Document of The World Bank FOR OFFICIAL USE ONLY Report No. 4299-TU STAFF APPRAISAL REPORT TURKEY IGDIR-AKSU-ERECLI-ERCIS (IAEE) IRRIGATION PROJECT May 13, 1983 Europe, Middle East and North Africa Regional Projects Department 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. CURRENCY EQUIVALENTS US$1 = Turkish lira (TL) 195 la TL 1 = US$0.0051 TT. 1,000,000 US$5,128 WEIGHTS AND MEASURES 1 kilogram (kg) 2.20 pounds 1 metric ton 1,000 kilograms 1 metric ton 0.98 long ton 1 meter (m) 1.09 yards 1 kilometer (kin) 0.62 mile 1 hectare (ha) 2.47 acres 1 decare = 0.1 ha 0.25 acre 1 square kilometer (km2) l00 ha 0.386 square mile 1 liter (1) 0.264 gallon ABBREVIATIONS DSI - General Directorate of State Hydraulic Works of MPNR GDAA - General Directorate of Agricultural Affairs of MAF GDPPQ - General Directorate of Plant Protection and Quarantine of MAF GDVS - General Directorate of Veterinary Services of MAF IBRD - International Bank for Reconstruction and Development (World Bank) ICB - International Competitive Bidding IDA - International Development Association MAF - Ministry of Agriculture and Forestry HIPNR - Ministry of Power and Natural Resources MVA - Ministry of Village Affairs O&M - Operation and Maintenance PPAR - Project Performance Audit Report SAL - Structural Adjustment Loan SEE - State Economic Enterprise SEI'ER - Turkish Sugar Factories, an SEE SMS - Subject Matter Specialists for the Extension Service SPO - State Planning Organization T&V - Training and Visit System of Agricultural Extension TCZB - Agricultural Bank of Turkey TMO - Soil Products Office, an SEE TOPRAKSU - General Directorate of Land and Water Conservation of MVA TZ - Provincial Extension Services Arm of GDAA TZDK - Agricultural Supply Organization, an SEE FISCAL YEAR Government of Turkey - March I to February 28 SEEs and TCZB - January 1 to December 31 /a Exchange rate for March 1983 FOR OFFICIAL USE ONLY APPRAISAL OF IGDIR-AKSU-EREGLI-ERCIS (IAEE) IRRIGATION PROJECT TURKEY Table of Contents Page No. 1. THE AGRICULTURAL SECTOR I A. Project Background 1 B. Agriculture in Turkey I II. INVESTMENTS IN IRRIGATION INFRASTRUCTURE 3 A. Background 3 B. Total Irrigated Area and Potential 4 C. Key Constraints 5 D. Cost Recovery 8 E. Performance Under Previous Projects 9 F. Project's Role 11 III. THE PROJECT AREA 11 A. Igdir Irrigation Scheme 11 B. Aksu Irrigation Scheme 14 C. Eregli Irrigation Scheme 17 D. Ercis Irrigation Scheme 20 E. Agricultural Supporting Services 21 IV. THE PROJECT 24 A. Objectives and Brief Description 24 B. Description of the Project 24 C. Water Requirements, Availability and Quality 26 D. Water Rights 28 E. Status of Engineering 28 F. Cost Estimates 28 G. Financing 29 H. Procurement and Retroactive Financing 29 I. Implementation Schedule 31 J. Disbursements 3L K. Environmental lmpact 33 V. PROJECT IMPLEMENTATION 33 A. Organization and ManageTnent 33 B. Staffing and Training 36 C. Government Land 37 D. Monitoring and Evaluation 37 E. Irrigation Strategy Review 38 F. Accounts and Audit 39 G. Cost Recovery 39 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. Page No. VI. PRODUCTION, MARKETING AND FINANCIAL ANALYSIS 39 A. Crcp Areas, Cropping Patterns and Yields 39 B. Production and Markets 43 C. Farmers' Incomes and Financial Analyses 47 VII. BENEFITS AND JUSTIFICATIONS 51 A. Beneficiaries and Employment 51 B. Economic Rate of Return 51 C. Other Benefits 55 D. Project Risks 56 VIII. AGRERENTS AND RECOMMENDATIONS 56 ANNEXES 1. Equipment Requirements 59 2. Detailed Cost Estimates 64 3. Procurement: Requirements 68 4. Work Prograim 71 5. Disbursement Schedule 72 b. Terms of Reference for Irrigation Strategy Review 73 7. Selected Documents and Data Available in the Project File 76 CHARTS AND MAPS IBRD No. 24416 linplementation Schedule Chart 78 IBRD No. 24417 Organization Chart 79 IKRD No. 16804 Project Area Map, Igdir Scheme (West) IBRD No. 16859 Project Area Map, Igdir Scheme (East) IKRD No. 16805 Project Area Map, Aksu Schemne IBRD No. 16806 Project Area Map, Eregli Schemae IBRD No. 16807 Project Area Map, Ercis Scheme TLiRKEY IGDIR-AKSU-EREGLYL-ERCIS (IAEE) IRRIGATION PROJECT I. THE AGRICULTURAL SECTOR A. Project Background 1.01 In its current economic reform eFfort, the Government is seeking to increase export earnings, reduce inflation, improve the efficiency of public sector investment, accelerate technological change and increase the role of market forces in the economy by reducing subsidies, maintaining a realistic exchange rate, limiting monetary expansion, reducing price controls, changing the price system and other measures. Since irrigation accounts for almost two-thirds of Government expenditure in agriculture, efforts are underway to rationalize the investment program, concentrating first on irrigation projects already under construction which could produce quick-yielding results. The proposed project originated with government's request to the June 1980 Agricultural Sector Identification Mission for Bank financing to assist completion of irrigation schemes under construction. Consideration of the project was made possible by changes in Government policy for the irrigation subsector to concentrate resources on a few priority projects to accelerate their completion and by measures to imaprove cost recovery. 1.02 Four irrigation schemes were selected and the preparation of the IAEE irrigation project was undertaken under the leadership of the General Directorate of State Hydraulic Works (DSI) with the assistance of the FAO/IBRD Cooperation Program. This report is based on the findings of an appraisal mission which visited Turkey in September 1982. The mission consisted of Messrs. S. R. Freiberg, W. E. Roell and Ms. S. Tillier (Bank), and Mr. M. Fireman (Consultant). B. Agriculture in Turkey 1.03 While the importance of the agricultural sector in the economy is declining, it still represents about 20 percent of the GDP, about 40 percent of exports, and about 60 percent of employment (See Annex 7 Sector Studies A-1, 2, 3, 4 and 8). It also supplies much of the raw materials for industry. Growth in agricultural production is of major importance in expanding foreign earnings and providing employment for Turkey's growing labor force. 1.04 Performance. Throughout the 1970s, agriculture was assigned a subordinate role to industry pursuant to the inward-oriented growth strategy adopted by Turkey during those years. Its primary role was to supply low cost inputs to industry and guaranteed food supplies for the urban work force. Although agricultural commodities accounted for a significant though declining - 2 - share of total exports in the 1970s, sectoral exports as a fraction of total production were quite low and far below potential, which mirrored the generally poor export performance of thie economy. At the samne time, the import content of production increased, a6ain mirroring patterns in the non-agricultural sector, as a result of programs which encouraged fairly indiscriminate agricultural mechanization and use of chemical inputs. 1.05 The seztor did not benefit as much as other sectors from the public investment drive of the 1970s, which gave rise to the strong non-agricultural growth rates experienced between 1972-1979. Much of the public investment which occurred, mainly in the irrigation subsector, gestated very slowly because resources were spread thinly over an excessive number of projects. As a result, the principal instruments of policy became a combination of budgetary and financial subsidies to guarantee high producer prices, low cost inputs and cheap credit in order to stimulate agricultural production and private investment in the sector. These incentives induced good production and investment performance until about 1975, but could not be sustained during the late 1970s as a result of the strain placed on the budget, the banking system and the competing demands for resources from the manufacturing sectors. 1.06 The effects of these policies on agriculture are manifested in the figures for sectoral GDP, export and investment during the 1970s. Between 1972 and 1979, real agricultural GDP increased at an annual average rate of 3.3% p.a., averaging higher at 4.7% p.a. from 1972-75, and falling off to 1.4% between 1976-79. As a result of disproportionately slower growth, the sector's share in real GDP declined from 25.0% in 1972 to 21.7% in 1979. Sectoral exports during this period increased by about 11% p.a. in US$ terms (less in real terms), which is quite low considering the very small proportion of total sectoral production actually exported. 1/ 1.07 Sectoral fixed investment (FI) manifested trends similar to agricultural GDP in the 1970s. It increased at an annual average rate of about 18% p.a. between 1972-75, then declined by about 17% p.a. between 1976-79. Moreover, the composition of Fl changed. During the early 1970s, the investment drive in the sector was fueled by private investment, whose share in agricultural FI expanded from 50% in 1972 to 61% in 1975. Thereafter, private capital formation fell off even more rapidly and, by 1979, its share was only about 44%. 1.08 With the imposition of crisis management measures by the Government in 1980 and 1981, much of the incentives apparatus put in place for farmers during the 1970s was abruptly dismantled. Of particular note is the sharp reduction of inputs subsidies, the reduction in number of production price supports, the gradual conversion of the remaining supports from artificially high incentive prices to floor prices, and the enforcement of constraints on the availability of subsidized agricultural credit. These, coupled with 1/ Agriculture's share in total exports, however, fell from about 61% in 1972 to 59% in 1979 as a result of the inward-oriented policies. As a fraction of agricultural GDP, agricultural sector exports amounted to less than 1% in 1979. - 3 - deflationary demand management and the new export incentives, have forced exporters and the more commercial farmers to seek out foreigrn marketing opportunities. They have done so with some vigor. An inevitable consequence of the adjustment process, however, was to throw the agricultural sector into disarray, from which it is just now beginning to emerge. As a result, the growth of agricultural GDP in real terms fell to 1.5% p.a. in 1980 and further during 1981 co only 0.5% p.a. Aided by good weather, but also amidst strong indications that farmers are now adjusting to the new realities of farm management in Turkey--including considerably less subsidization, and greater exposure to market deternined prices--the growth of real agricultural GDP is expected to recover somewhat in 1982 (due in part to good weather) with agricultural value-added growth estimated at 4.7 percent. In contrast with sector production performance, agricultural exports during 1980 and 1981 jumped to unprecedentedly high levels in response to the new exporter incentives, increasing by an annual average rate of 29% over the two-year period. Export growth continued at a lower level in 1982 amidst some indications that the diversion of existing production to foreign markets is being replaced as a source of export growth by a genuine supply response to the higher valued marketing opportunities which exporting presents. 1.09 The encouraging sectoral export performance since 1980 represents a long overdue change in price policies and the foreign trade regime. These must also be supported by strong institutional measures to foster a continuous growth in the factor productivity of agriculture which include both technology generation and its dissemination to farmers, more effective public investments and higher levels of private capital formation, the provision of credit to encourage the uptake of improved technology at the farm level, and improvements in marketing and inputs distribution systems. A more effective irrigation development program is an integral part of the strategy since it will allow increased cropping intensities and higher yields at reasonable costs. II. INVESTMENTS IN IRRIGATION INFRASTRUCTURE A. Background 2.01 Public investment in the agricultural sector has consistently favored capital expenditures for physical infrasture. Thus, 55-65 percent has been allocated for infrastructure historically, mainly for the construction of large reservoirs, dams and water distribution systems by DSI, plus smaller works by TOPRAKSU. The high rate of growth of agricultural GDP up to 1975 partially reflects the emphasis on irrigation infrastructure and technical progress through the increased use of fertilizer, improved seeds, mechanization, etc. These in combination also have steadily increased the net contribution of irrigated agriculture to aggregate crop production. Although area in irrigated crops represented about 11 percent of total crop area (excluding fallow) in 1977, output accounted for roughly 39 percent of the total value of crop production. With continued development of irrigation the latter ratio, by 1990, could increase to more than half of the total value of crop production, while about 55 percent of the incremental crop exports would derive froTm the continued exoiansion of the irrigated area and its more intensive use. 1/ 2.02 In man37 respeccs, however, irrigated agriculture has operated well below its capacity. For a number of reasons, including incomplete on-farm development, iess than 70 percent of the presently irrigable land is cultivated under irrigation. In addition, the net value of output has been reduced by suboptimal yields of irrigated crops (such as horticultu-ral and most industrial crops) due to inadequate O&M and inefficient research and extension services. Increases in output of irrigated crops have therefore lagged behind the expansion of irrigated areas, while progress of irrigated agriculture has been further stifled by the slow rate of completion of ongoing projects. During the last few years, especially since the sharp decline in public investment in agriculture beginning in 1977, the expansion of irrigated area has slowed down from a previous average of 50,000 ha annually to less than 20,000 ha in 1979. This led to a large backlog of incomplete and stalled projects, concommitant sunk costs, and the resultant squandering of the limited resources available for irrigation investment (see paras 2.06-2.07). Therefore, current priorities lie in the completion of irrigation schemes, on-farm development and the improvement of supporting services in commanded areas. B. Total Irrigated Area and Potential 2.03 Estimates of the area of 'irrigated' land in Turkey center on a figure of about 3 million ha. 2/ Much depends on what is considered to be irrigation (e.g. cLoes one application of water per crop count as 'irrigated') and on how much privately-financed irrigation operations exist. About 1.1 million ha are served by large-scale irrigation facilities built by DSI; however it is estimated that on-farm development works (such as land levelling, drainage facilities and on-farm distribution systems, which are under the responsibility of TOPRAKSU) bave been completed on only about half of this area. An additional 0.9 million ha is served by small-scale facilities developed totally by TOPRAKSU. A total of about 2.0 million ha is thus under the c,m-aand of public (DSI and TOPRAKSU) irrigation infrastructure, with about 1.4 million ha fully equipped with on-farm works to make efficient use of this infrastructure. Very little is known about private irrigation development, except that its growth in recent years has been less important than construction of public irrigation. 2.04 According to TOPRAKSU an additional 5.7million ha could be irrigated, thus bringing the total irrigated area to 8.7 million ha, Although 1/ Report No. 4204-TU, "TURKEY - Agricultural Development Alternatives fcr Growth with Exports (January 28, 1983 - green cover draft). 2/ The total irrigated area reported by TOPRAKSU's Land Use and Capability Study is 2.99 million ha; according to the 1980 Census of Agriculture it would be now about 3.23 million ha, while DSI estimates the total irrigated area at 3.99 million ha (of which 3.81 million ha from surface water sources and 0.18 million ha from groundwater sources). - 5-- the figure of 8.7 million ha is considered feasible by both DSI and TOPRAKSU under present technology, it is likely that only a smaller area could be developed economically since this figure has been derived from very crude national averages of land slope and water availability and is not based on economic criterion, nor was the estimate constructed from regional or watershed-specific hydrological and topographic surveys. Irrigation development has been concentrated in the Mediterranean and Aegean regions, while the South East and the Marmara regions are the ones having the largest undeveloped potential. 2.05 The Government is presently giving emphasis to the completion of on-farm works in area already served by major infrastructure, and the proposed project would provide technical and capital assistance for this purpose. However, TOPRAKSU still does not have sufficient capacity to complete all the on-farm works needed on large projects constructed by DSI, and DSI is still proceeding with the construction of new large-scale works under an indicative annual program of about 130,000 ha p.a. TOPRAKSU estimates that with some staff augmentation and training, it could presently supervise completion on about 100,000 ha per year. C. Key Constraints 2.06 Investment Programming. A major constraint to further irrigation development is the absence of a capability to systematically program public investments for the subsector. DSI's and TOPRAKSU's project selection and evaluation criteria primarily emphasize technical considerations; both have had difficulty responding to the new exigencies of public investment mandated by the economic stabilization program, viz. a concentration of future investments on quickly gestating projects with high economic returns. The problem has been further exacerbated by a lack of coordination between DSI and TOPRAKSU at the planning level. As a result, the agencies have tended to carry out their annual work programs for service area development independently. 2.07 The ad hoc nature of irrigation investment planning is typified by the summary lists of projects prepared for the annual public investment budgeting exercizes. These are sparse in content and devoid of the kinds of indicators which an in-depth review of the application of sectoral priorities and subsequent monitoring of progress would require. Furthermore, neither the construction agencies, nor the SPO presently have a capability of improving the situation. This has hampered the Government's nonetheless serious effort to focus public expenditures on fewer irrigation projects in 1981 and 1982 and has resulted in near total emphasis on the scaling-back of financial aggregates in real terms, which has been supported only by rather crude attempts to modify the existing portfolio in order to hasten the rate of completion. 2.08 The pattern of adjustments since 1980 is instructive. At the height of the economic crisis in 1980, DSI's resources were spread thinly--over 142 irrigation, drainage and flood control "projects" serving an undetermined number of ha. The severity of the crisis mandated a complete portfolio review, a reassessment (indeed, simply an initial estimate) of the economic - 6 - viability of its contents, and a subsequent reordering of priorities. This was not even attempted in 1980 for a number of reasons, through an important consideration was the fear of subsequent liability should outstanding contracts be unilaterally impaled by DSI. Moreover, the DSI--which was allocated about 90 percent of the budget for water resources development in 1980--also had neither the staffing and institutional capability to systematically review its operations and it is questionable whether in 1980 this politically entrenched entity had yet acknowledged the necessity of such a review. 2.09 By 1981, however, the need had become abundantly clear; adjustments were made to DSI's portfolio under the guidance of the SPO and the Ministry of Finance. The preliminary list of 1981 projects contained 133 investments 1/ of which 14 were slated for completion in 1981. The total allocation was TL 27,050 million. Subsequently, the list (see Project File) was revised, when one major project was dropped, 5 received token allocations to avert litigation, and others were scaled back. The final approved program for 1981 thus contained 108 projects in the amount of TL 22,451 million, covering some 965,800 ha in total, of which 85,681 ha were to be completed in 1981. Under the 1982 program for DSI, the completion schedule was further accelerated by assigning token allocations to 8 more projects and markedly augmenting the allocation for about 25 of the smaller ones. The final budget in 1982 thus contained 95 projects and an allocation of TL 33,020 million. 2/ As a result, 70,341 additionaL ha were scheduled for completion in 1982, while the indicative completion figures for 1983 and 1984 were enlarged to abouit 253,000 ha for the two years. 2.10 Construction Capabilities. Although these rates of irrigation development are roughly in line with the annual rate of 80,000-100,000 ha projected as being necessary to achieve performance possibilities from irrigated agriculture noted above growth and export targets (para 2.01), it is by no means certain that DSI has design and supervision capacity to attain these targets in view of recent staff attrition to the private sector. Nor have DSI (or TOPRAKSU) done the requisite programming and budgetting analysis to establish a benchmark for comparison with its present capabilities. Moreover, the per hectare "completion" figures cited above refer to hectares scheduled to be brought under the command of DSI-constructed headworks and distribution canals; such, generally, are not synonomous with the provision of service to farmers' fields, which also requires the completion of associated field channels and on-farm works by TOPRAKSU. 2.11 Thus, TOPRAKSU's limited construction capabilities, and the poor coordination of investment planning with DSI represents another major constraint in the irrigation subsector. Whereas on-farm development and other irrigation works wJere being completed by TOPRAKSU at the rate of 45-50,000 ha anDually in the early 1970s, this has recently been reduced to about 20,000 1/ Report No. 3472-TU; Turkey - Public Sector Investment Review (December 7, 1981); Appendix 2, page 1. 2/ In real terms, this represents only a marginal increase over the 1981 allocation. ha/year. TOPRAKSU's backlog of works for on-farm development on DSI's schemes has remained at 300-400,000 ha throughout the 1970s. By 1982, the backlog was roughly equivalent to one-quarter of the area under the command of technically good headworks. In the 1981 and 1982 public investment budgets TOPRAKSU was given an allocation to complete on-farm development on about 30,000 ha. Each year, however, indications are that about only 20,000 ha could actually be constructed. Moreover, its completion capability is severely constrained by a near total reliance on force account construction for major works with the use of contractors being confined to supplemental tasks. 2.12 Measures to Accelerate Completion. A rapid expansion of the completion rate is possible, but it will entail a considerable further reorientation of the public investment budget for irrigation. Particular aspects include (i) a further concentration of both DSI's and TOPRAKSU's resources on service area development of ongoing DSI schemes, (ii) the further scaling back or postponement of many projects in DSI's pipeline which were initiated in the late 1970s, but for which to date sunk costs are comparatively insignificant, and (iii) a concommitant increase in TOPRAKSU's construction capability. Although investment planning data is very limited, the scope for an additional concentration of resources still appears to be high. It is crudely estimated in current terms that the capital expenditure required on new irrigation construction by DSI is approximately $4000 per ha, including headworks and major conveyances. This delivers water to the farm gate. In contrast, TOPRAKSU's on-farm development costs currently amount to about $500 per ha, which are considerably less. Therefore, with further concentration of DSI's resources on the completion of distributories on its surface gravity projects and pumping schemes where the major "headworks" have been substantially completed 1/, and a marked shift of its construction program to also encompass the completion of on-farm works, the average incremental expenditure per ha completed could be reduced from about $4500 to $2-2500 per ha, which, in the 1982 investment program, might have allowed DSI by itself to program the complete development for about 115-120,000 ha in 1982 rather than merely bring water to the farm gate on about 70,341 ha. Furthermore, with a selective expansion of TOPRAKSU's staff to augment its design and construction supervision capabilities, and an increase in its use of private contractors, it might be possible to rapidly augment TOPRAKSU's completion capabilities to 80-100,000 ha/year. These indicative figures, based on the implementation of priorities followed by readjustment in budgetary allocation, therefore suggest that DSI and TOPRAKSU together could relieve the current backlog on DSI schemes within two to three years should a firm decision to pursue this course be adopted by Government. The urgency of doing so forms one of the principle justifications for the proposed project, which contains training for the agencies' engineering and technical staff, and changes in TOPRAKSU's operating procedures to increase its use of private construction contractors. 