Document of The World Bank Report No. 16097 EGT ARAB REPUBLIC OF EGYPT EAST DELTA AGRICULTURAL SERVICES PROJECT STAFF APPRAISAL REPORT October 2, 1997 Appraised on behalf of the International Fund for Agricultural Development and the World Bank by Rural Development, Water and Environment Group Middle East and North Africa Region CURRENCY EOUIVALENTS (As of May 30, 1997) Currency Unit = Egyptian Pound LE 1.0 = US$0.30 US$1.0 = LE 3.39 LE 100 Piasters (PT) WEIGHTS AND MEASURES Ezvotian and/or Metric Unit Enelish/US Unit I feddan (fd) = 1.038 acres (ac) I feddan (fd) = 0.420 hectares I hectare (ha) - 2.380 feddan (fd) I kilometer (km) 0.621 miles (mi) 1 meter (m) = 3.281 feet (ft) 1 metric ton (mt) = 0.984 long ton (ton) OC- degrees centigrade m2 = square meters m3 = cubic meters I gram (g) = 0.035 ounces (oz) ABBREVIATIONS AND ACRONYMS AERDRI Agricultural Extension and Rural Development Research Institute APRI Animal Production Research Institute ARC Agricultural Research Center BDAC Bank for Development and Agricultural Credit FCRI Field Crops Research Institute CAAES Central Administration for Agricultural Extension Services EA Environmental Assessment EPAD Egyptian Project Authority for Drainage ERR Economic Rate of Return ET Extension Teams FAO Food and Agriculture Organization FRCI Field Crops Research Institute GARPAD General Authority for Rehabilitation Projects and Agricultural Development GDP Gross Domestic Product GOE Government of Egypt ICB International Competitive Bidding IDA International Development Association IDF Institutional Development Fund IFAD International Fund for Agricultural Development MALR Ministry of Agriculture and Land Reclamation M&E Monitoring and Evaluation MED Mechanical and Electrical Department MPWWR Ministry of Public Works and Water Resources NCB National Competitive Bidding NCC National Coordination Committee NLASP New Lands Agricultural Services Project - 11 - O&M Operation and Maintenance PBDAC Principal Bank for Development and Agricultural Credit PCC Project Coordination Committee PMU Project Management Unit RRA Rapid Rural Appraisal SHWA Sharkiya Water Authority SOE Statement of Expenditures SWRI Soil and Water Research Institute WFP World Food Program WRC Water Research Center GOVERNMENT OF ARAB REPUBLIC OF EGYPT FISCAL YEAR July 1 - June 30 Vice President Kemal Dervis Country Director Khalid Ikram Acting Sector Director Salah Darghouth Manager : Richard Westin Project Controller A. Ralman (IFAD) Team Leaders J.F. Barres (until 6/96) then M. Bromhead Team Members D. van der Sluijs, U. El-Hanbali, N. Al-Salihi, R. Robelus, M. Usman, L. Smedema, R. Saleh, 0. Sacay, J. Ter Vrugt, S. Lintner Project prepared by FAO/CP ARAB REPUBLIC OF EGYPT EAST DELTA AGRICULTURAL SERVICES PROJECT STAFF APPRAISAL REPORT Table of Contents Chapter Page No. Credit and Project Summary .................................................................... i I. THE AGRICULTURAL SECTOR ................................................................. 1 A. Sector Background ................................................................... 1 B. Agriculture Institutions and Services ........................... ........................... 2 C. Rural Banking ........................ .......................................... 3 D. Lessons Learned from IDA/IFAD Experience in Egypt ............................... 3 II. PROJECT AREA AND TARGET GROUPS ..................................................... 4 A. The El Salam Canal Program ............................................................... 4 B. Project Area ....................... ............................................ 5 C. Target Groups ................................................................... 6 III. THE PROJECT ................................................................... 8 A. Project Objectives ....................................... ............................ 8 B. Project Description .................................................................... 8 C. Detailed Features ................................... ................................ 9 D. Project Costs and Financing ................................................................. 11 E. Procurement and Disbursement ............................................................. 12 F. Accounting, Audit and Reporting .................................... ...................... 16 G. Environmental Aspects ................................................................... 16 IV. PROJECT IMPLEMENTATION ................................................................... 17 A. Status of Project Preparation ................................................................ 17 B. Project Management Arrangements .............................. .......................... 17 C. Monitoring and Evaluation .................................................................. 18 E. Supervision ................................................................... 18 V. PRODUCTION, BENEFITS AND JUSTIFICATION .......................................... 19 VI. SUMMARY OF AGREEMENTS TO BE REACHED ............. ........................... 21 TABLES IN THE TEXT Table 2.1: Targeted Distribution of Beneficiaries Among the Schemes ............................ 7 Table 3.1: Project Cost Summary .................................................................... 11 Table 3.2: Tentative Financing Plan .................................................................... 12 Table 3.3: Summary of Proposed Procurement Arrangements ....................................... 13 Table 3.4: Estimated Annual Disbursements . ........................................................... 14 ANNEXES Annex 1 (a): Project Costs ......................... ......................................... 22 Annex 1 (b): Organization Chart ................................................................... 38 Annex 1 (c): Key Monitoring Indicators .................................................................. 39 Chart 1: Key Monitoring Indicators ................................................................ 39 Chart 2: Logical Framework .................................................................. 39A Annex 1 (d): Procurement Plan .................... 40 Annex 1 (e): Implementation Schedule - South Port Said ................. ............................ 45 Annex 1 (f): Terms of Reference for Project Management Unit ..................................... 54 Annex 1 (g): Project Disbursement Table ................................................................ 57 Annex 2: Financial and Economic Analysis .58 Annex 3: Environmental Assessment ................. 63 Annex 4: Status of Implementation of Infrastructure Works .66 Annex 5: Documents available in Project files .68 MAP: IBRD 28378 - Project Area Location IBRD 28379 - Project Area ARAB REPUBLIC OF EGYPT EAST DELTA AGRICULTURAL SERVICES PROJECT Credit and Project Summary Borrower: Arab Republic of Egypt Implementing Agency: Ministry of Agriculture and Land Reclamation Credit Amount: IFAD: US$25 million equivalent IDA: SDR 11.1 million (US$15 million equivalent) Terms: Standard IFAD/IDA with 35 years maturity Service Charge: 0.75 percent Project Objectives: The project objectives are to provide support services to facilitate the settlement and increased agricultural production of about 26,000 low income families settling on about 130,000 feddans of recently developed lands in the East Delta. Project Description: The project would provide: (i) agricultural support services, including extension, adaptive research and community development; (ii) on-farm infrastructure including tertiary irrigation and field drainage; (iii) drinking water supplies; (iv) financial services including short-term, medium-term and long-term credit; and (v) project management and monitoring services. Environment: The project has been described as Category B for the purpose of OD 4.01. An environmental and social assessment has been completed and its results are incorporated into project design. The project also supports environmental monitoring. Poverty: The project is classified under poverty category "Program of Targeted Interventions" (PTI), since project beneficiaries have average incomes well below the rural poverty line for Egypt. Benefits: Project benefits would comprise: (a) increased agricultural and livestock production, resulting both from higher yields and a more rapid build-up of production as a result of project activities. Increased production would lead to increased incomes for project beneficiaries. The project would also lay the basis for broader development of the regional economy including creation of off-farm employment. The second benefit is: (b) improved drinking water supply for the project population. Risks: Delays in establishing effective project management and coordination, leading to delays in undertaking project works and delays in realizing project benefits are the main risks. This risk has been taken into account by planning for a slow project start-up and a seven-year disbursement period. IFAD has also provided funds for start-up activities in the period between negotiations and effectiveness, and the project director and national coordinator have already been appointed. ii East Delta Agricultural Services Project Project Cost Summary: Foreign Component Local Foreign Total Local Foreign Total Exchane ------- (LE million) ------- ------- (US$ million) ------- % 1. Agricultural Support Services 5.8 3.7 9.5 1.7 1.1 2.8 39 2. On-Farm Infrastructure for Smallholder Farms 48.3 20.8 69.1 14.3 6.1 20.4 30 3. Supply of Drinking Water 19.9 14.7 34.5 5.9 4.3 10.2 42 4. Agriculture and Agribusiness Development 67.9 68.3 136.2 20.0 20.2 40.2 50 5. Project Management and Monitoring 3.2 2.1 5.3 0.9 0.6 1.6 40 Total Baseline Costs 145.1 109.6 254.6 42.8 32.3 75.1 43 Physical Contingencies 9.5 4.2 13.7 2.8 1.2 4.1 31 Price Contingencies 33.3 7.6 40.9 9.8 2.2 12.1 19 Total Project Costs 187.9 121.4 309.2 55.4 35.8 91.2 39 Financing Plan: Local Foreign Total IDA 2.0 13.0 15.0 IFAD 2.2 22.8 25.0 PBDAC 11.1 11.1 Beneficiaries 24.3 24.3 Government 15.8 15.8 Total 55.4 35.8 91.2 Estimated Disbursement: Fiscal Year IFAD IDA Total Yearly Cumulative Yearly Cumulative Yearly Cumulative 1998 1.1 1.1 0.6 0.6 1.7 1.7 1999 4.4 5.5 2.6 3.2 7.0 8.7 2000 6.6 12.1 3.9 7.1 10.5 19.2 2001 6.2 18.3 3.8 10.9 10.0 29.2 2002 4.1 22.4 2.4 13.3 6.5 35.7 2003 1.9 24.3 1.1 14.4 3.0 38.7 2004 0.7 25.0 0.6 15.0 1.3 40.0 Total 25.0 15.0 40.0 Economic Rate of Return: 33 percent. Estimated Completion Date: December 31, 2003 Project Identiflcation No.: EG-PE-49166 ARAB REPUBLIC OF EGYPT EAST DELTA AGRICULTURAL SERVICES PROJECT STAFF APPRAISAL REPORT I. THE AGRICULTURAL SECTOR A. Sector Background 1.01 The agricultural sector accounts for about 38 percent of employment in Egypt, 20 percent of GDP and 20 percent of exports. More broadly it provides the basis of the economy in the late 1980s of rural Egypt, home for 54 percent of the population. Following decades of heavy state intervention, the government embarked on a program of economic reforms, including liberalization of prices, input supply and marketing. Although more remains to be done, these reforms have provided the basis for market-based growth in the sector, and the initial response has been favorable. Soils are fertile, almost all land is double-cropped and with irrigation yields are among the highest in the world for most crops. Though there are water quality and management issues, water resources are less of a constraint than elsewhere in the region. Egypt has a clear comparative advantage especially in cotton, horticultural products and wheat, and if the reforms remain in place the sector is well-placed for continued increases in productivity. 1.02 With a population in 1995 of approximately 58 million, growing at 1.9 percent per annum, Egypt has one of the poorest man/land ratios in the world. Its agricultural land (almost entirely irrigated) represents some 7.5 million feddans (3.5 percent of the total land area) or only 0.13 feddan per person. Average farm size is 2 feddans and 50 percent of the farming population is landless. The Egyptian government has supported both agricultural intensification and expansion of irrigated area, within soil and water constraints, for centuries. Modern land reclamation dates back 200 years; irrigated area expanded from 2 million to 5.2 million feddans during the 19th century. Government started a new program of reclamation in the 1950s, and lands reclaimed before that time are generally known as the "old lands". Since 1952, over 2 million feddans of new lands and "old new lands" have been developed, and newland reclamation has accounted for about 40 percent of sector investment in recent years. 1.03 Studies have indicated that new lands developed 30 to 40 years ago have attained similar yields to the old lands. Lands developed more recently, however, have been slow to realize their potential. A recent Bank study "Land Reclamation Sub-sector Review 1990" concluded that while physical reclamation was relatively straightforward, agricultural services (research, extension, farmer training, water management), adequate social infrastructure and credit were essential to achieve reasonable yields and returns to investment. If these services were adequately addressed, then newlands development could be economically viable, since investment and operating costs are relatively low, given the flat, rather uniform terrain and minimal pumping lifts. There are environmental issues to be addressed, as with most newlands development projects, but with careful planning and execution they can be dealt with. 1.04 The area of the proposed project (see also para. 2.03) is part of a larger newlands development scheme covering 600,000 feddans in the northeast Delta and the North Sinai, under which land will be irrigated from the newly constructed Al-Salam Canal, using 50 percent Nile water (channeled from the northern Damietta branch of the Nile) and 50 percent agricultural drainage water (map 28379). The canal and physical reclamation works are largely complete. Total costs, including the irrigation and drainage infrastructure, construction of new villages and social infrastructure are estimated at US$1.7 billion, or US$6,700 per ha. Given the high cropping intensities that will be 2 East Delta Agricultural Services Project possible, these costs are reasonable. IFAD and the Bank did not assist with financing the land reclamation, though the Bank did support in 1992 an Environmental Impact Assessment of the North Sinai portion of the project. B. Agriculture Institutions and Services 1.05 The Ministry of Agriculture and Land Reclamation (MALR) is responsible for support services to agriculture. In addition to its five central agencies (extension, services and monitoring, economic affairs, administration and finance, and the Minister's office), it has a number of semi- autonomous agencies, including the General Authority for Rehabilitation Projects (GARPAD) and the Agricultural Research Center (ARC). Extension at governorate level is provided largely by the Central Administration for Agricultural Extension Services, but there are overlapping responsibilities between agencies, and between governorates and headquarters in Cairo. These broader institutional difficulties would not be addressed through the proposed project, which would focus on introducing effective extension to the project area. 1.06 ARC includes 16 research institutes and 5 central laboratories covering a wide range of agricultural activities. Among the institutes, the Soil and Water Research Institute (SWRI), the Field Crops Research Institute (FCRI), the Animal Production Research Institute (APRI), and the Agricultural Extension and Rural Development Research Institute (AERDRI) would be of particular relevance for the proposed project. 1.07 The General Authority for Rehabilitation Proiects (GARPAD) establishes policy and coordinates implementation of reclamation and development of desert land in Egypt, including construction of irrigation and other economic and social infrastructure. The reclaimed lands are sold to settlers and GOE support varies according to the category of settlers, with land for investors being sold on commercial terms, and land for small-scale farmers sold on concessional terms. GARPAD's regional office in Zagazig supervises on-going reclamation works in the project area. 1.08 Since 1988 one key element of GARPAD's new land allocation policy has been the Mubarak Program, under which young jobless university and high school graduates receive a plot of 5 feddans of reclaimed land and one house in a village built by GARPAD. They reimburse LE 10,000 over 30 years, without interest and including a 3 year grace period. In addition, they receive during the first year of settlement LE 50/month. Graduates receive the land with tertiary irrigation and drainage works completed as well as the first leaching done by GARPAD. The Mubarak Program is linked to the broader government policy of phasing out guarantee of public sector employment to graduates. Open unemployment in Egypt is concentrated (75 percent) among young people, 90 percent of whom have a university or high school diploma. In the East Delta project area, about 25 percent of the land has been allocated to graduates under this program. 1.09 At the governorate level in addition to the GARPAD regional offices, MALR is represented by the directorates of Agriculture, Agrarian Reform, Agricultural Cooperatives, veterinary services, Irrigation and Agricultural Drainage. At the village level, Village Extension Workers are attached to the CAAES. The governorate administration is responsible for provision of local services, including schools, health services, water supply, refuse disposal and village roads. While schools and health services have been opened in graduate villages as soon as they attain a critical mass of population, provision of drinking water has proved a much greater problem, particularly for South Hussainya and North Hussainya, where there is no nearby surface or groundwater source of fresh drinking water. East Delta Agricultural Services Project 3 1.10 The Ministry of Public Works and Water Resources (MPWWR) is responsible for the development of water resources and the construction and maintenance of the irrigation and drainage systems. Its irrigation department operates and maintains public canals. The semi-autonomous Egyptian Public Authority for Drainage Projects (EPAD) is responsible for implementing drainage projects and maintaining both surface and sub-surface drainage systems. The Water Research Center (WRC) conducts research on water related issues including the re-use of drainage flow. The Mechanical and Electric Department (MED) is responsible for installing, operating and maintaining all irrigation and drainage pumping stations. C. Rural Banking 1.11 Much agricultural finance is raised by producers from their own resources, friends or relatives. Agriculture, accounting for 20 percent of GDP, received only 9 percent of formal credit in 1995. The Principal Bank for Development and Agricultural Credit (PBDAC), established in 1931, is the principal source of formal credit in the sector. It currently accounts for 78 percent of agricultural lending and its portfolio totaled LE 5.6 billion in 1995. Historically, PBDAC has a sound financial situation and its recovery rate is very good. PBDAC is a holding company for the 17 Banks for Development and Agricultural Credit (BDACs) which provide credit at governorate level. There are a total of 154 district branches and 804 village banks. BDACs exist for the project area governorates of Dakhalia, Sharkia and Ismailya. There is a district branch in Hussainya (Sharkia), just to the south of the project area (para. 2.03), and a village bank in Bahr el-Bakr; other branches do not presently not exist in the project area, because of its limited population. Credit for farming and small-scale agribusinesses would be channeled through PBDAC under the proposed project, at market-based interest rates. D. Lessons Learned from IDA/IFAD Experience in Egypt 1.12 Up to 1994, IFAD had provided five credits to Egypt The two IFAD projects most relevant to the proposed project are located in the New Lands of the West Delta; namely: (a) the West Beheira Settlement Project (1980 to 1992), which financed irrigation infrastructure as well as agricultural services, and (b) the New Lands Agricultural Services Project (NLASP) in Nubaria region which started early in 1994, and finances credit and farmer services. NLASP is in an area with sandy soils, while the proposed project area consists of heavy saline clay soils. 