69,000 tons and cereals by 7,000 tons. Most of the incremental production would be domestically consumed; however, some top grades of the early vegetables and citrus would be exported. At full development by 1983, gross value of an- nual production would increase from the present US$9.3 million to US$17.4 mil- lion. Annual gross foreign exchange earnings from the export of a third of the project's produce are estimated at US$6.0 million. The economic rate of return for the project is estimated at 24%, At full development the per capita income of sharecroppers, representing 60% of the farmers, would reach about ; 100 to JD 125 (US$310 to US$390), i.e. slightly above the projected national per capita income of JD 97 (US$300) in 1983. viii. The project would be suitable for an IDA credit of US$7.5 million on conventional terms. The borrower will be the Government of the Hashemite Kingdom of Jordan. JORDAN Northeast Ghor Irrigation and Rural Development Project I. INTRODUCTION 1.01 The Government of the IHashemite Kingdom of Jordan has requested an IDA credit of US$7.5 million to finance 82% of the foreign exchange cost (in- cluding physical and price contingencies) of the Northeast Ghor Irrigation and Rural Development Project. The 1972 Bank economic mission observed that the Jordanian agricultural sector offers the most productive development potential and that water and agricultural land remain the most important of the country's exploitable natural resources to be developed for additional production, exports and employment. Since there is little possibility of ex- panding rainfed cultivation, the only expansion possible is by increasing irrigation of the cultivated lands. The country's three-year development plan (1973-75) emphasizes the development of water, improvements in infra- structure and expansion of social service facilities. The proposed project would involve agricultural and rural development of the northern third of the Jordan Valley (East bank), while the remaining two-thirds would be developed with assistance from other donors, mainly the Kuwait Fund for Arab Economic Development, US-AID and the Federal Republic of Germany. It would not only conform to the objectives of the Plan, but also aims at reducing the constraints to agricultural development as identified by the 1972 Bank Economic Mission, lack of streamlined organization, want of greater attention to research and extension, inadequacy of credit and a weak marketing system. 1.02 Bank Group lending to Jordan began in 1961 and to date the Associa- tion has made eight credits totaling US$40.3 million (net of cancellation). The first four credits-two for agricultural credit (US$6.0 million) and two for water supply (US$4.0 million)--were made before 1967 when war and local disturbances interrupted Bank Group operations until 1971. All of these credits have been fully disbursed. Four additional credits have been ap- proved since mid-1971: one for a highway project (US$6 million in 1971), one for education (US$5.4 million in 1972), one for power (US$10.2 million in 1973) and one for water supply (US$8.7 million in 1973). With the exception of the last two credits, on which it is too early to report, progress has been satisfactory. The proposed credit of US$7.5 million would be the ninth credit made to Jordan but it would be the first for irrigated agriculture and rural development. 1.03 This report is based on technical feasibility studies on Jordan Valley development prepared in 1969 by consultants Nedeco and Dar el Handasah, supplemented by subsequent studies by the Jordan Valley Commission (JVC) and the FAO/IBRD Cooperative Program (1973). Several additional studies and data on water resources, drainage, marketing, credit and other related aspects were - 2 - also available for use by the mission. The project was appraised in September 1973 by Messrs. M. Altaf Hussain, Sadiq M. Niaz, Michael Raczynski and Harry E. Walters who also prepared this report. II. BACKGROUND Country 2.01 Jordan is situated in the arid zone of the Middle East, and covers 190,000 km2 of which about 6,000 km2 lie on the West Bank of the Jordan River now under Israeli occupation. The population of Jordan, as estimated in mid- 1973, is 2.68 million, of which 770,000 live on the West Bank and 1.91 mil- lion in the rest of the country. The population growth has averaged 3.3% per annum since 1961. The Government is a hereditary constitutional monarchy with a bicameral legislature consisting of Notables appointed by the King and a Council of Representatives elected by male suffrage. Executive power is vested in the King who appoints the Cabinet and the Prime Minister. 2.02 Prior to the 1967 war the economy was growing at about 8% per year. The growth in per capita GNP averaged 4.7% between 1961 and 1966. This trend was interrupted by the war, which resulted in the loss of the West Bank. While the West Bank represented only 6. of Jordanian territory its loss resulted in a 35-45% drop in GNP and a substantial reduction in tax revenues and foreign exchange earnings. In 1969, however, the economy partially recovered, largely due to the exceptionally good climatic condi- tions which enabled increased agricultural production. Civil disturbances in 1970, however, halted this trend, causing the economy to fall to the 1967 level. The Government therefore prepared a Three-Year Development Plan (1973-75) in mid-1972, with the objectives of increasing GDP by 8% annually, creating 70,000 new jobs, narrowing income discrepancies and reducing budget and trade deficits. Agricultural Sector 2.03 Agriculture accounts for one-fifth of GDP in East Jordan and is the largest production sector in the economy. It provides the main source of livelihood for one-third of the labor force and nearly one-third of the export revenues. The principal agricultural exports are tomatoes and citrus. Although agriculture is an important sector it does not meet the nation's needs of several agricultural commodities. Food grains, mainly wheat and rice, meat and dairy products and fruit and vegetables are the major import commodities. The trade deficit which can be narrowed in agricultural commo- dities is currently over JD 20 million a year. - 3 - 2.04 The most important exploitable resources in Jordan are land and water. Out of the total area of 19 million ha, only 350,000 ha or 1.8%, is cultivated, More than 90% of the cultivated land is dependent on limited and irregular rainfall. There is little possibility of expanding the area which can be cu]tivated under rainfed conditions. Most of the 25,000 ha of irrigated land, which accounts for 70% of agricultural production, lies in the Jordan Valley. The Valley has land and water suitable for expansion of irrigated agriculture. In order to accelerate its exploitation, the Jordan Valley Commission, with wide administrative and executive power, was set up in 1072. The Commission, as a starting point, prepared for the Valley a Three-Year Development Plan (1973-75) within the overall concept of the National Development Plan. The Plan emphasizes water development; and the proposed project prominently figures in it. III. THE PROJECT AREA Location 3.01 The project area covers 7,700 ha and is located in the northern part of the Jordan Valley. Its boundaries are the Jordan River on the west, Wadi Yabis in the south, the Yarmouk River to the north and the foothills of the Eastern high Plateau to the east. Climate 3.02 The climate is Mediterranean with characteristic hot, dry summers and moderately cool, wet winters. RAinfall averages 360 mm, about 90% of which falls during November to March and 45% in December and January. Aver- age monthly temperatures range from 14WC in January to 31C in August. Monthly mean maximum and mean minimum temperatures are about 120 above or below these values. Frost occurs occasionally in January. Clear skies are typical. Sun- shine hours range from 54% in January to 90% in August. Winds are light to moderate and predominantly from west to southwest. High temperatures and dry air in summer as well as cool weather in winter are constraints for certain crops. Climatic data are summarized in Annex 1. Topography and Drainage 3.03 The project area is subdivided into two natural zones, the Zor which extends along the Jordan river and the Chor which includes the side terraces. The Valley has a general slope of 1% from north to south. The project area is cut by three wadis: Arab, Ziglab and Jurum. The cross slopes of the Valley vary from almost 0 to 1% in the Zor area, 1 to 3% in the Lower Ghor and 2 to 5% in the Upper Ghor. The transition zone between Zor and Ghor is irregular and only a very small part of this area would be irri- gated by the project. The project area is drained, in general by the wadis. The irrigated area below the canal is served bv surface drains, some of which do not function effectively. -4- Soils 3.04 Soils on the Chor terraces are of colluvial origin, moderately fine-texttured with a depth varying from 90 cm to several meters. Isolated spots show heavy textures with restricted drainage. The Zor has deep, al- luvial soil without profile development. Textures are medium to moderately coarse. According to UTnited States Bureau of Reclamation (USBR) standards, about 93% of the soils in the project area belong to Classes I and II and onlv 7% to Class III and as such are suitable for growing a wide variety of crons. Salinitv and alkalinity hazards are confined to isolated patches of restricted drainage which add up to 725 ha. Subsurface drains are being installed in a part of this area. Population 3.05 The population of the project area is 25,000 persons, of which one- third is born in the area. About half are refugees from Palestine and the remain(der immigrants from other parts of the country. The city of North Shulneh, located within the project area, is the largest settlement in the Jordan Valley with a population of about 7,700. Two other villages in the project area, Waqqas and Mashare, have populations above 3,000. 3.06 Approximately 53% of the population is below 15 years old which is close to the national average of 55%. The male and female population is evenly divided and an average size household has 5.7 persons of which one- third are of working age, with a potential of about 62.5 man-days of labor per month. 21% of the population is of school-age (5,250 children). This familv size is smaller than the national average but the working age group is larger because some non-active population left the Valley during the 1967 War anid civil disturbances. i.aTkd Tenute and Farm Size '07 Jordanian law requires that landholdings in government-developed svrigation areas should be allocated in 3 ha holdings of Class I and II land and 5 na of Class III land. The maximum holding in such areas, which is allow d to present large owners should not exceed 20 ha. There are no size reistrtrctions on land ownership in unirrigated areas. A survev carried out in February/March 1973 in the project area it.dicated that about 85% of holdings in the project area are within the range 3 to 6 ha (Annex 2). About 40% of the project area is owner-operated and 60%. sharecropped or rented to tenants. Sharecropping, mostly on holdings of 3 ha is the dominant form of farming. 3.OQ The newly irrigated area of the project has been acquired and will he reallocated to comply with existing Jordanian law. The Natural Resources Authority has the legal and administrative machinery for land acquisition and reallocation. Priority is given to existing owners engaged in farming, fol- lowqed bv sharecroppers and tenants living in the area. If there is still - 5 - some land available, it is given to landless laborers (Annex 2). There is no need to bring settlers into the area for the new irrigated land. The old owners are compensated on fixed price which is charged to the new owners. The payment of the compensation is spread over 5 to 20 years depending on the amount Involved - the higher the amount the longer the period. Transport and Communications 3.10 The road network which is the only means of transport for the proj- ect area adequately serves to move present agricultural production. Further exransion is planned under U.S. hilateral aid. The network consists of the North-South National Highway which extends from Adasiya in the north to the Dead Sea. This highway is connected to the Eastern Plateau by four roads, one of wlhich starts in the project area. The North Shuneh-Irbid road joins northern towns of the Jordan Valley with Iraq passing Irbid and Mafraq; another branch forks to the north connecting Syria and Lebanon with Jordan. The most direct route to Amman starts in Al Ardha, but because of steep grades is unsuitable for heavy traffic. All roads are asphalted and usable through- out the year. Feeder roads within the project area exist, but need improve- mnent. Electricity 3.11 There are only isolated electricity and power supply systems within the project area. Generation in all cases is by means of small diesel/ generator sets, while distribution is by low voltage networks. The project, how.ever, would require no additional power for direct uses because the sprinkler system wqould be gravity fed. Any future requirements for indus- trial and urban needs would be provided under the proposed aid program of the Federal Republic of Germany which is currently being discussed. Dorestic Water Supply 3.12 Onlv the town of North Shuneh has regular water supply constructed and operated by local authorities. The remainder of the project obtains its water from either local wells or springs. Piped water supply up to community points would be provided under the project for almost all villages and towns. Present Land Use and Yields 3.13 O(ut of 7,700 ha about 6,660 ha are irrigated; the remainder 1,040 ha is dry-farmed. Overall cropping intensity is 99%. On irrigated land the cropping intensity is about 106% and on dry land, where a wheat and fallow rotation is practiced, 50%. The main crops grown in the area are vegetables, fruiit trees and to a minor extent cereals. Present yields of vegetables range around 17 tons/ha for tomatoes, 15 tons/ha for eggplants and 10 tons/ha for cucumrber and squash. Citrus orchards yield about 17 tons/ha. The total pro- duction of the project area amounts to 72,000 tons of vegetables, 25,000 tons of fruit and 2,000 tons of grains. Present yields, production and cropping ilitensity can be substantially increased through irrigation of dry land, im- provement: of present irrigation practices, changing of cropping patterns and - 6- greater application of technology. Annex I gives details of the present and proposed cropping pattern, areas, yie!lds and production. Agricultural Research and Extension 3.14 Agricultural Research in the project area was interrupted during 967 war and was not resumed until 1973, when a research program for the Jordan Valley was started by the Ministry of Agriculture, Department of Research and Extension. The main objectives of research are to increase vields, reduce production costs and gear production towards market demands. The existing main experiment station at Deir Alla is not typical of the eco- logical conditions of the project area. However, it has a substation Et Wadi Yabis which has representative conditions and could be equipped to carry out necessary experiments. 3.1s The Ministry of Agriculture, Department of Research and Extension is responsible for agricultural extension in the Valley. The service is poor, lacking in staff, basic equipment and means of transportation. An INDP-FAO Technical Assistance Program is assisting the department to improve its services. IV. THE PROJECT Description 4.01 The project would consist of: (a) tie main works for the develop- ment: of 7,700 ha net, of which 6,660 ha are already under irrigation; (b) the provision of facilities (minor works) for domestic water supply, health, edu- cation, transport and community development to benefit the project population of 25,000. Proposed project works are summarized below; details are pre8ent- ed in Annex 3 and Map 10746R. (a) Main Works (i) 2 diversion weirs and siltation reservoirs; (ii) 55 km of primary and secondary pipelines and a distribu- tion network to serve bv sprinkler irrigation, a total of 2,760 ha net; (iii) 30 km of farm roads; (iv) land leveling of about 3,000 ha; (v) tile drainage of about 520 ha; (vi) rehabilitation works on the existing East Ghor Canal; and (vii) 2 assembly markets. -7- (b) Minor Works (i) treated water supply system for about 10 villages; (ii) 3 new health centers and extension of an existing center; (iii) about 150 classrooms; (iv) a vocational training center; (v) improvements to about 60 km of roads; and (vi) about 10 community de-reLopment centers. The project would provide equipment and materials for maintenance of irriga- tion works and roads and furniture and equipment for the health centers, schools and community centers. The project would also provide an agricul- tural credit component to help finance loans for agricultural and on-farm development. 4.02 The project, which would take about 4 years to complete, would be executed by appropriate Government agencies under the overall responsibility of the Jordan Valley Commission (JVC). Consultant services for design and construction supervision of irrigation works would be furnished under the project, and existing management, agricultural research and extension serv- ices would be strengthened. Main lWorks 4.03 Of the presently irrigated part of the project area (6,660 ha net), about 5,Q4n ha net receive supplies from the netwTork of the existing East Chor Canal and about 720 ha net, lving above the command of this canal, are irrigated by local use of the flow from 3 perennial wadis. Under the project, the area irrigated by the 3 wadis (720 ha) and about 1,000 ha out of the area irrigated by the East Chor Canal would be converted from gravity to sprinkler irrigation. In addition, about 1,040 ha net of new area, lying above the command of the canal and presently suhjected to rainfed agriculture, would be provided with sprinkler irrigation. About 4,940 ha would continue to receive irrigation from the East Ghor Canal system. Land leveling and tile drainage would be provided in parts of this area to improve production. Details of works to be constructed for introduction of sprinkler irrigation and improveme-tt of agriculture in the canal-irrigated areas are given below. 4.04 Diversion Weirs. Two weirs, about 15-20 m long, would be constructe& on Wadi Arab and Wadi Jurum to enable diversion of supplies into '.e primatvY pipeline of the sprinkler system. Before entering the pipeline, water would pass through a siltation reservoir, where the suspended silt load woulT settle. A weir or siltation reservoir would not be required on Wadi Ziglab, as a stor- age dam (capacity 4.3 Mm3) already exists there. The outlet pipe from, the -8- reservoir would be directly connected to the primary pipeline. Both weirs and the dam would divert water at such level that adequate pressure would build up in the pipeline by gravity and a pressure of at least 3 1/2 atmospheres would be available at the field outlets. 4.05 Primary and Secondary Pipelines. An asbestos cement pipeline of varting diameter would be buried along the eastern project boundary, generally at the (-) 195 m contour level, and would extend from Wadi Jurum in the south to a point about 8 km north of Wadi Arab. A short stretch of pipeline would extend south of Wadi Jurum. To feed about 1,000 ha lying below the East Ghor Canal, pipelines would branch off from the primary pipeline at suitable loca- tions, cross the canal and run parallel to the canal. The total length of t:hese primary and secondary pipelines is estimated at 55 km. 4.06 Distribution Network. The distribution network would consist of buried tertiary pipes, farm outlets and farm mainline pipes. Tertiary pipes would take off either directly from the primary pipeline, as in the case of the area above the East Ghor Canal, or from the secondary pipelines, as in the area below the canal. The tertiary pipes would be aligned perpendi- cular to the natural ground slope and would be 450 m apart. Each tertiary pipe would provide suitably located farm outlets along its length. Each outlet would serve two farms, one on either side, through independent farm mainline pipes. Sprinkler risers, 12 m apart, would be provided on farm pipcs. The sprinkler systenm would be designed to furnish a maximum of 0.56 1/sec/ha at a pressure of at least 3 1/2 atmospheres at the sprinklers. Thie capacity of each outlet would be about 4.5 1/sec. 4.07 Farm Roads. About 30 km of farm roads would be constructed in the area above thle !:ast GThor Canal. Tlese roads would be 5 m wide; the central 3-m width would be gravelled to provide all-weather access to the farms. 4.03 Land Leveling. Land leveling would be carried out on about 3,000 ha lying below and irrigated from the East Ghor Canal. Because of steep grotnd slopes, which vary from 1 to 3%, irrigation is carried out by zigzag furrows. After land leveling, straight furrows would be introduced which woudO result in a substantial saving in labor input. An average of 300 m3/ha w.:ould have to be moved. In the new area, above the canal, some leveling would be carried out to remove occasional high spots. ,.U19 Tile Drainage. Local units of tile drainage systems would be pro- vicel t't imiprove drainage on about 520 ha of the area currently served by ti * ast k;iior Canal. Open drains exist in this area but do not provide ef- fective drainage; consequently most of this area has already gone out of cultivation. Field drains 10 cm in diameter and collector drains 15 to 20 cmii in diameLer would be installed. Collector drains would discharge into the existing drains, wlhiclh outfall into the Jordan River. 4.10 Rehabilitation Works on East Ghor Canal. In the head reach of the Iast Ghor Canal, some works would be constructed to improve cross-drainage of surface flow. These would include two overchutes for hill torrents presently outfalling into the canal, construction of boundary drains to avoid the entry - 9- into the canal of drainage flow from canal cuts and improving surface drain- age through existing culverts across the canal. These works, by reducing entrv of debris into the canal, would increase its efficiencv and reduce annual maintenance. 4.11 Assembly Markrets and Packing and Grading Stations. There are no assembly markets in the project area. Further south, however, there are two small privnte markets. This project would establish two assembly markets adjoining each of the existing packing and grading stations at Wadi Yabis and North Shuneh. These stations established in 1966 are currently little used mainly due to ill defined responsibility and poor management for their operation. Each has a large, well constructed building with equipment and facilities. The grading line in North Shuneh is in good condition but the line in Wadi Yabis was badly damaged during civil disorders of 1970. Both would be refurbished under the project. Details are in Annex 4. The pres- ent management of the packing and grading stations is unsatisfactory. In the future the Agricultural Marketing Organization (AMO), an existing semi- autonomous institution responsible for market supervision and management in Jordan would manage and supervise these stations. AM]o would charge a fee of 5% and 1% of the gross value of produce handled for picking and grading re- spectively. Assurances were obtained that the operating and managing rights would be transferred to AMO not later than September 30, 1974. 4.12 Operation and Maintenance Equipment. Equipment and vehicles required to operate and maintain the sprinkler irrigation system, the East Ghor system and farm roads would be provided. Some office and workshop equipment together with small aqantities of asbestos cement pipes, pipe fittings, valves, water meters etc. would also be provided for initial maintenance of the sprinkler network. A list of equipment is given in Annex 5. 