4 Document of The World Bank FOR OFFICIAL USE ONLY Report No.9479 PROJECT COMPLETION REPORr MALAYSIA TRANS-PERAK AREA DEVELOPMENT PROJECT (LOAN 1960-MA) APRIL 5, 1991 Agriculture Operations Division Country Department II Asia Regional Office This doument has a resticted distribution and may be used by rediplents only in the performauee of their officile duties. Its contents may not otherwise be disclosed wiot Would Bnk authofzon. CURRENCY EOUIVALENTS Name of Currency: Malaysian Ringgit (M$) Appraisal Year Average (1980): US$1.00 - M$2.18 Completion Year Average (1989): US$1.00 - MS2.70 GOVERNMENT OF MALAYSIA FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES 1 hecare (ha) 2.47 acres 1 kilometer (km) - 0.62 mile 1 meter (m) 3.28 feet 1 kilogram (kg) - 2.2 pounds 1 ton 2,205 pounds ABBREVIATIONS ac acres C.H.O. = Constant Head Orifice DID = Drainage and Irrigation Department D.0 = Drainage Outlet DOA = (Perak) State Department of Agriculture EPU Economic Planning Unit ERR Economic Internal Rate of Return FELCRA Federal Land Consolidation and Rehabilitation Authority FELDA = Federal Land Development Authority ffb - fresh fruit bunch (oil palm) F.O. = Field Offtake FOA 3 Farmers Organization Authority GOM = Government of Malaysia ha e hectare(s) _BRD = International Bank for Reconstruction and Development ICB = International Competitive Bidding LCB = Local Competitive Bidding LPN I.embaga Padi dan Beras Negara - National Padi and Rice Authority MARDI = Malaysian Agricultural Research and Development Institute MLRD = Ministry of Land and Regional Development MOA = Ministry of Agriculture mt metric tonne mUV Manufacturing Unit Value PLI Poverty Line Income PWD = Public Works Department SAR = Staff Appraisal Report SEDC = State Economic Development Corporation SEPU = State Economic Planning Unit SOE = Statement of Expenditures FOR OMCIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 US.A. Op.nif IvaItih April 5, 1991 MEMORANDUM TO THE EECUTIVE DIRECORS AND THE PRESIDENT SUBJECTs Project Completion Report on Malaysia UTans-Perak Area Develoi,ment Project (Loan 1960-MA} Attached, for information, is a copy of a report entitled "Project Completion Report on Malaysias Trans-Perak Area Development Project (Loan 1960-M&)" prepared by the Asia Regional Office. No audit of this project has been made by the Operations Evaluation Department at this time. Attachment This document ha a restrited distribution and may be used by recipients only in the performance of their oMcial duties Its contents may not otherwise be disclosed without World Bank authorintion. FOR OFMFCIAL USE ONLY PROJECT COMPLETION REPORT MALAYSIA TRANS-PERAK AREA DEVELOPMENT PROJECT (LOAN 160N-MA) TABLE Of CONTENT MRFACE BASIC DATA SHEET . . . . . . . . . . . . . . EVALUATION SU2MARY ................. v OVERVIEW Project Implementation ix Loan Effectiveness ix Early Impllenta:ion ....... .ix Project Reformulation. ............ ix Project Sustainability .. ..xi. s Borrower Perforiance . xii Bank Performance . . .lit PROJECT COMPLETION REPORT PART I INTRODUCTION 1 PART II PROJECT BACKGROUND . . . . 2 A. Project Formulation ... . 2 B. Project Are. . . . . . . . 2 C. Project Objectives and Description . . . . . . 2 D. Project Organization . . . .. . . . . . . . . 4 E. Project Cost and Financing . . . . . . . . . . 4 P Project Reformulation ..... .. ... 4 C. Amendments to Loan/Project Agreements . . . . 6 PART III PROJECT ILEMENThTION ..... .. . 7 A. Implementation of Project Components . . . . .7 - Drainage and Irrigation .......... 7 - Agricultural Development . g40**9*99 9 - Project Main Roads .l. . .... . 11 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 - West Coast Highway Section . . . . . . . . . 12 - Settler Houses . . . .. ... ...... 13 - Project Buildings . . . .......... 13 - Processing Facilities . . ......... 14 - Equipment and Vehicles . .......... 15 - Township and Settlement Infrastructure . . . 15 B. Project Cost . . . .. .... .... .... 18 C. Procurement .. .. ... ... .. .... . 18 D. Disbursement . . . . . . e. .. .. .. . .. .. 19 E. Institutionial Performance . . . . . . . . . . 20 F. Compliance with Legal Covenants . . . . . . . 21 PART IV PROJECT IMPACT . . . . . . . . . . . . . . . . . 23 - Yields and Cropping Intensity . . . . . . . 24 - Seed Production . . . . . . . . . .#. . . . 27 - Pests and Diseases . es. . . . . . . . ... . 28 - Water Management . . . . . . .*. . . . . . . 28 - Operation and Maintenance . . . . . . . . . 29 - Production . . . . . . . . . . . . . . .. .. 29 B. Oil Palm . . . . . . . . . . . . . . . . . . . 32 C. Cocoa .. . . . . . . . . . . . . . 33 PART V FINANCIAL AND ECONOMIC ANALYSES . . . . . . . . . 35 A. Prices and Costs . . . . . . . . ....... 35 B. Settlers' Incomes .. .. .. .. .... .. 36 C. Economic Rate of Return . . . . . . . . . . . 37 D. Cost Recovery . . . . . . .. . ...... . . 38 PART VI LESSONS LEARNED AND CONCLUSION . . . . . . . . . 41 Chart I Project Office Organization Chart MAP IBRD 22846 AWnex D9flcriQtiOg I Key Performance Indicators 2 Hand-over Schedule from DI) to FELCRA 3 Drainage and Irrigation - Physical Perforance of Works 4 Area Cleared, Planted and In Production 5 Roads Completed 6 Construction of Settler Houses 7 Buildings Completed 8 Vebicles and Equipment List 9 Settlement Infrastructure - Physical Porfora e :3 Annual Project Cost, DID, PWD and Felera Cost., Settlement Infrastructure Costs 11 Reimbursement 12 Padi Production and Yield 13 Annual Oil Pals Plantings, Production and Yield 14 Annual Cocoa Plantings, Production and Yield 15 Price Structures for Rice, Pals Oil and Cocoa 16 Crop Production Budgets - Rehabilitated Padi, Mechanised Padi, Oil Pals and Cocoa 17 Settlers Cash Flow 18 Economic Costs and Benefits - Agriculture Couponent. - 1 - PROJECT COIPLRTION REPORT TRANS-PERAK AREA DEVELOPMENT PROJECT (LoAN 1960-NA) This is the Proiect Completion Report (PCR) for the Trans Perak Area Development Project in Malaysia, for which Loan 1960-MA in the amount of US$50 million was approved on March 26, 1981. The loan closed on schedule on June 30, 1989. Following cancellations on May 22, 1986 and July 28, 1987 of US$4.0 million and US$15.35 million respectively, the remaining loan balance of US$30.65 million was fully disbursed and the last disbursement was on September 15, 1989. The PCR was prepared by the Borrower's Federal Land Consolidation and Rehabilitation A;ithority (FELCRA), the lead implementing agency for the project, and the Preface, Basic Data Sheet, Evaluation Summary and Overview were prepared by the Agriculture Operations Division, Country Department II, Asia Region. The Overview is based, inter alia, on the Staff Appraisal Report No. 3220-MA, dated February 27, 1981; Loan Agreement dated May 6, 1981; President's Report No. P-2917-MA, dated March 5, 1981; a Reformulation Report dated April 28, 1986; Bank supervision reports and internal memoranda; correspondence between the Bank and the Borrower; and the Borrower's progress reports. The Asia Regional Office expresses its appreciation to FELCRA for preparing a comprehensive PCR. The draft PCR was sent to the Borrower for comments and the comments have been incorporated in the final PCR. - Lrt - TR - AR AR -CR MW (Wi 19604M) -iEY PWOpJT DATA Aisctajea Acua l or A 0tuel as * d PROJ dt &m wn so a *gagg,w"srov ' [3 ^ Ii 1 :at.ai& *et i5 ,o o4i D%atif tlonal 04kferoe >Eid I I *fa fEi;t3Sj of Prei... * i F I., o frctS of pdeturfi ŁU7Re2 AA 2 ES F E9~~~~~~2 Z FF CLAAIV DSM S~EPOW E EX B t VA$* as I --S Princ f"Sal -t_* t 7 s li r Oatt No. of Ma-days, Siiaiisaioa Per T d folr rso in field reore iwtdl ruan * lbo Trd tre S. _ ~ ~ _ - 1 - oTHm PFlJW' DATA S-rvsiox ~ ~ IL Ii 1L lL0 _Z LA __ sr-rvi*iefi ~ ~ -fm - Osi; _!; .._ Ii 12 J 4e A. 4 L ThgsL LA AiLL SLI LI iLl " iL l miL MA UA LI LgMALI Na.. ot eurresey (abhrNMev-101. i utiasi =aborwit Year~~ L~a e . ariculturipat b a ggricultural .ceom,aitl a a oimarl d a I rrigatbion angin..r; a a sace agofel;iat, f a fleaa.,is analyat. - I a .rgelom1-f.e or mi 2ow problem; 2 a aedarft. *r.bl.aS and 8 m onjr problm. imaparoving; S a stationary. 3 detaireorating. P finaneial; N4 a amaag.rial: I T tehical; P = political;I and 0 = other. - v - PROJECT COMPLETIN REPORT MALAYSIA TRANS-PERAK AREA DEVELOPMENT PROJECT (LOAN 1960-MA) EVALUATION SUMMARY Project Objectives and Descripticn Poverty alleviation, by settling landless families or those with uneconomic holdings on newly-developed land and by assisting existing farmers to increase productivity and incomes, was the major objective of the project. In addition, the project would assist rice self-sufficiency, increased exports, and more balanced regional development. About 6,900 settler farm families were to benefit directly. The project, to be implemented over seven years (mid-1981 to mid-1988), provided for improvement of about 3,700 ha of existing rice land and development of about 6,400 ha of new rice land and 8,400 ha of tre, crops; improvement and construction of canals, drains and flood embankment; construction of farm roads, project access roads and a 27 km section of the West Coast Highway; construction of a township and improvement of the Sungei Dedap village settlement; construction of a palm oil factory and a cocoa drier/fermentary; agricultural support services and facilities; and consulting services for detailed design and construction supervision of project works and preparation of future projects. The project was to be implemented by the Ministry of Agriculture (MOA) with the assistance of agencies under MOA and other ministries. Implementation Experience There were significant early implementation delays due to the late appointment of the Project Coordinator; delays in surveys, designs (including Township Masterplan), and land acquisition; inadequate budget allocations; uncertainty as to agency responsibility for main road construction; and additional structure requirements (for the flood bypass) for the West Coast Highway section. Due to coordination difficulties, the responsibility for project coordination and implementation was transferred on January 1, 1984 from MOA to the Ministry of Land and Regional Development, which appointed the Federal Land Consolidation and Rehabilitation Authority (FELCRA) as the lead implementing Pgency. Due to changing economic and technical conditions, a project reformalation was finalized in February 1986, which revised targets downwards for new rice land to 4,500 ha, for tree crops to 7,600 ha and for settler families to 4,000, and upwards for existing rice land to 4,370 ha. The new rice area was, however, to be operated by FELCRA as a fully mechanized rice estate with all operations contracted out. Settlers would earn income from wages or contract work in both rice and tree crop estate operations and get a share in profits. The reduction in the target number of settlers was due to the reduction in the target for new rice land; decline in commodity -vi- prices, particularly of palm oil, which necessitated a larger area per settler to ensure incomes above the poverty level; and the declining interest of individual farmers in rice growing, leading FELCRA to operate the new rice area as an estate, which, however, required fewer settlers due to its fully mechanized operations. Project completion date was extended from June 30, 1988 to December 31, 1988; project cost was revised from M$430 million (uS$200 million) to M$344 million (US$143 million); and Bank loan amount was reduced to US$46 million from the original US$50 million. At completion, project cost was only M$264 million (US$104.5 million) and the final Bank loan amount US$30.65 million. The loan closed on schedule on June 30, 1989. Results Despite early implementation problems, the project was an overall success and increased productivity and incomes of settlers. At project completion in early 1989, rehabilitated padi area was 4,035 ha (109X of appraisal and 922 of reformulation target), new padi area 4,353 ha (68Z of appraisal and 97t of reformulation target) and tree crop area (mostly oil palm) 8,218 ha (97X of appraisal and 108X of the reformulation target). The achievement of a 200Z cropping intensity for padi was particularly remarkable and yields of about 4 tons/ha per season are close to appraisal estimates. There have also been major changes in farm cultural and agronomic practices in the project area, such as the introduction of dry ploughing followed by puddling, direct seeding and mechanized harvesting. Except for the rehabilitated rice area, the entire newly developed land for rice and tree crops is now managed as a PELCRA estate where settlers provide labor. Irrigation works construction exceeded targets; project access roads construction (54.6 km) was 103? of appraisal and 90? of reformulation target; and West Coast Highway section (24.3 km) was 902 of appraisal and 100? of reformulation target. However, due to a substantial under-estimation at appraisal, cost of access roads and the West Coast Highway section exceeded appraisal estimates by almost 100?. Due to a decision to reduce the number of settlers consistent with project employment opportunities, only 1,434 settler houses were constructed compared to the appraisal and reformulation targets of 6,900 and 4,000 respectively. Other settlement infrastructure costs were only 44X of appraisal and 62? of reformulation estimates. Although the number of settlers, as decided by the State Government, is to be 4,000, for the time being only those who can be fully employed by the project, estimated at 2,000, will be emplaced. Palm oil mill construction (40 ton fresh fruit bunch/hour) was postponed due to delayed plantings and production and cocoa drier/fermentary was constructed with a capacity of 2 tons dried beans/day compared to the expected 5 tons/day, due to lower production of cocoa. Consultancy services were utilized except for the preparation of future projects. The economic rate of return (ERR), estimated at completion only for the agricultural component, is 10? compared to 18? at appraisal and 9? at reformulation. The main reason for the lower ERR compared to that at appraisal is the decline in world commodity prices, particularly for rice, - vii - which his an ERR of 6? compared to 20? at appraisal. The annual operation and maintenance costs are also substantially higher than appraisal estimates, mainly due to a significant increase in wage rates in real terms. Sustainability Overall, the project is sustainable. However, this is due to the economic and financial viability of oil palm. Padi, which will account for the major part of agricultural and irrigation recurrent costs, is economically not viable, given the projected world ra.Le prices. Its financial viability depends on whether the Government will continue to subsidize padi production. Given the projected world prices, cocoa is also economically and financially not viable. However, actual yields and cropping intensity of padi are very satisfactory and irrigation works are being properly maintained. An upturn in world rice prices will render project sustainability beyond question. The West Coast Highway, if its proper maintenance continues, is likely to yield sustained benefits. Organizationally, the project is sustainable as FELCRA continues to manage it through a project office, which is adequately funded and staffed. However, the Government needs to determine the desirable number of settlers and beneficiaries which the project can sustain over the long run. Moreover, with a view to effectively divest FELCRA of the project management responsibility in the long run, FELCRA should continue to strengthen the settlers' cooperative, which is already actively engaged in tendering for land preparation, field maintenance and harvesting, and in transporting project output. Findings and Lessons Learned Typifying the experience of many multi-component projects, the late appointment of the Project Coordinator caused early implementation delays. For projects of this nature, early appointment of Project Coordinator is essential. Delay in infrastructure development, particularly access road construction, delayed agricultural development. Moreover, access road and West Cost Highway costs were grossly underestimated at appraisal. In proje,cts of this nature, where infrastructure development must precede agricultural development, greater attention to preparation and supervision of the infrastructure componont is needed. The prcject demonstrated that the estate form of management, usually associated with tree crops, can also be successfully used for large-scale mechanized rice cultivation, provided that large investments in machinery and workshop facilities are avoided. Overseas visits by the technical staff had a marked beneficial impact on their skills through exposure to technological developments in other countries, particularly for management of mechanized padi. The Statement of T,penditure (SOE) procedure was introduced only in the later period of the project. The use of this procedure from the very start, recognizing that small contracts and payments are a common feature of land development, would have accelerated disbursement. - ':'iii . In the early years, Bank supervision missions did not show enough flexibility in response to changing conditions and, consequently, project implementation suffered. Later, the flexibility and appropriate skill mix of Bank missions had a favorable impact, particularly on the implementatior of large-scale mechanized rice cultivation. - ix - PROJECT COKPLETION REPORT mmYS TRANS-PERAK AREA DEVELOPMENT PROJECT (LOAN 1960-MA) OVERVIEW 1. This overview utilizes information from documents (listed in the Preface) other than the PCR and supplements parts of the PCR relating to project implementation and reformulation, project sustainability, Borrower performance and Bank performance. Proiect Implementation 2. Loan Effectiveness. Loan effectiveness was declared some three months later than anticipated on October 23, 1981 due to the late appointment of the Project Coordinator (the appointment was a condition of loan effectiveness). However, the appointed person could not take up his position until December 22, 1981 because of delays in issuing the formal letter of appointment. 3. Early Implementation. The project was to be implemented over a period of 7 years from mid-1981 to mid-1988. Construction of major irrigation and drainage works was already in progress and it was expected that on-farm development works would start in 1982. Most of the township facilities were expected to be completed in 1984 and construction of settler houses would be phased with land development. The West Coast Highway section was expected to be completed in 1985. However, there were significant early implementation delays due to the late appointment of the Project Coordinator; delays in surveys, designs (including Township Masterplan), and land acquisition; inadequate budget allocations; uncertainty as to agency responsibility (Federal and State Public Works Department) for main road construction; and additional structure requirements (for the flood bypass) for the 27 km long section of the West Coast Highway, which resulted in a l-year delay in starting construction and over 10O increase in cost over the appraisal estimate. Delays in crop area development were due to contractual failures and severe crop damage by wild boars, which necessitated considerable replanting. 4. Project Reformulation. During a period of project coordination difficulties, the responsibility for project ckordination and implementation was transferred on January 1, 1984 from MOA to the Ministry of Land and Regional Development, which appointed FELCRA as the lead implementing agency. With the significantly decreased i- erest in smallholder rice growing, the Government of Malaysia (GOM) decided, on the Bank's request, to review the project concept, the implementation schedule and costs. In the meantime, land development and civil works construction had been progressing satisfactorily, although behind the original schedule. Only township development remained stalled. A project reformulation report was to be completed by June 1984. However, GOM then contemplated changes in its Rice Policy and a reformulation report was delayed until late April 1985. In the meantime, the Bank had reviewed a draft of the GOM reformulation proposal which recommended that: (a) new padi dev3lopment should stop at 1,630 ha already completed since rice price projections and high development costs made this component economically unviable; (b) the balance (2,852 ha) of the rice area be converted to oil palm (with drainage and internal roads only); and (c) the settler number be reduced to about 2,500 (due to insufficient employment creation from fully mechanized rice growing). During the mid-1985 Reformulation Mission, the issues were discussed but no final decision could be made since GOM had not decided on its new Rice Policy. 5. Although rice growing continued to be highly subsidized (300 kg/ha free fertilizer; a padi delivery bonus of M$ 165/ton; and low cost irrigation water and agricultural credit), farmer interest diminished. This resulted in much idle rice land. GOM, therefore, reviewed its policy for rice self-sufficiency, which at the time of appraisal had reached 90?, but had declined to about 702 in 1984. It was decided in September 1985 to reduce this to about 60X with rice growing to be concentrated in the major Granary Areas. 