2.13 Master Plan. A second justification for the project is the need to improve the government's capability to identify, plan and program additional investments for irrigation after the current budgetary crisis has been resolved. This will require, firstly, the preparation conjointly by DSI and 1/ Impossible to determine extent from existing data. -8- TOPRAKSU of a detailed medium-term investment program in which the programmed expenditures of those agencies' resources would continue to be concentrated on economically justifiable projects which can be completed in a reasonable period of time, with clear indication of associated staff, equipment and budget requirements. The plan will thus entail both a careful screening of all ongoing projects as well as a careful assessment of new additions to the portfolio. Secondly, the plan would identify and program the corresponding expansion of the agencies' technical and engineering staffs and associated training. Staffing levels and fields of specialization would be determined with reference to requirements for improving longer term scheduling and planning as well as project identification and evaluation capabilities, accelerate the rate of project preparation and finalization of designs, and expand their construction, supervison and O&M training capabilities. The formulation of a medium-term program is one of the requirements of the proposed project. 2.14 Post-implementation Services. Only scattered information is available about irrigated cropping patterns, and no comprehensive study has been made on the subject. However, data from the 1980 Agricultural Census confirm the low cropping intensity since 7 percent of the presently irrigated land is annually left under fallow and scattered reports indicate that irrigated crop yields are well below their potential. On schemes developed by TOPRAKSU, some O&M training and extension advice is offered during the immediate post-implementatiorn period, however such assistance is usally withdrawn after two or three years. Therefore, the project will provide measures to effectively recover construction and O&M costs (paras 2.15-2.17) so as to generate additional resources both to sustain further public investments in the subsector and foster more effective O&M by DSI and O&M training by TOPRAKSU. 1/ The project will also provide for the development of effective agricultural extension assistance to the proposed service areas, which can introduce irrigatecd techniques to first time users and forge a link between applied research and the beneficiary farmers for the dissemination of improved technology. D. Cost Recovery 2.15 With regard to DSI major irrigation works, legal provision exists, since 1953, for recovery of costs of capital investment and O&M. These charges have to be approved by the Council of Ministers. In practice DSI computes the capital charges for completed irrigation works on the basis of recovery over 50 years without interest and without any adjustment for inflation. The O&M charges approved by the Cabinet have normally been significantly below actual costs. O&M costs of DSI works increased from TL 336 million in 1977 to TL 2.7 billion in 1981 but actual levies ranged from 23 percent (1977) to 82 percent (1978) of these costs. A one-titne 10 percent late penalty surcharge for delinquency of over one year in payment of capital or O&M charges has been insufficiently stringent to induce adequate recovery, 1/ Expenditures on O&M on TOPRAKSU's systems are generally borne by members of irrigators associations formed by TOPRAKSU for this purpose. and collections average less than two-thirds of assessed charges. With respect to TOPRAKSU minor irrigation and on-farm development works there has been, until this year, no legislation permitting cost recovery. The Government has recently taken measures to improve cost recovery. The Government has planned a schedule for increasing O&M charges for DSI works progressively (32.5% in 1983, 50% in 1984, 75% in 1985) so as to charge, beginning in the 1986 irrigation season, 100 percent of the previous year's actual O&M charges. The Gove!rnment would also adjust its capital recovery charge to include interest. The Government also indicated its intention to seek legislation to increase substantially the penalties for delinquency in payment of DSI O&M and capital charges and to institute appropriate legal procedures in cases of delinquency of over 12 months. 2.16 Government has passed a law which levies a 5 percent agricultural sales tax on all farmers produce sold and beginning in 1981 it collected about TL 15 billion and expects to collect about TL 25 billion in 1982. The agricultural sales tax can be considered a partial alternative cost recovery arrangement since irrigation would be expected to increase yields and value and accordingly result in higher tax payments. A conservative estimate on the share value of sales tax revenues from irrigated areas is 20 percent or TL 3.0 billion for 1981 whereas actual DSI total O&M costs for irrigation amounted to TL 2.68 billion. Government should continue to move toward full payment of O&M costs in addition to the sales tax, but at least with the introduction of the sales tax the minimum acceptable condition has been met of recovering the full O&M costs of irrigation. 1/ 2.17 Draft legislation for cost recovery of farm development works by TOPRAKSU has been submitted by the Ministry of Village Affairs to the Council of Ministers. It would permit full recovery including interest for all TOPRAKSU investments in soil preservation, land improvement, field drainage and land levelling in a repayment period not to exceed 20 years including the grace period. If approved, it would, for the first time, permit cost recovery of public investment in on-farm development works. E. Performance Under Previous Projects 2.18 The Bank and IDA have provided financing in four credits and four loans for five irrigation projects in Turkey. The first Bank loan in 1952 (63-TU US$22.8 million) assisted in financing construction of the Seyhan Multipurpose Dam. It was followed in 1963 by a credit of US$20 million (38-TU) to assist financing of Stage I of the Seyhan Irrigation Project (57,000 ha) and in 1969 for stage II of the same project for an additional 48,250 ha in a combined loan of US$12.0 million (587-TU) and credit of US$12.0 million (143-TU). In 1972, financing was provided in a credit of US$18.0 million (281-TU) for an Irrigation Rehabilitation and Completion project in 1/ Bank's report "Water Management in Bank Supported Irrigation Project Systems: An Analysis of Past Experience, OED No. 3421 (1981)" and CPN No. 2.10 suggests that sales tax may be one of a number of alternative arrangements to substitute for direct cost recovery. - 10 - three separate areas of Turkey (Koprucay, Silifke and Tokat) to rehabilitate 26,000 ha of existing irrigation and drainage systems and construction of new systems on an additional 24,000 ha. These four projects are now completed. _n 1973, the Ceyhan Aslantas Aultipurpose Project was initiated through a combined loan (883-TU US$44.0 million) and credit (360-TU US$30.0 million) to construct a storage dam and power plant and provide for irrigation of some 97,000 ha. This project is due for completion in December 1983. 2.19 The elimination of a major constraint to production by providing a reliable source of water had a major impact on agricultural production in the four completed Bank and IDA-financed projects. Production levels in all areas exceeded appraisal estimates, although they subsequently declined in the Seyhan irrigation command areas mainly due tc white fly and bollworm attacks on cotto3n, a major crop of the region. In the Irrigation Rehabilitation and Completion Project, as of the issuance of the Project Performance Audit Report \PPAR), the economic rates of return averaged 33 percent for the three areas and ranged from 23 percent at Koprucay to 42 percent at Tokat. Despite such performance, the projects were beset with a number of problems which were outlined in the PPARs for Seyhan II and the Irrigation Rehabilitation and Completiosn Project. Two major problems were cost recovery (para 2.15) and exten,sion services support. 2,20 Extension Services. A separate project extension service was initiated in 1967 for Stage I of the Seyhan Irrigation Project which was conttnued under Stage 11 Tft difEered from the Government extension programs in the use of viill-age level workers from the farming community (referred to as foresen) backed by more qualified staff, coordination of all extension activities undertaken by different Government agencies under a single program and concentration of activitties on extension rather than on data collection for use by Governrnent agencies, The service was backstopped by a consultant firm which introduced the new techniques and especially the training and visit system (- T &V)l which has now been extended to many Bank-supported projects in many developing countries. However. the success of this newly introduced form of extension in Turkey was slow to be adopted elsewhere since it was perceived as a project implepEmented servLce and not a part of the national extension systeml. This resulted in the T&V system being allowed to gradually dimninish in effectiveness in the Seyha) area after the Seyhan II project was completed in 1977, 2e21 Under the Irrigation Rehabilitation and Completion Project, existing extension services were to be strengthened in the three project areas by the appointment of extension coordinators and additional extension agents and two consultant extension specialists. While the extension coordinators were appointed, they were usually the extension directors for the region with other responsioilities and were, therefore, unable to devote full time to training and supervision of extension personnel. The full complement of extension personnel were not hired nor were the consultants. This was, however, mitigated by extension and research services available from other agencies, especially in Kopruicay. Never-theless, the additional extension personnel and especially the consultants could have helped farmers increase yields and especially with the serious outbreaks of white fly infestations which sharply reduced cotton production in the Koprucay area. - 11 - 2.22 A T&V system in separate project extension services were established with varying degrees of success in Bank-financed projects of the Ceyhan-Aslantas Multipurpose Project, Corum-Cankiri Rural Development Project, and the Fruits and Vegetables I and II projects. Since 1982, all project oriented extension services have been merged with the parallel Ministry of Agriculture and Forestry's Extension Service known as Teknik Ziraat. The newly established Bank-financed Erzurum Rural Development Project will also be provided with a strengthened Teknik Ziraat which will also utilize a T&V system. Government has recognized the need to strengthen and coordinate its various extension activities and has a national program to accomplish these changes and introduce a modified T&V system on a nationwide basis, which will be partially supported througi a proposed Bank project. The major difference from the system introduced under the Bank projects is the substitution of agricultural technicians (agricultural school graduates) for the village foremen, with Government convinced that this will be an improvement because of the higher education of the agricultural technicians. F. Project's Role 2.23 The proposed IAEE Irrigation project has been formulated in accordance with the objectives outlined in paras 2.12 and 2.13. It is intended to be the first of a series which would accelerate the completion of irrigation schemes while contributing to the implementation of other desirable changes in the subsector. Four irrigation schemes corresponding to a total of about 120,000 ha have been selected for inclusion in the IAEE irrigation project, on the basis oL the following criteria: (i) they have a significant element of sunk costs; (ii) they can be completed quickly because of existing investment in major infrastructure; (iii) they are technically sound; (iv) they have an insignificant energy requirement; and (v) they are financially and economically viable. In addition to an expansion of the irrigated area, the IAEE irrigation project includes measures designed to foster its more efficient land use and strengthen, through training, the planning, design and construction capability of DSI and TOPRAKSU. III. THE PROJECT AREA The project would consist of four areas (see Maps): A. Igdir Irrigation Scheme Location 3.01 The scheme is in the Aras river basin of the eastern Anatolian region covering a gross area of 56,600 ha. The area is bounded on the north by the Aras river which divides Turkey from USSR. On the south it is bounded by the Agri (Ararat), Solaka, Kale and Pamuk mountains and on the southeast by the Karasu river. The entire command area lies within the Igdir and Aralik counties of Kars province and surrounds the towns of Igdir and Aralik and contains 59 villages with a total population of 80,900. - 12 - Physical EnvironTnent 3.02 The area has a micro-climate very different from the rest of eastern Anatolia. Surrounded by mountains, with an average altitude of 850 meters, it has a milder clirmate characterized by hot dry summers and cold winters. Precipitation is mainly in the spring and averages between 226 and 265 mm. Temperatures range between maxima and minima of 430C and -300C and monthly averages of 270C and -40C. Frosts generally occur between October and April with total annual accumulation of snow ranging from only 1 cm to as high as 82 cm. Poor distribution as well as low rainfall are a major constraint to growing crops without irrigation. However, temperature and insolation permit growth of a wide variety of crops including cotton under irrigation. Irrigation and Drainage 3.03 Due to historical floods and river bed changes of the Aras river in the Igdir scheme, clay, silt, sand and other sediment deposits have formed a range of light to heavy soil textures on a basaltic underlying formation. Heavy and medium textured soils are predominant on the plains and consequently about half of this area has drainage difficulties. Nevertheless, about half of the subproject area presently has some form of irrigation. The Aras river is the major source for irrigation and for many years has been equally shared as agreed between Turkey and USSR. In 1927, Turkey and USSR jointly built and completed the Serdarabat diversion dam with two intakes at the head of the irrigation scheme. Turkeyts 50 percent share of Aras river water is barely sufficient during peak demand in August to meet the needs of 23,000 ha which are presently irrigated. To assure the supply of water to this area and providing for the remainder, the storage water of Arpacay dam (also jointly built by Turkey and USSR), which is completed but not yet in operation, will be used. For the existing network, referred to as Unit I (26,500 ha) between the Serderabat diversion dam and the Erkaci main discharge canal (West Igdir irrigation network), the main canals and irrigation networks need to be extended, replacecd and rehabilitated and capped with a settling basin to reduce excessive siltation (see para 3.16 on water rights). 3.04 Three separate parcels of land adjoining west, south and southeast of the existing West Igdir distribution system amounting to 8,400 ha are designated as Unit II. About 50 percent is presently irrigated by private earth canals which divert water from the existing irrigation network. Construction of Unit II is being carried out by a contract tendered in 1979 and due to be completed in 1983. The third unit of the Igdir scheme consists of 21,700 ha, located east of Unit I, and consisting of flat lands of the east Igdir and Dil plains. No irrigation development has been initiated except for the East Igdir outfall drain which is under construction. About one-third of the area is presently irrigated privately by farmers using water from large springs, from the tail end of canals of the existing network and from the Erkaci main drain. High watertables and use of water from existing drains has resulted in drainage and salinity problems. Land Tenure 3.05 The Igdir subproject area consists of 46,100 ha of land held privately by 12,500 households or an average of 3.7 ha. Farm size - 13 - distribution shows that 78 percent of all households have 5 ha or less with only 6 percent having holdings greater than 10 ha which accounts for 15 percent of the land area. An additional 10,200 ha are publicly owned land mainly in the eastern Igdir section in Unit III which also contains some 5,000 ha with soils considered too highly alkaline for economic reclamation. In the Western Igdir irrigation network (Unit I) about 680 ha are village pastures or unoccupied wasteland and an additional 1,200 ha are occupied by land holding families in various lease-hold or usufruct arrangements. In Unit II, 1050 ha of publicly owned land are in nine parcels of unoccupied range and wasteland. In Unit III, about 1000 ha of publicly owned land is harvested annually for meadow hay. Also, grazing rights in the area are held by some 5,000 persons who have temporarily left the area in search of employment elsewhere. The area also has about 470 families without land and about 250 households from neighboring villages which graze animals in the area. Farming Systems 3.06 The Igdir subproject area has traditionally been in mixed farming of crops and livestock. Those areas without irrigation are mainly used for grazing cattle, sheep and goats during the winter supplemented by fodder crops of barley, alfalfa and wheat straw grown on irrigated land. During the summer months much of the livestock is moved to grazing pastures on the slopes of Mt. Agri (Ararat) while some of the lowland meadows are harvested for hay. Some 56,900 head of cattle, 428,000 sheep, 14,600 goats and 6,800 water buffalo are in the area. 3.07 In the irrigated areas, the major crops are cereals, sugar beets, cotton and alfalfa, which occupy 44%, 20%, 15%, and 12%, respectively, of the cropped land. Fruit orchards of apricots, apples, pears, and peaches account for an additional 4 percent and vegetables another 4 percent. Poplars, although a small proportion of the cropping area, are important for establishing field boundaries and are used locally for building materials. Farming operations are partially mechanized with some 614 tractors, 611 plows, 869 trailers, and 427 threshers in the area. Tractors are used for initial cultivation of field crops and regional transportation. Most of the wheat and all horticultural crops are planted and harvested by hand. 3.08 Farm production of crops and livestock have substantial, potential for improvement in the area with an increased supply of irrigation water and land levelling to permit its even distribution; appropriate drainage and soil reclamation; strengthened extension services to provide information on improved technology and better access to credit. This should result in increased yield of cereals and other crops and including corn for silage as a second crop. The reserve of unused family labor, once water is available, would permit an increase in horticultural crops, fruit orchards, sugarbeets and potatoes. Marketing 3.09 Wheat is produced in the Igdir area in sufficient quantities to produce an annual surplus which is exported to other counties which are in - 14 - deficit. Seven private traders are involved in marketing, transportation and milling of wheat. Toprak Mahsulleri Ofisi (TMO) has a grain silo of 4000 tons at Igdir town but it has not been used since 1978 as farmers normally prefer to sell direct to the private sector because of low prices offered by TMO. Sugarbeets are purchased by the state Sugar Corporation (SEKER) in four collection centers in the subproject area and transported to a sugar factory in Erzurum 276 km away. A new factory is under construction in Agri of 3000 ton-daily capacity and should be completed in 1984 to receive sugarbeets for processing in 1985. This would take care of planned increase in sugarbeet production in the project area. Cotton is ginned in seven private ginneries in Igdir which are presently operating at 50 percent of capacity. Baled cotton and cotton seed are purchased by the Erzurum textile mill and by merchants from Adana and Izmir. A textile mill is under construction at Igdir. Fruit and vegetable production is marketed fresh in Kars, Erzurum and Agri provinces and to some extent in the central Anatolia region, particularly apricots. A small family business exists in Igdir for making jans from local fruit produce. Surplus livestock from the area is exported to Iran, USSR and the Persian Gulf countries. An animal feed plant in Dogubayazit in Agri province has a capacity of 16,000 tons per year using inputs from the region and from southeastern Anatolia. A milk processing plant in the city of Kars of 80 ton daily capacity works full time during the summer and 50 percent of capacity during the winter. Communications 3.10 A state highway of 75 km runs through the Igdir subproject area. In addition there are 118 km of provincial roads, 146 km of stabilized roads, 3 km of asphalt roads, and 76 km of earth roads without structures. In addition, roads lining the crest of the Aras levees are used as service roads for military facilities on the border. In the existing distribution system, there are service roads along some DSI canals and drains. Village roads and access from villages to field are earthen roads which are, in general, in satisfactory condition. Access to imports and exports are by paved roads to Kars (246 km), Agri (147 km), Van (237 km) and Erzurum (276 km) and to Gurbulak, point of entry located at the Iranian border (84 km) and the Black Sea port at Trabzon. Railroad connections to other parts of Turkey are possible from Kars and Erzurum. The area is served by regional TV and radio services which include farm programs. B. Aksu Irrigation Scheme Location 3.11 The Aksuj scheme is in the Antalya basin of the Mediterranean region. The scheme lies astride the Aksu river beginning about 20 km downstream from the Karacaoren dam presently under construction and covers a gross area of 23,200 ha. The area is bounded on the east by the Koprucay basin (which was a part of the Irrigation Rehabilitation and Completion Project) and by the Mediterranean sea on the south. It is some 16 to 20 km east of the city of Antalya and contains 33 villages with a total population of 38,900 within the counties of Merkez and Serik in the province of Antalya. - 15 - Physical Environment 3.12 The climate of the Aksu irrigation area is Mediterranean with annual average rainfall from 850 to 1050 mm which mostly falls between October and March and with only 9 to 18 percent falling during the growing period. Temperatures range between 440C and -50C with monthly averages of 280C to 50C. Frosts occur infrequently but its possibility necessitates heating provision for greenhouses and limits outdoor planting of frost sensitive plants such as tomatoes until late March or early April. Temperature, insolation and relative humidity provide favorable conditions for growing a wide range of field crops, fruits and vegetables. However, poor rainfall distribution is the major constraint to an otherwise long growing season. Heavy rainfall during the winter months create drainage and soil conservation problems in its flat coastal area and delays cultivation, preventing timely planting of crops in many locations. Irrigation and Drainage 3.13 The Aksu irrigation area consists of a long fan-shaped plain following both sides of the river for 42 km and reaching a maximum width of 9.5 km south of the Aksu-Serik highway and comprises the main flood plain of the Aksu river. It also includes adjoining areas north of this road which are extensions of this plain and contiguous low slopelands. The flat plains are at elevations of one to two meters above sea level at the southern end which rises through the plains area to 60 m elevation and to 80 m on the slopelands. Soils in the area are derived from calcareous material and are alluvial and colluvial in type to a depth of more than 150 cm. Clay content increases with proximity to the river and about 40 percent of the area have heavy textured soils and drainage problems. 3.14 The irrigation systems presently in operation comprise the Aksu diversion dam which was completed in 1961, where water is diverted into two main canals (completed in 1965), one on each bank from which water is distributed by a network of secondary and tertiary canals. This system serves 9,285 ha and is on relatively flat land. Except for 120 ha of sloping land which has been levelled, no TOPRAKSU on-farm works, such as for surface drainage, have been carried out. Privately owned lift pumps are used to irrigate small areas close to the river. About 12,260 ha could be irrigated, partially double cropped, in this Unit I, provided flood protection is provided as flooded areas of up to 7,000 ha are common in this area. Between Unit I and the sea, lies 3,060 ha which would become a part of the project area as Unit II. It is presently three-quarters irrigated by privately pumped water from the river or from tail-ends of old canals carrying drainage water from upstream areas. The entire area suffers from drainage problems due to flooding and high water tables, The third unit in toe Aksu subproject area involves areas lying upstream and above the present DSI distribution system on both sides of the riverbank. It includes 6,170 ha of up to 2 percent slopeland and 1,730 ha of up to 5 percent slopeland. Some 35 percent of the area presently receives irrigation by farmers using pumps on the river, small streams and shallow wells and from an old DSI gravity scheme. - 16 - Land Tenure 3.15 The Aksu subproject area consists of 23,300 ha held by 5,800 households. Average farm size is 4 ha with 50 percent having 2 ha or less and only 8 percent with holdings in excess of 10 ha accounting for 16 percent of the land area. According to DSI surveys, the number of farmers renting or share-cropping i.n the Aksu area is negligible. The area varies from other parts of Turkey in that it is used intensively and little is devoted to fallow, Tneadows or pasture. Farming Systems 3.16 Farming systems in the Aksu irrigation scheme along the Mediterranean differs from the Igdir area in that livestock is unimportant. Generally, where irrigation water is available, farmers plant cotton as the main crop with smaller areas devoted to tomatoes, fruits and vegetables. Where irrigation water is unavailable and poor drainage is not a factor, then Winter wheat is the main crop. Second cropping after wheat is a recent phenomenon with sesame and corn, and even more recently, soybeans, has been introduced to the area. Presently in Unit I, 70 percent is sown to cotton, 15-16 percent wbeat, 3 percent tomatoes and other vegetables, and 5 percent second crops. Unit III which is the least irrigated has 63-66 percent wheat, 32 percent cotton and very little in tomatoes, vegetables and second crops. About 500 greenhouses on some 25 ha have been established in recent years to intensify production and spreacl the seasonality of production, income and employment. Most greenhouses (steel framed with glass) are used for a single crop to produce out of season tomatoes planted in December or January and harvested in February and March. Livestock, as indicated, plays a minor role in the agriculture of the area. Less than half of the households own livestock and when they do it is mainly to provide the family with a source of milk. Total animals in the area amount to 7300 cattle and 2000 horses and donkeys. Sheep and goats are owned by individuals from outside the area and enter to graze CrIop stubble and wasteland but are generally not encouraged by irrigation crop farmers. 