1.13 About one-quarter of World Bank lending has been to the agricultural sector. Much has been directed at improving irrigation, drainage and pumping systems; recently there has been lending to support private sector involvement, particularly small farmers, through the ongoing Agricultural Modernization Project. IDA has financed one project involving new lands, the West Nubariya Newlands Development Project (Cr 1083) in 1980, which financed land development and basic infrastructure as well as services. 4 East Delta Agricultural Services Project 1.14 The following lessons have been learned from previous Bank and IFAD activities: (a) There is a need for a strong coordination mechanism for projects which involve several ministries and organizations; an experienced project manager resident in the project area is important for effective implementation; (b) Participation of project staff and beneficiaries in project design facilitates implementation; and government commitment is essential; and (c) Credit components managed by Project Management Units and providing credit on subsidized terms, are not sustainable; credit should be channeled through the banking system and should be available quickly after farmers settle in the new areas. 1.15 More particularly, experience with the West Nuberia Newlands Agricultural Services Project supported by IFAD (para. 1.12) shows that the success of the settlement programs is closely linked to the following conditions: (a) efficient operation of the irrigation and drainage system; (b) availability of basic social infrastructure and services such as reliable and affordable drinking water supply, health facilities, social clubs, schools and mosques; (c) access to credit; (d) technical know-how of the graduates; (e) availability of hired labor; (f) access to markets; and (g) adequate financial and technical support during the initial years is critical given the specific conditions of the project area (high initial salinity requiring up to three years of leaching and reclamation cropping). 1.16 These lessons have been taken into account in the design of the proposed project. II. PROJECT AREA AND TARGET GROUPS A. The El Salam Canal Program 2.01 Construction of the El Salam Canal began in the 1980's. The objective is to irrigate about 600,000 feddans (250,000 ha) of new lands including 200,000 feddans in the project area, west of the Suez Canal, and 400,000 feddans in the North Sinai. The Canal length is 86 km from its intake at Farasqour Barrage on the Damietta Branch of the Nile in the East Delta along the south end of Lake Manzala to the Suez Canal. It crosses under the Suez Canal through four 5.1 m diameter siphons and continues for another 168 km to service an additional 400,000 feddans of land in Northern Sinai. Construction is complete to the west of Suez Canal, and is expected to be completed in Sinai in 1998. The water supply will be a mixture of agricultural drainage and fresh water from the Nile with a East Delta Agricultural Services Project S salinity level of 800 to 1,000 ppm, with 2.2 BCM of freshwater and 2.2 BCM of agricultural drainage water from El-Sewr and Bahr Hadous drains. A modern water management and communications system will control the water distribution, the mixing ratio, the civil works and pump stations. 2.02 GARPAD supervises the infrastructure works carried out by five public land reclamation companies. In addition to secondary and some tertiary irrigation and drainage networks, the infrastructure includes villages and housing for the settlers, roads, electricity, drinking water supply, health centers, mosques, etc. (paras. 1.07 and 1.08). The Ministry of Water Resources is responsible for water allocation, finalizing design and construction drawings for the irrigation drainage systems, and operation and maintenance of those systems. MPWWR will also promote and supervise the establishment of water users' associations (para. 1.10). B. Project Area 2.03 The project area is located in the New Lands East of the Delta between the Suez Canal and Lake Manzala (See Maps 28378 and 28379 ). It comprises about 200,000 feddans (85,000 ha) in the four governorates of Port Said, Ismailya, Sharkia and Dakhalia. It consists of six irrigation/drainage schemes along the El-Salam Canal, namely: Mataria; South Hussainya; North Hussainya; South Port Said; South Port Said Plain and Um El Reesh. Total irrigation water requirement is about 1,250 million m3 for the East Delta irrigated area of 203,000 feddans, and leaching water requirements are an additional 10 per cent. MPWWR has stated that adequate water will be made available to the project area, in line with National Policy. Irrigation water will be delivered to the different schemes after the infrastructure is completed according to MPWWR standards. This is expected by early 1997. 2.04 Climatic conditions are characteristic of the eastern Mediterranean, with hot summers and mild winters. Rainfall varies from 40 to 90 mm annually and occurs usually from October to March. All crops are grown under irrigation during two major growing seasons: winter (November to April), and summer (May to October). 2.05 The geology of the area is characterized by fluvio-marine alluvium deposits (10-30 m deep) of fine textured soil transported by the Nile River. Soil textures vary from silt loams to heavy clays. Seashells and small amounts of gypsum are present in most profiles. The soils are highly saline but are well suited for irrigation once the soluble salts have been leached from the 0-50 cm depth. Under the soil surface layers, there is a clay cap at depths varying from 0.5 to 3.0 meters. The depth of this clay cap from the soil surface forms the most important criterion upon which the land reclaimability classification has been based. Groundwater below this clay cap is saline. The topography is very flat with land elevations generally ranging from 0.5 m below sea level to 3 m above mean sea level. 2.06 Initial reclamation of these soils is not a problem provided adequate water for leaching is supplied and field drains and drainage pumping stations are operational. Analysis has also indicated that these soils are not polluted. Once fully reclaimed they are capable of producing crop yields similar to those in the Delta, given the same water allocation and quality. Status of Infrastructure Completion 2.07 Irrigation and drainage infrastructure are largely complete and pumping equipment is being installed. The area is being developed in phases. Graduate settlement began in South Hussainya in 1993-94; it is planned for Um El Reesh in 1998, South Port Said Plain in 1999-2000, South Port Said in 1999-2000 and North Hussainya in 1998-2000. The situation for each scheme as of September 6 East Delta Agricultural Services Project 1996 is detailed in Annex 6; once irrigation water is available settlement is likely to increase rapidly. Twelve villages for graduates have been constructed to date with about 7500 houses and service buildings (schools, health centers, mosques and community and administrative buildings). 2.08 Drinking Water Supply. Water supply networks within the villages have been constructed by GARPAD. Provision of bulk water supply to the villages is the responsibility of the governorate administrations but has been a problem in some areas. Furthermore since the groundwater is saline, and the canal water is partially drainage water, use of local sources as an interim measure (the solution in most of rural Egypt) poses difficulties. Four compact water treatment units have been installed and two more are under construction on the Port Said Canal to supply piped water for villages in Um El Reesh, South Port Said Plain and South Port Said sub-schemes. Drinking water for South Hussainya, South Port Said Plain and Mataria El Salam is currently supplied by tanker, costing about LE 15 per cubic meter. Reliable drinking water supply will be a key element in sustainable settlement of the area. 2.09 Electricity and Telecommunications. Substations and power lines for pumping stations have been established in most areas with three of the seven stations having been connected and work is continuing to connect others as they come on line. It is envisaged that graduate villages will be supplied with a wireless telephone unit to be located in the main office of the village after settlement. C. Target Groups Status of Settlement in East Delta 2.10 A total of 203,000 feddans of reclaimed land has been distributed among two principal groups of beneficiaries. Poor farmers have been allocated 128,850 feddans, or 64 percent of the total reclaimed are on concessional terms, while investors have been allocated 74,100 feddans, or 36 percent of the reclaimed area, on commercial terms. 2.11 The poor farmers, totaling about 26,000 families, constitute the target group. They comprise three sub-groups: smallholders (6,800), who will cultivate 30,800 feddans; land reclamation cooperative members (10,450) who will cultivate 51,500 feddans; and secondary school and university graduates (9,300) who will cultivate 46,550 feddans. 2.12 Much of the project area has not yet been settled, as social infrastructure is still being completed, and irrigation water will be available to most of the area only by early 1997. About 7,000 families in the target groups are, however, largely settled in the area. These include smallholders (5,000) of whom 2,000 in Mataria have been cultivating land for about 8 years with drainage water. The remainder live along the main drains (Bahr El Bakar, Hadous, Ramsis and Serw). Some graduates are now settling in South Hussainya; where water is available they have begun leaching, cultivation and small livestock operations. Poverty in the Project Area 2.13 The recent update of the Egypt Poverty Assessment (November 1995) estimated the rural poverty line at LE 6,406 for annual household income (LE 1,131 per capita). A Rapid Rural Assessment of project beneficiaries was undertaken in late 1994; per capita incomes were estimated during this survey, and compared with this poverty threshold. East Delta Agricultural Services Project 7 Table 2.1. Targeted Distribution of Beneficiaries Among the Schemes Graduates Small Holders Cooperatives Investors Total Scheme No. Area No. Area No. Area No. Area No. Area (fed) (fed) (fed) (fed) (fed) Mataria - - 2,000 8,000 - - - 2,000 8,000 North Hussainya 1,800 9,000 2,640 13,200 550 7,800 4,990 30.000 South Hussainya 2,540 12,700 . - 2,000 44,300 4,540 57,000 South Port Said 568 2,850 257 1,600 8,000 34,000 175 1,000 9,000 39,450 South Port Said Plain 2,700 13,500 1,100 5,500 2,450 17,500 2035 20,500 8,285 57,000 Um El Reesh 1,700 8,500 775 2,500 33 500 2,508 11,500 Total 9,308 46,550 6,772 30,800 10,450 51,500 4,793 74,100 31,323 202,950 2.14 Poverty among Smallholders (about 6,500). They represent about 26 percent of the beneficiaries on 24 percent of the area (31,000 feddans). Smallholders (about 6500), comprise principally families referred to as "squatters" (Wadhi Al-Yed) who settled, up to 40 years ago, on public land. They have established their right through long lasting occupancy along the drains and around Lake Manzala. Some also were previously small fishermen who have been allocated land, others are small farmers who practiced irrigated agriculture using drainage water, or sewage water from the Bahr El-Bakr drain. Average landholdings are 4.5 feddans. The RRA conducted in late 1994 estimated average per capita incomes of the this group at 75-85 percent of the poverty line. 2.15 Poverty among the Graduates (9,500 beneficiaries, of whom 19 percent are women). The unemployed university or high school graduates represent about 34 percent of the beneficiaries, and are being settled under the Mubarak National Program for the Graduates (see Chapter 1). An attempt is made to select young people from neighboring areas so that they can receive assistance from their families in the first years. They are allocated 5 feddan holdings. Most graduates come from very modest backgrounds, and the results of the RRA indicate that average incomes of graduates already settled in the area 70-75 percent of the rural poverty line. 2.16 Poverty among Cooperative members (10.450 beneficiaries). These constitute 38 percent of beneficiaries on 40 percent of the land area. They comprise members of the 29 Land Reclamation cooperatives established (following the reclamation act for the project area)a, have formed New Lands Cooperatives in order to have access to the partially reclaimed land, and them completing its reclamation and cultivation. Average landholdings are 4.5 feddans. Members are often drawn form the same community and may include government employees, pensioners and small traders with no land elsewhere, as well as small farmers. The cooperatives share the cost of pumping, maintenance of secondary canals and group credit. The RRA indicated that average incomes of this category are about 80 percent of the poverty threshold. 2.17 The project would aim to increase the income of the project beneficiaries above the poverty level (see para. 5.04). 2.18 Investors. This group comprises about 4800 small and large investors buying about 74 000 feddans. They do not constitute the target group for the project. 8 East Delta Agricultural Services Project 2.19 Proiect Rationale and Relationship with Country Assistance Strategy. The project is consistent with both the IDA and the IFAD country assistance strategy for Egypt. IFAD's strategy is to increase rural incomes in a cost effective and sustainable way, with a focus on smallholders and the rural poor. IDA's strategy (CAS of May 1997) has four principal themes: (a) creating a strong export push; (b) promoting private sector development; (c) developing human resources; and (d) developing rural infrastructure and protecting the environment. The proposed project focuses above all on the fourth of these themes by supporting more efficient use of land and water (through extension) and completion of infrastructure and drinking water; but also the second by supporting small private farmers and farm enterprises (through credit). 2.20 Other land reclamation projects have illustrated that provision of adequate agricultural services is key in ensuring that the sunk costs of the investment in infrastructure are utilized and yield adequate return. This conclusion was confirmed by the recent Bank report "Egypt: Land Reclamation Sub-sector Review 1990". At relatively little incremental cost, the Project should help to ensure the viability of the newlands development. At a broader level, the project is consistent with several of the key objectives of the Bank/GOE "Agricultural Strategy for the 1990's', in particular (i) sustainable expansion of land and water availability; (ii) generation of increased rural employment; and (iii) increased agricultural production to meet domestic demand, exports and where competitive to substitute for imports. Furthermore the policy environment has been substantially liberalized in recent years, and there are few remaining distortions (para. 1.01). III. THE PROJECT A. Project Objectives 3.01 Project Obiectives. The objectives of the proposed project are to provide support services to facilitate the settlement and increased agricultural production of about 26,000 families on about 130,000 feddans of newly developed lands in the East Delta, leading to increased farm incomes and laying the basis for the development of a viable rural economy in the East Delta area. These project beneficiaries would comprise up to 9,300 graduates on 46,000 feddans, 6800 smallholders on 31,000 feddans, and 10,450 cooperative members on 51,500 feddans. B. Project Description 3.02 The project would provide essential agricultural support services to the target group. It would have the following components: (a) Agricultural Support Services (US$2.8 million base cost). The project would provide agricultural extension services and adaptive research service to smallholders, graduates and cooperative members. It would also support the development of water users associations and service cooperatives; (b) On-farm infrastructure. (US$20.3 million base cost). The project would finance tertiary irrigation and drainage works on about 20,000 feddans for smallholders and cooperative members; East Delta Agricultural Services Project 9 (c) Rural Water Supply (US$10.2 million base cost). The project would install drinking water supply in the two sub-schemes of North and South Hussainya serving about 50,000 people; (d) Financial Support Services (US$40.2 million base cost). The project would support a line of credit through PBDAC for short-, medium- and long-term credit for purchase of agricultural inputs, livestock, farm machinery, and equipment for agro-processing. In addition, the project would also support the establishment of four new village banks; and (e) Project Management. Monitoring and Evaluation (US$1.6 million base cost). The project would finance a Project Management Unit to be responsible for project implementation, monitoring and evaluation including environmental monitoring. C. Detailed Features Agricultural Support Services (US$2.8 million base cost). 3.03 The project would provide logistical support and training to extension staff, inputs for demonstration plots on farmers' fields and multimedia extension materials. Field extension staff would be nominated from existing staff in the project governorates, supported by specialized extension staff in mobile teams. Extension would focus initially on reclamation crops, and then broaden to include plant protection, soil and water management, farm management, livestock husbandry and marketing. 3.04 The project would support field cost of researchers, training, technical assistance and inputs for experimental plots, and equipment for the recently completed soil and water research station in the project area, which would be responsible for soil and water quality monitoring. Researchers at the neighboring stations of El-Sewr, Kassasim and Tag El-Eiz would assist extension staff with field trials and problem solving, backed by staff from other stations in Egypt as necessary. 