world bank document · document of the world bank report no. 16097 egt arab republic of egypt east...

Document ofThe World Bank

Report No. 16097 EGT

ARAB REPUBLIC OF EGYPT

EAST DELTA AGRICULTURAL SERVICES PROJECT

STAFF APPRAISAL REPORT

October 2, 1997

Appraised on behalf of theInternational Fund for Agricultural Developmentand the World Bank byRural Development, Water and Environment GroupMiddle East and North Africa Region

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CURRENCY EOUIVALENTS(As of May 30, 1997)

Currency Unit = Egyptian PoundLE 1.0 = US$0.30US$1.0 = LE 3.39LE 100 Piasters (PT)

WEIGHTS AND MEASURES

Ezvotian and/or Metric Unit Enelish/US Unit

I feddan (fd) = 1.038 acres (ac)I feddan (fd) = 0.420 hectaresI hectare (ha) - 2.380 feddan (fd)I kilometer (km) 0.621 miles (mi)1 meter (m) = 3.281 feet (ft)1 metric ton (mt) = 0.984 long ton (ton)OC- degrees centigradem2 = square metersm3 = cubic metersI gram (g) = 0.035 ounces (oz)

ABBREVIATIONS AND ACRONYMS

AERDRI Agricultural Extension and Rural Development Research InstituteAPRI Animal Production Research InstituteARC Agricultural Research CenterBDAC Bank for Development and Agricultural CreditFCRI Field Crops Research InstituteCAAES Central Administration for Agricultural Extension ServicesEA Environmental AssessmentEPAD Egyptian Project Authority for DrainageERR Economic Rate of ReturnET Extension TeamsFAO Food and Agriculture OrganizationFRCI Field Crops Research InstituteGARPAD General Authority for Rehabilitation Projects and Agricultural DevelopmentGDP Gross Domestic ProductGOE Government of EgyptICB International Competitive BiddingIDA International Development AssociationIDF Institutional Development FundIFAD International Fund for Agricultural DevelopmentMALR Ministry of Agriculture and Land ReclamationM&E Monitoring and EvaluationMED Mechanical and Electrical DepartmentMPWWR Ministry of Public Works and Water ResourcesNCB National Competitive BiddingNCC National Coordination CommitteeNLASP New Lands Agricultural Services Project

- 11 -

O&M Operation and MaintenancePBDAC Principal Bank for Development and Agricultural CreditPCC Project Coordination CommitteePMU Project Management UnitRRA Rapid Rural AppraisalSHWA Sharkiya Water AuthoritySOE Statement of ExpendituresSWRI Soil and Water Research InstituteWFP World Food ProgramWRC Water Research Center

GOVERNMENT OF ARAB REPUBLIC OF EGYPT

FISCAL YEAR

July 1 - June 30

Vice President Kemal DervisCountry Director Khalid IkramActing Sector Director Salah DarghouthManager : Richard WestinProject Controller A. Ralman (IFAD)Team Leaders J.F. Barres (until 6/96) then

M. BromheadTeam Members D. van der Sluijs, U. El-Hanbali,

N. Al-Salihi, R. Robelus, M. Usman,L. Smedema, R. Saleh, 0. Sacay,J. Ter Vrugt, S. Lintner

Project prepared by FAO/CP




Table of Contents

Chapter Page No.

Credit and Project Summary .................................................................... i

I. THE AGRICULTURAL SECTOR ................................................................. 1A. Sector Background ................................................................... 1B. Agriculture Institutions and Services ........................... ........................... 2C. Rural Banking ........................ .......................................... 3D. Lessons Learned from IDA/IFAD Experience in Egypt ............................... 3

II. PROJECT AREA AND TARGET GROUPS ..................................................... 4A. The El Salam Canal Program ............................................................... 4B. Project Area ....................... ............................................ 5C. Target Groups ................................................................... 6

III. THE PROJECT ................................................................... 8A. Project Objectives ....................................... ............................ 8B. Project Description .................................................................... 8C. Detailed Features ................................... ................................ 9D. Project Costs and Financing ................................................................. 11E. Procurement and Disbursement ............................................................. 12F. Accounting, Audit and Reporting .................................... ...................... 16G. Environmental Aspects ................................................................... 16

IV. PROJECT IMPLEMENTATION ................................................................... 17A. Status of Project Preparation ................................................................ 17B. Project Management Arrangements .............................. .......................... 17C. Monitoring and Evaluation .................................................................. 18E. Supervision ................................................................... 18

V. PRODUCTION, BENEFITS AND JUSTIFICATION .......................................... 19

VI. SUMMARY OF AGREEMENTS TO BE REACHED ............. ........................... 21

TABLES IN THE TEXT

Table 2.1: Targeted Distribution of Beneficiaries Among the Schemes ............................ 7Table 3.1: Project Cost Summary .................................................................... 11Table 3.2: Tentative Financing Plan .................................................................... 12Table 3.3: Summary of Proposed Procurement Arrangements ....................................... 13Table 3.4: Estimated Annual Disbursements . ........................................................... 14

ANNEXES

Annex 1 (a): Project Costs ......................... ......................................... 22Annex 1 (b): Organization Chart ................................................................... 38Annex 1 (c): Key Monitoring Indicators .................................................................. 39

Chart 1: Key Monitoring Indicators ................................................................ 39Chart 2: Logical Framework .................................................................. 39A

Annex 1 (d): Procurement Plan .................... 40

Annex 1 (e): Implementation Schedule - South Port Said ................. ............................ 45Annex 1 (f): Terms of Reference for Project Management Unit ..................................... 54Annex 1 (g): Project Disbursement Table ................................................................ 57Annex 2: Financial and Economic Analysis .58Annex 3: Environmental Assessment ................. 63Annex 4: Status of Implementation of Infrastructure Works .66Annex 5: Documents available in Project files .68

MAP: IBRD 28378 - Project Area LocationIBRD 28379 - Project Area

ARAB REPUBLIC OF EGYPTEAST DELTA AGRICULTURAL SERVICES PROJECT

Credit and Project Summary

Borrower: Arab Republic of Egypt

ImplementingAgency: Ministry of Agriculture and Land Reclamation

Credit Amount: IFAD: US$25 million equivalentIDA: SDR 11.1 million (US$15 million equivalent)

Terms: Standard IFAD/IDA with 35 years maturity

Service Charge: 0.75 percent

Project Objectives: The project objectives are to provide support services to facilitate the settlementand increased agricultural production of about 26,000 low income families settlingon about 130,000 feddans of recently developed lands in the East Delta.

Project Description: The project would provide: (i) agricultural support services, including extension,adaptive research and community development; (ii) on-farm infrastructureincluding tertiary irrigation and field drainage; (iii) drinking water supplies;(iv) financial services including short-term, medium-term and long-term credit;and (v) project management and monitoring services.

Environment: The project has been described as Category B for the purpose of OD 4.01. Anenvironmental and social assessment has been completed and its results areincorporated into project design. The project also supports environmentalmonitoring.

Poverty: The project is classified under poverty category "Program of TargetedInterventions" (PTI), since project beneficiaries have average incomes well belowthe rural poverty line for Egypt.

Benefits: Project benefits would comprise: (a) increased agricultural and livestockproduction, resulting both from higher yields and a more rapid build-up ofproduction as a result of project activities. Increased production would lead toincreased incomes for project beneficiaries. The project would also lay the basisfor broader development of the regional economy including creation of off-farmemployment. The second benefit is: (b) improved drinking water supply for theproject population.

Risks: Delays in establishing effective project management and coordination, leading todelays in undertaking project works and delays in realizing project benefits are themain risks. This risk has been taken into account by planning for a slow projectstart-up and a seven-year disbursement period. IFAD has also provided funds forstart-up activities in the period between negotiations and effectiveness, and theproject director and national coordinator have already been appointed.

ii East Delta Agricultural Services Project

Project Cost Summary:Foreign

Component Local Foreign Total Local Foreign Total Exchane------- (LE million) ------- ------- (US$ million) ------- %

1. Agricultural Support Services 5.8 3.7 9.5 1.7 1.1 2.8 392. On-Farm Infrastructure for

Smallholder Farms 48.3 20.8 69.1 14.3 6.1 20.4 303. Supply of Drinking Water 19.9 14.7 34.5 5.9 4.3 10.2 424. Agriculture and Agribusiness

Development 67.9 68.3 136.2 20.0 20.2 40.2 505. Project Management and Monitoring 3.2 2.1 5.3 0.9 0.6 1.6 40Total Baseline Costs 145.1 109.6 254.6 42.8 32.3 75.1 43Physical Contingencies 9.5 4.2 13.7 2.8 1.2 4.1 31Price Contingencies 33.3 7.6 40.9 9.8 2.2 12.1 19Total Project Costs 187.9 121.4 309.2 55.4 35.8 91.2 39

Financing Plan:Local Foreign Total

IDA 2.0 13.0 15.0IFAD 2.2 22.8 25.0PBDAC 11.1 11.1Beneficiaries 24.3 24.3Government 15.8 15.8

Total 55.4 35.8 91.2

Estimated Disbursement:

Fiscal Year IFAD IDA Total

Yearly Cumulative Yearly Cumulative Yearly Cumulative

1998 1.1 1.1 0.6 0.6 1.7 1.71999 4.4 5.5 2.6 3.2 7.0 8.72000 6.6 12.1 3.9 7.1 10.5 19.22001 6.2 18.3 3.8 10.9 10.0 29.22002 4.1 22.4 2.4 13.3 6.5 35.72003 1.9 24.3 1.1 14.4 3.0 38.72004 0.7 25.0 0.6 15.0 1.3 40.0

Total 25.0 15.0 40.0

Economic Rate of Return: 33 percent.Estimated Completion Date: December 31, 2003Project Identiflcation No.: EG-PE-49166




I. THE AGRICULTURAL SECTOR

A. Sector Background

1.01 The agricultural sector accounts for about 38 percent of employment in Egypt, 20 percentof GDP and 20 percent of exports. More broadly it provides the basis of the economy in the late1980s of rural Egypt, home for 54 percent of the population. Following decades of heavy stateintervention, the government embarked on a program of economic reforms, including liberalization ofprices, input supply and marketing. Although more remains to be done, these reforms have providedthe basis for market-based growth in the sector, and the initial response has been favorable. Soils arefertile, almost all land is double-cropped and with irrigation yields are among the highest in the worldfor most crops. Though there are water quality and management issues, water resources are less of aconstraint than elsewhere in the region. Egypt has a clear comparative advantage especially in cotton,horticultural products and wheat, and if the reforms remain in place the sector is well-placed forcontinued increases in productivity.

1.02 With a population in 1995 of approximately 58 million, growing at 1.9 percent per annum,Egypt has one of the poorest man/land ratios in the world. Its agricultural land (almost entirelyirrigated) represents some 7.5 million feddans (3.5 percent of the total land area) or only 0.13 feddanper person. Average farm size is 2 feddans and 50 percent of the farming population is landless. TheEgyptian government has supported both agricultural intensification and expansion of irrigated area,within soil and water constraints, for centuries. Modern land reclamation dates back 200 years;irrigated area expanded from 2 million to 5.2 million feddans during the 19th century. Governmentstarted a new program of reclamation in the 1950s, and lands reclaimed before that time are generallyknown as the "old lands". Since 1952, over 2 million feddans of new lands and "old new lands" havebeen developed, and newland reclamation has accounted for about 40 percent of sector investment inrecent years.

1.03 Studies have indicated that new lands developed 30 to 40 years ago have attained similaryields to the old lands. Lands developed more recently, however, have been slow to realize theirpotential. A recent Bank study "Land Reclamation Sub-sector Review 1990" concluded that whilephysical reclamation was relatively straightforward, agricultural services (research, extension, farmertraining, water management), adequate social infrastructure and credit were essential to achievereasonable yields and returns to investment. If these services were adequately addressed, thennewlands development could be economically viable, since investment and operating costs arerelatively low, given the flat, rather uniform terrain and minimal pumping lifts. There areenvironmental issues to be addressed, as with most newlands development projects, but with carefulplanning and execution they can be dealt with.

1.04 The area of the proposed project (see also para. 2.03) is part of a larger newlandsdevelopment scheme covering 600,000 feddans in the northeast Delta and the North Sinai, under whichland will be irrigated from the newly constructed Al-Salam Canal, using 50 percent Nile water(channeled from the northern Damietta branch of the Nile) and 50 percent agricultural drainage water(map 28379). The canal and physical reclamation works are largely complete. Total costs, includingthe irrigation and drainage infrastructure, construction of new villages and social infrastructure areestimated at US$1.7 billion, or US$6,700 per ha. Given the high cropping intensities that will be

2 East Delta Agricultural Services Project

possible, these costs are reasonable. IFAD and the Bank did not assist with financing the landreclamation, though the Bank did support in 1992 an Environmental Impact Assessment of the NorthSinai portion of the project.

B. Agriculture Institutions and Services

1.05 The Ministry of Agriculture and Land Reclamation (MALR) is responsible for supportservices to agriculture. In addition to its five central agencies (extension, services and monitoring,economic affairs, administration and finance, and the Minister's office), it has a number of semi-autonomous agencies, including the General Authority for Rehabilitation Projects (GARPAD) and theAgricultural Research Center (ARC). Extension at governorate level is provided largely by the CentralAdministration for Agricultural Extension Services, but there are overlapping responsibilities betweenagencies, and between governorates and headquarters in Cairo. These broader institutional difficultieswould not be addressed through the proposed project, which would focus on introducing effectiveextension to the project area.

1.06 ARC includes 16 research institutes and 5 central laboratories covering a wide range ofagricultural activities. Among the institutes, the Soil and Water Research Institute (SWRI), the FieldCrops Research Institute (FCRI), the Animal Production Research Institute (APRI), and theAgricultural Extension and Rural Development Research Institute (AERDRI) would be of particularrelevance for the proposed project.

1.07 The General Authority for Rehabilitation Proiects (GARPAD) establishes policy andcoordinates implementation of reclamation and development of desert land in Egypt, includingconstruction of irrigation and other economic and social infrastructure. The reclaimed lands are soldto settlers and GOE support varies according to the category of settlers, with land for investors beingsold on commercial terms, and land for small-scale farmers sold on concessional terms. GARPAD'sregional office in Zagazig supervises on-going reclamation works in the project area.

1.08 Since 1988 one key element of GARPAD's new land allocation policy has been theMubarak Program, under which young jobless university and high school graduates receive a plot of 5feddans of reclaimed land and one house in a village built by GARPAD. They reimburse LE 10,000over 30 years, without interest and including a 3 year grace period. In addition, they receive duringthe first year of settlement LE 50/month. Graduates receive the land with tertiary irrigation anddrainage works completed as well as the first leaching done by GARPAD. The Mubarak Program islinked to the broader government policy of phasing out guarantee of public sector employment tograduates. Open unemployment in Egypt is concentrated (75 percent) among young people, 90 percentof whom have a university or high school diploma. In the East Delta project area, about 25 percent ofthe land has been allocated to graduates under this program.

1.09 At the governorate level in addition to the GARPAD regional offices, MALR isrepresented by the directorates of Agriculture, Agrarian Reform, Agricultural Cooperatives,veterinary services, Irrigation and Agricultural Drainage. At the village level, Village ExtensionWorkers are attached to the CAAES. The governorate administration is responsible for provision oflocal services, including schools, health services, water supply, refuse disposal and village roads.While schools and health services have been opened in graduate villages as soon as they attain a criticalmass of population, provision of drinking water has proved a much greater problem, particularly forSouth Hussainya and North Hussainya, where there is no nearby surface or groundwater source offresh drinking water.

East Delta Agricultural Services Project 3

1.10 The Ministry of Public Works and Water Resources (MPWWR) is responsible for thedevelopment of water resources and the construction and maintenance of the irrigation and drainagesystems. Its irrigation department operates and maintains public canals. The semi-autonomousEgyptian Public Authority for Drainage Projects (EPAD) is responsible for implementing drainageprojects and maintaining both surface and sub-surface drainage systems. The Water Research Center(WRC) conducts research on water related issues including the re-use of drainage flow. TheMechanical and Electric Department (MED) is responsible for installing, operating and maintaining allirrigation and drainage pumping stations.

C. Rural Banking

1.11 Much agricultural finance is raised by producers from their own resources, friends orrelatives. Agriculture, accounting for 20 percent of GDP, received only 9 percent of formal credit in1995. The Principal Bank for Development and Agricultural Credit (PBDAC), established in 1931, isthe principal source of formal credit in the sector. It currently accounts for 78 percent of agriculturallending and its portfolio totaled LE 5.6 billion in 1995. Historically, PBDAC has a sound financialsituation and its recovery rate is very good. PBDAC is a holding company for the 17 Banks forDevelopment and Agricultural Credit (BDACs) which provide credit at governorate level. There are atotal of 154 district branches and 804 village banks. BDACs exist for the project area governorates ofDakhalia, Sharkia and Ismailya. There is a district branch in Hussainya (Sharkia), just to the south ofthe project area (para. 2.03), and a village bank in Bahr el-Bakr; other branches do not presently notexist in the project area, because of its limited population. Credit for farming and small-scaleagribusinesses would be channeled through PBDAC under the proposed project, at market-basedinterest rates.

D. Lessons Learned from IDA/IFAD Experience in Egypt

1.12 Up to 1994, IFAD had provided five credits to Egypt The two IFAD projects mostrelevant to the proposed project are located in the New Lands of the West Delta; namely: (a) the WestBeheira Settlement Project (1980 to 1992), which financed irrigation infrastructure as well asagricultural services, and (b) the New Lands Agricultural Services Project (NLASP) in Nubaria regionwhich started early in 1994, and finances credit and farmer services. NLASP is in an area with sandysoils, while the proposed project area consists of heavy saline clay soils.

1.13 About one-quarter of World Bank lending has been to the agricultural sector. Much hasbeen directed at improving irrigation, drainage and pumping systems; recently there has been lendingto support private sector involvement, particularly small farmers, through the ongoing AgriculturalModernization Project. IDA has financed one project involving new lands, the West NubariyaNewlands Development Project (Cr 1083) in 1980, which financed land development and basicinfrastructure as well as services.


1.14 The following lessons have been learned from previous Bank and IFAD activities:

(a) There is a need for a strong coordination mechanism for projects which involve severalministries and organizations; an experienced project manager resident in the projectarea is important for effective implementation;

(b) Participation of project staff and beneficiaries in project design facilitatesimplementation; and government commitment is essential; and

(c) Credit components managed by Project Management Units and providing credit onsubsidized terms, are not sustainable; credit should be channeled through the bankingsystem and should be available quickly after farmers settle in the new areas.

1.15 More particularly, experience with the West Nuberia Newlands Agricultural ServicesProject supported by IFAD (para. 1.12) shows that the success of the settlement programs is closelylinked to the following conditions:

(a) efficient operation of the irrigation and drainage system;

(b) availability of basic social infrastructure and services such as reliable and affordabledrinking water supply, health facilities, social clubs, schools and mosques;

(c) access to credit;

(d) technical know-how of the graduates;

(e) availability of hired labor;

(f) access to markets; and

(g) adequate financial and technical support during the initial years is critical given thespecific conditions of the project area (high initial salinity requiring up to three yearsof leaching and reclamation cropping).

1.16 These lessons have been taken into account in the design of the proposed project.

II. PROJECT AREA AND TARGET GROUPS

A. The El Salam Canal Program

2.01 Construction of the El Salam Canal began in the 1980's. The objective is to irrigate about600,000 feddans (250,000 ha) of new lands including 200,000 feddans in the project area, west of theSuez Canal, and 400,000 feddans in the North Sinai. The Canal length is 86 km from its intake atFarasqour Barrage on the Damietta Branch of the Nile in the East Delta along the south end of LakeManzala to the Suez Canal. It crosses under the Suez Canal through four 5.1 m diameter siphons andcontinues for another 168 km to service an additional 400,000 feddans of land in Northern Sinai.Construction is complete to the west of Suez Canal, and is expected to be completed in Sinai in 1998.The water supply will be a mixture of agricultural drainage and fresh water from the Nile with a

East Delta Agricultural Services Project S

salinity level of 800 to 1,000 ppm, with 2.2 BCM of freshwater and 2.2 BCM of agricultural drainagewater from El-Sewr and Bahr Hadous drains. A modern water management and communicationssystem will control the water distribution, the mixing ratio, the civil works and pump stations.

