Jordan - Second Agricultural Credit Project

DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION For Exclusive Use of Bank Group Staff Report No. 460 PROJECT PERFORMANCE AUDIT JORDAN - SECOND AGRICULTURAL CREDIT PROJECT June 11, 1974 Operations Evaluation Department The confidentiality of this report must be strictly observ Iedae for exclusive use of the Bank Group Staff. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report. To be returned to Reports Desk immediately after use  PREFACE The procedure followed by the Operations Evaluation Department in its current work program is to cover IBRD/IDA projects for which disburse- ments ended in the first half of FY1973. Credit 103-JO of May 9, 1967, to Jordan was closed in October 1972. This report is an audit of achieve- ments under the credit measured against the objectives on the basis of which it was originally approved. The implementation of the project was greatly affected by the outbreak of hostilities with Israel in June 1967, and sub- sequently, by frequent exchanges of fire along the armistice lines and civil strife in many parts of the country. To prepare the audit, relevant IDA files were reviewed and the im- plementation of the project was discussed with some IDA staff and Jordanian officials who had been involved with it. A two-week mission to Jordan was undertaken in October 1973, to update the data and to discuss briefly the relevant issues with the parties concerned, but the renewal of hostilities restricted the field work of the mission. The valuable assistance provided by the Agricultural Credit Corpora- tion and the IBRD/UNDP Mission is very gratefully acknowledged. Currency Equivalent: 1 US$ = JD 0.3571 (from 1964 to May 1973; applied throughout this report) 1 US$ = JD 0.3215 (from May 1973 to date) 1 hectare = 10 dunums  TABLE OF CONTENTS Page No. SUMMARY i ii Basic Data Sheet iii - iv I. BACKGROUND 1 II. THE PROJECT 2 III. FACTORS AFFECTING PROJECT PERFORMANCE 4 A. War and Civil Disturbances 4 B. Lending Patterns 4 C. Collection Performance 7 D. Loan Appraisal 8 E. Coverage 9 F. Cost of Lending 9 G. Sectoral Planning 9 IV. CONCLUSIONS 10 Annex Tables Table 1: [DA Disbursements by Category Table 2: Project Composition at Appraisal Table 3: ACC - Lending Program and Project Financing Table 4: Estimated Project On-Farm Investment Targets Table 5: ACC - Loan Commitments by Functional Category 1967-1973 Table 6: ACC - Disbursements by Branch Table 7: ACC - Outstanding Portfolio and Arrears Distributed According to Branches Table 8: ACC - Loan Arrears, Collections, and Extensions Table 9: ACC - Distribution of Borrowers by Value of Loans for Five Selected Branches Table 10: Project Sample Selected Indicators on the Distribution of Lending Table 11: ACC - Balance Sheet Table 12: ACC - Profit and Loss Statement Table 13: ACC - Cash Flow Statement Map: Location of Agricultural Credit Corporation Offices and Irrigation Project Areas  SUMMARY Credit 103-JO for US$ 3.0 million (JD 1.08 million equivalent) was signed in May 1967. The purpose of the credit was to supplement ACC's resources for the extension of JD 1.8 million in loans to farmers for land reclamation and improvement, tree crop establishment, farm water supply development, purchase of farm machinery, and on-farm development on govern- ment irrigation schemes. The estimated 3,000-4,000 participating farmers were to contribute the remaining JD 0.36 million to the financing of the project, with a total cost of JD 2.16 million. The estimated foreign ex- change component of JD 0.88 million was equivalent to 41% of total project cost and 82% of the IDA credit. In addition, ACC was to lend outside the project, over the same four-year period through 1970, JD 3.6 million from its collections and profits. The above arrangements, whereby ACC would be relying for the major part of its lending on its own resources, were designe(J to spur loan collections to the maximum extent possible. The outbreak of hostilities in June 1967 and the occupation of the West Bank of the Jordan River restricted the project to the East Bank. An IDA review mission then determined that ACC could still make timely and appropriate use of the full amount of the credit provided that minor adjust- ments were made in the approved loan categories, and that poultry investments were added to the project. Subsequently, because of frequent exchanges of fire along the armistice lines and civil strife in parts of the country, the project concentrated on the eastern highlands. These circumstances caused a marked change in the lending program. About 2,500 farmers received project lending as compared to 3,000-4,000 projected. The area financed amounted to 158,000 dunums, as compared to 50,600 projected; and two-thirds of this area was under rainfed cultivation, as compared to no more than one-third projected at appraisal. Investments per dunum in tree crop cultivation were much lower than projected, while investments for production of vegetables and cereals were perhaps larger than warranted. A rough estimate of project returns yields a financial rate of 15%, as compared to 45% projected, and an economic rate of about 10%, as compared to 30% projected. The collection performance of ACC has been unsatisfactory although ACC has somewhat tried to increase its efforts in this field. For the project, arrears averaged about 15% of the loan portfolio, and collections averaged about 35% of dues over the last three years. For loans financed by a previous IDA credit and by non-IDA resources, arrears averaged about 33% of the loan portfolio and collections averaged about 16% of dues, from 1967 to mid-1973. Ordinarily, this record would have led IDA to suspend disbursements, but in view of the difficult circumstances, previously mentioned, the project re- ceived special consideration. Several factors accounted for inadequate collections. First, farmers hoarded money during disturbances, and in more normal times their attitude was not very conducive towards repayment. ACC, on the other hand, does not appear to have pressed collections adequately. Second, returns from rainfed cultivation have been irregular and modest at - ii - best, and ACC farm appraisal procedures have been weak, so that farmers' debt burden may have been excessive. Third, insufficient sectoral planning and support in the form of applied research, regulation of production, and mar- keting and processing facilities, coupled with unstable trading relations with neighboring countries sometimes led to prices at farm gate dropping below production costs. Further improvements are needed in the operational programs of ACC if the institution is to contribute more fully to Jordanian agricultural development. The proportion of the farming population covered should be also increased from the present 5% which received ACC financing over the last six years. - iii - JORDAN SECOND AGRICULTURAL CREDIT PROJECT Performance Audit Basic Data Sheet Technical Report No. TO-586a (April 14, 1967) President's Report No. P-536 Credit No.: IDA 103-JO 1. Borrower - Government of Jordan 2. Beneficiary - Agricultural Credit Corp. (ACC) 3. Amount of Credit - US$ 3 million 4. Amount Cancelled - nil 5. Amount Disbursed - US$ 3 million 6. Amount Outstanding (as of Dec. 31, 1973) - $3,610,164 a 7. Amount repaid to June 30, 1973 - nil 8. Date of Credit Agreement - May 9, 1967 9. Date of Effectiveness - October 3, 1967 10. Closing Date: Original - October 31, 1971 First Extension - December 31, 1972 11. Month of Final Disbursement - October 1972 12. Term of Creditb/ - 50 years 13. Grace Period - 10 years 14. Service Charge - 3/4 of 1% a/ Including exchange rate adjustments. b/ ACC was to repay the Government in JD's over a period of 20 years, including a 10-year period of grace, with interest at 3-1/4% per annum. The Govern- ment, in effect, has reimbursed all interest charges to ACC. - iv 15. Number of Supervision Visits - 10a 16. Overall Time Overrun - 25% (12 months) 17. Fiscal Year - ends December a/ Schedule of supervision missions: July 18 - 25, 1967 March 19 - 25, 1968 September 8 - 16, 1968 February 9 - 19, 1969 August 23 - 30, 1969 March 1 - 13, 1970 July 19 - 29, 1971 January 9 - 19, 1972 July 11 - 20, 1972 March 20 - 27, 1973 I. BACKGROUND The first request for an IDA credit for the Agricultural Credit Corporation (ACC) was received from the Government in 1961. In the course of the next two years substantial changes in ACC's policies and organization were introduced on the recommendation of IDA. In order to improve its fi- nancial position, ACC discontinued its short-term credit operations in 1963, and it increased