3.05 The project would finance office equipment, vehicles, and technical assistance costs, and community development officers and assistants, and training for cooperative board members and members of water users associations. It would support community organizations in the project area, including cooperatives, primarily in order to assist farmers with group access to credit, and development of water user associations . On-farm Infrastructure for Smallholder Farmers (US$20.4 million). 3.06 The project would finance the construction of on-farm tertiary irrigation and drainage systems for smallholders on about 20,000 feddans (at LE 3,500 per feddan). Smallholders would contribute 20 percent of the cost through labor (about US$5.1 million equivalent), largely for earthworks for land leveling, canals and drains. The project would complement the support already given to graduates through GARPAD. The support would be arranged through the contractors. 10 East Delta Agricultural Services Project Rural Water Supplv (US$10.2 million base cost) 3.07 The project would finance piped drinking water supplies to villages in South Hussainya and North Hussainya, including a treatment plant and conveyance system from the Al-Salheya Canal. Population to served at full development would be about 50,000. Financial Support Services (US$40.2 million). 3.08 The project would provide a line of credit for the following activities: (a) Seasonal and short-term credit, for items such as seed, fertilizer, machinery and labor hire and pumping costs; (b) Medium-term credit. (up to 5 years) for items such as tractors, implements, stationary threshers, establishment of agricultural machinery hire services, rice and wheat mills, and equipment for dairy processing and raising livestock; and (c) Long-term credit for agribusiness , over 5 years) for items such as private veterinary clinics, milk collecting centers, milk processing units, vegetable processing units, animal shelters, etc. 3.09 Investment would be demand driven, and credit would be provided under PBDAC's prevailing terms and conditions at the time of borrowing, which are based on market rates. These rates are currently 11 percent (plus 1 percent service charge) for seasonal credit, 12 percent (plus 1 percent) for medium-term credit, and 13 percent (plus 1 percent) for long-term credit. According to PBDAC policy, beneficiary contribution for short-term credit is 30 percent, and for medium- and long- term credit it is 50 percent. A Subsidiary Loan Agreement would be entered into between PBDAC and the Government of Egypt before credit effectiveness. 3.10 Institutional Support. The project would assist PBDAC in establishing and equipping four new village banks in the project area. Staff training and logistical support would also be financed. Project Management and Monitoring (US$1.6 million base costs) 3.11 Project Management. The project would finance a Project Management Unit (PMU) for planning, procurement and coordination, including technical experts, office equipment, transportation, training and incremental operating costs of the unit. 3.12 The project would also support project monitoring and evaluation, including technical experts and logistical support. Environmental monitoring would focus on soil and water quality monitoring would include monitoring of groundwater, irrigation water, and water discharged into Lake Manzala. East Delta Agricultural Services Project 11 D. Project Costs and Financing Project Costs 3.13 Total project costs including physical and price contingencies are indicated in Table 3.1 below. They are estimated at LE 309 million (US$91.2 million) including physical and price contingencies, of which the foreign exchange component is LE 121 million (US$36 million) or 39 percent of total cost. Import duties and sales taxes are reflected in the calculation of the project cost. Price contingencies amount to 16 percent and physical contingencies for civil works to 15 percent of base cost. Detailed costs are provided in Annex 1(a). Table 3.1. Project Cost Summary Foreign Local Foreign Total Local Foreign Total Exchange ----------- (LE '000) ---------- (US$ '000) --- % A. Agricultural Support Services 1. Adaptive Research and Training 1,397.0 975.6 2,372.6 412.1 287.8 699.9 41 2. Extension and Training 2,127.5 2,121.9 4,249.4 627.6 625.9 1,253.5 50 3. Community Development 2,285.1 573.3 2,858.5 674.1 169.1 843.2 20 Subtotal 5,809.6 3,670.8 9,480.4 1,713.8 1,082.8 2,796.6 39 B. On-Farm Infrastructure 48,309.0 20,785.5 69,094.5 14,250.4 6,131.4 20,381.9 30 C. Supply of Drinking Water 19,880.3 14,659.2 34,539.5 5,864.4 4,324.2 10,188.7 42 D. Financial Support Services 1. Short-Term Credit 31,783.0 14,820.1 46,603.1 9,375.5 4,371.7 13,747.2 32 2. Medium-Term Credit 26,099.2 47,048.1 73,147.3 7,698.9 13,878.5 21,577.4 64 3. Long-Term Credit 8,981.1 5,207.5 14,188.6 2,649.3 1,536.1 4,185.4 37 4. Support to Village Bank 1,028.1 1,266.4 2,294.5 303.3 373.6 676.8 55 Subtotal. 67,891.4 68,342.0 136,233.4 20,026.9 20,159.9 40,186.8 50 E. Project Management and Monitoring 1. Project Implementation Unit 2,077.8 1,444.8 3,522.7 612.9 426.2 1,039.1 41 2. Monitoring and Evaluation Unit 662.6 408.5 1,071.1 195.5 120.5 316.0 38 3. Environmental Monitoring and Supervision 427.5 276.5 704.0 126.1 81.6 207.7 39 Subtotal 3,167.9 2,129.9 5,297.8 934.5 628.3 1,562.8 40 Total Baseline Cost 145,058.2 109,587.4 254,645.7 42,790.0 32,326.7 75,116.7 43 Physical Contingencies 9,547.3 4,199.2 13,746.5 2,816.3 1,238.7 4,055.0 31 Price Contingencies 33,302.3 7,577.6 40,879.8 9,823.7 2,235.3 12,058.9 19 Total Project Costs 187,907.8 121,364.2 309,272.0 55,430.0 35,800.6 91,230.7 39 Financing Plan 3.14 The proposed IFAD Loan of US$25 million would finance 27 percent of the project costs net of duties and taxes. At Negotiations, it was confirmed that all conditions precedent to the effectiveness of the IFAD loan have been fulfilled, other than those related to the effectiveness of the IDA credit. The proposed IDA credit of US$15 million would finance a further 16 percent. Local farmers and small entrepreneurs would contribute 28 percent, PBDAC 12 percent, and Government 17 percent of project costs. The rinancing plan is given in Table 3.2 below. 12 East Delta Agricultural Services Project Table 3.2. Financing Plan (US$ millions) Local Foreign Total IDA 2.0 13.0 15.0 IFAD 2.2 22.8 25.0 PBDAC 11.1 11.1 Beneficiaries 24.3 24.3 Government 15.8 15.8 Total 55.4 35.8 91.2 3.15 During negotiations, assurances were provided that Government and PBDAC would make available their own share of financing in a timely manner. Beneficiary contribution to the credit component would follow PBDAC guidelines (para. 3.09). Contribution to the onfarm development would be equivalent to 25 percent of the cost of the works, through labor. E. Procurement and Disbursement Procurement 3.16 The table below summarizes the project elements and their estimated costs and proposed methods of procurement. East Delta Agricultural Services Project 13 Table 3.3. Summary of Proposed Procurement Arrangements Project Element Procurement Method (US$ M)1' ICB NCB NIF OTHER TOTAL Civil Works 8.2 21.9 5.42, 35.5 IFAD/IDA (3.7) (12.3) (16.0) (IFAD) (2.3) (7.7) (10.0) (IDA) (1.4) (4.6) (6.0) Vehicles, Lab. equipment, Material 4.0 1.0 1.0 6.0 IFAD/IDA (3.7) (0.7) (0.9) (5.3) (IFAD) (2.2) (0.4) (0.5) (3.1) (IDA) (1.5) (0.3) (0.4) (2.2) Goods (credit) 45.8 4 45.8 IFAD/IDA (16.1) (16.1) (IFAD) (10.1) (10.1) (IDA) (6.0) (6.0) Consultancy Services and Training 2.2L5 2.2 IFAD/IDA (2.1) (2.1) (IFAD) (1.2) (1.2) (IDA) _ _ (0.9) (0.9) Incremental Operating Costs 1.76 1.7 IFAD/IDA (0.5) (0.5) (IFAD) (0.5) (0.5) Total 12.2 22.9 5.4 56.2 91.2 IFAD/IDA (7.4) (13.0) (19.6) (40.0) (IFAD) (4.5) (8.2) (12.3) (25.0) (IDA) (2.9) (4.8) (7.3) (15.0) Note: Totals may not add up due to rounding /L Figures in parentheses are the respective amounts financed by IFAD and IDA. /2 NEF: Not IDA or IFAD financed; beneficiaries contribution of labor. /3 Local Shopping will be used to procure these goods. /4 Procurement by private sector under procedures acceptable to IFAD and IDA. /5 Consultants and TA services recruited in accordance to IFAD's and IDA's Consultant Guideline /6 icremental operating costs comprise largely fuel, which would be purchased according to GOE's standard procedures and field allowances on the standard GOE salary scale. They also include incremental goods operating costs, field bonuses of project staff, and incremental office operating costs. 3.17 Procurement of farm machinery, equipment and goods through the line of credit would respond to market demand involving numerous dealerships, with equipment imported by the private sector. It is not feasible to package the number of contracts. Most import orders would be in the range of US$5,000 to US$200,000, and too dispersed and small scale to be eligible for ICB; after sales services is of critical importance in the choice of equipment by the beneficiaries. Procurement of vehicles, laboratory and office equipment. water treatment plant. and civil works for the drinking water supply system would follow ICB in accordance with IFADIIDA guidelines, except for contracts 14 East Delta Agricultural Services Project below US$200,000, for which NCB would apply. Local shopping could be used for contracts of US$20,000 or less up to an aggregate of US$1 million. Eligible Egyptian manufacturers competing under ICB would receive a preference in bid evaluation of 15 percent provided they can prove that (i) labor, raw materials and components from within Egypt will account for more than 30 percent of the exact price of the product offered, and (ii) the production facility in which those goods will be manufactured or assembled has been engaged in the manufacture/assembly of such goods at least since the time of bid submission. Civil works for the on-farm tertiary irrigation and drainage works (US$21.9 million) would be packaged and awarded through NCB procedures, since these works are scattered in the project area and will not be attractive to foreign contractors. Local contractors are already working in the area. Consultants for the various forms of technical assistance under the project would be engaged following procedures and on terms and conditions satisfactory to IFAD. The prior review threshold would be US$100,000 for the services of consulting firms, US$50,000 for individual consultants, US$200,000 for goods and US$500,000 for works. This would cover at least 80 percent of total contract value (except for the goods purchased through the credit component, which are not amenable to prior review and would be purchased under commercial practices). At Negotiations GOE agreed to the procurement arrangements outlined above. Disbursement 3.18 The proposed IFAD loan of US$25 million and IDA credit of US$15 million are expected to be disbursed in accordance with the following estimated disbursement schedule summarized below (see details in Annex lj): Table 3.4. Estimated Annual Disbursements (CY US$ millions) IFAD IDA Total Fiscal Year l_________ Yearly Cumulative Yearly Cumulative Yearly Cumulative 1998 1.1 1.1 0.6 0.6 1.7 1.7 1999 4.4 5.5 2.6 3.2 7.0 8.7 2000 6.6 12.1 3.9 7.1 10.5 19.2 2001 6.2 18.3 3.8 10.9 10.0 29.2 2002 4.1 22.4 2.4 13.3 6.5 35.7 2003 1.9 24.3 1.1 14.4 3.0 38.7 2004 0.7 25.0 0.6 15.0 1.3 40.0 Total 25.0 15.0 40.0 3.19 Insofar as practicable, IFAD/IDA disbursements will be disbursed in an approximate ratio of 5 to 3. Withdrawal of the proceeds of the IFAD loan and IDA credit would be in accordance to the following percentages:1' For the purposes of the disbursement schedule, the components to be implemented through the Ministry of Agriculture and Land Reclamation (i.e., Agricultural Support Services, On-farm Infrastructure, Drinking Water and Project Management) are defined as Part A of the Project, while those activities implemented by PBDAC are defined as Part B. East Delta Agricultural Services Project 15 (1) Civil works for Part A - IFAD: US$9 million, IDA: US$5 million 45 percent of total expenditures (IFAD 28 percent, IDA 17 percent) (2) Goods for Part A of the Project - IFAD: US$3 million, IDA: US$2 million; 100 percent of foreign expenditures, 100 percent of local expenditures (ex-factory price) or 70 percent of expenditures for goods procured locally: IFAD 67.5 percent and IDA 32.5 percent; (for other local expenditures of goods procured locally: IFAD 41.5 percent, IDA 28.5 percent) (3) Technical assistance, training, studies for Part A of the project - IFAD: US$1 million, IDA: US$1 million; 100 percent of total expenditures (IFAD: 50 percent, IDA 50 percent) (4) For Part B of the project: (a) Subloans: IFAD: US$10 million or 37% of the Subloan IDA: US$6 million or 23% of the Subloan (b) Goods, Works & Training for Part B of the Project: IDA: US$1 million or 60%. (5) Recurrent expenditures - IFAD: US$0.5 million: 30 percent of total expenditures (6) Unallocated - IFAD: US$1.5 million TOTAL - IFAD: US$25 million, IDA: US$15 million Retroactive financing would be provided up to 10 percent of the loan/credit amount, mainly for earthworks and small structures of the tertiary irrigation system, for expenditures incurred after December 31, 1996. 3.20 To facilitate project execution, four Special Accounts would be established, one for each implementing agency (MALR and PBDAC respectively) and one for each financing agency (IDA and IFAD). GOE would establish two Special Accounts in the Central Bank, in US dollars, with initial deposits of US$1.0 million out of the IFAD credit and US$0.5 million out of the IDA credit [equivalent to four months expected expenditures under the infrastructure, management and agricultural support components of the project (see Table 3.1)]. PBDAC would open on its book two Special Accounts for US$0.6 million out of the IFAD credit and US$0.4 million out of the IDA credit [estimated four months expenditure under the financial support component of the project (Table 3.1)]. Disbursement would be made against Statements of Expenditures (SOE) except for contracts for goods above US$200,000, for works contracts above US$500,000, and for TA contracts above US$50,000 for individuals and US$100,000 for firms, for which full documentation would be required. Relevant documentation in support of SOEs would not be submitted to IFAD/IDA, but would be retained by the PMU and made available to IFAD/IDA supervision missions and to independent auditors. Applications for replenishment of the Special Account would be submitted monthly, or whenever the Special Account is drawn down to 50 percent of the initial deposit, whichever occurs first. GOE agreed to these disbursement procedures at negotiations. Recurrent costs include incremental vehicles and goods operating costs, field bonuses of project staff, and incremental office operating costs. 16 East Delta Agricultural Services Project 3.21 Project completion is expected by December 31, 2003 and it is anticipated that the IFAD Loan/IDA credit will be fully disbursed six months after that date. The Closing Date would, therefore, be June 30, 2004. F. Accounting, Audit and Reporting 3.22 The Project Management Unit (PMU) would establish and maintain separate project-related accounts at the central office responsible for project execution. These accounts would be maintained in accordance with internationally recognized accounting principles and practices satisfactory to IFAD and IDA. The PMU would provide bi-annual and annual financial statements to reflect expenditures under the project. An auditor's opinion and reports satisfactory to IFAD on these statements would be provided within six months of the closing of the fiscal year. The auditor's report will include a statement on the adequacy of the accounting system and internal controls, and the reliability of statements of expenditures as a basis for loan disbursements. 3.23 The PBDAC and its regional BDACs serving the project area will maintain their accounting system in accordance with sound internationally recognized accounting principles and practices acceptable to IFAD and IDA. They would provide annual budgets, quarterly progress reports, summary loan statements and annual financial statements that reflect the financial performance and position of the line of credit. The PBDAC and its branches would maintain detailed memoranda relating to sub-project cycle progress including appraisals, approvals, disbursements, contribution from borrowers, interest charges, installments due, collections, overdue and follow-up action. These reports would be reviewed periodically by IFAD supervision missions. An auditor's opinion and reports satisfactory to IFAD would be provided within nine months of the close of the fiscal year. The auditor's report will include a statement on the adequacy of the accounting system and internal controls, the reliability of statements of expenditures as a basis for loan disbursements, and compliance with financial covenants. Agreement to these accounting and auditing arrangements was reached at Negotiations. G. Environmental Aspects 3.24 The project has been classified under Environment Category "B," according to the OD 4.01 guidelines. The following environmental benefits have been incorporated into the project: (a) The on-farm infrastructure and drinking water would facilitate the sustainable settlement of smallholder farmers; (b) the agricultlral support services would disseminate IPM technology and efficient soil and water management. The financial support services would enable settlers to gain a livelihood from the new lands and would facilitate development of a viable regional economy. The Environmental Assessment focused on concerns about; (a) possible contamination of soils around the heavily polluted Bahr El-Bakr drain; (b) irrigation water quality and quantity; and (c) social conditions of settlers. 3.25 The Environmental Assessment was completed in September 1996 and endorsed by GOE. It is summarized in Annex 3. Analysis concluded that: (a) soils around Bahr El-Bakr are not contaminated, (b) irrigation water will be adequate in quality and quantity, according to the national program of MPWWR, and (c) studies conducted during preparation confirmed the importance of adequate drinking water. The project will provide drinking water to those parts of the project area not currently served and will finance a soil and water quality monitoring program, and a health study of the population. East Delta Agricultural Services Project 17 IV. PROJECT IMPLEMENTATION A. Status of Project Preparation 4.01 The proposed project was identified by IFAD in 1993. An FAO Investment Center pre- formulation mission in June 1994 was followed by a formulation mission in September/October 1994. At the request of IFAD a World Bank mission visited Egypt in September 1995 to finalize project preparation. The mission assessed the progress of implementation of irrigation and drainage infrastructure and proposed changes in the design of the credit component and support for land development for smallholder farmers. The Environmental Assessment was completed in early September 1996. Detailed designs for the drinking water supply component are under preparation and would be completed by June 1998. Designs for the tertiary infrastructure are standard; tender documents for this and for the goods will be prepared within six months of Board approval and funding has been provided by IFAD for this (the time between Board Approval and effectiveness is usually about one year in Egypt). An implementation plan and procurement plan have been prepared. The implementation and procurement plans were agreed to with GOE at Negotiations. B. Project Management Arrangements 4.02 The Ministry of Agriculture and Land Reclamation (MALR) would have the overall responsibility for execution through the Chairman of GARPAD. A Project Management Unit (PMU) would be created in the project area with responsibility for project implementation, including coordination of project activities, procurement (except for activities implemented through PBDAC), disbursement, annual and quarterly work plans, financial reporting, monitoring/evaluation and contacts with IFAD/IDA. The PMU would include a project director, finance director, procurement director, research/extension coordinator, community development officer, and monitoring and evaluation officers including environmental monitoring. (See also Annex l(f): Terms of Reference for the principal staff of the project management unit). The Project Director would report to the National Coordinator who would be the Chairman of GARPAD (both the project and national coordinator have already been nominated) who would be directly accountable to the Minister for successful project implementation. 