Document of The World Bank FOR OFFICIAL USE ONLY Report No. 8390 PROJEC.T COMPLETION REPORT PHILIPPINES NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT I (LOAN 1414-PH) FEBRUARY28, 1990 Agriculture Operations Division Country Department II Asia Regional Office Thi documen. has a resrited dtbutdon md may be used by omdy In the pedonname of dir offkial duies Its coten may et otewie be diclosed w Wordd Bank authoizwaton. CURRENCY EQUIVALENTS Appraisal Estimate - US$1.00 - P 7.44 Intervening Years Average - P10.88 Completion tear Average - P20.50 GLOSSARY OF ABBREVIATIONS DOB - Department of Health ERR - Economic Rate of Return GOP - Goverment of Philippines NIA - National Irrigation Administration NISIP I - National Irrigation Systems Improvement Project I O & X - Operation and Maintenance OED - Operation Evaluations Department PCR - Project Completion Report SAR - Staff Appraisal Report GOVERNMENT OF THE PHILIPPINES FISCAL YEAR January 1 - December 31 FMl OVFlOAL In ony THE WORLD BANK Washington. D.C. 20433 US.A. Office of oimttcrsGsuat Oprt. Evuatk February 21, 1990 ME(ORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Philippines National Irrigation Improvement (Loan 1414-PH) Attached, for information, is a copy of a report entitled 'Project Completion Report on Philippines National Irrigation Systems Improvement (Loan 1414-PH)" prepared by the Government of the Philippines, with an overview memorandum prepared by the Asia Regional Office. No audit of this project has been made by the Operations Evaluation Department at this time. Attachment This document has a rticted diWibution and ma be used by rcipients oly in oth pefme 1 of thei officid dutieL Its conts may notodtwise be dided witout Wod Bank authozatb. FOR OFFICIAL US ONLY PROJECT COMPLETION REPORT PHILIPPINES NATIONAL IRRIGATION SYSTEKS IMPROVEMENT PROJECT I (LOAN 1414-PH) TABLE OF CONTENTS Pa" No. Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . £ Basic Data Sheet . . . . . . . . . . . Li. . . . . . * . * . I Evaluation n .S.u.. .x.y. . . . . . . . . * * . * General . . . . . . . . . . . . . . . . . . . . . . . 1 GPralcObete ................... . .................. 1 Project Objectives . . . . . . . . . 1 Genral . . . . . a . . . . . . . . a * * . 3 IrrigationDevelopment ...... .......... 3 0 &4M support . . . . . . . . . . . . . . . . . . . . 4 SobjetosomiasslaProgram . . .60..... *. ..0... 4 Land Consolidation Pilot Project . . . . . . . ... . S On-Farm Facilities Study . . . . . ........ Dtsbue.ments and Costs . * . . . , . . . . . . . . . . a ImpaPcrfogmance . . . . . . . . . . . . . . . . . . . 7 Lessons Lrned . . . . . . . . . . . . . . . . . . . . 7 BOU1OWER'S COEPLETION REPORT 1. Summr g .* I. Itroductio . . . . . . . . . . . . . . . . . . . . . 11 Backsround Inforation ...... .. .. ... 11 Project Location and AcceAsibility . . . . . . . . . . 12 Seson and Climate . . . . . . . . . . . . . . . . . . 13 Water Supply . . . . . . . . . ... . a . . . . . .* . . 14 III. Project Feature .... . . . . & ........................ 15 Project Objectives . . . . . . . . . . . . . . . . . . 15 Project Component . . . . . . . . . . . . . . . . . . 16 Completed Project Works . . . . . . . . . . . . . . . 17 The Irrigation Service Areas . . . .... . . . . . . 17 Irrigation Drainag, and FaciUti an . . . . . . . . . . 18 Strengthening of Regional 0 & H Capability . . . . . . 18 Land Consolidation Pilot Project . . . .. . . . . . . 19 On-Farm Facilities Study . . . . . . . . . . . . . . . 20 Sabistosomiasis Control Program . . . . . . . . . . . 23 This document ha a reIcd distributin and may be usd by ripients only In t perfonnae of ter offiia dutieL Its contents may not otherwise be disckod witout Worl Bank autorbtion. TableofContets (Coat.) TrainingandDevelopmentofFazaers . . ....... . 86 Agricultural Devlopmsnt ..a............... a. 97 Irrigated Area and Croppig Intenty . . . . . . . . 88 IrrigatedPaddyYield *...............a.............. 88 Fam Input Utillation and Farmzuanagennt Practices . 89 Utlizatio of Fazm Pror, Processing ad Storage Facilities . . . . . . . . * . . .. .. ... * . 90 AgriculturalSupportServices ... ............ 90 Agricultural Development Coordination .... . . . . 90 Iater-Agency Personnel Deployment . . . . . . . . . . 91 Lan Tenure Improvement . . . . . . . . . . . . . . 92 FarM f4uncing/Production Loans . . . . . . . . . . 92 Monitoring and Evaluation . . . . . . . . . . . . . . 93 Future Development Programs . . . . . . . . . . . . . 94 StrengtheningilContinuing Institutional Development . . 94 EstablishlmentAdoption of a System Level Development Coordination . . . . . . . . . . . . . . . . . . . 95 Sustain Development Monitoring and Evaluation . . . . 95 XI* Economic Evaluation . . . . . . . . . . . . . . . . . . Project Econ ca Background . . . . . . . . . . . . . 98 Crop. Yield . . . . . . . . . . . . . . . . . . . . . 102 gEonomic Analysis . . . . . . . . . . . . . . . . . . 103 Economi Cost . .*. . . .. . . . . . . . . . .. . .. 103 Economic Benefits .......... . 104 Econoi,l nternal Ratoofeeteun........... 105 Fe Income A ysis o o . . . . . . . 105 Project andO&MFacilties .. ............ . 106 Input-output Monitoring Progra. .. ........... . 106 Inter-aency Coordination . ............... . 106 Personal Complement . . . ............ 108 Prmonnal Training and Development . . . . . . . . . 108 XII. Irrigation Service Fee Collection . . . . . . . . . . . 110 Goncr . .&0000&. .. 110 Irrigation Brrice Fe (ISF) ............ . 110 Collection of Irrigation Service Fee During Project 1l Implematation . . . . . . . . . . . . . . . . .. Projected Irrigation Service Fee Collection and Budgetary Requiremnt for Operation and Maintenance (O & M) of the System . . . . . . . . . . . . . . Collection Strategies . . . . . . . . . . . . . . . XIII. Operation andKaintensnc ............. 113 Organiational Set-up and Functions . . . . . . . . * -116 Operation and"Mann nce Budget . . . . . . . .... 122 Operation and Maintenane Equipment and Vehicles . 122 Cooe pt on Water Msnagent ............ 122 XIV. Conclusion * 9 a 9 9 . . . . . . . . * - . - 125 Effects of the Project on the Region and Country ... 123 Lessons Learned from the Project . 124 Table of Contents (Cout.) Page No, IV. Project Designs . . . .- . . .. . . . . 27 Irrigation andDra zge ............... 27 RebabilitatioAlUpgrading Work. .:... . . . . . . . * 27 Vat.: Requirement . ....... . . ..... .. . 28 Cavals LateralsISub-Laterals, Extension Area . . . . 30 Canal Stuctu?es . . . . . . . . . . . . . . . . . .*. 31 Operation ad Maintenance Road . . . . . . . . . * . 32 DranFageel.cihties ................. . 33 FamLevl FQ^41Atie 0 a 0 , 0 0 0 e * * * * 0 * 33 V. Project Managmant . . . . . . . . . . . . . . . . * 36 The National Irrigation Aministration . . . . . . . . 36 The Office of the Assistant Administrator for Systems Ooeratiom and Ewuimment manaement ............. 39 ProJectOrganixation ...... .... ...* 41 Th*ProjectCoordinatin zAga4c±e .9.999.... 44 VI. ProjectImplmntation 9.99...999999999a 50 ContractWorks .9.. 9..9... 99 . . . . . . . 50 ajorm Contract . . . . . . . . . . . . .0 . . . 1 Smal acag Contracts . . . . . . . . . . . . . . . 61 £ ^or>er" ~~~~~~~~~~~~~~~~~~~61. irceo . . . . . . . . . . . . .* . 63 _"SuervisioaasO ................... 65 V t. lmpUmnttion Schadu . . . . . . . . . . . . . . . . 67 Original Project Implaientatiou Schedule . . . . . . . 67 Actual Project Implementation Schedule . . . . . . . . 67 Caus of the Delays on Project Implaeuntation . . . . 68 VIII. Project Coat * . * . . . *.* **. . * . . . * . . . . . 70 Coat estimates * 9 9 * * * * . * * * * * 9 * * * * 70 Actual Project Cost and Expendltures . . . . . . . . 71 Dev@lop..t Coat . . . . . . . . . . . . . . . . . . . 71 Causei the Dectere of Project Cost . . . . . . . . 72 IX. F 77 Fund for the Fore Exchange Cmpoet 7? Withdrawal o£ Loau Procoe . . . .. .. . . . . . 78 Funding for the Local Component Cost . . . . . . . . . 79 X. Agri-Inat±tutional Deveopment . . . . . . . . . . . . . 81 Introduction . . . . . . . * * . . . . . . . . . . R1 ASci-na tStut10na1 Coim*t . . . . . . . . 81 Organization for Agri-Institutonal Development . . . 82 Inatitutiono1 Dewelop nt . . . . . . . . . . . a 34 Orgization of Farmers into FIGIIA . . . . . .. 84 Regitratio of IA 0 * * * * * . . * . 8a Turmover of O & x to the . . . . . . . . .9. 85 - i - PROJECT COMPLETION REPORT PHILIPPINES NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT I (LAN 1414-Pm) This is the Project Completion Report of the National Irrigation Systems Improvement Project I, for which Loan 1414-PH of US$50.0 million was approved on May 3, 1977. The loan was closed on December 31, 1985 after three one-year extensions; the final disbursement took place on July 2, 1986, and the unused balance of US$11.8 million was cancelled on July 3, 1986. The Basic Data Sheet, Evaluation Summary and Overview were prepared by the Bank. They are based on a review of the Appraisal Report; the President's Report; the Loan Agreement; and the Borrower's PCR of October 27, 1988, prepared by the National Irrigation Administration (NIA) in the Philippines. In addition, Bank supervision mission reports, correspondence with the Borrower and internal memoranda on project-related matters have been consulted. This PCR was read by the Operations Evaluation Department (OED). The draft PCR was sent to the Borrower on October 10, 1989, for comments by November 28, 1989, but none were received. - Ii - UNIUPPIUNs NATIONAL IRIXCATION SYSSEIS INMOVWIT PW I Pmeet~atIlv SSmIl1Hifn 107 7 T&O ?fl- {nlqo n 39 .St Date atfeenvem am flttneg2A~cnne 211121 1 W14 36 1. _ .1_ CI%ti~mho,, - f)enm.flRSaftfwm L ts1i~2mWmn -g t 21 ' ~Q9 47 =_ 1 ~~~Dain N. of fMaay pai~a P~is F o = ya 0617A 5 r0 Fm7e 42 . _4 900 4 Sw ufam A mto a= i fiN -mAMNn T1 (lwtmhdse l 06/70 2 20 1n . 1 '4. Ecem i t 7 _En. A Inr1~VttUWIt0o I S X { 1 _40 ¶eCt - ~ Sl SmetemUSSnm llinr4s S04 3t 1 W5, A. N Mrs Sumft~t il I L 5 EIIS _ 2 Dum At d V ST Mt M M _ _, .MM D _~~~~ _ :2 t 2mi of,zPimn44l_3 = -MM F.teul 0- 7S 'm,mwaffnr 31 I = 5 uagw~afbwow~ 1t ny ts1 _ 16c 31 E 0 IflfminmIIv SW,,..US$100A Siu i 'IhIas IOIS3w 1 wi 7 E,at A 7m 2 1 SuonwAfnlg 17 m^ t Rna2 F 02M2 mm um.ialmodbuImme.atUSS Ul.7K6932.76 wanwJeiefIec,wIu13 WTmrnsrnff-wftbaaimms,jcvt- 5.; nL adSuPowiSd 1252. , Aap~mimImBs.Eo-enguw. H.om, j~1- 1 . ' ~~~~~-'iii - PROJECT COMPLITION REPORT PHILIPPINES NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT I (LOAN 1414-PH) EVALUATION SUMMARY Obiectives 1. The National Irrigation Systems Improvement Project I was deslgeed to improve the socio-economic conditions of about 43,000 families living on some 49,400 ha of land (including 27,600 ha of irrigated land and 21,800 ha of rainfed area) in Regions 1, 2 and 8 of the Philippines. The project comprised rehabilitation, upgrading, and expansion of existing irrigation infrastructure; construction of new irrigation infrastructure; strengthen- ing of NIA's 0&K capabilities; and reducing the risk of schistosomiasis for about 475.000 inhabitants of Leyte, one of the worst endemic areas in the Philippines. The project also examined the feasibility of land consolida- tion in an area of high land fragmentation, on a pilot basis, and included a study of on farm facilities in an area characterized by landholdings under 2 ha and different cropping intensities. I1n_ ent4aion 2. Loan 1414-PH for US$50 million was signed on May 13, 1977 and became effective on August 9, 1977. It financed the entire foreign exchange component (47%) of the total project cost of US$107.2 million. At appraisal, it was expected that disbursements would be completed by December 31, 1982, one year after scheduled project completion. Hovevr, implementation actually took about 4-1/2 years longer, because of: fre- quent severe weather conditions, including several typhoons, floods and earthquakes; delays in finalizing engineering designs, in some cases because of design changes; slow contracting procedures and poor performance by major contractors; occasional shortages of construction materials and supplies - ceament, fuel, etc.; the need to provide uninterrupted water supplies to existing paddy lands during construction in many areas; reluc- tance of some farmers to cooperate in respect of on-farm facilities and drainages, especially in schistosomiasis endemic areas; management diffi- culties arising from the wide geographic dispersion of individual systems and difficult access to some work sites; inadequate and delayed counterpart funding; and peace and order problems. 3. The majority of major contractors did not fully complete their contracts. While peace and order problems, unexpectedly severe weather conditions, design changes and unusually high price escalation were som of - iv - the causes, the main reason was the vulnerability of these contractors to -the difficult financial situation In the Philippines and the lack of readily available credit during the project period. On the other hand, the smaller contractors proved less vulnerable and, together with NIA's force account teams, managed to complete portions of work left over from the larger contracts, as well as an array of smaller project works. 4. The Loan was formally extended by three years to December 31, 1985, but construction continued through June 30, 1986. With the exception of the aforementioned delay in project completion, and a reduction of about 5,000 ha in the anticipated service area, implementation was satisfactory and project objectives were largely realized. Disbursements and Costs 5. As a result of the slow start-up of implementation, disbursements did not comence until the so^ond project year (IBRD FY1979), ranging from about 38% to 71% of annual appraisal projections, due mainly to the diffi- cult financial situation in the country. The Loan Closing Date was extended by three years, as mentioned earlier, to December 31, 1985, al- though disbursements continued into CY 1986 against expenditures committed prior to the Closing Date. US$38.2 million, of the original Loan amount of US$50 million, was utilized. The balance of US$11.8 million was cancelled or, July 3, 1986. 6. The final project cost in US Dollar terms amounted to US$76 million, about 71% of the appraisal estimate of US$107.2 million, due both to the devaluation of Philippine currency and reduction of some project works (paras. 6, 7, 9 and 12 of the Overview). In local currency terms, however, the actual project cost amownted to 110% of the corresponding appraisal figure (Pesos 888.5 million v. Pesos 804 million). Results 7. At completion, the project had rehabilitated and upgraded 21 existing irrigation systems, expanding some of them, and constructed 3 new systems to serve about 44,400 ha (i.e., about 90% of appraisal targets). Buildings, service facilities, equipment and vehicles and spare parts to strengthen NIA's O&K capability were provided. The prevalence of schistosomiasis in the endemic areas covered by the project was substan- tially reduced from 18* at appraisal in 1977, to 11.8% in 1984 and to less than 5% in 1988. In addition, and more important, is the fact that the individual worm burden (intensity of the disease) has dramatically decreased, thus making it sale to say that schistosomiasis has ceased to be a major public health problem in Leyte. Completion of the first stage of the Land Consolidation Pilot Project demonstrated clear farmer/owner resis- tance to any land consolidation actions. in consequence, the subsequent steps -- determination of most appropriate level, methodology and evalua- tion of effects of land consolidation, 'tc. -- under this component wore not carried out. A detailed study of on-farm facilities helped to determine the most suitable level of facilities, but actual adoption of the recommendations has been difficult due to deeply rooted farming habits and attitudes. Sustainability 8. Appraisal estimated the project ERR to be 20%, based on an average irrigated cropping intensity of 173% and achievement of full agricultural development five years after project completion, in 1987. The Borrower's PCR re-estimates an ERR of 15%. It generally follows appraisal method- ology, using crop yields based on actual observations during implementa- tion, which do not differ signficantly from appraisal assumptions. However, the PCR adopts an irrigated cropping intensity of 185%, which is even higher than appraisal and probably unrealistic, considering that the prevailing figure in the Philippines ranges from 130% to 135%. In addi- tion, the PCR assumes full agricultural development in 1987, as assumed at appraisal, although the project was completed only in mid-1986. If allow- ance is made for these factors, the ERR would be less than 15%, but no lower than 10%. In view of this positive measurable return and the numerous social and other indirect benefits which, though difficult to quantify, inevitably result from projects of this type (improved/increased access, transport, storage, milling, marketing, availability of farm machinery and related service facilities, presence of agrochemical suppli- ers, employment opportunities, and reduced levels of out-migration which are now very visible in the project area), it is accurate to say that the project has been a moderate success. Lessons Learned 9. Project design and flexibility were generally appropriate to the circumstances. However, with the benefit of hindsight, it is evident that the appraisal schedule of 4-1/2 years for project completion was far too optimistic. 10. Contractor performance on the project underscores the importance of maintaining a reasonable force account capability within executing agencies such as NIA, as well as the importance of including measures in projects of this nature to encourage and strengthen the capabilities of small contractors. - PROECT QMWL=JN REPRT PHILIPPINES NATIONAL IRRIGATION SYSTEMS IMPROVENENT PROJECT I (LOAN 1414-PH) gmat ~ ~ am 1. This Overview is based on the Project Completion Report (PCR) of the National Irrigation Systems Improvement Project I (NISIP I) prepared by the National Irrigation Administration (.A), the implementing agency of the Govornment of the Philippines (GOP). It also draws on the Loan Agree- ment, the Bank's Appraisal Report, President's Report, supervision mission reports, correspondence with the Borrower and internal meoranda in Bank files, as well as the opinions of Government officials closely associated with the project. Proiset Obiectiven 2. General. NISIP I was designed to: (i) increase production on about 49,400 ha of irrigable land directly benefitting about 37,000 farmer families and 6,100 landless labor families (comprising some 240,000 people) through rehabilitation, upgrading and extension of existing infrastructure, and construction of new Irrigation drainage and road infrastructure; (ii) reduce the risk of schistosomiasis to about 475,000 people in Leyte, one of the worst affected areas in the Philippines; (iii) strengthen NIA's opera- tion and maintenance (O&M) capabilLty; (iv) examine the feasibility of land consolidation in an area of high land fragmentation, on a pilot basis; and (v) initiate a study of on-farm facilities in an area characterized by landholdings of under 2 ha and different cropping intensities. The project would accelerate socioeconomic development through increased farmer incomes, generatin additional farm and agriculture-related employment opportunities and improved farm-to-market access in the project area, and would help met Government's objective of increased food production and more balanced regional development. (a) J- lt l * ev1qfle. This component provided for rehabilitation and upgrading of 22 existing irrigation systems situated in Ilocos (Region 1), Cagayan (Region 2) and Leyte (Region 8), serving 27,600 ha, and construction of irrigation, drainage and related road Infrastructure to expand the existing area by 18,300 ha and bring a further 3,500 ha under irrigation in three new systems. (b) ihI.anaMa±LZ a This program aimed to reduce the prevalence of schistosomiasis in Leyte, one of the worst schistosomiasis-endemic areas in the Philippines, with an average prevalence rate of 18% (and running to as high as 45% in one municipality). The climate and coastal plain topography of Leyte are particularly suitable to the snail vector of the disease, and the low levels of hygiene and constant exposure of the rural population to water combine to produce the optimum situation for high infection levels. The project improved drainage, thereby reducing the snail population through mollussiciding, and lessened avoidable contact with water by provision of roads and foot bridges. It also improved public hygiene through environmental sanitation and health education, and reduced the parasite reservoir through diagnostic screening and chemotherapy. (c) Other Components. Other components included strengthening NIA's O&M capability in the project area through the provision of buildings for offices, stores, quarters, etc., and O0M equipment; examining, on a pilot basis, the feasibility of land consolidation in the Ilocos area where landholdings are small and highly frag- mented (0.8 ha average) due to population pressure, limited employment opportunities and local inheritance practices; and a study to determine the most suitable level of on-farm facilities to effectively serve areas characterized by small landholdings and different cropping intensities. IoleSentation 3. General. The total estimated cost of the project was US$107.2 million. Bank Loan No. 1414-PH for US$50 million was approved by the Executive Directors on May 3, 1977, and becme effective on August 9, 1977. rt would finance the entire foreign exchange component (47% of total project cost), with the Government financing the balance of project costs. It was anticipated at appraisal that the project would be completed by December 31, 1981 and that the Loan would be fully disbursed by December 31, 1982. However, implementation actually took about 4-1/2 years longer and was completed only in June 1986 (PCR Section 7.02), due mainly to: frequent and severe weather conditions, including several typhoons, floods and earthquakes; delays in finalizing engineering designs, in some cases caused by design changes; slow contracting procedures and generally poor performance by major contractors; inadequate and delayed counterpart fund- ing due to the difficult financial situation in the Philippines; occasional shortages of construction materials and supplies - cement, fuel, etc.; the need to provide uninterrupted water supplies to much of the project area which consisted of existing paddy lands already under regular planting; reluctance of some farmers to cooperate in respect of on-farm facilities and drainages, especially drainage works in schistosomiasis-endemic areas and areas of small landholdings; peace and order problems; and management -3- difficulties arising from the wide geographic dispersion of individual systems and difficult access to some work sites (PCR Section 7.03). 4. All work relating to the irrigation portion of the project, including the civil works for the schistosomiasis component, were carried out by NIA; related health aspects of the component were carried out by the Department of Health (DOH). 5. Of seven major contracts awarded, six were terminated after several extensions and the remaining works were completed through a mixture of minor local contracts, package contracts and NIA force account. Peace and order problems, unexpectedly severe weather conditions, design changes and unusually high costs in some areas (resulting mainly from situations in the locality) were some of the causes for poor contractor performance, but the main reason was the vulnerability of these larger contractors to the difficult financial situation in the country and the lack of readily available credit during the project period. On the other hand, the smaller contractors proved less vulnerable and, together with NIA's force account teams, managed to complete the portions of work left over by the larger contracts, as well as an array of smaller project works (PCR Section 6.01). 6. The Loan Closing Date was formally extended by three years to December 31, 1985, but construction was not completed until June 1986. The final project area was about 10% less than anticipated at appraisal, mainly due to a reduction of about 5,000 ha in the planned service area (para. 7 below) and exclusion of some schistosomiasis drainage works in areas where they would not directly serve the drainage of agricultural land (para. 9 below). This aspect is not mentioned in the PCR. The final disbursement was made on July 2, 1986 and the undisbursed balance of US$11.8 million was cancelled on July 3, 1986. Considering the difficultier encountered and the nature of the project, implementation performance was satisfactory. 7. Irriaggtio Development. The project rehabilitated and upgraded 21 existing irrigation systems (including expansion of some of them) and constructed three new systems to serve about 44,400 ha J/ representing about 90% of apprasal targets. The decrease is not a major deviation and is the consequence of the following factors, which affected different project sites to varying degrees. Work on the Abalog system extension was 1/ The Borrower's PCR reports the service area developed under the project as 44,409 ha and uses this figure in the ERR computations. However, lower figures ranging from 37,320 to 37,558 ha are shown on pp. III-4, III-12, and Table 10.03.1. These appear to be figures which have not been updated or are incomplete. A clarification has been requested but NIA has not yet replied. This Overview is based on the 44,409 ha figure. -4- curtailed by acute peace and order problems; a portion of Bihaban Norte system was deleted due to inadequate water and absentee cultivators; the Camungan system was dropped from the project at the request of the farmers; and varying area reductions were made in systems because of continuation under unirrigated tree crops, conversion of arable land to residential and commercial use, and unsuitable topography, (PCR Section 8.04). 8. 0&K SMort. Support for strengthening NIA's 061 capability in the project area included the construction and extension of necessary buildings for offices, stores, staff quarters, etc.; provision of service facilities such as water supply, power supply, etc.; and other facilities such as perimeter fences, drying floors, etc. All requirements of equip- ment, vehicles and spare parts were also procured under the project. 9. Schistosomiasis Program. The program consisted of civil works and the related health inputs described in para. 10 below. Due to the very difficult funding situation in the Philippines during implementation, it was decided to curtail those drainage works which were purely schistosomiasis oriented and located entirely in non-agricultural areas (swamps and other similar areas), as these works were expensive to con- struct and would deteriorate rapidly since Government clearly lacked the recurrent budget to maintain them (not mentioned in PCR). However, agricultural areas--which in Leyte were mostly located in the vicinity of such water logged areas--were provided with necessary drainages. Such areas were also provided with limited additional drainage works, which amounted to modest extensions, wherever they would be effective and could be easily maintained as a part of overall facilities. Under the civil works portion of the program, drainage in the endemic area was improved and avoidable water contact by the population was reduced through rehabili- tation and construction of about 170 km of main and secondary drains, about 140 km of service roads and embankments, and about 240 footbridges. Some 15,200 toilet slabs, 7,900 toilet bowls and 990 hand pumps were also provided. 10. The purely health-related portion of the program implemented by DOH included snail control, health education, diagnosis and treatment. Initially, the beneficiary population displayed general disinterest and lack of faith in the program. However, over time the education program was effective in creating public awareness of the nature, methods of prevention and control of the disease. As a result, community involvement grew and people actively cooperated in submission of stools for examination and use of sanitary facilities increased. 11. The impact of this component has been outstandingly positive. The prevalence of schistosomiasis in Leyte was substantially reduced from 18% at appraisal in 1977, to 11.8% in 1984 and to under 5% in 1988. More important, the individual worm burden (intensity of the disease) has drama- tically decreased, thus making it safe to say that schistosomiasis has now ceased to be a major public health problem in Leyte. Overall, figures indicate a drop in the prevalene, rate from 10.8% in 1981 to 4.3% in 1987 for foreign-assisted schistosomiasis programs, while the level under locally funded programs has remained at 8.5%. (Report on Schistosomiasis Control Program in Leyte, 1985 - Dr. B. Blas and others; and Tabulated Data Schistosomiasis Control Council, Philippines - 1988.) The PCR does not include this information. 12. Lan gonsolidation Pilot Project. NIA conducted the first stage of this work to determine responsiveness of farmers and land owners to the concept of land consolidation. However, resistance was quite strong and therefore subsequent work to determine appropriate level, methodology and evaluation of effects, etc., was not carried out. 13. On-farm Facilities Study. A detailed study of seven different models of on-farm facilities in areas characterized by average landholdings of less than 2 ha was carried out to determine the most suitable level of facilities (PCR Section 3.03.5). Although NIA endeavors to implement the recommended levels, this has been difficult in areas which are under culti- vation, because of deeply rooted farming habits and attitudes of the various communities. While an effective on-farm distribution system would have a clear advantage, farmers are reluctant to sacrifice land for canals since for years they have practiced plot-to-plot irrigation and drainage, depending on mutual accommodation and cooperation. In a few instances, the decision by some farmers to opt for a more independent system has been interpreted as evidence of distrust and has led to disharmony within the group. Disbursements and Costs 14. The project started very slowly during the first year because of difficulties in organizing implementation through the different regional offices, whose staff were not adequately familiar with foreign-financed project arrangements. Slow and cumbersome procurement procedures also delayed acquisition of construction equipment. The very difficult financial situation in the Philippines, which worsened from the early 1980s, also took its toll. Disbursements commenced during the second project year (IBRD FY1979), ranging from 38% to 71% of annual appraisal projections. The Loan Closing Date was extended by three years from December 31, 1982 to December 31, 1985. US$38.2 million of the original US$50 million Loan amount was utilized, and the balance of US$11.8 million was cancelled on July 3, 1986. -6- 15. The final project cost in US Dollar terms amounted to US$76 mil- lion (Pesos 888.5 million), about 71% of the appraisal estimate of US$107.2 million. (Pesos 804 million). The Philippine currency devalued to an average weighted rate of 11.7 Pesos to the dollar over the implementation period. Other contributing factors included the reduction in the service area and exclusion of some schistosomiasis drainage work. In Peso terms, however, the project cost was actually 110% of the appraisal cost (PCR Sections 8.02 and 8.04). Imnact 16. The major objectives of the project were met: improved irrigation, drainage, road and 06& facilities were provided to serve about 44,400 ha; the prevalence of schistosomiasis was drastically reduced; the feasibility of land consolidation was examined; and the study to determine appropriate levels of on-farm facilities was carried out. The most significant features of the project's impact were increased paddy production as a result of improved irrigation (Table, page 7 below), improved transportation through provision of project roads, increased farm and agriculture-related job opportunities, improved health as a consequence of the decrease in the prevalence and intensity of schistosomiasis, and increased beneficiary incomes. The process of project implementation also contributed to strengthening NIA's project management and implementation capability (PCR Section 14.01). 