the rate of interest on medium- and long-term loans to farmers from 4 to 5.25%. In December 1963 IDA extended a first credit of US$ 3 million (Cr. 44-JO) for land reclamation, farm water supply, farm mechanization, livestock development, and farm building and storage facilities. During this first project, ACC was expected to strengthen its staff and improve its procedures to cope with an increased volume of operations: loan approval up to specified limits was delegated to branch offices, which were increased in number, accounting and statistics were strengthened, and the technical staff benefited from overseas training and from USAID technical assistance. However, in-service training remained inadequate, particularly in the tech- niques of assisting borrowers in the preparation of farm plans, and in loan appraisal methods. A preliminary request for a second credit was received from ACC late in 1965, but project appraisal was deferred until late 1966, and negotiations until early 1967, in view of a shortage of IDA funds, and because ACC had substantial cash reserves at that time. The Government's request for a credit of US$ 5.8 million to help finance ACC's lending program over a four-year period was scaled down to US$ 3 million. Agricultural output for the whole country had been increasing by 7.3% per annum from 1962 to 1966, but East Bank production decreased by 2.2% per annum from 1967 to 1971. At the time of appraisal, the agricultural sector employed about one-third of the labor force and contributed 25% of GNP. There appeared to be little registered rural unemployment but there was con- siderable scope for increasing the low incomes of the farming, bedouin, and rural refugee population through the development of the agricultural sector. The biggest problem confronting agricultural development was insufficient water supplies. The Government had systematically attempted to develop irri- gated farming through the comprehensive use of surface and underground water. Projects which had been under way were aimed at increasing the irrigated area of 75,000 hectares, but most of Jordan's cultivated lands would continue to depend on erratic rains. Crops with relatively small water requirements, especially tree plantations, were therefore encouraged. Dry farming in marginal areas close to the desert, where cereals could be grown with satis- factory yields in years of abundant rain, was increasingly mechanized. During 1962-66, the Jordanian economy grew at over 8% per year in real terms. Price stability prevailed, and high levels of foreign assistance permitted a sustained surplus on the balance of payments. However, the out- come of the June 1967 hostilities changed this situation and the economic perspectives radically. In particular, Jordan was confronted with the Israeli occupation of the West Bank, which not only led to a considerable reduction in the already modest resource base, but it also added over 300,000 refugees to the overpopulated East Bank, bringing the total population to 1.7 million. The occupation of the West Bank, comprising only 6% of Jordan's - 2 - territory but 30% of its population, deprived the country of about 40% of its GDP and severely curtailed the growth of the most promising sectors, agriculture, tourism and industry. The immediate aftermath of the war, the disruption of economic activities during the civil distrubances of 1970/71 and the closure of the Syrian and Iraq borders to Jordanian trade for 16 months thereafter led to a period of overall economic stagnation from 1967-71. Economic indicators since 1972 have shown some recovery of activity mainly due to increases in agricultural production because of adequate rainfall. The circumstances since 1967 made the Jordanian economy even more dependent on external transfers, which together with net factor income from abroad have, on the average, accounted for roughly one-third of GNP since 1969. II. THE PROJECT The purpose of the [DA credit of JD 1.08 million was to supplement ACC's resources for the extension of JD 1.8 million in loans to farmers. The estimated 3,000 to 4,000 participating farmers were to contribute the remaining JD 0.36 million to the financing of the project at a total cost of JD 2.16 million (Table 3). The estimated foreign exchange component of JD 0.88 million was 41% of total project cost and 82% of the IDA credit (Table 1). Goods required for farm development were to be procured locally through normal commercial channels, since competition for imported and local goods was assured. As in the first credit, the project included land recla- mation and improvement, farm water supply development, and farm mechanization, but there was a larger concentration on tree crop and vineyard establishment and on-farm development within government irrigation schemes. Unlike the first credit, however, livestock, poultry, farm housing and storage facilities were not considered at appraisal priority investment categories for project financing. After about 12 years the project was to generate incremental annual outputs of fruits and vegetables of approximately 95,000 tons, with an estimated value at farm prices of JD 2.8 million. Assuming that one-fourth of this output could be exported, and that resources would be allocated to subprojects as described in the following sections, it was estimated that the return to the economy would be over 30%, and the financial returns to project farmers would be about 45%. The total lending program which ACC proposed for itself at the time of appraisal was JD 8 million for the 1967-70 period. This was considered too ambitious by IDA on the grounds of ACC's inadequate staffing for loan appraisal, the danger of excessive farmer indebtedness, and the shortage of supporting agricultural services, so ACC agreed to reduce its lending program to JD 5.4 million. The remaining JD 3.6 million (Table 3) for lending out- side the project was expected to be available to ACC from loan collections and profits. The above arrangements, whereby ACC would be relying for the major part of its lending on its own resources, were designed to spur loan collections to the maximum extent possible. About JD 3 million of these - 3 - internal funds would be allocated to investments for subprojects involving draft animals, local cattle and sheep, poultry and storage and processing facilities. The remaining JD 0.6 million would be contributed by ACC to the Central Cooperative Union (CCU) revolving fund for the extension of short-term credit, a fund which would provide among others the complementary working capital to farmers obtaining development loans from ACC. This total lending program was within the framework of the Seven-Year Development Plan 1964-70 and aimed at the improvement of Jordan's limited land and water re- sources and their development for fruit and vegetable production. In order to ensure adequate project implementation and performance, certain assurances were obtained during negotiations. First, ACC would raise its interest rate to borrowers from 5.25% to 6%; it would charge a penalty rate of at least 1% on loans in arrears; and it would increase its staff of collectors and foreclose when necessary. Second, ACC would have its financial resources fully utilized for loans and would keep for contingencies only over- all cash reserves which should not exceed about JD 50,000 over and above the amounts currently required for disbursements on loans approved, such amounts being estimated at about JD 300,000. Third, apart from the necessary reliance on mortgages which generally secure ACC's loans, increased emphasis was to be placed on appraisal methods in order to obtain a more thorough assessment of the cost of projects, of the revenues which they would generate, and of the necessary amortization periods. These assurances were generally met, with the following exceptions. The rate of interest was raised to 67 but no penalties were apparently charged on loans in arrears. The rate of col- lections is still unsatisfactory and foreclosing is not a credible or effective option at the disposal of ACC. Cash balances increased from JD 0.7 million in 1969 to JD 1.2 million in 1971, and they amounted to JD 0.9 million in 1973. Finally, there has been no systematic assessment of actual investment costs and revenues to improve farm planning and loan appraisal methods. The credit was signed in May 1967. The outbreak of hostilities in June 1967, and the occupation of the West Bank of Jordan restricted the project to the East Bank whose share of Jordan's total agricultural production was about 75% for cereals, 40% for fruit and vegetables, and 20% for olives. A review mission determined that ACC could still make timely and appropriate use of the full amount of the credit provided that minor adjustments were made in the approved loan categories. The adjustments involved reductions in land recla- mation and improvement, tree crop establishment, and farm water supply and development; and increases in farm machinery and on-farm development within government irrigation schemes. Poultry development was also added to the categories eligible for financing (Table 4). Demand for poultry was growing rapidly since 60% of broilers consumed in Jordan had come from the West Bank. The Government had secured emergency financing for construction in six irri- gation schemes, all located east of the Jordan River. It was estimated that the East Bank might approach self-sufficiency in cereals, but that there would be deficiencies in vegetables, fruit and olive production. Several programs for on-farm development in irrigated areas were to enable farmers to close the likely gap in vegetable production within two years and fruit production within five years.  