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Document of
The World Bank y
FOR OFFICIAL USE ONLY
Report No. 2292a-CE
SRtI LANKA
STAFF APPRAISAL REPORT
KURUNEGALA RURAL DEVELOPMENT PROJECT
March 8, 1979
South Asia Projects DepartmentAgriculture Division A
This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank autborization.
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CURRENCY EQUIVALENTS
US$1 = Rs 15.5Rs 1 = US$0.065Rs 1 million = US$64,516
WEIGHTS AND MEASURES
1 long ton = 2,240 lb = 1.016 metric tons
1 hundredweight (cwt)= 50.8 kg = 112 lb
1 bushel (bu) of paddy - 45 lbl pint = 0.57 liters1 acre (ac) = 0.405 hectare (ha)1 mile (mi) = 1.609 kilometers (km)1 square mile (sq mi) = 640 ac (259 ha)1 foot (ft) = 30.5 centimeters (cm)1 chain ' 66 ft.
PRINCIPAL ABBREVIATIONS AND ACRONYMS USED
ADA - Agricultural Development AuthorityADB - Asian Development BankARTI - Agrarian Research and Training InstituteASD - Agrarian Services DepartmentBC - Bank of Ceylon
CB - Central Bank
CCB - Coconut Cultivation BoardCEB - Ceylon Electricity BoardCFC - Ceylon Fertilizer CorporationCRI - Coconut Research InstituteDA - Department of AgricultureDAPH - Department of Animal Production and HealthGOSL - Government of Sri LankaGPS - Guaranteed Price Scheme
ICB - International Competitive BiddingID - Irrigation Department
IRRI - International Rice Research InstituteLS - Lump Sum
M - MillionMADR - Ministry of Agricultural Development and ResearchMPC - Multi-Purpose CooperativesO&M - Operation and MaintenancePB - People's Bank
PMB - Paddy Marketing BoardPS - Prudent Shopping
FOR OFFICIAL USE ONLY
FREQUENTLY USEI) ABBREVIATIONS FOR OFFICERS
AGA - Assistant Government AgentAl - Agricultural InstructorA', - Agricultural Officer
CDO - Coconut Development OfficerDAEO - District Agricultural Extension OfficerGA - Government Agent
KVS - Village Level Worker (Krushikarma Viyaptha Sevaka)Pb - Project DirectorSMS - Subject Matter SpecialistT: - Techni-al Assistant
GLOSSARY
anicut - diversion schemeasweddutpized - leveled and bunded land suitable for impounding
water. By tradition, this is usedinterchangeably with paddy land.
ayurvedic - indigenous system of medicine.chena - slash and burn or "shifting" agriculturedistrict - the principal administrative unit in the country.
'here are 24 districts in Sri Lanka.kurakkan - ringer millet:maha - northeast monsoon season (October to January)mammoty - hand hoe
manioc - cassava, the plant from which tapioca is madepaddy - unhusked rice
tank - reservoir for local rainwater storageyala - southwest monsoon season (March to June)
FISCAL YEAR
January 1 - December 31
This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
STAFF APPRAISAL REPORT
Table of Contents
Page No.
I. SECTORAL BACKGROUND .................................... LGeneral ........................................... LRole of Agriculture in the Economy. 2
Performance and Problems ........................... 2Objectives and Strategy for the Future. 3Integrated District Developmient Programs ..Bank Group Support to Agrictlture. 5
II. THE PROJECT AREA .Location and Demography .5Climate and Physiograph .. . .
A. Climate ..B. Topography ancd Soils .6C. Water Resources ard Drainage. 7
Agricultural Production . .8A. Land Use. 8B. Farm Size and Land Tenure. 9
C. Farming Practices, Yields and Production 10
Agricultural Supporting Services . .12A. Research and Extersion .12B. Farm Input Supplies .14C. Agricultural Credit ......... . ......... 15D. Marketing and Processing .16E. Coordination of Irput Supplies. 17
Social Infrastructure and Living Standards 17A. Transport and Comnunications. 17B. Electrification. 13C. Water Supply. 13D. Health Facilities .19E. Educational Facilities .19
This report is based on the findings of an IDA mission which visitedSri Lanka in March/April 1978, and incLuded Messrs. P. Garg, P.N. Gupta andS.Z. Husain (IDA); and Ng Siew Kee, Z. Matmor, and H. Vieilhescaze (Consu'Ltants).A follow-up mission composed of Messrs P. Garg and P.N. Gupta visited SriLanka in August 1978.
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Table of Contents (Cont'd.)
Page No.
III. THE PROJECT .. 20
Objectives and Approach . . .20
Detailed Features. .......................... 21
A. Irrigation and[ Water Management 21
B. Coconut Develu)pment .24
C. Agricultural Extension .26
D. Agricultural Input Supplies .27
E. Agricultural Credit .27
F. Livestock. .......................... 30
G. Groundwater E::ploration .30
H. Rural Roads . 31
I. Rural Water Supply .31J. Rural Electrification .32
K. Health . 32
L. Education . 33
M. Project Coord:nation and
Investigations .33
IV. PROJECT COSTS, FINANCING AND PROCUREMENT .34
Cost Estimates and Schedule of Expenditures 34
Financing .......................... 37
Procurement .......................... 37
Disbursements .38Accounts and Audits .40
V. PROJECT IMPLEMENTATION AND OPERATION .40
Implementation Responsiriility .40
Coordination and Manageaient .42Implementation Schedule .44Monitoring and Evaluation .45
Technical Assistance .46
Operation and Maintenance .47
VI. PRODUCTION, MARKETING AND FINANCIAL ASPECTS .48
Cropping Intensities, Yieldsand Production .48
Market Prospects and Prices .50
Farm Incomes .51
Cost Recovery .53Impact on the Government Budget .54
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Table of Contents (Cont'd.)
Page No.
VII. BENEFITS AND JUSTIFICATION ............................ 54
General ................................. ......... 54Production and Balance of Payments ............. .. 55
Employment .............................. .......... 55
Social Infrastructure ............................ 55Distributive Impact ... ........................ . 56
Environmental Impact ..... ........... . ...... ......... . 56
Economic Rate of Return ..... ..................... 56
Sensitivity and Risks .............. 58
Project Replicability ..... ...........o............ 59
VIII. AGREEMENTS REACHED AND RECOMMENDATIONS ................ 60
ANNEXES
Annex I - Project Are.a DetailsAnnex 2 - Detailed Cost EstimatEsAnnex 3 - Financial and Economic AnalysesAnnex 4 - Related Documents and Background Papers
CHARTS
WB 20053 - Proposed Project OrgarizationWB 20054/55 - Implementation Schedule
MAPS
WB 13943R - Physical Features and Land UseWB 13944 - Social InfrastructureWB 13945 - Major Irrigation Works and Rural ElectrificationWB 13946R - Proposed Transport Network
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
STAFF APE'RAISAL REPORT
I. SECTORAL BACKGROUND
General
1.01 The island nation of Sri Lanka occupies about 25,300 sq mi (16.2 Mac) and has an estimated population of 14.5 M or a population density of about570 per sq mi. The population is growing at a moderate 1.6% per annum. Theaverage per capita income level is low -- about US$200 in 1978 and has grownonly by about 1% per year over the past two decades. About 40% of the popula-tion is estimated to have annual income levels below the "official" povertylevel of about US$50 per capita. 1/ However, because of the considerableprogress made by Sri Lanka in satisfying many of the basic needs of its popu-lation through a relatively well developed social infrastructure as well asthe food subsidy program for the poor, poverty in Sri Lanka does not takethe extreme form found in neighboring South Asian countries.
1.02 About three-quarters of Sri Lanka's population live in rural areas.Although the proportion of urban population has increased steadily from about12% in 1901 to the current 23%, much of the increase has been due to the growthand reclassification of small rural towns into urban areas. The influx ofrural population into major urban metropolitan areas has been rather modestand this can be largely attributed to the:
(a) relatively low and steadily narrowing rural-urban incomedifferentials;
(b) low incidence of rural landlessness;
(c) well dispersed social infrastructure such as health, educq-tion and transport facilities; and
(d) uniform application of the various food subsidy programs toboth the rural and urban population.
Because of the relatively slow growth of the major metropolitan areas, SriLanka has largely avoided the problems of urban congestion and decay, typicalin many other developing countries.
1.03 Based on the rainfall pattern, the island can be divided into twodistinct zones: the wet zone (average annual rainfall of 75-200 inches) in
1/ Based on the cutoff level used in determining eligibility for subsidizedfood rations.
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the southwest quadrant, and the dry zone (average annual rainfall 35-75 inches)covering the rest of the island. A narrow transition band between the dryand the wet zone is sometimes characterized as the third climatic zone, theintermediate zone. 1/ About three-quarters of the population reside in thewet zone, giving it an average population density of about 1,800 per sq micompared to only 200 per sq mi in the dry zone. Until about 1950, much of thegrowth took place in the wet zone. Since then, however, successive govern-ments have heavily emphasized the development and settlement of the dry zone.As a result, during the past few decades the growth rate in the dry zone hasfar exceeded that for the wet zone. This trend is likely to continue forthe foreseeable future.
Role of Agriculture in the Economy
1.04 Agriculture plays a major role in Sri Lanka's economy, accounting
for about one-third of the Gross Domestic Product, over one-half of totalemployment, about 80% of export earnings and a large share of public revenues.Much of the activity in manufacturing, transport and the service sectors also
relates to either supply of inputs to agriculture or processing of agricul-tural produce. In the rural areas, the dependence on agriculture is almosttotal with over 95% of the rural population involved in agriculture, directlyor indirectly.
1.05 Sri Lanka's climate is suitable for year-round cultivation. Thevariations in precipitation, topography and soils make it possible to grow awide range of crops including tea, rubber, coconuts, paddy, tubers and roots,coarse grains, pulses, vegetables and fruits. Out of some 5.5 M ac underpermanent cultivation, 1.6 M ac are under paddy, 1.2 M ac under coconut,0.6 M ac under tea, 0.5 M ac under rubber, 0.1 M ac under other perennialcrops and the remaining 1.5 M ac under mixed rainfed farming, mostly as smallgardens around homesteads. In addition, about 2.5 M ac are under slash andburn type shifting agriculture locally known as chena cultivation. Typically,only about one-fifth of the chena land is cultivated in any year. Wheresufficient water is available, it is common practice to produce two or morecrops a year. The cropping intensity on paddy lands ranges from about 175%in the wet zone to about 110% in the dry zone, the average for the wholecountry being about 130%.
1.06 Tea and rubber are primarily export crops providing about 60% oftotal export earnings and through export taxes and duties, about 40% ofGovernment revenues. Coconut is also exported although only as a residual,
after satisfying the quite substantial domestic demand for the various
coconut products. Paddy and most other food crops are grown solely fordomestic consumption.
Performance and Problems
1.07 The agricultural performance over the past two decades has been
rather mixed. There have been modest increases in production and employment
1/ The Kurunegala District, the proposed project area, mostly falls with-in this transition zone.
and some progress has been made towards food self-sufficiency. The sectorhas, however, been unable either to provide a major stimulus to the rest ofthe economy or to make any significant dent in the chronic unemploymentproblem faced by Sri Lanka.
1.08 During the 1960s, agricultural production grew at an annual rate of3.4% with a relatively good growth in paddy (6%) and rubber (5%), but a meager1% growth in tea and coconut. The increased paddy production enabled sub-stantial progress towards food self-sufficiency -- from about 50% in 1960to about 80% in 1970. However, despite this, the net surplus (in currentprices) on trading of agricultural commodities declined from about US$200 M in1960 to only US$120 M in 1970 due to stagnation in tea and coconut productionas well as adverse price trends in externaL markets. Performance in the 1970shas been much worse. Except for subsidiary food crops and minor export cropssuch as spices, production virtually stagnated or even declined. Paddy pro-duction in 197, for example, was only 5% above the level achieved in 1970.For tea, rubbEr and coconut, production remained below the levels attainedin 1970.
1.09 The generally poor weather condi:ions experienced during the 1970sare partially responsible for this inadequate performance. Mostly, houever,the reasons are related to sectoral strateg,ies and policies over the past twodecades. The policy of import substitutioln has been partially successful, butincreased fooc. self-sufficiency has come a: the cost of a severe neglect ofthe rest of the sector, particularly plantation crops. Sectoral develcpmenthas also suffEred from: (a) the inability to mobilize adequate investaentresources for agriculture; (b) emphasis on costlier but more "visible" exten-sive developmEnt, neglecting the more intenisive use of resources alreadydeveloped; (c) inadequate attention to operation and maintenance, which neces-sitated frequent and costly rehabilitation; (d) ineffective and demoralizedagricultural supporting services due to in3titutional uncertainties as wellas excessive political interference; (e) iaadequate planning for disposal andproper management of lands acquired under Land reform; and (f) a systen. ofcontrols, subsidies and taxes which discouraged private initiative and invest-ment.
Objectives ancL Strategy for the Future
1.10 GOSI. recognizes the pivotal role of agriculture in stimulatir.geconomic growt:h and rural development in Sri Lanka. It is also aware of theconstraints imposed upon growth by past policies and programs. The majorobjectives of GOSL's medium-term plans and programs for agriculture are to:
(a) increase agricultural employment as well as improveincome levels, particularly for the economically dis-advantaged groups;
(b) increase self-sufficiency in basic food items such aspaddy, milk, sugar, fish and pulses so as to improvenutritional standards and to insulate the economy fromexcessive fluctuations in external markets; and
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(c) expand export earnings both from traditional agricul-tural exports and from "non-traditional" items suchas cocoa, coffee, pepper and spices.
1.11 The Government strategy for achieving these objectives emphasizesbetter utilization of the existing potential through institutional and policy
improvements as well as rehabilitation of the production base, where necessary.Among policies and programs being given high priority by GOSL are: establish-ment of appropriate price incentives for producers; strengthening of agricul-tural supporting services such as research and extension, credit, iarm powersupply, and fertilizer distribution; improved irrigation water management;improved nianagement of state controlled lands; stepped up programs for rehab-ilitation of the plantation crops; and improvements in living conditions ofplantation labor. Through these measures, the Government hopes to step up theagricultural growth rate to 4.5% per annum over the next five years. Withadequate attention to implementation problems, this is an attainable target.For the longer-term needs of the economy, the Government is also emphasizingfurther expansion of irrigated agriculture in the dry zone through accelerateddevelopmenit of the Mahaweli River basin.
Integrated District Development Programs
1.12 To encourage grassroot participation and to reduce implementationproblems at the field level, GOSL is encouraging decentralization of planning,monitoring and coordination. In line with this approach, it has recentlyestablished a District Ministerial system and appointed a Minister to eachof the 24 districts in Sri Lanka. The District Ministers, ex officio DeputyMinisters to all the development-oriented Ministries in Sri Lanka, wouldoversee and coordinate the planning and implementation of all developmentalprograms 1/ in their respective districts. Overall national priorities andpolicy guidelines would be established at the Colombo level. Technical guid-ance and supervision for the field staff of various agencies and departmentswould also be from the respective Headquarters in Colombo. As the DistrictMinister set-up has just been started, many of the detailed working proceduresare still to be worked out, and it would be some time before it is fullyoperational.
1.13 The decentralization program clearly holds the potential for quickresolution of implementation bottlenecks as well as for making developmentplans more responsive to local needs and resources. The extent to which thispotential would be realized in practice would depend largely upon: (a) theability to avoid partisan political considerations in resource allocationat the local level; (b) development of harmonious relationship between lineMinistries in Colombo and the District Ministers; (c) the strengthening ofplanning and monitoring capabilities at the district level; and (d) thepreparation of sound technical criteria and policy guidelines for use inthe formulation of district plans.
1/ Projects and programs which are of national importance (e.g. the Mahaweliprogram) would, however, continue to be handled at the central level.
1.14 To give an operational corLtent to the decentralization program, the
Government is proposing to undertake a number of Integrated District Develop-
ment Projects. Each of the districts is to be surveyed and studied and a dev-elopment plan is to be prepared taking into consideration the leading sectorsand activities that need investment support to promote a balanced and accel-
erated growth. The district projects are to emphasize low-cost, quick--yielding,labor-intensive investments aimed at better utilization of the existing poten-
tial by relaxing critical bottlenecks and constraints. The main advantages ofthe district projects would be: (a), increased responsiveness of developmentalefforts to local needs and priorities; (b) promotion of balanced regionial
development by enabling resources to be channeled into non-Mahaweli areas; and(c) an opportunity for balancing high-capital intensity and long-gestation of
most other developmental programs of GOSL.
1.15 The proposed project for the Kurunegala District would be thefirst attempt by Sri Lanka to develop an entire district in an integratedmanner. It is expected that over the next decade most districts in SrL Lankawould be covered by similar projects. Proposals for development of two otherdistricts, Hambantota and Matara are under preparation with assistance fromNorway and Sweden, respectively. The proposed Kurunegala project would also
include support for preparation of similar projects for four other districtsfor possible financing by external agencies. The four proposals are expectedto be ready by June 1980.
Bank Group Support to Agriculture
1.16 During the last several years, Bank Group lending to Sri Lanka has
heavily emphasized agriculture and rural development. Since 1968, a total of
nine projects have been financed in this sector including: Lift Irrigation
(Cr. 121-CE, US$2.0 M); Drainage and Reclamation (Cr. 168-CE, US$2.5 MI);Mahaweli Ganga Development I (Ln. 653-CE, US$14.5 M and Cr. 174-CE, US$14.5
M); Dairy Development (Cr. 504-CE, UJS$9.0 M); Agricultural Development Project(Cr. 595-CE, US$25.0 M); Tank Irrigation Modernization (Cr. 666-CE, US$5.0 M);Mahaweli Ganga Development II (Cr. 701-CE, US$19.0 M); Tea Rehabilitation(Cr. 818-CE, US$21.0 M) and Tree Crop Diversification (Cr. 819-CE, US$4.5 M).The first three of these projects have been successfully completed. Theothers are progressing satisfactorily, although due to large scale emigrationof skilled manpower to the Middle East and Africa during the past few years,manpower availability is beginning to be a constraint.
II. THE PROJECT AREA
Location and Domography
2.01 The proposed project would cover the entire administrative district
of Kurunegala, one of the 24 districts in Sri Lanka. The district, locatedin the western part of the country, has a land area of about 1,850 sq iiand an estimated population of 1.15 M. Kurunegala town, the district hnead-quarters, is about 60 mi north of Colombo, the national capital (Map 13943R).
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Kurunegala is the third largest district in the country, accounting for about7% of the total area and 8% of the population. The district is predominantlyrural; according to the 1971 Population Census, 96% of the population wasrural compared to about 78% nationally. Kurunegala town with a population ofabout 27,000 is the principal urban center in the district. All other townsin the district have a population under 6,000. Average population density isabout 620 per sq mi. The density varies considerably within the district --from less than 400 in the northern parts to over 1,000 per sq mi in thesoutheast.
2.02 Since the early 1950s, the district has had a net outmigration toother districts of about 2% per decade, a result of the gradual populationshift towards the dry zone as well as increasingly limited scope for openingup of new areas within the district. The total labor force is estimated atabout 450,000. According to the 1971 Census, the unemployment rate in Kurune-gala was about 14%, somewhat lower than the national average of 19% but con-siderably higher than 5-10% found in most dry zone districts. About two-thirdsof employment is in the agriculture sector; manufacturing and mining accountedfor about 10%; construction about 2% and the service sector for the rest. Aselsewhere in the country, health and educational standards are generally quitehigh; the literacy rate is over 85% and life expectancy is about 68 years.
Climate and Physiography
A. Climate
2.03 The climate in the project area is tropical with only slight varia-tions in temperatures but heavy, variable rainfall (Annex 1, Table 1). Annualprecipitation follows a distinctly bi-modal pattern, particularly in the south-ern part. The northeast monsoon (maha season) brings rainfall to the wholedistrict during October-December. The southwest monsoon (yala season) bringsrainfall mostly to the southern part during March to June.
2.04 On the basis of precipitation, the district can be divided intofour distinct zones: dry, semi-dry, semi-wet, and wet zones (Map 13943) withmean annual rainfall of below 60, 60-75, 75-90 and over 90 inches, respectively.The intermediate zones (semi-dry and semi-wet) cover about 70% of the district,the dry zone covers about 20%, and the wet zone about 10%. The total amountas well as distribution of rainfall varies considerably from year to year.Frequently, rainfall occurs in the form of high intensity storms, resulting inlimited soil storage and excessive run off. Run off estimates indicate thatonly about 60% of the rainfall received is effective. Probability data indi-cate that rainfall is generally adequate for rainfed crop production duringthe maha season in all parts of the district. During the yala season, rainfedpaddy production is feasible in the wet and semi-wet zones but at considerablerisk. The total rainfall in semi-dry and dry zones is inadequate for theeconomical cultivation of coconut.
B. Topography and Soils
2.05 The topography slopes gently downward from south to north and towardsthe coastal plain. Except in areas adjoining Kandy and Matale Districts, the
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elevation ranges from about 50-2,000 ft above mean sea level. In addition to
the general slope, there are local urLdulations in surface relief related. to
the stream patterns in the district.
2.06 Soils in the district vary considerably as regards texture and
drainability. The texture varies from moderately fine (reddish brown earths
and low humic gleys) to coarse (regosols), and drainability from poor (low
humic gleys) to well drained (reddish brown earths). The soils have a shallow
profile, mostly varying in depth from about 2-5 ft. The PH values indicate
that most soils in the district are slightly acidic to neutral. All the soils
are low in nutrients and fertilizing is essential for good crop yields. The
combination of the various soil textures and drainage characteristics with
different rainfall patterns makes it possible to grow a wide range of cr'ops
in the district.
C. Water Resources and Drainage
2.07 The drainage pattern of the district is predominantly from south
to north and east to west, with most streams originating from the central hills
of the island and flowing towards the western coast. The major streams flowing
through the district are: Karambalan Oya, Maha Oya, Deduru Oya and Mi Oya.
Most of these streams are perennial, although with large variation in flows
from month to month. The streams generally feed either major irrigation tanks
or diversion schemes. Recently, two lift irrigation schemes serving a total
estimated area of 1,000 ac have been constructed on Maha Oya. Reliable data
on stream flows is unavailable and hence, it is difficult to make any defini-
tive judgment about the potential for further irrigation development from
these streams. Clearly, however, thiere is scope for some additional lift
irrigation schemes, particularly for supplementary yala irrigation in the
intermediate zone. For longer term lplanning and development, it is essential
to initiate systematic monitoring of the various stream flows.
2.08 Because of relatively high rainfall and run offs, conditions are
favorable for surface water storage for irrigation during dry periods. This
potential was recognized from the earliest times and numerous tanks, big and
small, were constructed. With the passage of time, most of these fell into
disuse until restoration during the past few decades. Currently, there are
nine major operating tanks in the district with service areas ranging from
about 800 to 5,000 ac (Map 13945 and Annex 1, Table 2). The total service
area for the nine tanks is estimated at about 25,000 ac. There are also about
3,000 village tanks and 600 village anicuts (diversion schemes) with a poten-
tial service area of about 95,000 ac. However, due to inadequate maintenance,
many of the village irrigation schemes are in poor condition and actual
service areas are considerably below the potential. Currently, the total
service area under the village schemes is estimated at about 70,000 ac.
2.09 As in the rest of the country, poor management practices are the
most serious constraint to the effective use of irrigation facilities. Largc
amounts of water are wasted because of excessive surface run off, improper
channel distribution systems, excessive seepage, insufficient control of water
issues, improper operation of sluice gates, over application of irrigation
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water and delayed and staggering planting leading to poor utilization of
rainfall. Currently, average water duty in irrigated areas is estimated
at about 5 ac-ft per ac for maha paddy and 7 ac-ft per ac for yala. With
rehabilitation of the conveyance systems and adoption of improved water man-
agement practices, these duties could be reduced by as much as one-third (Annex
1, Table 3). GOSL is aware of the potential for increased production through
better management of water resources. Recent policy decisions place heavy
emphasis on improved irrigation water management and provide an encouraging
setting for action in this crucial area.
2.10 The hydrogeological conditions and groundwater resources in the
district are yet mostly unexplored. However, as most of the district is
underlain by crystalline rock, prospects of economically exploitable ground-
water are likely to be limited. Some 30 test wells have been drilled in the
district over the past few years and a total of ten shallow tubewells with low
yields are in testing operations. The investigations have been limited due to
the lack of suitable equipment for drilling in crystalline rock. The existence
of some 85,000 village wells (some of them inoperative) indicates the presence
of localized groundwater resources with constituting aquifers in unconsolidated
sediments and fractures, joints and other openings in weathered parts of the
crystalline rocks. Further exploration is required for identification of
areas with groundwater potential.
2.11 Practically the entire district is free from deep or prolonged
flooding and there are no severe drainage problems.
Agricultural Production
A. Land Use
2.12 Out of the total land area of some 1.2 M ac, about 0.6 M ac are
under permanent cultivation, 0.1 M are forests, 0.1 M ac are under non-
agricultural uses such as settlements, roads and water bodies and the rest
are under chena cultivation. Coconut and paddy are the two most important
crops covering about 380,000 ac and 170,000 ac, respectively. For both
coconut and paddy, Kurunegala has the highest acreage among all the districts
in Sri Lanka, accounting for about 35% and 13% of the respective crop acreages
in Sri Lanka. Rubber is cultivated on some 15,000 ac. Mixed rainfed farming
(mostly as small gardens around homesteads) including fruits, vegetables,
spices and pulses accounts for the remaining 35,000 ac under permanent cul-
tivation. The cropped area and the crop mix under chena cultivation vary from
year to year according to climatic and market conditions. Data on land use
under chena cultivation is hard to obtain and notoriously unreliable. On a
crude basis, an average of about 100,000 ac are cropped under chena farming
each year, the main crops being: manioc and tubers, 50,000 ac; kurakkan and
other coarse grains, 20,000 ac; vegetables, 15,000 ac; and pulses, 15,000 ac.
Most of the coconut and rubber land is in the southern part of the district
with a wet/semi-wet climate; paddy land is distributed fairly evenly in the
district while chena cultivation is mostly practiced in the less-densely
populated northern part with a dry/semi-dry climate.
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B. Farm Size and Land Tenure
2.13 Reliable and consistent data on farm sizes and land tenure inKurunegala district are lacking due to: (a) fragmentary nature of most pastsurveys; (b) complexity of land use and tenurial practices; and (c) changesdue to land reform during 1972-75.
2.14 According to the 1973 Census of Agriculture, there were about172,000 operational agricultural holdings in Kurunegala, including about 300estates of 20 ac or more with ten or more resident employees. The averageoperational holding size was about 4 ac comlpared to about 2.5 ac in Sri Lankaas a whole. The estimated farm size distribution is summarized below:
Table 2.1: FARM SIZE DISTRIBUTION
OperationalHoldingSize Number % of Total Area % of Total(ac) '000) ('000 ac)
0 - 1 42 24 20 31 - 3 69 40 116 173 - 10 52 30 252 3810- 20 5 3 66 1020+ 4 2 213 32
Total 172 100 667 100
Due to the break-up of the 50+ ac holdings during the 1972-75 land reform, thecurrent farm size distribution is likely to be considerably less skewed thanthat indicated above. Also, larger holdings mostly consist of coconut planta-tions while smtaller holdings contain mostly asweddumized land. Because of thegenerally lower income levels on coconut lands as compared to asweddumizedlands, the skewness, adjusted for land productivity, would be even smaller.
2.15 Abott 88% of all the holdings ars privately owned, 9% are owned bythe Government and the rest belong to reli;ious and other institutions. Avariety of larnd tenure patterns prevail in the district; about half the hold-ings are ownect singly, 10% owned jointly, 15% held as grants or leases on theGovernment owELed (crown) lands, and the re3t as encroachments and other formsof tenure. Most holdings comprise 3-4 par^els, often under different tenurialarrangements. It is estimated that about 60% of the farm families in the dis-trict are owner-cultivators, 30% owner-cultivator cum tenants and the lest puretenants. Typical tenancy arrangements involve paying the landowner 25-50% ofthe produce with the landowner supplying some of the cash inputs. The tenurialconditions and rental rates are governed by the Agricultural Lands Law of 1973.
2.16 Target Groups. Minimum holding sizes required to provide subsistencelevel incomes (US$50, para 1.01) vary considerahly with the land productivityand tenurial arrangements, as well as earnings 'rom off-farm employment. Inmost cases, however, a 3 ac holding can adequately support a family of 5-6people. On this basis, about two-thirds of the farm families in the districtare currently below the poverty level.
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C. Farming Practices, Yields and Production
2.17 Coconut. According to a 1977 survey of coconut holders in Kurunegala
District, about 80% of the palms lie within the productive age group of 7-60
years; about 10% of the palms are above 60 years old, mostly senile and requir-
ing replanting; and the rest are immature as underplantings. Only about 5% of
the coconut area was interplanted with other crops, primarily pastures, coffee,
pepper and pineapple. The planting material is almost exclusively local tall
(Typica variety) selections. The estimated mean palm stand of 69 per ac is
higher than the recommended 64 per ac. Weed control is not a serious problem
except in the 10-25 ac holdings with absentee owners. Overall, only about 5%
of coconut holders reported fertilizer use in 1977, although the proportion of
users on larger holdings (over 25 ac) was much higher at about 25%. Due to
inadequate fertilizer application, particularly during the past 3-4 years, the
palms show widespread symptoms of malnutrition and a large scale fertilizer
program is urgently needed. Contour drains to minimize soil loss and retain
soil moisture are practiced only on about 10% of the holdings. In some low-
lying areas on slope bottoms, waterlogging due to inadequate field drainage
is also a problem. In underplanted smallholdings, very often the low yielding
senile palms are retained well beyond the recommended fifth year of under
planting, and the consequent overshading by the taller palms retards the growth
of the young palms. Pests and disease infestation of mature palms is not a
serious problem in the district. Although over one-third of the coconut acre-
age is suitable for intercropping, less than 5% are intercropped at present.
2.18 Reliable data on coconut yield and production levels is unavailable.
According to the 1977 survey, the yield averaged about 1,250 nuts per ac,
a sharp decline from the reported yield of about 1,700 nuts per ac in 1975 --
mostly due to adverse weather conditions and reduced fertilizer application.
The survey also showed significant yield variation by holding size -- varying
(in 1977) from about 900 nuts per ac in holdings below 3 ac to over 1,300 nuts
for holdings above 25 ac, largely reflecting better management levels in the
bigger holdings. Even the 1975 yield level is less than half the genetic
yield potential of the existing plantations in the district indicating consider-
able scope for increasing productivity by increased use of fertilizer as well
as better management practices. On the basis of reported 1975 yield levels,
the total district production in a normal year would be about 030 M nuts.
2.19 Paddy. Of the total asweddumized 1/ paddy area of 170,000 ac, about
25,000 ac are under major irrigation schemes, 70,000 ac under minor irrigation
schemes, and the rest under rainfed cultivation. Most of the rainfed paddy
area is in the southern part with a wetter climate. Typically, about 90% of
the asweddumized land is cultivated during the maha season and 50% during the
yala season. Sowing of the maha crop starts in October/November. Except for
tillage, cultivation is mostly carried out by manual labor. Because of inade-
quate farm power for land preparation (para 2.33) and the priority given to
chena cultivation, maha sowing is often extended into late January thus wasting
most of the maha rainfall. The crop is harvested between February and April.
1/ Leveled and bunded land suitable for impounding water.
- :11 -
Subject to water availability in the tanks, yala paddy is broadcast during
March/April for harvest in June/July. In southern parts of the district, some
rainfed yala cultivation is also praclticed. However, it is highly risky due
to the erratic rainfall pattern. Presently, paddy is mostly broadcast, al-
though transplanting and row seeding are becoming more popular. According
to a crop cutting survey during maha 1976/77, about three-quarters of farmers
in Kurunegala were using improved varieties of paddy and about two-thirds were
using fertilizer although only half of them at recommended levels.
2.20 During 1977, climatically a "good" year, average paddy yields were
about 50 bushels (1 ton) per ac 1/ during the maha season and 42 bushels
(0.85 tons) per ac during the yala season. In both cases, they were about
5% below the national average. Ten other districts had yields higher than
those in Kurunegala with six outperforming the District by 30% or more, indi-
cating a vast potential for improvement over present levels. Total paddY
production was estimated at about 6.3 M bus;hels (128,000 tons) during the
maha and 4.0 M bushels (82,000 tons) during the yala or a total annual pro-
duction of 10.3 M bushels (210,000 tons). The district production accounted
for about 11% of national production during maha, 16% during yala and 13%
overall. In a "normal" year, paddy production would be about 20% lower. The
trends in paddy area, yields and production levels for Kurunegala are detailed
in Annex 1, Table 4.
2.21 Chena Cultivation. Chena agriculture is practiced in nearly all
jungle areas. Clearing and land preparation commences in June or July and is
normally completed by August. This is followed by burning. Sowing and plant-
ing on chena land commences with the maha rains towards the end of September
and extends to the end of November. Cereals (kurakkan and maize) are normally
planted first, followed by chillies and vegetables. Roots and tubers (manioc
and potatoes) and pulses (green grams and cow peas) are planted last. Crop
husbandry standards are generally low and the main inputs are labor and seeds.
Most farmers perceive chena as a hedge against total or partial failure of the
paddy crop. For this reason, only when the chena crops are secured do tlne
farmers transfer attention to paddy lands resulting in delayed maha planting
and consequent waste of rainfall. This attitude, often quite rational from
the view point of a small farmer given unreliable irrigation supplies due to
poorly maintained and operated irrigation schemes, is a major constraint to
better use of land and water resources in the district. Traditionally, chena
land was cropped once every 20-25 years. With increasing population pressure,
the fallow period is now much shorter (about 4-5 years). The shortened cycle
has serious implications for the long run productivity of the land. There
is clearly a need for developing viable settled systems of rainfed farmingto replace chena cultivation.
2.22 Data on yields and production levels of the chena crops is extremely
limited and often contradictory, partly because of the complex nature of chena
cultivation, often involving a mixture of as many as five crops in the same
1/ On net harvested area basis. By definition, 85% of the gross harvested
area is taken as the net harvested area.