17. Appraisal estimated the project ERR at 20%. The Borrower's PCR re-estimated the ERR at 15%, broadly following appraisal methodology. However, the PRC used a somewhat overly-optimistic cropping intensity of 185%, against prevailing figures for the Philippines of 130% to 135%, and 173% forecast at appraisal. The time allowed by the PCR for full agricul- tural development is also unrealistic (although the project was completed in mid-1986, the achievement of full agricultural development has been assumed in 1987). If allowance is made for these factors, the ERR will be less than 15%, but not under 10%. The expected benefits will, of course, depend on the smnner in which the systems are operated and maintained. Although still less than adequate, 06M in the Phillppines is generally better than in most Asian countries, and Government is making further efforts to improve 0&K with support under the recently approved Irrigation Operations Support Project (Loan 2948-PH) (PCR Sections 11.02 and 11.03). _7- IABLE: KEY PRODUCTION ASPECTS OF THE PROJECT (1) (2) (3) (3)/(2) Actual/Anti- cipated at Preproject Appraisal Full Agric. Percent of Situation Estimates Development Appraisal Proiect Area (ha) Irrigation 27,600.0 49,400.0 44,409.0 90.0 Rainfed 21,800.0 - Total 49240009 Croueed Area (ha) Wet-season irrigated, rice 26,200.0 49,400.0 44,409.0 90.0 Wet-season rainfed rice 23,200.0 - - Dry-season irrigated, rice + 1,300 ha tobacco 14,400.0 35,950.0 38,057.0 110.0 Dry-season rainfed, corn 2,000.0 - zqtaL 65.800.0Q 85.350.0 82466.0 298.0 Cro2ning intensitv (%) 133.0 173.0 1L8 A/ 107.0 Yields (metric tonsha) b/ Paddy wet-season irrigated 2.2 3.9 4.0 102.0 Paddy wet-season rainfed 1.5 - - Paddy dry-season irrigated 2.2 3.9 3.7 95.0 Production (metric tons)_ Paddy 120,800.0 325,200.0 320,800.0 98.0 «J See para.17 of Overview. kw Weighted averages for entire project area. 18. The Bank dealt adequately with most key issues at appraisal, although in retrospect the time estimated for implementation was clearly too short, and the assumptions about cropping intensitie were probably too high. The combined effect was to overstate the project EER (which, how- ever, would still have been quite satisfactory even with less optimistic assumptions). The Borrower's PCR credlts the Bank with the active support and guidance it rendered through supervision missions in various aspects of implementation. Fortunately, the Bank's exclusive reliance on supervision by engineers (unassisted by agriculturalists or health specialists) after 1980 did not have any noticeable consequences. L2asons Learned 19. With the benefit of hindsight, it is evident that the anticipated implementation period was overly optimistic for a project of this type. because of the nature of works involved and their geographical dispersion, appraisal was quite correctly based on feasibility level investigations and sample analyses, leaving detailed construction-level investigations and preparation of final construction designs for implementation. However, the likelihood of delays on this account should have been anticipated. Also factors such as speed and efficiency of Government procedures, likelihood of frequent severe weather conditions, contractor problems, possible peace and order problems, funding difficulties, etc., were comon to several Bank projects in the Philippines and should have been reflected in implementation scheduling. 20. Contractor performance on the project underscores the importance of maintaining reasonable force account capability within executing agencies such as NIA, as well as the importance of including measures within projects of this nature to encourage and strengthen small contractor capabilities. PROJELa COMPLEIN RLO= PHILIPPINES NATIONAL IRRIGATION SYSTEMS IMROVEMENT PROJECT I (LOAN 1414-PH) BORROWER ' S COMPLETION REPORT I. SUIILARY One effective means to sustain the country's drive to attain self-sufficiency in staple food is to increase crop production by improving and expanding the existing irrigation systems to a higher level of standard adopted by the National Irrigation Administration (NIA). This precisely was the main obJective of the National Irrigation Systems Improvement Project - Package I (NISIP I) prior to its inception. The National Irrigation Systems Improvement ProJect, Package I (NISIP I) covers three (3) district sub-proJect areas, namely; 1) Ilocos Sub-proJect in Region I, 2) Cagayan Sub-project in Region II, and the 3) Leyte Sub-project in Region VIII. NISIP I as finally implemented covers twenty six (26) irrigation systems with a combined total irrigable area of about 44,409 Hectares scattered in six (6) provinces in Luzon and in the island province of Leyte in Eastern Visayas. The proJects' primary obJectives as enviTioned in the appraisal report are among others, to increase the annual paddy production and corresponding per capita income of the farmers within the proJect area, accelerate economic development through the generation of related agro- industrial activities, creation of employment opportunities and saving foreign exchange reserve on rice importation. The feasibility study on the proJect was carried out in 1975 by the National Irrigation Administration under the provisions of Loan No. 1080 PH (Tarlac Irrigation System Improvement Project) with technical assistance from the Sanyu Consultants, Inc. of Japan. The selection of irrigation- systems under NISIP I were made based on the degree of need for improvement, the social and economic feasibility for the improvement, the social and economic impact in the area and the institutional building aspects in terms of strengthening the operation and maintenance capabilities of the regions. The proJect as originally envisioned during appraisal would be implemented in four and a half years (4 1/2) including detailed engineering and pre-construction works. Implementation was scheduled to commence in July 1977 and would be completed in December 1981. Work under the projects includes: a) Rehabilitation and upgrading of 22 existing national systems in Ilocos, Cagayan and Leyte. b) Construction of new irrigation, drainage and road facilities on about 18,300 hectares of rainfed lands adJoining 18 existing NIA Systems. - 10 - c) Construction of three (3) new national systems in Leyte to serve 3,500 hectares. d) Land consolidation in Ilocos Region. e) Study of on-farm facilities. f) Strengthening operation and maintenance capabilities in Regions 1,2, and 8. g) Provision of assistance to Schistosomiasis Control in Leyte, and h) Procurement of vehicles and equipment. However, due to numerous constraints that undergone, the proJect was actually carried out in nine (9) years time including detailed engineering and pre-construction works. Actual implementation was started in July 1977 and completed only in June 1986. Implementation of the various project features under the management and supervision of NIA were carried out by contract and force account. Contract works accounted for about 35% of the total civil works or an aggregate amount of US $6.972 M representing about 9.2% of the overall project cost of US $76.0 M. NISIP I was estimated at proJect appraisal to cost a total of P804 (US $107.2) Million, of which P375 (US $50.0) Million representing about 47% would be funded by the International Bank for Reconstruction and Development (World Bank) and the remaining P429 (US $57.20) Million from local counterpart fund. Included in the overall cost estimates are provisions for physical contingencies and the expected price increases amounting to P97.28 (US $12.97) Million and P156.88 (US $20.92) Million respectively. Implementation of the project was financed by the Philippine Gover.ment with financial assistance from the World Bank or the International Bank for Reconstruction and Development (IBRD). The loan proceeds, however, were not fully utilized or withdrawn. At proJect completion in .986, total loan availment amounted to US $38.206 Million representing only about 76.4% of the total proceeds of the loan. - 11 - II. INTRODUCTION 2.01 BackaroUnd .In bation The National Irrigation Systeme Improvement Project, Package I (NISIP I) is the eighth water resources development endeavor embarked upon by the National Irrigation Administration (NIA) with the financial assistance of the World Bank (IBRD). The proJect is one of the major components of NIA's Ten-Year Irrigation Development Program which envisaged the rehabilitation/upgrading of existing national irrigation systems and construction of new irrigation, drainage and related facilities covering a total of about 1,348,000 hectares of arab'Le lands scattered throughout the country. In 1975, the National Irrigation Administration embarked on a program for the inventory of national systems and to select a total of about 150,000 hectares service area with the highest priority for improvement. The feasibility study for the program was prepared under the provisions of Loan No. 1080-PH (Tarlac Irrigaton Systems Improvement Project (TISIP) ) with the assistance of Sanyu Consultants Incorporated of Japan. The program was called the National Irrigation Systems Improvement Study (NISIS). The irrigation systems selected under NISIP I (Loan No. 1414-PH) were made on the basis of the degree of need for improvement, the social and economic feasibility for the improvement, the social and economic impact in the area, and the institutional building aspects in terms of strengthening the operation and maintenance capabilities of the regions under the project. The first package comprising the National Irrigation Systems Improvement ProJect - I, covers 22 existing and 3 new irrigation projects covering a total estimated command area of 49,400 hectares widely distributed in the Ilocos and Cagayan regions in Luzon and in the island of Leyte in Eastern Visayas; Regions 1, 2 and 8, respectively, of the national regional boundaries. They are distributed as follows: Region I - 17,600 ha. Begion 2 - 18,700 ha. Region 8 - 13,100 ha. - 12 - NISIP I (Loan No. 1414-PH) is partly financed by the World Bank (IBRD) in the amount of fifty million U.S. Dollar (US $50 M) or equivalent to 47% of the total estimated cost of the project. The Loan Agreement was signed between the World Bank and the Government of the Philippine6 (GOP) on May 13, 1977. The loan took effect on August 12, 1977 with closing date on December 31, 1985. The loan bears an interest rate of eight and two-tenths per cent (8.20%) per annum and a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) on the principal amount not withdrawn from time to time. Interest and other charges are payable semi-annually on Hay 1 and November 1 of each year beginning May 1,1982 through May 1, 1997. 2.02 Project Location and Accessabilitv The National Irrigation Systems Improvement Project I (NISIP I) with a total revised command area of 44,409 hectares covers three (3) distinct sub-proJect areas which fall into the jurisdiction of NIA's regional offices for Regions I, 2 and 8, namely, the Ilocos, Cagayan and Leyte sub-proJects, respectively. a) Ilocos SubproJect in Region I The Ilocos SubproJect includes twelve (12) existing irrigation systems lying along the western coast of Northern Luzon, between the Babuyan Channel in the North and Lingayen Gulf in the south. It covers the provinces of Abra, Ilocos Norte, Ilocos Sur and La Union. The proJect area is accessible by air and land routes. There are regular domestic flights from Manila to the Capital City of Laoag, Ilocos Norte. A national highway located along the northwestern coast of Northern Luzon passes through nine (9) irrigaton systems of the proJect. Paved provincial roads link the national highway with the remaining three (3) systems of the Ilocos subproject. All the provinces within the proJect area are linked to Manila and other provinces by land transportation through first class -roads. b) Cagayan SubproJect in Region 2 The Cagayan Subproject includes three (3) irrigation systems lying at the mouth of the Cagayan Valley along the northern coast of Luzon Island. - 13 - It covers the provinces of Cagayan and Kalinga- Apayao. The area is also accessible by air through regular domestic flights from Manila to the capital town of Tuguegarao in Cagayan. Paved provincial roads link the national highway with the Banurbur system. The road network of provincial and municipal roads is adequate in the Cagayan subproJect. c) Leyte Subproject in Region 8 The Leyte subproJect in Region 8 includes seven (7) existing irrigation systems and three (3) new irrigation project on the island of Leyte in Eastern Visayas. Nine (9) of the Leyte systems located near the eastern and southeastern coast of the island are served directly by a national highway or connected to it by paved provincial roads. Another national highway along the western coast of the island serves the tenth irrigation system. In the Ilocos and Leyte SubproJect areas, the irrigation systems are close to maJor centers providing banking, storage and processing facilities, as well as supplies of inputs to the agricultural areas. The Ilocos and Leyte systems are served by good road networks, while the Cagayan systems are more isolated. However, the Ministry of Public Works and Highways has already embarked on a long term plan to upgrade some of the existing limited network of largely unpaved provincial and municipal roads serving the proJect areas of Cagayan and Leyte. With the completion of NISIP 1, the road network density in the subproject areas has increased through the construction of additional access roads and roads for the irrigation facilities. 2.03 Season and Climate The climate in the proJect areas covered by NISIP I is tropical and monsoonal. Warm temperature throughout the year allows a twelve-month growing season with irrigation. The average annual rainfall in the three (3) subproJect areas ranges between about 2,000 mm and 3,000 mm, but there are marked differences in the rainfall distribution pattern. Each of the three subproJect lies in different climatic region. - 14 - In the Ilocos subproject area, the months from November to April are dry and wet during the rest of the year. In the Cagayan area, there i a short dry season of about three (3) months occurring from March and lasting up to May, while the Leyte subproject area has no well-defined dry season, and rainfall is heaviest during the months of November up to January. In most system of NISIP I, the rainfall, together with river flows in the wet season, is generally adeqtsate for single rice crop. During the dry season,however, rainfall is obviously not enough for rice cultivation, especially in the Iloco6 region. The Ilocos and Cagayan areas are experiencing in the average about two (2) typhoons per year, with the highest frequency between the months of July and November, while the Leyte subproJect systems are experiencing an average of 1.5 typhoons per year frequently occurring during November. Presented in Tables ( 2.03.1 - 2.03.5 ) are rainfall intensities recorded in the different subproJects during implementation. Table 2.03.6 shows the average temperature and relative humidity. 2.04 Water SuwDlv Each of the twenty-one (21) irrigaton systems obtains its water supply from a separate river source, using their own diversion and conveyance systems. Of the remaining four (4) systems, two received water from one river and the other two systems obtained their supply by the interception of three (3) different water resources. The quality of water in the Leyte subproject is good with total dissolved solids under 300 ppm. As for the other rivers in the Ilocos and Cagayan subproJect areas, the water quality is also good except for the Amburayan river in the Ilocos subproJect which shows solids due to mine tailings from two copper mines located upstream in two (2) tributaries of the river. Water requirements for the NISIP 1 project were based on two rice crop per year, except for about 1,300 hectares under an irrigated dry-season tobacco crop in Region 1. Presented in the following Tables are 2.04.1a and 2.04.lb water discharges of river sources in the different Ilocos subproJect areas under NISIP I. Tables 2.04.2, 2.04.3, 2.04.4 and 2.04.5 shows the monthly averag. water diversion for each of the proJect under NISIP I. While table 2.04.6 presents the average monthly discharges of water sources serving the projects in Leyte. - 15 - III. PROJECT FEATURE 3.01 Piroject Objectives The National Irrigation Systems Improvement Project Package 1. being funded by the Philippine Government and the World Bank would upgrade existing irrigation systems and extend irrigation service to currently rainfed rice land in NIA Region 1,2 & 8 located in the provinces of Ilocos, Abra, La Union; Cagayan and Layte, respectively. The project includes: a. Rehabilitation of 22 existing irrigation systems serving a total area of about 27,600 hectares b. Construction of new irrigation, drainage and road facilities on about 18,300 hectares of currently rainfed land adJoining 18 existing NIA irrigation systems; C. Construction of new irrigation, drainage, access facilities, diversion and conveyance works for the 3 new national irrigation systems to serve about 3,500 hectares of rainfed areas; d. Construction of subregional headquarters building, two new field offices and extension of office, storage and stutff quarters facilities for the eight (8) existing field offices; e. Procurement of vehicles and equipment; f. Provision of a Schistosomiasis Control Program covering most of the affected areas in Eastern Leyte. The proJect would also provide for a pilot land consolidation subproJect to determine the feasibility of introducing a degree of consolidation in an area of highly fragmented small farms. An additional project component would be a study aimed at determining the density of terminal on-farm facilities best suited to very small landholdings. The proJect would also make provision for strengthening the 0 & M capabilities of the three (3) NIA regional offices which include repair of equipment and vehicles, buildings and training of personnel. - 16 _ 3.02 Project ComRonent A total of twelve (12) NIA systems in the Ilocos SubproJect area serving about 14,900 hectares would be rehabilitated and upgraded by repairing existing canals and structures and by providing additional canals, control structures, drains and turnouts to manage water deliveries effectively. Similar upgrading and rehabilitation works would be carried out in the Cagayan subproJect area on the three (3) existing systems serving 8,900 ha. and in the Leyte subproject area on the seven (7) systems covering about 3,800 ha. Of the twenty five (25) systems included in NISIP 1, 3 systems covering 2,650 ha. are pump irrigaton systems and the remaining twenty two (22) are gravity, run- of the river systems. The improvement would include minor repairs of existing diversion structures and outlet works, the construction and/or enlargement of canals and drains, repairs and modification of existing structures and provision of new water-regulating and delivery structures and the construction of 0 & M access and farm roads. General features of the improved irrigation systems would include additional canal structures such as checks, turnouts and installation of gates on existing canal structures to more effectively control water deliveries and to provide water more efficiently to each field as needed. Turnouts would be provided for each 10 ha. unit from which farm ditches would convey water directly to most farms. Farm drains would convey excess water from each 10 ha. unit to the main proJect outlet drains in flat areas. Canals would be unlined except in selected portions of short length where the soil are erosive. Working stations for Water Management Technicians (WMT) would be provided for about each 500 ha. of irrigated land in the Cagayan Subproject and for each 300 ha. in the Ilocos and Leyte subproJects. The stations would provide space for temporary storage and drying of paddy. Gatekeeper's quarters would be constructed at the maJor checks and turnouts of main canals and diversion sites for proper, safe and effective operation. Gravel surfaced 0 & M roads would be constructed on the canal banks. Canals with a design flow greater than 5.0 cu.m./sec. would be provided with a roadway 5 m. on both banks, if the service area is on both sides of the canal and one bank where the canal serves the area on one side. Canals with capacities between 2.0 and 5.0 cu.m./sec would be provided with a 3.50 m. wide road on one bank. The roadway along waterways with capacities less than 2.0 cu.m./sec. and along some of the maJor farm ditches - 17 - would be a non-gravel 2.0 m. wide cycle or cart path. Access roads 5.0 m. wide would also be provided as links between the existing major roads of the area and the canal 0 & M roads. These roads would also serve as farm-to-market roads. Gravel surfacing on some of the major existing farm-to- market roads would be provided. The surfacing of the roads would be 20 cm. thick for 5.0 m. wide roadways and 15 cm. for 3.5 roadways. To allow continuous passage along the 0 & N roads, bridges and/or culverts across the existing drainage waterways would be built. 3.03 Camuleted Projecl Works MaJor work items that were completed include rehabilitation and construction of various irrigation facilities. Accomplishments in the three regions include construction of new canals, desilting works on existing canals, raisina of embankments, canal/drainage and roads structures, drainage canal, road embankment and road surfacing. Other completed activities consist of construction of on-farm facilities such as farm ditches, turnouts, water management stations, gatekeepers' quarters and proJect offices. Table 3.03a shows the physical targets based on the Appraisal Estimates and the actual accomplishments on major items. 3.03.1 The Irrigation Service Areas The project covers three distinct subproject areas which fall into the jurisdiction of NIA's regional offices namely; Ilocos subproJect area in Region 1, Cagayan subproject area in Region 2 and Leyte subproject area in Region 8. The Ilocos subproject consists of 12 existing irrigation systems lying along the western coast of Northern Luzon between the Babuyan Channel in the North and Lingayen Gulf in the South. Cagayan subproject includes 3 irrigation systems lying at the mouth of the Cagayan Valley along the Northern Coast of Luzon island. Leyte subproject includes 7 existing and 3 new irrigation systems on the island of Leyte in the Eastern Visayas. Breakdown of irrigable area for each system to be rehabilitated and extended is shown in Table 3.03.1. -18 - 3.03.2 Irrigation Drainage and Eacilities Approximately 27,600 ha. land in the project area fall within the 22 existing irrigation systems operated by NIA through the three regional offices. The systems range in size from a minimum of 150 ha. for the Camunga-an river system in Leyte to a maximum of 8,000 ha. for the Abulog river system in Cagayan. Irrigation in the dry season is limited to some 14,400 ha. partly because of inadequate river flows, but mostly because of reduced canal capacities due to siltation and a lack of on-farm distribution facilities. The systems have suffered from insufficient maintenance due to lack of funds and equipment. They also have poor distribution networks which make it impossible for the maJority of the farmers to get water at the right time in the right amount. In additiion, there is a general lack of access roads which renders movement of inputs and produce difficult. There are drainage deficiencies in a few of the Cagayan and Leyte systems due to insufficient collector drains and inadequate outlet conditions. It is for this reason that rehabilitation and upgrading of the 22 existing irrigation systems and the construction of the three (3) new irrigation projects have been implemented. The total accomplishments for NISIP I include construction, rehabilitation and upgrading works of 259 km. of new canals, 931 km. of desilting works, 395 km. of raising of embankment, 4146 units of canal/drainage/ and road structures, 490 km. of drainage canal, 918 km. of road embankment and 900 km. of road surfacing. Other completed works consist of construction of 35 units of water management station, 29 units of Gatekeeper's quarter, and provision of 4174 units of turnouts includiing 2195 km. of farm ditches. The project has generated a total of 9,278 hectares of new areas for irrigation and rehabilitated and/or improved facilities in 28,042 hectares already covered by existing systems. 3.03.3 Strenathenina of ReSional O&M Caility The proJect deals with Region I, II and VIII, centered on Urdaneta, Pangasinan, Cauayan, Isabela and Tacloban City, Leyte, respectively. The proJect not only provided 0 & M equipment necessary to maintain the systems which were rehabilitated and expanded under the proJect but also supplied enough equipment to operate and maintain the remaining systems in each of the three regions. - 19 - In making provisions for the regional 0 & M equipment requirements, accounts have been considered on the quantity and condition of existing equipment present in the system. The three regions mentioned have reportedly little 0 & M equipment available and what they have are obsolete and in poor condition. Under the strengthening of regional capabilities component, the project supplied various vehicles and equipment to be utilized for operation and maintenance of 12 irrigation syetems covering a total area of about 36,500 ha. wherein two systems are from Region I, five systems from Reaion II and five systems in Region VIII. There were also provisions for a small number of vehicles which are allocated to a regional pool under the immediate control of the Regional Director. A list of the equipment, the distribution by Region and the allocation between the systems and the regional pools are shown in the attached Table 3.03.2. 3.03.4 Land Consolidation Pilot Project The farm survey conducted by the National Irrigation Administration showed a remarkable degree of holding fragmentation on the 12 systems included in the Ilocos sub- proJect area. The situation is more acute on the 6 systems in Ilocos Norte province, where only 6% of the farms are unfragmented, while 38% are split up in more than 6 pieces. In the five systems in the provinces of Ilocos Sur and La Union, 17% of the farms are unfragmented and about half are in two or three parcels. The situation is aggravated by the small sizes of the farms in the area. The unusual degree of fragmentation is due to the high pressure of population on the land, the absence of alternative sources of employment and local inheritance practices by-which all heirs get an equal share of the land. Fragmentation of small holdings work against good water management, makes adherence to cropping timetable more difficult and precludes the use of machines for cultivation. When a farmer has a subs.tantial number of small parcel of land scattered over a large area, it becomes difficult for him to manage them effectively and the amount of time spent travelling between them becomes high. Fragmentation also reduces direct access to roads, irrigation channels and drains. Farms on the irrigation systems in Ilocos Norte province badly need land - 20 consolidation. The situation ie further complicated by the high degree of tenancy. In addition, farmers frequently are tenants of more than one landlord. The government has stated that land consolidation will be the next step in the program of agrarian reform initiated with the accelerated land reform program in 1972. The objectives of the Land Consolidation Pilot Project are: 1. To determine the acceptability to the farmers and land owners of land consolidation in selected areas of the irrigation systems in Ilocos Norte province. 2. To determine the most economic and least socially disrupting level of consolidation, compatible with the greatest reduction in number of land parcels. 3. To develop a methodology of implementation, including an assessment of the feasibility of carrying out land consolidation as a farm cost rather than a proJect cost. 4. To evaluate the effects of land consolidation on farm incomes and efficiency of water management. 3.03.5 On-Farm Facilities Study The project was funded by the World Bank in the amount of $450,000 and by the National Irrigation Administration through the National Irrigation Systems Improvement Project (NISIP) Package I in the amount of $350,000.00 for a total of $800,000 . The funding includes cost for the construction and development of the various models in the amount of P1.40 M ($185,000). Total expenditures incurred by the project from September, 1977 to June, 1984 has reached P6.86 M broken down as follows: a) Personnel services - P4.59 M; b) Overhead Cost - P1.26 M; c) Research equipment - P 0.60 M and d) Civil works - P0.96 M. The major objectives of this study were: 1. To assess the efficacy of alternative models of turnout service area facilities and method of their use in allocating and distributing water to farms in two major types of irrigation systems having different cropping intensities, and - 21 - 2. To assess the causes and farmers reasons for the use of extra turnouts and to determine the optimal turn- out service areas based on existing physical parameters in two maJor types of (TSA) system. To fulfill the first objective, five maJor models (Ti to T5) ranging from the improved traditional to the more intensive level of on-farm irrigation facilities develtopment were designed, constructed and implemented in the UPRIIS and CamRIS systems. The additional models with land consolidation were also studied in the UPRIIS system. Implementation of the models was carried out in three stages of water delivery rates to the different TSAs: (1) in accordance with the supply rates of the system; (2) in accordance with the individual field water requirement; and (3) deliberately reduced rates of water supply to induce water shortage with the TSA. The performance of the different models were assessed in terms of the physical, agro-economic and socio-institutional aspects of the study. In pursuing the second objective, a number of TSAs with and without ETOs in both UPRIIS and CamBIS were selected for assessing the causes and farmers' reasons for the use of ETOs. A multiple linear segression was employed in determining the optimum size of TSA. The study showed that: 1. The water allocation and distribution methods specified for models T2, T3, T4, T5, T6, and T7 are not practically implementable within the TSA - a) During the land preparation stage because farmers do not prepare their land in the same sequence as the water delivery schedule; b) during the wet seasons, because of high rainfall resulting in lack of farmer's appreciation of its practicality and c) when irrigation water is rotated in the main supply canial among its different sections due to water shortage in the system. Also, in farms where direct-seeding is practiced, the rotational irrigation method cannot be implemented until about three weeks after seeding. However, in the dry season, the rotational method of irrigation can be implemented with farmer's cooperation during the crop maintenance stage. 