Document of The World Bank FOR OFFICIAL USE ONLY Report No: RES18590 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE EGYPT FARM-LEVEL IRRIGATION MODERNIZATION PROJECT LOAN NUMBER 7984-EG DECEMBER 14, 2010 TO THE ARAB REPUBLIC OF EGYPT JUNE 2, 2016 Water Global Practice Middle East and North Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. ABBREVIATIONS AND ACRONYMS CPF Country Partnership Framework EALIP Egyptian Authority for Land Improvement Project ESMP Environmental and Social Management Plan M&E Monitoring and Evaluation MALR Ministry of Agriculture and Land Reclamation MWRI Ministry of Water Resources and Irrigation O&M Operation and Maintenance OP Operational Policy of the World Bank PAD Project Appraisal Document PDO Project Development Objective PMU Project Management Unit RAP Resettlement Action Plan RF Results Framework SCD Systematic Country Diagnostic SWERI Soil, Water and Environment Research Institute Regional Vice President: Hafez Ghanem Country Director: Asad Alam Acting Senior Global Practice Director: Jennifer Sara Practice Manager: Steven N. Schonberger Task Team Leader: Bekele Debele Negewo EGYPT, ARAB REPUBLIC OF EGYPT FARM-LEVEL IRRIGATION MODERNIZATION PROJECT CONTENTS Page A. Summary of Proposed Changes ................................................................................................. 2 B. Project Status .............................................................................................................................. 3 C. Proposed Changes ...................................................................................................................... 4 D. Appraisal Summary.................................................................................................................... 8 ANNEX 1: Results Framework and Monitoring ......................................................................... 10 1 DATA SHEET Egypt, Arab Republic of EGYPT Farm-level Irrigation Modernization Project (P117745) MIDDLE EAST AND NORTH AFRICA Water Report No: RES18590 Basic Information Project ID: P117745 Lending Instrument: Investment Project Financing Regional Vice Original EA Hafez M. H. Ghanem Partial Assessment (B) President: Category: Current EA Country Director: Asad Alam Partial Assessment (B) Category: Senior Global Original Approval Jennifer J. Sara 14-Dec-2010 Practice Director: Date: Practice Manager/ Current Closing Steven N. Schonberger 30-Jun-2016 Manager: Date: Team Leader(s): Bekele Debele Negewo Borrower: Egypt, Arab Republic of Responsible Ministry of International Cooperation, Ministry of Agriculture and Land Reclamation Agency: Restructuring Type Form Type: Full Restructuring Paper Decision Authority: Board approval Restructuring Level 1 Level: Financing ( as of 08-Apr-2016 ) Key Dates Original Revised Ln/Cr/ Effectiveness Project Status Approval Date Signing Date Closing Closing TF Date Date Date IBRD- 30-Jun- 30-Jun- P117745 79840 Effective 14-Dec-2010 23-Sep-2011 10-Jul-2012 2016 2016 TF- 30-Jun- 30-Jun- P117745 13794 Effective 06-Jun-2013 13-Jun-2013 13-Jun-2013 2016 2016 2 Disbursements (in Millions) % Ln/Cr/ Curre Disburs Project Status Original Revised Cancelled Undisbursed Disburs TF ncy ed ed IBRD- P117745 79840 Effective USD 100.00 100.00 0.00 38.29 61.71 38 TF- P117745 13794 Effective USD 3.88 0.00 3.88 0.00 0.00 Policy Waivers Does the project depart from the CAS/CPF in content or in other Yes [ ] No [ X ] significant respects? Does the project require any policy waiver(s)? Yes [ ] No [ X ] A. Summary of Proposed Changes The proposed changes are to amend the Loan Agreement as follows: (i) revise the project development objective (PDO) to focus on outcomes that are directly attributable to the project interventions; (ii) update the project results indicators and targets to be consistent with the revised PDO and allocation of resources; (iii) trigger safeguards policy for Involuntary Resettlement (OP 4.12); (iv) add a new disbursement category to enable financing of consultancy and training services and reallocate the loan proceeds among the categories of expenditures; (v) amend the disbursement schedule; (vi) extend the closing date of the project by 18 months, from June 30, 2016 to December 31, 2017 to account for the time lost due to significant start up implementation delays partly attributed to the political upheaval in Egypt during 2011 and 2013; and (vii) reflect changes in the implementation schedule to align with the revised closing date. The project risk assessment and the appraisal summary for social analysis have also been updated. This will be the first extension of the closing date. Change in Implementing Agency Yes [ ] No [ X ] Change in Project's Development Objectives Yes [ X ] No [ ] Change in Results Framework Yes [ X ] No [ ] Change in Safeguard Policies Triggered Yes [ X ] No [ ] Change of EA category Yes [ ] No [ X ] Other Changes to Safeguards Yes [ X ] No [ ] Change in Legal Covenants Yes [ ] No [ X ] Change in Loan Closing Date(s) Yes [ X ] No [ ] Cancellations Proposed Yes [ ] No [ X ] Change to Financing Plan Yes [ ] No [ X ] Change in Disbursement Arrangements Yes [ ] No [ X ] Reallocation between Disbursement Categories Yes [ X ] No [ ] Change in Disbursement Estimates Yes [ X ] No [ ] Change to Components and Cost Yes [ ] No [ X ] Change in Institutional Arrangements Yes [ ] No [ X ] 3 Change in Financial Management Yes [ ] No [ X ] Change in Procurement Yes [ ] No [ X ] Change in Implementation Schedule Yes [ X ] No [ ] Other Change(s) Yes [ ] No [ X ] Appraisal Summary Change in Economic and Financial Analysis Yes [ ] No [ X ] Appraisal Summary Change in Technical Analysis Yes [ ] No [ X ] Appraisal Summary Change in Social Analysis Yes [ X ] No [ ] Appraisal Summary Change in Environmental Analysis Yes [ ] No [ X ] Appraisal Summary Change in Risk Assessment Yes [ X ] No [ ] B. Project Status The Farm-Level Irrigation Modernization Project (FIMP), financed by the IBRD Loan in the amount of US$100 million, was approved on December 14, 2010, but only became effective 20 months later. The FIMP is co-financed by the French Agency for Development (AFD) (US$50 million equivalent). The FIMP was designed as a pilot project to support implementation of the Government’s on-farm irrigation modernization program and to support significant learning and capacity building initiatives to develop a delivery mechanism for the broader government program. The FIMP consists of two components: Component 1: Marwa and Farm-level Irrigation Improvements—supports marwa and farm-level irrigation modernization in the project area as well as provision of electricity through local grids for pumping. Component 2: Farm-level Technology Modernization—aims to enhance farmers’ knowledge and uptake of improved irrigation and associated land improvement and crop production technologies in parallel with and in support of the marwa-level irrigation modernization carried out under Component 1. Component 2 also supports strengthening of farmer organizations to manage the operation and maintenance (O&M) of tertiary and quaternary level irrigation systems and ensure sustainability of the overall investment. Despite significant start-up implementation delays, partly attributed to political instability in the country in 2011 and 2013, the project has made notable progress over the last year and has substantially accelerated implementation in recent months. Currently, the overall loan commitments stands at 98% (compared to less than 5% in February 2015 and 83% in October 2015) and disbursements at 38% (compared to less than 10% in June 2015 and 20% in October 2015). With respect to Component 1, all marwa contracts for about 180,000 feddan are under implementation, of which about 46,000 feddan had been completed by the end of February 2016, with about half (20,000 feddan) completed in January and February 2016 alone. In terms of electricity, nine out of ten planned contracts covering a total area of about 150,000 feddan have been awarded and are at different stages of implementation. The remaining works contract package is being rebid and expected to be awarded in June 2016, bringing overall loan commitments to 100%. Reasonable progress has also been made under Component 2, devolving on-farm water management to community-based water user associations (WUAs) at mesqa and marwa levels. Notable progress has been achieved in terms of capacity building of farmers and agricultural extension agents towards adopting modern irrigation and agronomic practices through pilot demonstration of best practices and farmer field schools (FFS) to ensure sustainability of the overall program. Early results from the project interventions confirm significant increase in yield, improved equity of water distribution among farmers at the head and tail ends, reduced cost 4 of production and water saving. Delivering on its other objective of developing a strong delivery mechanism for the broader government program of modernizing on-farm irrigation over five million feddan area, the project is also supporting capacity building of contractors (with a focus on small-scale contractors) to take on marwa improvement works with necessary quality. In terms of project implementation capacity, given the frequent turnover at the Ministry of Agriculture and Land Reclamation (MALR), the project has suffered from lack of consistent policy guidance and leadership at the highest level. Recently, under the leadership of the new minister of MALR a decision was taken to reconstitute a high-level Steering Committee for the project consisting of ministers and senior members of various agencies that have a stake in the project, including MALR, the Ministry of Water Resources and Irrigation (MWRI), Ministry of Finance (MOF), Ministry of International Cooperation (MOIC), and Ministry of Electricity. The Steering Committee will meet regularly and provide guidance to the Project Management Unit (PMU) and make necessary decisions to facilitate project implementation. Moreover, the project enjoys overwhelming support by the MOIC and MOF, as adequate finances have been made available for counterpart funding, as well as to pay for necessary permits and fees such as for electric cells and utility permits. The project has also in place adequate capacity for financial management, procurement, and safeguards. However, given the volume of works, the project currently faces lack of adequate technical staff for supervision of works and quality control. To strengthen the PMU’s technical capacity and ensure quality of construction and supervision of works, the Borrower is in the process of hiring a construction supervision and quality control firm (agreed to be in place by July 15, 2016) for the duration of the project. Moreover, the Borrower has committed to hire an independent technical audit firm by September 1, 2016 to undertake technical audit of works. The technical audit firm will provide an independent assessment of quality of works for the duration of the project and present its findings to the Steering Committee of the project on a regular basis. The project prepares regular audit reports with acceptable quality to the Bank. Despite improved