4.13 On-Farm Development. The on-farm sprinkler systems would be de- signed by the consultant and the on-farm portable pipes and sprinklers would be supplied to the farmers unider medium-term credit. Other on-farm develop- ments would also be carried out under medium- and long-term credits. The farmers would contribute 20% of the total cost of such investments and the project would finance the balance. NRA assisted by consultants would pre- pare specifications and import the mobile sprinkler equipment. Imports would be phased over two to three years to match the construction schedule. NRA would store this equipment at its workshop at Deir Alla for direct sale to project farmers or transfer to them upon presentation of credit agreement with ACC. Minor Works 4.14 Within the project area and along the north-south road, JVC is re- constructing 10 villages destroyed during the 1967 war and following disturb- ances. As a housing program has already started the project would not provide for this item. However, except for North Shuneh, none of the villages have either a proper drinking water supply, health facilities or school buildings. The project would provide the villages with these facilities and would enlarge - 10 - and improve the existing facilities in North Shuneh. In addition existing village roads, mostly along laterals of the East Ghor Canal system, would be improved and regravelled. Ten community centers, one in each village, would be constructed and the vocational school would be supplemented. '+.1S5 nooiestic Water Supriv. Water supply for domestic purposes would >ot furnished to 10 project v-llages from the primary pipeline of the sprink- oer -rrigation system. Filtration tanks would be provided at suitable loca- tions, and after chlorination water would be conveyed through asbestos cement pipes of appropriate diameter to small overhead tanks. Distribution system within the villages would serve community taps, which would be located at suitable points along village streets. The new system for water supply to North Shuneh would supplement and enlarge the existing system. Like the irrigation svstem, the water supply main lines and distribution lines would also be pressurized by gravity and no pumping would be required. 4 1k Health Centers. At present no health facilities exist in the project area, except one health center at North Shuneh which would be enlarged into an 8 hed field hospital consisting of an out-patient's block, X-ray and dentistry facilities and a small laboratory, and would be provided with necessary equip- ment, furniture and instruments. An ambulance and a vehicle would also be provided to transport patients requiring specialist attention to the hospital at Irbid. Three health centers would be constructed at Adasiya, Waqqas and Mashare these would also be provided with necessary equipment, furniture and instruments. The field hospital and the 3 centers would be adequately staffed by Government in order to provide reasonable comprehensive medical care. 4.17 Schools. About 150 class rooms would be constructed under the proj- ect to replace rented facilities and schools damaged or destroyed during the 1967 war and following disturbances. The exact size of the school or schools for each village would be determined by JVC and the Education Department. Most of the schoolrooms would be for preparatory and primary level classes while some would be for preparatory level. Necessary equipment and furniture for these schools would also be provided. The facilities described would satisfy the needs for 6,000 students. 4.18 Vocational Training Center. Government is expanding, under UNDP/FAO assistance, a field research and extension station at Deir Alla for strengthening the activities of the Department of Research and Extension in the Jordan Valley. Unider the project a vocational training center, which would also serve the whole Valley would be constructed at the substation in Wadi Yabis. The center would be used primarily for short- and long-term training of the Valley farmers in agricultural activities relevant to the Valley including sprinkler irriga- tion techniques. Two lecture halls, a wprkshop and necessary equipment would be provided under the project. /,.1'l Roads. Apart from the paved north-south road, the existing road along the East Chor Canal and the existing roads along the laterals of the Canal provide the means of transport between various project villages and the project area. The roads along the Canal (35 km) and the roads along the la- terals (60 kmn) falling within the project area would be improved under the - 11 - project and some of these would be regravelled. The road (2.5 km) connecting the existing Ziglab dam to the main road would be provided with 4 m wide as- phalt top. 4.20 Community Centers. Ten community centers - one in each project village would be constructed. These centers, consisting of 3 rooms and an- cillary facilities, would be used by extension agents for educating the far- mers and would also serve as local offices of the Farmers's Association. In general they would be used to promote social development of the farmers in the project area. Necessary furniture and equipment would be provided. Water Demand, Supply and Quality 4.21 Water Demand. At full irrigation demand (1976), the gross water demand for the gravity irrigated part of the project area (4,940 ha) is es- timated at 55.3 Mm3, whereas the gross demand for the sprinkler-irrigated area (2,760 ha), at its full development in 1979, would be 25.1 Mm3. These demands are based on the proposed cropping pattern and an irrigation in- tensity of 120%. An overall efficiency of 65% for gravity and 80% for sprinkler irrigation has been assumed. Details are given in Annex 7. 4.22 Water Supply. The project area would use water from two sources: (a) the existing East Ghor Canal, which draws its supplies from the Yarmouk river, and (b) Wadis Arab, Ziglab and Jurum - three major tributaries of the Jordan river within the project area. The Yarmouk river has an average annual flow of 438 Mm3 near the East Ghor Canal intake, of which an average of 119 Mm3 per annum (maximum of 157.3 Mm3 in 1971-72) is withdrawn into the Canal. Wadis Arab, Ziglab and Jurum have a respective average annual flow of 31.8 Mm3, 10.6 Mm3 and 11.2 Mm3 (Annex 7). The three Wadis irrigate only 720 ha at present and their surplus water flows into the East Ghor Canal. Both the Canal water and the waters of the three Wadis have been wastefully used for irrigation in the past (15,830 m3/ha) with low efficiency. Under the project, the are5 to be served by sprinkler irrigation (2,760 ha) would use about 9,112 m /ha and the area which woul I continue to remain under gravity irriga- tion (4,940 ha) would need 11,215 m /ha (Annex 7). 4.23 Areas presently irrigated from the two supply sources and the quan- titv of water presently used for irrigation are given below along with the future areas to be irrigated from these sources and the future water demand: - 12 - Present Irrigation Future Irrigation Source Area Water Used Area Water Demand (ha) (Mm3) (ha) East Chor Canal 5,940 94.0 4,940 55.2 Three Wadis 720 11.4 2,760 25.1 Area above East Ghor Canal 720 11.4 720 6. 5 Area below East Ghor Canal - - 1,000 9.1 Unirrigated Area above East Chor Canal - - 1,040 9.5 Total 6,660 105.4 7,700 80.4 I'nirrigated 1.040 - - - Total Project Area 7,700 105.4 7,700 80.4 Saving of Water .25.0 The total water demand under the project would amount to 80.4 MM3, which even after (a) bringing an additional area of 1,040 under irrigation, and (b) main- taining the presently irrigated area of 6,660 ha but with better water manage- ment, would result in an annual saving of 25.0 Mm3. 4.24 Water Quality. The Yarmouk water and waters of Wadis Arab and Ziglab are of medium salinity and low sodium and alkali hazard (C2S1 Class). Wadi Jurum water, classified as C3S1, has a salinity, only slightly Rbove the C2 limit (Annex 7). In general, these waters are of acceptable quality especially as they have been and would be used on areas with adequate natural drainage. In some parts of the project area where drainage is a problem, tile drainage would be provided under the project. Water Rights 4.25 The Yarmouk is an international river with Syria and Jordan as riparian states. Israel is a downstream beneficiary. An international treaty, signed between Jordan and Syria in June 1953, assures enough water from the Yarmouk for the project. As in the future the project would only use 59% 3 (55.3 Mm3) of the Yarmouk water presently used in the project area (94.0 Mm3) the project is not considered harmful to the interest of the downstream ri- parians. Waters from the side wadis would continue to be used entirely in Jordan. If necessary, JVC can acquire any private water rights on the waters. of these wadis, under the powers vested in the Commission by JVC Law. Construction Schedule 4.26 JVC plans to employ a consulting firm as soon as possible to pre- pare designs and contract documents for the main contract comprising irriga- tion works and for its construction supervision. This contract would be - 13 - awarded by November 1974, after international competitive bidding, and cons- truction would be completed by March 1977. Other works, mostly small in mag- nitude, would be designed by departments concerned and constructed by local contractors. Their construction would be scattered between October 1974 and December 1976. Procurement of on-farm sprinkler equipment, under medium- term credit, and disbursement of credit for other purposes would extend up to 1978. A detailed construction schedule is attached as Chart 8379R (Annex 8). Cost Estimates t 4.27 The total project cost, excluding import duties, is estimated at US$17.4 million (JD 5.6 million), including US$4.9 million (JD 1.6 million) for physical and price contingencies. The foreign exchange cost is estimated at US$9.1 million (JD 2.9 million), or 52% of the total cost. The cost of the main development works, including physical and price contingencies, amounts tc US$14.0 million (JD 4.5 million), with a foreign exchange cost of US$7.5 million or 53%. The cost of the minor works, including physical and price contingencies, is US$3.4 million (JD 1.1 million) with a foreign ex- change cost of US$1.6 million or 48%. The social development works are about 20% of the total project cost. The cost estimates are based on unit rates estimated for similar works in the southern part of the Jordan Valley and other relevant cost data. For irrigation works, physical contingencies are estimated at 15%, and for all other items at 10%. For all civil works, price contingencies are compounded at annual rates of 12% (1974), 10X (1975); and 8% (1976 and 1977); whereas for equipment costs the rates used are 9% (1974), 7% (1975) and 5% (1976 to 1978). For land, engineering and administration, price contingencies are estimated ai: 6.5% compounded for foreign expenditure and 10% compounded for local expenditure. Detailed estimates are given in Annex 9, Table 1 and are suinmarized below: - 14 - Foreign Local Foreign Total Local Foreign Total Exchange ------JD 1000/a ------US$'000/a -- … Main Works Irrig;ation Works 716 894 1,610 2,226 2,781 5,008 56 Other Works 25 25 50 78 78 156 50 Land Acquisi- tion 20 - 20 62 - 62 - Equipment and Materials 19 161 180 59 501 560 90 Farm Mlachinery and Working Capital 296 504 800 920 1,568 2,488 63 Engineering and Administration 406 144 550 1,263 448 1,711 26 Subtotal 1,482 1,728 3,210 4,608 5,376 9,985 54 Contingencies Physical 185 219 404 576 681 1,257 54 Price 431 462 893 1.340 1.435 2.758 22 Subtotal 616 681 1,297 1,916 2,116 4,015 53 Total 2,098 2,409 4,507 6,524 7,492 14,000 53 Minor Works Works 368 302 670 1,145 939 2,084 45 Land Acquisi- tion 2 - 2 6 - 6 - Equipment and Materials 21 84 105 65 260 325 80 Engineering and Administration 32 6 38 99 19 118 16 Subtotal 423 392 815 1,315 1,218 2.533 48 Contingencies Physical 42 39 81 131 122 253 48 Price 108 99 207 335 308 643 48 Subtotal 150 138 288 466 430 896 48 Total 573 530 1,103 1,781 1,648 3,429 48 Crand Total 2,671 2,939 5,610 8,305 9,140 17,429 52 /a Discrepancies due to rounding. - 15 - 4.28 The proposed schedule of expenditure, given in Annex 10, is sum- marized below: Jordan Fiscal and Calendar Year 1974 1975 1976 1977 1978 Total ----US$ 000-- Local 755 2,602 3,330 1,409 190 3,286 Foreign 456 3,775 3,045 1,652 215 9,143 Total 1,1211 6,377 6,375 3,061 405 17.429 Financing 4.29 An IDA credit of US$7.5 million would finance about 43% of the proj- ect cost, and would cover about 82% of the foreign exchange cost. Government would finance the balance (18%) of the foreign exchange cost (US$1.6 million) and about US$7.6 million equivalent or 92% of local costs. Project farmers would put up the balance 8% of the local costs (US$0.66 million equivalent) - as their share representing 20% of the agricultural credit requirement. The IDA credit would include retroactive financing of about US$175,000 to cover the cost of consultants to be appointed shortly. The financing plan would be as follows: JD '000 US$'000 % of Project Costs IDA Credit 2,412 7,590 43 Government 2,985 9,207 53 Project Farmers 213 662 4 Total 5 610 17 429 100 Procurement 4.30 The irrigation works and the main system of rural water supply, costing US$5.5 million, would be grouped into one contract, which would be awarded by JVC in consultation with the agencies concerned after international competitive bidding in accordance with World Bank guidelines. Domestic sup- pliers would receive a preference equivalent to the existing import duties or 15% of the c.i.f. cost, whichever is the lower. Contracts for procurement of equipment and materials (US$3.4 million) including the on-farm sprinkler system and other farm equipment and materials exceeding US$10,000 in value, would also be awarded following international competition in accordance wit.l World Bank guidelines. Assurances were obtained to th_s effect. Equipment and materials contracts costing less than US$10,000 would be awarded locally subject to an aggregate of US$100,000 in accordance with normal government procedures, which are satisfactory. 4.31 Other project works (construction of schools, health centers, roads, etc. (US$1.8 million) are of varying nature, small in magnitude and Located in several project villages. These would, therefore, be constructed ur.der several contracts after local competitive bidding in accordance with normal - 16 - Government procurement procedures. For local contracts exceeding US$200,000, bidding documents would be furnished to IDA for approval prior to their issue to prequalified local contractors and a-wards would be made in consultation with IDA. Assurances were obtained to this effect. Disbursements 4.32 The proposed IDA credit of US$7.5 million would be disbursed over 5 years, including retroactive financing of not more than US$175,000 of foreign exchange expenditure of the consulting firm, to finance: Civil Works - 50% of total expenditure Equiument and Materials - the CIF cost of directly imported goods and 80% of total costs of goods purchased from local suppliers. Technical Services - 100% of the foreign exchange costs of the consulting firms and individual experts. Mobile Sprinkler Equipment, - 38% of loan payments made by Agricul- Other Farm Machinery and tural Credit Corporation (ACC) against Inputs short-, medium-, and long-term credit to project farmers. Disbursement requests would be supported by full documentation, Except for loans made to farmers to be disbursed against a statement of expenditures, the supporting documents of which would be retained by the executing agency and be available for review by project supervision mission. All savingsa, after project completion, would be. cancelled. An estimated quarterly dis- bursement schedule is given in Annex 11. Land.Acquisition ! .33 Project works would require about 75 ha, which would be acquired dnder the existing laws after payment of compensation but prior to the award of respective construction contracts. Assurances were obtained to this effect. t%nvironment and Health i.34 The project area is free of endemic diseases like malaria and bilharzia. Malaria was endemic to the Jordan Valley prior to 1953, but with assistance from WHO and UNRWA it was eradicated by 1961. Government's Health Department is adequately equipped to take necessary preventive measures. Assurances were obtained that the Health Department would monitor the project area for any recurrence of malaria and promptly take necessary remedial measures. - 17 - 4.35 The project would not adversely affect the environment but would in fact improve it as the flow of the three wadis, presently in open channels, would be piped for sprinkler irrigation. V. ORGANIZAT:.ON AND MANAGEMENT Jordan Vallev Commission 5.01 The Jordan Valley Commission (JVC) was established under law in 1973 as a public entity with the sole responsibility of economic and social development of the entire Jordan Valley (Enclosure Annex 6). The project would involve the northern third of the Valley, while the remaining two- thirds would be developed with assistance from other donors, maifly the Kuwait Fund for Arab Economic Development, US-AID and the Federa'i. Republic of Germany. JVC has adequate administrative and financial powers for its operations. It is headed by a President, who is also its ex-officio Director General, who reports directly to the Prime Minister, and three Commissioners. The Commissioners are appointed by the Council of Ministers on the recom- mendation of the President of JVC and can be government officials or private individuals. JVC would have overall responsibility for project implementa- tion, including overall planning, coordination, supervision and financial control. At present, JVC is working mainly with borrowed staff, which is inadequate to perform its functions. Therefore, it should be organized on proper lines and staffed adequately as a matter of priority. It has been agreed with JVC that the following 4 directorates (Chart 8371R Annex 6) would be established: (a) Irrigation, Drainage and Farm Roads; (b) Agriculture, Marketing and Credit; (c) Town Planning, Housing, Public Services and High- ways; and (d) Financial Management and Administration. In addition, an officer directly reporting to the Deputy Director General would deal with social and community development. Substantial progress has been made in staffing the five directorates. Assurances were obtained that JVC will con- tinue to be staffed with qualified personnel and that any change in its or- ganizational structure be implemented in accordance with IDA. 5.02 The powers of JVC and its relations with Government, government agencies, contractors and other groups are explicitly set forth in the law establishing it. The law establishes provisions whereby: (a) JVC can receive proceeds of any loans or credits arranged by Government as well as supplemental funds allocated by Govern- ment in the budget. It can also receive funds from other sources. (b) JVC can employ cornsultants for -paroject works, award contracts, exercise overall supervision and financial control and make payments for works completed. (c) JVC can delegate to NRA execution and supervision responsibility for irrigation and other related works, and NRA will have to es- tablish a separate unit to carry out these duties. The head of thl.s unit will report directly to JVC. (d) JVC can transfer funds to ACC, through a subsidiary loan agree- ment, for carrying out the credit provisions of the project. ACC will have to establ sh a separate accounting system for these funds and will be responsible to JVC for carrying out the provisions of this agreement. (e) JVC has the authority to make appropriate arrangements with other government agencies - AMO, Department of Research and Extension, Public Works, etc. -- to carry out project ele- ments appropriate to these agencies, and to ensure their proper implementation. JVC will thus receive project funds and act as the management agency in the project area exercising firm management and financial control over all project elements. It will not, however, have the staff to exercise detailed super- vision over specific aspects of the numerous project elements. This function, therefore, will be delegated to other agencies, which will be fully respons- ible. JVC will retain the ultimate authority and the right to undertake those activities which are not carried out to its satisfaction. Project Execution, Operation and Maintenance 5.03 Because of its multi-sectoral nature, the project would be executed by several government agencies under the arrangements outlined in para 5.02. NRA would be fully responsible for the construction of all hydraulic works including tile drainage, land leveling and rural water supply. It would also be responsible for operation and maintenance of the gravity and sprinkler irri- gation systems, rural water supply, drainage and farm roads, for which equipment (Annex 5) would be provided under the project. The Public Works Department would be fully responsible for the construction of primary markets, health centers, schools, the vocational training center, public roads and community centers, and also for the maintenance of these facilities. The Ministry of Agriculture, Department of Research and Extension would provide extension and research services and training support for the project. AMO would manage the primary markets and packing and grading stations and would be responsible for providing facilities for marketing and market intelligence. It would also collect project charges for NRA and recover loans for ACC. AMO would also train professional staff of the Farmers' Association (FA) with a view to transferring its functions to FA, as soon as possible. Assurances were ob- tained that IDA would be consulted prior to this transfer. The Agricultural Credit Corporation (ACC) would be responsible for assessing the credit require- ments of the project farmers, with the assistance of the extension staff and FA, - 19 - and meeting these requirements in time. The Education and Health Departments would coordinate with JVC and the Public Works Department during the planning and construction phase of the schools and health centers. Followi;ng their completion, these Departments would provide adequate operational and super- visory staff and be responsible for the efficient operation of these education and health facilities, and assurances were obtained to this effect. All the above lisl:ed agencies are competent to carry out the work to be entrusted to them unde-' JVC's overall guidance. Operation and maintenance costs of the project (excluding JVC headquarter staff) are estimated at JD 80,000 (US$248,000) per annum; these would amount to JD 10.4/ha (US$33/ha). Consultants 5.04 JVC is finalizing a contract with the consultants Nedeco and Dar el liandasah, who prepared the feasibility studies on Jordan Valley develop- ment, to assist NRA in the design and supervision of all irrigation works, including the new sprinkler system and the rural water supply works. Assur- ances were obtained that the firm would be appointed on terms and condition acceptable to IDA and that JVC and .RA would second local engineers and other staff to work with the firm, who would provide in service trainiAlg to them. Proposed terms of reference and manpower requirements are given in Annex 11. Liaison and Advisory Committee 5.05 Since many government agencies would be involved in project execu- tion, strong liaison among these agencies and JVC is essential. Such liaison, in addition to avoiding bureaucratic delays, duplication of effort and inter- agency friction, will ensure the availability of competent professional ad- vice for all project components and will impart a feeling of active partic- ipation to the representatives of the executing agencies. A Liaison and Advisory Committee (LAC) has been formed under the chairmanship of the President of JVC. Its membership consists of senior representatives of all agencies concerned. The Director of Administration of JVC is its secretary. The membership of LAC is indicated in Chart 8371. LAC will meet at least