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plot. Because of poor management standards, yields are believed to be gener-
ally low. Average per ac yields are estimated at: 4 cwt (0.2 tons) forkurakkan and maize; 80 cwt (4 tons) for manioc and sweet potatoes; 5 cwt(0.25 tons) for pulses such as cowpeas and green gram; and 4 cwt (0.2 tons)for chillies. The average annual production of some of the main chena crops
over the past two years is reported to be as follows: manioc, 180,000 tons;
potatoes and yams, 35,000 tons; cowpeas and other pulses, 8,000 tons; oil-seeds, 2,000 tons; kurakkan and other coarse grains, 3,000 tons; and chillies,1,500 tons. The reported acreage, yield and production trends are detailedin Annex 1, Table 5.
Agricultural Supporting Services
A. Research and Extension
2.23 Research. The National Rice Breeding Center (Batalagoda) and theCoconut Research Institute (Lunwila) are located within the district. Twoother important institutes, the Dry Zone Research Station (Maha Illupalama)and the Minor Export Crops Research Station (Matale), are both less than 50 miaway from the district.
2.24 Sri Lanka has had a good rice breeding program. During the 1960s,
the "H" series of locally bred varieties replaced most of the traditionalvarieties. Subsequently, Sri Lanka has successfully incorporated IRRI strainsto produce varieties suitable to its own conditions. At Maha Illupallama,considerable progress has been made in introducing and developing new varie-ties of chillies, green gram, black gram, pigeon peas (dhal) and cowpeas.Pioneering field research is also underway on increasing productivity oflands under irrigation schemes through improved cropping systems and irriga-tion water management as well as on stabilized rainfed farming syst;ems forreplacing chena cultivation. The Coconut Research Institute has recentlyreleased f'or commercial planting new high yielding hybrids which come into
bearing in. the fifth year and have a yLeld potential of over 6,000 nuts perac. However, the new hybrids require more exacting climatic and scil con-ditions and thus are not suited to all coconut growing areas in Sri Lanka.
2.25 Extension. Presently, several different agencies are responsiblefor extension work in the district, the principal ones being: the Departmentof Agriculture (DA); the Coconut Cultivation Board (CCB); the Land Commis-sioner's Department, the Department of Minor Export Crops (DMEC); and the newlyestablished Department of Animal Production and Health (DAPH). Among these,DA through its extension Division has by far the heaviest involvement. TheDivision is headed by a Deputy Director whose professional staff consists often senior Subject Matter Specialists (SMSs) for cereals, pulses, tobacco,
plant protection, horticulture and seed certification and production. Thefield operations are controlled by a District Agricultural Extension Officer(DAEO) in each of the 24 districts. The district level staff includes districtSMSs who are usually agricultural diploma holders and who by training or experi-ence have specialized in certain subjects. The middle level staff consistsof Agricultural Instructors (AIs), who are also agricultural diploma holders.Each AI is assisted by a number of village level workers (KVS) who have takenone year training in the Practical Farm Schools. The number of KVSs per Al
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varies with the area of the range covered by the AI and its production
potential.
2.26 The Kurunegala District includes the following extension staff at
present: one DAEO; one additional DAEO; ten SMSs; 48 AIs; and 175 KVSs.
Only 135 KVSs are involved in extension work, the rest being responsible for
the sale of seed and planting material as well as accounting. The staff is
responsible for the agricultural extension activities of some 165,000 farm
families, i.e., about 1,200 farm families per KVS.
2.27 Extension activities are technically backstopped by: (a) the
Batalagoda Rice Research Center; (b) the Research Division of the Agriculture
Department, Peradeniya; and (c) the Maha Illuppalama Research Station. Con-
tacts with research institutions are mostly informal and of an irregular nature.
In-service tra:.ning is provided by the Training Institute at Peradeniya and
the Maha Illuppalama Research Station. The district office has one old jeep
which is in poor working condition. Out of the 48 AIs, only 11 have motor-
cycles; most KVSs do not have any transportation.
2.28 Extension work on coconut lands is the function of the CoconutCultivation Board (CCB). Field operations are spread over seven regions,
two of which --- Kurunegala and Kuliyapitiya -- are in the Kurunegala District.
Each regional office is headed by a Senior Coconut Development Officer (SCDO).
The district field staff consists of 25 CDOs who are mostly Agriculture Diploma
holders. Each CDO is assigned to an area covering 5,000-6,000 farmers. The
staff is charged with the responsibility of extension, advisory work relating
to plant protection as well as the management of various coconut development
subsidy schemes. The technical backup for extension is provided by CRI The
workload related to the various subsidy schemes is rather heavy. Also, the
CDOs are handicapped by poor mobility due to lack of transport as well as
absence of village level workers. These factors have tended to keep the
extension effort of the staff to the minimum and incidental to their otheractivities.
2.29 Responsibility for extension work in two special projects (Hakwatuna
and Usgala Siambalangamuwa) were with the Land Commissioner's Department who
had two AOs, one AI and four KVSs attached for this purpose. In preparation
for the proposed reorganization of extension services under the project, these
have recently been merged with the extension organization of DA. As regards
livestock, nine Veterinary Surgeons, assisted by 40 KVSs operate in the district
under the control of DAPH. Main activities include disease control (preventive
vaccination), artificial insemination program and the enforcement of health
and other regulations. The Department: of Minor Export crops with one AO, two
AIs and two KVSs is responsible for extension work on crops such as cocoal,
coffee and pepper.
2.30 Main problems impeding efficiency of the present agricultural
extension system are:
(a) fragmentation of the agricultural extension service with
emphasis on individual crops and without concern foroverall production possibilities;
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(b) pursuit of unrelated and, often, conflicting activities;
(c) weak links with the agricultural research institutions;
(d) inadequate in-service training for the field staff;
(e) insufficient contact with the farmers due to inadequatemanpower and absence of well structured work programs; and
(f) lack of transport and inadequate operating budgets.
GOSL is aware of these problems and is placing a high priority on solvingthem. Under the IDA financed Tank Irrigation Modernization Project (Credit666-CE), the extension service in the Anuradhapura District has been reorgan-ized along the Training and Visit (T&V) system. The results so far are en-couraging although some difficulties have been experienced due to delays inappointment of additional staff, improper selection of contact farmers as wellas political interference in staff placement. A project to extend the T&Vsystem on a nationwide basis, incorporating the experience from the Anurad-hapura District, has recently been appraised for possible financing by IDA.
B. Farm Input Supplies
2.31 Seeds and Planting Material. For paddy and other field crops,farmers obtain seeds from the extension service and the Multi-purpose Coop-eratives (MPCs), which, in turn, get them from Government farms and fromcertified seed growers. There is a great deal of farmer-to-farmer exchangeand many cultivators save their own seed, especially for paddy. Foundationand registered seed are grown on Government farms. Multiplication is donemostly by certified growers. Currently, there are no facilities in Kurunegalafor cleaning and processing of the seeds obtained from certified growers.Such facilities are available in other major paddy producing districts andhave proved to be very popular with the farmers.
2.32 For coconut, there are two nurseries run by CRI, with a total capa-city of 150,000 plants, sufficient for the replanting of only about 1,500 acper year. Recently, a nursery for intercrops such as cocoa, coffee, andpepper has also been started; however, the output remains much below therequirements. Shortage of good quality planting material is a serious con-straint to accelerating replanting and intercropping programs in the district.
2.33 Agricultural Equipment. As elsewhere in Sri Lanka, for the pasttwo decades there has been a steady shift towards tractorization of land prep-aration for paddy cultivation. Draft animals, however, still account for abouthalf of the land preparation for paddy cultivation in the district and theywill continue to have an important role for the foreseeable future, parti-cularly in the wetter, southern parts of the district where holding sizes aresmaller and land preparation is physically less taxing. Land preparation forchena cultivation is done almost exclusively by manual labor. Due to stagnationin the draft animal population and severe restrictions on imports of tractorsand mammoties (hoes) during 1970-77, the farm power situation got progressivelyworse. During 1977, the district had in estimated 100,000 buffaloes, 450
- 15 -
four-wheel tractors and 300 two-wheel tractors, adequate to cultivate on:Ly
about 100,000 ac over the recommended 45-day cultivation period, compared to
the asweddumized area of 170,000 ac. Inadequate farm power availability has
been a major constraint to fuller utilization of the land and water resources
in the district. With import liberalization over the past year, the situation
has improved considerably and several popular brands of tractors are now
readily available with local dealers and agents. Currently, the main co-n-straint is the lack of suitable credit fac:Llities for financing such purchases
by the farmers. Availability of good qual:ity mammoties, particularly the
brands popular with farmers, is still a problem.
2.34 Fertilizers. Until recently, the Ceylon Fertilizer Corporation (CFC)
was the sole importer for all fertilizers; now the imports are also open tothe private sector. Mixing and distribution at the wholesale level is handled
by both public and private sector organizations with the private sector mostly
catering to large plantation estates. Retail sales for paddy and field crops
are through MPCs as well as Agricultural Service Centers (ASCs) supervised and
supported by the Agrarian Services Division (ASD) of the Ministry of Agricul-
tural Development and Research. Retail sa:Les for coconut are handled mostly
by CCB. At present, in Kurunegala Districc, ASD operates ten fertilizerstores, with a total capacity of about 5,200 tons and CCB, four stores with
a capacity of 1,300 tons. In addition, MPCs and ASCs have an all-purpose
storage capacity of about 7,000 tons, a pai7t of which is used for fertilizer
storage. Recently, retail sales have also been opened to the private sector.
2.35 Farmers are generally aware of the benefits to be derived fromincreased fertilizer use and a number of farm surveys indicate substantial
unsatisfied demand due to an inefficient distribution and marketing network
as well as inadequate agricultural credit ,upport, particularly for coconut.
A comprehensive review of the fertilizer p-ocurement, distribution and market-
ing problems has been completed recently w.th assistance from the FederalRepublic of Germany and it is expected tha: overall fertilizer availability
will improve considerably during the next Eew years. At the district level,
most serious bottlenecks relate to inadequate storage and transport facilities.
2.36 Agro-chemicals. Active ingredients and emulsifiers for all pesti-
cides are imported, both by the private sector and the Ceylon PetroleumCorporation but most of the formulation talces place in Sri Lanka. The rangeof pesticides available is comprehensive and adequate, and packaging is good.GOSL controls both the retail prices and the range of products that can be
sold. The private sector firms have their own field Advisory Services and run
demonstrations on farmers' fields. They have a network of subdistributors at
the village level and also supply MPCs and ASCs. All formulations are liquid,
therefore they must be applied through sprayers which are usually rented from
a neighbor or from the MPCs. A shortage of sprayers at the farm level is a
serious constraint.
C. Agricultural Credit
2.37 Principal sources of institutional agricultural credit are the twonationalized commercial banks -- the People's Bank (PB) and the Bank of
Ceylon (BC). The Bank of Ceylon lends directly to the farmers through its
- 16 -
40 ASC branches in the district. The People's Bank lends through MPCs aswell as through MPC's Rural Bank branches, totalling 37 in Kurunegala. Bothbanks follow essentially similar credit policies, set forth by the Ministryof Agricultural Development and Research (MADR). Currently, cultivation loansare granted for paddy and some 17 other field crops. The maximum area financedis 10 ac for paddy and 5 ac for other crops. Loans are grantec according tothe scales of finances approved by IIADR for different crops in various agro-ecological regions. Loans are disbursed partly in kind (inputs) with directpayments to supplier, and, partly in cash. Loans are also provided for farmequipment and land development, however, no production loans are made forcoconut lands.
2.38 Cultivation loans are for six months. The lending rate to the bor-rower for cultivation loans is 9% with a penalty of 6% charged on overdues.For other types of agricultural loans, interest rates range from 10-14% with arepaynment period of up to five years. For cultivation loans, the Central Bankprovices 100% refinance facilities to both banks at a concessionary 2% rate.Default guarantees of up to 75% were also provided by the Central Bank; how-ever, to improve credit discipline and encourage greater involvement of thelending institutions in agricultural credit, GOSL has discontinued the defaultguarantees beginning with the maha 1978/79 crop loans. Agricultural lendingactivity by the two Banks in the Kurunegala district for the past few yearsis suntmarized in Annex 1, Table 6.
2.39 A long standing problem with agricultural credit in the district,as in the rest of the country, has been the high default rate, typicallyaveraging over 50%. This has prevented greater farm population coverage byinstitutional credit. Also, it has meant a continuous drain or, the Govern-ment treasury. In part, the high lefaults are due to weakness in agricul-tural credit operations. Largely, however, they result from the lenientattitude adopted by successive governments toward habitual defaulters. GOSLis seriously concerned about the problems with the current agricultural creditprogram and is hoping to use the proposed project as a vehicle for developinga financially viable credit system while providing coverage to most of thefarm population. With technical assistance from the Asian Development Bank(ADB), GOSL is undertaking a comprehensive review of the agrictltural creditoperations in Sri Lanka. The findings of the review are expected over thenext few months.
D. Marketing and Processing
2.40 To ensure remunerative prices to farmers, GOSL operates GuaranteedPrice Schemes (GPS) for paddy and a number of other crops such as pulses andcoarse grains. Responsibility for implementation of GPS for all crops restswith the Paddy Marketing Board (PMB) which operates through a well dispersednetwork of purchasing centers run by MPCs. Typically, about 25% of the paddyproduction in the district is sold to PMB; the rest is either sold to privatetraders and millers or retained for home consumption. Peak procurement periodsare after the maha crop, between March and May. From purchase centers, paddyis transferred to PMB stores. Currently, there are some 17 PMB stores in thedistrict varying in size from about 600 to 6,000 tons with a total effectivestorage of about 23,000 tons. Milling of paddy procured by PMB is done
- 17 -
both at PMB owned mills and private lmills contracted by PMB. Total monthlymilling capacity in the district available to PMB is estimated at about 2,000tons. In addition, there are some 100 private mills of various sizes which docustom milling for private traders and farmers. Milled rice is sold at costto the Food Commissioner for distribution through the rationing system. Dueto inadequate storage, transport and milling facilities as well as insufficientsupervision of the retail purchasing centers, procurement operations breakdownduring the peak procurement periods and farm gate prices go below the supportprices particularly in years with good crops. With assistance from USA-ID,GOSL is implementing a nationwide program to improve the paddy procurementoperations and to provide associated physical infrastructure requirements.
2.41 Marketing of non-paddy field crops is mostly through private channels.Guaranteed Price Schemes have been much less successful for these crops andprices often fluctuate considerably from month to month. GOSL is consideringmeasures to improve marketing of these crops.
2.42 The vast majority of coconut holders sell fresh nuts to villagedealers who in turn sell them to desiccated coconut factories or oil miLls.A few larger holders make copra which is then sold to oil mills. Estatesnormally sell fresh nuts directly to desiccated coconut factories or makecopra for sale to oil mills. The district is adequately served by 11 desic-cated coconut factories and 12 oil mills. Of these, four are integrated,producing desiccated coconut, coconut oil and poonac. Due to depressedproduction lavels, most of the mills havE functioned at below capacity overthe past several years.
E. Coordination of Input Supplies
2.43 To improve the timely availability of various agricultural s;uppliesand services to the farmers, the Government has recently established an Agri-cultural Development Authority (ADA) under the Ministry of Agricultural Devel-opment and Research. The Authority is to appoint an Agricultural Manager toeach of the 160 electorates in the country, who would monitor and coordinatethe input distribution program of the various agriculture supporting agenciesand departments. It is intended that through its monitoring, ADA would helpidentify any problem areas at an early stage, for remedial actions, if neces-sary, at the highest levels of the Government. Currently ADA is operating in11 electorates of which five are in the Kurunegala district. Given the frequentbreakdowns in the past in activities such as fertilizer distribution, paddyprocurement, credit distribution and recovery, and farm power availability,ADA can clearly play an important role in accelerating the agricultural devel-opment in Sri Lanka. However, for its efforts to be successful, ADA wiLl haveto concentrate, at least initially, only on a few critical inputs and services.Also, its effectiveness will depend greatly upon developing harmonious rela-tions with the field staff of the various agencies to be monitored andcoordinated.
Social Infrastructure and Living Standards
A. Transport and Communications
2.44 Most major towns and urban centers in the district are intercon-nected by a network of about 900 mi of metalled and tarred roads, and served
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by publicly operated regular bus service. Kurunegala town itself is wellconnected by class A roads with other major cities/towns in Sri Lanka suchas Colombo, Kandy, Puttalam and Anuradhapura (Map 13946R). In addition,about 70 mi of railroad runs through the district, connecting Kurunegalawith Anuradhapura, Kandy and Colombo. Most villages and rural settlementsare connected to the main network through some 7,000 mi of gravelled roadsand dirt tracks, mostly maintained by the village councils. Many of theseare, however, unpassable during part of the rainy season. The transportnetwork is generally adequate for the needs of the area. There is, however,a need for rehabilitating/upgrading some of the well-travelled villagecouncil roads, particularly in the underdeveloped northern part of thedistrict.
2.45 Telecommunication facilities link Kurunegala with Colombo. Thereare also some 25 small exchanges linking various district towns with Kurun-egala. Because of outdated equipment and limited capacity, the quality ofservice is generally poor. Under an ongoing project, the Kurunegala exchangeis to be modernized to provide direct dialing facilities from Colombo. Thisis expected to be completed by the end of 1979 and should substantiallyimprove access by telephone to the district.
B. Electrification
2.46 Kurunegala District has lagged behind the rest of the country inelectrification. According to the 1971 Census of Housing, only 2% of theoccupied private housing units in the district had electricity compared to9% for the country. Electricity supply to the district is provided mainlythrough a 66 KV/33 KV Grid Substation of 6 MVA capacity at Mallawapitiya,about 3 mi from Kurunegala. A 132 KV main transmission line presentlyenergized at 66 KV connects Mallawapitiya Grid Substation to the NationalTransmission Network (Map 13945). Currertly, in Kurunegala, there are about100 industrial/commercial users purchasing directly from the Ceylon EfLectric-ity Board (CEB) and 17 local authorities drawing bulk supplies from CEB forretail distribution. In addition, 40 rural electrification schemes are admin-istered direztly by CEB. The total number of consumers is about 7,000. Withrapid growth of prospective consumers for domestic, commercial and industrialuses in the district, demand for rural electrification schemes is large. Themain constraint is the high initial investment in providing electricity tosmall dispersed settlements, particularly when they are away from the existinghigh tension lines.
C. Water Supply
2.47 According to the Housing Census of 1971, only 2% of the householdsin Kurunegala had a piped water supply compared to some 20% in the country asa whole. Besides Kurunegala town, six other localities in the district areserved by piped water. Most of the households depend upon shallow wells--50%share community wells and about 35% have private wells. About 10% of thehouseholds depend upon other sources of water such as streams, rivers andtanks. There are about 85,000 shallow wells in the district or an averageof 25 wells per village. Some of these wells have probably gone dry; however,the number of such wells is unknown. Because of an uneven geographical
- 19 -
distribution of the wells, there are several water deficient areas in thedistrict (Map 13944).
D. Health Facilities
2.48 The district is served by a good network of medical institutions.The largest institution in the district is the General Hospital in Kurunegalatown with some 800 beds and facilities for surgery, obstetrics and gynecology,pediatrics, ENT, eye and dental care and laboratory work. In addition, thereare ten district hospitals, 14 peripheral units, four rural hospitals, ninematernity homes and 40 central dispensaries (Map 13944). 1/ The total bed
strength is about 2,500, i.e., about 500 people per bed. Through a system ofreferral, serious cases from smaller institutions are sent to larger institu-tions by an ambulance service. Preventive health care work in the district isorganized through 12 Health Units each headed by a Medical Officer of Health.The Units provide for the control of communicable diseases, sanitation, familyhealth, epidemiological surveillance and health education. Family planningservices are integrated with maternal and child health service. Except forpatients who choose to be admitted into paying wards in big hospitals, medicalservices are free of cost.
2.49 The health facilities are generally adequate to meet the needs,particularly considering that there are also several ayurvedic clinics operatedby the local bodies, as well as numerous private practitioners. The mainproblems with the health care system in the district, as in the rest of thecountry, are: shortages of drugs and medical equipment due to financialconstraints; shortage of qualified medical personnel due to emigration aswell as their reluctance to live in relatively inaccessible rural areas withpoor housing and other basic amenities; and an ineffective referral systemdue to shortage of transport vehicles and poor communications, leading to anunderutilization of outlying facilities and overcrowding at the main facilities.Attention paid to preventive health care has also been highly inadequate.
E. Educational Facilities
2.50 The district has a total of about 820 schools of which 230 areprimary schools (grades 1-5), 350 junior secondary schools (grades 1-10)and 120 senior secondary schools (grades 1-12). In addition, there are twoteachers' training colleges, 25 school-based centers for vocational educationof school leavers and a technical institute in Kurunegala town. Usually,primary education facilities are available within one mile of pupils' homes,junior secondary within three miles and senior secondary within five miles.Total enrollment is about 200,000. Average class size is about 40 in theprimary grades and 30-35 in the higher grades. Out of a total of some 8,200
1/ All these are mostly general practitioner facilities with typical bedstrength of 100 for a district hospital, 30-40 for a peripheral unit,15-20 for a rural hospital, and about ten for a maternity home.
- 20 -
teachers in the district, about 6,800 are trained and certified graduates.
Participation rates are quite high -- over 85% for age group 6-9 years, 65%for age group 10-14 years, and 20% for age group 15-19 years. Except for
charges on non-classroom facilities such as playgrounds, education is freefor all students.
2.51 Due to poor equipment and facilities at the smaller schools as well
as difficulties in finding qualified teachers for posting at such schools,there is a substantial underutilization of smaller outlying schools and asa result, overcrowding at the main schools. There is also a need for moreemphasis on science and vocational education, geared to the needs of the jobmarket in the country.
III. THE PROJECT
Objectives and Approach
3.01 The proposed project aims to evolve a replicable model of regionaldevelopment for raising productivity, employment, incomes and living standardsof the rural population in Sri Lanka. The main assumption underlying theproject approach is that the existing economic and social infrastructure inSri Lanka is substantially underutilized and prospects exist for a rapid andsignificant improvement through strengthening of the development-orientedinstitutional services, accompanied by modest but critical complementaryinvestments in physical infrastructure.
3.02 The proposed project is designed to emphasize:
(a) directly productive investment-s;
(b) local level political participation in identificationof project investments (accompanied by sound selectioncriteria, applied consistentlyl;
(c) reduction of intra-regional disparities;
(d) financial, technical and insti:utional replicability; and
(e) labor-intensive, quick-yielding rehabilitation worksrather than new construction.
3.03 Because of the predominant position of coconut and paddy in thedistrict's economy as well as the scope for large production increases forboth crops, the principal project thrust would be to rehabilitate the pro-duction base and to improve supporting services essential for increasedpaddy and coconut production. Specifically, the project would include:
(a) rehabilitation of existing irrigation schemes accompaniedby improved water management practices to fully exploitthe irrigation potential;
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(b) stepped-up programs of replanting/underplanting, inter-cropping and fertilizing of smallholder coconut plantationsto overcome the past neglect;
(c) reorganization and strengthening of agricultural extensionservices to improve their effectiveness;
(d) improvements in input supply services such as fertilizerdistribution, seed supplies, planting materials and farmequipment; and
(e) strengthening of agricultural credit facilities for cropproduction loans as well as for investment in farm equip-ment and machinery.
These directly productive investments would be complemented by limited invest-ments in transportation, health, education, drinking water supply and ruralelectrification to improve utilization and effectiveness of the existingfacilities, to reduce intra-regional disparities and to develop the socialinfrastructure for growth in the long-term.
3.04 Although the proposed project includes some 12 different components,it does not purport to tackle all aspects of regional development. Instead,the project design represents a pragmatic compromise between comprehensivenessand manageability. Even after the project, substantial scope should exist forfurther investments in components included under the project as well as forincorporatioII of new components. 1/
Detailed Features
A. Irrigation and Water Management (Base Cost US$5.50 M)
3.05 The project aims to increase the irrigated area under cultivationthrough rehabilitation and/or improvement of the existing irrigation schemesalong with strictly enforced better water management practices. The projectwould also promote further exploitation of the surface water resource in thedistrict through supplementary lift irrigation schemes.
3.06 Major Irrigation Schemes. The rehabilitation of the nine majortank schemes in the district (para 2.07) would include the following works(Annex 2(a), Table 3):
(a) desilting and enlarging oiE the main canals anddistributaries;
(b) repairing, enlarging and gravelling of embankmentsused as farm roads;
1/ One such component could be promotion of rural industries for expandingand diversifying employment opportunities in rural areas.
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(c) lining of selected reaches of the conveyance system toreduce excessive seepage losses;
(d) construction of some 65 additional regulators, tenregulator-cum-bridges, 60 drainage outlet structures,ten culverts, and 25 silt traps; and
(e) installation of about 530 turnouts of varying sizes from4 to 24 in, and about 80 distributory gates for turnoutmodifications and improvements.
To facilitate equitable water allocation, the distribution system would beimproved so as to enable controlled deliveries to individual farms, t)picallyaveraging 2.5 ac.
3.07 Preliminary investigations for all nine tanks have been completed.Work on detailed surveys and designs for channel modifications and structurelocations is in progress and is expected to be completed for two schemes byJune 30, 1979 so that construction can be started within the first year ofthe project.
3.08 Village Irrigation Schemes. The project would provide for rehabil-itation of some 500 village irrigation schemes (tanks and anicuts). Theproject works would include: (a) repairs, extension and/or raising ofembankments; (b) repairs to sluice and spillway structures of village tanksand the overflow structures of anicuts; (c) replacement of sluice gates, andinstallation of new gates for anicuts; and (d) desilting and enlargement offield channels. Land clearing for any new areas brought under cultivationwould be done by the farmers themselves.
3.09 The village schemes for rehabilitation would be selected accordingto the following socio-economic and technical criteria:
Village Tanks
(a) the command area under each tank would not be less than 20 ac;
(b) useful storage of tank would not be less than 50 ac-ft;
(c) tank would directly benefit at least ten families;
(d) rehabilitation cost would not be more than Rs 7,000 perincremental irrigated ac;
(e) tank bed would not be of pervious soils and tank shouldhave been filled at least three times in the past fouryears; and
(f) total area benefited would be at least ten times the pri-vately owned land to be submerged, if any.
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Village Anicuts
(a) catchment areas for an independent anicut would not beless than 1.0 sq mi;
(b) distance between two anicuts on a stream would not beless than 1 mi and the catchment area in between twoanicuts not less than 0.5 sq mi;
(c) command area would not be less; than 30 ac;
(d) anicut would directly benefit at least 15 families; and
(e) rehabilitation cost would not be more than Rs 7,000per incremental irrigated acre.
To ensure balanced intra-regional development, expenditures on rehabilitationof village schemes in any electorate would not exceed 20% of the total forthe district.
3.10 A total of about 130 village irrigation schemes have already beenidentified. Additional schemes would be identified and selected during theproject period. Detailed surveys and investigations are in progress forschemes proposed for rehabilitation in the first year of the project. Assur-ances have been obtained from GOSL that selection of village irrigationschenies for rehabilitation under the project would be in accordance withcriteria agreed upon by IDA.
3.11 Lift Irrigation Schemes. The project would provide 20 trailer-mounted pumping units of 6 inch size and two of 12 inch size for lift irriga-tion from perennial streams and other water bodies for relief during periodsof untimely dry spells. Forebays and main feeder channels as well as concretepads and ramps for mobile pumps would be constructed at suitable locations.About eight locations along Dedura Oya and Maha Oya where lift irrigationwould be feasible have already been identified. Investigations for identi-fication of other sites are in progress. Operational details concerning man-agement of supplementary irrigation facilities are expected to be finalizedby June 30, 1979.
3.12 Improved Water Management. The project would bring all majorirrigation schemes as well as the selected 500 village irrigation schemesin the district under improved management. Problems which can be overcomewithout rehabilitation of the physical systems (e.g., improving operation ofmain sluices, coordinating tank water releases with rainfall and crop waterrequirements as well as shifting cropping calendars to benefit fully fromrainfall) would be adopted in all nine major schemes in the first year ofthe project. Comprehensive measures including introduction of rotationalirrigation, possible only with improvements to the physical systems, wouldbe phased with the rehabilitation program. For village schemes, the projectwould adopt the highly successful model developed at the Maha IllupalamaResearch Station over the past several years. The model emphasizes advancingof cropping calendars, avoidance of staggered cultivation, use of proper paddy
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varieties and mobilization of group action through education and training.Production increases of 30-50% in one year have been obtained in irrigationschemes where the Station has tried its program so far. The proposed projectwould be the first large scale replication of the Maha Illupalama model. Closecooperation has been assured from the concerned research staff. Several train-ing sessions for the agricultural field staff have already been conducted andthe program is being tried in ten village tanks during the current 1978/79maha. This would provide valuable experience for full implementation underthe project.
3.13 Support under the project would include construction of additionalregulators, control structures, flow measurement devices and field outletsrequired for effective water management. Additional staffing for efficientwater distribution and management would also be included.
3.14 Equipment. Labor intensive techniques would be emphasized for theproject works. However, to ensure timely implementation and high qualityconstruction, the project would also provide limited amounts of constructionequipment and vehicles (Annex 2(a), Table 2). After completion of the project,the left over usuable equipment, if any, would be used for operation andmaintenance (O&M) of rehabilitated irrigation schemes.
B. Coconut Development (Base Cost US$3.70 M)
3.15 The project objectives would be to: (i) increase productivityof mature plantations through improved husbandry practices, particularlyincreased fertilizer application; (ii) rehabilitate neglected plantations bystepping up replanting/underplanting of senile palms; and (iii) intensify useof coconut lands, through intercropping. The project effort would be con-centrated in the wet and semi-wet zones (covering 70% of the coconut acreagein Kurunegala) as the climatic conditions for coconut production are morefavorable in these areas. Also, the project would emphasize smaller holdings(below 25 ac, accounting for about half of the total coconut acreage) becausethe neglect on such holdings has been more severe and hence the scope forimprovement is greater.
3.16 Improved Husbandry Program (Annex 2(b), Tables 2-5). Over the fiveyear implementation period, the project would aim to triple fertilizer usein the district -- from about 10,000 tons per annum at present to 30,000 tonsin 1983. As a result, about 150,000 ac or about 40% of the total coconutacreage in the district would be adequately manured. To achieve this, fer-tilizer marketing and the distribution system would be greatly improved(para 3.24). To overcome the financial constraints faced by smallholders,medium-term credit facilities would be introduced for financing fertilizerpurchases by coconut cultivators (para 3.26).
3.17 The project would also support construction of contour drains onsome 20,000 ac as well as removal of excess palms from 40,000 ac. Thestrengthened and unified agricultural extension service, to be establishedunder the project (para 3.22) would facilitate the dissemination of improvedhusbandry practices for coconut.
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3.18 Replanting/Underplanting (Annex 2(b), Table 2). The project wouldgreatly increase the current replanting/underplanting rates -- from an esti-mated 2,000 ac per annum at present to about 8,000 ac per annum in 1983, thelast year of the project. Overall, the project would increase the replanted/underplanted area during 1979-83 from a projected 10,000 ac without theproject to about 25,000 ac with the project. The project targets are quitemodest in relation to the replanting/underplanting requirements in the dis-trict (para 2.17) and have been set taking into consideration the limitedimplementation capacity of the Coconut Cultivation Board at present. Toovercome the effects of the past neglect, the replanting rate targeted for1983 would have to be maintained for several years even after projectcompletion.
3.19 The planting would be with both the selected local tall varietiesas well as the high yielding hybrids (paru 2.24), depending upon the agrco-climatic conditions in the different areas as well as the farmers'preferences. Eight new nurseries each wil:h a capacity of about 60,000 plantswould be established to provide high quality seedlings. Two existing nurserieswould also be improved. In order to reduce transplanting shock and shortenthe immaturity period, seedlings would be raised in polythene bags.
3.20 Intercropping (Annex 2(b), Table 3). Due to the limited prac-tical know-how and experience in Sri Lanka with intercrops as well as a lackof field-tested technical packages for use by the extension service, theproject's target for intercropping would be a modest 10,000 ac -- cocoa(2,000 ac); coffee (3,000 ac), pepper (3,000 ac) and other crops (2,000 ac) --
only about 5% of the total district acreage suitable for intercropping. Theproject would, however, emphasize the bui.ding up of a strong technical basefor possible future expansion on a large -;cale. Support under the projectwould include establishment of five nurseries, each with an annual output ofabout 200,000 plants, to supply planting tiaterials for cocoa, coffee andpepper. In addition, about 50 demonstration plots in the farmers' fieldswould be established in the district to help in preparing appropriate tech-nical packages for the extension service as well as in propagating inter-cropping. The nurseries and the demonstration plots would be establishedand operated with technical guidance from the Minor Export Crops Research,Station at Matale.
3.21 Vehicles, office buildings and equipment, and additional staffingAnnex 2(b), Tables 4-7) would be provided to the Coconut Cultivation Boardand the Department of Minor Export Crcps to assist them in implementation ofthe project proposals. They would also be provided additional financialassistance for supporting stepped up programs of replanting/underplanting,rehabilitation and intercropping in accordance with GOSL's ongoing subsidyschemes as summarized below:
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Table 3.1: COCONUT DEVELOPMENT SUBSIDY SCHEMES
/aItem Estimated Dev. Cost- GOSL Subsidy
------------ -Rs ----------------
Coconut Replanting/underplanting(per ac) 5,000 1,800
Intercropping (per ac)Cocoa 2,200 1,200Coffee 2,400 1,100Pepper 2,950 1,500
Removal of Excess Palms(per palm) 16 16
Contour Drains (per chain) 24 24
/a Including imputed cost of family labor.
Tentative site selections for nurseries and demonstration plots have alreadybeen made. Detailed surveys and investigations are underway and final siteselections would be made by June 30, 1979.
C. Agricultural Extension (Base Cost USi1.00 M)
3.22 The various agricultural extension services in the district (para2.24) would be consolidated and reorganized on the basis of the Training andVisit system. Current staff levels would be increased to provide one KVS forabout every 600 farm families. Additional SMSs and supervisory staff such asAOs and AIs would also be assigned. Support under the project would include(Annex 2(c), Tables 1-3):
(a) incremental salaries, allowances and recurrent expendi-tures for the strengthened extension service during theproject period;
(b) transport vehicles for increasing mobility of the fieldstaff;
(c) office and audio-visual equipment for the extensionservice; and
(d) construction of about 50 staff quarters in remote areasand extension to the head office building in Kurunegala.