III. FACTORS AFFECTING PROJECT PERFORMANCE A. War and Civil Disturbances Because of frequent exchanges of fire along the armistice lines andl civil strife in many parts of the country, the project concentrated on the eastern highlands (Jerash, Irbed, Ajloun, and Mafraq areas) while activities were more restricted in the Jordan Valley (Table 7). Many of the larger farmers located in the areas affected by the disturbances had reduced their operations or stopped them altogether. Most of the Government irrigation schemes on which farm development had been mainly based were located in the Jordan Valley, and work on these had to be stopped or was considerably delayed. These circumstances caused a marked change in the lending program and resulted in a steady decline of ACC loan commitments and disbursements until the end of 1970 when civil strife in the country was brought under control and farming activities could be resumed more extensively. Total ACC commitments had averaged about JD 1.1 million per year for the country as a whole, from 1964 to 1966. About 30% of the total ACC portfolio was in loans to farmers in West Bank locations. From 1968 to 1970, annual loan commitments averaged JD 0.41 million from the project and JD 0.18 million from other ACC resources; loan disbursements amounted to an annual average of JD 0.38 million for the project and to JD 0.18 million from other ACC resources (Tables 5,6). The rest of project financing was disbursed in 1971 and 1972, while other ACC loan commitments and disbursements increased markedly from 1971 to mid-1973, aver- aging JD 0.976 million and JD 0.896 million per year, respectively over this period. But the expansion of credit which took place since 1971 is not likely to have been fully translated into the financial results of project borrowers because of political difficulties of a different nature. The closing of the Syrian borders to Jordan's trade from 1971 to mid-1972 adversely affected vegetable and fruit exports and prices at farm gates dropped markedly. All the data included in this report refer to East Bank operations only, except for the financial statements which include West Bank operations in their pre-1968 data. B. Lending Patterns A comparison of actual and estimated project data, which would still be useful despite circumstances previously referred to, could not have been made on the basis of the available information without supplementing it with a study of a sample of farmers' folders to extract some additional data which would be indicative of project performance. Although the ACC has enough qualified staff to implement the required procedures, insufficient progress had been made during this project, as compared to the previous one, to improve operational, accounting and auditing information systems. ACC still does not have external auditors, as required in the Credit Agreement. Also the technical assistance on farm economics which was being provided by AID was discontinued shortly after hostilities began. The data which was finally possible to obtain did not necessarily correspond to appraisal report data. There was no reliable information on production costs and returns although these were  - 5 - specified in detail in the appraisal report. Data on actual investment were not readily comparable to projected categories, but the actual pattern of investments appears to be close to the one projected, at the available levels of aggregation shown below. Actual investments appear to have been somewhat larger than planned in poultry, smaller in farm machinery, qnd some investments were made in farm housing along the lines authorized under the first project but not allocated under this project. Distribution of Project Investments by Value Estimated Actual October 1966 July 1967 Aggregate Project Appraisal Revision Disbursements.! Sample2/ Land reclamation 13) 10) ) ) Tree crop establishment 19) = 48 9) = 31 ) 31 ) 23 Farm water supply 16) 12) ) 36 On-farm dev./irrig. schemes 13 18 27 ) Farm machinery 23 27 30 17 Poultry 0 15 12 18 Housing 0 0 - 6 Unallocated 16 9 - - 100 100 100 100 1/ Source: ACC - see Table 4. 2/ The project sample consists of 1,315 farmers having received 1,511 loans totalling JD 1.109 million, an amount equivalent to 62% of project financing. Since some of these farmers have also received loans from other ACC non-IDA resources, these other loans are recorded separately: they include 636 loans totalling JD 0.3 million (Table 10). Files of farmers were selected randomly and some parameters which were thought to be reasonably reliable were extracted from them; these cover: source of loan financing (IDA project/non-IDA); year of loan, its amount, amortizatiorl and grace periods, and interest rate; farmers' occupation; size of farm and area financed by the project; crop and type of investment; system of farming (irrigated/rainfed); and location of branch office. It was also possible to obtain from another set of files the total repayments of principal and in- terest, as of the end of 1973, corresponding to each loan in the project sample. The original intent was to calculate independently ratios of recovery, in order to correlate them with a number of variables including size of the loan, type of investment, method (rainfed/irrigated), kind of crop, and year (weather/political factors). The incompleteness of the data and the limited time available to work on it have placed this last exercise outside the scope of this audit. - 6 - The cropping and cultivation patterns, however, appear to be signifi- cantly different from those estimated. Whereas project appraisal and revision would indicate that about two-thirds of the crops financed would be under irrigation, the project sample shows that only a third of the area financed by the project was irrigated (Table 10). This irrigated portion corresponds to 14% of the loans made and 46% of project financing, with an average loan size approximately 5.4 times larger than its equivalent for crops under rainfed cultivation. Since returns from rainfed cultivation are much lower than from irrigated farming, and since the pattern of rainfall was rather unfavorable from 1967 to 1971, it is likely that production results have been modest. A very rough estimate of a weighted average financial rate of return for the project calculated on the basis shown below, yields a rate of 15%, with a corresponding economic rate of return of approximately 10%. The financial rates of return which are included in the following calculation -- based on economic lifetimes of 10-12 years -- are reasonably reliable estimates made by the IDA project compl tion mission on the basis of field visits and discussions with ACC staff.V Estimated Project Financial Returns Estimated Financial Rates Calculated of Return Cropping Pattern Project Average (L) (2) (3) (4) (1)x(3) (2)x(4) AppratsalL Supervision Financial Return Crop Octobec 1966 (1972) AppraisalL/ Actual-/ Ap raisal Actual Citrus/ Vege- tables 50 22 75 40 38 9 Olives 17 6 21 42e/ 4 3 Other 45' 13b/ 4a/ 18b/ 2 3 100 100 44 15 Project Economic Return: 30 10f a/ Stone fruit. b/ Poultry. c/ See Table 2. d/ Aggregated from Project Sample, Table 10. e/ And cereals. f/ Assuming same relation to financial return specified at appraisal. 