every 3 months to assign work priorities, coordinate project activities among the executing agencies, and resolve difficulties. Assurances were obtained that membership of LAC and its Terms of Reference would not be changed without TDA's consultation. Farmers' Association 5.06 JVC would establish a Farmers' Association (FA) for the whole Valley withi branches in each of its 3 subdivisions - one branch would serve the project area. The proposed draft of a law for establishing FA has been approved by the Council of Ministers. Each farmer, whether an owner, share- cropper or lessee, would be a member with the right to vote for FA's Executive Board. FA would assist the farmers in obtaining credits, inputs and other services, as well as in marketing their produce. In the provision of these services FA would operate to ensure an open competitive supply of inputs at the lowest possible prices - through lowest bids on bulk supplies, etc. - and open and competitive auctioning of produce to obtain the highest possible - 20 - prices for member farmers. It would no , however, engage itself in commercial activities providing these services on a monopoly basis. Enactment of a law establishing FA on these lines and election of its Executive Board would be a condition of effectiveness. Credit 5.07 The Agricultural Credit Corporation (ACC) is the only public in- stitution which extends seasonal and medium-term credit for agriculture on a countrywide basis. In 1973, ACC's total loans outstanding amounted to JD 4.7 million. Its loans in the North Ghor area alone amounted to JD 347,532 in 1972. The Jordan Cooperative Organization (JCO) plays a limited role. In 1972, its total loans for all of Jordan, for all purposes, amounted to JD 343,507. In the past, it has not demonstrated a strong interest in agricultural production or marketing operations. ACC meets only a fraction of the total demand for seasonal credit requirements. Its lending rate is 8% per annum for seasonal loans which is reduced to 7% for borrowers who re- pay on time. For medium-term credit the interest rate is 6% per annum with no concession for timely repayment. ACC's lending rates and procedures have evolved from its dealings with IDA and are satisfactory. ACC is short of funds and plans to request a third credit from the Association; the first 2 IDA credits of US$6.0 million were obtained before 1968. The project cost estimate (JD 800,000 for credit) includes full credit requirements for both seasonal and medium-term loans for the project farmers, who would contribute 20%. Of the balance, to be advanced by ACC, 38% would be met from IDA credit and the remaining 62% would be put up by Governm6nt. The financial needs of project farmers would be assessed by the local staff of ACC, with the assistance of the extension service and local representatives of FA. The assessment list would be forwarded to the nearest branch of ACC, which would give credit up to 80% of the indicated amount to the farmers. ACC would inform AMO of the amount loaned to each farmer and AMO would re- cover the seasonal credits together with due instalments of medium-term credit at the primary markets where all project farmers would be obligated to sell their produce as members of FA. Seasonal credit extends for one year or less. Medium-term credit for 1 to 7 years and long-term credit 8 years or longer. Mobile sprinkler equipment would be financed with 7 year loans from ¢uCl These loans and other intermediate and long-term loans would be under- taken by land owners and the equipment provided to sharecroppers or tenants unless the latter have long term leases. -.Q8 A subsidiary loan agreement would provide that Government will lend to ACC, through JVC, the full amount of the project's credit component includ- ing contingencies, less farmers contribution of 20% or JD 852,000 (US$2,650,000), (of which 38% would be met from IDA credit). ACC will lend to project farmers at its prevailing rates of 8% for seasonal loans, with 1% refunded for timely repayment and 6% for medium-term loans. Although commercial credit terms are undoubtedly higher, they are obscured by commission agent practices and it would be impractical to have project credit funds lent at rates which were out of line with other ACC rates. Since the IDA credit component is rela- tively smAll (38%), it is not likely that Government could be convinced to raise its interest rates on the 62% of credit funds it provides. Furthermore, - 2i - higher rates for project loans would create an arbitrarily high interest rate for project loans compared with other ACC loans. The present ACC practice of rebating 1% of the 8% rate charged for seasonal loans when repaid on time is a desirable practice in Jordan where loan repayment experience has not been good. Project credit operations will be accounted for separately from other ACC operations. With improvec collection through AMO initially and FA event- ually, the project will assist ACC in improving its collection record, a major objective of the Bank. The last IDA credit (1967) required Government to lend to ACC at 3-1/4% which ACC on-lent to farmers at 5-1/2 to 6%. Since half of the project loans would be on-lent at 7 or 8% and the remainder at 6%, and collection improved, Government can lend funds for project loans to ACC at 4-1/4% and still allow ACC an adequate margin. Assurances were obtained that ACC would maintain separate accounts for project credit operations, lend proj- ect funds to project farmers for the purposes stipulated and that Government would lend project funds, through JVC to ACC, at an interest of not less than 4-1/4% to be repaid over a period of 15 years for on-lending to project farmers at not' less than prevailing ACC rates. 2Iarketing 5.09 At present marketing of produce is handled by commission agents. Part of the produce goes through the Amman and Irbid wholesale markets and part is exported by road to neighboring countries. There are no assembly markets in the project area and much produce moves into and through the area from the West Bank. The current practice is disadvantageous for small farmers. To ensure favorable prices to farmers the project would require that all project produce pass through the assembly markets. The project would provide two assembly markets and staff to operate them. AMO would provide market intelligence and guidance in field preparation of produce for marketing. It would also supervise the two assembly markets and manage the two existing packing and grading stations refurbished under the project. For providing the marketing facilities, which include premises, accounting, light- ing, security, cleanliness, operating staff, weighing, etc., AMO would charge a fee of 1% of the gross value of the produce sold in the markets. The Amman wholesale market currently provides similar services at a fee of 2% which generates an income well in excess of costs. A fee of 5% would be charged by packing and grading stations, which would include the costs of packing mater- ials. This produce, 12,000 tons per year, would bring much higher prices than ungraded and unpacked produce in the assembly markets. By the early 1980's, the proposed level of fees would cover full operation and maintenance costs and leave a margin for the operating agency. During the early years of the project, however, the quantity of produce marketed and the amount of re- sulting fees would be small, and therefore a part of the operational costs would be met from project funds. AMO would transfer the packing and gradin- stations and the assembly markets to FA (para 5.03) as soon as FA stafe had been trained. In order to accelerate this transfer an evaluation committee has already been established. Assurances were obtained that collection of market fees would be levied from the first year of operation of such facil- ities and that IDA would be consulted before the marketing facilities are transferred to FA. Details of costs of physical facilities for markets and stations and staff are in Annex 4. - 22 - 5.10 During the first three years of the project, expatriate specialists in grading, marketing and accounting would be provided for 36 man months to assist AMO and to train FA personnel in the relevant fields of activity. Assurances to that effect were obtained. Agricultural Extension, Research and Training 5.11 Extension services are provided by the Research and Extension Depart- ment of the Ministry of Agriculture. At present, only 2 extension agents grad- uated from secondary schools are allocated to the project area. These would be increased to 8 under the project and would be provided with transport and demonstration material. New Agents would be university graduates. The ex- tension service would be supported by the research stations located in the Valley at Wadi Yabis and Deir Alla. A complete outline of the staff and equipment required is given in Annex 1, Table 3. 5.12 Agricultural research is a'so the responsibility of the Department of Research and Extention of the Ministry of Agriculture. The main experi- mental station in the Valley at Deir Alla does not fully reflect the agronomic conditions of the project area. A research substation, at Wadi Yabis, at the southern boundary of the project area, is more representative of conditions in the project area. It would be provided with additional equipment and staff under the project. At present it has 1 agronomist and 4 research assistants, but under the project these would be increased to 4 agronomists and 9 research assistants. The additional equipment would include transport vehicles, tractors and other farm machinery and laboratory facilities. The training program would emphasize refresher courses for staff and short courses for farmers. At present, some facilities for training exist at Deir Alla under the UNDP project. In order to fully equip a vocational training center at Wadi Yabis, the project would provide two lecture halls, a workshop and equipment. These expanded facilities would serve the whole Valley. Assurances were obtained that ade- cuate staff and equipment and facilities for extension and research would be pravided. Ac'counts and Audit ¾, 13 Separate accounts would be kept by JVC and other Government agencies i..1 expenditures related to the project, and such accounts would be audited annualv by independent auditors acceptable to IDA. The audited accounts would be submitted to IDA every year within 4 months after the close of the Jordanian fiscal vear. Assurances were obtained to this effect. Recovery of Project Costs 5.14 At present, Government recovers a part of the costs of irrigation projects constructed with public funds through a charge on an area basis. The amount varies by crop depending on water requirements. Such recoveries until recently have been 1 fil/m3 up to 18,000 m3/ha/year and 2 fils/m3 for quantities exceeding that limit. These charges did not fully cover operation and maintenance costs, let alone investment costs. The Government has raised its water charges to farmers from 1 fil/m3 to 3 fils/m3 in February 1974 and has decided to gradually raise them to 6 fils/mO. - 23 - 5.15 This new level of charges would cover operation and maintenance costs and all direct investments chargeable to the project at 5% interest per year. In order to measure the subsidy element, the full project cost as well as all project revenues were discounted at 10% over 40 years. The calculation shows that the present value of the Governthent subsidy to the beneficiaries amounts to JD 2.5 million (US$7.75 million) c'r 40% of the costs. The recovery rate as proposed is considered reasonable to assure adequate incentives for farmers to increase production. Assurances were obtained that the Government, commen- cing with the first year of irrigation in the sprinkler-irrigated areas and by not later than the third year in the gravity irrigated areas receiving project services, would recover a wat6r charge of not less than 6 fils/m3. These charges would be collected by 4MO on behalf of NTRA and transferred to the Treasury. Assurances were also obtained that these charges would be period- ically reviewed to ensure recovery of full operation and maintenance costs and 60% of the investment costs with 10% interest over the project life. VI. ECONOMIC EVALUATION Production 6.01 Without the project, yields on the currently irrigated project area (6,660 ha) are expected to increase at 2% annually for the next five years (1974-78), beyond which no further improvements due to application of known technology are expected. No possibility for yield improvement is foreseen in the 1,040 ha presently unirrigated. 6.02 After the project, production in the project area (7,700 ha) would be doubled; on 4,940 ha of the presently irrigated area due to land leveling, improved water distribution and drainage, on the remaining 1,000 ha of already irrigated area due to conversion to sprinkler irrigation, and on 1,760 ha due to conversion of Wadi irrigated and rainfed area into sprinkler irrigation. With the project the present cropping intensity of 99% (106% on the irrigated area and 50% on the unirrigated area) would increase to 120%. Greater use of technology through improved extension service, credit and marketing facili- ties would support development. 6.03 At present, conditioned by scanty rainfall, only cereal crops are grown in the unirrigated area and their yields are low. In the irrigated area, intensity of irrigation and yields are low because of poor land level- ing and lack of drainage. Farmers have made only simple, on-farm adjustments, such as zig-zag furrows, which consume much labor and limit development of cropping intensity. With the project, these constraints would be removed (Annex 1). At full production in 1983, the project's cropping pattern and incremental production would be as follows: - 24 - ' X dArea Production Without With Without With Crop Project Project Project Project Incremental h----ha- --- - --tons-- Citrus 1,150 1,150 19,550 32,200 12,650 Bananas 350 350 5,250 7,700 2,450 .arly Tomatoes 890 1, 80 15,130 34,500 19,370 Late Tomatoes 810 440 13,770 11,000 -2,770 Early Eggplant/Pepper 320 590 4,800 13,570 8,770 Late Eggplant/Pepper 1,370 1,320 20,550 30,360 9,810 Early Cucumber/Squash 460 490 4,600 9,800 5,200 Late Cucumber/Squash 240 370 2,400 7,400 5,000 Other Vegetables 92C /a 990 /b 11,040 22,770 11,730 Onions Ic 380 6,460 6,460 Beans T7 380 5,700 5,700 Maize 70 960 280 7,680 7,400 W,heat (irrigated) 500 400 1,250 1,400 150 Wheat (drv) 520 - 780 -780 7,600 9,200 99,400 190,540 91,140 /a Potatoes, cabbage, cauliflower, beans, onions. lb Excludes onions and beans. /c Included in other vegetables. Market Prospects 6.04 Cereals. The project area at present produces a small quantity of cereals, mostly wheat, in the rainfed area. With the project, wheat produc- tion will decline from 2,000 tons to 1,400 tons, while maize production will rise from 280 tons to 7,680 tons. Increased maize production would more than offset reduced wheat production, yet cereal production in the project area would have little effect on Jordan's large cereal import deficit. Total cereal production in Jordan is about 210,000 tons annually and imports average 175,000 tons. Domestic demand, much of it in the project area, would consume the increased output of cereals from the project area. 6.05 Vegetables. Vegetable production in Jordan is about 280,000 tons, of which about 200,000 tons is produced in the Ghor Valley and 78,000 tons in the project area. Tomatoes (about 150,000 tons) dominate, with eggplant (35,000 tons) and cauliflower (15,000 tons) second and third. Jordan exports 60,000 to 80,000 tons of vegetables yearly, mostly tomatoes and eggplant. About 20,000 tons of vegetables, mostly onions, potatoes and dry broad beans are imported. Vegetable production in the project area would rise from its present level of 78,000 tons to about 140,000 tons gross by 1983. Because of the overall limits on agricultural production in Jordan, despite good pos- sibilities in the Ghor, the rapid rate of population growth (3.5%) and high per capita consumption of vegetables (144 kg/year) much of the incremental production will be consumed in the domestic market. Vegetable consumption - 25 - is projected under modest assumptions to grow from its present level of about 185,000 tons to between 231,001) and 260,000 tons by 1980, 270,000 to 320,000 tons by 1985, and 370,000 to 450,000 tons by 1995. Thus by 1983, when the project would be in full production, an additional 62,000 tons gross or about 55,000 tons net (deducting 10% for waste and 1,400 tons for local consumption) would be available, while the domestic market for vegetables would have grown by about 80,000 to 100,000 tons. Part of the domestic market would be sup- plied by production of other parts of the Valley. 6.06 The export market for vegetables would continue to be influenced by strong competition among neighboring producers. Political disruptions and import policies of neighboring countries are likely to result in temporary closure of markets like that of Syria (and consequently Lebanon) in 1972. The advantage of the Ghor area lies in its ability to meet winter and early spring demand. This advantage would be improved by the project which would produce large quantities of vegetables in October-November and January-May. The organized marketing and emphasis on quality in the project, combined with proper grading and packing for export markets, would greatly improve the project's competitive position in domestic and export markets. About one-third of the project produce would be exported. 6.07 Fruits. Present fruit production in Jordan is about 136,000 tons and consunption is about 125,000 tons. Consumption is expected to rise to 156-206,0)0 tons by 1980; 182,000-240,000 tons by 1985, and 250,000-330,000 tons by 1995. The project's incremental citrus and banana production would be 12,650 tons and 2,450 tons respectively. Domestic increases in consump- tion would thus provide a local market for these modest increases. However, as in the case of vegetables, timing is favorable in export competition but low quality has been a handicap to Jordan in foreign markets. The project would increase output substantially in October-December and slightly in January-March. With the project marketing organization, which would stress initial field sorting and then grading and packing, the competitive position of project production in domestic and export markets should considerably im- prove. Prices 6.08 One set of prices has been used for both financial and economic analysis of the project. Prices have been derived from those prevailing in the Amman wholesale market in recent years (1968-73) with deduction for com- mission charges, market fees, transport expenses and packaging costs appro- priate to the project area and its distances from Amman. Adjustments have been made for inflation and seasonal and annual instability in fruit and vegetable prices. The method of deriving the prices is explained in Annex 13 and the actual prices used are given in Table 3, Annex 13. Import duties on agriculture commodities and on production requisites and subsidies on cer- tain inputs are not explicitly incorporated because: (i) although there is a nominal import duty of 20% on bananas and 11% on citrus, it is not evident that these duties are consistently collected nor is it clear how they might influence Jordanian prices because of the inflow of citrus from the West Bank, - 26 - w%aich is regarded both as irported and locally produced; (ii) Government sub- sidies are generally negligible, and since most fertilizer, seeds, pesticides and other inputs are traded through private agencies in a competitive market, tne influence of subsidies on farm level prices is negligible. We have as- sumed, therefore, that duties and subsidies offset each other. Prices for the highly perishable produce of the project area can be expected to be in- fluenced primarily by domestic and neighboring market demand and supply con- ditions and by the project areas ability to improve its competitive position in these markets. Global price trends are likely to be much less influencial. Farmers' Income 6.09 Farm budgets for typical vegetable, fruit and vegetable and citrus farms, of 3, 4 and 15 ha both owner-operated and sharecropped, are presented in Annex 14. Farmers' income has been calculated at current average farm- gate prices, with adjustments for seasonal fluctuations and inflation (Annex 13). Production costs include all inputs, valued at current average prices, and take into account family and hired labor and machinery required by differ- ent farms, owner-operated or sharecropped. Family and hired labor have been costed at JD .75 and JD 1.0 per day. The cost of establishing orchards for the pre-fruit yielding years, including cost of water and irrigation equipment, has bc-eii annualized at 10% per year. Interest on working capital has been taken into account, at 10% per annum for 12 months for perennial crops and for 6 months for seasonal crops. Also included in costs is a JD 1/ha tax on agricultural land. Project charges after the project have been levied at 6 fils per m3 of water used. Based on these assumptions and after payment of project charges the incremental income from 3 ha vegetable farms, 3 ha fruit and vegetable farms and 4 ha citrus farms is estimated at JD 496-566, 427-468 and 734. On large 15 ha farms which only represent about 1% of the project area, the incremental income is estimated at JD 3,040-3,189 on fruit and vegetable farms and JD 2,091 on citrus farms. The range of incomes for certain types reflects the differences in gravity and sprinkler costs. Based on a family size of 5.7 persons the income per capita of sharecroppers would in- crease from JD 54 to JD 97-106 on vegetable farms and from JD 86 to JD 124-127 on fruit and vegetable farms. If owner operated the per capita income from these farms would increase from JD 118 to 217 and JD 180 to 267 respectively. This compares with an average national per capita income of JD 82 at present and JD 96 projected for 1983. The project charges would range between 17% and 36% of the incremental income for 3 ha and 15 ha farms respectively. Economic Benefits 6.10 The major quantifiable economic benefit is the significant increase in tlhe production of high value fruits and vegetables which would result in: (a) additional foreign exchange earnings valued at US$6.0 million per year. (b) increased domestic supplies of fruits and vegetables; and (c) improved incomes for about 1,700 farm families. - 27 - 6.11 The annual net value of production would rise from JD 1,760,000 which it would have reached and stabilized at in 1978 without the project, to 3,762,000 by 1983, an incremental benefit of about JD 2.0 million. 6.12 The project includes a soyial development component accounting for 20% of project costs. While the so.Qial development component does not gene- rate quantifiable benefits, it makes a substantial improvement in the lives of project area residents, most of whom are small farmers. These; benefits would be in the form of 150 new classrooms, three new health centers and an extension of an existing one, domestic water supply, community centers and institutional improvements. Economic Return 6.13 The project's rate of return, costing hired labor at the market rate of JD 1 and family labor at JD 0.75 per day is estimated at 24%. Sensitivity tests show that a 25% increase in costs would reduce the rate of return to 18.9% and a 25% decrease in benefits would reduce it to 17.9%. With both a 25% decrease in benefits and 25% increase on costs, the rate of return would still be 14.5. If the social development component is also excluded, the rate of return would be 29%. Details of the economic analysis are presented in Annex 15. 