3.23 Locations for staff quarters have already been selected. Surveysand site investigations are in progress. Buildings will be constructed accord-ing to the standard designs used by the Department of Agriculture, which areconsidered satisfactory. The work program under the project would be consist-ent with that under the forthcoming National Extension Project (para 2.30).Assurances have been obtained that the organizational set-up as well as the
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work program for the agricultural extension service in the project area wouldbe satisfactory to IDA.
D. Agricultural Input Supplies (Base Cost US$1.05 M)
3.24 The project would improve supplies of critically needed farm inputsand services as well as provide better monitoring and coordination of thevarious input supplies at the farm level. Support under the project wouldinclude (Annex 2(d), Tables 1-3):
(a) establishment of a seed processing center to supplyquality seed for paddy and other field crops;
(b) con3truction of fertilizer stores for MPCs and ASCsand provision of transport lorries to ASD to improvethe fertilizer distribution within the district;
(c) impart and cash sale to farmers of about 50,000mammoties;
(d) incremental salaries, allowances and recurrent expendi-tures for extending ADA's operations to the entiredistrict; and
(e) vehicles and office equipmeant for ADA and ASD staff toimprove their effectiveness for better coordination offarm input supplies.
3.25 Site investigations for the seed processing center have alreadybeen completed. The plant setup and machinery would be similar to those in12 other centers, currently operating successfully in other districts of SriLanka. Mammoties would be imported through the State Trading Corporationand sold to the farmers through MPCs and ASCs.
E. Agricultural Credit (Base Cost US$7.05 M)
3.26 The project objective would be to lay the foundation for a viableagricultural credit system while encouraging high participation by the farmers,particularly the small farmers. The project would emphasize resolving pastdefault problems through recovery drives and rescheduling where necessary,strengthening of lending operations for the future and a strict enforcementof credit discipline. Credit facilities under the project would finance(Annex 2(e), Tables 2-3):
(a) short-term production loans for paddy and other field cropsIt is expected that the cropped area covered by institutionalcredit would be tripled from about 10,000 ac at present toabout 30,000 ac by 1983;
(b) medium-term production for supporting the fertilizing programon about 50,000 ac of coccnut lands (para 3.16);
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(c) medium-term loans for purchase of about 200 four-wheel tractors,500 two-wheel tractors and about 1,000 hand sprayers by farmersand private sector tractor pools; and
(d) medium-term loans for purchase of 20 five-ton trucks by MPCs.
3.27 Recovery of Overdue Loans. To foster credit discipline and toimpress upon the farmers a break from the past practice of overlookinghabitual defaults, the project would launch a concerted drive for recoveryand settlement of some Rs 13 M in overdue debts owed by an estimated 25,000farmers in the district. Consolidated inventories of overdue debts wouldbe prepared and the defaulters would be classified into wilful or non-wilfuldebtors taking into consideration their assets and income levels 1/ as well asearlier payment records. All wilful defaulters would be asked to repay theirloans within one month of receiving the recovery notices, failing which legal
actions would be initiated. For non-wilful defaulters, the debts would berescheduled for payment in a number of installments determined on the basisof their repayment capacity as well as the outstanding amounts. The resched-uling agreement would clearly stipulate that any failure to repay the install-ments on time would lead to legal actions for recovery of the entire unpaidbalance.
3.28 Before launching the recovery drive, the elected representativesof the district would be fully briefed on the project objectives and approachon agricultural credit and their support would be solicited in explaining andpublicizing project actions to their constituents. With a well organizedpublicity and education campaign, it is expected that most of the defaultcases would be settled without recourse to legal measures. However, thethreat of expeditious and strong legal sanctions would also be of crucialimportance for success of the recovery drive. The Peoples' Bank and theBank of Ceylon have already worked out detailed programs for streamliningand expediting the procedures for prosecutions of wilful defaulters.
3.29 Credit Operations under the Project. The main features of thelending under the project would be as follows:
(a) Loan Eligibility. Loans would ;iot be given to defaultersand all borrowers would be required to have an agro-identitycard indicating essential agriciltural and financial inform-ation about the farmer. The project would provide for thepreparation of suitably designe1 agro-identity card whichwould be issued to farmers at a nominal cost. For bettercontrol and supervision, a farmer would be required to haveall his borrowings from only one bank.
(b) Terms and Conditions. To channel the credit to small farmers,maximum area financed would be limited to 10 ac for paddy;
1/ Income data could be readily obtained from ration card entitlements.
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5 ac for subsidiary food crops; aind 25 ac for coconut. Culti-vation loans for paddy and other field crops would be madefor a period of six months with a two month extension, wherenecessary, due to market conditions. Cultivation loans for
coconut would be repayable in five years including a graceperiod of two years. Loans for farm machinery and equipmentwould be repayable over a maximum of five years with semi-
annual installments. A down payment of 10-20% would be requiredfor purchase of farm machinery and equipment. Most of thefarm machinery would be sold to project area farmers, however
to channel private sector savings and enterprise into agricul-tural development, private sector farm machinery pools wouldalso be eligible for financing under the project. A downpayment of at least 20% would be required from operators ofsuch pools. Also, their rental rates and areas of operationwould be subject to periodic reviews by the AgriculturalDevElopment Authority. In t:he case of cultivation loans, thesecurity would be in the form of crop bonds or guarantee ofany two persons acceptable to the banks. For farm equipment,a lien would be taken on the equLpment in addition to theguarantee of any two persons acctiptable to the banks;
(c) Lending Procedures. Loan application forms for both bankswould be standardized and simplified to cut down on excessivedelays. Disbursements would mostly be in kind with directpayments to suppliers. AppraisaL and supervision procedures
would be strengthened to enable the banks to have close con-tact with the borrowers throughout the lending cycle. Account-ing systems and internal inspection and audited procedureswould also be strengthened for the two banks. Additionalstaffing, vehicles and office equipment would be providedunder the project for strengthening the lending operationsin the district;
(d) Refinancing and Guarantees. The Central Bank would provide100% refinance for cultivation loans and 70% for farm machineryand equipment. In line witlh GOSL policy, the lending bankswould not be given any guarantee against default and wouldlend at their own risk; and
(e) Interest Rates and Spreads. In line with on-going GOSLschemes, an interest rate of 9% per annum 1/ on cultivationloans and 14% per annum on Loans for farm machinery would
1/ With a penal rate of 15% per annum for late payments.
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be charged from the borrowers. 1/ Refinancing from the Central13ank would be on terms and ccnditions consistent with the
on-going countrywide programs and would provide a weightedaverage spread of about 5% t. the lending banks. These spreadsire considered adequate to cover the relevant administrativeand other costs to the banks.
3.30 The lending operations under the project including terms and condi-
tions, interest rates, guarantee provisions and procedures for prosecutions of
defaulters would be revised, following consultation with IDA, in light of the
findings of the on-going review of the agricultural credit operations in Sri
Lanka (para 2.38). Assurances have been obtained that agricultural creditoperations under the project including the procedures for prosecution ofdefaulters would be in accordances with rules, regulations and proceduressatisfactcry to IDA. To this end, separate subsidiary agreements, satis-factory tc IDA, would be executed between GOSL and the Peoples' Bank and the
Bank of Ceylon. Execution of such agraements would be a condition of credit
effectiveress.
F. Lives;tock (Base Cost US$0.15 M)
3.31 The project would strengthen animal disease control and veterinaryservices Ln the district. The number of veterinary ranges will be increasedfrom 9 to 14 to provide better service in the poorly served northern part of
the district. Support under the project would include: (a) construction of
offices, c:linics and staff quarters at three remote locations; (b) urgentlyrequired 3ffice equipment and simple surgical instruments for field works and
(c) trans3ort vehicles to improve mobility of the field staff. Sit:e investi-
gations fir the proposed buildings are in progress. Building will be ofstandard iesigns used by the DAPH.
G. Groundwater Exploration (Base Cost US$0.55 M)
3.32 The project would provide for exploration of the groundwater re-sources in the District, together witlh an assessment of the potential foreconomic exploitation of such resourci!s. Support under the project wouldinclude: (a) construction of about 150 test wells of about two-and-a-halfinch diameter; (b) construction of about 30 test wells of six inch diameter;
(c) provision for hydrogeological map3ing and surveying; and (d) equipmentand vehicles for implementing the well drilling and testing program. After
1/ During 1978, the inflation rate in Sri Lanka averaged about 15% and asimvlar inflation rate was expected for 1979 due mainly to adjustments inpri,:ing policies. However, it is expected that the policy-induced priceadjustment would be completed by 1980. As a consequence, the inflationrat'a is expected to drop and stabilize at about 7% per year by FY1981.
This would imply a positive real interest rate over most of the disburse-ment period of the project.
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completion of the exploration program, the equipment would be used, if feas-
ible, for development of groundwater resources in Kurunegala District. In
case groundwater development in Kurunegala is found to be uneconomical, the
equipment would be used for explorations inL other parts of Sri Lanka.
H. Rural Roads (Base Cost US$0.80 M)
3.33 The project would provide for rehabilitation/upgrading of about
130 mi of high priority rural roads, mlostly in backward areas of the district.
The roads for improvement under the project have been selected taking into
consideration: (a) present condition and utilization of roads; (b) potential
development impact on the traversed area; (c) population served; and
(d) importance of road for marketing of farm produce.
3.34 The roads would be built up to class "D" standards with 50 ft wide
right-of-way, 24 ft platform and 12 ft roadway. The roads would be con-
solidated earthen roads with about 3" of compacted gravel surfacing. Tne
rehabilitation would involve about 0.3 M cu yd of earth work, 0.1 M cu yd
of surfacing and 140 culverts and small causeways (Annex 2(h), Table 3).
Labor intensive construction methods would be emphasized. To ensure high
quality as well as timely implementation, limited amounts of equipment an,d
vehicles (Annex 2(h), Table 2) would also lbe provided under the project.
Following completion of the project, any leftover equipment would be used
for maintenance of the road network in the District. Site investigations
and preliminary surveys for all the roads have been completed and the detailed
designs are under preparation.
I. Rural Water Supply (Base Cost US$0.60 M)
3.35 The project would include installation of about 400 dug wells in
areas with drinking water deficiency (Annex 2(i), Tables 1-2). About 170
of the wells are expected to be in sandy st:rata, 100 in hard laterite and
the rest partly in hard laterite and partly in hard rock. Equipment and
vehicles needed for the construction program would also be provided.
3.36 Based on the available data on density of drinking wells, areas
deficient in drinking water have been tentatively identified (Map 13945).
To aid in final selection, about 10% of the wells in the district would be
surveyed on a random sample basis. The survey will yield information on the
size, ownership of wells, status of wells (whether or not operating), depth
and behavior of water table, strata conditions, population served, and known
reasons for failure of wells. About 5% of the inventoried wells will also be
subjected to chemical tests for water quality. Attempts would also be made
to reactivate the abandoned wells in the deficit areas by improving the water
quality and/or increasing the yield.
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J. Rural Electrification (Base Cost US$0.80 M)
3.37 The project would assist electrification of 16 rural areas whichare close to existing transmission lines and have potential for rapid economicgrowth (Annex 2(j), Tables 1-3). The project works would include constructionof about 25 mi of 33 KV distribution lines, 65 mi of low-tension lines andabout 18 substations of various sizes. Transport vehicles would be providedto increase mobility during construction. Based on projected revenues threeyears after electrification, all schemes would yield an annual return of atleast 5% on overall capital expenditures. All 16 schemes have already beenidentified and investigated (Annex 2(j), Table 3).
K. Heali:h (Base Cost US$0.35 M)
3.38 The project would improve effectiveness of the existing health caredelivery system in the district by promoting better utilization of smaller out-lying curative facilities as well as strengthening the preventive care facil-ities. Support under the project would include (Annex 2(k), Tables 1-2):
(a) construction of six residential quarters for medicalofficers/mid-wives so that all medical institutionswith in-patient facilities would have accommodationsfor at least one medical officer and one midwife;
(b) construction of offices for health units at five locationswhere adequate private buildings are not available forrenting. At four of these places, residential quarterswould also be constructed fcr medical officers;
(c) provision of ambulances and other transport vehicles toimprove the referral system, to increase mobility of thesupervisory personnel and tc facilitate distribution ofmedicines to outlying facilities;
(d) electrification by diesel generators of three hospitalswhich are away from the power transmission lines and havemore than 20 beds. A standby diesel generator would alsobe included for the General Hospital at Kurunegala; and
(e) provision of urgently needed simple medical equipment suchas sterilizers, refrigerators, operating theatre instru-ments and wheel chairs, mostly for the outlying institu-tions.
Sites for construction of buildings have already been investigated. Buildingswill be of standard designs used by tFe Health Ministry. Investigations ofhospitals to be electrified have also been completed.
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L. Education (Base Cost US$0.70 M)
3.39 The project objectives would be to improve the quality of eduzation
in the school system, strengthen facilities for vocational and technical
education, improve utilization of outlying smaller schools and to reduce
the existing disparities within the district. Support under the project
would include (annex 2(1), Tables 1-2):
(a) provision of simple science equipment to about 120
primary schools, 80 junior secondary schools and
3 senior secondary schools;
(b) provision of training equipment for crafts such as cloth
weaving, metal work, ceramics and woodwork, dress making,
watch repair, radio repair, typing, home-science and metal
work to 5 junior secondary schools and about 40 schools
with school-leavers program;
(c) provision of equipment for technical education to the
Kurunegala and Kuliyapitiya Technical Institute;
(d) construction of about 40 teacher!;' quarters for schools
in remote areas;
(e) construction of about 140 science rooms for junior secon-
dary schools; and
(f) upgrading of seven senior-second.iry schools so that each
electorate would have at least one comprehensive senior
secondary school having facilities such as science labora-
tory, workshop, agricultural unit and library.
Sites for construction of buildings have a'.ready been selected. Building
would be of standard designs used by the Ministry of Education. Equipmernt
lists for science and crafts education have already been finalized. Equip-
ment lists for technical education would be finalized folllowing review by
the consultant included under the project (para 5.15).
M. Project Coordination and Investigationis (Base Cost US$1.05 M)
3.40 The project would support ongoing GOSL efforts aimed at strengthen-
ing planning and coordination of multi-sect:oral district development projects
in Sri Lanka. The project would include:
(a) vehicles, office equipmett and additional staffing for proj-
ect coordination and management both in Kurunegala and in
Colombo. Support would also be provided for evaluation of
the project impact. An office building would be constructed
for the project secretariat in Kurunegala;
(b) support for preparing a statistical handbook for the
Kurunegala district to provide a reliable and readily avail-
able data source for developmental planning in the distr[ct.
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A considerable amount of data is currently available; however,
it lies scattered in numerous agencies, often unknown to
potential users. Also, the quality of existing data ishighly variable. The existing data would be compiled, eval-
uated and edited. Any gaps would be filled through supple-
mentary surveys. The statistical handbook could be updatedperiodically. Following development of the handbook for
Kurunegala, GOSL intends to do the same for other districts;
(c) support for investigation and preparation of other develop-
mental schemes in the district to ensure a pipeline of
sound proposals for future investments in the district; and
(d) support for preparation of similar rural development proj-
ects for about four districts for possible future financing
by IDA or other aid agencies. The districts have been
selected by GOSL taking into consideration: (i) current
living standards; (ii) potential for low-cost, quick-yielding development; and (iii) balanced regional growth.
The proposed districts and the developmental emphasis are as
follows: Puttalam (coconut and fisheries); Matale (minorexport crops); Vavunia (subsidiary food crops and paddy); andMoneragala (paddy and rainfed agriculture). The terms of
reference for preparation of the development plans have been
already finalized.
IV. PROJECT COSTS, FINANCING AND PROCUREMENT
Cost Estimates and Schedule of Expenditures
4.01 Total project costs over the five year project period (January 1979
to December 1983) are estimated at US$30.0 M equivalent. The foreign exchange
component is estimated at US$12.8 M or about 43% of the total project cost.
CosV estimates are based on unit prices adjusted to January 1979 price levelsand include about US$0.8 M in import taxes and duties. Physical contingen-
cies of 10-15% for civil works, 5% for field works and equipment, and 10% for
recurrent expenditures have been included. Because of the several major in-
vestment programs (e.g. the Mahaweli development) proposed by GOSL for the
next few years as well as the policy-induced price adjustments (para 3.29),
the domestic inflation rates for investment goods, particularly for civil
works, are expected to be substantially higher than the corresponding rates
internationally. Accordingly, price contingencies have been estimated
assuming the following inflation rates.
Annual Inflation Rate (%)1979 1980-83
Foreign Costs 6 6Local Costs 15 10
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4.02 Major elements in the cost estimate are: civil works (US$6.5 M);field works (US$2.3 M); 1/ equipment and vehicles (US$4.2 M); crop productionloans (US$4.0 M); loans for farm equipment and vehicles (US$2.9 M); technicalassistance (US$0.7 M), and engineering and administration (US$2.8 M) totallingto a base project cost of US$23.3 M. Physical contingencies (US$1.4 M) andprice contingencies (US$5.3 M) raise the total project cost to US$30.0 M.Estimated project costs, detailed in Annex 2, are summarized below (Tables 4.1and 4.2).
Table 4.1: COST SUMMARY BY EXPENDITURE CATEGORY
% ofTotalProject
Item Local Foreign "otal Local Foreign Total Cost--------(Rs M) - -- ----- TuS$M)T…/a--
1. Civil Works 81.15 19.35 100.50 5.24 1.25 6.48 222. Field Works 28.05 7.40 B5.45 1.81 0.48 2.29 83. Equipment &
Vehicles 10.75 55.00 6,5.75 0.69 3.55 4.24 144. Crop Production
Loans 18.00 44.0)0 )2.00 1.16 2.84 4.00 135. Loans for Farm
Equipment &Vehicles 11.20 33.40 44.60 0.72 2.15 2.88 10
6. TechnicalAssistance 2.70 7.75 10.45 0.17 0.50 0.67 2
7. Engineering &Administration 35.25 7.65 42.90 2.27 0.49 2.77 9
Base Cost 187.10 174.55 361.65 12.07 11.26 23.33 78
Physical Contingencies 14.65 6.80 21.45 0.95 0.44 1.38 5Price Contingencies 65.60 16.30 81.90 4.23 1.05 5.28 18
Total Cost 267.35 /b 197.65 465.00 17.25 /b 12.75 30.00 100
/a Figures in US dollars derived from the corresponding Rupee figures.Small discrepancies are due to rounding.
/b Includes about US$0.80 M equivalent in import taxes and duties.
1/ Excluding imputed cost of family labor (US$0.8 M equivalent) to beused in field works.
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Table 4.2: COST SUMMARY BY COMPONENT
% ofTotal
Cost ProjectComponent Local Foreign Total Local Foreign Total Cost
(Rs 11) ------- ------ (US$ M) /a
A. Directly ProductiveComponents
Irrigation and 93.50 31.00 124.50 6.03 2.00 8.03 27Water Management
Coconut Development 60.85 20.90 81.75 3.93 1.35 5.27 18Agricultural
Extension 12.15 7.85 20.00 0.78 0.51 1.29 4Agricultural Inputs 10.50 10.,i0 20.90 0.68 0.67 1.35 4Agricultural Credit 34.00 84.05 118.05 2.19 5.42 7.62 25Livestock 0.95 2.L5 3.10 0.06 0.14 0.20 1GroundwaterExploration 2.65 7.00 9.65 0.17 0.45 9.62 2
Subtotal 214.60 163.35 377.97 13.85 10.54 24.38 81
B. Social Infrastructure
Rural Roads 11.05 5.95 17.00 0.71 0.38 1.10 4Rural Water Supply 10.15 3.20 13.35 0.65 0.21 0.86 3Rural Electrification 11.40 4.20 15.60 0.74 0.27 1.01 3Health 2.40- 4.00 6.40 0.15 0.26 0.41 1EducatiDn 7.45 7.05 14.50 0.48 0.45 9.94 3
Subtotal 42.45 24.iL0 66.85 2.74 1.57 f.31 14
C. Project Coordinationand Investigations 10.30 9.90 20.20 0.66 0.64 1.30 4
Total Cost 267.35 197.65 465.00 17.25 12.75 30.00 100
/a Figures in US dollars derived from the corresponding Rupee figures.Small discrepancies are due to rounding.
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Financing
4.03 The proposed IDA credit of US$20.0 M would finance the full foreign
exchange costs and about 42% of the local costs or about 68% of the total
project cost net of taxes and duties. Benefitting farmers and sub-borrowers
would provide about US$4.0 M equivalent as contributions to field works f'or
coconut development, cash purchases of' farm equipment, and down payments and
installment payments on private agriculture investments financed through
institutional credit. Participating commercial banks, the People's Bank and
the Bank of Ceylon, would contribute about US$0.8 M from their own resources
for financing part of the agriculture credit requirements under the project.
GOSL would finance the remaining US$5..2 M from its budgetary resources. Net
of receipts from import taxes and duties on1 the project items, the GOSL con-
tribution would amount to about 15% of: the total project cost. The proposed
financing plan is summarized below:
Table 4.3: PROPOSED PROJECT FINANCING
Item Total Cost ID)A GOSL PB/BC Beneficiaries
------------------X--- (Rs M)-------------------
Civil Works 100.50 80,40 20.10 - -
Field Works 35.45 21,45 5.35 - 8.65Equipment & Vehicles 65.75 54.50 (1.75) - 9.50
Crop Prod. Loans 62.00 37,20 18.50 - 6.30
Loans for FarmEquipment & Vehicles 44.60 31,50 (24.40) 10.50 27.00
Technical Assistance 10.45 10.45 - - -
Engineering & Adm. 42.90 -- 42.90 - -
Contingencies 103.35 74.50 16.30 2.00 10.55
Total 465.00 310.00 80.50 12.50 62.00
Procurement
4.04 Equipment and Vehicles. Equipmei,t, vehicles and spares with an esti-
mated cif cost of about US$2.5 M (net of centingencies) would be procured after
international competitive bidding (ICB) in accordance with IDA guidelines. A
preference limited to 15% of the cif price of imported goods or the import duty,
whichever is lower, would be extended to local manufacturers in the evaluation
of bids. Because of the relatively sraall quantities under the project and the
need for standardization, it would be impractical and costlier to have separate
tenders for much of the educational and medical equipment; accordingly, the
project requirements for these items (cif cost US$0.4 M, net of contingencies)
would be procured together with the national requirements. Relevant pro--
curement procedures of the Ministries of Health and Education were reviewed
and are considered satisfactory. Due to strong consumer preferences, ICB
would also be impractical for procurement of vehicles and equipment which
are to be sold to departmiental staff or the farmers (cif cost US$0.5 M, net
of contingencies); hence, they would be procured by concerned agencies through
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prudent shopping, following procedures satisfactory to IDA. To promote stand-ardizatior, equipment for the seed prozessing center (base cost US$60,000)would alsc be procured through prudent shopping. Small off-the-shelf itemscosting lEss than US$10,000 each, whic- cannot be bulked into packages suitablefor international tendering or items needed urgently for expeditious projectimplementation, would be procured throigh prudent shopping in accordancewith procedures satisfactory to IDA. ion-ICB equipment purchases vould belimited to an aggregate of US$1.2 M.
4.05 Civil Works. Because most civil works would be labor-intensive,relatively small, restricted to seasonal construction, scattered over a widearea and could not be grouped into large contracts, they would be unsuitablefor ICB. Also, at present the private sector in Sri Lanka has a very limitedcapacity for construction works and mush of that capacity would be preemptedby programs such as the Mahaweli. Many Government departments and agencies,on the other hand, have considerable eKperience and capacity for such works.Accordingly, the civil works under the project (base cost US$6.5 M) wouldmostly be done on force account or through small unit-cost contracts withlocal labor groups. To encourage development of the private sector construc-tion capability, works under agricultural extension, coconut develcpment,health, livestock, agricultural input services and project coordination (basecost US$0.7 M) would be earmarked for award to private contractors throughlocal competitive bidding, following procedures satisfactory to IDA. To assistthe small contractors, the Project Director (para 5.04) may undertake the bulkprocurement of construction materials such as cement, bricks and timber. Incase of inadequate response from the private sector, these works wculd alsobe undertzken through force account.
4.06 Field Works. Field developm,nt works for coconut lands (base costUS$2.3 M) would be undertaken by the b2neficiaries on force account usingfamily anc/or hired labor and inputs pirchased through normal commercialchannels.
4.07 Agricultural Credit. Farm ilputs, equipment and vehicles (base costUS$6.9 M) under agricultural credit would be purchased by the sub-borrowersthrough normal commercial channels. A sufficient number of local dealershipsand agencies are available to ensure competitive prices and wide ranging choiceof appropriate equipment. The market conditions would be monitored by ADA andreviewed by IDA supervision missions from time to time and in case there wereto be inadequate competition or excessive prices in the local market, arrange-ments would be made for procurement through ICB with due regard to consumerpreferences.
4.08 Technical Assistance. Hiring of consultants (para 5.15) for assist-ance in project implementation (base cost US$0.5 M) would be in accordancewith IDA guidelines.
Disbursements
4.09 Disbursements would be made for:
_ 3,9 _
(a) 100% of foreign expenditures or 100% of local expendituresex-factory or 80% of local eKpenditures for equipment,vehicles and spares;
(b) 100% of the cost of technical assistance;
(c) 80% of the cost of civil works including constructionmaterials;
(d) 80% of the financial assistance, in excess of Rs 1.0 M 1/per ,-alendar year, by GOSL for field works;
(e) 40% of the disbursements, in excess of Rs 7.0 M 2/ per calendaryear, for cultivation loans by the Peoples' Bank and theBank of Ceylon (this would be eqtivalent to financing about60% of the incremental cultivaticn loans); and
(f) 80% of the loans disbursed by thE People's Bank and theBank of Ceylon for agricultural Equipment and vehicles.
Disbursements for items (c) - (f) would be made against statements of ecpend-itures, the dozumentation for which would le audited and retained for r,viewby IDA supervision missions. All other diEbursements would be made againstfull documentation. Disbursement percentag.es and categories would be re-viewed by IDA from time to time and amendec, if necessary. The ProjectDirector (para 5.04) would be responsible lor preparing claims for disbarse-ments from IDA.
4.10 It is expected that the disbursements would be completed by Jane 30,1984, about SiK months after the end of prcject implementation. The semi-annual schedule of disbursements is estimated to be as follows:
1979/80 1980/81 I'81/82 1982/83 1983/84
IDA Fiscal Yearand Semester 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd
CummulativeDisbursement(us$ M) 1.0 3.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0
To enable speeding completion of prel-iminaiy project works and investigations,retroactive financing of upto US$0.5 14 is proposed for eligible project expendi-tures incurred from January 1, 1979 onwards. Any funds remaining in thecredit account, after the end of project iriplementation, would be cancelledunless, subject to IDA's concurrence, suitable project related expenditurescan be identified.
1/ The approximate financial assistance by GOSL for field works in theKurunegala district during 1978.
2/ The approximate loan disbursements in the Kurunegala district by thePeople's Bank and the Bank of Ceylon during 1978.
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Accounts and Audits
4.11 To simplify project accounts, all budgetary allocations for theproject would be included in the budget of the Ministry of Plan Implementation,the principal coordinating agency for the project (para 5.01). The Ministryof Plan Implementation would, in turn, release the funds to the various imple-menting agencies through the Project Director (para 5.04). Each implementingagency would be allowed to make payments and claim reimbursements from theProject Director for staff salaries and allowances, payments on contractsbelow Rs 100,000 and sundry purchases below Rs 5,000. All other paymentswould be settled directly by the Project Director after receipt of certifieddocuments from the implementing agencies. Assurances have been obtained fromGOSL that all agencies involved in project implementation would prepare andmaintain separate accounts for the project in accordance with sound account-ing practices. Such accounts, together with disbursement documents, would beaudited annually by independent auditors acceptable to IDA. The ProjectDirector (para 5.04) would consolidate the accounts from the various agenciesand submit to IDA certified copies of the audited accounts together with theauditor's reports within six months of the end of each fiscal year. The auditreport would include, inter alia, a statement verifying that funds disbursedby IDA against statements of expenditures had been used for the purpose forwhich they were provided. The project accounts on agricultural credit wouldcontinue to be audited for five years after the end of project implementation.
V. PROJECT IMPLEMENTATION AND OPERATION
Implementation Responsibility
5.01 The various project componen:s would be implemented by existingGovernment agencies and departments normally concerned with those components.There would, however, be some rationalization of the functions, e.g., consol-idation of all agricultural extension services under the Department of Agri-culture. Altogether, there would be 21) agencies from 11 different ministries,having implementation responsibility under the project as described below.
Table 5.1: PROJECT IMPLEMENTATION AND OPERATION
Agency Responsibility
1. Ministry of Land and Development
(a) Irrigation Department (ID) - Irrigation rehabilitation works.- Lift irrigation schemes.- Water management in major tank
schemes.
(b) Water Resources Board - Groundwater exploration.
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Agency Responsibility
2. Ministry of AgriculturalDevelopment and Research
(a) Department of Agriculturet (DA) - Agricultural extension (includingextension for coconut areas).
- Establishment of seed processingcenter for field crops.
(b) Department of Minor Export - Nurseries and demonstration plotsCrops (DMEC) for coconut intercrops (cocoa,
coffee and pepper).
(c) Agrarian Research and - Project Evaluation.Training Institute (AR1'I)
(d) Agricultural Development ) - Water management in village irri-Authority (ADA) ) gation schemes.
(e) Agrarian Services ) - Coordination of farm inputDivision (ASD) ) supplies.
3. Ministry of Coconut Development
(a) Coconut Cultivation Board - Nurseries and fertilizer distri-(CCB) bution for coconuts.
- Administration of subsidy programsfor coconut development.
4. Ministry of Rural IndustrialDevelopment
(a) Department of Animal - LivestockProduction and Health (DAPH)
5. Ministry of Finance and Planning
(a) People's Bank (PB) ) - Administration of rural credit(b) Bank of Ceylon (BC) ) program.
6. Ministry of Power and Highways
(a) Department of Highways - Rural roads.
(b) Ceylon Electricity Board (CEB) - Rural electrification.
7. Ministry of Health
(a) Department of Health - Rural health.
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Agency Responsibility
8. Ministry of Education
(a) Regional Department of - Primary and secondary education.Education
9. Mini_try of Higher Education - Vocational education.
10. Ministry of Local Government,Housing and Construction
(a) Department of Local )Government Services ) - Rural water supply.
(b) National Water Supply and )Drainage Board )
11. Ministry of Plan Implementation
(a) Regional Development - Overall project coordination andDivision management.
- Preparation of development proj-ects for four other districts.
(b) Census and Statistics - Preparation of statistical hand-Division book for the Kurunegala district.
5.02 The proposed implementing agencies are generally well experiencedwith the types of work included under the project. Their operational policiesand procedures relevant to the proposed projects have been reviewed andrevised, wohere necessary. With additi3nal staffing, technical assistance(para 5.1L), and infrastructural support to be provided under the project,all agencies are expected to be fully zapable of implementing their respectivecomponent,.
Coordination and Management
5.03 Given the large number of agencies involved in implementation andthe strong interdependence among some of the components, I/ successful projectimplementation would depend crucially upon the capacity for a quick resolutionof policy issues and for close monitoring, supervision and coordination ofthe work programs of various agencies.
5.04 The proposed organizational set-up is shown in Chart 20053. A fulltime Project Director (PD) with the rank of Additional Government Agent hasbeen appointed to coordinate various project activities under the generalsupervision of the Government Agent (GA) and the District Minister. TheProject Director's responsibilities include:
1/ Particularly Irrigation and Water Management, Agricultural Extension,Credit, Input supplies and Coconut Development.
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(a) preparation of annual work programs and budgets in collab-oration with the various implementing agencies;
(b) release of funds.and payments for project expenditures;
(c) maintenance of consolidated project accounts;
(d) preparation of claims for reimbursements from IDA credit;
(e) monthly progress review with each of the implementingagencies;
(f) resolution of implementation bottlenecks; and
(g) liaEing with the Project Steerin,7 Committee (para 5.06)on all project matters.
Adequate support staff will be provided to the Project Director for prcpe!rdischarge of his responsibilities.
5.05 A PIoject Coordinating Committee comprising district heads ofthe various project agencies 1/ has been established to discuss and resolveinter-departmental coordination problems. The committee is chaired by theDistrict Mini&iter with the PD as the Tnember-secretary. The committee ilmeet at least once a month.
5.06 To resolve project-related polic9 issues as well as implementationbottlenecks and coordination problems whici could not be resolved at tte dis-trict level, a Project Steering Commiittee comprising heads of the concernedagencies and departments as well as GA Kuranegala and the Project Directorhas been established in Colombo. The committee is chaired by the Secretary,Ministry of Plan Implementation with the Director, Regional Development asits member-secretary. Besides coordination and trouble-shooting at th*highest level, the Committee is responsible for:
(a) reviewing and approving the annual work programs and budgets;
(b) reviewing quarterly progress reports;
(c) ensuring general consistency of policies and practices invarious district development projects; and
(d) liasing with IDA on all project-related policy matters.
The Committee will be serviced by a small Project Cell in the RegionalDevelopment Division. The Cell would work in close cooperation with theProject Director in Kurunegala.
1/ District heads of other agencies may be called to attend committeemeetings, as necessary.
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5.07 To encourage popular participation and mobilize support for theproject, the GA, through the District Minister, would keep the electedrepresentatives from the district, fully briefed on the work program under theproject as well as the progress and unresolved implementation bottlenecks.
5.08 The organizational arrangements described above are consideredparticularly appropriate as they would:
(a) basically work through existing agencies and departmentsrather than create new organizations and/or projectauthorities;
(b) provide strong capability for programming, monitoringand troubleshooting;
(c) be replicable for similar projects in other districts; and
(d) be consistent with the recently established DistrictMinister setup.