3.17 Farming operations are mechanized with roughly one tractor per 2.8 farmhouseholds and about the same ratio for plows and motor or tractor pumps. Practically all initial cultivation of field crops is mechanized. However, 40 percent of wheat, 30 percent of corn, and all sesane and horticultural crop seeds are planted by hand, whereas all cotton seed is mechanically planted. Conversely, all cotton is picked by hand as well as all other crops except wheat which is mechanically harvested with combines. Marketing 3.18 Cotton in Antalya province, which includes the Aksu scheme is ginned in 16 local ginneries. About half the lint is directly exported and about half is spun into yarn at two spinning mills in Antalya which is then exported to Western Europe. There is also a weaving mill which produces 6.5 million square meters of various cotton materials. Two oil processing plants of 110-120,000 ton capacity process cotton seed, sesame, sunflower, soybeans and olives into edible oils and soap. The region's wheat production is just under - 17 - 300,000 tons which is processed in four flour mills in Antalya. The mills also compound animal feeds for sale to local poultry operators. The wheat flour is mainly exported to other parts of Turkey with small quantities going to Iraq. Since cotton and wheat processing capacity is well above production, no problems are foreseen in increased production, marketing, storage and processing of incremental production. 3.19 In 1981, Antalya province produced half the national output of early vegetables, 255,100 tons as well as 250,000 tons of citrus which was mainly exported as fresh produce. The Bank supported Fruit and Vegetable II project is assisting in the production and marketing of fruits and vegetables in the province. Seventy percent of regional output of fresh produce passes through a central market located in Antalya. There are plans to build a new out-of-town facility complete with cold storage. Growth in fruit and vegetable production in recent years has been matched by investment in marketing and storage facilities, particularly by the private sector. Increased trucking capacity has permitted a surge in exports, particularly of citrus to the Persian Gulf and Libya. Communications 3.20 A state highway of 13 km runs through the Aksu subproject area and it is connected by rail and paved roads to Antalya 20 km away and to Izmir and Ankara and to neighboring cities of Burdur (122 km), Isparta (149 km), Mersin (487 km) and Mugla (368 km). In addition, there are 54 km of provincial roads, 40 km of additional paved roads, 67 km stabilized roads and 15 km of earth roads without structures. There are also service roads along some DSI canals and drains and from the state highway, good provincial all asphalt roads connect as far north as Gebiz. In general, access in the area is satisfactory except for a few villages in the northern extremity; but access from the villages to the fields is in many cases lacking. The seaport of Antalya provides direct access for export and import and domestic air passenger services exist also. The area is served by regional TV and radio services including farmers' radio programs. Communications are constantly improving spurred by developments in tourism and fresh fruit and vegetable export which have increased rapidly over the last two years. C. Eregli Irrigation Scheme Location and Physical Environment 3.21 The Eregli scheme is in the Konya closed basin of the central Anatolian region. The entire command area lies within Konya province and Eregli county, 150 km from Konya. It contains 26 villages in a gross area of 31,860 ha with a population of 75,813. The area has a typical continental climate of Central Anatolia. Annual average precipitation is 300 mm with most of it falling between December and May and only 1 percent during July and August. In December and January most of the precipitation falls as snow. Temperature maxima and minima ranges are 380C and -270C with monthly averages of 220C and -0.50C. Good conditions for growing field crops, vegetables and fruits occur between April and September but due to poor rainfall distribution needs to be supplemented with irrigation. - 18 - Irrigation and Drainage 3.22 Source of ,he irrigai-ion water for the Eregli irrigation scheme is the Ivriz springs and the Delirnahbmutlar river and the area lies along both banks of the Ivriz, as the river is called downstream of the springs for about 20 km. Sustained discharges during the dry season are due to supply of the Ivriz springs which constitutes almost 70 percent of the annual flow. Soils of the area are alluvial and colluvial derived from calcareous parent material and are heavy textured and rich in lime. Flooding occurs periodically, mostly during spring time and causes some damage along the river when discharges exceed 30 m3/sec. 3.23 The irrigation system presently in operation as Unit I in the Eregli scheme comprises the Ivriz diversion weir, completed in 1967, which diverts the water into the main canal completed in 1971, and through an old distribution system of earth canals. The Ivriz dam, which is about two-thirds completed (begun in 1979), will form a reservoir which will cover the Ivriz diversion weir. In Unit II an old canal called Alanarki is still in use for supplementary irrigation of 4,500 ha from water diverted from the unregulated Delimahmutlar stream. A main drainage canal, 42 km in length, serves both Unit I and II, and evacuates excess runoff into a depression. The Ivriz dam, which is being constructed, when completed for the irrigation season of 1985 will provide flood control and sufficient water to irrigate Unit II, and would add 19,800 ha including most of the Alanarki canal area. Unit I (12,100 ha) is on the left bank of the Ivriz river on mostly level land. At present 8,900 ha is irrigated, although inadequately, under control of the Eregli municipality and has about 90 percent provided with concrete canalette irrigation infrastructure and a matching drainage network. Ongoing rehabilitation and construction will increase the equipped area to 12,100 ha. AbOut 6,000 ha has salinity and drainage problems which will require subsurface drainage and about 5,500 ha require some land levelling. Unit II which is on the right bank is mostly gently sloping land. About 5,000 ha is irrigated to a limited extent of which 4,500 is irrigated by farmers from the Alanarki canal under the control of an irrigation cooperative. The remaining 500 ha is irrigated from private tubewells scattered over the area. About 3,000 ha of Unit I1 has salinity and drainage problems and about 16,500 ha requires land levelling. Land Tenure 3.24 Apart from 400 ha owned by the Zootechnique Institute, all land is privately owned in the Eregli irrigation scheme. In Unit I (12,100 ha) 2560 households own farm units averaging 4.5 ha and many of the young men of this area seek employment elsewhere. In Unit II (19,800 ha), because of a 1965 goverinment decree, village land was allocated on the basis of 25 ha per household on cond:ition it would be passed on by inheritance and not sold or subdivided. It now has 1800 household farm units with an average of 11 ha and many sons have remained, creating extended family units. Whereas most of Unit I has some form of irrigation, about 40 percent of Unit II lies fallow because of unavailability of irrigation water and low rainfall. - 19 - Farming Systemqs 3.25 Unit I (12,100 ha) of the Eregli scheme is mostly irrigated and fruit orchards predominate, occupying 30 percent of the area. Fruit trees include apples, pears, apricots, peaches and cherries. Another 21 percent is occupied by sugarbeets, vegetables and beans. Winter wheat is still an important crop in the area and accounts for 23 percent of the irrigated and 14 percent of the rainfed areas with 12 percent fallow. In Unit II (19,800 ha) which is largely rainfed, 50 percent is in winter wheat and barley, 5 percent in sugarbeets, 2 percent in vegetables, 1 percent in alfalfa and 40 percent fallow. Livestock is an important factor with some 58,000 sheep, 3,650 goats including angora, and 4,000 cattle. Two minor but profitable developments in the area are the planting of poplar seedlings in nurseries which after one year are sold to growers all over Turkey, and is the growing of Kimyon, which produces an aromatic spice seed (cumin) and commands high prices. Farming is generally mechanized with most transportation and initial cultivation done by tractors which average about 1 tractor to 2.3 households in the project area. Seeding of wheat, sugarbeets, potatoes and sunflowers are by seed drill whereas other crops are hand planted. Cereals are harvested by combine but other crops are harvested by hand. Marketing 3.26 Of the produce grown in Eregli county, about 45 percent is consumed locally, 35 percent is purchased privately and 20 percent is purchased by TMO which has storage facilities in the area for 4220 tons. Eregli has one flour mill of 75 ton daily capacity which processes locally grown grains (25 percent) and the remainder transported from Adana and Karapinar. Vegetables are marketed privately and of 5000 tons of potatoes produced in 1981, 3,500 tons were exported to Iraq with additional orders from Iran and Syria unfulfilled. The area also enjoys a special market for tomatoes which are produced later than from other areas. The area also has seven cold stores of 16,000 ton capacity mainly for apples and cheese. There is also a privately owned fruit processing plant of 6000 tons capacity for apples, peaches, apricots and cherries mainly for export. The company also has plans to introduce a frozen vegetable operation of 2500 ton capacity. Sugarbeets produced in the Eregli area are transported to the processing plants in Kayseri and Konya. Construction of a 3000-ton capacity sugarbeet plant at Bor in 1984 and eventually at Eregli of 4000 ton capacity should handle increased production of sugarbeets in the area. An old mill operating since 1958 in Konya produces animal feeds using alfalfa and has an annual 4000 ton capacity. Livestock is consumed locally but is also exported to other parts of Turkey and to Middle East countries. Communications 3.27 The Eregli subproject area has connections by rail and state highway to the provincial capital at Konya (150 km), to Nigde (100 km), Adana (200 km) and Mersin (188 km) and also by state highway to Ankara (347 km). In addition to 38 km of state highway and 30 km of railroads in the irrigation scheme area, there are also 31 km of provincial roads, 10 km asphalt roads, 123 km of stabilized roads and 10 km of earth roads. Accordingly, access into the area is good and possible throughout the year. Telecommunications are also satisfactory with TV and radio services. - 20 - D. Ercis Irrigation Scheme Location and Physical Environment 3.28 The scheme is in the river terrace land bounded on the south by Lake Van, on the east by the Zilan river mostly and on the west and north by mountains. The entire command area lies within Ercis county which is 100 km north of the city of Van, the provincial seat. The irrigation scheme covers a gross area of 7,500 ha and contains 12 villages with a population of 8,922. Climate of the Ercis irrigation area is continental with precipitation averaging between 473 to 497 mm annually and falling mostly between October and May and only 10 percent during the vegetative growing period. Temperatures range between maxima and minima of 370C and -280C with monthly averages of 220C and -50C. Under rainfed conditions, poor distribution of rainfall limits crop production to winter cereals with almost 50 percent of the area in fallow. Otherwise, conditions exist for growing a range of crops with irrigation. Irrigation and Drainage 3.29 The Ercis irrigation area consists of terrace land following both sides of the Zilan river, but mostly on the right bank with elevation changing from 1650 to 1760 m. The length of the command area is 17 km and consists of medium to light textured alluvial and colluvial soils. The irrigation area consists of two units. The existing area (3750 ha), which is not included in the project, lies on the left bank of the Zilan, and is irrigated with water diverted by a weir in the Zilan and by the Irsat spring. Some 1450 ha of sloping land has been levelled with on-farm infrastructure completed for subsurface drainage in a small area near Lake Van. Presently 2800 ha receives irrigation through the existing DSI irrigation network. Project works would be limited to a new area (Unit I, 7500 ha) located mainly on the right bank of the Zilan river. About 6700 ha of it is farmed under rainfed conditions in a cereal fallow rotation. About 1090 ha has up to 6 percent slope and another 780 ha having 6-12 percent slope. Located immediately upstream of the subproject area construction of the Kockopru dam was begun in 1979 to supply irrigation water for the new unit and generate power. It is expected to be completed by 1984. Land Tenure and Farming Systems 3.30 Average farm size in the Ercis scheme (7,500 ha) is 8.9 ha per household with 44 percent of farmers having between 5 and 10 ha and 77 percent of all households having 10 ha or less. Units larger than 10 ha account for 23 percent and 51 percent of the land area. Farmers renting or sharecropping in the area is negligible according to DSI surveys. Cropping intensity in the existing irrigation area of Ercis is quite high where irrigation water is available. About a third (34 percent) is planted to alfalfa, 16 percent each to cereals and sugarbeets, 20 percent to vegetables including potatoes, beans and melons, poplars 20 percent and orchards and vineyards, 4 percent. Farming in the rainfed area is traditionally mixed rainfed cereals/fallow and livestock. Livestock in the area consists of 5800 cattle and 26,100 sheep. - 21 - In summer, livestock are grazed in high plateau rangelands in the surrounding areas and winter in and around the villages where they are fed on hay, sugarbeet pulp and straw from cereal crops. Mechanization is moderate with about nine household units per tractor, plow, and trailer and will need to increase when shifted from rainfed to irrigated agriculture. Mechanical operations are similar to those practiced in the other subproject areas. Marketing and Communications 3.31 In the Ercis subproject area excess wheat is processed in four flour mills in Van city with a total daily capacity of 288 tons. Vegetables and potatoes which can be held up to 1,000 tons capacity in cold storage owned by the Ercis municipality, are exported to nearby cities and towns. A state owned animal feed factory in Van city of 16,000 tons annual capacity operates at only 25 percent because of low demand and produces mainly poultry feed from cereal byproducts and cottonseed meal which is sold in Adana. A subsidiary alfalfa processing plant stopped operations in 1980 because of low prices offered to farmers. Sugarbeets are transported to Erzurum. The Ercis subproject area has good connections by state highway to the provincial capital at Van (100 km) and to Agri (130 km). General access in the area is satisfactory with 19 km of state highway, 23 km provincial roads, 51 km stabilized roads and 8 km of earth roads. There is also ferry boat service on Lake Van between Van and Tatvan where rail connection exists. Domestic air flights also occur four days per week between Van and Ankara-Istanbul. Radio and TV services are also available. E. Agricultural Supporting Services 3.32 The major government institutions providing services to the four irrigation schemes areas are the General Directorate of State Hydraulic Works (DSI) of the Ministry of Power and Natural Resources, the General Directorate of Land and Water Conservation (TOPRAKSU) of the Ministry of Village Affairs, the Ministry of Agriculture and Forestry's General Directorate of Agricultural Affairs (GDAA) and the Agricultural Bank of Turkey (TCZB). 3.33 DSI is responsible for completion of the dams, construction of weirs and canals, most of which are done by contractors, and for operation and maintenance of the existing irrigation networks. In Igdir they have a staff of 55, most with University degrees, which are responsible to the DSI regional office in Erzurum for existing irrigation schemes totalling 36,650 ha. Igdir staff meet monthly with the USSR counterparts in discussing the technical aspects of the shared use of the Aras river water at the diversion dam and head regulator. The Aksu irrigation scheme is under the DSI's regional office in Antalya which is responsible for 69,000 ha in existing irrigation schemes and has a staff of 106 of which 88 have University degrees. In 1981 they completed 2,748 ha of irrigation works and 1800 ha of drainage works. DSI manufactures 120-150 km of canalettes annually in its Antalya factory which is sufficient to meet the needs of the scheme. The DSI regional directorate in Konya is responsible for 84,000 ha in irrigation networks in the region and is responsible for the design and supervision of the construction of the irrigation scheme in Eregli. It has a total staff of 156 of which 123 have - 22 - University degrees with 14 located in the Eregli branch office. No additional staff would be required for completion of the program. For the Ercis irrigation scheme the Van regional office of DSI has a technical staff of 85 of which 35 have University degrees. Existing DSI irrigation schemes in the region cover a net area of 30,000 ha of which 2800 ha are in Ercis county. 3.34 TOPRAKSU is responsible for all on-farm. development for publicly financed irrigation works. Until recently most on-farm development works were by force account. Increased capabilities of local contractors is resulting in TOPRAKISU contracting more of its works and at least 75 percent of land levelling, surface drains and farm roads will be done by contractors. Most subsurface drains are expected to be constructed by force account because of lack of know-how by contractors and the required specialized equipment. Nevertheless, measures are proposed (see para 4.02b) to encourage local contractors to participate in a portion of subsurface drainage works. TOPRAKSU has one of its regional offices in Erzurum with a staff of 313, including 45 engineers, and plans to establish a project directorate for the Igdir irrigation scheme to supervise land levelling, farm drainage and land reclamation. In 1981, TOPRAKSU completed 2,320 ha on-farm development works, 185 ha drainage and soil reclamation, 5,445 ha small irrigation schemes and 990 ha small dams and soil conservation. TOPRAKSU also provided TL 8 million credit for on-farm works valued at TL 12 million. The Aksu irrigation scheme will be served by TOPRAKSU's regional office in Antalya with a staff of 260 including 34 engineers. In 1981, 150 ha on-farm drainage works, 4,175 ha of small irrigation schemes and 290 ha of soil conservation works were carried out. TOPRAKSU in the region also provided TL 260 million of credit for on-farm works totalling TL 325 million in value. The Eregli scheme will be served by TOPRAKSU's regional headquarters in Konya with a total staff of 158 including 31 engineers. In 1981, this office completed 400 ha on-farm works, 780 ha drainage and soil reclamation 1751 ha of small irrigation schemes and 470 small dams. TOPRAKSU also provided TL 51 million for on-farm works totalling TL 63 million in value. The Ercis irrigation scheme comes under the jurisdiction of the TOPRAKSU regional headquarters in Van which has a staff of 294 including 28 enginers. In 1981 they completed 2502 ha of on-farm works, 3675 ha small irrigation schemes, and 4936 ha small dams and conservation works. 3.35 GDAA is the major directorate in the MAF providing extension services and research to the agricultural community. However, other directorates also provide services and plans are under way to bring all such services under the responsibility of a single Director in each province to coordinate different directorates under MAF. Such provincial directors have been appointed in Kars which includes the Igdir scheme, Antalya (Aksu scheme) and Konya (Eregli scheme) and is planned for Van province (Ercis scheme). For the Igdir scheme the GDAA extension service, Tekzik Ziraat (TZ) has 12 extension staff (5 in Igdir county and 7 in Aralik county), one of which is an agricultural engineer and the rest agricultural technicians. They provide inadequate service to some 26,000 farm families because of a shortage of staff and transport. In Antalya, TZ regional headquarters has 16 graduate staff including eight subject matter specialists. Services in the Aksu subproject area are provided through two county offices with 11 graduate staff, 123 - 23 - agricultural technicians and 23 home economist technicians. Contacts with village farmers is made by technicians and graduate staff but is constrained by a shortage of vehicles and is usually limited to visits to villages and not to the fields. Consequently, many farmers do not look to TZ for on-farm advice. The TZ regional office in Konya has 33 agricultural engineers and 279 agricultural technicians. In the Eregli subproject area, only 2 agricultural engineers, 9 agricultural technicians and 2 home economists are available but staffing is expected to increase to 28 technicians by the end of 1982. Transport in Eregli is in short supply with TZ only having 2 vehicles. The TZ provincial office in Van has 3 agricultural engineers, 13 technicians and 2 home economists. The Ercis subproject area has 9 agricultural technicians and I home economist and only one vehicle. 3.36 Agricultural research. The Igdir sub-project area is served by a small research station of GDAA near Igdir mainly for forage crops, cereals and cotton trials and by another small research station of TOPRAKSU near Igdir for trials on sugarbeets, rice, soybeans and other irrigated crops. The Igdir area also has a large state farm (3,353 ha) which is underutilized, being mainly in pastures and meadows and livestock and some 200 ha in wheat and barley. The farm also houses an agricultural school for training and demonstration purposes for agricultural technicians. Combined staff of farm and school totals 6 agricultural engineers and 13 technicians. The Aksu project area is well served by six MAF regional research institutes for vegetables, citrus, field crops, cotton, livestock and biological protection. Information and materials available from these institutes should be adequate to meet the needs of production expansion in the project area during the next five years. The Eregli subproject area is served by research from the regional TOPRAKSU Research Institute and the Veterinary Control and Research Institute, both at Konya. For field crops research they must look to the Central Anatolia Regional Research Institute near Ankara. No agricultural research facilities exist in the vicinity of the Ercis irrigation scheme and extension personnel will have to rely on findings of regional institutes located elsewhere. 