4.03 Local coordination would be assured by a regional working committee to be headed by the project director. It would be composed of the relevant governorate agencies including education, health and water supply, the Rural electrification authority, the regional offices of Public Works, GARPAD, the agricultural extension service and agricultural research stations, and Sharkiya Water Authority. It would meet regularly during project implementation. The Committee was established by 31st March 1997. 4.04 A National Coordination Committee (NCC) would meet twice a year or as needed to discuss annual work plans, provide policy guidance and facilitate implementation at national level. It would be chaired by the national Coordinator. The project director would be its secretary and he would prepare its agenda. Its members would include, in addition, senior staff from MALR, PBDAC, CAAES, ARC, MPWWR, and Ministry of Planning. 4.05 Implementation of the credit component would be through PBDAC (see above para. 3.09). The agricultural support services component would be implemented by the Central Administration for Agricultural Extension Services (CAAES) and their governorate level staff, and the applied research 18 East Delta Agricultural Services Project activities by Agricultural Research Center and their local stations. The community development component would be implemented by the PMU in close cooperation with the Department of Cooperatives and the MPWWR. The drinking water supply system would be taken over by the Sharkiya Water Authority on its completion. 4.06 At Negotiations GOE provided assurances that these implementation arrangements would be followed, and that adequate resources and satisfactory TOR for the Committee would be provided to the Association before effectiveness. C. Monitoring and Evaluation 4.07 The Monitoring and evaluation (M&E) experts of the PMU would operate a program for monitoring the project activities as a management tool, in close collaboration with other members of the PMU. They would be comprise a senior agricultural economist with experience with M&E especially with IFAD or other internationally financed projects, and two M&E officers, one specialized in irrigated cropping systems/soil and water management, and one in socio-economic impacts. Monitoring and Evaluation would also focus on both project output (achieving project objectives and targets) and project impact (improving the incomes of the target group settlers). For this purpose, key indicators would be refined by the PMU and the M&E specialists 4.08 Key indicators would include: (i) the number and category of settlers by scheme and the date of settlement; (ii) percentage of households who have adopted technical packages; (iii) cropped area and crop and livestock yields; (iv) percentage of households with tertiary irrigation; (v) percentage of households with drinking water; and (vi) the credit disbursed and recovery rates (short term, medium term and long-term). Monitorable indicators are provided in Annex l(c); they would be defined by the PMU. 4.09 PBDAC would have its own monitoring system, but close coordination with project management should be maintained. PBDAC would provide the PMU with copies of its own M&E reports. The project management may verify the bank's performance through regular field assessment. At Negotiations, GOE provided assurances that the project monitoring arrangements outlined above would be followed, and agreed to the monitoring indicators outlined in Annex 1(C). E. Supervision 4.10 It is estimated that the project will require an average of 12 staffweeks of supervision per year, including financial sector, agriculturist, irrigation/civil engineering and community development skills. The first year up to 20 weeks may be necessary to ensure project launch, and at the end of third year a midterm review would be held, requiring 8 additional weeks above the normal 12. The project would be supervised from Cairo, in order to permit frequent contacts and establishment of a partnership with the project management unit and implementing agencies, and resolution of implementation problems as they arise. Focus in the first year would be on procurement, and putting in place the project management and monitoring arrangements. V. PRODUCTION. BENEFITS AND JUSTIFICATION 5.01 The main objectives of the East Delta Agricultural Services project are to provide support services to facilitate the settlement and increased agricultural production of settlers in the project area, East Delta Agricultural Services Project 19 thereby increasing farm incomes and laying the basis for a sustainable rural economy in the region, in both farm and off-farm activities. 5.02 The project would provide tertiary infrastructure to about 20,000 feddans (4,000 families), credit to about 15,000 families on about 75,000 feddans, and offer extension and other services to about 26,000 families on 135,000 feddans, with uptake estimated at about 50 percent. There are thus three, interrelated "streams" of production benefits from the project, due to tertiary irrigation infrastructure, uptake of credit, and uptake of technical packages, respectively. 5.03 Estimated crop and livestock production benefits are summarized in Annex 2. It will take about five years after the start of production for farmers to reach maximum yields "with" the project. It is assumed that (a) farmers benefiting from tertiary irrigation would start agricultural production two years sooner "with" than "without" the project; (b) farmers obtaining credit for inputs would have higher production and yields "with" the project, since "without" it they would not have the cash to purchase sufficient inputs or to prepare land adequately; and (c) farmers taking up extension packages would have higher yields than those not. The most likely scenario, also, "without" the project, is a slower rate of settlement in the project area, and delays, therefore, in realizing benefits, to farmers or to the economy as a whole, from the very substantial sunk investments in reclamation of the East Delta lands and the El-Salam Canal (para. 2.01). Assumptions are summarized in Annex 2. 5.04 An analysis of likely financial returns to farmers benefiting from the project services was undertaken, to determine whether they would be able to repay credit provided at market rates under the project (12 percent for short-term credit, 13 percent for medium term and 14 percent for long term at time of appraisal). The farm models indicate that annual farm incomes would increase gradually from about LE 4,500, well below the poverty line (see para. 2.13) "without" the project to LE 11,000 "with" the project. The conclusion is that farmers in the project area would be able to apply for credit. Economic Analysis 5.05 In the calculation of ERR, only benefits from incremental crop and livestock production activities were considered. Costs include tertiary development for 20,000 feddans, costs of crop and livestock production on the 75 000 feddans that are likely to benefit from credit and farmer services, all other investment and recurrent costs of the project (including technical assistance, project management and monitoring, and drinking water supply), and incremental operation and maintenance costs . 5.06 The economic rate of return (ERR), measuring only crop and livestock production benefits, was estimated at 33 percent. The high rate of return is not surprising in view of sizable sunk cost in the El-Salaam Canal project; 5.07 The economic analysis did not quantify the expected benefits from rural water supply, in terms of time savings, health benefits or potential increased milk production for livestock. It did not quantify the "spin-off" effects of creating, through the project, the basis for a viable rural economy in the area. Approximately 45 percent of employment in rural Egypt is off-farm employment, and the project would permit the development of services, small-scale industry and trade in the project area. These indirect "rural development" benefits are likely, in the long run, to be as significant as the direct production benefits. 20 East Delta Agricultural Services Project Project Risks and Sensitivity Analysis 5.08 The main project risk is likely to be delay, in completing the infrastructure, water, and establishing support services, because of delays in establishing the project management unit and moving ahead with procurement. The project ERR "base case" has also made conservative assumptions regarding the start-up and phasing of project benefits, with substantive project activities starting only in 1998, tertiary infrastructure investments being completed only in the year 2000, and a slow phasing in of other project activities (with only new 1,700 families taking up credit in 1998, 3,000 in 1999 and 7,000 in 2000). Nevertheless even where benefits are lagged three years behind the "base case" and costs increased by 10 percent, the ERR would decline to a still acceptable 14 percent. GOE has also sought to minimize delays by nominating the project director and national coordinator before negotiations, and preparing an implementation plan and establishing the local and national coordination committees well before effectiveness. 5.09 Delay in establishing support services and adequate tertiary infrastructure may also lead to substantially lower yields, and delays in establishing formal credit mechanisms may require farmers to seek higher cost alternatives, increasing production costs. Assuming benefits fall by 20 percent and production costs increase by 20 percent, the ERR is still 18 percent. 5.10 The project has some risks regarding financial sustainability. No new civil servants would be recruited under the project. Annual incremental operating costs are only about US$200,000. Farmers are responsible for operation and maintenance of tertiary irrigation works. The main risk regarding financial sustainability regards the drinking water supply component. Current water charges by Sharkiya Water Authority (LE 0.25/m3) are below operation and maintenance costs. The estimated O&M costs of the water supply component will be available only when the detailed designs and cost estimates are complete. Costs and cost recovery are being reviewed under the Sharkiya Water Authority project currently under preparation; the policies that would be introduced under that project would apply for the East Delta Agricultural Services Project. There is much scope for increased efficiency in O&M; savings of 15 percent in operating costs in Sharkiya Water Authority, without tariff increases, would lead to full recovery of O&M costs. 5.11 No difficulties are anticipated marketing the incremental production, once production takes off and credit for marketing and small-scale processing is available. Egypt is currently a net importer of the 'staples' of rice, wheat, milk and meat (from berseem) that constitute the main products, and marketing channels are very well established for cotton. Milk prices are currently particularly favorable (because of shortages in supply) in Port Said. Poverty Impact. Impact on Women. Participatory Approaches 5.12 Project beneficiaries have average incomes below the poverty line, and fall within the IFAD target group (see paras. 2.11 to 2.17). In addition to direct beneficiaries, the project would increase income earning opportunities for the currently unemployed or underemployed, who would move into the project area. 5.13 Project design would benefit women in a number of ways: (a) about 20 percent of graduates allocated land in the project area are women; (b) the rural water supply component would benefit women directly, since they are in charge of water collection and domestic use; (c) the focus of extension on livestock would also benefit women, who have primary responsibility for livestock raising. About 50 percent of incremental income from the project would be from livestock, East Delta Agricultural Services Project 21 traditionally a "women's" domain, and 50 percent of the 13,000 incremental jobs created under the project would be for women; (iv) the extension service would build on experience gained working with women elsewhere in Egypt and particularly in the West Nubereya Newlands scheme, where extension services for women have been "mainstreained," but there are also women's extension officers; and (e) PBDAC is increasingly adapting its operations to increase access of women to credit and has under way a program under which credit officers visit women in their homes to assist them with credit applications 5.14 Rapid rural appraisals were conducted during preparation and the Environmental Impact Assessment; drinking water and lack of credit were commonly expressed priorities in these. The project regional steering committee would include farmer representatives, and assistance would be provided to farmers to form cooperatives and water user groups. VI. AGREEMENTS REACHED 6.01 The following assurances were provided from the Borrower at Negotiations: (a) On-lending from PBDAC to beneficiaries would be in accordance with its applicable policies and procedures which follow market-based interest rates (para. 3.09). (b) GOE has agreed to the procurement arrangements outlined in para. 3.17. (c) GOE has agreed to the disbursement arrangements outlined in paras. 3.18-3.20. (d) GOE has agreed to the accounting, audit and reporting requirements outlined in para. 3.22 and 3.23. (e) GOE has agreed to the implementation and monitoring arrangements outlined in paras. 4.1-4.7 including the monitoring indicators referred to in para. 4.09 and outlined in Annex 1. 6.02 The following were agreed as conditions of Effectiveness: (a) GOE and the PBDAC would finalize the Subsidiary Loan Agreement confirming the on-lending terms between the Borrower and PBDAC (para. 3.09). (b) Confirmation of allocation of resources and terms-of-reference satisfactory to IDA for the operation of the Project Management Unit, the Regional Working Committee and the National Working Committee would be provided (para. 4.06). (c) All conditions precedent to the effectiveness of the IFAD loan would be met, other than those related to the effectiveness of the Credit Agreement (para. 3.14). 6.03 With the above assurances, the project would constitute a suitable basis for an IFAD loan of US$25 million and an IDA credit of US$15 million equivalent, both on the standard terms. ARAB REPUBLiC OP BEYPT East Delta Newlsnda Agricultural Service Project Project Coat Sumry I * Total lI_IQQ uSt QCool * Foreign Base A. Agricultural support services 1. Adaptive Research and Trraining 1,197.0 91S.4 2.172.6 412.1 257.8 699.9 41 1 2. Extenalon a*d Training 2,127.5 2,121.9 4.249 4 527.5 625.S 1,251,1 SO I 3. Cowmnity Development L_2.1 71Ul 1.255Q. _ll A511 1 JI"L 2Q 4 Subtotal Agricultural Support Service. S,809.6 3,100.1 9.400.4 1,711.0 .,002.1 2,796.5 39 4 B. On Farm Infrastructure for Smeliholder Panes 46,309.0 20,MI5.5 0,094.5 14,250.4 6,131.4 10,361.9 30 27 C Supply of Drinking Roter 19,880.3 14,659.2 14,519.5 5,864.4 4,324.2 10,13657 42 14 0. Fimanieal Support Saervies 1. Short-Term Credit 31,783.0 14,620.1 46,603.1 9,375.5 4,371.7 13,747.2 it 1I 2. Medium-Term Credit 26,099,2 47,046.1 73,141.1 7,59S.9 13,176.5 21,577.4 64 29 3. Long-term Credit 8,981.1 5,207.5 14,10S.S 2S49.51 .,53.1 4.65,4 37 S 4. Support to Village Bank _. Q2jfLj JiA 2-22JL 1011 . 7..-L ,7., A5S I Subtotal flnamclsl Support Services 17,891.4 61,342.0 135,233.4 20.025,9 20,15S9.9 40,166.0 50 53 B. Project amage"eat ad monitoring 1. Project Impleentation Unit 2,077.6 1,444.6 3,522.7 512.9 425.2 1,039.1 41 1 2. Honitoring and Evaluation Unit 642.S 40s.5 1,071.1 195.5 120.5 316.0 v 3 1 tnvIronmental monitoring and Supervision . 1,1. 2. j -1 704,2 12Z, _ 2... 71 _-. subtot1 project nbagemet sad Nomitorilg =...ILI 2,Z 5. 297.1 _UJM __. JI ,. . I Q 2 Total SASILINS COSTS 145,05s .2 309,587.4 254,545.7 42,790.0 32.312C. 7S.11.?7 I3 100 Physical Contin,enc9em 5,547.3 4,199.2 13,746.5 2,615.3 1.22087 4,055.0 33 5 Price Contingencies iLJOl.) I5 LI AQA211 _A1' 7 MIMI Q 1 2 Total otineCT C i9Te 11,907.01 121,134. 309,272.0 86,430.0 315,00.5 91,230.7 39 121 Tue Nov OS 10,44,20 1996 co H ARAN SuIMLIC OIP WVPT last Delta Ieulande Agriculturatl Service Project Psejeot Cooeta by geas A. agricultural Supeprt tervie I Adaptive Research and Trraining 116.0 *0.4 17.0 9.6 1156.5 111.7 132.1 . extension ond Training 126.1 200.0 246.t 221.1 227.7 165.5 J.451.4 I ount evelopment I 2lDg _IJ 215L1 l2_1L --MI DX 2L2L Subtotal agriculturel support services 912.) 510.1 55?.? 505.) 451.0 51.5. 31325.4 B. on Farm Intrastructure loc Smaliholder Farms 5.1722 11,120.0 0,5159. 2,420.5 21,343.4 C. supply ot Drinking Water 6,59S.1 5,21.S6 - 12,ISl.l 0. Vinscial support Servicea 1. Short-Tern Credit 1,711.5 3,19.6 51.109. 3,610.6 124.2 110.4 16.361,0 2. medium-Ter" Credit 2,459.9 4,804.0 11.112.1 5.659.1 111.5 33S.4 24,502.3 1. Long-Term Credit 496.1 920.9 2;04.72 1,202.5 21329 75.4 4,969.0 4. Support to Village bank . 2 _.JSI1 2130 ._11 .1 .L .314i Subtot1 FineacIal Suppott s5rvlce 4,911.2 1 ,109.1 20,619.2 10,684.2 401.1 315.2 46,643.1 S. Projact asaegauent sad Nosltoriag I Project liplementatlon Unit 415.5 125.9 220.1 1413. 129.2 126.0 1,220.t I. Monitorlng and tvaiuation Unit 12S.0 56.4 49.9 49.2 34.1 1.75 31742 1. govironental Monitoring and Supervislon _ H.J 61 1 25 S 2. .1 32 1 _11.5 Subtotal rotecet Naaageast and esiLoia4g .11646 .2414 22..J _L 2 .2 14 I'll, I _1_ 4 _.1_J54 total iOJUCT co5st 105501.1 236453.1 30,115 . 14 9 2 931.6 91,230.7 Tug 3lov 05 10;42i53 1996 -s0 ARA$ RIPUBLIC oFr 59V? last belts lewlaids agricultural Service ProJect Disbutomsmit Accout by rlimesciso 1US$ 0001 Pricipsl bank tor Developent ARAB REPUBLIC OF and Agricultural Local Dutiia IfAl\ll Eypt . Cadit _. le. lcta _ For. (excl. & iAminti I hAmuntL 3. IL -LAmhunL AL .ounL. t 1L . .xcLh_ IsmaL Taxs- Civil Worke 3.71736 45.3 4,I16.3 Sl.1 297.4 . c,251.1 5 .0 2,411.9 55.17 5 Equlpnent and HateriAl 51,l0.7 54. 0o.2 ISO 21S. 0.4 40C 4.17 *.C 31S91.2 1 251 906.2 Smallholder bevelope,ent 12,219.5 45.0 9,SSI.2 31.0 - 5,446.7 20.0 27,241.4 29.9 7,47710 19,764.4 Training and TeciMical Assistance and Studies 2,123.1 100.0 2 5 4 2,123. 0 21 9c 24,3 9 Credit l~~~~~~~~~~~~6.156.4 is.) 10,711.0, 23.1, 1068,19. 41.2 41,611.1 SO.2 21,296.4 24.120.9 Recurrent Cost SILA 3.L L-lW ,1 1 . __ _ 1J L5 20.14 I 4JJZJ Tota-l 3 l 111 9 41.6 IS629.6 1.1.4 It.126 . 