6. During the long review period, construction and agricultural activities continued strongly under FELCRA's new Project Coordinator and Senior Agriculturist. In January 1985, a strong management team was emplaced. Project reformulation was finalized in February 1986 after the Government had decided to retain Trans Perak as one of its Granary Areas. Since, by that time, all irrigation and drainage works contracts were already ongoing, the Bank agreed to continue financing rice development although the ERR for this component was calculated at about 72 and the overall revised ERR for the project was about 9?. Under the reformulated project, there were only minor changes in crop area. The rehabilitated rice area continued to be operated as individual farms, but with FELCRA assisting in arranging and supervising contract operations for land preparation and harvesting, and Department of Agriculture assisting in other activities. The new rice area would, however, be operated by FELCRA as a fully mechanized rice estate with all operations contracted out. This decision to contract out eliminated the purchase of tractors, cultivating equipment and combine harvesters as well as the establishment of substantial workshop facilities by FELCRA and was thus quite cost- effective. Settlers were to provide labor for both rice and tree crop estate operations (for daily wages and contractual work) and get a share in profits. The State Government decided that the number of settlers should be 4,000. The reduction in the target number of settlers from 6,900 at appraisal to 4,000 at reformulat3on was necessitated by several factors: (a) the target for new rice land was reduced from 6,400 ha at appraisal to 4,500 ha; (b) commodity prices, particularly for palm oil, were substantially lower than those envisaged at appraisal whereas the poverty threshold (in peninsular Malaysia) increased from M$290/month per family in 1981 to M$360/month by 1986 (M$380/month by 1988), requiring larger amount of land per settler to ensure incomes above the poverty level; and (c) due to the declining interest of individual farmers in rice growing and - xi - FELCRA's success in the estate form of management for tree crops, it was considered advisable to let FELCRA operate the new rice areas as an estate$ however, the fully mechanized operations of the estate required fewer settlers than projected at appraisal. 7. The overall implementation period was increased from 7 to 7-1/2 years to December 31, 1988. The revised cost estimate was US$143.0 million, and based on the already revised disbursement percentage for civil works of 40S, the loan amount was revised to US$46.0 million (cancellation of US$4.0 million was on May 22, 1986). Protect Sustainability 8. PELCRA is continuing to r- i the rice and oil palm/cocoa estate. With effective management, treec p -. rations should continue to be satisfactory. Production and profiti.Ality of tree crops will depend greatly on the provision of timely inputs (fertilizers and pesticides); timely weeding, pruning, harvesting, transport and processing; adequate maintenance of infrastructure (drains and roads); and good international commodity prices. Harmonious relations with settlers for labor supplies are pre-conditions and this will to a great extent depend on their incomes from labor (daily rates as well as income from contracts and share in estate profits). Mechanized rice estate operations demand an extremely high standard of management, supported by continued research feed-back, and with many seasonal and on-the-spot decisions necessary to retain high production levels. Many of these decisions will depend on the outcome of the ongoing national research (choice of variety, and pest and weed control/management) and local verification research (fertilizer rates, pest management, water management, method of crop establishment, etc.). Management must be able to adhere to pre-set time tables for cultural operations to avoid slippage in the presently achieved exemplary 200? cropping intensity. High rice yields demand good plant densities and these can only be achieved by direct seeding on well levelled and well drained fields without pest damage. Once a satisfactory regular (without gaps) plant density has been obtained, adequate fertilizer has to be applied in a timely manner, while a high standard of water, weeds, and pest management is required. FELCRA has proven to be able to deliver (after an initial shaky start) and it is, therefore, of utmost importance that the high standard of management be retained. Despite the achieved high padi yields in the last few seasons, rice profitability is heavily dependent on the available subsidies (low irrigation fee, free fertilizers and a padi delivery bonus), as international rice prices continue to be lower than the cost of production in the project area. Settler incomes will, therefore, continue to be dependent on the profitability of tree crops and the availability of subsidies for rice (also on a high standard of maintenance of the irrigation, drainage and road infrastructure). Both rice and tree crops are well adapted to the Trans Perak area and available technologies can provide yields which are comparable with the best in other tropical areas. - xii - Borrower Performance 9. Imediately following project effectiveness, GOM was forced to cut budgets due to the general financial constraints. In the first two years after loan signing, only about 102 of the anticipated disbursements was actually achieved. During this period, management problems were evident and coordination between the various implementing agencies was weak. Most of these difficulties emanated from the lead agency issue dating back to the preparation and appraisal period when MOA wanted to execute the project as one of its integrated area projects and FELCRA wished to execute it as a settlement project. Since there were several agencies involved in project implementation, it had been agreed that MOA would appoint a Project Coordinator, who would be responsible to a high level Steering Committee, and would implement the project as an area development project. By mid- 1983, MOA made two proposals for changes in project designs (a) MOA to take over management of the padi areas from FELCRA, while FELCRA would retain responsibility for the tree crop area and township development; and (b) farm sizes to be doubled to 4.9 ha (12 acres) to provide settlers with incomes well above the poverty line and to eliminate fertilizer subsidies for rice. 10. The Bank then, in a letter dated May 17, 1983, requested a detailed financial, technical, economic and social justification of the proposed project changes. Following internal GOM reviews, project coordination was transferred to FELCRA on January 1, 1984. FELCRA then appointed its own Projcct Coordinator, who began, with the assistance of an expatriate consultant, the reformulation study. This study took a long time, mainly due to uncertainties regarding the rice sub-component (paras. 4 and 5). When it was finally decided that Trans Perak would be included in Malaysia's official 'Granary Areas', the proposal was completed. The Bank then agreed in March 1986 with FELCRA's proposal. Rice development, although not considered economically viable, was to continue since all development contracts had already been let, but on the basis of a fully mechanized rice estate (para. 6). Project progress for infrastructure development proceeded rapidly with good agency coordination. FELCRA's performance in record keeping, submission of progress reports, withdrawal applications and audited accounts was fully satisfactory. Due to changing requirements of canal and road layouts for mechanized rice farming, FELCRA had to make changes in roads, fieldsize, in- field drainage, land leveling and sanitation (for rat and other pest control/prevention). Additional d-ainage for rice had to be provided to allow rapid evacuation of excess water within the scheme area. FELCRA had considerable problems with some poor performing tree crop contractors, as well as poor plant survival rates in early years (because of rats and boars) and some incidence of lalang competition. Adaptation to the precise standards required for mechanized rice cultivation was slow, but after management personnel viewed and discussed operations and requirements during a study tour to Australia, significant Improvements were made, which immediately resulted in higher yields. The Public Works Department (PWD) performed excellently on - xili - the highway component, but due to some poor contractor performance, rectification proved necessary in one of the access roads. Bank Performance 11. There were a substantial number of issues to be resolved both in Malaysia and in the Bank before Board approval of this rather complicated agricultural development project. The various issues were thoroughly reviewed and reasonably satisfactorily resolved. However, the project management issue could possibly have been addressed more decisively: the initial unsatisfactory management arrangement proved a major cause of delayed project implementation (apart from the factor of budgetary shortfalls in Malaysia's austerity years). Over the 74-year implementation period, there were 13 supervision missions, initially comprising civil engineers and agricultural economists and, later, mostly an agronomist and a tree crops specialist. Revisions to cost estimates, mostly based on ongoing contract work, were poorly done by the Bank staff and FELCRA management and this led to a cancellation of almost 402 of the loan amount. The Bank's supervision missions in the early years showed less flexibility than was needed but later provided substantial technical assistance to FELCRA. Overall, the Bank's performance can be considered satisfactory. PROJECT COMPLETION REPORT MALAYSIA TRANS-PERAK AREA DEVELOPMENT PROJECT (LOAN 1960-MA) PART I: INTRODUCTION 1.01 This Project Coupletion Report for the Trans-Perak Area Development Project is prepared in compliance with Section 3.05(d) of the Loan Agreement between Malaysia and the International Bank for Reconstruction and Development (IBRD) dated May 6, 1981. This is the first World Bank loan in which the Federal Land Consolidation and Rehabilitation Authority (FELCRA) was involved as an implementing agency. The US$80 million loan which was approved on March 26, 1981, was to finance an integrated area development project covering an area of 18,500 hectares over a period of 7 1/2 years from 1981 to mid--1988. The project was originally under the Ministry of Agriculture (MOA) with the main implementing agencies being the Drainage and Irrigation Department (DID), the Public Works Department (PWD) and FELCRA. On January 1, 1984 responsibility for the nageent of the project passed from the MOA to the Ministry of Land and Regional Development (MLRD)Ll to be managed by FELCRA. Primarily as a result of changing economic and technical conditions and a reduction in scope of the project, the project was reformulated and the loan amount was reduced, initially to US$46.0 million on May 22, 1986 and finally to US$30.65 million on August 11, 1988. Following a half year extension, the loan was fully disbursed on September 15, 1989. LI Effective from July 1, 1987 Felera was transferred to the Ministry of National and Rural Development. - 2 - PROJECT COMPLETION REPORT UMALASI TRANS-PERAK AREA DEVELOPMENT PROJECT (LOAN 1960-MA) PART I: PROJECT BACKGROUMD A. Pr9ject Formulation 2.01 The project was one of four projects identified by a regional developmet study of the Lower Perak basin undertaken in 1976 by ESAMS (Malaysia), in mociation with Hloward Humpbreys & Sons (UK). Project preparation took place in 1978/1970 luring which the Perak State Bconamic Planning Unit (SBPU) .d the Economic Planning Unit in the Prim Minister's Department jointly prepared the project with aistauec frm local consultants RE" WKidt Sda. Bhd., in assciation with Snowy Mountain ginoering Corporation (SEC) (Australia). Advisor of the UNDP/IBRD State and Rurl Develop ant Project also provided substantial inputs into the project preparation. Fre-appraisal took place in September/October 1979 with a follow-sp being carried out in January 1980. Project appraisal by the World Bank took place in June/July 1980. Following loan negotiations from January 22-29, 1981 in Washington D.C. and approval by the Bank's Board on March 26, 1980, the loan was signed on May 6, 1981 for a su of US*50.00 mdllion and beame effective on October 23, 1981. B. Froect Am 2.02 The project is located in the state of Perak on the w_t coast of Peninsular Malaysia. It lies at the south e tern edge of an 80,000 he ammWy flodplain on the right bank of the Perak River, some 10 kam inland from the Straits of Malacca and about 80ko from Ipoh, the state capital. It has a tropical climate charecterised by high rainfall, humidity and teperaturm. Average annual rainfall is about 2100 - with monthly peaks in April and October. Rainfall is much lower and more variable during January - February and June - July resulting in two short but dintinct dry periods where evapotranspiration exceeds rainfall. 2.03 The project area slopes gently fro north to south and the surface is generally flat with interwoven ridges and depression. Distinct old river courses bisect the southern part of the project. The soil is mainly of riverine sedimento with the remainder a mix of riverine and marine sedLints, overlain with sballow peat and organic muck. C. Proiect Obiective A;nd DescriptioM 2.04 The maib objectives of the project were to eradicate poverty by settling landlem farers or those cultivating uneconoic sized holdings on newly developed land and by assisting existing farmers to increse productivity and incomes. The project was also to assist in achieving rice self-sufficiency and increase foreign exchange earnings from tree crops and also to achieve a more balanced regional distribution of development. -3- 2.05 The project was to provide for improvement of about 3,700 ha of existing rice land, developoent of about 6,400 ha of new rice land and 8,400 ha of treecrops. Settlement facilities were to have been provided for 6,900 families. 2.06 The Project was to comprise developuent activities over a period of eight years (1981-1988) and consisted of the following main components:- (a) improvement of about 122 km and construction of about 79 km of main and secondary canals; (b) improvement of about 73 km and construction of about 12 km of main and secondary drains; (c) development of about 6,400 ha of new land for rice cultivation, including land clearing and levelling, and construction of tertiary canals, drains and farm roads; (d) rehabilitation of about 3,700 ha of existing rice land, including levelling On 1,000 ha and construction of farm roads; (e) land development and crop establishment for about 8,400 ha of treecrops, including land clearing, internal drains and farm roads and bridges; (f) improvem_nt of the existing 66 km and construction of 29 km of flood embankbent; (g) construction of 53 km of project main roads; (h) construction of a 27 km section of the West Coast Highway; (is construction of a township and improvement of the Sungai Dedap village settlement for 6,900 settler farm families; (j) provision of agricultural support services, including offices, workshops, and staff housing; and (k) construction of processing facilities for oil palm with a capacity of 40 ton fresh fruit bunch (ffb)/hr and for cocoa with a capacity of 5 ton dried beans/day. 2.07 ln addition, the project was to provide vehicles and equipment for agricAtural support services, operation and maintenance, and consulting services for detailed design and construction supervision of project works and preparation of future projects. -4- D. Erg9JAL"rghaiamtIQ 2.08 A Project Coordinator wa appointed by the MOA in October 1981 to coordinate and manage the project and he was guided on policy matters by a Steering Committee composed of the Secretar'aus-General of the MDA and the MUM, the State Secretary of Perak and other officials. The major implementing agencies were: (a) FELCRA - responsible for land development and settler housing. (b) Drainage and Irrigation Department (DID) - responsible for drainage, irrigation and flood control works. (c) Public Works Departaent (PWD) - responsible for roads. 2.09 Tha other participating agencies included Perak S8DC for settlement services, Department of Agriculture (DOA), Farmers Organisation Authority (FOA), Malaysian Agricultural Research Development Institute (MURDI) and Bank Pertanian Malaysia (BPM) for agricultural support services and National Padi and Rice Authority (LPN) for padi marketing. 2.10 In an effort at streamlining the functions of the implementing agencies, the government felt that the ministry in charge of the key implementing agency should take the lead in project coordination. Thus, from January 1, 1984, the government decided to shift the responsibility for project coordination and implementation from the MDA to the MLhD to be implemented by Felcra. E. Preit_ Qgt 3and Firangcig 2.11 At appraisal, total project cost was estisated at US$4200 million (MS430 million) of which the foreign exchange costs amounted to about US$67.0 million (M$144 million). The Bank was to finance 75X of the foreign exchange costs amounting to US$50 million (M$107.5 million) and the government wa tu finance the balance of the foreign cost nd the full local costs of the project amounting to US$150 million (M$322 million). F. oject.fte.or.ulafion 2.12 The period in which Felcra took over the role of project coordinator coincided with a period of budget restraint in which world crude oil prices plunged to an all time low for the next few years. Consequently, GaM decided to review all projects including the Trans-Perak Project. Project reformulation was proposed and meanwhile CQM undertook a review of the National Rice Policy. -5- Felcra submitted a reformulation proposal incorporating a number of changes in project concept, implementation schedule, project scope and changes in modus operandi affecting the rice areas. The whole exercise was finalised in February 1986 after GOM decided that the Trans-Perak area should remain as a granary area and the Perak State Government decided the number of settlers to be 4,000. Major changes arising from the reformulation were as follows:- a) The new padi area was to be nperated as a fully mechanised rice estate using contractors in all operations. This meant that settlers no longer worked on their individual 1.2 ha pedi plots but would be employed as casual labourers and paid wages for work done as in the tree crop area. rt was decided that heavy equipment such as combine harvesters would not be purchased outright but instead harvesting would be contracted out. b) The new township at Changkat Lads was scaled down to a service centre as there would be fewer settler houses and reduced infrastructure and utilities. c) Settler number was reduced from 6900 to 4000L. d) The implementation period was extended by 1/2 a year to 7 1/2 years ending December 31, 1988. e) Project cost was revised from M$430 million (US$200 million) to M$344 million (US$143 million). Subsequently the Bank loan amount was also revised downwards by US$4 million from USS50 million to USS46 million. 2. 13 About a year after project reformulation, the project was subjected to further review and the project cost was recalculated at M$252.3 million (IIS$103 million) while the Bank loan amount was further reduced by USS15.35 million and the final loan amount was US$30.65 million. Z2 Of the 6,900 settlers, 1,700 were already in the project area and the State Government had given priority for settlement to these residents. So in effect, only 5,200 were to have been selected as new settlers. The final figure of 4,000 settlers was based on the peak labour demand calculated at 4,296 units at reformulation. -6- G. Kwg)-dTqn1B2 290rP.sgo Agr9saga 2.14 In the course of project iuplementation, som amndmnts were made to the loan/project agreements. The first amndmnt to the Lon Agreemnt was made on April 1, 1983 when the disburseent percentage for Category 2 (civil works other than settlement infrastructure) ws changed from 31* to 40*. This wa to cater for force accosmt expenditures which were not reimbursable at the time. 2.15 The second amendment occurred on May 13, 1986 when a sue of US$4.0 million was cancelled frm the original loan amount of US$50.0 million following project reforulation. At the same time there were amendments to Schedule 2 of the Project Agreemnt as follows:- ParSt Decrittina t OrljLgje D Improvement of existing ha 3,700 ha 4,370 ha rice land C Development of new ha 6,400 he 4,500 ha rice land - Developmet of tree crops ha 8,400 ha 7,600 he I Vet Coast Highway construction km 27 km 24.3 km Project main roads km 53 km 52 km I Construction of township and No. of 6,900 4,000 iuprovunt of Sg. Dedap settler village settlement for families K Construction of processing .caacit facilities for oil palm tons ffb/hr 40 27 and cocoa tons dried beans/day 5 2 Project completion date was extended from June 30, 1988 to December 31, 1988. 2.16 Another amendment on August 11, 1987 further reduced the loan amount by US$15.35 million to US$30.65 million. 