3.37 Agricultural credit is mainly supplied by TCZB which has branch offices throughout the country. Loans are given to farmers or through cooperatives. Supervised loans are given only on the basis of development plans prepared by TCZB whereas conventional loans are granted according to collateral offered by borrowers. In the Igdir scheme TCZB in 1981 through its two branch offices in Igdir and Aralik provided credit to only 969 farmers who received a total of TL 24 million. In the Aksu scheme loans by TCZB's two branch offices is not known but the total for the provincial office in Antalya, Aksu and Serik branch offices amounted to roughly TL 1,033 million as 45 percent crop loans, 20 percent equipment loans, 27 percent land purchase and establishment loans mainly for greenhouses and 8 percent for other loans. Of this amount, 59 percent was for supervised credit and 35 percent by conventional credit and only 6 percent through cooperatives. Maximum loans per household is TL 5 million for supervised credit and TL 2.5 million for conventional credit. Loans for seasonal credit is presently TL 2050 for irrigated cotton to TL 720 for wheat per 0.1 ha and a maximum of TL 500,000 per farm. The TCZB branch office in the Eregli subproject area disbursed TL - 24 - 180 million to 4,168 farmers, whereas the Ercis branch office disbursed TL 66 million to 466 farmers in 1981. In addition to TCZB, credit in kind is provided by the Turkish Sugar Factories (SEKER) to sugarbeet growers for seed, fertilizer, pesticides and implements. Similar credit in kind is provided by the cotton cooperatives such as ANTBIRLIK in the Antalya region. The usual procedure is to deduct the cost of these expenditures at the time of sale of harvested sugarbeets or cotton. Consultants financed under the First Agricultural Credit Loan (1248-TU) have recommended measures to improve the efficiency and effectiveness of TCZB. Assistance in implementing these measures is intended to be included as part of a Second Agricultural Credit Loan expected to be presented to the Bank's Executive Directors in the next few months. IV. THE PROJECT A. Objectives and Brief Description 4.01 The main objectives of the project are to increase agricultural production and incomes, expand rural employment opportunities, and to help provide for a rational longer-term investment program for irrigation development in Turkey. These would be accomplished by completing four irrigation schemes covering a total of about 119,000 ha gross (112,700 ha net) and benefitting some 25,356 farm families. It would include the construction of additional irrigation and drainage systems; rehabilitation and improvement of existing irrigation and drainage systems; provision of on-farm developments in the form of land levelling, surface and subsurface drainage; correction of salinity and alkalinity problems and feeder roads. It would also include strengthening of extension services and the project would provide for equipment and for training. Through an Irrigation Strategy Review and elaboration of current and proposed investment programs, the project would support the rationalization of future investments in irrigation, develop criteria for future investment choice based on various considerations and establish a clear program of institutional development. B. Description of the Project Works!/ 4.02 Igdir Irrigation Scheme. The subproject would complete the works planned for providing irrigation water from the Arpacay reservoir and the Aras river. It would comprise 56,300 ha gross (52,900 ha net) situated in the Aras river basin adjacent to the USSR and Iran borders and include only works to be carried out after January 1, 1983. It would include the construction of an additional intake for the Serderabat diversion weir, a 665 m tunnel, a settling basin to reduce siltation, and 31 km feeder canal, 144 km of main canals and 35 km of outfall drains for the east Igdir irrigation network. Rehabilitation and improvement of the existing irrigation and drainage system 1/ See Annex 1 for further details. - 25 - of Unit I would involve construction of a settling basin and rehabilitaLion of 8 km of main canals, 120 km of secondary canals, 208 km of tertiary canals, 121 km of main and secondary drains, and 284 km of tertiary drains. Construction for the irrigation and drainage networks of Unit III would involve 152 km main canals, 216 km secondary canals, 381 km tertiary canals, 230 km of main and secondary drains and 383 km tertiary drains. 4.03 On-farm development works for the Igdir irrigation scheme would include 38,000 ha land levelling, 14,000 ha subsurface drains, 38,000 ha surface drains, feeder roads for 38,000 ha and 12,500 ha reclamation of saline and alkaline soils through amendments of gypsum (see Annex 7, C-10). 4.04 Aksu Irrigation Scheme. The subproject would complete the works planned for irrigating 23,220 ha gross (22,100 ha net) ha in the Antalya basin astride the Aksu river and to be served by the Karacaoren reservoir. For Unit I, it would raise the crest levels of the Aksu weir and the main right and left bank canals for 30 km, rehabilitate 10 km of secondary and 19 km of tertiary canals and add 50 km of tertiary canals, 38 km of secondary drains and 5 km of tertiary drains which would permit irrigation of 12,260 ha. For Unit II (3,060 ha) it would construct 4 km of main, 5 km of secondary and 89 km of tertiary canals and 7 km of main and secondary drains. For Unit III (7,900 ha), it would construct the Kargi concrete diversion weir, 100 m in length with a 4 m high crest designed to pass a 1,300 m3/sec flood and a head regulator of 31 m3/sec capacity. It would also construct the Alayli main canal of 21 km to serve by gravity 1,294 ha gross of the right bank area of Unit III and the Kurucen main canal of 44 km which includes a 1,500 m river siphon and a 1,250 m tunnel to serve 4,441 ha of Unit III. It would also construct secondary canals of 55 km and tertiary canals of 314 km. Flood control works would be constructed to prevent periodic flooding in Unit I and II comprising 70 km of flood protection dikes and 2 million m3 of river channel improvement. 4.05 On-farm development works of the Aksu irrigation scheme include 17,000 ha land levelling, 7,000 ha subsurface drains, 18,500 ha surface drains and farm roads for 17,000 ha. 4.06 Eregli Irrigation Scheme. The subproject would complete the on-farm development works for 12,100 ha gross (11,600 ha net) in Unit I and 19,800 ha gross (19,000 ha net) in Unit II, served from the Ivriz reservoir. It would not finance construction of any head or canal works as these are already contracted out and construction is under way. The on-farm development works to be completed include 22,000 ha land levelling, 9,000 ha subsurface drains, 22,000 ha surface drains, feeder roads for 22,000 ha and 4,000 ha reclamation of saline and alkaline soils. 4.07 Ercis Irrigation Scheme. The subproject would complete works for irrigating 7,500 ha gross (7,100 ha net) of the new Unit I served from the Kockopru reservoir. It would construct 51 km of right and left bank main canals, irrigation and drainage networks of 65 km of secondary canals, 108 km of tertiary canals, 33 km of secondary drains, 99 km of tertiary drains, and 400 m of siphons. On-farm development works would include land levelling of - 26 - 7,100 ha, subsurface drains for 500 ha, surface drains and feeder roads for 5,300 ha. EquipTment 4.08 Equipmient will be required to supplement the existing equipment for operation and maintenance of the four irrigation schemes (Annex l, Tables 1-4). Equipment will also be required to supplement existing equipment for on-farm drainage and about 25 percent of the total requirements for on-farm land levelling (Annex 1, Tables 1-4). Extension Services 4.09 The extension services would be strengthened by recruitment of three or four subject matter specialists per each irrigation scheme and a county agricultural engineer for three of the schemes. Agricultural technicians would be recruited to permit a ratio of at least one village technician per 400 farm households. A county extension office and accommodation for the subject matter specialists would be provided for in the Igdir and Eregli schemes, Field demonstration equipment and vehicles for SMS and village technicians would also be provided in all four irrigation schemes. Training 4.10 In addition to on-job training, provision has been made for about 170 manmonths of training abroad of staff in various aspects of irrigation, investment assessments, operation and maintenance, cost recovery, on-farm development, soil reclamation, and extension. Master Plan for Investment in irrigation Develment 4.11 The Government has many irrigation schemes in various stages of construction (see para 2.03). In order to avoid having funds spread too thinly stretching out completion of projects, there is a need to systematize which of these schemes should receive priority for completion, develop criteria for future investment choices and establish a program of institutional support where requiread In order to establish a rational longer term investment program for irrigation development, the borrower would by June 30, 1984 conduct an irrigation strategy review and prepare an investment master plan aiming at achieving an average increase in irrigated area over the next ten years to about 100,000 ha per year, and would submit the plan to the Bank for comments. Assistance for preparation and review would be provided by a specialist consultant financed by the project (see para. 5.12 and Annex 6). (para 8.01a). C. Water Requirements, Availability and Quality 4.12 Water Requirements. Net water requirements for the proposed cropping patterns of the nine units of the four schemes vary between 252 mm (Ercis Scheme) and 592 mm (Aksu Scheme, Unit II). Differences in annual demand between the units are caused by different patterns, cropping - 27 - intensities and percentages of crops with low irrigation requirements (winter cereals) and high requirements (rice). The overall efficiency of all four schemes has been estimated to be 51 percent, based on conveyance efficiencies of 85 percent and on-farm efficiencies of 60 percent. Annual diversion point requirements are: Igdir Scheme 466 million m3 Aksu Scheme 234 million m3 Eregli Scheme 161 million m3 Ercis Scheme 35 million m3 Peak requirements occur in the months of July or August. To meet peak demand, irrigation modules varying between 0.58 1/s/ha (Eregli Scheme Unit II) and 1.44 1/s/ha (Aksu Scheme, Unit II) have been used for designing the irrigation systems. Future developments depending on the same sources of supply are planned by the Government for the Igdir, Aksu and Ercis schemes, with the latter two also including hydropower development. Reservoir operation studies have been made which take into account these future needs and it was found that future developments would not affect water supply for Aksu and Ercis and only insignificantly the Igdir supply conditions of presently irrigated areas and extensions to be added by the project. 4.13 Water Availability and Quality. The existing supply systems for the four schemes, as they have been built or are in the final stages of construction, have sufficient capacity to meet crop requirements in most of the years and with acceptable reductions during very dry years. Reservoir operation studies indicated that the Igdir scheme would have a supply shortfall (about 10-15 percent) only once in a sample period of 26 years. The Eregli scheme would be subject to shortages in 4 out of every 17 years with shortfalls varying between 7 and 27 percent. The Aksu and Ercis schemes would not experience any shortage during the sample periods. The storage dam for the Igdir scheme, the Arpacay dam, will be operational in 1983. The dams for the Eregli and Ercis schemes, the Ivriz and Kockopru dams, would be completed in 1984 and operational in 1985. The Karacaoren dam would be completed by 1985. However, supply for the additional areas in the Aksu scheme (Units II and III) would be met before 1985 by releases of additionally stored water in the Egridir lake. The Government would employ independent qualified experts acceptable to the Bank to periodically inspect on an agreed schedule the ongoing construction of the Karacaoren, Ivriz and Kockopru dams. Without limiting requirements for project operation and maintenance in general, the Government also shall, under arrangements satisfactory to the Bank, cause the Karacaoren, Ivriz and Kockopru dams to be periodically inspected in accordance with sound engineering practice in order to determine whether there are any deficiencies in the condition of the dams or in the quality and adequacy of maintenance or methods of operations which may endanger their safety. Assurances of the above as well as the provision of all required funds and facilities to permit timely completion of the Karacaoren, Ivriz and Kockopru dams (for impounding 84/85) would be obtained during negotiations (para 8.01 b&d). The water quality for all four schemes is good and can be used for irrigation without any restriction. - 28 - D. Water Rights 4.14 There is an international agreement between Turkey and USSR on the use of the Aras river flows which divides the two countries. The Aras river further downstream forms the border between Iran and the USSR. The Serderabat diversion dam with two intakes was jointly built and has been operating since 1927 equally dividing the Aras river flows. Recently the Arpacay storage dam was jointly built upstream and provides additional flows when necessary and a supplementary treaty was signed in 1973 governing the use of this water. Government provided copies of these treaties which satisfactorily deal with the water rights issues for the Igdir subproject with respect to the USSR. With respect to Iran, the arrangements in effect since 1960 have led to full utilization of all available water by USSR and lurkey during the growing season. The storage of additional water during the winter (8% of total flow) for release during the growing season appears not to have any significant adverse effects on Iran. These findings were conveyed to Iran and no objections have been received. E. Status of Engineering 4.15 The project work requirements have been studied and are well defined by DSI and TOPRAKSU and no more investigative work is necessary on the irrigation, drainage and on-farm development works. Preliminary designs and cost estimates have been prepared by DSI and TOPRAKSU with some assistance from the FAO/IBRI) Cooperative Program. DSI and TOPRAKSU have the responsibility of preparing final design cost estimates and bidding documents and have done so for the first year's contracts (1983), including main irrigation and drainage works for Unit I and III of the Igdir scheme, and main irrigation and drainage works for the Ercis scheme. F. Cost Estimates 4.16 The total project cost (exclusive of some US$28.3 million for farm investment credit and US$14.2 million for incremental farm operating credit) is estimated to be US$292.0 million equivalent including some US$6.6 million in taxes. The foreign exchange component which includes both direct and indirect foreign costs is estimated at US$115.0 million or about 39.4 percent of the total cost. The base cost represents the estimated cost of investment and initial operation during the five-year (1983-87) project implementation period, in March 1983 terms (US$1=TL 195.0). The estimated foreign exchange cost consists mostly of heavy equipment for construction and maintenance of irrigation/drainaige works, as well as a portion of construction costs. Physical contingencies of a total of US$27.8 million equivalent, or about 12 percent of the base project cost, have been estimated on the basis of 15 percent of the cost of main irrigation and drainage works, 15 percent of the cost of on-farm development works, 15 percent of the cost of engineering, 10 percent of the cost of machinery and equipment and 15 percent of the cost of buildings and initial operation of the extension services. Price contingencies between the March 1983 and the end of the project implementation period are estimated at US$39.4 million equivalent, or 15.6 percent of base cost plus physical contingencies. They have been applied to both local and foreign costs in US$ terms at the following annual rates: 8.0 percent in 1983, 7.5 percent in 1984 and 7.0 percent in 1985 and 6.0 percent in each of 1986 and 1987. By measuring both foreign and local price contingencies in - 29 - US$ equivalents, it has been assumed in line with the Government's policy that the lira exchange rate would change so as to offset the inflation differential between Turkey and its major trading partners. The lira has been devalued roughly in accordance with this pattern since 1980 and is now adjusted daily on a crawling-peg system. A summary of the project cost is given in Table 4.1 with details in Annex 2 (Tables 1-4). G. Financing 4.17 Financing. The proposed Bank loan of US$115.3 million equivalent will finance 100 percent of the foreign exchange costs of the project (39.4 percent of total costs) and the front end fee. The Government of Turkey as the borrower will contribute US$176.7 million equivalent or 60.6 percent of the total. The Government, at negotiations satisfied the Bank that they have sufficient funds to finance year one budget allocations for the various components of the project. Subsequently, the Government would submit to the Bank for review, not later than September 30 prior to the beginning of each fiscal year, an annual updated financing plan indicating the proposed budget allocations for the project including revised schedules which account for physical and price changes. In addition, government will provide or cause to be provided timely and adequate credit to farmers in the project areas. Assurances for the above were obtained during negotiations (para 8.Olc&g). H. Procurement and Retroactive Financing 4.18 During negotiations assurances were obtained that contracts (estimated at about US$33.0 million equivalent including price and physical contingencies) for construction of DSI project works excluding the Igdir subproject and 40 percent of the Ercis subproject and rehabilitation of the existing network, and contracts (estimated at US$42.0 million equivalent) for purchase of equipment and machinery would be awarded through ICB in accordance with procedures consistent with those set forth in the current edition of the Guidelines for Procurement under World Bank Loans and IDA Credits published by the Bank in March 1977. Bidding documents for equipment will stipulate that suppliers will guarantee adequate servicing and the provision of spare parts within Turkey. Purchase of small items of value less than $50,000 and not to exceed $250,000 in total for the project may be procured off-the-shelf. Because of the remoteness and inaccessibility of the area, seven contracts varying in size from $0.5 million to $12 million (estimated at US$49.9 million equivalent) for the construction of the project works of the Igdir irrigation scheme could be more efficiently carried out by local contracts and would thus be awarded through LCB procedures acceptable to the Bank. In addition, about US$4.1 million awarded through LCB acceptable to the Bank for part of the Ercis subproject but not yet begun has been included. About US$33.2 million for the rehabilitation of the existing irrigation networks in Unit I each of the Aksu and the Igdir irrigation schemes would be by DSI force account. This is appropriate since work can only be accomplished during periods when power plants can be shut down and irrigation service interrupted. At least 75 percent of TOPRAKSU civil works for land levelling, surface drainage and farm roads, and at least 10 percent for subsurface drains (estimated at about US$43.2 million equivalent) and construction of buildings for the extension service (about US$1.6 million equivalent) would be carried out by contracts awarded by LCB. These on-farm works are local in nature and local contractors - 30 - Table 4.1. PRDJECT OOST SUMMARY Foreign Item Local Foreign Total Iocai Foreig Total Exchange TL Million U Million Main irrigation & drainage works 10648.2 7098.8 17747.0 54.6 36.4 91.0 40.0 On-farm development works 6544.8 3730.7 10275.5 33.6 19.1 52.7 36.3 Machinery & ecluipment 1421.1 5519.7 6940.8 7.3 28.3 35.6 79.5 Engineering 2802.2 - 2802.2 14.4 - 14.4 - Land acquisition 3053.0 - 3053.0 15.7 - 15.7 - Buildings 197.6 62.4 260.0 1.0 0.3 1.3 24.0 Training and consultants 4.7 115.4 120.1 0.0 0.6 0.6 96.1 06M main works 1580.2 526.8 2107.0 8.1 2.7 10.8 25.0 Extension services (operation) 257.7 223.4 481.1 1.3 1.1 2.5 46.4 Total Base Cost 26509.6 17277.1 43786.7 135.9 88.6 224.5 39.5 Physical Contingencies 3210.1 2219.3 5429.7 16.5 11.4 27.8 40.9 Price Contingencies /2 4744.8 2925.0 7669.8 24.3 15.0 39.3 38.2 Total project cost 34464.9 22421.4 56886.3 176.7 115.0 291.7 39.4 Front-end fee - 55.4 55.4 - 0.3 0.3 100.0 Total Financing Required 34464.9 22476.9 56941.7 176.7 115.3 292.0 39.5 /1 Table contains rounding errors. /2 Estimated in dollar terms at an exchange rate of US$1=IL 195.0. Because local inflation is expected to be higher than international inflation, the actual TL amounts will be higher, the difference being offset by changes in exchange rate. - 31 - are well versed in such works which are small and in scattered locations. Furthermore, no foreign contractors would be interested in bidding on small and localized works which must be completed in a short period of time between crop seasons. Up to 90 percent of subsurface drainage work and up to 25 percent of land levelling work (estimated at US$30.1 million equivalent) may be undertaken by force account (which is a considerable reduction from all previously Bank-financed projects with on-farm development by force account reduced from 100% force account to 41% in this project). Contractors will be encouraged to undertake subsurface drainage works (see para 5.02b). In order not to interrupt progress on the project, all contracts signed after January 1, 1983 which were awarded in accordance with the above procedures would be eligible for financing under the proposed loan. The amount of retroactive financing for such advanced contracting is estimated at up to US$4.0 million. Details of the procurement packages are shown in Annex 3. 4.19 Ongoing construction work, contracted or undertaken by force account before 1983 has not been included in the package to be financed by the World Bank loan although its timely completion is essential for the project's success. Assurances were obtained during negotiations on the timely completion of these essential works and adequate operation and maintenance thereafter and that Government will include the necessary funds, estimated at US$10.1 million equivalent, in its budget (para 8.0ld). I. Implementation Schedule 4.20 The project would be completed in five years (1983 to 1987) as per implementation schedule in Chart No. 24416. An estimated schedule of expenditures is presented in Annex 2, Table 1. The projected program for irrigation works and on-farm development are shown in Annex 4. A summary of both is presented below. Calendar Year 1983 1984 1985 1986 1987 … ----------US$ Million Equivalent ------…---- Annual estimat.ed expenditres Government funds 29.0 44.4 47.9 37.6 17.8 IBRD funds 21.0 40.9 23.8 20.2 9.1 Total 50.0 85.3 71.7 57.8 27.4 Cumulative expenditures 50.0 135.3 207.0 264.8 291.7 1983 1984 1985 1986 1987 …---- net ha '000 ---------------- Yearly development completed Irrigation network 15.1 22.9 21.9 14.3 - On-farm works 8.7 22.9 20.7 22.8 20.9 Cumulative development 21.7 45.1 59.2 84.5 ]L08.7 J. Disbursements 4.21 The proposed Bank loan of US$115.3 million net of taxes would be disbursed over six years as follows: - 32 - Amount of the Loan Allocated % of (Expressed in Expenditures Category /1 Dollar Equivalent) to be Financed (1) Irrigation and drainage works - DSI (a) By contract 38,400,000 50% (b) By force account 7,800,000 25% (2) Irrigation and drainage works and soil reclamation - Topraksu (a) By contract 19,100,000 50% (b) By force account 7,000,000 25% (3) Works for buildings and extension services 800,000 50% (4) Equipment: and vehicles 100% of foreign ex- (a) DSI 20,300,000 penditures, 100% of (b) TOPRAKSU 11,300,000 local expenditures (c) TZ 300,000 (ex-factory cost) and 60% of local expendi- tures for other items procured locally (5) Overseas training 100% of foreign (a) DSI 300,000 expenditures (b) TOPRAKSU 200,000 (c) TZ 100,000 (6) Consultants 100,000 75% of local expendi-- tures for services of consultants domiciled within the territory of the Borrower and 100% of foreign expen- ditures for services of other consultants (7) Initial deposit in the Special Account to prefinance items under Categories 1, 2 and 3 above 4,000,000 (8) Fee 287,531 Amount due (9) Unallocated 5,412,469 TOTAL 115,300,000 /1 For ease of disbursement, $5.0 million foreign exchange cost of O&M operations will be met by equivalent higher disbursement on construction cost. - 33 - Four million US Dollars from categories 1(a), 2(a) and 3 will be disbursed into a Special Account (revolving fund) to avoid the need for the Government to advance the total cost of payments to contractors and then await repayment from the Bank. A tentative disbursement schedule is shown in Annex 5. The proposed schedule is accelerated from the profile for irrigation projects in Turkey where 50 percent disbursed averages 53 months, since these irrigation schemes are in ongoing projects and delays in setting up new project organizations will not arise. Furthermore Turkey's disbursement profile includes periods of unusual political disruptions which are not expected to be repeated. Therefore disbursement should be better than usual. LCB contracts above US$500,000 will be paid through submitting full documentation of contracts and withdrawal applications supported by invoices. LCB contracts below US$500,000 and force account will be paid through Statement of Expenses only. K. Environmental Impact 4.22 Bilharzia does not occur in Turkey. Malaria, however, occasionally occurs in Turkey and may also occur in the four subproject areas, but it is not endemic. In 1978, an outbreak of malaria which reached endemic levels in the Seyhan plains was mainly caused by insufficient organization and means by the Ministry of Health to control its vector, the anopheles mosquito. Since then, aided with supplies of insecticides by EEC countries, the Ministry of Health has radically brought down the anopheles population and the incidence of malaria is low. In the four subproject areas malaria has been much less of a problem than in the Seyhan plain because of (a) less conducive environmental factors, (b) naturally better drained areas than the Seyhan plains, and (c) lesser use of migrant labor which is the main source of malaria infection. The project would improve drainage in the existing irrigation areas as well as in the new extensions in the four subproject areas which should all help to conserve and improve the environment. No detrimental effects are expected on the chemical/physical/biological regime of the water. V. PROJECT IMPLEMENTATION A. Organization and Management Organization 5.01 Implementation of the project components would be the responsibility of the government agencies concerned and since each irrigation scheme represents merely an acceleration of the on-going programs, no serious difficulties are anticipated. 