implementation progress over the last year as discussed above, progress towards achievement of PDO and IP are both rated Moderately Unsatisfactory. At the current pace of implementation, the project will complete about 50-60% of works by the current closing date of June 30, 2016, resulting in the PDO not being achieved and the loan not fully disbursed. However, with the proposed changes adopted, the project is expected to successfully complete all activities and achieve its objectives by the proposed closing date of December 31, 2017. C. Proposed Changes Development Objectives/Results Project Development Objectives Original PDO The PDO is to increase agricultural profitability and improve equity in access to higher-quality water for small- scale farmers in the command areas of Mahmoudia, Manaifa and Meet Yazid located in the Nile Delta. Change in Project's Development Objectives Explanation The current PDO focuses mostly on the long-term impacts of the project, e.g. agricultural profitability. While the project is expected to lay the foundation for the long-term goals, these goals could only be achieved after the project closing as farmers gradually adopt the new techniques based on observation of gains by “lead farmers”. Therefore, changes to the PDO are necessary to reflect the project’s outcomes that can be directly attributed to the project interventions and achieved by the project closing. The Bank’s global experience in 5 irrigation work has recognized that adoption of the new techniques by farmers is a gradual process during which improved irrigation services build confidence in farmers regarding the on-demand availability of water, which in turn facilitates complementary investments in land and water management and conversion to higher value crops based on establishment of marketing links. As farmers, particularly lower resource farmers, tend to be risk averse in terms of changes in production practices and crops, the process of establishment of “lead farmers” to demonstrate financial advantages of new approaches, complemented by extension approaches such as FFS to accelerate dissemination, may take 3-5 years or more following establishment of improved irrigation systems. Hence, it is common for the irrigation projects, particularly those targeting smallholders, to set objectives on improving water delivery services and providing demonstration technologies. Proposed New PDO The revised PDO is to increase access to modern irrigation systems in the project areas of Mahmoudia, Manaifa and Meet Yazid located in the Nile Delta, in an equitable manner. Change in Results Framework Explanation: Results indicators and targets are updated to be consistent with the revised PDO and reallocation of loan proceeds. For each component, the indicator targets will be changed to reflect what can be attributed and realistically achieved given the scope of project activities. Under Component 1, the project originally envisaged to achieve the following targets in land improvements: 105,000 feddan of laser levelling, 70,000 feddan of gypsum application, and 50,000 feddan of deep ploughing. These activities were regarded as low cost interventions to be financed primarily by the Government in the first two years of the project implementation period on a cost- recovery basis and later on by farmers themselves through direct payments for the services. These activities are essential agronomic practices towards improved agricultural production, and they are well known to farmers in Egypt. However, it is important to note that these activities are not a one-off intervention but rather practices that should be done regularly at certain time intervals (for example, laser levelling every couple of years; deep ploughing every 3-5 years; and gypsum application every 5-10 years). Progress on these activities has so far been only marginal owing to the limited capacity of the implementing agency (EALIP) and demand-driven nature of the activities. Given these practical challenges, including the likely mismatch of farmers’ schedule to implement these agronomic practices on their fields, the original targets are unrealistic. In addition, the project envisaged that these activities would be done through the government agency (EALIP) through “force account” using Government’s own financing. Therefore, a much reduced target - 50,000 feddan for all three activities - has been agreed with the Government as part of this restructuring. However, since the project financial support to these activities was insignificant, the respective land improvement indicators and targets will not be included in the results framework (RF), but would be monitored separately to verify farmer adoption rates and to understand the motivation of “early adopters”. Under Component 2, the project also envisaged to demonstrate application of modern irrigation technologies (such as low head bubblers), as well as growing high-value horticultural crops in the project areas. The project targeted to cover about 10,000 feddan area with modern irrigation technologies and an additional 12,000 feddan area with high-value horticultural crops. However, these targets are unrealistic in the context of the project area because adoption of modern irrigation technologies at a farm level requires not only water availability through improved marwas, but also other incentives (such as irrigation cost and changes in farming practices like intercropping, as well as behavioral change of farmers that requires longer time). Similarly, conversion to high-value horticultural crops requires many more factors to be in place (such as land suitability, and access to finance and market) in addition to access to water through improved marwas. Hence, the above 6 targets have been reduced to about 100 feddan each to align the project scope with what is realistically achievable within the project implementation period in terms of establishing “lead farmers” for demonstration purposes. The project will use the FFS and other farmer-to-farmer exchange opportunities supported under Component 2 to raise awareness and educate farmers on the benefits of adopting modern irrigation technologies, as well as growing high-value horticultural crops which will lead to further adoption over time. Revisions have been made to the PDO-level indicators and Intermediate results indicators to ensure attribution, measurability, and realism of the selected indicators and targets. Moreover, core sector indicators have been introduced in the revised RF (see Annex 1(A) and Annex 1(B)). The proposed changes of the targets do not affect the project financial and economic viability because these targets have not been part of the original financial and economic analysis to justify project feasibility. Compliance Change in Safeguard Policies Triggered Explanation: During project implementation, it is important to ensure that project affected persons (PAPs) are adequately and fairly compensated under electricity contracts that involve installation of medium and low voltage electric poles in private farms. There is a likelihood that farmers’ crops are damaged and/or a small piece of land is taken away from farmers to host the electric poles (about 2 square meters area for medium voltage pole and much less for low voltage poles). As such, it is necessary to trigger the additional safeguards policy (OP 4.12 for involuntary resettlement) to ensure adequate and fair compensation to PAPs. The Resettlement Policy Framework (RPF) has been cleared and disclosed at the InfoShop on May 2, 2016. The PMU is currently assessing whether any land loss and/or crop loss has already taken place and whether PAPs were already affected by the installation of the electricity poles. A census is underway and will be finalized in June. Based on the census findings, the PMU will begin a completion audit to identify PAPs and compensate them. The existing grievance redress system will be strengthened and disseminated widely. Current and Proposed Safeguards Policies Triggered: Current Proposed Environmental Assessment (OP) (BP 4.01) Yes Yes Natural Habitats (OP) (BP 4.04) No No Forests (OP) (BP 4.36) No No Pest Management (OP 4.09) Yes Yes Physical Cultural Resources (OP) (BP 4.11) No No Indigenous Peoples (OP) (BP 4.10) No No Involuntary Resettlement (OP) (BP 4.12) No Yes Safety of Dams (OP) (BP 4.37) No No Projects on International Waterways (OP) (BP 7.50) Yes Yes Projects in Disputed Areas (OP) (BP 7.60) No No Other Changes to Safeguards Explanation: Although the project was required to implement only the Environmental Management Plan (EMP), due to its social safeguards implications, the Bank advised the client to prepare an Environmental and Social 7 Management Plan (ESMP) pending formal amendment of the Loan Agreement. The client revised the EMP by including an action plan to mitigate social impacts on PAPs in April 2015, which the Bank reviewed and cleared. It has been under implementation since then and will continue to be implemented going forward (in particular, monitoring activities, capacity building, public awareness, and minimizing impacts during construction) taking into consideration the risk of asbestos waste which was identified during implementation of the project. The appropriate method of handling asbestos ceilings of the old pump stations will be integrated as part of the updated ESMP. Financing Change in Loan Closing Date(s) Explanation: Extension of the project closing date is necessary to ensure completion of project activities and full achievement of the revised PDO. The project faced significant startup delays, including effectiveness delay of about 20 months. In addition, security concerns have critically limited full participation of contractors, as well as access to parts of the country. Even with improved security on the ground and improved capacity to implement the project, more time is needed to compensate for the early implementation delays and complete some of the large contracts. Moreover, to deepen the ongoing institutional reform and scale up capacity building of various farmer organizations and extension agents, consistent support over a longer period of time is necessary. As such, the project requires an extension of its closing date by 18 months, from June 30, 2016 to December 31, 2017. Ln/Cr/T Original Closing Current Closing Proposed Status Previous Closing Date(s) F Date Date Closing Date IBRD- Effective 30-Jun-2016 30-Jun-2016 31-Dec-2017 30-Jun-2016 79840 TF- Effective 30-Jun-2016 30-Jun-2016 30-Jun-2016 13794 Reallocations Explanation: The proposed changes also include reallocation of US$0.5 million from "Goods and Works" category to "Consultant Services, Non-CS and Training" category to support consultancy services and training to undertake, among others, construction supervision and quality control of works, technical audit of completed works, studies related to project benefits and capacity building of project staff. Disbursement % (Type Ln/Cr/T Curren Current Category of Allocation Total) F cy Expenditure Current Proposed Current Proposed TF- USD DISB – CONSULTING 0.00 0.00 100.00 100.00 13794 DISB – GOODS 0.00 0.00 100.00 100.00 DISB – TRAINING 0.00 0.00 100.00 100.00 