2.17 The use of Statement of Expenditure (SOS) wEs allowed following another amendment to the Loan Agreement on March 23, 1987. This was to facilitate and expedite disbursement for small direct purchases and force account expenditures for land development works. -7- PROJECT COMPLETION REPQRT UMALASIA TRANS-PERAK AREA DEVELOPMENT PROJECT (LOAN 1960-MA) PART II:: PROJECT IMPLEMENTATION 3.01 At project completion, the project was brought to a successf'ul close and overall performance of the project had been quite satisfactory. Although there existed a number of constraints from the beginning for the land development cozponent, the whole area was aleost fully planted by project closing with rice yields exceeding the reforowlation target of 4.2 mt/ha. Inspite of cost increases and implementation delays caused by difficult ground conditions, budget constraints, contractual failures and revision in scope of works, the performance of infrastructure works were generally satisfactory. Construction of drainage and irrigation infrastructure by DID was generally completed on schedule although there were delays in hand-over of the later phases of the new padi areas. The Went Coast Highway Section was, despite early izpleentation delay, satisfactorily completed and the standard of construction was high. All the access roads and village roads have beeo constructed and part of the Seberang Perak township settlement infrastructure has also been completed. The project anagement team has moved into the new office complex located in the ew township area while 807 settlers had been emplaced by 1968. Annex 1 shows the key physical performance indicators and details of implementation are discussed in the following paragraphs. A tuIeMentation of Proje_t CguogMnets Draj gd rrijp_ ion 3.02 DID was responsibie for the construction of all drainage and irrigation infrastructure up to tertiary level (farm level) anti the provision of technical support including water manag_ment and maLntenance of main and secondary canals and drains. 3.03 Implementation of this component has been generally satisfactory and according to schedule with the exception of certain phases in the new padi area. Planning and design of civil works for this component were carried out well before the project coamenced but actual physical works coamenced in 1981. To facilitate work supervision, a DrD project office was established in Teluk Intan in 1982. 3.04 A total of 11 contracts comprising nine Local Competitive Bidding (LCB) and two International Competitive Bidding (IC8) contracts was awarded to implement variour works including construction of main, secondary and tertiary canals and drains, farm roads, land levelling, rehabilitation and improvement works to the existing drainage and irrigation infrastructure in the Left Branch Canal (LBC) are. Physical works progressed soothly in the early stages of the project period with the first block of - a - 146 he of new pedi area being handxd-over on September, 1983 and by the end of 1985 the whole of Phases 3, 4 and 5Z2 consisting of 1,426 ha had been completed and handed over to Felcra ready for planting. Meanwhile drainage works in the tree crop area (Phases 10 to 15) had also been completed and ready for planting with oil palm and cocoa. Due to delay in calling tender for a few contracts, implementation of Phases 6 and 7 comprising 1,520 ha only coweaced in 1984 while Phases 8 and 9 covering 1,550 ha started in 1985. Phaoes 6 and 7 were completed and handed over to Felcra over a period of two years from September 1986 to June 1987, while Phases 8 and 9 were fully handed over by July 1989. Annex 2 shows the actual hand-over compared to the schedule drawn up at reformulation. 3.05 Construction of the 29km Flood Protection Bund and the internal drainage system in the tree crop area started in mid 1985 and was completed 1 1/2 years later. Drainage and irrigation facilities provided under the project included independent field offtakes, drainage outlet for each 1.2 ha padi lots with farmroad frontage on the drain side. The canal and drain intensity is about 32m per ha in the Right Branch Canal (RBC) area and 17. per ha in LBC area. Water duty provided at pre-saturation is 5.60 1/s/ha with scheduling and 1.75 1/a/ba during normal supply. Drainage module used is half-hour rainfall with five years return period. 3.06 Annex 3 shows the physical performance of the drainage and irrigation component undertaken by DID compared against appraisal estimates. 3.07 The expenditure on concrete lining of part of the secondary and all the tertiary canals proved to be well-spent because those that were earth-lined posed a constant maintenance problem to the project. An additional tidal gate was constructed which was not recommended at appraisal but found to be necessary during implementation to provide satisfactory drainage for both the tree and rice crop area. Problems faced during imple mentation included bad weather, contractual failures, difficult site conditions requiring saoe design modifications and also budgetary constraints. /3 Phases 1 and 2 which were developed by Felcra are located in the rehabilitated padi area. - 9- AgrIcu.tural Development 3.08 The progress of this component had been unimpressive in the early years as the project was bogged down with countless problems such as contract failure, pest damage, low padi yields, delay in land acquisition and drainage problems. Implementation was delayed by I to 2 1/2 years but towards the last two years there was a remarkable turn around as a result of the perseverance and determination of the project management team to make it a success. 3.09 ThtLVv_EadL9eA - At appraisal the new padi area was estimated at 6,400 ha but after final survey was revised downwards to 4,482 ha at reformulation in 1986. The initial land clearing works were undertaken by Felcra through contractors. The whole area was predoainantly jungle and five contracts were let according to the phasing of the area, i.e. Phases 3,4,5,6/7, and 8/9. After land clearance, DrD took over the area to do the design and construction of the tertiary canals and drains before handing it over to Felcra for padi planting. The construction of farm roads and land-levelling, though Felcra's responsibility, was incorporated into DID's contracts for convenience and because the budget allocation was provided by DID. As each phase was completed, DID handed it over each area to Felcra ready for planting. 3.10 The original plan for the agricultural area was to introduce the 3+3 system whereby each settler family would be allocated 1.2 ha (3 ac) of padi to be farmed individually and 1.2 ha of tree crops area to be managed on an estate basis. However, based on the success of its share system or group farming style of operation in its oil palm and rubber schemes, Felcra decided to apply the same concept to the new padi area as well. In line with the changes made, new rice technology such as direct seeding in place of transplanting and large scale mechanised harvesting were adopted. 3.11 The first phase of 146 ha in Phase 4 was handed over in September 1983, 9 months ahead of schedule. The first planting took place in the main season of 1983. A host of initial teething problems were encountered among which were poor drainage, poor land levelling and water management/distribution, insect damage and low soil pH. Only 124 ha were planted and the yield achieved was half of the appraisal estimate, 0.74 mt per ha compared with the targetted 1.5 mt per ha. As a result of the poor performance, the World Bank supervision mission in 1984 stressed the need for recruitment of expertise and training of field staff to improve management standards, ensure the timely hiring of contractors and facilitate close adherence to the cropping schedule to ensure successful operation, as the production of padi on an estate basis was a highly specialised activity. 10 - 3.12 By 1985 all contracts for padi land development works had been let and a total of 1,602 ha made available for planting. As of December 31, 1988, a further 2,242 ha had been made available for planting, bringing the total plantable padi area to 3,844 ha. This represented 85.7% of the reformulated target of 4,482 ha. Tht balance of 638 hectares were handed over by DID before the start of the 1989 main season. 3.13 In October 1985 the Bank recomended the conversion of the remaining new padi area (which had not been planted) to oil palm in view of the fact that padi eoa not economically viable. However, this recoceendation was rejected because the Trans-Perak area had been gazetted by the government as a rice granary area. It was also a time when the rice self-sufficiency target had been reduced t'rom 85% to 55* and. nil other now-grunary irrigsit-d amrens were being considered for possible conversion to other worn economically viable crops. 3.14 Rehabilitated Padi A a - At appraisal, about :i,700 ha of existing rice land in Blocks A,B,C and D in the Left Branch Canal (LBC) area were earuried for improvement, including relevelling of about 1000 ha (FeLcra managed Phases I and 2), improvemt/rehabilitation of the irrigation system and upgrading of farm roads. Rehabilitation works on the area were to have started in 1982/83 but were delayed due to land acquisition problems, austerity easures introduced by the government in 19W3 md the emergence in Block A of a group eL.rauraging farmers in the area to participate in large scale padi cultivation tmder the management of a conultancy firm. 3.15 Despite several dialogue sessions, the farmers could not be persuaded to join Felera and bence in '*,tember 1984 it was decided to exclude the rehabilitation of tns area from the project. However, improvements to the drastvge and irrigation infrastructure were included under the project and it was not: until after l988 that reconstruction wd,ris began. TwO tenderswere called, one for 3lock A and the othez for Blocks B, c and 0. The contract for Slock A wa completed ilt November L987 and that for Blocks B, C and 0 was completed in July 1988. 3.16 Tree._Cr2y_,Pgv9lo" - The total land area estimated at appraisal was 8,400 ha but was subsequently revised downwards to 7,585 ha at reformliation comprising 6,464 ha of oil palm dmnd 1,121 ha of cocoa. The land which was originally jungle was to be cleared for oil palm and cocoa. 3.17 Felling and clering works had actually startedt aw early aS 1079 in Phases 10 and lOA, before prp.ject formulution, but expenditures incurred from October 1980 onwards could be reimbursed as the loan provided for retroactive financing from that date. Land clearing works for the other phases took place - 11 - in 1981 (Phase 14), 1983 (Phases 109, lOC, 13 and 15) and 1986 (Pht... 11 and 12). The reason for the delay in the developuent of Phaoes 11 and 12 was that the original aEea was taken over by the State Government for a banana project covering about 200 ha in whose manageament Felcra wa involved and as a result an alternative area had to be found. Another reason was that soe area involved alienated land and since the farm owners wished to develop the land theselves, these areas were left out. 3.18 Planting of oil palm comenced in 1981 and by the end of 1989, a total of 7,110 ha had been cieared of which 6,979 hu had been planted and 5,000 ha brought into production. Remaining plantings will be in 1990. In terms of achievement, the oil palm hectarage is lOX higher than the reformulation estimate. 3.19 Palm Losses had been quite high in tbe initial years largely because of contractual failures, water logging and dumage by wild animals. In the early years, wild boar damage was particularly rampant in Phases 10, IOA and l4, while phases 1i and 15 encountered contractual and drainage problem as well as wild elephants damage. As a result, a high level of seedlings supply had to be carried out and was the cause of uneven stands, particularly in Pases 10 and 14. 3.20 Planting of cocoa started in 1981 and by end 1989, a total of 996 ha had been planted. Another 112 ha will be planted In 1990 bringing the total planted area to 1,108 ha, slighlly below the reformulation estimate of 1,121 ha. Clonal planting mterials and selected hybrids were used solely in the last two years. Sae cocoa established earlier were budded with improved clones to ensure high yield potential. By end 1989, about 186 ha of cocoa had come into production. Annex 4 shows the area cleared, planted and in production for each crop compared against appraisal and reformulation targets. rtojeŁt Main Ri8 3.21 About 53km of main roads were to have been built by the PWD within the proJect area, of which 27km were to be metalled. The main or access roads were tendered in two packages called Access Road Phase I involving 17.6 km and Access Road Phase II involving 34.3km, making up a total of 52 km, one km short of theappraisal target. Only Access Road I was metalled during the project period. A subsequent revision in 1987 included the financing of the construction and metalling of Access Road 11[, a 9 km stretch of road in the township area formerly classitied :s village road. However, metalling could not be done during the project period and so financing was included in the F#!Icrn Il Project (Loan No. 2917 - MA). - 12 - 3.22 AccesapRod I - Coamencement of design for the project *ain roads was targetted for mid 1980 with coopletionA of coistruction at end 1984. Survey works for Access Road I started in mid-1981, one year behind schedule. The actual design was done departmentally and was completed in mid-1983. Construction coouenced in September 1983 and was to have been completed on Decenber 27, 1984 but the contractor was given an extension of time end the works were eventually completed on March 27, 1985. 3.23 During a site visit to the area, the Bank supervision mission was dissatisfied with the poor standard of construction caused by lack of supervision and the contractor not adhering to the work specifications. There was also a spell of unusually bad weather at one point which resulted in delay in construction. Consequently, the Bank mission rocoonended suspension of disbursem_nt until the situation was rectified. PWD subsequently took the necessary action to ensure adequate supervision, rectified the situation to the Bank's satisfaction and disbursement was finally resumed. 3.24 csJRosdJ I - Design for this road and four concrete bridges started in late 1982 and was completed in October 1984. Construction work started On March 18, 1985 and war to have been completed in March 1987 but was eventually completed 13 monts later in April 1988. The delay was mainly due to contractual problem. At project completion, this laterite - finished road wm in a satisfactory state after final greding and shoulder shaping had been cowpleted. 3.25 Access Hje-III - Initially, Access Road III was not financed under the project as it formed part of village infrastructure. But during the June 1988 supervision mission, it was agreed that the road shoula be considered a true access road as it was the link road between the Sungai Dedap village along the new township at Changkat Lada and the already metalled Access Road I. The Bank agreed to finance the construction and metalling of the 9 km long access road. However, at loan closing only the construction cost WaS disbursed. Metalling w still to be done when the loan was fully disbursed. Annex 5 shows the length of access roads completed compared against appraisal. Welt Coast Hi ion 3.26 The West Coast Highway section stretches from the newly constructed Perak River Bridge near Teluk Intan along the southern perimeter of the project area to Kampung Kayan. The work was well executed by a capable contractor and construction supervision was satisfactory. It was scheduled for completion in mid 1985 but was completed in February 1986. The original length of the highway section was to be 27 km but the final length was 24.3 km, shorter by 10. - 13 - 3.27 The West Coast Highway section was built across very soft coastal swamp and through virgin jungle. Some of the problem encountered included land subsidence and riny season causing delay in project work, and changes in design and construction method. 3.28 The highway is important in that it serves an a major link between the Trans-Perak area and the surrounding towns aaid significantly shortens the route from Kuala Lumpur to Lumut ijy about 100 km. A new bridge (not financed under the project) over the Perak River was constructed which connects the West Coast Highway section with the major road in Peninsular Malaysia. Acceos to the project area is now more convenient following the couple.ion of the bridge. Settler Houses 3.29 Following the reduction in the number of settler families expected to be emplaced in the project area (para 2.10), the number of settler houses was also scaled down as well. The first 350 units were completed in September 1983 and the first 300 participants were emplaced in January 1985. 3.30 Originally the construction of settler houses was to be in three packages following ICB procedures but Felcra requested and the Bank approved in November 1985 tendering in five packages using LCB procedures since experience bad shown that tenders of low cost single-storey timber buildings usually failed to attract international bidders and that local bidders were competitive and local materials easily available. 3.31 A total of seven LCB contracts covering 2,510 units were let but two contracts involving 600 units failed and were terminated when the contractor failed to coaence work. One contract involving 600 units was partially completed. Another contract was reduced from 300 to 180 units. The final actual number constructed at project completion was 1,434 units (Annex 6) of which 1,290 were actually completed and 144 units partially completed. Details of the contracts are shown in Table 1. Proect uildings 3.32 DID constructed its office complex and staff quarters in 1982. A three storey office complex for the project management conmenced construction in February 1987 and was completed in October 1988. A total of 174 units of staff quarters was also constructed and completed in June 1987. Other buildings and facilities provided during the project period included a padi store, two chemical stores, garages and workshop for the vehicle pool, kindergarten, community hall, children's playground, football field and a cooperative store. Details are at Annex 7. - 14 - TA_BLE 1: CONUCTIQN OE-_SETTLER HOUSES Contract Date of No of Actual No. Progress of Work Package Completion Units Construe- -- ___ggracted __t-1 - I 1983 350 350 Completed and occupied sinceJanuar 1985 2 1987 360 380 Completed on March 5, 1987 3 - 600 244 Contract terminated on December 8, 1988. 100 units completed and 144 units partially completed 4 - 300 - Contract terminated due to failure of contractor to camenc work. a 1988 300 300 Completed On July 16,1988. 6 - 300 180 Contract reduced to 180 (180) units only. 7 - 300 - Contract terminated due to contract failure. Total 2,510 1,434 3.33 A palm oil will with an initial capacity of 4W ton ffb/hour wm to have been built in 1986 and a cocoa fermentary/drier with a 5 ton dried beans/day capacity wb. be established by the Federal Agricultural and Marketing Autho.-ity (FAMA) in 1986. Due to implementation delay in oil palm development, ffb production ws also delayed and hence it was decided to delay the construction of the mill during the project period as the fruits produced could be sent to the nearby Nasaruddin mill for processing. The oil palm mill was subsequently included for financing in the Second Felcra Land Development Project (1988-1990). Design work for the mill wa completed and tender was called for civil works in 1989 while tender for proprietory iteam was called in early 1990. - 15 - 3.34 A simple cocoa drier of 2 ton/day capacity was built in 1986 instead of a 5 ton/day drier originally planned. The production of cocoa fell below target and as such did not warrant the construction of a drier of bigger capacity. As for padi milling facilities, no padi mill was set up during the project period but steps are being taken by the appropriate authority to ensure the provision of adequate milling facilities under the Sixth Malaysia Plan (1991-1996). 1SMeunpt _and Vehicles 3.35 At appraisal a whole List of equipment and vehicles was prepared for procurement under the project totalling MS20.20 million. During the course of implementation, upon the advice of the Bank's rice crop specialist, a review was undertaken on ma.jor it m nent for use in the rice area and it was devided to exclude such items as combine harvestors, excavators and transplanters which should be rented/leased or the job contract,ed out rather than purchased outright as the maintenance costs would be too exorbitant for the project to bear. As a result of this change in policy, the vehicle and equipment list was triamed down to include only four-wheel drive vehicles, tractors, trailers, graders, other light utility vehicles, agricultural equipmeAt, tools and implements. This has proven to be a cost-effective decision. Three umits of land-levelling equipment have also been procured to date. Annex B shows the list of vehicles and equipment purchased for the project. Townahin and Settleent Infrastructur 3.36 Although this component form part of the project package, the works carried out in the township including the construction of settlement infrastructure were not financed by the World Bank loan except the construction of settler house. The proposed township and the existing village of Sungai Dedap wa to accoodate 6,900 settler families, about 5,500 in the township and 1,400 io the village. Each settler family was to receive a timber house complete with water supply, electricity, roads, drains and sewage disposal. In addition, three secondary schooLs, seven primary schools, a recreation centre, a health centre, and three clinics were to have been provided. 3.37 Changes in T_ oaiL Plan - The original township plan was designed to accomodate 6,900 settlers, including 1,700 from the RUC areas. At reformulation, rice cultivation was switchtei from the lot system to mechanised padi estate cultivation which meant that much less labour was required Yor the project and with the State Government's decision to accommodate only 4,000 participant families it was therefore decided to scalet (own the township plan to that of a service centre. This caused a delay in carrying out the physical works of other departments in theb service centre. The plan also provided for the construction of a project office complex, schools, health centre, clinics, post - 16 - office, social centre, mosque, shops and a whole range of urban facilities complete with water supply and electricity supply. The average size of each settler housing lot is 0.05 ha, half of that provided for at appraisal. Annex 9 shows the physical performance of settlement infrastructure. 