5.02 The agencies and their responsibilities for completion of the four irrigation schemes and development to their full potential are as follows: (a) DSI regional staff will be responsible for designs for engineering works which have not been completed through its engineers at each of the three regional DSI offices except for the Igdir works which has been prepared at Headquarters - 34 - with consultants. The engineers at the three regional DSI offices are presently underemployed and have both the capacity and ability to prepare such designs which are mainly standard. Construction will be by ICB except for the Igdir subproject where LCB will be employed and for rehabilitation of existing works which will be by force account. DSI will acquire land needed for drain canals, etc., compulsory under its powers and will be responsible for paying compensation to its owners. Construction, operation and maintenance will be supervised by DSI staff who are considered capable of carrying out this responsibility; (b) TOPRAKSU regional staff will contact farmers one year before on-farm development works. They will secure a signed '"guaranitee" from each farmer to make land available after harvesi: of the crop in June. The "guarantee" will be approved by the village head, the mukhtar. During the previous year, TOPRAKSU will prepare preliminary designs for land levelling in order to assess approximate quantities and finalize the designs after crop harvest. Final designs will also be prepared for farm drains. Land levelling, surface drainage and farm roads will be at least 75 percent performed by contractors with bids called during the winter months and contracts signed in March. The remainder of land levelling and up to 90 percent of subsurface drainage will be done by TOPRAKSU force account using its own equipment. However, local contractors would be encouraged to bid for at least 10 percent of subsurface drainage works by initially being allowed to use backhoes and other equipment in place of trenchers. Assurances to this effect were obtained during negotiations (para 89.02e): (c) Extension Services in the subproject areas would operate as part of the provincial and district organizations under the provincial director of extension. After selection and initial training, agricultural technicians would work four or five days weekly with farmers in their villages providing advice and demonstrations in the villages and in farmers' fields. Once established, one day of training by district engineers and subject matter specialists would be given to the agricultural technicians every two weeks with nine days in field extension work. Each group technician would have regular visits to the agricultural technician in his charge according to a predetermined schedule and would also spend one day every two weeks for in-service training at district or provincial level and some time, as needed, in the planning and execution of field demonstration plots. District: agricultural engineers would be responsible for outlining the work schedule and extension programs for the village technicans concerned in accordance with the season, - 35 - cropping patterns and packages to be promoted and would be assisted as required by SMS at the provincial and district levels. The provincial directors of extension on behalif of the provincial directors of Agriculture would have overall responsibility for deciding, planning and implementing extension programs in the province. Through the directors of Agriculture, he would coordinate the work of extension with other sections such as plant protection and would liaise with institutions concerned with agricultural research, input supply, marketing, and credit. Assurances to this effect were obtained during negotiations (para 8.01f); (d) Provision of agricultural credit in the four irrigation schemes would be guaranteed by Government in adequate amounts for farmers' requirements and assurances to this effect were obtained during negotiations (para 8.01g). Estimated incremental credit requirements arising from the project are estimated at US$42.5 million equivalent. It is expected to come primarily from TCZB, either directly to farm households or through appropriate cooperatives. The organization required to facilitate this increased activity is expected to be strengthened through the proposed Bank assisted Agricultural Credit II project; and (e) Marketing for all project output would be disposed of through existing channels of the private sector for grains, forage, livestock, fruits, vegetables, cotton, oilseeds, spices and poplars as well as government agencies of TMO for grains, cotton cooperatives of Antbirlik and Cukorbirlik and SEKER for sugarbeets. Supplies of seeds and pesticides will come mainly from the private sector but also from the government sector for wheat, cotton and sugarbeet seeds and for fertilizers. Coordination 5.03 During preparation of the project, DSI Headquarters staff in Ankara was given responsibility to coordinate the contributions of the three major agencies involved. During project implementation each of the implementing agencies shall furnish documentation for the purposes of monitoring, evaluation and preparation of progress reports and assurances to this effect were obtained during negotiations (para 8.01h). 5.04 Regional Coordinating Committees. In order to expedite the completion programs for the four irrigation schemes, each province will form a coordinating committee chaired by the provincial governor (Vali) to oversee the progress and execution of the scheme. The committee would consist of the DSI, TOPRAKSU and Extension Services Directors and their respective project engineers for the irrigation scheme. The branch managers of TCZB in the region would also be represented. The coordinating committee would meet at least once a month and could be called more frequently if problems - 36 - jeopardizing the progress of works arise. The irrigation schemes would look to the provincial governors for assistance in resolving problems which arise locally or througnh contact with authorities in Ankara if the problem cannot be resolved at the provincial level. Assurances for the establishment and operations of the Regional Coordinating Committees by December 31, 1983 were obtained during negotiations (para 8.01i). B. Staffing and Training Staffing 5.05 In general DSI has adequate and qualified staff in the provinces and Headquarters to carry out all aspects of project design, tendering, supervision of construction, operation and maintenance of the irrigation network system. COPRAKSU similarly has adequate and qualified staff in the irrigation scheme areas of Aksu, Eregli and Ercis to carry out all aspects of project design, tendering, supervision of land levelling, and construction of farm drainage and farm roads. They are also qualified to carry out by force account about 25 percent of the land levelling works and the installation of subsurface drains. For the Igdir irrigation scheme, TOPRAKSU will establish in Igdir a project: office section by December 31, 1983 under a Chief Engineer and staffed by five supervising engineers in the area of land levelling, on-farm drainage, land rehabilitation, land consolidation and machinery and equipment. Assurances to this effect were obtained during negotiations (para 8.Olj). 5.06 The extension services in each of the irrigation schemes would be strengthened with additional staff. For the Igdir irrigation scheme, 27 additional agricultural technicians would be recruited to supplement the existing 12 to service 59 villages and about 12,500 farm households. Six of the more experienced would act as group technicians, each supervising about five village-basecd technicians. A district agricultural engineer would also be recruited as well as the appointment of four subject matter specialists (SMS) in the subjects of field crops, horticulture, irrigation and livestock. For the Aksu irrigation scheme, 8 agricultural technicians would be recuited to supplement the eight group technicians presently available. Also four SMS would be appointed covering the subjects of irrigation, field crops, horticulture and aigricultural economics. For the Eregli and Ercis schemes sufficient technicians are on hand but 3 SMS each would be appointed to cover the subjects of irrigation, field crops, economics and horticulture. Also, one district agricultural engineer would be recruited for the Ercis irrigation scheme. Assurances to this effect were obtained during negotiations (para 8.01k). Training 5.07 In-service training would be provided primarily to extension staff. Initially recruited agricultural technicians would receive at least one-month training before being assigned to the field. Subsequently all agricultural technicians would receive training once every two weeks by the Agricultural Engineers and SMS. Group technicians would, in addition, also receive two weeks annual refresher training. Newly recruited SMS would receive one - 37 - month's initial training followed by two weeks annual refresher training. In order to more accurately tailor extension skills to project objectives, GDAA's Training Department would conduct, within six months of project effectiveness, a training needs survey in the four irrigation scheme areas. After completion of the survey by February 29, 1984 and its assessment, the GDAA Training Department would hold a workshop for at least one week to ensure that relevant training programs were designed and would assist those responsible for training to acquire design skills. Short-term assistance is provided for analysis of needs assessment work and project training program design. 5.08 Training abroad would also be provided for representatives of DSI, TOPRAKSU and the extension services. Training would be provided for on irrigation networks, operation and maintenace and cost recovery (DSI - 80 man-months), on-farm development and soil reclamation (TOPRAKSU - 65 man-months) and extension (25 man-months). All programs for training abroad would be submitted to the Bank for approval. Assurances for short-term assistance and training abroad were obtained during negotiations (para 8.01 1). C. Government Land 5.09 As indicated in para 3.05, 10,200 ha of the 56,300 ha in the Igdir Irrigation Scheme is publicly owned land. Government plans to have this land become the property of the Treasury Department after TOPRAKSU has completed the on-farm development works. In accordance with Circular No. 106 of the Ministry of Finance dated June 26, 1980, Treasury plans to lease this land for three to five years to farmers, in order of priority, to those with no land, small landholders, farmers renting or sharecropping and farmers in the immediate vicinity of the project area. Both the project cost and the economic analysis have been based on the assumption that this land would be leased to farmers who mostly originate from the area; therefore no settlement cost has been taken into account. Since most of this land will not be available until 1985, assurances were obtained during negotiations that (a) Government will submit to the Bank by July 1, 1984 a detailed plan for disposition of irrigated government and village owned land and (b) unless otherwise agreed, Government will lease or sell the government and village owned land irrigated under this project to farmers under arrangements acceptable to the Bank (para 8.01m). D. Monitoring and Evaluation Monitoring 5.10 Monitoring of civil works construction and procurement of furnishings, vehicles and equipment will be the responsibility of each of the implementing agencies, namely DSI, TOPRAKSU and the DGAA Extension Directorates. Each agency would prepare semiannual reports on the progress of project execution and submit these in a timely manner to the Bank. The reports would include information on the progress of construction of all physical facilities under the various project components, on procurement of equipment materials and on project expenditures. Annually, data would be - 38 - reported which includes information on the areas rehabilitated and reclaimed, on-farm development works completed and their cost recovery, O&M costs and recovery, cropping patterns, crop yields and output, extension services provided and training. Assurances were obtained during negotiations for the timely submission of these reports and in a format acceptable to the Bank (para 8.01n). Project Completion Report (PCR) 5.11 Immediaitely after completion of the project, but no later than six months after the closing date DSI in cooperation with TOPRAKSU and DGAA would prepare and submit to the Bank a project completion report (PCR). It would report on the implementation and operations of the project, its costs and its existing and projected derived benefits. Assurances were obtained during negotiations for the timely submission of the PCR and in a format acceptable to the Bank (para 8.Olo). E. Irrigation Strategy Review 5.12 In the past irrigation development has been handicapped by the initiation of too many projects, beyond implementation and financing capabilities, causing excessive periods to be required for project completion. Over the past two years the government annual investment programs have concentrated resources on priority projects nearest completion. This policy is being continued under the 1983 investment program. Nevertheless, a further planning exercise is required to establish future investment priorities among the various partially completed projects and to develop implementation plans taking account of financing and implementation constraints. A review will be conducted by Government which will form the basis of preparing a master plan by June 30, 1984 for future government policy on irrigation strategy over the next 10 years with a more precise implementation plan for the first five years and aiming at an annual increase in additional irrigated area of about 100,000 ha per year during the period. It would be based on a detailed inventory on a project by project basis and an assessment of existing and projected irrigation and on-farm development investments and of financial and implementation constraints. It would detail the issues and targets to be reached including additional works required, cost and timing, arrangements for sustainability of irrigation works and cost recovery improvement and serve as a basis for future lending by external donors. One of the measures recommended to increase implementation capacity would be an increased substitution of private contractors in place of TOPRAKSU force account workc for all on-farm development works including subsurface drainage. About eight manmonths of technical assistance is included under the project to assist in the preparation of the master plan. The master plan would be submittedl to the Bank for review and would serve as a basis for preparation and execution of future irrigation projects for which Bank assistance might apply (see Annex 6 for further details). Assurances for such a review were obtained during negotiations (para 8.01a). - 39 - F. Accounts and Audit 5.13 Practically all financial functions in Turkish Ministries are carried out by staff of the Ministry of Finance seconded to various ministries, and fully independent from the management of the ministries they are assigned to. They report to the Ministry of Finance, who intervenes in case of conflict. DSI, TOPRAKSU and DGAA would each maintain separate accounts for the project. Staff of the three agencies involved would prepare at the end of each quarter a detailed statement of project expenditures during the period (in an agreed format) and submit such statement to the Bank within 45 days after the end of each quarter. Such statements would, inter alia, be used as a basis for supervising the progress and costs of force account works. In addition, an annual audit would be carried out by the Auditor General's office and submitted to the Bank within nine months of the end of each fiscal year. Financial reporting and auditing will be in accordance with the World Bank 1982 Guidelines Report. Assurances to this effect were obtained during negotiations (para 8.Olp&q). G. Cost Recovery 5.14 The Government has agreed to take all necessary action to permit TOPRAKSU by September 1984 to assess and collect charges for on-farm development works under the Project sufficient to recover costs over a period of 20 years. Completion of such actions would be a condition of disbursement for DSI works and equipment and disbursements on TOPRAKSU equipment and force account work and on contracts entered into by TOPRAKSU after September 1, 1984 would also be curtailed if appropriate action is not forthcoming by September 1, 1984 (para 8.01r). 5.15 DSI water charges for O&M costs would increase progressively under an agreed schedule (37.5% in 1983, 50% in 1984, 75% in 1985) so that, by the 1986 i-rrigation season, beneficiaries would be charged the full costs of O&M based on the previous year's actual expenditures. Furthermore, capital costs recovery would be increased by inclusion of interests. In order to improve recovery of water charges, the Government indicated its intention of seeking legislative change to permit increased penalties by a su gested additional 2 percent per month after the second month of delinquency (in addition to the present 10 percent surcharge for non-payment imposed at the first repayment date). Appropriate legal procedures would be instituted in cases of delinquency of more than 12 months with water delivery discontinued after prolonged failure to repay. During negotiations assurances were obtained covering these cost recovery provisions (para 8.01s). VI. PRODUCTION, MARKETING AND FINANCIAL ANALYSIS A. Crop Areas, Cropping Patterns and Yields 6.01 In the Igdir scheme, the total cropped area 1/ would increase from about 29,950 ha at present to some 53,200 ha with the project at full 1/ The cropped area as defined in this chapter excludes fallow and waste and includes all areas effectively cropped, with doubled-cropped areas counted twice. Therefore it differs from the total gross as well as net areas quoted elsewhere. - 40 - development. This increase would be due mostly to the introduction of irrigation in areas which presently are either waste or low productivity pasture or meadow land. Because of climatic constraints, double cropping would be limited to about 5,000 ha on which cultivation of maize for silage will follow a winter wheat crop. 6.02 Except for the introduction of paddy to speed up reclamation of saline soils, the present range of crops would continue to be grown. The share of cereals would however decrease in favor of more labor- and water-intensive crops as shown below: 2/ Table 6.1: Changes in Cropping Patterns - Igdir Cropped Area ('000 ha) % of Total Cropped Present Future Present Future Cereals 13.2 17.1 44.2 32.1 Sugarbeet 6.0 10.6 20.0 19.9 Cotton 4.5 4.1 14.9 7.7 Sunflower 0.1 1.1 0.3 2.1 Fruit & Vegetable 2.2 7.6 7.4 14.3 Fodder crops 3.8 11.4 12.7 21.4 Poplar 0.2 1.3 0.5 2.5 Total 30.0 53.2 100.0 100.0 6.03 A substantial increase in yields per hectare is expected as a result of improved irrigation/drainage and soil reclamation, combined with expanded extension services and greater use of inputs. Future yields at full development (i.e. 3 to 4 years after commencement of irrigation) have been estimated at the levels currently obtained on lands where irrigation is properly conducted and agricultural practices adequate, and can be summarized as follows for the main crops: 2/ The projected cropping pattern in Unit III is relatively less labor-intensive than in Units [ and II to allow for a larger average farm size and more limited labor availability. For each unit of each irrigation scheme, the evolution over time of cropping patterns, yields and product-ions has been derived fromn the relevant farm model(s) ancl the anticipated phasing-in of these models. Dletails can be found in Working Paper C.6 of the Project File. - 41 - Table 6.2. Yield locreasesl/ - lgdir Yields (ton/ha) Present Future Units I & II Unit III All Units Wheat (grain) 3.0 1.5 3.5 Sugarbeet 35.0 20.0 45.0 Seed cotton 1.2 1.2 3.0 Sunflower 1.75 - 2.25 Vegetable (tomato) 17.5 - 22.0 Water melon 18.0 12.0 22.5 Orchard (apple) 9.0 - 16.0 Alfalfa (hay) 9.0 7.0 11.0 Maize (silage) - - 30.0 1! Variation in yields of specific crops may be noted between irrigation schemes due to wide differences in agroecological conditions. 6.04 In the Aksu irrigation scheme, the total cropped area with the project would increase from about 22,050 ha at present to 26,700 ha at full development, mostly by (i) an increase in double-cropped area from about 720 ha to 3,720 ha; and (ii) the cultivation of areas which presently are waste because of poor drainage. With the project, thie increased supply of water for irrigation will permit changes in cropping patterns and in particular a substantial increase in horticultural crops, citrus orchards and greenhouses, as shown below: Table 6.3; Changes in Cropping Patterns - Aksu Cropped Area ('000 ha) % of Total Cropped Present Future Present Future Wheat 7.3 5.0 33.1 18.7 Paddy - 0.3 - 1.1 Cotton 13.4 13.4 60.9 50.2 Field Vegetable 0.5 2.1 2.3 7.9 Citrus 0.1 2.1 0.3 7.8 Greenhouse 0.023 0.116 0.1 0.4 Second crops (maize, sesame) 0.7 3.7 3.3 13.9 Total 22.0 26.7 100.0 100.0 6.05 Significant yield increases are expected as a result of (i) the increased supply of water for irrigation and its more even distribution after land levelling; (ii) the prevention of periodic flooding in Unit I; and (iii) improved drainage over most of the area. Based on yields reported from the adjoining Koprucay area, where similar soils and drainage problems have been remedied through a previous World Bank assisted project, estimates of yield increases are the following; - 42 - Table 6.4: Yield Increases - Aksu Yields (ton/ha) Present Future Wheat (grain) 2.5-2.7 3.6 Paddy - 5.5 Seed cotton 2.0-2.7 3.6 Field Vegetable (tomato) 25.0 35.0 Citrus (orange) 15.0 25.0-30.0 Greenhouse (tomato) 80.0 100.0 Sesame (2nd crop) 0.8 1.0 Maize (2nd crop) 2.0 4.0 6.06 In the Eregli irrigation scheme, the cropped area would increase from 21,950 ha to 27,650 ha mostly by introduction of irrigation and hence continuous cropping in areas of Unit II which presently are exclusively rainfed and consequently under a cereal-fallow rotation. As a result of this, as well as of increased water availability in areas already irrigated, the following intensification of land use is expected; Table 6.5: Changes in Cropping Patterns - Eregli Cropped Area ('000 ha) % of Total Cropped Present Future Present Future Cereals 14.4 9.4 65.5 33.8 Sugarbeet 2.0 3.0 9.0 10.9 Potato, Bean, Onion 0.3 3.9 1.2 14.0 Fruit & Vegetable 5.0 8.7 22.8 31.4 Alfalfa 0.3 1.8 1.5 6.7 Poplar - 0.9 - 3.2 Total 22.0 27.7 100.0 100.0 The improved irrigation and drainage infrastructure would result in the following yield increases: Table 6.6: Yield Increases - Eregli Yields (ton/ha) Present Future Wheat (rainfed) 1.75 - (irrigated) 2.2-3.0 4.0 Sugarbeet 34.0-35.0 50.0 Bean 1.25 2.25 Vegetable (tomato) 10.0 25.0 Orchard (apple) 8.0 16.0 Alfalfa (hay) 8.5 12.0 - 43 - 6.07 In the Ercis irrigation scheme, the cropped area would increase from about 4,100 ha to 6,800 ha as a result of introduction of irrigation on land which presently is mostly rainfed and under a cereal-fallow rotation. Land use would be intensified as follows: Table 6.7; Changes In Cropping Pattern - Ercis Cropped Area ('000 ha) % of Total Cropped Present Future Present Future Cereals 3.5 2.7 85.3 40.0 Sugarbeet 0.2 0.5 3.7 6.9 Potato, bean 0.1 0.8 2.5 11.9 Fruit & Vegetable - 0.7 - 10.0 Alfalfa 0.3 1.7 8.5 25.0 Poplar - 0.4 - 6.2 Total 4.1 6.8 100.0 100.0 The following yield increases would occur: Table 6.8: Yield Increases - Ercis Yields (ton/ha) Present Future Wheat (grain) 1.5 3.75 Sugarbeet 30.0 45.0 Potato 18.0 25.0 Bean - 2.2 Vegetable (tomato) 25.0 Orchard (apple) - 16.0 Alfalfa 7.0 12.0 B. Production and Markets 6.08 As a result of expanded crop area and higher yields, the production of all categories of crops will increase substantially as shown in Table 6.9. This, together with a shift of the cropping patterns towards higher-value crops will result in an increase of the gross value of production of about 156%, from TL 9.8 billion at present to TL 25.1 billion at full development (in 1982 producers' prices). At full development, fruit and vegetable will account for 32% of the total gross value of production (vs 15% at present), industrial and oil crops for 35% (vs 48% at present), grain for 15% (vs 23% at present), fodder crops and straw for 11% (vs 13% at present) and other crops (potato, bean, dry onion, poplar wood) for 7% (vs 1% at present). 6.09 The total incremental production of sugarbeet would represent about 4-5% of the current national production. It would contribute to meeting national demand for sugar and partially substitute for imports (imported 164,000 tons in 1980 and about 68,000 tons in 1981). The farmers will sell their production to the Sugar Corporation, which has a well organized Table 6.9: Incremental Production at Full Development Production ('000 tons) Igdir Aksu Eregli Ercis Total Present Future Present Future Present Future Present Future Present Future IncrementaL Cereals /1 grain 37.3 55.9 19.2 24.2 29.6 37.4 5.3 10.2 91.3 127.6 36.3 straw!