2.02 GARPAD supervises the infrastructure works carried out by five public land reclamationcompanies. In addition to secondary and some tertiary irrigation and drainage networks, theinfrastructure includes villages and housing for the settlers, roads, electricity, drinking water supply,health centers, mosques, etc. (paras. 1.07 and 1.08). The Ministry of Water Resources is responsiblefor water allocation, finalizing design and construction drawings for the irrigation drainage systems,and operation and maintenance of those systems. MPWWR will also promote and supervise theestablishment of water users' associations (para. 1.10).

B. Project Area

2.03 The project area is located in the New Lands East of the Delta between the Suez Canal andLake Manzala (See Maps 28378 and 28379 ). It comprises about 200,000 feddans (85,000 ha) in thefour governorates of Port Said, Ismailya, Sharkia and Dakhalia. It consists of six irrigation/drainageschemes along the El-Salam Canal, namely: Mataria; South Hussainya; North Hussainya; South PortSaid; South Port Said Plain and Um El Reesh. Total irrigation water requirement is about 1,250million m3 for the East Delta irrigated area of 203,000 feddans, and leaching water requirements arean additional 10 per cent. MPWWR has stated that adequate water will be made available to theproject area, in line with National Policy. Irrigation water will be delivered to the different schemesafter the infrastructure is completed according to MPWWR standards. This is expected by early 1997.

2.04 Climatic conditions are characteristic of the eastern Mediterranean, with hot summers andmild winters. Rainfall varies from 40 to 90 mm annually and occurs usually from October to March.All crops are grown under irrigation during two major growing seasons: winter (November to April),and summer (May to October).

2.05 The geology of the area is characterized by fluvio-marine alluvium deposits (10-30 m deep)of fine textured soil transported by the Nile River. Soil textures vary from silt loams to heavy clays.Seashells and small amounts of gypsum are present in most profiles. The soils are highly saline butare well suited for irrigation once the soluble salts have been leached from the 0-50 cm depth. Underthe soil surface layers, there is a clay cap at depths varying from 0.5 to 3.0 meters. The depth of thisclay cap from the soil surface forms the most important criterion upon which the land reclaimabilityclassification has been based. Groundwater below this clay cap is saline. The topography is very flatwith land elevations generally ranging from 0.5 m below sea level to 3 m above mean sea level.

2.06 Initial reclamation of these soils is not a problem provided adequate water for leaching issupplied and field drains and drainage pumping stations are operational. Analysis has also indicatedthat these soils are not polluted. Once fully reclaimed they are capable of producing crop yieldssimilar to those in the Delta, given the same water allocation and quality.

Status of Infrastructure Completion

2.07 Irrigation and drainage infrastructure are largely complete and pumping equipment is beinginstalled. The area is being developed in phases. Graduate settlement began in South Hussainya in1993-94; it is planned for Um El Reesh in 1998, South Port Said Plain in 1999-2000, South Port Saidin 1999-2000 and North Hussainya in 1998-2000. The situation for each scheme as of September


1996 is detailed in Annex 6; once irrigation water is available settlement is likely to increase rapidly.Twelve villages for graduates have been constructed to date with about 7500 houses and servicebuildings (schools, health centers, mosques and community and administrative buildings).

2.08 Drinking Water Supply. Water supply networks within the villages have been constructedby GARPAD. Provision of bulk water supply to the villages is the responsibility of the governorateadministrations but has been a problem in some areas. Furthermore since the groundwater is saline,and the canal water is partially drainage water, use of local sources as an interim measure (the solutionin most of rural Egypt) poses difficulties. Four compact water treatment units have been installed andtwo more are under construction on the Port Said Canal to supply piped water for villages in Um ElReesh, South Port Said Plain and South Port Said sub-schemes. Drinking water for South Hussainya,South Port Said Plain and Mataria El Salam is currently supplied by tanker, costing about LE 15 percubic meter. Reliable drinking water supply will be a key element in sustainable settlement of thearea.

2.09 Electricity and Telecommunications. Substations and power lines for pumping stationshave been established in most areas with three of the seven stations having been connected and work iscontinuing to connect others as they come on line. It is envisaged that graduate villages will besupplied with a wireless telephone unit to be located in the main office of the village after settlement.

C. Target Groups

Status of Settlement in East Delta

2.10 A total of 203,000 feddans of reclaimed land has been distributed among two principalgroups of beneficiaries. Poor farmers have been allocated 128,850 feddans, or 64 percent of the totalreclaimed are on concessional terms, while investors have been allocated 74,100 feddans, or 36 percentof the reclaimed area, on commercial terms.

2.11 The poor farmers, totaling about 26,000 families, constitute the target group. Theycomprise three sub-groups: smallholders (6,800), who will cultivate 30,800 feddans; landreclamation cooperative members (10,450) who will cultivate 51,500 feddans; and secondary schooland university graduates (9,300) who will cultivate 46,550 feddans.

2.12 Much of the project area has not yet been settled, as social infrastructure is still beingcompleted, and irrigation water will be available to most of the area only by early 1997. About 7,000families in the target groups are, however, largely settled in the area. These include smallholders(5,000) of whom 2,000 in Mataria have been cultivating land for about 8 years with drainage water.The remainder live along the main drains (Bahr El Bakar, Hadous, Ramsis and Serw). Some graduatesare now settling in South Hussainya; where water is available they have begun leaching, cultivationand small livestock operations.

Poverty in the Project Area

2.13 The recent update of the Egypt Poverty Assessment (November 1995) estimated the ruralpoverty line at LE 6,406 for annual household income (LE 1,131 per capita). A Rapid RuralAssessment of project beneficiaries was undertaken in late 1994; per capita incomes were estimatedduring this survey, and compared with this poverty threshold.


Table 2.1. Targeted Distribution of Beneficiaries Among the Schemes

Graduates Small Holders Cooperatives Investors TotalScheme

No. Area No. Area No. Area No. Area No. Area(fed) (fed) (fed) (fed) (fed)

Mataria - - 2,000 8,000 - - - 2,000 8,000

North Hussainya 1,800 9,000 2,640 13,200 550 7,800 4,990 30.000

South Hussainya 2,540 12,700 . - 2,000 44,300 4,540 57,000

South Port Said 568 2,850 257 1,600 8,000 34,000 175 1,000 9,000 39,450

South Port Said Plain 2,700 13,500 1,100 5,500 2,450 17,500 2035 20,500 8,285 57,000

Um El Reesh 1,700 8,500 775 2,500 33 500 2,508 11,500

Total 9,308 46,550 6,772 30,800 10,450 51,500 4,793 74,100 31,323 202,950

2.14 Poverty among Smallholders (about 6,500). They represent about 26 percent of thebeneficiaries on 24 percent of the area (31,000 feddans). Smallholders (about 6500), compriseprincipally families referred to as "squatters" (Wadhi Al-Yed) who settled, up to 40 years ago, onpublic land. They have established their right through long lasting occupancy along the drains andaround Lake Manzala. Some also were previously small fishermen who have been allocated land,others are small farmers who practiced irrigated agriculture using drainage water, or sewage waterfrom the Bahr El-Bakr drain. Average landholdings are 4.5 feddans. The RRA conducted in late 1994estimated average per capita incomes of the this group at 75-85 percent of the poverty line.

2.15 Poverty among the Graduates (9,500 beneficiaries, of whom 19 percent are women).The unemployed university or high school graduates represent about 34 percent of the beneficiaries,and are being settled under the Mubarak National Program for the Graduates (see Chapter 1). Anattempt is made to select young people from neighboring areas so that they can receive assistance fromtheir families in the first years. They are allocated 5 feddan holdings. Most graduates come fromvery modest backgrounds, and the results of the RRA indicate that average incomes of graduatesalready settled in the area 70-75 percent of the rural poverty line.

2.16 Poverty among Cooperative members (10.450 beneficiaries). These constitute 38 percentof beneficiaries on 40 percent of the land area. They comprise members of the 29 Land Reclamationcooperatives established (following the reclamation act for the project area)a, have formed New LandsCooperatives in order to have access to the partially reclaimed land, and them completing itsreclamation and cultivation. Average landholdings are 4.5 feddans. Members are often drawn formthe same community and may include government employees, pensioners and small traders with noland elsewhere, as well as small farmers. The cooperatives share the cost of pumping, maintenance ofsecondary canals and group credit. The RRA indicated that average incomes of this category are about80 percent of the poverty threshold.

2.17 The project would aim to increase the income of the project beneficiaries above the povertylevel (see para. 5.04).

2.18 Investors. This group comprises about 4800 small and large investors buying about 74000 feddans. They do not constitute the target group for the project.


2.19 Proiect Rationale and Relationship with Country Assistance Strategy. The project isconsistent with both the IDA and the IFAD country assistance strategy for Egypt. IFAD's strategy isto increase rural incomes in a cost effective and sustainable way, with a focus on smallholders and therural poor. IDA's strategy (CAS of May 1997) has four principal themes: (a) creating a strong exportpush; (b) promoting private sector development; (c) developing human resources; and (d) developingrural infrastructure and protecting the environment. The proposed project focuses above all on thefourth of these themes by supporting more efficient use of land and water (through extension) andcompletion of infrastructure and drinking water; but also the second by supporting small privatefarmers and farm enterprises (through credit).

2.20 Other land reclamation projects have illustrated that provision of adequate agriculturalservices is key in ensuring that the sunk costs of the investment in infrastructure are utilized and yieldadequate return. This conclusion was confirmed by the recent Bank report "Egypt: Land ReclamationSub-sector Review 1990". At relatively little incremental cost, the Project should help to ensure theviability of the newlands development. At a broader level, the project is consistent with several of thekey objectives of the Bank/GOE "Agricultural Strategy for the 1990's', in particular (i) sustainableexpansion of land and water availability; (ii) generation of increased rural employment; and (iii)increased agricultural production to meet domestic demand, exports and where competitive tosubstitute for imports. Furthermore the policy environment has been substantially liberalized in recentyears, and there are few remaining distortions (para. 1.01).

III. THE PROJECT

A. Project Objectives

3.01 Project Obiectives. The objectives of the proposed project are to provide support servicesto facilitate the settlement and increased agricultural production of about 26,000 families on about130,000 feddans of newly developed lands in the East Delta, leading to increased farm incomes andlaying the basis for the development of a viable rural economy in the East Delta area. These projectbeneficiaries would comprise up to 9,300 graduates on 46,000 feddans, 6800 smallholders on 31,000feddans, and 10,450 cooperative members on 51,500 feddans.

B. Project Description

3.02 The project would provide essential agricultural support services to the target group. Itwould have the following components:

(a) Agricultural Support Services (US$2.8 million base cost). The project would provideagricultural extension services and adaptive research service to smallholders, graduatesand cooperative members. It would also support the development of water usersassociations and service cooperatives;

(b) On-farm infrastructure. (US$20.3 million base cost). The project would financetertiary irrigation and drainage works on about 20,000 feddans for smallholders andcooperative members;


(c) Rural Water Supply (US$10.2 million base cost). The project would install drinkingwater supply in the two sub-schemes of North and South Hussainya serving about50,000 people;

(d) Financial Support Services (US$40.2 million base cost). The project would support aline of credit through PBDAC for short-, medium- and long-term credit for purchase ofagricultural inputs, livestock, farm machinery, and equipment for agro-processing. Inaddition, the project would also support the establishment of four new village banks;and

(e) Project Management. Monitoring and Evaluation (US$1.6 million base cost). Theproject would finance a Project Management Unit to be responsible for projectimplementation, monitoring and evaluation including environmental monitoring.

C. Detailed Features

Agricultural Support Services (US$2.8 million base cost).

3.03 The project would provide logistical support and training to extension staff, inputs fordemonstration plots on farmers' fields and multimedia extension materials. Field extension staff wouldbe nominated from existing staff in the project governorates, supported by specialized extension staffin mobile teams. Extension would focus initially on reclamation crops, and then broaden to includeplant protection, soil and water management, farm management, livestock husbandry and marketing.

3.04 The project would support field cost of researchers, training, technical assistance andinputs for experimental plots, and equipment for the recently completed soil and water research stationin the project area, which would be responsible for soil and water quality monitoring. Researchers atthe neighboring stations of El-Sewr, Kassasim and Tag El-Eiz would assist extension staff with fieldtrials and problem solving, backed by staff from other stations in Egypt as necessary.

3.05 The project would finance office equipment, vehicles, and technical assistance costs, andcommunity development officers and assistants, and training for cooperative board members andmembers of water users associations. It would support community organizations in the project area,including cooperatives, primarily in order to assist farmers with group access to credit, anddevelopment of water user associations .

On-farm Infrastructure for Smallholder Farmers (US$20.4 million).

3.06 The project would finance the construction of on-farm tertiary irrigation and drainagesystems for smallholders on about 20,000 feddans (at LE 3,500 per feddan). Smallholders wouldcontribute 20 percent of the cost through labor (about US$5.1 million equivalent), largely forearthworks for land leveling, canals and drains. The project would complement the support alreadygiven to graduates through GARPAD. The support would be arranged through the contractors.


Rural Water Supplv (US$10.2 million base cost)

3.07 The project would finance piped drinking water supplies to villages in South Hussainyaand North Hussainya, including a treatment plant and conveyance system from the Al-Salheya Canal.Population to served at full development would be about 50,000.

Financial Support Services (US$40.2 million).

3.08 The project would provide a line of credit for the following activities:

(a) Seasonal and short-term credit, for items such as seed, fertilizer, machinery and laborhire and pumping costs;

(b) Medium-term credit. (up to 5 years) for items such as tractors, implements, stationarythreshers, establishment of agricultural machinery hire services, rice and wheat mills,and equipment for dairy processing and raising livestock; and

(c) Long-term credit for agribusiness , over 5 years) for items such as private veterinaryclinics, milk collecting centers, milk processing units, vegetable processing units,animal shelters, etc.

3.09 Investment would be demand driven, and credit would be provided under PBDAC'sprevailing terms and conditions at the time of borrowing, which are based on market rates. Theserates are currently 11 percent (plus 1 percent service charge) for seasonal credit, 12 percent (plus 1percent) for medium-term credit, and 13 percent (plus 1 percent) for long-term credit. According toPBDAC policy, beneficiary contribution for short-term credit is 30 percent, and for medium- and long-term credit it is 50 percent. A Subsidiary Loan Agreement would be entered into between PBDACand the Government of Egypt before credit effectiveness.

3.10 Institutional Support. The project would assist PBDAC in establishing and equipping fournew village banks in the project area. Staff training and logistical support would also be financed.

Project Management and Monitoring (US$1.6 million base costs)

3.11 Project Management. The project would finance a Project Management Unit (PMU) forplanning, procurement and coordination, including technical experts, office equipment, transportation,training and incremental operating costs of the unit.

3.12 The project would also support project monitoring and evaluation, including technicalexperts and logistical support. Environmental monitoring would focus on soil and water qualitymonitoring would include monitoring of groundwater, irrigation water, and water discharged into LakeManzala.


D. Project Costs and Financing

Project Costs

3.13 Total project costs including physical and price contingencies are indicated in Table 3.1below. They are estimated at LE 309 million (US$91.2 million) including physical and pricecontingencies, of which the foreign exchange component is LE 121 million (US$36 million) or 39percent of total cost. Import duties and sales taxes are reflected in the calculation of the project cost.Price contingencies amount to 16 percent and physical contingencies for civil works to 15 percent ofbase cost. Detailed costs are provided in Annex 1(a).

Table 3.1. Project Cost Summary

ForeignLocal Foreign Total Local Foreign Total Exchange----------- (LE '000) ---------- (US$ '000) --- %

A. Agricultural Support Services1. Adaptive Research and Training 1,397.0 975.6 2,372.6 412.1 287.8 699.9 412. Extension and Training 2,127.5 2,121.9 4,249.4 627.6 625.9 1,253.5 503. Community Development 2,285.1 573.3 2,858.5 674.1 169.1 843.2 20

Subtotal 5,809.6 3,670.8 9,480.4 1,713.8 1,082.8 2,796.6 39B. On-Farm Infrastructure 48,309.0 20,785.5 69,094.5 14,250.4 6,131.4 20,381.9 30C. Supply of Drinking Water 19,880.3 14,659.2 34,539.5 5,864.4 4,324.2 10,188.7 42D. Financial Support Services

1. Short-Term Credit 31,783.0 14,820.1 46,603.1 9,375.5 4,371.7 13,747.2 322. Medium-Term Credit 26,099.2 47,048.1 73,147.3 7,698.9 13,878.5 21,577.4 643. Long-Term Credit 8,981.1 5,207.5 14,188.6 2,649.3 1,536.1 4,185.4 374. Support to Village Bank 1,028.1 1,266.4 2,294.5 303.3 373.6 676.8 55

Subtotal. 67,891.4 68,342.0 136,233.4 20,026.9 20,159.9 40,186.8 50E. Project Management and

Monitoring1. Project Implementation Unit 2,077.8 1,444.8 3,522.7 612.9 426.2 1,039.1 412. Monitoring and Evaluation Unit 662.6 408.5 1,071.1 195.5 120.5 316.0 383. Environmental Monitoring and

Supervision 427.5 276.5 704.0 126.1 81.6 207.7 39

Subtotal 3,167.9 2,129.9 5,297.8 934.5 628.3 1,562.8 40Total Baseline Cost 145,058.2 109,587.4 254,645.7 42,790.0 32,326.7 75,116.7 43

Physical Contingencies 9,547.3 4,199.2 13,746.5 2,816.3 1,238.7 4,055.0 31Price Contingencies 33,302.3 7,577.6 40,879.8 9,823.7 2,235.3 12,058.9 19

Total Project Costs 187,907.8 121,364.2 309,272.0 55,430.0 35,800.6 91,230.7 39

Financing Plan

3.14 The proposed IFAD Loan of US$25 million would finance 27 percent of the project costsnet of duties and taxes. At Negotiations, it was confirmed that all conditions precedent to theeffectiveness of the IFAD loan have been fulfilled, other than those related to the effectiveness of theIDA credit. The proposed IDA credit of US$15 million would finance a further 16 percent. Localfarmers and small entrepreneurs would contribute 28 percent, PBDAC 12 percent, and Government 17percent of project costs. The rinancing plan is given in Table 3.2 below.


Table 3.2. Financing Plan (US$ millions)

Local Foreign Total

IDA 2.0 13.0 15.0IFAD 2.2 22.8 25.0PBDAC 11.1 11.1Beneficiaries 24.3 24.3Government 15.8 15.8

Total 55.4 35.8 91.2

3.15 During negotiations, assurances were provided that Government and PBDAC wouldmake available their own share of financing in a timely manner. Beneficiary contribution to thecredit component would follow PBDAC guidelines (para. 3.09). Contribution to the onfarmdevelopment would be equivalent to 25 percent of the cost of the works, through labor.