2. In the dry season, when water delivery rates in the turnout are adequate, which ranged from 1.0 to 1.4 li/sec/ha during the 1980-82 period, there was substantial difference in the performance of the different models. -22- However, during the water supply condition (less than 1.0 li/sec/ha), models Tl, T2 and T4 performed more or less adequately in distributing the water. No significant advantage was achieved from the intensive structure and facilities of T2 and T4 models over model Tl. 3. Rotational allocation and distribution of water requires organized farmer activities to follow the schedule. Such organization was possible in 17 TSAs in UPRIIS where sustained efforts to that end were made. Cooperation from farmers in general was achieved regardless of whether they belonged to head, middle, or tail end of the MFD. Further, farmer s organized activities were high during the 1983 dry season when water supply was inadequate, particularly in the Land Consolidation Pilot Project area where significant group action could not be achieved earlier. 4. As expected, Model Tl was the least costly to develop in both UPRIIS and CamRIS. The average actual cost of improvements needed to upgrade the TSAs from their existing conditions to the specifications of Model Tl was P68/ha in UPRIIS and P184/ha in CamRIS. The highest average actual cost incurred was P232/ha for both models T3 and T4 in UPRIIS and P412/ha for T3 in CamRIS. The average cost of development in CamRIS was higher than in UPRIIS primarily because in -the former system more special structures such as chute-, drop and flume were needed. Model Tj also required over three times more operation time than Model Ti while Model T2 and T5 required about 2 times more operation time than Model Tl. 5. The prevalence of extra turnouts constructed by farmers in the different TSAs had contributed to the non- implementation of the different Models in both CamRIS and UPRIIS systems. In CamRIS, about 53% of the original TSAs and ETOs numbering between 4 to 18 while 43% numbering 1 to 6 in UPRIIS. The maJor physical factors-attributed to the construietion of ETOs in CamRIS are the orientation of the MFD with respect to the supply canal and the shape factor of the TSA. The TSA with MFDs parallel to the supply canal had generally more ETOs compared to zero in those with perpendicular main farm ditches (MFD). However, in UPRIIS, the length ratio which is defined as the effective MFD length to the TSA length had significantly affected the number of ETO's,in each of the TSAs. On the other hand, the major soctological factor - 23 - which affected the farmer's decision to construct and use ETO is the long stretch of MFD's with some portions unmaintained and/or reaches with negative slope. In fact in CamRIS. about 85% ETO users indicated that they had tried but 60% of them failed, to get water from the regular turnouts. 6. In CamRIS, the effective service area of a turnout is very highly affected by the location of the MFD with respect to the supply canal. The optimum service area under the existing CAMRIS condition is about 20 hectares when the MFD is parallel and about 47 hectares when it is perpendicular to the supply canal. The difference between the locations is important because in the parallel situations farmers have easy access to the supply canal water and they tend to substitute MFD maintenance work by constructing extra turnouts, which is not possible when the MFD and the supply canal are perpendiclar to each other. 7. In UPRIIS, the net area effectively served per turnout is significantly affected by the farm size, ratio of the effective MFD length to the length of the TSA (length ratio), and the ratio of the difference in elavation between the first irrigable paddy from the turnout and the last one before the extra turnout to their distance (land gradient before ETO). The optimum area per turnout found in UPRIIS condition is about 31 hectares for TSAs whose lengths are parallel to the supply canal and about 17 hectares for TSAs whose lengths are perpendicular. On the average, the optimum TSAs is about 29 hectares for the two categories of the TSA orientation. Originally the research project was planned to take five year of implementation but was extended for one year. Site selection commenced in mid 1977 and benchmark data monitoring started in early 1978. Operationalizing the different models was undertaken from the second half of 1979 up to the first of 1983. However, analysis, evaluation and writing of the final report was undertaken till December, 1984. 3.03.6 Schistosomiasis Control Program Schistosomiasis is the most important public health problem in the Leyte subproject area. Seven of the ten systems included in the project are located in Leyte's northeastern coastal plains, one of the worst - 24 - schistosomiasis-endemic regions in the Philippines. The endemic area in northeastern Leyte consists of 22 municipalities and a total population of about 475,000 people. The estimated number of persons infected with Schistosomiasis is about 87,000 for an average infection rate of 18%. The capital city of Tacloban has a population of 84,000 some 17% of the population at risk, with a rate of infestation of about 5%. The highest prevalence rates are found in a group of six municipalities lying west and south of Tacloban City. The areas to be rehabilitated under the project involved some of the areas with the highest Incidence of disease. It 4is essential that the proposed upgrading, expansion and intensification of irrigation should not worsen the schistosomiasis situation by creation of new snail habitats. The principal aim of the control program would be to provide ample drainage works and drain maintenance facilities to ensure that all irrigation water and field runoff would remain channelized. In addition, foot bridges would be built to lessen exposure to water. Besides the engineering aspects of the control program, the Department of Health proposes a series of control measures to be applied throughout the endemic ares without regard to the irrigation system boundaries. The health component of the proJect would include diagnosis and treatment of the disease, a health education campaign, environmental sanitation and application of molluscicides in snail infected areas. The health program was implemented in coordinaton with the Ministry . The health component is being done by Ministry fo Health (MOH) while the infrastructure component is being undertaken by NIA-NISIP. Under the infrastucture program physical accomplishment includes construction of 4 km. of new drainage canal, 240 units of foot bridges, 56.67 km. of main drain, 10W'95 km. secondary drain,54 units of drainage structures, 55.48 km. of road embankment, 53.06 km. of road surfacing, 83.60 km. of canal embankment, 2 schisto buildings and have fabricated/delivered 15,210 units of toilet slabs, 7,935 units of toilet bowls and 987 units of hand pumps. '25 - Table 3.03.a Physical Targets basd on Appraisal Estimates 1 S 1 Revised I I I T E M S I Units I Estimates I SI I I I tNet Irrigable Area I t t I------------ I - I I Now l Ha. I 1SS909 I : Rehab I Ha. 1 28,500 1 : ' IDiversion Dams I Temporary Brush Dam I No. 1 6 : I Existing Concrete Weirs I No. 1 16 1 I New Concrete. Weirs I No. 8 6 1 S Intake Structures and Bates S No. 1 20 1 IPumping Stations I I I t---------------- ~~~ ~~I I I Existing No. I 1 New No. S I1 I S I :Main Canals & Laterals I I 3 ____________________ _ I t Existing, Desilting I Km. 1 896 1 Raising of Embankment Km. I 438 1 New I Km. S 308 1 ICanal Structures I I I 1 Existing I No. : 1,626 1 1 New I No. 1 1,628 : I I I 1 [Main & Secondary Drains It I I Existing 1 Km. 275 1 : New I Km. I 250 1 I Structures I No. 1 546 1 I -I 1 IOn-Farm Facilities I le I Existing Irrig. Ditches 1 Km. 1 1,131 1 I New Irrigated Ditches I Km. 1 1,151 1 : Drains a Km. 1 140 1 I Main Turnout I No. : 2,792 1 I Supplementary Turnout 1 No. 1 1,570 1 IRoads Km. 975 1 SBuildings 1 1 | _________ ~ ~~I I I 1 Existing 1 No. 1 13 1 S New S0 No. 1 29 1 1 WMT Stations I No. S 35 1 I Batekeeper's Quarter I No. 1 31 1 S _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ S _ _ _ _ _ _ _ _ _ _ _ _ _ - 26 - Table 3.03.1 Breakdown of Irrigable Area for Each System REGIONS/SYSTEMS : LOCATION/ sTOTAL AREA UPGRADED: PROVINCE A AND GENERATED s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ : 3 :__ _ _ _ _ _ _ _ _ _ _ _ _ __ : REGION I : : . _______________________-- -- ------- :-- : 1. Bolo RIS :Ilocos Norte : 525 : 2. Pasuquin RIS uIlocos Norte s 714 : 3. Lacag Vintar RIS allocos Norte : 2,523 s 4. Dingras RIS zIlocos Norte : 1,106 : 5. Cura RIS :Ilocos Norte s 676 : 6. Bonga Pump #2 RIS :Ilocos Norte : 699 : 7. Sta. Maria Burgos :Ilocos Sur : 966 : B. Sta. Lucia Candon aIlocos Sur a 1s,5i2 s 9. Tagudin RIS :Ilocos Sur 1,3G34 : 10. Amburayan RIS :La Union : 3,664 s 11. Masalip RIS aLa Union 1,620 s 12. Abra RIG :Abra a 1,156 a SUB-TOTAL : : 16,605 a REGION II t a a …--- -… : 1. Abulog Rehab alsabela : 8,468 s 2. Abulog Extension :Cagayan & Apayao : - 3. Banurbur :Cagayan 764 s 4. Pamplona :Cagayan : 936 : SUB-TOTAL 3 : 10,168 3 REGION VIII 3 _______________________-__---- ------------ ----------- 1. Binahaan North aNorthern Leyte : 1,910 a 2. Binahaan South & Lower:Northern Leyte s 2,514 : 3. Guinarona River aNorthern Leyte 450 s 4. Tibak-Soong RIS :Northern Leyte : 1,470 : 5. Hindang-Hilongos :Southern Leyte : 650 6. Das-ay RIS :Southern Leyte a 440 : 7. Balire RIS aNorthern Leyte s 1,402 3 8. Gibuga RIS :Northern Leyte : 1,286 : 9. Ibawon RIS sNorthern Leyte 610 : SUB-TOTAL 3 : 10,732 a GRAND TOTAL 3 : 37,505 …3------------------------ ------------------ - ------------------ - 27 - IV. PROJECT DESIGNS 4.01 Irrigation and Drainage 4.01.1 Rehabilitation/Upgrading Works In the rehabilitation or upgrading of existing systems, the following points were considered: a) Study how best to use the existing irrigation facilities before considering any changes in the system's layout that will necessitate abandoning or modifying wholly or partly the facilities or relocating some permanent structures. b) The predominant section of the existing canal bet- ween structures shall be used in computing the water level. Existing canal section with capacities less than the design requirement, should be enlarged while canal sections with bigger capacities should be maintained. When one of the existing banks of the canal ha.s to be filled up for 0 & M road, the berm side of the existing canal should be filled up to attain the free-board requirement. c) Backfilling of existing canal bottoms and side slopes of oversized canals should not be done unless required in "b" above. Where the water surface elevation will considerably drop due to oversized canal section, the water surface level in the canal can be raised to the desired elevation by providing flashboards at the check structure. d) The slope, (a) of the canal between two successive structures to be used in the formula: 2/3 1/2 V R S n shall be equal to the slope of the line connecting the invert of the outlet transition of the upstream structure and the invert of the inlet transition of the succeeding structure, both taken at cut-off wall lines and should normally slope downhill. This is true when the canal bottom profile of the existing canal bottom is above and/or nearly follows the connecting line. If the canal bottom profile of - 28 - the existing canal is below this connecting line, or if the connecting line slopes uphill, use backwater design approach using the downstream structure as control. e) Maintain the elevation of existing top bank when the required/designed top bank elevation is lower than the existing one. 4.01.2 Water Requirement a) It was assumed that transplanted rice using 120- day non-photosensitive varieties in both the wet and dry season would remain the dominant crop in the various projects. Water requirements were based on the following cropping calendar for the three sub-project areas: D A T E 8 SUB-PROJ. : OPERATION : WET SEASON : DRY SEASON Ilocos : Land Preparation : Early May to :Mid Oct. to & Nursery : Mid-Sept.. :Mid-Feb. : Transplanting : Early July : Early Dec. to : to Mid-Sept. :Mid-Feb. Harvesting : Mid-October : Mid-March to : to Mid-Dec. : Mid-May Cagayan : Land Preparation : Early Aug. :Early Jan. to * & Nursery : to Mid-Nov. :Mid-April : Transplanting : Mid-Sept. to :Mid-Feb. to M: id-Nov. : Mid-April Harvesting : Mid-Dec. to : Mid-May to M: id-Feb. :Mid-July Leyte : Land Preparation : Early Sept. : Early Feb. to : & Nursery : to Mid-Dec. : Mid-May Transplanting : Mid-Oct. to : Mid-March to : Mid-Dec. : Mid-MaY : Harvesting : Mid-Jan. to :Mid-June to : Mid-March : Mid-August b) Land Preparation and Nursery were estimated to take 30 days with water requirements for saturation, evaporation and percolation of 300 mm., 310 mm, and 320 mm. in the wet season and 320 mm., 330mm. and 300mm. in the dry season for Ilocos,Cagayan and Leyte sub-project areas respectively. Flooding requirements to provide a minimum - 29 - depth of water in the field for cultivation in each season were estimated to be 20 mm. immediately after transplanting followed by additional 50 mm. about two weeks later. Generally field percolation losses were estimated to be 2.00 mm per day based on permeability studies in representation parts of the proJect area. Evapotranspiration rates were estimated to be equal to the observed Class A pan evaporationt at Pait, between 1957 and 1973 for the Ilocos sub-projeQt area. For the Cagayan sub-project area, evapotranspiration rates were estimated by Penman's method from meteorologoal data recorded at Aparri for the period 1949-73. The same method was used to compute evapotranspiratlon rates for the Leyte Sub project area from data collected at Tacloban City between 1949 and 1973. The effectlve rainfall was determined from observed daily rainfall at Laoag between 1949 and 1971 for the Ilocos sub- project systems, at Aparri between 1949 and 1975 for Cagayan Sub-project area and at Tacloban City between 1949 and 1973 for the Leyte systems, allowing water depth to fluctuate with the growth of the rice plants and limiting max. depth to 150 mm. c) Overall irrigation efficiency was estimated to be 43% in the wet season and 50% in the dry season at full development based on farm irrigation wastes of 40% in the wet season and 30% in the dry season, system operation losses of 10% and conveyance losses of 20%. d) The consumptive use of tobacco was assumed to be ratio of the observed monthly evaporation at Pait in the Ilocos Sub-proJect area. The following crop coefficients were used to obtain the consumptive use of tobacco: State of Growth CroD Coeffibiene Cultivation and Transplanting 0.70 - 0.90 Transplanting - 3 months 0.70 3-4 months 0.60 Usually tobacco is grown during the dry season with negligible rainfall, that the effective rainfall was assumed to be zero. An overall irrigation efficiency of 60% was used to derive the diversion requirements for tobacco. e) Monthly water requirement of the three sub- projects for the rice and tobacco crops are shown in Tables 4.01.1 and 4.01.3. - 30 - f) The size of the irrigated area for each system was determined from simultted operation studies using synthesized discharge records for the 25-year period 1948-73 and the estimated seasonal water requirements for rice. The cropping calendar was chosen to maximize the use of rainfall without exceeding local manpower constraints. No use of return flow was assumed. About 36,000 hectares can be irrigated during the dry season in the three sub-proJect areas. Adequate water supply is available to meet the supplementary irrigation demand of each system during the wet season. For five systems in the Ilocos sub-project area, where temporary brushwood diversion weirs are used for dry-season diversion, proper allowances were made for seepage through the structures. 4.01.3 Canals Laterals/Sub-Laterals, Extension Areas a) Canals, laterals, and sub-laterals in the extension areas and would have a density of one (1) kilometer for every 80 - 90 hectares of service area. They would divert from the supply source at sufficient elevation to reach, with proper gradient and by the most economical route, the land to be irrigated. b) The cross section of earth canals would be trapezoidal in shape with side slopes determined from stability of bank materials. Usually, a side slope of 1 1/2:1 is used but may be flattened or steepened as soil condition warrants. A side slope of 1:1 to 1/2:1 is used for canals on rock or hard pan. The b/d ratio (bottom width to water depth ratio) for unlined canals usually ranged from 2:1 to 2 1/2:1. c) For hydraulic design, the Manning's formula would be used with a roughness coefficient of n - 0.025 for earth canals with capacities of less than 3.00 cubic meter per second and 0.020 to 0.0225 for bigger canals. d) Limiting velocities for earth canals: Minimum velocity - 0.30 meter per second Maximum velocity - 1.00 meter per second - 31 - e) Freeboard (Fb): Minimum Freeboard - 0.30 M Fb - 0.40(d) for water depth (d) of less than 2.00 meters Fb - 0.25d + 0.30 (2.00 maximum) for water depth of 2.00 meters or greater f) The top berm width should be approximately equal to the water depth (d) plus freeboard (Fb), with a minimum valu6 of 0.60 M. It would be wider when needed as service road or to minimize seepage through the embankment in case of canal on heavy fill. g) The water surface profile during crop maintenance would be set at least 0.30 meter above the ground surface from the point where the canal could irrigate. 4.01.4 Canal Structures a) There should be at least one vehicle/equipment crossing for every 1.0 to 1.5 kms. of canals traversing in non-irrigable or non-residential areas. For residential areas, light vehicle crossing should be provided for every 500 meters. b) Adequate provisions should be made for check structures across the main and secondary canals, with steel gates if the flow exceeds 1.00 meter per second and stop logs for lower flows. c) Measuring devices would be provided at the upstream of each laterals and main farm ditch, which would be a parshall flume for flows exceeding 1.00 meter per second and a C.H.O. turnout or parshall flume for lower flows. d) To prevent wash-outs of canals, sufficient protective structures such as culverts. drainage siphons or paddy drain should be provided across the canals depending on the topography of the area traversed by the canal. -32 - 4.01.5 0.eration and M&in&gnancg Roads An all-weather gravel road should be provided along the embankments of canals, laterals or sub-laterals at an intensity of about 20 meters of 0 & M road for each for each hectare of service area on the following criteria: a) When a small canal runs parallel to an existing road within a center to center distance of 200 meters, the road embankment should be omitted. b) Generally, the road embankment should be placed at the service area side of the canal except in the existing canals where a road ie already existing along the canal embankment, the location of the existing road should be maintained. c) When both sides of the canal are irrigable the road should be placed at the wider embankment of the existing canal. d) If possible, maintain operation road along same Bide of the canal from headgate to end to avoid vehicle/equipment switching from left to right embankment or vice-versa. e) As much as possible, the canal service roads should terminate at the farthest turnout of the canal. However, when a canal terminates near an existing road or another canal, a connecting road maybe provided. f) Gravel surfacing for the different width of road should be as follows: For 4.00 meters canal embankment - 3.00 M wde, 20 cms. thick For 6.00 meters canal embankment - 4.50 M wide, 20 cms. thick g) A non-gravel farm road of 2.50 M width should be provided along those main farm ditches which lead to a village and where there is no access within 200-meter distance. - 33 - 4.01.6 Drainage Facilities a) Farm drains will normally drain an area of 60-100 has. if draining two rotation blocks or 30 - 50 has. for single block. These drains will be designed with two sections, upper section for a capacity of 150 liters/sec. (single block) to 300 liters/sec. (two rotation blocks) and the lower secton twice the capacity of upper section. b) All of the main and secondary drains will be designed for a minimum velocity of 0.40 meter/sec. and the maximum velocity will not exceed 1.20 meters/sec. c) All drainage channels will have a side-slope of 1 1/2:1 or flatter depending on soil conditions except on farm drains of the Leyte Schistosomiasis drainage work where a 1:1 side slope will be used if the soil cohesiveness permits. d) Drainage work will be designed for ten year frequency flood for drainage channels allowing a retention of water in the rice fields not to exceed 30 cms. depth and 72 hours. In the case of Leyte drainage works with the Schistosomiasis Control Program, retention of water 20 cms. depth and 48 hours is allowable. This will result in a drainage module of 0.50 to 0.60 cu.m./sq. km. for rice fields. e) All drainage structures will be designed for a 25- year return period. 4.01.7 Farm Level Facilities a) Rotation Area and Rotation Units: i) The area to be served by each canal, lateral or sublateral would be divided into areas of not more than 50 hectares each called rotation areas. The rotation areas would be further subdivided into smaller areas called rotation units having an area of 6 to 10 hectares each. ii) Each rotation area would draw water from the canals, laterals or sub-laterals only through one gated turnout and water would be distributed to the farm lots from the turnouts through a main farm ditch and supplementary farm ditches. - 34 - iii) The rotation area should not be too long because it requires long farm ditches and thus increases conveyance lose and opportunity for water disputes. A main form ditch should not be longer than 1,000 meters and supplementary farm ditch not longer than 500 meters. iv) As much as possible, rotation units within one rotation area should be made equal or nearly equal in areas. b) Turnouts i) The turnout should be located imoediately upstream of a check structure and its inlet should be placed sufficiently below the designed water surface elevation in the center. It will be more economical to place the turnout at the outlet of a road crossing provided with a check. ii) When a turnout is necessary further upstream of a check structure, its operating head is to be based from a water surface elevation equal to the checking height of the structure downstream. iii) The turnout is to be designed twice the designed discharge of its main farm ditch at normal irrigation to take care of increased flow during peak demand. The minimum size of turnout pipes for a rotation area not less than 30 hectares is 18" diameter. iv) Turnout pipes would be designed as a submerged tube using the formula: 0 - CA 2gh Where Q - Discharge in cubic meter per second C - Coefficient of discharge usually taken as 0.80 A - Area of pipe in square meters h - Difference in water surface elevation at the inlet and outlet of the pipe g - 9.8 meters per second per second c) Farm Ditches i) The average distance between supplementary farm ditches in a rotation area is 200 meters. - 35 - ii) Main and supplementary farm ditches should be located along tenant or lot boundaries or where it can irrigate the highest natural ground level in the service area. iii) There should be one supplementary farm ditch for each rotation unit. However, a common supplementary farm ditch for the two adjacent rotation units maybe constructed depending upon the topography. iv) To have a Permanent visual boundary between rotation units, the supplementary farm ditches should be located along sides of rotation units except when following a ridge line. v) Main and supplementary farm ditch serving the biggest area in the rotational area should be designed with equal capacities and should be with sufficient freeboard to convey water during land soaking and preparation. Other supplementary farm ditches should be designed independently. vi) For both main and supplementary farm ditches. adopt a base width of either 60 or 40 centimeters. vii) Main farm ditch, wherever practicable should be designed to irrigate both sides thus serving two rotation blocks of 30-50 hectares each with one turnout at the secondary lateral. viii) Supplementary farm ditches will normally be designed with a variation of two sections, upper half for 60 liters/sec. (5-6 has). or 100 liters/sec. (10 has) and lower half for 30 liters/sec. or 50 liters/sec. capacity. Main farm ditches will have uniform section for the entire length with designed capacity of 60-100 liters/sec. if serving one block and 120-200 liters/sec. if serving two rotation blocks. Berm width will be 0.45 N for main farm ditch and 0.35 M for supplementary farm ditch. Outside and inside slopes will be 1:1 for both main and supplementary farm ditch. - 36 - V. PROJECT MANAGEMENT 5.01 The National Irrigation Administration The implementation of irrigation development programs. including the operation and maintenance of national irriga- tion systems in the Philippines was previously a responsi- bility of the Irrigation Division under the then Bureau of Public Works. As food production began to fall short of the demands of an increasing population, the role of Irrigation as a determinant towards self-sufficiency in food became increasingly vital. For this reason, government planners saw the need to establish a larger entity to accelerate and integrate irrigation development in the country. In 1963, congress enacted Republic Act 3601, creating the National Irrigation Administration (NIA), a government- owned and controlled corporation with an authorized capitalization of Three Hundred Million pesos to be subscribed and paid entirely by the Republic of the Philippines. This Act abolished the Irrigation Division of the then Bureau of Public Works. The new agency took over the functions and duties, including the assets and liabilities of the abolished division. The NIA has been vested with the following powers and functions: a) To investigate, study, improve, construct and administer all national irrigation systems in the Philippines; b) To investigate all available and possible water resources in the country for the purpose of utilizing the same for irrigation, and to plan the next ten (10) to twenty (20) years period as the Irrigation Age of the Republic of the Philippines and; c) To collect from users in each irrigation system constructed, such as fees as may be necessary to finance the continuous operation of the system and to reimburse within a period of not less than twenty-five (25) years the construction cost thereof. I - 37 - The NIA's Policy-making body is composed of a six- member Board of Directors with the Minister of Public works and Highways as Chairman and the Administrator of the National Irrigation Administrator as Vice-Chairman. Members of the Board are: the Director-General of the National Economic and Development Authority; the Minister of Agriculture; the President of the National Power Corporation: and one member to be appointed by the President. The overall management of the NIA is vested in the Administrator, who is likewise a presidential appointee. On September 11, 1974, Presidential Decree No. 552 amended certain section of Republiic Act 3601 and vested the agency with greater powers, increased its capitalization and widened its functions and responsibilities. The decree authorized the entity to expand and diversify its activities to include implementation of multipurpose water resources develoPment projects; undertaking of groundwater exploration; and construction and/or expansion of national. communal and pump irrigation systems. Tso achieve these objectives, the capitalization of the UiA was increased from Three Hundred Milliion Pesos to Two Billion Pesos, to be subscribed entirely by the goverrment of the Republic of the Philippines. the broadening of N '8s functions and responsibilities and the inception of more projects for implementation, necessitated a major reorganization of NIA's set-up to cope adequately with its new role. The reorganization was approved on September 23, 1980 by the authority of NIA Board Resolution No. 3617-80. A maJor innovation in the modified set-up was the creation of four (4) offices of Assistant Administrators with the following functions and responsibilities: The organizational structure iNIA is presented in Figure 5.01. a. Office of the Assistant Administrator for Project Development and Implementation 1. Assist the Administrator in planning. organizing, directing and controlling the project development, design and specifications and construction management activities of the NIA. -38 - 2. Review plans, programs and proposals of departments supervised for adherence to policies and standards; evaluate their performance against targets; and 3. Exercise functional supervision over field offices in matters pertaining to his areas of concern. b. Office of the Assistant Administrator for Systems Operation and Equipment Management 1. Assist the Administrator in planning, organizing, directing and controlling all activities pertinent to the management of irrigation systems and equipment to ensure proper operation, maintenance, repair and improvement thereof. 2. Review strategies, plans and programs for the formation and development of irrigators associations in national and communal systems/proJects; 3. Review plans, programs and proposals regarding the implementation of the agricultural phase of a project including researches to improve operation and maintenance of systems and coordination with other agencies engaged in food production; 4. Review plans and programs for the acquisition, development, maintenance and repair of construction equipment, irrigation pumps, drilling rigs, mechanical-electrical plants, transport and communication equipment; 5. Monitor performance of dams and major structures of an irrigation system to ensure efficiency of said structure. 