3.38 Villageg oads - Co mencement of design of the village roads was targeted for mid 1980 with completion of construction by end 1985. Actual design, however, started two years later in aid 1982 with co pletion of construction in January 1989. The design for the 19 Im Village Road I started in mid 1982 and was completed in September 1983. The road was tendered by LCB procedures. Construction took place in March 1984 and was completed on schedule in July 1985. The econd package involved Villag- Roads Ila, Ilc and the Changkat Lads Road covering a total nf 52.90 km. The tender was also by LCB procedures with a tender period of two years. Construction coinenced in the last quarter of 1984 and was completed in July 1987, one year behind schedule. The delay was attributed to land acquisition problems arising during the construction stage. The third and final package of the village road was the 55 km Village Road Ilb and the Sg. Dedap road. 3.39 The change in the location and amendment to the township plan to downgrade it to a service centre led to a redesign of the road plan and caused a delay in carrying out the physical works in the village area. As such implementation of the village roads wa also delayed. Moreover, as the area rs very flat, suitable sources of earth for the road -eSankmt construction were limited. The only source available in the area, the Changkat Lads hill, was soon depleted. All materials needed for construction had to be brought in through the Bota Kiri - Telok Sena road which was inadequate to carry the cumulative axle weights of' the material supply traffic. 3.40 The township area was situated on very low-lying land and as no platforming of the area was done, the village roads were higher than the lovel of the houses. In the beginning, the drains constructed were limited in deptlh to avoid slope failure and so as not to encroach upon the designated lot areas. However, with the reduction of the housing lot size and the nbder of housing lots, the PWD was able, as construction proceeded, to incorporate monsoon drains as well as concrete lined drains into the design. This relieved the problem of flooding of the township area. 3.41 Schools - The 6ducation Department was given the responsibility to establish schools in the project area. A temporary pruBary school with 8 classrooms was built and opened for the first term in February 1985 with a total enrolment of 309 pupils. Another primary school consisting of 10 classrooms. was completed in August 1988 to supplement the existing school. - 17 - Construction work on a 16 classroom secondary school at Sungai Dedap was completed and the school opened for enrolment in May 1986. Construction work on two blocks of hostel with dining hall was also completed. 3.42 Hegalth_Centres - A rural health centre was built at Sungsi Dedap and is in service whilst another health centre (Phase I) has just been completed at the new township area. 3.43 Electrici5y SUDPRY - NEB was responsible for the supply of electricity to the township centre and the Sungai Dedap settlement. Tho original schedule had to be revised during reformulation mainly because of a change in the layout and a reduction in area of the new township coupled with the fact that it had to be coordinated with the new schedule of the village road program. This component waJ divided into several phases to enable efficient task execution and to achieve supply target date. 3.44 The construction of a 33 kv line from the existing Iampong Gajah switching station to the new township sub-station was completed in June 1986. The construction of the 33/11 kv main intake at the new township centre was postponed to a later date because of low load demand. Meanwhile the 33/11 kv distribution main intake at Selat Pulau Kg. Gajah was completed in July 1988. The present electricity supply for the Seberang Perak township centre comes from this main intake. 3.45 Water _gWply - The source of water supply for the township is from the Dindings Water Supply sch8me at Kg. Teluk Kepayng. Water is pumped through a 25 km concrete-lined and externally bitumen-wrapped steel pipeline to a reinforced concrete reservoir. The township is supplied by gravity from this reservoir through a 500 - diameter pipeline. All houses and buildings in the township area will be provided with the necessary tappings complete with fittings and stop valves ready for meter connection. 3.46 A total of eight contracts were involved of which five contracts had been completed covering the construction of the storage reservoir, laying the steel mains from the reservoir to the township and laying of reticulation mains. Two other contracts which are in progress involve the laying of steel main from Kg. Teluk Kepayang treatment work to the Changkat Lade reservoir and the supply and installation of pumping plant. As for the last contract, preparation is being made to call tender for the supply of pumping plant. When these two contracts are completed by August 1990, the township will have its own pumping water system from the clear water tank at Kg. Teluk Kepayeng treatment works to the storage reservoir. - l& - 3.47 Settler Intake - A total of 10,404 candidates were interviewed between 1982 and 1984. Of these the first batch of 300 settlers was taken in on January 14, 1985. The second batch of 507 was emplaced in November 1988 bringing the total emplaced to 807. Although the total number of participants has been decided by the Perak State government to be 4,000, for the time being the number to be explaced will be based on the actual number that can be fully employed by the project which has been estimated at reformulation to be about 29000. B. Pr2ject Cost 3.48 Total project costs up to 1989 were M$263.9 million which amounted to 77% of the reformulation estimate and 61* of the appraisal estinste. The annual project costs compared with the reformulation and appraisal estimates are sumarised below:- TABLE 2: ANNUAL PROJECT CQSiTS MILLIONŽ '/ear L981 1982 1983 LM 18 L986 1987 1988 1989 Totga Appraisal 36.9 82.3 102.8 88.3 62.7 40.4 14.5 2.1 - 430.0 Reformulation 3.6 8.3 26.2 49.0 53.0 68.6 67.8 67.7 - 344.2 Actual 9.6 10.9 31.8 32.3 39.5 50.5 32.9 33.7 22.7 263.9 The detailed annual costs for each of the components are shown in Annex 10. 3.49 An analysis of expenditures by components shows that the access roads and the West Coast Highway Section exceeded appraisal estimates by almost. 100*. The cost of settler houses was only 17S of appraisal estimate and 26X of reformulation estimate as only about 35% oi the physical units were constructed. Palm oil mill construction which was estimated to cost MSll.O million at appraisal was postponed. The settlement infrastructure cost wm also greatly reduced because of reduced sized of the township. Vehicle cost was less than 10* of appraisal estimate due to contracting out of major on-far. works like land preparation and harvesting. As for the consultancy and studies cost, the USS2.0 million allocated for consultancy serviLces for the preparation of future projects were not utilised. Due to the highly inflationary situation at appraisal, over-provision was made for price contingency. C. Procurement 3.50 Certain procurement procedures stipulated at appraisal had to be reviewed during implementation in order to ensure the smooth implementation of the project. This primarily involved the construction of settler houses and Access Road 11. - 19 - 3.51 The three packages for settler houses and project buildings were to have been tendered by ICE procedures. In 1985 Fe1era proposed to have this sub-component tendered in five packages using LCB procedures based on the justification that low-cost single storey timber buildings failed to attract international bidders am materials were available locally, the nature of work wsm labour intensive, there was an abundance of competent local contractors nd hence prices tendered by local contractors would be very competitive with those tendered by foreign bidders. Moreover, project buildings could not be packaged together with settler houses as the two types of buildings involved different quality of work and prices tendered would be higher if the two were packaged together. Also, the construction of settler houses depended on the intake of settlers and as such three packages would not be adequate. Based on the above justification, the Bank finally agreed to the tender for the settler houses in five packages and also allowed the settler houses and project buildings to be tendered separately. Seve:n tenders were finally called for the settler houses. 3.52 Access Road $I, which was to be tendered by ICB procedures, comprised two sections, one located in the new padi area and the other in the rehabilitated padi area. PWD had proposed to tender the road by LCW in two packages as delay was expected in land acquisition for the section located in the rehabilitated padi area. The World Bank rejected PWD's request and insisted on ICB procedures using the two envelope system. The road was subsequently tendered in one package by ICB Frocedures. D. Disbursement 3.53 Full disbursement of the loan was achieved on September 15, 1989 when the last disbursement was made. The breakdown by Category of actual loan amount disbursed compared to the original loan amount and the revised loan mount is presented in Table 3. Table 3 - Loan Disbursement _ __ulljQgi Category Original Revised Actual Loan Loan Loan Amount ___Aount Amount _Disbursd_ 1. Vehicles & equipment 9.50 0.71 0.72 2. Civil works other than settlement infrastructure 34.70 27.44 27.25 3. Consultants' services 4.80 2.50 2.68 4. Unallocated 1.0 - - Total loan amount 50.0 30.65 30.65 - 20 - 3.54 Disbursement was slow in the early yeers due mainly to unfamiliarity with Bank's disbursement procedures as well as the restriction of reimbursable items to only contractual expenditures. However, from 1987 onwards, disbursement was greatly speeded up when the use of SOB procedures was approved by the Bank as a considerable amount of land development expenditures consisted of force account expenditures, direct purchases and casual labour wages. E. Institutional Er!r 9Sf 3.55 &E_oJct M 9Dg - The project was originally under the responsibility of the Ministry of Agriculture (MOA) which established a project anagement unit headed by a Project Coordinator to umnage and coordinate the project. On January 1, 1984, when Felera assumed responsibility for the project, it appointed a Project Director to head the Project Office, assisted by three senior officers in charge of agriculture, engineering andadministration. The Project Office was temporarily located in Teluk Intan but later shifted to the new office complex at the now tomnsbip in 1987 when it wa completed. 3.56 A Project Steering Coamittee guided Felcra and the Project *aage_ent on policy matters and a T.chnical/mplementation Comittee, which was headed by the Felcra Director Gineral, guided the project managemeot on the technical plaming and implementation aspects. 3.57 The Project Director held monthly meetings with the implementing agencies to discuss the operational and day-to-day running of the. project. Implementing agencies involved were Felcra, DID and PWD while other participating agencies provided the necessary support services. Chart I shows the organisational structure of the Project. 3.58 Eembop'm of l ti B_D AgenCies - As mentioned earlier, the main implementing agencies were the DID, PWD and FKLCRA. Generally, the DID component performed satisfactorily well. The PWD component for roads was also executed satisfactorily except for contractual problems and poor weather conditions which led to delay in project implementation. The Felcra component, primarily for agricultural development, en-ountered numerous problems in the first half of the project period but the end result was favourable. Relationship and cooperation among the iuplemnting agencies were excellent and on the whole the project was well-coordinated. - 21 - 3.59 P!f9rD5o-gOe- ..f_bTs- - In the early years, relationship between the Bank supervision missions and Felera were not so smooth as miesion ounbers were rather rigid in their supervision and vigorously enforced what was spelt out in the SAR without due considerations for requests made by implementing agencies to review certain conditions to suit changing situations arising from project impleinntation. It was only later after the same supervision personnel were assigned to the project and they became familiar with local culture and working conditions that a smooth and fruitful working relationship was established. In fact, the Bank's senior rice agronosist who had been assigned to supervise the Project since 1983 had contributed significantly to the project, in particular, the rice component. Through his valuable advice and auggestions, Felcra was able to overcome problems related to large scale mechanised rice cultivation. Therefore, for Bank to contribute positively to project performance, it is important to assign supervision personnel who are specialists in the relevant fields and who are familiar with local culture, eavironment and working conditions. 3.60 bnjit-oring-jPA mdogng - Project progrm was monitored by the Project Office and monthly reports were submitted to the Agriculturo Division (later to the Implementation Division) at Read Office. For reporting to the Bank, quarterly progress reports were prepared and forwarded to the Bank witb updated status reports being prepared for each supervision mission. 3.61 Accounts__and Audit - Prior to 1984, the Project accounts were prepared by the Project Coordinator's office under the Ministry of Agriculture. Since then Felcra has been submitting Felcra's audited accounts to the World Bank and in addition, since 1987, separate SOB accounts have been prepared, audited and submitted to the Bank following approval of the use of SOB procedures for small and force account expenditures. F. Co easc e W _ Le oyeants 3.62 Project performance as regards loan covenants is as follows:- CoveBknt Rat-ML0 rks a. Borrower shall employ a suitably qualified and experienced Project Coordinator Complied - 22- b. Establish and maintain a Steering C omittee for the Project composed of the Secretary General of the Ministry of Agriculture and the Ministry of Land and Regional Development, the Perak State Secretary and other officials representing all goverment agencies having Project responsibilities, to guide the Project Coordinator on policy matters related to the Project. Complied c. Furnish to Bank, by December 31, 1981, the criteria for the selection of settlers and the draft agreement Covenant deleted by with the settlers for Bank's review mutual agreement and coment. between Bank and Felcra d. Furnish to Bank, by Decmier 31. 1982 a detailed proposal for the monitoring and evaluation of the Project for Bank's review and commot. Cowplied a furnish by December 31, 1981, a detailed iuplmeintation schodule for the provision of township facilities for the Bank's review and coment. Coaplied f. i) DID to prepare a designer's operations manual covering the works under the Project. Complied ii) DOA to prepare, by 31/12/84, an agricultural services operation manual a guide for field staff and to develop the rice Seed Production Center at Titi Gantong to meet the requirsvent of the Project. Complied - 23 - PROJECT CQMPLEION REPORT WAAYSZ TRANS-PERAK AREA DEVELOPMENT PROJECT (LOAN 1960 -H) PART IV: PROJECT IMPACT 4.01 The project has developed 12,700 ha of new land, comprising 4,482 ha for irrigated padi. 7,110 ha for oil palm and 1.108 ha for cocoa, and provided improvements to the drainage and irrigation infrastructure of 4,000 ha of existing rice lard (Table 4). About 4,000 settler families would be shareholders of the project, 807 of whom have already been emplaced. TABLE4: DEVELME Hectarage Developed At At Actual --- -ehraisL G CRe_ X RehabLlitated Padi Area 3,727 4,370 4,035L4 New Padi Area 5,215 4,482 4,482 Tree Crop Area 8,438 7,585 8,218 Oil Palm 7,223 6,464 7,110 Cocoa 1,215 1,121 1,108 4.02 At full development, the annual production of pedi, oil palm and cocoa would be 73,000, 166,000 and 1,300 at respectively. These provide substantial foreign exchange earnings and savings. Rousing, social amenities and caom ity facilities are provided in the township for the settlers. The settlers' cooperative is already actively engaged in economic aetivities such as participating in works like land preparation, field maintenance and harvesting in the agricultural area. providing services to transport the project's outputs to the processing centres and operating a petrol kiosk as well as a canteen in the project area. Settler dependents, especially the womenfolks are also encouraged to produce native handicrafts for sale. Other income-generating projects run by the settlers include sheep and cattle rearing, orchard farming (starfruit and guavai and noodle making. All these create employment opportunities for the settlers and their depeadents. Apart from economic objective, this settlers' institution has been established for the purpose of ultimately assuminLg the responsibility for project management when the developmont loan has been repaid and Felcra withdraws from the project, in line with Felcra's divestment policy. 4 For purpose of calculating incremental rice production to determine the economic rate of return in Part V, it is assumed that the whole area of 4,370 ha can be fully cultivated by 1994. - 24 - 4.03 The project impact on the development of pedi, oil palm and cocoa is discussed in detail in the following paragraphs. A. Pdij 4.04 flehkjJjta .d_f i Areas - While Felcra has been monaging the sem-si_tatised areas of Phass 1 and 2 located in Block B and part of Block C, the DOA ha been providing agricultural extension services to the individual farmers in the rest of the Left Branch Canal areas. Sinee project oeisencesent until the end of 1989, there have been major changes in far. cultural and agronomic practices such as the introduction of dry ploughing, direct seeding and aechanised harvesting. These changes have helped to improve yields from 2.8 mt/ha to 3.7 mt/ha for the individual farmers in the area and to 4.2 ut/ha in the case of the semi-estatised areas under Felcra. In the future padi yields in the rehabilitated padi areas could be increased to more than 5.0 ut/he subject to the following conditions:- a) Continued application of new rice technology by padi farmers including the use of new and certified padi seeds; b) good water management practices supported by a proper field drainage and irrigation system; c) indepth technical knowledge in controlling pests, diseases and weeds; d) cooperation asong the farmers in the use of water and close adherence to crop planting schedules; e) land planing for every season; f) maximuS utilisation of land; and g) close lia.son with FOA to ensure sufficient and timely supply of agricultural inputs. 4.05 N Padi j4&Mg - Up to 2/87 (wet) seaon yield levels achieved in the new padi area had only been aoderate and had stagnated at about 3.5 at/ha. Problems comonly encountered included pest damage, land subsidence which resulted in poor land levelling, acidity, poor water control and the use of agronoaic practices largely suited to transplanting techniques. However, fru 2/88 (wet) season onwards, performance of padi turned around and, by loan closing in Deceber 1989 average padi yields in thenow padi areas .ncreased substantially when compared to the targeted yield at appraisal and reformulation (4.2 mt/ha). - 25 - The ave age yields increased to 5.5 st/haLo, an increase of 31l over the appraisal target. It is anticipated that with further refinements to agronomic practices and intervention of new technology that the yield potential could be in excess of 6.0 at/ha, especially in the dry season. The following factors have been found to be essential for the achievement of high padi yields:- i) Micro-levelling of far. lots thereby facilitating good water depth control; ii) improvements to field hygiene and effective control of rodents; iii) ixprovements to weed control with chemicals augmenting agronomic measures; iv) implementation of the "semakan padi" or rice-check technique to achieve agronomic objectives which will ensure high yields; and v) improvements to methods of seeding, seed-rate, seed-germination and manuring. 4.06 Micro-Le_ellinz - Although initial macro-levelling specified tolerance of + 5 co difference in level, in reality, subsidence of filled areas after application of irrigation water resulted in differences in water depth far in excess of 10 co. Micro-levelling had to be carried out at farm lot level to bring the tolerance level to ± 5 co. This greatly improved seedling establishment and also weed control. 4.07 Field__ygie_e _and__dent Control - Excss spoils and oversized bunds were trimed while weeds along bunds, reserves and boundaries were sprayed out. Keeping bunds, reserve lands and roads to their mini-mU width denied rats breeding grounds while keeping such areas weed-free ensured that they do not provide a santuary for rat movements or intermediate hosts to pests to tide over the fallow period. 