6.14 Three factors have favorably influenced the economic rate of return. First the project makes improvements in the already irrigated area which re- quire relatively low incremental investment costs to unlock the productivity potential of an existing irrigation system. Second, the presently unirrigated area can be served by a gravity-powered sprinkler system thereby avoiding ex- pensive operational costs. Third, the project strengthens the extension, transportation, credit and marketing services which are weak at present. E-mployment 6.15 The project is expected to increase direct employment from the pre- sent 1.8 million man-days to 2.3 million man-days at full development. In addition it would generate employment in the supply of inputs and grading, packing, processing and marketing of project produce, estimated at about 100,000 mandays per year. VII. AGREEMENTS REACHEI) AND RECOMMENDATION Agreements Reached 7.01 Agreement was reached on the following main points: (a) The operational responsibility of grading and packing stations located in North Shuneh and Wadi Yabis would be transferred before September 30, 1974 to the Agricultural Marketing Or- ganization, and AMO would, in consultation with IDA, transfer - 28 - the operating ono ,naging re,ponsibility of assembly markets and packing an6 grading stations to the Farmers Association as soon as the latter's staff has been trained (paras. 4.11, 5.03, 5.09). (b) :-Oio-owiag ?roject completion, the Education and Health Departmernts would provide adequate staff for efficient operation and supervision of the education and health facil- ities, including monitoring for malaria (paras. 4.33, 5.03). (c) JVC would retain a firm of Consultants to design and super- vise the construction of project irrigation and water supply works. The firm would be employed in consultation with and on terms and conditions acceptable to IDA. JVC and NRA would second counterpart staff to work with consultants for in- service training. Expatriate specialists in grading and marketing and accounting would be employed to assist AMO and to train FA in the relevant fields of activity (paras. 5.04, 5.10). (d) The membership of the Liaison and Advisory Committee and its Terms of Reference would .ot be changed without IDA's concur- rence (para. 5.05). (e) The Agricultural Credit Corporation would (i) obtain project credit funds from Government through JVC at not less than 4-1/4% to be repaid over a period of 15 years. The lending rate to project farmers would not be less than 8% for seasonal loans with 1% rebate for repayment on time, and 6% for medium- term and long-term loans and (ii) maintain separate accounts for project credit operations (para. 5.08). (f) The Government, commencing with the first year of irrigation in the sprinkler-irrigated area and by not later than the third year in the gravity-served areas, would recover a water charge of not less than 6 fils/m3 which would be reviewed periodically to ensure recovery of (i) full operation and maintenance costs annually and (ii) entire investment costs with 5% interest over the project life of 40 years (para. 5.15). Condition for Effectiveness 7.02 Enactment of law establishing Farmers Association and election of its Executive Board would be a condition of credit effectiveness (para. 5.06). 7.03 With the aforementioned agreement and fulfillment of condition of effectiveness, the Project constitutes a suitable basis for a credit of US$7.5 million to be repaid over 50 years including 10 years grace. The borrower would be the Government of the Hashemite Kingdom of Jordan. May 10, 1974 ANNTEX 1 Page 1 JORDAN NORTHEAST MOR IRRIGATION AND RURAL DEVELOPMENT PROJECT Agriculture General 1. Out of a total of 350,000 ha of arable land in Jordan only 25,000 ha are irrigated. The Jordan valley and its side Wadis cover 76% of all ir- rigated lands. There are no possibilities to expand the cultivated area under rainfed condition. Agricultural production can be increased significantly by irrigating dry lands mainly in the Jordan valley and to a limited extent in the desert. Water is the limiting factor in Jordan and agricultural develop- ment should envisage more efficient use of water resources. The North East Ghor Irrigation and Rural Development Project aims at improved water use ef- ficiency and extended irrigation. It would Include 7700 ha presently irri- gated by the East Ghor canal, the side Wadis or dry farmed (Table 1). It would extend over 32 km from the Yarmouk river in t_he north to Wadis Yabis in the South with its width varying between two and four kilometers. The altitude decreases from -192 m in the north to about -230 m in the south. Climate 2. The climate of the project area is predominantly mediterranean with local modifications resulting mainly from topography. The summers are dry and hot while the winters are only moderately cool and wet. Precipitation occurs in the winter months. Prevailing winds are from west and southwest but periodically shift to the east and north. Relative humidity varies between 50% and 70%. (Table 2) 3. Average monthly precipitation decreases from 380 mm in Adassiya to about 300 mm per year at Wadi Yabis. Total rainfall shows a strong variation from year to year ranging from 218 to 470 mm per year in a 15 year period. The dry period may extend to 6 months but even during the rainy season sup- plementary irrigation is required for most crops grown in the area. Soils and Topography 4. The soils in the Jordan valley were initially formned by lacustrian marl sediments. This parent material was deposited when a lake covered the valley during the early quaternary. As the lake retreated to the Dead Sea, the Jordan river cut through forming its own flood plain and alluvial material was deposited originating the Zor in the valley. The Ghor terraces were covered with fluviated colluvial sediments which originated from the bordering uplands. ANNEX I Page 2 5. rhe slopes of the project area towards the Jordan River vary from 0.2 to 1% in the Zor, from 1 to 3% in the lower Ghor and from 2 to 5% in the upper Ghor. The general slope north south is about 1%. About 30% of the nroject area because of topography would require sprinkler irrigation. Most of this land is concentrated in the tUpper Ghor adjacent to the East Ghor canal. 6. In 1953/54 the Baker/Harza Company carried out a detailed survey, resulting in a land classification for irrigated agriculture according to the Standards of the Bureau of Reclamation, USA. In 1964/65 the Institute of Pedology and T'echnology, Zagreb made a special salinity and alkalinity survey of the soils in the valley. These surveys together with supplementary informa- tion provided by Dar-Al Handassah Consulting Engineers, Beirut and Netherland Engineering Consultants (Nedeco), the Hague, adequately picture the soil po- tential indicating their suitability for growing a variety of crops. Soil depth varies from 90 cm to several meters and most of the soils have moderate- lv fine textures. 7. Drainage problems only occur in isolated spots affecting a total of about 725 ha. These areas require subsurface drainage for full develop- ment, which is already being provided for 200 ha. Present Land Use and Yields 8. Out of 7700 ha only 6660 are irrigatted and 1040 dry farmed. The present overall cropping intensity is 99%. On irrigated land the cropping intensity is about 106% and on dry land where wheat and fallow is inter- changed the intensity averages about 50%. The cropped area totals 7600 ha per year and present yields and production levels are given below. Vegetables have been classified in early vegetables which are harvested between January and June and obtain better average prices and late vegetables which are har- vested between July and December. Average Yield Production Net % Area Ha t/ha t Citrus 15.1 1,150 17 19,550 Banana 4.6 350 15 5,250 Earlv Toriatoes 17.7 890 17 15,130 Late Tomatoes 10.7 810 17 13,770 Early Eggrlant/Pepper 4.2 320 15 4,800 Late Eggplant/Pepner 18.0 1,370 15 20,550 Early Cuctmber/Squash 6.1 460 10 4,600 Late Cuctmber/Squash 3.2 240 10 2,400 Other Vegetables /1 12.1 920 12 11,040 Maize 0.9 70 4 280 WTheat irrlg. 6.6 500 2.5 1,250 Wheat dry 6.8 520 1.5 780 Total 7,6nO 99,400 /1 Potatoes, cabbage, cauliflower, beans, onions. ANNEX ^ Page 3 9. Present yields of vegetables and field crops are low because of in- availability of suitable varieties, inefficient fertilization, plant protec- tion measures and irrigation. Water is applied by wild flooding in cereals and by zig-zag furrows in row crops. The zig-zag furrow method is labor consuming and does not permit the use of machinery. As the farmer cannot provide the required labor input, field:; are invaded vy weeds which compete for water and nutrients and favor the spreading of pests and diseases. Citrus production is presently affected by improper timing of irrigation, lack of hedging, pests and diseases and deficiencies of minor elements. High tem- peratures and hot dry winds cause deficiencies in fruit setting and have a negative effect on yields. Banana yields are affected by frosts, cold weather and nematodes. Future Cultivation 10. With the project a net area of 7700 ha will be irrigated. The water application efficiency will be improved by land leveling and introduction of sprinkler irrigation. This will permit the use of straight furrows for row crops and borders for cereals. For cultivation operations machinery will be used which will properly time operations and better weed control and plant protection measures. With adequate supporting services, use of good seeds, correct amounts and types of fertilizers, timed applications of insecticides and pesticides and improved irrigation methods, yields will increase as shown below. Projection have taken into account eventual damages due to frosts and low average temperatures. The cropping intensity will increase to 120% with maize, squash and cucumber as main second crops. Growing conditions for maize are very favorable as long as planted in early February or July to avoid polli- nation in the hottest months. The irea planted with solanaceas will be reduced from about 55% to 45% in order to permit a better control of nematodes. 11. Citrus yields are expected to increase to 28 ton/ha mainly as a result of better plant protection, timed irrigation and hedging. Banana yield will increase due to better adapted varieties, improved water availability and plant protection. Due to adverse low temperatures and occasional frosts in the win- ter, yields will not be above 22 ton/ha. The expansion of orchards areas is not envisaged. In addition to climatic constraints fruit trees are grown under licenses and no new planting will be permitted as long as there are areas short of water that can be successfully irrigated from the same system in the valley. ANNEX I Page 4 Net Area Production Cron Ha % Yield t/ha t Citrus 1,150 12.5 28 32,200 Banana 350 3.8 22 7,700 Earlv Tomatoes 1,380 15.0 25 34,500 Late Tonatoes 440 4.8 25 11,000 Early Eggplants/Pepper 590 6.4 23 13,570 Late Eggplant/Pepper 1,320 14.3 23 30,360 Farly CucuTmber/Squash 490 5.3 20 9,800 Late Cucumber,/Squash 370 4.0 20 7,400 Onior 380 4.1 17 6,460 Beans 380 4.1 15 5,700 OtTer vegetables /1 990 10.R 23 22,770 Naize /2 960 10.4 8 7,680 'Hen t 400 4.3 3.5 1,400 9,200 190,540 /1 F.arly Potatoes 1!'0 ha Late Potatoes 320 ha Cauliflower 250 ha Cabbage 250 ha /2 240 ha planted in February, 720 planted in July. Agricultural Research 12. Agricultural Research in the project area was interrupted during the Middle East crisis. A new research program has been started by the Minis- try of Agriculture, Department of Research and Extension for the Jordan Val.lev. The project will sunport this program, whose main objectives are in- crease of vields, reduction of production costs and production of quantities and qualities which satisfy the marketing demands. The main experimental station at Deir Alla does not represent the ecological conditions of the proj- ect area. Therefore its substation at Wadi Yabis will be equipped and staff- ed. The staff will be increased to 4 Agronomists specialized in horticulture, friiitictulttire, field crops and plant protection, and 9 assistants (Table 3). All research work will be coordinated with the extension service and other related institutions active in the valley. 13. The research program should include the following: (1) Introdiuction of new varieties, testing of their production potential, disease resistance, cold resistance, shipping and Processing quality and marketability. (2) Stujdies on time of planting in order to provide adequate information for sound rotations and a cropping sequence to coircide with the various market demands. UaNEX 1 Page 5 (3) Studies on method of planting, optimum plant density and spacing. (4) Fertilizer trials to establish optimum rates and to develop sound criteria for fertil:zer recommendations based on soil analysis. (5) Water requirement trials. (6) Study of production of off-season crops under plastic tunnels. (7) Production-processing studies to improve the processing of vegetable crops. (8) Introduction of new potential crops to be grown in the area. With respect to plant protection the station should be capable to identify infected or infested plant specimens and to recommend control measures. Re- search activities should include biological studies of insects, diseases and nematodes, screening of varieties for disease and nematode resistance, test- ing of chemicals to control insects diseases, nematodes and weeds. 14. The current practice of seed multiplication on the experimental farms and on private farms under close supervision of the research staff will be continued. The Department of Research and Extension will sell the seeds against cash or credit. Agricultural Extension 15. The Ministry of Agriculture, Department of Research and Extension is responsible for agricultural extension in Jordan. With the project the service will be improved by staffing, equipment and transportation facilities. The extension work in the Jordan valley is coordinated by an Extension Super- intendent stationed in Deir Alla. Fcr the project area a Supervisor would be stationed in North Shuneh. The present staff of three agents all graduates from agricultural schools would be increased to nine and the new recruits would be university graduates. Their work would be backed by technical advise of five subject matter specialists, which would be available on a part time basis. They will be specialists in fieldcrops, vegetables, fruit trees, plant protection and soils-irrigation. The extension offices would be located in the community centers to be build under the project and make use of the faci- lities available at the experimental station in Wadi Yabis and at the Voca- tional School. A complete list of the staffing, equipment and transportation provided under the project is shown in Table 3. Vocational Training Center 16. The Government plans to establish a Vocational Training Center in the valley. The program consists (a) training of young farmers in a two-year fulltime course in different agricultural activities, and (b) training of ANNEX, 1 Page 6 farmers including owners, sharecroppers and farm labor in short practical courses to be programmed in accordance to the necessities and nature of the agricultural circumstances in the area. The project would benefit mainly from the second objective and therefore includes classrooms, workshops and equipment for the training center to be established at Wadi Yabis (Table 4). It is assumed that professionals of different relevant institutions will par- tLcipate in the preparation and implementation of the courses. FAO raining Program 17. UNDP with FAO as executing agency is carryihg out an assistance program for agricultural field research and extension services. The project started in December 1, 1972 and has a duration of five years. This project contributes to the agricultural development process of the project area. Its main objective is to strengthen the capacities of the Department of Research and Extension, to plan and conduct applied research and assist the extension services and to train staff in development activities. Strength- ening of these capacities will increase the departments abilities to respond to the demand of better agricultural advise and service in the project area. UNDP inputs include three permanent foreign advisors, (research and extension programnmir;g expert, research specialist, extension expert), plus short-term consultants. In view of this assistance, no further foreign expertise would be provided under the project to support the agricultural services. JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVEIOPMENT PROJECT Project Areas Present Situation With Project Gravity Sprinkler Gravity Sprimkler Irr. Irr. Dry Land Total Irr. Irr. Dry Land Total Irrigated: ha ha ha ha ha ha ha ha Irrigated: Above EGC 720 _ _ 720 _. 1,760 - 1,760 Below EGC 5,940 _ - 5,94o 4,940 1,000 -5,94 Dry Farmed 1 _,040 1,040 - - _ _ Total 6,660 1,040 7,700 4,940 2,760 7,700 IH m JORDAN NORTHEAST GHDR IRRIGATION AND RURAL DEVELOPMENT PROJECT Monthly Average Climatic Data /1 Mean Extreme Mean Monthly Sunshine Evaporation Month Temperature Temperature Rainfall Humidity Hours Wind Speed (Pan) oC oC mm % %/2 km/hour a mm A High Low January 23.8 5.3 14.4 79.3 69 54 7.5 60 February 26.0 5.2 15.5 60.0 67 64 8.o 70 March 30.4 5.6 17.7 48.2 64 62 7.0 97 April 38.7 9.2 21.3 16.8 56 66 6.3 186 May 42.1 11.3 25.5 7.8 51 75 5.5 252 June 43.8 17.6 28.6 - 51 88 3.9 318 July 41.5 20.0 30.5 _ 55 89 3.7 319 August h1.8 20.8 31.3 59 90 6.0 276 September 40., 1.3 29.3 - 57 81 8.1 208 October 39.7 15.2 26.6 11.7 54 79 7.4 174 November 33.9 10.4 21.7 49.1 52 70 10.7 138 December 28.6 6.9 16.7 86.2 66 57 11.9 81 Annual Mean 35.9 12.2 23.3 58 73 7.2 Annual Total - - - 359.1 - - - 2,179 /1 Average 1951-67 ~ 2 Average ratio of actual to possible hours of sunshine 3 Measured at Deir Alla /4 1965-1967 ANNEX 1 Table 3 Page 1 JORDAN NORTHEAST OHOR IRRIGATION AND RURAL DEVEIOPNENT PROJECT Research and Extension JD SUB-TOTAL TOTAL I. RESEARCH 1. Staff 3 Agronomists (JD 1200B3 years X 3) 10,800 5 Assistants (JD 600B3 years X 5) 9,000 12 Labor (Spec.)(JD 30013 year;X12) 10,800 1 Administrative employees (JD 600 X 3 years) 1,800 2 Drivers (JD 360X3 years X2) 2,160 10% Allowances 3,440 38,000 2. Transport 2 Pick ups 3,500 3,500 3. Materials and Supplies Pesticides and Chemicals 2,000 Seeds and Fertilizers 1,000 Others 1,000 4,000 4. Machinery and Equipment Furniture 100 Machinery 1 Tractor 80 HP 3,000 Equipped with: Rotary Plow 450 Mold Board Plow 300 Disc Plow 300 Chisel Plow 200 Disc Harrow 300 Spring Tooth Harrow 200 Ridger 250 1 Tractor 25-35 HP with Tool Bars front and rear plus implementp 2,500 2 Small Rototillers 400 1 4 Row planter for direct seeling of small vegetables 250 2 planet Jr one Seeder Unit 100 1 Fertilizer applicator for band placement 300 1 Boom Sprayer (Pesticides) 300 4 Napsak Sprayer 400 2 Mist blower Napsack 100 1 Field Sprayer Herbicides 150 9,600 55,100 ftge 2 JD J JD SUB-TOTAL TC">L 5. Laboratory 1 Set insect collecting instrumnts 150 2 Insect collecting cabinets 50 2 Disecting instrument sets 30 1 Water destiller 50 1 Pan Lab. scale (250 Jr) 30 1 Grocers scale (10 Jr) 100 1 Research sterobinocular 150 1 Drying oven 150 1 Incubator 70 1 Refrigerator 9 Jr 70 1 Small centrifuge 50 1 Sieve Set 150 1 Fume Hood 250 Various 300 Furniture 400 2,000 TOTAI. RESEARCH g7.100 II. E3TENSMN 1. Staff 6 Agents, Salary (JD 720X3 years I E) 12,960 1 Extension supervisor, (JD 840 Z 3 years) 2,520 Subject Matter Specialist 5 Experts for the whole valley project 1/3, (salary 1,200 JD13 years 5/3) 6,000 Extension superintendent, (salary JD 1,200 X 3 years) for whole valley project 1/3 1,200 2 Drivers (JD 360 X 3 years Y 2) 2,160 5 Drivers subject matter specialistq (JD 360 X 3 years Y 5/3) 1,800 10 % Allowance 2,660 29,300 2. Transport 2 Pick ups 3,500 10 Motorcycles 1,700 5,200 3. Materials Agents Outfit - 250 JD/each 2,500 Fert.ilizers and pesticides 3,000 Furniture 1,000 Others 500 7,00D TOTAL EXTfENSION TOTAL RESEARCH & EXTENSIDN ANNEX 1 Table 4 JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJEC'r Vocational School JD JD JD SUB-TOTAL TOTAL 1. Buildings 2 Lecture Halls 25,000 Workshop and Store Rooms 25,000 50,000 2. Vehicles 1 Bus 3,300 1 Pick up 1,700 5,000 3. Machinery and Equipment Equipment, Tools and Training Material for Workshop 3,000 1 Tractor 60-80 HP 3,000 Equiped with : Rotary Plow 450 Mold Board Plow 300 Disc Plow 300 Chise Plow 200 Disc Harrow 300 Spring Tooth Harrow 200 Ridger 250 1 Tractor 25-35 HP with Front and Rear Tool Bars Plus Implements 2,500 Various Small Machinery and Tools 500 11,000 4. Staff One Training Expert (JD 840 X 3 years) 2,520 2 Drivers (JD 360 X 3 years X 2) 1,080 Plus 10% Allowances 360 3,960 69,960 kNNLX 2 Page 1 JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT Land Tenure and Farm Size 1. The project area of 7,700 ha located along the East Ghor canal is partly irrigated and partly unirrigated as shown below: Irrigated by canal 59,400 dunums /1 Irrigated by side wadis 7,200 dunums Unirrigated 10,400 dunums Total 77 ,000 /1 10 dunums = 1 ha. 2. Jordanian Law (No. 12, 1968) requires that land holdings in govern- ment developed irrigation areas cannot be less than 30 dunums of class I and II land and 50 dunums of class III land. The maximum holding in such irri- gated areas cannot exceed 200 dunums. There are no size restrictions on un- irrigated areas. 3. A social and economic survey of the East Jordan Valley carried out in February/March 1973 indicated that 88% of the holdings in the project area - 85% of the area - are within the range of 30 to 60 dunums. The details of ownership are in Table I, a summary of which is given below: Number of Size of Holdings holding % of Holding Area % X of Area (dunums) (No.) (Z) (dunutns) (M) Under 30 52 3 288 0.3 30-40 430 24 13,254 17 40-50 691 39 29,552 38 50-60 446 25 22,438 30 60-80 146 8 9,850 13 Over 80 14 0.8 1,480 2 Total 1,779 76,862 /1 There is a slight discrepancy between the total area covered by the survev and the project area due to differences in coverage. The above figures include both irrigated and unirrigated areas, which slightly raises the average size of holding. Data for the irrigated portion of the project area from the National Resource Authority (NRA) land ANNEX 2 Page 2 records show even greater concentration of holdings in the size range between 30 and 50 dunums. According to the NRA land records only 11 holdings reach or are near the 200 dunum maximum. Size of holding Number of Holdings (dunums) About 30 347 20.9 30-40 948 57.1 40-50 200 12.1 More than 50 164 9.9 Total 1,659 io 4. About 40% of the holdings in the project area are operated by owners qnnc h'O hv sharecroppers or tenants. Complete sharecropping of entire holdings is the dominant form of farm operation in the project area, and is fairly uni- fprrlv distributed among holdings of all sizes, with the largest number of stiarecropners (lgP) an(d area sharecropped (5,553 dunums) in holdings of from 26-30 dutnums. The largest concentration of area is in farm holdings of 101-150 dunums (10,905 ditinums), 26 to 30 dunums (8,712 dunums) and 31 to 35 dunu.is (7,21,5 dunums) as shown in Table T and summarized below: No. of Holdings _ Area % (dunums) EntirelN ovmer-operated 673 39.3 26,794 34.1 Entirelv sharecropped 813 47.5 36,223 46.1 Entirelv rented for cash 76 4.4 3,222 4.1 Partlv owner-operatedl 151 8.8 12,336 15.7 Area owner-operated (3,990) (5.1) Area sharecropped or rented (8.346) (10.9) 1,713 10o 78,575 100 5. 