1/ It was not possible to make the necessary farm studies in order to obtain in- dependent estimates of the economic and financial rates of return because war broke out three days after the audit mission arrived in Jordan. - 7 - The above estimate may not be unduly conservative since it assumes that all project financing was effectively utilized, and it does not take into account that 6% of project financing was allocated to rural housing. Housing loans have been typically small at about JD 380, and were located for the most part in rainfed areas. IDA was of the opinion that rural housing should be restricted to government irrigation schemes, but ACC has attached great importance to the role of rural housing in the development of dry farming which constitutes 85% of cultivated areas in Jordan, on the basis that it was a powerful incentive for predominantly bedouin people to care for, work, and improve the land. The proportion of housing financed out of ACC resources is much higher, however, amounting to JD 1.455 million from 1967 to mid-1973 (Table 5), which is equivalent to about 42% of total ACC commitments outside the project over this period. Although this is a substantial proportion of ACC resources, it is not clear that it diverted financing from other more directly productive investments since cash balances have increaed from JD 0.4 million in 1970 to JD 0.8 million in 1972 (Table 13)1'. Staff housing loans amount to 17% of ACC housing investments. C. CollectLon Performance The poor collection performance of ACC has curtailed the coverage of IDA financing and its potential impact on increased production by limiting the amount of resources available for relending. As previously mentioned, the inadequacy of collections on ACC's overall portfolio was a subject of concern to EDA at the time the credit was made, and its magnitude has not been negligible since then. Arrears on the first IDA project averaged about 33% of the loan portfolio from 1967 to mid-1973 and arrears for the recently disbursed project under review averaged about 15% of the loan portfolio, from 1971 to mid-1973. Arrears on other ACC loans financed from non-IDA resources amounted on the average to more than a third of the loan portfolio, from 1964 to 1973 (Tables 7, 8). Similarly, the ratio of recovery (defined as collections during the year as a percentage of total principal repayment due during that year, after adjustment for loans rescheduled) has been very low, averaging 16% for the first IDA credit and other ACC loans from 1967 to mid-1973, arid averaging about 35% for the project over the last three years. There are several factors accounting for the poor collection per- formance of ACC, some of which have already been referred to. During the distrubances, the efficiency of agricultural operations was significantly hampered, and farmers also tended to hoard money. Moreover, for the larger proportion of the area financed by the project which is under rainfed cultivation, returns are small and irregular: for cereals, for example, net revenue (gross revenue less input costs) in an average season would not exceed JD 1 per dunum, and only six crops in ten years would break even or better. But collection is also unsatisfactory even in areas unaffected by disturbances (Table 7) and operational results for irrigated crops were not 1/ Assuming that another JD 0.3 million was needed for working capital. - 8 - without their problems, as will be mentioned later. Several other factors which are discussed in the following sections have contributed to poor collection performance, including poor project appraisal and insufficient sectoral planning and support. However, one of the main factors accounting for the collection record of ACC appears to be a general belief on the part of its borrowers that medium- and long-term agricultural credits are estab- lishment costs or grants made by the Government. Both the general nature of the Jordanian situation and specific instances within it, particular to the agricultural development, reinforce this belief: the World Food Program, for instance, has been extending non-repayable grants amounting annually to about JD 1 million for tree crop establishment. ACC has tried to improve its collection performance, but further support from Government will be necessary before collections reach and maintain normal levels. D. Loan Appraisal In addition to the prevailing political uncertainties and to the borrowers' attitude towards repayment which has undoubtedly affected ACC collection performance, the question arises as to whether the loans made were adequately tailored to farmers' production requirements and repayment capacities. There are no data on actual project production costs and returns, but two other available parameters point to significant differences between actual and pro- jected estimates which may partly explain the unsatisfactory record of collections. First, the grace period granted on the average by ACC varied between 1 to 2 years whereas the appraisal report specifies a grace period of about five years, on the average, and it projects -- on this basis -- a negative cash position after debt service payment for olives and citrus during the first five years of the project. It is consequently possible that the shorter grace periods actually given could have increased the debt burden to the farmer. Second, project financing per dunum is substantially lower than projected for olives, citrus, and grapes, while it appears to be higher than advisable for vegetables and especially for cereals, as shown below: Project Financing (JD/dun.) Vegetables Olives Citrus Grapes Cereals Appraisal 8 28 219 83 n.a. Actuall/ 15 9 12 10 5 1/ See Table 10. What is of particular concern, however, is that farm plans submitted as a basis for approving loans are prepared at a level of aggregation which greatly limits their operational and analytical usefulness: prices, quantities, and yields are rarely specified. Furthermore, no follow-up has been made, even on a sampling basis, to determine whether the projections made bear any correspondence to actual operational requirements and returns. ACC has re- cently informed the Bank that it is reorganizing and strengthening its loan - 9 - appraisal procedures, appointing specialists to deal with each type of project. E. Coverage Another issue affecting the impact of IDA financing pertains to the distribution of ACC lending and its concentration on a relatively minor portion of the farming population. ACC lending is restricted to owners as distinct from renters, a policy which already places potential recipients in the top third income bracket of the farming population. Although the area financed by ACC, on the average, for each loan, is only about 60 dunums (6 hectares), ACC lending appears to be concentrated on a small proportion of its borrowers. In the project sample, 4% of the borrowers received about half of ACC financing. (Another source of data showing the distribution of loans by size in five major ACC branches indicates that 16% of the borrowers received 70% of ACC financing - Table 9.) This top 4% of the borrowers is composed of medium-size farmers cultivating on the average 600 dunums. The management of ACC is of course very concerned about the problems of rural development and poverty, and a large number of loans have been made to smaller farmers. Yet the institution in effect is clearly not oriented towards the poorer two-thirds of the farming population who are in greatest need of assistance. Arguments that these smaller borrowers are greater risks are not entirely convincing because the majority of small farm operators have hitherto relied on commission agents for their financing; the effective rate of interest they are charged has averaged about 17%, which is low enough relative to comparable private market rates in most developing countries to suggest that their repayment record has been quite satisfactory. F. Cost of Lending From 1967 to 1972, ACC's general expenditures (including interest payments) averaged annually about 3.3% of its loans outstanding, and this percentage would be higher if provisions were to be made for arrears and bad debts (Tables 11, 12). This cost of lending is not particularly high because of the lack of technical assistance and limited supervision provided, and of the rather sober style in which the institution is managed. However, col- lection of interest averaged about JD 0.186 million, which is below general operating expenditures (including interest payments) at JD 0.196 million over the same period. Further improvements in administrative efficiency and substantial increases in the volume of lending would generate the resources needed to maintain adequate provisions for bad debts, and to keep ACC on a financially viable footing. G. Sectoral Planning The returns to farmers and, correspondingly, collections by