4.08 VgW__ Cl_ trol - Orasses especially Schinochloa and Leptochlos becaee the dainant weeds when direct seeding WaS practised. In addition to effective water depth control, propanil sofit and other herbicides were used to control competition from these grasses. Broad leaves and sedges were easily controlled with 2,4-D Butyl Ester or Londax. ZS The yields mentioned in this para are not based on crop-cutting but on actual weight delivered to LPN mills. - 26 - 4.09 Mo__Check Techn_oue - Under the "semakan-padi" concept, farm managers were required to achieve certain field objectives to ensure target yield was achieved. Beginning one week after sowing, census are carried out periodically to check and ensure that targeted numbers of seedlings, tillers and panicles are achieved. Final yields achievable could now be accurately predicted right after seedling establishment. 4.10 Tbh_e_Use Mttorised Mist Blowers for _Sowing. frtilizing &_ heical - Comencing from seaJon 2/83 (wet) dry-sowing with the "sekinchan seeder" was practised until season l/EAS (dry) when hand-sowing of pe-germinated seeds into water was practised. However, beginning season 1/87 (dry) wet-sowing of pre-germinated seeds were carried out using motorised mist-blowers which greatly improved uniformity of seedling establishment. The mist-blowers were also being used for fertilizer and chemical applications which greatly improved evenness of distribution as well as coverage. With improvements made to farm-level and agronomic practices, yields in excess of 6 mt/ha for the coming seaso, could be expected. The use of the motorised mist-blower has proven its effectiveness in not only improving yields but also has resulted in considerable savings in labour requirement by about 8 mandays per ha per season (See Annex 16 Table 1), equivalent to a cost saving of about M$100/ha/season. 4.11 CrgXScjeduig - Another significant achievement made by the project management had been the close adherence to cropping schedules which had enabled two crops to be planted consistently every year beginning 1986. In addition, 200% cropping intensity was also consistently achieved. The single factor which had enabled close adherence to crop schedule was the farming-out of works such as land preparation, harvesting and land-levelling to private contractors instead of carrying out such works departmentally. As most of the padi planting activities need to be completed in a very short and also time requiring large nuabers of machinery at any one tim, farming out such works to private contractors proved wise and enabled management and staff to concentrate on other crucial activities. Another important decision made was to abandon the season 2/85 (wet) cultivation when it was realised that by October 1985 the crop would be off-schedule. In fact, only one crop had been planted for 1983 and 1984. By abandoning the 2/85 crop, it was possible to consolidate and start the 1/86 (dry) season on a proper cropping schedule which eventually made double-cropping possible frac 1986 onwards. - 27 _ 4.12 qroppingA...Jngptr - Although targeted cropping intensity was 180% to allow for I0O of the land to remain fallow or for relevelling every season, it was found that if relevelling and any fam improvements were done ie_ediately following harvesting, and advantage was taken of the dry period prevailing, 100% of plantable areas could be cropped every season. Seberang Perak is fortunate to have two short but distinct dry periods of January/February and July/August which enable harvesting and land preparation to be critically acheduled to fall into these dry periods. This makes possible the planting of two crops a year. 4.13 TgQ &logical _.IBQg_ya * - In line with Felcra's estatised type of padi operation, the following innovations which were suited to direct seeding technique were introduced, namely:- i) Seed-rite - To ensure adequate plant stand, between 80-100 kg/ha of seeds are currently being used compared to the recomended 40-60 kg/ha. Under the Trans-Perak conditions, it was found that at least 80 kg/ha of seeds are needed for broadcasting so as to ensure the successful establishment of a minimu, of 200 seedlings/mZ one week after sowing. Frm these 500-800 tillers/i2 should be achieved and eventually at least 400 panicles/=2 to be expected and yielding 6-8 mt/ha. Another important consideration was the use of fresh seeds for each season so that only vigorous seedlings with high genetic potential would be grown to achieve high yields. Towards this end, Felcra has set up its own seed-farn to supply its own seed requirement. lii Fertilizer Rate - As the subsidised fertilizers (198 kg of- NPK + 40 kg urea) are insufficient to ensure vigorous plant growth, the application of supplementary urea of between 50-100 kg/ha was found to be necessary based on technical requirements. iii) MechuniLsatiog - Padi cultivation in Seberang Perak hcs largely been mechanised or machine-aided. For example, land preparation is now done with tractor-rotary tillers, land levelling with back-bucket pushers and, more recently, with land planers while harvesting is carried out with large combines. Even seed sowing, broadcasting of fertilisers and spraying of pesticides utilise the same motorised mist-blowers. Mechanisation has helped to increase productivity and reduce labour requirement. Seed Production 4.14 At appraisal DOA was made responsible for the supply of padi seeds to the Project and has been supplying seeds from the Titi Gantong seed station. However, due to increased usage of seeds (para 4.13) the station can only supply 40% of the - as - project's seed requirement and the rest of the supply comes from the Crop Production Branch in Teluk Chengai (Kedah) and Bumbong Lima (Penang). To ensure adequate and uninterrupted seed supply of the right type and quality, another seed station was established at Sungai Dedap by Feicra to supplement DOA's supply. At full production, total seed requirement for the project is estimated at 800 at/ha per season. Meanwhile, about 7?0 of the farmers in the rehabilitated padi areas are using certified seeds produced by DOA. fgts and Diseesm 4.15 For the estate operations, DOA has also assisted in crop protection, i.e pest surveillance. The padi area had been attacked by diseases and pests such as the brown plant hopper, white-backed plant hopper, and leaf cutter, and there had been rodent attackz every season. These pest occurrences have decreased since the implee ntation of an integrated pest manogement and pest surveillance/forecasting programme by the plant protection unit of the DOA. Monthly meetings are held with DOA and MURDI to assess the pest situation, and to enable MARDI to present its survey and research findings. 4.16 In the early days at the planting stages of the tree crop area, wild boars and elephants posed a serious threat to the oil pals seedlings. As a result, crop protection brigades were formed, electric fencing was put up and the Wild Life Department's help sought to drive away the elephants. A considerable am was expended by Felcra and other concerned agencies to relocate the elephants to the National Park. As a result of the heavy damage, seedling supplies were very high which partly contributed to the high cost of land development, and difference in the age of the palm. WatgrMr_ e ent 4.17 lrrigation water is apportioned using the constant head orifice (C.H.O.) and the field offtake (F.O.) control boxes. The quantity of water entering the individual fields can be adjusted using the butterfly flaps of the F.O's. To accommodate the use of modern farm equipment on the padi fields, three ma,jor changes were made which differed from that recoamended in the DID Designer's Manual:- a) the duration for peak water supply has been increased from 7 days to 11 days; b) there is no staggering in the tertiary blocks: - 29 - C) presaturation of 25-50 - of standing water is found to be sufficient for padi planting due to better land levelling. Originally, the water duty provided at pre-saturation was 5.60 I/s/ha but following the changes in agricultural practices, it can now be reduced to 3.85 I/s/ha. 4.18 The depth of water in the field is controlled by the drainage outlet boxes (D.O) and, more importantly, for adjacent fields of different levels, through the strengthening of the dividing bunds. With the purchase of land-levelling equip nt, micro-levellings were carried out and these resulted in a more uniform water-depth and plant growth. Where it was possibles the 1.2 ha fields were combined into 2.4 ha fields to facilitate machinery manoeuvering. 4.19 Field drains were dug along the field bunds to facilitate the distribution of water into the field and for rapid removal of surface water. One month after drainage, fields would be dry enough to accoodate harvesters and hence there would be less damge to the field surface. With experience, the field staff should be able to manage the use of irrigation water more efficiently. Ope,.a9 .±_ain__tenance 4.20 As originally planned, the Perak State DID is responsible for the operation and maintenance of the main and secondary canals and drains and the flood embankment. However, the main drain in Phase 12 of the tree crop area has been handed over to Felcra for operation and maintenance. The tertiary drains and canals as well as farm roads are the responsibility of Felcra and their operation and maintenance are treated as part of land development/crop production costs. The PWD is responsible for the maintenance of the West Coast Highway Section, the project main roads and the village roads. An annual sum of MS1,500 per km is required for the periodic maintenance of gre.0el roads while MS15,000 is required for the maintenance of metalled roads. The maintenance of the township roads and drains is the responsibility of the PWD. However, as no local administrative machinery has been established and while waiting for the enactment of local by-laws and legislations to enable the various state agencies to play their respective roles, for the time being Felcra is carrying out the operation and maintenance of the service centre. Padi Production 4.21 Rehabilitated Padi Areas - Individual farmers in the Left Branch Canal area have benefitted from the improvements done by DID to the drainage and irrigation facilities in the area. - 30 - During the 1/89 (dry) season, a total of 3.515 ba were planted while in the 2/89 (wet) sesoon another 205 ha which were managed by Felora were brought into cultivation bringing the total area in production for 1989 to 7,235 ha (for 2 seasons). This is 92% of the reforsulation target of 7,870 ha and 78t of the appraisal target of 9,300 ha. 4.22 Total production attained for the two seaons amounted to 24,255 at, representing en achievement of 75* of the reformulation target of 32,180 at and 65* of the appraisal target of 37,100 at. The shortfall in cropped hectarage _ due to abandonment of part of Block A e a result of the failure of a consulting company engaged by the Block A farmers' cooperative to operate the area. The average yield attained in the 1/89 (dry) season wa 3.36 mt/ha. Compared to the appraisal and reformulation target of 4.2 mt/ha, this represents an 80t achievement. For the 2/89 (wet) season the average yield obtained was slightly lower at 3.34 ut/ha which is 12$ lower than the appraisal target of 3.8 mt/ha. However, the highest yield attained by individual farmers in the area was 3.7 mt/ha in Block C during the 2/89 (wet) season. Meawhile farmers in Folera-anaged Phaoe 2 recorded 4.2 mt/ha during the 1/89 (dry) seon. 4.23 The actual production and yield attained in comparison to the appraisal and reformulation targets are sumarised in Table 5 while the detailed production and yield attained by each block for the last two seasons are shown in Annex 12 Table 1. The increase in yield and production were made possible by the improvements made to the drainage and irrigation infrastructure, use of farm mechanisation for land preparation, sowing and harvesting, better water management, and the use of high yielding seed varieties. 4.24 New -adi Areas - Initial yield increase were encouraging but had stagnated at about 3.0 - 3.5 mt/ha up to 1/88 (dry) season. Perfor hance however, turned around fro, the 2/88 (wet) soaon onwards. During the 1/89 (dry) season, the averge yield attained was 5.37 at/ha with a total production of 20,594 at. This compares favourably with the appraisal estimate of 4.2 at/ha and 19,700 at. production representing an achieveoment of 128S and 104.5S respectively. The slight improvement in production despite the much higher increase in yield was attributed to a lower planted area of 3838 ha comparedwith the appraisal estimate of 4,700 ha. Although the total area handed over by DID was 4482 ha, the plantable area at present is 4,353 ha a there are still some areas that are too low lying and cannot be cultivated. It is not impossible to anticipate that - 31 - TABLE 5: PADI CROPPED AREA, YIELDS AND PRODUCTION Cropped Area (ha) Yield lIt/ha) Production (ot) ApPraisal Reforeu- Actual Appraisal Refornu- Actual Appraisal Reform- Acnal lation at PCR lation at PCR latin at PCI ---------~~~~~~~~~~~~~~~~ ----- ------- --------.. -- ........ ....... ............. .......... Left Branch Canal System (Individual) Wet season 4,900 4,370 3,720 3.8 4.0 3.34 18,600 17,480 12,443 Dry season 4,400 3,500 3,515 4.2 4.2 3.36 18,500 14,700 11,812 Sub-total 9,300 7,870 7,235 37,100 32,180 24,255 .... ---- ....... _.. Cropping Intensity (1) 190 180 Right Branch Canal Systee (Estate) get season 5,200 3,505 4,353 3.8 4.2 4.75 /a 19,800 15,000 20,695 Dry season 4,700 3,585 3,838 4.2 4.2 5.37 /a 19,700 15,000 20,5O Sub-total 9,900 7,170 8,191 39,500 30,000 41,289 Cropping Intensity (1) 190 160 200 /b TOTAL 19,200 15,040 15,426 76,600 62,180 65,544 /a These are actual wet yields in 1989. The dry yield equivalent is 3.7 at/ha for the wet season and 4.1 it/ha for the dry season as shou in Annex 12 Table 3. /b Vet season area is larger than dry season area due to nev area being included under the wet season. Cropped - 32 - with further improvement made to the drainage, the whole area could be cultivated at some future dateL§. 4.25 The 2/89 (wet) seacon average yieid was 4.75 at/ha with a total padi production of 20,695 Ut. The area planted increased to 4353 ha with a cropping intensity of 200*, 10 percentage points higher than the appraisal projection of 190* and 40 percentage points higher than the reformulation projection of 160*. The changes in cropping area, yields and production are sumwarised in Table 5 while the gross production and average yield for each season since 1983 are presented in Annex 12 Table 2. The projected yield profile baed on dry weight is shown in Annex 12 Table 3. Annex 12 Table 4 and 5 show the actual (1983-1989) and estimated (1990-2010) production based on dry weight of the new podi areas and the incremental production of the rehabilitated padi area from 1983 until the year 2010. B. Oil Pals 4.26 Details of annual oil palm plantings, production and yields are presented in Annex 13 Table 1 and are sUmarzsed in Table 6. 4.27 The actual performance of oil palm production froa 1983 to 1968 fell short of appraisal estimates due to poor initial development caused mainly by severe pest damage and flooding leaing to a high degree of supplying. Sal Production Yewr Area Total FFm Average Yield Production (mt/ha) Appraisal (1983) 680 3,300 4.9 Actual (1984) 166 466 2.8 8 Appraisal 6,450 94,200 14.6 Actual 3,176 16,000 5.0 Appraisal (1992) 7,220 158,000 21.5 Projected (1997) 7,110 166,000 23.3 goo0 Appraisal 7,220 131,400 18.7 Projected 7,110 158,000 22.2 L For purpose of economic analysis in Part V, it is assumed that the whole area of 4,482 ha will be brought under cultivation by 1994. - 33 Despite the poor performance in the early years, the yield profile adopted for the economic auaiysis of the oil palm component (see Annx 13 Table 2) has a higher peak compared with the appraisal estimate because individual block's performanco in the area has demonstrated that the area is capable of achieving a higher yield than that projected at appraisal. In fact, the average yield by year 6 of production had shot up to 21.3 at/ha compared to the appraisal estimate of 19 at/ha. Furthermore, a report prepared by a private consultant on the area stated that at peak production, the yield could easily exceed 25 at/ha. Annex 13 Table 2 shows the actual yield profile from Year I to Year 6 by year of harvest and the projected yield profile. AnAual oil palm production is expected to peak at 170,000 at ot flb in l199 compared with the appraisal estimate of 156,000 at in 1992 as indicated in Table 6. From then on Lt will decline gradually due to aging of palms. The 30 ton ftb/hour palm oil mill about to commence construction will be adequate to serve the entire production from the oil palm estate and the capacity can be extended to 60 tons ffb/hour when the need arises. C. Cgoeo 4.28 Cocoa planting began in 1981 with 48 ha. and by the end of 1989 about 190 ha had been established. Shade trees (Oliricidia) have been established in all cocoa areas. By 1992 the total cocoa area planted will be 1,108 ha instead of 1210 ha projected at appraisal. Some of the established cocoa ho been oe- udded with improved clones to ensure high yield potential while the new area. are being planted with selected hybrid and laonal cocoa. 4.29 Harvesting began in 1984 with a total production of 7 at and, at the end of 1989, 186 ha bad coma into production producing 107 at. Full production will be reached as projected in 1992 but production is expected to be only 522 mt, well below the appraisal projection of 1,330 at because of the smller area and late planting of cocoa. Peak production will be achieved in 1999 with 1,380 at and a yield of 1.28 mt/ha. A 2 mt/day dried beens cocoa drier has been built in the project area to dry the cocoa beans. The dried beans are sold in batches by open tender to ensure that the beet prices are offered to Felcra. Annex 14 Table I and 2 shows the cocoa production and yield profile uasei for projection. - 35 - PROJRCT, COTI0MN UL nmLMflQIII TRANS-PERAR MAR DEVELOPMDCNT PROJECT (LOAN- 1960-lEA) PART Vs FIC AN D CONCIC anSS 5.01 The derivation of rice, palo oil and cocoa price ar presented in Annex 15. The projected finacial ex-will price for pals oil, palm kernel and cocoa are bed oan the Beak's Januay 1990 cmindty price forecats in contat 198 dollars,, djuuted to 1989 ctant dollars using the Banks Man aturing Uuit Valu' (WV) Index. enrally, thme price ar mac lower tha tiht projected at apprail and at rafofdlation. Ti ecnomic price of ach crop wc derived by ajust g for tae, dutie ad subsidies ag well as applying conversion factor. (as shsm in Ane 15 Table 4) on the finacial barn stimtes. As for the prics for r2ce and cocoa, they wewe deived with a 10l discout for grade differential. A gilling ratio of 65* assumed for rice and the finacial price oa basd on the local Goveammt controlled price which averaged $496 per at plus a price subsidy of $165 per at. 5.02 For purpose of e ic alysi, the cats for draine, irrigation and lad delopment cotract hae been speifically allocated to the n peadi, rehabilitated Vadi ad tree crops. Costs for acco roa, building, equipmt ad vehicles, coaultancy for roads. ad adeinistration ad eingerirg wer allocated to each crop based a planted e and/or frequncy of usage a follom:- Costs Padi oil cocoa Soial __ - _ (M M(S) (S) (*) a. Acces Roo 25 21 4 50 b. Access Road II 100 - - - c. Equipment and Vehicle SO 42 8 - (For padi related vehicles and equipment, all allocated to padi). d. Buildis 50 42 8 - e. Administration ad Enginering 50 42 8 - f. Consultancy As in Acces Roads I and II for cots related to thm. - 36 - Conversion factors were also applied on capital costs, production costs (see Annex 16), operation and maintenance costs, and for actual costs incurred fr,o 1981 to 1988, these were inflated to 1989 constant terms by using the Consumer Price Index as indicated in Annex 15 Table 5. In arriving at the economic rate of return for the agricultural component (Annec 18), the costs and benefits of all the three crops were included. Both new and rehabilitatedj padi were included in the economic analysis and a for rehabilitated padi, only incrmmental costs and benefits were taken into cons ideration. 5.03 As Felcra's land development and production accounts are kept by scheme or phase and not by crop, the actual development costs for the tree crops have been allocated at 80S for oil palm and 202 for cocoa. Development cost for new radi was directly traceable. Costs for drainage and irrigation maintenance and other DID expenses were estimated at S1.0 million per annum. Felcra costs for administration and maintenance were based on $2.00 million per annum. Maintenance costs for vehicles and equipment directly attributed to agricultural operations were not allocated as it was assumed that these costs were accounted for by the rentals charged to the development and operational costs of each phase as and when they were being used. The rentals credited to the Vehicle Pool Systm are used to finance the pool's expenses such as drivers' salaries, vehicle maintenance and replacement. Faru level crop benefits and costs were calculated based On the whole project. The estimated crop production cost per hectare for each crop is presented in Annex 16. 