11hen the unirrigated area above the canal is brourht under sprinkler irr;,Yatlon as a result of the project, JVC and NRA have the legal power and %PA hins the administrative machinery to acquire the land and reallocate it accordinp to the Tiinimim and maximu-m limits for irrigated areas. Priority is -iven to existiro land holders and those farring the land presently as was cone when the area currentlv served hv the canal was reallocated. ANNEX 3 Page 1 JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT Description of Project Works General 1. The project area, located on the east bank of the Jordan river, is bounded by the Yarmouk river in the north, the foothills of the Jordanian plateau in the east and Wadi Yabis in the south (Map 10746R). The project consists of the following main components: (a) Main Works: development of 7,700 ha net, by providing irrigation to a new area of 1,040 ha, improving existing irrigation in the other 6,660 ha and improving technical and supporting services in the.project area; (b) Minor Works: development of the area by either providing new or improving the existing facilities in respect of drinking water, health, education, ttansportation and com- munity development. Agricultural and Rural Development 2. Main Works. The proposed works for providing irrigation to the new area and improving existing irrigation (Map 10746R) are: (a) two diversion weirs on Wadis Arab and Jurum; (b) primary and secondary pipelines about 55 km long to convey, under adequate pressure created by gravity, the waters of wadis Arab, Ziglab and Jurum to 2,760 ha to be served by sprinkler irrigation; (c) a distribution network to convey irrigation supplies from the primary pipeline to field outlets for irrigating 2,760 ha; (d) about 30 km of farm roads to serve the area to be irrigated above the East Ghor Canal; (e) landleveling in about 3,000 ha currently irrigated by the East Ghor Canal; (f) tile drains serving about 520 ha; ANNEX 3 Page 2 (g) rehabilitation works on East (Ghor Canal; and (h) assembly of tro market centers. 3. Diversion Weirs. The weir on Wadi Arab, and also the weir on Wadi Jurum, would divert the wadi water to a silting reservoir, located adjacent to each weir, where the suspended silt load would be allowed to settle. Clear water would then enter the primary pipeline. The weirs would be so located that adequate pressure would build up in the pipeline by gravity and a pres- sure of at least 3-1/2 atmospheres would be available at the field outlets. The weirs would be about 15-20 m long anc would be founded on solid rock. No weir on silting reservoir would be required on Wadi Ziglab, as the outlet works on the existing storage dam would provide silt-free water to the primary pipeline under adequate pressure. 4. Primary and Secondary Pipelines. The primary and secondary pipe- lines, about 55 km long, would be aligned along the foothills in the east, generally along the (-) 195 m contour. It would extend from a point 8 km south of Wadi Jurum to about 8 km north of Wadi Arab and would receive the water supply from Wadis Jurum, Ziglab and Arab through three short pipelines conveying water from the diversion weirs (Wadis Arab and Jurum) and the dam (VWadi Ziglab). These pipelines pressurized by gravity due to difference in water elevations, would serve a part of the project area (2,760 ha) by sprink- ler irrigation. One or two secondary lines would take off at suitable points and extend westward, across the East Ghor Canal, to serve about 1,000 ha by sprinkers, which lies below the canal. Both the primary and the secondary lines would be of asbestos cement. 5, Distribution Network. The distribution network would consist of hut.4d tertiary pipes, farm outlets and farm mainline pipes. The tertiary Tipes would take off directly either from the primary pipeline or, as in the iase of East Ghor Canal area, from the secondary pipeline and would be rather shnrt in length as the width of land to be served by sprinkler irrigation mostl- varIes froni 200 n to 1,000 m. The tertiary pipes would be spaced about - ¢ r apart and would be aligned perpendicular to the natural slope. Depend- lii, tX:.on the width of the area, farm outlets, generally in pairs, Vould be ertlvited on these pipes at a spacing of about 180 m. Each outlet, equipped 1.rt't a meter, would serve one farm through a farm mainline pipe, which would " buLried along the farm boundary, with sprinkler risers provided at every m. The sprinkler lines would be arranged by the farmers themselves through credit. 6. The sprinkler system would be designed to furnish a maximum of 0.56 1/sec/ha, at a pressure of at least 3 atmospheres at the sprinklers. This supply rate would meet the peak demand, which occurs in October, on the basis of 24 hours per day irrigation. iANLIMX 3 Page 3 i. The on farm portable equipment for the area to be provided with sprinkler irrigation would be procured by NRA znd paid on credit by the far- mer. The lavout of the on farm system would be standardized by the consult- ants for farms of various sizes and shapes. The project extension staff would advise and assist the farmers in working out the requirements of the on farm equipment. 8. Farm Roads. Farm roads already exist in the East Ghor Canal area and new roads would be provided only in the area above the Canal. Farm roads would be spaced about 450 m apart and would be 5 m wide. The central 3 m width of the roads would be surfaced by gravel. The total length of the new road construction would be about 30 km. 9. Land Leveling. Below the East Ghor Canal, the project area has a general slope of 1 to 3%, whereas above the Canal the slopes are somewhat steeper. No land grading was carried out in the East Ghor area wnen canal irrigation was introduced, although most of the area needs some earth-moving to make it suitable for surface irrigation. Currently, in the absence of grading, irrigation is carried out through zigzag furrows instead of straight fturrows. This practice is limiting the growth of irrigation intensity. Under the project land grading would be carried out in those area, which are not being converted to sprinkler irrigation. In such areas, estimated as 3,000 ha, the quantity of earth to be moved would vary from 200 m3 to 750 m3 per ha, with an average of about 300 m3 per ha. Small quantities of land grading in local pockets would also be necessary in the new area above the East Ghor Canal. 10. Tile Drainage. Due to lack of local drainage, about 725 ha of East Ghor area, in several non-contiguous blocks, are affected by water logging. Most of these areas have already gone out of cultivation. Some of the affect- ed blocks lie in those areas which would be converted into sprinkler irriga- tion under the project and drainage facilities would not be required*; In the remaining blocks, estimated at 520 ha, tile drains would be constructed to provide local drainage systems, which would discharge the effluent into the existing open drains. 11. Rehabilitation Works on East Ghor Canal. In the head reach of the East Chor Canal, large quantities of sediments are brought into the Canal by a hill torrent, which inlets into the Canal. In this reach, some high slopes also drain directly into the Canal. Under the project, an over-chute would he constructed for the torrent. Adjacent to the high slopes, the Canal bank would be widened and a drain would be provided at the foot of the slopes, which would discharge the surface runoff into the nearby culvert under the Canal. Other minor works, all for the improvement of surface drainage, would also be carried out in this reach. 12. Assembly Markets and Packing and Grading Stations. There are two grading and packing stations at Wadi Yabis and North Shuneh. Both are pro- vided with more equipment and facilities than it has been possible to use. ANNEX 3 Page 4 Facilities for assemblv markets would be provided adjacent to these stations, so that the need for additional storage and office buildings would be reduced. TIt would also ensure, with minor repairs and adaptation, the use of the grading ard nacking facilities which have hitherto been practically unused. Moreover, supervision and management would be more efficient and less costly for the complementary operations of marketing, packing and grading. Minor Works 13. The proposed works for social development facilities would include: (a) domestic water supply to about ten villages; (b) construction of three new health centers, and improve- ment and additions to an existing health center; (c) construction of about 150 schoolrooms; G(!) construction of a vocational training center; (e) construction of ten community development centers; and (f) improvements to and regravelling of about 60 km of roads; 14. Domestic Water Supplv. Drinking water supplv would be made available to about 60 project villages. At present only a part of one of these villages is provided with piped water supply. Water intended for this use would be filtered and chlorinated. It would then be piped to the villages and other smaller settlements along the north-south main road. Within each village, several communitv taps would be provided in the streets at 8uitable locations. 15. Health Centers. The existing health center at North Shuneh would be enlarged by additions to the existing building, and would be converted into a field lhospital. It would consist of an outpatient's block, x-ray and dentistry facilities, a small, laboratory and about 8 beds. A resident doctor, a dentist, a nuirse and a midwife would be on its regular staff. Smaller health centers would he constructed at Adasiya, Waqqas and Mashare. Each of these three cen- ters would be attended bv a doctor, a nurse and a midwife. All four centers would be provided with necessary equipment, instruments and furniture. An ambulance and a vehicle, to be stationed at North Shuneh, would be furnished to transnort emergency medical and surgical cases from this project area to the nearest hospital at Trbid. 16f. Schoolrooms. Except for North Shuneh, none of the villages in the prniect area has its school in a proper building. Tinder the project, a total of abouit 150 schoolrooms and ancillary facilities would be constructed to nroviTdo .The recuiired numher of elementary and preparatory schools in the area. The exact number of schoolrooms to be constructed in each village would be ANNEX 3 Page 5 determined by the Mlinistrv of Education and JVC. Furniture and equipment re- quired by the new sehools would be provided under the project. 17. Vocational Training Center. Two lecture halls, and a workshop with a store would be built at the field r-esearch and extension station at Wadi Yabis. The total area of these builcings, which w?uld be mainly used for the training of Drolect farmers would be ahout 1,000 m . Educational aids includ- inr, farm machinery, tools, and equipment would also be provided. 18. Community Center. Ten community centers would be constructed in the project villages. Each of these centers would have a total area of 100 m2 with three main rooms. These centers would be used as the headquarters for the extension agent and the local office of the Farmer's Association. These centers would also be used as farmer education centers. Furniture and equip- ment for educational aids would be furnished under the project. 19. Roads. Farm roads along the laterals of the East Ghor Canal and a road along the Canal already exist. A dirt road connecting the main valley road and the Ziglab Dam also exists. Under the project, the road to Ziglab Dam would be asphalted and the farm roads along irrigation laterals would be improved and regravelled where necessary. The road along the Canal would also be improved where necessary. ANNEX 4 Page 1 JORDAN NOPTITEAST GHOR IRPIGATION AND RIJRAL. DEVELOPMENT PROJECT Assembly Markets and Packing and Grading Stations 1. There are two Packing and grading stations in the project area - one in the northern part of the area at North Shuneh and one at the southern end at Wadi Yahis, 22 km apart. These stations were established in 1966. Each has a large, well constructed building in a good location with a variety of other equipment and facilities. Originally both buildings were equipped with grading lines. The grading line in North Shuneh - washing, waxing and multinle grading for citrus - is in good condition but has been used little. The equipment in Wadi Yabis - vegetable grading - has been largely dismantled. Neither station has fully operated, partly because of the 1967 war and the guerrilla activities until 1970 and partly due to inadequate management, poor organization and the absence of a demonstrated need for, or profitability of, grading. 2. There are no public assembly markets in the project area, although two small private ones operate during the winter season farther south in the valley - one in Karameb and one in Saoualha. This project includes the es- tablishment of two assembly markets associated with and adjoining each of the existing packing and grading stations. 3. The 1973 government plan for the entire valley calls for the estab- lishment of three assembly markets at Wadi Yabis, Maadi and South Shuneh. The latter two are 35 and 75 km south of the project area. Preliminary de- signs and estimates for these markets have been developed by the Agricultural Marketing Organization (AIlO) and the Government. Each market is designed to handle 400 tons/day with peak period loads of 800 tons/day. Although a market at North Shuneh was earlier considered, the expectation of slower development in the North Ghor area (prior to preparation of this project) resulted in its being dropped. 4. Originally (1972) the assembly markets pronosed for the valley were modest, covering 1 ha., providing no storage facilities and costing from JD 16 to 20 thousand. Subsequently (1973) revised plans called for a larger market area covering 3 ha and including a shed for storage, raising the cost to JD 43,000 (Table 1). 5. An advantage claimed by the Government for the Wadi Yabis locatior (which applies equally if not more to North Shuneh) is that it would not re- quire a storage shed (the most costly item in the market) since the eVisting unused packing and grading building was larger (approximately 2,400 m-) than the proposed shed (1,600 m2). ANNEX 4 Page 2 6. The assembly markets proposed for this project are based on modifi- cations of the Government's designs and the flow of produce, and take into ac- count the facilities which already exist. Assemblyv Markets - Wadi Yabis and North Shuneh 7. The existence of packing houses at both locations would reduce the need for new storage and office space. However, since the project would utilize the packing and grading facilities separate sheds for storage at each of the two markets would be constructed. The cost to establish these two assembly markets are itemized in Table 2. Packing and Grading Stations 8. The packing houses at both North Shuneh and Wadi Yabis are well constructed and in good condition. No significant costs should be involved beyond normal upkeep. The grading line at North Shuneh is in good working order but may reouire some simple repairs. Similar equipment for vegetables at Wadi Yabis has been partially dismantled as parts were removed which could he sold. The existin,! line would be adapted as a simple conveyor, since there is no demonstrated nee( for more sophisticated equipment. The North Shuneh station also has two small tractors for moving heavy loads inside the build- irm, neither have been used. 9. JD 10,000 would be needed for the adaptation of the grading line at W4adi Yabis or its replacement with simple conveyor belts, and for acquisition of basic equipment, such as hand trucks, tables, etc. at both stations: Iterl Cost JD US$ 1. Conveyor belts (two) 3,300 10,000 . Repairs to motors or replacement 965 3,000 3. Sizing machines (two) 5,000 12 - 15,000 4. Hand trucks (6 for each station) 965 3,000 5. Office machines 650 2,000 9,880-10,880 30 - 33,000 Oneration of Assembly Mlarkets and Packing and Grading Stations 10. Table 3 shows the monthly and daily tonnages of fruits and vege- tables which are produced now and will be produced in the project area at full development. 11. Table 4 shows the net daily marketable supply of fruits and vege- tables in the project area at full production. The net marketable supply was derlved from the total daily production as follows: ANNEX 4 Page 3 (a) the 1973 project area population, excluding Wadi Yabis was about 25,000 (28,062 - 3,186 (Wadi Yabis) = 24,886). (b) Population growth rate assumed 2.8%, higher than present rate in the project area. The population in the project area in 1983 would thus be 33,000. (c) Per capita consumption of fruits and vegetables in Jordan in 1970 is estimated by FAO a£t follows: Commodity Kg/per capita/year Fruits 130 of which citrus and bananas 30 Vegetables 144 (d) Following quantities are assumed to be consumed from the Project production: Citrus and bananas 30 kg/per capita/year Vegetables 120 kg/per capita/year (e) Waste and field losses for fruit are assumed to be 5% and for vegetables 10%. (f) Based on these assumptions the daily and annual consumption of fruits and vegetables in the project area would be as follows: Total Consumption Commodity Year Daily Annual ----tons---- Vegetables 1973 10.0 3,650 Vegetables 1983 14.0 5,110 Fruits 1973 2.1 770 Fruits 1983 2.8 1,020 13. After deducting field losses and self consumption in the project area, an allowance was made for produce moving through the project area mar- kets, primarily Wadi Yabis, from outside the project area. The Wadi Yabis market is at the extreme southern boundary of the project area. The next nearest market would be 35 km south. It is assumed that at least 1/2 as much produce will pass through the Wadis Yabis market from the area im- mediately south as from the project area itself. This will be primarily vegetables. 14. Since the Farmers Association Law stipulates that all produce in the project area will pass through the assembly markets, Table 6 indicates ANNEX 4 Page 4 that this flow would not exceed the peak capacity of these two markets (,,600 tons daily, or 800 tons daily per market). The flow of produce is likely to come close to this level only during May and June. For most of the year the markets will operate at 300 to 400 tons/day, the level of operation for which they were designed. Staffing and Operating Costs of Assembly Markets and Packing and Grading Stations 15. The staff for the two assembly markets would consist of the follow- ing: Permanent Staff (Markets and Packing Houses) Monthly Salary 1 Director (to supervise both locations) 100 JD 2 Asst. Directors (one for each location, 2 x 75 JD) 150 JD 4 Accountants (two for each location, 4 x 60 JD) 240 JD 4 Clerks (two for each location, 4 x 60 JD) 240 JD 4 Scales Operators (two for each location, 4 x 30 JD) 120 JD 12 Auctioneers (six for each location, 12 x 60 JD) 720 JD 1,570 JD Labor (Markets) 14 Unloading and loading (7 each market, 14 x 1 JD x 25) 35 JD 16. The staff for the packing and grading station would consist of: Staff Monthly Salary 2 Technicians (one each station, 2 x 70 JD) 140 JD 4 Foremen (two each station, 4 x 60 JD) 240 JD 20 Packers (ten each station, 20 x 30 JD) 600 JD 980 JD The capacity of each station is 40 tons/day or 1,000 tons/month. Since there have been sporadic experiments but no full scale packing and grading opera- tions at any of the three packing and grading stations in Jordan, this ele- ment of the activity would be phased and the full staff strength would be reached at the end of the third year for six months a year. ANNEX 4 Page 5 Phasing and Costs of Employment 17. Table 5 gives the phasing of employment and costs for the assembly r'arl-ets ?nd packing and grading stations during the first three years of the project. The construction works and equipping of the markets and packing houses would be completed in about 6 months. The markets would be ready to co.mnence operation in October 1975. At that time however the project would not as yet hrave nixch impact on the production. Therefore the flow of produce through the markets would be essentially as indicated in the "present" situa- tion in Table 3. 18. During the initial years of the operation of the markets auctioneers and much of the labor would be provided by the project, unlike Armman where cormmission agents are well established and employ the auctioneers and much of the labor. This would ensure success of the operation. Financing of the Operations 19. The assembly markets and packing and grading stations would not onlv he self supporting but would also return an income. A fee of one per- cent of gross marketings would be charged. During the earlv years of opera- tion approximately 80,000 tons would flow through the two markets. At full operation the annual tonnage flowing through the two markets would be 200,000 tons, including that from outside the project area (Table 4) but excluding project area consumption and 5% waste for fruits and 10% for vegetables. At an average farmgate price of JD 30/ton and a fee of 1% (half that charged at the Amman wholesale market) this would generate annual revenues of JD 24,000 in the early vears, rising to JTD 60,000 by 1983. 20. Tlhe packing and grading stations have a capacity of 40 tons per day for each station. At full capacity about 12,000 tons would be handled in a six month operation. An average price of JD 45/ton for graded and well packed fruit would yield JD 540,000. A packing and grading fee of 5%, which would include the costs of packaging, would produce JD 27,000 in revenue annuallv. 21. Difficulties are expected initially in reaching assumed levels of Performance, but by 1983, when the project would be in full operation, these fees would produtce incomes of J1) 80 to 90,000 per year. Allowing for annual operating costs of 20,000 - packing materials, boxes, etc. - JD 10,000 for depreciation and JD 21,000 for staff costs, which would total about JD 51,000, an operating surplus of nearly JD 40,000 would remain. This could be returned to Farmers Association (FA) members as dividends or used to expand the opera- tions of the assemblv markets and packing and grading stations. JORDAN ANNEX 4 Table 1 NORTHEAST GHOR IRRIGATION AND RURAL DEVEIOFMENT PROJECT Revised Assembly Market Designs (AMC- Government- 1973) Leveling of 30 dunums JD 0.1 x 30,000 m2 3,000 Surfacing and asphalt JD 0.6 x 30,000 m2 7,200 Fencing - 500 m x JD 2.5 1,250 Weighing Station 5,000 Offices 175 m2 x JD 20.0 3,500 Shed 1603 m2 x JD 12.0 19,200 Equipment 1,850 Miscellaeous 1,000 Contingencies _1.