ACC have been finally affected by other factors falling more within the realm of sectoral planning. Substantial efforts have been under way, with FAO assistance, to regulate crop production, establish food processing plants, develop varieties - 10 - suitable for export, and improve the marketing of agricultural produce. Increased regulation of investments in poultry also appears to be necessary, as a function of increased slaughter of livestock in periods of poor rainfall, and as a function of low-cost exports from other countries. In 1972, for example, the closing of the Syrian borders coupled with favorable rainfall and overproduction of tomatoes under rainfed and irrigated conditions re- duced their price below production costs, so that farmers had to plow back their crops into the ground. IV. CONCLUSIONS The implementation of the project differed significantly from ap- praisal report projections because of the major changes which have occurred since that time. The outbreak of hostilities in June 1967 limited the project to the East Bank where, until recently, agricultural practices were less de- veloped than in the West Bank. Subsequent exchanges of fire along the armi- stice lines and civil disturbances in many parts of the country led to a greater than expected concentration of investments in the highlands, under rainfed cultivation, where returns have been modest and irregular. Overall, however, results have been satisfactory. The average financial rate of return to project farmers is presently estimated at 15% as compared to 45% projected at appraisal, and the economic rate of return is estimated at about 10% as compared to 30% projected. These returns may increase in the future as in- ternal conditions are stabilized and better export marketing is established. The effective utilization of financial resources at the disposal of ACC has been limited by a low level of collections. For the project which has been recently disbursed, arrears averaged about 15% of the outstanding loan portfolio, and collections averaged about 35% of dues, from 1971 to 1973. For all other subprojects financed from a previous IDA credit and from other ACC resources, arrears averaged about 33% of the loan portfolio, and collections averaged about 16% of arrears, from 1967 to 1973. The poor collection per- formance of ACC has undoubtedly been affected by the circumstances cited above, but it also appears that borrowers have had a tendency to consider long- and medium-term loans from ACC as establishment costs or grants made by the Govern- ment to keep the development of the agricultural sector on a steady course despite the prevailing uncertainties. The attitude of ACC towards collections has been somewhat ambivalent in these circumstances. While ACC has benefited from dedicated management, substantial im- provements are still needed to translate managerial objectives into opera- tional programs so that the institution could contribute more fully to Jordanian agricultural development. The proportion of farmers covered should be greatly increased from the present 5% which has received ACC financing over the last six years. Although ACC has accumulated substantial cash balances over the last few years, it is doubtful that these large cash balances, which were invested in government bonds and reconstruction bills, are an indication - 11 - that the absorptive capacity of the agricultural sector for long-term financing has been reached. It is possible that these funds were needed by the Government at a time when budgetary support and external financing was decreasing, so that, in effect, these monies may not have been available to ACC. The institution-building contribution of IDA in the future should place greater emphasis in helping ACC to define effective operational targets, develop reliable appraisal and follow-up procedures, and maintain analytically useful reporting systems to ensure the development of ACC along a financially viable and economically efficient course.  JORDAN SECOND AGRICULTURAL CREDIT PROJECT AUDIT AGRICULTURAL CREDIT CORPORATION TABLE 1 : IDA DISBURSEMENTS BY CATEGORY (US$ '000) Actual Disbursements Projected Total Disbursements (JD'00 Estimated Foreign 1967 1968 1969 1970 1971 1972 equiv.) Initiali Revised Exchange Component Category 1 281 223 97 53 55 231 940 336 1,433 933 585 Category II 2 38 49 74 252 167 210 790 282 340 533 426 Category 111/ 107 356 326 - 111 - 900 321 1,011 1,147 1,147 Category IVM/ 36 25 49 94 24 142 370 132 267 6/ Category V2/ 216 120 302 TOTAL 462 653 546 399 357 583 3,000 1,071 3,000 3,000 2,460 (JD '000 equiv.) 165 233 195 143 128 208 1,071 1,071 1,071 1,071 879 1/ Includes land reclamation and improvement, farm water supply aEd development, and tree crop establishment. 2/ On-farm development with government irrigation schemes. 3/ Farm machinery 4/ Poultry development 5/ Unallocated 6/ Unspecified at appraisal 7/ Estimated at appraisal (October 1966) 8/ July 1967 Source: ACC and Appraisal Report TABLE 2 : PROJECT COMPOSITION AT APPRAISAL1/ Area Farms Project Lending Total Per Farm Per Farm Per Dunum Total Crops dun. % dun. # % JD JD JD '000 %/7 Vegetables/Citrus 33,000 65 30 1,100 77 250 8.3 275 25 Olives 10,600 21 80 133 9 2,240 28 298 27 Grapes - Green 2,000 4 50 40 3 800 16 228 21 - Blue 2,000 4 20 100 7 1,650 83 32 3 Stone Fruit 2,000 4 50 40 3 2,400 48 165 15 Citrus _1000 2 80 13 1 17,500 219 96 9 TOTAL 50,600 100 1,4262/ 100 1,094Z 100 2,000 Laying Hen Unit- 35 2,700 95 1/ Derived from Appraisal Report, Annexes 2, 3. Above distribution is only indicative. As noted in text, project composition was substantially changed after appraisal due to occupation of the West Bank after June 1967 hostilities. 2/ Total lending of JD 1.094 million projected in the Annex of the Appraisal Report is lower than the estimates finally adopted in text of Appraisal Report, amounting to JD 1.8 million (US$5 million equivalent), End to 3,000 to 4,000 farmers. 3/ Not included in Appraisal Report; estimated later.  JORDAN SECOND AGRICULTURAL CREDIT PROJECT AUDIT AGRICULTURAL CREDIT CORPORATION TABLE 3 : ACC LENDING PROGRAM AND PROJECT FINANCING JD '000 % Total Project Lending 1.80 ACC's own resources 0.72 33 IDA 103-JO 1.08 50 Farmers' Participation 0.36 17 Total Project Cost 2.16 100 Operations Outside Project 3.6 Investments for subprojects 3.0 Advance to CCU 0.6 Total ACC Lending 5.4 Source: Appraisal Report TABLE 4 : ESTIMATED PROJECT ON-FARM INVESTMENT TARGETS Cost of Estimated Foreign Proposed ACC Lending ACC Lending Subprojects Exchaage Component Initial Revised Actual 1. Land Reclamation & :Improvement 300 76 25 13 240 10 180) 2. Tree Crop Establishment 400 60 15 19 340 9 170) 565 3. Farm Water Supply Development 340 170 50 16 280 12 210) 4. On-Farm Development'Irrig. Schemes 280 112 40 13 240 18 320 474 5. Farm Machinery 520 364 70 23 420 27 480 539 6. Poultry 0 15 280 222 7. Housing 8. Unallocated 320 96 30 16 280 9 160 Total 2160 878 100 100 1800 100 1800 1800 Source : ACC  JORDAN SECOND AGRICULTURAL CREDIT PROJECT AUDIT AGRICULTURAL CREDIT CORPORATION TABLE 5 ACC LOAN COMMITMENTS BY FUNCTIONAL CATEGORY 1967-1973 (JD '000) 1967 1968 1969 1970 1971 1972 6/30/73 Total Total Commitments Total 675 748 567 437 711 1 9439 929 5.506 103-JO 236 560 401 261 398 241 - 2,097 Other 439 188 166 176 313 1,198 929 3,409 Improvement of Unirrigated Lands Total 110 89 40 41 101 192 88 661 103-JO 60 46 40 41 100 80 - 367 Other 50 43 - - 1 112 88 294 Improvement of Irrigated Lands Total 159 64 118 109 108 469 270 1.297 103-JO 89 64 104 109 108 98 - 572 Other 70 - 14 - - 371 270 725 Poultry and Livestock Total 83 41 65 37 81 155 58 520 103-JO 44 27 59 32 56 68 - 286 Other 39 14 6 5 25 87 58 234 Machinery Total 141 285 204 53 154 246 173 1,256 103-JO 81 260 198 41 134 - - 714 Other 60 25 6 12 20 246 173 542 Farm Housing Total 147 228 117 141 147 226 237 1.243 103-JO - - - - - - - - Other 147 228 117 141 147 226 237 1,243 Seasonal Total - - 6 39 72 98 8Q 295 103-JO - - - - - - - - Other - - 6 39 72 98 80 295 Staff Housing Total 29 40 16 18 39 49 21 212 103-JO - - - - - - - - Other 29 40 16 18 39 49 21 212 Others Total 7 - - - 10 5 - 22 103-JO - - - - - - - - Other 7 - - - 10 5 - 22 Source: ACC. TABLE 6 ACC DISBURSEMENTS BY BRANCH (JD '000) 1967 1968 1969 1970 1971 1972 to 6/30/73 Total 103-JO Other 103-JO Other 103-JO Other 103-JO Other 103-JO Other 103-JO Other 103-JO Other 103-JO Other East Bank Amman 38 n.a. 132 75 123 38 69 45 38 87 145 280 1 330 546 n.a. Madaba - n.a. - - - - - - - - 5 64 - 49 5 n.a. Salt 48 n.a. 41 24 42 6 36 11 45 29 44 1h6 - 71 256 n.a. Irbed 22 n.a. 41 27 36 19 9 24 21 64 15 86 - 87 154 n.a. Yerash 