E. Procurement and Disbursement

Procurement

3.16 The table below summarizes the project elements and their estimated costs and proposedmethods of procurement.


Table 3.3. Summary of Proposed Procurement Arrangements

Project Element Procurement Method (US$ M)1'

ICB NCB NIF OTHER TOTAL

Civil Works 8.2 21.9 5.42, 35.5IFAD/IDA (3.7) (12.3) (16.0)(IFAD) (2.3) (7.7) (10.0)(IDA) (1.4) (4.6) (6.0)

Vehicles, Lab. equipment, Material 4.0 1.0 1.0 6.0IFAD/IDA (3.7) (0.7) (0.9) (5.3)(IFAD) (2.2) (0.4) (0.5) (3.1)(IDA) (1.5) (0.3) (0.4) (2.2)

Goods (credit) 45.8 4 45.8IFAD/IDA (16.1) (16.1)(IFAD) (10.1) (10.1)(IDA) (6.0) (6.0)

Consultancy Services and Training 2.2L5 2.2IFAD/IDA (2.1) (2.1)(IFAD) (1.2) (1.2)(IDA) _ _ (0.9) (0.9)

Incremental Operating Costs 1.76 1.7IFAD/IDA (0.5) (0.5)(IFAD) (0.5) (0.5)

Total 12.2 22.9 5.4 56.2 91.2IFAD/IDA (7.4) (13.0) (19.6) (40.0)(IFAD) (4.5) (8.2) (12.3) (25.0)(IDA) (2.9) (4.8) (7.3) (15.0)

Note: Totals may not add up due to rounding/L Figures in parentheses are the respective amounts financed by IFAD and IDA./2 NEF: Not IDA or IFAD financed; beneficiaries contribution of labor./3 Local Shopping will be used to procure these goods./4 Procurement by private sector under procedures acceptable to IFAD and IDA./5 Consultants and TA services recruited in accordance to IFAD's and IDA's Consultant Guideline/6 icremental operating costs comprise largely fuel, which would be purchased according to GOE's standard

procedures and field allowances on the standard GOE salary scale. They also include incremental goodsoperating costs, field bonuses of project staff, and incremental office operating costs.

3.17 Procurement of farm machinery, equipment and goods through the line of credit wouldrespond to market demand involving numerous dealerships, with equipment imported by the privatesector. It is not feasible to package the number of contracts. Most import orders would be in therange of US$5,000 to US$200,000, and too dispersed and small scale to be eligible for ICB; after salesservices is of critical importance in the choice of equipment by the beneficiaries. Procurement ofvehicles, laboratory and office equipment. water treatment plant. and civil works for the drinkingwater supply system would follow ICB in accordance with IFADIIDA guidelines, except for contracts


below US$200,000, for which NCB would apply. Local shopping could be used for contracts ofUS$20,000 or less up to an aggregate of US$1 million. Eligible Egyptian manufacturers competingunder ICB would receive a preference in bid evaluation of 15 percent provided they can prove that (i)labor, raw materials and components from within Egypt will account for more than 30 percent of theexact price of the product offered, and (ii) the production facility in which those goods will bemanufactured or assembled has been engaged in the manufacture/assembly of such goods at least sincethe time of bid submission. Civil works for the on-farm tertiary irrigation and drainage works(US$21.9 million) would be packaged and awarded through NCB procedures, since these works arescattered in the project area and will not be attractive to foreign contractors. Local contractors arealready working in the area. Consultants for the various forms of technical assistance under the projectwould be engaged following procedures and on terms and conditions satisfactory to IFAD. The priorreview threshold would be US$100,000 for the services of consulting firms, US$50,000 for individualconsultants, US$200,000 for goods and US$500,000 for works. This would cover at least 80 percentof total contract value (except for the goods purchased through the credit component, which are notamenable to prior review and would be purchased under commercial practices). At Negotiations GOEagreed to the procurement arrangements outlined above.

Disbursement

3.18 The proposed IFAD loan of US$25 million and IDA credit of US$15 million are expectedto be disbursed in accordance with the following estimated disbursement schedule summarized below(see details in Annex lj):

Table 3.4. Estimated Annual Disbursements (CY US$ millions)

IFAD IDA TotalFiscal Year

l_________ Yearly Cumulative Yearly Cumulative Yearly Cumulative

1998 1.1 1.1 0.6 0.6 1.7 1.71999 4.4 5.5 2.6 3.2 7.0 8.72000 6.6 12.1 3.9 7.1 10.5 19.22001 6.2 18.3 3.8 10.9 10.0 29.22002 4.1 22.4 2.4 13.3 6.5 35.72003 1.9 24.3 1.1 14.4 3.0 38.72004 0.7 25.0 0.6 15.0 1.3 40.0

Total 25.0 15.0 40.0

3.19 Insofar as practicable, IFAD/IDA disbursements will be disbursed in an approximate ratioof 5 to 3. Withdrawal of the proceeds of the IFAD loan and IDA credit would be in accordance to thefollowing percentages:1'

For the purposes of the disbursement schedule, the components to be implemented through the Ministryof Agriculture and Land Reclamation (i.e., Agricultural Support Services, On-farm Infrastructure,Drinking Water and Project Management) are defined as Part A of the Project, while those activitiesimplemented by PBDAC are defined as Part B.


(1) Civil works for Part A - IFAD: US$9 million, IDA: US$5 million45 percent of total expenditures (IFAD 28 percent, IDA 17 percent)

(2) Goods for Part A of the Project - IFAD: US$3 million, IDA: US$2 million; 100percent of foreign expenditures, 100 percent of local expenditures (ex-factory price)or 70 percent of expenditures for goods procured locally: IFAD 67.5 percent andIDA 32.5 percent; (for other local expenditures of goods procured locally: IFAD41.5 percent, IDA 28.5 percent)

(3) Technical assistance, training, studies for Part A of the project - IFAD: US$1million, IDA: US$1 million; 100 percent of total expenditures (IFAD: 50 percent,IDA 50 percent)

(4) For Part B of the project:(a) Subloans: IFAD: US$10 million or 37% of the Subloan

IDA: US$6 million or 23% of the Subloan(b) Goods, Works & Training for Part B of the Project:

IDA: US$1 million or 60%.

(5) Recurrent expenditures - IFAD: US$0.5 million:30 percent of total expenditures

(6) Unallocated - IFAD: US$1.5 million

TOTAL - IFAD: US$25 million, IDA: US$15 million

Retroactive financing would be provided up to 10 percent of the loan/credit amount, mainly forearthworks and small structures of the tertiary irrigation system, for expenditures incurred afterDecember 31, 1996.

3.20 To facilitate project execution, four Special Accounts would be established, one for eachimplementing agency (MALR and PBDAC respectively) and one for each financing agency (IDA andIFAD). GOE would establish two Special Accounts in the Central Bank, in US dollars, with initialdeposits of US$1.0 million out of the IFAD credit and US$0.5 million out of the IDA credit[equivalent to four months expected expenditures under the infrastructure, management and agriculturalsupport components of the project (see Table 3.1)]. PBDAC would open on its book two SpecialAccounts for US$0.6 million out of the IFAD credit and US$0.4 million out of the IDA credit[estimated four months expenditure under the financial support component of the project (Table 3.1)].Disbursement would be made against Statements of Expenditures (SOE) except for contracts for goodsabove US$200,000, for works contracts above US$500,000, and for TA contracts above US$50,000for individuals and US$100,000 for firms, for which full documentation would be required. Relevantdocumentation in support of SOEs would not be submitted to IFAD/IDA, but would be retained by thePMU and made available to IFAD/IDA supervision missions and to independent auditors.Applications for replenishment of the Special Account would be submitted monthly, or whenever theSpecial Account is drawn down to 50 percent of the initial deposit, whichever occurs first. GOEagreed to these disbursement procedures at negotiations.

Recurrent costs include incremental vehicles and goods operating costs, field bonuses of project staff,and incremental office operating costs.


3.21 Project completion is expected by December 31, 2003 and it is anticipated that the IFADLoan/IDA credit will be fully disbursed six months after that date. The Closing Date would,therefore, be June 30, 2004.

F. Accounting, Audit and Reporting

3.22 The Project Management Unit (PMU) would establish and maintain separate project-relatedaccounts at the central office responsible for project execution. These accounts would be maintained inaccordance with internationally recognized accounting principles and practices satisfactory to IFADand IDA. The PMU would provide bi-annual and annual financial statements to reflect expendituresunder the project. An auditor's opinion and reports satisfactory to IFAD on these statements wouldbe provided within six months of the closing of the fiscal year. The auditor's report will include astatement on the adequacy of the accounting system and internal controls, and the reliability ofstatements of expenditures as a basis for loan disbursements.

3.23 The PBDAC and its regional BDACs serving the project area will maintain theiraccounting system in accordance with sound internationally recognized accounting principles andpractices acceptable to IFAD and IDA. They would provide annual budgets, quarterly progressreports, summary loan statements and annual financial statements that reflect the financial performanceand position of the line of credit. The PBDAC and its branches would maintain detailed memorandarelating to sub-project cycle progress including appraisals, approvals, disbursements, contribution fromborrowers, interest charges, installments due, collections, overdue and follow-up action. These reportswould be reviewed periodically by IFAD supervision missions. An auditor's opinion and reportssatisfactory to IFAD would be provided within nine months of the close of the fiscal year. Theauditor's report will include a statement on the adequacy of the accounting system and internalcontrols, the reliability of statements of expenditures as a basis for loan disbursements, and compliancewith financial covenants. Agreement to these accounting and auditing arrangements was reachedat Negotiations.

G. Environmental Aspects

3.24 The project has been classified under Environment Category "B," according to the OD4.01 guidelines. The following environmental benefits have been incorporated into the project: (a) Theon-farm infrastructure and drinking water would facilitate the sustainable settlement of smallholderfarmers; (b) the agricultlral support services would disseminate IPM technology and efficient soil andwater management. The financial support services would enable settlers to gain a livelihood from thenew lands and would facilitate development of a viable regional economy. The EnvironmentalAssessment focused on concerns about; (a) possible contamination of soils around the heavily pollutedBahr El-Bakr drain; (b) irrigation water quality and quantity; and (c) social conditions of settlers.

3.25 The Environmental Assessment was completed in September 1996 and endorsed by GOE.It is summarized in Annex 3. Analysis concluded that: (a) soils around Bahr El-Bakr are notcontaminated, (b) irrigation water will be adequate in quality and quantity, according to the nationalprogram of MPWWR, and (c) studies conducted during preparation confirmed the importance ofadequate drinking water. The project will provide drinking water to those parts of the project area notcurrently served and will finance a soil and water quality monitoring program, and a health study ofthe population.


IV. PROJECT IMPLEMENTATION

A. Status of Project Preparation

4.01 The proposed project was identified by IFAD in 1993. An FAO Investment Center pre-formulation mission in June 1994 was followed by a formulation mission in September/October 1994.At the request of IFAD a World Bank mission visited Egypt in September 1995 to finalize projectpreparation. The mission assessed the progress of implementation of irrigation and drainageinfrastructure and proposed changes in the design of the credit component and support for landdevelopment for smallholder farmers. The Environmental Assessment was completed in earlySeptember 1996. Detailed designs for the drinking water supply component are under preparation andwould be completed by June 1998. Designs for the tertiary infrastructure are standard; tenderdocuments for this and for the goods will be prepared within six months of Board approval andfunding has been provided by IFAD for this (the time between Board Approval and effectiveness isusually about one year in Egypt). An implementation plan and procurement plan have been prepared.The implementation and procurement plans were agreed to with GOE at Negotiations.

B. Project Management Arrangements

4.02 The Ministry of Agriculture and Land Reclamation (MALR) would have the overallresponsibility for execution through the Chairman of GARPAD. A Project Management Unit (PMU)would be created in the project area with responsibility for project implementation, includingcoordination of project activities, procurement (except for activities implemented through PBDAC),disbursement, annual and quarterly work plans, financial reporting, monitoring/evaluation and contactswith IFAD/IDA. The PMU would include a project director, finance director, procurement director,research/extension coordinator, community development officer, and monitoring and evaluationofficers including environmental monitoring. (See also Annex l(f): Terms of Reference for theprincipal staff of the project management unit). The Project Director would report to the NationalCoordinator who would be the Chairman of GARPAD (both the project and national coordinator havealready been nominated) who would be directly accountable to the Minister for successful projectimplementation.

4.03 Local coordination would be assured by a regional working committee to be headed by theproject director. It would be composed of the relevant governorate agencies including education,health and water supply, the Rural electrification authority, the regional offices of Public Works,GARPAD, the agricultural extension service and agricultural research stations, and Sharkiya WaterAuthority. It would meet regularly during project implementation. The Committee was established by31st March 1997.

4.04 A National Coordination Committee (NCC) would meet twice a year or as needed todiscuss annual work plans, provide policy guidance and facilitate implementation at national level. Itwould be chaired by the national Coordinator. The project director would be its secretary and hewould prepare its agenda. Its members would include, in addition, senior staff from MALR, PBDAC,CAAES, ARC, MPWWR, and Ministry of Planning.

4.05 Implementation of the credit component would be through PBDAC (see above para. 3.09).The agricultural support services component would be implemented by the Central Administration forAgricultural Extension Services (CAAES) and their governorate level staff, and the applied research


activities by Agricultural Research Center and their local stations. The community developmentcomponent would be implemented by the PMU in close cooperation with the Department ofCooperatives and the MPWWR. The drinking water supply system would be taken over by theSharkiya Water Authority on its completion.

4.06 At Negotiations GOE provided assurances that these implementation arrangementswould be followed, and that adequate resources and satisfactory TOR for the Committee would beprovided to the Association before effectiveness.

C. Monitoring and Evaluation

4.07 The Monitoring and evaluation (M&E) experts of the PMU would operate a program formonitoring the project activities as a management tool, in close collaboration with other members ofthe PMU. They would be comprise a senior agricultural economist with experience with M&Eespecially with IFAD or other internationally financed projects, and two M&E officers, one specializedin irrigated cropping systems/soil and water management, and one in socio-economic impacts.Monitoring and Evaluation would also focus on both project output (achieving project objectives andtargets) and project impact (improving the incomes of the target group settlers). For this purpose, keyindicators would be refined by the PMU and the M&E specialists

4.08 Key indicators would include: (i) the number and category of settlers by scheme and thedate of settlement; (ii) percentage of households who have adopted technical packages; (iii) croppedarea and crop and livestock yields; (iv) percentage of households with tertiary irrigation; (v) percentageof households with drinking water; and (vi) the credit disbursed and recovery rates (short term,medium term and long-term). Monitorable indicators are provided in Annex l(c); they would bedefined by the PMU.

4.09 PBDAC would have its own monitoring system, but close coordination with projectmanagement should be maintained. PBDAC would provide the PMU with copies of its own M&Ereports. The project management may verify the bank's performance through regular field assessment.At Negotiations, GOE provided assurances that the project monitoring arrangements outlinedabove would be followed, and agreed to the monitoring indicators outlined in Annex 1(C).

E. Supervision

4.10 It is estimated that the project will require an average of 12 staffweeks of supervision peryear, including financial sector, agriculturist, irrigation/civil engineering and community developmentskills. The first year up to 20 weeks may be necessary to ensure project launch, and at the end of thirdyear a midterm review would be held, requiring 8 additional weeks above the normal 12. The projectwould be supervised from Cairo, in order to permit frequent contacts and establishment of apartnership with the project management unit and implementing agencies, and resolution ofimplementation problems as they arise. Focus in the first year would be on procurement, and puttingin place the project management and monitoring arrangements.

V. PRODUCTION. BENEFITS AND JUSTIFICATION

5.01 The main objectives of the East Delta Agricultural Services project are to provide supportservices to facilitate the settlement and increased agricultural production of settlers in the project area,


thereby increasing farm incomes and laying the basis for a sustainable rural economy in the region, inboth farm and off-farm activities.

5.02 The project would provide tertiary infrastructure to about 20,000 feddans (4,000 families),credit to about 15,000 families on about 75,000 feddans, and offer extension and other services to

about 26,000 families on 135,000 feddans, with uptake estimated at about 50 percent. There are thusthree, interrelated "streams" of production benefits from the project, due to tertiary irrigationinfrastructure, uptake of credit, and uptake of technical packages, respectively.

5.03 Estimated crop and livestock production benefits are summarized in Annex 2. It will takeabout five years after the start of production for farmers to reach maximum yields "with" the project.It is assumed that (a) farmers benefiting from tertiary irrigation would start agricultural production twoyears sooner "with" than "without" the project; (b) farmers obtaining credit for inputs would havehigher production and yields "with" the project, since "without" it they would not have the cash topurchase sufficient inputs or to prepare land adequately; and (c) farmers taking up extension packageswould have higher yields than those not. The most likely scenario, also, "without" the project, is aslower rate of settlement in the project area, and delays, therefore, in realizing benefits, to farmers orto the economy as a whole, from the very substantial sunk investments in reclamation of the East Deltalands and the El-Salam Canal (para. 2.01). Assumptions are summarized in Annex 2.

5.04 An analysis of likely financial returns to farmers benefiting from the project services wasundertaken, to determine whether they would be able to repay credit provided at market rates under theproject (12 percent for short-term credit, 13 percent for medium term and 14 percent for long term attime of appraisal). The farm models indicate that annual farm incomes would increase gradually fromabout LE 4,500, well below the poverty line (see para. 2.13) "without" the project to LE 11,000"with" the project. The conclusion is that farmers in the project area would be able to apply for credit.

Economic Analysis

5.05 In the calculation of ERR, only benefits from incremental crop and livestock productionactivities were considered. Costs include tertiary development for 20,000 feddans, costs of crop andlivestock production on the 75 000 feddans that are likely to benefit from credit and farmer services,all other investment and recurrent costs of the project (including technical assistance, projectmanagement and monitoring, and drinking water supply), and incremental operation and maintenancecosts .

5.06 The economic rate of return (ERR), measuring only crop and livestock production benefits,was estimated at 33 percent. The high rate of return is not surprising in view of sizable sunk cost inthe El-Salaam Canal project;

5.07 The economic analysis did not quantify the expected benefits from rural water supply, interms of time savings, health benefits or potential increased milk production for livestock. It did notquantify the "spin-off" effects of creating, through the project, the basis for a viable rural economy inthe area. Approximately 45 percent of employment in rural Egypt is off-farm employment, and theproject would permit the development of services, small-scale industry and trade in the project area.These indirect "rural development" benefits are likely, in the long run, to be as significant as the directproduction benefits.


Project Risks and Sensitivity Analysis

5.08 The main project risk is likely to be delay, in completing the infrastructure, water, andestablishing support services, because of delays in establishing the project management unit andmoving ahead with procurement. The project ERR "base case" has also made conservativeassumptions regarding the start-up and phasing of project benefits, with substantive project activitiesstarting only in 1998, tertiary infrastructure investments being completed only in the year 2000, and aslow phasing in of other project activities (with only new 1,700 families taking up credit in 1998,3,000 in 1999 and 7,000 in 2000). Nevertheless even where benefits are lagged three years behind the"base case" and costs increased by 10 percent, the ERR would decline to a still acceptable 14 percent.GOE has also sought to minimize delays by nominating the project director and national coordinatorbefore negotiations, and preparing an implementation plan and establishing the local and nationalcoordination committees well before effectiveness.

5.09 Delay in establishing support services and adequate tertiary infrastructure may also lead tosubstantially lower yields, and delays in establishing formal credit mechanisms may require farmers toseek higher cost alternatives, increasing production costs. Assuming benefits fall by 20 percent andproduction costs increase by 20 percent, the ERR is still 18 percent.

5.10 The project has some risks regarding financial sustainability. No new civil servants wouldbe recruited under the project. Annual incremental operating costs are only about US$200,000.Farmers are responsible for operation and maintenance of tertiary irrigation works. The main riskregarding financial sustainability regards the drinking water supply component. Current water chargesby Sharkiya Water Authority (LE 0.25/m3) are below operation and maintenance costs. The estimatedO&M costs of the water supply component will be available only when the detailed designs and costestimates are complete. Costs and cost recovery are being reviewed under the Sharkiya WaterAuthority project currently under preparation; the policies that would be introduced under that projectwould apply for the East Delta Agricultural Services Project. There is much scope for increasedefficiency in O&M; savings of 15 percent in operating costs in Sharkiya Water Authority, withouttariff increases, would lead to full recovery of O&M costs.