°°° JD 43s00 JORDAN ANNEX 4 . NORTHEAST GHOR IR1IAT IDON AND Table 2 RURAL DEVE EIPM 0!T-PROJIIT Assembly Narkets at WadS. Yabis and North Shuneh Wadi Yabis Assembly Market Item JD Leveling 1 ha (10,000 m2at 0.1 jD/.2) 1,000 Surfacing - 10,000 x 0.6 JD/m2 6,000 Fencing - 500m x 2.5/m 1,250 Scales 3,300 Shed - 800m2 x 12 JD/M2 9,600 - Concrete platform and cladding 5,500 Equipment 1,000 Total JD 27,650 US$ 86,000 North Shuneh Assembly Market Item JD Leveling 0.9 ha (9,000 x 0.1 JD/m2) 900 Surfacing 9,000 x 0.6 JD/m2 5,400 FencinR 450 m x 2.5 JD/m2 1,125 Shed - 800 m2 x JD 12 JD/m2 9,600 - Concrete platform and cladding 5,500 Equipment 1,000 Total JD 23,525 US$ 73,163 Note: The North Shuneh station has a 6Q foot scale and numerous other facilities and equipment, includ',ng an auxiliary power plant. The area presently attached to tl4e station is 0.9 ha. Total cost of establishinp Assembly Markets JD 51,175 US$ 159,163 ANNE1 IL Table 3 JORDAN NaRTHEAST GHOR IRRIGATION AND RURAL REOPKEN T PROJECT Table 3 Nonthly and Daily Production of Fruits and Vegetables In the Prolect Area, Present and Future Citrus Banana Total Fruit Production Monthly Tonnage Monthly deily Month Present Future Present Future Present Future Present Future - -------------- tos- ---------- -- ---------------tons-------- 5,000 5,000 300 500 5,800 5,500 212 220 ebmal-y >3,000 3,000 350 500 3,350 3,500 134 140 March 1,000 2,000 350 500 1,350 2,500 54 100 April 500 1,000 350 500 850 1,500 34 60 May 150 300 350 500 500 800 20 32 June 150 300 350 500 500 <:800 20 32 July 150 300 400 600 550 900 22 36 August 100 300 400 600 500 900 20 36 September 500 1,000 600 700 1,100 1,700 44 68 October 1,000 3,000 700 1L,000 1,700 44,000 68 160 November 3,000 4,000 700 1,000 3,700 5,000 148 200 December 5,000 12,000 400 800 5,14000 12,800 216 512 Vegetable Production Fruit and Vegetable Production Monthl1 Daily Present Future Present Future Present Future ---…---tons … -------- ---- -- --- ----tons -…--- January 4,887 10,100 195 404 407 624 February 5,080 10,648 203 426 337 566 March 3,735 7,937 149 317 203 417 April 7,693 14,975 307 599 342 659 may 13,022 26,905 521 1,076 541 1,108 June 13,120 20,625 524 836 545 857 July 10o,485 13,525 419 541 441 577 August 5,240 14,750 210 190 230 226 September 5,290 14,700 217 188 256 256 October 5,345 u1,140 214 446 282 606 November 2,605 13,900 104 556 252 756 December 0 0 0 0 216 512 ANNEX 4 Table 1 JORDA.N NORTHST GHOR IIGATION AND RURAL DEMOP(NKT PROJECT Net Daily Marketable Supply of Frukits and Vegetables in the Pro.Ject Area At Full Production Total Fruits and Vegetables Marketed Iily Fruits Vegetables Frou PFroject Froi Outside Procluction Marketed Production Marketed Area AeM Total January 2@20 207 404 350 557 175 732 February 3lio 131 426 369 500 184 684 March 200 93 317 271 364 136 500 April 60 55 599 525 580 269 849 May 32 29 1,076 955 984 478 1,462 June 32 29 836 738 767 369 1,136 July 36 32 541 473 505 237 742 August 36 32 190 157 189 79 268 September 68 62 188 155 217 78 295 October 260 150 446 387 537 194 731 November 20o 188 556 486 674 243 917 December '12 985 0 0 485 0 485 JORDAN NORTHrAST GHOR IRRIGATION AND RURAL DEVEIOPMENT PROJECT Staffing and Costs of Assembly Markets and Packing and Grading Stations First Year Second Year Third Year No. Months Salary No. Months Salary No. Months Salary Assembly Markets and Packing and Grading Stations (JD) (JD) (JD) Permanent Staff Director 1 6 600 1 12 1,200 1 12 1,200 Asst. Directors 2 6 900 2 12 1,800 2 12 1,800 Accountants 2 6 720 4 12 2,8&0 Clerks 2 6 790 4 12 2-b80 Scales Operators 2 6 360 4 12 1,440 Auctioneers 6 6 2,160 12 8 5,760 Sub Total 3 1,500 15 6,960 27 15,960 Assembly Labor, Markets 14 6 2,100 14 8 2,800 Packing Houses Technicians 2 6 840 2 6 840 2 12 1,680 Formen 2 6 720 4 12 2,880 Packers - 20 3 1,800 20 6 3,600 Sub Total 2 840 24 3,360 26 8,160 TOTAL _5 2?3140 12,420 6 214,120 F Table 1 Page 1 JORIAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT List of Equipment and Materials Item Number Estimated Cost (US$) 1. Irrigation a. EquiPment Land Rover, 4 wheel drive 8 40,000 Motorcycle 4 2,000 Backhoe, 125 hp 1 35,000 Bulldozer, 140 hp 2 50,000 Bulldozer, 75 hp 2 40,000 Dragline, i 1 30,000 Flatbed Truck 1 30,000 Truck, 10 ton 4 32,000 Motor Grader, 125 hp 1 27,000 Road Roller 1 15,000 Water Tanker 1 10,000 Office 20,000 Workshop Equipment 20,000 Spare Parts 40,000 Subtotal 391,000 b. Materials Asbestos Cement Pipe and Fittings 15,000 Valves, Meters, Outlets, etc: 5,000 Subtotal 20,000 Total 411,000 2. Research and Extension a. Equipment Pick-up, 2½Lon 4 20,000 Motorcycle 10 5,000 Tractor, 80 hp with implements 1 15,000 Tractor, 35 hp with implements 1 8,000 Rototiller 2 2,000 Seeding and Fertilizing Equipment 2.000 Sprayers for Pesticide and Herbicide , 000 Laboratory Equipment 6o000 Subtotal ,00' b. Materials Fku-niture 5,000 Seeds 3,000 Fertilizer 3,000 Pesticide and Herbicide 10,000 Miscellaneous Supplies 8,000 Subtotal 2000° Total 90,000 ANNEX 5 Table, Page ,' JORDAN NORTHBAST GHOR IRRIGATION AND RURAL DEVELOPE,N'r ?PAOJECT List of Equipment and Materials Item Number Estimated Cost 3. Marketing Equipment for Packing and Grading Center 40,000 Equipment for Assembly Markets 19,000 Total 59,000 Grand Total 560,000 ANNEX 6 Page 1 JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT Organization and Consultants Jordan Valley Commission 1. Xhe headquarters organization of JVC would consist of a President (also the Director General), a Deputy Director General and four directorates, each of which would be headed by a Director. These directorates would deal with (a) irrigation, drainage and farm roads; (b) agriculture, marketing and credit; (c) town planning, housing, public services and highways; and (d) ad- ministration and financial management. In addition an officer, directly re- porting to the Deputy Director General, would deal with social and community development aspects. JVC will be assisted in its task by a Liaison and Ad- visory Committee (LAC), which consists of senior representatives of various agencies that.are directly involved in the project execution. Organization of JVC and LAC is illustrated in Chart 8380. The Law establishing JVC is attached as an enclosure to this Anrex. 2. JVC would also establish a field office at Deir Alla, which is lo- cated in the central part of the Valley, outside the project area. This office, assisted by the headquarters staff, would broadly supervise all field activities of the various executing agencies in the whole Valley, in- cluding the project area. Cost of JVC headquarters staff and its field of- fice would be met by the three development projects in the Valley; the IDA project would pay for one-third of the costs. Consultants 3. Irrigation Works. The irrigation works constitute about 70% of the project works and include two diversion weirs and siltation reservoirs, a sprinkler irrigation system to serve about 1,760 ha above and about 1,000 ha below the East Ghor Canal, farm roads to serve the area to be irrigated above the East Ghor Canal, land levelling in about 3,000 ha and tile drain- age of about 520 ha out of the area irrigated by the East Ghor Canal, and some works on the East Ghor Canal. These works would be included in one construction contract. Out of the minor development works the filtration and chlorination of the domestic water supply and installation of pipes conveying the treated water to the villages would also be included in the contract for irrigation works. 4. Jordan has neither the experience nor the staff to design and supervise the construction of the above works. Therefore, an experienced consulting firm would be employed by JVC to assist NRA in the design of these works and for supervision of their construction. This firm would also train the local engineers and other technical staff in design, con- struction, operation and maintenance of these works. The proposed terms ANNEX 6 Page 2 of reference for this consulting firm, for the aforementioned works, are summarized below: (i) carry out surveys, investigations and tests necessary to prepare detailed designs; (ii) prepare detailed designs, contract drawings, technical specifications and other contract documents for the con- struction contract; (iii) evaluate bids and make recommendations for award of the -onstruction contract; (iv) administer the construction contract, approve contractor's work schedules, verify work performed each month and certify payments due; (v) check layout of works and supervise their construction in all respects; (vi) prepare instructions for operation and maintenance of the works; (vii) prepare specifications and contract documents for the pro- curement of project equipment and materials; (viii) assist JVC in analysis of bids for equipment supply contract, make recommendations for its award and administer this con- tract after award; (ix) verify deliveries under the equipment supply contract and certify payments due; and (x) train local engineers and other technical staff seconded for this purpose in design, construction, operation and maintenance of the irrigation works. The consulting firm would prepare for JVC quarterly and annual progress reports, as directed. 5. The consulting firm would appoint an experienced engineer to head its project team in Jordan. Other experienced engineers and experts would be employed by the firm, as necessary, in accordance with work requirements. The estimated manpower requirement of the firm is given in Table 1. As nec- essary, local engineers and other staff would be seconded by JVC and NRA to work with the consulting firm, to receive in-service training on design, con- struction supervision and operation and maintenance of the irrigation works. Enclosure to ANNEX 6 Page 1 JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT LAW ESTABLISHING THE JORDAN VALLEY COMMISSION Section I - This law shall be called "The Jordan Valley Commission Law of 1973" and it shall come into effect as from the date of its publication in the Official Gazette. 2/ Section II - All the words and terms mentioned in this Law shall have the meaning asc!ibed to them hereunder unless an inten- tion to the contrary has been indicated. (a) The term "Jordan Valley" means: the Ghcr Areas in the basin of the Jordan River including the neighboring and overlooking heights and the side Wadis, as shown in the plan attached to this Law. (b) The word "Commission" means the commission for the development of the Jordan Valley which is estab- lished by virtue of this Law. Section III - There shall be established by virtue of this Law a Com- mission called "The Jordan Valley Commission", composed of a President of ministerial rank and three members to be appointed by the Council of Ministers on their per- sonal merits on the recommendation of the President of the Commission and they may be from the governmental staff or from outside. The term of office shall be for three years subject to renewal. Section IV - The Commission shall be responsible for the economic and social development of the Jordan Valley, and may cons- truct and carry out to achieve the said goal, including the repair and supply of materials to public and private construction, study, design and execution of irrigation, agriculture and domestic water projects, town planning, processing and marketing of agricultural products, es- tablishment of public services, health, social, educa- tional and touristic services centres and others. Section V - The President of the Commission shall be appointed by a Royal Decree based on a decision of the Council of Minis- ters. 1/ Free translation supplied by the Jordan Valley Commission to the CP mission. 2/ Published in the Official Gazette, vide no. 2402, dated 1.2.1973. Enclosure to ANNEX 6 Page 2 Section VI - The President of the CoPmmission shall be the executive general manager of the Commission and the Council of Ministers shall determine his salary, allowances and conditions of services. Section VII - The President of the Commission may delegate in writing any of his powers to any member of the Commission or official thereof. Section VIII - (a) The Commission shall elect a Vice-President who shall act on his behalf during his absence outside the country. (b) The meetings of the Commission shall not be valid unless they are attended by an absolute majority of its members. Decisions shall be taken by the majority of those attending. Section IX - The Commission shall determine the dates of its meetings, the method of invitation, the procedure therein and any other matters relating thereto. Section X - The Commission may invite whomsoever it deems necessary to participate in its sessions to discuss any plan or subject, provided that they shall not have the right to vote. Section XI - The Commission shall have the right of acquisition and immediate possession by virtue of effective laws, of lands and water rights or both and any other easements relating to land or water in the areas falling within the Jordan Valley. Section XII - The Commission shall enjoy financial and administrative independence and the Council of Ministers may order that its accounts be audited in the manner it deems fit. The Commission shall be a legal entity and may purchase, rent and own movable and immovable property, enter into contract, institute legal suits in its name and delegate one of the officials of the Public Prosecution Depart- ment to represent it in the judicial proceedings and may appoint an attorney of its own. Section XIII - (a) The Commission may delegate to the governmental ministries, departments and corporations the execu- tion of works and projects as falls within their specialtv, according to conditions to be agreed upon. Enclosure to ANNEX 6 Page 3 (b) Notwithstanding the p-ovisions of paragraph (a) of this section, the Comiission may execute the works and projects in any other manner it deems fit including: i. The establishment of its own cadre whom the Commission may delegate to work thereon, and staff the Commis- sion with special employees for the above purpose. ii. The contracting with local and foreign consulting offices and firms and con- tractors. Section XIV - (a) The sources of the Commission's finance shall be the funds alloted by the government in the budget for the Commission. (b) Investment of the Commission's receipts and other revenues. (c) Loans, gifts and local and foreign aid-funds con- tracted by the Commission with the sanction of the Council of Ministers. Section XV - The Commission shall have the right to operate completely or partially any completed projects until its operation is transferred to the ministry, department, corporation, municipality or village council. Section XVI - Any person authorized by the Commission may carry out investigations or any other works and may enter any land in the Jordan Valley, and the Commission shall pay to the owner of the land fair compensation for any material damage caused as a result of the pursuit of the duties by the said person. Section XVII - The ministry, department or corporation charged with the execution of any project shall appoint a manager for that project or work to be agreed upon by the Commission, shall be responsible directly to the President of She commission or to whomsoever it authorizes; it shall have all the necessary powers and shall be supplied with the required staff and other needs to enable it to carry out the work with which it is charged. Enclosure to ANNEX 6 Page 4 Section XVIII - A special fund shall be established in the Commission in which shall be deposited all its funds and the Commis- sion may deposit the said fund in a special account or transaction with the Central Bank in the capital and with any of the local banks in the governorates. Section XIX - (a) The Commission shall have its own cadre of staff and the provisions of the Civil Pension Law No. (34) of 1959 and amendments thereto, together with provisions of the Civil Service Regulation No. (23) of 1966 or any other legislation substituting there- fore, shall be applied to the classified staff, provided that the President of the Commission shall have the powers of a Minister and the Vice-President or whomsoever he authorizes shall have the powers of the Deputy Minister, which the said regulations define. (b) As for the unclassified staff and employees, the Commission may issue special regulations for them by virtue of the provisions of this Law, to deter- mine their appointment, rights, grades, dismissal, termination of service, compensation and all admi- nistrative matters relating to them. Section XX - The Commission shall prepare a draft budget to be ap- proved annually by the Council of Ministers. Section XXI - The funds of the Commission shall be considered as state funds and shall be collected by virtue of their provi- sions of the collection of State Funds Law in effect, and the Commission shall have for the said purpose all the powers granted to the Administrative Governor and the collection of State Funds Committee mentioned in that Law. Section XXII - The Prime Minister may invite any official from any ministry, board, department or corporation, to serve with the Commission cadre for the period of time speci- fied in their order, and the service of the pensionable official in this Commission shall be considered as pen- sionable service. Section XXIII - No public construction works in the Jordan Valley shall be carried out except with the consent of the Commission, provided that this shall not apply to the maintenance, administration and operation of the present government construction works and public services. Enclosure to ANNEX 6 Page 5 Section XXIV - No private buildings or construction works of whatever kind or for whatever purpose shall be constructed unless a permit has been issued by the Commission, provided that this shall not apply to the construction works under execution at the date this Law comes into effect or to the land irrigation works. Section XXV - Government land in the Jordan Valley shall not be loaned, rented or sold except with the consent of the Commission. Section XXVI - The annual remuneration of the President and members of the Commission shall be determined by the Council of Ministers. Section XXVII - Any person who commits a breach of any of the provisions of this Law or of the regulations issued thereunder, shall be punished with imprisonment for a period not ex- ceeding two years or a fine not less than five dinars or with both penalties. Section XXVIII - The Council of Ministers may on the recommendation of the Commission issue the regulations which it deems fit for carrying out the provision of this Law. Section XYIX - The Prime Minister and the Ministers shall be charged with carrying out of the provisions of this Law each within his jurisdiction. I ANNEX 6 Table 1 JORDAN NORTHEAST GHiOR IRRIGA1ION AND RURAL DEVELOPMENT PROJECT Manpower Requirement of Consultants Number Category of experts 1974 1975 1976 T577 Total - man/months- Chief Resident Engineer 1 9 12 12 6 39 Design Engineer 2 18 24 - - 12 Specifications Engineer 1 9 3 - - 12 Construction Engineer 3-4 - 24 48 12 8b Short-term specialists 2 - 3 3 - 6 Total 36 66 63 18 183 ORGANIZATION OF JORDAN VALLEY COMMISSION 1 ~~~~~JORDAN VALLEY LIAISON AND ADVISORY COMMITTEE COMMISSION President jordan Vaiiey Comm. Chairman President 1 Vice Pres. of Natural Res. Auth. Member Commissioners 3 Deputy Minister of Agriculture - Deputy Minister of Public Works - Deputy Minister of Interior for - Municipal and Rural Affairs Deputy Dir. General of Agricultural - Credit Corporation Director of Agric. Marketing Organiz. -Cp Head of Agricultural Division o au of National Planning Council , Deputy Dir, of Cooperative Organiz. - Director General Rep.Ministry of Education - Rep. Ministry of Health - Rep. Telecommunication Corp. - Dir. Gen. of the Electric Authority - Ministry of National Economy - Dir. of Fin. Mgmt.JVC -Secretary, Deputy Director General SOCIAL (I COMMUNITY PUBLIC RELATIONS Senior Officer 1 Professional Staff 2 Other Staff - . Other Staff 2 I~~~ . .. ,,- IRRIGATION DRAINAGE AGRICULTURE MARKETING HOUSING & RURAL FINANCIAL MANAGEMENT AND FARM ROADS AND CREDIT DEVELOPMENT AND ADMINISTRATION Director 1 Director 1 Director 1 DIRECTOR 1 Professional Staff 5 Professional Staff 3 Professional Staff 8 Professional Staff 6 Other Staff 4 Other Staff 5 Other Staff 8 Other Staff 14 World Bank-8671 ANNEX 7 Page . JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT Water Demand, Supply and Quality Water Demand 1. Water requirements of crops have been estimated using the Blaney Criddle method with modified crop factors. The mean temperature was calculated by taking half the sum of the maximum and minimum monthly temperatures at North Shuneh. The percentage of day time hours as percentage of the year correspond- ing to 320 latitude North has been used. Effective rainfall was assumed to be 65% of precipitation from 75 to 100 mm per month, 82% of precipitation between 50 and 75/mm, 90% of precipitation between 25 and 50/mm, and 95% of precipitation between 10 and 25 mm; less than 10 mm per month was ignored. Crop factors recommended by Blaney Criddle and the US Soil Conservation Serv- ice were adjusted for stage of growth and average prevailing temperature. For all crops planted in the dry season a preirrigation of 60 mm was added. 2. Average water requirements are low because the main growing seasons coincide in part with the period of precipitation. Demand is highest in the months of August, September and October, when net water requirements average between 850 and 1,130 m3/ha, Table 1. 3. With the project, water requirements will increase mainly because of 1,040 ha additional land and a higher cropping intensity, which will in- crease from 106% to 120% on irrigated land. Assuming a 65% and 80% irriga- tion efficiency respectively for gravity and sprinkler systems and based on the proposed development schedule and cropping pattern the gross irrigation requirements would be as below: Gravity without Gravity with Dry Total Gross Ir- Improvement Improvement Sprinklers Land Area rigatioa Year ---- -------- ha --- Demand - Oct.73-Sept.74 6,660 0 0 1,040 7,700 70.3 Oct.74-Sept.75 4,190 2,470 0 1,040 7,700 77.3 Oct.75-Sept.76 1,720 4,940 300 740 7,700 74,3 Oct.76-Sept.77 860 4,940 1,460 440 7,700 75.9 Oct.77-Sept.78 0 4,940 2,560 200 7,700 77.3 Oct.78-Sept.79 0 4,940 2,760 0 7,700 80.4 Oct.79-Sept.80 0 4,940 2,760 0 7,70t 80.4 ANNEX 7 Page 2 Water Supply 4. The Yarmouk River and The East Ghor Canal. Currently 6,660 ha is being irrigated in the project area (7,700 ha), of which 5,940 ha receive its water supply from the Yarmouk river through the East Chor Canal and 720 ha is irrigated by the local use of the waters of Wadis Arab, Ziglab and Jurum. The remaining 1,040 ha, rainfed at present, would be brought under irrigation under the project. The Yarmouk river, with a catchment of 6,800 km2, has an average annual flow of 438 Mm3, varying from a minimum of 240 Mm3 to a maximum of 870 Mm3. Its monthly flows have been recorded since 1928. The East Ghor Canal offtakes from the river near Adasiya and flows in a general north-south direction. It has a capacity of 20 m3/sec and an existing length of 78 km, of which the first 38 km lies in the project area. 5. At present, according to Nedeco (The Hague) and Dar Al-Handasah (Lebanon), the average annual water use in the Valley is about 15,830 m3/ha. Under the project, about 1,000 ha of the East Ghor Canal area would be con- verted into sprinkler irrigation using the waters of Wadis Arab, Ziglab and Jurum (para. 4), and the other 4,940 ha would continue under gravity irriga- tion from the Canal. On the basis of the recommended cropping pattern, the gross average annual water demand for gravity irrigation of 4,940 ha, esti- mated as 11,210 mr/ha (Table 1) would be about 55.3 Mm3 against its present use of about 78.2 Mm3. 