16 n.a. 67 10 34 10 25 2 21 3 6 17 - 25 169 n.a. Wadi Yabes 14 n.a. 10 6 7 2 & 4 24 16 13 104 1 83 73 n.a. Mafraq 20 n.a. 41 9 67 7 38 13 29 27 15 124 - 77 210 n.a. Ajloun 6 n.a. 5 2 11 3 8 4 19 22 10 22 2 15 61 n.a. Ramtha 4 n.a. 10 6 8 9 8 3 13 17 - 50 - 12 43 n.a. Karak 36 n.a. 75 5 42 26 27 46 27 55 20 36 - 61 227 n.a. Tafilah 9 n.a. 10 3 14 10 3 10 10 30 2 16 - 7 48 n.a. Malan 22 n.a. 53 21 35 47 3 26 2 25 4 42 - 11 109 n.a. TOTAL 235 n.a. 485 188 419 177 230 188 249 375 279 1037 4 828 1901 n.a. SOURCE: ACC  JORDAN SECOND AGRICULTURAL CREDIT PROJECT AUDIT AGRICULTURAL CREDIT CORPORATION TABLE 7 : COMPARATIVE STATEMENT OF OUTSTANDING PORTFOLIO AND ARREARS DISTRIBUTED ACCORDING TO BRANCHES (JD '000) 12/31/1967 12/31/1968 12/31/1969 12/31/1970 12/31/1971 12/31/1972 6/30/73 IDA IDA IDA IDA IDA IDA IDA IDA IDA IDA IDA IDA IDA IDA BRANCHES 44-JO 103-JO Other Total 44-JO 103-JO Other Total 44-JO 103-JO Other Total 44-JO 103-JO Other Total 44-JO 103-JO Other Total 44-JO 103-JO Other Total 44-JO 103-JO other Tar (East Bank) I. PORTFOLIO Salt 91 46 379 516 83 84 352 519 70 124 205 499 62 147 281 490 56 164 264 464 72 180 339 591 68 166 335 5 Ajnan 304 38 1,356 1,698 282 156 1,523 1,961 241 250 995 1,486 215 297 974 1,486 172 295 965 1,432 101 289 801 1,191 89 279 1,073 1,4 irbed 68 18 362 448 53 58 344 455 41 85 307 433 30 86 285 401 22 84 267 373 26 78 280 384 25 70 324 4 Jeraq 37 16 115 168 35 61 108 224 31 107 87 225 29 122 73 223 18 129 70 217 15 119 78 212 14 112 95 2 Karak 99 31 302 432 92 102 277 471 82 128 271 481 76 141 294 511 66 142 308 516 56 135 347 538 54 127 382 5 S tadi Yakel 108 12 116 236 106 23 125 254 102 29 122 253 98 32 123 253 95 56 142 293 8 65 209 359 81 62 277 4 Ma'an 17 20 132 169 16 73 130 209 14 87 161 262 13 79 163 255 11 68 159 230 10 44 167 220 7 37 160 2 Tafrle 37 7 167 211 34 16 150 200 30 26 139 195 27 27 130 184 24 28 144 196 20 25 136 181 19 22 036 1 RAtha 18 4 90 112 14 13 82 009 11 19 72 102 9 24 66 99 8 25 76 107 6 18 113 137 6 17 519 1 Mafraq 71 18 146 235 62 56 129 247 61 114 106 281 53 139 101 293 44 141 108 293 36 131 212 379 35 125 274 4 Ajlon 14 5 57 76 13 9 50 72 10 19 41 70 8 24 36 68 9 35 48 92 8 38 57 103 6 35 69 1 Mladaba - - - - - - - - - - - - - - - - - - - 25 59 227 311 24 53 266 3 Subtotal 864 215 3,222 4,301 790 671 3.270 4,731 693 988 2,606 4.287 619 1.118 2,526 4.263 525 1,157 2.551 4.233 468 1,181 2,966 4,607 429 1,105 3,5301 5.0 II. ARREARS Salt 30 - 126 156 39 5 142 186 37 10 141 188 36 23 161 220 35 30 91 156 39 37 101 177 36 29 78 1 A an 43 418 461 66 1 696 763 66 5 389 460 75 37 437 549 40 26 281 347 29 27 174 230 20 23 148 1 Irked 21 - 132 153 34 - 125 159 37 5 123 165 25 13 139 177 13 11 68 92 9 15 67 91 8 10 50 Jerash - 69 73 6 - 44 50 6 3 29 38 7 11 33 51 4 17 18 39 5 26 25 56 4 23 22 Karak 25 - 130 155 34 - 138 172 37 10 132 179 39 21 149 209 25 20 93 138 29 31 105 165 28 28 96 1 Wadi Yabes S - 19 24 23 - 36 59 32 1 48 81 39 4 60 103 8 3 29 40 24 7 40 71 21 6 36 Ma'an 2 - 50 52 3 - 41 44 4 4 31 39 5 14 42 61 3 13 37 53 4 14 32 50 3 9 23 Tafileh 10 - 74 84 1 - 73 74 13 - 71 84 10 5 76 91 5 5 49 59 6 7 52 65 5 6 46 Ratha 3 - 31 34 - 35 43 6 - 29 35 5 2 38 45 1 2 19 22 2 2 19 23 2 2 16 Mafraq 15 - 70 85 18 - 56 74 22 1 47 70 25 16 48 89 19 20 32 71 20 19 39 78 19 16 33 AjIoun 4 - 15 19 6 - 17 23 6 - 12 18 4 2 13 19 1 1 6 8 1 3 5 9 1 2 3 Madaba - - - - -- - - ------25 6263 Subtoa 1 - 3 - 3 0 3 3 3 - - - - - - - - - - - 1 15 105 131 10 14 99 1 Subtotal 162 - 1,134 1,296 238 6 1,403 1.647 266 39 1,052 1,357 270 148 1,196 1,614 154 148 723 1,025 179 203 764 1,146 157 168 650 9 III. ARREARS AS %. OF PORTFOLIO Salt 33 - 33 30 47 5 40 35 53 9 46 38 59 16 57 45 63 18 35 32 54 20 29 30 52 17 21 Amman 14 - 31 27 23 0.7 45 39 27 2 39 31 35 12 45 37 23 9 29 24 29 9 21 19 22 8 13 Irked 32 - 36 34 63 1 36 35 90 5 40 38 84 15 49 44 61 13 25 25 35 19 24 24 32 14 15 Jerash 10 - 60 43 16 - 41 22 21 3 33 17 25 9 46 23 23 13 26 18 33 22 32 26 28 20 23 Karak 25 - 43 35 37 - 50 36 45 8 49 37 51 15 51 41 38 14 30 27 52 23 30 31 51 22 25 WladiTYabes 4 - 17 1D 21 - 28 23 31 3 39 32 39 13 49 41 8 5 20 14 28 10 19 20 26 9 13 Ma'an 13 - 38 31 20 - 31 20 29 5 20 15 38 17 26 24 30 22 23 23 40 32 19 23 43 24 14 Tafilek 25 - 44 39 17 - 48 36 44 - 51 43 39 20 59 50 18 17 34 30 30 28 38 36 26 27 34 Ram,tha 16 - 34 30 53 - 42 38 57 1 40 34 54 9 57 45 11 10 25 21 33 11 17 17 33 12 13 Mafraq 22 - 47 36 29 - 43 30 35 1 44 25 47 11 48 30 42 14 29 24 56 15 18 21 54 13 12 Ajloun 3 - 3 25 49 - 33 32 58 - 28 25 47 9 38 26 16 4 11 9 12 8 9 9 17 6 4 !!adaba - - - - - - -7 - - -i __: _- _- _- _- _- 4A4 2Z5 46 42 4 26 37 _ Subtotal 19 - 35 30 30 0,8 43 35 38 4 40 32 44 1 7 3 9 13 28 24 39 17 26 25 37 15 19  JORDAN SECOND AGRICULTURAL CREDIT PROJECT AUDIT AGRICULTURAL CREDIT C08PORATION TABLE 8 LOAN RREAR,6 COLLECTIONS, AND EXTENSIONS (o1 '000) 3/31/64 1131/65 12/31/66 12/31/67 12/31/68 IDA IDA 1DA IDA IDA IDA 1DA 44-Jo Other Total 44-JO Other Total 44-J0 Other Total 44-JO 103-JO Other Total 44-10 103-JO Other Total Arrear-t be,iing el yea - 619 639 - 1,053 1.053 5 1,123 1,128 4 - 1,103 1,107 256 - 1,640 1,896 ntallments talln du te d-rtog ytr - 864 864 12 455 467 116 324 440 349 - 941 1,290 216 26 745 987 Total - 1,503 1,503 12 1,508 1,520 121 1,447 1,568 353 - 2,044 2,397 472 26 2,385 2,883 Exotentlons - - - - - tell,ttior' driog yrar - 450 450 11 638 649 117 344 461 97 - 404 501 78 20 306 404 A,rr-earsrtend of r - 1,053 1.053 1 070 871 4 1,103 1,107 256 - 1,640 1,896 396 6 2,079 2,479 Totaol loan portfiliro at endot .1 r - 4,774 4.774 1,034 3,763 4,797 1,401 4,647 6,048 1,302 223 4,450 5.975 1.230 679 4,493 6,40 A as 7 to7 , lao portfollo - 22 22 - 23 18 ,3 24 18 20 - 37 32 32 - 46 39 Ratteeir,re,iery - 30 30 92 42 42 97 24 29 27 - 20 21 16 77 13 14 12/31/69 12/31/70 12/31/71 12/31/72 6/30/73 ttA DA IDA I DA 1A IDA DA IDA 1A IDA 44-l1 103-10 Other Total 44-JO 103-0 Other Total 44-JO 103-jO Other Total 44-JO 103-JO Other To_tal 44-JO 103-JO Other Total A.rreir- tt begnnnof vl yr 394 6 2.079 2.479 421 40 1,723 2,184 425 149 1,865 2,439 309 149 1,391 1,849 335 204 1.431 1,970 tnilorett fallen de drngvor 123 111 162 396 83 191 402 67o 8 186 114 308 89 190 393 672 - 4 24 28 511 117 2,241 2,875 504 231 2,125 2,860 433 335 1,979 2,747 398 339 1,784 2,52L 335 208 1,455 1,998 - - - - 19 21 46 8 72 02 290 452 3 2 3 1 154 1 656 811 96 71 518 691 60 61 212 333 52 104 290 446 60 133 359 541 33 39 135 197 r t nd of year 421 40 1,722 2,184 425 149 1,865 2,439 309 149 1,391 1,849 335 204 1,431 1,971 158 160 664 990 oa letn poitfli Il,.it end ofyealr 1,131 996 3,730 5,857 1,056 1,126 3,740 5,922 979 1,165 3,768 5,912 913 1,188 4,306 6.401 882 1,113 4,872 6,867 irrears ,. ilf total loan portttlo 37 4 46 37 40 13 50 41 32 13 37 31 37 17 33 31 17 1 13 14 ette ,f r...eery 18 65 23 24 12 29 10 12 _4 1l 17 19 15 39 19 2L 12 18 16 16  JORDAN SECOND AGRICULTURAL CkEDIT PROJECT AUDIT AGRICULTURAL CREDIT CORPORATION TABLE 9 : DISTRIBUTION OF BORROWERS BY VALOE OF LOANS FOR FIVE SELECTED BRANCHES (JD '000) 12/31/70 12/31/71 Up to 500 JO 501-1,000 JD 1,001-5,000 JD Over 5.000 Jn Up to 500 JD 501-1,000 Jn 1,001-5000 iD Over 5,000 JD No. JD t No. JD % No. JO % No. JR Z No. JO % No JR % No. JD % No. JR % Annan IDA 103 9 2,165 5.7 2 1,360 2.3 13 39,080 40.2 2 26,100 68.5 24 6,157 6.8 16 11,620 14.3 10 2),555 19.5 1 8,300 25.9 Other ACC 9 1,790 4 7 5 3,450 5.9 4 5,065 5.2 - - - 25 5,490 6.0 9 6,730 8.3 16 21,103 18.5 - - - Subtotal 18 3,955 10.4 7 4,810 8.2 17 44,145 45.4 2 26,100 68.5 49 11,647 12.8 25 IB,350 22.6 26 57,658 38.0 1 8,300 25 9 Salt IDA 103 26 4,956 13.1 10 7,760 13.3 10 18,485 19.0 1 12,000 31.5 80 17,515 19.3 20 13,947 17.2 11 13,435 12 1 - - - Other ACC 11 1,910 5 0 3 1,720 3.0 1 1,540 0.6 - - - 52 5,460 6.0 3 1,950 2.4 4 7,005 4.6 - - - Subtotal 37 6,066 18.1 13 9,480 16.3 11 20,025 20.6 1 12,000 31.5 132 22,975 25.3 23 15,897 19.6 15 21,440 16.7 - Trbed IDA 103 30 5,499 14.5 3 2,420 4.2 2 2,935 3.0 - - - 53 12,085 13.2 6 5,155 6.4 5 10,3110 6.8 - - Other ACC 40 7,110 18.8 15 8,050 13.8 4 3,650 3.0 - - - 89 18,242 20.0 16 11,155 13.8 10 13.,300 12.1 - - Subtotal 70 12,609 33.3 18 10,470 18.0 6 6,585 6.8 - - - 142 30,327 33.2 22 16,310 20.2 15 2.1,610 18 9 - Wad Yhes IDA 103 1 300 .8 - - - 2 3,065 3.2 - - - 2 665 .7 5 3,310 4.1 6 17,142 8.0 2 18,625 58.1 Other ACC - - - - - - - - - - - - - - 2 ,,230 4.1 - - Subtotal 1 300 .8 - - - 2 3,065 3.2 - - - 2 665 .7 5 3,310 4.1 8 18,372 12.1 2 18,625 58 1 Karak IDA 103 50 10,770 28.4 14 8,901 15.3 9 16,348 16.8 - - - 83 12,625 13.8 8 4,845 6.0 4 1,800 5.8 1 5,135 16 0 Other ACC 21 3,400 9.0 40 24,600 42.2 5 7,010 7.2 - - - 40 12,990 14.2 28 22,330 27.5 7 12,890 8 5 - - Subtotal 