5.04 In Annex 16 Table 1. the rehabilitated padi crop production budget for the 'With Project' cost is lower than the 'Without Project' cost due mainly to the tremendous savings in labour cost as a result of changing technology and increased mechanisation such as the use of the motorised mist blower for direct seeding, fertiliser and chemical application and the increased usage of chemicals replacing manual labour for weeding and bund maintenance. Labour savings in water management is the result of increased canal density which allows water to be tapped directly from the canal whereas in the past water had to flow from one plot to another. With direct seeding, the fields need not be flooded right from land preparation but instead water is let into the fields progressively in accordance with plant height. S. Settlers' Incomes 5.05 Settlers derive incomes mainly from two sources, namely, wages from working on the project and dividends from the surplus derived from the sale of project outputs net of all costs. Additional family income will be in the form of participation in economic projects such as sale of handicrafts, milk from dairy farming (feedlot), sheep, fruits and vegetables raised in the houselots or poul*ry rearing in the backyard (See para 4.02). - 37- The average annual wages received by the settlers since 1988 and tle advance paymnts made to the during festive seasons are show in Table 7. However, the advances were debited to the Profit and Loss Accoumts and treated as an expense. (MOS) 1W 1W L~987 1988 W Annual Wages 3,576 4,213 6,154 5,220 5,618 Advanes - 300 568 300 600 Total 3,576 4,513 5,722 5,520 6,218 Average Monthly Income Per Settler 298 376 476 460 518 (351) (430) (435) (468) (Figu"es in parenthese exclude advances) 5.06 For the derivation of settlers' annual incomes, the financial cash flow for all the phas_s aggregated together is presented in Annex 17. For the purpose of calculating income from wages, it is assumed that about 2,000 ettlers, the maximu number required to work on the agricultural area, derive wages from the project but the dividends are distributed to all 4,000 participants. The proJect will be able to distribute its first mual dividend to the settler from an estimated surplus of $2.93 million in 1991. It is assumed that any surplus msde after all deductions, including loan repayment and accumulated losses, will be distributed as dividends. At full development after 1994, the total schem income from Iabour would exceed MS8.0 million or an average of' MS4.280 per settler per year. (Based on about 300 mondays per settler per annum and a daily wage rate of $12). bnnual income per settler after loan repayment and after all goveroment charges are calculated at about $5,618 in 1989 increasing to a maximum of $10,094 in 1998 and then stabilising at about $9,500. Total settler income from both wages and the shareholding will therefore exceed the poverty line income of N$4,200 per annum. C. Eon pic_,Rte_of_etup 5.07 At appraisal the economic rate of return (ERR), for the agriculture component was estimated at 18t while at reformulation in 1985 the ERM was revised to 9*. A recalculation of the ERR in 1989 constant terms with revised estimates of yields for padi and oil pali shows that the ERR is now 10*. The Net Present Value (NPV) discounted at 10 is MS2.4 million. - 38 - The ERR for the agriculture compoet is calculated from the economic costs and benefit flows presented in Annex 18 while the result and the ERR by crot compared with appraisal and refomulation estimates are suarised in Table 8 below. 1980 Appraisal Apprai- Reformu- At Comodity Price gal lotion PCR Projections Adjusted -- -- ~to_Constant Termn At Reform- At Agriculture 18 9 10 19 31 Rice 20 7 6 23 36 Oil Palm 18 n.a 13 n.e 28 Cocoa 12 noa 4 n.a 13 Tree Crop 17 10 12 15 26 5.08 Using the 1980 appraisal comodity price projections adjusted to 1989 constant term yield a such higher VS of 31X. This show that the comparatively lower ERR at loan completion is due to the lower world comodity prices. The other resons for the lower rate of return are due to project implemetation delays as reflected in the long strem of negative cash flow and higher. cost of devlopmnt. 5.09 The MRR for. the Wet Coast Highway could not be calculated as no traffic counts survey has been carried out to determine the benefits of the Highway. However, from visual observations end interview with K1D and Project Office staff, it was obvious that the construction of the Highway and the new bridge in the project area waS a boon to the economic and social development of the project area, surrounding townships and rural areas. D. gt acove 5.10 Government capital outlays for the project total $263.9 million. The land development costs for the new padi and tree crop areas totalling MS75.7 million would be recovered from repayment by settlers over 16 years after 10 years of grace period. The interest charged varies; loan. signed before 1981 were charged at 6 1/2S p.a. and repayable over 9 years after 6 years of grace period in which interest was capitalised. These louis have since been rescheduled and repayment is now over 15 years with interest reduced to 4x p.a. The interest on loans signed from 1981 to 1984 were waived but in 1985 it was reinstated at 4X p.a. - 39 - 5.11 Settlers housing cost for the project which amounts to M$5.6 million is also repayable at 4X p.a. but over 13 years after two years of grace period. A religious tithe, Zakat, is imposed by the State Government at the rate of iO of the gross value of padi production. The total amount expected to be recovered from zakat over the lifespan of the project (from 1981-2010) in constant 1989 terms is about M$45.2 million. At the moment land tax and water charge are not levied on the project but provision has been made in the settlers cash flow in Annex 17 to deduct a nominal charge of $5 per ha per season for the padi area and a land tax (consolidated amual charge or C.A.C.) of $30 per ha per annuM. In fact, for the land tax, provision bhs been msde by Felcra in the settlers loan accounts for payment to the State Government. An estimated MS9.3 million would be recovered from water charge and land tax. - 41 - PROJECT COMPLETION REPORT MALAYSIA TRANS-PERAK AREA DEVELOPMENT PROJECT (LOAN 1960-MA) PART VI: LESSONS LEARNED AND CONCLUSION 6.01 The Implementation of the Trans-Perak Area Developmeot project (in which Felcra began an a component implementing agency and later a lead agency) posed a great challeoge to Felcra. For the first time Felcra was thrust with the responsibility to undertake such a big and complex project involving three crops including a padi component, townuhip development and coordination with other agencies. Up to then the largest single Feicra projects were the youth settlement schemes of about 2,000 bectare in size and manocrop in nature. The experiences dream from the impleaentation of this project and the valuable lmsom learned have given Felcra management and staff more confidence and strength in embarking on new ventures and future challenges. a. ipsLooordinat.ign ad Mnaggnt 6.02 In implementing a deelopmt project that consists of a number of components, it is esetial to appoint a le and strong coordinator to the project to emure smooth project implentation. The sPera project mad little program in the early stages of implementation but after 1984 with the mplacmet of a more technically oriented and experieced anagemt team the project progresd much more soothly md achieved considerable headway in its implementation. To anure effective coordimtion, oter implemeiatig md participating agencie providing the releat support sevice to the project should report to and be _ae directly responsible to the Project Coordinator. The budget allocation of these agencies which are meant for the Project should be provided for and alloca.ted directly to the Project Coordinator's Office end not be placed under the respective agencies' overall budget so as to avoid pussible redirection of these funds to finance other projects, especially in the event of a budget cut faced by these agencies. b. Applicability of Estate System to Pd_Cltsalion 6.03 The Project has proven that the estate style of management so successfully aosociated with tree crops is also applicable to other crops such as padi. In the beginning there were scepticisom from certain quarters an to the workability of the estatised padi system and indeed the project did not perform too well until after the last few years but since then it has proven the critics wrong with the above average padi yields obtained since the 1/89 segson and savings in labour requirement. - 42 - For the successful implementation of large scale mechanised padi estate, the following factors must prevail:- i) Strict adherence to cropping schedules. ii) Land-planing every season. iii) Good and efficient water management. iv) Effective weed, pest and disease control. v) Timely application of the opti us quantity of fertilisers. vi) Efficient and effective control and supervision of field operations and privatising of mechanised farm works to avoid high holding costs caused by idling of machinery and high maintenance costs. c. Technical Training and Exposure to TechnologicalLDSM9lovugnt 6.04 lIplementing agencies should be responsive and receptive to technological developments taking place not only from within the country but also from other countries as well. The exposure given to some of Felcra's technical staff has shanm that the yield perfornce of padi could be greatly enhanced with the adoption of appropriate technology. Learning frow the experiences of others which have a proven track record of succ$ess in a particular area of operation could open the doors to greater opportunities for exc,llent performance. d. Capability of Staff Assigned 19_§BeciaIised_Proiect____ 6.05 The success of a project depends considerably on the experience and capability of the staff assigned to it. For a project of this magnitude and nature where the ground working environment was harsh and hostile, it is imperative that only capable, experienced and well-trained staff with the relevant years of related experience be assigned to the project. Additionally, the staff should be cimmitted and motivated to contribute to project performance. e. Infrastructure Precedes Agriculture Develop ent 6.06 The Trans-Perak 'sxperience has also shown that infrastructure development must precede agriculture development in an area development project. Large scale development of swampy tracts of virgin jungle land must be provided with the basic infrastructure like roads to facilitate ease of access and - 43 - drainage and irrigation facilities, before any form of agriculture development could take place. Otherwise the cost of agricuJtural development would be too costly and render the econoaic rate of return to the project unviable. With agricultural development as an economic base, village developaent could then proceed to enable large scale settlement of new sottlers in the project area. f. §QLfr_offures 6.07 As with Felcra I Project (Loan 2013-MA), SOB procedures were only introduced towards the later part of the project period. If it had been identified at project formulation that small direct payments, force account works and small contracts were a con feature of land development, the use of SOB procedures would have been allowed by the Bank and would have accelerated disbursement right from the start of the project. CONCLUSIQf 6.08 Project objectives of improving incomes and alleviating poverty have been achieved as reflected in the improved incomes obtained by the settlers which were beyond the poverty inca.e level. Psdi yields attained are higher than that projected at appraisal and the project has consistently attained doublecropping of padi since 1986. The project as a whole is economically viable - reflected by its ERR of l0S. In addition the project hes also demonstrated that large scale mechanised rice cultivation managed on an estate basis can be successfully implemented in this country. Apart from economic benefits, the unquantifiable social benefits and spill-over effects from such a development project can also be enormous. All the settlers are gainfully employed on the pro,ject and through the settlers' institution, the cooperative, participate actively in the day-to-day operations of the project. In line with Felcra's divestment policy, they are also being groomed to eventually take over the management of the project. 6.09 The whole area is almost fully planted and the tree crops are growing well and giving good yields. With good effective management the padi crop should be able to continue to improve in yields. Presently, there are no major problem being faced by the project and it is anticipated that the project should be able to sustain itself in the future. - - Awl I TRANS-PERAK At DEVELOPHENT PROJECT PROJECT CONPLETION REPORT ... ........ KEY PERFORNANCE INDICATORS 6oal Achieve ments as Indicator Unit Appraisal Reformulation Actual I of I of 19E1 196 1989 Appraisal Reformulation Target Targpt .............. . . .......... .. . ---- - …------ Nain and secondary canal - imprwoveent km 122 122 34.0 27.9 27.9 - construction ke 79 79 94.0 119.0 119.0 Tertiary canal construction km - - 148.0 0.0 Nain and secondary drains - improvement km 73 73 58 79.5 79.5 - construction km 12 12 192.0 1,600.0 1,600.0 Tertiary canals km - - 135.0 0.0 - Ne Rice ha 5,215 4,482 4,402.0 85.9 100.0 Rehabilitated Rice ha 3,727 4,370 3,720.0 99.8 85.1 Oil Palm ha 7,223 6,464 7,110.0 98.4 110.0 Cocoa ha 1,215 1,121 1,108.0 91.2 90.0 Flood emtnokment km 29 29 29.0 100.0 100.0 Project main roads km 53 60.6 54.6 103.0 90.1 vest Coast Nighuay km 27 24.3 24.3 90.0 100.0 Settler houses No. 6,900 4,000 1,434.0 20.8 35.9 Palo oil mills No. 1 1 - 0.0 0.0 at ffb/hr 40 40 - 0.0 0.0 Coco fermtary No. 1 1 1.0 100.0 100.0 at dried beans/day 5 5 2.0 40.0 40.0 Right Branch Canal Padi yield - #et season mt/ha 3.8 4.2 4.7 (3.7) 123.7 (97.4) 111.9 (. - dry season It/ha 4.2 4.2 5.4 (4.1) 120.6 (97.6) 120.6 ( Cropping intensity Z 190 160 200 105.3 125.0 Left Lranch Canal Padi yield - vet season t/ha 3.8 4.0 3.3 86.8 82.5 - dry season itiha 4.2 4.2 3.4 81.0 81.0 Cropping intensity S 190 180 165 86.0 91.7 N.B: Figures in parenthesis indicates dry veight. LPN deducts 22S for moisture and dirt content. -46 - AMNEX 2 MALAYSiA TRANS-PERAK AREA DEVELOPMENT PROJECT PROJECT COHPLETION REPORT HANO-OVER SCHEDULE FROM DID TO FELCRA HAND-OVER Phase ---------- ------------------------------------------------ DATE DATE (Ha) Area (Ha) Planned Actual Planned Actual Plantable At PCR -------- -- --- ------- ........ ------ ---- ----- KEN RICE AREA 3 500 Feb 85 Feb 85 117 124.8 Apr 85 sep 85 383 370.7 500 495.5 495.5 4 376 Jul 1984 Sep 83 134 134.0 Jul 1984 242 229.0 376 363.0 363.0 5 550 Jul 1984 Jul 1984 289 89.0 Feb 1985 Feb 1985 198 198.0 May 1985 Sep 1985 63 260.0 550 547.0 535.0 6 Ł 7 1,517 Jun 1985 Sep 1985 202 197.0 Apr 1986 Jul 1986 405 333.1 Jul 1986 Jul 1986 405 176.1 Dec 1986 Aug 1986 202 119.2 Jul 1987 Jun 1987 303 697.0 1,517 1,522.4 1,430.5 8 a 9 1,539 Apr 1986 Jun 1987 202 245.2 Jul 1986 Jul 1987 405 412.9 Dec 1986 Feb 1988 100 190.7 Jul 1987 Jul 1988 710 238.0 Dec 1987 Jul 1989 122 467.5 1,539 1,554.3 1,529.0 GRAND TOTAL 4,482 4,482.2 4,353.0 Anne2 - 47- ANEX 3 MALAYSIA TRANS-PERAK AREA DEVELOPMENT PROJECT PROJECT COMPLETION REPORT DRAINAGE AND IRRIGATION - PHYSICAL PERFORMANCE OF WORKS Cumulative Progress Itea Unit Apprai- Existing -------------------------------------------------------- Overall sal Before 1981 1982 1983 1984 1985 1986 1987 1988 1989 Project Target 1981 at PCR A. Irrigation Works Main and secondary canal isprovesent kn 122 65.5 0 0 20.3 24.0 34.0 45.3 55.3 62.4 62.4 127.90 Nev main and secondary canal construction kg 79) Tertiary canal construction kr 125 ) 59.4 0 0 4.0 12.0 41.0 60.9 103.5 123.5 143.1 202.44 Sub-total 326 124.9 0 0 24.3 36 75 106.2 158.8 185.9 205.5 330.34 B. Drainage Works Main and secondary drain improvement km 73) 155.4 0 0 15.6 42.4 66.5 80.0 94.5 94.5 94.5 249.91 Nev main and secondary drain construction km 97) Tertiary drain construction km 200 63.7 0 0 4.0 16.0 40.5 50.5 83.8 111.3 131.3 195.03 Sub-total 370 219.1 0 0 19.6 58.4 107 130.5 178.3 205.8 225.8 444.94 C. Structures Bridges No. 10 0 0 0 3 4 8 9 10 10 10 10 Constant Head Orifice No. n.a 48 0 0 10 30 70 108 168 205 205 253 Drainage End Control No. n.a 37 0 0 10 67 89 161 196 221 221 258 Irrigation End Control No. n.a 10 0 0 2 5 19 27 42 42 42 52 Checks No. n.a 0 0 0 10 18 51 81 118 118 118 118 Tidal Control Gate No. 2 4 0 0 1 1 2 3 3 3 3 7 Control Drop No. n.a 11 0 0 1 5 11 14 15 15 15 26 Field Offtake No. 3,020 0 0 60 181 598 1,083 1,462 2,514 3,141 3,141 ',141 Drainage Outlet No. 2,570 0 0 60 181 659 1,120 1.511 2,477 2,957 2,957 .,957 Guillotine Offtake 1'-0 No. n.a 0 0 0 0 0 1 1 1 1 1 1 Drainage Control No. 40 0 0 0 0 3 8 23 23 23 23 23 Intake/Bifurcation No. n.e 2 0 0 0 0 0 0 0 0 0 0 Sub-total 112 0 120 399 1,390 2,462 3,400 5,567 6,736 6,736 6,846 D. Fare Roads Secondary farm roads km - 6.5 0 0 10.0 20.0 30.0 53.5 96.8 104.7 104.7 111.2 Tertiary fare roads ke - 17.9 0 0 20.0 69.1 105.9 202.3 255.6 322.8 324.0 341.9 Sub-total 24.4 0 0 30 89.1 135.9 255.8 352.4 427.46 428.67 453.1 E. Flood Protection Bund kg 29 27.0 27.0 29.0 29.0 29.0 29.0 29.0 29.0 29.0 29.0 Annei3 - 48 - AMUE 4 NALAYSIA TRANS-PERAK AREA DEVELOPMENT PROJECT PROJECT COMPLETION REPORT AREA CLEARED, PLANTED AND IN PRODUCTION AS AT 31/12/89 (Hectares) Area Area Area In Phase Appraisal Reforoulation Cleared Planted Production (Ha) (Ha) (Ha) (Ha) (Ha) NEW RICE 3 580 500 496 496 496 4 410 376 363 363 363 5 930 550 547 535 535 6 & 7 1,700 1,517 1,522 1,430 1,430 8 & 9 1,510 1,539 1,554 1,529 1,529 Total 5,130 4,482 4,482 4,353 4,353 TREE CROP Oil Palo 10 580 531 511 511 324 1OA 455 319 J 108 - 95 504 504 464 lOC - 122) 11 770 510 374 374 152 12 1,270 1,160 1,589 1,539 8O 13 1,490 1,402 1,788 1,707 1,707 14 1,520 830 693 693 511 15 1,100 1,495 1,651 1,651 1,651 Total 7,185 6,464 7,110 6,979 5,609 Cocoa 10 100 101 88 80 88 lOA 100 101 142 90 30 11 240 160 165 - - 12 200 180 380 320 - 13 200 208 - - - 14 180 121 200 200 68 15 180 250 133 133 - Total 1,200 1,121 1,108 831 186 GRAND TOTAL 13,515 12,067 12,700 12,163 10,148 - 49 - AUEX 5 MALAYSIA tRANS-PERAI AREA DEVELOPMENT PROJECT PROJECT COMPLETION REPORT ROADS COMPLETED (kg) START DATE COMPLETION DATE Appraisal Reformulation Actual Planned Actual Planned Revised Actual A. ACCESS ROADS 1. Access Roads I (incl. oetalling) 18 17.6 17.6 1980 April 1981 Dec 1984 Aug 1987 Mar 1985 2. Access Roads If 35 43.0 34.3 1981 May 1982 Dec 1986 May IM June 1989 TOTAL 53 60.6 51.9 S. VILLAGE ROADS 1. Village Road 1 19 18.8 18.8 Mid 81 April 1982 1984 Jan 1985 Jul 1986 2. Village Road 2A, 2C a Chaogkat Lada 53 52.9 52.9 Mid 81 Nov 1982 1984 Jan 1985 Aug 1986 3. Village Road 28 and Sg. Dedap Road 55 55 55 1981 April 1985 1987 Feb 1988 Mar 1989 TOTAL 127 126.7 126.7 C. NEST COAST HIGHWAY 27 27 24.3 1980 Nov 1982 nay 1985 May 1985 Feb 1986 A= S. . Annex S - 50 - ANNEX 6 MALAYSIA TRANS-PERAK AREA DEVELOPMENT PROJECT PROJECT COMPLETION REPORT IJON$ S'TRUCO II:)N OF SETTLER HOUSES SETTLER HOUSES Year original Reformulation Actual No. Target Target Completed 1981 1982 1983 350 350 1984 1985 1986 1,117 - 1987 1266 360 1988 1267 300 1989 424 * Total 6,900 4,000 1,434 * 144 units partially completed under original contract which had failed. Tender is being called to complete these units in 1990. settlers - 521 - Annex 7 MALAYSIA TRANS-PERAK AREA DEVELOPHENT PROJECT PROJECT COMPLETION REPORT ...... .......... . ..... ....... WUILDIN6S CONPLETED Types of Buildings Appraisal Estiaate 1 Reformulation ! Actual a Felcra DID Others IFelcra DID Others WFelcra OID Others .. . , . ..........------..... ......... ---- ---- ----- ---- --- ---- Project office buildings 5 LS 5 1 LS 2 1 I - Laboratory - - 11 I1 I - Vorkshop I - I - Garage - - 21 - - - I l - - Store I lS 3 1 LS 21 4 1 1 /a Peat station building - - I1 - - l - 5 Grain drying ban - - 1 - - 1 - - - 5 Drying yards - - 31 - - 1I - - - Ramps - - LS O - - lS 1 - - - Staff quarters 536 122 25 260 30 51 174 47 13 lb 1 Social centre I - - l a a -----_ - --- - _ ---- - -- - 5 - - - - TOTAL 544 122 44 1 262 30 13 183 49 14 1 _-_ …___..___ ----…--- /a LPN store lb 10 for teachers 3 for JKR Building - 52 - ANEX B HALAYSIA TRANS-PERAK AREA DEYELOPMENT PROJECT PROJECT CONPLETION REPORT VEHICLES AND EQUIPHENT LIST ~~~,. .. . ........... .................... ..... ......... .... . ... .. ........... ........ Type of Vehicles/Equipment I No. at , Actual No. Procured I Appraisal I --------------- TOTAL I Felcra DID Others …a~~ ~ I I.. ...... .. Coabine harvester 21 1 - 0 Tractor 40D, lOOhp I - 1 Tractor 40D, 70-80hp 129 1 23 - 23 Excavator 31 - - 0 Backhoe 21 - - 0 Ditcher 10 1 3 - 3 Forklift Truck 3 ton I - - 0 Saloon Car - I 1 Rotor 6rader 1 21 - - 0 Nid ounted 6rader - 4 - 4 Vibratory Roller 1 11 - 0 Rear Grader - 2 - 2 tanker t 201 6 - 6 Lorry/Tipper I 481 2 3 5 Nobile Plant Protection Unit 11 - - 0 Pick-up Van LOB 31 - - 0 Field Vehicles, LOB I 31 5 1 6 Field Vehicles, SEB I 28 1 16 3 19 Trailer 1 181 1 17 - 17 Transplanter 5 2 1 - - 0 Bucket - 18 - 18 Notorcycle 125 c.c - - 5 5 Land Planer I - 3 - 3 Rotovator - 7 - 7 Harrov - 1 4 - 4 Plough - 6 - 6 Seederator - I 2 - 2 Sprayer I - I 6 - 6 Rotoslasher I 2 - 2 - - vehicles - 53 - AMNEX 9 MALAYSIA TRANS-PERAK AREA DEVELOPHENT PROJECT PROJECT COMPLETION REPORT SETTLEhENT INFRASTAJCTURE - PHYSICAL PERFORHANCE Appraisal Reforeulation Actual Remarks Settler Houses 6,410 4,000 1,434 See Annex 6 Roads and drains LS 96 55 See Annex 5 Electricity LS LS LS water Supply LS LS LS Primary Schools 7 7 2 (Both temporary) secondary Schools 3 3 3 (2 temporary) Recreation Centre 1 l - Health Facilities 1 1 2 Clinics 3 3 Sewerage LS LS settinfr "UECI ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 1 actual costs (nu)U 198 1992 196 Igo84 1965 36 296 t9o 1M6 Actual times ot cms fOefarla- .1fswal- TOW ts A. in FADI AREA ------- --- ----- ------ ----- ------ -------- --- I kbrang aid Irrigation - 2,471 3,305 3.46? 4,767 C.M 4.529 1,623 2.494 V1.4N 21.0 18.6 101 2I1 2 laid klewlpst 2.212 2,069 41 28a 421 1.719 2.52? 