12.3 24,111.1 4.7 911,210.1 100.0 os,600.6 C4,511.6 s06.2 Tue INov OS 1O,S0,1O 199C l'. 'i., cO_ _ lost Deltg owtloylls Agricultural Service Preleet Table All. ldoglr Rlesearch ne4 tr int llalt 1 ~~flaana3tl-- _ Cet rna...CuJ1Li'""" 0 Cont Yor. ta t. Sevestaat os cst A. Irrigation Eq'eip..aC Land Devalgemnt Drailnge Equipent Beount 170.0 170.0 0.0 05.0 1S.0 5oil and Hater Equipment *0unt ISO., . - 0 0.0 05.o 15.0 Crops and plant Protection Squipunt aeunt 110.0 *190.0 0.0 65.0 15.0 Veterinslry quipment jumount. 8%.j5 .- -J5. 0.0 a5 *0 11.0 Stbtotal Laorstory Squipoast 455.0 * 4-S.O C. Ustserologiel quipset Equipoant amount o.O O - -.0 0.0 0-.0 1S.0 D. ofgice squim -en Coaptuter and printer met t - - 9 10 90.0 - - JO 0. 0. O . 1O.0 Fbotocopier snit 3 - - I 10 30.0 - 3. 0.0 0 IS. ?ax :nit 3 2.5 7.1: * - - 1. 0.0 05.0:* 15.0 S Telophone line nit 4 ' 4.S 19 - 1 S 0.0 aS.o O S.O Subtete Office Equipmet 145.5 - - 145. B. techaical Assioteace 1. Ovarasas ?~Sai.g" Shct- tr- Overgeas Training for aearchrs w ok4 4 * 4 * 13 7.5 30.6 30.0 - 30.0 - 90.0 0.0 100.0 0.0 2. ia-Coutry TSisig Shor-term Training for Rlesearchers person/course O 12 IS 1 15 iS 64 6.1 4 0 0 . . . 4 0 0 0.0 I. E rt sarviess Local Technical Assistance person/y sr 3 2 2 2 2 * 1 34 24.0 00.0 43.0 40.0 46.0 46.0 264.0 0.0 0.0 o o. sunst:rnationally llerultnd ovpert person/day is i e to 10 to0g 104 -10 10, ---J I 4 11 ff.Q 1414 --| 0.0 100.0 0.0 Subtot xpert slrviaas : . 3I.t J . 7' . '"°'0 1loo o 7e .S 40.0 Subtotal T.chaicsl Asaistems 1. 60 100 1.0 100 1. 5. F. 0V-0rsdisg a rsech stetlee - - El-Serw Rsearch Station aPoxnt *0 L- _ _ 11 0 IS 5 30.1 0.0 Stoal baweetnent costs 1,000.5 0 s 10. 100. 70 1.4(6.s IL. Rocurret Costs *. Posoal I iaee_ U, A. bearhe Coordinator p O * *9.0 *.0 *.0 *.I 9.0 9.0 54.0 0.0 0.0 0.0 Rsearch staff P s 4 a IS 24 24 24 100 S.3J de, La_l 1201 L9.. .- 0.0 0.0 0.0 Subtotal Prenorel (ticen.1 29.0 49.0 59.0 129.0 129.0 129.0 554 0 S. Transportotion &llowanc6 p.M. 20.0 20.0 30.0 70.0 20.0 20.0 120.0 0 0.0 0 C. *eputs sad Sup9ly exprimntai riots / plot a 20 30 40 SO 50 195 0.5 4.0 10.0 1S.0 20.0 25.0 25.0 19.0 0.0 0 0.0 oftice supplies Amount ...21L* L . --I .J-2 ..j --I" 0.0 10.0 0.0 Subtotal Ruptst sad supply --J" iL .......J. ..JL. ..1...L. 41A -.._.2 S tnl ascurr et Coste s ..IS.AL8 OL1 O.~J.IL* _ILl .IS5Q ...41L1 ..I-- Totalscuetco 1.069.5 221.0 240.0 IW5. 290.0 260.0 23253.5 Eprl ental plot 1.* fed.. one for *ech village. "ed Oct 22 11,56.29 lots 0%t ARAB RElELI1C Of EGYPT last Delta Nowlands Agricultural Serice Project Table 102. Oxtension and Train Ing Detailed Coost unit SAtr InI Cost phy. Grose Oupn~~~~~.OeIas LU aasL.~~~~~~~~~-M CostILE -anal0 Cont.7or. Tax liJniL.... AtlL Il ik ZLZLlii li±I0 5L 2 IL. ..10L.. .2001..Jfl.. ..Q22.L.. ..XLaL Rain.. Riub. Rain U. lveetmeat Costa A. Neohilaep sad a alipes ni 4 00 00400 001500. RI crtit: Generatorunt 24 1 0 00 tos unit. I S 2.5 7.5 2.5 2.15 .202. 0".0 N5. "0'.0 Tapeo Eacordi unit pm0 1t 4 0.7 1.4 0.7 0.7 -2.6 0.0 85.0 is.0 Shotoghtaphic aq.aiprs.nt ~~~ ~ ~~ ~~~~~~~~set I 4 4 0.0 4.0 4.0 - 6.0 0.0 05.0 10.0 Video Camera unit I 1 * 7 14.01 7.0 7.0 21. . 500. vcu unit 2 1 I -- 4 4 .0 .0 .0 * 16.0 . 503. Ovehead Projector unt 2 1 1- - 4 3. . . . 04.0 .0 6.0 5. Toeletione Lieno unitt 2 1 1 - 0.6 1.2 0.6 0. . .0 65.0 Me. Suelephone LineT an qiatunit I 2 - 4 4.S ........ ...Lf __ - ..........UA... 0.0 60.0 00.0 fibtldal Dochi ter*sdd Uquipucat77.1 51.3 22.3 - 1 49.7 Soil Usepting Kits unit 2 1 1 - 4 0.5 1.0 0.15 0.5 - 2.0 0.0 65.0 15.0 Water Sampling Kits unit 2 1 1 - 4 0.5 i....0 ...L5....f.. ___ ...... . o1. Subtotal field Uquipmeat and mtateial 2.0 1.0 0.0 * - 4.05. C. useA.. 2.0 ipme.t4. 93,otocopier unit 3 1 I 5 so1 30.0 10.0 10.0 -50.0 0.o 8S.o 05.0 Cpter and Printer Unit I I 10 10.0 - - -- 1. . 001. =ffce Furniture sit 21 - - - .0..n .....a. .......L 8..j 0.0 40.1 15.0 Subtotal O55lcc Squipmest 61.0 17.0 21.0 - -90.0 D. TabIetdea Pick-up double Cab, unit 5 2 1 - - I t0 450.0 060.0 90.0 - - 720.0 0.0 85.0 is.0 3.motorcycleuit 0 20- - - 4 5 10. 10. - - 20. 006.0 00 F. ic~ceas u,n, it 60 270 3 0:.25 5. '7.5::. - 33.5 0.0: 65s.0 00.0 0. Tee IC&& Assistance 1. Oversea es treimia Short Courses Abcoad for Uxtensioniats 5/nth - 4 6 4 6 * 0 30 * 20.0 060.0 120.0 100.0 . 00.0 0.0 000.0 0.0 =emnare and Study Tour gifild ext. prog. mnang.) week 3 3 * 22.5 Ay4 .% ------........_ ....... ...JIL 0.0 100.0 0.0 Oubtotel overseas Teddintg MS. 120.0 060.0 157.5 180.0 - 735.0 2. Is-Coustry TrsaiNin Training for Ixperlmantal Farm Contractors /a day 7 7 7 7 7 7 42 1.062 7.4 7.4 7.4 7.4 7.4 7.4 44.6 0.0 0.0 0.0 * -Training for other Farmers amlount 25 4 0 4 0 4 225 0.151 2.6 .0 4.0 6.0 6.0 6.0 33.8 0.0 0.0 0.0 N Extension /b ~~~~~ ~~~ ~~~ ~~~ ~~~~~day: 0 5 o 5 o 0 4501 ..a. ....a....u.. 12-..12. 12.0..U.. __.....i 0.0 u.o 0.0 0 Slubtotal le-Country Itralaseg 11.2 21.7 25.4 25.4 25.4 25.4 140.6 3. EXPert SerVICes locaL Technical Aesistance presoalyear I 2 a a 2 2 is 24 24.0 46.0 46.0 4C.0 46.0 4S.0 264.0 0. 0 0.0 0.0 internationally Recruited Expert person/day 10 t0 t0 10 s0 s0 60 1.4 .41.5 ....4.L. 14.......I .3..1....i2. ..4I. ...6j 0.0 000.0 0.0 Subtotal uxpset $ervgoes ...1. --3.5 ...1L 6.3.. ...J"Z 412 .* Subttotl Technical Assistance, .4324 y 4a..I 2.14 2..4.21. _...Z[" __.114 L.22L Total leveshneat costa 026. a 7. 397.7 274.9 267.4 17.4 2.424.8 LI. Seaucuret costs A. Personnel I sc.aI Field Extension FProgram Mqanager lincent-I p..1 1 1 1 1 1 6 9 9.0 9.0 l.a 9.0 9.0 9.0 64.0 0.0 0.0 0.0 Extension Technicians SMS)45 p.m. a 02 16 to 16 06 04 2 16.0 24.0 22.0 32.0 32.0 32.0 566.0 0.0 0.0 0.0 Village lVatensionist p. 6 0 10 10 10 10 60 01 60 60 0. 20 0. 30 6. . . . Uecretariea P.. 13 5 5 53 410 ~1.5 1.: 5 7.5 1.5 7.5' 7.5 17.5 '45. .00s. Drivers ~~~~~ ~~~~ ~~~~~~~~~~~~~~P.O. S I 8 I 6 a 44 1.5 1.....E2If4...... --A"4L ...2..L ...12J A"..E. 0.0 0.0 0.0 Subtotal eSa*66ael (iaoea.i 46.0 59.0 73.5 73.51 73.5 73.5 399. 0. 0 S. Transportation allowance amount 1. 96 1. 96 1. S . c. Oametratiee plote Dmownstration Plot Input coat plot 20 40 60 le 00 60 260 0.5 00.0 20.0 30.0 40.0 40.0 40.0 tao.. 0.o o.0 0.0 3. vehicles Opersiocs Pick-up Double Cab SW~~AMout 67.5 94.5 106.0 108.0 100.0 100.0 594.0 0.0 20.1 0.0 Sick-up Double Cba n 15.0 20.0 20.0 30.0 20.0 30.0 165.0 0.0 )0.1 0.0 P. Impuet &Md Supplies Office supplies aMOdunt -- A 94. _._14 ...4s.. .4 _51A _32"L 0.0 00.0 0.0 Total 1.028.) 047.0 712.2 599.4 S91.9 302.9 4.181.S \ dysgroup tranin par" yea. \b Loca trainqtr1fr exesonigta Is cosidered on the basis of S days per year per person. Nod Oct 23 11,56,4 1996 ii ARAB OEPULIC of mownl fast Dalts Ufewlaodu Agriculturcal lsrvice IProject Table 1o1. Promotion unit1 tar cmamiaty Pavel. &nd Nuke fteafted cents Unit Zsaet.LI&A.j cost thiy. Gros. ftu&RthLi.. ILO Nowe_COA LJLNj000 Coant. for. Tog..Smt D ..inlL..hALhAL 20k. hiL OO hOL mmiImA. SIA.. JAIL. ana.a.....Jtoot.. 2002ln.. .lllJ. jgiluL glot. itch, Into. C-amn- S. mestumet teat. A. tachaical CAmstetmea laductioti Trlai. for coop. Nangemant coop. 20 20 20 6 46. 00 1. 9. . . . oz lINo-bay Seamiare /a *i.iii*ti I I to 6 -.JA" .....hA .424A .....IL ...4 .LA ......2 0.0 0.0 0.0 CWensv Publema la-Ceaatry ?tsm8eIg 72.0 72.0 72.0 20.0 12.0 12.0 210.0 2. Peraeaael noe unit Chiat p.s. A I I I I a to 101.0 l0.6 10.0 I0.0 50.0 8.0 500.0 0.0 0.0 0.0 coesmv Community 0ev. OfFicaer ip.m. 3 2 I a 2 I is 15.2 3.0. 29.6 29.6 29.6 29.6 29.6 221.6 0.0 0.0 0.0 CWaI;V Asuistant&c Csnhty Dew. oFFicaer awmont 2 2 2 2 2 2 is 9.0 29.0 29.4 29.6 29.6 29.0 29.4 116.4 0.0 0.0 0.0 cwmaBV Cooperative Nanaesrm a 7 2 0 0 40 2. 05.6 11. 44.0 20.4 - 1. . . 0coIm v .!Verelw Accountanta .c 17 21 2 --- 5 4. ---4 .4 _4 JILl 14214 .....It-..... .JL. . . . eu".ti Peeemal 141.0 240.0 420.0 357.0 2S9.0 07.0 2.406.0 2. Sbott-term Local Coasultabnt inonth 8 a 0 4 61 4 i6 2 ....4L -.I.~LA ....IL M.44 E.-A ......L-0 .... 0.0 *.0 0.0 cGmmv aubtetal tactacelt Asaiotsaoe 229.0 220.0 100.0 395.0 119.0 207.0 1.14I.0 S.Ovreasa Tralalag study tour oN WUR jierioii - - . 21.9 - 1. .0 500l.0 0.0 CuemBV COerutor aMid Printer emnit 4 - 4 2 6.0 60. 06.0 a9.0 55.0 (omSV plit urmilluge alt Is - -- I 901.0 . 20 . 4. 50tmmv telepm.oe Line unit 2 - 4. -- - - La g.e 05.0, 51.0: coma "utotal 0ffice. Uqel.el - 160.0 1PIck-up Double Cab. unmit 4 - 4 90to 0 266.0 .0 We. 5s.0 Cr2455 No0toircyclel samont A - 9 ....h. is_.......~.......~.j. 0.0 09.0 15.0 cramew Total Ju,aweatml C"ost 16. 6. 000 390 79.0 Sol.$ 2.25.3. It. Oeougreat Coats i lacetatrica pa.m I I 1 a 6 2. .9 8.9 0 .5 0.9 1.5 i. .e i.e e.g s.c cueafv Drivers P.m. 4 6 0 4 4 4 24 1.9 ....I L LA- .1. ...j.A LI4 .....4A4 0.0 0.0 0.0 OHB "utotal p.raoea.l 1.1 7.9 7.9 1.9 7.9 7.9 4S9. D. Vehicle oparalomie p.$4.0 96.0 964.0 94.0 06.0 546. 224.0 0.0 20.1 0.0 cUCSSv C.Mtorcyclas 2. .2 2.2 2.2 2.2 9.0 0.0 20.1 0.0 COMEiV office mippilem . 4 4 4 4 4 4 24 £ ....L --"JA .20- _...L ___.._L 2f9 _.JZLJ 0.0 10.0 0.0 cr50550 Total 0.0 449.2 991.0 410.0 260.9 m 03.2.4514. Twlio-day geminate three tIme per yeamr car HURls membears. Mekd Oct 22 119696g 1996 AR" IEBU3LIC OF NOT" tBet Delte olewiend Agricultural Service project tAeb 301. bevelo"nt Teratrt irrigetion Ifrestructurg lar Soelihold.rs fieteiled Ceete Un~it BezemtechJ-injlt Cost rth. Close ILU bea-Caat.Al,"110I coot. for. Tie, Ua :L Jli- JIlL JQUL- -U L - U IABL TOLL ±L41. JJj5.-. IL.t. JUL -J001 ..JU. J00L. JOLSL- AaLg. gith. WAe t. ev.t..at Coeta A. Couetirusctiom SC ?eroary Iggltt*tian sd ge.ieage Drrte Morsh Humseinly 4ed 2.112 12 )ee 1lSe *0 *.e *). 0 . SSO . 0 . 30. 0.0 tooth Foit Said s.d . *. i.s.o - 1.000~~~~~~~~~~~~~ , 3.s e,e. S.4oo.e tI.0 i@.i 0.0 toutt pact 4614 t4 4S4;" 'S40 Oouth past acid hIen led a50; 3 , 50 - .loe 3.1 9,435.0 9.5.0 1 . . 0.0 Use Ii lseeh lit ted 2,9 .500 2.10 . .141.1& - -___ - A____..... J4101.0 11.0 30.1 0.0 Total 13,043.00 ,10i.e 20.,13.0 5s,00o.0 * - se,oea.e e Bert of tertiary workls in this qehme has been already coealerted. Ved Oet 21 l, 1,00 396 coI 0\ -4 last Delta liew'lande agricultural service Project Table S0l. Seasonal and Short-term Credit S.qvirssait Detailed Costs Cost tuhy. Grass.asmviaLo __________________ggaflLlLlO* ~fLU -ss.oLiXlD Cant. for. To.Fasdtf JIIaLL jrnA AIlL .IOOL .2JOOL .200L ..2Ofl TADII .2ff1U .J.flL. _111.. 200L .0L. Rn. 2203L.. 2oka.2 La SCL SLL .. Cooet..t.- - AussMU. .testatComte A. Ss,sssla Credit /a Seed fed 5.400 35.000 I1.400 31.100 - 1.300 1.8 39.2 1,320.0 3,115.2 IS094744 004. IOTTRCE CSRLCEI Fectiliter red 6,400 1S.000 31.440 11.100 74.300 0.151 1,248.4 2,26S.0 S,345.4 2,442.11 - 11,21.3 0.0 40.3 0 0 SH0OIT:tER_CREII SEASOiiAl.-CPI111 Machine Hiring Cost Fed 9.400 35,000 J1.4001 31.500 - -14,300 9.098 1)9.2 1,220.0 1.1)5.2 1,S40.0 - ,714.4 0.0 40. 0.0 SIIO5T-TESCaru SEISOIAL (PEItT pomp Operation CaSt Fed .6,00 35,000 35.400 17.500 7 1.300 OI1S 1,260.0 3.250.0 1.330.0 2,42S.0 11.445 0 0.0 40.1 0.0 SIIOIT-T9R_ICRE SEASOI4AL'CRFOIT Mied Labor lb Fed 8,400 ils,00 31.400 31.500 7 -14300 0.071 _JfiLl _J4IS3_ _L.UL. .1414- ____..L 0.0 0.0 0.0 SIlOS? TVI.-RIMR tEtdONAL;CRF.I)IT Subtotls gsssooel Credit 4,451.6 61330. 19,411.5 ,,40S.8 42,210.2 S. Short-term Credit Working capital /c amount ..OJ..IL --II.U. .iio... -11020 ....JOil ...AILJ 0.0 0.0 0.0 SHIORT-TEM-R (ED SIlON?TFT44_CREDIT Total 1,453.4 9,271.0 20,354.5 10,185.0 300.0 300.0 45,102.2 %a estimation Is base d In crc a Input requirement per fed, maclkst prices prevailed In 1995, the pace of targeted bsneflclarl.so built-up in the project area, and the masumptIonv ihat aottlo k,trr settlers would financ* theIr input thraugh credit. \b St is assumed that I0 of the hCard labor would be provided through villagers cooperation with each others. free t1 charge. \c Short-tecm credit to considered tar small-scale bus "e.s such an mailk collection canter, dairy processing, Vrivot veterinry cienic, and marketing activities. TUG Niov 0S 10,5503 1504 '0 ARA EIJUIII-tC or EGTn last pelts me lfldC AkgriCultural Service Project Table 301. Hedlur-t*re Credit Requitement. Detailed Coost Unit Outijt Iis ILtS ____ ____d unitaL. kIlL -LIlt ..121(L milk1 JIlL2 milL 141,1a. 0Il11 .A2-.I1. ...jl.. ....2000. .JOOL.. -20011. -....flD 1. lvert aet Costs A. Agricultural squimeet /a Tractor 70.f0 Ilk Unit 27 44 SI0 52 * 226 31 500.0 3,6o.0 1,52.0 1.. Trector o0-Jo Unit II 22 51 26 - 1 25 30.0 0 1S00 1,S3.0 CS0 0 Unit 24 44 106 52 - s22 1.5 26.0 0 355.0 70 Furrow opener pitcher Unit 12 22 51 26 - 112 1.7 P04 11.4 50.1 44,1 Notary Tiil*r unit 2 44 10 52 226 I 72.0 132.0 21I.0 156o0 Field l*viler Unit 2 22 S3 26 - 113 2.541 30.5 55]. 134.0 66.1 Manure Spra&der Unit 32 22 53 26 111I) 7 64.0 154.0 37U.0a181.0 S4 Unit 12 22 Si 26 11 12 144.0 264.0 I63.0 112.0 - Seed Ortll Unit 12 22 ii 26 - - Ili 15 100.0 3)0.0 IWO. 390.0 lRov Crop planter Unit 12 22 5 26 111 1 10.0 110.0 265.0 130.0 Feat Control Sprayer Unit 12 22 53 26 t 50 154.0 371.0 303.0 ThApi. railCuli Cropl Unit 24 44 106 52 - 226 7 ..4 4 ..U0IOLA _7J1 a A ...l6.D Thresher Imuliti-Cropl 3,Ota.9 ).I S.: 5.12)8s 4,4791 subtokal Ageic.altural lUrgwijmetga. teris D. Other Medium ter Czedit 3*quir_ otEqulpm4Qt for S" unale Ueterprie.s Iice and %heat Huill /b mount 235.0 1,034.0 1,71.0 16500 0 Livestork Enterprle DCvelopment Iequipmcntl /C eomunt 572.0 rd40 17).0 112.0 tiveetoch Dvealopeet /d seount t.315 I.20S 5.000 2,540 - .211,043 4.2 j.hfl9J . 1 2ZL 6- lQ.----D Subtotal Otber ediMum Teo Credit RquirUequntlqipmaft gor Small scale Ua&erprgiee s.i4L4l S20. 1 31 241 1S..11LA2 _.1 ii.0_Q 11. a ltota a The nueher ol equipmlent presented In this table Is calculated on the basis of the masuetlton tchat S0 of tho targeted eraso requirement 4the requirement Is estimated on the basis of a S00 iedden nodel will be purchased through eredit. \b Values of estabiemhing two riCe And two wheet mAills In each of the 20 targted village i considered \c including private Voterinary cliniCS, oilk Collection caters, milk processing unite etc \d Although inCr*mental Colt tar this purpose Is considered for 11,043 settler., through repyment ot the medium tern credit more then 60s o0 the targeted oettlere would be able to participate in livesock development activities. Sled Oet 23 112:14,44 IS 0 le3 UtAm RhMtLC OF IdYPT ioet kits 11avionde Agtlitufrl Eer.ice project Tablo 103. lang-tts CredIt *euirelent for stablAung smellt 0role Unteaprplae la Detailed Costs ulnit tou MLrfiIt Cost Chy. Cio.S OUanit ilia1.. 1L llU _____________________1_'5"ILI2 _-o Cont. for, lSs JaLtlLJ liIL_ inL 0* tlL JO .L_I.I nu- AI ....-goal li __ .JOIL 2001A0. ..0IAL2. 20....ZI. _ ToaL, ai.. rgch.. EAtS_ 1. l..entat coots A. "It-SCSlI LIvestock 11terpelees and Animal Shelter Private V*tarineAy Clinic t munt . 1 * .f 30.1 20.g 13.3 101.9 0.0 33.O 0.I Milk Collection C unat 15 0 *0 1 01.5 66.5 3t.1 311.0 0.0 IS.I 0.0 uiuik Processeing Jnitte haunt 456.0 149.6 215.4 215.) 266.0 S4.1 l.00S.6 0.0 35.1 0.0 Memeu Shelters /b amount o00 1.104 2,540 1.210 - - S,11 3 t-2L1L _L1 J _. 11.112 .SI.J --_ l i.. 0.0 *S 0.O Subtotal aallO-c.ls Livestock Enterprises and Aimal abelter 1384.01 2,420.6 IS,101.1 II33.4 3'S 90.1 12,411.5 J. Other Smll-Scolc teterprvle0 AgronproCCse Ing and Agrlbusinal,oo amount 154, 120. 5,731.1 I" -,. 5. loc. 1 .e se.l e.e Total l,SI 2.l20.O S.S71 1,231.4 55. I 1 11,§11 S \ Long te"u eedit is consldared tor Constructing liveetock shelter, and civil structurie tog sawll scale enterprises. \b rv4d on tIh bases ot cost of Le 2.000 per shelter And assuawtion that 500% ot those reeolving credit will establieh peruant nt ahelters tor their livestock. M.4 Oct 2J 11151211 III$ I.. AlS EsmLte OF OPErr 6 eat eltta l ewi.on Agricultural service Project lablo 304. Support to Vilagoe Dank botatl*4 Csot# Unit tautaro lln jt cost thy. Gross ________________ f1LU - *L .CuQLJI3 .00' Cont. For. Tax _____wmrx Unit IIL i A iL.JOL- JU U ii jm.R jj6 jj a -2002 -1&L Met EAL &.Bab_ UsaLo_ _____..CoanZnL__.... A. Civil Eairkh Vilago Bsnk& Wilt 1 2 1 * 4 350 350.0 705.0 3e 0.0 1.400.0 IS.0 e0.1 s .0 SUIrIL_BaNK P. OffIco aqs I t Ofti t. urnntur. and Equipment amount s I 4 20 30.0 #e 0 10.0 s12.0 0.0 e5.0 1e.0 eUP. VtIL EMrK Cogputec and Printer amount I 4 3 o O3 - ...JL. 0.0 55.0 IS.0 SUt_VIL sANK Subtotal 0llie* Eqipmeat 0.0 120. C.Vebielee Plck-up Double Cab. unit I a A . . 4 go 10.0 1.0 0.0 . s*0.0 0.0 o 5.0 1S.0 SUP_VIL-BANE . Trainin1 eek 12 3I 22 _ 50 0.11 9.0 S 110 14.5 7.S 0.0 0.0 0.0 SUP VIL-sANK S. otocyc e Hotorcycles unIt 2 4 2 0 I . _.* A . L* . * 00 1e.0 sU VIL0t1 Total luw.uteat Costs SIII. 1.1)1 . 12`.! - - 7 017.S tl. Secureat Coeok A o. -c_til tot eeedi.ati.m Incentive tor the coozdlnator In tVICC aountt I I I a * 31 12.6 2.6 12.6 1.6 Me.0 12.0 11.0 0.6 * .0 0.0 sut VtL SRNK Incentive. for coordinator Im OAc, amount I I I I is 6 I.. Ica _J Q _ .Q LL .401J 0.0 .0 0.0 *UP eV esuKl total auzr.e.t Costc 111 I "* I JL .11 .AL -- Totel 145. 02 *16.1 20.0 30.0 30.0 2251.71 1ead Oct 3i Ilis712 1959 table 40. P TM:Ilemethlbon unit Cost thy. Gross EL. sl-e L cont For. Tax ......JnIL RIL ILIL L RAIL RAIL. IL U L_ 20 lS UIL 4IL. JIlL. _M101._ 2ilL. 2E10.. muL. -,a Rate_. Back. KALAL. I.la.esebmt costs ottcer ouildlg iohoblblilation unit I t'i s, * .*0.0 15.0 10.1 0.0 oo9uter and Printer unit.9 .5 loItwoor lackege let a * a a I * 4 i~~~~~~~~~~~~~~~~~~~3 I0.0 so. 1. .o a. .0 0. 6. 2. Poool7machine *Et2 11 1 * S 2 00 2. 0.0 26.6 S0. . S901. nei ~~~~~ ~~ ~ ~~~unit I 4 4.0 l.10. a . 900. I0. Hi termslou oqulpeent exeunt .6. - ..2L9 . 6. 3. 6*1.1.l SEttece Iqulpeest 414.0 2.0.0 1.6 21.0 21.6 401.0 tpick-up Double Cob Idiosoll unit I a 00 05.0 - 00.0 - 190.0 s9 us., as.. Pickbu 20eroeclOtlIunit 1 * - - a 0. .0 * - -.211 . 0. 1. 6*1.1e1 wa~~~~~~~~~~~~~uit I a - £400 - 10. 600 *9.0 0. Wotrcycle 200 100 -360 e 3. loc olo feootome e... .. Nramet couraso /a week - . I 223 * 23.S 0.6 100.6 0.0 Conut0r Course lb perseo/couffee 0 I 2a 2 a 12 2.29 .9 0.0 4. 0 4. 6 4. 0 *3 20.1 g.e 0.6 0.0 Maup"ent .8FrcursGont Courses, I. p.fSdEI/COuroO a 1.9 2.0 * .0 0.0 0.e *.o Nthdroawo Application Coueose Id Person/couare 2 .0 - * 2.0 0.0 0.0 0.0 SubtoteLoal reosToitate 10.0 42.0 46.1 40.5 40.0 15.0 29.) 2.contracted loergmot * project Director p.e I 6o 60.0 60.0 80.0 50.0 60. 60.0 160.0 0.0 0.0 . aam D. Finance Director P.&.. 16 16.6 14.0 14.0 10.6 as.. 10.0 06.6 . 0.0 0.6 senior accountant P.*. I £ £ 0 S *2.0 12.9 12.0 12.0 It.10 32.0 12.0 0.0 0.0 0.0 ProcurOmnt Ofticer F.& I I I 6 I..4 14.0 14.0 14.0 14.0 14.0 14.0 04 .0 0.6 0.0 0.6 bi-Linguaotoscrtetry P.s, 1 1*4..4..44...14.j4.....j4 ....... __.J 0.0 0.6 0.0 IOubbtotl Csetge.tel teroCSel .4M.&5 .114.451 .41A .4111 .4111-f -AIL subtotal teooluicel 1.ot.tomeo -A"5 .421 1 ..41 .41". --I11 -41 .1*14 wtote invesoot'10 coot. 1.2)0.6 060 420. .1 1 11.1 141.0 2.400.4 It. OoerrOant Coost A. personnel lsotva The project Entanaton and Research coordinator p.m. a 2 1. 20 1. 20 1. *2.0 'J.0 0. .0 *.. Adtmi. tar Finance AumsitomtO P.O. I I a 3 'I I 2.9, 2.9 2. 2.0 2.0 2. 2.I I56 00 . . sacgetecies ~~~~~~P.*. 4 4 4 4 S 14 1.0 61.0 S. . . . . 26.0 00 0. . lrovrre tev.p. S 9 0 a 0 a 431 1.S 1. 1.9:1' . 12.0 212. 12.0 61.0 6.0 0.0 6.0 Itorakeepere P-&. 2 2 2 a 2 2 12 a 2. .0 2.0 2.6 2 .0 2 .0 12.0 12 60.0 0.0 0.0 DrivorOP.. 3 3 2 Is1 6 16 1.0 1.6 . . 1.0 16. .0 3.0 1.0 NOsasne P.O.. J I 2 2 S as A 2. .0 2.0 2.6 1.6 2.6 *0.0 6.6 0.0 0.0 Guard. p.o. 2 2~~~~~~~~~ ~~~~~~~ ~ 2 2 2 2 12 I 45..J.a ~ ..... .J..___a 4 12.5 0.0 0.0 ,0. nubtetol foeood.el. Ilaeoativeol 20.0 6. 41.2 41.2 41.2 4I.2 230.0 0. ebiclo Oorotiooa Pick=u Doublt Cb. dIseoel p.O. 40.91 00.1 61.0 671.0 ...0 21.. 1. .01. . IPick-up Doubl Cob. Eps Irolp 14.2 14.2 26.5 20.9 14. 14.2 III.* 0.0 26.1 0.0 p.o. .41.8~~~~~~~~~~~~~~-U --...JL .4*4 ......JI.0 ..J1.3. . 