/stover 74.6 111.7 29.0 39.4 44.3 56.1 10.5 20.4 158.4 227.6 69.2 Paddy - 7.9 - 1.7 - - - - - 9.6 9.6 Sugarbeet 196.2 476.1 - - 68.0 150.2 4.6 21.0 268.8 647.4 378.6 Seed cotton 5.4 12.3 34.2 48.2 - - - - 39.5 60.5 21.0 Sunflower 0.1 2.5 - - - - - - 0.1 2.5 2.4 Potato - - - - 1.9 27.6 1.8 8.5 3.8 36.1 32.3 Bean - - - - 0.2 4.3 - 1.0 0.2 5.4 5.2 Onion (dry) - 18.8 - - - 21.2 - - - 40.0 40.0 Sesame - - 0.4 2.2 - - - - 0.4 2.2 1.8 Alfalfa hay 32.4 71.0 - - 2.5 22.3 2.4 20.4 37.3 113.7 76.40 Meadow & pasture /2 21.9 - - - - - - - 21.9 - -21.9 Silage maize - 148.6 - - - - - - - 148.6 148.6 Vegetable /3 18.0 76.0 12.4 69.9 10.8 82.4 - 12.8 41.2 241.1 199.9 Citrus - - 0.9 57.8 - - - - 0.9 57.8 56.9 Other fruit /4 10.4 49.7 - - 31.9 86.1 - 2.7 42.3 138.5 96.2 Poplar /5 2.5 23.6 - - - 15.7 - 7.7 2.5 46.9 44.4 /1 Includes wheat, barley, maize. /2 In hay equivalent. /3 Includes production from greenhouses, field tomatoes and other vegetable, water melon. /4 Apple, apricots, etc. /5 In '000 m3. - 45 - collection network in the three areas concerned (Igdir, Eregli, Ercis). The sugarbeet produced in Ercis is presently processed in the Erzurum factory; a new factory is scheduled to open in Mus in late 1982 and will provide enough capacity to handle the production from the Ercis scheme at full development. Production from the Eregli area is presently processed in the Konya plant which already operates well above its capacity, i.e. for 185 days a year with around 130-140 days to minimize excessive losses in sugar content. A new plant of 3,000 tons/day capacity is under construction in Bor-Nigde and should start operations in late 1983, thus providing the additional capacity necessary to support the project in the Eregli area. The sugarbeet produced in Igdir is presently processed at the Erzurum plant. The Sugar Corporation is constructing a new plant in Agri of 3,000 tons/day capacity, which is expected to be in operation in late 1984 and should take care of the substantial increase in sugarbeet production expected from the Igdir scheme. 6.10 The total production of lint cotton in Turkey is presently about 500,000 tons, of which 200,000 to 300,000 are exported annually. The incremental project production of 21,000 tons of seed cotton would correspond to about 7,350 tons of lint, i.e. 1.5% of the national production. Two-thirds of this would come from the Aksu irrigation scheme, and would add about 13% to the production of the Antalya province, which produces the best average quality in Turkey. In the Aksu area, most of the farmers sell their seed cotton to a marketing cooperative (Antbirlik) which could easily absorb the incremental production expected from the project. There are 16 cotton ginneries in the Antalya province, the processing capacity of which is 50% above present production. The existing oil extracting capacity would also be sufficient for the production increase expected from the project. Although some of the incremental production of lint would be processed by local cooperatives and state spinning mills, most of it is expected to be exported as lint. Similarly in lgdir, no problem is anticipated in marketing/ processing the incremental seed cotton production. Seed cotton is presently ginned in 7 private ginneries which are working at an estimated 50% of their capacity. The lint is purchased by the Erzincan spinning mill (Sumer bank) or by rmerchants from Izmir, and the cotton seed by private millers from Adana. 6.11 At full development, the total production of fruits and vegetables from the project area would be quadrupled. During the last decade, the national production of vegetable has increased by about 4% per year, and the productions of citrus, apple and apricot by about 5-6% per year. This increase has been partially absorbed by the growing national demand, as well as by rapidly rising exports during the last 2-3 years, mostly towards Middle-Eastern and European countries. Part of the incremental project output would be exported, particularly most of the citrus and early vegetable from the Aksu scheme in the Antalya province, where the World Bank-supported Fruit and Vegetable Project (Loan 1967-TU) is currently assisting in the production and marketing of these commodities. In this province during recent years the growth in fruit and vegetable production has been matched by private investment in marketing and storage facilities, and increased trucking capacity has permitted a surge in exports, particularly of citrus to the Persian Gulf and Libya. In the medium term however, further expansion of export markets will require improvements in marketing efficiency, packaging - 46 - and quality control. Loan 1967-TU includes financing to support the creation of four fruit and vegetable marketing corporations to assist in improving market intelligence, marketing, quality control, cold storage, packaging and transportation. In addition, the loan supports creation of a central marketing organization to coordinate the marketing corporations export activities, represent the corporations in foreign markets and participate in setting quality control standards. 6.12 Because of its location and exceptional microclimate, the Igdir area has an advantage in fruit and vegetable production for local consumption in the eastern part of the country. Most of its excess vegetable production is presently marketed fresh for local consumption in neighbouring cities such as Kars, Erzurum, Agri or Van by some 10 local traders; fruit, especially apricots, are also purchased partly for export by traders from Istanbul, Ankara, Konya and Mersin. In the medium term, most of the incremental project output of vegetables is expected to go toward meeting the regional domestic denmand, which is projected to grow further along with improvements of nutritional standards in Eastern Anatolia. Even though the project production of vegetables would thus not reach directly the export market, it would release production from other areas for export. Part of the incremental production of fruit (apricot and apple) would continue to be exported by existing channels. In the future, exports of fresh fruit and vegetable from Igdir to Iran may also develop. The Igdir area is presently underequipped with storage and processing facilities. However, a private cold store with an estimated 1,000 tons capacity recently started operations, and a small family-operated cannery exists which could be expanded. In the meantime, the increased production of fruit and vegetables can be stored in neighboring cities. 6.13 In the Eregli area, vegetables (including tomatoes, potatoes, onions, beans) and apple production already play an important role. They are marketed through private merchants for domestic consumption and export (via Adana, Mersin, Iskenderun). In 1981 about 3,500 tons of potatoes (out of a total of 5,000 tons marketed in the district) were exported to Iraq and orders from Iran and Syria remained unfulfilled. The area is renowned for apple production and some 30,000 tons have been exported in 1981 mostly to Middle-Eastern countries. The area also enjoys a special domestic market for tomatoes since the crop is produced later than in other areas. There are seven cold stores with a total capacity of 16,000 tons and one privately owned fruit processing plant. Considering the favorable location of the Eregli scheme and its established marketiing channels, no prohlem is anticipated in marketing the incremental project output of fruit and vegetable. In Ercis, most of the incremental production of fruit and vegetabLe should be absorbed by the local market, particularly by the city (f Van. 6.14 The incremental production of cereals at full development would represent 40% of the present production of the project area, and 0.15% of the national production. Most of it would be soft bread wheat for domestic consumption. About two thirds of the incremental cereals production from the project would originate from the Igdir and Ercis schemes, which are located in wheat deficit areas of the country. Although TMO purchasing and storage - 47 - facilities exist in all four schemes of the project, the farmers tend to sell most of their wheat production to private traders or flour mills which offer slightly higher prices and much quicker payment. No problem is anticipated in marketing of the incremental cereal production primarily through such private traders. In the Igdir area however, where paddy should be grown in the early years of reclamation of saline soils, measures should be taken to ensure that TMO will have the funds necessary (in case the private traders do not react quickly enough to the availability of the new crop) to purchase the paddy and transport it to the nearest mills. 6.15 Poplar wood is in strong demand in the project area as building material and the additional 44,400 m3 of poles are expected to be easily disposed of mostly on the domestic market. Straw, stover, alfalfa hay and maize for silage would be partly used on the farm for animal feeding and partly sold to other livestock keepers. In Igdir, Eregli and Ercis schemes a substantial share of the alfalfa hay produced by the project farmers would be sold to neighbouring livestock farmers; a very active interprovincial market already exists for hay in eastern Anatolia. C. Farmers' Incomes and Financial Analysis 6.16 To test the project's expected effect on farmers' incomes, 11 farm models have been developed (i.e. 1 to 2 models for each unit of each irrigation scheme). All models assume gradual changes in cropping patterns and increases in yields after completion of the basic irrigation/drainage infrastructure by DSI and of on-farm development works by TOPRAKSU. The gross value of production has been calculated at constant mid-1982 farmgate prices. Production costs include all inputs also valued at mid-82 market prices, as well as hired labor valued at the present average wage rate of TL 500 per manday. A water charge covering the full operation and maintenance cost and capital costs over 50 years in real terms for DSI and over 20 years for TOPRAKSU has been taken into account, and sales taxes of 5% have been estimated after deduction of an allowance for home consumption. 1/ Details can be found in Working Paper C.6 of the Project File. 6.17 As summarized in Table 6.10 the net benefits (or net disposable farm incomes) at full development will be 1.4 t:o 11 times higher than without the project. The highest increases will be achieved in areas which presently are non-irrigated and used very extensively (Lgdir model 4 and Eregli model 3). Farm investments shown in the models consist of machinery, poplar, orchard and greenhouse establishment. Because the level of these investments made directly by each farm household is relatively low, and a substantial share of the incremental benefits are derived from investments in irrigation and drainage infrastructure made by DSI and TOPRAKSU and recovered from the farmers over a number of years, the financial rates of return (FRR) are very high. As shown in table 6.11 the FRR remain very attractive even under the 1/ This allowance consists of 1,400 kg of wheat, 300 kg of vegetable, 80 kg of fruit, as well as the full production of poplar wood and half the production of roughage (straw, stover, hay, maize for silage). Table 6.10; Farm Incomes ( 000 TL) Igdir Aksu Eregli Ercis Model 1 Model 2 Model 3 Model 4 Model 1 Model 2 Model 3 Model 1 Model 2 Model 3 Model 1 Gross Value of Production Without project 337 202 276 43 725 571 495 483 641 289 308 Full development 552 543 1,232 832 1,472 1,300 1,402 977 1,825 1,825 1,224 Net Benefit Without project (a) 223 137 170 40 266 145 195 271 333 133 140 Full developuent (b) 316 308 660 446 732 602 681 589 1,096 1,096 670 Ratio (b)/(a) 1.4 2.2 3.9 11.2 2.8 4.2 3.5 2.2 3.3 8.2 4.8 Fanm Investment 34 66 275 340 582 408 556 235 218 292 495 Financial Rate of Return /_ 100% 100% 6 6% 53% 59% 100% 74% 100% 1007% 100% 100% 0 Cost Recovery Elements Included In Farm Costs (Full Dev.) O&M charge 25 26 63 41 40 40 40 32 77 77 73 Sales tax - Total 22 22 52 34 70 62 66 46 84 84 50 - Incremental l0 15 42 33 37 35 45 24 56 72 39 / On total farm investment (i.e. before financing). Table 6.11: Financial Rates of Return /_ - Sensitivity Analysis Lgdir Aksu Eregli Ercis Model 1 Model 2 Model 3 Model 4 Model 1 Model 2 Model 3 Model 1 Model 2 Model 3 Model 1 Financial Rate of Return (%) Base case 100 100 66 53 59 100 74 100 100 100 100 Increm. invest. & operating /2 costs up 10% 100 100 56 44 52 100 60 100 100 100 100 Increm. invest. & operating /2 costs up 20% 100 100 47 36 46 100 49 100 100 100 100 Increm. gross benefits /3 down 10% 100 100 55 43 52 100 58 100 100 10 0 Increm. gross benefits /4 down 20% 86 100 43 33 44 97 44 100 100 100 96 /1 FRR on total farm investment, i.e. before financing. /2 Excluding sales tax. /3 Sales tax down lf/% also. /4 Sales tax down 20% also. - 50 - assumption that total farm costs would increase by 20% or total farm benefits would decrease by 20%. However, medium-term credit will be necessary for the financing of on-farm investments, and incremental short-term credit will have to be provided in order to foster the introduction of the improved practices proposed under the project. 1/ Both types of credit would be provided by TCZB, either as a part of the Agricultural Credit Project presently under consideration for World Bank financing or through its own resources (see para 5.02d). Cost Recovery 6.18 In all models, the operating costs include a water charge corresponding to full payment by the farmers of the annual operation and maintenance costs borne by DSI. The incremental sales taxes which will be derived from the project have also been included as part of the operating costs. They will represent a substantial indirect contribution to the recovery of the investments made by DSI and TOPRAKSU in the irrigation/drainiage infrastructure. Direct capital cost recovery will occur after the passage of the new TOPRAKSU legislation and the expected improvements in DSI cost recovery (see para 5.14 and 5.15). 6.19 By taking into account only the incremental O&M water charge and the incremental sales taxes which will be received by the government as a result of the increased production expected from the project, the cost recovery index21 for the whole project would be 31.6 percent. Perhaps more significant, the average incremental sales tax per hectare gross at full development will amount to TL 5850 annually, as compared to an average investment cost3/ of TL 278,900 per ha gross corresponding to an annual amortization, over a 50 year period, of TL 5,6004/. While the sales tax is considered by the Government as a substitute for an agricultural income tax and not as a cost recovery vehicle, the sales tax could be considered as representing an additional means of ensuring indirect investment cost recovery. 6.20 At full development, the incremental revenues from O&M water charge and sales tax will represent 15.8 percent of the aggregated incremental rent accruing to the participating farmers. The rent has been here defined as the inc-emental net cash income before payment of O&M water charge and sales tax, and after deduction of an allowance for incremental family labor valued at TL 500 per manday. Although no allowance has been made for return on incremental own capital, incremental depreciation of farm assets and additional risk/uncertainty, all of which would decrease the estimated project rent, the rent recovery index (15.8%) appears rather low when only water O&M i/ The total needs for medium-term credit under the project are estimated at TL 4511 million, and the annual short-term credit needs at full development at TL 4494 million (mid-19482 prices). 2/ Ratio of (net present value of incremental O&M water charge and sales taxes) to (net present value o' investment and O&M costs borne by the government), calculated at 10 percent opportunity cost of capital. 3/ Excluding machinery for maintenance by DSI, which is recovered through the O&M water charge. 4/ All figures are in mid-'82 prices. - 51 - charge and sales tax are taken into account. This indicates that an additional portion of the project rent could be recovered for direct repayment of capital cost, while still leaving adequate incentive to farmers to participate in the project. If TL 5600 per ha gross (para 6.19) are added as direct capital cost recovery, the rent recovery index for the whole project will increase from 15.8 percent to 23.4 percent. VII. Benefits and Justification A. Beneficiaries and Employment 7.01 The project will directly benefit some 25,356 farm families. Of these, 23,344 presently own and cultivate land in the project area, and 2,012 will start cultivation on government-owned land to be reclaimed and redistributed or leased in the Igdir scheme. As a result of the project, at full development improved cultural practices will be applied on 119,000 ha gross of land (112,700 ha net) which will benefit from new or more efficient and secure irrigation. Although most of the existing land-owners in the project area are above the relative rural poverty level, the project is expected to contribute to the alleviation of rural poverty, since the government intends to give priority to landless families for the allocation of reclaimed government land in Igdir. Opportunity for temporary employment of landless people as hired labor on the project farms will also increase. 7.02 As a result of the project, total annual on-farm employment of the direct beneficiaries (25,356 families) will be more than doubled at full development. Employment will also be more evenly spread over the year, specially in Aksu where the establishment of greenhouses will considerably increase the on-farm labor requirements during the winter months. The project will thus absorb part of the endemic underemployment of farm operators. On the other hand, the seasonal peak labor demand will continue to exceed in most cases the family labor availability. As a result of the intensification of cropping patterns and practices with the project, the annual demand for seasonal labor will increase; it is estimated that with the project at full development, about 20,000 more people will find temporary employment on the project farms during the 3 months of peak farm labor. B. Economic Rate of Return 7.03 Full development will be practically achieved in year 12 of the project (1994). At that time total incremental benefits will amount to about 16 billion TL in 1982 economic prices. Of this, about 49% will be derived from the incremental production of fruit and vegetables, 13% from cotton and 12% from sugarbeet, the remainder corresponding to cereals, fodder, oil seeds, tubers and poplar wood. 7.04 The economic rate of return (ERR) has been calculated on the basis of 11 farm models assumed to be representative of the various units of each scheme. The following assumptions underlie the rate of return calculations; (a) All benefits and costs were calculated using constant mid-1982 prices, adjusted to represent benefits or costs - 52 - at the farm level. Benefits and costs were adjusted for all apparent tranfer payments such as taxes, duties, tariffs, and subsidies; (b) All expenses on civil works incurred prior to 1983 have been considered as sunk costs ancl excluded from the analysis. All expenses to be incurred from 1983 on have been taken into account, including those DSI works which are already under construction (and hence have been left out for financing by the Bank); (c) Border price of tradeable outputs were derived from the Bank's commodity price forecasts (cereals, cotton, sugarbeet, sunflower, citrus) or in their absence (vegetable, non-citrus fruit) frc,m recent EEC export prices, and were adjusted for graide differentials and for local handling and transportation costs back to the farmgate. They were held constant during the expected life of the project. Economic prices of non-tradeable outputs such as hay, straw, silage fodder, wood were derived from financial prices by applying the conversion factor for consumption goods (0.86), and were also held constant during the project life; (d) All imported inputs and locally procured tradeable inputs such as fertilizers, chemicals, and fuel were valued at their estimated 1982 border price. The shadow wage rate for incremental hired labor was estimated at half its market rate of TL 500 per manday, which reflects the present underemployment of the rural labor force in the project area. All other local costs, corresponding to 1982 domestic prices of non-tradeable goods and services, were adjusted by the standard conversion factor (estimated at 0.80) to translate them into border prices; (e) All iocremental production and incremental inputs utilization were phased in at the rate at which the farmers represented by the various models are expected to enter the project. Year I of the various models usually corresponds to the year when land levelling is done by TOPRAKSU. In some cases, farmers would have water already available during the previous year although on-farm developments works would not be completed; therefore the build-up of benefits considered in the economic analysis is relatively conservative; (f) Costs of procurement of machinery for DSI and TOPRAKSU, construction of irrigation and related works, and strengthening of the extension services were phased in according to the implementation schedules and investment tables; - 53 - (g) It is assumed that, in line with present Government's policy, the lira exchange rate will continue to be adjusted so as to offset the inflation differential between Turkey and its major trading partners; (h) A life of 30 years was assumed in the analysis of the project. Investment items (machinery for maintenance by DSI, farm equipment) were replaced regularly when necessary at the end of their respective useful life; however, no salvage value has been imputed in year 30 for such items because of the sTmall amounts involved and their negligible inpact on results using discounting techniques; and (i) Foregone crop production from the pre-project situation has been deducted throughout the project life. The without-project situation was considered to be equivalent to the present situation. Although some technological improvements would occur in the next 30 years without the project, these would be more than offset by the increased silting and decreasing efficiency of the irrigation system, as well as by increasing salinity resulting from poor drainage if the project was not implemented. 7.05 Based on these criteria and on the data shown in Table 7.1, the basic ERR for the whole project is estimated to be 20.3%. The ERRs of the individual units of each scheme are the following: ERR (%) ERR (%) Igdir Scheme 16.6 Eregli Scheme 29.6 Unit I 22.1 Unit 1 37.1 Unit II 24.1 Unit II 25.6 Unit III 12.1 Ercis Scheme 15.2 Aksu Scheme 21.4 Unit II 15.2 Unit I 25.6 Whole Project 20.3 Unit II 19.9 Unit III 17.7 7.06 The switching values (percentage change required in benefits or costs to reduce the ERR to the opportunity cost of capital, assumed to be 10%) are listed below; Net Present Value Switching Values (% change) at 10% Opportunity Benefits Costs Cost of Capital (TL million) Whole project -39.5 65.2 36481.1 Igdir scheme -29.2 41.2 10451.2 Aksu scheme -42.9 75.1 11968.2 Eregli scheme -54.3 118.9 12881.8 Ercis scheme -23.4 30.6 1180.0 - 54 - Table 7.1: ECONOMIC ANALYSIS WHOLE PROJECT (TL MILLION-MID 62 PRICES) YEAF 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 'NCR. BENEFITS '2TA6 T1CR9. BENEFIS - -23.50 099,03 2354.67 4998.93 8173.83 10430.41 11855.16 02742.83 13465,66 14211.68 14939,64 15528.25 16238.93 16930.45 16687.41 INCF. I1. COSTS [El - 8644.12 6136.45 5151.95 2856.40 - - - - - 2575.77 - - - - 'OPRAKSL - 2758.13 1779.05 1801.210 1693,05 1474.40 -0047,99 - - - - - - - - - EXTENSION - 100.27 108.58 24.65 - - - - - - - - - - FARMERS - 06.10 549,87 1048.38 1344.80 1070.64 718.15 317.27 214.55 120.43 54,45 31.64 221.80 646.88 491.89 175.,2 TOTAL INCR. IN0. 0AST - 11518.62 8574.25 8026.19 5895.05 2645.04 -329.84 317.27 214.55 120.43 54.45 2607.41 221.80 646.88 491.89 175.62 INCR, OPER0 , CO'S OI, 0 HAINT. - -194.04 36,51 197.02 287.59 359.11 359.11 359.11 359.11 359.11 359.11 359.11 359.11 359.10 359.11 359.11 EXTENSION - 13.39 35.18 43.14 43,25 43.26 43.26 43.26 43.26 43,26 43.26 43.26 43.26 43.26 43.26 43.26 FARMERS - -3.30 265.44 607.76 1469,82 2292,04 2666,88 2864,13 3050.00 3224.55 3374.14 3482,17 3543.80 3574.26 3584.97 3588.24 'OTAL INCR. OPER. C017 - -106,75 242.25 730.58 1683.31 2577.06 2951.89 3149,15 3335.02 3509.57 3659.15 3767.18 3828.83 3859.28 3869.99 3873.06 TOTAL INCR. COST - 11334.67 8911.38 8874.11 769570 5339.44 2739.40 3583.76 3666,92 3747.34 3830.95 6491.94 4167.97 4623.50 4479.22 4960.02 [NCR, NET BENEFIT - -11358.19 -8012.35 -6519.44 -2696,77 2834.39 7691,01 8271.79 9075.92 9718.32 10380.73 8447.71 11360.28 11615.43 12451.23 12521.39 YEAR 1998 0999 2000 2000-2002 2003 2004 2005 2006 2007 2008-2012 INCR. BENEFITS TOTAL INCR. BENEFITS 16239.14 16071.38 15907.13 05872.64 15872.64 15872.64 15872.64 85872.64 15872.64 15872,64 INCR. IN0. COSTS 0S3 - - - 2575.77 - - TOPRAKSU EXTENSION FARMERS - - 11.96 205.69 646,88 491.89 075.62 - TOTAL INCR. IN0. COST - - - - 2587.73 205.69 646.89 491.89 175.62 - I06R9 OPER. COSTS OP. I MAINT, 359.00 359.00 359.11 359.11 359.11 359.11 359.11 359.11 359.11 359.11 EXTENSION 43.26 43.26 43.26 43.26 43,26 43.26 43.26 43.26 43.26 43.26 FARMERS 3589,55 3589.55 3589.55 3589.55 3589.55 3589.55 3589.55 3589.55 3589.55 3589,55 TOTAL INCR. OPER. COST 5874.57 3874.57 3874.57 3874.57 3874.57 3874.57 3874.57 3874.57 3874.57 3874.57 TOTAL INCR. COST 3991.91 3991.91 3991.91 3991.91 6579.64 4207.00 4638.79 4483.80 9167.53 3991.90 INCR. NET BENEFIT 12247.23 12079.47 11915.21 11880.73 9293.00 10685.04 11233.85 11388.94 1>705.11 11880.73 - 55 - They show that the economic profitability of the project is relatively more sensitive to a decrease in benefits than to an increase in costs of the same magnitude. This focuses attention on the need to accompany irrigation development with an effective extension service in order to ensure that the projected yields will be achieved. 