54 9,577 12179 9.1 is 99 I WMve aid lovetigatios 71 21 - -- - - - - 96 0.30 0.5 100 20 sob-total 1*1 2,343 4,573 3,192 3,45 4CM0 5.230 6.248 4.149 2.546 31.676 39.95 26.6 93 329 3. ff3331L1111131101 AREA I kaisag aid irrigatla - - 2,236 2.559 2.661 166 - 7.606 9.64 5.1 17 149 2 Suris ad lavstigatios 15 - - - - - - - 1I5 0.10 0.5 110 34 3 Aeeulalebbltto 59 - - - - - - - 899 - 5.5 0 Is AtLad cgaisitioo - - 24 - 300 is - 24 22 441 3.06 0.8 42 55 5.2.-total (5) 1.634 - 24 - 2.518 2,637 2.663 192 21 9,06 11.02 12.9 92 76 C. IRKE Cw REA I I Draioae aid flood Protection 99 393 350 1I8 1.202 2,522 33 - - 4.091 1.67 49.8 219 6 4 2 Lad Deveo,ut 3,5$4 3.114 5,361 4.101 6.695 12.06 9.719 13.241 6.290 66.I3 55.2 1.1 120 932 3 Sumevead Isessigation 19 s0 - - - . - - - 270 0.21 0.5 100 54 Sub-total (C) 3,643 3,567 5,711 4.299 1,897 13,560 10,656 23,241 6,296 10.504 51.42 57.4 123 223 O. Acces loads hiod. aetalliag)s - - 1,664 1,766 4,520 6.007 2,046 1.923 2,388 19,716 27.52 9.4 12 22 f. lest ftoat Mion.a - . 14,617 17,532 10.770 4.931 - - - 42.920 47.60 24.6 lo1 In3 F. Settiler House - - 1,614 - - 2.102 646 1.654 602 5,619 21.23 32.0 26 Is S. luuldiogs - 131 1.133 471 246 2,563 S19 621 632 ?1.29 13.18 25.4 52 26 N. Processiag Facilities - - - 209 - - 16 221 16.20 12.2 1 2 2. Settleset lnlrastr.cture - _ - 1,161 6,295 10,134 6.512 6,796 3.241 35,175 56.49 80.4 62 44 J. Eqoipmet aed 9ebicles 62 124 1,260 82 141 120 163 91 1,958 6.95 20.2 22 to 1. Cmsultase ad Stodies - ,356 2,174 690 693 424 - 941 17 6,630 3.63 10.3 Joe 66 L. Adshistuation ad Engiseeia 2,30 500 680 2.91 1,985 2,96 3,974 3,933 4,153 22,70 9.02 5.6 290 322 N. COPHtOitgois- - . - - - - - - 28.10 111.4 Subtotal (0-3) 2,368 2,711 22.200 24,497 24.462 29,067 33.84 16.165 31,633 241,26? 235.83 J33.9 62 44 GR IOAJI ii 9.566 10,671 31,607 32,29 39,584 50,534 32,649 33,738 U2,672 263,934 344.22 430.0 11 61 Ie sw ot isclude wess road 3 cots vbirb kav bee inclued in Settlemet IntrastrKctwe. Emid Annex 10 MAAYSIA----- TRimS-PE RU Ru VEL I PROJECT table 2 PROJECT COUTLETJO1I REPORT DID - AWAl PROJECT coStS (10 Component 1981 1982 >83 1984 1985 1986 1987 1988 1989 TOTAL a) Rev Padi Area i1 Irrigation lorks I - 2,476.560 3,304.853 3,467,234 4,707,153 4.809,300 4.528,600 1,613,263 2,494,334 27,401,297 it) Drainage a Irrigation 1 iii) Survey a Investigation 70.550 27.260 - - - - - - - 97,810 SWIV-TOTAL 70,550 2.503,820 3.304,853 3,467.234 4.707,153 4.809.300 4,529,600 1,613,263 2.494,334 27.499.107 bI Reabilitated Padi Aea il Irrigation Works I - - - 2,218,481 2.559,000 2,661,433 167.492 - 7.606.406 ii) Drainage 6 Irrigation iii) Enad Acquisition - 24,458 - 29S,667 77.722 - 24,033 21,003 446.883 iv) Survey I Investigation 14.765 - - - - - - 174,765 SU0-IfliAL 174,765 - - - 2,518,148 2,636,M 2,661,433 191,525 - 8,228,054 r) tree Crop Area i) Drainane $ Flood Protettion 98,700 393,137 349.538 197,850 1,201,550 1,512,000 337,228 - - 4,00,o003 iil Survey a Investigation 1J09 0 79,eO0 - - - - - - - 270,200 5IJ- trITAL 289.300 - - - 1,201,550 1,512,000 337,229 - - 4.360.203 4) Ruzldings - 3,5/0 1.137.200 452,100 18,016 - - - - 2,3J7,886 el Etquiont 5 Yides 60,728 124.535 69,921 - - - - - 255,184 IlAt ,5951343 3,358,925 4,511,974 3,919,334 8,444,867 ,958,022 7,527,261 1.604,798 2,494,334 42.680,434 DID Annex 10 RALASIA TlUJIS-PEl AMEA tEIELOPIEIIT PROJECT table 3 PROJECI COltETIlN REPORT- PM) - AntI Om COSTS CoZwooe,t 1982 1'83 1984 1985 1986 M987 988 19 TOTAL 1. West Coast Nigiay - 14,677,400.00 17,531,741.56 l0,770,O00.00 4,930,898.81 - - - 47.910,040.37 2. Actess Road I - 1.064,115.50 1,518,593.59 1, 781.6. 91 1.214.068.84 - - - 5.578,t68.84 3. AEcess Road 2 - - 247,200.00 2.738,500.00 3,309,000.00 94s,300.00 1,522,000.00 2,387,664.00 11,229,664.00 4. Access Road 3 - 317.495.00 363.980.00 2.570.643.00 - - 3.2S2.118.00 S. Netallinq of Attess Road I - - - 1,404,302.97 1,102,204.00 401,145.23 - 2,907,652.20 TOlTA 1,064,115.50 203.288.59 4,84,170.91 8,579,014.81 2,047,504.00 1,923,145.23 2.387,664.00 22,967,03.04 -- as~ lah 10 NALASIA TAS-fERl UFA DEVELOFIEJIT 1031Ctl Tabl 4 RmOJECT CIPLEJICI REP0it FELCI - AMAL PRO tt COStS Cowonnt 1981 1982 1983 1984 1985 1986 1987 1988 1989 TOTAL a) New faoPi Ae tand Develoent 2.2)2.120.51 2.069,427.90 4::.136.22 2i,619.77 - 421.174.00 1.719.227.00 2.527.344.00 53,963.00 9,57P.012.40 bI tree Crop Area Land Developuent 3.554.014.35 3.114.352.37 S.3SI.613.93 4.100.684.32 6,694.,99.33 12.068.061.24 9,719,138.10 13,240.873.49 9.289.896.48 66.143,533.61 ri Rehabilitated Padi Area 858.712.00 - - 858.712.00 dl Settler Ibouses - 1.614.00b.01 - - 1,101.255.55 649,344.00 1.653.806.00 602,451.00 5.619.862.56 e) Building - - 450.00 25.039.61 229.8598 2 2.563.344.80 519.364.4 821,000.00 631.730.50 4.790.788.17 ft Processing Facilities - - - - - 208.929.00 - - 18.227.19 227,156.19 ol [uwpaent A Vhicles - - 1.09,654.16 82,275.50 140,745 35 109.569.14 183,075.50 97.321.40 - 1.702.641.05 tOIAt 6,604,846.86 5.13 788.27 8.552.868.32 4,235.619.20 7t065,503.40 16,472.333.73 12,789,149.14 18.340.34.89 9,5%.268.17 88,920,705.98 felcts~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ lekta~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- Awl 10 NALAYSIA TRM-RAI AE REVELIOlt PROJECT 1ab1 5 POlJEt COLETIIVIIU REMP-R- SETTEIEIrI IERASTRUClTUE COSTS (at) ACItVIIt 1982 1983 1984 1985 1906 1987 1998 1989 TOTAL 1. sos - - 16,000 150I.OD 10890 84,456 113.316 23.368 645.930 2. HEALtH FACILIIIES - - - - 189,494 96,503 - 285.997 3. MTER SILl - - - 978,861 2.309.668 2.034.569 6S9.662 2.912.473 9,895,232 4. ELECTRICITY SlMT - -* 460,648 93,873 - 2,423,118 12.435 2,990,074 S. VILLAGE ROADS * - - 1,601.500 4,515,407 7.798,832 4,055,452 3,503,000 293,035 21,767.226 6. LAND aChsIlie - - - - 442,47? 149,008 - - 590,477 lOlA - - 1,767,500 6,104,916 10,753,640 6,S11.970 6,795,S99 3,241.311 35,174,936 Includes Ace Rod 3 cost. O SETILE tl.ATYSIA lawS-PEW ANA KVELOE M PECI "MCI COulETIlU uEl O REINBUR8EU InS,, YEAR AGENCY CATEGORY 1991 1982 1993 1984 185 1996 1981 1998 1999 TOTAL . . . - - -- -- -- --- -- -- -- -- -- -- --- -- -- -- -- -- -- --- -- -- -- -- -- -- --- -- -- -- - -- -- --- -- -- -- -- -- -- --- -- -- -- -- -- - - -- -- -- -- -- -- DID I - - - - - - - 50,58.92 50s,s5.92 2 - 202,209.27 66,956.66 874.9.79 986,021.89 1.149,630.91 1,701,007.56 471,590.76 71,596.54 6,126,001.37 3 - 143,141.86 88,200.78 - - - - - 231,32.64 Sub-total - 345,350.13 757.157.44 874,988.78 986,021.89 1,149,630.91 1.101,007.56 471,590.76 122,186.46 6,407.933.9J ------ ------ ------ - --- ------ ------ ------ ----- ------ ------ ------ -------- - - - - - - --- - -- - - - --- - ---- - - - _- __ - -- - P2D I - 5,439.77 - - - - 5,439.71 2 - - 2.609.439.06 2,172.928.24 601,305.03 2.94.512.39 1.679,745.97 494,244.83 903,345.77 10,906.181.28 3 - - 613.529.5$ 234.501.24 366,724.93 - - 206.339.03 740.S21.72 2.161,61S.'. Sub-total - 2.628,409.42 2,407,429.48 961.029.96 2.945,172.38 1,679,745.97 700,592.86 1,S43.867.49 12.973,236.56 fEICeRA - I - 148857.22 - 170,745.74 34.496.58 305,896.00 659,995.56 2 -- 73.563.13 610,223.90 443.433.59 242,703.00 2.965.526.49 3.117,779.38 2.066,099.24 10,319,328.81 3 -1- - - - - - *28535b 289,515.16 Sub-total - - 873,563.13 610,223.98 59,290.81 242,703.00 3,136,272.23 5.813.776.36 13,930339.91 11.26,829.51 Al AGENCIES I - 5,439.7 - 148,857.22 - 170,45.74 34,M46.58 356485.92 716.015.23 2 - 202,208.27 3,551.958.85 3,658,141.00 2.030,760.51 4.337,506.29 6.346,290.02 4.083,614.97 3,041,041.55 27.2514,11.46 3 - 143,141.86 701,730.37 234.501.24 366,724.93 - - 206,338.03 1,030,036.88 2,682.473.31 GRAND ltAL - 345,350.13 4,259,128.9 3,992,642.24 2,546,342.66 4,337,506.29 6,517,025.76 4,324,439.58 4,427,564.35 30,6.0000.00 oISIVRSE - 60 - Annex 12 Table I MALAYSIA fRANS-PERAK AREA DEVELOPMENT PROJECT PROJECT CONPLETION REPORT PADDY PRODUCTION IN THE RENABILITATED PADI AREAS FOR THE 1/89 AND 2/89 SEASONS Season 1/89 (Dry Season) Season 2/89 (Met Season) Total 1989 Planted Production Av. Yield Planted Production Av. Yield Planted Production BLOCK Area (ha) (et) (at/ha) Area (ha) (at) (it/ha) Area (ha) (at) A 639 1,757 2.75 639 1,815 2.84 1,278 3,572 0 - (Felcra Ph. 11 629 2,567 4.08 629 2,094 3.33 1,258 4,661 C - (individuals) 883 3,029 3.43 803 3,285 3.72 1,766 6,314 C - (Felcra Ph. 2) 420 1,762 4.20 429 1,561 3.64 849 3,323 (Felcra T. 16) - - - 196 658 3.36 196 650 D 944 2,697 2.86 944 3,030 3.21 1,088 . 5,727 TOTAL 3,515 11,812 3.36 3,720 12,443 3.34 7,235 24,255 Pady - 61 - Annex 12 rable 2 MALAYSIA I RANS-Pf'E RAK AREA D)EVELOlPMENT P ROLJECT IJROJECT COMIPLET ION REPORT' PADI PRODIJC1ION IN 1HE NEW PADI AREA:: Season Area Gross Avereage Planted Production field (ha) (mt.) mt/ha) 1983 - Wet 134.3 98.1e .7 0.74 1984 - Wet 376.S 787.27 2.10 1985 - Dry 734.4 l,989.56 2.70 1986 - Dry 1,391.1 3,614.00 2.60 1986 - Wet 2,134.1 6,158.99 2.90 1987 - Dry 2,095.0 6,413.0/ 3.06 1987 - Wet 3,385.0 10,214.58 3.02 1988 - Dry 3,562.0 fl,497.02 2.39 1988 - Wet 3,825.0 14,435.39 3.78 1989 - Dry 3,837.7 20,5c94.34 5.37 1989 - Wet 4,353.0 20,694.67 4.75 - - - - - - - - - - - - - - - - - _ _-- - - - - - - - - - - - - _ _- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 62 - Annex 12 table 3 MALAYSIA I RANS-PEHAK AREA DEVELOPMENT PROCJEC-I PRoJECT COMPLETION RE POR r Pro.iected Yield Profil e Padi Year Dry Wet Season Season 1983 -C. SE: .1984 1.64 1985 2.11 1986 2.03 2.26 1987 2.39 2.36 1988 1.86 2.95 1989 4.19 3.71 1990 4.30 3.75 1991 4.40 3.85 1992 4.50 4.0 1993 4.60 4.1 1994 4.65 4.2 1995 4.70 4.2 Note: 1983-1989 figures are derived from actual gross yields less 22% for LPN deduction paditab3 NAILAYSIA Annet 12 IR41S PEIUA AREA KVELOC41 PROJECT PROJECT COPIIETION REPORT Table 4 AMNA PADI PIOUCTION (PaMe 1 (Si) 1983 94 1 1988 1986 1980 198e 1189 190 199 1 1 1 1995 19"6 1997 A. Iev PIdl Area Dry Season Cropmed Area (ha) - 734.4 1.391.1 2.095.0 3,562.0 3.037.1 4.353.0 4.353.0 4,353.0 4,353.0 4,482.0 4.482.0 4,482.0 4,482.0 Averaqe liold (at/ha) - - 2.11 2.03 2.39 1.86 4.19 4.30 4.40 4.50 4.60 4.65 4.70 4.70 4.70 Production (et) - - 1,550 2,824 5.007 6.625 16,080 18,718 19,153 19,588 20.024 20.84 21,065 21.065 21.065 Net Season Cropped Area (ha) 134.3 376.5 - 2.134.1 3,385.0 3,825.0 4.353.0 4.353.0 4.353.0 4,353.0 4,353.0 4,482.0 4,482.0 4,482.0 4,482.0 Aeiwage Yield (et/hal 0.58 1.64 - 2.26 2.36 2.95 3.71 3.75 3.85 4.0 4.3 4.2 4.2 4.2 4.2 Production lIt) /R 617 0 4,823 7,989 11.284 16.150 16,324 16.759 17,412 17,847 18,824 18,824 18.824 18,824 TOMAl P@oUCTIoN ltt 78 617 I.S50 7,647 12.996 17,?09 32.230 35,042 35.912 37.001 37,871 39.666 39,890 39.890 39,890 8. Rehabilitated Aea lrnetnlal Pr.duttion (of) /I - ,915 2.295 11,415 12,462 14.880 16.173 18,880 19.760 19,760 19,7/6 19,760 TOTAl RENARI N FIF PADOt AREA 70 617 I,550 7,.647 14.971 20.204 43,645 47,504 50,792 53,174 56.751 59.426 S9,650 59.650 59,650 /I PIea.e reter to Anne: 12 lable S Rentet it' Arnnex 12 Table 4 (Paqe 2) 1998 1999 200o 200l 2082 2003 2004 2005 2006 2007 2008 2009 2010 A. en Padi Area Dry Season rCropped Apea lhai 4.492.0 4.482.0 4.482.0 4.402.0 4,482.0 4,42.0 4,482.0 4,487.0 4,482.0 4,482.0 4,482.0 4,482.0 4,482.0 Averae iteld lot/hal 4.;0 4 70 4.70 4.70 4.70 4.10 4.70 4.70 4.70 4.70 4.70 4.10 4.70 Produ(tion (it) 21,065 21,065 21.065 21,065 21,065 21,065 21,065 21,065 21,065 21,065 21.065 21,065 21.065 Net Season ;rowped Area tha) 4,482.0 4.412.0 4,482.0 4,482.0 4,482.0 4,482.0 4,482.0 4,482.0 4,482.0 4,482.0 4,42.0 4,482.b 4,48? . Averaqe field (utthba 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 Produrtion lit) 18.824 18.824 18,824 18.824 M8.OM4 1t.824 18,824 18.824 18,824 18,824 18.824 18.824 18,824 tritAl PRODMC1ION (stl 39.890 39,80 39,890 39."O 3.890 39.R9t 39,890 39,890 39,890 39,89o 39.890 39,890 39.890 I. Rehabilitated Area ... . .... ... . Inrrearntal Produttion 'itl /I 10,1?60 19,60 10.1 60 19);6O 19.760 lMl?be 19,760 19,760 19,760 19.60 I0,760 19,760 29,760 TOTAt RPHAS t MEN PADDY ARtA 5S.650 s9.e.50 59,650 59,50 59.650 59,650 59,650 59.650 59.650 59,650 59,658 59,650 - 65 - Annex 12 MALAYSIA Table 5 TRANS-PERAK 4REA DEVELOPMENT PROJECT ------- PROJECT COMPLETION REPORT REHABILITATED PADI AREA - INCREMENTAL PRODUCTION 1987 1988 1989 1990 1991 1992 1993 1994-2010 Withou'. Project Cropped Area (ha) dry season 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 wet season 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 Total 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 Yield (et/ha) dry season 3.2 3.2 3.2 3.2 3.2 3.2 3.2 3.2 met season 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Production (et) dry season 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 wet season 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 Total 12,840 12,840 12,840 12,840 12,840 12,040 12,840 12,840 'ith Project Cropped Area (ha) dry season 3,280 2,875 3,515 3,515 3,600 3,600 3,600 3,600 wet season 3,280 2,875 3,720 3,720 3,900 4,035 4,150 4,370 Total 6,560 5,750 7,235 7,235 7,500 7,635 7,750 7,970 Yield (at/ha) dry season 3.1 2.6 3.4 3.6 3.8 4.0 4.2' 4.2 wet season 2.9 2.7 3.3 3.4 3.6 3.8 4.0 4.0 Production (at) dry season 10,200 /,335 11,812 12,654 13,680 13,680 15,120 15,120 wet season 9,615 7,800 12,443 12,648 14,040 15,333 16,600 17,480 Total 19,815 15,135 24,255 25,302 27,720 29,013 31,720 32,600 Intreaental Production 6,975 2,295 11,415 12,462 14,880 16,173 18,880 19,760 invest O a ± X to w I a~~~~~~~N -~ - I -: !- i !~~~-: - I I i l IiI - -, N) *9 . -,. je * - - iaXe * ! o 8 8 , ~~~~~~~~~~* I I i ) S * S 1 ° -i i~~~~~~~~~~ 10 i It . -~~~~~~X>. :3. ~~~~a* * - , '4 . AImv o9!, 'i *0 1 lw4 _) _I V * * i4 - o ° i- - _ $o- - *g!s , Go_go* : tw _ - * Ł_ bAe 13 table I (Page 2) 4nnual Oil Palm Plantings, Prodction and Yield Plantino Area Iear Projected Production (it) oat r Planted Of ------------------------------------------------------------------------------------------------------------- (Ha) Harvest 1998 1999 2000 2001 20e2 2003 20 205 2006 2007 2009 2009 201 14-08i It.6 J934 *3486 3,403 3.320 3.237 3.154 3,071 2,988 2,905 2.822 2,739 2.656 2.656 2,656 1481182 107 1985 2,301 2.24? 2.1°4 2.140 2.087 2,033 1,980 1,926 1.873 1.814 1.766 1.712 1.712 lIPB2I83 246 193 5.412 5.289 5,16 . 5.043 4,920 4.797 4.674 4.551 4,428 4,305 4.182 4.059 3.936 1'83I84 453 198, 10,193 9,966 9.740 9,513 9.287 9.060 8,834 8,607 8.381 8.154 7.928 7.701 7.475 14S5 2.204 1988 50,b92 49.590 48.488 47.386 46,284 45,182 44,080 42.978 41,876 40.774 39,672 38.s70 3r,468 1986 2.433 1989 57.176 S5.959 54,743 53.526 52.310 51.093 49,a77 48.660 47.444 46,227 45,011 43,794 42.570 1487 1.040 19Q0 26.160 25.615 25.070 24.525 23.490 23.435 22,890 22.345 21,80 21.255 20.710 20,165 19.620 1988 182 1441 4,368 4.368 4.2!7 4.186 4.095 4.004 3,913 3,822 3.731 3,640 3.549 3.453 3.367 149 98 1942 2,254 2.352 2.352 2.303 2.754 2.205 2,156 2,107 2.058 2.009 1,960 1,911 1.162 19" 131 1913 2.017 3.013 3.144 3,144 3.079 3,013 2,948 2.882 2,317 2.7S1 2.686 2,620 2.555 Strd lotal 7.110 164,857 161,802 158,493 155,003 151.448 147.893 144.338 140.783 137.228 133.673 130.118 126.646 123,228 Hetartae planted Wha 7.110 7.110 .110 7,110 7,110 7,110 7,110 7.110 7,110 7.110 7.110 7.110 7,110 Average annual field (mt/hal 23.19 22.76 22.29 21.0 21.30 20.90 20.30 19.30 19.30 18.80 18.30 17.81 17.33 -- . - . - - . - . . - -- - - -- - - -- - - - -- - - -- - - -- - - -- - -; - - -- - -- - - - -- - - -- - . -- - . -- - - -- - - -- - - - - - - - 68 - Annex 13 rable 2 MALAY SIA rRANS-PERAK A REA DEVELOPMENT FPROJECT PROJEH.U T CO:::MPLETIC(IN RtPEP(R T ProJieXted Yield Protile QIL PAl M Ac:tual Yield Year From Year of Projected --------------- Planting Production Yield BY Year of (mt/ha) Production I - 3 1 3.0 2.9 4 2 5.0 4.9 3.0 7.8 6 4 13.0 13.2 7 5 17.0 12.2 :3 6 21.5 21.3 9 7 23.0 If a 24.0 11 9 24.0 12 10 23.5 13 11 23.0 14 12 22.5 15 13 22.0 16 14 21.5 17 15 21.0 18 16 20.5 19 17 20.0 20 18 19.5 21 19 19.0 22 20 18.5 23 21 18.0 24 22 17.5 25 23 17.0 26 24 16.5 27-30 25-28 16.U …-- - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - -- - - - - - - - - - - - -_ OPPROFIL AnI 14 WUYSIA Table I TRANS-PERAK ARDEVELOPHET PROJECT PROJECT COlPlEETHO EPORT (Page 1) Annval Cocoa Plantings, Production and Yields Planting Area Year Actual Prmduction (at) . Projected Production (at) Year Planted Of -------------------------------------- ;--------------------------- - - - -------------------- - ---- (Ha) lHrvest 1984 1985 1986 1987 1988 1989 I 1990 1991 1992 1993 1994 195 199 m7 1I01 45 1984 , 53.10 55.35 58.05 58.05 55.35 53.10 50.40 47.70 1983 43 1986 I 38.70 45.58 50.74 52.89 55.47 55.47 52.99 50.74 1984 30 1988 16.80 21.90 27.00 31.80 35.40 36.90 38.70 38.70 1o.85 68 1989 23.12 38.08 49.64 61.2 72.08 80.24 83.64 87.72 1986/88 321 1990I 54.57 109.14 179.76 234.33 288.9 340.26 378.78 394.83 1988/89 324 1991 0 55 08 110.16 181.44 236.52 291.6 343.44 382.32 J990 277 1992 47.09 94.18 155.12 20.21 249.30 293.62 Grand To 1,108 7.15 16.06 37.40 29.68 24.67 107.04 1186.29 325.13 522.44 713.89 89.84 1,059.78 1,197.15 1,295.63 Area In production (ha) 45 45 88 88 118 186 507 831 1,108 1,108 1,108 1,108 1,108 1,108 field tot/ha) 0.16 0.36 0.43 0.34 0.21 0.58 0.37 0.39 0.47 0.64 0.81 0.% 1.08 1.17 N.8: Fiqures trou 1984-1989 are actual production. Cocna AuR 14 Table I (Pop 2) Planting Area Year ProjecteiJ Production (at) Year Planted Of ------------------------------------------------------------------------------------------------------------------------ (Ha) Harvest 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1931 45 1984 45.00 42.30 39.60 36.90 34.20 31.50 28.80 26.10 23.40 20.70 18.00 18.00 18.00 01Q3 43 1986 48.16 45.58 43.00 40.42 37.84 35.26 32.68 30.10 27.52 24.94 22.36 19.78 17.20 1984 30 1988 36.90 35.40 33.60 31.80 30.00 28.20 26.40 24.60 22.80 21.00 19.20 17.40 15.60 1985 69 19I9 a7.72 83.64 80.24 76.16 72.08 68 63.92 59.84 55.76 51.68 47.6 43.52 39.44 1986/88 321 1990 414.09 414.09 394.83 378.78 359.52 340.26 321 301.74 282.49 263.22 243.9% 224.7 205.44 1988/89 324 P91 398.52 417.96 417.9% 398.52 382.32 362.98 343.44 324 304.56 285.12 265.68 246.24 226.8 1990 277 1992 326.86 340.71 357.33 357.33 340.71 326.86 310.24 293.62 277.00 260.38 243.76 227.14 210.52 Grand To 1,100 1,357.25 1,379.68 1,366.56 1,319.91 1,256.67 1,192.96 1,126.48 1,060.00 993.52 927.04 860.56 796.78 733.00 Area In -7oduction (ha) 1,108 1,108 1,108 1,108 1,108 1,188 1I 108 10 18 1,108 1,108 1,108 1,108 Yield (mt/ha) 1.22 1.25 1.23 1.19 1.13 1.08 1.02 0.% 0.90 0.84 0.78 0.72 0.66 - 71 - Annex 14 rable 2 MAl..AVY.A I MAN- l'-KAK AREA 1t)LVtL.OPMENrT PROJECT z:)^[L.- I' I:)MIrIPLTTI(:JN IREPORT I-rn I(c tod Y i.ldl Protilt? (JG(JA nt/t:ha) Actual Yield Year From Year F1 r om Projected- - Plant.i-c:P F'raduc t.i on Yield By Year of (mt/ha) Production j 1. 0.1/ .20 4 2 0.34 0.33 3 ; 0.56 0.43 4 0. 73 U.34 / 0, 0.90 0.21 1.06 0.87 ., ,7 1.10 I U r13 1.23 1i1 -O 1.29 12 10 1.29 1.3 11 1.23 14 121 1. 11 15 1 i 1.12 14 1.06 17/ 15 .; 1.00 1:: 16 0.94 19 1/ U. a8U 20 13 0 . 8i:2 .21 1w?9 0.76 22 20 U.70 23 21 0.64 24 22 0U. 513 25 23 0.52 2hb 24 0.46 27-30 25-28 0.40 …_____.______-- . - -_ - _ _ _ _ - -__________ oppcoc:oa Anl tlWjtSl Aff IEROPIll MIECltO Etm l Cla LEIIhIu REPO T - (Page 1) Eissu mm ptci svlUIEi adi 1991 982 3 1984 1965 1996 1987 196M198 6 1990 389 12 1993 1984 1995 9M9% In Us53too txort prite, 55 broion,/) F.O.B. 0 nD ok 633 389 378 351 297 246 246 300 321 271 249 223 231 231 231 228 Srode differential lIm lo:) 570 350 340 316 267 221 221 270 289 244 224 201 208 208 208 205 km ea tl ins rance 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 C.l.F. price, Port Elan, 600 380 370 346 297 2S1 251 30 319 274 254 231 238 238 238 235 ForeigEcatngeh ate 2.3 2.3 2.3 2.3 2.6 2.6 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 C.lF. Port King 1.379 874 851 76 773 654 679 810 961 740 686 623 642 642 642 635 Port bAdiog 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 transOrt cost, Port lig to !poj 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 liolesale pritce, IpoA 1,413 908 985 3 8o7 688 713 84 8 774 720 657 676 676 676 669 tess transort, proect area to IpoII 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 Es oill rice price project area 1.397 892 869 814 791 672 697 829 879 758 0 b41 60 660 660 653 Padi equivalent 9" 580 565 529 514 437 453 539 571 492 458 417 429 429 429 424 lillingt ost /2 57 57 57 57 57 57 57 57 57 57 57 57 57 57 57 57 Er-gill cadi price /3 851 523 508 472 457 380 396 48 s14 435 401 360 372 372 312 367 /1 1I8D's Jan ry 1990 CotWdit, Prices and price projectionr io constant IM dollars adjusted to consstant 1989 dollars using PIUV index. 12 Adjusted free linanrial price using the standard coersion factor of 0.88. /3 Deterinsed by ajostiug financial base estimate using standard conmvrsion factors in Annel 15 lable 4. peOov 'cP Annel 15 Table I (Pagp 2) Padi 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 In US$Iton Export price, 53 broken,/I F.O.0. Bangkok 228 228 228 228 228 228 228 228 228 228 228 228 228 228 Grade differential (less 101) 205 205 205 205 205 205 205 205 205 205 205 205 205 205 Ocean freight & insurance 30 30 30 30 30 30 30 30 30 30 30 30 30 30 C.I.F. price, Port llang 235 235 235 235 235 235 235 235 235 235 235 235 235 235 In "$/ton Foreign Exchange Rate 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 C.l.F. Port llang 635 635 635 635 635 635 635 635 635 635 635 635 635 635 Port handlinq 14 14 14 14 14 14 14 14 14 14 14 14 14 14 lransport cost, Port Klang to Ipoh 20 20 28 20 20 20 20 20 20 20 20 20 20 20 Wholesale price, Ipoh 669 669 669 669 669 669 669 669 669 669 669 669 669 669 Less transport, proiect area to Ipoh 16 16 16 16 16 16 16 16 16 16 16 16 16 16 Ix-mill rice price project area 653 653 653 653 653 653 653 653 653 653 653 653 653 653 Padi equivalent 424 424 424 424 424 424 424 424 424 424 424 424 424 424 Hilling cost 12 57 57 57 57 57 57 57 57 57 57 57 57 57 57 Et-sill pMdi price 13 367 367 367 367 367 367 367 367 367 367 367 367 367 367 …-…-…~-- - - - - - -- - - - - --- - - - - - -- - - - - - - - --- - - - - - - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - - - anex Ab I3ALAISIA !T! RIlM PEIAU AREA DEYVELPttIl PROJECI fable 2 PROJECI COIIPtETIOU REPORI (Pap II PAiN Olt PRICE SIRtIIURE Palo Oil 1989 ;992 1993 1994 3985 1986 n87 1988 1989 1990 ;99; 1992 1993 I194 19"5 In USI/ton l'sia5. 