Azene Bekele-Tesemma,

AG-Consult

June 3, 2008

Opportunities for Construction

Industries at MINAGRI Government of Rwanda

Facilitating and promoting: 1. Increased productivity of land by catalyzing

comprehensive land-husbandry work on 30,250 ha land in 34 sub-watersheds and

2. Farmer-driven, and professionally managed commercial agriculture on a 10,000 ha irrigable hillside land within the same 34 sub-watersheds

Major crops Area in ha

1 Non-irrigated land area

• Potatoes 7,000

• Rain-fed coffee 5,800

• Trees/livestock fodder 5700

2 Irrigated crops

• Coffee 4,000

• Tea 2000

• Apple Mangoes 1000

• Avocado 1000

• Pineapple 1000

• Cooking banana 1000

30,250

Major land Management interventions Nearly level to

strongly

undulating (slope

0-6 %)

Grass strips/trash lines (~1km /ha) 3000

ha agroforestry interventions

Intercropping with plant cover and green manuring

Applying manure/compost at the rate of 10 tons/ha & mulching

Gently rolling to

strongly rolling

(slope 6- 16%)

Construction of soil bunds (1km/ha) (level or graded as per ACZ) 10,000

ha Planting trees/shrubs along the lower side supporting the bunds

intercropping with forage legumes and green manuring

Applying manure /compost at 10 tons/ha and mulching

Hilly to steep

(slope 16 – 40 %

Constructing Bench (radical) terraces (~1km/ha) 16, 450

ha Planting trees/shrubs along the lower side supporting the radical

terraces

intercropping and green manuring

liming with agricultural lime at 2.5 tons/ha

Applying manure /compost at 10 tons/ha and mulching

Very steep (slope

40 – 60 %)

Constructing progressive terraces (~5 km/ha) 700 ha

Intercropping and green manuring

Extremely steep

(slope 60 – 120%)

Constructing micro-basins with tree planting pits at 1000 /ha plus

in-situ conservation, feed development for zero-grazing

100 ha

30,250

Project components

Budgetary flow at implementations period

(A) Infrastructure, input & services

Transacted in the country Transacted abroad

Year 1 Year 2 Year 3 Year 4 Year 1 Year 2 Year 3 Year 4 Total

A1. Project coordination 1.34 1.66 1.14 0.86 0.98 1.22 0.28 0.22 7.7

A2. Facilitation and empowerment of beneficiaries

2.86 3.54 0 0 0.67 0.83 0 0 7.9

A3. Land-husbandry 21.87 27.12 0 0 3.44 4.26 0 0 56.69

A4. Water catchments protection

0.25 0.3 0.85 0.65 0.07 0.08 0.04 0.03 2.27

A5. Construction of 101 Reservoir & laying out conveyance

6.04 7.48 19.42 14.76 8.48 10.52 21.59 16.41 104.7

A6. Irrigation on 10,000ha 2.01 2.49 5 3.8 0.22 0.28 1.36 1.04 16.2

A7. M&E and up-scaling 0.09 0.12 0 0 0.89 1.11 0 0 2.21

(B1 ) Strengthening staffs 0.32 0.4 0 0 0.71 0.89 0 0 2.32

Total 34.78 43.12 26.41 20.07 15.47 19.18 23.28 17.69 200

Budgetary plan by source of fund and year

Year DONOR Grant

25%

Loan

60%

GoR and

Beneficiaries

15%

Total

1. 12.5 30.0 7.5 50

2. 15.5 37.2. 9.3 62

3. 12.5 30.0 7.5 50

4 9.5 22.8 5.7 38

Total 50.0 120.0 30.0 200

Internal Rate of Financial Return: 16%; NPV= 104,192,134 US $; Repayment period: 10 years.

2009 2010 2011 2012 2013 2014 2015 2016 2017

Expected benefits 3,184,972 11,336,238 21,370,085 24,437,225 30,514,291 35,898,297 35,898,297 35,898,297 35,898,297

Maintenance cost 4,497,000 4,497,000 4,497,000 4,497,000 4,497,000

Value added 3,184,972 11,336,238 21,370,085 24,437,225 26,017,291 31,401,297 31,401,297 31,401,297 31,401,297

Gross Cash flows 3,184,972 11,336,238 21,370,085 24,437,225 26,017,291 31,401,297 31,401,297 31,401,297 31,401,297

Other operating

expenses: 850,000 850,000 7,629,634 7,629,634 10,009,634 9,839,634 9,669,634 9,499,634

Depreciation 6,779,634 6,779,634 6,779,634 6,779,634 6,779,634 6,779,634

Bank charges 850000 850,000 850,000 850,000 850,000 3,230,000 3,060,000 2,890,000 2,720,000

Net profit 3,184,972 10,486,238 20,520,085 16,807,591 18,387,657 21,391,663 21,561,663 21,731,663 21,901,663

Net cash flows 3,184,972 10,486,238 20,520,085 23,587,225 25,167,291 28,171,297 28,341,297 28,511,297 28,681,297

Loan repayment 8,500,000 8,500,000 8,500,000 8,500,000

Net cash position 3,184,972 10,486,238 20,520,085 23,587,225 25,167,291 19,671,297 19,841,297 20,011,297 20,181,297

Projected income statement

Environmental Impact

1. Watershed approach

2. Interventions fitted to:

Slope categories

Agroclimatic zones

3. Dams are micro-level

4. Inundation of farms and houses very minimal

5. More natural ecosystem

6. Community-preferred crops, dam-sites

7. Labor saving & supportive to rural health and sanitation

8. Natural mitigating measures

9. Consultations with

Beneficiaries

facilitators

Thank you !!!