7.07 Delays in project benefits and on-farm costs would have the following effect on ERRs: ERR with Farm Benefits Base and Operating Costs ERR (X) Delayed 1 year Delayed 2 years Whole project 20.3 17.6 15.6 Igdir scheme 16.6 14.5 12.9 Aksu scheme 21.4 18.7 16.7 Eregli scheme 23.6 25.0 21.7 Ercis scheme 15.2 13.3 11.7 Such delays might occur in case the construction schedules assumed in the project would not be met. On the other hand, the farm models on which the economic analysis is based assume only gradual changes (over 4-5 years for each individual farm) in cropping patterns and yields, and the phasing-in of these models has been projected rather conservatively (para 7.04 (d)). C. Other Benefits 7.08 More than half of the project area is located in economically depressed regions (Igdir and Ercis), where the project impact on production and employment would contribute to regional development and reduce rural emigration. In Igdir, the project is expected to have substantial non-quantified social benefits through the allocation of government land to landless families (para 7.01). 7.09 Investment in machinery for operation and maintenance by DSI would significantly increase its implementation capacity. Under the project, an increasing share of on-farm development works will be contracted out by TOPRAKSU instead of being done by force account. This will foster the development of private contractors in the project area, as well as contribute to further increase of the implementation capacity for on-farm development works. 7.10 On the institutional side, assistance to MAF in intensifying agricultural extension in the project area is expected to demonstrate the benefits of integrating agricultural services with investments in irrigation development. This demonstration would be useful for the strengthening of extension services in other areas as part of the national program. Improvements in cost recovery are also expected under the project (para 5.14 & 5.15). - 56 - D. Project Risks 7.11 There are no unusual technical risks associated with the project, and those normally associated with the project benefits, costs, development period and implementation delays have been evaluated in the sensitivity analyses. On the organizational side, collaboration and cooperation between DSI and TOPRAKSU is already quite satisfactory. The only organizational risk is that the strengthened extension service, which is intended to be part of the national program of MAF, will have to be introduced in some of the project areas before implementation of this general program. Coordination between the strengthened extension services of the project area and DSI and TOPRAKSU will be organized through the office of the Governor (para 5.04). 7.12 There is a risk that additional work on the dams might be required as a result of safety inspections. The costs, if any, are unknown and will remain so until after inspection. One risk which could affect project viability and which other Bank-assisted projects in Turkey have faced in recent years would be an inadequate local budgetary support resulting in delays in DSI and TOPRAKSU contruction schedules. This risk is a serious one in the present economic climate of Turkey, and is likely to continue until economic recovery is well underway. To minimize this risk, assurances will be sought during negotiations that the necessary budget will be provided on time and that the Government will, for each year of the implementation period, review the matter with the Bank on this matter (para 4.17); assurances will also be sought that agricultural credit will be provided in adequate amounts to ensure adoption of the improved practices by the farmers (para 5.02d). The provision of a revolving fund (para 4.21) to avoid the need for the Government to advance funds to pay contractors' bills while awaiting reimbursement of the Bank's share should help facilitate prompt payment to contractors. VII. AGREEMENTS AND RECOMMENDATIONS 8.01 During negotiations, assurances were obtained from Government that: (a) a review to be completed by June 30, 1984, would be initiated to serve as a basis for government irrigation strategy and as a guide for future irrigation projects (para 4.11 & 5.12); (b) independent qualified experts would be employed to review and periodically inspect construction and maintenance of the Karacaoren, Ivriz and Kockopru dams (para 4.13); (c) annual updated financing plans would be submitted to the Bank for review, by September 30 each year, prior to approval of proposed budget allocations (para 4.17); (d) government funds would be allocated for tirnely completion of essential works not financed by the Bank loan and further subsecluent operation and maintenance (para 4.13 and 4.19); - 57 - (e) at least 75 percent of land levelling works supervised by TOPRAKSU would be done by contractors and local contractors would be encouraged to bid for at least 10 percent of subsurface drainage works (para 5.02b); (f) extension services would operate as described in para 5.02c; (g) provision of agricultural credit would be guaranteed by government in adequate amounts for incremental needs of farmers in the four project areas (para 4.17 & 5.02d); (h) project implementation and preparation of progress reports would be submitted by the three implementing agencies (para 5.03); (i) regional coordinating committees would be established for each irrigation scheme (para 5.04); (j) a project office section will be established by TOPRAKSU in Igdir (para 5.05); (k) extension services would be strengthened as described in para 5.06; (1) a training needs survey and workshop for designing relevant training programs for extension staff would be carried out during the first six months of the project and all training programs abroad would be submitted to the Bank for prior approval (paras 5.07 & 5.08); (m) government land irrigated under the project to be leased or sold to farmers under arrangements satisfactory to Bank and a detailed plan for disposition of irrigated government and village owned land will be submitted to the Bank no later than July 1, 1984 (para 5.09); (n) semi-annual and annual reports on the progress of project execution prepared by the agencies would be submitted in a timely manner to the Bank (para 5.10); (o) a project completion report would be submitted to the Bank no later than six months after project closing (para 5.11); (p) quarterly statements of project expenditures would be submitted to the Bank (para 5.13); (q) annual audits carried out by the Auditor General's office would be submitted to the Bank within nine months of the end of the fiscal year (para 5.13); and - 58 - (r) the costs of TOPRAKSU on-farm development works for the project would be recovered over 20 years (para 5.14); and (s) improved DSI cost recovery would be established (para 5.15). 8.02 The passage of appropriate legislation permitting TOPRAKSU recovery of costs of on-farm development works would be a condition of Board presentation. 8.03 On the basis of the above assurances and agreements, the project is suitable for a Bank loan of US$115.3 million to the Government of Turkey. - 59 - ANNEX 1 TURKEY LAEE IRRIGATION PROJECT Project Works The works to be accomplished under the project would be as follows: (a) Igdir Irrigation Scheme - headworks of one irntake, 2 settling basins, 31 km feeder canal, 665 m feeder tunnel; irrigation networks of 144 km main canal, 8 km rehabilitation of main canals, 237 km secondary canal, 120 kin rehabilitation secondary canals, 381 km tertiary canal and 208 km rehabilitation tertiary canals; drainage networks of 327 km main and secondary drains, 121 km rehabilitation of main and secondary drains, 383 km tertiary drains and 284 km rehabilitation tertiary drains; on-farm works of 38,000 ha land levelling, 12,500 ha subsurface drains, 157,500 tons soil amendment (gypsum), 14,000 ha soil reclamation, 38,000 ha surface drains and feeder roads for access to 38,000 ha; (b) Aksu Irrigation Scheme - headworks of one diversion weir, one remodelling of weir and one intake; irrigation networks of 69 km main canal, 30 km rehabilltation main canals, 1250 m main tunnel, 1500 m main siphon, 55 km secondary canal, 10 km rehabilitation secondary canals, 453 km tertiary canal, and 19 km rehabilitation tertiary canals; drainage networks of 4 km main drain, 41 km secondary drains and 20 km tertiary drains; flood protection works of 70 km of flood cikes and 2 million mJ of river channel improvement; and on-farm works of 17,000 ha land levelling, 7,000 ha subsurface drains, 18,500 na surface drains and feeder roads for access to 17,000 ha; (c) Eregli Irrigation Scheme - on-farm works of 17,000 ha land levelling, 9,000 ha subsurface drain, 22,500 tons soil amendment (gypsum) 4,000 ha soil reclamation, 22,000 ha surface drains and feeder roads for access to 22,000 ha; and (d) Ercis Irrigation Scheme - irrigation networks of 51 km main canals, 400 m main siphons, 65 km secondary canals, 108 km tertiary canals; drainage networks of 33 km secondary drains, and 99 km tertiary drains; and on-farm works of 5,300 ha land levelling, 500 ha subsurface drains, 5,300 ha surface drains and feeder roads for access to 5,300 ha. - 60 - ANNEX 1 Table 1 TURKEY ISDIR-AKSU-EREGLI-ERCIS (IAEE) IRRIGATION PROJECI' Table 102. IGDIR SCHEME: CAPITAL COSTS 2 Detailed Cost Table (TL Million) Ouantitw Olase Costs Phs. ------------------ --------------------------…------ Cont, For. Gross Sumanr Unit 1 2 3 4 5 Total Unit Cost 1 2 3 4 5 Total Rate Exch- Tax Rate Accowut I. INVESTMENT COSTS A. VEHICLES AND EQUIPMENT 1. otM CIVIL WORKS DSI EXCAVATOR, TRACKED. 1.5 CY NO. - 8 - - - B 27.815 - 222.5 - - - 222.5 0.1 1 0 QI EXCAVATORD, WHEEL? 0.75 CY NO. - 8 - - - 8 29.801 - 238.4 - -. - 238.4 0.1 1 0 DI EXCAVATOR, GRADALL NO. - B - - - 8 31-788 - 254.3 - - - 254.3 0.1 1 0 Ql TRACTOR? TRACKED, 140 HP NO, - 8 - - - 8 14.901 - 119.2 - - - 119.2 0.1 1 0 G1 LOADER, TRACKED, 150 HP NO , 6 - - - 6 13,907 - 83.4 - - - 83.4 0.1 1 0 GI GRADER, 125 HP, 12 FT NO, - 4 - - - 4 11.921 - 47.7 - - - 47.7 0.1 1 0 GI TRACTOR, WHEEL, 60-80 HP NO. 4 - - - 4 2.98 - 11.9 - - - 11.9 0.1 1 0 01 TRAILER UNIT, 60T NO. - 5 - - - 5 19.868 - 99.3 - - - 99.3 0.1 1 0 DI DUMPTRUCK, OT NO. - 20 - - - 20 9.934 - 198.7 - - - 198.7 0.1 1 0 DI TRUCK,8-1OT NO, - 6 - - - 6 4,967 - 29.8 - - - 29.8 0.1 1 0 GI STATION WAGON NO. - 15 - - - 15 2.98 - 44.7 - - - 44.7 0.1 1 0 GI GENERATOR, 80-100 KV NO, - 2 - - - 2 2,781 - 5.6 - - - 5.6 0.1 1 0 Qi MOTORCYCLE 150-250 CC NO. - 14 - - - 14 0.199 - 2.8 - - - 2.8 0.1 1 0 GI HIRELESS No. 0.1 - - - - 0-1 0.06 0.0 - - - - 0.0 0.1 1 0 DI SPARE PARTS NO. - - - - - - - 135.8 - 135.8 - 271.7 0.1 1 0 GI LOCAL HANDLING NO. - - - - - - 0.0 149.4 - 13.6 - 163.0 0.1 0.45 0 GI Sub-Total OtM CIVIL WORKS DSI 0.0 1,643.6 - 149.4 - 1,793.0 2. CONSTRUCTION ON FARM WORKS TOPRAKSU MOTORSCRAPER 11 CY NO. 13 - - - - 13 17.881 232.4 - - - 232.4 0.1 1 0 OF TRENCHER 100 HP NO. 10 - - - - 10 15.894 158.9 - - - - 158.9 0.1 1 0 OF LOADER, WHEEL, 130 HP NO. 4 - - - - 4 9.934 39.7 - - - - 39.7 0.1 1 0 OF DCZER 120 HP NO. 3 - - - - 3 10,927 32.8 - - - - 32.8 0.1 I 0 OF EXCAVATOR, TRACKED. 1.5 CY NO. 2 - - - - 2 27.815 55.6 - - - - 55.6 0.1 1 0 OF BULLDOZER WITH RIPPER, 180 HP NO, 1 - - - - 7 17.881 125.2 - - - - 125.2 0.1 1 0 OF MODILE REPAIR SHOP NO. 4 - - - - 4 13,907 55.6 - - - - 55.6 0.1 1 0 OF MOBILE LUBRICATION UNIT NO, 4 - - - - 4 9.934 39.7 - - - - 39.7 0.1 1 0 OF TRAILER UNIT 30T NO. 3 - - - - 3 13.907 41.7 - - - - 41.7 0.1 1 0 OF TRAILER, LOW BED lOT NO, 4 - - - - 4 7.947 31.8 - 31.8 0.1 1 0 OF VEHICLES 4 WHEEL NO. 20 - - - - 20 1.987 39.7 - - - - 39.7 0.1 1 0 QF SPARE PARTS NO. - - - - - - 85.3 - 85.3 - - 170.7 0.1 1 0 QF LOCAL HANDLING AND DUTIES NO, - - - - - - 657.0 - 59.7 - - 716.8 0.1 0.06 0.86 OF Sujb-Total CONSTRUCTION ON FARM WORKS TOPRAMSU 1,595.7 - 145.1 - - 1,740.8 3, EXTENSION SERVICES MOTORCYCLES. LIGHT NO. 4 17 10 - - 31 0.099 0.4 1.7 1.0 - - 3.1 Ol 1 0 QE MOTORCYCLES NO. 8 - - - - 8 0.212 1.7 - - - - 1.7 0.1 1 0 DE CARS NO. 4 2 - - - 6 1.457 5.8 2.9 - - - 8.7 0.1 1 0 QE MACHINERY SETS NO. 1 1 - - - 2 0.755 0.8 0.8 - - - 1.5 0.1 0.76 0 DE SYPHINS, 400 NO. - - - - - - 0.0 0.0 - - - 0.1 0.1 0.33 0 GE SUNDRY EQUIPMENT SET 12 17 10 - - 39 0.009 0.1 0.2 0.1 - - 0.4 0.1 0.33 0 GE Sub-Total EXTENSION SERVICES 8.8 5.5 1.1 - - 15.5 Sub-Total VEHICLES AND EQUIPMENT 1.604.5 1.649.1 146.1 149.4 -3,549.2 Total INVESTMENT COSTS 1,604.5 1P649.1 146.1 149.4 - 39549.2 Total BASELINE COSTS 1Y604.5 1,649.1 146.1 149.4 - 3,549.2 March 9 1983 10:29 -61- ANNEX 1 Table 2 TURKEY ISDIR-AKSU-EREGLI-ERCIS IRHEE) IRRI6ATION PRFJECT Table 202. AKSU SCHEME-CAPITAL COST 2 Detailed Cast Table (TL Million) Ouantito Base Costs Phw, … ------------------------------- Cont, For. Gross Sumara Unit 1 2 3 4 5 Total Unit Cost 1 2 3 4 5 Total Rate Exch. Tax Rate Acount ==-Sn fl* S AC == C === C 5===S CA =--==== CAC== CA SACK== KZCK StAR CCCSASS KCKAK -=- KSK:CKCK SKKCC I. INVESTNENT COSTS A. VEHICLES AND EQUIPMENT 1. 0 AND N CIVIL WORKS DSI EXCAVATOR, TRACKED, 1.5 CY NO - 2 - - - 2 27.815 - 55.6 - - - 55.6 0.1 1 0 RI EXCAVATOR, WHEEL, 0,75 CY NO - 2 - - - 2 29.801 - 59.6 - - - 59,6 0.1 1 0 RI EXCAVATORP GRADALL NO - 2 - - 2 31.788 - 63.6 - - - 63.6 0.1 I 0 QI TRACTOR, TRACKED, 140 HP NO - 4 - - 4 14.901 - 59.6 - - - 59.6 0.1 1 0 RI LOADER, TRACKED, 150 P NO - 2 - - - 2 13.907 - 27.8 - - - 27.8 0.1 1 0 0I GRADER, 125 HP, 12 FT NO - 2 - - - 2 11.921 - 23.8 - - - 23.8 0.1 1 0 DI TRACTOR, WHEEL. 60-O0 HP NO - 3 - - 3 2.98 - 8.9 - - - 8.9 0.1 1 0 RI TRAILER LUNIT, 60T NO - 2 - - - 2 19.068 - 39.7 - - - 39.7 0.1 U 0 0l DUMPTRUCK, IOT NO - 6 - - - 6 9,934 - 59.6 - - - 39.6 0.1 1 0 RI TRUCK, 8-IOT NO - 3 - - - 3 4.967 - 14.9 - - - 14.9 0.1 1 0 0l STATION WAGiN NO - 5 - - - 5 2.9 - 14. - - - 14.9 O.1 I 0 Ql GENERATOR. N0-100 KVA NO - 2 - - 2 2.781 - 5.6 - - - 5.6 0.1 I 0 QI NOTDRCYCLE, 150-250 CC NO 8 - - - 8 0.199 - 1.6 - - - 1.6 0.1 1 0 0l WIRELESS No - 8- - - 8 0.06 - 0.5- - - 0.5 0.1 1 0 01 SPARE PARTS NO - - - - - - - 43.6 -436 - 7.2 0.1 1 0 Ql LOCAL HANDLING NO - - - - - - - 47.9 - 4,4 - 52.3 0.1 0.45 0 D1 Sub-Total 0 AND N CIVIL WORKS DSI - 527.3 - 47.9 - 575.2 2. CONSTRUCTION ON FARN WORKS TOPRAKSU NOTORSCRAPER. 11 CtY NO 6 - - - - 6 17.801 107.3 - - - - 107.3 0.1 1 0 OF TRENCHER, 100 HP NO 5 - - - - 5 15.894 79.5 - - - - 79.5 0.1 1 0 XF EXCAVATOR, TRACKED, 1.5 CY NO I - - - - 1 27.815 27.0 - - - - 27.8 0.1 1 0 QF SPARE PARTS NO - - - - - _ 21.5 -21.5 - - 42.9 0.1 1 0 OF LOCAL HANDLING AND DUTIES NO - - - - 165.2 - 05.0 - - 180.2 0.1 0.06 0.06 F Sub-Total CONSTRUCTION ON FARN WORKS TOPRAKSU 401.2 - 36.5 - 407.7 3. EXTENSION SERVICES MOTORCYCLES, LIGHT NO 8 80 - 24 0.099 0.8 0.8 0.8 - - 2.4 0.1 1 QE MOTORCYCLES NO 4 4 - - 8 0.212 0.8 0.8 - - - 1.7 0.1 1 0 E CARS NO 2 2 - - - 4 1.457 2,9 2.9 - - - 5.8 0.1 1 0 DE MACHINERY SETS NO I _ 2 0.404 0.4 0.4 - - - 0.8 0.1 0.76 0 GE SYPHONS, 200 NO - - - - - - 0.0 0.0 0.0 - - 0.1 0.1 0.33 0 QE SUNDRY EXTENSION EOUIPMENT SET 13 13 6 - - 32 0.009 0.1 0.1 0.1 - - 0.3 0.1 0.33 0 DE Sub-Total EXTENSION SERVICES 5.1 5.1 0.9 - - 11.1 Sub-Total VEHICLES AND EGUIPHENT 406.3 532.4 37.4 47.9 - 1,024.0 B. EXTENSION BUILDINGS OFFICE SERIK. 330 SON NO. - - - - -4.8 6.6 - - - 11.4 0.15 0.24 0 DU GROUP OFFICES AND HOUSING NO. 4 4 - - - 8 3.311 13.2 13.2 - - - 26.5 0.15 0.24 0 DU Sub-Total EXTENSION DUILDINGS 18.0 19.8 - - - 37.9 C. TRAINING AND CONSULTANTS 1. INITIAL EXTENSION STAFF TRAINING VILLAGE FOREMEN NO. 8 0 8 - - 24 0.04 0.3 0.3 0.3 - - 1.0 0.15 0 0 TE GROUP TECHNICIANS NO. 4 4 - - - B 0.02 0.1 0.1 - - - 0.2 0.15 0 0 TE SUBIJECT HATTER SPECIALISTS NO. 2 2 - - - 4 0.026 0.1 0.1 - - - 0.1 0.15 0 0 TE Sub-Total INITIAL EXTENSION STAFF TRAINING 0.5 0.5 0.3 - - 1.2 2. TRAINING ABROAD DSI, TOPRAKSU, EXTENSION SERVICES LUNP SM- 6.4 6.4 S.4 6.4 6.4 31.8 0 1 0 TA 3. CONSULTANTS CONSULTANTS NASTERPLAN IRRIGATION - - - - - 2.6 2.6 - - - 5,3 0 1 H TC Su1-Total TRAINING AND CONSULTANTS 9.5 9.5 6.7 6.4 6.4 38.3 Total INVESTMENT COSTS 433. 561.7 44.0 54.3 6.4 1,100.2 Total BASELINE COSTS 433,0 561.7 44.0 54;1 6.4 1,100.2 Mhrch 9- 1903 10:30 - 6 2 - ANNEX I Table 3 TURKEY IGDIR-AKSU-EREGLI-ERCIS (IAEE) IRRIGATION PROJECT Table 302. EREGLI SCHEME-CAPITAL COST 2 Detailed Cost Table (TL Million) Ouantitu Base Costs Phy. --------------------- ------------------------------------ Cont. FOr. Gross Sunsarv Unit 1 2 3 4 5 Total Unit Cost 1 2 3 4 5 Total Rate Exch, Tax Rate Account 1. INVESTMENT COSTS A. VEHICLES AND EGUIPMENT 1. 0 AND H CIVIL WORKS DSI EXCAVATOR. TRACKED, 1.5 CY NO. 2 - - - 2 27.815 - 55.6 - - - 55.6 0.1 1 0 OI EXCAVATORD WHEEL. 0.75 CY NO. 4 - - - 4 29.801 - 119.2 - - - 119.2 0.1 1 0 GI EXCAVATOR, GRADALL NO. 4 - - - 4 31.788 - 127.2 - - - 127,2 0.1 1 0 DI TRACTOR. TRACHED. 140 HP NO, 6 - - 6 14.901 - 89.4 - - - 89.4 0.1 I 0 GI LOADER. IRACKED. 150 HP NO. 4 - - - 4 13.907 - 55.6 - - - 55.6 0.1 1 0 GI GRADER. 125 HP, 12 FT NO. 3 - - - 3 11.921 - 35.8 - - - 35.8 0.1 1 0 GI TRACTOR. WHEEL. 60-80 HP NO. 2 - - - 2 2.98 - 6.0 - - - 6.0 0.1 1 0 DI TRAILER UNIT, 60T NO. 2 - - - 2 19.868 - 39.7 - - - 39.7 0.1 1 0 0I DJMP TRUCK, lOT NO. 10 - - - 10 9.934 - 99.3 - - - 99.3 0.1 1 0 GI TRUCK, B-lOT NO. - 4 - - - 4 4.967 - 19.9 - - - 19.9 0.1 1 0 8I STATION WAGON NO. - 10 - - - 10 2.98 - 29.8 - - 29.8 0.1 1 0 01 MOTORCYCLE. 150-250 CC NO. - 12 - - - 12 0.199 - 2.4 - - - 2.4 0.1 1 0 GI WIRELESS NO. - 12 - - - 12 0.06 - 0.7 - - - 0.7 0.1 1 0 GI SPARE PARTS NO. - - - - - - - 68.1 - 6B.1 - 136.1 0.1 1 0 01 LOCAL HANDLING NO. - - - - - - - 74.9 - 6.8 - 81.7 0.1 0.45 0 GI Sub-Total 0 AND H CIVIL WORKS DSI - 823.5 74.9 - 898.4 2. CONSTRUCTION ON FARM 0ORKS TOPRAKSU MOTORSCRAPER, 11 CY NO. 9 - - - - 9 17.881 160.9 - - - - 160.9 0.1 1 0 OF TRENCHER, 100 HP NO. 6 - - - - 6 15.894 95.4 - - - - 95.4 0.1 1 0 OF LOADER. WHEEL, 130 HP NO. 3 - - - - 3 9.934 29.8 - - - 29.8 0.1 1 0 OF DOZER, 120 HP NO. 2 - - - - 2 10.927 21.9 -. - - - 21.9 0.1 1 0 OF EXCAVATOR. TRACKED, 1.5 CY NO. 2 - - - - 2 27.815 55.6 - - - - 55.6 0.1 1 0 OF BULLDOZER WITH RIPPER, 160 HP NO. 2 - - - - 2 17.881 35.8 - - - - 35.8 0.1 1 0 OF MOBILE REPAIR SHOP NO. 2 - - - - 2 13.907 27.8 - - - 27.8 0.1 1 0 OF MOBILE LUBRICATION UNIT NO. 2 - - - - 2 9.934 19.9 - - - - 19.9 0.1 1 0 OF TRAILER uNIT. 30T NO. 2 - - - - 2 13.907 27.8 - - - - 27.8 0.1 1 0 OF TRAILER, LOW BED, lOT NO. 2 - - - - 2 7.947 15.9 - - - - 15.9 0.1 1 0 OF VEHICLES, FOUR WHEEL NO. 6 - - - - 6 1.987 11.9 - - - - 11.9 0.1 1 0 OF SPARE PARTS No. 5 - - - - - 50.3 - 50.3 - - 100.5 0.1 1 0 OF LOCAL HANDLING AND DUTIES NO. - - - - - - 387.0 - 35.2 - - 422.2 0.1 0.06 0.86 OF Sub-Total CONSTRUCTION ON FTRM WORKS TOPRAKSU 940.0 - 85.5 - - 1,025.4 3. EXTENSION SERVICES MOTORCYCLES. LIGHT NO. 22 - - - - 22 0.099 2.2 - - - - 2.2 0.1 1 0 DE MOTORCYCLES NO. 2 - - - - 2 0.212 0.4 - - - - 0.4 0.1 1 0 GE CARS NO. 3 - - - - 3 1.457 4.4 - - - - 4.4 0.1 1 0 DE MACHINERY SETS NO., 2 - - - - 2 0.424 0.8 - - - - 0.8 0.1 0.76 0 GE SYPHONS.*160 NO. - - - - - -00 - - - - 0.0 0.1 0.33 0 GE SUNDRY EQUIPMENT SEI 5 - - - - 5 0.093 0.5 - - - - 0.5 0.1 0-33 0 GE Sub-Total EXTENSION SERVICES 8.3 - - - - 8.3 Sub-Total VEHICLES AND EQUIPMENT 948.3 823.5 85.5 74.9 - 1,932.1 B. EXTENSION BUILDINGS OFFICE EREGLI, 330 SOH NC. - - - - - - 4.8 6.6 - - - 11.4 0.15 0.24 0 BU SKS HDUSING, 330 50M NO. - - - - - _ 4.8 6.6 - - - 11.4 0.15 0.24 0 BU VILLAGE TECHNICIAN HOUSES NO. 6 6 - - - 12 3.311 19.9 19.9 - - - 39.7 0.15 0.24 0 BU Sub-Total EXTENSION BUILDINGS 29.4 33.0 - - - 62.5 Total INVESTMENT COSTS 977.7 136.6 85.5 74.9 - 1,994.5 Total BASELINE COSTS 977.7 856.6 85.5 74.9 - 1,994.5 1=== ====:= == == ==3== = March 9, 1953 10:31 IVJDII-AXS!J-EREIˇi-ERTS (lACE) TAR S TEE PROJECT Tabib 402. ERr;2 SCHhE -CAPT'N rCEI 2 3iet3iier Cr5t Is5ls toss Costs ------------- .......... - -_.------ ------------------wI'. !. -S ' r: Unit 1 2 2 5 S ' Urit C;st i 2 7 4 S &siC Ps> Us:u Tai U> I. INESTMENT COSTS A. VEHICLES AND EQUIPMENT 1. 0 AHO H CIVIL WORKS DS' EXCAVATORF TRACKED; 1.5 CY NO. - 2 27-5 - _ EXCAVATOR; WHEEL; 0.75 CT No, - 2 - - - 2 12-- 570 -- Y EXCAVATOR, ERADALL NO. - I - - -S - 31 - '. TRACTOR? TRACKEDY 140 MP NO. 2 ' Di - 2957 -2- p,A WADERv TRACKED, 150 HP NO. - 2 I 57, - 27.2 - - 4 - ; r GRADER9 12S HP; 12 FT NO. 2 - 2 '1,921 23,r - -38 .i '' TRACTOR, .HEEL 60-SP HP NO. - 2 -- - - 6 0 TRAILER UNITY 60T No, I - - - I 9c- Q,A * 9 DUMPTRUCKl IOT NS, - 4 4 - 7 - - - :37.7 ' i 9 TRUCK; 8-iOT No, - - -- - - L4 ? Pil ' P '.: STATION WAGON N,., 5 - - -- 5 - MOTORCYCLE? 150-250 CC NOf ! i - _- -, 7 ' : HIRELESS 4 -0 7 - s $6i O' SPARE PARTS ND, - 2,6 - _ -27 - LOCAL HANDLING 7 U… - - … - … - - 35.0 - -. - C 22 Sub-Total 0 AND N CIVIL WORKS DII - 357.P - -2 c. 2. EXTE-NSION SERVICES MOTORCYCLES? LINHT Ha - 2 - - 3 0.,2 9 6ˇ -, CARS NO. 2 2 7 - - 2 ;,4_7 1I5 :9 - - - MACHINERY SETS NO. - E -S - - I - 0,5- SYPHONS 6d NO.-- - C7 SUNDRY EXTENSION EQUIPMENT SET - 2 - - - 3 d Qd° - e.a - . 3 Su-Total EXTENSION SERVICES 7 ! _ Sub-Total VEHICLES AND EOUIPMENT *.S 225.2 5.7 -t B, EXTENSION BUILDINGS VILLAGE TECHNICiAN HOUSES O.A 2-2 37 0 - - - j .1J 2A,i, C. TRAINING AN SUTANT5 1. INI7IAL STAFF TRAINIH6 VILLAGE TECHNICIANiS NO. _ I - _ _ 096 - 2 - - - 2 70 SUlBJECT MATTER SPECIALISTS NC. - 2 2 - d .04 - V.1 0.1 - - 2 2 C Sub-Total INITIAL STAFF fRAINING _ p,9 05 .- 0d; 2. TRAINING ATROAD TRAINING DSII TOPRAKSU. EXTENSIiN SERVICES - - - - - -B 7 9 * 3. CONSULTANTS CONSULTANTS NASTERPLAN IR IG70N - - - - - - - Sub-Total TRAINING AND CONSULTANTS - s Total INVESTMENT COSTS ¾? Q&v .7 27.- l - Total BASELINE COSTS -,7 3. : li '. 4 March 99 1983 10Q31 TURKEY IGDIR-AKSU-EREGLI-ERCIS (IAEL) IRRIGATION PROJECT Sucars Account bn Tfie (TL Million) Base Costs P Price Base Costs Cont. on Foreigs Exchanse No, of --------------------------------------------------- Base Costs ---------------- Urit Unit CLit Units 1 2 3 4 5 Total (US$ Million) msount 1, INVESTMENT COSTS . nAIN IRROOTIUON ' DRAINAGE WORK0 HEAD WORKS - 279.5 75B.9 605.3 156.3 - 1.800,0 10.4 40.0 720.0 MAIN 4ANALS 773,5 1,365.6 1,255,6 800.7 - 4,b00.9 25.0 40.0 1,704.4 IPRIGATION NETWORKS - 1,057.0 1,985.4 2,162.9 1,382.8 - 6,588.1 38.8 40.0 2,635,2 OOUINAGE NETWORS 1!119.2 1,532.4 1,502.0 944.4 - 5,09a0, 2Y97 40.0 2.039. -t '-''T) Mh1lN iPpiTGoITN U DRATNAGE WOKS 3,229.1 5,642.4 5.525.S 3,349.7 - 17,747,0 104.0 40.0 7,098,8 fii.ssicl ontingencis,s - 484.4 846.4 82809 502.4 - 2,bb2.0 - 40.0 1,064,8 "ruce v7r;ti¶2e27le - 07.1 666.3 ,,159,9 990.4 - 2,911.0 - 40.0 1,164,? Tot-,! iNCLUDING CONTINGENCIES 3-00.6 7,15,0 7,514.6 4,850.6 - 23,320.8 104.0 40.0 9.32S.3 FOreLsi E-cbhndU 1.520,3 2,062.0 3,005.0 1,940.2 - 9020.3 - 0.0 0.0 . 0N OARM WORKS LuND LEVELLING - 80.! 1,210.6 1.215.9 i,2i7,2 1,050.3 5,474.2 33.4 40.4 2-212,4 SUATORF4CE DR01N6 - - 792.1 814.6 813.2 792.1 3,211 9 20.i 25.0 803.G SOIL AMENDMENTS - - 189.4 205.3 201.3 194.7 7T90. 4.9 45.0 355.0 iUFFhCE DRhINS & RODS - 111.3 172.2 169.5 180.1 16S., 798.7 4.9 45.0 359.4 S.ub-TCtdl UN FhRO WORF;S 091.4 2,364.2 2,405.3 2,411.n 2,202.6 10,275.5 63.3 36.3 3,730,7 Fhusical Continsencies 133.7 354.6 360.0 361.0 330.4 1,541.3 36.3 559.6 Frice [ortinsencie6 - 24.1 279.2 504,9 718.9 847.9 2,375.0 - 35.8 851,0 Sub-Total INCLUDING CONTINGENCIES 1,049,1 2,998.1 3,271.0 3,492.0 3,381.0 14,191,0 63.3 36.2 5,141.7 Foreisr Exnchanse 431.4 1,079.0 1,176.2 1,257.0 1,19,7. 5,141.3 - 0.0 0.0 Ci EGUPIMENT O&M M0N10 I WORKS 0.06-31.788 274 0.0 3,388.4 - 300.3 - 3,696.5 21.1 95.0 3,511.6 CONETRUCTION ON FARM WORKS 1.907-27.S15 124 2,936.9 - 267.0 - 3,203.9 17.0 61b. 1,909.5 EXTENSION SERVICES 9.009-1.457 200 23' 14.8 2,0 - - 40.5 0.2 95,3 38.6 Sb-Tot31 EGOUIPENT 2,96U.6 3.403,3 269.0 3003, - 6,940.0 30.4 79.5 5,519.7 Fhurical Continnoencies - 296.1 340.3 26.9 30.8 - 694.1 79,5 502.3 Frice Tontir,nences - 76.4 384.4 54.0 87.0 - 602.6 - 87.6 529.1 Sub-Total INCLUDING CONTINGENCIES 3,333.1 4,120.0 349,0 426.7 - 8,237.6 30.4 80.1 6,600.8 Taxes - 1,166.8 - 122.6 - 1,289.3 0.0 0.0 Foreisn Exechanse - 2,050.0 3,921.5 215.9 405,3 6,600,8 - 0.0 0.0 D. ENGINEERINE MAIN 1D WORKS - 322.9 504.2 552.6 335.0 - 1,774.7 10.4 0.0 0.0 ON FORM WORKS - 09.1 236.4 240.5 241.2 220.3 1,027.5 6.3 0.0 0,0 Sub-Total ENGINEERING 412.1 800.7 793.1 576.2 220.3 2,802.2 16,7 0.0 0,0 Fhssical Continsencies - 6. 120.1 119.0 06.4 33.0 420.3 - 0.0 0,0 5¼C5 Censinneiss - 11.1 94,5 166.5 171,7 04.0 528.7 - 0.0 0,0 Sub-Total INCLUDING CONTINGENCIES 485.0 1,015.3 1,078.6 934.3 338.1 3,751,3 16.7 0.0 0.0 E. LAND E COUISITION - 039.7 906.0 050.3 449.0 - 3,053,0 17.0 0.0 3.0 Frice Continnsencies - 19.- 93.0 156.7 116.4 - 385.8 - 0.0 0.0 Sub-Total INCLUDING CONTINGENCIES 859.4 999,Q 1,014.9 565.4 - 3,438.7 17.6 0.0 O.0 F, BUILDING5 3.311 60 103.2 123.7 33.1 - 260.0 1,4 24.0 62.4 Phusiocl Cortir,gencies - 15.5 18.6 5.0 - - 39.0 - 24.I 9,4 Price Contir,gencies - 2.8 14.6 7.0 - 24.3 - 24.0 5.8 Sub-Total INCLUDING CONTINGENCIES 121.4 156.8 45.0 - - 323.3 ',4 24.0 77., Foreign ExchanYe - 29.1 37.6 10.8 - - 77.6 - 0.0 0.0 G. TRAT1NIN ANB CONSULTANTS ExTENSION, INITIAL 0.02-0.06 101 2.1 1.8 1.0 - - 4.9 0.0 3.6 . TRAINING ABR9AD 6 19.1 19.1 19.1 19.1 19.1 95.4 Io 150.3' 95.4 CONSULTANTS - 9.9 9,c - - - 19. 90., 100.0 19.9 Sub-Total TRAINING AND ]ONSULTANTS 31.1 30.8 20.1 19,1 19.1 120.1 0.7 96.1 115.4 FOHuocal Cortingencies - 0.3 Q.3 ).1 - - 0.7 - 3.6 . 0 PFice ContinoevcieE - 0.7 3.2 3.' 4.9 6.4 18.9 - 97.6 19.5 Sub-Total INCLUDING CONTINGENCIES 32.1 34.3 23.9 24.0 25.5 139,8 0.7 05.9 133.9 Foreion E:chense 20.9 32.1 22,o ?4,0 25,5 133,w - 2.0 0 ,, Total IN'!EOTENT COSTS 0,467,1 13,271.0 9,904.6 7,113.8 2,442.0 41,198.6 242.2 40.1 16,526,9 Fhusical Contir.