6. Exercise functional supervision over field offices in matters pertaining to his areas of concern. - 39 - c. Office of the Assistant Administrator for Finance and Management 1. Assist the Administrator in planning, organizing, directing and controlling the financial and management activities of the Agency to achieve optimum utilization of its resources and increase corporate income; 2. Review plans, programs, and proposals of departments supervised for adherence to Policies and standards; evaluate their performance against targets; and 3. Exercise functional supervision over field offices in matters pertaining to his areas of concern. d. Office of the Assistant Administrator for Administrative Services 1. Assist the Administrator in planning, organizing, directing and controlling the administrative services of the corporation; 2. Review plans, programs and proposals of departments supervised for adherence to policies and standards; evaluate their performance against targets; and 3. Exercise functional supervision over field offices in matters pertaining to his area of concern. 5.02 The Office of the Assistant Adipinistrator for Systems Operation and EquiMment Management The overall management and supervision of the NISIP being a project to rehabilitate existing systems was placed under the Assistant Administrator for Systems Operation and Equipment Management. This sector has the following departments: Systems Management Department. Institutional Development Department and Equipment Management Department. The functions of Systems Operation and Equipment Management are as follows: - 40 - A. Systems Management Department 1. Provide assistance and advice on the operation maintenance, repair and improvement of irrigation systems. 2. Review annual plans and programs submitted by field offices on the management of irrigation systems. 3. Prepare consolidated annual Program including financial requirements for operation maintenance, repair and rehabilitation of systems. 4. Review plans and programs on training of irriga- tion system personnel. 5. Develop plans for the conduct of irrigation research to maintain irrigation structures and facilities, improve management of systems and increase irrigation area. B. Institutional Development Department 1. Formulate policies, strategies to prepare irrigators for their eventual takeover and management of irrigation systems. 2. Develop plans and programs for rendering assistance to irrigators. 3. Supervise and coordinate activities of all regional water management training centers/units. 4. Monitor and evaluate the implementation and effectiveness of NIA's assistance program. C. Equipment Management Department 1. Plan and administer a comprehensive agency program for the acquisition, deployment, maintenance and repair of construction equipment, irrigation pumps, drilling rigs, mechanical-electrical plants, transport and communications equipment. 2. Formulate, update and dessiminate policies, guidelines and procedures on equipment management; monitor and evaluate all field activities. 3. Prepare technical specifications and cost estimates of construction and shop equipment to be acquired by the agency including drilling rigs, transport and - 41 - communication equipment and electrical and mechanical plants; analyze and evaluate bid proposals and make recommendations therein. 4. Undertake field inspection to evaluate equipment and pumps recommended for disposal, field shop facilities, operations and maintenance activities, newly acquired equipment, spare parts and tools; undertake repair of equipment brought to Central Office. 5. Prepare the plans and designs and undertake the installations, repair, operation and maintenance of well drilling equipment, mechanical plants and structure, electrical plants and communication equipment. 5.03 Proiect Or&niZaJtion The National Irrigation Systems Improvement Project (NISIP) is a result of a study conducted earlier by the NIA. For quite sometime, the Agency had been aware of the deterioration of the irrigation systems and the consequent inadequacies of these systems to meet the growing demands of rice production. While some other rehabilitation proJects had been implemented, these were only for selected systems such as the large Angat System and Magat System. The medium sized systems and the small ones were often left out. In 1975) the NIA was able to acquire funding from the World Bank under Loan 1080-PH to finance a project that would asess the status of the medium-sized and small irrigation systems and identify their priority for their rehabilitation and improvement. This project was the National Irrigation Systems Improvement Study (NISIS). Hence, the concern of NISI?P were on national systems that were given less attention during the previous years. The result of the study was the identification of 61 national systems as top priority for rehabilitation. These systems were grouped into four (4) packages: the first package also known as NISIP I covers 22 existing and three new irrigation systems in Regions 1, 2, and 8. NISIP II or package II includes 26 existing irrigation systems covering seven NIA regions in Southern Luzon, the Northern Visayas and Mindanao. The Third and Fourth Packages would have involved the rehabilitation of the existing irrigation systems not covered by Packages I and II. But because of a change of plans, these were not implemented. Instead other similar oriented proJects were undertaken. Under the NISIP package, the systems were selected based on the following criteria: - 42 - a) The degree of need for improvement; b) The potential for improvement in terms of land and water resources: c) Technical and economic feasibility of the improve- ment package; d) Human need in the area in terms of poverty and incidence of water-borne diseases; NISIP therefore is a series of packages. NISIP I is the first package and was implemented upon securing World Bank assistance under Loan 1414 PH. The estimated total cost of NISIP I is Peso 8044 which includes US$50 N in foreign exchange and the rest in peso counterpart. Briefly the scope of work includes: a) Rehabilitation and upgrading of 22 xisting national systems in Ilocos, Cagayan and Leyte; b) Construction of new irrigation. drainage and road facilities on about 18,300 hectares of currently rainfed land adjoining 18 existing NIA systems. c) Construction of three new national systems in Leyte to serve 3.500 hectares. d) Land consolidation in Ilocos. e) Study of on-farm facilities. f) Strengthening operation and maintenance capabilities in Regions 1, 2 and 8. g) Provide assistance to schistosomiasis control in Leyte. Region I Service Area (ha) Bolo River 400 Pasuguin 600 Laoag-Vintar 2,300 Dingras 1.100 Cura River 500 Bonga River 1,200 Abra Pump 650 Sta. Maria Burgos 850 Sta. Lucia-Candon 1,600 Tagudin 1,350 Amburayan River 3,050 4asalip River 1,300 Sub-Total 14,900 - 43 - R*gipfl II Abulog River 8,000 Banurbur River 700 Pamplona Pump 200 Sub-Total 8,900 Region VIII Binahaan (Norte) River 1,000 Binahaan (Sur) River 600 Guinarona River 450 Tibak River-Soong Lake 750 Hindang Hilongos 600 Das-ay River 250 Camunga-an River 150 Balire River (new) - Gibuga River (new) Ibawon River (new) - Sub-Total 3,800 Grand Total 27,600 ORGANIZATIONAL SET-UP On January 24, 1977 the organization of NISIP I was approved under Board Resolution No. 2999-77. Pigure No. 5.02 shows the approved organizational structure of NISIP I. Under the organizational set-up, the implementation of the 25 sub-projects under NISIP I would be the responsibility of the Regional Irrigation Director where the sub-project is locted, in close coordination with the Project Manager of NISIP I. To bring about the smooth coordination among the NISIP I sub-projects in Regions 1. 2 and 8. the Office of the Project Coordinator under the RID staff was created in each of these regions. Under the Office of the Coordinator is the ProJect Engineer who is directly responsible for the prosecution of the sub-project. A sub-project was the term used to denote an existing system under rehabilitation or a new system under construction. Figure No. 5.03 shows the organization of NISIP I sub-projects composed of three (3) operating units namely: Administrative Section, Engineering Section and Agricultural Section. Presented in Table 5.01 is the manpower distribution of NISIP I. While the rehabilitation was going on in the systems or sub-projects, the system continued to operate. Thus. the existing positions were retained to undertake the 0 & N functions. - 44 - 5.04 The Project Coordinating Agencies Agricultural development is a function of several agencies, government and private alike. Irrigation development. land tenure improvement and the provision of agricultural extension services are handled by government agencies while the delivery of agricultural inputs is being handled mainly by the private sector. On the other hand, the farm credit requirement is being provided by both government and private financial institutions. Under this situation, it would be very difficult to achieve the desired level of agricultural development without proper coordination among the various agencies concerned. This coordination is necessary to bring about a synchronized and timely delivery of appropriate inputs and services to the farmers. Recognizing the importance of coordination in bringing about the ideal condition for improved agricultural production the Agricultural Development Coordinating Council (ADCC) is organized in all foreign-assisted irrigation projects including NISIP. Organized in the early stages of the construction phase the scope of works of the ADCC includes: a. improvement and construction of irrigation and drainage facilities; b. establishment of demonstration farms that are strategically located in the project area; C. implementation of land reform program in the project area; d. negotiation for right-of-way in the proJect area; and e. formulation aend implementation of an integrated agricultural development program. The ADCC is composed of various agencies. Among them are as folows: a. National Irrigation Administration b. Ministry of Agriculture and Food c. Credit institutions such as Central Bank of the Philippines, Philippine National Bank, Rural Bank Association of the Philippines. etc. d. Ministry of Agrarian Reform - 45 - e. National Economic and Development Authority f. Ministry of Natural Resources g. National Food Authority h. Ministry of Health i. Local Government (Municipal/Barangay Levels) At the project level, leaders of Irrigators Association are also included in the ADCC membership. In NISIP areas, the ADCC has various forms although the member agencies are almost the same. There is the Provincial Action Committee (PAC), the Municipal Action Team (MAT). the Project Level Agricultural Development Coordinating Committee (PADCC). the Field Level Agricultural Development Coordinating Committee (FADCC) and the Systems Level Agricultural Development Coordinating Committee (SADCC). The PACs and MATs have been existing since the implementation of M-99 Program but most have been inactive status. During project implementation they were reactivated through the initiative of the NISIP-IOMP. The other forms of ADCCs were organized also through the NISIP-IOMP with the assistance of the Agricultural Coordination Division (ACD) of the NIA's Regional Offices. Among the ADCCs organized or reactivated, the PADCC, FADCC and some MATs are, at present, the more active in solving the problems of the FYADP implementation. f lOURL NO. 5.1 ORGANZTION CHART NATIONAL I RRIBATION AOMINISTRATOS |ikA BOARD OP ORECTOR| so~~~ I .It oRUItNT CAali t No TTI LCONTROLLERSHIP lRS Lo~ ~ .au MAA0_,il a. - ." o b itp SRN SSPASTUEUT OEPANTUUR? *EVSL~~~~OPWBme NVAG ET EPAITMNSIT OE PASNRT OPR?ST STNN r *0"1, cc 10 DiSR _ttatt -VA _N r D-,ct 4 A L -'11,111#g __ 116 V_IDO * aaa f_i ! OPSfATION& a EMIAL ACCOW CAt ivo" L _ _ _ M M~sUR~MS CONTRAC ..Ol SA&MPNNWE mp,prw~ ORSomI.ON lOAs 4VENUE "WIEA""O ponsSIRlomIVISON uFaTmIa |to;4|72tt 10 C ICtCATt tS AO.ut,OVllttOt VE OYM 61AN POR, ATION 0 A 1583* N 1 1 A RC N4 S SUCOT DIVISION savasiow MWISUNO |tC^Tt1041tONIJI a ar ItaT *CV tot° t t(tttttD leOt VW" SIO P J5CTS MAINOSN OfiNG stow IION --l MS.Sa . LAR Uv8 StOtt LPROJECTS D~~bapillARVMINI OSPAS?Mtn1rpa PRJCT 0EPASTUENT * *PARTUENPT L .. g*- - - _i .. . . ...., CI8 ORKIS USJIMENPLM.NSSilm 011'kSCIK DVCSI ON SMIRMWATO UA4ISMAIi *RCNIsTEO?uRE AND MuCA SUN NIso ONAPTItM DIVISION OPOIRA1UVOIS 1 tlX at =NRIGATW!iI E I i St lIONS J j ±±.g4J f I4tS ! ri " a poiuat mo. o.* ORGANIZATION CHART NATIONAL I RRIGATION ADMINISTRATION PROVEhMMN WRM ASST. ADMINISTRATOR FOR ENG'G. a OPERTiO NISIP PROJCI MANAGER | REIG1ON 2 F | tlo IC ;tSO 7 a 1 q STAFf | R STAFF t DSTAFF F~~~~~~~~~~~IS~~~~~~~~~~~~~~~1~~~~ ISALUf §M LAOAGl I -PROJET SUB - PROJr STAFF l SAFF _ 7ZLi A! FiGuRE NO. ma ORGANIZATION CHART NISI P SYSTEM UNDER REHABIUTATION NISIP CONSTRUCTION ENOHR o e M OF SYSTEM lUADMNISTRATIVE ENGWEERN A|RCUURE 0 ok m or sygram SECTION ~~~~SECTON SIXTION PO" E SE l.SURVEY a MAPPING .. . | .t FORCE ACCOUNT ACCOUNTING AC AC d NnNG l F Cs~~~~~FA #4Y) PROPERTY 1 EOUIPMENT - - - - -....... - - - - - - - -.................... - - - - - - - - - -............. - - - - - - - - - *--- aOM. 13:. - w. _ _o !,; ... - .. 0 -.... q4 -z - --- --- - -F -S I - - Y-n -I - -t -- - - - - - - - - - t - - - - - - - - -- - - -l - I-. -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I I I I vIIl [ I -eXIIBi~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~mI. - * ~~~~~~~~~: - ~~~~ - -- - - . - - a X- pt aSo 14 *§ - --- - , -I- -d - . -------j IM~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~r -. ... ". ..--.--- --- - -i------- I W ii I K . -- -. ..- - a - -a--. - - - ----.---- so-2 - VI. PROJECT IMPLEMENTATION 6.01 Contract Works Implementation of the National Irrigation Systems Improvement Project, Package I (NISIP I) was carried out by contract and force account. The contract works, which accounted for about thirty-five percent (35%) of the total civil works, involved three (3) types of contracts as follows: 1) MaJor Contract - These are contract works bidded at the NIA Central Office in Quezon City. It involved major civil works originally programmed to be prosecuted by contract. 2) Local Minor Contracts - These are contract works bidded and awarded at the Regional Offices under NISIP I by authority of the Administrator. It covered civil works which could not be prosecuted by force account due to the limited equipment and manpower resources of the different NISIP sub-proJects in Region I, II and VIII. These contract works involved aggregate contract amount not exceeding Peso 750,000.00 per contract package/schedule. 3) Small Package Contract - These are civil works prosecuted by local small time contractors after unit price determination per item of work had been established by the NIA following a price determining bidding conducted by the different project offices. It involved aggregate contract amount not exceeding Peso 100,000.00 per contract package/schedule. 6.01.1 MaAor Contract& A total of seven (7) major contract works were prosecuted in the implementation of NISIP I proJect. these maJor contracts are as follows: Reoion Contract UP. Contract r1escription 2 NISIPI-C-1R Construction of the Abulug Diversion Dam, Abulug East Extension ProJect, Cagayan 2 NISIP C-2 Construction of Canals & Schedule I Service Roads for the Abulug East Extension proJect, Cagayan - 51 - 2 NISIP C-2 Construction of Canal Schedule II Structures for the Abulug East Extension Project, Cagayan 2 NISIP C-8 Construction of Pamplona Pumping Station, Pamplona, Cagayan 8 NISIP-C-4R Construction of the Balire River Irrigation System, MacArthur, Leyte 8 NISIP C-6 Construction of the Gibuga River Irrigation System, Leyte 8 NISIP C-7 Construction of the Lower Binahan Irrigation System, Leyte A brief discussion on the implementation of the various contract works follows. 1) Contract No. NISIPI-C-1R - Construction of Abulug Diversion Dam, Abulug East Extension Project, Cagayan. The contract work involved the construction of the Main Dam for the Abulug Eat Extension project in Cagayan and furnishing of all equipment, supplies, materials, labor and other incidentals for the successful implementation of the contract work. After three (3) consecutive unsuccessful bidding, the 4th and final bidding was held on April 14, 1983. Five (5) prequalified bidders submitted their proposals and Dragages Et Travaux Publics offered the lowest complying bid in the amount of Peso 72,173,955.00. It was noted that the lowest bid was 9.49% or Peso 6,257,955.00 higher than the Approved Agency Estimate (AAE) of Peso 65,916,000.00 and some of their unit costs vary significantly from that of the AAE. Subsequent negotiation were held between NIA and the contractor and the latter agreed to reduce its original bid price by peso 2,062,959.00, bringing the total bid offer down to peso 70,110,996.00 which was only 6.36% higher than the AAE. NIA finding it fair, reasonable and acceptable, accepted the reduced offer of the contractor. Contract time frame would last for 900 calendar days. - 52 - The "Notice to Proceed" was issued to the contractor on November 4, 1983. The contractor was able to comence on November 10, 1983. Initial activities included the construction of the temporary facilities and the mobilization of construction equipment. Minimal accomplishment was noted at the end of 1983 due to the effect of the bad weather conditions at the project site. In the second quarter of 1984, despite of the favorable condition in the area, minimal progress was attained in the various contract works due to the deteriorating peace and order situation at the proJect site. On May 30, 1984, the camp of the contractor at the damsite was raided by unidentified lawless elements which resulted in the complete paralization of all their construction activities. As a result of the raid, the contractor on October 29, 1984 submitted to NIA their formal request for the mutual termination and the revised amount of claim for damages in the amount of Peso 32,034.078.80. On April 8. 1985, the NIA Board on its 450th meeting, approved the mutual termination of the contract invoking the provisions of GC-23 (Right of the Contractor to Terminate the Contract) with the condition that the contractor may pursue other legal actions on those controversial claims which NIA may not accept. Further negotiations took place between NIA and the contractor and on May 13, 1985 during the 452nd Board Meeting, it was agreed to compensate the contractor in the amount of Peso 12,601,134.64 out of their revised damages claim. However, after considering all payments made, including the advance payment in the amount of Peso 10.516,649.40 and some accounts chargeable against the contractor, the net amount paid was Peso 1.834.983.21. It was understood that the contractor would pursue arbritation proceedings on items which were controversial and were not accepted by NIA at the time of the agreement.. On June 17, 1985, the contractor submitted their amended Notice of Arbitration and up to this time both parties are exploring other possibilities of resolving the issues without actually going through the expensive and lengthy arbitration proceedings. 2) Contract No. NISIP C-2, Schedule I. Construction of Canals and Service Roads for the Abulug East Extension Project, Cagayan The bidding for Contract No. NISIP C-2. Schedule I was held on May 17, 1979, in accordance with the IBRD Guidelines. Out of the six (6) prequalified bidders, only two submitted their proposals. The contractor, Juanito L. - 53 - Bernardo Construction submitted the lowest bid in the amount of Peso 12,766,850.00. The contract could not be awarded to the contractor for it was higher by Peso 196,860.00 or 1.57% from the approved government estimate in the amount of Peso 12,569,990.00. On December 12, 1979, the Contractor agreed to lower its price to the level of the government estimate which NIA found it advantageous and acceptable and on December 14, 1979, NIA issued the "Notice of Award" to J. L. Bernardo Construction. Originally, the contract which involved the construction of canals and service roads in the Abulug East Extension project had been scheduled to start on December 1979 but due to the funding problem, issuance of the "Notice to Proceed" was held until September 11, 1980 which would last for 600 calendar days covering two full dry seasons. thus, the original expiry date should have been on May 3, 1982. Two deferment of contract effectivity were granted to the contractor by NIA, thus moving the effectivity of the contract to February 16. 1981. Several contract time extensions and suspensions of work were granted by NIA to the contractor primarily due to the weather conditions prevailing in the area resulting to the unworkability and inaccessability of the jobsites. A total of 146 calendar days time suspension and 556 calendar days time extension had been granted to the contractor. thus the expiry date of the contract was moved to September 9. 1984. During the implementation of the contract works, Change Order No. 1 was approved in the amount of Peso 1,236,825.59 or 9.84% over the original contract amount. This includes the relocation of the main canal line and increased in the width of the road embankment from 2.5 meters to 4.00 meters. Supplemental Contract covering the construction of Laterals C,D and F was likewise considered and approved amounting to Peso 4,927,416.63 or 39.20% over the original contract amount. With these, the revised contract amount was Peso 18.734,117.22. Over-all accomplishment as of the 2nd quarter of 1984 was 76% of the total revised contract amount. In March 24, 1984, the contractor requested NIA for the termination of the contract. The justification mentioned were the combined effects of the successive peso devaluation, relatively high costs of construction materials and operations in the project not commensurate with the value of accomplishment even if escalation was granted and the unworkability of the jobsites due to adverse weather - 54 - condition in the area. A Joint inventory and assessment of the work accomplished, partially completed works and works not yet undertaken was conducted bY both NIA and the contractor and after evaluating the results of the inventory, it was mutually agreed to terminate the contract effective September 9, 1984. The remaining works were deleted from the contract and was undertaken by "Force Accounts" and/or by local minor contracts in accordance with the provisions of the contract documents and the implementation rules and guidelines of P.D. 1594 and P.D. 1870. 3) Contract No. NISIP C-2, Schedule II, Constructuion of Canal Structures, Abulug East Extension Project, Cagayan The contract works for Contract No. NISIP C-2. Schedule II was bidded on May 17, 1979. Two prequalified contractors submitted their bids. The contractor, Capitol Industrial Construction Groups, Inc. submitted the lowest complying bid in the amount of Peso 12,518,530.00. An evaluation of the bid showed that it was 10.58% or Peso 1,197,920.00 higher than the approved Government Estimate of peso 11,320,610.00. Negotiations with the lowest bidder was initiated by the NIA management and the total contract amount was eventually reduced to Peso 12,320,610.00 The contract which involved the construction of canal structures for the Abulug East Extension Project should have started in June 1979 but due to the finan^ial problem encountered, the "Notice to Proceed" was issued by NIA only on June 19, 1981 and received by the contractor on July 3, 1981. The contractor upon receipt requested for deferment of the contract to December 1, 1981 due to the unfavorable weather condition prevailing at the Jobsite which NIA favorably acted upon. With the new contract time frame, the new expiry date was moved to July 23, 1983 covering a total of 600 calendar days. The implementation of the contract work was greatly hampered by the non-accessability of the project site due to the adverse weather prevailing in the area and the peace and order situation thereat. Consequently, with these as basis, the contractor requested for contract time extension of 338 calendar days and contract time suspension of 108 calendar days, which NIA favorably approved. With the time extension and time suspension granted, the new expiry date was moved to October 11, 1984. - 55 - The contractor on July 20, 1984, requested for the termination of the contract citing specifically the unusual effect of inflation which had brought about the sudden increase in the costs of construction materials and operations. Several meetings were held between the contractor and NIA and it was agreed to mutually terminate the contract. On January 9, 1985, a joint inventory and assessment was conducted and the result was that the contract was 81.29% completed based from the latest contract amount of peso 14.098,492.40. The revised amount of contract was due to the approved Change Order No. 1 of Peso 2,777.882.40 or 24.54% over the original contract amount. The change order was brought about by the increased in the quantity of work items due to revision of plans to suit actual field conditions. NIA on April 23, 1985 had approved the termination of the contract and recommended the termination effective October 11, 1984 and the remaining works were deleted and undertaken by "Force Account," Local Minor Contract and/or Small Package Contract in accordance with the provisions of the contract documents. 4) Contract No. NISIP C-8, Construction of Pamplona Pumping Station, Pamplona, Cagayan Contract No. NISIP C-8 was bidded on April 23, 1981 for which all of the bids submitted were non-responsive and NIA decided to hold a re-bidding on May 19, 1981. As a result of the re-bidding, the contractor, Philippine Construction Consortium Corporation submitted the lowest complying bid for the said contract in the amount of Peso 1,410,183.40. the result of the evaluation was that the bid was Peso 24,334.65 or 1.75% higher than the allowable government estimate of Peso 1,385,848.75. On July 24, 1981, the contractor had agreed to lower its price to the level of the allowable government estimate of Peso 1,385,848.75. The "Notice to Proceed" was issued on November 3, 1981 but due to the inclement weather affecting the project area, the contractor requested the deferment of the official starting date of the contract work on November 10, 1981. After evaluation and confirmation by NIA, it was agreed to move the contract effectivity from November 3, 1981 to January 15, 1982 to give the contractor enough time to prepare for the mobilization of manpower and equipment to the jobsite. The construction of the Pamplona Pumping Station was scheduled to last for 360 calendar days and with the approved deferment, the revised expiry date was moved to January 10, 1983. - 56 - In the implementation of the contract, Change Order No. 1 was considered by NIA. The change order was due to the sub-surface rock excavation encountered at the project site which were unknown at the time of the bidding. The Change Order was 6.09% or Peso 84,943.00 over the original contract amount, thus, the revised contract amount was Peso 1,470,341.75 and the expiry date was moved to February 4, 1983. The contract work prosecution was smoothly undertaken by the contractor but due to the nature of the work which involved the installation of steel gate, transformers for the motors and other accessories which NIA failed to deliver the vital parts/accessories on scheuule, the contractor requested for 161 calendar days time extension. NIA after evaluating the claim recommended and approved the request thus the expiry date was moved from February 4. 1983 to July 15, 1983. By June 30, 1983, NIA completed the deliveries of the various equipment/acessories to the jobsite. The contractor accelerated their construction activities and by July 7, 1983, all of the construction works had been completed. Change Order No. 2 (Firmed-up Quantities) was likewise considered. The Change Order was 5.99% or Peso 88,114.21 less than the revised contract amount. On June 22. 1983, NIA management conducted a test run and found out that all items of works in the installation of the pump had been satisfactorily completed in accordance with the plans and specifications and the contract works had been accepted by NIA effective July 7, 1983 as prescribed by the resolution of Final Acceptance dated August 30, 1983. 5) Contract No. NISIP C-4R, Construction of the Balire River Irrigation Project, MacArthur, Leyte Contract NISIP C-4R was bidded on November 29, 1979 which only two (2) of the five (5) prequalified bidders submitted their proposals. The lowest bid submitted was that of Leyte-Biliran Construction Co., Incorporated and the evaluation showed that the bid was higher by Peso 71,454.10 or 4.34% over the approved government estimate of Peso 1,645.256.10. The contractor however, in its letter dated January 29, 1980 agreed to lower its price to the level of the government estimate which NIA found advantageous and acceptable and the "Notice to Proceed" was subsequently released on November 20, 1980. - 57 - The works awarded to the contractor involved the construction of the diversion dam, canal network and its appurtenance structures and service roads. The contract time took effect on November 26, 1980 and should have expired on January 19, 1982. Due to series of typhoons and heavy rains in the locality, resulting to the unworkability of the project site, the contract effectivity was deferred by NIA to February 15. 1981. thus, moving the expiry date of the contract to April 10, 1982. The contractor was able to commence their construction activities only on March 6, 1981 and consisted of the construction of their temporary facilities and mobilization of their construction equipment. Despite of the favorable weather conditions from March to May 1981, no significant accomplishment was noted and this was mainly due to the financial constraints and lack of skilled workers on the part of the contractor. On May 20, 1981, a suspension order was issued by NIA on some parts of the contract work, particularly the diversion works and the south main canal due to major modifications to insure their structural stability and Subsequent diversion efficiency. It was made clear to the contractor that the suspension maybe a cause for giving them an extension of time, since the dam construction was on the critical path of the schedule. In August 22, 1981, the contractor partially abandoned the project by the demobilization of some of their construction equipment and labor force with only 13% or P213,353.56 accomplished on the contract. NIA management inquired on the shut down on some of their activities and found out that it was due to lack of funds inspite of NIA's payment of their partial collection and also the release of their working capital in their request for assistance to alleviate their financial capability. By October 1981, a notice was sent to the contractor by NIA to use labor intensive scheme on some structures and canal construction and at the same time deploy additional construction equipment in order to improve their performance. The problems were further complicated by the abandonment of the contractor's key personnel due to financial problems of the contractor. Between August 1981 to January 1982, no accomplishment was made by the contractor even after several notices from NIA that most of the contracted civil works could be undertaken, inspite of some typhoons and intermittent rains in the locality. - 58 - During the first quarter of 1982, NIA had taken over some works on the canal, structures and service roads but NIA was constrained to start some works due to the persistence and clamor of farmer-beneficiaries from the locality. On January 28, 1982. the final plans for the dam and the south main canal were issued to the contractor. It was agreed that the contractor would resume the works within seven (7) days for NIA was considering to grant a four (4) months time extension on account of the dam construction as within the approved critical path of the construction schedule. Despite of the assistance and laxity offered by NIA to the contractor, their promise to resume work did not materialize. Hence, NIA was compelled to takeover all the works by "force account" inorder not to further delay the completion of the project. On September 13, 1982, NIA management approved the recession of the contract with the contractor and recommended the remaining works to be undertaken by force account and further suspended the contractor from participating in any government contract and initiated the move to forfeit the bond posted for this contract agreement. 