0.1 0.0 minibus o OuAbtotol vobldele Operottome 64.0 04.0 t.0 126.0 II.) 711. 064.0 C. Motorcycle p.. .0 4.1 4.5 4.0 4.S 4.5 Ml. 6.0 10.1 0.0 0111ce suppliedo 9. 30 ---.JL 2.41.10 .11.1 .413 .....L ...J -"33A 0.0 30.0 06. Botl osoret COe.114- 41:4 2z.. 401...AL1.iLkS jul01 2,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~3405.2 )o. Sao.* 214.0 320.2 24.1 2,407.1 ~aThree week courioem or tAo pro/Oct director. %b fThree week Course. %c Ivo week cource toe procurCOvuSt oflic4ri. %d ej'oneano , woek course tog tOo porticipants. Wed Oct 22 11857113 Me9 AAnb ROIJOLC Of EdYIt? Raft Delta MOulande Agricultural servlce Project Table 402. aontorl nd vaaluatiod Unit Dtat"le Coatn Unit 'iIL Cost thy, Grosu O.*nt lltiis , IL S Ust 2Le eABI Coot. for __ TON ________ .JI*1L........U. 1 11. 12O 2000. 1l1- UU*L "flfl Znti .'0IA1. .1H11. .11L..ffn...io....Jlt. Mtri".. ..XDL L Pao. licli. SLt. - --- A =t 1. Isvastenst Costs A. Ottls i eqaipm..t Computer nnd Irintas Unit J I e -0 0.0 30.0 s0.0 *.0 ss5.0 Is.0 NONVAL UNIT Pick-up louble cab. unit 2 2 - 2 0 160.0 * - - . IO.O 00 IS a . S 0 0_1YALDNIT C. tachelcal A nieatbacW . la-Coutr Tralogal Coeputer Coursne i/ /I person/course 4 4 I 2.5 i0s. . . - . 20.0 0.0 0.0 0.0 NOtE OVAL UNIT 1. Cosatgated .reaoasel N a U Director a 2 14.0 261.0 1.0 16.0 16. 6.0 6.0 0.0 0.0 0.0 ON VAL UlT N A S Otticar P.M. la 2 2 1 it 2..4-. 2Ll ....JL .....ZL --I"ZL ......0 ....l" 0.0 0.0 0.0 MH_BVAL UNIT subtotal Costracted tsagousel 40.0 40.0 40.0 40.0 40.0 40.0 240.0 J. Iater-aatioaily locrtad Trainer *aonitl I I - I - - 2 10 1 .........SL.I ...JL* ............ l .......U.a O...~ .~ ....iso. O. 100a 0 0.0 NII _VAL UNIT Sbtotatl teealeh Aeaistafee 300.0 100.0 ' 40.0 90.0 40.0 40.0 410.0 0. stuAtl^ tortelt * * - - . - I 1 50.0 - 0 0 -.0 0.0 MM oVAL MNIT Review Studios IoiItit - * ----0 a -..R. 1 Ll 7 ... . . * .L 0.0 _ 0.0 NWLSVAL - UNIT Toteal Oaw-etat Costas 350.0 20.1 30.0 50.0 40.0 tO.0 170.6 It. Reurrt Cota A. er ps t I I I I I I * 1. . | . 1 S 1 1. S t.S t.S 0. 0.0 0.O 0.0 "0l tVAL UIIT sacrtatry . Driver . l a 2 2 2 II 1.5 3.0 3.0 2.0 2.0 2.0 1.0 10.0 .0. 0.0 .0. MMON OVAL U"IT NasnSer P. A I I I I I I 4 * S _J - 5 . 0.0 0.0 0.0 O* OOIVAL_UNIT subtotal beroael .1 S1.1 S.1 S.1 S.1 *.I 30.S a. Vehilel Oes..tias Pick-up Double Cab. .o21.0 2. 10 2. 10 2. 5. . 01 00NN AII C. Ouguta sad Soppliaa O t ficeuII** P.&. I I I I I 12 * 0.0 . 0.0 NW1LWVAL_tMAUIT 1611F.P.90 39~~~~~~~~~~~~~~~24.2 114.1 134.1 22. 4.l 134.1 1.054.6 tuO 2-waeka' courses tor 4 pertlcipantu each. wed Oct 21 11i57S50 tol4 A' vi~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~O table 402. fla emntol Noetotlng and uInit r tt f Cost Pg Chos7 llt ltSL 1Jfa&II I' L -L±*ML .Cost COOt. for. ean _ _ __ _ __ _ WInL- IJSL Ill- not. 210k 30L ijjj§jjjjjk ±103 JnUL Lut lnoamL ABU. saw. 1 LTL1 ULoL_. Inch. UIkta. t. laweakeat Ccost A. W.atef iasjt? tt,,1srlog / Water Iaayling end Analyala acayle Ig0 H5 ISO 10 6 Igo 2016. g0.0I66. I go0 50.6 16.0 50.6 351.0 1*.0 60,1 0.0 INVI0OhNHTIAL HoWl?oa3MJi suoogvymoN oll aeIS Log and Analya l amp_le 10 t0 10 to to Is go 0.11 _1 J _14 .. .4 _A4 41 31.0 S0.I a.o lIRnvag AL_Nou1gaRlN7AaJUsomvssot jubtatl Oat-r Ovality Mositorae s . 20 . 42.S '2 . $32. 3716.3 D. Orouawadata Hoalteglag kgilling Coat unit 30 I 30 1.3 03.0 -11.0 1.010. 0.0IIWOCIITAL HONIIGIOIUANDgtJPsawlg, Mobilisation and Contracting, *nd Civil Vtk unit 10 _ _ * 30 2.2 A1 101 . VDu s Subtotal Orouedaatsg aiteore I17? . - - - 317. C. study o Supply et Prinhlng later amunt 9,* 106.01 M0. 0.0 0. 0.0 UiU OW ITAIWI E. Health Monitoring amount LI.4 I 4 Li1 .4A 2LA I1.0 so. 0.0 0NVlaobwhlnLNoug1uoWa-j pfVtS ON Total 236.0 171.0 71.0 71.0 71.0 11.0 503.2 i. t would be undertaken by the Soil and Natea eesaercb Inotitute. wed Oct 21 11:0151 3006 ON : '1 ARAM amuLc at wiDYr last Delta Ee1iand Agricultural service Irejct table SOI. a¶ty of DrtikilW "ater Coatli Coal Cost thy, gross ILI set Cant. Pat, x txrn t. laveahaat Coats A. Civil Horks sapunt 15,o0o. see.o 2O.SO S.@ 1. .l 0.0 DRIlNIIW HAT_lII B. Iquipeent amount .L_O JIa s - , )-L 0.aR0 1 15.e VIIHKIHO HNxE Total li9.OO.0 1S,001. . - 34*000.S llod Oct 21 13,33,0e 10U 0' Ii RlAB tNOMLIC Of GYPT Olt Delta Hovland' Agricultural service Project Imflatleem sod GSbeaga sales Up to tip to Pirojeet MaSRL1ALiaO -SeLA ISlE.ASL ZOO9JL AAL- 22iii.2nal totl tle ln Om Va /a All Anual g.t.e Local 1.4 *.0 7.0 S.0 S.0 5.0 5.0 5.0 Foralin 1.t 1.1 1.6 I.6 1 .* 2.6 2.9 1 .S Coagousdad rates Local 1.4 6.0 11.6 tS.@ 2S.6 31.4 36.4 45.3 Sacbg I1.6 1.1 2.6 S.) 0.0 10.0 13.6 11.1 Wats actually Used 1.4 1.4 1.4 1.4 9.4 1.4 3.4 1.4 Constant purchaing parity rates 3.4 1.4 3.1 7 ;# 3.9 4.0 4.1 4.2 t devwation 0.6 0.4 -7.6 -11.2 -13.6 -IS.S -11.1 -1I.1 %e yearly valuic are within Bach krtect Year fb Yeatly values are at Froject Veer Midpoints Tue Oct 29 11*slStD 1996 04 IA -Js31 Figure 1. EGYPT: East Delta Agricultural Services Project Organization Chart MALR lW | National Level .. ................... . GAIoPAD odNational PBIDAC ~.. ._ _..... Coordinatlon i-- ", - - ................ .... Nataonal CoorGrnator Comtitte/ I ....................... ....:__ . ~~~~~~AES AR .... ........... ...... ..... ......... ------------------- --------- -..... . . . .. ------ ------------- - . #.i. . --- . . .. -- -- ---- ------ Regional/Governate/ | Sri |---C _. Project Water Level .................. Level .- | utlority P|IU Regional Governate MPWWR 00 Governate . . 'ten*Ion J Governate BDAC's Project Director Omces Village^ l[k 1 iCooperatlves WUAs .. e----------- Village | DACs I t $ r Direct Action r ...... . -- Support - --- ----- ---- Responsibility Level 0_ - 39 - ANNEX 1 (c)s Chart I EGYPT EAST DELTA NEWLANDS AGRICULTURAL DEVELOPMENT PROJECT Key Monitoring Indicators Output Indicators Unit ist Year 3rd Year 5th Year 1. On-farm Development Tertiary drainage fed 1,500 18,500 20,160 Tertiary Irrigation fed 1,500 18,500 20,160 Leaching fed 1,500 4,500 20,160 2. Supply of Drinking Water contract construction All villages in North letter completed and South Hussainia with drinking water 3. Village Banks Constructed and staffed no. 1 3 4 4. Agricultural Credit Short-term (farmers) no. 1,800 12,000 15,000 Medium-term LE m. 7.7 55.0 81.0 Long-term LE m 1.5 10.0 14.0 5. Procurement of Vehicles and Equipment Vehicles no. 26 - Computers no. 36 - 6. Extension/Research VEW no. 60 130 130 Demo Plots no. 20 60 80 SMS no. 8 16 16 Experimental Plots no. 8 30 50 Farmers Training Courses no. 25 40 40 7. Cooperatives Established no. 20 40 60 Water Users' Associations Established no. 20 60 100 Development Objective Indicators 1. Adoption of Technical Packages (farners) no. 1,500 10,000 13,000 2. Annual Increase in Agricultural Production Milk tons 100 13,000 53,000 Meat tons 30 800 1,200 Cereals tons 450 24,000 42,000 Cotton tons 0 0 800 3. Incremental Production for Typical 5 fed Farm Rice 0.8 0.9 2.5 Berseem 7.8 19.0 20.0 Wheat 0.0 0.4 1.2 Milk 0.2 3.4 4.9 4. Incremental families settled 1,400 7,000 15,000 EGYPT EAST DELTA NEWLANDS AGRICULTURAL SERVICES PROJECT Logical Framework Project Narrative Summary Verifiable Key Indicators Means of Veriricatdon Important Aumptions CAS Objectives 1. Support private sector development * Number of agro-enterpries established * Project evaluationr * No abrupt policy changes regarding 2. Alleviate poverty and unemployment * No. of families sttled and gainfUy * PBDAC reports settlement 3. Improve natural rcsource management employed in project area * Soil/water monitoring data * Continued frce market economic framework * Soil and water quality accepble Development Obiective 1 Facilitatc the settlement and increased * No. of technical packages adopted * AWP/B * Willingncss by famers to adopt agricullural production of newly settled * % population in No. & So. Hussainaya * Disbursements technologies that incrcase gmss margins farmner in the East Delta Newlands with adequate drinking water * Village and farrn surveys * Efficient credit promotion and 2. Realize the potential and maximize * Agricultural production inerease * lBeneficiaries monitoring administration returns to suit investment in Land * Yicid increases of typical farms * Loan repayment rates * Continued adequate pmvision of irrigation Reclamation. * No, of familis settled water. 0 Adequate operation of drinking water system by Sharkiya Water Authority Output I. Research/extension system opentional * No. of experimental plots & demonstration * AWP/B * Delays in completing social services and 2. Community development operational plots cultivated * Annual and six monthly tertiary frastructure that can lead to delay 3. Tertiary infrastructure compilted * No. of cooperatives & WUAs fonned reports in sttlement of farnner 4. Drinking water system completed * No. of feddans with teriary infrastructure * Annual accounts * Adequate irrigation water supplics 5. Financial support scrviccs operational * Watr treat ment plant completed and * Balance sheets delivered to Es Salam canal 6. Projed management unit functional network laid in North and South Hussainya * Loan disbursement tables * Adequate counterat funding * Village banks completed, staff trained * No. of loans approved * Prject M&E system established Inputs/ComponentstResourMcs I Adaptive research and training services * Rescarch staff nominated * AWP/B * Timely execution frmework and provision (TA & equipment) * Extension/SMS staff nominated * Annual and six monthly of services and inputs 2. Extension training services (TA & * Goods purchased reports * Delays in project effectiveness arc within equipmcrnt) * TA contracted * Procurement the norm 3. Community Development Support (TA & * Civil works/equipment contracts lot documentation * Adequate counterpart funding equipment) * Agreements between PBDAC and BDACr * Annual accounts 4. On-farm infrastructure (civil works) finalized S. Drinking water provision (civD works) * TA for PMU rceruited, coordination S Z 6. Financial support services (goods, TA & committee cstablished c civil works) 7. Projec management and monitoring (TA and goods) -. Egypt - East Delta Agricultural Strvices Project Procurement Plan .____________________________ .Method of Preparbng of Approval of . Bldhn Bid IDN IFAD Om Deveryl ConlracUProcesslng Procurement BD ID by IDAAIFAD bsue of ID Opening of BD Evaluation Approval Award tnplemenL PROCUREMENT OF GOODS & MAtERIALS .. Bicd t- Vehicls. Motor Cycbs & Bicycles ICe 9197-10197 Nov-97 Dec-97 Jan-98 Feb-98 Mar-98 Ap98 698-1199 Package 1 - Vehcles (26 no.) .._._._.. Package 2 - Motorcycles (59 no.) Package 3 - Bicycs (130 no.) . - Did 2-- Cbpters & Ofce Ecp4ne ICU 9197-109 Nov-97 Dec-97 Jan,98 Mar-98 r-98 May-98 7196-2199 Package 1 -Computers & Printers (38 no.) Package 2 - Office Equpment (fax, cp. ate __.) _ Bid 3 - Adopive Research Equipment ICB 11917-1108 Feb98 Mar-9 May-98 Jun-96 Jk-98 A98 18G98-4199 Package 1- Land Devel. Drange Equipmen( __ Package -2 Sdl & Water Equipment _ _ _____._._._ Package 3- Crops and Plant Eqtupment _ | .__ __--| Package 4- Veterhary Equipment Bid 4 - Extension & Traing Equipmentl I 1ca8-3198 AprJ 8 May-98 Jul-98 Aug-8 Sep-98 Oct-98 11991V299 Package 1- Electric Generators (4 no.) Package 2 - Training equipment ._._______ Package 3 - Field Equiment PRROCUREMENT OF CIVIL WORKS ._._.__ Bid 1- North Hussalnya Scheme NCO 9197-1219- 1181981/31198 Feb-98 3/15198 3115-4/1598| May-98 May-98 5198.122000 Bid 2- South Port Saki Scheme NCB 3-6/001 71ffO-RW0 Aug- Oct-0o 10100-11115100 Jan-01 Feb-01 3101-12101 Bid 3- South Port Said Plain Scheme NCB 9197-1V97 Jan-98 Feb-98 3115198 311519-4115I98 4198-5/98 Jun-98 7198-10100 B;d 4- Um El-Reesh Scheme NCB 3197-6/97 Jul-97 Jul-97 Aug-9 7 Sep-97 Oct-97 Oct-97 10197-12198 Bid 5- V'iage Banks (4 no.) 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C ... . , ,, . . ., . ... ........,................... .41 || ''' -' -' ~~~~~~~~~~~~~~~~~~ . ........... ............... ... .. ._...................................... ............ ..... . . . . . . . . . . . . .. . .. .. .. _ _ __ _ _ _ ,_ _ |F.i,l. , N 6 JO Z 2v (). : X: : v .~~ ~ ~~~~~~~ 91.7 b EGYPT E-AST DELTA NEWLANDS AGRCULTU)RAL SERVICES PROJECF Implementation Schedule -South Poit Said 1990 1997 1 1916 I 1is" 20001 2001202 ] 00 ID Task Namie Duration Start Finish 0203 041 01 Q210310410iIQ21 303 410119~02 I93104lltI02lQ I31Q JQJ3QJ1QJQJjqJ20 -43 Field Drain 26w 11118108il 511810 44 ~~~~Drain 40w 12/`16/98 9121M9 45 ~~~~Main Drain 3w 11117199 6311310 49Tertiay kirigation Network 775d 711199 611910 U1 1 47 ~~~~Intaks 22w 10/14198 3/16199 43 ~~~Outdiles 25w WM19 112510 49 ~~~~Main Masqa 330d 71113 1010/3 50 ~~~~~Earlthworks 40w 71119 4/6/9 51 ~~~~~Concretewoks 5Ow 8112108 7t27/99 52 ~~~~~Stone works 501w 10114/98 912819 53 Structurfes SOw 10121/98 101MM IN Masqa 41N 417/9 10/31100 66 ~~~~~Earthworks 80w 4'WIN W017100- 56 Concreteworks 70w 5/519 9/5/00 ST Stone works 70w 5/19/9 9/19100 59 ~~~mamwa 4500 W12793 10117100 60 ~~~~~Eaulthworks 90w 117/9 10117100 61 ~~~~~Corncretewotks 80w 2/24/99 9/1510 62 Stoneworks 80w 2r24/9 9/5/00 1. 63 ~~~~~Structures 60w 8118/99 101100 Task1 Sumary Roled Up Progess Nestands Agr. Sarv ~~~~~~~~~~~~~~~~~~~~~~~0 Project: East DeaNMM g.St Progress Rotted Up Task Date: 10129190 0o Milestone Roiled Up Milesone < Note: Actldtes In Italics are not funded by the Project EGYPT EAST DELTA NEWLANDS AGRICULTURtAL SERVICES PROJECT Implenienlation Schedule -South Port Said ¶917 1393 1199~~~~~i 2000 2001 2022002 ID TaskNarme Duration Staul Finish 12Q3141Q1Q02Q03 C Q1Q401 2 031041011 21031 011021031041 l23412Q o 6i4 Farm Ditch 60Od 11113199 1011113 65 Ealhwarlis 1E00Ow 1I1I9,6M 1101700 66 Roads Slid 1111313 111710 67 Sub,-base 9Gw IIilam9 01810 69 Buse 80w 3r24199 181300M so AspInat 60w 311619 l1/700 4 70e Leaching 1114dj 11122130 311910 71 FIrs Leacd.n 4w 111r210 12l1g0 72 Second LeacNng 4w 21811 3127101.I 73 Thr ecig4w WWI10 6113101 74 SOUTH PORT SAI SCHEME 296dj 31711 34102 75 TeotIhr Drainag Netwaik 20Od 31710 1211110 76 FIeld~~~M Drain 25w 317101 314101 77 ~~~~~DFRai 2w 4118101 18101601 is MakDimai 2&& 61110 12111101 79 Tertiary Irrgaihan Network 280d 311011 1211110 s0 intakes I12W 311101 5190 31 ~~~~~o'diaIs 15wV 8//1MI 200 32 main masqa 2OOd 317101 12111101 32 Eadhworks26 317101 9/4101 34 Concretwiorks 20w 5/161 1120 0 Note: AcIMlies in Itakis we not funded by the PrOtect EGYPT EAST DELTA NEWLANDS AGRICULTURAL SERVICES PROJECT Implementation Scliedulc. -South Port Saaid 1996 Is" 1991 1999 2000 2012002 20 ID Task Name Duration Start Finish- 02014 1211401 102 031110 30 1 20 40 20 0 10 30 02 03 es Ston works 18N 4/18101 812M/0 06 ~~~~~~~SkLrctures 15w 8129/01 12(1 1101 57 Masqa 1USd 3/7/01 10/9101 Be Eadhworks 25w 3M7)0 812)0 39 ~~~~~~~Concieleworks 21)w 4/4/01 8121)01 so Stoneworks 15w 50201 8)14/01 Si ~~~~~~~skmuches low 6/20/0 1iGa 92 Mauwa 18Od 3/7/10lOflOi 93 Eadhwodts 31)w 3r/7/0 10/11 94 Concreteworks 20w 5/1610 10/1& i............. ............. . ....... 99 ~~~~~~~Stoieworks 15w 6/201) 11(2101 99 ~~~~~~Structure 12w 71210 10116/0 37 ~~~~~F.m DItch 159 3175 '10=121 93 Eahoes3w 3/7101 10/2101 Roads hOd 4/4/81 1211151 100 Sub4mae 25yw 4/4101 9125)0 101 Base 20w 5r30/0 10/18)01 102 Asphiaf 15w 8W210 12)11/01; 103 Leacthing SWd 12/12581 35)62 104 Fkrs Leachin 4w 1212M101 1/810 105 Second Leaching 4wl 1)9102 21502 ___ ___ __ ___ __ ___ ___ __ ___ __ ___ __ ___ ___ __ ___ __ ___ __ ___ ___ _ ___ __ __ ___ __ ___ __ ___ _ ___ ___ __ ___ __ ___ __ ___ ___ _ __ __ ___ __ (DA Task Summary Rabd Up Pfogrom 0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~If Pr*d EWDeffaNewbm!sAgr Serv Rokled Up Tnk m~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- No~AlvtSIn Kals ame not Iwidd bY tNe Project EGYPT EAST DELTA NEWLANDS AGRICULTURAL SERVICES PROJECT~ Implementation Scikedule -South Port Said 1996 1 l"T I 1393 I is" 20 2001 I 2002 I 003d ID Taksk Name Duration Start Finish 1203104101Q210310410102031041011021031041011021340330401Q2 034 1020 106 Ttkd Leaching 4w 21512 3/510 I 1-07 UNE.REEISHEEJd 10/22/97 213file___ l0t Tertiary Drainage Network 3Old 10122/97 12/22198 109 Field Drain 40w 10/22197 7/28/9 110 Drain 40w 12171797 9/2219 111 ~~~~~Main Dran 45w 2)11 98 12/22/98 112 Tertiary Irrgation Network 3OOd 10129/97 12/2218 113 Intakes 12w 2/11/9 515/9 114 Oulfalts 16w 7/15/98 10127198 1111 Main Masqa 2Bid 10/29/97 10128/ 116 ~~~Ea,thworks 40wi 18/99 8/4/98 lit Concreteworks 30w 1/7/98 8/f4/9 111 ~~~~~~starve works 3Dw 2)18/ 98 15/98 119 Stnicures 25w 4r29/96 1I12(r19 120 Masq4 270d 10129/97 l1/10181 121 Eprwwtwok 40w 10129/9 8/4196 122 Conceteworks 30w 2/4/96 9/1/98 123 Stone works Sw 3/498 9299 124 Struwtures 25w 5/20/98 I1110M9 125 ~~~~~Mwwa 30Od 10129/97 1212211311 125 ~~~~~~Earth%wurks 45w 10r20971 MM I9 0 NOWe Aclimte in Rafct are not f.mded by lOm Piojed EGYPT EAST DELTA NEWLANDS AGRICULTURAL SERVICES PROJECT Implementation Schedule -South Port Said 1996 1 1997 1993e 199 M00O00 2002 2003 ID TaskName Duration Sladt Finish Q203 04 01l02 Q31 04010210310401Q 02 0304 0Q1 0 301022Q30, 04 01Q02j0304j01 0-20[3 127 Concreteworks 30w 2J/11/90 9/8196 123 Staneworks 30w 2111/98 9/8/9 129 Strutures 25w 711198 12/22/98 130 Farm Ditch 260d 10/29/97 10/13198 131 Eartiworks 50w 10/29/97 10/1319 132 Roads 265d 11/26197 12/119 133 Stb-base 40w 11/r2697 9/1/98 134 Bass 40wv 1/21/9 16127/981 131 Asphalt 25w 6110/8 t2/1/98 136 Leaching 1T0d 12119/9 1113/3 137 FitatLeacNnrg 4w I299 1/5/99fi 133 Second Leachinkg 4w 3/31/99 4/27/99 139 TNird Leaching 4w 70/79 8/3/99 140 DRINKING ~WATER SCHEME SlId 101/996 4/16/99 141 Preliminary Design 8d 10/9/9 10/18/9 142 Final Design 24w 1/13/97 6a27/97 143 implementatimn 90w 7189 4/116im 144 SEWAGE WORKS 20w 12115i97 5/1i98 146 DRA INAGE PUMWPING STATIONS BlOd 6/5/8 1219 41 Malay lOw 10/22(9 12f1i196 147 Nodh hussahiya low 10.23(96 Z1231/96 0 ine:Acv Rashfltcs arenotfunded by thPefe*ct EGYPT EAST DELTA NEWLANDS AGRICULTURAL SERVICES PROJECT Implementation Schedule -Soudh Port Said 1996 1 937 1993 I 199" 2000 2001 2002 2003 ID Task Name .Duration Start Finish a2103141010210310401QI 2203041 0000 000 2000 00000 143 South Hussatna'y low 10122197 12/30/7 149 South Porf Said low 6/5196 UV13A6 160 South Poad Said PhaI low 10t23.'6 12130/6 1s5l Urn El Reesh 30wv 6/3WS 1219"9 152 ELECIRICAL WORKS 854 &'2i9 9/17r96 mw 153 Nvetworks 5 2 154 Transformers 4w MM196 9179 151i AGRICULTUIRAL SUPPORT SER l640d 10122197 9116103 156 Extension liftEd 10122197 7122/9 157 Equorwent (37) Mot* MGM21 21800 158 ~~~~Office EquIpmert 12Dw 10122197 2190M 159 Field Equpnien* (8) 120* 111II9197 371900 162 AdaptVehieReseac Ild 1112J97 31913 mm 163 TeahnnglAs/tac 300* 111597 7822103 164 Research 300w 11/19)19 0/19/03 165 Commnunity 13evelopment 1540d 122 97 916103 166 ~~~~TA TralinIg 300w M022/97 7M2M9 167 Promnotion ofWater Uses 300w MIMI/9 9/16/0 Igo Ofke E"OnNM ~~~~30w 1114/9 8111198 00 '0'. ine Ate tin Iw e.a not bmded by thes Project . . ... ..... -I .. il il .......1 - A. . ....... . . . .. - _._._._...._._.... | g ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~... . . . . . . . . . .. . .. . ......... , . . ......... I I-.. ..