¸encies - 991.7 1,680.2 1,340.6 981.5 363.4 5,357.5 - 40,8 2,185.3 Price CoiU er,"enc±es - 221.9 1,535.3 2,052.6 2,098.3 939.1 o,847.1 - 37,5 7569.2 Total INCLUDING CONTINGENCIES 9,sBO.8 16,486.5 13,297.9 10,193.6 3,744.5 53,403.2 242.2 39.9 21.281,9 TO .eE - 1,166.8 12:.6 - - 1,289.3 - 0.0 0.2 ror. E.:.har.e - 4,068.6 7,932,2 4,4313 3,626.6 1,223.1 21,281.9 0.6 3.3 II. RECURRENT 3OST3 4. OS1 361N ID WORKS - 83.8 126.2 424.1 620.9 851.9 2,107.0 13.o 25.C 526.3 Price Cortinaenceo- 2.0 13.0 77.4 160,9 285.2 538.5 - 25.0 134-0 ub-6otal INCLUDING CONTINGENCIES 85.9 139.2 501.5 781.9 1,137 .1 2,645.5 13.6 25.0 661.4 Foreign E!cchanre - 21.5 34.8 125.4 195.5 284.3 661.4 - 0.0 0.0 0. EYTENSION SERVICES ST0FF 0.013-0.954 760 11.1 30.6 42.1 43.0 43.0 169.8 1.1 0.0 O.C ECUUIFhENT AND [OILDINC5 0.009-1.113 2,883 37.9 63.6 68.9 70.4 70.5 311.3 1.9 71,8 223.4 Sub-Total EXTENSION SERVICES 47.0 94.2 111.0 113.4 113.5 481.1 3.0 46.4 223.4 Phunical Continsencies - 7.3 14.1 16.6 17.0 17.0 72.2 - 46.4 33.5 Price Contingencies - 1.3 11.1 23.3 33.8 43,7 113.2 - 44.3 50.2 Sub-Tot2l INCLUDING CONTINGENCIES 57.6 119.5 150.9 164.2 174.2 666.5 3.0 46.1 307.1 Foreign Exchange - 34.2 59.5 66.9 71.3 75.2 307.1 - 0.0 0.0 Total RECURPENT COSTS 132.8 220.4 535.1 734.3 965.4 2,588.1 16.5 29.0 750.1 Rhasical Contingences - 7.3 14.1 16.6 17.0 17.0 72.2 - 46.4 33.5 Price Continsencies - 3.3 24.1 100.7 194.7 328.9 651.7 - 28.4 184.8 Total INCLUDING CONTINGENCIES 143.5 258.7 652.5 946.1 1,311.3 3,312.0 16.5 29.2 968.4 Foreigr Exchange - 55.6 94,3 192.3 266.8 359.4 968.4 - 0.0 0.0 Total BASELINE COSTS 0,600.0 13,491.4 10,439.7 7,848.2 3,407.4 43,786.7 258.7 39.5 17,277.1 Phbsical Contingencies - 999.1 1,694.4 1,357.3 998.5 380.5 5,429.7 - 40.9 2,219.3 Price Contingenries - 225.2 1,559.3 2,153.3 2,293.0 1,268.0 7,498.8 - 36.7 2,754.0 Total PROJECT COSTS 9,824.3 16,745.1 13,950.3 11,139.6 5,055.8 56,715.2 250.7 39.2 22,250.3 Ta.es - 1,166.8 - 122.6 - - 1,289.3 - 0.0 0.0 Foreigo Exchange - 4,124.3 8,026.5 4,623.6 3,893.4 1,582.6 229250.3 - 0,0 0.0 March 9, 1983 10:32 TURKEY II3IR-AKSO-EREOLI-ERCIS (IAEE) IRIGATION PROJECT Sumarcn Account Rn Project Cuoeonent ITI. Million) Physical Contingencies EREGLI ERCIS ------------- 1GDIR SCHEME AKSU SCHEME SCHEME SCHEHE Total 2 ARount I. IN'ESTMENT COSTS a MOAIN TRRIGhTITN S TOTIhAGE WORKS HEAD WORKS 1-006.6 793.4 - - 1,800.0 15.0 270.0 MHIN CANALS 2,033,1 1,739.1 4838. 4,260,9 15.0 639.1 IRRIGATION NETWORKS 3,891.4 2,059.6 - 637.1 6,580.1 15.0 988,2 DRAINAGE NETWORKS 4,307.3 329.8 - 460,9 5,098.0 05.0 764.7 Suh-Total HAIN IRRICATIOA N DRAINAGE WORKS 11,238,4 49210.8 1,586,8 17,747,0 'S.O 2,662.0 Fhnsical Contingenciyn 1,685.8 738.3 - 238.0 2,662.0 0.0 0.0 Frice Contingencies 1,792.8 932.9 - 186.1 2,911.8 13.0 379,8 Sub-lotal INCLUDING CONTINCENCIES 14,716.9 6,593.0 - 2,010.9 23,320.8 13.0 3,041.8 Foreign ExchanXe 5,886.8 2,637.2 - 804,4 ?-328,3 13.0 121607 P ON FOFRHM WORKS _ __ __ ----- 4- LANE LEVELLING 2,581.5 1.075.5 1,361.6 455.6 50474,2 15.0 021 1 SUESURFACE DRAINS 1-512.6 741.7 91S.2 42.4 3,211.9 15.0 481.8 SOIL AMENDIHENTS 692,7 - 98.0 - 790.7 15.0 110.6 SURFACE DRAINS i ROAD'S 366.9 166.9 213,2 Sl,7 790.7 15.0 119,80 Sub-lotal ON FORM WORKS 5,153.6 1, 984,1 2,588.1 549.7 10,275.5 15.0 1,541.3 Rhnsical Continsencies 773.0 297.6 388,2 ^2.5 1,541.3 0.0 0.0 Price Contingencies 1,221,1 459.2 595.8 98.9 2,375.0 13.0 309.8 Sub-Total INCLUDING CONTINGENCIES 7,147.7 2.740-9 3,572.1 730.1 14,191.8 13.0 1,851.1 Foreijn Exchange 2,614.9 951.7 1257.6 317.1 5.141,3 13.0 670.0 C. EQUIFMENT 0M MOON ID WORKS 1,793.0 575,2 890.4 429, 13-696.5 10.0 369,6 CONSTRUCTION ON FhRM ORKS 1,740.8 437.7 1,025.4 - 3,203.9 10.0 320.4 EXTENSION SERVICES 15.5 11.1 8.3 5.6 40,5 10.0 4.0 Sub-Total EOUIPHENT 3,549.2 1,024.0 1,932.1 435.5 6,940.8 10.0 094.1 Fhnsical Contingencies 354.9 102.4 193.2 43.5 694.1 0.0 0.0 "rice Continsencies 299.6 01.8 156.0 55.2 602.6 9.1 54.8 Sub-Totol INCLUDING CONTINGENCIES 4,203.8 1,218.2 2,281,3 534.3 8,237.6 9.1 748.9 Taxes 700.5 176.1 412,6 - 1,289.3 9.1 117.2 Foreign Exchanae 3,328.1 990.1 1,775.0 507.6 6,600.8 9.1 600.1 D. ENGINEERING MAIN ID WIORKS 1,123.8 492.2 - 158.7 1,774,7 15.0 266.2 ON FARM WORKS 515.4 198.4 258.8 05.0 1,027.5 15.0 154,1 Sub-Total ENGINEERING 1,639.2 690.6 258.8 213.6 2,802.2 15.0 420.3 Phusical Contingencies 245.9 103.6 38.8 32.0 420.3 0.0 0.0 Price Contingencies 301.4 139.2 59.6 28.5 528.7 13.0 69.0 Sub-Total INCLUDING CONTINGENCIES 2,186.5 933.4 357.2 274.2 3,751.3 13.0 489.3 E. LAND ACQUISITION 2,317.9 573,5 - 161.6 3,053,0 0.0 0.0 Price Contingencies 290.2 88.0 - 7.6 385.8 0.0 0.0 Sub-Total INCLUDING CONTINGENCIES 2,608.1 661,5 - 169.2 3,438.7 0.0 0.0 F. 1UILDINGS 149.7 37.9 62.5 9.9 260.0 15.0 39.0 Phosical Continoencies 22.5 5.7 9.4 1.5 39.0 0.0 0.0 Price Contingencies 's 7 . 0 '7.4 1 .0 . 2 Sub-Total INCLUDING CONTINGENCIES 18S.1 46.4 76.5 12.3 323.3 13.0 42.2 Foreign Exchange 45.1 11.1 18.4 3.0 77.6 13.0 10.1 B. TRAINING AND CONSULTANTS EXTENSION, INITIAL 2.5 1.2 0.8 0.3 4.9 15.0 0.? TRAINING ABROAD 31.8 31.8 23.8 7.9 95.4 0.0 0.0 CONSULTANTS 7.9 5.3 4.0 2.6 19.9 0.0 0.0 Sub-Total TRAINING AND CONSULTANTS 42.2 38.3 28.6 10,9 120.1 0.6 0.7 Phusical Contingencies 0.4 0.2 0.1 0.1 0.7 0.0 0,0 Price Contingencies 6.S 6.2 4.6 1.6 18.9 0.3 0.1 Sub-Total INCLUDING CONTINGENCIES 49.1 44.7 33.4 12.6 139.8 0.6 0,8 Foreign Exchange 46.2 43.2 32.4 12.2 133.9 0.0 0.0 Total INVESTMENT COSTS 24,090.3 9,270.2 4,870.1 2,968.0 41,198.6 13.0 5,357.5 Fhvsical Contingencies 3,082.4 1,247.7 629.7 397.6 5,357.5 0.0 0.0 Price Continaencies 3,927.5 1,720.1 820,7 378.9 6,047.1 11.9 816.6 Total INCLUDING CONTINGENCIES 31,100,2 12923800 6,320.5 3,744.5 53,403.2 11,6 6,174,1 Taxes 700.5 176.1 412.6 - 1,289.3 9.1 117.2 Foreign Exchange 11,921.1 4,633.3 3,083.4 1,644.1 21,281.9 11.7 2,497.6 II. RECURRENT COSTS _ _ _ _ _ _ _ _ A. OtN MAIN ID WORKS 1,000.1 183.8 700,1 222.9 2,107,0 0.0 0.0 Price Contingencies 250.0 57,3 171.9 59,4 538.0 0.0 0.0 Sib-Total INCLUDING CONTINGENCIES 1,250.1 241.1 872.0 282.3 2,645.5 0.0 0.0 Foreign Exchange 312.5 60.3 210.0 70.6 661.4 0.0 0.0 P. EXTENSION SERUICES STAFF 67.1 69.2 17.0 16.5 169.8 10.0 25.5 EOUIPhENT AND BUILDINGS 71.4 42.2 180.4 9.2 311.3 15.0 46.7 Sub-Total EXTENSION SERVICES 138.5 111.4 205.5 25.7 481.1 1.8 72.2 Phasical Contingencies 20.8 16.7 30.8 3.8 72.2 0.0 0.0 Price Contingencies 34.5 26.5 45.6 6.6 113.2 13.0 14,8 Sub-Total INCLUDING CONTINGENCIES 193.8 154.7 281.9 36.1 666,5 13.0 86.9 Foreign Exchange 49.7 42.0 208.6 6.8 307.1 13.0 40.1 Total RECURRENT COSTS 1,138.7 295.3 905,6 248.6 2,588.1 2.8 72.2 Phusical Contingencies 20.8 16.7 30.8 3.8 72.2 0.0 0.0 Price Contingencies 284.5 83.8 217.5 66.0 651.7 2.3 14.8 Total INCLUDING CONTINGENCIES 1,443.9 395.8 1,153.9 318.4 3,312.0 2.6 86.9 Foreign Exchange 362.2 102.2 426.6 77.4 968.4 4.1 40.1 Total BASELINE COSIS 25,220.9 9,565.5 5,775.7 3,216,6 43,7S6.7 12.4 0,429.7 Phusical Contingencies 3,103.2 1,264.5 660.6 401.4 5,429.7 8.0 0.0 > Price Contingencies 4,212.0 1,S83.8 1,038.1 444.9 7,498.8 11,1 831.3 z Total PROJECT COSTS 32,544.2 12,633,8 7,474.3 4,062.9 56,715.2 11.0 6.261.0 . . Taxes 700.5 176.1 412.6 - 1,289.3 9.1 117.2 Foreign Exchange 12,283.3 4,735.5 3,510.0 1,721.5 22,250.3 11.4 2,537.6 March 9, 1983 10132 TURKEY IGDIR-AKSU-EREGLI-ERCIS (IAEE) IRRIGATION PROJECT Project ComPonent bY Timie (TL Million) Total Base Costs ----------------- (US$ 1 2 3 4 5 TL Million) A. IGIiIR SCHEME 5,483.5 7J539.2 5y899.8 4,566.6 1,739.8 25y228.9 129.4 B. AKSU SCHEiiE 1,076,0 2.983.4 2,836.1 2,000.0 669.9 9y565.5 49.1 C. EREGLI SCHEME i1315.8 1,582.5 989.4 980.6 907.4 5,775.7 29.6 ON D. ERCIS SCHEME 724.7 1Y386.3 714.5 300.9 90,3 3,216.6 16.5 Total BASELINE COSTS 8,600.0 13,491.4 109439.7 7,848.2 3,407.4 43,786.7 224.5 Physical Continsencies 999.1 1Y694.4 i,357.3 998.5 380.5 5,429.7 27.8 Price Contingencies 225.2 1i559.3 2Y153.3 2,293.0 1,268.0 7,498.8 3e.5 Total PROJECT COSTS 9,824.3 16,745.1 13,950,3 11,139.6 5,055.8 56,715.2 290.8 Ta-es 1,166.8 - 122.6 - - 1Y289.3 6.6 Foreisn Excharne 4,124.3 8.026.5 4i623.6 3,893.4 1,582.6 22f250.3 114.1 March 9f 1983 10:32 )r TURKII EY IGDIR--AKSU-EREI6LI--ERCIS (IAEE) IRRIGATION PROJECT PROJECT COST SUMMARY (TL Million) (US$ Million) % oF ------------- ----------------------- Forei4r. % of Total Local Forei. ri lTotal Local Foreilr, Total E-charnie Base Costs A. IGDIR SCHEME 15Y696,0 9Y533.0 25,228.9 80.5 48.9 129.4 37,8 57.6 B. AKSU SCHEME 59957+4 3,60861 9,565,5 30.6 18.5 49.1 37.7 21.8 C. EREGLI SCHEME 3,000.6 2,775.1 5,775.7 15.4 14.2 29.6 48.0 13,2 D. ERCIS SCHEME 1,655.7 1,P360.9 3,216.6 9.5 7.0 16.5 42,3 7.3 Total BASELINE COSTS 26,509.6 17,277.1 43,786.7 135.9 88+6 224.5 39.5 100.0 Physical Contirnlencies 3,210.4 2Y219.3 5,429.7 16,5 11,4 27*8 40.9 12.4 1 Price Continrserncies 4,744.8 2,925.0 7,669.8 24.3 15.0 39.3 38.2 17.1 0" Total PROJECI COSTS 34Y464.9 22,421.4 56,886.3 176,7 115.0 291.7 39,4 129,5 Frornt End Fee - 55,4 55,4 - 0,3 0,3 100,0 0.1 Total FINANCING REQUIRED 34,464.9 22,476.9 56,941.7 176.7 115.3 292.0 39,3 129.7 March 22, 1983 16b35 (D < 4- Il - b8 - ANNEX 3 Page 1 TURKEY IAEE IRRIGATION PROJECT Procurement for Civil Works and Equipment Net Cost in Million TL, March 1983 Prices - US$1=TL 195 ICB* LCB* FA* Main Irrigation & Drainage Works Igdir Scheme 1. Intake Unit III (158), Settling Basin Unit I and II (97):, Feeder System Unit III (752) 1007 2. Rehabilitation Unit I, 24900 ha 3876 3. Construction Unit III, Part 1, 7800 ha 2319 4. " " Part 2, 6800 ha 2009 5. " " Part 3, 5500 ha 2028 Aksu Scneme 6. Rehabilitation and Completion Unit I (518), II (271) 1045 7. Construction Kargi Weir (591), Flood Protection (.570) 1759 8. Construction Unit III, 7400 ha 2118 Ercis Scheme= 9. Construction Unit I, 7100 ha 1587 Total Main Irrigation & Drainage Works 5464 7363 4921 On-Farm Works Igdir Scheme 10a. Land levelling, by contract, Unit I-III, 28500 ha 1937 10b. Subsurface drains, by contract, 1250 ha, 179 km 151 11. Land levelling, by TOPRAKSU, 9500 ha 645 11. Subsurface drains, by TOPRAKSU, 11250 ha, 1609 km 1362 12. Soil amendments, supply of gypsum, 157500 tons 627 11. Soil amendments, spread, ploughed by TOPRAKSU, 14000 ha 66 10c. Surface drains, 570 km, and feeder roads, 190 km 367 - 69 - ANNEX 3 Page 2 Aksu Scheme 10a. Land levelling, by contract, Unit I-III, 12750 ha 806 11. Land levelling, by TOPRAKSU' Unit 1-III, 4250 ha 269 10b. Subsurface drains by contract, 700 ha, 88 km 74 11. Subsurface drains by TOPRAKSU, 6300 ha, 787 km 668 10c. Surface drains, 278 kin, and feeder roads, 85 km 167 Eregli Scheme 10a. Land levelling oy contract, Unit i and II, 22950 lna 1022 11. Land levelling bv TOPRAKSU, Unit I and I1, 7650 ha 340 10o. Subsurface drains, bycontract, 900 ha, 108 km 92 11. Subsurface drains by TOPRAKSU, 8100 na, 972 kmi 824 12. Soil amendments, supply gypsum, 22500 tons 78 11. Soil amendments spread, ploughed by TOPRAKSU 2000 na 16 10c. Surface drains, 330 km, and feeder road9s, 1.10 km 213 Ercis Scheme 10a. Levelling by contract, Unit I 35U 11. Subsurface crains by TOPRAKSU, 500 ha, 50 km 42 lOb. Surface drains, 80 km, and feeder roads, 27 km 52 Total On-Farm Works 5935 4232 Equipment 13. Operation & Maintenance Main ID Wcrks (DS!) 3697 14. Construction On-Farm Works (TOPRAKSU) 3204 15. Transport & Deronstration (Extension Service) 40 Total Equipment 6941 Buildings Extension Service 200 Total buildings 260 Grand Total TL 351lb M 13110 12853 9153 Percent of Total 37% 37'% Lb - 70 - ANNEX 3 Page 3 Summary Procurement (i) ICB Contracts Main I&D Works 5 contracts TL 5464 million. Average price US$5.6 million. (ii) IGB Contracts Equipment 3 contracts TL 6941 million. Price US$0.2-19.0 million/package. (iii) LCB Contracts Main I&D Works 4 contracts TL 7363 million. Average price US$9.4 million. (iv) LCB Contracts On-Farm Works Land levelling, surface drains, subsurface drains and feeder roads and soil amendments (lOa, b ana c, 11 and 12), TL 5935 million. Convenient size contract packages TL 55 to 165 million, for areas of 1000-3000 ha or about 40 packages. Price US$0.3-0.9 million/package. (v) LCB contracts Buildings Extension buildings TL 260 million, US$1.3 million. * ICB - Internacional Competitive Bidding; LCB - Local Competitive Bidding; FA - Force Account - 71 - ANNEX 4 rU LKEY IAEr IRRIGATION PROJECT Construction Schedule of Main Irrigation and Drainage Works and On-Farm Works Rehabilitated or Newly Developed Area for Irrigation Total 1983 1984 1985 1986 1987 ------ net ha '000 ------------- Igdir Scheme Ongoing Main Irrigation & Drainage Works/l 7.9 (6.6) (1.3) Main Irrigation & Drainage Works 45.0 19.8 13.5 12.9 8.8 - On-Farm Works 38.0 2.5 9.1 11.6 9.0 5.8 Irrigable Area, cumulative /2 52.9 4.9 10.3 17.9 37.9 47.8 Aksu Scheme Main Irrigation & Drainage Works 22.1 1.5 7.0 8.4 5.2 On-Farm Works 17.0 1.7 4.1 2.9 4.2 4.1 Irrigable Area, cumulative 22.1 0 1.0 5.7 11.3 22.1 Eregli Scheme Ongoing Main Irrigation & Drainage Works Li 30.6 (28.5) (2.1) On-Farm Works 22.0 2.1 5.0 5.U 5.0 4.9 Irrigable Area, cumulative /4 30.6 10.0 10.6 25.9 29.1 30.0 Ercis Scheme Main Irrigation & Drainage Works 7.1 2.0 3.2 1.9 On-Farm Works 7.1 1.3 1.7 2.1 2.0 Irrigable Area, cumulative /5 - 0 0 5.2 7.1 7.1 Project Total Ongoing Irrigation & Drainage Works /1 38.5 (35.1) (3.4) Main Irrigation & Drainage Works 74.2 13.3 23.7 23.2 14.0 On-Farm Works 84.1 7.6 19.9 21.6 20.2 14.8 Irrigable Area, cumulative 112.7 14.9 21.9 54.7 85.4 107.0 /1 Not included in project. /2 Feeder system Unit III completed in 1985, water available in 1984 season. 73 Kargi weir for Unit III completed in 1986, water available in 1987. 14 Ivriz dam completed in 1984, water available in 1985. /5 Kockopru dam completed in 1984, water available in 1985. - 7i - ANNEX 5 TU RKE Y IAKE IRRiGATiON PROJECT ScLheduie of Disbursements Cumnulat ive*- Disbursements Comparison IBRD Fisc4il US$ million Cumulative Banu Agric. T"urkey Irrig. 'ear equivalent _ Projects Projects 19 83 /841 Dec. 3 183 7. 5 4.0 0.6 2.7 ,j-e 303 986+ 9.5 8.3 3.6 5.4 Dec. 31 1984 15.Q 13.0 7.2 10.0 u 3, 1985 21,0 1895 13.4 14.7 Dec 315 1985 36.0 19.5 20.1 .TU11a2 .0, 198v bicb 53.7 29,0 25.b Dec, _1' 19b8o 74. 64,9 3t30 35.6 June 3(, iS87 65,4 74.3 4t.7 45.6 L98' /8> Dec, 31, 1'-97 95,3 5 i0 54,2 52.9 June 30, 1988 104.0 90.4 64.7 60.2 1988/89 Dec. 31, 1988 I 0907 95.4 71.2 68.7 June 30, 1989 115.0 100,0 80.3 77.3 Does nIot inclucte front end fee of US$0.3 million. - 73 - ANNEX 6 Page 1 TU KEY IAEE IRRIGATION PROJECT Terms of Reference for Irrigation Strategy Review 1. Irrigation development in Turkey has in the past been hampered by public sector initiation of numerous projects far beyond the scope of financial and implementation capabilities. This has caused a dilution of effort and excessive delays in irrigation project completion. Present government strategy is to shift public investment to quicker yielding projects of which irrigation schemes under construction would have high priority. Furthermore, government has made a significant advance in improving cost recovery of public sector irrigation works through new and proposed legislation which permits both indirect and direct cost recovery. The Bank suports this strategy and is interested in assisting in a systematic development of irrigation schemes under construction. Currently DSI has some 79 irrigation schemes in various stages of development which would add about 900,000 ha to the existing 4 million presently under irrigation. Furthermore, TOPRZAKSU has a backlog of about 300-400,000 ha of on-farm development works on DSI's schemes. Clearly there is a need to develop a plan for implementation of the various irrigation schemes so as to maximize land put into production over the next 10 years within the budgetary allocations provided by Government with assistance from external donors and within the implementation capacity of the agencies involved. 2. The objective would be to expand DSI irrigation works and TOPRAKSU on-farm development works to complete at least 100,000 ha per year. For TOPRAKSU this is expected to require increased use of contractors, especially for subsurface drainage works to accelerate the process of completion. To achieve these goals, both agencies will need to prepare detailed investment programs in which programmed expenditures of those agencies' resources would be clearly concentrated on projects which can be completed within a reasonable period of time. 3. In order to develop an irrigation strategy and prepare a master plan for implementation, the two agencies will need to accomplish the following; (a) prepare a detailed inventory of existing irrigation schemes showing location, state of completion and number of hectares to be irrigated; (b) additional costs required to complete irrigation networks and on-farm development works per each irrigation scheme; - 74 - ANNEX 6 Page 2 (c) detailed estimates of staff, training needs, equipment and budget requirements in parallel with a rapid expansion in construction activity; (d) timing required to complete each scheme and the estimatea cost on a year to year basis; and (e) cropping pattern changes, intensity, and estimated rate of return for each scheme. 4. Criteria for priority selection of projects expected to be completed during the first five years of thie plan period will include the following: (a) there is a significant element of sunk costs; (b) substantial investment in major infrastructure has occurred and therefore project can be completed rapidly; (c) technically sound; (d) minimum energy requirements; and (e) financially and economically viable. Criteria (c), (d) and (e) would apply for projects for the second five years of the plan period. 5. The SPO will prepare an estimate of government and external resources expected to be made available for irrigation construction and will coordinate efforts by DSI and TOPRAKSU to develop an irrigation development program within likely resource availability. 6. Under the coordination of the SPO, DSI and TOPRAKSU in preparing a detailed assessment of irrigation works using the criteria outlined in para 3, to come up with a master plan which highlights a phased implementation schedule on a year to year basis for the next 10 years with a more precise implementation plan for the first five years which would include additional works required, cost and timing. Annual estimates would also be prepared to show the expansion of the agencies technical and engineering staff to refine long range scheduling and planning, project identification and evaluation, finalization of designs and tendering of works, construction supervision, cost recovery and O&M training capabilities. 7. The irrigation strategy and investment master plan would also take into account the additional funds for irrigation development and sustainability of ongoing irrigation works which could be obtained through improved cost recovery, and outline what further steps are proposed for improving capital costs and O&M costs recovery for DSI irrigation works as well as irrigation, drainage and other TOPRAKSU on-farm development works. - 75 - ANNEX 6 Page 3 8. A specialist consultant with broad international experience in master planning for irrigation and drainage projects would be employed to assist DSI and TOPRAKSU in the preparation and review of the proposed irrigation strategy and master plan for implementation of irrigation projects over the next ten years. 9. The irrigation strategy and investment plan proposed as a result of the above would be submitted to the Bank for its review no later than July 31, 1984. - 76 - ANNEX 7 Page 1 TURKEY APPRAISAL OF IGDIR-AKSU-EREGLI-ERCIS (IAEE) IRRIGATION PROJECT Selected Documents and Data Available in the Project File A. Selected Reports Related to the Agricultural Sector and Irrigation Subsector A-1 IBRD, Turkey - Agricultural Sector Survey, Report No. 1684-TU, June 23, 1978. A-2 IBRD, Turkey - Public Sector Investment Review, Report No. 3472-TU, December 1981. A-3 IBRD, Turkey - Agricultural Development: Problems and Opportunities, Report No. 3178a-TU, May 7, 1981. A-4 IBRD, Turkey - Industrialization ana Trade Strategy, Report No. 3641-TU, March 1982. A-5 IBRD, Turkey - Seyhan Irrigation Project Stage II, PPAR Report No. 2747, November 26, 1979. A-6 IBKD, Water Management in Bank Supported Irrigation Project System; An Analysis of Post Experience, Report No. 3421, April 16, 1981. A-7 IBRD, Turkey - Irrigation Rehabilitation and Completion Project, PPAR Report No. 3515, June 23, 1981. A-8 IBRD, Turkey - Agricultural Development Alternates For Growth With Exports, Report No. 4204-TU, November 22, 1982. B. Selected Reports and Studies Relating to the Project B-1 Turkey - Irrigation Completion Project Preparation Report - Main Report. B-2 Turkey - Irrigation Completion Project. Preparation Report, Aksu. Irrigation Scheme. B-3 Turkey - Irrigation Completion Project. Preparation Report, Annex 2, Igdir Irrigation Scheme. B-4 Turkey - Irrigation Completion Project. Preparation Report, Annex 3, Van-Ercis Irrigation Scheme. B-5 Turkey - Irrigation Completion Project. Preparation Report, Annex 4, Eregli-Ivriz Irrigation Scheme. B-7 Turkey - Law No. 6200 Concerning the OrganiZation and Duties of the General Directorate of State Hydraulic Works, December 25, 1953. B-8 Turkey - DSI Water Charge Uperation-Maintenace and Annual Investment With 5% Stoppage Tax. B-9 Turkey - 1982 Operation-Maintenance, Annual Investment Schedules, Decree No. 8/4697, May 3, 1982. - 77 - ANNEX 7 Page 2 B-10 Turkey - Draft of the Legislation on the Repayment of Directorate General of TOPRAKSU (Soil-Water) Investments (as of beptember 1982). C. Selected Working Papers C-1 Detailed Cost Tables C-2 DSI Project Works C-3 TOPRAKSU Project Works C-4 Extension Services C-5 Training C-6 Farm Hodels and Financial Analyses C-7 Crop Areas, Production, Utilization of Inputs and Credit Needs C-8 Markets and Prices C-9 Economic Analysis C-10 Assessment of Salt-Affected Soils in the Igdir and Eregli Sub-Project Areas 78 TURKEY IGDIR-AKSU-EREGLI-ERCIS (IAEE) IRRIGATION PROJECT Implementation Schedule PYt PY2 PY3 PY4 PYB MAIN I&D WORKS (OSI_ Head Works 10 45 30 15 w Main I. Canals KM 266 J 30 30 35 E I&D Networks KM 2074 10 30 30 30 , ON FARM WORKS (TOPFAKSU) O Land Levellrig HA 38,000 n 25 25 25 20 Sub-surface Orains HA 12600 2_ 2b 25 2_ Soil Amr drTidmsttg HA 14,000 26 26 25 26 Surface Draltn & Rroids HA 38,000 5 25 2. 26 20 MAIN ID WtORKS (081) Head Works 0 40 40 20 Main L. Cranals KM t9 0 36 35 30 E I&D Networks KM 682 0 0 50 50 J Flood Protection HA 7,000 0 30 25 45 r. ON FARM WORKS ITOPRAKSU) Land Leveling HA 17,000 5 25 25 20 25 Sub-surface Drains HA 7,000 25 25 25 25 Surface Chains & Roads HA 18.500 5 25 25 25 20 E ON FARM WORKS ITOPRAKSU _ u Land Leveling HA 22,000 5 25 25 25 20 u4 Sub-surface Drains HA 9,000 25 25 25 25 3 Soil Amendments HA 2,000 30 30 25 15 -= Surface Drains & Roads HA 22,000 5 20 25 25 25 MAIN laD WORKS (DS01 Main 1. Canals KM 51 35 40 25 I&D Networks KM 305 25 45 30 L) ON FARM WORKS (TOPRAKSU) Land Leveling HA 7,100 10 30 30 30 LU Sub-surface Drains HA 500 50 s0 Surface Drains & Roads HA 5,300 10 30 30 | 30 l' EQUIPMENT 2 uE O&M Civil Works No. 286 90 10 Constr. On Farn Works No. 121 90 10 | Extension Services No. 198 55 40 5 O&M CIVI L WORKS HA 112,700 S 45 . 70 95 100 EXTENSION SERVICES _ Buildings No. 100 40 50 10 L Operating 30 75 100 100 100 x I I r___ TRAINING Z Extension Initial _ _ 45 35 20 < Extension, In Service _ _ 35 80 100 100 100 I- Abroad, Extension,DSl,Topraksu _ 20 20 20 20 20 World Bank-24416 TURKEY IGDIR-AKSU-EREGLI-ERCIS (IAEE) IRRIGATION PROJECT Organization Chart I PRIME MINISTRY 1 lLine Control PR IMSPO MIISRY Coordination MINISTRY OF | MINISTRY OF MPNR MINISTRY OF [ MVA MAF FINANCE [ COMMERCE j INTERIOR [ . I ________ TCZB __ DSI' _____ - -____ TOPRAKSU _, DGAA TOPRAICSU 1 EXTENSION TCZB DS I PROVINCAL TOPRAKSU DGAA EXTENSION REGIONAL REGIONAL GOVERNOR __ REGIONAL __ PROVINCIAL OFFICE OFFICE VALI OFFICE OFFICE _ ~~~REGIONAL _ . r R ~~~~COORDINATINGr COMMITTEE" TCZB DSI TOPRAKSU BRANCH - DISTRICT …---- DISTRICT - COUNTY OFFICE OFFICE OFFICE OFFICE 'Coordinator at Headquarters Level. **One RC Committee for each of Igdir, Aksu, Eregli and Ercis Irrigation Schemes. Members: Chair-Provincial Governor-VaIli, Regional Directors of DSI, TOPRAKSU and DGAA Extension and their project engineers and TCZB Managers. World Bank-24417 U S S. R,JNOO18 0175 ~~~~~~~~~~~-'-s. O0re~~~~~~~~~~~~~~~~~nn /~ 5 S. R 4t0 [pgi& -,L 4' ~ / Unitl / i.1c rA- K'1 5~~~~~~~~S /B890/6859 3-7~~~~~% Ua I AlornI4-c 49 " / 7> I~~~~~~~~~~~~~~GD11RR AKSU -EREGLU-ERCIS (IAEE) IRRIGATION PROJECT IGDIR SCHEME PROJECT EXISTING \ '/1 >~~~~~~~~~~~~ ' Pro~~~~~~"posd onfr ,orks-sd roplatno-fj nwron,,'0'.-n,wwnoo r Ooo1~~~~~~~~~~~~ororo~~~mrwr~~~, Hoohakser~~~~~~~ { Rni ______________________________ K~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4 "'OA'____________________________ A,','f -US",N D.rriowi JUGs/OwN A S1 INRAN-,frMTER 0 1 2 7 / ti--day 'ELOORO r ' ~' / y Shs-q-d - eriay -/1 -~~~ tsr yt-I t( DrainsE6 -~ - YA ~ ~ ~ -o' ~ ~ u li n / K ~ ' rm r / Al-rinwi FJ iBRD 16859 .~ ~~'999/ I 7T,I for~ ~ ~ ~ ~9 cNn 30MAR19 of -9wTUR itIL18 $ ==oc:c R ver .> XUSSR -. t- "~~-m 9.EARA< '39 It> Secondary~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~L Y-LY9 r'" / \ % At~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~T "~~~ ~ ~~~~--n3nt0ru /o nOre 9-e O' 1K / \ X 5"979.... s'#-R A N \ - \\\2N' -. fi- /- _ KYUnit a GDIR SCHEME I IGDIR-AKSU-EREGLI-ERCIS (IAEE) IRRIGATION PROJECT PROJECT -RSTINA P,pARONd -Y- A-ARS -nd - Dik 'ss Con .. 3: , Serond-o-Irp Asar6ns Reeds AThePR9EeYd9ERTRd ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ I RA I TURKEY RGI DVERSION WEIR IGDIR-AKSU-EREGLI-ERCIS (IAEE)IRRIGATION PROJECT AKSU SCHEME PROJECT EXISTING clIF in; : . Proposed on-farm works and completion of irrigation infrastructure Kill <,Proposed on-farm works 4. b~~~~~~25t~~~~nO; Rivers Embankments I . g Diversion weirs ~~~~~~~~~~~ ~~~~~~~~~~Pumping stations -; ,>- @ = . Siphons Unit m1 -. )=Ia Tunnels Canals: A' < >9i. - * \ u ePrimary Secondary Tertiary Hctnr f6,->-u% g g) ; Drains: - | e Primary D IV Secondary WEIR < - - ---In-- Tertioary Roads: Primary Secondary 0 Towns x - -- ~~~~~~~international boundaries Unit 11 1' Kilireeters 0 2 4 6 a /N e> -S 04-' f st_wMiles 0 1 2 3 4 5 Unit II Oum=nlr AbdueeAhmanlor > i ~~~Unit If - Th,s enac has been prepared by The Worid Bank's staff ecclusilve far the --te-nee of th reades an d is beenoatrely far the Wt-ernal use ot The World Bask and the tnteteat,ohal /~~~~~~~ ~ ~ ~ ~~~~~~~~~~~~ '-5 Ferance Corporatnn The deonommabons used and the boundarnes Oshetc on thta mrap dn nol 8oz eh te -np[y, an tre part of The Weld Bash aod the t-trs-attossi Fmace Corporafion, any jndgt-et On the 1eglal stat!s sfa-y terr,tory Sr any endoement Sr acceptance of such bnoudanes ~~~~~~~~C.k. li !\ 3v°' 450 unit :45 , < t S-- YUGOj- - - U. S-S. R- 450 Unitv, Kumbtoy .T8LGAR A / Unit IT J *yREECE () Ankara -A. CYPRUS ARAE LEBANON_( IRAIN R > KUAI ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Cl ISRAEL% > RQ ~ IA LIYAARAB REP OF EGYPTIl co KUAt (is TURKEY