5.09 Assurances have been obtained that the Project Coordination Com-mittee and the Project Steering Committee would continue to function withmembership and terms of reference satisfactory to IDA. Assurances have alsobeen obtained that the Government would continue to employ a Project Directorwith experience, qualifications, and functions and responsibilities satis-factory to IDA.
Implementation Schedule
5.10 Overall project implementation would take five years (Charts 20054-55). However, several components -- groundwater exploration, rural electri-fication, health, agricultural input supplies, livestock and agriculturalextension are expected to be substantially complete by the end of the thirdyear. Site surveys for most buildings under the project are already underwayand construction should be completed in about two years. Tender dccumentsfor construction and agricultural equipment have already been prepared andhave been reviewed by IDA. They are expected to be issued by mid-March withawards by July 1979, and site deliveries in late 1979. Staff mobilizationbegan in January 1979 and most new staff is expected to be in place by June1979.
5.11 Much of the supporting infrastructure for agricultural intensifi-cation, e.g., establishment of the T&V extension system, establishment ofnurseries for coconut, cocoa, coffee and pepper, construction of fertilizerstores, construction of seed processing center and strengthening of agricul-tural credit operations, would be in place within two years of starting theproject. Emphasis in the remaining three years would be on rehabilitationof irrigation works, introduction of irrigation water management, consolida-tion of agricultural credit operations and stepping up of the coconut devel-opment program.
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5.12 By September 30 of each year, the Project Director in collaborationwith the various implementing agencies would prepare a detailed work program,together with associated budgetary requirements, for the following calenidaryear. The program would be supported by appropriate maps, charts and dLa-grams and include estimated MLanpower ancl material requirements. Followinga review by the Project Steering Committ:ee, the work program would be sub-mitted to IDA for comments. Assurances have been obtained that by October 31of each year, IDA would receive, for comments, the detailed work program forthe following calendar year.
Monitoring and Evaluation
5.13 Monitoring of the project's progress would be through monthlyreports by the concerned staff of the various implementing agencies. TheProject Director would compile and consolidate the individual reports forreview and discussion at the monthly meeting of the Project CoordinationCommittee. Based on the monthly reports, the Project Director would alsoprepare quarterly progress reports for -review by the Project Steering Com-mittee. To avoid burdening the field staff with excessive paper work, monthlyprogress reports would be kept short and Liclude only data of key importance.Formats for these reports would be workesd cut jointly by the Project Directorand the concerned agencies with assistance from the Progress Control Unitof the Ministry of Plan Implementation. The quarterly reports together withother relevant project records will be used to prepare a comprehensive annualprogress report. Assurances have been obtained that the quarterly progressreports would be submitted to IDA within ore month of the end of the quarterunder review. An assurance has also been cbtained that the annual progressreport would be sent to IDA by March 31 of the following year.
5.14 In view of the prototype nature cf the project, high priority wouldbe given to evaluating the direct and indiTect impact of the project as wellas socio-economic characteristics of the bEneficiaries. Overall responsibil-ity for project evaluation would rest with the Agrarian Research and Train-ing Institute (ARTI), a well established national research organizationwith substantial experience in evaluation cf rural development projects.Benchmark data for the evaluation would cone mostly from two on-going sirveys-- the National Agrarian Survey by ARTI and the Consumer Finance Survey bythe Central Balk (CB). The two surveys would provide rather comprehensiveinformation on production and employment lEvels as well as living standards.Also, as the coverage of the two surveys wculd be countrywide, they wouLdinclude a built-in control group. The two surveys are expected to be rapeatedperiodically -- the ARTI survey every two years and the CB survey every fiveyears. Thus, ,ubsequent surveys would capture the project impact. TheCentral Bank aid the ARTI would be providec any infrastructural support, ifnecessary, for their surveys in the Kurunegala district. Support would alsobe provided for more detailed processing ar.d analysis of the survey dataconcerning Kurunegala. If for any reason ARTI and CB surveys could not berepeated in the future, provision would be made under the project for theircontinuation in the Kurunegala district. Irk addition to benchmark and fDllow-up surveys, small in-depth studies, focussed on specific aspects of theproject would be undertaken by contracting local universities and research
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institutions. The in-depth studies would particularly emphasize analysis ofthe socio-economic factors contributing to or constraining successful adoptionof new techniques by the project area farmers. Assurances have been obtainedthat by December 31, 1979, IDA would receive for review and comments a detailedplan for project evaluation.
Technical Assistance
5.15 To strengthen the implementation capacity of the various projectagencies, the project would include a total of about 6 man-years of indivi-dual consultants as detailed below:
(a) two man-years of a development planning specialist to assistthe Regional Development Division in preparing integrateddistrict development plans for four other districts inSri Lanka;
(b) two man-years of a farm management specialist to advise theDepartment of Agriculture in developing suitable packages forthe extension service, working out arrangements for sale offarm machinery and equipment and planning for improved watermanagement in village irrigation schemes; and
(c) a total of 24 man-months of short-term specialists to advise:
(i) Water Resource Board on hydrological mapping andgroundwater surveys in hard crystalline rock areas usingresistivity techniques: (ii) Department of Census andStatistics in preparation of a District Statistical Hand-book for Kurunegala; (iii) People's Bank and the Bank ofCeylon in strengthening their agricultural credit operations;(iv) Department of Minor Export Crops for improving process-ing and packaging of cocoa; (v) Ministry of Higher Educa-tion on curricula development for vocational education inthe district; and (vi) ARTI in project evaluation.
The estimated costs for consulting services range from US$4,000-7,500 perman-month depending upon the speciality as well as the duration of assign-ment. Average cost would be about US$6,000 per man-month. 1/ The detailedterms of reference for the development planning specialist and the farmmanagement specialist have already been agreed upon. Assurances have beenobtained from GOSL for hiring suitably qualified consultants for the aboveassignments in accordance with timetables, and on terms and conditions,satisfactory to IDA.
5.16 The project would also make provisions for short-term study toursby the selected project staff for observing the design and implementation ofsimiliar developmental projects in neighboring countries.
1/ Consisting of salary, US$3,500; atlowances, US$1,200; travel, US$500;settlement, US$300; and miscellan4-ous, US$500.
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Operation and Maintenance
5.17 Irrigation Works. The Irrigation Department would be responsiblefor O&M of the major irrigation schemes down to the distributary level.Responsibility for O&M of field channels (in major schemes) as well as thevillage irrigation schemes would rest with the benefiting farmers who wouldbe supervised and advised by the Cultivation Officers (COs) of ASD. The COswould receive technical guidance from ID and they would closely coordinatethe O&M work with the agricultural extension program, particularly concerningcropping calendars and water delivery schedules. The mobile pumps for supple-mentary lift irrigation would be operated and maintained by ID.
5.18 For the past several years, O&M standards in irrigation schemes inSri Lanka have been unsatisfactory due to Inadequate budgetary allocationsto ID as well as a lack of suitable instituitional arrangements for mobilizingcooperation from the farmers. GOSL is ser:.ously concerned about poor O&Mstandards in the irrigation schemes and has already decided to double bucdg-etary allocations to ID for maintenance works. For village schemes and forfield channels, ID would oversee the maintenance and water distribution opera-tions organized by the COs. Any deficiencies would be reported to the con-cerned AGA. In case remedial action is not taken, authority would be givento ID to undertake the required maintenance works on force account and toassess appropriate charges against the beneficiaries for collection throughthe AGA.
5.19 Agricultural Equipment, Vehicles and Services. Adequate repairfacilities and workshops exist in the private sector to provide maintenanceservices for farm equipment and vehicles to be sold to farmers and coopera-tives under the project. Motorcycles and bicycles sold to Government staffwould also be maintained by private workshops. O&M of departmentally-ownedvehicles and equipment would be the responsibility of the respective depart-ments. Coconut nurseries would be operated and maintained by CCB while thosefor cocoa, coffee and pepper would be maintained by DMEC. The seed processingcenter for field crops would be managed by the Seed and Planting MaterialsDivision of DA. Godowns and vehicles for fertilizer distribution would bemanaged by CCB and MPCs. Monitoring and coordination of the various farm in-put supply services would be the responsibility of ADA. Estimated incrementalrecurrent expenditures, over the five year project period, for agriculturalextension, the coconut development program and coordination of farm inputsupplies have been included under the project. After project completion,they would be financed through annual budgetary appropriations to DA, CC]3,DMEC and ADA.
5.20 Other Works. The maintenance and repairs of the rehabilitatedrural roads would be done by the Highways Department. Educational buildingsand equipment would be maintained by the Education Department. Drinking waterwells would be maintained by the beneficiaries under supervision by theDepartment of Local Government Services. CEB would be responsible for theO&M of rural electrification schemes as well as the diesel generators forthe Health Department. Health buildings will be maintained by the Buildings
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Departments. Adequate budgetary provisions would be made to the variousagencies for proper O&M of project works and facilities.
5.21 Assurances have been obtained from GOSL that: (i) all majorirrigation works, roads and buildings constructed and rehabilitated underthe project would be maintained in accordance with sound engineering prac-tices and that adequate staff and funds would be provided for this purpose;(ii) inst-.tutional arrangements for O&M of village irrigation schemes andfield channels in major tank schemes would be satisfactory to IDA; and(iii) annual budgetary allocations for the various implementing agencieswould be :;uitably increased to provide for project related recurrerlt expen-ditures.
VI. PRODUCTION, MARKETING AND FINANCIAL ASPECTS
Cropping :ntensities, Yields and Production
6.01 Paddy. Rehabilitation and improvement of some 500 village irri-gation sclhemes under the project would increase the irrigated area in thedistrict by about 10,000 ac. Introduction of improved water managementpractices and easy availability of farm power would enable higher (roppingintensities. Provision of mobile pumps for supplementary lift irrigationduring periods of drought would reduce the risk of crop failures. Finally,the strenlgthening of the agricultural extension service and improved avail-ability o0 farm input supplies would promote higher crop yields. While theyields arie expected to grow considerably even without the project, only minorincreases in cropping intensities would be feasible without the project effortin irrigai:ion and water management. The estimated present and projectedfuture areas, yields and production levels, detailed in Annex 3, Tn.ble 1,are summarized below. The yield levels correspond to the input usage ratesdetailed -n Annex 3, Table 3.
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Table 6.1: PRESENT AND FUTURE: PADDY PRODUCTION
Future Future % Increase )verWithout With Futare
Present Project Project Present Without Project
Asweddumized Area('000 ac) 170 175 180 6 3
of which Irrigated('000 ac) 95 100 110 16 10
Gross Sown Area 239 248 272 14 10('000 ac) /a (140) (142) (151)
Gross Harvested Area 213 222 250 17 13('000 ac) /b (89) (89) (92)
Average Yield 45 49 55 22 12(bushels/ac) /c (0.92) (1.00) (1.12)
Production (M. bushels) /d 8.2 9.2 11.6 41 26(167.3) (187.7) (236.7)
/a Figures in parenthesis are cropping int:ensity percentages (i.e. grosssown area t asweddumized area).
/b Figures in parenthesis give success rat:e percentages (i.e. grossharvested area - gross sown area).
/c On net harvested area basis. By clefin:-tion, in Sri Lanka net harvestedarea is taken as 85% of the gross harvested area. Figures in parenthesisare yields in metric tons per ac.
/d Figures in parenthesis are production .n thousand metric tons.
6.02 Coconut. The improved husbandry program as well as the stepped--upreplantingr/undeplanting program would increase yields and production, partic-ularly on smallholdings in the wet and semi-wet zones. By 1991 when theplantings under the project would come into full bearing, the average per acyield would increase from about 1,700 nuts ./ at present to 2,400 nuts. 2/Without the project, the yield in 1991 is e.pected to increase only to about2,000 nuts, mostly as recovery from thes after-effects of the prolonged drought
1/ The average copra content of a nut is about 200 gms.
2/ Assuming no further intensification of rehabilitation works after projectcompletion in 1983. With intensification substantially higher yieldsshould be possible.
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in the miC-1970s. The total production would increase by about 260 M nuts
(40%) of which 155 M nuts (25%) would be due to the project (Annex 3, Table 2).The present and projected future input usage rates are described in Annex 3,Table 4.
6.03 Other Crops. By 1988 when the coconut intercrops supported under
the project would reach full maturity, the annual production of cocoa, coffeeand pepper is expected to increase by 225 tons, 410 tons and 410 tons, res-pectively. 1/ Due to improvements in agricultural supporting services, yieldincreases of 10-20% are expected in chana crops such as manioc, chillies,coarse grains and pulses. Some expansion in area under pulses and coarsegrains ane' vegetables is also expected as the improved water management pro-gram wouli. promote shifting the more drainable asweddumized areas irom paddyinto upland crops during the yala season. Due to uncertainty about presentproductiorn levels as well as year to year variations in future cropped areas,no attempt has been made to quantify the production increases in c-ena crops.
Market Prospects and Prices
6.04 Marketing. During the past five years, Sri Lanka has imported anannual average of 375,000 tons of rice or about 30% of its total rice consump-tion. Given considerable underutilization of the production potential, aswell as proposed investments for further expansion of asweddumized area, theself sufficiency is likely to improve considerably over the next decade. Thereshould, however, be no problem in absorbing the project-related increase ofsome 32,000 tons, less than 10% of the current import level. The on-goingUSAID program for strengthening marketing, storages and milling operationswould overcome localized constraints, if any.
6.05 Due to depressed production levels and steadily increasirg domesticdemand, coconut exports have suffered a large reduction during the past fewyears. Sii Lanka's share in the world exports is small (about 5%) and exportchannels are well developed. Accordingly, the project related increase of155 M nutu (about 20% of current export levels) would be readily absorbed.
6.06 For cocoa, coffee and pepper, the increase due to the project wouldamount to 10-15% of the current production in Sri Lanka. All three are ex-port crops with Sri Lanka's share amounting to about 1% of the world exports.The channels for marketing and export of these products are adequate and arelikely to improve further as these "non-traditional" items become more pro-minent in Sri Lanka's exports. Short-term consultants have been includedunder the project (para 5.15) to advise on primary processing and packagingof raw cocoa beans as the present stanlards are unsatisfactory.
6.07 Production increases in chena crops would mostly be for local con-sumption within the project area. Due to import restrictions on crops such
1/ The estimated average yield per intercropped ac would be cocoa, 250 lbs.;coffee, 300 lbs; and pepper, 300 lbs.
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as pulses, chillies and onions, the current consumption levels are much below
those in the 1960s and there is a substantial dormant demand in the local
markets. Proximity to the major urban center in Colombo would facilitate
marketing of any local surpluses.
6.08 Prices. Most agricultural prices in Sri Lanka are heavily in-
fluenced by GOSL interventions such as import/export controls and taxes,
consumer/producer subsidies and the various guaranteed price schemes (GPS).
For paddy and coconut, both staple items in the Sri Lanka diet, typically,
domestic prices have been maintained 30-40% below the world market prices.
For coconut, this is achieved through quantitative export restrictions as
well as export taxes and duties. Paddy prices are managed through free and/
or subsidized food rations as well as guaranteed price schemes for the pro-
ducers. The below world-market prices have generally been accompanied by
subsidies on production inputs such as fert:ilizers and irrigation water as
well as on land development works (e.g. coLonization schemes for paddy and
field works fcr coconut rehabilitation and intercropping). GOSL recognizes
the crucial importance of well conceived agricultural price policies and is
trying to evolve improved policies balancing the divergent consumer and pro-
ducer interests while minimizing the budgetary burden. During the past 18
months it has made the following major changes in agricultural prices:
(a) increase of GPS price for paddy from Rs 33 to Rs 40 per bushel; (b) reduc-
tion in free and subsidized food rations; (c) doubling of fertilizer prices
to reflect increased procurement prices following the November 1977 exchange
rate adjustment; (d) a 30-40% increase in subsidies for coconut rehabilitation
works; and (e) an increase of about 30% in domestic coconut prices through
adjustments in export taxes on coconut: pro<lucts. The financial analysis of
the proposed Kurunegala project is based oni current policies. The prices used
in the analysis for various inputs and outputs are shown in Annex 3, Table 5.
Farm Incomes
6.09 Present and future farm income levels have been analyzed for six
different farm models -- three in the wet/semi-wet zones and three in the
dry/semi-dry zones. The models are based on farms of 2.5 ac, 5.0 ac and
12.0 ac representing, respectively the small (65%), medium (30%) and large
(5%) farmers (para 2.14). For models in the wet/semi-wet zones, coconut is
the main crop and most paddy is either rainfed or under minor irrigation.
Models in the dry zone emphasize irrigated paddy. Following the existing
patterns, cropping intensities are assumed to decline somewhat with increase
in the farm size. Average per ac input wage rates are shown in Annex 3,
Tables 3-4. The estimated farm incomes, detailed in Annex 3, Table 6, are
summarized below:
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Table 6.2: PRESENT AND FUTURE FARM INCOMES
IncreaseOver
Future Future FutureWithout With Over Without
Present Project Project Present Project… __-------…(Rs)------------
Wet/Semi-wet Zones
Small Farm (2.5 ac)Gross Value of Production 3,660 4,110 5,210 42 27Production Costs /a 935 1,025 1,295 38 26Net Farm Income /b 2,725 3,085 3,915 44 27
Medium Farm (5.0 ac)Gross Value of Production 6,625 7,470 9,370 41 25Production Costs /a 1,460 1,645 2,195 50 33Net Farm Income /b 5,165 5,825 7,175 39 23
Large Farm (12.0 ac)Gross Value of Production 15,160 17,380 21,400 41 23Production Costs /a 3,405 3,860 5,155 52 34Net Farm Income /b 11,755 13,520 16,245 36 20
Dry/Semi-dry Zones
Small Farri (2.5 ac)Gross V.dlue of Production 4,780 5,190 6,730 41 30Product:.on Costs /a 1,360 1,500 2,015 48 34Net Farm Income /b 3,420 3,690 4,715 38 28
Medium Farm (5.0 ac)Gross Value of Production 8,260 9,250 11,290 37 22Production Cost /a 2,340 2,585 3,340 43 29Net Farm Income /b 5,920 6,665 7,950 34 19
Large Farm (12.0 ac)Gross Value of Production 16,600 19,700 23,540 41 19Production Cost /a 4,720 5,180 6,805 44 31Net Farm Income /b 11,880 14,520 16,735 40 15
/a Excluding cost of family labor./b Including returns to family labor.
- 53 -
6.10 Typically, the gross values of production and the net farm inzomes
would increase by about 40% over the present level and 25% above the future
level expected without the project. 1/ The increases are expected to be
somewhat larger in the wet/semi-wet zones where present income levels are
somewhat lower and the scope for rehabilitation (of coconut) greater. Also,
the gains in net farm incomes are expected to be somewhat lower on larger
holdings as they would have to use more hired labor while on smaller holdings,
due to underemployed family labor, hired labor requirements would be minimal.
The projected increases are considered adequate for active participation of
the beneficiaries in project activities.
6.11 Estimation of financial rates of return on some specific farm
activities under the project (e.g. replanting/underplanting of coconuts, inter-
cropping with cocoa, coffee and pepper and custom operation of farm tractors)
indicates annual returns of 25-40% and hence they should all find ready accept-
ance by the farmers.
Cost Recovery
6.12 It is estimated that about 60% o.' the project-related increase in
paddy production and 90% of the increased coconut production would be marketed.
Assuming continuation of the current pricing policies, the marketed surplus
would mean an annual "transfer" of about Rs 77 M (in 1978 prices) from pro-
ject area farmers to GOSL as well as urban consumers because of differentials
in the domestic and world-market prices of paddy and coconut products. 2/ Net
of the estimated incremental subsidy burden of Rs 23 M per annum on account
of increased fertilizer use and about Rs 4 M per annum as incremental O&M
expenditures, the project "recovery" would amount to about Rs 50 M per annum.
At a discount rate of 10% per annum, the present value of the projected stream
of net transfers from the project area farmers would amount to about Rs 220 M.
This compares to the present value of Rs 195 M of proposed GOSL investmients
under the project. 3/ Thus, continuation of the present policies would lead
to full recovery of all project investments including those in social infra-
structure.
6.13 An analysis of the "project rents"4/ using farm gate prices corres-
ponding to world-market prices indicates that the prevailing agricultural
1/ These figures are averages only. Clearly, some farmers would benefit
much more than others. It is expected, however, that project benefits
would be widely dispersed and at least three-quarters of the farm
families would benefit appreciably.
2/ About 1.4 M bu of paddy at Rs 25 per bu and 140 M coconuts at
Rs 0.30 per nut.
3/ Excluding price contingencies, agricultural credit and farmers' own
contribution to coconut rehabilitation works.
4/ Simply stated, "project rent" is the incremental net value of production
adjusted for uncertainty in farm incomes and appropriate rewards for
additional family labor and farm management requirements.
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price and subsidy policies in Sri Lanka imply rent "recovery" rates of over50%. In view of these and the low income levels of most project beneficiaries,no new charges are stipulated under the project at this time and the projectwould operate within the framework of GOSL policies applicable nationally.For the future, before adopting any major policy changes, GOSL would givedue consideration to their likely impact on "recoveries" on the project in-vestments, Assurances have been obtained that the Government woulcl maintainmutually aigreed cost recovery levels for the project and that in order topromote maximum recovery consistent with adequate incentives to project areafarmers arid its distributive objectives, it would, from time to tinme, reviewand discuss with IDA the various cost recovery policies.
Impact on the Government Budget
6.14 During project implementation, GOSL would contribute about Rs 62 M(net of taxes and duties) for financing part of the project expenditures.However, this would be more than offset by repayment of about Rs 65i M onproject-financed agricultural credit outstanding at project completion. Thebudgetary impact after project implementation would depend greatly upon GOSLpolicies on agricultural prices and subsidies. Assuming the continuation ofthe current policies, the project would generate a net surplus of aboutRs 21 M (constant 1979 prices) per annum as summarized below:
(a) receipt of about Rs 28 M per annum as taxes and duties onincremental coconut exports (assuming conservatively that60% of the project related increase would be exported);
(b) savings of about Rs 20 M per annum due to procurement ofpaddy for ration at below world-market prices (assumingonly one-third of the incremental production is procuredby GOSL);
(c) outlays of about Rs 4 M per innum for incremental O&M ofproject facilities and services; and
(d) outlays of about Rs 23 M per annum for subsidies on incre-mental fertilizer use.
The indirect impact from additional tax revenues from increased activitiesin secondary and tertiary sectors would also be positive although it has notbeen quantified.
VII. BENEFITS AND JUSTIFICATION
General
7.01 The proposed project would assist the Government of Sri Lanka inraising incomes, employment and living standards of some 170,000 farm familiesin the Kurunegala District. The projeczt would also have a beneficial effecton GOSL's balance of payments as well is its budgetary position. Even moreimportantly, the project would help the Government in evolving a low-cost,
- 55 -
quick-yielding, labor-intensive model of regional development for replication
in other areas of the country.
Production and Balance of Payments
7.02 At full development in 1991, successful project implementation would
lead to incremental annual production of about 2.4 M bushels of paddy (32,000
tons of rice) and about 155 M nuts of coconut, both about 25% above the levels
expected without the project. At projected world market prices, the gross
value of incremental paddy and coconut production would be about US$21 M per
annum. Allowing for the added imports of fertilizers, agro-chemicals, fann
equipment and fuels, the project would repr,!sent a net annual foreign ex-
change savings of about US$16 M.
7.03 The production of cocoa, coffee a.d pepper, to be introduced as
intercrops on coconut lands, would each inc:ease by about 300 tons per annum
with prospects of large scale replication aEter the project. The production
of subsidiary food crops such as maize, pulGes, manioc, onions and chillies
would also increase substantially although The expected increments have not
been quantified.
Employment
7.04 The labor-intensive works to be constructed under the project would
create employment of about 4 M man-days durLng project implementation. Another
2.5 M man-days of employment would be created in field works for replanting/
underplanting and intercropping of coconut Lands. More intensive land use and
improved crop husbandry practices under the project would result in additional
annual farm employment of about 5 M man-day; -- 2 M in coconut, 2.2 M in paddy,
0.4 M in coconut intercrops and the rest in chena and home gardens. Increased
agricultural production, through backward and forward linkages, would also
create substantial new employment in activities such as marketing, processing,
transportation, input supplies and consumer services. 1/ All this would help
to relieve the large unemployment and underemployment situation prevailing in
the project area, particularly during the s'Lack periods.
Social Infrastructure
7.05 Social infrastructure financed under the project would improve trans-
port facilities for about 20,000 families currently living in relatively remote
areas, improve drinking water supplies to some 6,000 families in water deficit
areas, supply electric services to about 1,0)00 rural households, provide
better health care for about 20,000 farlrilie3 in remote areas, improve instruc-
tional facilities at about 300 schools, and strengthen vocational education
facilities in the district. These improvements would, by no means, solve all
shortcomings in the district social infrast:ucture. They would however,
satisfy the more urgent needs as perceived by the intended beneficiaries.
1/ Preliminary data from similar areas in Asia indicates that an increase
of US$1,500-2,000 in agricultural production generates one full time
job in the local non-farm sector. On this basis, the project may createas many as 10,000 non-farm jobs.
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Distributive Impact
7.06 Over two-thirds of the project beneficiaries would be small farmerswith operational holdings of 3 ac or less (para 2.14). Their present incomelevels are mostly below the poverty level of US$50 per capita per annum. Im-proved land productivity and increased on-farm and off-farm employment underthe project would enable some 25% of the farm families in the district tomove above the poverty level. Also by siting project-financed social infra-structure mostly in the backward areas of the district, the project would helpreduce intra-district disparities. It should be noted, however, that as mostof the direct benefits from the project would come from increased farm pro-ductivity, the distribution of benefits must largely follow the existing landowership pattern. Thus, even though about two-thirds of the intended bene-ficiaries belong to the "target" group, only about one-third of the directbenefits are expected to accrue to that group. Accordingly, while the propor-tion of farm households below the poverty level is expected to decline sig-nificantly, the overall distributional pattern would remain largely unchanged.
Environmental Impact
7.07 The project would have no adverse environmental impact. Instead,the strengthened agricultural extension service, by educating farmers aboutsafe and proper use of agro-chemicals, would work to improve the environment.Provision of safe drinking water supplies as well as strengthening of pre-ventive health care services under the project would also benefit the projectarea environment.
Economic Fate of Return
7.08 Most of the project componen:s -- irrigation and water management,agricultural extension, coconut develo3ment, agricultural input suFplies andagricultural credit -- are interdependent i.e. the benefits from any one dependupon whether the other are implemented. Thus, the project has to be evaluatedas a package. However, to ensure viability of each individual components, tothe extent feasible and meaningful, benefits anid costs have also been analyzedseparately. The economic analysis is based on the following assumptions:
(a) Prices: For internationally traded goods, the farm gateprices used in the economic analysis are derived fromprojected 1985 world market prices expressed in 1979currency values. Appropriate adjustments have been madefor freight, handling and prDcessing and quality differ---entials. For non-tradeable ,ervices such as handling,processing and transportatioln, a standard conversionfactor of 0.85 has been applied to reflect the prevailingregime of import taxes and qiotas. To reflect the pre-vailing unemployment and underemployment in the projectareas, the farm labor requirements are valued at a sea-sonally adjusted wage rate virying from 40-80% of thepeak market rate. The price assumptions are summarizedin Annex 3, Table 5.
- 57 -
(b) Investment Costs. All investment costs except price con-tingencies (Rs 81.9 M) and agricultural credit (base costRs 106.6 M) are included in the economic analysis. Alsoincluded in the analysis are about Rs 56 M of post-projectexpenditures for completion of coconut development worksstarted under the project as well as Rs 12 M for imputedcost of family labor used in coconut development works.On this basis, the project investments are estimated atRs 345 M of which Rs 115 M would be in foreign exchange.Adjusting the local cost component with a standard conver-sion factor of 0.85, the project investments are estimatedat Rs 310 M.
(c) Benefits. The direct project benefits would be increasedprocuction of paddy, coconut, coFfee, cocoa, pepper andsubsidiary food crops as well as improved living conditionsdue to investments in social inf^astructure. No attempt hasbeen made to put an economic value on project-induced improve-ment in living conditions. Also, for simplicity and to beconservative, the analysis has been based only on incrementalproduction of paddy and cocconut :Annex 3, Tables 1-2), valuedrespectively at Rs 156 M and Rs L70 M per annum at full devel-opment.
(d) Crop Production Costs. Estimated present and projected inputusage rates for paddy and coconu:: are shown in Annex 3, Tables3-4. Aggregate incremental production costs, detailed inAnnex 3, Table 7, are estimated .it Rs 62 M and Rs 39 M perannum for paddy and coconut, respectively.
(e) O&M Costs. The incremental O&M costs during the project imple-mentation are included in the inrestment costs. Subsequentannual O&M costs for project works and services are estimatedat Rs 4.7 M 1/ (Rs 4 M in econom:c terms) and have beenincluded separately in the analysis.
(f) Phasing of the Benefits. Projecil implementation would bephased over five years. However much of the supportinginfrastructure for agricultural :ntensification would be inplace within two years of the project start. Accordingly,it is expected that project bene:Tits are expected to developrapidly, particularly for paddy. Full development is ex-pected two years after project itiplementation, in case ofpaddy. Due to the expected seven year lag before new coconutplantings mature, full deve:Lopment of coconut-related bene-fits would be only in year 13 of the project. Consideringthese, the time phasing of benefits is estimated to be asfollows:
1/ Rs 1.8 M for irrigation works, Rs 1.4 for agricultural extension, Rs 1.3for coconut development services and Rs 0.2 M for rural roads.
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Table 7.1: PHASING OF BENEFITS
Year 1 2 3 4 5 6 7 8 9 10 11 12 13-30------------(% of full development benefits)------------
Paddy 0 5 10 25 45 65 85 100 100 100 100 100 100Coconut 0 0 5 10 25 40 55 70 80 85 90 95 100
Conservatively, production inputs are assumed to precede pro-duction benefits by one year in case of paddy and two yearsin case of coconut.
7.09 The estimated costs and benefits streams for the project are shownin Annex 3, Table 8. The economic rate of return is estimated to be 32%.Analysis of separate project components e.g. irrigation and water management,coconut re'planting/underplanting, coconut intercropping indicates returnsof 25-50% depending upon assumptions regarding allocations of various costsand benefits.
Sensitivity and Risks
7.10 Sensitivity tests indicate that the project remains viable under avariety of adverse assumptions about c3sts and benefits. Results from someof the important tests are given below:
Table 7.2: SENSITIVITY ANALYSIS
Alternative Rate of Return (%)
(a) basic case 32(b) basic case but excluding inv,zstments
in social infrastructure /l 34(c) two year delay in realizaticn of full
project benefits 28(d) 20% increase in investment costs 29(e) 20% decrease in incremental p)addy
production 28(f) 20% decrease in incremental coconut
production 29(g) 20% increase in paddy production costs 30(h) 20% increase in coconut production costs 31(i) (e) + (f) 24(j) (g) + (h) 29(k) (e) + (f) + (g) + (h) 21(1) (d) + (e) + (f) + (g) + (h) 19(m) standard conversion factor = 1.0 30(n) standard conversion factor = 0.70 33(o) all farm labor valued at full market
wage rate 29
/a This would reduce project inwestments (in economic terms) fromRs 310 M to Rs 260 M, i.e. b- about 16%.
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7.11 Given the complexity of the project and the difficulties asso,iatedwith actions in politically sensitive and institutionally demanding areas,such as irrigation water management and rural credit discipline, it wouLdbe unrealistic to expect a problem-free implementation. An inherent risk inmultisectoral projects such as this concerns the ability to achieve necessarycoordination in implementing the various interrelated components. It is hopedthat the newly established District Minister set-up, as well as the detailedpreparatory work undertaken to define functions and responsibilities of thevarious implementing agencies, would keep such problems to a minimum. As afurther safeguard, the project organization has been designed with a view toprovide quick feedback and with a capability for early resolution of imple-mentation bottlenecks, at the highest levels, if necessary.
7.12 On tae technical side, the most Eerious risk concerns successfu]Ladoption of intercropping practices by coconut smallholders who have nothad much experience with these so far. The availability of field-testeltechnical packages for extension work is also limited at this stage. Theproject has been designed with these constraints in mind and the intercroppingprogram has been kept very modest. It is hoped that the limited approachunder the project would open the prospects of successful replication on alarge scale after the project. However, even if the component were not tosucu-(l, the project would remain viable.
7.13 Finally, the project faces some risk due to shortage of professionaland technical staff of various kinds, particularly design and constructionengineers. During the past few years there has been a large scale emigrationof such staff to Africa and the Middle East.. Additionally, domestic require-ments have increased dramatically because of programs such as the Mahawelidevelopment. The Government is keenly aware of the problem and is trying tosolve it through more attractive salaries and incentives as well as acceleratedtraining programs. As the project requirements of technical personnel arerather small in relation to the overall domestic demand and availability andas the Government attaches a very high priority to this project, no majorproblem is foreseen in satisfying the project needs. Also, higher than normaloutside technical assistance has been included under the project to overcomethe more serious bottlenecks.
Project Replicability
7.14 The project would be eminently suitable for replication in mostother districts of Sri Lanka. Financially, the project represents an invest-ment of about US$110 1/ per farm family spi-ead over a five year period. Ex-tension of the project to the estimated 2 M farm families in Sri Lanka wouldrepresent an investment of about US$220 M4 (in 1979 prices) -- a rather sub-stantial sum, but well within the means of Sri Lanka, particularly in viewof the expressed interest of several cother aid agencies to finance suchprojects. Administratively, the project is designed to work through existinginstitutions and organizations rather than to bypass them by creating AttU-l)- 'Iew boards or project authorities. Accordingly, the administrativestructure could be rapidly mobilized in other districts of Sri Lanka. Finally,paddy and coconut, the focus of the proposed project, are two crops importt.1'i;
1/ Excluding agricultural credit ancl price contingencies.
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in practically all districts of Sri Lanka and therefore the proposed invest-ment package could be quickly adapted to the needs and potential of otherdistricts. Thus, the project experience would be applicable on a country-widebasis and successful project implementation would open up the prospects ofaccelerated rural development on a large scale.