5.11 No difficulties are anticipated marketing the incremental production, once production takesoff and credit for marketing and small-scale processing is available. Egypt is currently a net importerof the 'staples' of rice, wheat, milk and meat (from berseem) that constitute the main products, andmarketing channels are very well established for cotton. Milk prices are currently particularlyfavorable (because of shortages in supply) in Port Said.

Poverty Impact. Impact on Women. Participatory Approaches

5.12 Project beneficiaries have average incomes below the poverty line, and fall within theIFAD target group (see paras. 2.11 to 2.17). In addition to direct beneficiaries, the project wouldincrease income earning opportunities for the currently unemployed or underemployed, who wouldmove into the project area.

5.13 Project design would benefit women in a number of ways: (a) about 20 percent ofgraduates allocated land in the project area are women; (b) the rural water supply component wouldbenefit women directly, since they are in charge of water collection and domestic use; (c) the focus ofextension on livestock would also benefit women, who have primary responsibility for livestockraising. About 50 percent of incremental income from the project would be from livestock,


traditionally a "women's" domain, and 50 percent of the 13,000 incremental jobs created under theproject would be for women; (iv) the extension service would build on experience gained working withwomen elsewhere in Egypt and particularly in the West Nubereya Newlands scheme, where extensionservices for women have been "mainstreained," but there are also women's extension officers; and(e) PBDAC is increasingly adapting its operations to increase access of women to credit and has underway a program under which credit officers visit women in their homes to assist them with creditapplications

5.14 Rapid rural appraisals were conducted during preparation and the Environmental ImpactAssessment; drinking water and lack of credit were commonly expressed priorities in these. Theproject regional steering committee would include farmer representatives, and assistance would beprovided to farmers to form cooperatives and water user groups.

VI. AGREEMENTS REACHED

6.01 The following assurances were provided from the Borrower at Negotiations:

(a) On-lending from PBDAC to beneficiaries would be in accordance with its applicablepolicies and procedures which follow market-based interest rates (para. 3.09).

(b) GOE has agreed to the procurement arrangements outlined in para. 3.17.

(c) GOE has agreed to the disbursement arrangements outlined in paras. 3.18-3.20.

(d) GOE has agreed to the accounting, audit and reporting requirements outlined inpara. 3.22 and 3.23.

(e) GOE has agreed to the implementation and monitoring arrangements outlined inparas. 4.1-4.7 including the monitoring indicators referred to in para. 4.09 andoutlined in Annex 1.

6.02 The following were agreed as conditions of Effectiveness:

(a) GOE and the PBDAC would finalize the Subsidiary Loan Agreement confirming theon-lending terms between the Borrower and PBDAC (para. 3.09).

(b) Confirmation of allocation of resources and terms-of-reference satisfactory to IDA forthe operation of the Project Management Unit, the Regional Working Committee andthe National Working Committee would be provided (para. 4.06).

(c) All conditions precedent to the effectiveness of the IFAD loan would be met, otherthan those related to the effectiveness of the Credit Agreement (para. 3.14).

6.03 With the above assurances, the project would constitute a suitable basis for an IFAD loanof US$25 million and an IDA credit of US$15 million equivalent, both on the standard terms.

ARAB REPUBLiC OP BEYPTEast Delta Newlsnda Agricultural Service Project

Project Coat Sumry

I * TotallI_IQQ uSt QCool * Foreign Base

A. Agricultural support services1. Adaptive Research and Trraining 1,197.0 91S.4 2.172.6 412.1 257.8 699.9 41 12. Extenalon a*d Training 2,127.5 2,121.9 4.249 4 527.5 625.S 1,251,1 SO I3. Cowmnity Development L_2.1 71Ul 1.255Q. _ll A511 1 JI"L 2Q 4Subtotal Agricultural Support Service. S,809.6 3,100.1 9.400.4 1,711.0 .,002.1 2,796.5 39 4

B. On Farm Infrastructure for Smeliholder Panes 46,309.0 20,MI5.5 0,094.5 14,250.4 6,131.4 10,361.9 30 27C Supply of Drinking Roter 19,880.3 14,659.2 14,519.5 5,864.4 4,324.2 10,13657 42 140. Fimanieal Support Saervies1. Short-Term Credit 31,783.0 14,620.1 46,603.1 9,375.5 4,371.7 13,747.2 it 1I2. Medium-Term Credit 26,099,2 47,046.1 73,141.1 7,59S.9 13,176.5 21,577.4 64 293. Long-term Credit 8,981.1 5,207.5 14,10S.S 2S49.51 .,53.1 4.65,4 37 S4. Support to Village Bank _. Q2jfLj JiA 2-22JL 1011 . 7..-L ,7., A5S ISubtotal flnamclsl Support Services 17,891.4 61,342.0 135,233.4 20.025,9 20,15S9.9 40,166.0 50 53B. Project amage"eat ad monitoring1. Project Impleentation Unit 2,077.6 1,444.6 3,522.7 512.9 425.2 1,039.1 41 12. Honitoring and Evaluation Unit 642.S 40s.5 1,071.1 195.5 120.5 316.0 v 31 tnvIronmental monitoring and Supervision . 1,1. 2. j -1 704,2 12Z, _ 2... 71 _-. subtot1 project nbagemet sad Nomitorilg =...ILI 2,Z 5. 297.1 _UJM __. JI ,. . I Q 2Total SASILINS COSTS 145,05s .2 309,587.4 254,545.7 42,790.0 32.312C. 7S.11.?7 I3 100

Physical Contin,enc9em 5,547.3 4,199.2 13,746.5 2,615.3 1.22087 4,055.0 33 5Price Contingencies iLJOl.) I5 LI AQA211 _A1' 7 MIMI Q 1 2 Total otineCT C i9Te 11,907.01 121,134. 309,272.0 86,430.0 315,00.5 91,230.7 39 121

Tue Nov OS 10,44,20 1996

co

H

ARAN SuIMLIC OIP WVPTlast Delta Ieulande Agriculturatl Service Project

Psejeot Cooeta by geas

A. agricultural Supeprt tervieI Adaptive Research and Trraining 116.0 *0.4 17.0 9.6 1156.5 111.7 132.1. extension ond Training 126.1 200.0 246.t 221.1 227.7 165.5 J.451.4

I ount evelopment I 2lDg _IJ 215L1 l2_1L -- MI DX 2L2LSubtotal agriculturel support services 912.) 510.1 55?.? 505.) 451.0 51.5. 31325.4B. on Farm Intrastructure loc Smaliholder Farms 5.1722 11,120.0 0,5159. 2,420.5 21,343.4C. supply ot Drinking Water 6,59S.1 5,21.S6 - 12,ISl.l0. Vinscial support Servicea

1. Short-Tern Credit 1,711.5 3,19.6 51.109. 3,610.6 124.2 110.4 16.361,02. medium-Ter" Credit 2,459.9 4,804.0 11.112.1 5.659.1 111.5 33S.4 24,502.31. Long-Term Credit 496.1 920.9 2;04.72 1,202.5 21329 75.4 4,969.04. Support to Village bank . 2 _.JSI1 2130 ._11 .1 .L .314i

Subtot1 FineacIal Suppott s5rvlce 4,911.2 1 ,109.1 20,619.2 10,684.2 401.1 315.2 46,643.1S. Projact asaegauent sad Nosltoriag

I Project liplementatlon Unit 415.5 125.9 220.1 1413. 129.2 126.0 1,220.tI. Monitorlng and tvaiuation Unit 12S.0 56.4 49.9 49.2 34.1 1.75 317421. govironental Monitoring and Supervislon _ H.J 61 1 25 S 2. .1 32 1 _11.5

Subtotal rotecet Naaageast and esiLoia4g .11646 .2414 22..J _L 2 .2 14 I'll, I _1_ 4 _.1_J54total iOJUCT co5st 105501.1 236453.1 30,115 . 14 9 2 931.6 91,230.7

Tug 3lov 05 10;42i53 1996

-s0

ARA$ RIPUBLIC oFr 59V?last belts lewlaids agricultural Service ProJect

Disbutomsmit Accout by rlimesciso1US$ 0001

Pricipsl banktor Developent

ARAB REPUBLIC OF and Agricultural Local Dutiia

IfAl\ll Eypt . Cadit _. le. lcta _ For. (excl. &iAminti I hAmuntL 3. IL -LAmhunL AL .ounL. t 1L . .xcLh_ IsmaL Taxs-

Civil Worke 3.71736 45.3 4,I16.3 Sl.1 297.4 .c,251.1 5 .0 2,411.9 55.17 5Equlpnent and HateriAl 51,l0.7 54. 0o.2 ISO 21S. 0.4 40C 4.17 *.C 31S91.2 1 251 906.2Smallholder bevelope,ent 12,219.5 45.0 9,SSI.2 31.0 - 5,446.7 20.0 27,241.4 29.9 7,47710 19,764.4Training and TeciMical Assistance and Studies 2,123.1 100.0 2 5 4 2,123. 0 21 9c 24,3 9

Credit l~~~~~~~~~~~~6.156.4 is.) 10,711.0, 23.1, 1068,19. 41.2 41,611.1 SO.2 21,296.4 24.120.9Recurrent Cost SILA 3.L L-lW ,1 1 . __ _ 1J L5 20.14 I 4JJZJ

Tota-l 3 l 111 9 41.6 IS629.6 1.1.4 It.126 . 12.3 24,111.1 4.7 911,210.1 100.0 os,600.6 C4,511.6 s06.2

Tue INov OS 1O,S0,1O 199C

l'.

'i.,cO_

_

lost Deltg owtloylls Agricultural Service PreleetTable All. ldoglr Rlesearch ne4 tr int

llalt 1 ~~flaana3tl-- _ Cet rna...CuJ1Li'""" 0 Cont Yor. ta

t. Sevestaat os cstA. Irrigation Eq'eip..aC

Land Devalgemnt Drailnge Equipent Beount 170.0 170.0 0.0 05.0 1S.0

5oil and Hater Equipment *0unt ISO., . - 0 0.0 05.o 15.0Crops and plant Protection Squipunt aeunt 110.0 *190.0 0.0 65.0 15.0Veterinslry quipment jumount. 8%.j5 .- -J5. 0.0 a5 *0 11.0

Stbtotal Laorstory Squipoast 455.0 * 4-S.OC. Ustserologiel quipset

Equipoant amount o.O O - -. 0 0.0 0-.0 1S.0D. ofgice squim -en

Coaptuter and printer met t - - 9 10 90.0 - - JO 0. 0. O . 1O.0Fbotocopier snit 3 - - I 10 30.0 - 3. 0.0 0 IS.?ax :nit 3 2.5 7.1: * - - 1. 0.0 05.0:* 15.0 STelophone line nit 4 ' 4.S 19 - 1 S 0.0 aS.o O S.O

Subtete Office Equipmet 145.5 - - 145.B. techaical Assioteace

1. Ovarasas ?~Sai.g"Shct- tr- Overgeas Training for aearchrs w ok4 4 * 4 * 13 7.5 30.6 30.0 - 30.0 - 90.0 0.0 100.0 0.0

2. ia-Coutry TSisig Shor-term Training for Rlesearchers person/course O 12 IS 1 15 iS 64 6.1 4 0 0 . . . 4 0 0 0.0

I. E rt sarviessLocal Technical Assistance person/y sr 3 2 2 2 2 * 1 34 24.0 00.0 43.0 40.0 46.0 46.0 264.0 0.0 0.0 o o.

sunst:rnationally llerultnd ovpert person/day is i e to 10 to0g 104 -10 10, --- J I 4 11 ff.Q 1414 -- | 0.0 100.0 0.0Subtot xpert slrviaas : . 3I.t J . 7' .'"°'0 1loo o 7e .S 40.0

Subtotal T.chaicsl Asaistems 1. 60 100 1.0 100 1. 5.F. 0V-0rsdisg a rsech stetlee - -

El-Serw Rsearch Station aPoxnt *0 L- _ _ 11 0 IS 5 30.1 0.0Stoal baweetnent costs 1,000.5 0 s 10. 100. 70 1.4(6.sIL. Rocurret Costs

*. Posoal I iaee_ U,A. bearhe Coordinator p O * *9.0 *.0 *.0 *.I 9.0 9.0 54.0 0.0 0.0 0.0Rsearch staff P s 4 a IS 24 24 24 100 S.3J de, La_l 1201 L9.. .- 0.0 0.0 0.0

Subtotal Prenorel (ticen.1 29.0 49.0 59.0 129.0 129.0 129.0 554 0S. Transportotion &llowanc6 p.M. 20.0 20.0 30.0 70.0 20.0 20.0 120.0 0 0.0 0C. *eputs sad Sup9ly

exprimntai riots / plot a 20 30 40 SO 50 195 0.5 4.0 10.0 1S.0 20.0 25.0 25.0 19.0 0.0 0 0.0oftice supplies Amount ... 21L* L . -- I .J-2 .. j -- I" 0.0 10.0 0.0

Subtotal Ruptst sad supply -- J" iL ....... J. .. JL. .. 1...L. 41A -.._.2S tnl ascurr et Coste s ..IS.AL8 OL1 O.~J.IL* _ILl .IS5Q ... 41L1 .. I--

Totalscuetco 1.069.5 221.0 240.0 IW5. 290.0 260.0 23253.5

Eprl ental plot 1.* fed.. one for *ech village.

"ed Oct 22 11,56.29 lots

0%t

ARAB RElELI1C Of EGYPTlast Delta Nowlands Agricultural Serice Project

Table 102. Oxtension and Train IngDetailed Coost

unit SAtr InICost phy. Grose

Oupn~~~~~.OeIas LU aasL.~~~~~~~~~-M CostILE -anal0 Cont.7or. TaxliJniL.... AtlL Il ik ZLZLlii li±I0 5L 2 IL. ..10L.. .2001..Jfl.. ..Q22.L.. ..XLaL Rain.. Riub. Rain

U. lveetmeat CostaA. Neohilaep sad a alipes ni 4 00 00400 001500.

RI crtit: Generatorunt 24 1 0 00tos unit. I S 2.5 7.5 2.5 2.15 .202. 0".0 N5. "0'.0Tapeo Eacordi unit pm0 1t 4 0.7 1.4 0.7 0.7 -2.6 0.0 85.0 is.0

Shotoghtaphic aq.aiprs.nt ~~~ ~ ~~ ~~~~~~~~set I 4 4 0.0 4.0 4.0 - 6.0 0.0 05.0 10.0Video Camera unit I 1 * 7 14.01 7.0 7.0 21. . 500.vcu unit 2 1 I -- 4 4 .0 .0 .0 * 16.0 . 503.Ovehead Projector unt 2 1 1- - 4 3. . . . 04.0 .0 6.0 5.Toeletione Lieno unitt 2 1 1 - 0.6 1.2 0.6 0. . .0 65.0 Me.

Suelephone LineT an qiatunit I 2 - 4 4.S ........ ... Lf __ - .......... UA... 0.0 60.0 00.0fibtldal Dochi ter*sdd Uquipucat77.1 51.3 22.3 - 1 49.7

Soil Usepting Kits unit 2 1 1 - 4 0.5 1.0 0.15 0.5 - 2.0 0.0 65.0 15.0Water Sampling Kits unit 2 1 1 - 4 0.5 i....0 ...L5....f.. ___ ...... . o1.

Subtotal field Uquipmeat and mtateial 2.0 1.0 0.0 * - 4.05.C. useA.. 2.0 ipme.t4.

93,otocopier unit 3 1 I 5 so1 30.0 10.0 10.0 -50.0 0.o 8S.o 05.0Cpter and Printer Unit I I 10 10.0 - - -- 1. . 001.=ffce Furniture sit 21 - - - .0..n ..... a. .......L 8..j 0.0 40.1 15.0

Subtotal O55lcc Squipmest 61.0 17.0 21.0 - -90.0D. TabIetdea

Pick-up double Cab, unit 5 2 1 - - I t0 450.0 060.0 90.0 - - 720.0 0.0 85.0 is.03.motorcycleuit 0 20- - - 4 5 10. 10. - - 20. 006.0 00F. ic~ceas u,n, it 60 270 3 0:.25 5. '7.5::. - 33.5 0.0: 65s.0 00.0

0. Tee IC&& Assistance1. Oversea es treimia

Short Courses Abcoad for Uxtensioniats 5/nth - 4 6 4 6 * 0 30 * 20.0 060.0 120.0 100.0 . 00.0 0.0 000.0 0.0=emnare and Study Tour gifild ext. prog. mnang.) week 3 3 * 22.5 Ay4 .% ------........ _ ....... ... JIL 0.0 100.0 0.0

Oubtotel overseas Teddintg MS. 120.0 060.0 157.5 180.0 - 735.02. Is-Coustry TrsaiNin

Training for Ixperlmantal Farm Contractors /a day 7 7 7 7 7 7 42 1.062 7.4 7.4 7.4 7.4 7.4 7.4 44.6 0.0 0.0 0.0* -Training for other Farmers amlount 25 4 0 4 0 4 225 0.151 2.6 .0 4.0 6.0 6.0 6.0 33.8 0.0 0.0 0.0 NExtension /b ~~~~~ ~~~ ~~~ ~~~ ~~~~~day: 0 5 o 5 o 0 4501 ..a. .... a....u.. 12-..12. 12.0..U.. __.....i 0.0 u.o 0.0 0

Slubtotal le-Country Itralaseg 11.2 21.7 25.4 25.4 25.4 25.4 140.63. EXPert SerVICes

locaL Technical Aesistance presoalyear I 2 a a 2 2 is 24 24.0 46.0 46.0 4C.0 46.0 4S.0 264.0 0. 0 0.0 0.0internationally Recruited Expert person/day 10 t0 t0 10 s0 s0 60 1.4 .41.5 ....4.L. 14.......I .3..1....i2. .. 4I. ...6j 0.0 000.0 0.0

Subtotal uxpset $ervgoes ...1. --3.5 ...1L 6.3.. ...J"Z 412 .*Subttotl Technical Assistance, .4324 y 4a..I 2.14 2..4.21. _...Z[" __.114 L.22L

Total leveshneat costa 026. a 7. 397.7 274.9 267.4 17.4 2.424.8LI. Seaucuret costs

A. Personnel I sc.aIField Extension FProgram Mqanager lincent-I p..1 1 1 1 1 1 6 9 9.0 9.0 l.a 9.0 9.0 9.0 64.0 0.0 0.0 0.0Extension Technicians SMS)45 p.m. a 02 16 to 16 06 04 2 16.0 24.0 22.0 32.0 32.0 32.0 566.0 0.0 0.0 0.0Village lVatensionist p. 6 0 10 10 10 10 60 01 60 60 0. 20 0. 30 6. . . .Uecretariea P.. 13 5 5 53 410 ~1.5 1.: 5 7.5 1.5 7.5' 7.5 17.5 '45. .00s.

Drivers ~~~~~ ~~~~ ~~~~~~~~~~~~~~P.O. S I 8 I 6 a 44 1.5 1.....E2If4...... -- A"4L ... 2..L ... 12J A"..E. 0.0 0.0 0.0Subtotal eSa*66ael (iaoea.i 46.0 59.0 73.5 73.51 73.5 73.5 399. 0. 0S. Transportation allowance amount 1. 96 1. 96 1. S .c. Oametratiee plote

Dmownstration Plot Input coat plot 20 40 60 le 00 60 260 0.5 00.0 20.0 30.0 40.0 40.0 40.0 tao.. 0.o o.0 0.03. vehicles Opersiocs

Pick-up Double Cab SW~~AMout 67.5 94.5 106.0 108.0 100.0 100.0 594.0 0.0 20.1 0.0Sick-up Double Cba n 15.0 20.0 20.0 30.0 20.0 30.0 165.0 0.0 )0.1 0.0

P. Impuet &Md SuppliesOffice supplies aMOdunt -- A 94. _._14 ... 4s.. .4 _51A _32"L 0.0 00.0 0.0

Total 1.028.) 047.0 712.2 599.4 S91.9 302.9 4.181.S

\ dysgroup tranin par" yea.