6) Contract No. NISIP C-6, Constructiion of Diversion works, Canals, Roads and Related Structures, Gibuga River Irrigation Project, Leyte The bidding for the project was held on August 28, 1979 and implementation was scheduled to start on the construction season of CY 1980. During the bidding only three (3) of the original six (6) prequalified bidders submitted their proposals. The lowest bid of Peso 3,073,550.00 was that of Thomas and James Developers (Phil) Inc. which was still higher by Peso 88,961.00 or 2.98% over the approved government estimate of Peso 2,984,588.90. The contractor agreed on November 8, 1979 to lower its bid to the level of the government estimate. After the award had been made, P.D. 1594 was promulgated and subsequently compliance on its requirements contributed to the delay in the issuance of the "Notice to Proceed." The contract work involved the construction of the diversion dam, canals, roads, and related structures of the Gibuga River Irrigation Project. The works was to be completed within 480 calendar days covering two full dry season effective November 26, 1980 and should have been expired on March 21, 1982. - 59 - On November 27, 1980, the contractor requested a deferment of the effectivity of the contract mainly due to the unworkability of the project site due to the setting-in of the rainy season which would last up to February of the next year. NIA acted favorably after confirmation from the field office and moved the contract effectivity to February 15, 1981. The contractor was able to mobilize only on March 16, 1981 and initial activities were the construction of camp and office facilities, mobilizatiion of construction equipment, clearing and grubbing, channel excavation, cofferdaming, location survey and fabrication of reinforcing steel bars for the diversion works and canal structures. In the second quarter of 1982, minimal accomplishment was noted by NIA despite the favorable weather condition in the locality. The NIA management had suggested to the contractor to field additional manpower and efficient utilization and scheduling of construction equipment inorder to accelerate the project implementation. On May 24, 1982. the contractor requested a 39 calendar days time extension due to the series of typhoon that affected the project implementation which upon verification by NIA recommended and approved the request, thus the expiry date was moved to July 18, 1982. On October 15. 1982, the contractor requested again for suspension of the contract time citing among others the non- availability of working drawings for the works affected by the revisions of the design parameters of the Schistosomiasis Drainage Component. NIA management after evaluating the causes of the request decided to mutually terminate the contract instead of granting the contractor another time extension and incur further losses on account of idle equipment and manpower. The work on October 16. 1982 was suspended inorder to conduct a joint inventory of the acceptable works accomplished. Due to the discrepancy in figures, several meetings were held between NIA and the contractor and on January 24, 1986, the final and concurred firmed-up quantities was submitted. On March 14, 1986, the contract work was approved, accepted and terminated effective October 15, 1985 at 94.63 % accomplished. The remaining works were resolved to be undertaken by "Force Account". - 60 - 7) Contract No. NISIP C-7, Construction of the Lower Binahaan ProJect, Leyte The opening of bid was conducted on February 28, 1980, in accordance with IBRD Guidelines. Out of the four (4) prequalified bidders, only three (3) submitted their proposals. The lowest complying bid was that of J.H. Pajara Construction Corporation in the amount of Peso 7,563,196.00 which was Peso 342,61..73 or 4.83% higher than the allowable government estimate of Peso 7,214,582.27. However, the contractor in its letter dated June 16, 1980 agreed to lower their bid of the allowable government estimate. The "Notice to Proceed" was issued and received by the contractor on January 19, 1981 but the contractor requested for a deferment of contract effectivity due to the unfavorable weather conditions in the area and further delays were incurred due to the non-availability of the workng plans. The delay in the issuance was due to the revisions of the canal lines and profiles and consequently all the canal structures inorder to satisfy the Schistosomiasis design parameters. NIA management found it reasonable and moved the effectivity of the contract to May 10, 1981 and the revised expiry date was set to December 1, 1982. The contract work awarded involved the construction of canal network and its appurtenant structures and service roads and had a duration of 570 calendar days. Due to the concommitant delays resulted from the non- availability of said plans including typhoons and right-of- way problems that have adversely affected the timely implementation of the contract works. The contractor was granted a total of 335 calendar days time extension and moved the terminal date to November 1, 1983. Prior to the expiry date of the contract several meetings were held between NIA and the contractor in connection with the take-over by administration of some unworkable portions of the project which plans were not available and those portions with unresolved right-of-way problems. On August 9, 1983, work in the project was suspended in order to conduct a Joint inventory of the acceptable works accomplished by the contractor and the probable deletion and prosecutiion of the remaining works by "Force Account." On September 10, 1984, NIA management approved the termination of the contract at 26.94% accomplished and resolved that the remaining works were to be undertaken by "Force Account." - 61 - 6.01.2 Local Minor CUontract Local Minor Contracts are medium size contract works which were bidded and awarded at the Cagayan and Leyte sub- proJects by authority Administrator. These contracts cover civil works which could not be prosecuted by force account due to the limited equipment and manpower resources in the subproJects and those works taken over by NIA from contractors who failed to complete their respectve contracts with the NIA. Each local minor contract involves an aggregate amount not exceeding Peso 500,000, however, this limit later increased to Peso 750,000 by virtue of Memorandum Circular No. 44-C, Series of 1985. Presented hereunder are the various Local Minor Contracts under NISIP 1. Region 2 - Cagayan Subproject SY tem No. 2i Lo Amount Q E 1 Abulog Extension 20 5,600,541.23 Region 8 - Leyte Subproject Binahaan 13 3,946,267.39 (South) Balire 1 1,501,233.53 (Danao Dam) TOTAL 34 11,048,042.15 6.01.3 Small Package Contracts Small Package Contracts were civil works prosecuted by small-time contractors after unit price determination of items of works had been established by the NIA following price determining bidding conducted by the different ProJect Offices. It involved aggregate contract amount not exceeding Peso 50,000 per package. This limit, However, was later increased to Peso 100,000 per pakage as per MC 1 18, S 1985. Most of these contract works were carried-out using labor- base intensive method. During implementation of the NISIP 1 project, several small package contracts were carried-out to hasten prosecution of various project features. These include - 62 - construction and/or modifications of small irrigation canal and drainage structures; surfacing of various roads along canal embankments; supply of concrete aggregates to various force account works; hauling of borrow and road surfacing materials; desilting of canals and drainage; supply of R.C. pipes; construction of canal lining; construction of main, supplementary and drainage ditches and prosecution of other civil works with an estimated cost not exceeding Peso 100,00 per contract/package. Since small package contracts were labor intensive, short duration and did not require large investment. performance of the contractors were generally satisfactory and encouraging as compared to other contracts. Small Package Contracts Com2leted Under NISIP I. Region 1 - Ilocos Subproject Irrigation System No. of Package Amount Contracts (Peso) Bolo River 164 1,506.510.53 Pasuquin 436 4,641,121.72 Laoag-Vintar 953 16.971,575.78 Dingras 161 2,451,158.70 Cura River 93 1,252,716.46 Bonga Pump 275 4.335,791.96 Abra Pump 144 2.912,035.59 Sta. Maria-Burgos 362 3,984.361.11 Sta. Lucia-Candon 321 4,580,544.24 Tagudin 245 2,438,394.74 Amburayan 1,114 8,848,220.53 Masalip 285 4,293,084.41 Sub-Total 4,553 58,215,515.77 - 63 - Region 2 - Cagayan Subproject Abulog River 420 10,516.298.32 Abulog Extension 13 2,956.505.82 Sub-Total 433 13,472,803.82 Region 8 - Leyte Subproject Binahaan (Norte) River 205 2.478.434.15 Binaha-an (Sur) River 598 23,615,738.04 Guinarona River 203 1,167.575.57 Tibak-Soong River 146 1,863,307.77 Hindang-Hilongos - Balire River (new) 38 1.008,128.13 Gibuga River (new) 14 211.348.02 lbawon River (new) 27 409.483.37 Das-ay River - 6.02 Force Account Works Initial operations on the implementation of the National Irrigation Systems Improvement Project started as early as 1977 when teams of technical men were fielded into the various proJect areas to undertake pre-construction works. These activities included field engineering surveys and investigations, collection of hydro-meteorological and climatological data and construction materials survey and exploration. With the signing of ther Loan Agreement No. 1414 between the World Bank and the government (GOP) on May 13. 1977. formal implementation of the project commenced. The effectivity of the loan took effect on August 12, 1977. NISIP I has three (3) distinct sub-project areas falling into the jurisdiction of the NIA Regional Offices of Region I in Urdaneta. Pangasinan located along the northern coast with twelve (12) irrigation systems. Region 2 - 64 - in Cauayan, Isabela located on the Northern part of Cagayan with three (3) irrigation systems. and Region 8 in Tacloban, Leyte located at the Eastern Visayas with nine (9) irrigation systems. Prior to the firming up of the overall project organizations, recruitment of additional project staff and key personnel, technical men from the office of the irrigation systems of the different regional offices, contributed in the gathering of data. Following the establishment of the different divisions, project activities undertaken were planning and programming, design and preparation of plans for the various projects and service facilities. Preparation of tender documents of irrigation and drainage facilities to be undertaken through local minor contracts were given due emphasis and earnestly pursued. Due to the limited capability of the project offices, design and preparation of plans and bid documents for the diversion dams and other major civil works were undertaken at the NIA Central Office. In Region I, actual rehabilitation and improvement of the systems started in 1977 and was programmed to be completed by the end of 1983. Due to the inclusion of some items of work, Projects were rescheduled for completion by 1984. The project is divided into three (3) features, namely: (a) proJect facilities, (b) irrigation and service facilities, and (c) roads and other appurtenant structures. During the implementation of NISIP in the region, simultaneously all the systems comprising Ilocos Norte namely Bolo RIS. Cura RIS, Bonga Pump #2, Laoag-Vintar IS, NMC Pasuquin Extension and Dingras RIS started with the different construction works by force account. Same is true to Ilocos Sur ProJects namely Sta. Maria-Burgos RIB, Tagudin RIB and Sta. Lucia RIS and, in La Union we have Masalip RIS and Amburayan RIB. Among the first activities undertaken were the renovation of the existing permanent buildings and its extension, construction of the recreational facilities, guard house and perimeter fence and procurement of office facilities. Almost all of the construction of project facilities were done by small package contract. In 1979 regardless of the effect of oil crisis in the country, construction works were still in progress. - 65 - The three (3) irrigation systems in Region 2 namely Pamplona, Banurbur and Abulog Rehab and Extension commence work in 1978. Initial work was concentrated in the renovation/improvement proJect facilities. Construction of irrigation and drainage facilities in Abulog Rehab, Pamplona and Banurbur Systems were mostly done by Force Account. At Abulog East Extension, works were undertaken mostly by major/or local minor contracts. At Region 8, Leyte subproject, the first please of work was on the construction of project headquarters and facilities by force account. The construction of irrigation facilities was only started in early 1979 regardless of the oil crisis in the country. 6.03 IBRD Supervision Mission During the implementation of the National Irrigation Systems Improvement Project (NISIP) I., several IBRD supervision missions visited the project area to oversee and ascertain progress in the prosecution of the various project features and components, update the cost estimates and project implementation schedule, confirm compliance with the various loan covenants and thresh out project implementation constraints and recommend solutions. Notable actions made by the Bank as well as the various supervision missions in the interest of the project were: 1. Reviewed and approved all civil works and supply contracts which were formalized through international and domestic competition bidding. 2. Provided detailed information on the procedures to be followed to effect timely withdrawals of the loan proceeds. 3. Reviewed and recommended approval of NIA's requests for disbursements of the loan proceeds. 4. Reviewed and recommended approval of NIA's requests for extension of the loan closing date. 5. Reviewed and recommended approval of NIA's requests for extension of the project implementation schedule. - 66 - 6. Followed up progress in the implementation of the civil works contracts. 7. Followed up progress in the implementation of various supply contracts covering the procurement of construction and maintenance equipment and vehicles from abroad. 8. Followed up progress in the implementation of force account works. 9. Followed up progress in the implementation of various programs and activities on water management and agricultural development of the irrigation service area. 10. Recommended favorable advice in the overall management and implementation of the project. 6.04 Project Personnel Presented hereunder is the breakdown of personnel used in the project from the start of implementation in August 1977 up to completion in June 1986. Number of Personnel Period NIA Contractor Total EJmPloyed Emp loyed December 1977 324 324 December 1978 776 776 December 1979 987 - 987 December 1980 1,279 101 1,380 December 1981 1,437 546 1,983 December 1982 1,476 666 2,142 December 1983 1,656 528 2.184 December 1984 1,465 230 1,695 December 1985 1,313 - 1,313 June 1986 1,261 - 1,261 - 67 - VII. IMPLEMENTATION SCHEDULE 7.01 Orisinal ProJect Implementation Schedule As envisioned during appraisal of the project, the National Irrigation systems Improvement Project Package I, Loan No. 1414-PH would be implemented in four and half (4 1/2) years including detailed engineering and pre- construction works. Implementation was scheduled to commence in July 1977 and would be completed in December 1981. The irrigation works would be carried out in three and one half (3 1/2) years, the land consolidation pilot project, and on-farm facilities studies in four and one half (4 1/2) years. In the Cagayan Subproject area, pre-construction works and improvement of 0 & M buildings and other facilities would commence in July 1977. Rehabilitation and upgrading of existing irrigation and drainage facilities and construction and development of extension areas would be started during the first quarter of 1978, reach peak operations during the dry seasons of 1979 and 1980 and gradually taper off towards completion in June 1981. The Leyte Subproject area which include the schistosomiasis control program implementation would commence in July 1977. Improvement of existing irrigation and drainage facilities in March 1978. reach peak operations in the dry season of 1979, 1980 and 1981. Construction and development of extension/new areas would be started in the dry season of March 1979 and would end in August 1981. The health aspect of the schistosomiasis control program would commence in July 1977 and would end in December 1981. 7.02 Actual Project Implementation Schedule The National Irrigation Systems Improvement Project I was actually carried out in nine (9) years time including detailed engineering and pre-construction works. Actual implementation was started in July, 1977 and completed only in June 1986. The actual implementation is longer by four and one-half years. - 68 - Numerous delays were encountered during the construction phase and other related activities in both the force account and contract works. The original implementation schedule was revised two times and the projected completion date was extended in the process from December 1981 to December 1983, subsequently to December 1985 and finally to June 1986. Presented in Figure 7.01 is the overall project implementation schedule showing the original program the second revision with proJected completion date scheduled for December 1984 and the actual implementation schedule of the various proJect features. 7.03 Cause of the Delays on PXolect Tmplementatio Major factors which seriously affected smooth and timely implementation of the project are as follows: 1. Adverse weather condition in the proJect area which rendered various areas of operation unworkable and inaccessible for certain periods during the implementation of the project. 2. Natural calamities such as typhoons and sever floods and earthquake, which caused extensive damages to completed and on-going works. Restorations and/or repairs of damaged facilities greatly affected the operations of both the government and contractors forces. 3. Occasional shortage of basic construction materials and supplies, such as cement, fuel and oil, which greatly affected implementation of both force- account and contract works. 4. Peace and order situation particularly in Region II. 5. Financial constraints during the course of proJect implementation especially in the early years which brought about the reduction of work forces in the government. On top of this, proposed contract works were deferred or cancelled. 6. Reluctance of farmers to cooperate especially in the construction of farm-level facilities and drainage ditches especially in the schistosomiasis-endemic areas. - 69 - 7. Only minimal rehabilitation/upgrading activities of existing irrigation systems could be undertaken during crop seasons to minimize interruption of irrigation service inorder to give farmers at least two (2) cropping seasons in a year. This situation was not considered serious±y during appraisal of the project. 8. Delay in the tendering of the contract for the Abulog Dam construction in Region 2. 9. Delay in the implementation of the drainage construction on schistosomiasis endemic areas in Region VIII due to revisions of construction plans as a result of the requirement of the World Bank for NIA to hire a drainage consultant, who will assist in drawing up the plans for agro-drainage and for drainage on schistosomiasis endemic areas. Delay was also due to lack of Philippine experience in the planning and design of Schistosomiasis Control works, implementation of this component suffered several set backs. - 70 - VIII. PROJECT COST 8.01 Cost Estimates The National Irrigation Systems Improvement Project - Package I (NISIP I) was estimated at project appraisal to cost a total of P 804.00 (US$ 107.20) million of which P 375.0 (US$50.00) million representing 47 percent. would be funded from an IBRD loan and the remaining P 429.00 (USS 57.20) million from local counterpart funds. The overall cost estimate includes the estimated cost for the various project components amounting to P 549.84 (US$ 73.31) million and provisions for physical contingencies and expected price increases involving P 97.28 (US$ 12,97) and P 156.88 (US$ 20.92) million respectively. The original project cost for the various project components amounting to P 549.84 (US$ 73.31) million included the cost for the rehabilitation and upgrading of twenty four (24) existing irrigation systems and development of extension areas amounting to P 429.53 (US$ 57.27) million, strengthening regional 0 & M capability amounting to P 10.58 (US$ 1.41) million, land consolidation pilot project involving P 4.80 (US$ 0.64) million, on-farm facilities study involving P 5.78 (US$ 0.77) and P 99.15 (US$ 13.22) for schistosomiasis control program. The original quantity estimates for the modifications/improvements of the existing diversion dams and intake works, rehabilitation and upgrading of existing irrigation and drainage facilities, roads and construction/development or extension/new areas were based in the feasibility study prepared for the proJect, field surveys and preliminary designs and drawings. Unit cost for each work item was based on the prevailing price indices in 1977 for construction materials and supplies, labor and equipment and NIA's experience in the implementation of other Bank-assisted projects in Luzon,, adjusted to the local condition in the provinces of Ilocos, Cagayan and Leyte. .Unit prices for equipment, materials and supplies were based on quotations received by the NIA. The foreign exchange requirements were based on bids received by NIA in the same period for construction equipment and vehicles. Detailed breakdown of construction equipment and vehicles were based on the equipment requirement of other NIA projects. For physical contingencies, an adJustment factor of 25 per cent was applied to the base cost estimates of - 71 - civil works irrigation systems, 10 percen., to 0 & N buildings and strengthening regional 0 & M capability; 20 percent to land consolidation pilot project, on farm facilities study and on environmental sanitation and snail control under health component; and 25 per cent was provided to the civil works of schistosomiasis control program. To take care of expected price increases over an implementation schedule of five (5) years, a 24 percent adjustment factor was applied to the total project cost. During the implementation of the project, the "Good for Construction" drawings, results of competitive biddings, current salary pay scale of NIA personnel and the prevailing cost of material, labor, fuel and oil, and equipment as well as cumulative actual costs incurred up to that period of time, were the basis in updating periodically the project cost estimates. In 1977 the Total Appraisal Estimates amounted to $50,000,000.00 & P429,000,000.00. However, the Actual Expenditures in June, 1986 resulted to $38,205,776.25 and P385,977,632.60. 8.02 Aptual Progegt CG0t and Exoanditures At project completion in June 1986, the actual cost amounted to Peso 888.5 M (US$ 76.0) million which is about 71 percent lower than the estimated original project cost. Presented in Figure 8.02 is the summary of expenditures from 1977 to 1986. 8.03 Da.velygmnt Cost The resulting actual development cost of irrigation and drainage facilities including roads and other related civil works within the twenty four (24) sub-project areas are as follows: The development cost was derived from actual field quantities and corresponding unit cost per item of work. The cost of procurement of construction equipment and vehicles, pre-construction and detailed engineering works, and proJect construction and 0 & 1 facilities were not included in the calculation. Presented in Volume II of II is the detailed information on the derivation of the development cost of every subprojects. -72 - 8.04 Cause in the Decrease of Project Cost 1. The expected service area of 49,400 hectares to.be developed and provided with irrigation and drainage facilities was reduced to 44.409 hectares. The reduction of about 4,991 hectares or 10 percent from the total service area as appraised has correspondingly reduced the overall development cost. This reduction in area was partly due to the current urban development and industrial expansion within the service area and consequential conversion of some portion into sites for residential and factory/industrial plants. Unworkability of some project sites due to the peace and order situation in Cagayan sub- project was also encountered. 2. The construction of the proposed Abulog Dam had been deferred under NISIP I as a result of the incident, where unidentified lawless elements attacked the campsite of the contractor. The contract with Dragages Et Travaux Publics amounting to about P 70M was mutually terminated in view of the uncertainty of continuing the work under the present situation. 3. Actual expected price increase incurred during project implementatiion were less than those provided in the project appraisal. FPI;UR 8.01 SIRAR OF ENITURES FRON Im - 1986 : S &71 : 49I8 1 19?7 9 PARTICULAR :- FOREIGN LOCAL I FOREI6N : LOCAL : FOREIIN LOCL : : US WLOe:I USUAR I tSOOLLR I US DOLAR tIS OOLAR USOOLR : S 0DIL : (1) 1 (2) (3) t(4) )(7) 11- CI ua a cogw~~ ~ ~~~~~~~~~~ It a a) DIVERSION NM 1,736.50 8,324.89: 13,040.54 33,624.36 1 30,435.84: 90,279.45 : b) AIN & SCOA CAAL SYSTEN I 1,99.81 9,557.85 1 14,%5.04 1 38,566.61 16,936.20: 218,361.09 : : c) AIN AND SECDA DRAINAGE SYSTEM'R 47.66 1 228.22: 37.54 921.90 1 2,023.29 1 2,126.34: d1 SERVICE,ACCESS AND FARR RAeDS : 605.12: 2,997.65 4,539.19 11,104.07 1,296.9 25,614.141 a) ON-FARN DEUELOPEW 1 447.64 2,144.50 3,359.71 9,66.27 19,006.92 4,08.06.3 I W0-TOTAL - A : 4,935.10 23,153.11 36,261.02 93,497.23 69,699.29: 365,369.41: : B- FORU AC:: :: I a) DIVERSION MOMKS a 2,093.97i 5,01.: 19,.58 31,337.29 1 :i MAN & SECOND CN mTEN I : 56,941. I 146,90.16 201,703.341 520,999.72: c) MIN AND SECOA DINA SYSMTE 27,017.98: 1,2.8: 114,3.06 295,404"95 : d) SERVICE,ACCESS AM FAN MM I 55,122.08 142,117.41 343,132.44 886,311.09: I s) Ot-A DEVEl T I : 1,515.21 3,908.4 1",753.65 1 492,716.668 f t) MATER NAIUN STATIINIS I I : 141.57 1 365.186 1,189.31-1 3,064.24: 1 9) GATEKEEPRS WAR 220.85: 1,057.55 I : 2,776.7: 7,172.0 1 I bi TO AIC SUE & RAPING 1 17,221.989 82,468.31 1 48,450.44 t 124,9J7.91 : 70,746.66 182,736.67 1. .) RRINT OF NAY - - - I - 1 1,975.65 5,103.10 : I ;) OPERTION a AINTEN A UILDINS 1 - I - 1,527.74 3,940.81 1 21,218.23 I 70,304.69: I k) FIELD OFFICES : 24,706.25: 244,294.76 1 41,047.42 200,670.31 I) OPERTION NAINT EGUIPN - - 265.41 : 1,956.01: - : 9,410.01: : GUM-TOTAL - 8 17,442.83 1 83,525.96:2 27,701.98 1 743,605.06 11,014,143.13 2,704,433.35 1 : T 0 t A L - I : 22,277.93: 106,678.97: 324,043.00 8937,102.29 1,0B4,42.42 1 3,089,922.76: t : : t ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~~~~~~: : : a :11- STIIENGIENBIN REGIONAL OETIN AND : 39.06 100.76 I 6,013.17 15,532.?9: I RAINTEN CAPABILITY : : a : a a :111- INIPUTOWlPUt NONITORINS PUIRA : : : 1 30.76 227.12 1 IIV- SOIISTGIIRIASIS CONTROL PRlOAa : I a C Mf MU Is 135,501.36 43,709.66 HIEALTH COMIIt I : : 7,705.45 19,903.19 IV- PROCLET IV OVEREN : 50,513.71 132,212.50 5,179,400.01 1 57,985,334.66 11,479,705.59: 55,096,820.24: I :1 :It:I IVI - IEIERliL E0BINEER1NG, SUPERVISION A11 : 5,045,961.60 1 : 5,495,097.44 : 6,456,228.789 : NINlbtTI :N : a : a : * : a a I T O T A L -11- VI 1 50,513.71: 5,178,174.10 5,173,439.07 1 63,410,532.86 1,626,956.65 1 61,632,429.76 1 : 61UIWID TOMAL 1 70,791.64 5,264,953.071 5,503,482.07 1 64,317,635.17 1 2,713,399.07: 64,722,252.54: - 74 - t2: 1980 : 1981 1982 PARTICULAR I- : FUEIIS I LOAL I FOREIII I LOAL FRIN I OCL SE : t 118DOLAR I USD OIILUR U IIOLULAR : US OLLA US 01LAR US OLAR : (:) 2S (9)1t (101 : (1111 : 12) (13) : (14) : : S S: - I- CIVILURKS 2 2 RI : - CONTRACT : 2 2 : S : : : . DIVERSION lORKS 2 11,559.45 : 133,280.24 11,375.6 189,M.25 2 194,893.96 2 79,09.53 2 b) MAIN I SECONDARY CAL SST 5,904.01 2 152,949.44 2 15,81.79 217,801.3 1 2 67,99.43 1 380,010.41 I c e) RAIN AND SECONDAY DINASE 5113 1,403.4 9.3 1,897.312 2,120.88 6,623.22 S 180,7.23 2 2 d) SERVICE,ACCESS N FAUN ROADS 4,608.24 t 17,941.24 11,31.41 25,54.4 S 5,7. 62,447.94 2 ') UFAN DEVEAOPN 2 13,104.40 34,327.56 17,823.512 48,882.76 60,22.06 1 179,361.88 2 SUP-TOTAL - A 2 36,659.85 1 339,7.95 1 65,359.67 1 464,145.76 : 384,295.072 1,212,34.992 : B- FORCE ACCOUlNT 2 S 2 a) DIVS1ION OIS 2 20,104.74 2 52,939.9 2 21,289.42 58,641.76 49,368.55 144,625.17 1 S b) RAIN & SECONDARY CANAL SYSIENI 241,09.84 552,912.92 2 254,813.02 2 701,802.46 146,657.06 S 429,631.86 2 I c) RAIN AND SECONDARY DRAA 81STENI2 45,403.72 119,343.66 2 31,740.302 07,429.66 2 53,266.35 156,043.7 2 2 J) SERVICE,ACCESS AND FAR MM R 156,354.302 259,427.2B 168,335.09 113,679.01 2 106,447.05 2 311,936.63 2 : e) Il-FAM DEVEL0OFENT : 80,975.26 233,601.62 S 110,351.54 303,963.32 54,45.25 S 159,12.01: 2 f) TER NANAIW STATIONS 2 4677.95 12,322.012 10,427.052 21,7.31 2 12,791.43 t 37,472.49 I 9) 6AT ERS QUARTERS I 4,810.23 12,643.69 2 3,64.86 2 10,149.952 13,559." 