VIII. AGREEMENTS REACHED AND RECOMMENDATIONS
8.01 Assurances have been obtained from GOSL that:
(a) selection of village irrigation schemes for rehabilitationunder the project would be in accordance with criteriaagreed upon by IDA (para 3.10);
(b) organizational set-up and the work program for the agri-cultural extension service in the district would besatisfactory to IDA (para 3.23);
(c) agricultural credit operations under the project includingthe procedures for prosecution of defaulters would bein accordance with rules, regulations and procedures satis-factory to IDA. Also, separate subsidiary agreements,satisfactory to IDA, would be executed between GOSL andthe People's Bank and the Bank of Ceylon (para 3.30);
(d) all agencies involved in project implementation would pre-pare and maintain separate accounts for the project inaccordance with sound accounting practices. Such accounlts,together with disbursement documents, would be auditedannually by independent auditors acceptable to IDA. TheProject Director (para 5.04) would consolidate the accouintsfrom the various agencies and submit to IDA certified copiesof the audited accounts together with the auditor's reportswithin six months of the end of each fiscal year. The auditreport would include, inter alia, a statement verifying l:hatfunds disbursed by IDA against statements of expenditure;had been used for the purpose for which they were provided.The project accounts on agricultural credit would continueto be audited for five years after the end of projectimplementation (para 4.11);
(e) the Project Coordination Committee and the Project SteeringCommittee would continue to function with membership andterms of reference satisfactory to IDA. Assurances havealso been obtained that the Government would continue toemploy a Project Director with experience, qualifications,and functions and responsibilities satisfactory to IDA(para 5.09);
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(f) by October 31 of each year, IDA would receive, for comments,the detailed work program under the project for the fol-lowing calendar year (para 5.12);
(g) quarterly progress reports would be submitted to IDA withinone month of the end of the quarter under review. Also,annual progress reports would be sent to IDA by March 31of the following year (para 5.13);
(h) by December 31, 1979, IDA would receive for review andcomments a detailed plan for project evaluation (para5.14);
(i) suitably qualified consultants would be hired for assistancein project implementation in accordance with time tables,and on terms and conditions, satisfactory to IDA (para 5.15);
(j) (i) all major irrigation works, loads and buildings con-structed and rehabilitated under the project would be main-tained in accordance with sound engineering practices andthat adequate staff and funds would be provided for thispurpose; (ii) institutional arrargements for O&M of villageirrigation schemes and field channels in major tank schemeswould be satisfactory to IDA; and (iii) annual budgetaryallocations for the various implementing agencies would besuitably increased to provide for project related recurrentexpenditures (para 5.21); and
(k) the Government would maintain mutually agreed cost recoverylevels for the project and that in order to promote maximumrecovery consistent with adequate incentives to project areafarmers and its distributive objectives, it would, from timeto time, review and discuss with IDA the various cost recoverypolicies (para 6.13).
8.02 A condition of credit effectiveness would be that GOSL would haveexecuted separate subsidiary agreements, satisfactory to IDA, with thePeople's Bank and the Bank of Ceylon regarding agricultural credit operationsunder the project (para 3.30).
8.03 With the above assurances and conditions, the proposed project issuitable for an IDA credit of US$20.0 million on standard IDA terms. TheBorrower would be the Democratic Socialist Republic of Sri Lanka.
March 8, 1979
ANNEX 1
SRI LANKA
KURUNEGALA RURAIL DEVELOPMENT PROJECT
Project Area Details
Table 1 Climatic data
Table 2 : 3jor Irrigation Schemes: Hydrological Data
Table 3(a)-3(b) : C-op Water Requirements
Table 4 Trends in Paddy Areas, Yields and Production
Table 5 Trends in Areas and Production ofSubsidiary Food Crops
Table 6 Status of Agricultural Lending in theProject Area
62
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Climatic Data
Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Annual
Mean Monthly Rainfall - (in)
Kurunegala 2/ 3.86 2.35 6.70 10.36 7.74 6.43 4.40 4.53 4.30 12.99 11.08 6.75 81.49Wariyapola 3/* 3.72 1.81 6.25 9.28 7.10 4.06 2.55 3.09 3.64 12.08 10.74 6.79 71.11Maha-Illuppalama 4/ 5.54 1.91 4.64 7.24 4.18 1.33 1.43 1.61 3.05 9.46 9.96 8.06 58.45
Mean Monthly Temperature (°F)
Kurunegala 2/ .Max. 86.5 89.9 97.8 91.1 89.1 86.5 86.3 86.8 87.8 86.8 85.6 85.6 88.3Min. 69.8 69.6 72.0 74.6 76.1 75.7 75.2 75.0 74.5 73.3 71.8 70.8 73.2
Maha-Illuppalama 4/ Max. 84.0 87.9 92.2 91.9 90.1 89.4 89.9 90.9 92.0 89.3 85.6 83.8 88.9Min. 69.0 68.3 70.5 73.7 75.8 76.0 75.0 75.1 74.9 73.2 71.0 69.8 72.7
Anuradhapura 4/ Max. 83.5 87.2 91.7 91.9 90.9 90.0 90.9 91.4 92.2 89.3 85.8 83.3 89.0Min 69.2 69.3 71.5 74.4 76.3 76.4 75.8 75.5 75.2 73.6 71.5 70.3 73.2
Average Humidity (%)Kurunegala 2i 74.0 70.0 69.5 77.0 76.0 78.0 76.5 75.5 75.0 79.0 80.5 78.5 76.0Maha-Illuppallama 4/ 83.0 73.0 64.0 79.0 76.0 74.0 73.0 72.0 76.0 67.0 82.0 89.0 75.7
Anuradhaputa 4/ 77.0 70.0 65.0 70.0 71.0 67.0 64.0 64.0 62.0 72.0 79.0 80.0 70.0
Sunshine Hours
Batalagoda 2/ 9.1 8.5 10.4 76 C 7.1 o.r 6.4 4.8 6.3 2.3 7.4 10.0 7.4Maha-Illuppallama 4/ 9.7 2.2 11.0 9.0 9.9 10.1 10.4 10.7 7.5 6.7 9.3 8.0 8.7
Anurtadhapura 4/ 7.0 7.8 8.3 8.4 7.9 7.9 7.7 7.4 7.8 6.4 6.2 5.9 7.4
1/ Based on 30 years data (1931-1'-60). 3/ Semi-dry zone,2/ Semi-wet zone. 4/ Dry zone.
* Other data except rainfall, not available.
ol
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Major Irrigation Schemes: Hydrological Data
a aa a i
: < E co : co C hX 1-4 a.na ao.-4 S-4 a ao:5 .- c .0 -4 co-aw ; X e 3 Cd i 10 00 " 14 -4 >Item Unit a s a 5 -C c t 0 ¢4 0 a
Tank Capacity at F.S.L. ac ft 5,578 20,800 19,000 2,475 5,900 4,840 7,556 4,800 7,000
Tank surface area ac 590 1,875 825 337 660 605 730 540 780
Catchment Area Tank Sq mi 38.0 71.25 24.65 11.0 66.0 5.00 21.0 16.0 7.0
Catchment Area Anicut Sq mi - - - - - 80.00 530.0 - -
Irrigated Area (R) 1/ Ac 1,457 1,600 4,141 947 840 7,600 4,467 1,024 2,145
Irrigated Area (A) 2/ ac 1,820 2,000 5,176 1,184 1,050 9,500 5,584 1,280 2,682
Head on Outlet at F.S.L. ft 19.00 21.00 27.00 14.00 15.50 12.91 17.90 17.00 24.00
Sluices (L.B) 3/ No./cfs 1/6.9 1/20.25 1/190 1/14.7 1/86 1/2896.5 2/33 1/86 1/10capacity
Sluices (R.B) 4/ No./cfs 1/32.0 1/75.00 1/190 -- 2/20 2/147.8 1/10 1/91capacity
Spillway capacity (L.B) cfs 1,350 906 --- 855 18,425 1,090 5,453 - 1,730
Spillway capacity (R.B) cfs 7,777 11,083 7,446 1,462 -- 1,635 1,056 2,950 --
Bund Length ft 2,600 4,700 2,900 5,200 5,500 4,400 5,463 2,420 4,100
Bund Height ft 15 30 40.5 20 21.5 19.34 24 27 27
1/ Irrigated areas as r.cc.r&z.21 Actual Irrigated area based on encroachments @ about 25% of area.3/ Left Bank4/ Right Bank
o
-PI
SRI LANKA
KURUNEGAIA RURAL DEVELOPMENT PROJECT
IrriRation and Water ManaRement
1/ 2/Crop Water Reqyi$iements per acre (Without Project) by a2pth aod Period (in)
M A H A Y A L ASePt. Oct. Nov. Dec. Jan. Feb. Mar. Total Apr. May June July AuR. Sea. Total Grand2nd 1st 2nd 1st 2nd lst 2nd 1st 2nd 1st 2nd lst 2nd (Maha) 1st 2nd lst 2nd 1st 2nd 1st 2nd lst 2nd lst (Yala) Total
Evaporation 3.80 3.20 3.00 2.20 2.10 2.20 2.30 2.30 2.40 2.40 2.60 3.00 3.20 34.70 3.00 2.90 3.10 3.10 3.40 3.50 3.70 3.80 3.80 3.80 3.70 37.80 n.so
Crop Factor (No.) 0.00 0.21 0.43 0.66 0.89 1.12 1.14 1.14 1.11 1.08 0.85 0.62 0.40 0.20 0.21 0.44 0.67 0.89 1.13 1.14 1.11 0.88 0.65 0.42
Consumption Use 0.00 0.67 1.29 1.46 1.87 2.47 2.63 2.62 2.67 2.60 2.21 1.86 1.28 23.63 0.60 0.61 1.37 2.08 3.03 3.96 4.22 4.22 3.35 2.47 1.56 27.47 51.10
Land Preparation 1.00 1.50 1.50 1.50 1.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7.00 1.00 1.50 1.50 1.50 1.50 0.00 0.00 0.00 0.00 0.00 0.00 7.00 14.00
Farm Losses 0.50 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 1.75 1.25 1.00 24.75 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 1.75 1.25 23.25 48.00
Field Water Requirements 1.50 4.42 5.04 5.21 5.62 4.72 4.88 4.87 4.92 4.85 3.96 3.11 2.28 55.38 3.85 4.36 5.12 5.83 6.78 6.21 6.47 6.47 5.60 4.22 2.81 57.72 113.10
Dry Zone
Effective Rainfall 0.82 2.70 2.82 2.90 2.98 2.90 2.80 1.50 1.38 0.60 0.66 1.14 1.20 24.40 2.24 2.20 1.20 1.14 0.16 0.14 0.35 0.37 0.50 0.58 0.80 9.68 34.08
Requirements 0.68 1.72 2.22 2.31 2.64 1.82 2.08 3.37 3.54 4.25 3.30 1.97 1.08 30.98 1.61 2.16 3.92 4.69 6.62 6.07 6.12 6.10 5.10 3.64 2.01 48.04 79.02
Tank Release with 457.Conveyance Losses 4/ 1.23 3.13 4.03 4.20 4.80 3.31 3.79 6.13 6.44 7.73 6.00 3.58 1.96 56.33 2.93 3.93 7.13 8.52 12.03 11.04 11.13 11.09 9.27 6.62 3.65 87.34 143.67
Semi Wet Zone3/
Effective Rainfall 1.38 3.82 3.96 3.30 3.35 2.05 2.00 1.22 1.10 0.70 0.71 2.00 2.02 27.61 3.14 3.08 2.35 2.30 1.96 1.90 1.34 1.30 1.42 1.30 1.20 21.29 48.90
Field Irri-gation Requirements 0.12 0.60 1.08 1.91 2.27 2.67 2.88 3.65 3.82 4.15 3.25 1.11 0.26 27.77 0.71 1.28 2.77 3.53 4.82 4.31 5.13 5.17 4.18 2.92 1.61 36.43 64.20
Tank Release with 457Conveyance Losses 4/ 0,22 1.10 1.96 3.47 4.12 4.84 5.26 6.64 6.94 7.55 5.90 2.02 0.47 50.49 1.29 2.33 5.04 6.42 8.76 7.84 9.33 9.4 7.60 5.30 2.93 66.24 116.73
1/ With (a) Maha cultivation from October to March and 5 sowing periods staggering.(b) Yala cultivation from April to September and 5 sowing periods staggering.(c) 44t months (135 days) paddy variety for Maha and 34 months (105 days) for Yala.
2/ With two periods for each month.3/ 60 percent of mean rainfall (Anuradhapura Station for Dry Zone and Kurunegala for Semi Wet Zone).4/ Conveyance and distribution losses assumed 457. (losses through existing tanks, canals and distribution system and losses d- t-
0,
SRI LANKA
KURUNEGAIA RURAL DEVELOPMENT PROJECT
Irrigation and Water Management
1/ 2/Crop Water Requirements per acre (With Project) by Month and Period (in)
M A HA Y AL A
Aug. Sept. Oct. Nov. Dec. Jan. Feb. Total ei_. ar4E1F Aporii Y June July Aug. Total Grand2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd lst wia 2nd lstt 2nd 1st 2nd Ist 2nd Ist 2nd 1st 2nd Ist (Yala) Total
Evaporation 3.80 3.70 3.80 3.20 3.00 2.20 2.10 2.20 2.30 2.30 2.40 2.40 33.40 2.60 3.00 3.20 3.00 2.90 3.10 3.10 3.40 3.50 3.70 3.80 3.80 39.10 72.50
Crop Factor (No.) 0.00 0.35 0.71 1.09 1.13 1.15 1.15 1.12 1.08 1.03 0.67 0.33 0.00 0.35 0.75 1.11 1.14 1.15 1.10 1.05 0.70 0.33 0.00 0.00
Consumptive Use 0.00 1.30 2.70 3.49 3.39 2.53 2.42 2.46 2.48 2.37 1.61 0.79 25.54 0.00 1.05 2.34 3.33 3.31 3.57 3.41 3.57 2.45 1.22 0.00 0.00 24.25 49,79
Land Preparation 2.00 3.00 2.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7.00 2.00 3.00 2.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7.00 14.oo
Farm Losses 0.00 1.25 1.75 2.25 2.25 2.25 2.25 2.25 2.25 1.75 1.25 1.00 20.50 0.00 1.25 2.25 2.25 2.25 2.25 2.25 2.25 1.75 1.00 0.00 0.00 17.50 38.00
Field Water Requirements 2.00 5.55 6.45 5.74 5.64 4.78 4.67 4.71 4.73 4.12 2.86 1.79 53.04 2.00 5.30 6.59 5.58 5.56 5.82 5.66 5.82 4.20 2.22 0.00 0.00 48.75 101.79
Dry Zone
Effective Rainfall 0.58 0.80 0.82 2.70 2.82 2.90 2.98 2.90 2.80 1.50 1.38 0.60 22.78 0.66 1.14 1.20 2.24 2.20 1.20 1.14 0.16 0.14 0.35 0.37 0.50 11.30 34.08
Field Irriga-E z . . _ w C s C I i; 6 1.42 4.75 5.63 3.04 2.82 1.88 ..so i.oi i.93 2.62 1.48 1.19 30.26 1.34 4.16 5.39 3.34 3.36 4.62 4.52 5.66 4.06 1.87 0.00 0.00 38.32 68.58
Tank Release with 30%Conveyance Losses 4/ 2.03 6.78 8.04 4.34 4.03 2.68 2.42 2.59 2.77 3.74 2.12 1.70 43.24 1.92 5.94 7.70 4.77 4.80 6.60 6.46 8.08 5.80 2.67 0.00 0.00 54.74 97.98
Semi Wet Zone
Effective Rainfall 1.30 1.20 1.38 3.82 3.96 3.30 3.35 2.05 2.00 1.22 1.10 0.70 25.38 0.71 2.00 2.02 3.14 3.08 2.35 2.30 1.96, 1.90 1.34 1.30 1.42 23.52 48.90
Field Irriga-tion Requirements 0.70 4.35 5.07 1.92 1.68 1.48 1.32 2.66 2.73 2.90 1.76 1.09 27.66 1.29 3.30 4.57 2.44 2.48 3.47 3.36 3.86 2.30 0.88 0.00 0.00 27.95 55.61
Tank Release with 30%Conveyance Losses 4/ 1.00 6.22 7.24 2.74 2.40 2.12 1.88 3.81 3.91 4.14 2.52 1.56 39.54 1.84 4.71 6.53 3.48 3.54 4.96 4.80 5.51 3.28 1.26 0.00 0.00 39.91 79.45
1/ With (a) Maha cultivation from September to February and 3 sowing periods staggering only.(b) Yala cultivation from March to August and 3 sowing periods staggering only.(c) 44 months (135 days) paddy variety for Maha and 34 months (105 days) for Yala.
2/ With two periods for each month.3/ 60 percent of mean rainfall (Anuradhapura Station for Dry Zone and Kurunegala for Semi Wet Zone). E
4/ Conveyance losses assumed 307 (after rehabilitation of canal, distribution system and introduction of water management). SM
,,
SRI IANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
1/Trends in Paddy Areas. Yields and Production
Item 1960 1965 1970 1975 1976 1977Major Minor Rain- Total Major Minor Rain- Total Major Minor Rain- Total Major Minor Rain- Tota-l Major Minor Rain- Total Major Miaor Rain- Total
fed fed fed fed fed fed
Asweddumized Area 16 60 70 146 19 22 69 150 21 68 71 160 22 69 74 165 22 70 75 167 23 72 75 170('000 ac)
Gross Sown Area('000 ac)Maha 15 53 69 137 18 53 67 138 21 60 70 151 12 36 65 113 16 45 67 128 21 64 70 155Yala 8 10 24 42 iz 20 Z4 56 17 36 41 94 12 27 52 91 9 25 31 65 16 40 59 115
Total 23 63 93 179 30 73 91 194 38 96 111 245 24 63 117 204 25 70 98 193 37 T17. 129 270
Gross Harvested Area('000 ac)Maha 15 50 64 129 18 45 59 122 21 60 69 150 11 21 46 78 15 40 64 119 21 61 65 149Yala 8 10 23 41 11 15 20 46 17 34 40 91 11 24 50 85 8 7 8 23 16 39 57 112
Total 23 60 87 170 29 60 79 1688 8 94 109 241 22 45 96 163 23 47 72 142 37 100 122 261
Yield (Bushels/ac)Maha 31.5 29.5 48.5 64.0 26.5 39.0 39.0 67.0 40.0 44.0 45.5 61.5 51.0 47.0 50.5Yala NA NA NA 34.5 HA HA NA 31.0 HA NA NA 42.5 51.0 32.0 40.0 38.0 41.0 34.0 27.0 32.0 52.5 38.5 41.0 42.0
Total 32.5 30.0 46.5 59.0 31.5 390 39.0 61.5 40.0 42.5 44.5 60.5 46.0 4.5 4
Production (M Bushels)Maha NA NA HA 3.5 HA KA NA 3.1 NA NA NA 6.2 0.6 0.5 1.5 2.6 0.9 1.4 2.4 4.7 1.1 2.6 2.5 6.2Yala 1.2 1.2 3.3 0.5 0.7 1.7 2.8 0.3 0.2 0.2 0.7 0.8 1.3 2.0 4.1
Total 4.7 4.3 9.5 1.1 1.2 3.2 5.4 1.2 1.6 2.6 5.4 1.9 3.9 4.5 10.3
NHA.: Not available.1/ Source: Department of Census and Statistics.2/ On net harvested area basis.
ANNEX 1Table 5
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Trends in Areas and Production ofSubsidiary Crops 1/
Cropped Area 2/ Total Production('000 ac) ('000 tons)
Item 1973 1974 1975 1976 1973 1974 1975 1976
Cereals 3/ 19.5 25.0 26.0 20.5 2.5 3.5 4.0 3.5
Pulses 4/ 9.5 11.0 12.0 13.0 1.5 1.5 1.5 2.0
Oilseeds J/ 13.0 18.5 16.0 16.0 1.5 2.0 1.5 2.0
Root Crops 6/ 72.5 94.0 110.0 47.0 75.5 156.0 300.5 165.0
Other Crops 7/ 16.0 21.0 23.0 20.0 7.5 7.0 15.0 10.0
Vegetables / 21.0 19.5 24.5 25.5 8.5 9.5 12.5 13.5
Commercial Crops q/ 20.0 22.5 18.5 18.5 13.5 33.0 38.5 22.0
Fruits 10/ 32.0 34.0 34.5 27.0 124 125 140 101
1/ Source: District Statistical Officer, Kurunegala. Area and Productionfigures subject to large errors and hence should be treated as indicative only.
2/ Total of Maha and Yala crops. The acreages for various crops are notadditive because of widespread mixed cropping in chena cultivation.
3/ Mostly kurakkan, maize and sorghum.4/ Mostly green grams and cowpeas.51 Mostly gingelly (sesamum).6/ Mostly manioc, and sweet potatoes.7/ Mostly chilltes and onions.8/ Mostly ash plantains, pumpkins and brinjals.9/ Mostly arecanut, cocoa, coffee, pepper and spices.10/ Mostly jak fruit, limes, oranges, pineapple and mangoes. Production is in
million numbers.
68
SRI LANKA
KURUNEGELA RURAL DEVELOPMENT PROJECT
- Status of Agricultural Len:ing in the Project Area /
2/ 3Peopie's Bank- Bank of Ceylon-
Overdues OverduesAmount Amount No. Amount as % of Amount Amount No. Amount as X of
No. of Disbursed Recovered of De- Overdue Disburse- No. of Disbursed Recovered of De- Overdue Disburse-Year Borrowers (Rs'000) (Rs'000) faulters (Rs'000) ments Borrowers (Rs'000) (Rs'O00) faulters (Rs'000) ments
1968 NA 6705 5856 NA 849 13 - - - - - -
1969 NA 2821 1962 NA 859 30 - - - - - -
1970 NA 3322 1006 NA 2316 70 - - - - - -
1971 NA 564 216 NA 348 62 - - - - - -
1972 NA 1074 463 NA 611 57 - - - - - -
1973 2105 958 486 1416 472 49 - - - - - -
1974 7318 6823 4145 4208 2678 39 16 18 6 10 12 66
1975 1506 1074 603 '97 471 hh A ?9n 200 344 44
1976 425 514 303 176 211 41 1539 1624 1152 616 472 29
1977 605 451 112 351 339 75 1980 2230 1447 771 783 35
1978 3346 3394 1694 NA 1700 50 2963 3469 2286 1077 1183 34
1/ As of 12/31/78.
2/ Records prior to 1968 not readily available.
3/ No agricultural lending by Bank of Ceylon prior to 1974.
o'
ANNEX 2
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Detailed Cost Estimates, Schedule of Expenditures,Equipment List and Procurement Schedules
List of Tables
Annex 2 Tables 1-2 Snmmary
Annex 2(a) Tables 1-3 I-rigation and Water Management
Annex 2(b) Tables 1-7 : Coconut Development
Annex 2(c) Tables 1-3 : Agricultural Extension
Annex 2(d) Tables 1-3 : Agricultural Input Supplies
Annex 2(e) Tables 1-4 : Agricultural Credit
Annex 2(f) Tables 1-2 : Livestock
Annex 2(g) Tables 1-2 Groundwater
Annex 2(h) Tables 1-3 : Rural Roads
Annex 2(i) Tables 1-2 : Rural Water Supply
Annex 2(j) Tables 1-3 : Rural Electrification
Annex 2(k) Tables 1-2 : Heialth
Annex 2(1) Tables 1-2 : Education
Annex 2(m) Tables 1-3 : Project Coordination and Investigations
70
ANNEX 2Table 1
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Cost Estimates and Schedule of Expenditures
Component-Wise Summary
Component Total 1979 1980 1981 1982 1983
------------------- (Rs M)-
Irrigation and WaterManagement 124.50 13.55 24.70 28.10 29.15 29.00
Coconut Development 81.75 7.40 11.60 14.50 19.95 28.30
Agricultural Extension 20.00 4.00 7.00 4.20 2.30 2.50
Agricultural InputSupplies 20.90 5.05 8.25 4.30 2.40 0.90
Agricultural Ciedit 118.05 9.55 22.70 26.70 29.35 29.75
Livestock 3.10 1.55 1.05 0.35 0.15 -
Groundwatpr Exploration 9.65 3.15 5.20 1.30
Rural Roads 17.00 3.95 5.00 2.60 2.60 2.85
Rural Water Supply 13.35 1.70 3.40 2.50 2.80 2.95
Rural Electrification 15.60 3.60 5.95 6.05 - -
Health 6.40 2.35 2.15 0.65 0.70 0.55
Education 14.50 2.25 4.25 3.95 2.10 1.95
Project Coordination &Inver :igations 20.220 6.05 8.40 3.35 1.15 1.25
' o r1' 465.0rl 64.15 109.65 98.55 92.65 100.00
71
ANNEX 2Table 2
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Cost Estimates and Schedule of Expenditures
Item-Wise Summary
Item Total 1979 1980 1981 1982 1983-----------------(Rs M)-------------- --
Civil Works 100.50 9.35 23.25 28.50 20.95 18.45
Field Works 35.45 1.45 3.15 6.40 10.20 14.25
Equipment & Vehicles 65.75 31.35 30.80 3,10 0.50 -
Crop Production Loans 62.00 1.65 8.50 12.45 17.50 21.90
Loans for Farm Equip.& Vehicles 44.60 6.10 12.10 11.60 9.10 5.70
Technical Assistance 10.45 2.05 4.20 3.40 0.50 0.30
Engineering &Administration 42.90 6.20 9.60 10.00 8.70 8.40
Base Cost 361.65 58.15 91.60 75.45 67.5 69.00
Physical Contingencies 21.45 2.95 5.50 4.90 4.05 4.05
Price Contingencies 81.90 3.05 12.55 18.20 21.15 26.95
Total 465.00 64.15 109.65 98.55 92.65 100.00
72
ANNEX 2 (a)
Table 1
SRI LANKA
KURUNEGALA RUFAL DEVELOPMENT PROJECT
Irrigation and Water Management
Cost Estimates anl Schedule of Expenditures
Total Cost Total Annual ExpendituresLocal Foreign Total 1979 1980 1981 1982 1983------------------- (Rs M) ----------------------------
I. Civil Works
Rehabilitation of major tanks 1/including control structuresfor water management 12.90 6.30 19.20 1.00 3.00 6.20 5.30 3.70
Rehabilitation of minor tanks 36.70 3.30 40.00 2.00 6.50 10.50 10.50 10.50
Lift Irrigation works 0.20 0.10 0.30 0.10 0.20 - - -
Sub-total 49.a0 9.70 59.50 3.10 9.70 16.70 15.80 14.20
II. Equipment 2/
Construction equipment 0.90 9.90 10.80 4.40 6.40 - - --
Transport vehicles 0.40 3.60 4.00 2.50 1.50 - - -
Other equiDment 0.10 0.60 0.70 0.70 - - -
Sub-total 1.40 14.10 15.50 7.60 7.90 - - -
III. Technical Assistance
Overseas Study Tours - 0.20 0.20 - 0.10 0.10 - -
In-Service TAs Training 3/ 0.50 - 0.50 0.30 0.20 -
Sub-total 0.50 0.20 0.70 0.30 0.30 0.10 - _
IV. Engineering & Administration 4/ 8.70 1.00 9.70 1.10 1.60 2.40 2.40 2.20
V. Base Cost 60.40 25.00 85.40 12.10 19.50 19.20 18.20 16.40
VI. Physical Contingencies 5/ 7.00 2.70 9.70 0.80 2.00 2.40) 2.30 2.20
VII. Price Contingencies 6/ 26.10 3.30 29.40 0.65 3.20 6.50 8.65 10.40
VIII. Total Cost 7/ 93.50 31.00 124.50 13.55 24.70 28.10 29.15 29.00
I/ See Table 3 for details.2/ See Table 2 for details.
3/ Departmental trainiag of Technical Assistants.4/ Fifteen percent of I. In addition includes Rs 0.70 M for undertaking hydrological studies.5/ Fifteen percent of I and five percent of II.61 Assuming following price escalation f,actors: 1979 1980 1981 1982 1983
Foreign Costs 1.03 1.07 1.16 1.23 1.30Local Costs 1.0R 1.21 1.33 1.46 1.61
7/ Includes about Rs.3,3 M in taxes and duties.
73
SRI LANKA Table 2
KURUNEGALA RURAL DEVELOPMENT PROJECT
Irrigation and Water Management
Equipment List and Procurement Schedule
CIF/Ex-factory Procurement Schedulel/
Quan- Unit Total Method ofItem tity Cost Cost Procurement a b c d e f
(US$000)- _Construction Equipment
1. Crawler tractor (100 h.p.) 1 45.9 45.90 ICB 12/78 3/79 6/79 7/79 9/79 2/80
2. Tractors (4-Wheel) 10 8.3 83.00 ICB " " " " " 1/80
3. Dragline (3/4 c.y.) withshovel attachment 1 65.0 65.00 ICB " " 2/80
4. Air compressors 2 9.0 18.00 ICB " " " 1/80
5. Generators 7 1.0 7.00 ICB 12/79
6. Sludge pumps 15 2.1 31.50 ICB 12/78 3/79 6/79 7/79 9/79 12/79
7. Water pumps (4") 25 1.5 37.50 ICB " " " 'A .1
8. Trailer mounted pumps (6")complete with deliveryand suction piping 20 3.5 70.00 ICB " " " " i t
9. Trailer mounted pumps (12")complete with delivery andsuction piping 2 5.5 11.00 ICB " " " " " 1/80
10. Concrete vibrators 10 0.6 6.00 ICB " " " " "
11. Spare Parts 20% (1 to 10) lot 70.0 70.00 ICB " " " 2/80
12. Trailer for tractors 20 2.0 40.002/ ICB " C B " 12/79
13. Concrete mixers 8 2.7 21.60 ICB 12/78 3/79 6/79 7/79 9/79
14. Vibrating rollers 5 8.5 42.50 ICB " " " " " 1/80
15. Vibrating tampers 10 1.0 10.00 ICB " " "
16. Jack hammer 4 0.9 3.60 ICB " I " . " 10/79
17. Mobile workshop unit 1 20.0 20.00 ICB 12/79 3/79 6/79 7/79 9/79 1/8018. Truck mounted service unit4L 1 65.0 65.00 ICB " " " " "
19. Workshop equipment & tools 3/LS - 8.00 PS _ 12/79Sub-total 655.60
Transport Vehicles
1. Jeeps (w-wheel Drive) 16 7.1 113.c0 ICB 12/78 2/79 5/79 6/79 8/79 11/792. Trucks (5-Ton 5 12.2 61.00 ICB " " " " " "3. Station Wagon 1 10.7 10.70 ICB " " "
4. Motor Cycles 40 1.0 40.00 PS - - - - - 10/795. Bicycles 50 0.1 5.00 2/ PS - - - - - 12/79
Sub-total 230.30Office and Survey Equipment
1. Survey equipment LS - 25.00 PS - - _ _ - 10/79
2. Office equipment LS - 10.00 PS ^ - - - -
3. Current meters & Gauges LS - 10.00 PS - - - - "
Sub-total 400Total 930.90
1/ a. Specifications and bid package to IDA.
b. Invitation to bids.c. Opening of bids.d. Evaluation report to IDA.e. Award of contract.f. Delivery at site.