\b Loca trainqtr1fr exesonigta Is cosidered on the basis of S days per year per person.

Nod Oct 23 11,56,4 1996

ii

ARAB OEPULIC of mownlfast Dalts Ufewlaodu Agriculturcal lsrvice IProject

Table 1o1. Promotion unit1 tar cmamiaty Pavel. &nd Nukefteafted cents

Unit Zsaet.LI&A.jcost thiy. Gros.

ftu&RthLi.. ILO Nowe_COA LJLNj000 Coant. for. Tog..Smt D.. inlL..hALhAL 20k. hiL OO hOL mmiImA. SIA.. JAIL. ana.a.....Jtoot.. 2002ln.. .lllJ. jgiluL glot. itch, Into. C-amn-

S. mestumet teat.A. tachaical CAmstetmea

laductioti Trlai. for coop. Nangemant coop. 20 20 20 6 46. 00 1. 9. . . . ozlINo-bay Seamiare /a *i.iii*ti I I to 6 -.JA" ..... hA .424A ..... IL ... 4 .LA ...... 2 0.0 0.0 0.0 CWensv

Publema la-Ceaatry ?tsm8eIg 72.0 72.0 72.0 20.0 12.0 12.0 210.02. Peraeaael

noe unit Chiat p.s. A I I I I a to 101.0 l0.6 10.0 I0.0 50.0 8.0 500.0 0.0 0.0 0.0 coesmvCommunity 0ev. OfFicaer ip.m. 3 2 I a 2 I is 15.2 3.0. 29.6 29.6 29.6 29.6 29.6 221.6 0.0 0.0 0.0 CWaI;VAsuistant&c Csnhty Dew. oFFicaer awmont 2 2 2 2 2 2 is 9.0 29.0 29.4 29.6 29.6 29.0 29.4 116.4 0.0 0.0 0.0 cwmaBVCooperative Nanaesrm a 7 2 0 0 40 2. 05.6 11. 44.0 20.4 - 1. . . 0coIm v

.!Verelw Accountanta .c 17 21 2 --- 5 4. ---4 .4 _4 JILl 14214 .....It-..... .JL. . . .eu".ti Peeemal 141.0 240.0 420.0 357.0 2S9.0 07.0 2.406.02. Sbott-term Local Coasultabnt inonth 8 a 0 4 61 4 i6 2 .... 4L -. I.~LA .... IL M.44 E.-A ...... L-0 .... 0.0 *.0 0.0 cGmmv

aubtetal tactacelt Asaiotsaoe 229.0 220.0 100.0 395.0 119.0 207.0 1.14I.0S.Ovreasa Tralalagstudy tour oN WUR jierioii - - . 21.9 - 1. .0 500l.0 0.0 CuemBV

COerutor aMid Printer emnit 4 - 4 2 6.0 60. 06.0 a9.0 55.0 (omSVplit urmilluge alt Is - -- I 901.0 . 20 . 4. 50tmmv

telepm.oe Line unit 2 - 4. -- - - La g.e 05.0, 51.0: coma"utotal 0ffice. Uqel.el - 160.0

1PIck-up Double Cab. unmit 4 - 4 90to 0 266.0 .0 We. 5s.0 Cr2455No0toircyclel samont A - 9 .... h. is_.......~.......~.j. 0.0 09.0 15.0 cramew

Total Ju,aweatml C"ost 16. 6. 000 390 79.0 Sol.$ 2.25.3.It. Oeougreat Coats i

lacetatrica pa.m I I 1 a 6 2. .9 8.9 0 .5 0.9 1.5 i. .e i.e e.g s.c cueafvDrivers P.m. 4 6 0 4 4 4 24 1.9 .... I L LA- .1. ... j.A LI4 ..... 4A4 0.0 0.0 0.0 OHB

"utotal p.raoea.l 1.1 7.9 7.9 1.9 7.9 7.9 4S9.D. Vehicle oparalomie p.$4.0 96.0 964.0 94.0 06.0 546. 224.0 0.0 20.1 0.0 cUCSSv

C.Mtorcyclas 2. .2 2.2 2.2 2.2 9.0 0.0 20.1 0.0 COMEiV

office mippilem . 4 4 4 4 4 4 24 £ .... L -- "JA .20- _...L ___.._L 2f9 _.JZLJ 0.0 10.0 0.0 cr50550

Total 0.0 449.2 991.0 410.0 260.9 m 03.2.4514.

Twlio-day geminate three tIme per yeamr car HURls membears.

Mekd Oct 22 119696g 1996

AR" IEBU3LIC OF NOT"tBet Delte olewiend Agricultural Service project

tAeb 301. bevelo"nt Teratrt irrigetion Ifrestructurg lar Soelihold.rsfieteiled Ceete

Un~it BezemtechJ-injltCost rth. Close

ILU bea-Caat.Al,"110I coot. for. Tie,Ua :L Jli- JIlL JQUL- -U L - U IABL TOLL ±L41. JJj5.-. IL.t. JUL -J001 .. JU. J00L. JOLSL- AaLg. gith. WAe

t. ev.t..at CoetaA. Couetirusctiom SC ?eroary Iggltt*tian sd ge.ieage Drrte

Morsh Humseinly 4ed 2.112 12 )ee 1lSe *0 *.e *). 0 .SSO . 0 . 30. 0.0tooth Foit Said s.d . *. i.s.o - 1.000~~~~~~~~~~~~~ , 3.s e,e. S.4oo.e tI.0 [email protected] 0.0toutt pact 4614 t4 4S4;" 'S40

Oouth past acid hIen led a50; 3 , 50 - .loe 3.1 9,435.0 9.5.0 1 . . 0.0Use Ii lseeh lit ted 2,9 .500 2.10 . .141.1& - -___ - A____..... J4101.0 11.0 30.1 0.0

Total 13,043.00 ,10i.e 20.,13.0 5s,00o.0 * - se,oea.e

e Bert of tertiary workls in this qehme has been already coealerted.

Ved Oet 21 l, 1,00 396

coI

0\

-4

last Delta liew'lande agricultural service ProjectTable S0l. Seasonal and Short-term Credit S.qvirssait

Detailed Costs

Cost tuhy. Grass.asmviaLo__________________ggaflLlLlO* ~fLU -ss.oLiXlD Cant. for. To.Fasdtf

JIIaLL jrnA AIlL .IOOL .2JOOL .200L ..2Ofl TADII .2ff1U .J.flL. _111.. 200L .0L. Rn. 2203L.. 2oka.2 La SCL SLL .. Cooet..t.- - AussMU.

.testatComteA. Ss,sssla Credit /a

Seed fed 5.400 35.000 I1.400 31.100 - 1.300 1.8 39.2 1,320.0 3,115.2 IS094744 004. IOTTRCE CSRLCEI

Fectiliter red 6,400 1S.000 31.440 11.100 74.300 0.151 1,248.4 2,26S.0 S,345.4 2,442.11 - 11,21.3 0.0 40.3 0 0 SH0OIT:tER_CREII SEASOiiAl.-CPI111

Machine Hiring Cost Fed 9.400 35,000 J1.4001 31.500 - -14,300 9.098 1)9.2 1,220.0 1.1)5.2 1,S40.0 - ,714.4 0.0 40. 0.0 SIIO5T-TESCaru SEISOIAL (PEItTpomp Operation CaSt Fed .6,00 35,000 35.400 17.500 7 1.300 OI1S 1,260.0 3.250.0 1.330.0 2,42S.0 11.445 0 0.0 40.1 0.0 SIIOIT-T9R_ICRE SEASOI4AL'CRFOIT

Mied Labor lb Fed 8,400 ils,00 31.400 31.500 7 -14300 0.071 _JfiLl _J4IS3_ _L.UL. .1414- ____..L 0.0 0.0 0.0 SIlOS? TVI.-RIMR tEtdONAL;CRF.I)IT

Subtotls gsssooel Credit 4,451.6 61330. 19,411.5 ,,40S.8 42,210.2

S. Short-term CreditWorking capital /c amount .. OJ..IL --II.U. .iio... -11020 ....JOil ...AILJ 0.0 0.0 0.0 SHIORT-TEM-R (ED SIlON?TFT44_CREDIT

Total 1,453.4 9,271.0 20,354.5 10,185.0 300.0 300.0 45,102.2

%a estimation Is base d In crc a Input requirement per fed, maclkst prices prevailed In 1995, the pace of targeted bsneflclarl.so built-up in the project area, and the masumptIonv ihat aottlo k,trr

settlers would financ* theIr input thraugh credit.\b St is assumed that I0 of the hCard labor would be provided through villagers cooperation with each others. free t1 charge.\c Short-tecm credit to considered tar small-scale bus "e.s such an mailk collection canter, dairy processing, Vrivot veterinry cienic, and marketing activities.

TUG Niov 0S 10,5503 1504

'0

ARA EIJUIII-tC or EGTnlast pelts me lfldC AkgriCultural Service Project

Table 301. Hedlur-t*re Credit Requitement.Detailed Coost

Unit

Outijt Iis ILtS ____ ____dunitaL. kIlL -LIlt ..121(L milk1 JIlL2 milL 141,1a. 0Il11 .A2-.I1. ...jl.. ....2000. .JOOL.. -20011. -....flD1. lvert aet CostsA. Agricultural squimeet /a

Tractor 70.f0 Ilk Unit 27 44 SI0 52 * 226 31 500.0 3,6o.0 1,52.0 1..

Trector o0-Jo Unit II 22 51 26 - 1 25 30.0 0 1S00 1,S3.0 CS0 0Unit 24 44 106 52 - s22 1.5 26.0 0 355.0 70

Furrow opener pitcher Unit 12 22 51 26 - 112 1.7 P04 11.4 50.1 44,1

Notary Tiil*r unit 2 44 10 52 226 I 72.0 132.0 21I.0 156o0

Field l*viler Unit 2 22 S3 26 - 113 2.541 30.5 55]. 134.0 66.1

Manure Spra&der Unit 32 22 53 26 111I) 7 64.0 154.0 37U.0a181.0

S4 Unit 12 22 Si 26 11 12 144.0 264.0 I63.0 112.0 -

Seed Ortll Unit 12 22 ii 26 - - Ili 15 100.0 3)0.0 IWO. 390.0

lRov Crop planter Unit 12 22 5 26 111 1 10.0 110.0 265.0 130.0

Feat Control Sprayer Unit 12 22 53 26 t 50 154.0 371.0 303.0ThApi. railCuli Cropl Unit 24 44 106 52 - 226 7 .. 4 4 ..U0IOLA

_7J1 a A ...l6.DThresher Imuliti-Cropl

3,Ota.9 ).I S.: 5.12)8s 4,4791subtokal Ageic.altural lUrgwijmetga. terisD. Other Medium ter Czedit 3*quir_ otEqulpm4Qt for S" unale Ueterprie.sIice and %heat Huill /b

mount 235.0 1,034.0 1,71.0 16500 0

Livestork Enterprle DCvelopment Iequipmcntl /C eomunt 572.0 rd40 17).0 112.0

tiveetoch Dvealopeet /d seount t.315 I.20S 5.000 2,540 - .211,043 4.2 j.hfl9J . 1 2ZL 6- lQ.----DSubtotal Otber ediMum Teo Credit RquirUequntlqipmaft gor Small scale Ua&erprgiee s.i4L4l S20. 1 31 241 1S..11LA2 _.1 ii.0_Q 11. a

ltota

a The nueher ol equipmlent presented In this table Is calculated on the basis of the masuetlton tchat S0 of tho targeted eraso requirement 4the requirement Is estimated on the basis of a S00 iedden nodelwill be purchased through eredit.

\b Values of estabiemhing two riCe And two wheet mAills In each of the 20 targted village i considered\c including private Voterinary cliniCS, oilk Collection caters, milk processing unite etc\d Although inCr*mental Colt tar this purpose Is considered for 11,043 settler., through repyment ot the medium tern credit more then 60s o0 the targeted oettlere would be able to participate in livesockdevelopment activities.

Sled Oet 23 112:14,44 IS

0

le3

UtAm RhMtLC OF IdYPTioet kits 11avionde Agtlitufrl Eer.ice project

Tablo 103. lang-tts CredIt *euirelent for stablAung smellt 0role Unteaprplae laDetailed Costs

ulnit tou MLrfiItCost Chy. Cio.S

OUanit ilia1.. 1L llU _____________________1_'5"ILI2 _-o Cont. for, lSsJaLtlLJ liIL_ inL 0* tlL JO .L_I.I nu- AI ....-goal li __ .JOIL 2001A0. .. 0IAL2. 20....ZI. _ ToaL, ai.. rgch.. EAtS_

1. l..entat cootsA. "It-SCSlI LIvestock 11terpelees and Animal Shelter

Private V*tarineAy Clinic t munt . 1 * .f 30.1 20.g 13.3 101.9 0.0 33.O 0.IMilk Collection C unat 15 0 *0 1 01.5 66.5 3t.1 311.0 0.0 IS.I 0.0uiuik Processeing Jnitte haunt 456.0 149.6 215.4 215.) 266.0 S4.1 l.00S.6 0.0 35.1 0.0Memeu Shelters /b amount o00 1.104 2,540 1.210 - - S,11 3 t-2L1L _L1 J _. 11.112 .SI.J --_ l i.. 0.0 *S 0.O

Subtotal aallO-c.ls Livestock Enterprises and Aimal abelter 1384.01 2,420.6 IS,101.1 II33.4 3'S 90.1 12,411.5J. Other Smll-Scolc teterprvle0

AgronproCCse Ing and Agrlbusinal,oo amount 154, 120. 5,731.1 I" -,. 5. loc. 1 .e se.l e.eTotal l,SI 2.l20.O S.S71 1,231.4 55. I 1 11,§11 S

\ Long te"u eedit is consldared tor Constructing liveetock shelter, and civil structurie tog sawll scale enterprises.\b rv4d on tIh bases ot cost of Le 2.000 per shelter And assuawtion that 500% ot those reeolving credit will establieh peruant nt ahelters tor their livestock.

M.4 Oct 2J 11151211 III$

I..

AlS EsmLte OF OPErr6 eat eltta l ewi.on Agricultural service Project

lablo 304. Support to Vilagoe Dankbotatl*4 Csot#

Unit tautaro lln jtcost thy. Gross

________________ f1LU - *L .CuQLJI3 .00' Cont. For. Tax _____wmrxUnit IIL i A iL.JOL- JU U ii jm.R jj6 jj a -2002 -1&L Met EAL &.Bab_ UsaLo_ _____..CoanZnL__....

A. Civil EairkhVilago Bsnk& Wilt 1 2 1 * 4 350 350.0 705.0 3e 0.0 1.400.0 IS.0 e0.1 s .0 SUIrIL_BaNK

P. OffIco aqs I tOfti t. urnntur. and Equipment amount s I 4 20 30.0 #e 0 10.0 s12.0 0.0 e5.0 1e.0 eUP. VtIL EMrKCogputec and Printer amount I 4 3 o O3 - ...JL. 0.0 55.0 IS.0 SUt_VIL sANK

Subtotal 0llie* Eqipmeat 0.0 120. C.VebieleePlck-up Double Cab. unit I a A . . 4 go 10.0 1.0 0.0 .s*0.0 0.0 o 5.0 1S.0 SUP_VIL-BANE

. Trainin1 eek 12 3I 22 _ 50 0.11 9.0 S 110 14.5 7.S 0.0 0.0 0.0 SUP VIL-sANKS. otocyc e

Hotorcycles unIt 2 4 2 0 I . _.* A . L* . * 00 1e.0 sU VIL0t1Total luw.uteat Costs SIII. 1.1)1 . 12`.! - - 7 017.Stl. Secureat Coeok

A o. -c_til tot eeedi.ati.mIncentive tor the coozdlnator In tVICC aountt I I I a * 31 12.6 2.6 12.6 1.6 Me.0 12.0 11.0 0.6 * .0 0.0 sut VtL SRNKIncentive. for coordinator Im OAc, amount I I I I is 6 I.. Ica _J Q _ .Q LL .401J 0.0 .0 0.0 *UP eV esuKl

total auzr.e.t Costc 111 I "* I JL .11 .AL --Totel 145. 02 *16.1 20.0 30.0 30.0 2251.71

1ead Oct 3i Ilis712 1959

table 40. P TM:Ilemethlbon unit

Cost thy. GrossEL. sl-e L cont For. Tax

......JnIL RIL ILIL L RAIL RAIL. IL U L_ 20 lS UIL 4IL. JIlL. _M101._ 2ilL. 2E10.. muL. -,a Rate_. Back. KALAL.

I.la.esebmt costs

ottcer ouildlg iohoblblilation unit I t'i s, * .*0.0 15.0 10.1 0.0

oo9uter and Printer unit.9 .5loItwoor lackege let a * a a I * 4 i~~~~~~~~~~~~~~~~~~~3 I0.0 so. 1. .o a. .0 0. 6. 2.

Poool7 machine *Et2 11 1 * S 2 00 2. 0.0 26.6 S0. . S901.nei ~~~~~ ~~ ~ ~~~unit I 4 4.0 l.10. a . 900. I0.

Hi termslou oqulpeent exeunt .6. - .. 2L9 . 6. 3.6*1.1.l SEttece Iqulpeest 414.0 2.0.0 1.6 21.0 21.6 401.0

tpick-up Double Cob Idiosoll unit I a 00 05.0 - 00.0 - 190.0 s9 us., as..Pickbu 20eroeclOtlIunit 1 * - - a 0. .0 * - -. 211 . 0. 1.

6*1.1e1 wa~~~~~~~~~~~~~uit I a - £400 - 10. 600 *9.0

0. Wotrcycle 200 100 -360 e

3. loc olo feootome e...