DISB - OPERATING 0.00 0.00 100.00 100.00 COSTS 8 Total: 0.00 0.00 IBRD- USD (1) GOODS AND WORKS 98,750,000.00 98,250,000.00 60.00 60.00 79840 (2) TECH SERVICES 1,000,000.00 59,400.00 60.00 60.00 AND Non CS (3) FRONT END FEE 250,000.00 250,000.00 0.00 0.00 (4) PREMIUM FOR 0.00 0.00 0.00 0.00 CAPS/COLLARS (5) CONSULTANT SERVICES, Non-CS, AND 0.00 1,440,600.00 0.00 60.00 TRAINING Total: 100,000,000.00 100,000,000.00 Disbursement Estimates Change in Disbursement Estimates Explanation: Due to slow startup and delayed implementation progress, disbursements have been low. With renewed efforts and built up implementation capacity, the project is on track to fully disburse by the proposed closing date of December 31, 2017. The disbursement schedule has been updated accordingly. Fiscal Year Current (USD) Proposed (USD) 2011 3,500,000.00 0.00 2012 8,400,000.00 0.00 2013 17,400,000.00 500,000.00 2014 29,200,000.00 2,442,349.84 2015 29,100,000.00 7,897,156.48 2016 12,400,000.00 30,852,843.52 2017 0.00 38,000,000.00 2018 0.00 20,307,650.16 Total 100,000,000.00 100,000,000.00 Other Change(s) Change in Implementation Schedule Explanation: The implementation schedule of the project has been updated consistent with the proposed closing date of December 31, 2017. Appraisal Summary Appraisal Summary Change in Social Analysis Explanation: 9 The project activities and scope will not change. However, during project implementation, it was noted that electricity connections could potentially affect private farm lands due to installation of medium and low voltage electricity poles. Placement of poles may lead to crop damages, as well as by taking away a small portion of land from beneficial use by landowners. Under such circumstances, fair and adequate compensation to PAPs is important. As such, triggering OP 4.12 was necessary. Appraisal Summary Change in Risk Assessment Explanation: Institutional Capacity for Implementation and Sustainability risk is rated as substantial given the lack of technical capacity at the MALR to design and supervise implementation of marwa improvements, as well as pumps and electricity. As part of the project design, it was anticipated that the MALR will closely coordinate with MWRI that has strong technical capacity in terms of marwa improvement and pumps. However, coordination between these two ministries has historically been weak. In terms of sustainability of improved marwas, although marwas are private properties (owned and operated by individual farmers or group of farmers) and are expected to be maintained by the owners themselves, it is important to train and raise awareness of beneficiaries regarding proper O&M of the improved schemes. Sector Strategies and Policies risk has been upgraded to moderate because the implementation of an agriculture strategy developed by the MALR remains poor. Fiduciary risk has been upgraded to substantial given the lack of adequate contract management capacity at the PMU to closely supervise construction quality and provide quality control. However, this risk will be mitigated by hiring a construction supervision and quality control firm to provide close supervision and quality control of works. Moreover, the Borrower will hire a technical audit firm to provide independent assessment of quality of works as well as overall integrity of the investment. Contract management training have been provided to the project implementing agencies, including to representatives of contractors. More will be done during the remaining project implementation period. Systematic Operations Risk-Rating Tool (SORT) Risk Category Rating 1. Political and Governance Moderate 2. Macroeconomic Moderate 3. Sector Strategies and Policies Moderate 4. Technical Design of Project or Program Moderate 5. Institutional Capacity for Implementation and Sustainability Substantial 6. Fiduciary Substantial 7. Environment and Social Low 8. Stakeholders Moderate 9. Other OVERALL Substantial Explanation The overall risk rate is upgraded to substantial corresponding with the upgrading of risks under sector strategies and policies and fiduciary risk categories. 10 ANNEX 1(A): Results Framework and Monitoring Table of proposed changes/ amendments to the PDO and RF with explanations Current Proposed Explanation PDO: to increase agricultural PDO: to increase access to modern The current PDO focuses mostly on the long- profitability and improve equity in irrigation systems in the project term impacts of the project. Moreover, access to higher-quality water for up areas of Mahmoudia, Manaifa and agricultural profitability, cannot be directly to 140,000 small-scale farmers on up Meet Yazid located in the Nile attributed to the interventions by the project. to 200,000 feddans (80,000 hectares) Delta, in an equitable manner. To capture the project outcomes that are in the command areas of expected to be achieved by the project Mahmoudia, Manaifa and Meet closing date, changes to the PDO are Yazid located in the Nile Delta. necessary. PDO-level Indicators: PDO-level Indicators: PO-1: Agricultural output from the Deleted This is a high-level outcome that the project main irrigated crops, in LE per continues to monitor but will not be part of feddan increased by 10% (relative to the RF baseline and non-project neighboring comparison areas) PO-2: Irrigation operating costs in Revised: Irrigation operating and Measurement will be limited to areas that LE per feddan reduced by 30% maintenance costs reduced (%) have benefited from improved marwa under (relative to baseline and non-project the project and have been under neighboring comparison