6. Wadis Arab, Ziglab and Jurum. These three perennial Wadis originate from the plateau and are fed by deep springs. Apart from the Yarmouk and Zarqa rivers, these Wadis are the most important eastern tributaries of the Jordan river. With the completion of the East Ghor Canal in 1965, the surplus flou- of these wadis, after local irrigation use (720 ha) is inlet to the canal. @Flow records of Wadis Arab, Ziglab and Jurum are available from 1928, but are irtcomplete between 1963 and 1971. Therefore, for project purposes only ten ve4rs continuous dates prior to 1962-63, presented in Tables 2, 3 and 4, have been considered. Flow in these wadis is rather steady with slight monthly variations ard surface flow contribution, due to winter rainfall, is small. Thie a;erage annual base flow of Wadis Arab, Ziglab and Jurum is respectively 31.8 mi.3, 10.6 Mm3 and 11.2 Mm3. A dam with storage capacity of 4.3 Mm3 exists on 'ladt Z.glab and the construction of a dam on Wadi Arab, under Japanese bi- _Werral aid, is under consideration. Under the project, about 2,760 ha would be irrigated by a sprinkler system from the combined waters of Wadis Arab, Ziglab and Jurum, of which 1,760 ha lie above and about 1,000 ha below the East Ghor Canal. On the basis of the recommended cropping pattern, the gross average annual water demand for this area, estimated at 9,112 m3/ha (Table 1), would be 25.1 Mm3, against the present use of about 27.9 Mm3. The combined annual availability of supplies from the three wadis, without taking into account the regulation at either the existing Ziglab dam or the future Arab dam, varies from a minimum of 35.4 MO3 to a maximum of 71.1 Mm3, with an average of 53.5 MO3. ANNEX 7 Page 3 8. At present the irrigated pairt (6,660 ha) of the project area is using about 105.4 Mm3 of water annua:ly from the Yarmouk river and the three wadis. After the project, the total annual water demand for the project area (7,700 ha), from these sources, would be about 80.4 MO3. Even after bring- ing 1,040 ha of new area under irrigation and improving the intensity of ir- rigation from 106% to 120% on 6,660 ha, the project would result in an esti- mated annual saving of about 25 Mm3 of water. Water Quality 9. The National Resources Authority is responsible for the water qual- ity control in the valley. Numerous analysis of the different waters have been made and the results are shown in Table 5. In general waters are satis- factory for irrigation. The quality of the water varies inversely with the discharge, consequently improves significantly in the winter. It would fur- ther improve after storage facilities planned upstream from the East Ghor Canal intake on the Yarmouk River become available because of mixing of summer and winter flows. According to the United States Department of Agriculture- Salinity Laboratory Standards the waters would be classified as C2S1 with mediunm salinity and very low sodium or alkali hazard. Such waters are suit- able for irrigation when the drainage requirements are met. Sensitive crops like lemons, oranges, and eggplants are already grown successfully in irri- gated project areas. JORDAN NORTHEAST HG1R IR&IGATION 'a RURAL DEVELO.CMBNT PROJECT Esteted Water Requirrements JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER TOTAL I.CLIMIATE DATA Average Temp. ( C) 14.4 15.5 17.5 21.3 25.5 28.6 30.5 31.3 29.3 26.6 21.7 16.7 Percent Daytime hours(%) 7.20 6.97 8.37 8.72 9.63 9.60 9.77 9.28 8.34 7 93 7.11 7.05 Rainfall (ms) 7973 60.0 48.2 16.8 7.8 - - - 11.7 49.1 86.2 359.1 Effective Rainfall (em) 51.5 42.2 43.4 16.0 - 11.1 44.2 56.0 264.4 CROPPED AREA (ha) JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER TOTAL 2.ESTIMATED NET WATER OCO m REQUIREMNTS Crop Planting Season Citrus 1,150 - - 80 621 1,026 1,587 1,759 1,748 1,479 1,133 168 - Banana 350 - 67 140 385 609 791 896 882 721 532 214 42 Tomato 1 440 - - 141 519 700 805 - - - - - - 2 380 26 79 - - - - _ _ 604 429 2S8 - 3 500 60 95 215 - - _ _ 695 205 115 4 500 85 120 200 480 -- - - - 360 25 Eggplant 1 500 - - 160 b90 795 935 1t,U.b i,010 825 4C0 2 440 29 94 176 422 638 726 - - 700 497 295 79 3 540 65 103 216 518 783 988 999 - - 707 221 125 Pepper 1 140 - - 40 165 212 266 287 282 231 112 - - 2 150 9 29 60 144 218 248 - - 238 170 101 27 3 140 20 32 68 163 247 311 315 - - 223 70 33 Pocato 1 140 - - 40 154 203 - - - - - - - 2 320 - - - 579 512 461 198 - Cauliflower 250 30 '3 - - - 398 283 168 45 Cabbage 250 30 63 - - - 398 283 168 45 Cucumber 1 250 - - 80 240 340 - - - - - - 2 200 - - - - - - - 362 296 252 100 - Squash 1 240 - - 77 230 346 - - - - _ 2 170 - - - - - 307 262 214 85 - Broad Beans 380 - - - - 604 483 220 46 Maiz 1 240 - - 101 264 382 - - - - - 2 720 - - - - - 1,164 1,403 1,281 1,008 - - Onion 1 185 11 24 30 - _ - - 257 72 22 2 195 12 37 62 101 - - - - - - 142 10 Wheat 400 68 124 160 216 -556 156 37 TOTAL 99,i70 445 930 2,046 5,212 6,499 6,657 6,445 6,573 8,549 8,695 3,431 651 56,133 Nit Water Requirement ' m /ha m ,/ha (PAced on Physical Area 7,700 ha) 59 121 265 677 844 864 837 854 1,110 1,129 445 85 7,290 3.GROSS WATER 3 BEQUIREIDENTS ai3iha 74 151 331 846 1 955 1,080 1.046 1 068 1.388 1.411 56 106 9.112 Sprinkler 80% Efficiency 91. 3Sf 408 1A2041 1 298 1 32 1.288 173. 1.~708 1,737 684 131 11,215 Gravity IyvIt 65% Efficiency _____ JORDAN NORTHEAST GHOR IRRIA ATION AND RURAL DEVELOPENT PROJECT Wadi Arab Monthly Flows Water Year October November December January February March April M June July August September Total ------------------------------------------- Mm3 ---------------------------------------------------- 1962-63 /I 1.6 1.6 1.9 2.3 2.3 1.6 1.3 1.5 1.3 1.3 1.4 1.4 19.5 1961-62 1.5 1.6 2.1 2.0 1.9 1.9 1.4 1.4 1.3 1.4 1.3 1.4 19.2 1960-61 3.0 3.1 2.8 3.0 2.2 2.0 1.9 1.7 1.4 1.5 1.5 1.5 25.6 1959-60 2.7 2.7 2.8 2.5 2.3 2.7 2.3 2.4 2.3 2.4 2.6 2.5 30.2 1958-59 2.7 2.6 2.9 3.0 2.9 3.3 2.6 2.7 2.6 2.7 2.7 3.3 34.0 1957-58 2.1 3.2 3.5 3.7 3.1 2.2 2.2 2.4 2.6 2.6 2.7 2.6 32.9 1956-57 2.8 2.7 3.6 3.6 3.4 3.6 2.8 2.7 2.6 2.7 2.7 2.7 35.9 1955-56 3.1 3.9 4.1 3.7 3.4 3.5 2.8 2.7 2.6 2.6 2.6 2.5 37.5 1954-55 3.5 3.5 3.9 4.2 3.9 3.2 3.7 3.2 3.1 2.9 2.9 2.9 40.9 1953-54 2.9 5.3 3.1 3.3 3.9 3.5 3.4 3.5 3.3 3.1 3.2 3.3 41.8 Average 2.59 3.02 3.07 3.13 2.93 2.75 2.44 2.42 2.31 2.32 2.36 2.41 31.75 Due to %r of 1967 and civil disturbances,flow data for years after 1962-63 is either incomplete or not available. JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT Wadi Ziglab Monthly Flows Water Year October November December January February March April Ma June July August September Total -------------------------------------------- mn3 -------------------------------------------------- 1962-63 /1 o.6 0.7 0.7 0.8 0.7 0.7 0.5 o.6 o.4 0.5 0.5 0.5 7.2 1961-62 - 0.5 0.5 1.5 1.1 1.1 1.0 0.7 0.5 0.8 0.5 0.5 0.5 9.2 1960-61 o.6 0.7 0.7 0.8 0.7 0.5 O.7 0.7 o.6 0.5 0.5 0.5 7.5 1959-60 o.8 0.7 0.8 0.7 o.6 0.7 o.; 0.7 o.6 o.6 0.5 0.5 8.1 1958-59 0.9 0.9 0.9 1.0 1.0 0.9 0.8 0.8 0.7 0.7 0.7 0.7 10.0 1957-58 1.0 1.1 1.8 1.7 1.0 0.9 0.8 0.9 0.8 0.9 0.9 0.9 12.7 1956-57 0.8 0.8 1.6 1.6 1.0 1.2 0.8 0.8 0.8 0.9 0.9 0.9 12.1 l15556 Q9 1.3 1.' 1.3 0.8 1.1 o.8 0.8 0.8 0.8 0.8 0.8 11.6 1954-55 1.2 1.1 1.h 1.2 0.9 1.1 1.0 1.0 0.9 0.9 0.9 0.9 12.5 1953-54 1.0 2.0 1.3 1.2 1.8 1.0 1.1 1.1 1.0 1.0 1.1 1.1 14.7 Average 0.83 0.98 1.21 1.14 o.96 0.91 0.81 0.79 0.73 0.73 0.73 0.73 10.5S A Due to war of 1967 and civil disturbances, flow data for years after 1962-63 is either incomplete or not available. m- 3 JORDAN NORTHEAT GHOR IRRIGATION AND RURAL DEVMOPMENT PROJECT Wadi Turun Monthly Flow!5 Iater Year October November December January February March April May June July August September Total ------------------------------------------_ _________________________________- -- - -------- 1962-63 /1 1.0 0.8 1.1 0.8 1.1 0.8 0.7 1.0 0.8 0.7 0.9 0.9 10.6 1961-62 0.7 0.7 o.6 0.6 0.5 0.7 0.8 0.9 0.9 0.9 0.9 0.8 9.0 1960-61 0.7 0.7 0.7 0.7 0.6 0.7 0.8 0.9 0.9 0.7 o.6 o.6 8.6 1959-60 0.9 o.8 o.8 0.8 0.8 0.8 0.7 0.8 0.7 0.7 0.7 0.7 9.2 1958-59 1.1 1.1 1.0 ,1.0 0.9 1.0 0.9 0.9 0.9 0.9 0.9 0.9 11.5 1957-58 1.1 1.0 1.1 1.1 1.0 1.0 1.0 1.0 1.0 1.1 1.1 1.0- 12.5 1956-57 0.9 0.9 1.0 1.0 0.9 0.9 0.9 1.0 0.9 1.0 1.0 1.0 U1.4 1955-56 1.0 1.0 0.9 0.8 0.7 0.8 0.9 0.9 0.9 1.0 1.0 0.9 10.8 1954-55 1.3 1.3 1.4 1.2 1.1 1.2 1.1 1.2 1.1 1.1 1.0 0.9 13.9 1953-54 1.1 1.2 1.2 1.3 1.1 1.1 1.2 1.3 1.3 1.3 1.3 1.2 14.6 Average 0.98 0.95 0.98 0.93 0.87 0.90 0.90 0.99 0.94 0.94 0.94 0.89 11.21 /1 Flow data for years after 1962-63 is either incomplete or not available. CD P JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT Water Quality Li E.C. T.D.S. p Ca++ MR++ Na+ K+ ci- co3 HCO3 SSP 2 SAR /3 Class mnhos/cm-Meq./l _ _ _ _ _ _ _ WADI ARAB Mean Value 0.630 403 8.30 3.00 2.90 1.50 - 1.60 0.15 4.00 1.22 20.3 0.9 C2 Si Minimum Value 0.370 237 7.80 0.40 0.50 0.50 - 0.50 0.00 0.30 0.30 33.3 0.7 C2 S Maximum Value 0.910 582 9.60 4.00 4.40 2.09 - 2.90 0.70 5.10 2.04 19.9 1.0 C3 21 WADI JURUM Mean Value 0.761 504 7.9 3.8 3.50 1.75 - 2.08 0.25 5.13 0.98 19.3 0.9 C3 S1 Minimum Value 0.700 446 7.7 2.00 2.40 1.67 - 2.00 0.00 4.00 0.42 27.5 1.1 C2 S Maximum Value 0.880 363 8.2 4.90 5.00 1.84 - 2.30 0.30 6.20 1.92 15.7 0.3 C3 Si WADI ZIGLAB Mean Value 0.635 407 8.0 2.68 3.00 1.13 - 1.38 0.26 4.50 0.71 16.6 0.7 C S Mif.im- Value $) }8Q 24 7 0 1.60 1.00 0.50 - 0.60 0.00 2.30 0.54 16.1 0.4 c2 SI Maximum Value 0.760 486 8.6 3.10 3.60 1.67 - 3.30 0.05 5.40 1.67 19.9 0.9 C3 1 YARMOUKI RIVER Mean Value 0.740 470 8.20 2.50 2.20 2.43 0.14 2.01 0.18 3.73 1.10 33.4 1.5 C S Minimum Value 0.270 173 7.33 1.00 0.90 0.50 0.09 0.50 0.00 1.67 0.28 20.1 0.5 c2 S Maximum Value 1.670 1069 9.40 3.45 3.60 7.00 0.75 8.40 0.50 5.56 4.20 47.3 3.7 C3 S /1 Analysis made by the Natural Resourcea Auth'ority during 1956 and 1968 /2 SSP = Sol. Sodium Concentration (Meq..1) x 100 - Total Cation Concentration (Meq./l) - C 13 SAR = N.-a+ + m / Ca++ Mg +-+ 2 JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT SCHEDULE OF CONSTRUCTION IDA FISCAL 1974 1975 1976 1977 1978 JORDAN FISCAL AND CALENDAR 1973 1974 1975 1976 1977 1978 MAIN WORKS IRRIGATION WORKS CONTRACT Design and Tender Documents Prequalification of Contractors Bids and Award of Contract Construction of Diversion Weirs and Reservoirs Construction of Primary Pipeline _ or,strtctioun of Distributioin N-urk . Construction of Farms Roads Land Leveling Tile Drainage Construction of Works on East Ghor Canal OTHER WORKS C Assembly Markets On-Farm Development - MINOR WORKS Domestic Water Supply u Health Centers Schools Vocational Training Center Roads Community Centers World Bank-8379(R) I! Ar%NX 9 JORDAN NORTIEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT Cost Estimates L Foreign MAIN WORKS Local Foreign Total Local Foreign Total Exchange ----- - -(JDo'ooo) --- (ZZ0us$'0 ooo-)- _-_---,S 1. Irrigat ion Works Diversi ,n Weirs 16 24 40 49 75 124 60 StItation Reservoirs 12 8 20 37 25 62 40 Primary Pipeline 244 366 610 759 1,138 1,897 60 Distriblution Network 216 324 540 672 1,007 1,679 60 Farm Ro:sds 24 i6 40 74 50 124 40 Land Lev-eling i44 96 240 448 299 747 40 Tile Drt,inage 35 35 70 109 109 218 50 Works oni East Ghor Canal 25 25 50 78 78 156 50 Subto-;al 716 894 1,610 2,77 2,787 5,007 56 2. Other Works Primary Markets 25 25 50 78 78 156 50 3. Land Acquisition 20 - 20 62 - 62 - 4. Equipmeit and Materials Irrigation 13 119 132 42 369 411 90 Research and Extension 4 25 29 11 79 90 88 Marketing 2 17 19 6 53 59 90 Subto;al 19 161 59 501 560 9 5 Incremental Working Capital On-Farm Sprinkler Equipment 72 288 360 224 896 1,120 80 Farm Machinery 26 54 80 81 168 249 67 Annual Inputs 198 162 360 615 5o4 1,119 45 Subtotal 297 504 7 920 1,57 27 63 6. Engineering and Administration Project Organization 260 - 260 809 - 809 - Researca and Extension 70 - 70 218 - 218 - Marketing 5D 40 90 156 124 280 44 Consultants 26 104 130 80 324 V 404 80 Subtotal 70 7 5 07 70 1 3 w 1,711 26 TOTAL 1,787 1,728 3,210 5,37 9,84 54 7. Contingencies 25 fPhysical 185 219 404 576 681 1,252 54 Price 431 462 893 1,340 1,435 2,763 22 Subtotal 616 681 1,297 1,916 2,116 4,015 53 GRAND TOTAL 2,098 2409 4,507 6,524 2g 14,005 MINOR WORKS 1. Works Water Supply - Mains 60 90 150 187 280 467 60 Distribution 16 24 40 49 75 124 60 Health Centers 22 14 36 67 45 112 40 Schools 209 140 349 o50 435 1,085 sO Vocatic nal Training Center 30 20 50 94 62 156 40 Roads 14 6 20 43 19 62 30 Community Centers 17 3 25 55 23 78 30 Subtctal v7 302 670 J775 939 277B 45 2. Land Acquisition 2 - 2 6 - 6 - 3. Equipment and Materials 21 84 105 65 260 325 80 4. Engineering and Administration 32 6 38 99 19 118 16 7m 392 T71 1,315 1,27 2,533 48 5. Contingencies 43 Physical 42 39 81 131 122 253 48 Price 108 99 207 335 308 643 48 Subtotal 150 13m 2 78 430 4 GRAND TOTAL 573 530 1,103 1,781 1,648 3,429 48 OVERALL TOTAL 2_61 Z2. an 8 305 A 6 17.429 52 /1 Discrepencies due to rounding /2 For irrigation works, physical contingencies are estimated at 15%, and for all other items at 10%. For all civil works, price contingencies are compounded at annual rates of 12% (1974), 10% (1975), and 8% (1976 at,d 1977). For equipment and farm development costs, contingencies are compounded at annual rates of 9% (1974), 7% (1975) and 5% (1976-78). /3 At 159 f or physical and price JORBAN ANNEX 10 NORTHEAST GPiOR IRRIGATION AND RURAL DEv-LOPMENT PROJECT Schedule of Expenditure fl Tg8l Cost 1974 1975 1976 1977 1978 Total Porego Total Foreien Total Foreign Total Foreign Total PFor iRs TeEgi Forei2n MSAINIJORtSu,~o MAIN WORKS ------------------ us~~~~~~~~~~~~~~~~~~~~~~~,000 ---------------------------US--0-0-------------_--__---__-__--_--__-__-__--_--__-__--_ __ __ _--__-__--_--__-,_--_--__-__--_--__ -__ - 1. Irrigation Works Dfversiq WUeiro 124 75 - - 70 50 42 20 12 ;1 Siltation Reservoirs 62 25 - - 34 18 22 5 6 2 Primary Pipeline 1,897 1,138 _ _ 826 590 683 340 388 203 Distribotio- Networks 1,679 1,007 - - 530 410 730 370 419 227 Farn Roads 124 50 - - 70 37 42 10 12 3 Land Leveling 747 299 - - 420 220 251 50 76 29 Tile Drainage 218 109 - - 120 73 80 25 18 6 Works on Elot Gho Cans. 156 78 - - 90 52 60 20 6 i) Subtotal 5,007 2,781 - - 2,160 1,450 1,910 840 937 49: 2. Other Works Priary M-arkets 156 78 70 30 86 48 3. Laud Acquioition 62 - 30 - 32 - 4. inaipeent sod Material Irrigstion 411 369 30 27 - - 381 342 Re-eu-ch sod Entension 90 79 20 13 70 66 - - Marketing 59 53 _ - 59 53 Subtotal 560 501 50 40 129 119 381 342 - - 5. 1ncraeesal Working Capital O-fans Spriokler Equipment 1,120 896 - 190 150 400 320 530 426 Other Fans Iovestneots 249 168 - - - - 83 56 82 58 84 54 Annual Inputs 1,119 504 250 110 383 183 127 59 149 57 210 95 Subcotal 2,488 1,568 250 110 573 333 610 435 761 541 294 149 6. EoRineering and Adsinistration Project Organi-ati.o 809 - 114 - 260 - 270 - 165 Research and Extension 218 - 33 - 70 - 70 - 45 - M.rketi.g 280 124 33 15 100 40 110 40 37 29' Cionsuleants 404 324 150 115 130 110 100 80 24 19 Subtotal 1,711 448 330 130 560 150 550 120 271 48 Total 9,984 5,376 730 310 3,540 2,100 3,451 1,737 1,969 1,080 294 t49 7. ~0tignce L22544i1 23 13.6i Physi-ci 1,257 681 77 32 466 285 441 216 243 133 26 15 Price ~~~~~~ ~~~~~2.758 1,430 74 28 809 480 _1_C56 495 739 38l8 51 Subtotal 27 2,119 151 25 75 1,497 711 982 517 11 66 Grand Total 1 19 7L495 881 370 4815 2.865 4.948 LK - 2 1. Works WaterSuppl- Maro t 467 280 - - 70 70 352 180 45 33 - - SlotrfhotlsoM124 75 - - - 100 70 24 3 Health Centers 112 45 - - 100 45 12 - Schools 1,085 435 185 35 500 300 400 100 - - - Vocational Troining Center 156 62 65 25 91 37 - Roads 62 19 62 19 Co-unufty Ce-teru 78 23 37 15 41 8 _ 3 - Subtotal 2,084 939 250 60 860 486 905 358 69 35 2. Land Acnuirition 6 - 3 - 3 3. Equipment and Materials 325 260 - - 245 196 80 64 4. Soginnertne and Admintstion 118 19 47 19 50 _ 21 _ Total 2,533 1,218 300 79 1,158 682 1,006 422 69 35 5. Continoenc'ies A~ Physical 253 122 - - 142 75 100 42 11 5 Price 643 308 30 7 262 153 321 133 30 15 _ Subtotal 896 430 30 7 404 228 421 175 41 20 Grund Total 3,429 1. 64 8 335 86 910 1.427 97 110 55 - Overall Total kl4Z3 1_211 4 t_756 6_375 3_65045 405 215 /1 Discrepencies due to rounding /2 For irrigation works, physical contingencies am estimated at 15%, and for all other ite-s at 10%. Foe all civil works, price contft,gnncies are compounded at annual rates of 12% (1974), 10% (1975), and 84 (1976 and 1977). For equipment and fans development co.st, conting -ncies are co-poune-d at annual rstes of 9% (1974), 7% (1975) and 2% (1976-78). /3 At 15% for physical and price ANNEZi JORDAN NORTHUAST aGHCR IRRIGATION AND RURAL DEVSEOPMENT PROJECT Estimated Sdhwdule of Disbursements IDA Fiscal Year Cumulative Disbursement and Quzrter at End of Quarter (US$0'00) September 30, 1974 40 December 31, 1974 200 March 31, 1975 480 June 30, 1975 1,420 1975/76 September 30, 1975 2,220 December 31, 1975 3,440 March 31, 1976 3,970 June 30, 1976 L,550 eSPtber 30, 1976 5,390 December 31, 1976 5,800 March 31, 1977 6,390 June 30, 1977 6,850 pember 30, 1977 7,050 December 31, 1977 7,350 March 31, 1978 7,420 June 30, 1978 7.,470 Septber 30, 1978 7,500 ANNEX 12 Page 1 JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT Credit and Marketing Credit 1. Existing Facilities. The major source of seasonal credit (cash and in kind) in the project area is commission agents. The Agricultural Credit Corporation (ACC) which has received IDA credits in the past, has gained considerable experience and expanded its operations which, however, are still small in the project area. Its loans in the project area (north of Wadi Yabis) have risen from JD 15,000 in 1970 to JD 141,000 in 1972 and JD 124,000 during the first half of 1973. The ACC has a branch office at Wadi Yabis with a staff of seven. During 1972, 21% of its loans in the project area were seasonal, the balance was medium- and long-term. All ACC loans are secured by land or fixed property, and are not made to sharecroppers or ten- ants. 2. The Jordan Cooperative Societies, which prior to 1967 had concent- rated their activities in the West Bank, are weak in the project area. There are 12 small thrift and credit societies, sore of which are 20 to 25 years old but have part of their assets frozen. The two packing and grading sta- tions in the area have been nominally under the supervision of the Jordan Cooperative Organization but failed to operate most of the time partly due to insufficient management or supervision. Credit supplied by Cooperative Societies to the area is limited and about a third of its loans are in kind. These society are accustomed to deal with groups rather than individual far- mers and considers that credit operations can only succeed if subsidized. 3. There is thus a major seasonal credit deficit in the region which is now supplied partially by commission agents and ACC. Sharecroppers (60% of all farmers) borrow from commission agents or land owners at rates above the 8% charged by ACC (7% if paid on due date), but since commission agents also supply inputs and market most of the produce of the area, the real in- terest charged by commission agents can not be accurately determined. 4. Future Credit Requirements. After the project, farmers would re- quire medium-term loans for on-farm sprinkler equipment and seasonal loans for incremental annual production costs to attain the expected yield levels. JD 852,000 including contingencies and representing 80% of the total credit requirements, have been provided in the project. 5. ACC has demonstrated its ability to expand its lending activities satisfactorily when it has adequate funds. It has also indicated willingness to work through the Farmers Association (FA) in distributing the loans to ANNEX 12 Page 2 farmers in the project area and main.ain separate accounts for these activi- ties. Under these conditions ACC would be willing to make direct loans to individual farmers and sharecroppers. 6. A subsidiary loan agreement will be signed stipulating that Govern- ment will lend to ACC, through JVC, JD 800,000 at an interest rate of 4-1/4%. AkCC will on-lend to project farmers at its existing rates of 8% for seasonal loans, 7% if repaid on time, and 6% for medium-term loans. This will permit ACC a margin of about 2-3/4% on the average for project loans and loan col- lection through AMO and FA will assist ACC in improving its loan collection record. The lending rate to ACC and the on-lending rate to farmers would both be about 1% higher than the rates in the last IDA credit to Jordan for ACC. Although commercial credit terms are undoubtedly higher than ACC rates, commission agent practices obscure the effective rate of interest of commer- cial credit. Despite the higher interest rates of commercial credit, it would be impractical for ACC lending rates for project loans to be out of line withi other ACC loans. The rate of inflation in Jordan during 1970-72 was relatively low, 2% per year. Although it appears to have increased in 1973, the rate of increase is not yet accurately measured and farm product prices have not risen substantially. Marketing 7. In the second year of the project (1975 winter season) all crops would pass through the two assembly markets which would be operated by the Agricultural lHarketing Organization (AMO), with staff provided by the project. A4tO has worked with the UNDP agricultural Marketing project for the past three years and has developed much knowledge about the problems and possi- bilities involved in marketing, grading and packing. It has also developed knowledge about the nature of Jordan's major markets and what is needed to improve the competitiveness of Jordan's fruits and vegetables in these markets. W4hen the FA is able to take over the operations of the assembly markets the management and the trained staff will pass from AMO to the Farmers Associa- tion. The operational rights of the packing and grading stations, would be Y ~irlv transferred to AMO, and the stations would be prepared for operation an~i re-equipped (ANNEX 4) in order to commence trial packing and grading oper- ations. These stations and their staff would also be transferred to the FA when it is able to manage their operation. S. Provision is made in the project for a full-time specialist to supervise the operation of the assembly markets and packing and grading sta- tions for three years in addition to specialist services for shorter periods. The specialist would help in marketing fruits and vegetables, concentrating in the first year on initial field sorting jointly with the extension ser- vice and training of staff at the markets and packing houses. In the second year his major concern would be development of the domestic and neighboring markets for project area produce. His third year would be devoted to devel- oping other markets such as Europe, for specially graded, packed and shipped fruits and vegetables. ANNEX 12 Page 3 9. The role of ACC, MxO and FA in the provision of credit and market- ing would be expanded under the project to ensure that the close link between the provision of expanded services, increased production and improved market- ing is maintained, thereby ensuring success of the project and equitable dis- tribution of its benefits to all farmers, especially smaller farmers, the majoritv of whom are sharecroppers. The presert provision of credit, inputs and marketing services by commission agents and large farmers (often the same persons) works to the disadvantage of the smaller farmers and share- croppers. The extent of this disadvantage is difficult to quantify because of the disguised elements of costs and prices prevailing in such a system -- sharecroppers can not obtain loans directly and their produce is marketed against payments for credit and inputs. 10. Competition among commission agents is limited in the project area and their main concern appears to be with transactions outside the project area -- profits in the Amman or Irbid wholesale markets or in foreign markets. As a result, efficient and low cost provision of services in the project area ancl earlv preparation of produce for market at the farm or project area level has been retarded, and incentives to improve production and marketing to be- nefit the project area have lagged. 11. The project's reliance on ACC,, AMO and FA is designed to inject new services into the project area to ensure competitive operations in the areas of credit, input supply and marketing. Beyond the primary markets it is expected that the private sector, commission agents and others, will con- tinue to perform the marketing and transport services they presently perform. The private sector is also not prohibited from continuing its activities in the provision of credit and inputs. An element of competition is simply introduced into both types of activities with emphasis placed on maximizing the benefits in the project area and especially those obtained by its smaller farmers. Since the produce leaving the project area would double by 1983 the demand for the services of the private sector would therefore substantial- lv increase. The institutions relied on, ACC and AMO, appear to be the best available for introducing this kind of competition and carrying out these activities. ANNEX 13 Page 1 JORDAN tiORThIEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT Farmgate Prices 1. Farmgate prices in the project area were derived from Amman whole- sale market prices (Table 1) with the following deductions: Commission agent fee 5% Market fee 2% Transport cost 1.5 fils/kg Field boxes Tomatoes 2 fils/kg Others 1 fil/kg 2. One wooden field box costs 80 fils and holds 20 kgs of vegetables. Each box on average can be used four times. The average cost per trip, per box of 20 kgs is thus 20 fils, or 1 fil/kg. 3. Tomatoes receive more care and therefore better boxes are used. On this basis the box cost per kg for tomatoes was doubled to 2 fils/kg. 4. Cost of sacks for dried onions and potatoes amount to 1 fil/kg per trip. 5. Cost of transport from the Northeast Ghor area to Amman (70 to 100 km) is reported as JD 10 to 1l per truck. Average loads range from 10 to 15 tons. The higher range of 1.5 fils/kg has been used. 6. The above deductions were based on field discussions in the proj- ect area and at the Amman wholesale market, and correspond to information contained in the following reports of the UNDP Agricultural Marketing Proj- ect in Jordan; (a) Preliminary Note on the Establishment of Assembly Markets, Grading and Packing Centers for Fresh Horticultural Com- modities in the Jordan Valley (Report 2/73). (b) Pre-feasibility Study - Assembly - Sorting - Grading and Packing Stations (August 1972). 