.. Nramet couraso /a week - .I 223 * 23.S 0.6 100.6 0.0Conut0r Course lb perseo/couffee 0 I 2a 2 a 12 2.29 .9 0.0 4. 0 4. 6 4. 0 *3 20.1 g.e 0.6 0.0Maup"ent .8FrcursGont Courses, I. p.fSdEI/COuroO a 1.9 2.0 * .0 0.0 0.e *.oNthdroawo Application Coueose Id Person/couare 2 .0 - * 2.0 0.0 0.0 0.0

SubtoteLoal reosToitate 10.0 42.0 46.1 40.5 40.0 15.0 29.)2.contracted loergmot

* project Director p.e I 6o 60.0 60.0 80.0 50.0 60. 60.0 160.0 0.0 0.0 .aam D. Finance Director P.&.. 16 16.6 14.0 14.0 10.6 as.. 10.0 06.6 . 0.0 0.6senior accountant P.*. I £ £ 0 S *2.0 12.9 12.0 12.0 It.10 32.0 12.0 0.0 0.0 0.0 ProcurOmnt Ofticer F.& I I I 6 I..4 14.0 14.0 14.0 14.0 14.0 14.0 04 .0 0.6 0.0 0.6bi-Linguaotoscrtetry P.s, 1 1*4..4..44...14.j4.....j4 ....... __.J 0.0 0.6 0.0

IOubbtotl Csetge.tel teroCSel .4M.&5 .114.451 .41A .4111 .4111-f -AILsubtotal teooluicel 1.ot.tomeo -A"5 .421 1 ..41 .41". --I11 -41 .1*14

wtote invesoot'10 coot. 1.2)0.6 060 420. .1 1 11.1 141.0 2.400.4It. OoerrOant Coost

A. personnel lsotvaThe project Entanaton and Research coordinator p.m. a 2 1. 20 1. 20 1. *2.0 'J.0 0. .0 *..Adtmi. tar Finance AumsitomtO P.O. I I a 3 'I I 2.9, 2.9 2. 2.0 2.0 2. 2.I I56 00 . .

sacgetecies ~~~~~~P.*. 4 4 4 4 S 14 1.0 61.0 S. . . . . 26.0 00 0. .lrovrre tev.p. S 9 0 a 0 a 431 1.S 1. 1.9:1' . 12.0 212. 12.0 61.0 6.0 0.0 6.0Itorakeepere P-&. 2 2 2 a 2 2 12 a 2. .0 2.0 2.6 2 .0 2 .0 12.0 12 60.0 0.0 0.0DrivorOP.. 3 3 2 Is1 6 16 1.0 1.6 . .1.0 16. .0 3.0 1.0NOsasne P.O.. J I 2 2 S as A 2. .0 2.0 2.6 1.6 2.6 *0.0 6.6 0.0 0.0

Guard. p.o. 2 2~~~~~~~~~ ~~~~~~~ ~ 2 2 2 2 12 I 45..J.a ~ ..... .J..___a 4 12.5 0.0 0.0 ,0.nubtetol foeood.el. Ilaeoativeol 20.0 6. 41.2 41.2 41.2 4I.2 230.0

0. ebiclo OorotiooaPick=u Doublt Cb. dIseoel p.O. 40.91 00.1 61.0 671.0 ... 0 21.. 1. .01. .IPick-up Doubl Cob. Eps Irolp 14.2 14.2 26.5 20.9 14. 14.2 III.* 0.0 26.1 0.0

p.o. .41.8~~~~~~~~~~~~~~-U --...JL .4*4 ......JI.0 .. J1.3. . 0.1 0.0minibus o

OuAbtotol vobldele Operottome 64.0 04.0 t.0 126.0 II.) 711. 064.0C. Motorcycle p.. .0 4.1 4.5 4.0 4.S 4.5 Ml. 6.0 10.1 0.0

0111ce suppliedo 9. 30 ---.JL 2.41.10 .11.1 .413 .....L ... J -"33A 0.0 30.0 06.Botl osoret COe.114- 41:4 2z.. 401...AL1.iLkS

jul01 2,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~3405.2 )o. Sao.* 214.0 320.2 24.1 2,407.1

~aThree week courioem or tAo pro/Oct director.%b fThree week Course.%c Ivo week cource toe procurCOvuSt oflic4ri.%d ej'oneano , woek course tog tOo porticipants.

Wed Oct 22 11857113 Me9

AAnb ROIJOLC Of EdYIt?Raft Delta MOulande Agricultural servlce Project

Table 402. aontorl nd vaaluatiod UnitDtat"le Coatn

Unit 'iILCost thy, Grosu

O.*nt lltiis , IL S Ust 2Le eABI Coot. for __ TON ________.JI*1L........U. 1 11. 12O 2000. 1l1- UU*L "flfl Znti .'0IA1. .1H11. .11L..ffn...io....Jlt. Mtri".. ..XDL L Pao. licli. SLt. - --- A =t1. Isvastenst Costs

A. Ottls i eqaipm..tComputer nnd Irintas Unit J I e -0 0.0 30.0 s0.0 *.0 ss5.0 Is.0 NONVAL UNITPick-up louble cab. unit 2 2 - 2 0 160.0 * - - . IO.O 00 IS a . S 0 0_1YALDNITC. tachelcal A nieatbacW

. la-Coutr TralogalCoeputer Coursne i/ /I person/course 4 4 I 2.5 i0s. . . - . 20.0 0.0 0.0 0.0 NOtE OVAL UNIT1. Cosatgated .reaoaselN a U Director a 2 14.0 261.0 1.0 16.0 16. 6.0 6.0 0.0 0.0 0.0 ON VAL UlTN A S Otticar P.M. la 2 2 1 it 2..4-. 2Ll .... JL .....ZL -- I"ZL ...... 0 .... l" 0.0 0.0 0.0 MH_BVAL UNITsubtotal Costracted tsagousel 40.0 40.0 40.0 40.0 40.0 40.0 240.0J. Iater-aatioaily locrtadTrainer *aonitl I I - I - - 2 10 1 .........SL.I ... JL* ............ l .......U.a O...~ .~ ....iso. O. 100a 0 0.0 NII _VAL UNITSbtotatl teealeh Aeaistafee 300.0 100.0 ' 40.0 90.0 40.0 40.0 410.00. stuAtl^

tortelt * * - - . - I 1 50.0 - 0 0 -. 0 0.0 MM oVAL MNITReview Studios IoiItit -* ----0 a -.. R. 1 Ll 7 ... . . * .L 0.0 _ 0.0 NWLSVAL - UNITToteal Oaw-etat Costas 350.0 20.1 30.0 50.0 40.0 tO.0 170.6It. Reurrt Cota

A. er ps t I I I I I I * 1. .| .1 S 1 1. S t.S t.S 0. 0.0 0.O 0.0 "0l tVAL UIITsacrtatry .Driver . l a 2 2 2 II 1.5 3.0 3.0 2.0 2.0 2.0 1.0 10.0 .0. 0.0 .0. MMON OVAL U"ITNasnSer P. A I I I I I I 4 * S _J - 5 . 0.0 0.0 0.0 O* OOIVAL_UNITsubtotal beroael .1 S1.1 S.1 S.1 S.1 *.I 30.Sa. Vehilel Oes..tiasPick-up Double Cab. .o21.0 2. 10 2. 10 2. 5. . 01 00NN AIIC. Ouguta sad SoppliaaO t ficeuII** P.&. I I I I I 12 * 0.0 . 0.0 NW1LWVAL_tMAUIT

1611F.P.90 39~~~~~~~~~~~~~~~24.2 114.1 134.1 22. 4.l 134.1 1.054.6

tuO 2-waeka' courses tor 4 pertlcipantu each.

wed Oct 21 11i57S50 tol4

A'vi~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~O

table 402. fla emntol Noetotlng and

uInit r tt fCost Pg Chos7

llt ltSL 1Jfa&II I' L -L±*ML .Cost COOt. for. ean _ _ __ _ __ _WInL- IJSL Ill- not. 210k 30L ijjj§jjjjjk ±103 JnUL Lut lnoamL ABU. saw. 1 LTL1 ULoL_. Inch. UIkta.

t. laweakeat CcostA. W.atef iasjt? tt,,1srlog /

Water Iaayling end Analyala acayle Ig0 H5 ISO 10 6 Igo 2016. g0.0I66. I go0 50.6 16.0 50.6 351.0 1*.0 60,1 0.0 INVI0OhNHTIAL HoWl?oa3MJi suoogvymoNoll aeIS Log and Analya l amp_le 10 t0 10 to to Is go 0.11 _1 J _14 .. .4 _A4 41 31.0 S0.I a.o lIRnvag AL_Nou1gaRlN7AaJUsomvssotjubtatl Oat-r Ovality Mositorae s . 20 . 42.S '2 . $32. 3716.3D. Orouawadata Hoalteglag

kgilling Coat unit 30 I 30 1.3 03.0 -11.0 1.010. 0.0IIWOCIITAL HONIIGIOIUANDgtJPsawlg,Mobilisation and Contracting, *nd Civil Vtk unit 10 _ _ * 30 2.2 A1 101 . VDu s

Subtotal Orouedaatsg aiteore I17? . - - - 317.C. study o Supply et Prinhlng later amunt 9,* 106.01 M0. 0.0 0. 0.0 UiU OW ITAIWIE. Health Monitoring amount LI.4 I 4 Li1 .4A 2LA I1.0 so. 0.0 0NVlaobwhlnLNoug1uoWa-j pfVtS ONTotal 236.0 171.0 71.0 71.0 71.0 11.0 503.2

i. t would be undertaken by the Soil and Natea eesaercb Inotitute.

wed Oct 21 11:0151 3006

ON

: '1

ARAM amuLc at wiDYrlast Delta Ee1iand Agricultural service Irejct

table SOI. a¶ty of DrtikilW "aterCoatli Coal

Cost thy, grossILI set Cant. Pat, x txrn

t. laveahaat CoatsA. Civil Horks sapunt 15,o0o. see.o 2O.SO S.@ 1. .l 0.0 DRIlNIIW HAT_lIIB. Iquipeent amount .L_O JIa s - , )-L 0.aR0 1 15.e VIIHKIHO HNxE

Total li9.OO.0 1S,001. . - 34*000.S

llod Oct 21 13,33,0e 10U

0'

Ii

RlAB tNOMLIC Of GYPTOlt Delta Hovland' Agricultural service Project

Imflatleem sod GSbeaga sales

Up totip to Pirojeet

MaSRL1ALiaO -SeLA ISlE.ASL ZOO9JL AAL- 22iii.2nal

totl tle ln Om Va /aAll

Anual g.t.eLocal 1.4 *.0 7.0 S.0 S.0 5.0 5.0 5.0Foralin 1.t 1.1 1.6 I.6 1 .* 2.6 2.9 1 .S

Coagousdad ratesLocal 1.4 6.0 11.6 tS.@ 2S.6 31.4 36.4 45.3Sacbg I1.6 1.1 2.6 S.) 0.0 10.0 13.6 11.1

Wats actually Used 1.4 1.4 1.4 1.4 9.4 1.4 3.4 1.4Constant purchaing parity rates 3.4 1.4 3.1 7 ;# 3.9 4.0 4.1 4.2t devwation 0.6 0.4 -7.6 -11.2 -13.6 -IS.S -11.1 -1I.1

%e yearly valuic are within Bach krtect Yearfb Yeatly values are at Froject Veer Midpoints

Tue Oct 29 11*slStD 1996

04

IA

-Js31

Figure 1. EGYPT: East Delta Agricultural Services ProjectOrganization Chart

MALR lW |National

Level

.. ....................GAIoPAD odNational PBIDAC ~.. ._ _..... Coordinatlon i-- ", - -................ ....Nataonal CoorGrnator Comtitte/ I....................... ....:__

.~~~~~~AES AR.... ........... ...... ..... ......... ------------------- --------- -..... . . . .. ------ ------------- - . #.i. . --- . . .. -- -- ---- ------Regional/Governate/ | Sri |---C

_.Project WaterLevel

..................Level .- | utlority P|IU Regional Governate MPWWR 00Governate . . 'ten*Ion J GovernateBDAC's Project Director Omces

Village^ l[k

1 iCooperatlves WUAs .. e-----------

Village | DACs I t $ r

Direct Action r...... .-- Support- --- ----- ---- Responsibility Level

0_

- 39 -

ANNEX 1 (c)sChart I

EGYPTEAST DELTA NEWLANDS AGRICULTURAL DEVELOPMENT PROJECT

Key Monitoring Indicators

Output Indicators Unit ist Year 3rd Year 5th Year

1. On-farm DevelopmentTertiary drainage fed 1,500 18,500 20,160Tertiary Irrigation fed 1,500 18,500 20,160Leaching fed 1,500 4,500 20,160

2. Supply of Drinking Water contract construction All villages in Northletter completed and South Hussainia

with drinking water3. Village Banks Constructed

and staffed no. 1 3 4

4. Agricultural CreditShort-term (farmers) no. 1,800 12,000 15,000Medium-term LE m. 7.7 55.0 81.0Long-term LE m 1.5 10.0 14.0

5. Procurement of Vehicles andEquipment

Vehicles no. 26 -Computers no. 36 -

6. Extension/ResearchVEW no. 60 130 130Demo Plots no. 20 60 80SMS no. 8 16 16Experimental Plots no. 8 30 50Farmers Training Courses no. 25 40 40

7. Cooperatives Established no. 20 40 60Water Users' Associations Established no. 20 60 100

Development Objective Indicators

1. Adoption of TechnicalPackages (farners) no. 1,500 10,000 13,000

2. Annual Increase in AgriculturalProduction

Milk tons 100 13,000 53,000Meat tons 30 800 1,200Cereals tons 450 24,000 42,000Cotton tons 0 0 800

3. Incremental Production for Typical 5 fed FarmRice 0.8 0.9 2.5Berseem 7.8 19.0 20.0Wheat 0.0 0.4 1.2Milk 0.2 3.4 4.9

4. Incremental families settled 1,400 7,000 15,000

EGYPTEAST DELTA NEWLANDS AGRICULTURAL SERVICES PROJECT

Logical Framework

Project Narrative Summary Verifiable Key Indicators Means of Veriricatdon Important AumptionsCAS Objectives1. Support private sector development * Number of agro-enterpries established * Project evaluationr * No abrupt policy changes regarding2. Alleviate poverty and unemployment * No. of families sttled and gainfUy * PBDAC reports settlement3. Improve natural rcsource management employed in project area * Soil/water monitoring data * Continued frce market economic framework

* Soil and water quality accepble

Development Obiective1 Facilitatc the settlement and increased * No. of technical packages adopted * AWP/B * Willingncss by famers to adoptagricullural production of newly settled * % population in No. & So. Hussainaya * Disbursements technologies that incrcase gmss marginsfarmner in the East Delta Newlands with adequate drinking water * Village and farrn surveys * Efficient credit promotion and2. Realize the potential and maximize * Agricultural production inerease * lBeneficiaries monitoring administrationreturns to suit investment in Land * Yicid increases of typical farms * Loan repayment rates * Continued adequate pmvision of irrigation

Reclamation. * No, of familis settled water.0 Adequate operation of drinking water

system by Sharkiya Water AuthorityOutputI. Research/extension system opentional * No. of experimental plots & demonstration * AWP/B * Delays in completing social services and2. Community development operational plots cultivated * Annual and six monthly tertiary frastructure that can lead to delay3. Tertiary infrastructure compilted * No. of cooperatives & WUAs fonned reports in sttlement of farnner4. Drinking water system completed * No. of feddans with teriary infrastructure * Annual accounts * Adequate irrigation water supplics5. Financial support scrviccs operational * Watr treat ment plant completed and * Balance sheets delivered to Es Salam canal6. Projed management unit functional network laid in North and South Hussainya * Loan disbursement tables * Adequate counterat funding

* Village banks completed, staff trained* No. of loans approved* Prject M&E system established

Inputs/ComponentstResourMcsI Adaptive research and training services * Rescarch staff nominated * AWP/B * Timely execution frmework and provision(TA & equipment) * Extension/SMS staff nominated * Annual and six monthly of services and inputs2. Extension training services (TA & * Goods purchased reports * Delays in project effectiveness arc withinequipmcrnt) * TA contracted * Procurement the norm3. Community Development Support (TA & * Civil works/equipment contracts lot documentation * Adequate counterpart fundingequipment) * Agreements between PBDAC and BDACr * Annual accounts4. On-farm infrastructure (civil works) finalizedS. Drinking water provision (civD works) * TA for PMU rceruited, coordination S Z6. Financial support services (goods, TA & committee cstablished c civil works)7. Projec management and monitoring (TA

and goods) -.

Egypt - East Delta Agricultural Strvices ProjectProcurement Plan

.____________________________ .Method of Preparbng of Approval of . Bldhn Bid IDN IFAD Om DeverylConlracUProcesslng Procurement BD ID by IDAAIFAD bsue of ID Opening of BD Evaluation Approval Award tnplemenL

PROCUREMENT OF GOODS & MAtERIALS ..Bicd t- Vehicls. Motor Cycbs & Bicycles ICe 9197-10197 Nov-97 Dec-97 Jan-98 Feb-98 Mar-98 Ap98 698-1199

Package 1 - Vehcles (26 no.) .. _._._..

Package 2 - Motorcycles (59 no.)

Package 3 - Bicycs (130 no.) . -

Did 2-- Cbpters & Ofce Ecp4ne ICU 9197-109 Nov-97 Dec-97 Jan,98 Mar-98 r-98 May-98 7196-2199Package 1 -Computers & Printers (38 no.)

Package 2 - Office Equpment (fax, cp. ate __.) _

Bid 3 -Adopive Research Equipment ICB 11917-1108 Feb98 Mar-9 May-98 Jun-96 Jk-98 A98 18G98-4199Package 1- Land Devel. Drange Equipmen( __

Package -2 Sdl & Water Equipment _ _ _____._._._

Package 3- Crops and Plant Eqtupment _ | .__ __--|

Package 4- Veterhary Equipment

Bid 4 - Extension & Traing Equipmentl I 1ca8-3198 AprJ 8 May-98 Jul-98 Aug-8 Sep-98 Oct-98 11991V299Package 1- Electric Generators (4 no.)

Package 2 - Training equipment ._._______

Package 3 - Field Equiment

PRROCUREMENT OF CIVIL WORKS ._._.__

Bid 1- North Hussalnya Scheme NCO 9197-1219- 1181981/31198 Feb-98 3/15198 3115-4/1598| May-98 May-98 5198.122000Bid 2- South Port Saki Scheme NCB 3-6/001 71ffO-RW0 Aug- Oct-0o 10100-11115100 Jan-01 Feb-01 3101-12101Bid 3- South Port Said Plain Scheme NCB 9197-1V97 Jan-98 Feb-98 3115198 311519-4115I98 4198-5/98 Jun-98 7198-10100B;d 4- Um El-Reesh Scheme NCB 3197-6/97 Jul-97 Jul-97 Aug-9 7 Sep-97 Oct-97 Oct-97 10197-12198Bid 5- V'iage Banks (4 no.) NCB 6197-9197 Sep-97 Oct-97 Nov-97 Nov-97 Dec-97 Jan-96 W2198-600ld 6- Drinlwig Water Supply ICB 6197897 Sep-97 Sep-97 Nov-97 Dec-97 Jan-98 Jan-98 21984199

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EGYPTE-AST DELTA NEWLANDS AGRCULTU)RAL SERVICES PROJECF

Implementation Schedule -South Poit Said

1990 1997 1 1916 I 1is" 20001 2001202 ] 00ID Task Namie Duration Start Finish 0203 041 01 Q210310410iIQ21 303 410119~02 I93104lltI02lQ I31Q JQJ3QJ1QJQJjqJ20

-43 Field Drain 26w 11118108il 511810

44 ~~~~Drain 40w 12/`16/98 9121M9

45 ~~~~Main Drain 3w 11117199 6311310

49Tertiay kirigation Network 775d 711199 611910 U1 1

47 ~~~~Intaks 22w 10/14198 3/16199

43 ~~~Outdiles 25w WM19 112510

49 ~~~~Main Masqa 330d 71113 1010/3

50 ~~~~~Earlthworks 40w 71119 4/6/9

51 ~~~~~Concretewoks 5Ow 8112108 7t27/99

52 ~~~~~Stone works 501w 10114/98 912819

53 Structurfes SOw 10121/98 101MM

IN Masqa 41N 417/9 10/31100

66 ~~~~~Earthworks 80w 4'WIN W017100-

56 Concreteworks 70w 5/519 9/5/00

ST Stone works 70w 5/19/9 9/19100

59 ~~~mamwa 4500 W12793 10117100

60 ~~~~~Eaulthworks 90w 117/9 10117100

61 ~~~~~Corncretewotks 80w 2/24/99 9/1510

62 Stoneworks 80w 2r24/9 9/5/00 1.63 ~~~~~Structures 60w 8118/99 101100

Task1 Sumary Roled Up ProgessNestands Agr. Sarv ~~~~~~~~~~~~~~~~~~~~~~~0Project: East DeaNMM g.St Progress Rotted Up Task

Date: 10129190 0oMilestone Roiled Up Milesone <

Note: Actldtes In Italics are not funded by the Project

EGYPTEAST DELTA NEWLANDS AGRICULTURtAL SERVICES PROJECT

Implenienlation Schedule -South Port Said

¶917 1393 1199~~~~~i 2000 2001 2022002ID TaskNarme Duration Staul Finish 12 Q3141Q1Q02Q03 C Q1Q401 2 031041011 21031 011021031041 l23412Q o6i4 Farm Ditch 60Od 11113199 1011113