2/ Includes local component worth about $25,000,3/ For servicing needs of the whole project and shall be used by Irrigation Department
after project completion.74
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Irrigation and Water Management
Major Tanks Rehabilitation (Civil Works)
MAIN CANALS
Rock Excavation cu yd 13.50 - - - _ - _ 9250 - 9,250Desilting ,,4.60 777 4,207 6,000 962 1,335 2o4,000 101,615 2,482 4,445 325,823Embankment Repair/V,, 4,10 1,517 750 - 11,100 1,485 - 13,388 11,805 5,075 45,120Wall Concrete/Lining ,.255,00 39 _ _ 4 193 1,980 24 424 2,664
Wall MasonrY" 118.00 363 - _ _ _ 1,832 1,184 - - 3,379Roadway Gravelling "9.20 - 3,700 9,730 1,906 1,185 1,480 15,866 2,408 3,145 39,420M4etalling mi 105,000,00 - - - - - - - - 6.5 65Turn outs
Screw Type Gates 4" 1,200.00 1 1 1 9 __ 1 21 _2 366"' 1,325,00 3 7 6 20 2 5 30 1 7 819ll 1,535.00 2 4 8 3 2 2 24 8 4 57
12" 1, 640. U0 1 4 4 5 5 1 8 3 8 3415" 2, 690.00 - 2 5 - I _ IO _ 1818" 3,740.00 - - 2 -- - 4 3 4 1324Ri 5,525.00 1 4 - - - I - - 6
D-Gates 4,000.00- 420,000.00 - - - - 5 22 6 1 1 35Regulators 12,000.00 3 8 7 6 _ 23 12 - 7 66Regulator-cuR-Bridge 23,000.00 - I - 3 1 - 1 1,0 6 10Walna-e Outlet Structi re 25,000.00 3 5 6 5 2 18 10 2 7 58Culverts 11,500.00-23,000.00 - 8 - - - 1 1 - 2 - 3,37Foot Bridge 1,150.00 1 3 9 1,906 2 18 3Trough 23,000.00 1 - _ - - - - - ISilt rTraps 7,500.00 1 1 _ 9 _ 10 15 - 2 25
DISTRIBUTARIES AND BRANCHES
Desilting cu yd 4.60 555 3,245 - 12,025 2,942 963 593 20,323Embankment Repair 4.10 962 - 18,654 - 5,323 - - 24,939Roadway Gravelling 9.20 481 ---- - 3,886 - 4,367Turn Outs (S.T. Gates) 4" No. 1,200.00 4 - 5 - - 31 3 4 56
6" 5 1,325.00 7 20 69 - - 9 8 - 22 1359"Ge " 1,535.00 6 2 31 - 5 2 5 12 8 66
12" R 2,0640.00 6 3 8 6 - 3 1 4 1 2615 2,0690.00 - I - - - - 6 1018r " 3,740.00 - - I - - - - - 2 324" o 5,525.00 - - 2 - - - - 2
D-Gates 6,000-7,000.00 2 - - 31 9 - 42Concrete and masonry cu yd 9.20 - - 2,448 - - - - - 2,448
HEAD WORKS
Earthwork cu yd 4.10 - 3 - 32,560 - 1 2 7,955 5 40,515Riprap Protection " 4.10 2 - - 370 1,485 - 5 - 888 2,743
Anicut Gates No. 46,000-86,000.00 - --- - 3 3Road Gravelling cu yd 9.20 - - - - - - - - 407 407
Cost - (Rs. Million)(i) Otehabilitation Works 0N39 0.83 163 0.90 0.28 3.49 3.47 0.86 3.15 15
(ii) Cor.trol structures a-nd other works
for Water Management 0.20 1.00 0.80 0-30 0.85 0.40 0.30 015 0.20 48Total Cost 0159 1.83 2.43 1.20 1.13 3.89 1 19426
l/ Rates are net of capital cost of equipment. ConFor Headworks. C
MEA WORK
Cos - R.Pilin
SRI LANKA Table 1
KDJRUNEGALA RURAL DEVELOPMENT PROJECT
Coconut Development
Cost Estimates and Schedule of Expenditures
Total Cost Total Annual ExpendituresItem Local Foreign Total 1979 1980 1981 1982 1983
-------- (-______-_----QRs M)----_______________----
I. Civil Works
Land Dev. and Bldgs. 1/for Coconut Nurseries- 1.20 0.40 1.60 0.45 0.60 0.55 - -
Land Dev. and Bldgs.for IntercropNurseries 2/ 0.35 0.15 0.50 0.10 0.20 0.20 - -
Land Dev. for Demons3VPlots for Intercrops- 0.15 0.10 0.25 0.10 0.15 - - -
Bldg. for Dist. Officeof CCB 0.20 0.10 0.30 0.15 0.15 - - -
Bldg. for Dist. Officeof DME 0.15 0.05 0.20 0.10 0.10 - - -
¶ib-total 2.05 0.80 2.85 0.90 1.20 0.75 - -
4/II. Field Works-
Rehabilitation Works 18.45 5.35 23.80 1.00 1.95 4.15 6.85 9.85
Tntercropping 9.60 2.05 11.65 0.45 1.20 2.25 3.35 4.40
Sub-total 28.05 7.40 35.45 1.45 3.15 6.40 10.20 14.25
Ill. Equipment-5/
Equip. and Vehiclesfor CCB 1.40 2.80 4.20 2.20 2.00 - - -
Equip. and vehiclesfor DME 0.35 1.80 2.15 1.15 1.00 - - -
Sub-total 1.75 4.60 6.35 3.35 3.00 - - -
IV. Technical Assistance
Overseas Study Tours-/ - 0.40 0.40 - 0.10 0.20 0.10 -
Consulting Services -/ 0.05 0.30 0.35 - 0.15 0.20 - -
Sub-total 0.05 0.70 0.75 - 0.25 0.40 0.10 -
V. Engineering and Admin.'/
Incremental RecurrentExpenditures (CCB) 5.50 2.20 7.70 0.60 1.20 1.95 1.95 2.00
Incremental RecurrentExpenditures CDME) 3.00 1.25 4.25 0.30 0.65 1.10 1.10 1.10
Sub-total 8.50 3.45 11.95 0.90 1.85 3.05 3.05 3.10
VI. Base Cost 40.40 16.95 57.35 6.60 9.45 10.60 13.35 17.359,
VII. Physical Contingencies-/ 2.55 1.05 3.60 0.40 0.60 0.70 0.85 1.05
VIII. Price Contingencies - / 17.90 2.90 20.80 0.40 1.55 3.20 5.75 9.90
IX. Total Cost 60.85 20.90 81.75 7.40 11.60 14.50 19.95 28.30
1/ 8 New nurseries at Rs 190,000 each and upgrading of 2 existing nurseries at Rs40,000 each.
2/ 5 Nurseries at Rs 60,000 each. 10/ AsuminZg following price escalation factors:3/ 50 Plots at Rs 5,000 each.4/ See Tables 2 and 3 for details 1979 1980 1981 1982 19835/ See Tables 4 and 5 for details Foreign Costs 1.03 1.07 1.lk 1.23 1.30
6/ Rs 0.20 M each for CCB and DME. tocal Costs 1.08 1.21 1.33 1.46 1.61
7/ 3 man-months of specialist on cocoaprocessing at US$7,500 per man-month 11/ Includes about Rs 1.4 N in taxes and duties.
8/ See Tables 6 and 7 for details9/ 10% of I and V and 5% of II and III.
76
ANNEX 2(b)Table 2
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Coconut Development
Field Works
Item Total 1979 1980 1981 1982 1983
A. Area to be Improved (ac)
(i) Replanting/underplanting-/ 15,000 500 1,000 2,500 5,000 6,000(ii) Contour Drains 20,000 2,000 3,000 5,000 5,000 5,000(iii) Removal of Excess Palms 40,000 3,000 7,000 10,000 10,000 10,000
B. Development Costs (Rs M)
(i) Replanting/Underplanting 2/
Year 1 (Planting at 3)Rs 7Q0 per ac) 10.50(25)-3 0.35 0.70 1.75 3.50 4.20
Year 2 (Maintenance andvacancy filling atRs 300 per ac) 2.70(50) - 0.15 0.30 0.75 1.50
Year 3 (Maintenance andvacancy filling atRs 700 per ac) 2.80(25) - - 0.35 0.70 1.75
Year 4 (Maintenance atRs 300 per ac) 0.45(50) - - - 0.15 0.30
Year 5 (Maintenance atRs 700 per ac) 4/ 5/ 0.35(35) - - - - 0.35
Sub-total 16.8O(36) 0.35 0.85 2.40 5.10 8.10
(ii) Contour Drains 6/ 5.00(5) 0.50 0.75 1.25 1.25 1.25(at Rs 250 per ac)
(iii) Removal of Excess Palms 7/(at Rs 50 per ac) 2.00(5) 0.15 0.35 0.50 0.50 0.50
23.80(22) 1.00 1.95 4.15 6.85 9.85
1/ Incremental to current average replanting of 2,000 ac per annum.2/ Excluding cost of family labor estimated at Rs 300, 100, 300, 100, 300, 100 and
100 respectively for Years 1 - 7.3/ Figures in parenthesis are the estimated foreign exchange percentages.4/ Costs of Rs 400 and Rs 600 would be incurred during years 6 and 7
respectively. Positive cash flow from Year 8 onwards.5/ Completion of field works started under the project would require
a further investment of Rs 38.7 M after the project.6/ Average of 10 chains per ac._/ Average of 3 palms per ac.
77
ANNEX 2(b)Table 3
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Coconut Development
Field Works
Item Total 1979 1980 1981 1982 1983
A. Area to be Planted (ac)
(i) Cocoa 2,000 100 200 400 600 700CLi) Coffee 3,000 200 400 600 800 1,000(Ciil Pepper 3,000 200 400 600 800 1.000(iv) Other Cropae- 2,000 - 200 400 600 800
Sub-total 10,000 500 1,2-" 7,nWn 29,800 3,500
B-. Development Costs 2/ 3/ (Re. M)
(i) Cocoa
Year 1 (Planting atRs 8O per ac) 1.60(10)-' 0.08 0.16 0.32 0.48 0.56
Year 2 (Maintenance)at Rs 400 per ac) 0.52(30) - 0.04 0.08 0.16 0.24Year 3 (Maintenanceat Rs 456 per ac) 0.32(50) - 0.05 0.09 0-18
Sub-total 2.44(19) 0.08 0.20 0.45 0.73 0.98
(ii) Coffee
Year 1 (Planting atRs 900 per ac) 2.70(15) 0.18 0.36 0.54 0.72 0.90
Year 2 (Maintenanceat Rs 400 per ac) 0.80(30) - 0.08 0.16 0.24 0.32
Year 3 (Maintenanceat Rs 350 per ac) 0.42(40) - 0.07 0.14 0.21
Sub-total 3.92(20) 0.18 0.44 0.77 1.10 1.43
(ivi) Pepper
Year 1 (Plantingat Rs 1,000 per ac) 3.00(10) 0.20 0.40 0.60 0.80 1.00
Year 2 (Maintenanceat Rs 350 per ac) 0.70(15) - 0.07 0.14 0.21 0.28
Year 3 (Maintenanceat Rs 500 per ac) 0.60(25) - 0.10 0.20 0.30
Sub-total 4.30(13) 0.20 0.47 0.84 1.21 1.58
(iv) Other Crops
CRs 500 per ac) 1.00 (20) - 0.10 0.20 0.30 0.40
Total 11.66(17) 0.46 1.21 2.26 3.34 4.39
1/ e.g. Banana, pastures etc.2/ Excluding cost of family labor estimated, on the average, to be as follows:
Year Cocoa Coffee Pepper
1 300 400 5002 150 200 2003 100 150 400
3/ Positive cash flows from Year 4 onwards.4/ Figures in parenthesis are the estimated foreign exchange percentages.5/ Completion of field works started under the project would require a
further investment of Rs 3.14 M after the project.
78
ANNEX 2(b)Table 4
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
CQSgkut. Dvelpfkent
Equipmeq% List an[ Procurement Schedule (CCB)
CIF/Ex-Factory Method of 1,Unit Total Procu- Procurement Schedule-
Item Quantity Cost Cost rement a b c d e f
-(US$'000)-
Farm Equipment
4-Wheel Tractor withTrailer and Implements 10 10.0 100.0 ICB 12/78 2/79 5/79 6/79 8/79 11/79
Water pump(2") andAccessories 10 2.0 20.0 ICB " " .
Farm Implements LS 7.0 Ps - - - - -
Sub-total 127.0
Transport Vehicles
Jeeps (4-Wheel Drive) 3 7.1 21.3 ICB 12/78 2/79 5/79 6/79 8/79 11/79
Trucks (5-Ton) 2 12.2 24.4 ICB
90cc Motorcycles 30 1.0 30.0 PS - - - _ _ 12/79
Sub-total 75.7
Other Equipment
Furniture for Nurseries LS 2.0 - - - - - 12/79
Furniture and OfficeEquipment for HeadOffice and RegionalOffices 2/ I'S 10.0 PS -- 10/79
Equipment for FieldStaff 3/ LS 3.0 PS - - - - 10/79
Sub-total 15.0
Total 217.7 4/
1/ a - Specifications & Bid package to IDA.- b - Invitation to Bids.
c - Opening of Bids.d - Evaluation Report to IDA.
e - Award of Contract.f - Delivery at Site.
2/ Includes 4 typewriters, 8 desk calculators, 4 pocket calculators,10 steel cabinets,10 steel almirah and miscellaneous furniture.
3/ Includes 60 pocket levels and 60 measuring tapes.
4/ Includes goods of local origin worth about US$35,000. 79
ANNEX 2(b)
Table 5SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Coconut Development
Equipment List and Procurement Schedule (DME)
CIF/Ex-Factory Method of 1,Unit Total Procu- Procurement Schedule-
Item Quantity Cost Cost rement a b c d e f
-(us$o000)-
Farm Equipment
Water Pumps (2") andAccessories 10 2.0 20.G !CB 12/78 2/79 5/79 6/79 8/79 11/79
Hand Sprayers 10 0.1 1.0 PS - - - - - "
Farm Implements LS 4.0 PS - - - - _
Sub-total 25.0
Transport VehiclesTrucks (3-Ton) 5 10.0 50.0 ICE 12/78 2/79 5/79 6/79 8/79 11/79
Passenger Car 1 6.0 6.0 ICB " If t I 1F it
Jeeps (4-Wheel Drive) 2 7.1 14.2 ICB " " 'f f
Mini bus 1 13.0 13.0 ICB " " " it
90 cc Motorcycles 10 1.0 10.0 PS - - - _ - 12/79
Bicycles 10 0.1 1.0 PS - - - - "
Sub-total 94.2
Other Equipment
Office Equipment iFurniture LS 7.0 PS - - _ _ - 10/79
Audio-visual Equipment LS 3.0 PS - - - _ - 10/79
Sub-total 10.0
Total 2/ 129.2
1/ a - Specifications & Bid package to IDA.b - Invitation to Bids.c - Opening of Bids.d - Evaluation Report to IDA.e - Award of Contract.
f - Delivery at Site.2/ Includes goods worth about US$15,(000 o local origin. 80
ANNEX 2(b)Table 6
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Coconut Development
Incremental Recurrent: Expenditures (CCB)
Average TotalItem No. Unit Cost Annual Cost
A. Salaries & Benefits for Additional Staff -----(Rs.'000)-------
1. District Head Office
Assistant GM 1 16.0 16.0Accountant 1 10.0 10.0Nursery Officer 1 10.0 10.0Staff Assistant 1 10.0 10.0Coconut Dev. Officers 5 8.0 40.0Technical kssistant 1 7.0 7.0Clerk/Typi3ts 10 6.0 60.0Roneo Oper3tors 2 5.0 10.0Drivers 4 5.0 20.0Laborer 2 3.0 6.0
2. Nurseries
Assistant gursery Officer 10 7.0 70.0Tractor Oparators 10 5.5 55.0Watchers 10 5.0 50.0Laborers 40 3.0 120.0Casual LabDr LS 200.0
Sub-total 684.0B. Other Expenses
1. District Fead Office/Regional Offices
Fuels and Oils LS 20.0Repairs ard Maintenance LS 25.0Field Visits/Travelling Allowances LS 125.0Publicity Materials LS 25.0Stationery and Miscellaneous LS 20.0
2. Nurseries
Seednuts LS 1,000.0Polythene Bags LS 40.0Fuels and Oils LS 150.0Repairs and Maintenance LS 100.0Fertilizers LS 25.0Agro Chemicals LS 10.0Travelling Allowances LS 50.0Stationerv and Miscellaneious LS 50.0
Sub-total 1,640.0
Total Incremental Cost Per Annum 2,324.0Less Revenues from Sale of Nurseries
(600,000 seedlings at Rs 0.50 each) (300.0)Transiort charges on seedlings. 50.0
Net Incremental Cost Per Annum 1,974.0
Total Incremental Cost during the Proec/ 7,698.6
or say Rs 7.70 14
1/ Assuming 30% and 60% expenditures during Ist and 2nd years and 100% expenditures ineach of the last three years. 81
ANNEX 2(b)Table 7
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Coconut Development
Incremental Recurrent Expenditures (DME)
Average TotalItem No. Unit Cost Annual Cost
----- (Rs. '000)…-------A. Salaries & Benefits for Additional Staff
1. District Head Office
Field Operation Officer 1 13.0 13.0Publicity Officer 1 10.0 10.0Economist 1 10.0 10.0Clerk Typists 2 5.0 10.0Drivers 4 5.0 20.0
2. Nurseries
AIS 5 6.0 30.0KVSs 10 5.0 50.0KVSs ~ ~ ~~~~ ~~~~~5 5.0 25.0Drivers 5 3.0 15.0Cleaners 530 1.Laborers 100 3.0 300.0
3. Demonstration Plots
AIs 5 6.0 30.0KVSs 10 5.0 50.0
Sub-total 563.0
B. Other Expenses
1. District Head Office
'\uel & Oils LS 20.0Rtepairs & Maintenance LS 25.0Field Visits/Travelling Allowances LS 25.0Publicity Materials LS 50.0Stationery and Miscellaneous LS 10.0
2. Nurseries
Plrimary Planting Material LS 200.0Cattle Manure Top Soil and sand (lorcy loads) 600 1.0 60.0Fertilizers LS 10.0I'olythene Bags (M) 1 100.0 100.0Agro-chemicals LS 5.0Oils and Fuels LS 75.0Repairs & Maintenance LS 50.0Travelling Allowances LS 25.0Stationery & Miscellaneous LS 30.0
3. Demonstration Plots
Field Visits/Travelling Allowances LS 25.0Stationery & Miscellaneous LS 10.0
Sub-total 708.0Total Incremental Cost Per Annum 1,283.0
Iess Revenues from Sale of Nurseries 200.0
1'et Incremental Cost Per Annum 1,083.0
lotal Incremental Cost During the Project -/ Rs 4.25 M
I/ Assuming 30% and 60% of the expenditure; during Ist and 2nd years and 100%expenditures in the last three years.
82
ANNEX 2(c)Table 1
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Agricultural Extension
Cost Estimates and Schedule of Expenditures
Total Cost Total Annual ExpendituresItem Local Foreigin Total 1979 1980 1981 1982 .983
------------- (Rs M) ----------------I. Civil Works
Staff Quarters inRemote Areas 1/ 1.50 0.70 2.20 0.30 1.00 0.90 - -
Extension of DAEO'sOffice 0.15 0.05 0.20 0.20 - - - -
Sub-total 1.65 0.75 2.40 0.50 1.00 0.90 _ _
II. Equipment 2/
Transport Ve,iicles 3/ 0.80 3.00 380 1.80 2.00 - - -Other Equipm.:nt 0.20 0.15 0.35 0.10 0.25 - _ -
Subtotal 1.00 3.15 4.15 1.90 2.25 - - -
III. Technical Ass;istance
Overseas Study Tours - 0.50 0.50 - 0.10 0.20 0.10 0.10Farm Management Advisor 4/ 0.35 1.50 .Il 0.40 1.00 0.45 - -
Sub-total 0.35 2.00 2.35 0.40 1.10 0.65 0.10 G.10
IV. Engineering 4, Administration
Implementati(,n of CivilWorks 5/ 0.35 - 0.35 0.10 0.15 0.10 - -Incremental Lecurrentcost for Exten. Service 6/ 5.00 1.00 6.00 0.70 1.10 1.40 1.40 1.40
Sub-total 5.35 1.00 6 35 0.80 1.25 1.50 1.40 1.40
V. Base Cost 8.35 6.90 15 25 3.60 5.60 3.05 1.50 1.50
VI. Physical Contingencies 7/ 0.80 0.30 1 10 0.20 0.35 0.25 0.15 G.15
VII. Price Contingencies 8/ 3.00 0.65 3 u5 0.20 1.05 0.90 06 0,j2
VIII. Total Cost 9/ 12.15 7.85 20.00 4.00 7.00 4.20 2.30 2.50
1/ 3 quarters for AOs at Rs 100,000 each.10 quarters for SMSs at Rs 45,000 each;15 quarters for AIs at Rs 45,000 each; and25 quarters for KVSs at Rs 30,000 each.
2/ See Table 2 for details.3/ Including 50% Import Duty on motor cycles and bicycles which are to be sold to the staff.4/ 3 man-years at US$60,000 per year.5/ 15% of I.6/ See Table 3 for details.7/ 10% of I and IV and 5% of II.8/ Assuming following price escalation factors:
1979 1980 1981 1982 1983
Foreign Costs 1.03 1.07 1.16 1.23 1.30Local Costs 1.08 1.21 1.33 1.46 1.61
9/ Includes about Rs 0.7 M in taxes and duties.
83
ANNEX 2(c)Table 2
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Agricultural Extension
Equipment List aad Procurement Schedule
CIF/Ex-Factory Method 1UniFat Ita of Procu- Procurement Schedule-
Item Quantity Cost ocst rement b h d e f-- (US $'300) -
Transport Vehicles
Jeeps (4-wheel Drive) 12 7.1 .35.2 ICB 12/78 2/79 5/79 6/79 8/79 11/79
Mini buses 2 13.0 26.0 ICB " " " " if
90cc Motorcycles 55 1.0 55.0 PS - - - - - 12/79
Bicycles 270 0.1 27.0 PS - - - - -
Sub-total 193.2
Other Equipment
Audio-visual Eguipment LS - 5.0 ICB/PS 12/78 1/79 4/79 5/79 6/79 12/79
Office Equipment & Furniturefor the District Office andTraining sub-centers LS - '4.0 PS - - - _ - 10/79
Raincoats 350 3.0 PS - - - -
Sub-total 32.0
Total 225.2Z/
1/ a - Specifications and Bid package to IDA.b - Invitation to Bids.
c - Opening of Bids.
d - Fvaluation Report to IDAe - Award of Contract.f - Delivery at Site
2/ Of these goods work about US$10,000 equivalent are expected to be of local origin.
84
ANNEX 2 (c)Table 3
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Agricultural Extension
Incremental Recurrent Expenditures
Average TotalItem Quantit7 Unit Cost Annual Cost
--- (RS'000)-----(-_
A. Salaries and Benefits forAdditional Staff
AOs 3 13.0 39.0
SMSs 9 10.0 90.0
AIs 4 6.0 24.0
KVSs 140 5.0 700.0
Sub-total 853.0
B. Other Expenses
Fuels and Oils 1/ 90.0
Repairs & Maintenance-/ 60.0
Field Visits/TravellingAllowances LS 200.0
Stationery LS 50.0
Training Sub-Centers 10 5.0 50.0
Trials/Demons Plots LS 50.0
Miscellaneous LS 50.0
Sub-total 550.0
Total Incremental Cost Per Annum 1,403.0
say Rs 1.4 M
Total Incremental Cost Duringthe Project 3/ Rs 6.0 M
1/ 12 Jeeps each at Rs 6,000 per annum and 2 mini buses each at Rs 8,000 per annum.2/ 12 Jeeps each at Rs 4,500 per annum and 2 mini buses each at Rs 4,000 per annum.3/ Assuming 50% and 80% of the full expenditures during 1st and 2nd years and 100%
expenditures in the last three years.
85
ANNEX 2(d)Table 1
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Agricultural Input Supplies
Cost Estimates and Schedule of Expenditures
Total Cost Total Annual ExpenfituresItem Local Foreign Total 1979 1980 1981 1982 1983
------------------------(Rs M)---------------------------
I. Civil Works
Land Development andBligs. for SeedPr)cessing Center 1.50 0.50 2.00 0.50 1.00 0.50 -
Cons-. of/ertilizerstzres - 1.20 0.50 1.70 0.2n 0.50 0.50 0.5(! _
,ub-total 2.70 1.00 3.70 0.70 1.50 1.00 0.5( -
II. EguIment 2/
Tran;port Vehicles 1.80 4.20 6.00 3.00 3.00 - - -
Othe: Equipment 0.60 3.25 3.85 0.35 1.50 1.50 0.50 -
Sub-total Z.40 7.45 ).85 3.35 4.50 1.50 0.50 -
III. R&iieering andAdi1iis tration
Implementation ofCivi: Works 3/ 0.55 - 0.55 0.10 0.25 0.15 0.05 -
Incremental RecurrentCost for ADA 4/ 2.00 o.55 '.55 0.35 0.55 0.55 0.55 0.55
'ub-total 2.55 0.55 :1.10 0.45 0.80 0.70 0.60 0.55
IV. Base Cost 7.65 9.00 1' .65 4.50 6.80 3.20 1.60 0.55
V. PhysicalContingencies 5/ 0.65 0.5,5 .20 0.30 0.45 0.25 0.15 0.05
VI. PriceContingencies 6/ 2.20 0.85 3.05 0.25 1.00 0.85 0.65 0.30
VII. Total Cost 7/ 10.50 10.40 20.90 5.05 8.25 4.30 2.40 0.90
1/ For MPCs as well as ASCs.2/ See Table 2 for details.3/ 15% of I.4/ See Table 3 for details.5/ 10% of I and III and 5% of II.6/ Assuming following price escalation factors:
1979 1980 1981 1982 1983Foreign Costs 1.03 1.07 1.16 1.23 1.30Local Costs 1.08 1.21 1.33 1.46 1.61
7/ Includes about Rs 1.35 M in taxes and duties.
86
Table ZSRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Agricultural Input Supplies
Equipment List and Procurement Schedule
CIF/Ex-Factory Method of 1/Unit Total Procu- Procurement Schedule -
Item Quantity Cost Cost rement a b c d e f- (US$'O00)--
Transport Vehiclesl/
Jeeps (4-wheel Drive) 11 7.1 78.1 ICB 12/78 2/79 5/79 6/79 8/79 11/79
Trucks (5 ton) 7 12.2 85.4 ICB " " "
90cc Motorcycles 50 1.0 50.0 PS - - _ _ - 12/79
Bicycles 520 0.1 52.0 PS - - - -
Tractor (45 HP)and Trailer 1 9.0 9.0 PS - - - - -
Sub-total 274.5
Other Equipment
Equipment for SeedProcessing Center LS 60.0 PS - - - - - 12/79
Mammoties 50,000 0.0Q3 150.0 PS _ _ _ _ _ I
Office Equipment forADA's ElectoralManagers LS 20.0 PS - - - - - 10/79
Sub-total 230.0
Total-/ 504.5
1. a - Specifications & Bid package to IDA.b - Invitation to Bids.c - Opening of Bids.d - Evaluation Report to IDA.e - Award of Contract.f - Delivery at Site
2/ One jeep, two trucks, one bicycle and one Tractor-trailer for the SeedProcessing Center. Rest of the vehicles are for ADA and ASD.
3/ Includes goods worth about US$20,000 equivalent which are oflocal origin.
87
ANNEX 2(d)Table 3
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Agricultural Input Supplies
Incremental Recurrent Expenditures (ADA)
Average Total AnnualQuantity Unit Cost Cost------------(Rs '000)----------------
A. Salaries and Benefits for Additional StaffDeputy Provincial Director 1 25.0 25.0
Electoral Agricultural Managers 9 20.0 180.0Clerks 9 5.5 49.5
Drivers 9 5.0 45.0
Sub-total 300.5
B. Other Expenses
9Q.QFuels and Oils 1/
Repairs and Maintenance 2/ 67.5
Travelling Allowances LS 50.0
Stationery and Miscellaneous LS 54.0
Sub-total 261.5
Total Incremental Cost Per Annum - -562.0
Total Incremental Cost during the Project 3/ *- Rs 2.55 M
1/ 15 Jeeps at Rs 6,000 per annum2/ 15 Jeeps at Rs 4,500 per annum3/ Assuming 507Zof the full expenditures in the first year and 100%
for the subsequent four years.
88
ANNE( 2 Ae)Table 1
SRI LAMRA
KURULEGALA RURAL DEVELOPNENT PROJECT
Agricultural Credit
Cost Estimates and Schedule of Exwenditures
Total Cost Total Annual ExpendituresItem Local Foreign Total 1979 1980 1981 1982 1983
------------ (Rs N) ----- ------ _-_--________---____I/
I. Crop Production Loans-l
Short-term loans for Food 7.50 14.00 21.50 0.50 4.50 5.00 5.50 6.00Crops
Medium-term loans forCoconut Rehabilitation lQ.50 30.00 40.50 1.15 4.00 7.45 12.00 .]2
Sub-total 18.00 44.00 62.00 1.65 8.50 12.45 17.50 21.90
Ir, Loans for Farm Equlpmentand Vehicles 2Farm Equipment 8.60 30.00 38.60 4.60 9.10 10.10 9.10 5.70
Vehicles for MPCSs 3.10 4.40 7.50 .50 3.00 1.50 -
Sub-total 11.20 33.40 44.60 6.10 12.10 11.60 9.10 5.70
III. Vehicles and OfficeEquipment for Banks 3/ 0.40 0.50 0.90 0.70 0.20 - - -
IV. Technical Assistance
Consulting Services 4/ O.G5 0.30 0.35 0.10 0.10 0.15 - -
Oveiseas Staff Training _ 0.30 0.30 - 0.10 0.10 0.10 -
Sub-total 0.05 0.60 0.65 0.10 0.20 0.25 0.10 -
V. Engineering & Admin.
Preparation of AgroIdentity Cart 0.30 0.20 0.50 0.30 0.20 - - -
Preparationr cf Debt Inv em-tories & S_ iF-Tent of Del,t- 0.30 - 0.30 0.30 - - - -
Sub-total 0.60 0.20 0.80 0.60 0.20 - - -
VI. Base Cost 30.25 78.70 108.95 9.15 21.20 24.30 26.70 27.60
VII. Price ConLi±nencies -1 3.75 5.35 9.10 0.40 1.50 2.40 2.65 2.15
VIII. Total CoLt-/ 34.00 84.05 118.05 9.55 22.70 26.70 29.35 29.75
1/ See Table 2 for details.2/ See Table 3 for details.31 See Table 4 for details.4/ 6 man-months at US$7,000 per month.5/ Assurming following price escalation factors:
1979 1980 1981 1982 1983
Foreign Costs (excluding 1.04 1.09 1.16 1.23 1.30Local Costs 5 crop loans) 1.08 1.21 1.33 1.46 1.61
6/ Includes about Rs 2.6 M in taxes and duties.
89
ANNEX 2 (e)Table 2
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Agricultural Credit
Crop Production Loans
A. Paddy and Subsidiary Food Crops(Short-term loans)
Year
Item 1978 1979 1980 1981 1982 1983
Estimated Area Using InstitutionalCredit ('000 ac) 10.0 10.0 15.0 20.0 25.0 30.0
Average Credit Amount-/(Rs per ac) 700 750 800 850 900 950
Total Annual Lending(Rs M) 7.0 7.5 12.0 17.0 22.5 28.5
Incremental Lending OverPrevious Year (Rs M) - 0.50 4.5 5.0 5.5 6.0
Incremental Lending Duringthe Project Rs 21.50 M
B. Coconut Rehabilitation(Medium-term loans)
Year
Item Total 1979 1980 1981 1982 1983
Area to be Rehabilitated withInstitutional Credit ('000 ac) 50.0 3.0 7.0 10.0 15.0 15.0
Average Credit Amount(Rs per ac)1st Year 380 400 440 480 5302nd Year 400 440 480 530 580
Total 780 840 920 1,010 1,110
Total Lending (Rs M) 40.52 1.14 4,00 7.48 12.00 15.90
1/ Assuming that scales of financing would be periodically adjusted in line withthe prices of farm inputs.
90
ANNEX 2(e)Table 3
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Agricultural Credit
Loans for Farm Equipment and Vehicles
Method ofUnit T'otal Procure- Procurement Phasing
Item Quantity Cost Cost ment 1979 1980 1981 1982 1983(Rs'000) (Rs M) --------- (Number)-----------
Farm Equipment
Tractors (4-Wheel)attachments 200 140.0 28.0 PS 25 50 50 50 25
Tractors (2-Wheel)Attachments 500 20.0 10.0 PS 50 100 150 100 100
Hand Sprayers 1,000 0.6 0.6 PS 100 250 253 250 150
Sub-Total 38.6
Vehicles for MPCS.s
Trucks (5 ton) 20 300.0 6.0 PS 5 10 5 - -
Total Cost to befinanced 44.6
91
ANNEX 2(e)Table 4
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Agricultural Credit
Equipment and Vehicles for Banks
CIF/Ex-Factory Method of 1/Unit Total Procure- Procurement Schedule-
Item Quantity Cost Cost ment a b c d e f-(US$'000)--
Jeeps (4-WheEl Drive) 2 7.1 14.2 ICB 12/78 2/79 5/79 6/79 8/79 11/79
90-cc Motorc3cles 6 1.0 6.) PS - - - - - 12/79
Bicycles 65 0.1 6.; PS - - - - - 12/79
Office Equipnment LS 10.) PS - - - - - 12/79
Total-/ 36.7
1/ a - Specifications and Bid package to IDA.b - Invitation to Bids.c - Opening of Bids.d - Evaluation Report to IDA.e - Award of Contract.f - Delivery at Site.
2/ Includes goods worth about US$5,000 equivalent which are of local origin.
92
ANNEX 2 (f)Table 1
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Livestock
Cost Estimates and Schedule of Expenditures
Total Cost Total Annual ExpendituresItem Local Foreign Total 1979 1980 1981 1982 1983
-_________.____-------------(Rs M)-----------------------
I. Civil Works
Office and ClinicBldgs 1/ 0.20 0.0'5 0.25 0.05 0.10 0.10 - -
Staff Quarters 2/ 0.25 0.10 0.35 0.05 0.10 0.10 0.10 _
Sub-total 0.45 0.15 0.60 0.10 0.20 0.20 0.10 -
3/II. Equipment-
Transport Vehicles 0.10 1.60 1.70 1.20 0.50 - - -
Other Equipment 0.10 0.15 0.25 0.10 0.15 - - _
Sub-total 0.20 1.75 1.95 1.30 0.65 - - _
III. Engineering &Administration 4/ 0.10 - 0.10 - 0.05 0.05 - -
IV. Base Cost -71.0 T5 lT53 T7 -l25 1TTG
V. PhysicalContingencies 5/ 0.05 0.:L0 0.15 0.05 0.05 0.05
VI. PriceContingencies 6/ 0.15 0.15 0.30 o.l0 0.10 0.05 0.05
VII. Total Cost 7/ 0.95 2.15 3.10 1.55 1.05 0.35 0.15 -
1/ 3 Offices (Nikaweratiya, Dodangaslanda and Galgamuwa) at Rs 80,000 each
2/ 3 Quarters (Nikaweratiya, Dodangaslanda and Galgamuwa) at Rs 120,000 each for Vet.Surgeons
3/ See Table 2 for details.
4/ 15% of I
5/ 10? of I and 5% of II
6/ Assuming following price escalation factors:1979 1980 1981 1982 1983
Foreign Costs 1.03 1.07 1.16 1.23 1.30Local Costs 1.08 1.21 1.33 1.46 1.61
7/ Includes about Rs 0.10 M in taxes and duties.
93
ANNEX 2f)Table 2
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Livestock
Equipment List and Procurement Schedule
CIF/Ex-Factory Method of 1/Unit Total Procu- Procurement Schedule-
Item Quantity Cost Cost rement a b c d e f--(US$'O0O)-
Transport Vehicles
Jeeps (4-wheel Drive) 14 7.1 99.4 ICB 12/78 2/79 5/79 6/79 8/79 11/79
Bicycles 56 0.1 5.6 PS - - - - - 12/79
Sub-total 105.0
Other Equipment
Furniture ,Office Equipmentand Surgical Instruments LS - 15.0 PS 12/79
Total 120.0=-
1/ a - Specifications & Bid package to IDA.b - Invitation to Bids.c - Opening of Bids.d - Evaluation Report to IDAe - Award of Contract.f - Delivery at Site.
2/ Includes goods worth about US$5,000 of local origin.