2 39,723.92 2 bi) TllltlMIC SURVEY PI S NPPINS 2 7,420.07: 2 19,524.62 10,911.7 2 30,056.33 67,625.70 2 256,699.42 2 i) R11NT OF MAY 2 13,635.93 S 35,041.78 2 14,163.81 39,014.21 15,354.13 2 4,979.12 2 : 1) OPERATION & RAINTENANCE 9UILDINBS 2 6,010.01 2 15,799.41 3,517.40 9,88.68 2 46,263.742 135,529.63 2 2 k) FIELD OFFICES 2 9,70.68 2 22,90.77 2 12,852.512 35,402.24 1 53,847.98 2 16,845.77 2 1) OPTION & AMAINENCE EIIUWIT S 1,695.45 12,2.84 18,460.72 2 50,905.14 2 3,266.57 2 120,336.98 S : SUB-TOTAL - 0 2 598,50.?9: 1,349,987.622 660,567.46 2 1,469,533.07 642,898.80 2 1,955,238.732 : 2 : :. : 2 2 2 2 T 0 T A L - I 2 635,510.63 1 1,669,9715.47 725,927.13 92 9 1,953,678.93 21,027,183.87 2 3,137,583.72 211- STREN8THENINS E6IONAL OPERATI AIID t 2,576.21 2 6,71.57 2 902.54 2 2,372.33: 6,106.912 120,336.92 2 I flNTNCE CWNLIUTY S S S Ill- IlPUT-OUTw T IONITORIt Pl06R01 2 32.26 2 242.31 2 2 1,674.72 14,017.44 ,1V- SCIIISTOSOMIASIS CNMOL PU 2 2 2 2 : I CIVIL NOVMS 2 105,680.32 30,616.122 127,064.81 43,57.61 119,474.32 2 216,339.20 I : IEAlTH COIPUENT 2 15,608.75 121,045.61 2 2 2 2 IV- 1ROCU OEENT 21,751,061.85 211,111,103.01 2 4,93,927.17 2 37,065,542.83 2 1,564,509.912 9,506,387.692 t29 - SEA ESIERINB, SU ISION ADI 2 6,635,211.84 2 7,375,480.64 2 2 6,466,696.39 : 2 ADNINISTRATION Is 22 I 0 TOt A L - 11- VI 11,874,959.39 217,905,790.46 5,111,094.52 2 44,486,"3.412 1,91,765.86 2 16,325,M.70 2 I amIID TOTAL 12,510,470.02 219,595,765.93 25,837,821.65 46,440,6n.242 2,718,949.73 2 19,463,361.422 2 -- 2 --2*-2-- - - 75- I 1983 1984 1 1985 I I PARTICULAR : - - I FOEI6 LOCAL FOEIN I LOCIL : FO P11181: LOCAL I ________________I Us OUAi I USDOLLR I U5sLLM : US DOLLAR US 01M W USUIRL : ( {15) 1 (IA) I (17) 1 (18) I (19) 1 (20) 1 t2l) I II - CIVIL VW I I I I A- OlTRCT I : I a) 1I9IOI3KS a443,75.40 1 2,768,797.55: 138,183.60 1,363,202.11I 122,905.37 11,160,061.8Ui I b) 11*1M 6 SECODY CAL SYST 270,410.21 1 2,"5,166.26 1 14,946.02 4 4,146,693.15 795,249.00 16,279,01.18 I c) lAIN RI ECNA IAINK 6991E11 151,970.83 1 602,906.41 1 128,774.51 1 40,031.3 t 158,765.62 t M,696.55 ) d}SERVICE,AWS8 ANIDFAlN Al0 1 77,831.33 1 323,374.97 1 ",013.48 1,370,418.34 1 130,515.%9 1,519,662.15I I .) ON-FAM DEVELOPNT I ,590.27 1 618,M.95 1 134,838.56 1,305,995.57 I 149,271.68 1,623,4.78 I I t I Is a ISW-TOTAL - A : 901,678.10 1 7,218,969.14 1 64,756.17 8,676,.53 I 1,356,707.63 21,312,071.5 1 a , I ~~~~~~~~~~~~~~sIs I 8-FOURI EACINT I I DIVERSIN IS 1 243,150.04 1 2,233,895.53 I 43,116.61 1 713,414.01 1,356,243.14 1 3,144,411.021 : b) il & SCOA CANAM 1, 518,674.36 3,898,36S.99 76,093.05 1 2,370,530.25 1,224,563.82 2,587,750.9: I c) PhIl AND SECOAY DMAINAKI 811 140,426.35 1,867,670.46 907,382.832 4,263,595.67 343,143.66 1 680,94.28 ) SEVICE,CCES ANS FAN ROADS : 143,007.11 1,901,"4.56 ,383.51 1 2,33,326.71 1,928,389.42 1 2,898,938.70 1 I a) fARN DFLPENT 1 177,296.56 11,358,044.25 1 13,509.48 1 1,681,180.89 1 249,351.41 624,212.32 1 I #1 lATER IAEN ST*I3 1: 9,361.70 11,321,510.611 38,781.03 1 610,815.9 1 9,57033 1 220,289.74 1 : g) SATREKE S :UARTERS I 12,758.53 169,680.32: 4,461.80 1 118,160.07 1 31,069.31 189,403.95: I h) TUoUPIIC 889v a NAPPIN 1 4,094.03: 65,00.60 3 22,417.321 689,206.73 I 160,958.51 1 368,840.52: I i) R1SNT OF NAY I 101,048.27 1 1,343,941.99: 63,544.87 1,086,617.22 I 126,31.91 1 150,389.751 6 j) OPERATION I PINT C UILDI8 1 91,011.71: 1,221,05.741 79,760.59 1 1,671,705.8 1 144,637.25 : 226,M.084 1 i ki FIELD OFFICES 1 56,867.76 1 54,024.37 1 1,037.53 I 79,150.011 301,085.32 1 69,099.U 1 I 1) OIIERATION A ATICE EOUIPNI 105,705.53 1,405,83.55 110,163.97 1 1,893,425.83 413,264.09 778,331.85 1 - SiWFITOTAL - 8 :1,6N,001.9 116,841,208.97 1 2,319,712.58 11782,529.26 6,378,6.17 12,539,105.3 1 T 0 1 A L - 1 12,596,680.04 124,060,178.11: 2,966,468.75: 26,418,869.79 17,735,345.80 33,851,176.91: III- STREII8IIENI RIEIONAL O TION ANID 7,906.63 1 105,158.18 1 15,837.03 I 498,626.50 1 9,523.59: 80,463.10 1 I NAI IEE CAPILITY I I I It~~~~~~~~~~~~~~~~~~~~~~~~~~ I Is :111- NPU-OUTUTT -l ITOIIN8 PROEM 1 I 408.51 7,353.00 1 7,210.54 343,349.57 1 119 MISTfhNASIS CONRO PR0831 It s1 1 I CIVIL 1 85,714.29 11,389,130.38 555,555.56 1 2,885,474.45 1 850,000.50 : 3,470,815.07 1 1 ALTMWCON TW I I I I 1 I I~~~~~~~~~~~~~~~~ I * S I S S S S~~~~~~~~~~~ 1 IV- FROCURED l 6OVERUT 1 170,450.87 1 2,104,330.25 1 406,763.35 1 5,705,422.60 1 11,540.43 1 230,543.18 1 1 ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~1 1 i 5 I :VI - 6EIEIUL ESI6EER1INS, SU8ERVISION AUD! 1 7,425,792.30 :1 6,634,381.66 1 6,704,038.02 1 I ANINISTRMTION I I I t : : . - 7 0 T OAL - II- Vl 1 264,011.79 111,024,411.17 1 978,537.45 115,731,258.21 1 878,274.56 10,829,208.9: 1 6RIIIID TOTAL 12,860,751.83 135,084,589.28 1 3,945,006.20 1 42,220,128.00 1 8,613,620.36 1 44,680,385.85 1 :-- t t------ |---:-- : l :~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ - 76 - 1 9 8 6 T O T A L P A R T I C U L A R - ------ - - FOREI6S LOCAL : FOREIGN LOCAL :_________________________ IUS DOLLAR I US DOLLAR I US OLLAR i US DOLEAR :22) : (23) : (24) (25) (26) * a ~~~~~~~~~~~~~~~ ~~~~~~ ~~ - -- a --- 1 -CIVI VMRKS I A- CONTRACT I l : a) DIVERSION VORMS 169,077.59 :1,999,647.79 I1,144,086.11 81,326,020.61 : b RAIN h SECONDARY CANAL SYSTEN : 301,840.46 : 5,547,588.09 1,637,126.35 29,895,715.46 : : c) RAIN AND SECONDARY DRAINAEE SYSTEMI 21,423.48 154,913.51 : 373,486.94 : 2,065,142.771 d) SERVICE,ACCESS AND FARR ROADS 1 114,605.85 1,068,952.52 : 498,675.93 : 4,428,761.51 : e) ON-FARM DEVELOPMENT : 24,034.96 : 426,410.23 479,848.91 4,296,977.92 : : SUB-tOTAL - A 630,982.34 : 9,197,512.68 : 4,133,224.24 a 49,013,412.24 : B- FORCE ACCUNT : : i a) DIVERSION OKS : 197,161.81 11,439,726.25 1,952,461.t8 8 7,824,397.37 : b) MAIN & SECONDARY CANAL SYSTEM 707,508.84 1 4,978,734.66 3,428,054.66 116,187,692.01 : cl NAI AND SECDARY DRAINAGE SYSTEM: 476,098.94 : 5,322,026.86 2,138,845.19 : 12,862,171.21 : d) SERVICE,ACCESS AND FARN ROADS : "9,137.34 : 1,930,699.70 :3,899,308.34 11,078,401.09 1 e AON-FARM DEVELOPMENT : 131,153.63 :1,554,216.94 11,077,256.99 1 6,412,163.51 1 f) MATER MASENAMENT STATIONS : 104,931.51 :2,043,541.16 : 371,878.78 1 4,278,202.73 : : g) GATEKEEPERS QUARTERS : 67,764.30 11,319,709.74 : 141,106.63 : 1,868,309.66 1 h) TOPOSRPIC SURVEY & MAPPING : 63,326.21 11,233,277.94 1 493,980.66 : 3,052,891.18 : il RIGHt OF MAY - : - : 336,084.47 1 2,705,887.97 : I j) OPERATION & MAINTENANCE BUILDINBS 1 320,4"9.47 : 4,341,727.18 721,246.93 : 7,696,164.86 1 : k) FIELD OFFICES 1 7,925.40 1 154,347.16 5 578,078.85 : 1,478,926.03 : : 1) OPERATION & MAINTENANCE EQUIPMENT : 178,01O.63 1 347,289.61 1 830,852.37 4,619,271.87 : a 3SUB-TOTAL - B :2,353,519.08 :24,665,297.19 :15,969,155.75 : 80,064,469.49 a T 0 T A L - I :2,984,500.43 :33,862,809.87 120,102,379.99 1129,077,876.70 1 :11- STRENBTNENINB REGIONAL OPERATION AND 1 1,514.35 : 31,044.10 : 50,419.79 : 860,406.31 : : MAINTENACME CAPABILITY :111- INPUT-OUTPUT MONITORING PROGRAM 1 53,225.00 11,132,866.23 1 62,581.81 1 1,498,055.67 1IV- SCHISTOSOMIASIS CONTROL PROGRAM : : : : : I CIVIL VORKS : 390,243.91 :1,920,317.51 : 23,314.20 1 141,748.90 1 HEALTH COWMONENT : a a : : :V- PROCURENENT BY GOVERNMENT 115,597,845.80 1178,937,704.82 1 IVI - GENERAL ENGINEERINS, SUPERVISION ANDI 1 7,220,951.73 I : 65,461U,80.45: I ADMINISTRATION I : : T 0 T A L - II- VI 444,983.26 110,305,179.53 118,103,396.26 1256,899,975.90 I : EM TOTAL 113,429,483.68 - : 1 - : - - 0 t t GRAND TOTAL 13,429,483.68 144 ,467 ,989.4 U 38,205,7n6.25 1385,977,632.64 S a-- - - - - - - - _ _ _ _ _ _ _ _ _ _ _ _ _ - a a :.. : _ _ - _ _ - - _ 5 _: - 77 - IX. FINANCING 9.01 Funding for the Foreism xahnnae C=gnent The foreign exchange requirement for the implementation of the National Irrigation Systems Improvement Project - Package I was provided from a loan from the International Bank for Reconstruction and Development (IBRD). The total amount of loan granted to the Philippine Government under Loan Agreement No. 1414 PH was US$ 50.00 million. This accounted for about 47 per cent of the estimated original total project cost of US$ 107.20 million. The loan is payable within a period of twenty one (21) years including a five (5) years and five (5) months grace period. It bears an interest rate of eight and two-tenths percent (8.20%) per annum on the principal amount of the loan withdrawn and -outstanding from time to time. Amortization of the loan on semi-annual payments commenced on May 1, 1982 and will continue up to May 1, 1997. The loan was made effective on August 12, 1977 with the loan closing date scheduled on December 31, 1983. This was later extended to December 31, 1985 and subsequently to June 30, 1986 to permit further availment of the balances of the loan proceeds. As embodied in the Loan Agreement, the proceeds of the loan were allocated to various categories with corresponding percentages of eligible expenditures to be financed under each category. Initially, the proceeds of the loan would cover the foreign exchange cost of US$ 4.00 million for mobilization of construction equipment and vehicles for civil works contractors; US$ 24.50 million for other civil works; US$ 16.00 million for equipment, vehicles and other commodities; US$ 0.30 million for consultancy services and overseas training; and US$ 5.20 million for physical and price contingencies. Disbursements for equipment, vehicles, and other commodities would be made at the rate of 100 percent of the foreign exchange cost of directly imported goods, 100 per cent of ex-factory cost of locally manufactured goods and 65 percent of the foreign expenditures for imported commodities purchased locally. For civil works contractor's mobilization of equipment and vehicles, disbursement would be at the rate of 100 percent of the foreign expenditures and for other civil works, - 78 - withdrawals would be at 95 percent of certified monthly progress payments and/or expenditures. Disbursements for consulting services and overseas training would be at the rate of 100 percent of the foreign expenditures or 60 percent of the total payments. During implementation of the project, re-allocation of the loan proceeds to various categories and adjustments in the corresponding percentages of expenditures to be financed were requested by the NIA and later authorized by the Bank in view of unavoidable changes actually incurred as the work progressed. At project completion in June 1986, a total of US$ 38.213 or about 76.4 percent of the total amount of the loan proceeds was disbursed/withdrawn. The undisbursed balance of the loan proceeds amounting to US$ 11.787 N was cancelled by the Bank. A comparison of the original and final allocations, and actual disbursement of the loan proceeds and the corresponding percentages of expenditures for cash item financed in the categories are presented in Table No. 9.01. 9.02 Withdrawal of Loan Proceeds As provided for in the Loan Agreement, the Bank shall make available to NIA the proceeds of the loan upon the terms and conditions satisfactory to the Bank and the funds maybe withdrawn only to meet the expense in carrying out the proJect as they are actually incurred. Withdrawals from the loan account was usually done either under the reimbursement procedure or direct payment system. In the reimbursement procedure, the NIA submits to the Bank a formal application for reimbursement of payments made by the NIA for goods which have been delivered or services that were already rendered. The payments may have been delivered as services were already rendered. The payments may have been disbursed for completed transactions or progress payments on a civil works contract. Under Loan Agreement No. 1414 PH, 35 percent of the total accomplishment for civil works is eligible for reimbursement by the Bank. This percentage of the expenditures to be financed was later adJusted to 95 percent upon proper representation with the Bank in 1983. - 79 - Under the direct payment system, the NIA submits an application prior to paying for the goods or services and the Bank, if agreeable, makes direct payment to the supplier or rendered services in NIA's behalf. The formal application is supported by a copy of the contract or purchase order under which the payment is to be made. If payment is to be made for a contract on the basis of work performed, an engineers certificate or progress report should be submitted showing that the payment has become due. For goods procured from abroad, evidence of shipment, together with a copy of the final invoice of the supplier is also submitted to the Bank. 9.03 Fundina for the Local ComDonent CoAt The local component cost for the implementation of the National Irrigation Systems Improvement Project - Package I was funded by the Philippine Government from authorised annual budgetary appropriation amounting to Peso 385,517,632.00 broken down as follows: Particular Year Amount a) Presidential Decree 1062 1977 P 10,000,000.00 1978 60,000,000.00 1979 78,360,000.00 1980 29,700,000.00 1981 43,107,000.00 Sub-Total ----- P 221,167,000.00 b) Batasang Pambansa 1982 P 94,000,000.00 1983 39,530,000.00 1984 4,760,000.00 _____________ Sub-Total ----------------- P 138,290,000.00 c) Presidential Decree 1177 1985 7,460,632.60 d) Batasang Pambansa 879 1986 9,600,000.00 e) Executive Order No. 87 1987 9,000,000.00 Total ----------------- P 385,517,632.00 - go - Table 9.01 Comparison of the Original A Final Allocations, Actual Disburseuent of the Loan Proceeds and the Corresponding Percentages of Expenditures I LOAN ORIGINAL I I REVISED Z ACTUAL I CATEGORY tA UOCATIONS I OF IRE-ALlOCAI1ON I OF I :: REBURSENENrTI IREIEURSENENTIREIURSEENT tlA- obilizatian and I Construttion equipmeatsO4,000,000.00 I100 #4,000,00.00 100? 11775,759.42 for civil works I Contractrs IBI- Other civil works I a I (including materials I 24,500,000.00 35? 124,500,000.00 95? 121,839,441.91 1 I used in force I I I account vork) a -ll- Equipment and I Naterials 16,000,000.00 316,000,OO.00 I 115,597,845.91 a) direKtly iported - i 100I - 100 - bh locally eanufactured! - 1002 - 1001 I I c) imported goods I procured locally I - 65Z - 65 - -!II- Technical Assistance 300,000.00 IO0 Z 300,000.00 100?o - a Unallocated 5200,0000. 5,200,000.00 Pt T$350,000,000.00 $50,000,000.00I $38,213,0&7.24I : a a a a a a - 81 - X. AGRI-INSTITUrIONAL DEVELOPMENT 10.01 Introducto2n In the appraisal report , it was identified that the major government objectives in the agricultural sector were to achieve self-sufficiency in basic food and to correct regional economic and social imbalance. The proJect would help to meet both objectives by improving and expanding irrigation facilities for the rice crop in the Ilocos area and in Cagayan and Leyte areas which are the poorest regions in the nation. Under the project, there are nineteen (19) existing national irrigation systems, three (3) existing pump irrigation systems for improvement and extension and three (3) new irrigation projects for construction and development. With this, it is expected that an annual area of about 50,000 hectares would be rehabilitated or provided with new irrigation structures/facilities thereby contributing to the country's rice self-sufficiency program. However, a 5-year development program was recognized necessary before the full benefits from the proJect will be attained. 10.01.1 Agri-Institutional Commitments. The agri-institutional commitment under the project/loan covenant envisioned in particular the following: (a) annual paddy production was expected to reach 325,000 tons at full development. Average yields would be 4.0 tons/ha in the wet season and 4.2 tons/ha in the dry season in the Ilocos subproject. Future paddy fields in Cagayan and Leyte subprojects were expected to be about 4.0 ton/ha and 3.5 tons/ha respectively, for both wet and dry season crops. (b) an increase of 42% in the cropping intensity from 133% to 185% by providing dependable water supply to irrigate about 49,000 hectares of rice in the wet season and 35,900 hectares of crop in the dry season. - 82 - (c) 0 & N capabilities both in the central office and in the regional offices involved would be strengthened to include preparation and implementation of a plan to strengthen the agricultural capabilities of the regions involved in the project and provision of adequate 0 & N vehicle and equipment to operate and maintain all the systems under the said regions. (d) intensification of agricultural supporting services in the project such as improved extension services, expanded credit facilities and better water control; (e) the use of machineries for land preparation and threshing would increase to meet more exacting crop calendars. (f) more than one half of the land in the project area will be farmed by owner-operators and the remainder by leasehold tenants of small landlords. It was along these agri-institutional commitment that specific organizational units in the component systems/projects and in the regions were established/strengthened inorder to undertake the implementation, monitoring and evaluation of the development activities. Specifically, these organizational units would be responsible for monitoring the deployment of extension and water management personnel, the pace of land reform, organization and training of the farmer-irrigators, the use of production inputs and credits, incidence of pests and diseases, farm management practices and others. 10.01.2 Organization for Agri-Institutional Development In the regional and system offices, there are presently five (5) organizational units concerned in the implementation of the various agricultural and institutional development activities of the project/irrigation systems. These are the following: (a) The Institutional Development Divisions (IDD). Earlier known as the Agricultural Coordination Division (ACD) during the initial years of project implementation, these regional office units were charged with the overall responsibility of planning, monitoring and evaluating the implementation of the various agri-institutional development activities in - 83 - all the national irrigation systems being rehabilitated/improved under the project. The regional IDDs are composed of two (2) sections: the Irrigators Organization and Training Section (IOTS) and the Irrigators Assistance Section (IAS): and have an average of nine (9) technical personnel. (b) The Input-Output Monitoring Program IIOMP Team). The team is functionally under the supervision of the regional IDD and is charged with the responsibility of monitoring the use of production inputs, adoption of improved farming practices and production levels per unit area in the systems covered by project. Moreover, in Leyte subproject, the IOMP team was also involved in the organization and development of farmers. (c) The Project Agricultural Personnel. In all subproject areas, there were at least two (2) Institutional Development Staff (IDS) directly under the project coordinating engineer who are involved in the organization and development of farmer-irrigators groups/association in coordination with the regional office IDD for technical advise and service. (d) The Irrigation Community Organization Program (ICOP Team) This is composed of Contractual Irrigation Community Organizers (ICOs) whose services were engaged by the Agency in early 1982 and is charged with the responsibility of organizing and training farmers for eventual assumption of 0 & N tasks. The team, covers selected irrigation systems covered by the proJect. Ce) The Irrigation System's 0 & N Personnel. Similar to other irrigation system, the regional office functionally and administratively supervised the 0 & N Personnel at the Systems level. It provides cooperation and supportive services to the other organizational units involved in physical and institutional development program implementation aside from their regular 0 & M functions in their respective systems. In the implementation of the agri-institutional commitments. the IOMP Team and the project IDS. seek for technical assistance and directions from the regional IDD particularly in the organization/formation of the project/field level coordinating body. Consultation and coordination with the line agencies concerned were _ 84 - undertaken regarding their agency participation in pursuing the agri-institutional development commitments for the proJect. In the process, working relationship among them was established. 10.02 Institutional DeveloDman-t In the rehabilitation and construction of the irriga- tion systems/projects, the conicern was not solely on the physical aspect.s but also includes the organization and development of the irrigation farmer-beneficiaries. A felt- need to organize the farmers into irrigators groups and or irrigators-associations, and provide them with the necessary trainings and assistance were recognized. Thus, farmers capability shall be developed so that they would become more effective partners in the operation and management of the system. The scheme of turnover to the association a whole system or portion thereof for them to operate and maintain is adopted by NIA in recognition of the vital role of farmers in irrigation development. 10.02.1 Qroantion-of Farmers-Into FIG/la. When NI3lP I started rehabilitation/construction of the irrigation systems/projects, the program to organize Farmer Irrigators Groups (FIG) was also undertaken. This activity was carried on by the five (5) organizational units concerned in the region/proJect or systems. FIGs were organized based on a rotational area served by a main turn out. These FIGs also served as the first level organization unit of the irrigators association. Preliminary activities such as physical survey of actual rotational areas, listing of actual farmer-irrigators thereto were undertaken prior to the actual organizing process. As of August 1986, there were about 295 FIGs organized in the whole proJect. See Table 10.02.1 Irrigators Associations (IAs) were organized by area fitting operation and maintenance of irrigation system considering water source, irrigation and drainage networks and natural boundaries. Specifically, the IAs were formed by all the farmer-beneficiaries thereto thru their FIG leaders/representatives located within defined area coverage. These FIG leaders automatically became members of the IA Board of Directors while the officers of the association were elected from among themselves. Figure 10.ox.l presents a typical IA organizational set- up/etructure. - 85 - On the other hand, accomplishment in the organization of IAs in the whole proJect showed about 80 IAs were already formed representing 43% of the total target, Table 1. By subproJect area, 49% (or 30 out of 61 IAs targeted) were organized in Leyte, 47% (26 out of 55 IAs) in Ilocos and about 35% (24 out of 69) in Cagayan province. The area covered by these organized IAs reached 35% (or 15,339 hectares) of the total irrigation service area targetted for development while about the same percentage (36%) of the total target farmers were listed members. 10.02.2 R.aistralion of IA. Generally, after the IA were organized, the association drafted their Articles of Incorporation or constitution and By-laws and then subsequently presented to the general assembly membership for ratification and adoption. Membership fees were paid and annual dues were collected from each farmer-member and become part of the association's fund. Part of their collections were used in registering the association with the Securities and Exchange Commission of the government to obtain Juridical personality. To date, out of the 80 IAs organized in the proJect, about 79% (or 63 IAs) were already registered; that is, 20 in Ilocos, 15 in Cauayan and 28 in Leyte. The rest are either formulating their constitution and by-laws or in the process of registration. Other specific informations are shown in Table 10.02.2. 10.02.3 Turnoyer of 0 & 1H to, :the IA. There are at present 39 lAs in various stages of contract (Stages I, II & III) with the NIA to operate and maintain the whole system on a position thereof. The total area under these contracts covered 7,932 hectares and about 240 kiilometers of canals/laterals. Specifically, for a contract on maintenance (Stage I), an average annual compensation of about Peso 7,320.00 per 3.5 kms is geared upon. The total area under Stage I contract covered 10 irrigation systems with 3,793 hectares and 101 kilometers of canals/laterals. There are also 26 associations all over the project that entered into this kind of contract. However, if an association desires to collect Irrigation Service Fee (ISF), certain percentage of the total collection shall be given as per agreement. - 86 - Stage II contract which is a joint-operation and management contract between NIA and the IA cover four (4) irrigation systems; i.e., two (2) in Leyte area and one (1) each in Ilocos and Cagayan sub-project areas. Seven (7) lAs were involved in this kind of contract. This specific contract call for the following major forms: (a) NIA operates major diversion points and supervises canal/lateral headgates to the IA area. IA operates the turnouts. (b) NIA undertakes major maintenance works. IA shoulders minor maintenance job. (A classification of major and minor work is also agreed upon); (c) IA collects ISF and remits to the NIA. (d) NIA shares with the IA Percentage of total ISF collection depending upon terms of contract/agreement; and (e) NIA-IA to hold Periodic/regular meetings. On the other hand, Stage III contract call for a full turnover of the whole irrigation system to the association for their operation and management. There are three (3) systems which fall under this term of contracts two in Ilocos subproject and one in Leyte province. Two general terms of the contract are as follows: (a) NIA provides technical supervision/assistance to the IA in all aspects of operations and maintenance of the irrigation systems whenever necessary. (b) IA collects ISF and pays amortization to NIA for the development cost of the irrigation system. (c) NIA-IA to hold periodic/regular meetings. 10.02.4 Training and Development of Farmers. In order to develop the farmers/IAs of the required technical capabilities to operate and maintain the irrigation system, a series of training were provided. First of which is a short project orientation which deals with the project objectives, water and farm management practices and other general informations about the project. The training on irrigated crop production were provided to - 87 - selected farmer-representatives of an irrigation system in order to update their knowledge in improve farming practices for irrigated paddy rice. In turn the farmer representatives are expected to dessiminate the same to their farmer constituents. Table-10.02.4 shows about 1523 farmers participated in this type of training. The other capability built-up programs are equally vital preparatory to the turnover of the irrigation systems to the association. These include systems management training which deals with the general operation and maintenance of an irrigation system such as planning for the preparation of cropping calendar/pattern, water delivery and distribution, maintenance schedules, management of conflict, roles and responsibilities of IA/NIA and rules and regulations governing irrigation systems management. There ar now 544 farmers/farmer leaders who have undergone such type of trainings. Morever, financial management trainings were also conducted. Its content areas include preparation of cash receipts and disbursements, financial plans, and monthly/annual cash statements considering IA organizational and financial viability. To date 205 farmer-leaders of IAs which are about to enter or already in contract with NIA have attended such trainings. The training on management leadership and cooperatives are sort of enrichment training geared toward the development of the farmers/leaders in managing their association as well as in engaging their association to productive ventures. About 367 farmer-leaders have undergone this type of training. In the conduct of the training, some personnel of the line agencies were also invited to discuss topics that concerns their agency functions so as to provide a broad perspective on the development needs of the farmers. In most cases, the training expenses were shared between the NIA and the IA/farmers. Sometimes, other government and/or private entities involved also share in the training expenses. 10.3 Agricullural DeyglopMent As stipulated in the proJect appraisal report, the maJor obJective of the agricultural sector is to achieve self-sufficiency in rice. It is envisioned that at full development, the average paddy yield would be 4.0 and 4.2 - 88 - tons/ha. for the wet and dry seasons, reepectively at Ilocos subproject. For Cagayan and Leyte subprojects, paddy yields were about 4.0 to 3.5 tons/ha. for both the wet and dry season crops. 10.03.1 Irg.lated Area and CrPing Intensity Since the proJect start through proJect end, Ilocos subproJect has the highest recorded cropping intensity (144%). This was obtained in 1982 with 14,325 has. irrigated during the wet season and 8,409 has. during the dry season. The average annual irrigated area was noted to be 21,042 has. with corresponding cropping intensity of 134 percent (See Table 10.03.1). For the Cagayan proJect, the highest irrigated area (9,134 has. and 7,371 has.) occured during wet and dry seasons of 1979. That year, it had a corresponding cropping intensity of 126 percent. This, however, decreased to only 83% in 1985 with 6,872 has. and 4,050 has. irrigated during the wet and dry seasons. respectively. From Table 10.03.1 , it could be noted that the annual average irrigated area was about 13,687 has. with 104% cropping intensity. The cropping intensity of Leyte subproject has the lowest recorded data but subsequently increased through time. In 1979 for example, irrigated area reached only 2,606 and 3,013 has. for the wet and dry seasons, respectively. It had an equivalent cropping intensity of 49 percent. In 1982, the irrigated area increased with cropping intensity of 69 percent. Moreover, the 1985 irrigation operations rose to 5,039 and 4,704 has. for the wet and dry seasons, respectively with a cropping intensity of 85 percent. 10A3.2 Irriaated Paddy Yield Irrigated paddy yield for the wet season in the Ilocos subproJect has already reached about 90% of the target yield (3.58 tons/ha. against the target 4.0 tons/ha.). However, a closer look at the data (Table 10.03.2) showed that except for two irrigation systems (Laoag-Vintar and Cura River), all other systems have some recorded yields exceeding 4.0 tons/ha. either in the wet or dry seasons within the period 1978-1986. - 89 - During the same period, there appeared a consistently low paddy yield at Cagayan subproject. The average annual yield was only 2.25 tons/ha. and the lowest recorded yield was only 1.43 tons/ha. (wet season, 1982). Paddy yields in the Leyte subproject were comparatively higher than those in the other subprojects. In fact, the actual average yields in the wet season (4.01 tons/ha.) and dry season (3.82 tons/ha.) already exceeded the targets set for the area. Also, in some of the irrigation systems, paddy yields reached more than 5.Os tons/ha. 10.03.3 Farm Input Utilization and Farm Management Practices Good and ordinary seeds of the high yielding varieties have been used by the farmers even at the start of the roject. Seedlings were mostly raised through the wetbed method and usually transplanted randomly in the field. For the whole project area, few adopted direct seeding method. The rate of seed utilization at Ilocos subproject during the wet season almost remained the same throughout the project implementation period (86 kg./ha.). At the project start however,there was considerable difference on the rate used during the dry season (110 kg/ha.) while 86 kg/ha. at project end. In the Cagayan subproject, the seedling rates from project start to project end improved/decreased both in the wet and dry seasons, i.e. from 70 to 59 kg./ha. (wet season) and 67 to 58 kg/ha. (dry season). In contrast, seed utilization rate at Leyte area increased from 70 kg./ha. (project start) to 92 kg/ha. (project end). The use of fertilizer also increased in most of the irrigation systems in the Ilocos area during project implementation (2.84 bags/ha. at project start to 5.01 bags/ha, in the wet season; and 3.99 bags/ha. to 5.46 bags/ha. in the dry season). In Cagayan and Leyte areas, the use of fertilizer/nitrogen element although quite below the recommended rate was already recognized a necessary input to increase production. To combat rice pests and diseases, the farmers used agro-chemicals. These include insecticides and weedicides applied either as preventive or control measures. - 90 - 10.