-. . ...... - ........... .. a -. - I p i - . . . : . , ' i . .... . . . . . .. .. . l~~~~111 i :a Ii ITI L *l *I - rIL 6 No 608 (aiii b,_ - 54 - ANNEX 1 (f) Page 1 of 3 EGYPT EAST DELTA NEWLANDS AGRICULTURAL SERVICES PROJECT Terms of Reference for Project Management Unit Terms of Reference for Project Director The project director would be appointed for six years after an initial probationary period and would reside in the project area. he would have overall responsibility for all aspects of project implementation, including procurement, project expenditures, preparation of quarterly and annual work plans, coordination with other agencies in the project area, intemational coordination, monitoring and evaluation, and management and recruitment of project staff. He would chair the regional coordination committee and report to the chairman of the national coordination committee. He would be an engineer with substantial administrative and project experience, and previous experience with intemationally financed projects. He would have a thorough understanding of government procedures and experience in inter-ministerial committees. He would have experience with the practical aspects of rural infrastructure and land development schemes in Egypt. He would have knowledge of English language. Terms of Reference for Project Procurement Manager The procurement manager would be appointed for four years after an initial probationary period and would reside in the project area. He would be responsible for all procurement under the project, including civil works and goods, and training and technical assistance (with the advice of the relevant sectoral experts), procurement planning and monitoring, for which he would set up a planning/ monitoring system. He would be an engineer with knowledge, in addition, of the commercial and legal aspects of procurement. He would have knowledge and experience with IFAD/World Bank guidelines and practices regarding both international and local procurement. He would work closely with other experts responsible for project implementation in preparation and evaluation of bidding documents. He would have knowledge of English language. Terms of Reference for Project Financial Director The financial director would be appointed for six years after an initial probationary period. He would be responsible for all financial aspects of the project, including expenditure planning, planning of the appropriate counterpart funding allocations, monitoring project expenditures and maintenance of the project accounts, preparation of withdrawal applications to IFAD/IDA and payments to suppliers including letters of credit, payment of staff and management of recurrent expenditures, management of the Special Account, maintenance of all financial records and statements of expenditure, and preparation for an organization of the annual audits. He would also monitor the cost-effectiveness of project activities, together with the monitoring and evaluation specialist. He would be a financial analyst with a background in accountancy, and substantial experience in the financial management of public sector infrastructure projects and government financial and budgetary procedures. He would have knowledge of IFAD/World Bank disbursement procedures and intemational banking practices for payment of suppliers. He would also have experience with establishing financial management and monitoring procedures for new projects. He would be computer - 55 - ANNEX 1 (f) Page 2 of 3 literate and able to train other staff in financial computer packages. He would have knowledge of English language. Terms of Reference for Monitoring and Evaluation Unit Manager The M&E manager would be appointed for six years following a probationary period. He would be responsible for monitoring all aspects of project progress, including physical works (in cooperation with the procurement manager and the responsible engineers), project expenditures (with the financial director), allocation of credit and repayment rates (with the relevant BDACs), progress with extension and research, and soil and water quality monitoring. He would design appropriate monitoring systems. He would also design and record appropriate project impact monitoring indicators. He would be responsible for socio-economic survey work as appropriate. He would design, together with colleagues responsible for the other components, the mid-term review and project completion report, which would evaluate project progress in relation to objectives. He would ensure that monitoring indicators serve as practical tools to project management and help modify activities as appropriate. He would assist with quarterly and annual progress reporting and planning. He would manage and train, as necessary, other staff in the unit. He would establish an M&E program with indicators which would be approved by the PMU, regional and national committees within six months of his appointment. He would be an agricultural economist with thorough knowledge of the irrigated crop and livestock systems of the Delta, and training and experience in monitoring and evaluation, and development and use of monitoring indicators as a management tool. He would have experience with conducting farm surveys. He would have experience also with rural infrastructure projects (irrigation development, water supply and social infrastructure) and their evaluation. He would have an understanding of environmental monitoring relevant to the area, in particular soil and water quality and health impact monitoring. He would have experience with broader project evaluation, including mid- tern evaluation/restructuring and completion evaluation. He would have knowledge of English language. Monitoring and Evaluation Specialist (Social Impacts) The M&E specialist would be appointed for six years and would reside in the project area. He would be responsible for M&E of the socio-economic aspects of the project, including the impact on production and income, progress with utilization of credit, health impacts, progress with settlement, establishment of social infrastructure and community development. He would be a socio-economist with experience in M&E, in survey work and computer packages, understanding of the farrn systems of the project area, and good understanding of the institutional and social organizations in and around the project area. He would also have a good practical understanding of the linkages between monitoring and project design/management. Monitoring and Evaluation Specialist (Physical Impacts) The specialist would monitor the physical impact of the project, including synthesis of progress with physical works (tertiary irrigation, drinking water, irrigation water, etc.) and monitoring of soil and water quality. The M&E specialist would be a civil engineer with good understanding of environmental engineering, of newlands irrigation development projects and their evaluation, and of relevant computer packages. He would also have experience with soil and water quality monitoring methods and indicators. - 56 - ANNEX 1 (f) Page 3 of 3 International Technical Assistance M&E The M&E expert would provide operational assistance with (a) establishment of M&E indicators, establishment of the M&E system and specifically its integration into management information, (b) review of their effectiveness and revision as necessary, (c) preparation of the mid-term review, and (d) preparation of the project completion report. He would be an agricultural economist with broad practical experience with designing and managing monitoring and evaluation systems for agricultural/irrigation development projects in developing countries, and a thorough knowledge of and ability to provide training in appropriate, user- friendly computer packages. He would understand survey methods. He would also have experience in designing/conducting mid-term reviews and project completion reports. Extension/Research Coordinator Although a member of the PMU, the extension/research coordinator would be seconded from one of the AES of the surrounding govemorate for a period of six years. He would be responsible for ensuring that the organization and phasing of the agricultural extension/research programs are consistent with the physical development and settlement for the area. He would facilitate provision of equipment/ logistical support to the AES/ARS provided under the project. He would coordinate design of the extension/research programs with the different govemorates AES, and assist with diagnostic surveys. Together with the AES and with the support of the CAESS, he would design training programs for the extension agents and SMS. He would be an experienced agriculturist with solid experience in the design and implementation of extension programs, and familiarity with the farm (including livestock) systems of the project area. He would be well-connected with the local extension/research establishment, and have a broader understanding also of adaptive research in Egypt, and in particular the most effective methods of technology transfer to farmers' fields. He would have experience of extension programs adapted to the needs of women. He would have solid understanding of and experience with the use of the different media in information transfer (mass media, brouchers, field days, farmers' groups/lead farmers, farmers' training, demonstration pilots, etc.). He would have experience of the most appropriate training for extension/applied research staff. Community Development Specialist The community development specialist would be appointed for six years after a probationary period. He would be responsible for assisting settlers with (a) formation of cooperatives, and assistance to cooperative managers with credit applications; (b) formation of water users associations and establishment of linkages with local Ministry of Public Works and Water Resources staff, and (c) obtaining assistance from the Govemorate administrations with provision of adequate social services to the new villages. He would be a senior experienced extensionist with good background in formation of cooperatives and community groups, knowledge of water users associations. He would have good understanding of local government procedures, including regulations and legal aspects, and previous experience in/around the project area. He would have good communication skills and training in participatory techniques. 57 ANNEX 1 (g) i~~ ; WARAB REPUBLIC OF EGYPT East Delta Agricultural Service Project I The Proiect Disbursement Table ___ l_________ l (In million USS) I i l ELI l II _ Fiscal YeaK Quarte I I FAD . |.Q IDA ____1 1998 1 1 i _ I I Third _ j 0.3 0.2 l 0.5 _ Fourth _ 0.8 0.5 1.2 _ Total I - | 1.1 0.6 1.7 _ _ _ _ _ I __ t_ _ I _ __ _ 1999 First I 0.8 0.5 I_I_'_ j Second r 0.8 0.5 1.3 Third 1.3 0.8 2 ForthI _| 1.6 0.9 2.5 Total I_______ 4.4 2.7 7.1 _ _ _ _ __ _ _ I._ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ I _ _ _ _ _ _ _ _ 2000 First | I 1.6 0.9 2.5 I Second _ 1.6 0.9 2.5 Third 1.7 1.0 2.7 I Forth _ 1.8 1.1 2.8 T Total s ! 1 6.6 3.9 I10.5 2001 | First | | 1.8 I 1.1 [ 2.8 _ l Second | 1.6 i 1.0 l . 2.6 _ 1 Third f___ L 1.5 0.9 i 2.4 _______ Forth I l 1.4 0.8 2.2 j Total 6.2 3.8 10 __ _____ ____.I_ 2002 First I 1.3 0.8 2 I Secondj 1.1 0.7 1.8 _ Third 0.9 j 0.6 1 1.5 1 l Forth 1 0.8 0.5 ! 1.2 - _ Total I _ | 4.1 f 2.4 6.5 2003 First |___-_0.5 0.3 0.8 _ S Second I 1 0.5 0.3 0.8 I I Third _ 0.4 0.3 0.7 _ Forth I 0.4 0.3 0.7 Total I1.9 1.1i 3 _ _ _ I_ _ _ _ _ _ I .._ _ _ I _ _ _ , 2004 First 0.4 0.3 0.7 1 _ Second I i 0.4 j 0.2 0.6 Total I ___ _ 0.8 0.5 1 1.3 _ _ Gran Tota250 I . I 4_0.0 Grand Total' ! 25.0 1 15.0 40.0 1___ I - 58 - ANNEX 2 Page 1 of 5 ARAB REPUBLIC OF EGYPT EAST DELTA AGRICULTURAL SERVICES PROJECT Financial and Economic Analysis A. General 1. The objective of the project is to facilitate the settlement and increased agricultural production of farms on newly reclaimed land in the East Delta, thereby laying the basis for increased incomes and a sustainable rural economy in both farm and off-farm activities. To facilitate this objective, the project would offer agricultural support services; seasonal, medium-term and long-term credit; tertiary irrigation and drainage networks for 20,600 feddans; and drinking water for two of the six project schemes. 2. Credit would enable the settlers to apply adequate farm inputs in their crop mix and adopt modernized farm technology packages. As the project area is located in Egypt's main livestock production belt, with credit settlers could start livestock development activities and derive benefit from a mixed farming system. The project would also provide financing for small-scale business and trading activities, including milk collection centers, milk and fruit and vegetable processing activities, machinery hire operations, etc. The type and scope of credit would be demand driven. 3. Indicative crop and livestock budgets, farm models, and some small-scale agribusinesses prototype models were developed to show the financial and economic viability of this project. For the economic and financial analyses, the investment incurred so far on irrigation networks, land improvement programns, and construction of infrastructure were treated as sunk costs. It was, moreover, assumed that settlement in the project would take place both "with" and "without" project, in accordance with the government's anticipated program. However, in the situation of "without" project, agricultural services would remain very weak and the settlers would not have access to reliable credit sources. B. Financial Analysis 4. For the crop and livestock production activities, indicative crop and livestock budgets, and farm models have been developed to compare the situations of "with" and "without" project. These are described in a working paper available in the project files. 5. The size of the holdings is assumed to be five feddans. While the settlers would be able to borrow from PBDAC under its prevailing credit terms and conditions in the "with project situation", they would revert to private money lenders with stringent borrowing terms under the "without project situation". For financial analysis, the "without" project interest rate was assumed to be 16%. It was assumed that the settlers would raise livestock, and purchase one milking cow and a buffalo calf during the first year of their operation and another buffalo calf during the second year. It has been assumed that tertiary and leaching works would take a year, and that a further two-year delay would be realized if the smallholder does tertiary work in the 'without' project situation. 6. Crop budgets have been developed on a per feddan basis for six of the major crops grown in the project or adjacent areas. Incremental crop yields for the" with" and "without" project situation have been determined using production parameters achieved by farmers under similar situations in Egypt (Table 2). The yield build-up is assumed to reach stability after five or six years, depending on the crops. - 59 - ANNEX 2 Page 2 of 5 From year 4 onwards, it has been assumed that farmers would grow berseem and wheat in the Winter season, and rice and cotton during the Summer season. 7. Results are presented in Table 1. This Table reveals that net farm revenues would increase from about LE 4,500 annualy 'without' the project to LE 11,000 'with' the project. Once the crop yields stabilize, families with a holding of five feddans would receive incremental yields of 0.6 tons of wheat, 3.1 tons of paddy, 0.3 tons of cotton, 19 tons of berseem, 5.1 tons milk, and about 250 Kg of meat. The cash-flow tables show that the household's revenue increases only gradually during the initial three years. Table 1. Production Costs and Revenues (in LE per 5 feddan farm) Without the project With the project Prod. Rev. 7,388 18,569 Prod. Cost 2,868 7,4631 Net Benefit 4,520 11,106 Labor Requirement 384 652 Return to Family 12 18 Labor per/day 8. Models for one milk collection center, one milk processing plant, and a small-scale wheat and rice mill have been developed. Cash-flow analyses for these models show the following financial rate of return: Type of Actiity Financial Rate of Return Milk Collection Center 35% Small-Scale Milk Processing Unit 34% Small-Scale Wheat and Rice Mill 35% Based on these FRRs, the envisaged activities are financially viable, and the investors would have no problem repaying the loans. Details are provided in the working paper. 1/ Under the situation of Model 3, the cost includes the repayment of tertiary work cost to the Government. It is assumed that the loan would have a grace period of three years and would be paid back in 30 years including grace period. - 60 - ANNEX 2 Page 3 of 5 C. Economic Analysis 9. In the calculation of ERR, only benefits from crops and livestock were considered, and the revenues and operating costs for this analysis are based on the farm models' results. The benefit stream accrues from: (i) incremental crop production from 76,300 feddans farmed by about 15,200 families who would borrow from PBDAC to apply inputs, and raise livestock; (ii) a 10% increase in the crop and livestock production of 13,000 families who adopt appropriate extension technical advice; and (iii) incremental revenue obtained by 4,000 families benefitting from tertiary irrigation who would start agricultural production two years sooner "with" than "without" the project. 10. The total incremental cost stream consists of (i) the incremental crop and livestock production cost of 15,200 families who receive project credit for their farning and livestock activities; (ii) the tertiary development cost; (iii) the project investment and recurrent costs; (iv) the estimated investment and recurrent cost for drinking water; and (v) and maintenance cost for the irrigation network. 11. For traded inputs and outputs, World Bank price projections were used to estimate farmgate economic prices, and for nontradable inputs and outputs, financial prices are based on prevailing market prices in Egypt in 1996. A Standard Conversion Factor (SCF) of 0.88 was applied toward the project's non-tradable costs and benefits. AH economic values were converted to local currency at the official exchange rate of LE 3.39 to one US dollar. The shadow wage rate was assumed to be the same as the financial wage rate for hired labor and no wage has been considered in the economic cost calculation for use of incremental family labor. The cows and buffaloes used in these farm models are assumed to have milking lives of seven years and to be culled after 10 years. Also, once the livestock producers have purchased a cow and two buffalo calves, they would retain their stock size from their offsprings throughout the project life. 12. Based on these assumptions, the economic rate of return (ERR) was calculated to be 33%. The resulted high rate of return is not surprising in view of substantial sunk investment costs associated with the El-Salam canal, and sizeable under-utilized family labor in the "without project" situation. 13. The project in its maturity would produce an incremental production of 77,000 tons of milk, 1,600 tons of cow meat, 1,900 tons of veal meat, 9,000 tons of wheat, 47,000 tons of rice, 4,500 tons of cotton, and 290,800 tons of berseem. These 'staple' outputs easily sell in the market; wheat, rice and meat would substitute for imports, while cotton would be exported. Also, dairy products have a good market in the city of Port Said which is close to the project area. In addition, the project would create about 13,000 jobs per annum, and women are expected to take more than 50% of the newly created 2 jobs. 14. Sensitivitv Analysis. The project would remain viable under a wide range of alternatives. If total project cost would increase by 20% and at the same time, if benefits decrease by 20%, the ERR would still be viable at 18%. If the project's benefits would be delayed by three years and simultaneously if its cost increase by 10%, the ERR would drop to 14%. Although this situation is not likely to emerge, the ERR is still higher than the opportunity cost of capital in Egypt which is at the present less than 12%. 