71 14,170 37 4 54 33,501 57.5 14 23,358 24.0 - - - 123 25,615 28.0 36 27,175 33.5 11 21,690 14.3 1 5,135 16.0 Total 197 37,900 100.0 92 58,261 100.0 50 97,178 100.0 3 38,100 100.0 654 91,229 100.0 111 81,042 100.0 75 151,770 100.0 4 32,060 100.0 IDA 103 116 23,690 62 5 29 20,441 35.1 36 79,913 82.2 3 30,100 100.0 242 49,047 53.8 55 38,877 48.0 36 71,242 52.2 4 32,060 100.0 Other ACC 81 14,210 37 5 63 37,820 64.9 14 17,265 17.8 - - - 206 42,182 46.2 56 42,165 52.0 39 72,528 47.8 - - - 12/31/72 6/30/73 A-m.an IDA 103 15 4,195 3.9 4 2,450 2.1 8 23,645 8.5 2 106,400 26.1 - - - - - - - . - - - Other ACC 33 9,944 9 3 12 9,780 8.3 22 45,427 16.4 8 172,200 42.2 19 6,635 9.9 15 12,520 15.9 19 47,740 36.5 9 276,000 80 3 Sobtoll 4B 14,139 13 2 16 12,230 10.4 30 69,072 24.9 10 278,600 68.3 19 6,635 9.9 15 12,520 15.9 19 47,740 36.5 9 276,000 80.3 Salt IDA 103 30 6,705 4 2 8 6,230 5.3 4 6,030 2.2 2 22,000 5.4 - - - - - -- - Other ACC 102 24,091 22 4 33 24,080 20.4 20 45,720 16.5 5 48,200 11.8 70 21,070 31.5 19 15,960 20.2 11 24,120 18.4 2 16,200 4 7 Subtotal 132 30,796 28 6 41 30,310 25 7 24 51,750 18.7 7 70,200 17.2 70 21,070 31.5 19 15,960 20.2 11 24,120 18 4 2 16,200 4,7 rbod: IDA 103 20 4,485 4.5 I 960 .8 5 6,970 2.5 - - - - - - - - - - - - - - Other ACC 106 26,614 24.8 45 34,455 29.1 20 36,400 13.1 - - - 96 26,550 39.7 37 28,960 36.7 7 11,665 13.5 2 26,000 7.6 W.dt Sbtotal 126 31,459 29.3 46 35,415 29.9 25 43,370 15.6 - - - 96 26,550 39.7 37 28,960 36.7 7 17,665 13.5 2 26,000 7 6 Yabes IDA 103 2 600 6 2 2,270 1.9 1 2,480 .9 - - - - - - - - . - Other ACC 19 5,400 5.0 24 17,870 15.1 31 68,890 24.9 4 42,500 10.4 11 3,935 5 9 12 7,570 9.6 -5 2>,960 22 2 2 20,500 6.0 Subtotal 21 6,000 5.6 26 20,140 17.0 32 71,370 25.8 4 42,500 10.4 11 3,935 5.9 12 7,570 9.6 15 21,960 22.2 2 20,50' 6 0 Karak IDA 103 19 4,440 4.1 7 5,200 4.4 2 5,780 2.1 - - - - - - - - - - - - - - Other ACC 58 20,635 19.2 21 14,990 12.7 17 35,485 12.8 2 16,500 4.0 30 8,750 13.1 18 13,876 17.6 4 12,250 9.4 1 5,200 1 5 Subtotal 77 25,075 23.3 28 20,190 17.1 19 41,265 14.9 2 16,500 4.0 30 8,750 13.1 18 13,876 17.6 4 12,250 9 4 1 5,200 1.5 Subtotal 404 107,469 100.0 157 118,285 100.0 130 276,827 100 0 23 407,800 100.0 226 66,940 100.0 101 78,886 100.0 56 130,735 100.0 16 343,900 100.0 IDA 103 86 20,785 19.3 22 17,110 14.5 20 44,905 16.2 4 128,400 31.5 - - - - - - - - - - - Other ACC 318 86,684 80.7 135 101,175 85.5 110 231,922 83.8 19 279,400 68.5 226 66,940 100.0 101 78,886 100.0 56 130,735 100.0 16 343,90C 100 0 JORDAN SF.COND AGRICULTURAL CREDIT PROJECT AUDIT AGRICULTURAL CREDIT CORPORATION TABLE 10: PROJECT SAMPLE SELECTED INDICATORS ON THE DISTRIBUTION OF LENDING IDA 103-JO Other ACC Total No. Area (DunusValue (JD) No. Area Value No. Area Value # % Do % D/Loan Total # Don JD # Don JD Loans 1,511 100 97,716 100 734 11 1,108,596 100 636 35,699 297,990 2,147 133,415 1,406,586 Years - 1967 40 3 2,979 3 963 13 38,519 4 10 407 3,675 50 3,386 42,194 1968 426 28 33,257 34 572 7 243,702 21 143 5,039 47,802 569 38,296 291,504 1969 310 21 23,697 24 927 12 287,327 27 77 4,104 28,839 387 27,801 316,166 1970 210 14 8,982 9 603 14 126,565 11 62 5,884 46,894 272 14,866 173,459 1971 380 25 15,753 16 531 13 201,945 18 145 6,424 42,655 525 22,177 244,600 1972 145 9 13,048 14 1,452 16 210,538 19 165 12,121 107,558 310 25,169 318,096 1973 0 0 0 00 0 00 0 34 2 2 34 1220 20.56 TOTAL 1,511 100 97,716 100 734 11 1,108,596 100 636 35,699 297,990 2,147 133,415 1,406,586 Occupation Farmer 1,036 68 71,671 73 692 Lo 716,770 65 419 25,021 186,609 1,455 96,692 903,379 Civil Servants 109 7 5,346 6 848 17 92,389 8 53 1,972 15,383 162 7,318 107,772 Covernment Officials 73 5 5,590 6 1,144 15 83,468 8 44 4,827 38,871 117 10,417 122,339 Soldiers 141 9 6,979 7 480 10 67,663 6 50 1,068 13,117 191 8,047 80,780 Retired 54 4 3,360 4 854 14 46,125 4 17 918 9,005 71 4,278 55,130 Merchants 9 1 980 1 3,514 32 31,627 3 7 556 9,902 16 1,536 41,529 Others 89 6 3 3 793 19 70.554 6 46 1 25,103 135 5,127 965 TOTAL 1,511 100 97,116 100 734 11 1,108,596 100 636 35,699 297,990 2,147 133,415 1,406,586 Crop vegetables 99 7 23,651 23 3,659 15 362,200 33 38 8,878 48,467 137 32,529 410,667 Poultry 145 10 1,323 1 1,331 146 193,058 17 105 933 57,124 250 2,256 250,182 Cereals 209 14 30,038 31 669 5 139,823 13 49 4,030 20,710 258 34,068 160,533 Olives 457 30 15,500 16 294 9 134,381 12 165 6,235 40,914 622 21,735 175,295 Olives/Grapes 298 20 8,777 9 250 9 74,546 7 97 3,867 28,968 395 12,644 103,514 Citrus 37 2 4,916 5 1,556 12 57,557 5 13 1,688 13,294 50 6,604 70,851 Vegetables/Cereals 14 1 3,291 4 1,850 8 25,895 2 1 15 250 15 3,306 26,145 Grapes 68 4 2,122 2 309 10 21,016 2 18 519 6,523 86 2,641 27,539 Citrus/Vegetables 4 0 557 1 3,444 25 13,776 1 0 0 0 4 557 13,776 Others 180 12 5 8 480 12 868344 B 150 9,534 8,174 330 17,075 168,084 TOTAL 1,511 100 97,716 100 734 11 1,108,596 100 636 35,699 297,990 2,147 133,415 1,406,586 Investment Poultry 146 10 1,387 1 1,333 140 194,673 18 103 909 56,035 249 2,296 250,708 Water Supply/Pumps 23 2 9,617 10 7,873 19 181,090 16 4 881 12,220 27 10,498 193,310 Equipment 89 6 29,094 30 1,743 5 155,143 14 21 4,514 21,097 110 33,608 176,240 Terracing/Fencing 582 39 20,132 21 247 7 143,538 13 53 3,228 12,975 635 23,360 156,513 Water Supply 46 3 7,360 8 2,024 13 93,120 8 5 118 1,210 51 7,478 94,330 Terracing/Cistern 156 10 7,007 7 492 11 76,818 7 8 623 5,126 164 7,630 81,944 Pumps 22 1 5,446 6 3,144 13 69,165 6 12 2,293 34,790 34 7,739 103,955 Cistern 249 16 7,661 8 156 5 38,816 3 12 901 1,730 261 8,562 40,546 Housing/Equipment 9 1 968 0 3,505 33 31,546 3 2 1,499 10,015 11 2,467 41,561 Housing 78 5 1,710 2 378 17 29,469 3 229 7,074 98,959 307 8,784 128,428 Housing/Pumps 6 0 1,560 2 3,482 13 20,895 2 0 0 0 6 1,560 20,895 Oil Press 4 0 734 0 5,100 28 20,400 2 0 0 0 4 734 20,400 Housing/Terracing 17 1 1,386 1 816 10 13,874 1 6 467 4,190 23 1,853 18,064 Others 84 6 _3654 4 477 11 40.049 4 181 13J92 39.643 _ 265 16,846 79,692 TOTAL 1,511 100 97,716 100 734 11 1,108,596 100 636 35,699 297,990 2,147 133,415 1,406,586 Water Ra,nfed 1,295 86 65,112 67 461 9 597,044 54 525 20,302 178,566 1,820 85,414 775,610 Irrigated 216 14 32,604 33 2,368 16 511,552 46 111 15,397 119424 327 48,001 630,976 TOTAL 1,511 100 97,716 100 734 11 1,108,596 100 636 35,699 297,990 2,147 133,415 1,406,586 Branch Amnan 158 10 17,740 18 2,230 20 352,374 32 54 6,790 54,377 212 24,530 406,751 Salt 260 17 13,820 14 597 11 155,331 14 90 4,825 36,159 350 18,645 191,490 Jarash 293 19 15,535 16 471 9 137,878 12 109 6,832 26,490 402 22,367 164,368 Mafraq 72 5 14,514 15 1,452 7 104,560 10 37 4,676 28,435 109 19,190 132,995 Karak 192 13 10,854 11 532 9 102,192 9 71 3,633 51,717 263 14,487 153,909 Irbed 246 16 6,444 7 401 15 98,736 9 141 3,410 50,602 387 9,854 149,338 Ajloun 129 9 3,883 4 354 12 45,686 4 49 1,183 12,777 178 5,066 58,463 Ma'an 58 4 9,534 10 753 5 43,698 4 31 1,353 10,953 89 10,887 54,651 Wadi Yabes 23 2 1,507 2 1,485 23 34,162 3 13 1,034 11,605 36 2,541 45,767 Ramtha 30 2 1,475 1 505 10 15,158 1 12 968 6,460 42 2,443 21,618 Tafileh 47 3 2,208 2 262 6 12,336 1 28 875 8,215 75 3,083 20,551 Others 3 0 202 0 2,161 32 6,485 1 1 120 200 4 322 6 TOTAL 1,511 100 97,716 100 734 11 1,108,596 100 636 35,699 297,990 2,147 133,415 1,406,586 Source ICC Project Sample. SECOND AGRICULTURAL CREDIT PROJECT AUDIT AGRICULTURAL CREDIT CORPORATION TABLE 11: BALANCE SHEET (JD '000) 3/31/64 3/31/65 3/31/66 12/31/66 12/31/67 12/31/68 12/31/69 12/31/70 12/31/71 12/31/72 6/30/ ASSETS Cash at Banks 327 709 741 233 289 281 740 997 1157 858 726 Advances 5 2 3 5 3 12 2 2 2 92 4 Outstanding loans: 4320 4402 4927 5723 5681 6148 5857 5922 5728 6250 6718 Loans inherited from other institutions 1628 1339 1141 1022 896 Loans made to Central Union of Co-op. Soc. 591 559 476 464 436 Loans made from funds provided by USAID/J 349 322 292 264 234 Loans made under IDA credit 44-JO 1034 1533 1401 1302 Loans made under IDA credit 103-JO 223 Loans made to farmers in E.G. area 30 24 20 17 22 Loans taken over by the E.G.C. auth. 22 8 18 14 14 Rural development loans in the E. G. Area 4 9 7 Staff housing loans 17 66 83 ACC loans 1700 1116 1426 2466 2464 Village development loans (contra account) 279 253 Inherited doubtful loans 455 396 342 326 295 252 184 158 150 Doubtful loans 3 3 3 Loans sanctioned and paid to branches 2 19 73 33 Furniture and supplies after depreciation 6 8 11 11 11 12 12 12 13 1i 13 Vehicles after depreciation 6 9 13 14 23 14 12 10 1j 1 12 Workshop tools after depreciation Electronic accounting machines after depreciation 7 9 8 6 Immovable property 33 53 61 zz 100 124 128 130 l3 120 136 Recoverable expenses TOTAL ASSETS 5436 5854 6175 6422 6402 6852 6758 7083 