(3.4 Utilization of Farm Power. Processing and Stor=ae Facilities Draft animals are the most common source of farm power used by farmers in most of their farm operations. In Cagayan area alone, there are 17,808 heads of these animals at project end. During the same period, there were about 600 tractors of the two-wheeled type (hand tractors). It was observed that tractors were increasingly utilized toward the end of the project. Post harvest facilities like threshers and dryers were only very few. In Leyte area for example, only 42 threshers and 13 dryers served the 10-irrigation systems thereat. On the other hand, there was no thresher recorded in the Cagayan subproject. The number of warehouses also appeared to have decreased from 19 (at project start) to only 13 units at project end. 10.4 Agricultural Supgort Services One of the agri-institutional commitments envisioned was the intensification of agricultural supporting services in the project. Specifically, this focused on improved extension services, expanded credit facilities and other corollary services of the government in agricultural development. The need for an integrated delivery system of such services was recognized essential in the successful prosecution of the development objective. Hence, the project moved to address on this commitment. 10.4.1 Agricultural Development Coordination As there are several government agencies concerned in agricultural development in the project, it is necessary to establish a system or body for coordinating the provision of extension and support services. Through this system/body, a more effective delivery of services was provided and a far reaching result of such services was obtained. In the three (3) provinces covered by Ilocos subproject, a System Management Group (8MG) was established per province. This endeavor was spearheaded by the NISIP- IOMP team with the regional IDD providing assistance. The SMG was under each province's Provincial Agricultural Council (PAC) and chaired by the representative of the - 91 - Ministry of Agriculture and Food (MAF). Th Irrigation Superintendent (IS) of the system co-chaired the (SMG) while the members are the heads of all other agencies involved in agricultural development in the province. Moreover, the field officers of all gencies covering the irrigation systems are members of the group. Presently, the SMG's meet at least four (4) times per cropping season. For the Cagayan subprojects, there was one project level Agricultural Development Coordinating Committee (PADCC) established for the two (2) irrigation systems (Abulog and Pamplona) while a system level ADCC was also established in the other system (Banurbur). The functions of the ADCCs are similar with the other coordinating bodies in other projects/subproJects. Unfortunately, the ADCC's became inactive long before proJect completion as a result largely of the peace and order problem in the area, and the distance of the site to the government centers in the region. The three-field level ADCCs (FADCC) at Leyte subproject have wider participation/membership in the committee where the local government/municipal mayors, barangay captains, IA and Samahang Nayon presidents, etc. are members. However, due to several constraints. the FADCC no longer meets regularly and instead meets as the need arises. For example, the FADCC in Hindang-Hilongos Irrigation System called meeting to discuss about the organization and development of the IAs thereat as well as the financing scheme of the government's Intensified Rice Production Program. 10.4.2 Inter-A.encv Personnel ne]2loyment The primary agencies that extend services in the agricultural sector are the NAF, Ministry of Agrarian Reform (BAR), the lending institutions and the NIA. Generally, these agencies comprised the ADCC plus the local officials/organization in the project service areas. Their field technical personnel deployed by each agency is presented in Table 10.04.2. MAF accounted for the greatest number of personnel deployed in the project (226 at project start and 275 at project end). MAR deployed practically the same number of personnel within the duration of the proJect implementation. Whereas, the lending institutions increased its personnel complement by 108% (from 35 to 73) for the same duration. - 92 - In the Cagayan subproject, the entry of the Philippine Crop Insurance Corporation (PCIC) was recognized as an important service to safeguard the small investments/crops of the farmers. 10.4.3 Land Tenure Improvement Monitoring the development of this aspect was difficult in the project agricultural monitoring system. This was due perhaps to the limited manpower deployed in the areas covered by the project, the program of priority of the agency concerned, the difficulty of locating/identifying the farmers specially along the boundaries of the Project and other related problems. Inspeite of these problems however, information gathered indicated that there were improvements made on the tenurial status of many farm tenants in most of the irrigation systems covered by the project. In Ilocos subproject as per IOMP survey, share tenancy decreaeed from 11,546 at project start to 9,132 at project end. These improvement covered some 2,429 hectares. On the other hand, leaseholders increased from 382 (at project start) to 1,388 (at project end) and involving 635 hectares, Table 8. The agrarian reform program at Cagayan subproject could not be gauged because of the nonavailability of data. The lack of information may be due to the prevailing peace and order problem in the said area. As in the Ilocos subproject, some share-tenants were observed at Leyte subproject, though of lesser magnitude. There are many leaseholders, however, at Leyte (2,066) than in Ilocos. In support to land tenure improvement, the program also provides legal services and other forms of assistance to the farmer-beneficiaries to expedite early resolutions to agrarian problems. 10.4.4 Farm Financina/Production Loans The source of farm financing in the Ilocos subproject came from relatives and friends and Masagana 99 (M-99) program of the government. Production loans were comparatively higher than in the other sub-projects. In most - 93 - of the irrigation systems, the M-99 program granted loans only during wet season where irrigation water was more assured. An average loan of P2,966/ha. was granted at the project end. Similarly, during the some period, loans from relatives and friends averaged P2,105/ha. but during dry season a lesser amount of P1,803/ha. was provided. In Cagayan subproject. the farmers within the three- irrigation systems covered by the project got their production loans generally from their relatives and friends. The size of credit was relatively low compared with the credit required under the M-99 program. For example, during wet season of 1980, the average size of credit was only P509/ha. while during dry season, it was P512/ha. Two years after (1982), it was P536.00 and P262.00 per hectare for the wet and dry seasons, respectively. The average credit size obtained by the farmers three years after (1985) was P990.00/ha. (M-99) for the wet season and P455.00/ha. (from relatives and friends) during dry season. Farmers in Leyte subproject availed of credit facilities at a higher rate per hectare, sourced mostly from government lending institutions especially the M-99 program. For example, during the five-year period (1981 - 1985), rice production loans availed of by farmers (particularly in Binahaan, Tibak and Guinarona Irrigation Systems) ranged from P1,123 to P1,678 per hectare attaining an average production loan of P1,332 and P1,557 per hectare during wet and dry seasons, respectively, for the same period. 10.4.5 Monitoring and Evaluation The progress of agricultural and institutional development during the project implementation had been periodically monitored and evaluated to determine the effects of the different development programs and services as well as the benefits accruing from the proJect. This monitoring scheme was established through the Input-Output Monitoring Program (IOMP) under NISIP Package I and subsequently extended to the NISIP Package II. Specifically, the IOMP which was envisioned to be implemented in three (3) phases has already undertaken the two (2) phases, namely: a. Phase I/ the establishment of benchmark agro-socio economic profile of all the systems under the project/NISIP I, the purpose of which served as the - 94 - basis for the preparation of the 5-year agricultural development plan (FYADP) and for evaluating the degree of success attained after a certain period within the project implementationi; and b. Phase II/ the conduct of seasonal farm management surveys in all the systems, organization of the agricultural development coordinating body. formulation of the FYADP and preparation of agricultural progress reports. c. Phase III on the other hand, concerned with monitoring and evaluation of the FYADP implementation. However, with the completion of the project, the certainty of undertaking fully this phase appears dim as a result of personnel services termination and/or fund constraints. 10.5 Future Develovment Prorams A five year development Program was recognized necessary before the full benefits from the project will be attained. The development will be realized through the re- formulation and implementation of the Five-Year Agricultural Duvelopment Program (FYADP) for the irrigation systems under the project. Under this program, there will be three (3) primary objectives which will require management support and priority as follows: first : strengthening/continuing the institutional development program of the agency in every irrigation systems covered by the project, second establishment/adoption of a system level coordinating body/mechanism, and third : provision of a sustaining program to monitor and evaluate the agricultural and institutional development undertaking in each irrigation system. 10.5.1 Strengthening/Continuing Institutional Development The organization and development of farmers into viable and functional groups/associationss will be pursued vigorously to enhance their active involvement and participation on the operation and maintenance of the - 95 - irrigation systems. Aside from this, various assistance and support services rendered by concerned agencies shall be coursed through these groups/associations in recognition of the organizational capability as effective participants in the delivery of develop-ent programs. In many of the newly rehabilitated/completed irrigation systems, considerable attention relative to sustenance of institutional development will be provided in order to enlist the farmers active participation in the government development programs. To wit, about 57% of the targetted lAs will still be organized covering 65% of the total service area of all the systems covered by the project. On training and developing the capabilities of the farmers through their organization/association, much have to be undertaken and given priority. 10.5.2 Establishment/Adoption of a System Level Develovment Coordination A system level coordinating bodY shall be established in order that implementation of the development programs will be more effective and responsive to the needs of the farmer-beneficiaries. To ensure that the various government/agencies development commitment are carried on, this coordinating body shall initiate regular meetings to trace out problems encountered in the field and formulate solutions thereof, assess the program implementation and make periodic adjustments of plans/programs of each agencies. NIA shall cause to provide the necessary logistical support to come up with a workable coordinating mechanism/system and to ensure active involvement of the members of the body. 10.5.3 Sustain Development Monitorina and Evaluation The installation of an information management system/scheme to sustain the monitoring and evaluation of development programs in all the irrigation systems will also be taken into account foremost of this wil will be the implementation of an IOMP modified scheme which NIA is now undertaking on a pilot basis. This modified scheme - the Irrigation Management Information System (IIMS) - will be expanded eventually to include all irrigation systems in the Philippines. - 96 - Briefly. IMIS is a tool for managing efficiently the operation of the irrigation system in order that equitable and adequate amount of irrigation water delivery and distribution to the points/areas of the systems at the proper time would be achieved. It aims to regularly monitor and periodically evaluate the progress of system management through timely gathering of data on system operations, its financial status, conditions of irrigation water supply and facilities. farming activities. farmers needs/production input requirements, etc. Further, the coordination and participation of other government and/or private entities will be sought for whenever the issues/concerns call for their direct attention/responsibilities. - 97 FWWUREIOA TYPICAL ORGANIZATIONAL STRUCTURE OF AN IRRIGATORS ASSOCIATION GENERAL ASSEMBLY/ NMEMBERS14 (FARMER - MEMBERS) I 9OARD OF DIRaTORS (FIG LEADERS/REPRESENlA1TWES) r - , ----,-------- ------ a on~ ~ ~~~~~~~~If Audits *b_ ,01(SpSdi / }1 (Voi- Preskien) (Sact) (Tmsurer) (Auditor) Cairman Chainmn Choin C_hm FIG I FIG V - Presko uresur LADERS LEADERS LEADERS LEAD LEADERS ,LEAOERSI fARMER -MEMBERS/BENEFICIARIES NOTE: ALL 9OD MEMBERS AND IA OFFCERARE Fl 6 LEADERS/REFENTArIWS. BUT NOrALL FIG LEADERS/RE.RESEN XErrVE ARE IA OFFICERS.THIS CONDMON DEPENDS UPON THE HIN WES / AREA OF THE SYSTEM OR PORTON OF TSWTEM AN/OR NUMBER OF FIG's / ROITATIONAL AREAS UDER 1HE NIA-IA CONTRACT OF AGREEMWN. - 98 - XI. ECONOMIC EVALUATION 11.01 Project Economic Background The National Irrigation Systems Improvement Project (NISIP-1) was envisioned for the rehabilitation and upgrading of various national irrigation systems. Selected systems for inclusion, covering number of irrigation systems spread over Northern Luzon and the island of Leyte in Eastern Visayas, were evaluated on the basis of the degree of need for improvement, the potential for improvement in terms of land and water resources, including the technical and economical feasibility of improvement. The proJect, therefore, was intended to improve the performance of the existing irrigation systems in the three regions. The project _m expected to irrigate 49,400 ha., upon its completion from 26,200 ha. irrigated during the appraisal per±od and 23,200 ha. rainfed during the wet season. Dry-season irrigated area of 14,400 ha. will be expanded to 35,950 ha. Overall cropping intensity is expected to rise from 133% to 173%. The average paddy yields in the rainfed areas are about 1.6 ton/ha. in Ilocos, 1.5 ton/ha. in Cagayan and 1.4 ton/ha. in Leyte. On the irrigated areas, the mean wet season paddy yields are about 2.5 ton/ha. in Ilocos, 2.0 ton/ha. in Cagayan and 1.7 ton/ha. in Leyte. The irrigated tobacco yield in Ilocos systems is about 0.8 ton/ha., while the rainfed corn yield in Leyte is 0.4 ton/ha. At full development, estimated paddy yields are expected to be 4.0 ton/ha. in the wet season and 4.2 ton/ha. in the dry season in the Ilocos area. However, future paddy yields in the Cagayan and Leyte subprojects are expected to be lower about 4.0 ton/ha. and 3.5 ton/ha. respectively, for both wet and dry season crops. Total annual paddy production from the proJect area at full development would be about 325,000 tons compared to 121,000 tons at the time of appraisal. _ 99 _ Ovherall Summary of Cropping Patterns and Production (Appraisal) i Cropped Area Production I :Present:Future Present! Future! ' _ _tha.)- _ _(1000 tons) .. 1. Rice Wet Season __________ Irrigated rice 26,200 49,400 58.0 191.1 Rainfed rice 23,200 - 34.30 - Sub-Total 49,400 49,400 92.30 191.10 Dry Season __________ Irrigated rice 13,100 34,650 28.50 134.10 Total 62,500 84,050 120.80 325.20 2. Corn Dry Season =_________ Rainfed Corn 2,000 - 0.80 - 3. Tobacco Dry Season Irrigated Tobacco 1,300 1,300 1.00 1.70 Total All Crops Cropping Intensity (%) 133 173 The implementation of the project would be completed over a five-year period from 1977 to 1982. The total proJect cost are estimated at US$ 107.2 million, of which US$ 50.0 million or 47% is foreign exchange and the remaining is local cost. ProJect costs are based on quantity estimates from feasibility designs and unit prices in mid-1976. All costs were indexed to a common level in mid-1976. - 100 - Using the foregoing assumptions and discounting the proJect costs and benefits over 50 years, the Economic Internal Rate of Return (EIRR) for overall proJect was evaluated at 15%. The following conditions were also assumed in the economic analysis: 1. An economic farmgate prices for the following crops at: 1) Paddy rice P 1520/ton 2) Tobacco P 14905/ton 3) Corn P 1240/ton 2. An economic investment cost, expressed in mid-1976 at US$ 64.17 million. 3. An agricultural development period of five (5) years. 4. A shadow wage rate of P 2.95 per man-day and 5. A proJect life of 50 years. 11.02 Conditions During ProJect Implementation In view of the changes in the implementation period, project cost, irrigation service area, cropping intensity yields, crop production, prices of farm inputs and output, the economic viability of the proJect was re-evaluated to determine whether the project can be economically justified. Specific economic benefits flowing from the proJect were indicated and compared with the appraisal expectations. The economic internal rate of return (EIRR) has been calculated using the same method used in the Appraisal Report. The proJect cost have been converted into 1986 constant values using the indices in Table 11.01 11.02.1 Project Implementation At the time of appraisal; the project was programmed for implementation over a five-year period from 1977 to 1982 (mid-1977 - mid-1982), however, the actual project implementation schedule took up ten (10) years. The project was delayed for four (4) years or a time overun of 100%. MaJor causes of the delays were discussed earlier in the Report. 11.02.2 ProJect Cost The actual total project cost amounted to US$ 76 million, of which US$ 38.206 million for loan proceed and P385.98 million for GOP-contribution. - 101 - Discussion on the comparative analysis on costs between the actual and appraisal were presented on the previous chapter on Project Cost. The breakdown of the actual project cost and expenditures by the year is presented in Table 11.02. 11.02.3 Service Area, Irrigable Area and Cropping Intensity The total irrigation service area for the NISIP-1 as firmed up and established at ProJect Completion is 44,409 ha. which is about 10% lower than the appraisal estimate of 49,400 has. Cropping intensity is 185% slightly higher compared to the appraisal proJections of 173%. The comparative irrigable area and cropping intensity is presented below. Service Area by Sub-Project Appraisal/Firmed-up Appraisal t Firmed-up t Iocos tCagayan: Leyte : Total tIlocos ICagayant Leyte I Total 'Irrigated Wet (ha)117,600 118,700 113,100 149,400 116,695 116,460 111,254 144,409 t lIrrigated Dry (ha) 110,400 113,750 111,800 135,950 114,190 113,176 110,691 138,057 1 1 1 1 1 1 1 1 ItI t~~~~~~~~~~~~~~~~~~~~~~~~~~ S S a a a ICropping I I I : I I I : a :Intensity (X) : 1159% 1 174% 1 189Z 1 173% 1 185X 1 1807. 1195% 1 185% i X | : | ,:_ : t,, 1, |~~~~~~~~~~aa - 102 - 11.02.4 Crops Yield As expected during the project completion, crops yield reaches 4.0 tons per hectare mean average and 3.89 tons per hectare for irrigated wet and dry seasons, respectively. For the future conditlon without project it was assumed at 3.22 and 2.6 tons per hectare for the irrigated wet and dry seasons, respectively. I APPRAISAL I APPRAISAL : : : ~~~~~Future JO : Future 11/I Future 1110 : Future 111I : :a ________ ________ .____ _ : ,__: _,__,_._: SllocosICagaymnILeyteIfmn IllocoslCgayaniLeytelffuea llocoslCagayaniLeyteluNn 1J1ocoswCagayantLeyteIuan I _l_et season I a I I I a I I I a _ S lRainfed Ric a a.90 1.70 a1.h0 :1.69: - I - a - a." 1.70 11. 11.70: - : - 1 - I : : : : S : : : : : I a: 'IrigtSed icel30 .01.01.5 400140 D.0130 137 a.3 a35 1.2 140 I40 140 1140 1 1Dr 1 1s I I I I I I I I 1I I I : a : 1 1 a a a : I : : z : : : : IRainfed Corn I - 19 1- 0.60 110.60 1, - I - I - I -1 I- 1. 0.60 10.60 S - I - I - l - flrripted Ricel 3.00 1 2.40 12.00 12.60 S4.20 1 4.00 13.50 13.087 3.705 1.75 13.00 13.62 I4.00 I 3.50 13.50 13.76 1 ITobacco 1.00 I I - 1 .00 I 1.30 1 - I 11.30 1.00: - 1. 100: 1 I I : a a_ _: : a a :_,at :_ _ _ - 103 - 11.03 Economic Analysis 11.03.1 Economic Cost a) Investment Cost The financial cost of the project was converted into economic values by transforming the foreign exchange cost into peso currency using a shadow exchange rate derived from the following formula: SER = OER x (1 + Fx) Where: SER = Shadow Exchange Rate OER = Official Exchange Rate and Fx = Foreign Exchange Premium which is at 20% Using the SERs above and the domestic and international price indices in Table No.11.01, the proJect economic cost at current prices and at constant 1986 values was computed and is presented in Table No. 11.02. Also presented in Table No.11.03 is the economic cost at current prices and at constant 1986 values of the proJect. Project Year Official Exchange Rate Shadow Exchange Rate (P/$) (P/$) 1977 7.40 8.88 1978 7.37 8.84 1979 7.38 8.85 1980 7.51 9.01 1981 7.87 9.44 1982 8.37 10.04 1983 14.00 16.80 1984 18.00 21.60 1985 20.00 24.00 1986 20.50 24.60 - 104 - b) Operation and Maintenance Cost The operation and maintenance cost considered in the analysis is the expected differences between that of "with" and "without" proJect conditions. This was estimated based on the 0 & M cost per hectare as indicated in the proposed 0 & M budget presented hereunder: Year Proposed 0 & M Budget 1988 P 22,758,461.00 1989 24,249,685.00 1990 25,827,604.00 1991 27,485,070.00 1992 29,285,467.00 1993-2026 995,705,878.00 c) Farm Production Cost The maJor components of production costs are seeds, fertilizers, pesticides and labor. The inputs application rates, farm input, utilization and farm management practices were discussed earlier in the report. 11.03.2 Economic Benefits The quantifiable benefits of the project have been treated in the same way as in the Appraisal Report. Only the direct economic benefits were considered in the analysis. The economic benefits attributable to the proJect would be the difference between the economic benefits with and without project conditions. This was reassessed in the light of actual agricultural performance during project implementation and the expected performance thereafter given the improved irrigation facilities, delivery of farm inputs and services. Result of the analysis are presented in Table 11.6a - 11.6d. The major variations between the economic benefits of the project assumed at appraisal and the actual events that occured during proJect implementation have been indicated. These include variations in implementation schedule, project cost, irrigation service, cropping intensity, paddy yield and prices of farm inputs and output. The economic farmgate price was estimated as shown in Table No. 11.7a - 11.7f. - 105 - Based on the revised estimate of irrigable area and cropping intensity, the incremental paddy production at full development is about 162,020 tons of palay (unmilled rice) valued at P 144.87 million, using an economic farmgate price of P 3085 per ton, Table No. 11.8. 11.03.3 Economic Internal Rate of Return On the basis of actual performance in proJect construction and in the agricultural aspect during proJect implementation and an agricultural development the project's Economic Internal Rate of Return EIRR was computed at 15%. This is lower than the Appraisal estimate by 5%. The result indicates that the 100% time overrrun on the project implementation reduces proJect's viabilities. The result would still indicate that the project is still economically viable inspite of the delays in project implementation. Other benefits and socio-economic impact attributable to the project were the creation of more employment opportunities during project implementation and operation, improvement of the socio-economic status of the farmer- beneficiaries, increase in the volume of business grain and farm input dealers, acceleration of the regional economic development, increase of tax revenues and substantial contribution to the government goal of food sufficiency. Table 11.9 shows the result of analysis. 11.03.4 Farm Income Analysis Farm income analysis was conducted to show the effects of the proJect on the two types of farmers in the project area before the implementation of the project - the irrigated farmer and the rainfed farmer. Results indicate that irrigated farmers will realize an additional income of P 3075 while the rainfed farmers will get higher marginal income of P 4095 in an area of 0.95 ha. For an area of 2.75 ha. an irrigated farmer will realize an additional income of P 8940 and P 13,580 for irrigated and rainfed areas respectively Table 11.10. - 106 - Field activities of MOH personnel consist of identification of prospective water-sealed toilets and water hand-pump recipients, continuous treatment of schistosomiasis cases including diagnosis and fact-finding of the schisto victims, reconfirmation of endemic areas and application of molluscide chemicals particularly Bayluscide on those areas including irrigation and drainage canals. 3.03.7 Proct and 0 & M Fagliit1es Completed and renovated various project and 0 & M facilities for each system under the three sub-proJect areas of NISIP I are listed as follows: 3.03.8 InDUt-OutDt Monitorina Program General The Input Output Monitoring Program (IOMP), a mechanism/system designed for monitoring and evaluating development program implementation, was first established and implemented in the Upper Pampanga River Integrated Irrigation System (UPRIIS) in 1976 with financial assistance from the Bank under Loan Agreement No. 1227 PH. With its significant and encouraging results, the program was also adopted for implementation in the NISIP I sub- proJects/systems. The objectives of the program were as follows: a) To establish benchmark data necessary in the development of a Five-Year Agricultural Development Plan (FYADP) for each sub- proJect/system; b) To prepare a FYADP which would indicate targets and strategies to attain the desired level of development; c) To monitor the flow in build-up of farm inputs in the sub-proJect area before and during each cropping season to give NIA sufficient warning of any likely shortfall so that it may take appropriate actions. The implementation of IOMP in the various NISIP I sub- project were carried out in three (3) phases. The phase I commenced simultaneously with the start of construction of irrigation and drainage facilities for a period of two years. It involved that the training of monitoring personnel, conduct of agro-socio-economic and farm management survey and preparation of seasonal Agricultural Progress Report (APR). Phase II covered a period of one (1) - 107 - year solely for the preparation of FYADP for each sub- proJect. Phase III covered a period of five (5) years as the implementation phase of FYADP. Field problems related to input availability and use were monitored and evaluated, and results were discussed with the members of Agricultural Development Coordinating Council (ADCC) of each sub-project for appropriate action. Likewise, outputs relative to actual inputs use were also looked into. These information indicated agricultural development in the project area and served as bases in assessing the degree by which the project objectives were attained. Inter-agency Coordination For the purpose of implementing a Five- Year Agricultural Development Program and in compliance to MC# 90, S. 1980 mandating the creation and operation of Field Agricultural Development Coordinating Council (FADCC) in foreign funded project, the National Irrigation Administration (NIA) regional office initiated the establisments of FADCC in NISIP covered systems. The council was regarded as an action body that put into concrete accomplisments the plans and programs of agrioultural development in the command areas of irrigation proJects. In as much as NISIP I had three sub-proJects and each sub-proJect covered two to nine (2-9) irrigation systems located in the different provinces of the respective regions, the FADCC was organized separately in each system. Thus, two to four coordinating council were established in each sub proJect. The council was composed of five (5) working committees with specific roles to perform in order to avoid overlapping of functions. The working committees and their respective functions were as follows : 1. Management Group - the field level governing body headed by the elected member of the group with a plan and program sub-committee chaired by the Watermaster, with member - representatives from the Department of Agriculture and Food (DAF), Department of Agrarian Reform (DAR), Department of Local Government (DLG), and lending institutions. These committee took charge of planning, organizing and directing agricultural development programs implementation. 2. Farm Management Committee - chaired by the Farm Management Technologist (FMT) from the DAF. This committee was responsible in providing assistance and guidance to farmers in the timely acquisition of the production inputs, repayment of productions loans and marketing of palay in other farm produce. - 108 - 3. Institutional Development Committee - headed by the Municipal Government Officer of DLG with members from DAF, DAR and NIA. In order sub-projects, this was chaired by the Agricultural Cooperative Officer/Technologist of the DAF. The committee was in-charged of institutional development specifically organization, revitalization and development of farmers organizations. 4. Credit, Collection and Marketing Committee - chaired by the representative from the National Food Authority (NFA) with members from RB, DAF, DAR, NIA and farmer-leaders. this group was in-charged of providing farmers the necessary price support and market outlets. 