areas) implementation for at least one cropping season. PO-3: Difference in yields between New PO: Ratio of water Equity of water distribution is better farmers at the tail end and head reach availability (in cubic meters/ hour) monitored by measuring distribution of water of quaternary canals reduced by 20% measured at tail and head ends quantity and pressure than the yield which (relative to baseline and non-project can be affected by many other factors than neighboring comparison areas) water distribution. PO-4: Drainage water re-use by Deleted Reuse of drainage water (based on its farmers, especially those at the tail quality) by mixing with fresh irrigation water end of quaternary canals reduced by is a good water resources management 50% (relative to baseline and non- practice. The equity issue has already been project neighboring comparison captured by another indicator (new PO-3). areas) PO-5: Approximately 20,000 marwa New PO: Operational mesqa level Marwa committees are important for (Quaternary canal) committees WUAs created and/or strengthened sensitization of farmers about the project and established. (number) their mobilization to adopt the project. However, once the project is implemented, for O&M purpose of the overall system, mesqa level WUAs are critical and ensuring their operational status is imperative. Replaced with new PO: Water 1 Direct project beneficiaries moved to IO PO-6: Direct Project Beneficiaries users provided with improved indicator level, and revised to reflect the core 1 Improved irrigation = improved marwa through lining or buried pipes; modern agronomic practices = land improvement (laser levelling, deep ploughing, gypsum application, extension services, farmer field school) 11 irrigation and drainage services sector indicator. (number), of which female (number) Intermediate Indicators Component 1: IO-1a: Electric pumps installed on No change Target revised mesqas IO-1b: Farmers’ costs for pumping Revised as water pumping costs Minor changes in wording water into mesqas as a result of reduced switch from diesel to electric pumps, in LE per feddan, reduced by 30%2 Revised to be consistent with a core sector IO-1c: Marwa modernization Replaced with new IO: Area indicator. Modern irrigation here includes adopted for about 180,000 feddan3 provided with irrigation and areas benefiting from marwa improvements drainage services – Improved (ha) (both lined and buried marwas) IO-1d: Farmers’ time for applying water to fields, in hours per Replaced with new IO: labor time Revised to measure reduced irrigation time irrigation, as a result of marwa saving for farmers as proxy for water saving. Measurement will modernization reduced by 30%4 be limited to areas that have benefitted from marwa improvements and had at least one IO-1e: Laser land leveling applied on Deleted season of irrigation experience. 105,000 feddan Indicators deleted from RF for lack of direct support by the project, but a reduced target of IO-1f: Deep ploughing applied on Deleted 50,000 feddan will be monitored separately 50,000 feddan due to its importance. IO-1g: Gypsum applied on 70,000 Deleted feddan Indicator is irrelevant as civil works IO-1h: Alternative contracting contracts of this nature in Egypt are done by approaches for marwa improvement Deleted different contractors (small, medium and adopted in 30% of contracts large) simultaneously. Even larger contractors sub-contract the smaller ones. IO-1i: 80% of marwa committees The contracting method utilized is irrelevant with alternative contracting as long as the end product is of good quality. approaches satisfied with contracting Deleted and implementation (measured by scorecard assessment) 2 Cost estimates are based on experience under IIIMP project. 3 About 90% of the project area is expected to participate in the marwa modernization. 4 Based on experience with rice and cotton irrigation in the W-10 area. 12 Component 2: IO-2a: 100% of farmers in project Replaced with new IO-2a: Replaced with core indicator and target area familiarized with marwa Targeted clients satisfied with revised to 70% to be more realistic given the modernization program, including agricultural services (percentage) nature of land ownership and tenancy in the cost recovery (measured by scorecard Delta. assessment) IO-2b: Visit of extension agents to Replaced with new IO-2b: Client Replaced by a core sector indicator. farmer communities increased by days of training provided 75,000 field days5 IO-2c: Training in technical and Deleted, but content captured in agronomic skills received by 7,500 IO-2b key farmers6 IO-2d: Women account for at least Deleted, but content captured in 25% percent of people trained IO-2b IO-2e: Improved irrigation Revised IO-2e: Technologies Replaced with a core sector indicator. technologies, such as low head demonstrated in the project areas Besides, different irrigation technologies, bubblers, adopted by farmers on an (number) such as raised bed and boarder irrigation additional 10,000 feddan practices are more realistic given the nature of agricultural system practiced in the project area, for example, due to intercropping. The target has been reduced to 100 feddan to be more realistic given what could be achieved during the project implementation period.7 IO-2f: Higher value horticultural Area with higher-value Indicator revised to indicate the crops grown on an additional 12,000 horticultural crops grown (number demonstration efforts supported under the feddan of feddan) project and target reduced to 100 feddan to be more realistic given what could be achieved during the project