94
ANEX i(e)
SRI LANKA Table
KURUNEGALA RURAL DEVELOPMENT PROJECT
Groundwater Exploration
Cost Estimates and Schedule of Expenditures
Total Cost Total Annual ExpendituresItem Local Foreign Total 1979 1980 1981 1982 1983
- - ----------------- - -(Rs M)-------------------------
I. Civil Works
Construction of 2.5"size wells (150) 0.65 0.10 0.75 0.05 0.40 0.30 -
Construction of 6"size wells (30) 0.20 0.10 0.30 - 0.10 0.20 -
Hydrological mappingsurveys 0.05 - 0.05 0.05 - - -
Sub-total 0.90 0.20 1.10 0.10 0.50 0.50
II. Equipment!/
Const. equipment 0.40 4.80 5.20 2.00 3.20 - - -
Transport vehicles 0.30 0.60 0.90 0.60 0.30 - - -Sub-total 0.70 5.40 6.10 2.60 3.50 - - -
III Technical Assistance
Consulting Services 2/ 0.10 0.45 0.55 0.10 0.15 0.30 - -Study Tours -_ n 1 R fn 1 - n 1 _ - -
Sub-total 0.10 0.60 0.70 0.10 0.30 0.30 - -
IV. Engineering & Admin.3/ 0.45 0.05 0.50 0.10 0.20 0.20 - -
v. Rase Cost 2.IS 6.25 8.40 2.90 4.5n 1.00 - -
VI. PhysicalContingencies 4/ 0.10 0.30 0.40 0.10 0.20 0.10 - -
VII PriceIontingencies / 0.40 0.45 0.85 0.15 0.50 0.20 - -
V1II. Total Coet 6/ 2.65 7.00 9.65 3.15 5.20 1.30 -
1/ Ser, il-,i Ior details
2/ Six marl-morithks at US$6,000 per montlh.
3/ Filteen percent of I and five percent of II.
4/ Ten percent of I and five percent of II.
5/ Ass'iming following price escalation factors:1979 1980 1981 1982 1983
Foreign Costs 1.03 1.07 1.16 1.23 1.30
Local Costs 1.08 1.21 1.33 1.46 1.61 956/ Includes about Rs 0.4 M in taxes and duties.
ANNEX 2 (g)Table .2
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Groundwater Exploration
Equipment List and Procurement Schedule
CIF/Ex-factory Procurement Schedule -
Item Quan- =nt Total Method oftity Cost Cost Procurement a b c d e f
Construction Equipt. _ -(US$'O0O0)-
1. Core DrillingMachine 1 21.0 21.0 ICB 12/78 3/79 6/79 7/79 9/79 1/80
2. 'Well Drilling Rigwith accessories 1 200.0 200.0 ICB " to 2/80
3. ResistivityInstrument I 9.0 9.0 ICB " 12/79
4. Deep well 2" sub-morsible- pump 2 9.0 18.0 ICB " " " " "
5. Generator 2 1-. 2.0 ICB
6. Mobile Weldingmachine 1 12.0 12.0 ICB "
7. Field w/shopequipment LS - 10.0 PS - - - - _
8. Drill bits &spare parts LS - 50.0 ICB 12/78 3/79 6/79 7/79 9/79 2/80
Sub-Total 322.0
Transport Vehicles
1. Jeeps (4-wheel Drive) 2 7.1 14.2 ICB 12/78 2/79 5/79 6/79 8/79 11/79
2. Trucks (5 ton) 2 12.2 24.4 ICB
Sub-total 38.6
Total 360.6 21
1/ a. Specification and bid package to IDA.b. Invitation to bids.c. Opening of bids.d. Evaluation Report to IDA.e. Award of contract.f. Delivery at site.
2/ lncludesF goods worth about US$10,000 equivalent which would be of local origin.
96
ANNEX 2(h)Table 1
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Rural Roads
Cost Estimates and Schedules of Expenditures
Total Cost Total Annual ExpendituresItem Local Foreign Total 1979 1980 1981 1982 1983
---------------------- (Rs M)---------------------------------
I. Givil Works
Village Access Roads 5.40 0.60 6.00 0.40 1.40 1.40 1.40 1.40
School Access Roads 0.60 0.10 0.70 0.20 0.30 0.20 - -
Sub-total 6.00 0.70 6.70 0.60 1.70 1.60 1.40 1.40
II. Equipment 2/
Construction Equipment 0.25 3.45 3.70 1.90 1.80 - - -
Transport Vehicles 0.05 0.95 1.00 0.70 0.30 - - -
Other equipment - 0.10 0.10 0.10 - -
Sub-total 0.30 4.50 4.80 2.70 2.10 - - -
III. Engineering andAdministration 3/ 0.90 0.10 1.00 0.20 0.20 0.20 0.20 0.20
IV. Base Cost 7.20 5.30 12.50 3.50 4.00 1.80 1.60 1.60
V. Physical contingencies 4/ 1.00 0.30 1.30 0.30 0.40 0.20 0.20 0.20
VI. Price contingencies 5/ 2.85 0.35 3.20 0.15 0.60 0.60 0.80 1.05
VII. Total Cost 6/ 11.05 5.95 17.00 3.95 5.00 2.60 2.60 2.85
- See Table 3 for details.
2/ See Table 2 for details.
3/ Fifteen percent of I.
4/ Fifteen percent of I and five percent of II.
5/ Assuming following price escalation factors:
1979 1980 1981 1982 1983
Foreign Costs 1.03 1.07 1.16 1.23 1.30Local Costs 1.08 1.21 1.33 1.46 1.61
- Includes about Rs 0.5 M in taxes and duties.
97
ANNEX 2(h)Table 2
SRI LANKA
KDRUNEGALA RURAL DEVELOPMENT PROJECT
Rural Roads
Equipment List and Procurement Schedule
CIF/Ex-factory Procurement Schedulel/Quan- Unit Total Method of
Item tity Cost Cost Procurement a b c d e f
Construction Equipment
1. Tractor with trailer 6 10.2 61.20 ICB 12/78 3/79 6/79 7/79 9/79 1/80
2. Tipper 3 12.0 36.00 ICB " " " " 2/80
3. Bowser 1 12.8 12.80 ICB " " " " " 1/80
4. Diesel Roller 2 13.0 26.00 ICB " " " " "
5. Motor Grader 1 44.0 44.00 ICB " " " " 2/80
6. Tar sprayer 2 3.5 7.00 ICB " " " " " 12/79
7. Tat boiler 6 1.0 6.002- PS - _ _ _ _ 10/79
8. Concrete mixer 2 2.7 5.40 ICB 12/78 3/79 6/79 7/79 9/79 12/79
9- Water pumps (4") 2 1.5 3.00 ICB " " " " 10/79
10. Water pumps (3") 2 1.0 2.00 ICB " " " " " 10/79
11. Concrete vibrators 2 0.6 1.20 ICB 12/78 3V79 6/79 7/79 9/79 12/79
12. Spare parts LS - i7.00 ICB " " " " " 2/80
Sub-total 221.60
Transport Vehicles
1. Jeeps (4-wheel drive) 3 7.1 21.30 ICB 12/78 2/79 5/79 6/79 8/79 11/79
2. Trucks (5 ton) 3 12.2 36.60 ICB " " " " "
Sub-total 57.90
Office and Survey Equipt.
1. Theodolites 2 2.3 4.60 PS - - - - - 10/79
2. Typewriters 4 .4 1.60 PS - - - - -
3. Office equipment LS - .30 PS - - - - -
Sub-total 6.50
Total 286.00
/ a. Specifications and bid package to IDA.b. Invitation to bids.c. Opening of bids.d. Evaluation report to IDA.e. Award of contract.f. Delivery at site.
2/ Local component.
98
ANNEX 2(h)
SRI LANKA Table 3
KURUNEGALA RURAL DEVELOPMENT PROJECT
Ruiral Roads
C:Lvil Works
Serial Length Excavation Embankment Road Culverts Bridges Causeways Cost
No. Name of Road Mile cu yd cu yd Surfacing Nos. Nos. Nos. (Rs Million)
cu yd
Village Access Roads
1. Ihalagama Timbiriyawa 8.0 4,218 11,803 2,960 6 - _ 0.20
2. Konwewa Ihalagama-Hettigama 6.5 1,184 5,032 1,184 4 - - 0.40
3. Kumbukulawa Potuwila 5.0 9,916 22,200 4,440 15 - 2 0.50
4. Diulwewa Kuruwikulama 4.0 - - 6,590 - - - 0.25
5. Nagollagama Korambe 4.5 3,256 3,382 3,182 - - - 0.15
6. Ihalakinlyama Welangirtya 2.2 3,441 9,176 1,332 11 - - 0.20
7. Kobeigane Ujjekele 10.0 8,325 13,690 7,104 9 - - 0.40
8. Hettipola Kolamunaya 10.0 10,730 22,940 8,732 15 - - 0.65
9. Ambakadarawewa Mihihanegima 3.3 3,700 4,810 2,664 3 - - 0.15
10. Hantanegama Ridigama 2.2 3,404 2,590 1,332 2 - 1 0.10
11. Digalla Koshena 3.7 2,960 3,700 2,960 - - - 0.15
12. Buluwala Kongoda 2.0 2,590 4,366 1,184 3 - - 0.10
13. Athuruwara Paranagama 1.5 2,405 4,440 1,332 3 - - 0.15
14. Mahgalkadawala-MahananerLya 10.0 10,360 48,100 5,180 13 - - 0.85
15. Wetakoluwagama-Siyambala 1 amuwa 4.2 4,810 3,700 3,404 3 - - 0.15
16. Ehetuwewa-Siyambalangamu'za 5.8 6,290 4,810 3,626 1 - - 0.20
17. Yapahuwa-Galtenewewa 10.0 3,256 4,107 5,291 7 - - 0.20
18. Ella-Kadambawa 10.0 5,550 9,010 5,920 2 - - 0.30
19. Ganewatta-Moragollawa 12.1 12,450 19,610 6,380 15 - 1 0.65
20. Pahala Mawatagama Kadigawia 5.0 - - 7,850 - - - 0.25
Sub-total 120.0 6.00
School Access Roads
21. Pinnapalagama-Siyambalaw.waMadurugama 2.8 L.S. - - - - - 0.20
22. Alutgama Nalewa 0.65 3,450 2,220 630 3 - - 0.10
23. Galgamuwa Nerawiya 1.0 1,370 4,440 900 6 - - 0.10
24. Mahakeliya Thalagamuwa-Mi.guruoya 2.35 3,145 4,070 2,000 3 - 2 0.15
25. Access to Buluwelakanda !;chool 0.5 480 1,480 300 5 - - 0.05
26. Erapolakanda 0.3 220 1,110 190 2 - - 0.05
27. Agara School 0.5 820 2,780 300 2 - - 0.05
Sub-total 8.1 0.70
6.70
Total 128.1
99
ANNEX 2(i)
Table 1
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Rural Water Supply
Cost Estimates and Schedule of Expenditures
Item Total Cost Total Annual Expenditures
Local Foreil Total 1979 1980 1981 1982 1983
----------------------- (Rs M)-----------------------------
I. Civil Works
Sunk wells Caisson Type
170 @ Rs 20,000 each 2.80 0.EO 3.40 - 0.80 0.80 0.90 0.90
Dug & built-up wells inhard rock:100 @ Rs 14,000 each 1.20 0.20 1.40 - 0.35 0.35 0.35 0.35
Dug & built-up wells partlyin hard latterite:130 at Rs 12,000 each 1.35 0.20 1.55 0.40 0.30 0.30 0.30 0.25
Miscellaneous:(water quality improve-ments) 0.10 - 0.10 - 0.10 - - -
Sub-total 5.45 1.00 6.45 0.40 1.55 1.45 1.55 1.50
II. Equipment-/
Construction Equipment 0.10 0.&0 0.90 0.40 0.50 - - -
Transport Vehicles 0.30 0.,0 1.00 0.60 0.40 -
Sub-total 0.40 1.50 1.90 1.00 0.90 - - -
III. Engineering and 2/Administration-/ 0.85 0.l0 0.95 0.10 0.20 0. 25 0.20 0.20
IV. Base Cost 6.70 2.t,O 9.30 1.50 2.65 I.0 1.75 1.70
V. Physical Contingencies- 3/ 0.70 0.:30 1.00 0.10 0.30 0.20 0.20 0.20
VI. Price Contingencies - 2.75 0.:30 3.05 0.10 0.45 0.f0 0.85 1.05
VII. Total Cost 5/ 10.15 3.'0 13.35 1.70 3.40 2.2,0 2.80 2.95
1/ See Table 2 for details.2/ Fifteen percent of I.3/ Fifteen percent of I and five percent of [I.4/ Assuming following price escalation factors: 1979 1980 1981 1982 1983
Foreign Costs 1.03 1.07 1.16 l..'3 1.30
Local Costs 1.08 1.21 1.33 1.eZ6 1.61
5/ Includes about Rs 0.6 M in taxes and duties.100
ANNEX 2(i)Table 2
SRI LANKA
KURUNEGALA RURAL DEVELOiMENT PROJECT
Rural Water Supply
Equipment List and Procurement Schedule
CIF/ 1/Ex-factorv Method of Procurement Schedule-
Quan- Unit Total Procure-Item tity Cost cost _ment a b c d e f
-(US$'000)-Construction Equipt.
1. Water pumps (4") 8 1.5 12 ICB 12/78 3/79 6/79 7/79 9/79 12/79
2. Puenumatic compressorwith accessories 1 7 7 ICB " " 1/80
3. Power Operated Winch 1 5 5 ICB " "
4. Core drilling 1 21 21 ICB " " "machine
5. Drill bits & spareparts LS 6 6 ICB " " "
6. Auxillary equipt. LS 3 3 PS - - _ _ _ 12/79Sub-total 54
Transport Vehicles
1. Jeeps (4-wheel DrLve) 3 7.1 21.3 ICB 12/78 2/79 5/79 6/79 8/79 11/79
2. Trucks (5 ton) 2 12.2 24.4 ICB " " i t"Sub-total 45.7
Total 99.7
a. Specifications and bid package to IDA.b. Invitation to bids.c. Opening of bids.d. Evaluation report to IDA.e. Award of contract.f. Delivery at site.
2/ Local component.
101
ANNEX 2(j)Table I
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Rural Electrification
Cost Estimates and Schedule of Expenditures
Total Cost Total Annual ExpendituresItem Local Foreign Total 1979 1980 1981 1982 1983
------------------------ (Rs M)-------------------------------
I. Civil Works
Electrification of16 Rural Areas 1/ 6.90 2.50 9.40 1.80 3.80 3.80
II. Equipment -
Transport Vehicles 0.50 0.95 1.45 1.05 0.40 - -
Other Equipment - 0.05 0.05 0.05 - -
Sub-total 0.50 1.00 1.50 1.10 0.40 - -
III. Engineering andAdministration 3/ 1.20 0.10 1.30 0.30 0.50 0.50
IV. Base Cost 8.60 3.60 12.20 3.20 4.70 4.30
V. PhysicalContingencies 4/ 0.70 0.30 1.00 0.20 0.40 0.40
VI. Price Contingencies 5/ 2.10 0.30 2.40 0.20 0.85 1.35
VII. Total Cost 6/ 11.40 4.20 1 3.60 5.95 6.)5
1/ See Table 3 for details.2/ See Table 2 for details.3/ Fifteen percent of I.4/ Ten percent of I and five percent of II.5/ Assuming following price escalation factors: 1979 1980 1981 1982 1983
Foreign Costs 1.03 1.07 1.16 1.23 1.30Local Costs 1.08 1.21 1.33 1.46 1.61
6/ Includes about Rs 0.8 M in taxes and duties.
102
ANNEX 2(j)Table 2
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Rural Electrification
Equipment List and Procurement Schedule
CIF/Ex-factorv Method Procurement Schedule-Quan- Unit Total of Pro-
Item tity Cost Cost curement a b c d e f--(US$ 000')_ -
Transport Vehicles
Jeeps (4-wheeJ Drive) 2 7.1 14.20 ICB 12/78 2/79 5/79 6/79 8/79 11/79
Station wagon 2 10.7 21.40 ICB II " " "
Trucks (5 tons) 2 12.2 24.40 ICB " " " " t
Sub-total 60.00
Miscellaneous Equipment
Lineman's tool kit 8 0.4 3.20 P.S. - - - - - 12/79Total 63.20
1/a. Specifications and bid package to IDA.b. Invitation to bids.c. Opening of bids.d. Evaluation report to IDA.e. Award of contract.f. Delivery at site.
103
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Rural Electrification
Civil Works
Prospective Consumers 33 KV Line LT Line Sub-station CostCommercial 3 ph 2 ph 1 ph 50 100 150 (Rs million)
Name of Scheme Domestic and Others------ numbers ------ --- miles---- miles ----- --- KVA----
1. Hiripitiya 60 41 0.25 2.75 - 2.50 - - 1 0.54
2. Tittawella and Pellandeniya 50 15 1.00 1.75 - 0.50 - 2 - 0.43
3. Piduma 30 13 0.50 4.00 - 2.75 2 - - 0.71
4. Hindagolla, Meegalla andGalapitamulla 75 14 1.00 2.25 - 1.25 1 - - 0.45
5. Kaudawatte/Aswedduma 140 17 1.50 0.50 - 2.00 1 - - 0.40
6. Bamunugedera/Hadalanwatte 130 22 2.30 - 0.70 3.25 1 - - 0.57
7. Kulipitiya 67 11 0.50 - - 2.30 1 - _ 0.27
8. Panagamuwa/Ogadalpola 90 109 3.00 0.80 0.40 0.60 1 - 0.52
9. Manamukalanyaya/Dehelwehera 145 18 0.60 1.30 1.00 3.30 - 1 - 0.55
10. Dunukewatte 70 7 0.60 1.30 1.00 3.30 - 1 - 0.55
11. Weerakodiyana * 35 15 - _ - 1.25 0.75 1 - _ 0.24
12. Mahakeliyr * 45 20 0.05 1.00 - 2.75 - I - 0.40
13. Maharachchimulla * 160 50 3.00 3.50 0.50 2.00 - - 1 1.04
14. Kandanegedera 120 56 3.50 1.50 2.00 1.00 - - 1 1.00
15. Pannawa/Kobeigane * 115 81 4.75 0.50 1.00 4.10 - 1 - 1.13
16. Hettipola/Kuliyapitiya * 53 16 0.25 2.60 - 1.80 - 1 - 0.60
Total 1,385 505 22.80 23.75 7.85 34.15 8 7 a 9.40
* Schemes investigated after appraisal and hence not shown on Map No. IBRD 13945
C
I
ANNEX 2(k)Table 1
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Health
Cost Estimates and Schedule of Expenditures
Total Cost Total Annual Expenditures
Item Local Foreign Total 1979 1980 1981 1982 1983_ _____________-----------(Rs M) -----------------------------
I. Civil Works
MOH Office Bld1s-l 0.55 0.20 0.75 0.05 0.20 0.20 0.20 0.10Staff Quartera4' 0.60 0.25 0.85 0.10 0.20 0.20 0.20 0.15Installation forDiesel Generat:ors 0.05 - 0.05 - 0.05 - - -
Sub-total 1.20 0.45 1.65 0.15 0.45 0.40 0.40 0.25
II. Equipment3/
Transport Vehicles 0.10 1.95 2.05 1.50 0.55 - - -Diesel Generat:ors 0.05 0.25 O.i0 - 0.30 - - -
Medical Equipment 0.10 0.90 1.00 0.50 0.50 - - -
Sub-totE,l 0.25 3.10, 3.i5 2.00 1.35 - - -
III. Engineering & 4/Administratior4 0.25 - 0.25 0.05 0.05 0.05 0.05 0.05
IV. Base Cost iT76 3.55 5.25 2.20 1.85 0.45 0.45 0.30
V. PhysicalContingencies5/ 0.15 0.20 0.35 0.10 0.10 0.05 0.05 0.05
VI. Price 6/Contingencies- 0.55 0.25, 0.80 0.05 0.20 0.15 0.20 0.20
VII. Total Cost7/ 2.40 4. 00 6.40 2.35 2.15 0.65 0.70 0.55_ = _=
1/ Five offices (Maho, Gokeralla, Kandanegedara, Bingiriya and Moonamaldeniya) atRs 150,000 each.
2/ Six MO/DMO/MOH quarters (Narammala, Mawatagama, Gokeralla, Kandanegedara, Bingiriya andMoonamaldeniya) at Rs.11$,000 each and 4 mid-wife quarters (Maho, Hiripitiya,Muwanhela, Gokeralla) at Rs. 40,000 each.
3/ See Table 2 for details.
4/ Fifteen percent of I.
-/ Ten percent of I and five percent of II.
6/ Assuming following price escalation factors:1979 1980 1981 1982 1983
Foreign Costs 1.0)3 1.07 1.16 1.23 1.30Local Costs 1.()8 1.21 1.33 1.46 1.61
7/ Includes about Rs 0.1 M in taxes and duties.
105
ANNEx 2 (k)Table 2
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Haalth
Equipment List and Procurement Schedule
CIF/Ex-Factory Method
Unit Total Af PrQcu- Procurement Schedule-
Item Quantity Cost Ccst rement a b c d e f
--(US$G000)-
Transport Vehicles
Ambulances2/ 7 10.0 70.0 ICB 12/78 2/79 5/79 6/79 8/79 11/79
Jeeps (4-wheel Drive) 7 7.1 49.7 ICB " is" " "
Truck (3-tons) 1 7.0 7.0 ICB " " "
Sub-total 126.7
Medical Equipment
Operating Theater In-strument Set 1 8.0 8.0 PS - _ _ _ - 12/79
Autoclave Sterilizer 1 13.5 13.5 PS " " " " "
Boyles AnaestheticMachine 1 2.5 2.5 PS i " " " "
Suction Apparatus 1 1.5 1.5 PS i * IS *I
Electric Suckers 3 1.5 4.5 PS " " " " "
Refrigerators 8 0.6 4.8 PS " " " "
Microscopes 2 1.5 3.0 PS " " "
Miscellaneous Equipment LS 20.0 PS " H
Sub-total 57.8
Other Equipment
20 kw Diesel Generators 4/ 5 3.5 17,J ICB 12/78 3/79 6/79 7/79 9/79 12/79
Total 202.0
1/ a - Specifications & Bid package to IDA.b - Invitation to Bids.c - Opening of Bids.d - Evaluation Report to IDAe - Award of Contractf - Delivery at Site.
2/ One each at Maho, Polpitigama, Kuliyapitiya, Nikaweratiya, Mawatagama, Bingiriya,
and Pahalagiribawa.
3/ One each at Gokeralla, Mawatagama, Maho, Polgahawela, Galgamuwa, Wariyipola and
Kurunega'a.4/ One each at Kurunegala, Nikawewa, Polpitigama, and Katupotha, and one 3tandby. 106
ANNEX 2 (1)Table 1
SRI LANKA
KIURUNEGALA RURAL DEVELOPMENT PROJECT
Education
Cost Estimates and Schedule! of Expenditures
Total Cost Total Annual Expenditures
Item Local Foreign Total 1979 1980 1981 1982 1983--------------------------(Rs M)-------------------------
I. Civil Works
Teachers Quartersfor Remote Areas 1/ 1.00 0.40 1.40 0.20 0.30 0.30 0.30 0.30
Science Rooms forJunior SecondarySchools 2/ 1.20 0.60 1.80 0.30 0.40 0.40 0.40 0.30
Improvements toSenior SecondarySchools 3/ 1.40 0.70 2.10 0.10 0.50 0.50 0.50 0.50
Sub-total 3.60 1.70 5.30 0.60 1.20 1.20 1.20 1.10
II. Equipment 4/
Edu. Equipment forPrimarl Schools 0.20 0.30 0.50 0.30 0.20 - - -
Science Equipmentfor Jun.SecondarySchools; 0.20 0.40 0.60 0.30 0.30 - - -
Equip. for SeniorSecondary Schools 0.10 0.50 0.60 0.10 0.50 - - -
Equip. for SchoolLeavers Program 0.10 0.25 0.35 0.10 0.25 - - -
Equip. for Tech.Education 0.20 2.20 2.40 - 0.80 1.60 - -Transport Vehicles 0.05 0.30 0.35 0.35 - - - -
Sub-total 0.85 3.95 4.80 1.15 2.05 1.60 - -
III. Technical Assistance
ConsultingServices 5/ 0.05 0.25 0.30 0.15 0.15 - - -
IV. Engineering &Administration 6/ 0.70 0.10 0.80 0.15 0.15 0.20 0.20 0.10
V. Base Cost 5.20 6.00 11.20 2.05 3.55 3.00 1.40 1.20
VI PhysicalContingencies 7/ 0.40 0.35 0.75 0.10 0.25 0.20 0.10 0.10
VII. PriceContingencies 8/ 1.85 0.70 2.55 0.10 0.45 0.75 0.60 0.65
VIII. Total Cost 9/ 7.45 7.05 14.50 2.25 4.25 3.95 2.10 1.95
1/ 40 Quarters at Rs 35,000 each.2/ 140 Rooms at Rs 13,nnn each3/ 7 Schools at Rs 300,000 each.4/ See Table 2 for details.5/ 3 man-months at US$6,000 per man-month.6/ 15% of I.7/ 10% of I and 5% of II.8/ Assuming following price escalation factors:
1979 1980 1981 1982 1983
Foreign Costs 1.03 1.07 1.16 1.23 1.30Local Costs 1.08 1.21 1.33 1.46 1.61
9/ Includes about Rs 0.5 M in taxes and duties.
107
ANNEX 2(1)Table 2
SRI LhNKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Educal-ion
Equipment List and Piocurement Schedule
CIF/Ex-Factoty Method ofUnit Totail Procu- Procurement Scheule-
Item Quantity Cost Cost rement a b c d e f
-(US$'000)-
Educational Equipment
Equipment for PrimarySchool 120 sets 0.25 30.0 PS _ 12/79
Equipment for JuniorSecondary Schools 2/ LS 34.5 PS - _ _ _ _
Equipment for SeniorSecondary Schools 3/ LS 34.8 PS - - - - 12/80
Equipment for SchoolLeavers Program LS 20.0 PS -
Equipment for TechnicalEducation LS 150.G ICB/PS 8/79 12/79 3/80 4/80 9/80 12/80
Jeeps (4-Wheel Drive) 3 7.1 21.3 ICB 12/78 2/79 5/79 6/79 8/79 11/79
Total1. 290.6
1/ a - Specifications & Bid package to IDA.b - Invitation to Bids.c - Opening of Bids.d - Evaluation Report to IDA.
e - Award of Contract.f - Delivery at Site.
2/ 80 sets of science equipment at US$400 each and 5 sets of crafts equipment at
US$500 each.
3/ 3 sets of science equipment at US$4,600 each and misc. science and agriculturalequipment for 7 schools to be upgraded at US$3,000 each.
4/ Includes goods of local origin worth abcut US$20,000.
108
ANNEX 2(m)Table 1
SRI LANKA
XURUNEGALA RURAL DEVELOPMENT PROJECT
Project Coordination an,d Investigations
Cost Estimates and Schedule of Expenditures
Total Cost Total Annual Expenditures
Item Local Foreign Total 1979 1980 1981 1982 1983
-------------------------(Rs M)------------------------------
I. Civil Works
Project Office Building 0.20 0.15 0.35 0.25 0.10 - _ _Miscellaneous Living
Quarters and Offices 0.25 0.25 0.50 0.15 0.35 - _ _
Sub-total 0.45 0.40 0.85 0.40 0.45 - _ _
II. Equipment and Vehicles 1/ 0.60 4.00 4.60 2.60 2.00 - - -
III. Technical Assistance
Consulting Services 2/ 1.60 3.00 4.60 1.00 1.70 1.50 0.20 0.20Overseas Study Tours - 0.40 0.40 - 0.20 0.20 - -
Sub-total 1.60 3.40 5.00 1.00 1.90 1.70 0.20 0.20
IV. Engineering & Administration
Civil Works 3/ 0.10 - 0.10 0.05 0.05 - - -
Incremental RecurrentCost 4/ 5.00 1.00 6. 00 1.40 2. 50 0.90 0.60 0.60
Sub-total 5.10 1.00 6.10 1.45 2.55 0.90 0.60 0.60
V. Base Cost 7.75 8.80 16.55 5.45 6.90 2.60 0.80 0.80
VI. Physical Contingencies 5/ 0.55 0.35 0.90 0.30 0.40 0.10 0.05 0.05
VII. Price Contingencies 6/ 2.00 0.75 2.75 0.30 1.10 0.65 0..4 f
VIII. Total Cost 7/ 10.30 9.90 20.20 6.05 8.40 3.35 1.15 1.25
1/ See Table 2 for details.2/ Preparation of Development Plans for other Districts: 24 man-months at US$6,000 per month;
Preparation of Dis-trict Statistical Handbooal: 3 man-months at US$7,000 per monthsPreparation of plans for project monitoring and evaluation: 6 man-months at US$6,000per man-month. In addition a lump sum of Rs 1.5 M is included for contracting localresearch institutions and firms for undertaking monitoring and evaluation studies.
3/ 15% of I.4/ See Table 3 for details.5/ 10% of I and IV and 5% of II6/ Assuming following price escalation factors:
1979 1980 1981 1982 1983
Foreign Costs 1.03 1.07 1.16 1.23 1.30Local Costs 1.08 1.21 1.33 1.46 1.61
7/ Includes about Rs 0.5 M in taxes and duties.
109
SRI LA1WKA ANNEX 2(ti)Table 2
KURUNEGALA RURAL DEVELOPMENT PROJECT
ProJect Coordination and Investigations
Equipment List and Procurement Schedule
CIF/Ex-f'actury method PrcrmntShdlQuan- Unit Total of Pro- Procurement Schedt,le-tity Cost Cost curement a b c d e f
-- (US$'000)-A. Ministry of
Plan Implementation
Misc. Office Equipment LS - 10.0 PS - - - - - 12/79
B. Regional Dev. Division
Passenger cars 6 6.0 36.0 ICB 12/78 2/79 5/79 6/79 8/79 11/79
Jeeps (L-Wheel Drive) 4 7.1 28.4 ICB " " " t
Office Equipment andFurniture LS - 10.0 PS " " "
Sub-total 74.4
C. Kurunesala Prolect Office
Passenger Cars 1 6.0 6.( ICR I t "nJeeps (4-Wheel Drive) 3 7.1 21.3 ICB d " n
2-Way Radio CODI. Equip. LS 20.0 ICB/PS " " " " "
Misc. Office Equipmentand Furniture LS 20.0 PS - _ _ _ _ 10/79
Sub-total 6?.3
D. Department of Census andStatistics
Jeeps (4-Wheel Drive) 2 7.1 14.2 ICB " " "
Misc. Office Equipmentand Furniture LS - 5.0 Ps - - - - _ 10179
Sub-total 19.2E. Other GOSL Agencies
Equipment and vehiclesfor use in ProjectEvaluation 2/ LS 25.0 ICB/PS n " "
Equipment and Vehicles LS - 80.0 ICB/PS " " "for use in preparationof District Dev. Plansfor other Districts.-
Sub-total 105.1
Total4! 275.9
1/ a. Specifications and bid package to IDA.b. Invitation to bids.c. Opening of bids.d. Evaluation report to IDA.e. Award of contract.f. Delivery at site.
2/ Including one for the Central Bank to assist them in carrying outbenchmark and follow-up surveys in the District.
3/ Allocation to be decided by the Project Steering Committee.4/ Includ . good worth about US$25,000 which jould be of local origin.
110
ANNEX 2(m)Table 3
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Project Coordination and Investigations
Incremental Recurrent Expenditure(Rs '000)
Min. Plan Implemen-tation/Reg. Dev. Div. Preparation of
A. Salaries & Benefits for Project Coord. and Kurunegala District Statistical Preparation of NewAdditional Staff ManaRement Project Office hand Book Rural Dev. Projects
Regional Other Proj.Ave. Dev. Div. AgenciesUnit Annual Annual Annual Annual Annual Total
Staffing Cost No. Cost No. Cost No. Cost Cost Cost Cost
Project Director 22 - - 1 22 - - - -
Dy. Director 19 1 19 1 19 _ - 4 76
Asst.Director 15 1 15 1 15 1 15 4 60
Engineer 16 - - 2 32 - - - -
Planning Officer 14 1 14 1 14 - - 4 56
Technicians/ 9 - - 4 36 2 18 - -Statisticians
Dev./ Stat. 7 2 14 1 7 2 14 10 70Officers
Stat. Inveatigators 5 - - - - 6 30 - -
Draftsman /Surveyors 8 - - 3 24 - - 1 8
Accountant 18 1 18 1 18 - - - -
Clerk/Typist/Steno. 5 6 30 8 40 2 10 2 10
Drivers 4 2 8 4 16 2 8 8 32
Laborers 3 2 6 3 9 1 3 1 3
Sub-total 124 252 98 315
B. Other Expenses
FueL & OilLL LS 12 24 12 48
Repair & Maintenance2/ iS 9 18 9 36
Field Visits/Travelling/Allowances LS 25 50 25 70
Stationery LS 10 20 20 20
Misc. LS 4 20 5 20
Sub-total 60 132 71 194
Total Annual Cost 184 384 169 509
Total Cost during the Project 828__ 1 728-3/ 3 3 8A/ 636- 2,500 LS6 Rs 6.030
Say 6.00 M
1/ Jeeps and cars at Rs 6,000 each, per annum.2/ Jeeps and cars at Rs 4,500 each, per annum.3/ Assuming 50% expenditure in lst year, and 100% for the remaining four years.X/ Assuming 50% expenditure in lst year and 100% in the second year and 50% in the third year.5/ Assuming 50% expenditure in the 1st year and 75% in the second year.g/ Incremental staff only. Includes Rs 0.5 M for investigation of proposals for future
investments in the Kurunegala District.