7. The derived farmgate prices are given in Table 2. Adjustments 8. Prices for the winter period (January-May) 1973 were substantially higher for a number of commodities than they were in the same period 1972 ANNEX 13 Page 2 (Table 1). For individual commodities, however, they were lower than in certain previous years. The winter period in 1972 was exceptional because of closure of the Syrian border which caused prices to fall. The 1973 winter period is assumed to have some element of inflation reflected in its prices (about 6%), but, relatively high prices in 1973 also reflect short supplies. Average winter prices during recent years were as follows: Basic Price Previous Used 1973 Peak Prices 1971-73 1968-73 1968-72 for Analysis ---------------------------Fils/kg…-------------- Tomatoes 42.1 40.2 32.5 31.6 29.4 33 Onions 34.7 43.1 22.6 25.5 23.6 26 Potatoes 44.9 39.3 38.7 35.1 33.1 39 Green beans 88.6 85.8 81.8 75.1 72.4 82 Broad beans 55.2 46.8 48.4 43.7 41.1 48 Cucumbers 59.8 72.8 59.5 62.1 62.6 63 Squash 29.1 35.6 28.9 30.4 30.6 31 Eggplant 45.9 40.3 37.9 34.7 32.4 38 Cauliflower 33.8 27.3 24.0 19.3 16.4 24 Sweet peppars 47.7 75.6 51.1 55.8 57.8 58 Hot peppers 75.6 57.0 72.2 68.3 66.0 72 Bananas 62.6 62.6 61.0 60.9 62.0 62 Oranges 37.5 31.9 30.3 29.2 27.7 30 Lemons 42.1 58.9 43.6 37.8 36.9 42 9. It may be seen that excluding or including 1973 prices from the lot*ger-term average (1968-72 or 1968-73) has little impact on the average orice level. In some cases inclusion of 1973 raises the average and in other cases it lowers it. The 1973 prices were, except for two commodities, well above the longer period average, and in 9 out of 14 cases above prev- ious peak levels. This suggests a rising trend in prices despite the high degree of seasonal and annual instability. Since price movements among cvmnwcdities are not uniform it is not reasonable to select any one series as an appropriate base. The 1971-73 average winter price has therefore been selected as base point. Where the 1971-73 average price is equal to or above the 1968-73 average prices it has not been adjusted. Where it is below the longer term average, the base price has been raised to equal the itighest price, not to exceed the 1973 prices for winter crops. For summer crops, where annual fluctuations are relatively small, the 1970-72 crop price has been used. Actual prices used are in Table 3. JORDAN NORTHEAST GHOR IRRTGATTON ANT) TTRAT, T}VF,T0PW.T\TT P(n.Tr'rT Wholesale Prices Amman (Weighted Average per Season) in Fils/kg 1968 1969 1970 1971 1972 1973 Winter Summer Winter Summer Winter Summer Winter Summer Winters Summer Winter Tomatoes 28 24 47 26 35 27 37 34 30 22 49 Onions (dry) 15 17 36 33 49 27 20 22 21 24 40 Potatoes 37 25 35 39 38 31 37 38 45 42 51 Green beans 75 39 73 51 81 55 95 49 79 53 98 Broad beans 41 125 51 120 42 115 53 96 49 140 62 Cucumbers 76 30 76 38 65 29 81 39 52 35 67 Squash 35 27 39 37 37 29 41 26 26 29 34 Eggplans 40 14 37 24 32 23 -46 19 33 23 52 Cauliflowers 16 26 24 29 15 30 32 29 11 32 39 Peppers (sweet) 1/3 - - 84 36 56 33 46 41 43 31 54 Peppers (hot) 2/3 - - - - 64 40 63 36 94 36 84 Water melons - 8 41 11 57 17 - 15 - 9 - Sweet melons - 22 - 28 - 27 - 28 - .21 Grapes - 49 _ 45 - 46 - 48 - 44 - Bananas - - - - 68 70 70 76 65 69 70 Oranges 27 32 37 40 35 32 31 36 34 43 43 Lemons 33 39 39 40 39 40 35 40 66 50 48 L Closure of Syrian border. Winter (January-May) SuemmBe (J-une-December) JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT Farmgatp. Pricee jri Foet+. Are= in W-1/:! /1 /2 Average Average 1968 1969 1970 1971 1972 1973 1970-72 1971-73 nter Summer Winter Summer WiWinter Sugemr nerSumner Winter S umer Winter Tomatoes 22.5 18.8 40.2 20.7 29.1 21.6 30.9 28.1 24.4 17.0 42.1 22.2 32.5 Onions (dried) 11.0 13.3 31.0 28.5 43.1 22.6 16.1 18.0 17.0 19.6 34.7 20.1 22.6 Potatoes 31.9 20.7 30.0 38.8 32.8 26.3 31.9 32.8 39.3 36.6 44.9 31.9 38.7 Green Beans 67.2 33.8 65.4 44.9 72.8 48.6 85.8 43.1 71.0 46.8 88.6 46.1 81 .8 Broad Beans 35.6 113.7 44.9 109.1 36.6 104.4 46.8 84.8 43.1 127.7 55.2 105.6 48.4 Cucumbers 68.2 25.4 68.2 32.8 57.9 24.5 72.8 34.3 45.9 30.0 59.8 29.6 59.5 Squash 30.0 22.6 33.8 31.9 31.9 24.5 35.6 22.1 22.1 24.5 29.1 24.0 28.9 Eggplant 34.7 10.5 31.9 19.8 27.3 18.9 40.3 15.2 28.2 18.9 45.9 17.7 37.9 Cauliflower 12.4 21.7 19.8 24.5 11.5 25.4 27.3 24.5 11.0 27.9 33.8 25.9 24.o Peppers (sweet) - - 75.6 31.0 49.6 28.2 68.5 35.6 37.5 36.3 47.? 33.4 51. Peppers (hot) - - - - 57.0 34.7 56.1 31.0 84.9 31.0 75-.6 32.2 72.2 Water Melons - 5.0 35.6 7.7 50.5 13.3 - 11.5 - 5.9 - 9.6 - Sweet Melons - 18.0 - 23.5 - 22.6 - 23.5 - 17.0 - 21.0 - Grapes - 43.1 - 39.3 - 40.3 - 42.1 - 38.4 - 40.2 _ Bananas - - - - 60.7 62.6 62.6 68.2 57.9 61.7 62.6 64.2 61 0 Oranges 22.6 27.3 31.9 34.7 30.0 27.3 26.3 31.0 27.1 37.5 37.5 31.9 30.3 Lemons 28.2 33.8 33.8 34.7 33.8 34.7 30.0 34.7 58.9 44.0 42.1 37.8 43.6 /1 Amman wholesale price less comnmission agent fee, marketing fee, transport and packaging costs. 7 i Closure of Syrian border. 'WJinter (January-Nay) Summer (Jurie-:ecer'ber) AfN 13 Table 3 JORDAN NORTIEAST GfOR IRRIGATION AN) RURAL DEVELOPKNT PlOJECT Prices Used For Project Analysis Winter Sunmer -__----/kg-___-----fs/kg ---------------------- Tomatces 33 22 Onions 26 20 Potatoes 39 32 Green beans 82 46 Broad beans 48 106 Cucumnters 63 30 Squas1. 31 24 Eggplant 38 1B Cauliflower 24 26 Sweet pepper 58 32 Hot pepper 72 32 Water melons - 10 Sweet melons 21 GrapeE _ 40 Bananas 62 64 Oranges 30 32 Lemons 42 38 'heat 30 30 Maize 25 25 ANNEX 14 Page 1 JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT Farm Budgets, Project Charges and Farmers' Income Farm Budgets 1. Farm budgets have been prepared for the following typical farm models: (a) 3 ha vegetable farm, (b) 3 ha fruit and vegetable farm, (c) 4 ha citrus farm, (d) 15 ha citrus farm, (e) 15 ha fruit and vegetable farm. These farn models reflect the impact of the project. Both owner-operated and sharecropped conditions are presented. Without the project, production costs (Tables 1 and 2) include annual costs, land taxes, water costs (on the presently irrigated area) and interest on working capital, which has been assumed at 10% per annum for a period of 12 months for perrenial and six months for annual crops. These costs vary with farm size. Costs of family labor are shown separately. With the project, production costs (Tables 1 and 2) consist of annual costs, establishment costs of orchards, land taxes and interest on working capital and on intermediate loans to acquire on- farm pipes. The establishment costs of citrus and bananas takes into account maintenance costs during pre-fruition years. These costs have been annualized by assuming a 40-year life for citrus and 8 years for bananas. Farmgate prices are given in Annex 13, Table 3. Project Charges 2. Investment costs (including replacement costs) and all operation and maintenance costs are proposed to be recovered over the project life of 40 years on a volume basis for both gravity and sprinkler systems which would be 6 fils O3. On this basis the project charges would amount to a minimum of 17% and a maximum of 36% of the incremental income of 3 ha and 15 ha farms respectively. 15 ha farms only represent 1% of the project area. Farmers Income 3. The farmer's incremental incomes, after payment of project charges and the per capita income based on a family size of 5.7 persons would be as follows: ANNEX 14 Page 2 /1 Owner Operated Sharecropped.- Incremental Per Capita Incremental Per Capita Income 'Income Income Income JD JD JD JD 3 ha vegetable farm Sprinkler 566 217 297 106 Gravity 496 205 749 97 3 ha fruit and vege- table farm Sprinkler 468 255 232 127 Gravity 427 262 213 124 15 ha fruit and vege- table farm Sprinkler 3,189 1,099 - - Gravity 3,040 1,125 - - 4 ha citrus farm Gravity 734 378 - - 15 ha citrus farm Gravity 2,091 1,000 - - /1 Incremental benefit to and per capita income of sharecropper. NOPTH EAST GHOR IRRIGATION AND RUTRAL DEVELBPMENT PROJECT Annual Production Costs per hectar- Range for Different Farm Types and Sizes /1 i2 /3 Machinary Fertilizer Plant Seeds Water Tax H.ired FamiLy otal irec F-amiiy -ota mirel -gm-)1y roa Crop + Manure Protec. _ Labor Labor Cost Labor Labor Cost Labor Labor Cost 1. Without Project ------------------------------------------------------------JD/ha --------------------------------------___------_____ /1 1.Citrus 4.5 45.2 3.0 31.0 13.1 6.3 - _ _ 18.1 155.9 276.8 159.0 48.6 313.4 2.Banana - 103.1 _ 154.0/i 22.4 15.0 - - - 18.2 161.5 474.2 170.8 47.4 512.7 3.Tomato 10.0 23.8 18.0 6.o 5.4 1.0 36.o 133.3 233.5 17.0 147.4 228.6 155.9 43.2 263.3 4.Eggplant/Pepper 10.0 23.2 14.1 4.8 14.8 1.0 30.0 127.7 225.6 16,1 133.3 217.3 144.6 40-4 253.2 5.Cucumber/Squash 10.0 25.4 11.5 8.5 5.7 1.0 25.0 97.4 184.3 11.8 101.0 174.9 110.5 26.9 199.5 6.onion 7.Beans 2 8.Other Vegetables 3 10.0 24.1 8.4 16.2 5.0 1.0 27.0 102.8 194.5 12.5 113.6 190.8 120.0 33.0 217.7 9.Maize 10.0 11.8 - 3.0 9.0 1.0 15.1 55.4 105.3 7.1 61.4 103.3 65.o 18.0 117.8 1O.Wheat 14.0 - - 7.0 5.0 1.0 7.4 27.5 61.9 3.5 30.0 60.5 32.0 8.4 67.4 2. With Project Gravity Irrigation I.Citrus 21.0 79.6 9.0 26.0 6 - - - 20.6 150.3 316.5 152.0 47.3 350.9 2.Banana - 105.6 - 150.0 15 _ - - 22.0 137.3 429.9 152.6 43.3 474.5 3.Tomato 38.0 40.4 20.0 10.0 1.0 19.4 97S.2 226.0 15.0 100.5 224.9 107.3 31.3 248.o 4.Eggplant/Pepper 33.6 39.8 15.3 8.3 1.0 17.8 89.4 205.2 14.0 91.5 203,5 9a.0 28.5 226.5 5.Cucumber/Squash 25.5 37.3 12.5 12.0 1.0 16.4 82.2 186.9 13.0 84.8 186.1 89.2 26.5 204.0 6.Onion 25.5 38.4 12.5 22.0 1.0 15.2 76.4 191.0 11.0 75.0 185.4 84.2 24.6 208.2 7.Beans 23.0 32.1 6.o 18.0 1.0 17.7 88.7 186.5 12.0 78.8 170.9 96.2 29.0 205.3 8.Other Vegetables /4 31.7 45.6 12.5 34.2 1.0 15.0 72.0 212.0 14.0 94.o 233.0 80.0 23.3 228.3 9.Maize 18.5 15.3 2.5 9.0 1.0 6.1 30.7 83.1 5.0 31.5 82.8 34.0 9.8 90.1 1O.Wheat 19.5 13.4 2.5 10.0 1.0 4.2 20.9 71.5 3.0 21.8 71.2 22.0 6.8 75.2 3. With Project Sprinkler Irrigation l.Citrus 21.0 79.6 9.0 26.0 6 - - - 22.6 152.3 316.5 162.0 47.3 350.9 2.Banana - 105.6 - 150.0 15.0 - - _ 22.0 137.3 429.9 160.6 43.3 474.5 3.Tomato 35.0 40.4 20.0 10.0 1.0 15.3 92.8 214.5 14.0 93.8 214.2 100.0 29.3 235.7 4.Eggplant/Pepper 32.5 39.8 15.3 8.3 1.0 14.0 83.0 193.9 12.5 85.9 195.3 88.0 28.3 215.2 5.Cucumber/Squash 22.5 37.3 12.5 12.0 1.0 12.8 77.4 175.5 12.2 78.0 175.5 82.4 25.2 192,9 6.Onions 22.5 38.4 12.5 22.0 1.0 11.8 71.4 179.6 10.5 o663 174.8 76.0 23.3 195.7 7.Beans 20.0 32.1 6.o 18.0 1.0 14.0 81.4 174.4 12.0 71.3 160.4 89.5 27.4 194.0 8.Other Vegetables /4 28.7 45.6 12.5 34.2 1.0 11.9 66.0 200.5 13.0 84.8 219.8 73.0 21,0 216.0 9.Maize 15.5 15.3 2.5 9.0 1.0 4.9 28.1 76.o 4.0 28.5 75.8 29,8 9.2 82.3 1O.Wheat 16.5 13.4 2.5 10.0 1.0 2.4 14.7 60.5 2.0 14.9 60.3 15.6 4.8 63.8 Establishment anualized at 10% over 40 years for citrus and 8 years for Bananas Included in other vegetables 0 /3 Weighted average of Cauliflower,Cabbage, beans, onions, potatoes, etc .. f .7 Weighted average of Cauliflower,Cabbage, Potatoes /7 3 ha vegetable farm Z 3 ha fruit and vegetable farm _ 15 ha Fruit and Vegetable Farm JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVEIMI)RT PROJECT Annual production Costs Per Hectare For Different Size Citrus Farms /2 /3 Machinery Fertilizer Plant Establish. Water Tax Hired Family Total Hired Family Total 1. Without Project & Manure Protec. Costs /1 _ Labor Labor Cost Labor Labor Cost ------------------------------------ JD/ha------ _ Citrus 4.5 45.2 3.0 31.0 13.1 6.o 10.0 166.0 280.8 119.3 76.5 298.6 2. With Project Citrus 21.0 79.6 9.0 26.o 6.o 15.o 166.0 322.6 164.3 59.3 365.2 /1 Establishment Costs taking into account intercropping with vegetables during first two years, and annualized at 10% per year over 40 years amounts to JD 31, if water costs are included and JD 26 without water charges /2 4 ha owner operated farm /3 15 ha owner operated farm I%) JORDAN NORTHEAST GROR IRRIGATION AND RURAL DEVELIPMENT PROJECT Farm Budget 3 ha Vegetable Farm -_Ca Yic -d Produc. Pi-ice uPV Prod .c. Total 'NV Produc. Total NPV- CROP Cropped t/ha t JD/t JD Cost Prod. JD Cost Prod. JD ha JD/ha Cost JD/ha Cost JD JDl Gravity-Irrg. Sprinkler-Irrig. 1) Without Project Citrus Banana Early Tomatoes 0.45 17 7.65 33 252 234 105 Late Tomatoes 0.30 17 5.10 22 112 234 70 Early Eggplant/Pepper 0.15 15 2.25 41 92 226 34 Late Eggplant/Pepper 0.68 15 10.20 20 204 226 154 Early Cucumber/Squash 0.23 10 2.30 47 108 185 43 Late Cucumber/Squash 0.11 10 1.10 27 30 185 20 Other Vegetables 0.38 12 4.56 34 155 195 74 Maize O.07 L 0.28 25 7 105 7 Wheat O.80 2.5 2.00 30 60 62 50 Total 3.17 35i44 IMU -- f --464 2) With Project Citrus Banana Early Tomatoes 0.56 25 14.00 33 462 226 127 215 120 Late Tomatoes 0.19 25 4.75 22 105 226 43 215 41 Early Eggplant/Pepper 0.23 23 5.29 41 217 205 47 194 45 Late Eggplant/Pepper 0.49 23 11.27 20 225 205 100 194 95 Early Cucumber/Squash 0.15 20 3.00 47 141 187 28 175 26 Late Cucumber/Squash 0.10 20 2.00 27 54 187 19 175 18 Onion 0.15 17 2-55 26 66 191 29 179 27 Beans 0.15 15 2.25 48 108 186 28 174 26 Other Vegetables 0.38 23 8.74 29 253 212 81 200 76 Maize 0.50 8 4.00 25 100 83 42 76 38 Wheat 0.70 3.5 2.45 30 74 72 50 60 42 Total 3.6o 60.3 - -J5 5-1211 L2.J Incrementel due to Project 747 787 JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELDPMET PROJCT 3 ha Fr t8 x t r 1 Farm CROP Area Yield Produ Price GPV Prod. Total NPV Prod. Total NPV Observations Cropped t/ha t JD/t JD Cost Prod. JD Cost Prod. h,a JD/ha _CoSt sjLha Cost JD JD Gravity Irrig. Sprinkler Irrig. 1) Without Project Citrus. 1.12 17.0 19.05 28 533 277 310 Banana 0.38 15.0 5.70 63 359 474 179 Early Tomatoes 0.23 17.0 3.90 33 129 229 53 Late Tomatoes 0.15 17.0 2.55 22 56 229 34 Early Eggplant/Pepper 0.08 15.0 1.20 41 49 217 17 Late Eggplant/Pepper 0.34 15.0 5.10 20 102 217 74 Early Cucumber/Squash 0.11 10.0 1.10 47 52 175 19 Late Cucumber/Squash 0.08 10.0 0.80 27 22 175 14 Other Vegetables 0.19 12.0 2.30 34 78 191 36 Maize 0.07 4.0 0.30 25 8 103 7 Wheat 0.45 2.5 1.15 30 35 60 27 Total 3.20 43.15 1423 770 653 2) With Project Citrus 1.12 28.0 31.36 28 878 317 355 317 355 Banana 0.38 22.0 8.38 63 528 430 163 430 163 Early Tomatoes 0.28 25.0 7.00 33 231 225 63 214 60 Late Tomatoes 0.17 25.0 4.25 22 94 225 38 214 36 Early Eggplant/Pepper 0.11 23.0 2.53 41 104 204 22 195 21 Late Eggplant/Pepper 0.24 23.0 5.52 20 110 204 49 195 47 Early Cucumber/Squash 0.08 20.0 1.60 47 75 186 15 176 14 Late Cucumber/Squash 0.05 20.0 1.00 27 27 186 9 176 9 Onion 0.07 17.0 1.19 26 31 185 13 174 12 Beans 0.07 15.0 1.05 48 50 171 12 160 11 Other Vegetables 0.19 23.0 4.37 29 127 233 44 220 42 Maize 0.25 8.0 2.00 25 50 83 21 76 19 Wheat 0.38 3.5 1.33 30 40 71 27 60' 23 Total 3.39 71.5 2345 631 15Th U12 1533 Increment due to Project 861 880 1.H JORDAN .CRTlM-'T =,,mRT. TIRTGATICN AND RTURAL DEVEIDPI4ENT PROJECT Farm Budget 4 ha Citrus Farm UwIner uperated Total Area Prod. Prod. Cropped Yield Production Price GPV Cost Cost NPV ha t/ha t, JD/t JD JD/ha JD JD ------- Gravity - Irr. Crop 1. Wit-hout Project Citrus 4 17 68 28 1,904 281 1,124 Total 4 68 1,904 1,124 780 2. With Project Citrus 4 28 112 28 3,136 323 1292 Total 4 112 3,136 1292 1844 Increment due to project 1 ,064 'Ii ANNEX 14 Table 6 JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT Farm Budget l5 ha Fruit and Vegetable Farm Gravity Irr. Sprinkler Irr. Total Total Area Produc- Prod. Prod. Prod. Prod. Crop Cropped Yield tion Price GVP Cost Cost NVP Cost Cost NVP ha t t UUT- JJD-71i JD 7ff J 75 Without Project Citrus 6.oo 17 102.00 28 2,856 313 1878 Banana 2.00 15 30.00 63 1,890 512 1024 Early tomatoes 1.10 17 18.70 33 617 263 289 Late tomatoes 0.70 17 11.90 22 262 .263 184 Early eggplant/pepyer /1 0.35 15 5.25 L1 215 253 88 Late eggplant/pepper /T 1.60 15 24.00 20 480 253 405 Early cucumber/squash7-2 0.55 10 5.50 47 259 200 110 Late cucumber/squash 77 0.25 10 2.50 27 68 200 50 Other vegetables / 0.90 12 10.80 34 367 218 196 Maize 0.20 4 0.80 25 20 118 24 Wheat 2.10 2.5 5.25 3D 158 67 141 Total 15.75 216.70 7,192 4,389 2803 With Project Citrus 6.oo 28 168.00 23 4,704 351 2- 106 351 2106 Banana 2.00 22 44.00 61 2,772 474 948 474 948 Early tomatoes 1.30 25 32.50 33 1,073 248 322 236 307 Late tomatoes 0.45 25 11.25 2_ 248 248 112 B6 106 Early eggplant/pepper/4 0.55 23 12.65 41 519 226 124 215 118 Late eggplant/pepper 7 1.15 23 26.45 20 529 226 260 215 247 Early cucumber/squa-h7 0.35 20 7.00 4' 329 204 71 193 67 Late cucumber/squashi/3 0.25 20 5.00 27 135 204 51 193 48 Onion 0.30 17 5.10 26 137 208 62 :194 5 Beans 0.3C 15 4.50 4ll 216 205 62 294 58 Other vegetables /6 0.80 23 18.40 2" 534 228 182 216 17S Maize 1.10 8 8.80 25, 220 90 99 82 Wheat 1.70 3.5 5.95 30 179 75 127 64 fo8 Total 16.25 349.60 349.60 11,595 4,526 7,069- - 4433 7j162 Increment due to prcject 4,266 9 /1 85% Eggplant auid 15% Pepper. 7T 50% Cucumber and 50% Squash. 7j- 46% Cauliflower-.Cabbage, 6% Onion, 42% Beans and 6% Pctato. 7 75% Eggplant anc. 25% Pepper. 7 50% Cucumber anc 50% Squash. 7Z 15% Early Potatc, 33% Late Potato and 52% Cabbage and Cauliflower. JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT Farm Budget 15 ha Citrus Farm - Owner Operated Gravity Irr. Total Area Produc- Prod. Prod. Crop Cropped Yield tion Price GVP Cost Cost NVP ha ta7F t JD/t JD JDTha JD JD Without Project Citrus 15 17 255 28 7,140 2992 -4j485 Total 15 255 7,140 kh,8 2,655 NT.it h . r j G v u Citrus 15 28 420 28 11,760 36o 5,4°°0- Total 15 420 11,760 5,400 6,360 Increment due to project 3,05 ,t: JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVEWPMZNT PROJECT Sumary Farm Budgts / Costs to Net Benefits to - Incremental Net Benefits GPV Owner SharecropTer Owner Sharecropper Owner Sharecropper Farm Type /1 JD JD JD JD JD JD JD l.Sharecropped Farms 3 ha Vegetable Farm Without Project 1020 143 203 367 307 - - With Project Gravety Irrigation 1805 289 346 613 556 246 249 With Project Sprinkler Irrig. 1805 262 299 640 604 273 297 3 ha Fruit Vegetable Farm Without Project 1423 177 220 535 492 - - With Project Gravety Irrigation 2345 424 468 749 705 214 213 With Project Sprinkler Irrig. 2345 403 448 769 724 234 232 2.Owner Operated Farms 3 ha Vegetable Farm Without Project 1020 346 - 674 - - - With Project Gravety Irrigation 1805 635 - 1170 - 496 _ With Project Sprinkler Irrig. 1805 565 _ 1240 5 566 _ 3 ha Fruit Vegetable Farm WitiUU pl'UjeCU 14C3 39t - ±u20 - - - With Project Gravety Irrigation 2345 892 - 1453 - 427 _ With Project Sprinkler Irrig. 2345 851 - 1494 - 468 _ 4 ha Citrus Farm Without Project 1904 482 - 1422 - - - With Project Gravety Irrig. 3136 980 - 2156 - 734 - 15 ha Fruit Vegetable Farm /1 Without Project 7192 3967 - 3225 - - - With Project Gravety Irrigation 11595 5330 - 6265 - 3040 With Project Sprinkler Irrig. 11595 5181 - 6414 - 3189 - 15 ha Citrus Farm /1 Without Project 7110 3496 - 3614 - - _ With Project Gravety Irrig. 11760 6055 - 5705 - 2091 - /1 15 ha farms only represent about 1% of the project area, Fruit Vegetable farms if sharecropped are given to several sharecroppers. / 2 When sharecropped establishment cost orchards paid by owner,hired labor by sharecropper,interest on operation tcapital presently paid by owner in the future equally shared, all other inputs equally divided. Watercost at proposed project level assumed equally shared and estimated at 6 fils/m3. Family labor not considered / 3 GPV divided on a 50:50 basis. ANNEX 15 Page 1 JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT Economic Rate of Return and Sensitivity Analysis 1. The economic rate of return of the project, costing family labor at 750 fils (JD 0.75) per day and hired labor at the market rate of JD 1 per day, would be 24%. A-breakdown of investment costs, and operation, maintenance and replacement costs as well as total and net benefits over the project life- time of 40 years (1974-2013) is presented in Table 1. Net benefits excluding the social development component (minor works) are given in Table 2. The bases of annual production costs are given in Tables 1-2 of Annex 14 and the prices used to evaluate benefits are given in Annex 13, Table 3. The development pattern of various crops is presented in Annex 14. Major assump- tions made for calculating the initial economic rate of return include: (a) the economic life of on-farm sprinkler pipes, valves and related equipment would be 15 years while that of other structures would be 40 years; (b) investment costs exclude costs of land acquisition, price contingencies and credit for annual production inputs, the latter being included in annual production costs; (c) the value of production foregone due to dislocation caused by land leveling, installation of sprinkler equipment, drain- age and other project works, most of which will be carried out in the present off season and much of which will have a minimal impact on the area, is assumed to equal the 2% annual increase in net value of productions which would have taken place during the conlstruction period (1975-78) without the project; and in land physically lost to project structures is accounted for by the reduced area available for cultivation after the project; (d) full development would be achieved in 1983. Production costs and benefits commence in the year following completion of works in specific areas, they increase 50% in the first two years and 50% in the following three years. These de- velopments are phased separately for the sprinkler and gravity irrigation areas; (e) project investment costs, production inputs and project bene- fits are costed at current prices and maintained for the project life; A=N9X 15 Page 2 if) the operation of the assembly markets and packing and grading stations is assumed as self-sustaining. Their operating and replacement costs and benefits are excluded from the analysis, but initial investment and staff costs for the first three years are included. 2. The results of sensitivity tests are summarized below: Assumption Economic Rate of Return (a) Initial run 24.00% (b) Benefits reduced 25% 17.92Z (c) Costs increased 25% 18.96% (d) (b) & (c) 14.54Z (e) Without social development component (minor works) 29.132 ANNEX 15 Table 1 JORDAN NORTHEAST GHOR IRRIGATION AND RURAL DEVELOPMENT PROJECT Economic Costs and Benefits Costs /2 Net Investment-l 0, M and R Total Benefits Benefits 1 974 20 240 - (240) 1975 1,552 - 1,552 -323 (1,584) 1976 1,547 25 1,572 21 (1,551) 1977 681 40 721 254 (467) 1978 27 170/4 197 57 377 1979 220 220 1,005 /5 7U5 1980 - 220 220 1,415 1,195 1981 _ 220 220 1,714 1,494 1982 - 220 220 1,902 1,682 1983 - 220 220 2,002 1,782 1984-91 _ 220 220 2,002 1,782 1992 _ 580/6 580 2,002 1,422 1993 _ 220 220 2,002 1,782 1994-2006 - 220 220 2,002 1,782 2Mo - 580 /6 580 2,002 1,422 2008-12 - 220 220 2,002 1,782 2013 220 220 2,002 1,782 /1 Excludes land acquisition costs I price contingencies and credit for annual inputs accounted for in production costs. / 2 Net of production costs, / 3 Incremental benefits (and costs) are phased to commence in each stage of inprovement (50% in first two years, remainder in following three years). / 4 Commencement of annual extension staff. / 5 Net production, without project, would increase at 2% compounded until 1978. /6 Fifteen year replacement of sprinkler pipes. ANNEX 1 JOhDAN NORTHEAST oaOR IRRIGLTION AND RURAL DEVELOM MENT PROJECT Eoon,uii Costs andi Benefits (F=xuiw±Ln Social Development Component) Costs Benefits Net Investmtent C, N, and R Total Benefits Benefits -________-___---------_JD thousand----------------------------- 1974 145 - 145 - (145) 1975 1,134 - 1,134 -32 (1,166) 1976 1,191 20 1,211 21 (1,190) 1977 655 30 685 254 (431) 1978 27 160/3 187 574 387 1979 - 204 204 1,005 801 19tB- 204 204 1,415 1,211 1981 _ 204 204 1,714 1,510 1982 _ 204 204 1,902 1,698 1983 204 204 2,002 1,798 1984-91 204 204 2,002 1,798 1992 _ 564/2 564 2,002 1,438 1993 - 204 204 2,002 1,798 1994-2u06 - 204 204 2,002 1,798 2007 - 564/2 564 2,002 1,438 2008-12 - 204 - 204 2,002 1,798 20013. - 204 204 2,002 1,798 See table 1 for notes. -r; :R I XI / _ / 9 XV ~~ \ p32 9 . / ~ '// A 1 5Frl rUtr lli/' X t f g I ; X-, - 0 - \\}'iA X X --- ' M :'~~~~~~~~~C) /0 - S ~ ~~~~~~ ~~~~ YE'9iS RI: A t I ?)- IC. ,5 _>- / V~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 23~~~~~~94-": ,/14AS- < "°1<''X'0 ' X~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~,-- ~.~G-_ <~~~~~~~~~~~C E/LQAI - - ° . i; t X ~~~~rNo. , 54 - R. _C - . _,I ONOA aAA% AM -. 0~~~~~~~~~~~~~~ ~~~~~~ -~ ~. . u7t~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ AV Co