period8. IO-2g: Monitoring and evaluation No change Unit of measure changed from percentage to system established and applied Yes/No 5 Based on expected field allowance payments 6 Assuming 2-3 farmers from about 3,000 mesqas 7 Adoption of improved irrigation technologies such as low head bubblers is a result of many other incentives/disincentives than supply of irrigation water through modern systems, such as cost of water, potential revenue, and suitability of land. In addition, it also takes a much longer term engagement with farmers and change of behavior than the time available under the project to achieve these objectives 8 Adoption of higher-value horticultural crops is not necessarily the result of improved irrigation systems, but rather due to reliability of on-demand water availability, profit margin, market linkages, knowledge of the options available, and suitability of the land. 13 ANNEX 1(B): Arrangements for results monitoring Project Project EGYPT Farm-level Irrigation Modernization (P117745) Restructuring Status: DRAFT Name: Stage: Team Requesting Leader(s) Bekele Debele Negewo MNC03 Created by: Bekele Debele Negewo on 19-Mar-2015 Unit: : Product Responsible IBRD/IDA GWA05 Modified by: Elena Gagieva-Petrova on 03-May-2016 Line: Unit: Country: Egypt, Arab Rep Approval FY: 2011 MIDDLE EAST AND NORTH Lending Region: Investment Project Financing AFRICA Instrument: Project Development Objectives Original Project Development Objective: The project development objective is to increase agricultural profitability and improve equity in access to higher-quality water for up to 140,000 small-scale farmers on up to 200,000 feddans (80,000 hectares) in the command areas of Mahmoudia, Manaifa and Meet Yazid located in the Nile Delta. Proposed Project Development Objective (from Restructuring Paper): The revised project development objective is to increase access to modern irrigation systems in the project areas of Mahmoudia, Manaifa and Meet Yazid located in the Nile Delta, in an equitable manner. Results Core sector indicators are considered: Yes Results reporting level: Project Level Project Development Objective Indicators Status Indicator Name Core Unit of Baseline Actual (Current) End Target 14 Measure New Water users provided with Number Value 0.00 60000.00 140000.00 improved9 irrigation and Date 01-Feb-2015 30-Apr-2016 31-Dec-2017 drainage services (number) Comment New Water users provided with Number Value 0.00 5.00 10.00 irrigation and drainage services Sub-type - female (number) Supplemental Date 01-Feb-2015 30-Apr-2016 31-Dec-2017 Comment Revised Irrigation operating and Percentage Value 0.00 0.00 30.00 maintenance costs reduced10 Date 05-Jan-2011 30-Apr-2016 31-Dec-2017 Comment Irrigation operating Target date cost reduced revised to reflect (LE/feddan). At the new closing baseline, irrigation date operating cost is estimated at 300- 350LE/feddan Marked for Irrigation operating cost Percentage Value 0.00 0.00 30.00 Deletion reduction Date 05-Jan-2011 04-Oct-2012 30-Mar-2016 Comment New Ratio of water availability (in Percentage Value 50.00 60.00 75.00 9 Modern irrigation = improved marwa through lining or buried pipes 10 Average for areas benefiting from the project 15 cubic meters/ hour) measured Date 01-Feb-2015 30-Apr-2016 31-Dec-2017 at tail and head ends11 Comment The data is for areas The data is for The data is for benefiting from the areas benefiting areas benefiting project in terms of from the project from the project marwa in terms of marwa in terms of improvements. Unit improvements. marwa of measure is ratio improvements. (%) for flow in CUM/hr. Revised Operational mesqa level water Number Value 0.00 350.00 1000.00 user associations created and/or Date 01-May-2011 30-Apr-2016 31-Dec-2017 strengthened (number)12 Comment This refers to mesqa Target date level WUAs revised to reflect strengthened to the new closing manage/operate the date entire mesqa system, including improved marwas Marked for Operational water user Number Value 0.00 350.00 10000.00 Deletion associations created and/or Date 01-May-2011 10-Apr-2014 30-Mar-2016 strengthened (number) Comment Marked for Direct project beneficiaries Number Value 0.00 0.00 130000.00 11 This is a measure of equity of irrigation water distribution b/n head and tail end farmers. The ratio should measure water availability per rotation cycle to farmers at head end and tail end and compare the difference. It should also ensure that water pressure is maintained at required level at both ends. 12 This should focus on ensuring the sustainability of mesqa level WUAs and their ability to manage/ operate the entire system of mesqa and improved marwas. Marwa Committees are important to raise awareness and develop consensus regarding improvement of marwas. However, once the marwas have been improved, their functionality is not clear. From irrigation water management point of view, mesqa level WUAs are critical. 