5S bulk. C.I.F. N.M. Europe 11 749.92 591.68 683.87 1,014.11 689.38 A01.34 366.02 436.19 350.88 337.12 357.76 378.4 438.94 438.94 438.94 Orean lrtj0t a insurance /2 6s.50 60.12 63.25 74.48 63.44 50.25 52.44 54.93 51.93 51.46 52.16 52.87 s4.92 54.92 54.92 f.O.B. Foir llan1 684.4? 531.56 620.62 939.63 625.94 251.09 313.58 381.36 298.95 285.66 305.60 325.53 384.02 384.02 384.02 In ff5/Ion foreign Etcbae Rate 2.3 2.3 2.3 2.3 2.6 2.6 2.7 2.7 2.7 2.1 2.7 2.7 2.1 2.7 2.7 f.O.O. Potl Slang 1.574.17? I2.59 1,427.43 2.161.15 1,627.44 652.83 846.67 1,029.67 807.17 771.28 825.12 878.93 1,036.85 1,036.85 1,036.85 fEterl Duty 393.54 134.49 151.02 S40.29 406.86 0.00 42.33 113.26 40.36 38.56 41.26 43.95 114.05 314.05 314.0S Port cbarges a transport IF) 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 IE) 23.52 2J.52 23.52 23.52 23.52 23.52 23.52 23.52 23.52 21.52 23.52 23.52 23.52 23.52 23.52 Es-fill Price Project atea (f) 1,349.62 1,056.10 1,238.41 1,588.86 1,188.58 620.93 772.33 884.41 734.81 700.72 151.86 802.99 890.80 890.80 990.80 (f 1.550.651,199.07 1,403.91 2,137.63 1603.92 629.31 823.15 1.006.15 7P3.65 747.76 801.60 855.41 1,013.33 1.013.33 1,013.33 Palo teroel In 0t55/3.t Niverian, C.!.F. 3J.. 415.55 352.26 49M.11 734.78 400.42 166.S0 194.02 265.57 250.43 238.05 247.68 255.94 282.08 292.08 282.08 Ocean hteight 6 insurance 54.13 5l.98 56.94 64.99 53.61 45.66 46.60 49.03 48.51 40.09 48.42 48.70 49.59 49.59 49.59 F.O.B. Part lagn 561.42 300.78 441.17 669.80 346.81 120.94 147.42 216.54 201.92 189.96 199.26 207.24 232.49 232.49 232.49 F.0.0. Forl Kiang IF) 831.27 690.65 1.014.70 l.40.53 901.69 314.18 398.04 $84.66 N45.17 512.88 538.00 559.54 621.72 627.72 627.72 E port Dult If) 249.38 103.60 152.21 462.16 270.51 0.00 31.84 87.70 43.61 41.03 43.04 44.76 94.A6 94.16 94.16 felt ctidmes a transwrt IF) 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 IEt 33.81 33.81 33.81 33.81 33.81 33.81 33.91 33.83 33.81 33.81 33.81 33.81 33.81 33.81 33.81 fr sil price project area IF) 535.89 541.05 816.50 1,032.37 585.19 268.18 320.20 450.96 455.56 425.85 448.96 468.78 487.56 487.56 t87.56 tfi 71746 650. 1 s 'JO." 1,s06.J2 W.5' 280.37 364.23 550.85 511.36 470.07 S04t.9 525.73 593.91 593.91 593.91 fresh Fruit luncb h tIton) 201 ol oil Ł 4.51 ol Worne! If 253.84 235.SI 284.42 364.23 264.05 136.23 168.88 197.17 167.46 159.31 170.58 181.69 200.10 200.10 200.10 (El 546.03 269.37 324.92 495.33 359.84 138.48 181.02 226.02 179.14 171.11 183.01 194174 229.39 229.39 229.30 Pruresqlnq cost If) 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 3wAM IEl 26.40 26.40 26.40 26.40 26.40 26.40 26.40 26.40 26.40 26.40 26.40 26.40 26.40 26.40 26.40 Ft sill prire proicti area (f) 223.84 205.57 254.42 334.23 234.05 106.23 138.88 167.17 137.46 129.31 140.58 151.69 170.10 170.10 110.10 (IE 319.61 242.97 299.52 460.93 333.44 112.00 154.62 199.62 353.34 I44.71 156.61 168.34 202.99 202.99 202.99 /i 15UD's Jan 1990 Coodity Prices I price projeclious in constant 1985. Dollars adusled In cofnstant 3989 dollars using M1 indls. /7 Cowises freight liorlding btaherl - 1S540.00, fioanrial charges - 2.75t ijspte - 0.40t antd corml arrival loss - 0.251. insurance - 0.401 and norial strival loss - 0.75t IFI financal cost/price III ttinn uc cvot/pite. deterined by applying conversion tattors in Ancer 15 [able I on tbe tinancial estisates. rconpals awl 15 Taile 2 (hp 2 Pall oil 19% 1997 1998 1999 2000 2001 20 2003 2004 2001 2006 2001 2009 2009 2010 . ---- -------------------------- -- --- - -- ------ ------------------- - ------- ------------------ ------------- In 0151/ton N sian. 51 bulk. C.I.F. N.M. Furope It 403.1? 403.17 403.17 403.1/ 403.17 403.17 403.17 403.17 403.17 403.17 403.17 403.17 403.17 403.17 403.17 otean freight a ijosrance /2 53.71 S3.71 53.71 53.71 53.71 53.71 53.71 53.71 53.71 53.71 I 3.71 53.71 53.71 53.71 53.71 F "A. Port tlano 34Q.4& 349.46 349.4b 349.46 349.46 349.46 349.46 349.46 349.46 349.06 349.46 349.46 349.46 349.46 349.46 In /ton Foreign Etchange PAtp ?.7 2.1 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 F.0.S. Port llanq 943.54 943.5 943.54 943.54 943.54 943.54 943.54 943.54 943.54 943.54 943.54 943.54 943.S4 943.S4 943.St Erport Duty 47.19 47.18 47.18 47.18 47.18 47.18 47.10 47.18 47.18 47.18 47.18 47.18 47.18 47.18 47.10 Port charges S transport IF) 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 32.00 (IE 23.S2 23.S2 23.52 23.52 23.52 23.52 23.52 23.52 23.52 23.52 23.52 23.52 23.52 23.52 23.52 Et-sill rice Protect area (F) 864.36 864.36 864.36 864.36 864.36 064.36 864.36 864.36 864.36 864.36 864.36 864.36 964.36 864.36 864.36 (1) 020.02 920.02 920.02 920.02 920.02 920.02 920.02 920.02 920.02 920.02 920.02 920.02 920.02 920.02 920.02 Pals ternel In ;st$t Ion Nigerian, C.l.F. U.K. 243.55 243.55 243.55 243.55 243.55 243.55 243.55 243.SS 24355 243.55 243.55 243.55 243-55 243.55 243.55 Otean freight I insuranpu 48.28 48.28 49.28 48.28 48.28 48.28 48.28 48.28 48.29 48.28 48.28 48.28 48.28 48.28 48.29 FV.I.F. Fort tlano P15.27 1952 7 195.27 195.27 195.2, 105.27 195.27 195.27 195.27 195.27 195.27 195.27 195.27 195.27 1Q5.27 un In Htiton F.0.B. Port liano (F) 527.23 52W.23 527.23 527.23 527.23 527.23 527.23 527.23 527.23 527.23 527.23 527.23 527.23 527.23 527.23 Iwort Duty II) 42.18 42.18 42.18 42.18 42.18 42.18 42.18 42.18 42.18 42.18 42.18 42.18 42.18 42.18 42.18 tt.rt chatps S tvansPtort (F l 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.0 46.0 46.00 III 33.81 33.81 33.81 33.81 33.81 3 8! 33.81 33.81 33.81 33.81 33.81 33.81 33.81 33.81 33.81 t1 sill P:frp protept area IFl 439.05 439.05 439.05 439.05 439.05 439.05 439.05 439.05 439.05 439.05 439.05 439.05 439.05 439.05 439.05 (E) 413.4? 43.42 4`3.42 403.42 493.42 443.4? 493.42 493.42 493.42 493.42 493.42 443.42 493.42 493.42 493.42 fresh Fruit Bunch Iltttonl 20fl of oil 6 451 of kptnel IF) 192.63 192.63 192.63 192.63 192.63 192.63 192.63 192.63 192.63 192.63 192.63 192.63 192.63 192.63 192.63 (F) 206.21 206.21 206.21 206.21 206.21 206.21 206.21 206.21 206.21 206.21 206.21 206.21 206.21 206.21 206.21 frocesstnq cost (F) 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 IE) 26.40 26.40 26.40 26.40 26.40 26.40 26.40 26.40 26.40 26.40 26.4 26.40 26.40 26.40 26.40 Ftslal price rrtPtcrt a:ea (F) 162.63 162.63 162.63 162.63 162.63 162.63 162.63 162.63 162.63 162.63 162.63 162.63 162.63 162.63 162.63 IEI) 179.81 179.81 179.81 179.81 179.81 179.8! 179.81 179.81 179.81 179.81 179.81 179.81 179.81 179.81 179.81 Asz Is table!X FRO-FEWI MA MOsUPIr oM1Ti PiOJECT CIPtLEtON REPORT coca NICE stracrIua roroa (Dry Bean) 19JI hf2 1983 1984 1919 19M6 19 3 399 1991 1992 1993-95 M996-2000 In UstUton .. ... ... Daily average price, lln lork/Ltndo /a 2.739 2.3M2 2.993 3.330 3.096 2.422 2,133 1.582 1.238 949 949 97 I.046 1.55 tuality differenlial (less 10) 274 231 2S0 333 310 242 213 158 124 95 95 98 105 156 "rea freiqbt insoraute 68 68 68 68 68 68 68 68 68 68 68 68 68 68 F.0.6 Port Kiang 2,396 2.013 2,S45 2.929 2.718 2,112 1.052 1.356 1,946 786 786 8l 973 1.331 In "/ton Foreio Exchange Ratn 2.3 2.3 2.3 2.3 2.6 2.6 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 f.0.I Port aim S,SI, *.630 5854 6.737 7.W67 5.491 5,000 3.661 2,824 2.122 2,122 2,199 2.357 3.594 Port handlino & transport b IFI 50 So 50 50 S0 50 S0 s5 so so 50 50 so so (I) 37 37 37 37 37 37 37 37 37 37 37 37 5t 37 El dill price IF) 5,461 4.5* 0 5,.84 6.687 7,017 5,441 4,950 3,611 2.774 2,072 2,972 2.140 2,307 3,544 (EI 5.474 4.593 S.817 6.700 7,030 5.454 4,964 3,624 2,787 2. 2,085 2,153 2.320 5,557 Frocessino cost If) 350 350 350 350 3 350 350 IE) 308 308 308 308 308 308 308 Processinq naro ir (F l 546 459 580 669 702 544 495 (EI 311 311 3m 455 471 370 337 1I eill price IF) 4,565 3.772 4.873 5,668 5.965 4.547 4.IOS IEI 4,7as 3.474 S,314 5,937 A.245 4.776 4.319 /a 1IlD's Jmanry 13 Conodift Prices and price vrdi'ections in constant 1985 dollars adjusted to constant 1989 dollars using Mff inder. lb Port handling is J25Jnt and transport is also 225/et kc 10 of output price. (F) Fiawial cost/price (El Ecl mic tostlprice. determined by aplvinq conversiot tactors in Anet IS table 4 on the financial estimates. eutmOtorn - 77 - Annex 15 Table 4 MALAYSIA TRANS-PERAK AREA DEVELOPMENT PROJECT PROJECT COMPLETION REPORT Conversion Factors Labour 0.88 Land Clearing 0.82 Agricultural Inputs 0.91 Transport Equipment and Parts 0.85 Capital Equipment 0.86 Transport 0.79 Port Handling 0.68 Construction (general) 0.84 Road Construction 0.82 Harvestins 0.78 Fertilizers 0.89 Chemicals 0.88 Government Administration 0.82 operations During Economic Life of Estate 0.75 All Goods and Services (Standard Conversion Factor - SCF) 0.88 Source: National Parameters for Project Appraisal in Malaysia, M.D. Veitch, January 1986. factors - 78 - Annex 15 MALAYSIA-- TRANS-PFERAK AREA DEVELOPMENT PROJECT Table 5 PROJECT COMPLETION IREPOR 1 Consumer Price Index for Peninsular Malaysia (1980 = 100) 1981 109.7 1982 116.7 1983 120.3 1.954 125.1 1985 125.5 1986 126.4 1987 127.8 1988 131.3 .1 .9t39R 136 .13 Source: Economic Report, Ministry of Finance Malaysia 1983/4, 1985/6 and 1989/90. Price - 79 - Annex 16 HALAYSIA ----- TRANS-PERAK AREA DEVELOPMENT PROJECT Table I PROJECT COMPLETION REPORT Crop Production Budget - Rehabilitated Padi (MS per hectare) Itess With Project I Without Project Contract uperations Finan. Econ./1i Finan. Econ. /1 O-- Land Preparation 125 103 130 106 Harvesting 148 115 126 98 Transport 104 82 190 1 Sub-total 377 300 1 346 215 Labour Mandays /2 Hlater Management 2.0 (8.0) Bund Maintenance 0.5 (5.0) Seeding (motor blower) 0.5 (0.5) Fertilizer Application 1.0 (1.5) Pest Control 1.0 (2.0) Weeding 1.0 (3.u) Sub-total 6.0 (20.0)x$12/sdy 72 63 240 211 Inputs Unit .'plication Unit Rate /2 Cost Seeds kg/ha 80 (50) 0.95 76 1 48 NPK Mixture kg/ha 189 (200) Subsidy 0.62 - - Urea l/II kg/ha 99 (100) Subsidy 0.46 - I NPK Compound kg/ha 50 (-) 0.55 28 1 Paraquat I/ha 3 (3) 6.20 19 1 19 2,4-D Asine 1/ha 1.5 1-) 7.00 11 1 - Furaowq 26 kg/ha - (20) 2.25 - I 45 Sevin 85 1/ha - (1) 9 - 9 Propanil 1/ha 5 (-) 13.00 65 - Carbofuran kg/ha 20 (-) 1.87 37 1 - Zinc Phosphide kg/ha 0.3 (0.2) 8.24 2 2 Sub-total 238 364 123 266 TOTAL 687 727 709 752 /1 Conversion factwrs applied as follows: land preparation - 0.82, harvesting - 0.78, transport - 0.79, labour - 0.88, agriculture inputs - 0.91). /2 Figures in parentheses show the 'without project' labour requ--ement and input application rates, taken froa Reformulation Report, Annex 3 Table 3. annexl6a - 80 - Annex 16 MALAYSIA rable 2 1RANS-PE.RAK AREA DEVELOPMENT PRO'ECT i'RUJ :XT COMPLETION REPORT Irop Production Budqet - Mechanised Padi wost per hectare) Ltems Coritract Operat.ions Ms/ha Land Preparation 190 Land Le--ailing 60 Water & Bund Management 110 seeding 30 F ertilizing 42 Weed Control 90 Pest Control 88 Harvesting 185 Transport & Handling 190 Sub-total 995 (739) Inputs Application Unit Rate Cost Seeds 80 kg/ha 0.95 95 Limestone Dust 2 tons/2 season 50.00 50 NPK Mixture 198 kg/ha Subsidy - (112) UJrea I/II 99 kg/ha Subsidy - (41) Urea Supplement 50 kg/ha 0.48 24 NPK Compound Supplement 50 kg/ha 0.70 35 Paraquat 2.0 lit/ha 6.22 12 2,4-D Amine 2.0 lit/ha 6.40 13 Thiobencarb 33 kg/ha 2.20 73 Londax 0.4 kg/ha 125 50 Carbofuran 20 kg/ha 1.87 37 Zinc Phosphide 0.5 kg/ha 8.24 4 Drat 0.2 lit/ha 41.00 8 Sub-total 401 (518) TOTAL 1,386 (1,257) N.B: Economic cost in parenthesis. (Conversion factors applied as follows:- contract operations - 0.75, inputs - 0.91). annexl6b - 81 - Annex 16 MALAYSIA -------- TRANS-PERAK AREA DEVELOPMENT PROJECT Table 3 PROJECT COMPLETION REPORT Crop Production Budget - Oil Palm ("$/ha) Years 4 S 6 7 8 9-10 11-15 16-20 20-25 operating Costs material Inputs (HS) Fertilisers 220 250 280 300 330 330 300 250 200 Chesicals 70 50 50 50 40 40 30 20 15 Tools 20 20 20 20 20 20 20 20 20 Transportation of ffb 45 85 135 220 290 350 390 340 305 Sub-total 355 405 485 590 680 740 740 630 540 (311 ) 351 ) 417 )( 502 576 623 ) 619 )( 526 ) 450) Labor Inputs (man-days/ha) Maintenance 40 35 35 35 30 25 20 15 15 Harvesting 5 15 20 20 25 35 35 30 30 Sub-total (mandays/ha) 45 50 55 55 55 60 55 45 45 Vaws at S12.00/mdy 540 600 660 660 660 720 660 540 540 (475 )( 528 )( 581 )( 581 581)4 634 )( 581)4 475 475 Total Operating Costs 895 1,005 1,145 1,250 1,340 1,460 1,400 1,170 1,080 4786 ) 879)4 998 )(1,083 )(1,157 (14,257 )(1,200 )(1,001 ) 925) N.B: Economic cost in parentheses (derived by applying conversion factors of 0.89 for fertilizers, 0.88 for chmeicals, 0.90 for tools, 0.79 for transportation and 0.88 for labour). cropbgt - 82 - Annex 16 HALAYSIA TRANS-PERAK AREA DEVELOPHENT PROJECT Table 4 PROJECT COMPLETION REPORT Crop Production Budget - Cocoa (N$/ha) Years 4 5 6 7 8 9-10 11-15 16-20 21-25 Operating Costs Haterial Inputs (H$) Fertilisers 640 b40 640 640 640 640 640 640 640 Chesicals 250 250 200 200 150 150 120 120 120 Transportation of cocoa beans 5 5 10 10 15 15 20 20 20 Sub-total 895 895 850 850 805 805 780 780 780 793 )( 793 )( 753 )f 753 )( 713 ( 713 )( 691 )( 691 )I 691) Labor Inputs (ian-days/ha) 55 55 55 55 60 60 60 60 60 Wages at S12.00/ady 660 660 660 660 720 720 720 720 720 581 )( 581 )( 581 )( 581 )( 634 )( 634 )( 634 )( 634 X( 634) Total Operating Costs 1,555 1,555 1,510 1,510 1,525 1,525 1,500 1,500 1,500 (1,374 )(1,374 )(1,334 )(1,334 )(1,347 )(1,347 )(1,325 )(1,325 )(1,325 N.f: Econosic cost in parentheses (derived by applying conversion factors of 0.89 for fertilizers, 0.88 for chesicals, 0.79 for transportation and 0.88 for labour). bgtcocca NlkAYSIA ADM 17 JRANS-PEW RUEA KVIEt81I PFOJECt PROECT tCftEEION REPORT (FMes 1) Settlers CasA Flu 2S'000) 1985 1986 1927 1988 1989 199D 1991 1992 93 1i94 195S 1996 1997 19C. 199 1. REWfIIIJI 1.1 Fadi total Production lot) 35.042 35,912 37,901 37.871 39.666 39.890 39,890 39D,0 39.89e 39.89D Sal"e Value al tSrdOIl 1,399 1.801 6.573 9.60. 25,ttl 2.1?3 23,702 24.421 24.995 26.180 26.327 26.327 26.327 26.327 26.327 Flo Frodscteia (Idl 49,257 5,547 10.971 128,048 148,445 160.555 166,003 166.743 164,057 161.802 Sales Value Illtl 374 500 1,211 2.63, 6,192 5,61S 9.519 14,641 20,872 24,197 2s.047 25.0R6 26,012 2S,71^ 25.2t1 2.3 Cocoa lotal Production ()tu 186 32S 522 714 899 1,060 1.197 1,296 1,357 1.380 Sales Value (I21) 280 490 819 1,227 1,S45 1.822 3.390 3.670 3.843 3.908 VItA RfvEAtt 1.773 2.301 7,184 12,?44 21.903 29,023 33.711 39,881 47.094 51,922 53,196 55,613 56,009 S5.888 55.476 2. Lapeoses 2.1 PFruution eosl ltaterials 878 3,6J41 ,097 5.714 14.770 14.080 14,30 14.520 15.300 IS,SS IS ,363 15.342 15.173 15,359 IS,326 - tabour 1,073 1.264 1.546 4,213 4,534 4,930 6,128 7,1S 7.518 7,681 8,46 8,55 8.S75 8.575 8.S7$ 2.2 lakat (IC! of padi sa!l% valuel 140 180 657 961 1,571 2,313 2,370 2.442 2,500 2,618 2.633 2.633 2.633 2,633 2,633 co 2.3 later charqes and land tax 106 186 106 420 420 420 420 425 42S 425 425 425 425 2.4 Advanes 9 [ 170 242 484 2.5 Sub-total 2.,01 5,175 7.576 11.316 21,465 21,743 23,218 24,49? 25.738 26,309 26.885 26,958 27.f08 26.992 26,959 3. Cash flot Seinte filfitill frpmetq 13291 10,9742 20? 2: CH 1,2M0 20,493 15.384 2t.357 25,613 76.111 20,655 29,003 28,096 78.517 4. tess: laos repaveent 4.1 Land Develoonaet 363 858 I a 1.566 1,304 2.341 2.341 3.103 3.103 3.103 3.103 5,399 S,39 5.399 5.39 4.2 Settler bouunq 432 432 702 701 701 701 72l 702 701 701 702 701 701 269 269 4.3 Sub-lolal 795 1,210 804 2.267 2,005 3.042 3.042 3,804 3,804 3.804 3,804 6.100 6,100 5,6&8 S,668 S. net iocose after loan repayment (1,1131 (4.144) 1596) (1,3391 (1,5671 4,238 7,451 11,S5O 17.553 21.,09 22.507 2 ,555 22,nts 23,228 22,849 6. islaae (/I - (,1132 65,25,) (5.853) (7,1,92 (8,759) 4,521 - - - - - - - t. Disiribution ol dividends - - 2,930 1.580 17,553 22,809 22.507 22,555 22,903 23,228 22,849 v. Per Setitler Amual Infcoe tiJ) . . .... ..... .. .. ....... v. Oivideud. 732 2,895 4,388 5,452 5.627 5,639 5.726 5,807 5,712 ' 2 MaQe' 3,576 4,213 5,254 5,220 S.618 6,109 7,593 4.143 3.59 3,841 4,232 4.279 4.28) 4,287 4.280 '.; tolal 3,5tt C,M1 5,154 S5,220 5.618 6.109 8,325 7,638 8.147 9,293 9,859 9.918 10,013 10.094 9.999 .. ... ...... .. ... ... .... .. ....... ........ ..... ... ............. ... . ........... .... -- -- -- - - - - - - - - -- - - - - - - - - - - - - - -- - - - - - - - - - - - - - ttP-1. f tiqes frog 19S-19"9 are based ot attual data. 2. Sales valuec tor fF8 Ironm 1985-I98 include cocoa value. J. Settile labor req.irewent is assued to be - t00roa I198-519A7; 80l froe l90 2992: 2500 for I12 and assused to be ?OxiO trom 1293 onvards. 4. Ptvadpnde are distrit.uled t600r 4.00!' shateholel r. bAnn 1 (Pag 2) 2000 2001 2002 2003 2004 2005 2006 2007 2003 2009 2010 1. REVEtil 1.1 Padi Total Prodwctiom (at) 39,890 39s8s 39,s00 39.890 39,890 39,89 39.6s0 39,990 39,100 39,990 39s990 Sales Vatle at S66Oiat. 26,327 26.327 26.327 26.327 26,327 26,327 26.327 26.327 26,321 26.327 26.327 1.2 FFi FFS Prodetioa fatl 158,493 15c,003 151,448 147893 144,338 140,783 137,228 133,673 130,118 123,990 118,860 Sales Valuie nl) 24.725 24,180 23.62o 23.071 21,893 21,962 21,40 20,853 20,299 19,342 18.542 1.3 Cocoa Total Production (at) 1.367 1,320 1,257 1.193 1,126 1.060 994 92) 861 797 733 Sales Value (of) 3,871 3.738 3,560 3.379 3,189 3.002 2,8S 2,625 2,438 2,25) 2.076 I'lAI REWIFfE 54,923 54.245 53.513 52.777 51.409 51.291 50.550 49,805 40,063 47,926 46.945 2. ErPsses 2.1 Production yost - taterials 15.190 14,842 14,729 14,682 14,644 14,444 14,237 14.144 14,129 14,121 14.109 - labour 8,575 8,575 8.575 8,575 8.575 8.575 8,575 6,575 8.575 8.S75 8.575 2.2 lakat (1ot of padi sales value) 2.633 2,633 2.633 2.633 2,633 2.633 2.633 2,633 2.633 2.633 2.633 2.3 later cbairqas and land taa 425 425 425 425 425 425 425 425 425 425 425 2.4 Advances 2.5 Sub-total 76.733 26.415 2i.362 26,315 26.277 26.077 25.870 25.777 25.762 25.754 25.742 3. Cash Flou leSefe Financial Expenses 28s190 27,770 r7.151 26,40. 2c.132 25,214 24,690 24,028 23,301 22,172 21.203 4. Less: loan repraset 4.1 Laad Developent 5.399 5.399 5.39 5,399 5,399 3.8219 3.29 2,154 2,154 2,154 1.303 4.2 Settler housino 4.3 Sub-total ,39 5.399 5.399 5.399 5.399 3.829 3,829 2,115 2.154 2,154 I.8 5. Net iocose after loan repavyent 22.791 22,371 21.752 21.063 19.733 21,385 20,851 21.874 21,147 20,018 19.820 6. Salue cit - - - - - - - - - - - 7. Distribution of dividends 22.m7 22,371 21,752 21,063 19.733 21,385 20,851 21.874 21.147 20.018 19,820 9. Per Settler Annal Incone (NAP ". I ivid#nd 5,698 5,593 5.438 5.266 4,933 5.346 5.213 5.469 5.287 S.OP 4.9SS 9.2 hes 4.287 4,287 4.287 4.287 4,287 4.287 4,207 4,287 4,287 4.27 4.287 9.3 total 9.985 9.880 9.125 9,553 9,220 9,633 .SIIQ 9,756 9.574 9.2M2 9.242 ..- I------- ----- ---- .. --- ---- ----- ----- ---------------- -- ----- -------- --- - --_------- ---------- - 85 - Annex 13 MALAYSIA [RANS-PERAK AhEA DEVELOPHENT PROJECT PROJECT COMPLETION REPORT Economic Costs And Benefits: Agricuitural Component (t$1$000) Cost Benefits Net rear ----------------------------- ---------------------------------- Benefit capital id U & N /b Total Padi OIil Pale Cocoa fotal 1981 7,465 2,365 9,830 - - - - (9,830) 1982 8,930 482 9,412 - - - - (9,412) 1983 11,527 385 12,412 40 - - 40 (12,372) 1984 2,115 2,101 10,216 291 219 39 549 (9,667) 1985 1l,692 1,395 18,087 709 864 100 1,673 (16,414) 1986 25,276 o,661 31,937 2,903 559 178 3,640 128,297) 1987 18,388 10,590 28,978 7,907 1,547 128 ',582 (19,396) 1988 1F.177 12,036 29,213 9,722 3,186 89 12,997 (16,216) 1989 1i.643 19,636 31.279 22,450 7,337 298 30,085 (1,194) 1990 1,313 22,8W5 24,178 20,683 7,128 388 28,199 4,021 1991 1,991 24,307 26,298 20,350 11,518 b78 32,546 6,248 1992 697 25,430 26,127 19,120 16,997 1.125 37,242 11,115 1993 378 2t,527 26,905 21,124 25,993 1,656 48,773 21,868 1994 27,383 27,383 22.119 30,133 2,086 54,338 26,955 1995 27,612 27,412 22,203 32,592 2,459 57,254 29,842 1996 27,308 27,308 21,920 29,849 4,258 56,027 28,719 1997 27,289 27,289 21,920 29,982 4,608 56,510 29,221 1998 27,218 27,218 21,920 L9,643 4,828 56,391 29,173 1999 27,140 27,140 21,920 29,093 4,907 55,920 28,780 2U00 2b,684 26,684 21,920 28,498 4,861 55,279 28,595 2001 26,189 26,189 21,920 27,871 4,695 54,486 28,297 2002 25,973 25,973 21,920 27,232 4,470 53,622 27,649 2003 25,911 25,911 21,920 26,5S2 4,243 52,755 26,844 2014 25,8b6 25,866 21,920 25,953 4,007 51,880 26,014 2005 25,671 25,671 21,920 25,314 3,770 51,004 25,333 2006 25,466 25,466 21,920 24,675 3,534 50,129 24,663 2007 25,382 25,382 21,920 24,035 3,297 49,252 23,870 2008 25,368 25,368 21,920 23,396 3,061 48,377 23,009 2009 25,361 25,361 21,920 22,294 2,834 47,048 21,687 2010 t32.398) /c 25,351 (7,047) 21,920 21,372 2,607 45,899 52,946 IRR 10.24% NPV at 10 X: M$ 2,375 /a Excluding cost of housing, settleient infrastructure, and West Coast Highway. /b Includes administration and engineering costs. /c A salvaqe value equai to 25Z of original capitai cost is assumed. am-n aIU smwnut ot,iCt nuu ot mes l$stlXt alt" ItUs poin 3111101 ~ ~ ~ ~ ~ ~ ~ ~ ~~UCI0163SUAIO 33 1219~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 ... 1iv I _as no t siccr Z 1MAIAL s,les aLt 0 I$1 sitpol Itn SEIIol attlnas TE1ICIUAIL 'Inl _F__ I OFFICE all? I clivi't~~~~~~~~~~~~~~~~o~wuo~ie 4 flTifiS I ulmn I OIT UES]SETLEhIImET IITEIOEVOFEU __APPI - . '$ Of E TPI sfle 1?PtIL 11153tCU IWn Itt alV 4~It.l I__~~"~ I_.___IUIA 2~~~ 2 5 91 A SJI "tE. I Cll f,F I IBRD 22846 MALAYSIA TRANS-PERAK AREA Non-FELCRA Areas tC(P h 41lSl ' ', ;'/ Lililli't\j==\% | < Rehabilitated Pct i Area 4015' _J9* L~. J