65 Ealhwarlis 1E00Ow 1I1I9,6M 1101700

66 Roads Slid 1111313 111710

67 Sub,-base 9Gw IIilam9 01810

69 Buse 80w 3r24199 181300M

so AspInat 60w 311619 l1/700 470e Leaching 1114dj 11122130 311910

71 FIrs Leacd.n 4w 111r210 12l1g0

72 Second LeacNng 4w 21811 3127101.I

73 Thr ecig4w WWI10 6113101

74 SOUTH PORT SAI SCHEME 296dj 31711 34102

75 TeotIhr Drainag Netwaik 20Od 31710 1211110

76 FIeld~~~M Drain 25w 317101 314101

77 ~~~~~DFRai 2w 4118101 18101601

is MakDimai 2&& 61110 12111101

79 Tertiary Irrgaihan Network 280d 311011 1211110

s0 intakes I12W 311101 5190

31 ~~~~~o'diaIs 15wV 8//1MI 200

32 main masqa 2OOd 317101 12111101

32 Eadhworks26 317101 9/4101

34 Concretwiorks 20w 5/161 1120

0

Note: AcIMlies in Itakis we not funded by the PrOtect


Implementation Scliedulc. -South Port Saaid

1996 Is" 1991 1999 2000 2012002 20ID Task Name Duration Start Finish- 02014 1211401 102 031110 30 1 20 40 20 0 10 30 02 03es Ston works 18N 4/18101 812M/0

06 ~~~~~~~SkLrctures 15w 8129/01 12(1 1101

57 Masqa 1USd 3/7/01 10/9101

Be Eadhworks 25w 3M7)0 812)0

39 ~~~~~~~Concieleworks 21)w 4/4/01 8121)01

so Stoneworks 15w 50201 8)14/01

Si ~~~~~~~skmuches low 6/20/0 1iGa

92 Mauwa 18Od 3/7/10lOflOi

93 Eadhwodts 31)w 3r/7/0 10/11

94 Concreteworks 20w 5/1610 10/1& i............. ............. . .......

99 ~~~~~~~Stoieworks 15w 6/201) 11(2101

99 ~~~~~~Structure 12w 71210 10116/0

37 ~~~~~F.m DItch 159 3175 '10=121

93 Eahoes3w 3/7101 10/2101

Roads hOd 4/4/81 1211151

100 Sub4mae 25yw 4/4101 9125)0

101 Base 20w 5r30/0 10/18)01

102 Asphiaf 15w 8W210 12)11/01;

103 Leacthing SWd 12/12581 35)62

104 Fkrs Leachin 4w 1212M101 1/810

105 Second Leaching 4wl 1)9102 21502

___ ___ __ ___ __ ___ ___ __ ___ __ ___ __ ___ ___ __ ___ __ ___ __ ___ ___ _ ___ __ __ ___ __ ___ __ ___ _ ___ ___ __ ___ __ ___ __ ___ ___ _ __ __ ___ __

(DATask Summary Rabd Up Pfogrom 0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~If

Pr*d EWDeffaNewbm!sAgr Serv Rokled Up Tnk m~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-

No~AlvtSIn Kals ame not Iwidd bY tNe Project

EGYPTEAST DELTA NEWLANDS AGRICULTURAL SERVICES PROJECT~Implementation Scikedule -South Port Said

1996 1 l"T I 1393 I is" 20 2001 I 2002 I 003dID Taksk Name Duration Start Finish 1203104101Q210310410102031041011021031041011021340330401Q2 034 1020106 Ttkd Leaching 4w 21512 3/510 I1-07 UNE.REEISHEEJd 10/22/97 213file___

l0t Tertiary Drainage Network 3Old 10122/97 12/22198

109 Field Drain 40w 10/22197 7/28/9

110 Drain 40w 12171797 9/2219

111 ~~~~~Main Dran 45w 2)11 98 12/22/98

112 Tertiary Irrgation Network 3OOd 10129/97 12/2218

113 Intakes 12w 2/11/9 515/9

114 Oulfalts 16w 7/15/98 10127198

1111 Main Masqa 2Bid 10/29/97 10128/

116 ~~~Ea,thworks 40wi 18/99 8/4/98

lit Concreteworks 30w 1/7/98 8/f4/9

111 ~~~~~~starve works 3Dw 2)18/ 98 15/98

119 Stnicures 25w 4r29/96 1I12(r19

120 Masq4 270d 10129/97 l1/10181

121 Eprwwtwok 40w 10129/9 8/4196

122 Conceteworks 30w 2/4/96 9/1/98

123 Stone works Sw 3/498 9299

124 Struwtures 25w 5/20/98 I1110M9

125 ~~~~~Mwwa 30Od 10129/97 1212211311

125 ~~~~~~Earth%wurks 45w 10r20971 MM I9

0

NOWe Aclimte in Rafct are not f.mded by lOm Piojed


Implementation Schedule -South Port Said

1996 1 1997 1993e 199 M00O00 2002 2003ID TaskName Duration Sladt Finish Q203 04 01l02 Q31 04010210310401Q 02 0304 0Q1 0 301022Q30, 04 01Q02j0304j01 0-20[3127 Concreteworks 30w 2J/11/90 9/8196

123 Staneworks 30w 2111/98 9/8/9

129 Strutures 25w 711198 12/22/98

130 Farm Ditch 260d 10/29/97 10/13198

131 Eartiworks 50w 10/29/97 10/1319

132 Roads 265d 11/26197 12/119

133 Stb-base 40w 11/r2697 9/1/98

134 Bass 40wv 1/21/9 16127/981

131 Asphalt 25w 6110/8 t2/1/98

136 Leaching 1T0d 12119/9 1113/3

137 FitatLeacNnrg 4w I299 1/5/99fi

133 Second Leachinkg 4w 3/31/99 4/27/99

139 TNird Leaching 4w 70/79 8/3/99

140 DRINKING ~WATER SCHEME SlId 101/996 4/16/99

141 Preliminary Design 8d 10/9/9 10/18/9

142 Final Design 24w 1/13/97 6a27/97

143 implementatimn 90w 7189 4/116im

144 SEWAGE WORKS 20w 12115i97 5/1i98

146 DRA INAGE PUMWPING STATIONS BlOd 6/5/8 1219

41 Malay lOw 10/22(9 12f1i196

147 Nodh hussahiya low 10.23(96 Z1231/96

0

ine:Acv Rashfltcs arenotfunded by thPefe*ct


Implementation Schedule -Soudh Port Said

1996 1 937 1993 I 199" 2000 2001 2002 2003ID Task Name .Duration Start Finish a2103141010210310401QI 2203041 0000 000 2000 00000143 South Hussatna'y low 10122197 12/30/7

149 South Porf Said low 6/5196 UV13A6

160 South Poad Said PhaI low 10t23.'6 12130/6

1s5l Urn El Reesh 30wv 6/3WS 1219"9

152 ELECIRICAL WORKS 854 &'2i9 9/17r96 mw

153 Nvetworks 5 2

154 Transformers 4w MM196 9179

151i AGRICULTUIRAL SUPPORT SER l640d 10122197 9116103

156 Extension liftEd 10122197 7122/9

157 Equorwent (37) Mot* MGM21 21800

158 ~~~~Office EquIpmert 12Dw 10122197 2190M

159 Field Equpnien* (8) 120* 111II9197 371900

162 AdaptVehieReseac Ild 1112J97 31913 mm163 TeahnnglAs/tac 300* 111597 7822103

164 Research 300w 11/19)19 0/19/03

165 Commnunity 13evelopment 1540d 122 97 916103

166 ~~~~TA TralinIg 300w M022/97 7M2M9

167 Promnotion ofWater Uses 300w MIMI/9 9/16/0

Igo Ofke E"OnNM ~~~~30w 1114/9 8111198

00'0'.

ine Ate tin Iw e.a not bmded by thes Project

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- 54 -ANNEX 1 (f)

Page 1 of 3


Terms of Reference for Project Management Unit

Terms of Reference for Project Director

The project director would be appointed for six years after an initial probationary period andwould reside in the project area. he would have overall responsibility for all aspects of projectimplementation, including procurement, project expenditures, preparation of quarterly and annual workplans, coordination with other agencies in the project area, intemational coordination, monitoring andevaluation, and management and recruitment of project staff. He would chair the regional coordinationcommittee and report to the chairman of the national coordination committee.

He would be an engineer with substantial administrative and project experience, and previousexperience with intemationally financed projects. He would have a thorough understanding ofgovernment procedures and experience in inter-ministerial committees. He would have experience withthe practical aspects of rural infrastructure and land development schemes in Egypt. He would haveknowledge of English language.

Terms of Reference for Project Procurement Manager

The procurement manager would be appointed for four years after an initial probationaryperiod and would reside in the project area. He would be responsible for all procurement under theproject, including civil works and goods, and training and technical assistance (with the advice of therelevant sectoral experts), procurement planning and monitoring, for which he would set up a planning/monitoring system.

He would be an engineer with knowledge, in addition, of the commercial and legal aspects ofprocurement. He would have knowledge and experience with IFAD/World Bank guidelines and practicesregarding both international and local procurement. He would work closely with other expertsresponsible for project implementation in preparation and evaluation of bidding documents. He wouldhave knowledge of English language.

Terms of Reference for Project Financial Director

The financial director would be appointed for six years after an initial probationary period. Hewould be responsible for all financial aspects of the project, including expenditure planning, planning ofthe appropriate counterpart funding allocations, monitoring project expenditures and maintenance of theproject accounts, preparation of withdrawal applications to IFAD/IDA and payments to suppliersincluding letters of credit, payment of staff and management of recurrent expenditures, management ofthe Special Account, maintenance of all financial records and statements of expenditure, and preparationfor an organization of the annual audits. He would also monitor the cost-effectiveness of projectactivities, together with the monitoring and evaluation specialist.

He would be a financial analyst with a background in accountancy, and substantial experiencein the financial management of public sector infrastructure projects and government financial andbudgetary procedures. He would have knowledge of IFAD/World Bank disbursement procedures andintemational banking practices for payment of suppliers. He would also have experience withestablishing financial management and monitoring procedures for new projects. He would be computer

- 55 -ANNEX 1 (f)

Page 2 of 3

literate and able to train other staff in financial computer packages. He would have knowledge of Englishlanguage.

Terms of Reference for Monitoring and Evaluation Unit Manager

The M&E manager would be appointed for six years following a probationary period. Hewould be responsible for monitoring all aspects of project progress, including physical works (incooperation with the procurement manager and the responsible engineers), project expenditures (with thefinancial director), allocation of credit and repayment rates (with the relevant BDACs), progress with

extension and research, and soil and water quality monitoring. He would design appropriate monitoringsystems. He would also design and record appropriate project impact monitoring indicators. He wouldbe responsible for socio-economic survey work as appropriate. He would design, together withcolleagues responsible for the other components, the mid-term review and project completion report,which would evaluate project progress in relation to objectives. He would ensure that monitoringindicators serve as practical tools to project management and help modify activities as appropriate. Hewould assist with quarterly and annual progress reporting and planning. He would manage and train, asnecessary, other staff in the unit. He would establish an M&E program with indicators which would beapproved by the PMU, regional and national committees within six months of his appointment.

He would be an agricultural economist with thorough knowledge of the irrigated crop andlivestock systems of the Delta, and training and experience in monitoring and evaluation, anddevelopment and use of monitoring indicators as a management tool. He would have experience withconducting farm surveys. He would have experience also with rural infrastructure projects (irrigationdevelopment, water supply and social infrastructure) and their evaluation. He would have anunderstanding of environmental monitoring relevant to the area, in particular soil and water quality andhealth impact monitoring. He would have experience with broader project evaluation, including mid-tern evaluation/restructuring and completion evaluation. He would have knowledge of Englishlanguage.

Monitoring and Evaluation Specialist (Social Impacts)

The M&E specialist would be appointed for six years and would reside in the project area. Hewould be responsible for M&E of the socio-economic aspects of the project, including the impact onproduction and income, progress with utilization of credit, health impacts, progress with settlement,establishment of social infrastructure and community development.

He would be a socio-economist with experience in M&E, in survey work and computerpackages, understanding of the farrn systems of the project area, and good understanding of theinstitutional and social organizations in and around the project area. He would also have a good practicalunderstanding of the linkages between monitoring and project design/management.

Monitoring and Evaluation Specialist (Physical Impacts)

The specialist would monitor the physical impact of the project, including synthesis of progresswith physical works (tertiary irrigation, drinking water, irrigation water, etc.) and monitoring of soil andwater quality.

The M&E specialist would be a civil engineer with good understanding of environmentalengineering, of newlands irrigation development projects and their evaluation, and of relevant computerpackages. He would also have experience with soil and water quality monitoring methods and indicators.

- 56 -

ANNEX 1 (f)Page 3 of 3

International Technical Assistance M&E

The M&E expert would provide operational assistance with (a) establishment of M&Eindicators, establishment of the M&E system and specifically its integration into managementinformation, (b) review of their effectiveness and revision as necessary, (c) preparation of the mid-termreview, and (d) preparation of the project completion report.

He would be an agricultural economist with broad practical experience with designing andmanaging monitoring and evaluation systems for agricultural/irrigation development projects indeveloping countries, and a thorough knowledge of and ability to provide training in appropriate, user-friendly computer packages. He would understand survey methods. He would also have experience indesigning/conducting mid-term reviews and project completion reports.

Extension/Research Coordinator

Although a member of the PMU, the extension/research coordinator would be seconded fromone of the AES of the surrounding govemorate for a period of six years. He would be responsible forensuring that the organization and phasing of the agricultural extension/research programs are consistentwith the physical development and settlement for the area. He would facilitate provision of equipment/logistical support to the AES/ARS provided under the project. He would coordinate design of theextension/research programs with the different govemorates AES, and assist with diagnostic surveys.Together with the AES and with the support of the CAESS, he would design training programs for theextension agents and SMS.

He would be an experienced agriculturist with solid experience in the design andimplementation of extension programs, and familiarity with the farm (including livestock) systems of theproject area. He would be well-connected with the local extension/research establishment, and have abroader understanding also of adaptive research in Egypt, and in particular the most effective methods oftechnology transfer to farmers' fields. He would have experience of extension programs adapted to theneeds of women. He would have solid understanding of and experience with the use of the differentmedia in information transfer (mass media, brouchers, field days, farmers' groups/lead farmers, farmers'training, demonstration pilots, etc.). He would have experience of the most appropriate training forextension/applied research staff.

Community Development Specialist

The community development specialist would be appointed for six years after a probationaryperiod. He would be responsible for assisting settlers with (a) formation of cooperatives, and assistanceto cooperative managers with credit applications; (b) formation of water users associations andestablishment of linkages with local Ministry of Public Works and Water Resources staff, and (c)obtaining assistance from the Govemorate administrations with provision of adequate social services tothe new villages.

He would be a senior experienced extensionist with good background in formation ofcooperatives and community groups, knowledge of water users associations. He would have goodunderstanding of local government procedures, including regulations and legal aspects, and previousexperience in/around the project area. He would have good communication skills and training inparticipatory techniques.

57 ANNEX 1 (g)

i~~ ; WARAB REPUBLIC OF EGYPTEast Delta Agricultural Service Project I

The Proiect Disbursement Table ___

l_________ l (In million USS) I i l

ELI l II _Fiscal YeaK Quarte I I FAD . |.Q IDA ____11998 1 1 i _ I I

Third _ j 0.3 0.2 l 0.5_ Fourth _ 0.8 0.5 1.2 _

Total I - | 1.1 0.6 1.7_ _ _ _ _ I __ t_ _ I _ __ _

1999 First I 0.8 0.5 I_I_'_j Second r 0.8 0.5 1.3

Third 1.3 0.8 2ForthI _| 1.6 0.9 2.5

Total I_______ 4.4 2.7 7.1

_ _ _ _ __ _ _ I._ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ I _ _ _ _ _ _ _ _

2000 First | I 1.6 0.9 2.5 ISecond _ 1.6 0.9 2.5 Third 1.7 1.0 2.7

I Forth _ 1.8 1.1 2.8 TTotal s ! 1 6.6 3.9 I10.5

2001 | First | | 1.8 I 1.1 [ 2.8 _

l Second | 1.6 i 1.0 l . 2.6 _

1 Third f___ L 1.5 0.9 i 2.4 _______

Forth I l 1.4 0.8 2.2 jTotal 6.2 3.8 10

__ _____ ____.I_2002 First I 1.3 0.8 2

I Secondj 1.1 0.7 1.8 _

Third 0.9 j 0.6 1 1.5 1l Forth 1 0.8 0.5 ! 1.2 - _

Total I _ | 4.1 f 2.4 6.5

2003 First |___-_0.5 0.3 0.8 _

S Second I 1 0.5 0.3 0.8 II Third _ 0.4 0.3 0.7 _

Forth I 0.4 0.3 0.7Total I1.9 1.1i 3

_ _ _ I_ _ _ _ _ _ I .._ _ _ I _ _ _ ,

2004 First 0.4 0.3 0.7 1_ Second I i 0.4 j 0.2 0.6

Total I ___ _ 0.8 0.5 1 1.3 _ _

Gran Tota250 I .I 4_0.0

Grand Total' ! 25.0 1 15.0 40.0 1___

- 58 -

ANNEX 2Page 1 of 5


Financial and Economic Analysis

A. General

1. The objective of the project is to facilitate the settlement and increased agriculturalproduction of farms on newly reclaimed land in the East Delta, thereby laying the basis for increasedincomes and a sustainable rural economy in both farm and off-farm activities. To facilitate this objective,the project would offer agricultural support services; seasonal, medium-term and long-term credit;tertiary irrigation and drainage networks for 20,600 feddans; and drinking water for two of the six projectschemes.

2. Credit would enable the settlers to apply adequate farm inputs in their crop mix and adoptmodernized farm technology packages. As the project area is located in Egypt's main livestockproduction belt, with credit settlers could start livestock development activities and derive benefit from amixed farming system. The project would also provide financing for small-scale business and tradingactivities, including milk collection centers, milk and fruit and vegetable processing activities, machineryhire operations, etc. The type and scope of credit would be demand driven.

3. Indicative crop and livestock budgets, farm models, and some small-scale agribusinessesprototype models were developed to show the financial and economic viability of this project. For theeconomic and financial analyses, the investment incurred so far on irrigation networks, landimprovement programns, and construction of infrastructure were treated as sunk costs. It was, moreover,assumed that settlement in the project would take place both "with" and "without" project, in accordancewith the government's anticipated program. However, in the situation of "without" project, agriculturalservices would remain very weak and the settlers would not have access to reliable credit sources.

B. Financial Analysis

4. For the crop and livestock production activities, indicative crop and livestock budgets, andfarm models have been developed to compare the situations of "with" and "without" project. These aredescribed in a working paper available in the project files.

5. The size of the holdings is assumed to be five feddans. While the settlers would be able toborrow from PBDAC under its prevailing credit terms and conditions in the "with project situation",they would revert to private money lenders with stringent borrowing terms under the "without projectsituation". For financial analysis, the "without" project interest rate was assumed to be 16%. It wasassumed that the settlers would raise livestock, and purchase one milking cow and a buffalo calf duringthe first year of their operation and another buffalo calf during the second year. It has been assumed thattertiary and leaching works would take a year, and that a further two-year delay would be realized if thesmallholder does tertiary work in the 'without' project situation.

6. Crop budgets have been developed on a per feddan basis for six of the major crops grown inthe project or adjacent areas. Incremental crop yields for the" with" and "without" project situation havebeen determined using production parameters achieved by farmers under similar situations in Egypt(Table 2). The yield build-up is assumed to reach stability after five or six years, depending on the crops.

- 59 -

ANNEX 2Page 2 of 5

From year 4 onwards, it has been assumed that farmers would grow berseem and wheat in the Winterseason, and rice and cotton during the Summer season.