111
ANNEX 3
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Financial and Economic Analysis
List of Tables
Table 1 P,esent and Future Paddy Area, Yieldsand Production
Table 2 Present and Future Coconut Area, Yieldsand Production
Table 3 Intput Use for Paddy Cultivaticn
Table 4 Input Use for Coconut Cultivation
Table 5 Prices for Financial and Economic Analysis
Table 6 Farm Budgets
Table 7 Aunual Crop Production Costs
Table 8 Economic Rate of Return
112
SRI LANKA
KURUNEGAIA RURAL DEVEWPMENT PROJECT
Present and Future Paddy Area, Yields and ProductionC
MaJor Irrigation Schemes Minor Irrigation Schemes Rainfed District Total
2/ i 2 _ w _ _
3/Asweddumized Area 25 25 25 70 75 85 75 75 70 170 175 180
('000 ac)Gross Sown Area 4/
('000 ac)Maha 23(92) 24(95) -24(95) 61(87) 67(90) 81(95) 71(95) 71(95) 66(95) 155(91) 162(93) 171(95)Yala 15(60) 15(60) 19(75) 28(40) 30(40) 43(50) 41(55) 41(55) 39(55) 84(49) 86(49) 101(56)Annual 5/ 48(152) 38(155) 43(170) 89(127) 97(130) 124(145) 112(150) 112(150) 105(150) 239(140) 248(142) 272(151)
Gross Harvested Area(t000 ac)
Maha 23(98) 24(98) 24(98) 56(92) 62(92) 77(95) 65(92) 65(92) 63(95) 144(93) 151(93) 164(96)Yala 14(90) 14(90) 17(90) 22(80) 24(80) 36(85) 33(80) 33(80) 33(85) 69(82) 71(82) 86(85)Annual 6/ 37(97) 38(97) 41(95) 78(87) 86(88) 113(91) 98(88) 98(88) 96(91) 213(89) 222(89) 250(92)
Average Yield-(bu/ac)
Maha 65(1.33) 68(1.39) 75(1.53) 46(0.94) 50(1.02) 57(1.16) 43(0.88) 47(0.96) 53(1.08) 48(0.98) 52(1.06) 58(1.18)Yala 50(1.02) 53(1.08) 60(1.22) 37(0.76) 40(0.82) 45(0.92) 37(0.76) 40(0.82) 45(0.92) 40(0.82) 43(0.88) 48(0.98)Annual 59(1.20) 61(1.24) 69(1.41) 43(0.88) 47(0.96) 53(1.08) 41(0.84) 44(0.90) 50(1.02) 45(0.92) 49(1.00) 55(1.12)
Production 7/(M bu)
Maha 1.27(25.9) 1.39(28.4) 1.53(31.2) 2.19(44.7) 2.64(53.9) 3.73(76.1) 2.38(48.6) 2.60(53.1) 2.84(58.0) 5.84(119.2) 6.63(135.3) 8.10(165.3)Yala 0.60(12.2) 0.63(12.9) 0.87(17.8) 0.69(14.1) 0.82(16.7) 1.37(28.0) 1.04(21.2) 1.12(22.9) 1.26(25.7) 2.33(47.6) 2.57(52.4) 3.50(71.4)Annual 1.87(38.2) 2.02(41.2) 2.40(49.0) 2.88(58.8) 3.46(70.6) 5.10(104.1) 3.42(69.8) 3.72(75.9) 4.10(83.7) 8.17(166.7) 9.20(187.8) 11.60(236.7)
1/ Figures may not agree exactly due to rounding.2/ P = Present, W = Future Without Project, W = Future With Project.3/ Present figures from Dept. of Census and Statistics estimates,adjusted for under-reporting in case of major irrigation sohemes. Future without project
assumes some expansion in area under minor irrigation schemes due to anticipated works under the decentralized budget.4/ Figures in parenthesis are cropping intensities i.e. gross sown area & asweddumized area. Present intensities based on district average for 1960-77 and
adjusted for improvement in farm power availability since 1977. Future without project assumes some fu ther improvement in farm power availability.5/ Figures in parenthesis are success rate percentages i.e. gross harvested area L gross sown area. Present rates based on district averages
for 1960-77. No changes expected in success rates without the project.6/ On a net harvested ac basis. By definition, in Sri Lanka net harvested acreage is taken to be 85% of the gross harvested acreage. Present yields
based on reported average yields for the past three years. Figures in parenthesis are yields in tons/ac.7/ Figures in parenthesis are production in thousand tons.
SRI LANKA
KURUNEGALA RURAL DEVELOPM4ENT PROJECT
Present and Future Coconut Area. Yields and Production
-----Wet/Semi-wet Zone ---- ---- Dry/Semi-dry Zone----Holding Size Holding Size
TotalUnder 25 ac Over 25 ac Under 25 ac Over 25 ac All Categories
2/ P- W W P W W P W W P W p P W
6/Coconut Area ('000 ac)
Immature Plantations3/ 15 12 18 7 12 15 10 2 3 7 2 2 39 28 38Productive Plantations 4/ 90 90 90 114 108 108 38 45 45 53 58 58 295 301 301Senile Plantations 5/ 20 23 17 14 15 12 2 3 2 36 41 31
Total 125 125 125 135 135 135 50 50 50 60 60 60 370 370 370
Yield (nuts/ac)6/
Immature Plantations 400 400 400 500 500 500 400 400 400 400 400 400 400 500 400Productive Plantations 1,800 2,200 2,800 2,200 2,700 3,000 1,600 2,000 2,400 2,000 2,400 2,700 2,000 2,400 2,900Senile Plantations 800 800 800 1,000 1.000 1,000 700 700 700 - 900 800 900
Total 1,500 1,800 2,200 2,000 2,300 2,500 1,300 1,900 2,200 1,800 2,300 2,600 1,700 2,000 2,400
Production (M nuts)
Immature Plantations 6 5 7 4 6 8 4 1 1 3 1 1 17 13 17Productive Plantations 162 198 252 251 292 324 61 90 108 106 139 157 580 686 841Senile Plantations 16 18 14 14 15 12 1 2 1 31 32 27
Total 184 221 273 269 313 344 66 93 110 109 140 158 628 731 885
1/ Figures may not agree exactly due to rounding.2/ P = Present, W = Future Without Project, W - Future With Project.3/ Under 7 years old. Also includes underplanted areas.4/ In the prime age group of 7-60 years.5/ Over 60 years old.6/ Present acreage and yield figures based on a 1977 survey of coconut holders in the district. Future without project assumes under-
planting at the current rate of about 4,000 ac per annum. Also even without this project, considerable yield ilcreases areexpected due to improved fertilizer availability as well as recovery from current low yield levels caused by adverse weatherconditions. a
SRI LANKA
KURUNE GALA RURAL DEVELOPNENT PROJECT
Input Use for Paddy Cultivation(Per Ac)
Major Irrigation Schemes - Minor Irrigation Schemes RainfedMaha Yala Maha Yala Maha Yala
P ~W P W P w P w P W w P W w
Farm Labor (Man-days)
Land Preparation 12 12 12 10 10 10 12 12 12 10 10 10 12 12 12 10 10 10
Planting/Sowing 14 14 15 14 14 15 12 12 13 12 12 13 12 12 13 1.2 12 13
Crop Management 8 9 11 8 9 11 7 8 10 7 8 10 7 8 10 7 8 10
Harvesting/Threshing 18 19 20 17 18 19 16 17 18 14 15 16 15 16 17 14 15 16
Total 52 54 58 49 51 55 47 49 53 43 45 49 46 48 52 43 45 49
Other Inputs2/
Land Preparation (Rs) 250 225 200 250 225 200 250 225 200 250 225 200 250 225 200 250 225 200
Seed 3/ (Rs) 90 90 100 90 90 100 85 85 90 85 85 90 80 80 85 80 80 85
Feril-izers Urea (lbs) 75 100 125 60 75 100 50 70 90 40 60 80 40 60 80 40 50 60
V1 (Ibs) 75 100 125 60 75 100 50 70 90 40 60 80 40 60 80 40 50 60
Fertilizer Cost 4/.(Rs) 115 150 190 90 115 150 75 105 140 60 90 120 60 90 120 60 75 90
Agro-Chemicals (Rs) 125 150 200 100 125 150 75 100 125 50 75 100 50 75 100 50 75 100
Miscelaneous 5/ 70 80 100 70 80 100 60 70 90 60 70 90 40 50 60 40 50 60
Total non-labor inputs (Rs)650 695 790 600 635 700 545 585 645 505 545 600 480 520 565 480 505 535
1/ P = Present, W = Future Without Project, W =Future With Project.2/The reduced cost for the future reflects expected augmentation of the fagrm power supply in the district.
3/At the rate of 2 bushels/ac.4/ Assumiing continuation of present subsidy rates.5/ Includes interest, depreciation and crop insurance.
Ln ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ m
Table 4
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Input Use for Coconut Cultivation(Per Ac)
Under 25 ac Over 25 acHoldings Holdings
Labor (man-days) W W P W W
Maintenance of Drains and Bunds 1.5 1.5 3 2 2 3Maintenance of Fences 1.5 1.5 2 1 1 1.5Weed Control 3 4 5 4 5 6Pest Control 2 2 2 2 2 2Manuring 1 2 4 2 3 4.5Harvesting/Transporting 4.5 5.5 6 5 6 7Vacancy Filling & Removal of Runts 1.5 1.5 2 2 2 2
Total 15 18 24 18 21 26
Other Inputs
Fertilizer-' (lbs) 30 60 150 100 150 200(Rs) 15 30 75 50 75 100
Agro-Chesicals (Rs) 15 20 30 20 25 30Miscellaneous 3/ (Rs) 30 40 50 40 50 60
Total non-labor Inputs 60 90 155 110 15O 190
1/ P -Present, W = Future Without Project, W = Future With Project.
2/ Recommended coconut mixture with 10.3%N, 6.1% P205 and 16.6% K20.
3/ Includes interest on credit, depreciation and supervision.
116
ANNEX 3Table 5
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Prices for Financial and Economic Analysis
Agricultural Produce Financial Price Economic Price
Paddy (Rs/ X 40 65
(Rs/Ton) 1,960 3,185
Coconut (RstlOO nuts) 80 110
Cocoa (Rs/lb) 5 7
Coffee (Rs/lb) 7 8
Pepper (Rs/lb) 10 12
Farm Inputs
Fertilizers- Urea (Rs/cwt) 90 180TSP (Rs/cwt) 100 200MP (Rs/cwt) 60 120
Land Preparation-/ (Rs/ac) 200-250 180
2/Paddy Seed- (Rs/bu) 40-50 65-100
Farm Labor 10 4-8-/
1/ With improvement in farm power availability, prices are expected todecline from current Rs 250 to about Rs 200 in future.
2/ Higher prices for certified seed.
3/ Rs 8 per day during peak periods corresponding to land preparation,sowing and harvesting of the maha crop; Rs 6 per day during mediumpeak periods corresponding to land preparation, sowing and harvestingof the yala crop. Rs 4 per man-day for all other operations.
117
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Farm Budgets
----------------- Wet/Semi-wet Zone ------------------------------------ ----------------------------- Dry/Semi-wet Zone ----------------------------2.5 ac Farm 5.0 ac Farm 12.0 ac Farm 2.5 at Farm 5.0 ac Farm 12.0 ac Farm
1/ - -- ' P N N _ N N P W N P W4 N P W W4 P W W_ *'rp{ed Area (ac)
Coconut 1.0 1.0 1.0 2.5 2.5 2.5 7.0 7.0 7.0 - - - 1.0 1.0 1.0 5.0 5.0 5.0
Rainfed Paddy 2/Maha 0.5 0.5 0.5 0.9 0.9 1.0 1.6 1.6 1.8 -Yala 0.4 0.4 0.4 0.6 0.6 0.6 1.1 1.1 1.1 - -
Irrigated (Minor)Maha 0.4 0.4 0.5 0.4 0.4 0.5 0.8 0.8 0.9 0.4 0.4 0.5 0.8 0.8 0.9 1.2 1.2 1.3Yala 0.3 0.3 0.4 0.3 0.3 0.4 0.5 0.5 0.6 0.2 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.5
Irrigated (Major)Maha - - - - - - - - - 0.9 0.9 1.0 1.3 1.3 1.4 2.1 2.1 2.3Yala - - - - - - - - 0.5 0.5 0.7 0.7 0.7 0.9 1.1 1.1 1.3
Chena and Home Gardens 0.5 0.5 0.5 1.0 1.0 1.0 2.0 2.0 2.0 1.0 1.0 1.0 1.5 1.5 1.5 3.0 3.0 3.0
Crop Production
Coconuts ('000 nuts) 1.5 1.8 2.2 3.75 4.5 5.5 10.5 12.6 15.4 - - - 1.3 1.9 2.2 6.5 9.5 11.0
Paddy (bushels) 49 53 70 68 73 98 129 140 182 97 106 142 148 157 202 230 245 306
Chena and other crops (Rs.) 500 550 650 900 950 1,050 1,600 1,700 1,800 900 950 1,050 1,300 1,350 1,450 2,200 2,300 2,500
Gross Value of Production (Rs.) 3,660 4,110 5,210 6.625 7.470 9.370 15.160 17,380 21,400 4,780 5,190 6,730 8,260 9,250 11,290 16,600 19,700 23,540
Production Costs 3/
Non-labor Inputs (Rs.) 935 1,025 1,295 1,390 1,545 1,945 2,705 3,060 3,955 1,360 1,500 1,945 2,140 2,295 2,940 3,620 3,980 5,105
Total Labor Input (man days) 107 114 136 176 189 227 365 395 473 140 149 178 228 238 283 431 456 534Of which Hired Labor(man days). - - 7 10 20 70 80 120 - - 7 20 23 40 110 120 170
Cost of Hired Labor (Rs.) - - - 70 100 200 700 800 1,200 - - 70 200 230 400 1,100 1,200 1,700
Total Production Costs (Rs.) 935 1,025 1,295 1,460 1,645 2,195 3,405 3,860 5,155 1,360 1,500 2,015 2,340 2,585 3,340 4,720 5,180 6,8055/
Net Farm Income 2,725 3,085 3,915 5,165 5,825 7,175 11,755 13,520 16,245 3,420 3,690 4,715 5,920 6,665 7,950 11,880 14,520 16,735
1/ P = Present. N = Future Without Project.2/ Cropping intensities are assumed to decline somewhat with increasing farm size.3/ Per ac production costs for chena crops are assumed to average Rs 150 of non-labor inputs and 60 man-days of farm labor.4/ Excluding cost of family labor.5/ Inclulding imputed value of farm produce consumed at home.
SRI LANKA
KURUNEGALA RURAL DEVELOPMENT PROJECT
Annual Crop Production Costs (Economics)
Average Unit Cost Quantity Used Economic Cost (Rs M)
- 1/ _W - W Increment W W Increment
A. Production Inputs for Paddy
Land Preparation ('000 ac) Rs 180/ac 248 272 24 44.6 49.0 4.4
Seed ('000 bushels) Rs 75/bushel (W) 496 544 48 37.2 46.2 9.0
Rs 85/bushel (W)
Fertilizers Urea ('000 tons) Rs 3,600/ton 7,400 10,550 3,150 26.6 38.0 11.4
Basal Misture ('000 tons) Rs 3,200/ton 7,400 10,550 3,150 23.7 33.8 10.1
Agro-Chemicals - - - 22.8 32.6 9.8
Miscellaneous - - - 7.7 10.9 3.2
Labor (M man-days)
Peak Periods Rs 8/man-day 6.48 7.26 0.78 51.8 58.1 6.3
Moderately Peak Periods Rs 6/manday 3.02 3.78 0.76 18.1 22.6 4.5
Slack Periods Rs 4/man-day 2.02 2.76 0.74 8.1 11.1 3.0
Sub-total 11.52 13.80 2.28 78.0 91.8 13.8
Total all Paddy Inputs 240.6 302.3 61.7
B. Production Inputs for Coconut Say Rs 62 M
Fertilizer (Coconut Mixture) Rs 2,200/ton 18,000 29,600 11,600 39.6 65.1 25.5
Agro-chemicals - - - 8.4 11.1 2.7
Miscellaneous 8.4 10.2 1.8
Labor (M man-days)
Slack Periods Rs 4/man-day 7.07 9.27 2.20 28.3 37.1 8.8
Total all Coconut Inputs 84.7 123.5 38.8 z 3
Say Rs. 39 M i z
- IW=Future without Project, W Future With Project.-a
ANNEX 3Table 8
SRI LANCA
KURU4EGALA RURAL DEVELOPMENT PROJECT
Economic Rate of Return
Investment Gross IncrementalYear Costs 0 & M Costs Incremental Benefits Produztion Costs
Paddy Coconut Paddy Coconut
-...--------- (Rs. 1) -------------------
1 52 0 0 0 3 2
2 72 0 8 0 6 4
3 54 0 16 8 15 10
4 42 0 3 9 17 28 16
5', 40 0 aO 43 40 21
6 10 4 101 68 53 27
7 13 4 133 94 62 31
8 10 4 156 119 62 33
9 8 4 156 136 62 35
10 5 4 156 145 62 37
11 4 4 156 153 62 39
12-30 0 4 156 161 62 39
13-30 0 4 156 170 62 39
Economic Rate of Return = 30%
120
ANNEX 4
SRI LANKA
KURUNEGALA RURAL DEV:ELOPMENT PROJECT
Related Documents and Background Papers inProject File
A. Reports and Studies on the Economy and the Sector
1. Development in Sri Lanka: Issues and Prospects, World Bank,March 1978
2. Agricultural Sector Survey, Republic of Sri Lanka (Vols. I-IV),World Bank, February 1973
3. Agricult'aral Policy and Program Review, World Bank, February 1975
4. Census oe Population, Sri Lanka, Dept. of Census and Statistics(GOSL), 1971
5. Census o:' Agriculture (3 Vols.), Dept. of Census and Statistics
(GOSLIP, 1973
6. Census oil Housing, Sri Lanka, Dept. of Census and Statistics(GOSL:, 1971
B. Reports and Studies Related to the Project
1. Project Identification Report, World Bank, 1977
2. Project Preparation Reports on various Project Components (18 vols.),Government of Sri Lanka, March/April 1978
3. Mission Working Papers on Rural Electrification, Rural WaterSupply, Health, Education, Coconut Development, AgriculturalCredit and Agriculture Extension (7 vols.)
121
SRI LANKAKURUNEGALA RURAL DEVELOPMENT PROJECT
Proposed Organization for Project Coordination and Management
(Kuru.-egala) (Colombo)
Distic Minister _ ____m Secretary, Plan Implemetasioo
Project Coordirw-l | Government Agent rector egona Projec tneg Committee
1-' | Kutunegala I Development Com I
c Drt Project Preparation | lUnit l l PoetCl
Deputy Directors 4 Chief. Project Cell I
Accounts Unit Planning and l Technical Asst. Directors 4 (Dy. Director)Accounts UoodiatonnniiUttSupporting Staff Evaluation Officer I
Coordination Unit | Unit Dev./Statistical
Officers 2Accountant 1
Accountant I Deputy Director I Engineer 2 Supporting StaffSupportig Slaff Asst. D,rector I Technicians 4
Development 2 SupportingOf ficers Staff
Supporting Staff
1/ Project Coordinating Committee 2J Project Steering Committee
District Minister IChairmanl (Chairman) Secretary, Plan Implementation lChai, man)Government Agent. Kurunegala iVice Chairman) Chairman AgriculturalSecretary, Plan Implementation (Member) Development Authoritv (Men 'mr)-Director, Regional Development t' Director, IrrigationChief, Project Cell ,, Director, Agriculture
Regional Dev. Division Director, HighwaysDistrict Agricultural Extension Director, Buildings
Officer (DAEOi Director, Minor Export CropsChief Engineer, Irrigation Director, EducationChief Engineer, Highways Director, Health ServicesSupdt. Engineer, Buildings Director. Planning Division, Ministry ofAsst. General Manager. Finance and Planning
Coconut Cultivation Board Director, Animal Production and HealthDistrict Manager, Bank of Ceylon Director, Agrarian Research & TrainingDistrict Manager, People's Bank InstituteProvincial Director, Director, Dev. Finance, Central Bank
Agricultural Dev. Authority Director, Agrarian Services DepartmentDistrict Officer, Minor Export General Manager, Coconut Cultivation Board
Crops General Manager, Ceylon Electricity BoardDeputy General Manager, Commissioner, Local Government
CeVlon Electricity Board Commissioner, Cooperative DevelopmentAsst. General Manager, National General Manager, Bank of Ceylon
Water Supply and Drainage Board General Manager, People's BankAsst. General Manager, Water General Manager, Water Resources Board
Resources Board General Manager, National Water Supply &District Livestock Officer Drainage BoardSupdt. of Health Services Government Agent, KurunegalaDeputy Director of Education Project DirectorAsst. Director, Agrarian ServicesAsst. Commissioner, Co-op Dev. Director, Regional Development (Mer.ber
Project Director (Member Secre ary)Secretary)
The Secretaries of the concerned Ministries and Chairm. n ofConcerned Corporations would attend meetings whenrequested by the Chairman. Steering Committee
World Bank 20053
122
SRI LANKAKURUNEGALA RiURAL DEVELOPMENT PROJECT
IMPLEMENTATION SCHEDULEI/
1978 1979 1980 1981 1982 1983
I temr Year3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th
A. GeneralAppointment of Project Director vEstablishment of Project Coordination
and Steering Committees vBoard Presentation vEstablishment of Project Office
and OrganizationCredit EffectivenessPreparation of Bids and Tender
Documents for Equipment (All Agencies) _Bid Opening and Evaluation for
Equipment (All Agencies)Award of Contract for Equipment (All
Agencies)Delivery of Equipment (All Agenci,s)Hiring of ConsultantsStaff Mobilization (All Agencies)Preparation of Reporting Format for
Project StaffPreparation of Plan for Project Evalua-
tion and Submission to IDAPreparation of DSHPreparation of Projects for other
Districts _ _
Submission to IDA of Annual Work Program _ ___Submission to IDA of Progress Reports _ J__ _ _ _ _ _V _ T _ _ _ _
B. Irrigation and Water ManagementI i Major Irrigation Works Program 50% 80% 100%,
Investigations 20% = 50% = 81% | 10 0|Surveys and Designs 10% 1 140%_ 1 80% I 100%, rEarthwork 5% 130% - 1 70% TOO%, r
Desilting 5 1 30%1 1 70% 90% 1(50%
Construction Control Structures - -Construction Drainage Sturcutres 5 130% _ 70% 90% | | |00' -
Road Surfacing 20 7 0 _ I
I lii) Village Irrigation Schemes Program icc 10 250 400 500Investigations (No. of Schemes) -= _ 50 150 300 T l 400 500r
Surveys and Designs (No. of Schemes) 1 30 100 I I 250 1 _ 350 1_ 1 500i p
Earthwork iNo. of Schemes) 120 100 1 250 350 | 500
Structures Rehabilitation INo. of Schemes) _Submission to IDA of
Annual Program
(iii) Water Management ProgramImplementation Channel Rotation (No. 1 3 5 7 9
of Schemes) - I
Village Irrigation Schemes INo. of 101 I | 100 250 | | 400 | | 500
Schemes) 80% 100%
liv) Lift Irrigation Works/linvestigations -_ _ - I
C. Rural Roads Program 100%
Investigations 50%1 100%
SurveysandrDesigns l 11041 1 160% 80% 100%I-
Construction of Drainage Structures 1 0f 0 60%1 _ 80% 1000%,1Road Earthwork l l |20%| | 160%1 = -- 180% 100%
Road Gravelling 40% 1 190%- I
D. Rural Electrification Program 100 % 6 %
1/ Cumulative percentage 1%) and/or numbers.World Bank -20054
123
SRI LANKAKURUNEGALA RURAL DEVELOPMENT PROJECT
IMPLEMENTATION SCHEDULE1-/
1978 1979 1980 1981 1982 1983Calendar- -
tem Yar h nda rd 3rd 4th 1st 2nd 3rd 4th
E. Grounidwater Exploration Program 1 I0%
Investlations _
Resistivity Stirveys and Geohydrological 10% 70% 1 00% p
Mapping 5 50% 1 1%
Core Drillinig/TestvelIs _ _ _ 20'0% _ I 18%Monitoring anrd Evaluation _ _ _ _ _ _ _ _
F. Rural Water Supply Program 100% I
hiventory Survey _
Sturey Evaluiation aiisl Selection of 100% IF
Well Sites 5% 3!% _ _ 0% 100%Construction of Wells_ _ _ _ _ _ T T
G. Coconut Developmenti) lntercropping Program
Construction of Buildings for 50% 1 00% t
District OfficeLand Development and Buildings 50% 100%
for Nurseries 40% 100%
Land Development for Demonstration Plots 0.5 __ _ 1.7 3.7 1 .5 1 10.0,
Area Intercrppped (000' ac) _ _ _ _ -_ _
lii) Rehabilitation ProgramLand Deveiopment and
Buildings for 20% 1 160% 100%'
Nurseries_ _ _ _ 1 .0 = = 4.0 _ _ |tO 1.0 .0
Area Replanting/Underplanting (000'ac) 2.0 - 5.0 1 N 1 = 14.0 f.0 20.0 r
Area Contour Drains (000'ac) _ _ _ 2.0 10.t = I = .0
Removal of Excess Palms 1000'ac) _ _ _ _ TH. Agriculture Extension 10% 70%1 _ 100%i
Construction of Staff Quarters 100% t_ _ _1Extension of DAEO's Office_ _
1. Agriculture Input SuppliesLand Development and Buildings 25% 75% 100%'
for Seed Center 30%1 55% _ _ 10% |
Expansion of Storage Facilities 10% 130%1 1 60% = 80% 100%*
Procurement and Sale of Farm Machinery _ - _ _
J. Agricultural Credit
Preparation of Debt InventoRies
Settlement of Old Debts
Preparationof Agro-Identity Cards
Aninual Leniding: (Rs. million) 7.5 112.0 17.01 ,2'..5 28.5
(I Field Crops 1. i gA7. 1i!0 I 1 ,5.9Iii) Coconut Rehabilitation -. . -0. __ .1 5_ .7
(iii) Farm Equipment 1.6 3.0 _ __ .
(iv) Vehicles for MPCSs T _I K. Livestock Facilities 20% 60% 100%
Construction of Office/Clinic Building 15% 40% 170% 1 0%
Construction of Staff Quarters _ _
L. Health Facilities 5% I 30% 160%I _ 90%1 100 o%Construction of Buildings 100%
Installation of Generators
M. Education Facilities Program - 10% I - 35% _ 6 Bu% | 1i00-
Construction of Teachers Quarters 15% 140% 1 60%1__ 8s1% _ 100%
Construction of Classrooms 10% 30% 155% 75% 100%
Extension to Secondary Schools r _ _ - - -
1. Cumulative percentages ;%) and/or numbers, except for Agricultural Credit.World Bank - 20055
124
79r45 SRI LANKA 80°000 80°15'
KURUNEGALA RURAL DEVELOPMENT PROJECT Buy ol Bengal
PHYSICAL FEATURES AND PRINCIPAL LAND USE )'1s ~~ANURADHAPURA AN,_
Rjbber 41'i-'u AL.t- i .:, . . !r(AMJRADHAPURA>
_ Rubber - 3 _ rLNAUA
Forest Reserves )\ '/LOUUARUW5
Coconuts MAT -L lOC
* Poddy Land|u ] Chena and other usage KA..Y
C NUUWA.A. OA.'L
Agra-Cimatc Regions RATNoU
SATARA
-80001
0 10 20 ~
7 45~~~~~~~~~~~~~~~~~~~
MILES~~~~~~~~~~~~~~~~~~~~
~~~~~7e30 703~~~~~~~~~~~~~~~~~~~~~~ M T L
: ./~ ~ ~ ~~~T, reps m has boon pro pard by the 5 . z ~~~~~~~~~~~World Bani's staff erccisirely for
. : r; ~~~~~the cotwenience of the readers of 'KEGALLA ; . . I r~~~~~~~~~~~~he report to whkch it is attached.,J
N r S r S \ X p~~~~~~~he denom,netions usedf arid the _: I \ ~~~~~~~~~~~boundaries shown on this map I
\ t \ ~~~~~~do not imply. on tho part of the . ' 1 \ . 1 ~~~~~~~WootId Banks end its affFiiates. any n
f a g \, \judgotent en the legJal status of I / <w
: . \ t 1 ~~~~~~~~~any territory or any endorsement w X . 5 ,; \\,, \ ~or acceptance of such hoondeojes. . , N.
i; t:::ff '\E (W ./~~ Cm _'
PUTTALAM ~ 000 805 000
79045' 80°000 80 '15'
SRI LANKA / Boy of 8r"gal
KURUNEGALA RURAL DEVELOPMENT PROJECT >.AVUN A
SOCIAL INFRASTRUCTURE VAV
POPULATION { Popolartion Density per Square Mi e / JI _
Less a 450 ANURADHAPURA nAN4RADHAP0RA Qzg 2450 - 900 UAHPR
- Above 900 'e OL_NAU
HEALTH FACILITIES iFT _/_l__
Genera; HospitalA District Hospitals K
Rurrol Hasp to;s~16A.-Lo Other HealTh Facilhties K/YA
Areas of Deficient Drinking Water SuDply ,', S A
Distr ct Bounacries
Elecrorial Bourdaties 3
INDLN OCEANr ;m
10 <X0 COOBO0v
70015' ~ ~ ~ ~ ~
This rw, hals h en sd by th^ COL MBW4on/i 8asks ssarftesc 'e/y tsr \ ::the csnenle ei the r s oif < thees.towht vihitisa ',ued.q\\/( c3The*nrnlnetoeinrs sedqh n:hews/stie shownr on this 7P 1 *_ do et imply onthe fpanf*t a 9/ ')r
jodgsFest en? the legs/dsts rr / Z wend Bank \td/tn ettilletes, oo 80 1 /)G
at' 4 030
I
79045' 80'00' 80015
SRI LANKA Bay of Senrol
KURUJNEGALA RURAL DEVELOPMENT PROJECT A
MAJOR IRRIGATION WORKS AND \7'VAVUN
RURAL ELECTRIFICATIONTRANSMISSION LINES ANURADHAPURA I ANuRADHArURA (
132KV r
66KV33KV
pu LAM
I 1I1KV \ i \ ;J_ ATALEh
33KV lines Under Construction 2\\ t14 .
SUBSTATIONS GALGAMUWAg k_ Ui KEGAL LLAAJ
* Substations
* Grid Substations A..G LA
PROPOSED WORKS
8o00 * Viliages to be ElectrifiedMajor rrigation tanks Rehabililation Galga
Roads ' PTank daa N
-+--'--I- IIRailways Tn 80,
I \ -- - ~~~~~~District Boundaries Amaol ! - I
i: 0t ---- ~~~~~Electorial Boundaries j fAaoeTn k
7045'~~~~~~~~~1
C|KILOMTERS,
0 0 f k ~~~~~~MILES {. X Ti ba wa+/ "
_7aS5 g 0;8 t _ (_ _ 9n7 Ramb.s D5
#f~e0te4&.e ~ ed x' PANAGAMUWA/HGADAlPOLARIYAt A
P TTALAM~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~,UUEAT
da 'V0' P0TC5"'8030'
ZiESL; X\J 0 SSA KUGAMP L,- D i
:: 13 :: i:: 9 iA r / t~~~~~~~~~~~~~~~ME OF RURAL ELECTRIFICATINCEE
i-7055 ~~~ 0; : 0-: X i:l: i| / / 4 j 11i OHIR~~~~~~T'P'T' _ A 7° l
' / : (i)TITT~~~~~~~~~~~~~~~~~~AWELL PELLANDENIYA .
:: F : : i (ii~~~~~~~~~~~~~~~~~3MAHAMUKALANY1AYA/DOHOLWOHR
5 - if ;.; ; 09& COLOMBO y (SKAUDAW~' ATTE/ASWEDDUMA.
thb w ?1tt ff 7idby 6h6 i T BAM UN UG E DER AtM ADA LANWATT E
= t~~~~forf, /IHINDAGOLLA MEEGALLA & GALAPITAMULLAfO
fSe ie:tht tped t \5 / | ~~~~~~~~~~~~~~~~~8 PANAGAMUWAIOGADALPOLA < C
*ff wtlW$* E / . 09~~~~~~~~~~~~~~~~~~)KULIPITIYA ' :
t * s t w \i / ) 8~~~~~~~~~~~~~~~~~~~~~~to DUNUKEWATTED
\ti 40°00 roooo 80°15 1' 80.3p,[
79045' 80°00' 80015' /SRI LANKA
KURIJNEGALA RURAL DEVELOPMENT PROJECT ,
TRANSPORT NETWORK VNVVARU-
: > 4 ' i j r t~~~~~~~~~~~~~~~~~~T0IN t M.0J
\ // AN~~~~URADHAPUPA ;; "pNtjAHPr PROPOSED PROJECT ROADS ,, _N/At PUR ) _
Gravel Surfaced Roads PT
EXISTING ROADS N-
Class A > SGALGAMUWA KE, L A
Class B
Class C Metfa an Tarred
-8 00, - Class C GraveiC ass D Meta and farred
- Class D Groivel _____ _____ ____ _____ _____ ____: Mahaneriy/J ,f \
R Rlwaiys \>,A/&i\ttj> /80°30'
- - District Boundaries
-- Eectoral Boundaries _. m, ) n ola
7;30 ] odoe 1 20: . l ~~~~~KILOMTERS. | /
0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~ILG ACCE ROAD (~ woko * cc IIA4|.
y 0 t; X / yS L^v K 0 KonWa 7
: i : 0 0 1 t ig / ;t~~~~~~~~~~~~~~~~~~~"5 Kumb kulawa Potuwil a YphwGaltCflweKa °li ': ' 5 : / / / \ tj D;ul~~~~~~~~~~~~~~~~~~~~Oiwewa Kuruwkoloisoa Ella Ksdoesboocc: f ; I: @ NENomDD / ~~~~~~~~~~~~~~~~~~g) NqolI.gor Kosormbt o G acccwE Morscjclowa
i : 0 3 0 | \\\$ / / ffi ~~~~~~~~~~~~~~~~~Kox.isane Sijjkelo scHOaL ACCESS ROADS
-7945, PUTTALAM 200 1= \s \\t , , W Ambakadartwa Mshihwma g AluroN2A _; i 0 :: \t (\t // i~~~~~~~~~~~~~~~~~~~~' Hooter ego Ridigonro 23 Golgononwo ldror;Yya
i ;; 4; \\~~~~~~~~~~~~~~~~~~~~~~~~1 \ .O 2 Buloalla Kohngoa '26 Acrnes to Bolootookanda Schood > _, d u r y K'. b . A i; ' 5 ; t X i ) \ 0 " 1 A e h u n a w a r a P a r a n ; m a 2 6 E r a p o l a k ;e d a n
3 2 0 : - - i: tC >% \!r < / - 900 ~ ~ ~ (i MahgskdsosMhnocniog 2 Agara Sthroo _~ toi;gS r W 5ARA80 en