7242 7510 7764 LIABILITIES Capital 4114 4191 4288 4334 4415 4488 4189 4285 4323 4397 4420 Operating surplus 139 259 344 368 370 374 433 252 241 236 236 IDA credit 44-JO 238 583 978 1071 1071 1071 1071 1071 1071 1071 1071 IDA credit 103-JO 95 399 592 735 862 1070 1070 Farm housing loans 160 147 133 120 Tobacco loan 120 120 120 120 120 120 Treasury advance 20 77 73 73 73 72 72 72 Central Bank advance 231 Village development loans 280 253 Staff housing fund 160 160 200 200 Borrowers current account 206 149 155 33 Profit and loss account 32 Government contribution 39 Overpayments 4 16 17 30 50 16 17 14 16 27 20 Balance of inherited doubtful loans 455 396 342 326 295 252 213 199 184 158 150 Collections pending classification 31 25 33 5 2 1 1 3 Accumulated profits earned on staff housing fund 5 10 15 15 Discount received on bonds 5 6 5 Bank interest received on deposits 3 USAID/J loan through JOB 208 Unpaid interest due on IDA credits 23 31 8 Pension deduction not paid to the Ministry of Finance 3 Loans sanctioned and paid to Branches 3 Loans sanctioned in process of implementation 6 51 TOTAL LIABILITIES 5636 I854 7 6422 6402 6852 6758 7083 7242 7510 7764  JORDAN SECOND AGRICULTURAL CREDIT PROJECT AUDIT AGRICULTURA, CREDIT CORPORATION TABLE 12 PROFIT AND LOSS STATrMENT (JD's) 3/31/64 3/31/65 3/31/66 12/31/66 12/31/67 12/31/68 12/31/69 12/31/70 12/31/71 12/31/72 EXPENDITURES Salar,es 63475 75278 /875) 675 99643 101700 102237 11487o 1158/7 12,694 CiassifR,ied enployees 43700 53112 56198 43454 64023 62185 64930 70605 69546 71972 Uniassifled employees 8260 8636 7906 7064 9637 9952 9526 7490 7266 Bil contract employees 1460 1508 1556 Fixed salary employees 2246 3795 4322 394o 6128 8534 6577 6651 6800 7192 Techn/cal - high costof niIng alloance 7226 8018 8257 10868 17149 18010 18425 25554 28423 29479 Overt/me 0 s - daily paid employees 1293 796 954 1l60 306 2493 1421 1271 941 1769 Contir,bAt-n of ACC to Pres,dent Fund 750 921 l1i4 889 1400 526 135B 1359 1333 /6/5 Others 4002 4400 4531 31426 2770 IU 1 342 3/46 57 Rent 41.93 15 258 1948 2140 2_17 2102 2136 1874 2/S2 Ut11lites, sundry, supfil-s 7917 9897 10046 9506 13944 10787 10505 10442 11055 ii5L5 Remunerations and awards 3890 E4l654 4985 11992 89_ 647 935 7504 7258 Remunerations for thie mebers of the Board of Dlrectors 1723 2067 1992 1447 1998 1857 2238 2184 239 2/40 Re-uneratons for No members of the Lon Cona ittees 2018 2377 2657 2348 2869 2678 2172 2363 2552 2879 Awards for collectors 1255 700 752 725 /000 /000 /000 /000 Awards under terra1n9 NOntests 950 490 6375 2939 73/ 3688 1715 1239 Scholarsh,ps 149 Deprec,ation 1032 2074 131 194 2808 1.13 408! 4769 543/ Contrirbution to Wadi Yabes Cap expenses 7. 68 Interest payable on loans 8683 23346 26116 51875 43398 5067/ 73077 67400 48655 Ist IDA cred,t 8683 23346 26116 42691 34819 34819 34819 35000 210427 2nd IDA credit 8579 /9858 21804 25000 20445 NPC lon unde, project 150 7400 6783 JDB o farm housing loan g18g 4235 JB on to0bacco loan Repaid interest collected in prevous years iin excess of arount due 36 ,240 2230 1064 Fert/lla- z oan adjustnent 2 Saff-hosing 1oe interest transferred to the Operating surplus account 3346 SUB-TOTAL 84912 109175 129837 126238 186658 174034 17889q 220763 211565 201832 Net profit transferred to operalng surplus account 38964 120691 84430 28118 5163 44o 61884 353U Less Difference in rate uf exchange 652 TOTAL EXPENSES 123866 229866 214267 144356 /91820 178441 240/22 220763 21/565 2372?7 'INCOME Interest on /oans disbursed under the 1st IDA credit 7557 35324 36489 50101 41518 39120 22416 22926 21912 Interest o loans dsbursed under the 2nd 10A credit 442 12203 45718 44440 48213 63890 Interest on new consoidated 1oans 3 184 165 195 Interest on loas made fron funds pnoided by USAID/J 9513 /5795 11647 6197 8130 4388 6485 2207 3765 3403 Internt on the faro housing INans (Project /59) 8498 4101 6334 Interest on the fare housing joans (Set. Fund-Project /50) 226 404 Interet In the fare equipment /oans (Project 150) 282 402/ Interest en the 0ACC oans 92256 /72057 110910 62296 1)4913 98698 92944 55117 562/8 84/50 Interest n the East Ghor Rural Development Loans 71 428 /05 /2 37 19 :78 Interest en the East Ghor Canal Area Loans 987 /024 638 707 234 113 86 /60 /9/ Interest os the inher,ted loans 23984 11080 11319 12646 Interest 0n the inher,ted doubtful loans 2891 12428 12448 3172 1510 3897 3131 689 695 993 jInterestt en theseasNnal loans 203/ 4586 7283 Interest os the fert,l,zer loans 675 102 6' 94 Interest on Ihe staff-housi g sche-e lons 1479 2102 3532 5539 7371 7178 8412 Suspended .nterest pre-consolmdat,on of loans 206 310 l19 57 2 Interest on loans given to JCD /0957 12349 Interest en loans taken ouer by uha G.C authority 1183 938 639 4225 Interest en loans g-ten to Central Union of Co-operative Societies Ltd 6398 6475 6916 5384 2214 11224/ 2l6237 178269 116365 180547 169006 228991 16652 i60i48 210104 Less 50% of the interest of the staff husi>ng /00ns trasfetrre totheoeratn rplus a-count 3589 4206 11224/ 216237 178269 _16365 180547 169006 22899/ 66952 156559 205898 Plus Sank interest 10050 10465 34024 27o68 13245 9375 13389 15311 16729 9206 Disount 00 construetlon bills 185 00 0s ount on bonds 1935 22363 27381 14835 0 .sel) aeous revenoe 1585 2075 1970 923 1318 49/8 3359 1700 12005 3375 Deficit 20881 11843 11635 12540 35994 27991 14563 14285 18683 60255 67958 45916 SUB-TOTAL 123876 228777 2/4263 /44956 195110 /83291 247674 227207 2245/7 251814 Less Interest written-off 6445 12954 14587 interest colleted n prevous years in excess of aount due-refunded 3290 4851 7550 TOTAL INCOME 123876 228777 214263 144356 191820 178440 240124 220762 211563 237227  JORDAN SECOND AGRICULTURAL CREDIT PROJECT AUDIT AGRTCULTURAL CREDIT CORPORATION TABLE 13: CASH FLOW STATEMENT (JD '000) 3/31/65 3/31/66 12/31/67 12/31/68 12/31/69 12/31/70 12/31/71 12/31/72 6/30/73 Re ceipt.. 1. Lash at Banks at beginning of the year: 327 709 448 282 1 58 Cash aL Bank 200 180 225 397 452 197 Advance to br.in(hws 89 101 100 lO 105 111 Retinstruction hills 200 550 Govc r1m0nL t ond 4 00 500 400 2. rimenttioo n 926 868 682 5908' 8998! 588a/ 7921/ 1 018A/ 446R/ 'riot ipal 720 690 501 404 691 445 639 821 373 IntOrest 206 178 181 169 228 167 160 210 95 3. Interest received on deposits at hanks 13 34 13 9 13 16 25 39 22 4. Disount received on honds 24 20 4 5. Funda made avai lable by IDA 345 395 95 304 194 143 127 208 6. Funds made avai lable by HSA1D/J 12 26 16 120 85 7. Central Bank advan<e 232 8. Treasury advance 65 2 9. Covernment contribution to ACC capital 18 31 29 56 43 23 49 10. Amount received from Binistry of Finance 5 11, Repayment made by the Agric. Marketing Organization 60 90 12. Repayment made by East Chor Cooperatives 12 1 13, Recovery of loans taken over by the East Ghor Canal Authority 10 14. Over payments 36 6 21 13 11 14 3 4 15. Advances 20 58 16. Immovable property 17. Car sale 3 3 18. Collections pending classifications 25 19. Cancellation of loans 33 20. Miscellaneous revenUei 2 1 5 1 2 7 Total receipts _ 2.091 1,409 1 7 1 26003 2 1,659 I'ayments 1. Loans 833 1,207 671 825 494 418 626 1,313 824 2. Salaries and allowances 75 79 100 103 87 98 90 84 48 3. Other expenses 51 21 32 20 22 34 41 45 16 4. Interest on loans (crodits) 9 4 37 71 16 5. Interest on IDA credit s 9 23 43 21 73 57 6. Debt repayment 13 13 7. Repayment of USAID/J 217 13 8. Repayment of Central Bank advance 1 9. Repayment of Treasury Advance 9 6 10. Advance made to the Aj;ric. Marketing Organization 150 11. Over payments, advances, etc. 1 2 92 45 22 36 34 15 12. Capital expenditures 16 34 28 8 6 3 8 13. Over collected interest - refunded 2 3 3 Total payments 970 1350 1120 1095 29 639 846 "1 933 Cash at Bank at end of period 180 239 397 452 197 266 Advances to branches 101 100 100 105 111 110 Reconstruction bills 200 550 350 Government bonds 400 500 400 Total cash at end of period 709 741 289 281 739 997 11 85 726 Payments during the period 970 1,350 1,120 1,095 729 639 846 1,718 933 Cash at end of the period 709 741 289 281 739 997 1.157 858 726 TOTAL _ 2,091 1409 jJ371 1,468 1,636 2,00 2 6 a/ unaccounted for discrepancy  LAKE TIBERIAS J S Y R I A RAMTHA• SRBID- JENIN 9 aW.YABI s / MAFRAQ - -0 TUKARMEAST GHOR 0 TULKARM CANAL PROJECT JdARASH W.Rajib *NABLUS Zarqa R .OQUALQIL[YA ck: IDHULAIL PROJECT ST o AZ ZARQA K REIN HUEIB - -''AMMAN EJECT JERIC0 tv. Zar a k JERUSY, LEM G HE BRON 200 KARAK Sea .YtN\ lE G Y P T co TAFILA JORDAN LOCATION OF AGRICULTURAL CREDIT CORPORATION OFFICES AND IRRIGATION PROJECT AREAS DAM SITES r7 IRRIGATION PROJECT AREAS EAST GHOR CANAL . A. C. C. BRANCH OFFICES -200- 200MM ISOHYET PATTERN . MA'AN 10 5 0 10 20 30 40KM FEBRUARY 1967 IBRD-1907R1