7. Results are presented in Table 1. This Table reveals that net farm revenues would increasefrom about LE 4,500 annualy 'without' the project to LE 11,000 'with' the project. Once the crop yieldsstabilize, families with a holding of five feddans would receive incremental yields of 0.6 tons of wheat,3.1 tons of paddy, 0.3 tons of cotton, 19 tons of berseem, 5.1 tons milk, and about 250 Kg of meat. Thecash-flow tables show that the household's revenue increases only gradually during the initial three years.

Table 1. Production Costs and Revenues(in LE per 5 feddan farm)

Without the project With the project

Prod. Rev. 7,388 18,569

Prod. Cost 2,868 7,4631

Net Benefit 4,520 11,106

Labor Requirement 384 652

Return to Family 12 18Labor per/day

8. Models for one milk collection center, one milk processing plant, and a small-scale wheatand rice mill have been developed. Cash-flow analyses for these models show the following financialrate of return:

Type of Actiity Financial Rate of Return

Milk Collection Center 35%Small-Scale Milk Processing Unit 34%Small-Scale Wheat and Rice Mill 35%

Based on these FRRs, the envisaged activities are financially viable, and the investors would have noproblem repaying the loans. Details are provided in the working paper.

1/ Under the situation of Model 3, the cost includes the repayment of tertiary work cost to the Government. It is assumedthat the loan would have a grace period of three years and would be paid back in 30 years including grace period.

- 60 -ANNEX 2

Page 3 of 5

C. Economic Analysis

9. In the calculation of ERR, only benefits from crops and livestock were considered, and therevenues and operating costs for this analysis are based on the farm models' results. The benefit streamaccrues from: (i) incremental crop production from 76,300 feddans farmed by about 15,200 families whowould borrow from PBDAC to apply inputs, and raise livestock; (ii) a 10% increase in the crop andlivestock production of 13,000 families who adopt appropriate extension technical advice; and (iii)incremental revenue obtained by 4,000 families benefitting from tertiary irrigation who would startagricultural production two years sooner "with" than "without" the project.

10. The total incremental cost stream consists of (i) the incremental crop and livestockproduction cost of 15,200 families who receive project credit for their farning and livestock activities;(ii) the tertiary development cost; (iii) the project investment and recurrent costs; (iv) the estimatedinvestment and recurrent cost for drinking water; and (v) and maintenance cost for the irrigation network.

11. For traded inputs and outputs, World Bank price projections were used to estimate farmgateeconomic prices, and for nontradable inputs and outputs, financial prices are based on prevailing marketprices in Egypt in 1996. A Standard Conversion Factor (SCF) of 0.88 was applied toward the project'snon-tradable costs and benefits. AH economic values were converted to local currency at the officialexchange rate of LE 3.39 to one US dollar. The shadow wage rate was assumed to be the same as thefinancial wage rate for hired labor and no wage has been considered in the economic cost calculation foruse of incremental family labor. The cows and buffaloes used in these farm models are assumed to havemilking lives of seven years and to be culled after 10 years. Also, once the livestock producers havepurchased a cow and two buffalo calves, they would retain their stock size from their offspringsthroughout the project life.

12. Based on these assumptions, the economic rate of return (ERR) was calculated to be 33%.The resulted high rate of return is not surprising in view of substantial sunk investment costs associatedwith the El-Salam canal, and sizeable under-utilized family labor in the "without project" situation.

13. The project in its maturity would produce an incremental production of 77,000 tons of milk,1,600 tons of cow meat, 1,900 tons of veal meat, 9,000 tons of wheat, 47,000 tons of rice, 4,500 tons

of cotton, and 290,800 tons of berseem. These 'staple' outputs easily sell in the market; wheat, rice andmeat would substitute for imports, while cotton would be exported. Also, dairy products have a goodmarket in the city of Port Said which is close to the project area. In addition, the project would createabout 13,000 jobs per annum, and women are expected to take more than 50% of the newly created

2jobs.

14. Sensitivitv Analysis. The project would remain viable under a wide range of alternatives. Iftotal project cost would increase by 20% and at the same time, if benefits decrease by 20%, the ERRwould still be viable at 18%. If the project's benefits would be delayed by three years andsimultaneously if its cost increase by 10%, the ERR would drop to 14%. Although this situation is notlikely to emerge, the ERR is still higher than the opportunity cost of capital in Egypt which is at thepresent less than 12%.

2/ Most of the new jobs comes from livestock development activities which are generally carried out by women in Egypt.

- 61 -

ANNEX 2Page 4 of 5

Table 2. Crop and Livestock Yields

I. Crops Without Project With Project Incr. Prodton/feddan Ton/feddan ton/feddan

1. Wheat 0.9 1.5 0.62. Rice (paddy) 1.5 2.5 1.03. Cotton 0.6 0.9 0.34. Berseem 14.0 20.0 4.0

2. Livestock Products3 Without Project With Project Incr. Prod.in ton in ton in ton

1. Milk 5.1 5.12. Cow Meat 0.126 0.1263. CalfMeat 0.110 0.110

3/ The production is based on a family who raises livestock, starting with one crossbred cow and two buffalo calves.

ARAB REPUBLIC OF EGYPTEAST DELTA NEWLANDS AGRICULTRAL SERVICE PROJECT

Incremental Crop and lvestock Production oenelils and Colst

Ysar 1 2 S 4 5 8 l S 9 10 11 12 1 2 L I if iL IFi L 20 21 22 23 21 Z5

Incremental Benefit

Crops & Lvest(lnpuls) 25 9.1 261 481 71.8 953 116.7 131.1 138.9 142.4 1626 192.1 244.1 227.7 171.2 150.3 145.4 143.6 148.9 148.8 151.7 170.7 1924 236 2214

Crop & I.vesl (exten.) I/ 0.2 0.9 2.7 5 7.4 9.0 12 13.5 14 3 14.7 1.7 198 25.1 23.4 17.0 1t.5 is 14.t 15.3 15.3 15.i 17.6 19.8 24.3 22 8

Tertiary 21 3.2 9.9 13 11.1 6.8 6.5 3.3 0.9Tolal Benelit 2.7 10 32 63 92.2 1t6.2 137.5 151.1 156.5 158 179.3 211.9 269.2 251.1 188.8 165.8 160.4 158.4 164.2 164.1 167.3 188.3 2122 260.3 2442

CoslsInc. Production Cosl 2 9 8.9 23.5 35.9 45 54.3 59.? 62 82.7 62.7 02.7 62.7 62.7 62.7 62.7 62.7 62.? 02.7 62.7 62.7 62.7 62.7 62.7 62.7 62.7

Invest Cosl (livestock 7 14.5 32.5 21.8 3.5TerclaryInv,Cost 12.5 25.7 65 -206 *1tt.9 -5.1

TerciaryOper. Cost 31 .2.0 5.5 8.1 3.7 1.4 0.5 0.2 % aProlect Ilnv. & Recur. Costs 56 30 27 1.8 1.3 1.3 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 05 0.5 0.5 055 05 0o5 05

Provision of Drinking Waler 17.0 12.7 3 0 3 0 3.0 3.0 3.0 3.0 3.0 3.0 30 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 30 30 30

OlM Dralnefirrig Canal 1.2 1 2 1.2 1.2 1.2 i 2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 12 12

Total Cost 46.2 660 71.4 48.8 41.2 58.4 65.8 67.2 67.6 67.4 67.4 67.4 67.4 67.4 67.4 67.4 67.4 67.4 67.4 67.4 674 67.4 67.4 674 67.4

NetBenelil -43.5 -56.0 -39.4 14.4 51.0 57.8 71.7 e3.9 88.9 906 111.9 144.5 201.8 183.7 121.4 98.4 93.0 91.0 96.8 96.7 999 120.9 1446 1929 1768

IRR 33%It Total B. lag 3 year & Tolal C. Inc 10% 14%

It total B. Ial 20% anid total C. Increase 20% 18%

1/ It Is assumed thal 50% of Ihe targeted seltlers would comply lo Ihe extension advke and Ihetr crop arid livestock producllon would Increas by 10%.

21 Incremental benefits end costs In the case of with projecl situation is associated with the lands Is prepared for planting two years earier compared to the without projecl tHuation

3/ Ill Is assumed thai Ihe settlers woutd complete the tertiary work during the tlird year od the projecl to comply with GOE regulation and the lterlary cost Is assumed lo be the same.

In the case of both wih and without project sHuations.

Io .

- 63 - Annex 3Page 1 of 3

ARAB REPUBLIC OF EGYPTEAST DELTA NEWLANDS AGRICULTURAL SERVICES PROJECT

Environmental Assessment

Background

1. The objectives of the proposed East Delta Agricultural Services Project are to provide services tofacilitate the settlement and increased agricultural production of about 26,000 low-income families on130,000 feddans (1 feddan = 0.42 ha) of newly developed lands in the East Delta, thereby laying thefoundation for increased incomes and the development of a viable rural economy in the area.

2. The project area consists of six irrigation sub-schemes located east of the Nile Delta to the southof Lake Manzala, and west of the Suez Canal. The terrain is largely flat and low-lying. The soils arepredominantly clays, presently saline, but capable of good yields after leaching. Lake Manzala is awetland area of high biodiversity and an important fishery resource. A major drain, the Bahr El BakrDrain, transporting industrial wastewater and sewage from east Cairo and intennediate towns togetherwith irrigation drainage water, passes through the middle of the project area and discharges into LakeManzala. Farmers have been irrigating with this polluted drainage water for the last decades.

3. Before the GOE requested the assistance of IFAD and IDA, the project area was alreadyreclaimed land and most of the irrigation infrastructure was completed under a major national project,the El Salam Canal Program which began in the 1980's. Its objective is to irrigate about 600,000 feddans(250,000 ha) of new lands, of which about 220,000 feddans (90,000 ha) are in the proposed project area,west of the Suez Canal, and 400,000 feddans (168,000 ha) lie to the east of the Suez Canal in the Sinai.Social as well as irrigation infrastructure has been developed. Land reclamation under the El SalamProgram led to some losses in fisheries production and biodiversity, and some communities, such asfishermen, lost their employment.

Potential Environmental Impacts

4. The East Delta Agricultural Services Project will overall have a positive environmental andsocial impact. The provision of drinking water, credit and extension services will improve livelihoods ofexisting and future settlers and lead to better soil and water management. Environmental and socialissues directly related to the proposed project were as follows:

(i) Suspected Soil Pollution with heavy metals and toxic chemicals around the Bahr ElBaqar Drain was suggested by an earlier study;

(ii) Social services and infrastructure; drinking water supply and sanitation are at presentinadequate;

(iii) Quality and quantity of the irrigation water; land in the project area is at present irrigatedwith drainage water alone and water quality is poor: salinity is too high. Salinity of theSewer drain is 1,200 ppm, which causes soil salinization in El Matariya and consequentcrop yield reductions;

(iv) Pesticide and fertilizer use; increased agriculture in the project area will lead to increasedpesticide and fertilizer use.

Bilharzia and hepatitis B have a high incidence rate in the northem part of the project area nearLake Manzala.

- 64 - Annex 3

Page 2 of 3

Mitigation Measures

5. The EA study was completed in September 1996.

(i) Suspected Soil Pollution. The EA analyzed this problem and concluded that there wasno soil pollution in reclaimed parts of the project area and thus there were no publichealth risks by using these land for agriculture. Furthermore, water from Bahr El-Bakrdrain will not be used for irrigation under the project. Water quality in the drain, and inLake Manzala, will shortly improve considerably when sewage works under constructionin the Cairo area are completed;

(ii) Social services and infrastructure. Piped water supply is available for three sub-schemes.The project would finance a piped drinking water supply system in the two schemes ofSouth and North Hussaniya; settlers in Matarya El-Salaam, the smallest scheme, willcontinue to be served by tanker;

(iii) Quality and quantitv of irrigation water. Water in the El Salam Canal and project area isto consist of freshwater from the Nile (50%), and agricultural drainage water (50%),under the Ministry of Public Works and Water Resources (MPWWR) nationalprogramme. Under these mixing conditions water quality would be adequate. Waterquality and mixing would be closely monitored by MPWWR to maintain salinity at1,000 ppm or less; the quantity to be allocated under the national program is adequate;

(iv) Pesticide and fertilizer use. Integrated Pest Management methods would be promotedduring project implementation through the extension service and are integrated in projectdesign (the area will not be a major cotton production area). A negative list of pesticideswould be made available by the Bank which may not be purchased with credits providedthrough the World Bank. The above mentioned activities would be monitored by thePMU; and

(v) Soil and water quality would be monitored systematically. Bilharzia would be controlledthrough the regular public health programme. A special health study of the project areawould also be carried out.

Broader Impacts of El-Salam Canal Project

6. The El Salam Canal Project was not financed by the Bank or IFAD; impacts of this project,therefore, do not form part of the EA of the East Delta Agricultural Services Project.

7. The East Delta Agricultural Services project will cause neither loss of land nor loss ofemployment. The El-Salam Canal Program did cause loss of employment to certain less privilegedgroups. These comprised primarily poor fishermen on Lake Manzala. These were provided with land onthe Matariya el-Salam scheme, which is now being successfully cultivated. Other poor fishermen includethose fishing in the Bahr El Bakr drain (which is sewage water). Their living conditions will improve asa result of the El Salam Canal Program, since they are now able to fish in the Canal, whose quality ismuch better than that of the of the Bahr El Bakr drain, posing fewer environmental and health hazards.In addition, some have applied for and been provided with land. The third category of fishermenconstitutes fish laborers on fish farms reclaimed from Lake Manzala. Since this land was reclaimed overfive years ago, these people have moved to other areas or found employment as farm laborers. They tooare likely to benefit from the El Salam Canal Program, since employment per feddan on agricultural land

- 65 - Annex 3

Page 3 of 3

is considerably higher than on fishfarm land. Past reclamation of Lake Manzala caused some loss ofbiodiversity. There are no plans for further reclemation of the lake, whose water quality should improveas a result of sewage treatment project nearing completion in the Cairo area. UNDP/GEF funding is alsoavailable for pilot wetland reclamation

Environmental Monitoring

8. Soil quality monitoring will include: (i) soil salinity monitoring, (ii) monitoring of the pollutionof drain sediment, and (iii) checks on soil pollution on suspected locations that might come up duringproject implementation. Samples will be analyzed by a reliable Egyptian laboratory with controlanalyses of selected samples in an internationally recognized laboratory. It is estimated that around 30samples per year are needed during the duration of the project.

9. Monitoring of irrigation water, drainage water and groundwater would be complementary to theongoing monitoring programs of the Research Centers of the National Soil and Water Research Center.Location and number of sampling sites and samples and parameters to be monitored will be determinedduring implementation. Tentatively it is estimated that around 30 samples per year are needed (5locations for bi-monthly sampling.

10. Since health is more critical in the project area a health monitoring program will be needed. Thedetails of the health monitoring program will be defined during the health study, which will be part ofproject implementation and supervised by the PMU. A preliminary cost estimate is based on theassumption that an Egyptian health expert will need 2 person months per year to follow up on data andstatistics that are to be registered in the health centers and verification of these data in the field. Socialimpact monitoring (status of settlement, provision of drinking water) would be part of the regular projectmonitoring program.

Training

11. Staff involved in the monitoring of environmental parameters would be experienced, so that nolong term training programs are needed.

Consideration of Alternatives

12. Since project location, design of infrastructure were already fixed at the time IFAD and the Bankbecame involved, an analysis of altematives for these components was not relevant. Alternatives inwater saving techniques and in pest management are included in project design. Various altematives arebeing considered in the design and location of the drinking water schemes.

Consultation with Affected People

13. A Rapid Rural Appraisal was undertaken during project preparation. It concluded that averageincomes of the project beneficiaries are 75-80 percent of the poverty line in Egypt. During the EA aSocio-economic survey was conducted of people living in the project area and project beneficiaries.Interviews were conducted with 985 persons and in all project areas interviews have been held with keypersons in order to identify their needs and solicit their views. The socio-economic survey pinpointedproblems facing the settlers and which constitute obstacles in the way of securing a sustainable living forthem; these have been incorporated into project design. These views of the beneficiaries and affectedpeople have been included in project design.

- 66 -ANNEX 4

Page 1 of 2


Status of Implementation of Infrastructure Works

AreaProject Area (Feddan) Status of Infrastructure Works

Matariya 8,000 - An area of 5,000 is served by new pumping stationunder Pumping Stations II Project.

- Primary, secondary and tertiary canal/drain systems arecomplete.

- Drainage pumping stations complete.- No scheme for drinking water is planned so far, at

present water is supplied by tankers.

South Hussainiya 57,000 - Main infrastructure for the 35,000 feddans complete.- Tertiary Systems for graduates have been completed on

15,000 feddans. Irrigation water would beavailable in late 1997.

- Tertiary system for the investor areas is expected to becomplete by the end of 1998.

- Drainage pumping stations are complete.- Five villages with housing and other social service

buildings are complete.- Electrification of the villages is almost complete,

connections and transformers are to be completedby the end of 1997.

- Design and construction of drinking water system willbe carried out under the project, at presenzt water issupplied by tankers.

North Hussainiya 30,000 - Main infrastructure for about 20,000 feddans arecomplete except for roads, structures and some finishingworks.Irrigation water to these areas would be available afterall above works are complete in 1997/1998.

- Infrastructure for the rest of the area (10,000 feddans)will be completed by December 1998.

- Civil works for the drainage pumping stations iscomplete, the electrical and mechanical works will becomplete by the end of 1997.

- No villages have been constructed yet. Three villagesare planned and would be constructed by 1999.

- Electrification of the villages is almost complete,connections and transformers are to be completedby the end of 1997.

- Design and construction of drinking water system willbe carried out under the project, at present water issupplied by tankers.

- 67 -ANNEX 4

Page 2 of 2

South Port Said 39,450 - Main hifrastructure is substantially complete.- Tertiary system for graduate is under construction.

Irrigation water would be available in late 1997.- Tertiary system for small holders has not yet begun.

It will be completed by 2000.- Drainage Pumping stations are complete.- Two villages with housing and other social service

buildings are complete.- Electrification of the villages is almost complete,

connections and transformers are to be completed bythe end of 1996.

- Drinking water will be supplied by two compact units(one is complete and the second will be complete bylate 1997).

South Port Said Plain 57,000 - Main infrastructure for 22,000 feddans will be completedby December 1997.

- Tertiary system for the above area completed byDecember 1996. Irrigation water would be availableby late 1997.

- Drainage Pumping station will be complete by the endof 1997.

- Five villages with housing and other social servicebuildings are complete.

- Electrification of the villages is almost complete,connections and transformers completed by the endof 1997.

- Drinking water is supplied by two compact units(complete and operational).

Um El Reesh 11,500 - Main infrastructure for 11,000 feddans is complete.- Tertiary system for graduate have been substantially

completed on about 8,000 feddans. Tertiary system forthe remaining area will be completed by the end of 1997.Irrigation water would be available to the area startingearly 1997.

- Two villages with housing and social service buildingsare complete.

- Drainage Pumping station will be complete by the end of1998.

- Electrification of the villages is almost complete,connections and transformers are to be completed bythe end of 1997.

- Drinking water is supplied by two compact units(complete and operational)

- 68 -

ANNEX 5


Documents Available in Project Files

1. East Delta Newlands Agricultural Services Project: FAO/CP Formulation Report,December 1994

2. MALR, IWACO, Environmental Assessment Report (EAP) 1996

3. Working Paper on Economic and Financial Analysis

4. Working Paper on Review of Available Research and Proposals for Adaptive Research

5. Working Paper on Water Users' Associations

6. Lake Manzala - South Hussainya Agricultural Project Identification Report, FAO 1983

7. Agricultural Cooperative Assessment for Egypt, USAID, May 1990

8. Water Availability and Statement of Water Availability, MPWWR, October 8, 1996

9. Working Paper on Credit Component

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Report No.: 16097 EGTType: SAR