5. Land Tenure Committee - chaired by the DAR Technologist or Team Leaders of Agrarian Reform Teams responsible in implementing all agrarian reform laws and regulations within the proJect area. Personnel Complement The number of personnel varied from one (1) sub-proJect to another during implementation of IOMP from 1978 to 1986. Generally, the IOMP Team was composed of Sr. Agricultural Engineer who acted as the team leader and was responsible to the implementation of IO0P activities. The other members of the team were Economist, Agronomist, Research Aides, Clerks- Typist and Drivers. Table 3.1 presents the number of IOMP personnel from project start to implementation in 1986. Personnel Training and Development During implementation of IOMP series of capability build- up trainings/seminar workshops were provided to field personnel to equip them with the necessary knowledge and provided skills in implementing the program smoothly. The first training/seminar was the Benchmark Agro-Socio-Economic Survey (BASES) held in November, 1979 at the NIA Training Center, San Rafael, Bulacan. This was conducted by the Core Staff with assistance from the Consulting Firm Scyip, Gorres and Velayo (SGV). The training aimed to provide the participants with the necessary knowledge and skills on the conduct of the first activity of the teams aside from the up-dating of farmer's listing. The Second trairing was the Seminar/Workshop on Farm Management Survey (FMS). This was conducted at the field offices of the various NISIP-IOMP sub-projects by three (3) members of the Core Staff from the Central Office. The FMS training was held one year after the Seminar on Benchmark Agro-Socio-Economic Survey. - 109 - The third seminar was the Five Year Agricultural Development Program (FYADP) preparation. This was conducted for five (5) days in MArch 1981 at the NIA Training Center in San Rafael, Bulacan. The preparation of FYADP was the main activity for the Phase II of IOMP. Another seminar on Agricultural Development Monitoring and Evaluation was conducted by the IOMP Core Staff at NIA Training Center, San Rafael, Bulacan, on April 1982. The training aimed to provide the field personnel basic guidelines on the conduct of surveys and the basic procedures on the preparation, processing and analysis of statistical data fc.r the Phase III of the program. The type of training and corresponding number of participants by region is included in Table 3.2. - 1i0 - XII. IRRIGATION SERVICE FEE COLLECTION 12.01 General One of tnie primary objectives of the project is to increase agricultural productivity through proper systems operations, maintenance and management of better irrigation facilities and the obligation to generate income to support the cost of operation and maintenance of associated irrigation facilities through collection of irrigation service fees has been a vital concern of the National Irrigation Administration (NIA). In line with this task, the NIA is exerting concerted efforts for better and improved irrigation service fee collection performance. The Treasury, Systems Nanagement, Institutional Development departments and other offices of NIA Central Office have been burdened to bolster the collection efficiency of the Agency. In coordination with field offices of the NIA and other government offices involved in rice production, the Revenue Generation Division of the Treasury Department develops improved collection strategies and techniques that will enhance farmer's cooperation as well as the collection of irrigation service fees. 12.02 Irrigation Service Fee (ISF) The present irrigation fee structure of the NIA are as follows: (a) Gravity System (for rice crop) Two (2) cavans of palay at 50 kg. net weight per cavan per hectare or the cash equivalent computed on the basis of the prevailing government support price for the wet season crop. I Three (3) cavans of palay at 50 kgs, net weight per cavan per hectare or the cash equivalent computed on the basis of the prevailing government support price for the dry season crop. (b) Pump System (for rice crop) Three (3) cavans of palay at 50 kgs. net weight per cavan per hectare or the cash equivalent computed on the basis of the prevailing government support' price for the wet season crop. - 111 - Five (5) cavans of palay at 50 kg. net weight per cavan per hectare or the cash equivalent computed on the basis of the prevailing government support price for the dry season crop. (c) Anxntiil Crops For annual crops such as sugar cane, banana and other similar crops, the equivalent prevailing government support price of five (5) cavans at 50 kgs. net weight per cavan per hectare in gravity irrigation system and eight (8) cavans of palay at 50 kgs. net weight per cavan per hectare in the pump irrigation system shall be applied. (d) Other Crops For all other crops, the same rates as that of rice crop shall be applied except that payment shall be in cash. 12.03 Collection o rriervi Fs During Proect During the implementation of the proJect, the NIA has been collecting irrigation service fees from water users in the different systems covered by the project of which are presented in Table No. 12.01 hereof. 12.04 Erolected Irri&atloi Service Fee Co1lection Budaetary Reguirement for ODeration and Mainten~ance LQ_i_MU_n the Systems The annual projected collectibles and 0 & M budgetary requirements of the systems are presented in Table 12.02. The collectibles are estimated to be more than enough to cover the 0 & M cost of the systems, an indication of the adequacy of the irrigation service fee collection to support the required 0 & M budget of the Systems for the years under review. 12.05 Collegtion Strateales To achieve a satisfactory and acceptable level of collection performance, the NIA is implementing financial viability programs through various collection strategies not - 112 - only in the projects but in every irrigation systems in the country. among others are setting of collection target per NIA ISF Collector, creation of collection task force to intensify collection. confirmation of individual ISF accounts; granting of collection incentive bonuses to NIA ISF Collectors and Farmers Irrigators Associations: viability incentive grant to Regional/Provincial/System Office personnel; 10% discount granted to prompt payors; memoranda of agreement with NFA. MAR, and Land Bank of the Philippines in relation to NIA collection in kind (paley); a rigorous campaign to collection of unpaid accounts of officials and employees of all government offices. The NIA. through its Treasury Department, in its desire to further enhance collection performance in every irrigation systems in the country has made available the printing and distribution of Billing and Collection Manual which is useful guide to NIA ISF collectors. 113 - XIII. OPERATION AND MAINTENANCE 13.01 General The National Irrigation Systems Improvement Project I (NISIP I) as implemented comprises four (4). two (2) and four (4) groups of national systems in Regions 1, 2 and 8 respectively. In the NISIP I organization, Pamplona IS is only part of the Abulog-Apayao-Pamplona Irrigation System or simply Abulog-Apayao Irrigation System (AAIS). Together they form one responsibility area. While the whole Abulug- Apayao Irrigation system is included under the NISIP rehabi- litation program, as of this writing, only Pamplona portion has so far been completed. The Abra Pump IS is likewise on project status. Thus, the 0 & M organization for APIS is not covered in this report. The corresponding service areas and municipalities covered by the following systems are presented hereunder: Region I A. Group of Systems : Ilocos Norte Irrigation Systems (Laoag-Vintar RIS. Bolo RIS, Pasuquin RIS, Dingras RIS, Cura RIS and Bonga Pumps 1, 2 and 3) Source of Water : Vintar River, Bolo River, Bonga Ri"u'r and Laoag River Aggregate Command : 6,190 hectares Area Towns Served : Laoag, Vintar, Bacarra, Sarrat, Bangui, Pasuquin, Dingras, Marcos, Piddig and San Nicolas all in Ilocos Norte Province B. System Amburayan River Irrigation System Source of Water : Amburayan River Aggregate Command : 3,600 hectares Area Towns Served : Sudipan. Bangar, Balaon and Luna V all in La Union province. - 14 - C. System : Masalip River Irrigation System Source of Water Aringay River Aggregate Command : 1,620 hectares Area Towns Served : Agoo. Tubao, Aringay and Sto. Tomas all in La Union province D. Group of Systems : Ilocos Sur Irrigation Systems (Sta. Maria-Burgos RIS. Sta. Lucia-Candon RIS, Tagudin RIS and Gaco RIS) Source of Water : Sta. Maria River, Buaya River and Chico river Aggregate Command 4,344 hectares Area Towns Served : Sta. Maria, Burgos, Sta. Lucia, Candon. and Tagudin all in Ilocos Sur province Region 2 A. System Banurbur Creek Irrigation System Source of Water : Banurbur Creek Aggregate Command : 930 hectares Area Towns Served : Sta. Teresita and Buguey all in Cagayan Province B. System : Pamplona Pump Irrigation System Source of Water : Pamplona Creek and Gattu Creek Aggregate Command 675 hectares Area Towns Served Barangays of Gattu, San Jose, Capalalian, Casitan. and San Jose all in Cagayan Province - 115 - Region 8 A. Group of Systems Binahaan-TibaX-Guinarona-NP RIS Source of Water : Malirong River, Tibak and Cacillion River, Mbalog Creek, Soong Lake and Guinarona River Aggregate Command : 8,140 hectares Area Towns Served : Sta. Fe, Pastrana, Alangalang, Dagami, Polo, Tacloban City and Guinarona all in Leyte Province B. System : Hindang-Hilongos Irrigation system Source of Water : Salug River Aggregate Command : 650 hectares Area Towns Served Hindang and Hilongos in Northern Leyte C. System : Das-ay River Irrigation System Source of Water : Das-ay River Aggregate Command 380 hectares Area Towns Served : Hinunangan in Southern Leyte D. Group of Systems : Bito-Daguitan, BIG Irrigation System Sources of Water : Balire Borth, Belire South, Ibawon and Gibuga Rivers Aggregate Command 3,300 hectares Area Towns Served McArthur,Xayorga and La Paz all in Northern Leyte - 116 - 13.02 Organizational Set-up and Functions The operation and maintenance of the irrigation systems or group of systems shall be under their respective Irrigation Superintendents. Figure 13.1 shows the existing organizational structure for the operation and maintenance of the national systems. A temporary Institutional Development Section which is a new unit is proposed to take care of implementing the agricultural development program of the system. The positions provided in the new section are co-terminous with the program. In small systems the regional office is expected to undertake the implementation of the program. Because of the small area coverage of Hindang-Hilongos Irrigation System and Das-ay River Irrigation System, the two systems shall be attached to the Irrigation Office of the province where they are located. Thus, Hindang- Hilongos Irrigation System shall be Placed under the supervision of the Provincial Irrigation Engineer of Northern Leyte (Figure No. 13.2), while Das-ay RIS shall be under the Provincial Irrigation Engineer of Southern Leyte (Figure No. 13.3). However, each shall be provided with the needed positions for operation and maintenance. Two other small systems rehabilitated under NISIP I are Banurbur Creek IS (BCIS) and Abra Pump IS with an area of 930 hectares and 650 hectares, respectively. The BCIS operated as an independent system. The maintenance of all canals within 930 has. of BCIS has been turned over to the Irrigators Associations. On the other hand, Abra PIS as of this writing is still on project status but is scheduled to be completed before the year ends. Balire-Ibawon-Gibuga (BIG) which are actually new systems generating new areas shall be merged with the existing system of Bito-Daguitan to make up the new BD-BIG RIS. The new areas are located in-between the areas covered by Bito RrS and Daguitan RIS. This group of systems shall also be under the same Irrigation Superintendent. The corresponding functions and responsibilities of the Regional Irrigation Director. Irrigation Superintendents, and each section are presented hereunder: A. Office of the Regional Irrigation Director 1. Oversee the implementation of rules, regula- tions and policies of the agency within the systems. - 117 - B. Office of the Irrigation Superintendent 1. Responsible for the directions. supervision, control, administration and maintenance of the system. 2. Implement approved guidelines and instructions on improved water management and water distribution in the system to increase production, irrigated areas and cropping intensity in the service area. 3. Coordinate with other government agencies involved in the agricultural aspects and other activities that may contribute to the efficient management of the system. 4. Exercise supervision over the administrative functions and agri-institutional activities of the system. 5. Plan and develop strategies to increase collection of irrigation service fees and other income of the system. 6. Prepare and submit annual programs and budgets for the operation and maintenance of the system, prepare operation and maintenance reports, crop reports, equipment reports, and other allied reports to appropriate authorities. C. Operation and Maintenance Section 1. Operation and Maintenance Unit a. Responsible for the implementation of the 0 & M plans and programs within the service area of the system. b. Prepare and submit monthly reports of activities and accomplishments undertaken by 0 & M field personnel concerning water requirements and deliveries, irrigated areas, planted areas, areas harvested, crops damaged and pertinent information on other crops planted in the service area of the system. - 118 - c. Direct and supervise activities of watermaster's, gatekeepers, and ditch tenders and farmers in the system as far as the operation of the system is concerned. d. Assist in collecting irrigation service fees especially during peak collection period. e. Distribute bills and statement of accounts to irrigation users. f. Develop plans, programs and schedules for water releases from the diversion works to the lateral headgates along the main canal, control and distribute available irrigation water supply in consultation with the Irrigation Superintendent. g. Monitor and evaluate the effectivity and adequacy of water releases from the diversion works to the different laterals/areas. h. Prepare and submit reports of all water releases and water requirements of the system as well as hydrologic data obtained from the system. i. Undertake repairs of irrigation facilities within the system. j. Provide survey services and submit results to the Irrigation Superintendent for evaluation. k. Submit monthly accomplishment reports on the repair and improvement of the system. 1. Recommend for exclusion/inclusion of irrigated areas within the system 2. Equipment Management Unit a. Responsible for the management of all equipment, agricultural machineries and motor vehicles of the system. - 119 - b. Evaluate the performance and utilization of equipment and procure spare parts, fuel, tools and other materials needed. c. Undertake inspection, maintenance and effective utilization of equipment being used in the field. d. Undertake minor repairs of all equipment assigned in the system. e. Prepare Plans and programs for the repair of various equipment of the system. D. Administrative Section Provide services relating to Personnel records. accounting, procurement, property, cashiering and other related activities. 1. Disbursement and Collection Unit a. Takes charge of cash receipt, disbursement, control of funds and undertake payment of obligations including salaries, wages and leaves of personnel within the system. b. Responsible for the distribution of bills among irrigation users and for the collection of irrigation service fees in kind or in cash. c. Prepare reports on collection, disbursements, accountability and other related matters. 2. Accounting and Billing Unit a. Maintain complete and accurate records of all financial transactions of the system, consolidate accounting reports and statement of oblizations incurred by the system. b. Prepare financial reports on the collection performance of the system for submission to appropriate authorities. - 120 - C. Recommend court action against delinquent water users for settlement of over-due accounts. d. Conduct regular inspection and checking of all accountable forms, i.e. official receipts issued to bill collectors and assistant bill collectors. e. Responsible for the billing and collection of irrigation service fees in kind or in cash. f. Maintain accurate records of irrigation fee register, summarize bills for each cropping season, and prepare bills and statement of accounts for every cropping season in coordination with water masters/water management technologists and ditchtenders to attain client collection of irrigation service fees. 3. Procurement and Property Unit: a. Provide services for the procurement of equipment, materials and supplies for the system. b. Keep records of all equipment, materials and supplies received and issued. C. Prepare annual inventory reports of all equipment, materials, supplies and other government properties including service facilities and buildings for submittal to proper authorities. d. Facilitate insurance and registration of all vehicles of the system. 4. Personnel and General Services Unit: a. Provide security for all records, equipment, materials, supplies and other government Properties of the system. b. Provide clerical and other supportive services to all systems personnel. - 121 - c. Assist in the collection of irrigation service fees in kind or in cash. d. Provide communication and janitorial services. E. Institutional Development Section 1. In coordination with the Operation and Maintenance Section, organize and develop viable/functional irrigators associations. 2. Conduct and supervise trainings/ workshops and similar undertakings for the organization development of irrigators associations, including evaluation thereof. 3. In coordination with other institutions (local government and private agencies), formulate strategies and procedures for strengthening the capability of organized associations towards integrated agri- institutional services delivery system. 4. Develop guidelines and procedures for the gradual takeover by irrigators associations of system operation and management activities within their respective areas of coverage. 5. Gather and evaluate feedbacks and renders necessary follow-up assistance to distressed or non-functional irrigators associations. 6. Document all processes and strategies implemented in the organization and development of irrigators associations for possible adoption in other system/projects. 7. Assist the Operation and Maintenance Section in the establishment of demonstration farms and in the delivery of other assistance programs to enhance the development of irrigators associations. 8. Prepare and submit periodic accomplishment reports. - 122 - 13.05 Operation and Maintenance Budget The staffing pattern shown under 13.04 in the preceeding discussions reflects the maximum manpower requirement during maximum irrigation of the expected service area. In the first year of operation, however, it is expected that not all of the service areas shall be fully irrigated. Hence, not all positions may be filled immediately. Filling up of positions as indicated in the above staffing pattern, will be phased according to the actual needs of the systems and their ability to generate income to shoulder the additional operation and maintenance expenses. On the other hand, in due time and as envisioned, ditchtender sections shall be turned over to farmers associations for maintenance of canals. Thus, the number of positions especially ditchtznder shall be reduced accordingly. Table 13.05.1 shows the proposed budget for the first year of operation. As stated earlier, only Pamplona IS staffing pattern shall be included in this report. The bigger portion of the group of systems to which Pamplona IS belongs is still under project status. Tbus. the total number of positions, the firmed up area and the necessary budget for the whole system could not yet be determined. Assuming an annual increase of 5% in salaries as well as in other operating expense items based on the trend of prices, the annual 0 & N budget of these systems for the period 1985 - 1989 is presented also in Table 13.05.1'. 13.06 Operation and Maintenance Equipment 6 Vehicles Presented in Table No. 13.2, is the distribution of the project owned equipment and vehicles for Operation and Maintenance of the irrigation systems of the three (3) Regional Offices, in order to strengthen its capabilities. 13.07. Concept on Water Management The Operation and Maintenance Section of each system or system of the Regional Offices is responsible in carrying out water distribution, and to oversee the diversion. conveyance, regulation, measurements, distribution. and applicaion of the right amount of water at the proper time and removal of excess water from farms. Normally, this section is headed by an Irrigation Engineer who will be assisted by staff composed of watermasters, each covering the area of at least 800 hectares. gatekeepers assigned to operate major gates and at least 1.5 kms. of canal section adjacent to it to maintain and ditchtenders to maintain at least 3.50 kms. of canal section. !" -' - 123 - XIV. CONCLUSION 14.01 Effects of the Project on the Reaion and Country The most significant effect of the project on the various regions and on the country as a whole would be the increase in production of rice and other crops. With an assured supply of irrigation water for the twenty six (26) irrigation systems covered by NISIP I and the introduction of modern agricultural technologies and other support services, it is expected that cropping intensity would reach an average of 1W percent. thus increasing significantly paddy yields during wet and dry seasons. Farm income would correspondingly increase. This additional/increased income of the farmers would generate more economic activities that would gradually uplift the living standards and well being of the populace in the project areas. The project would also introduce new concepts and better alternatives in rice culture and provide farmers with an expanded financing scheme for farm inputs and extension services. The extensive networks of farm-to-market and service roads would greatly facilitate movement and transportation of farm produce as well as distribution of farm inputs. The project would also generate additional employment opportunities in the various regions. During the implementation of the project, a good number of skilled and unskilled labor were employed. Substantial permanent staff of employees would also be required to operate and maintain the irrigation facilities of the various systems under the project in the three (3) regional offices. Employment opportunities would be enhanced for members of the rural communities each year in the production of dry season crops with irrigation as well as other sectors in the pursuit of other related endeavors such as milling, storage, marketing and manufacture of farm inputs. The country as a whole, the impact of the project would be its contribution to the government program of self- sufficiency in rice and balanced regional development. This would greatly contribute to meeting the expected demand of an ever-increasing population without resorting to importation and savings or generation of precious foreign exchange. - 124 - 14.02 Lessons Learned from the Project During the project implementation, several lessons were learned from factors which adversely affected the timely completion of the project. Notable among these factors are the problems in the acquisition of right-of-way. poor performance of contractors awarded with civil works contracts, delayed procurement of construction equipment, funding constraints, natural calamities and adverse weather conditions, and delayed prosecution of pre-construction and detailed engineering works. Remedial measures to some of these negative factors/constraints, however, had since been evolved and continually being improved and adopted by the NIA management in the implementation of other projects. A brief discussion of these factors are presented hereunder: 1. ProJect Management and Implementation Aspects: a) Delays due to Problems in the Acquisition of Rights-of-Way Most of the landowners in the project area positively cooperated with the NIA in the acquisition of rights-of-ways prior to the construction of the various irrigation and drainage facilities and roads. Problems, however, were encountered when processing of claims for payments were delayed due to lack of necessary documentations and conflicting claims of other landowners and tenants. Another problem which considerably delayed implementation of the project was the reluctance of some landowners for various reasons to provide the necessary rights- of-way. To settle these problems, the NIA had to seek court action with consequential lengthy process. It is, therefore, imperative that this activity be carried out in advance of actual project implementation so that documents of ownership and properties valuation could earlier be established and conflicts between landowners and tenants earlier settled. The launching of an intensive information campaign on the various aspects of the project including the benefits - 125 - to be generated during pro-engineering stage of project implementation is another positive action to be taken to minimize problems in the acquisition of rights-of-way. b) Poor Performance of Contractors in the Implementation of Civil Works Contracts. Some of the contractors awarded civil works contracts lacks the necessary equipment, skilled manpower and financial resources and expertise in carrying out the contract works. As a result, implementation of some civil works contracts were delayed and some were subsequently taken over by force account. A more effective method in the accreditation of prospective contractors has since been evolved by NIA and continually being improved and adopted in biddings for other on-going projects. c) Delayed Procurement of Construction Equipment The procurement of the construction equipment for the proJect was considerably delayed, adversely affecting the overall implementation of the project. It is. there- fore, necessary that this particular activity be given proper consideration that it deserves in planning future projects. Previous NIA practice was to procure O&M equipment together with the regular construction equipment intended for project works to be done by force account. The presence of the 0 & M equipment during the construction phase, has tempted project management to use them for project works construction resulting in the deterioration of the equipment and higher 0 & N and repair cost during the operation and maintenance phase of the system when funding becomes limited even for more frequent repair of used equipment resulting in degeneration of services. It is now the feeling of NIA that 0 & M equipment should be purchased towards the completion of the project and before loan closing date. - 126 - d) Delays Due to Natural Calamities Numerous typhoons causing floods of significant magnitude inflicted extensive damages to completed and on-going works. This considerably delayed the overall implementation of the project and subsequent operation of the system. Similar local conditions in other project areas are now being given due consideration during pre- engineering phase with provisions for minimizing damages and likely delays due to natural calamities are included. e) Delayed Decision Making on Take Over of Delayed Civil Works Contracts Overall implementation of the project are sometimes delayed due to untimely decisions on deletion and/or take over of civil works contracts from defaulting contractors. It is essential that progresi in the implementation of civil works contracts should be properly monitored and evaluated to effect timely decision-making. It is also imperative that evaluation of the performance of the contractors should not be limited to periodic accomplishment but must include determination of adequacy of his available equipment, manpower and financial resources to forestall contract failure and afford timely management decisions on alternative solutions. A more effective method in the evaluation of contractor's performance and available resources has since been evolved by NIA and continually being improved and adopted in the supervision and administration of civil works contracts. f) Delayed Prosecution of Pre-Construction and Detailed Engineering Works Some contract works, particularly involving construction of canal and drainage networks and its appurtenant structures were bid sometimes without first establishing the firm-up quantities of the various contract items. During implementation, it was experienced that various major contract items - 127 - incurred considerable overrun of bid quantities, thereby delaying implementation of the contract works due to claims for variation orders (change orders. extra work orders) and time extensions. The main reason for this is due to the very limited time alloted in the preparation of pre- construction investigation and detailed engineering works. Other factor which contributed to the delay in the implementation of some major contracts is the revision of the previously bid plans. The bidding (ICB) for the Schistosomiasis Drainage Project in Leyte had already been conducted when tte change/revision of the design parameter for the whole drainage system was recommended by the World Bank. Subsequently, there was a significant change in the overall scope of work for the contract which was later undertaken thru local minor and small package contracts. At times, portions of contract works were deleted and taken over by force account or separate biddings (LMC, small package) were conducted in order to fully complete the contract works, however, these also involve considerable time. To minimize these delays, it would seem imperative that pre- construction and detailed engineering works be given sufficient time and effort prior to project implementation. This is now being implemented to some extent by NIA. g) Improvement of Project and Construction Management Capability While the project organization was staffed with a good number of qualified and well experienced personnel coming from other NIA projects earlier completed, there are quite a number of new professionals and workers in the organization. The continued exposure of these new and old personnel to the various aspects of the project works has undoubtedly resulted in the enhancement of the knowledge on the theory and practices of sound project and construction management which will serve them well and the NIA in the implementation of futre projects of similar nature. - 128 - 2. Agricultural Aspects a) The establishment of a proJect level agricultural development coordinating council was an effective tool in the overall planning, monitoring and evaluating the implementation of the various agri- institutional development activities in the different systems under NISIP. In the implementation of the agri- institutional commitments, the different organizational units are working under one coordinating body. Consultation and coordination with the line agencies concerned were undertaken regarding their agency's participation in pursuing the agri- institutional development commitments for the proJect. It also created harmonious relationship between the coordinating agencies and minimize overlapping of functions and responsibilities. b) The use of contractual labor services, either from an individual farmer or farmer- irrigators associations, in the maintenance of irrigation facilities is significantly cheaper and more effective than the use of regular NIA employees. Furthermore, this develops the spirit of involvement and participation on the part of the farmers served by the project facilities generating more concern in the preservation and maintenance of the facilities for uninterrupted services.