2/ Most of the new jobs comes from livestock development activities which are generally carried out by women in Egypt. - 61 - ANNEX 2 Page 4 of 5 Table 2. Crop and Livestock Yields I. Crops Without Project With Project Incr. Prod ton/feddan Ton/feddan ton/feddan 1. Wheat 0.9 1.5 0.6 2. Rice (paddy) 1.5 2.5 1.0 3. Cotton 0.6 0.9 0.3 4. Berseem 14.0 20.0 4.0 2. Livestock Products3 Without Project With Project Incr. Prod. in ton in ton in ton 1. Milk 5.1 5.1 2. Cow Meat 0.126 0.126 3. CalfMeat 0.110 0.110 3/ The production is based on a family who raises livestock, starting with one crossbred cow and two buffalo calves. ARAB REPUBLIC OF EGYPT EAST DELTA NEWLANDS AGRICULTRAL SERVICE PROJECT Incremental Crop and lvestock Production oenelils and Colst Ysar 1 2 S 4 5 8 l S 9 10 11 12 1 2 L I if iL IFi L 20 21 22 23 21 Z5 Incremental Benefit Crops & Lvest(lnpuls) 25 9.1 261 481 71.8 953 116.7 131.1 138.9 142.4 1626 192.1 244.1 227.7 171.2 150.3 145.4 143.6 148.9 148.8 151.7 170.7 1924 236 2214 Crop & I.vesl (exten.) I/ 0.2 0.9 2.7 5 7.4 9.0 12 13.5 14 3 14.7 1.7 198 25.1 23.4 17.0 1t.5 is 14.t 15.3 15.3 15.i 17.6 19.8 24.3 22 8 Tertiary 21 3.2 9.9 13 11.1 6.8 6.5 3.3 0.9 Tolal Benelit 2.7 10 32 63 92.2 1t6.2 137.5 151.1 156.5 158 179.3 211.9 269.2 251.1 188.8 165.8 160.4 158.4 164.2 164.1 167.3 188.3 2122 260.3 2442 Cosls Inc. Production Cosl 2 9 8.9 23.5 35.9 45 54.3 59.? 62 82.7 62.7 02.7 62.7 62.7 62.7 62.7 62.7 62.? 02.7 62.7 62.7 62.7 62.7 62.7 62.7 62.7 Invest Cosl (livestock 7 14.5 32.5 21.8 3.5 TerclaryInv,Cost 12.5 25.7 65 -206 *1tt.9 -5.1 TerciaryOper. Cost 31 .2.0 5.5 8.1 3.7 1.4 0.5 0.2 % a Prolect Ilnv. & Recur. Costs 56 30 27 1.8 1.3 1.3 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 05 0.5 0.5 055 05 0o5 05 Provision of Drinking Waler 17.0 12.7 3 0 3 0 3.0 3.0 3.0 3.0 3.0 3.0 30 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 30 30 30 OlM Dralnefirrig Canal 1.2 1 2 1.2 1.2 1.2 i 2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 12 12 Total Cost 46.2 660 71.4 48.8 41.2 58.4 65.8 67.2 67.6 67.4 67.4 67.4 67.4 67.4 67.4 67.4 67.4 67.4 67.4 67.4 674 67.4 67.4 674 67.4 NetBenelil -43.5 -56.0 -39.4 14.4 51.0 57.8 71.7 e3.9 88.9 906 111.9 144.5 201.8 183.7 121.4 98.4 93.0 91.0 96.8 96.7 999 120.9 1446 1929 1768 IRR 33% It Total B. lag 3 year & Tolal C. Inc 10% 14% It total B. Ial 20% anid total C. Increase 20% 18% 1/ It Is assumed thal 50% of Ihe targeted seltlers would comply lo Ihe extension advke and Ihetr crop arid livestock producllon would Increas by 10%. 21 Incremental benefits end costs In the case of with projecl situation is associated with the lands Is prepared for planting two years earier compared to the without projecl tHuation 3/ Ill Is assumed thai Ihe settlers woutd complete the tertiary work during the tlird year od the projecl to comply with GOE regulation and the lterlary cost Is assumed lo be the same. In the case of both wih and without project sHuations. Io . - 63 - Annex 3 Page 1 of 3 ARAB REPUBLIC OF EGYPT EAST DELTA NEWLANDS AGRICULTURAL SERVICES PROJECT Environmental Assessment Background 1. The objectives of the proposed East Delta Agricultural Services Project are to provide services to facilitate the settlement and increased agricultural production of about 26,000 low-income families on 130,000 feddans (1 feddan = 0.42 ha) of newly developed lands in the East Delta, thereby laying the foundation for increased incomes and the development of a viable rural economy in the area. 2. The project area consists of six irrigation sub-schemes located east of the Nile Delta to the south of Lake Manzala, and west of the Suez Canal. The terrain is largely flat and low-lying. The soils are predominantly clays, presently saline, but capable of good yields after leaching. Lake Manzala is a wetland area of high biodiversity and an important fishery resource. A major drain, the Bahr El Bakr Drain, transporting industrial wastewater and sewage from east Cairo and intennediate towns together with irrigation drainage water, passes through the middle of the project area and discharges into Lake Manzala. Farmers have been irrigating with this polluted drainage water for the last decades. 3. Before the GOE requested the assistance of IFAD and IDA, the project area was already reclaimed land and most of the irrigation infrastructure was completed under a major national project, the El Salam Canal Program which began in the 1980's. Its objective is to irrigate about 600,000 feddans (250,000 ha) of new lands, of which about 220,000 feddans (90,000 ha) are in the proposed project area, west of the Suez Canal, and 400,000 feddans (168,000 ha) lie to the east of the Suez Canal in the Sinai. Social as well as irrigation infrastructure has been developed. Land reclamation under the El Salam Program led to some losses in fisheries production and biodiversity, and some communities, such as fishermen, lost their employment. Potential Environmental Impacts 4. The East Delta Agricultural Services Project will overall have a positive environmental and social impact. The provision of drinking water, credit and extension services will improve livelihoods of existing and future settlers and lead to better soil and water management. Environmental and social issues directly related to the proposed project were as follows: (i) Suspected Soil Pollution with heavy metals and toxic chemicals around the Bahr El Baqar Drain was suggested by an earlier study; (ii) Social services and infrastructure; drinking water supply and sanitation are at present inadequate; (iii) Quality and quantity of the irrigation water; land in the project area is at present irrigated with drainage water alone and water quality is poor: salinity is too high. Salinity of the Sewer drain is 1,200 ppm, which causes soil salinization in El Matariya and consequent crop yield reductions; (iv) Pesticide and fertilizer use; increased agriculture in the project area will lead to increased pesticide and fertilizer use. Bilharzia and hepatitis B have a high incidence rate in the northem part of the project area near Lake Manzala. - 64 - Annex 3 Page 2 of 3 Mitigation Measures 5. The EA study was completed in September 1996. (i) Suspected Soil Pollution. The EA analyzed this problem and concluded that there was no soil pollution in reclaimed parts of the project area and thus there were no public health risks by using these land for agriculture. Furthermore, water from Bahr El-Bakr drain will not be used for irrigation under the project. Water quality in the drain, and in Lake Manzala, will shortly improve considerably when sewage works under construction in the Cairo area are completed; (ii) Social services and infrastructure. Piped water supply is available for three sub-schemes. The project would finance a piped drinking water supply system in the two schemes of South and North Hussaniya; settlers in Matarya El-Salaam, the smallest scheme, will continue to be served by tanker; (iii) Quality and quantitv of irrigation water. Water in the El Salam Canal and project area is to consist of freshwater from the Nile (50%), and agricultural drainage water (50%), under the Ministry of Public Works and Water Resources (MPWWR) national programme. Under these mixing conditions water quality would be adequate. Water quality and mixing would be closely monitored by MPWWR to maintain salinity at 1,000 ppm or less; the quantity to be allocated under the national program is adequate; (iv) Pesticide and fertilizer use. Integrated Pest Management methods would be promoted during project implementation through the extension service and are integrated in project design (the area will not be a major cotton production area). A negative list of pesticides would be made available by the Bank which may not be purchased with credits provided through the World Bank. The above mentioned activities would be monitored by the PMU; and (v) Soil and water quality would be monitored systematically. Bilharzia would be controlled through the regular public health programme. A special health study of the project area would also be carried out. Broader Impacts of El-Salam Canal Project 6. The El Salam Canal Project was not financed by the Bank or IFAD; impacts of this project, therefore, do not form part of the EA of the East Delta Agricultural Services Project. 7. The East Delta Agricultural Services project will cause neither loss of land nor loss of employment. The El-Salam Canal Program did cause loss of employment to certain less privileged groups. These comprised primarily poor fishermen on Lake Manzala. These were provided with land on the Matariya el-Salam scheme, which is now being successfully cultivated. Other poor fishermen include those fishing in the Bahr El Bakr drain (which is sewage water). Their living conditions will improve as a result of the El Salam Canal Program, since they are now able to fish in the Canal, whose quality is much better than that of the of the Bahr El Bakr drain, posing fewer environmental and health hazards. In addition, some have applied for and been provided with land. The third category of fishermen constitutes fish laborers on fish farms reclaimed from Lake Manzala. Since this land was reclaimed over five years ago, these people have moved to other areas or found employment as farm laborers. They too are likely to benefit from the El Salam Canal Program, since employment per feddan on agricultural land - 65 - Annex 3 Page 3 of 3 is considerably higher than on fishfarm land. Past reclamation of Lake Manzala caused some loss of biodiversity. There are no plans for further reclemation of the lake, whose water quality should improve as a result of sewage treatment project nearing completion in the Cairo area. UNDP/GEF funding is also available for pilot wetland reclamation Environmental Monitoring 8. Soil quality monitoring will include: (i) soil salinity monitoring, (ii) monitoring of the pollution of drain sediment, and (iii) checks on soil pollution on suspected locations that might come up during project implementation. Samples will be analyzed by a reliable Egyptian laboratory with control analyses of selected samples in an internationally recognized laboratory. It is estimated that around 30 samples per year are needed during the duration of the project. 9. Monitoring of irrigation water, drainage water and groundwater would be complementary to the ongoing monitoring programs of the Research Centers of the National Soil and Water Research Center. Location and number of sampling sites and samples and parameters to be monitored will be determined during implementation. Tentatively it is estimated that around 30 samples per year are needed (5 locations for bi-monthly sampling. 10. Since health is more critical in the project area a health monitoring program will be needed. The details of the health monitoring program will be defined during the health study, which will be part of project implementation and supervised by the PMU. A preliminary cost estimate is based on the assumption that an Egyptian health expert will need 2 person months per year to follow up on data and statistics that are to be registered in the health centers and verification of these data in the field. Social impact monitoring (status of settlement, provision of drinking water) would be part of the regular project monitoring program. Training 11. Staff involved in the monitoring of environmental parameters would be experienced, so that no long term training programs are needed. Consideration of Alternatives 12. Since project location, design of infrastructure were already fixed at the time IFAD and the Bank became involved, an analysis of altematives for these components was not relevant. Alternatives in water saving techniques and in pest management are included in project design. Various altematives are being considered in the design and location of the drinking water schemes. Consultation with Affected People 13. A Rapid Rural Appraisal was undertaken during project preparation. It concluded that average incomes of the project beneficiaries are 75-80 percent of the poverty line in Egypt. During the EA a Socio-economic survey was conducted of people living in the project area and project beneficiaries. Interviews were conducted with 985 persons and in all project areas interviews have been held with key persons in order to identify their needs and solicit their views. The socio-economic survey pinpointed problems facing the settlers and which constitute obstacles in the way of securing a sustainable living for them; these have been incorporated into project design. These views of the beneficiaries and affected people have been included in project design. - 66 - ANNEX 4 Page 1 of 2 EGYPT EAST DELTA NEWLANDS AGRICULTURAL SERVICES PROJECT Status of Implementation of Infrastructure Works Area Project Area (Feddan) Status of Infrastructure Works Matariya 8,000 - An area of 5,000 is served by new pumping station under Pumping Stations II Project. - Primary, secondary and tertiary canal/drain systems are complete. - Drainage pumping stations complete. - No scheme for drinking water is planned so far, at present water is supplied by tankers. South Hussainiya 57,000 - Main infrastructure for the 35,000 feddans complete. - Tertiary Systems for graduates have been completed on 15,000 feddans. Irrigation water would be available in late 1997. - Tertiary system for the investor areas is expected to be complete by the end of 1998. - Drainage pumping stations are complete. - Five villages with housing and other social service buildings are complete. - Electrification of the villages is almost complete, connections and transformers are to be completed by the end of 1997. - Design and construction of drinking water system will be carried out under the project, at presenzt water is supplied by tankers. North Hussainiya 30,000 - Main infrastructure for about 20,000 feddans are complete except for roads, structures and some finishing works. Irrigation water to these areas would be available after all above works are complete in 1997/1998. - Infrastructure for the rest of the area (10,000 feddans) will be completed by December 1998. - Civil works for the drainage pumping stations is complete, the electrical and mechanical works will be complete by the end of 1997. - No villages have been constructed yet. Three villages are planned and would be constructed by 1999. - Electrification of the villages is almost complete, connections and transformers are to be completed by the end of 1997. - Design and construction of drinking water system will be carried out under the project, at present water is supplied by tankers. - 67 - ANNEX 4 Page 2 of 2 South Port Said 39,450 - Main hifrastructure is substantially complete. - Tertiary system for graduate is under construction. Irrigation water would be available in late 1997. - Tertiary system for small holders has not yet begun. It will be completed by 2000. - Drainage Pumping stations are complete. - Two villages with housing and other social service buildings are complete. - Electrification of the villages is almost complete, connections and transformers are to be completed by the end of 1996. - Drinking water will be supplied by two compact units (one is complete and the second will be complete by late 1997). South Port Said Plain 57,000 - Main infrastructure for 22,000 feddans will be completed by December 1997. - Tertiary system for the above area completed by December 1996. Irrigation water would be available by late 1997. - Drainage Pumping station will be complete by the end of 1997. - Five villages with housing and other social service buildings are complete. - Electrification of the villages is almost complete, connections and transformers completed by the end of 1997. - Drinking water is supplied by two compact units (complete and operational). Um El Reesh 11,500 - Main infrastructure for 11,000 feddans is complete. - Tertiary system for graduate have been substantially completed on about 8,000 feddans. Tertiary system for the remaining area will be completed by the end of 1997. Irrigation water would be available to the area starting early 1997. - Two villages with housing and social service buildings are complete. - Drainage Pumping station will be complete by the end of 1998. - Electrification of the villages is almost complete, connections and transformers are to be completed by the end of 1997. - Drinking water is supplied by two compact units (complete and operational) - 68 - ANNEX 5 ARAB REPUBLIC OF EGYPT EAST DELTA AGRICULTURAL SERVICES PROJECT Documents Available in Project Files 1. East Delta Newlands Agricultural Services Project: FAO/CP Formulation Report, December 1994 2. MALR, IWACO, Environmental Assessment Report (EAP) 1996 3. Working Paper on Economic and Financial Analysis 4. Working Paper on Review of Available Research and Proposals for Adaptive Research 5. Working Paper on Water Users' Associations 6. Lake Manzala - South Hussainya Agricultural Project Identification Report, FAO 1983 7. Agricultural Cooperative Assessment for Egypt, USAID, May 1990 8. Water Availability and Statement of Water Availability, MPWWR, October 8, 1996 9. Working Paper on Credit Component MAP SECTION 31° 32" 33' Mecliterranean Sea loAe = Port STRIP Manzald" Said Port Rafa~ Fouad ¸~""~ISRAEL c~~~~e(W 9~~~~~~~~~~~'fl Lake ~~~~~~~~~~~~~ Bardawil L H0d S ''' i - El Arish Valley 31" I~~~~~~~~~~~~~~~~~~~~~~~~-- El Sala 1CL,, :Cnalo 311~ ~ ~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~3 22" 3 0 cYPRUS SYRIA "-34 Mediterran Seo tSaao o 34" ARAB REPUBLIC OF EGYPT AroFMnp EAST DELTA NEW LANDS AGRICULTURAL SERVICES PROJECT -30" LIBYA SAUDIA PROJECT AREA LOCATION L RABI 10 20 30 40 Kilometers 26\ . I I I I I I I IGreat PROJECT AREA 26! ARAB REPUBLIC I I I I__I__OF EGP Z 0 10 20 30 Miles Bitter OTHER DEVELOPMENT AREAS Lk. < 1 Lake EL SALAM CANAL I No-er Rn Thism op -produced .by the Mop Desi-n Uni of The WortdBon. 0 O VILLAGES/TOWNS -22- - - - Ci The boundaries, coblrs, denominaions rnd ony other ibornsoti-n *I ue hssho'n son shis snap d not inply, -n the prt of The Word B-nk \s. __I D AN Cao G-Oup, ony judgnent on the egol stotus of any torntoy, or any NJ endorsement or ouceptonue of such boundaries o 32" CHADI 1 1 1 r- ~~~~~ ~~~~~ ~~~~ ~~~~~~~~~~~~~~~~2,2" 2,6' 30 , 34" IBRD 28379 ARAB REPUBLIC OF EGYPT fxin~~St~tj~~n La k e M a n~~z cV( a ~~ EAST DELTA NEW LANDS Ln Q>P~rt Fouad AGRICULTURAL SERVICES PROJECT PROJECT AREA E Iiya B~~~~~~~~~~~~~~~~~~~~~~~Hb~ ENEFICIARIES | ...........=.... i GRADUATES SMALL HOLDER tEI Manzala RI; - .+ . >ttX F- ** "6 N ) ( [:3 INVESTORS Matariya COOPERATIVES ' Z - i * 1 Scheme E . 0 ,/ ) . stgD V + _____*- IRRIGATION CANALS / Mixing Station ,+ ^ North HussqznSyof " .) . --- DRAIN CANALS No. 2 >t Scheme_.- ) i S . . n I > t / M PUMP STATIONS ___ O~~~~~~~~3 MIXING STATIONS El - Sedkf N- South Port Said s COMPACT WATER UNITS .^*** 'i * ';'- , #3H*dous tD r oin , ' *hq . ' _) \- _ . S ch em e - M A IN RO A D S . Hc ooDis 0 TOWNS / VILLAGES GOVERNATE BOUNDARIES § ¢qit RoDli , 9 1w ~~~~~ET )__._3 l p ap zdb h MpDogl UTi Qf *todBm 31~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~3- : So ll Hagc 7 7 H > 4 T ~~~~~~~~~~~~~~~~~~~~~m El Reesh ¢ / sRA | /w> *_ -- 2;it%|°t =¢man ~ e 3 t// ; ,| | / - i '3ABI m ' P SnEl Husenia' '.- fr -*S- |k 11/!;, _-D- = El ,ldontara i ) O El Qantara -26 1 ~~~~~~~~~~~~~~~~ARAB REPUBLIC \9 t South Port Said ~~- ---- _ ,: l l l j g, bake I Scheme iain Scheme ' 6 '^. /?