16 Deletion Date 01-May-2011 30-Dec-2012 30-Jun-2016 Comment Marked for Female beneficiaries Percentage Value 0.00 5.00 10.00 Deletion Sub Type Supplemental Marked for Establishment of Marwa Number Value 0.00 0.00 20000.00 Deletion Committees Date 05-Jan-2011 05-Jan-2011 30-Mar-2016 Comment Marked for Drainage water re-use Percentage Value 0.00 0.00 -20.00 Deletion Date 05-Jan-2011 05-Jan-2011 30-Mar-2016 Comment In principle, drainage water reuse is a good thing provided that its quality is maintained. As such, the relevance of this indicator and target in the context of best practice water resources management is not important Marked for Improved equity in yields Percentage Value 0.00 0.00 -20.00 Deletion between tail-end and head Date 05-Jan-2011 04-Oct-2012 30-Mar-2016 17 reach farmers Comment Equity in yield is not a good indicator for equity in access to irrigation water, which is what the project is trying to improve. Marked for Agricultural output from the Percentage Value 0.00 0.00 10.00 Deletion main irrigated crops Date 05-Jan-2011 04-Oct-2012 30-Mar-2016 Comment Intermediate Results Indicators Unit of Status Indicator Name Core Baseline Actual (Current) End Target Measure New Direct project beneficiaries Number Value 0.00 60000.00 140000.00 Date 01-May-2011 10-Apr-2014 31-Dec-2017 Comment New Female beneficiaries Percentage Value 0.00 5.00 10.00 Sub Type Supplemental Date 01-May-2011 10-Apr-2014 31-Dec-2017 Comment New Area provided with irrigation Value 0.00 20000.00 80000.00 and drainage services – Hectare(Ha) Improved (ha) 01-May-2011 02-May-2016 31-Dec-2017 Date Comment Marwa modernization 18 adopted over an area of 170,000 feddan Revised Electric pump installed on Number Value 0.00 50000.00 150000.00 mesqas Date 05-Jan-2011 02-May-2016 31-Dec-2017 Comment Measures area Target and (feddan) served target date under the project by revised to reflect electric pumps the new closing date Marked for Electric pump installation Number Value 0.00 0.00 130000.00 Deletion Date 05-Jan-2011 21-Nov-2014 30-Mar-2016 Comment Revised Water pumping costs reduced Percentage Value 0.00 15.00 30.00 Date 05-Jan-2011 02-May-2016 31-Dec-2017 Comment Irrigation cost has Target date reduced from revised to reflect baseline of about the new closing 300-350LE/feddan date to 150-200LE /feddan in areas benefiting from the project Revised Labor time savings for farmers Percentage Value 0.00 10.00 30.00 Date 05-Jan-2011 02-May-2016 31-Dec-2017 Comment Irrigation time saved Target date due to revised to reflect improvements in the new closing 19 irrigation system date under the project New Targeted clients satisfied with Percentage Value 0.00 50.00 70.00 agricultural services Date 01-May-2014 02-May-2016 31-Dec-2017 (percentage) Comment New Targeted clients satisfied with Number Value 0.00 250.00 700.00 agricultural services - male Sub Type (number) Supplemental New Targeted clients satisfied with Number Value 0.00 250.00 700.00 agricultural services - female Sub Type (number)13 Supplemental New Targeted clients- male Number Value 0.00 500.00 1000.00 (number) Sub Type Supplemental New Targeted clients – female Number Value 0.00 500.00 1000.00 (number) Sub Type Supplemental New Client days of training Number Value 0.00 1500.00 7500.00 provided14 Date 01-Jan-2015 02-May-2016 31-Dec-2017 Comment 13 This includes awareness about marwa improvements and cost recovery, and extension services regarding modern irrigation and agronomic practices (such as farmer field school— FFS) 14 Includes farmers reached by extension agents and received specialized trainings, such as modern irrigation and agronomic practices and horticulture, etc. 20 Revised Technologies demonstrated in Number Value 0.00 6.00 15.00 the project areas (number)15 Date 01-May-2011 02-May-2016 31-Dec-2017 Comment Revised Area with higher-value Number Value 0.00 0.00 100.00 horticultural crops grown Date 05-Jan-2011 02-May-2016 31-Dec-2017 (number of feddan) Comment Unit of measurement in feddan Marked for Higher-value horticultural Number Value 0.00 0.00 12000.00 Deletion crops grown Date 05-Jan-2011 21-Nov-2014 30-Mar-2016 Comment Revised Monitoring and evaluation Yes/No Value No Yes Yes system established and applied Date 05-Jan-2011 02-May-2016 31-Dec-2017 Comment Unit of Target date measurement in % revised to reflect of total area the new closing benefiting from the date project Marked for Monitoring and evaluation Percentage Value 0.00 40.00 100.00 Deletion system established and applied Date 05-Jan-2011 21-Nov-2014 30-Mar-2016 Comment Marked for Improved irrigation Number Value 0.00 0.00 10000.00 15 This includes irrigation and agronomic practices/ technologies (including new varieties and/or high-value crops) introduced by the project, such as at FFS 21 Deletion technologies Date 05-Jan-2011 21-Nov-2014 30-Mar-2016 Comment Marked for Training of women Percentage Value 0.00 0.00 25.00 Deletion Date 05-Jan-2011 21-Nov-2014 30-Mar-2016 Comment Marked for Farmer training Number Value 0.00 1000.00 7500.00 Deletion Date 05-Jan-2011 21-Nov-2014 30-Mar-2016 Comment Marked for Increase in extension agent Number Value 0.00 0.00 75000.00 Deletion visitations Date 05-Jan-2011 21-Nov-2014 30-Mar-2016 Comment Marked for Increased farmer awareness Percentage Value 0.00 35.00 100.00 Deletion with marwa modernization Date 05-Jan-2011 21-Nov-2014 30-Mar-2016 program Comment Replaced with core indicator Marked for Increase in gypsum application Number Value 0.00 0.00 70000.00 Deletion Date 05-Jan-2011 21-Nov-2014 30-Mar-2016 Comment Marked for Deep ploughing improvements Number Value 0.00 0.00 50000.00 Deletion Date 05-Jan-2011 21-Nov-2014 30-Mar-2016 Comment Marked for Laser land leveling Number Value 0.00 0.00 105000.00 22 Deletion improvements Date 05-Jan-2011 21-Nov-2014 30-Mar-2016 Comment Marked for Marwa committee satisfaction Percentage Value 0.00 0.00 80.00 Deletion with alternative contracting Date 05-Jan-2011 21-Nov-2014 30-Mar-2016 Comment This indicator is not so important Marked for Adoption of alternative Percentage Value 0.00 0.00 30.00 Deletion contracting approaches Date 05-Jan-2011 21-Nov-2014 30-Mar-2016 Comment Marked for Marwa modernization adoption Number Value 0.00 4000.00 180000.00 Deletion Date 05-Jan-2011 21-Nov-2014 30-Mar-2016 Comment 23